Document:

EXHIBIT 4.1

 

INLAND
AMERICAN REAL ESTATE TRUST, INC.

DISTRIBUTION REINVESTMENT PLAN

 

Inland
American Real Estate Trust, Inc. (“Inland American” or the “Company”), as
a service to its stockholders, hereby offers participation in its Distribution
Reinvestment Plan (the “Plan”).  The Plan
is designed to provide participants with a simple, convenient and economical
way to purchase shares of the Company’s common stock.  Stockholders who choose not to participate in
the Plan will receive cash distributions, as declared and paid by the Company.

 

To
aid in your understanding of the question-and-answer statements set forth
below, you may find the following basic definitions useful:

 

“Shares registered in your name” means shares of the Company’s
common stock for which you are the owner of record.  If you own shares of the Company’s common
stock but are not the owner of record for those shares, it is likely that the
shares you own are registered in the name of another (e.g., in the name of a
bank or trustee holding shares of common stock on your behalf) and are held for
you by the registered owner in an account in your name.

 

“Shares enrolled in the Plan” means shares registered in your
name that you have chosen to enroll in the Plan.  Distributions on all shares enrolled in the
Plan are automatically reinvested in additional shares of the Company’s common
stock.  You do not have to enroll all of
your shares of common stock in the Plan.

 

“Shares held in the Plan” or “Plan Shares”
are shares of the Company’s common stock purchased by your reinvested
distributions.  Shares held in the Plan
are registered in the name of the Administrator, or its nominee, but are
credited to your individual Plan Account maintained by the Administrator.  Distributions on all shares held in the Plan
are automatically reinvested in additional shares of the Company’s common
stock.

 

The
following question-and-answer statements define the Company’s Distribution
Reinvestment Plan, effective as of [ _________ ], 2005.

 

Purpose

 

1.                                      What is the
purpose of the Plan?

 

The
purpose of the Plan is to provide eligible stockholders (see Question 5) with a
simple, convenient and economical way to invest cash distributions in
additional shares of the Company’s common stock.  The Plan is intended to be used by you as a
vehicle for long-term investment in the Company’s common stock and for building
your holdings in the Company’s common stock.

 

Maximum Ownership of Shares.  To maintain our qualification
as a REIT, no more than 50% of our outstanding shares of common stock may be
owned directly or indirectly by five or fewer individuals at any time during July through
December of each year.  To ensure
that we meet this test, our articles of incorporation provide that no person
may own more than 9.8% of

 

 

our issued and outstanding common stock.  Therefore, to the extent that any purchase of
shares of common stock under the Plan would cause you to own in excess of 9.8%
of our issued and outstanding common stock, you may not reinvest your
distributions to purchase additional shares of common stock.

 

Investment Options

 

2.                                      What investment
options are available to participants in the Plan?

 

The
Plan provides two options for purchasing additional shares of common
stock.  Cash distributions on all shares
held in the Plan for you are automatically reinvested to purchase additional
shares of common stock regardless of which investment option is selected:

 

Full Distribution Reinvestment Option.  You
may have cash distributions on all of your shares of common stock automatically
reinvested; or

 

Partial Distribution Reinvestment Option.  You
may reinvest distributions on a portion of the shares of common stock you own
and continue to receive cash distributions on the other shares registered in
your name.  You can take advantage of this
option by enrolling in the Plan only those shares for which you wish to
reinvest distributions.

 

Benefits and Disadvantages

 

3.                                      What are the
benefits and disadvantages of the Plan?

 

Benefits.  Before
deciding whether to participate, you should consider the following benefits of
the Plan:

 

•                                          You may purchase additional shares of the
Company’s common stock by automatically reinvesting cash distributions on all,
or less than all, of the shares registered in your name.  You will continue to receive cash distributions
for those shares of common stock that you choose not to enroll in the Plan.

 

•                                          No commissions, brokerage fees or service
charges will be paid by you in connection with purchases under the Plan.

 

•                                          Your funds will be fully invested because the
Plan permits fractions of shares of common stock to be credited to your
account.  Distributions on such
fractions, as well as on whole shares, will be reinvested in additional shares
of common stock and credited to your account.

 

•                                          You may direct the Administrator to transfer,
at any time and at no cost to you, all or a portion of your shares held in the
Plan to a new or existing Plan Account for another person.

 

•                                          Regular statements from the Administrator
reflecting all current activity in your account, including purchases, sales and
latest balance, will simplify your recordkeeping.

 

2

 

Disadvantages. 
Before deciding whether to participate, you should consider the
following disadvantages of the Plan:

 

•                                          You will be treated for federal income tax
purposes as receiving a distribution equal to the fair market value of the
shares of common stock credited to your Plan Account as a result of the
reinvestment of cash distributions.  This
distribution will be taxable to the extent of our earnings and profits.  Accordingly, you may have a tax liability
without a corresponding distribution of cash with which to pay the liability
when it comes due.

 

•                                          You may not know the actual number of shares
of common stock credited to your Plan Account until after the applicable
Distribution Payment Date, as defined in Question 15.

 

•                                          Transfers or withdrawal of common stock held
in your Plan Account may take up to five business days to process.

 

•                                          You may incur brokerage commissions, fees and
income taxes, as described in Question 23.

 

•                                          You may not pledge shares of common stock
deposited in your Plan Account unless you withdraw the shares from the Plan.

 

•                                          We may amend, suspend, modify or terminate
the Plan at any time, without prior notice to, or the prior consent of,
participants in the Plan.

 

Administration

 

4.                                      Who administers
the Plan for participants?

 

Registrar
and Transfer Company (the “Administrator”) administers the Plan, keeps records,
sends statements of account to each participant, and performs other duties
related to the Plan.  Shares purchased
under the Plan will be registered in the name of the Administrator, or its
nominee, and the Administrator will maintain an individual account for you to
record your interests in the Plan.

 

The
Company, in conjunction with the Administrator, may adopt rules and
regulations to facilitate the administration of the Plan.  The Company reserves the right to interpret
the provisions of the Plan, and any rules and regulations adopted in accordance
therewith, in its sole discretion.  The
determination of any matter with respect to the Plan made by the Company in
good faith shall be final and conclusive and binding on the Administrator and
all participants in the Plan.  The
Administrator currently acts as distribution disbursing and transfer agent and
registrar for the Company’s common stock and may have other business
relationships with the Company from time to time.

 

3

 

The
Administrator may be reached as shown below:

 

INFORMATION ABOUT THE PLAN

 

For answers to questions regarding the Plan

and to request Plan forms, please contact:

 

Registrar and Transfer Company

Investor Relations Department

(800) 368-5948

email: info@rtco.com

website: http://www.rtco.com

 

From outside the continental United States,

call (908) 497-2300

 

Send enrollment forms or

termination requests to:

 

Registrar and Transfer Company

Distribution Reinvestment
Department

P.O. Box 664

Cranford, New Jersey 07016

 

Please include your account number or Social
Security

number on all correspondence. Also, please include a telephone

number where you can be reached during business hours.

 

Eligibility and Enrollment

 

5.                                      Who is eligible
to participate?

 

If
you are a stockholder in the Company and have shares registered in your name,
you are eligible to participate in the Plan. 
If your shares of common stock are registered in a name other than your
own (e.g., in the name of a bank or trustee holding shares of common stock on
your behalf) and you want to participate in the Plan, you should consult
directly with the entity holding your shares to determine if they can enroll in
the Plan.  If not, you should become the
owner of record by having your shares of common stock registered directly in your
own name.  You will not be eligible to
participate in the Plan, however, if you reside in a jurisdiction in which it
is unlawful or unduly burdensome for the Company or the Administrator to let
you participate.

 

The
Company reserves the right to reject the enrollment of any participant who has
abused the Plan through excessive sales, terminations and enrollments, or
otherwise (see Questions 1 and 29).

 

4

 

6.                                      When may an
eligible person join the Plan?

 

If
you are eligible to participate as described in Question 5 and have been
furnished a copy of the Company’s Prospectus, you may join the Plan at any
time.  Your enrollment will become
effective as described below in Question 11.

 

7.                                      How does an
eligible person join the Plan?

 

You
may join the Plan by signing an Enrollment Form and returning it to the
Administrator.  In the event you wish to
enroll shares of common stock that are registered in more than one name (i.e.,
joint tenants, trustees, etc.), all registered stockholders must sign the
Enrollment Form.  You may obtain an
Enrollment Form at any time by calling the telephone number for the
Administrator set forth in Question 4.

 

8.                                      Is partial
participation possible under the Plan?

 

Yes.  You may elect to enroll in the Plan all, or
less than all, of the shares registered in your name.  However, distributions on all Plan Shares
will be reinvested so long as those shares of common stock are held in the
Plan.

 

9.                                      For what
reinvestment options does the Enrollment Form provide?

 

The
Enrollment Form authorizes the Administrator to invest in accordance with
the Plan all cash distributions paid on your shares then or subsequently
enrolled in the Plan.  Cash distributions
paid on your shares of common stock held by the Administrator in your Plan
Account will be reinvested in accordance with the Plan.  The Enrollment Form also provides for
the partial enrollment in the Plan of your shares of common stock.  If you do not wish all of the shares of
common stock held in your name to be enrolled in the Plan, you may designate
the number of shares of common stock you do wish enrolled.

 

10.                               How may a
participant change options under the Plan?

 

As
a participant, you may change your reinvestment options at any time by
requesting a new Enrollment Form and returning it to the Administrator at
the address set forth in Question 4.  Any
change in reinvestment option must be received by the Administrator not later
than the Record Date for the next Distribution Payment Date in order to make a
change with respect to that distribution payment (see also Questions 11, 13 and
15).

 

11.                               When does
enrollment in the Plan become effective?

 

Your
signed Enrollment Form will be processed as quickly as practicable after
its receipt by the Administrator. 
Reinvestment of cash distributions on your shares enrolled in the Plan
will take place as follows:

 

•                                          If your signed Enrollment Form is
received by the Administrator on or prior to the Record Date for a Distribution
Payment Date, reinvestment of distributions on your enrolled shares of common
stock will begin with that Distribution Payment Date.

 

5

 

•                                          If your signed Enrollment Form is
received by the Administrator after the Record Date for a Distribution Payment
Date, that distribution payment will be made in cash and reinvestment of
distributions on your enrolled shares of common stock will begin with the next
following Distribution Payment Date.

 

For
a discussion of Record Dates and Distribution Payment Dates, see Questions 13
and 15.

 

Costs

 

12.                               Are there any
costs to participants in the Plan?

 

All
costs to administer the Plan are paid by the Company, except that you may incur
brokerage commissions, fees and income taxes as a result of your participation
in the Plan (see Question 23).

 

Purchases

 

13.                               When are the
Record Dates and Distribution Payment Dates for the Company’s distributions?

 

You
should not assume that the Company will pay distributions or pay them in any
particular amount or on any particular date. 
For a given distribution, the Company will announce the Distribution
Payment Date and corresponding Record Date at least ten days prior to the
Record Date in question.

 

The
Company currently has no plans to declare any special or extraordinary distributions.  However, should any such special distribution
be declared, the Record Dates and Distribution Payment Dates for it will be
announced by the Company, and the amount due on shares enrolled in the Plan
will be paid to your account under the Plan and invested in accordance with the
Plan, subject to your right to withdraw at any time.

 

14.                               What is the
source of shares purchased under the Plan?

 

The
sole source of shares purchased under the Plan is newly issued shares of common
stock purchased directly from the Company.

 

15.                               When will
shares be purchased under the Plan?

 

Cash
distributions reinvested under the Plan will be applied to the purchase of
shares of common stock on the dates that cash distributions are paid on the
Company’s common stock (each, a “Distribution Payment Date”).  Your Plan Account generally will be credited
with purchased shares on the Distribution Payment Date, and your distribution
and voting rights as to purchased shares of common stock generally will
commence on that date.

 

16.                               What will be
the price of the shares purchased under the Plan?

 

The
price per share for shares of common stock purchased for you under the Plan on
any Distribution Payment Date will be equal to $9.50 per share until the
earlier of:

 

6

 

•                                          the increase of the public offering price per
share of common stock in the initial public offering of the Company’s common
stock from $10.00 per share, if there is an increase; and

 

•                                          termination of the initial public offering of
the Company’s common stock.

 

After
the termination of the initial public offering of the Company’s common stock,
the price per share for shares of common stock purchased for you under the Plan
on any Distribution Payment Date will be equal to ninety-five percent (95.0%)
of the “market price” of a share of the Company’s common stock until the shares
become listed for trading on a national securities exchange or included for
quotation on an inter-dealer quotation system (a “liquidity event”).  For these purposes, “market price” means the
last price at which shares were offered by the Company in a public offering of
its shares and until a liquidity event occurs. 
If a liquidity event occurs, the price per share for shares of common
stock purchased for you under the Plan will be equal to one hundred percent
(100%) of the average daily open and close sales price per share, as reported
by the national securities exchange or inter-dealer quotation system, whichever
is applicable, on any Dividend Payment Date.

 

17.                               How many shares
will be purchased for participants?

 

The
number of shares of common stock purchased for you depends on the aggregate
amount of your cash distributions and the purchase price per share, determined
in accordance with Question 16.  Your account
will be credited with that number of shares of common stock, including
fractions computed to four decimal places, equal to the aggregate amount of
your cash distributions on any particular Distribution Payment Date, less taxes
on distributions (if applicable, see Question 23), divided by the applicable
purchase price per share.  The
Administrator and the Company will not accept orders to purchase a specific
number of shares or to purchase on days other than the applicable Distribution
Payment Date.  We will not
purchase shares of common stock for you under the Plan to the extent that the
purchase would cause you to own in excess of 9.8% of our issued and outstanding
shares of common stock, unless that limitation is waived by our board of
directors.

 

18.                               Will shares
purchased through the Plan earn distributions?

 

Yes.  All Plan Shares held for your account under
the Plan, including fractional shares, will be entitled to any distributions
when and as declared by the Company.  All
cash distributions payable on all shares credited to your account under the
Plan will be automatically reinvested in additional shares at a price as
described in Question 16.

 

Only
shares of common stock held as of the Record Date for a given distribution are
entitled to that distribution.  Thus,
shares of common stock acquired after the Record Date for a given distribution,
but before the Distribution Payment Date for that distribution, will not be
entitled to that particular distribution, but will be entitled to any
subsequent distribution for which they are shares of record on the Record Date
(see also Question 13).

 

7

 

Sales and Transfers of
Shares Held in the Plan

 

19.                               May a
participant sell shares held in a Plan Account?

 

Yes.  You may request to have any whole number of
shares held in your Plan Account transferred out of your Plan Account and
registered in your name.  Once the shares
are registered in your name and no longer part of the Plan, you can either sell
them to a third party through efforts of your own or you can sell them back to
the Company by participating in the Company’s Share Repurchase Program.  There is no guarantee, however, that you will
be able to sell your shares to the Company through the Share Repurchase Program.

 

If
shares are transferred out of your Plan Account on or after an “ex-distribution
date” but before the related Distribution Payment Date, the transfer will be
processed as described above and you will be entitled to receive the
distribution on those shares.  This
distribution will be reinvested in the Plan unless the transfer is part of a
termination (see Question 28).  An “ex-distribution
date” is generally two business days before the Record Date for the
distribution.

 

Distributions
on shares of common stock remaining in your Plan Account after a partial
transfer will continue to be reinvested under the Plan.  However, a request to
transfer shares, the execution of which would result in less than 25 shares
remaining in your Plan Account, will be considered by the Administrator to be a
request to terminate participation in the Plan.  Following such a request, your Plan Account
will be closed (see Question 29).

 

20.                               May a
participant assign, transfer or pledge to another person all or part of his or
her shares held in the Plan?

 

You
may change the ownership of all or part of your shares held in the Plan through
gift, private sale or otherwise.  If you
wish to transfer ownership, you should contact the Administrator by telephone
as set forth in Question 4.  The
Administrator will provide you with instructions on how to complete the
transfer.  This transfer generally will
be completed at no cost to you.

 

You
may not pledge (e.g., use as security for a loan), assign or otherwise encumber
shares held in the Plan.  If you wish to
pledge, assign or encumber Plan Shares, you must request that your Plan Shares
be removed from the Plan and registered in your name (see Question 27).

 

21.                               If Plan Shares
are transferred to another person, how will the Company document the transfer
on its books?

 

The
Administrator will remain the registered owner for the shares but the shares
will be credited to the transferee’s Plan Account.  If the transferee is not already a Plan
participant, the transfer will be accomplished as soon as the Administrator
receives a signed Enrollment Form (the transferee will be considered a
registered stockholder for purposes of enrollment whether or not he or she
owned shares of the Company’s common stock prior to the transfer).  Distributions on all shares transferred to
and held in the transferee’s Plan Account will be reinvested under the terms of
the Plan.

 

8

 

22.                               How will a
transferee be advised of his or her stock ownership?

 

The
transferee will begin to receive Statements of Account just like other Plan
participants.

 

Taxes

 

23.                               What are the
income tax consequences of participation in the Plan?

 

The
Company believes the following to be an accurate summary of the federal income
tax consequences for Plan participants as of the effective date of this
Plan.  You are urged to consult with your
own tax advisor to determine the particular tax consequences that may result
from your participation in the Plan and the subsequent disposition by you of
shares of common stock purchased pursuant to the Plan.

 

(1)                                  Cash distributions reinvested under the Plan
are, in effect, treated for federal income tax purposes as having been received
in cash on the Distribution Payment Date even though they are used to purchase
additional shares of common stock.

 

(2)                                  The tax basis per share of shares of common
stock purchased under the Plan is the average purchase price per share of the
common stock as described in Question 16.

 

(3)                                  The holding period for shares of common stock
acquired with reinvested distributions will begin on the day following the
Distribution Payment Date on which the shares were credited to your Plan
Account (see Question 15).

 

(4)                                  You may realize a gain or loss if you
withdraw from the Plan and receive a cash payment for a fraction of a share
credited to your Plan Account.  The
amount of the gain or loss will be the difference between the amount you
receive for the fraction of a share and the tax basis attributable to the
fraction of a share, as defined in subsection (2) above.

 

24.                               How are income
tax withholding provisions applied to participants in the Plan?

 

If
you fail to furnish a valid taxpayer identification number to the Administrator
and to certify that you are not subject to backup withholding, then the
Administrator is required by law to withhold taxes from the amount of
distributions and the proceeds from any sale of your shares.  The withheld amount will be deducted from the
amount of distributions and the remaining amount of distributions reinvested.  In the case of a sale, the withheld amount
will be deducted from the sale proceeds and the remaining amount will be sent
to you.

 

If
you are a non-U.S. stockholder whose distributions are subject to United States
income tax withholding, the amount of tax to be withheld will be deducted from
the amount of distributions and the remaining amount of distributions will be
reinvested.

 

9

 

Reports to Participants

 

25.                               What kinds of
reports will be sent to participants in the Plan?

 

As
soon as practicable after each Distribution Payment Date, a summary statement
of your account will be mailed to you by the Administrator.  These statements are your continuing record
of current activity including the cost of your purchases and proceeds from your
sales in the Plan.  They also will
include the tax consequences of reinvestment, and should be retained for tax
purposes.  In addition, you will be sent
copies of other communications sent to holders of the Company’s common stock,
including the Company’s annual report, the notice of annual meeting, proxy
statement, and the information you will need for reporting your distribution
income for federal income tax purposes. 
If, after receiving and reviewing this information, you no longer wish
to participate in the Plan, you may withdraw from the Plan in accordance with
the terms set forth in Questions 27 and 28 below.

 

All
notices, statements and reports from the Administrator and Company to you will
be addressed to your latest address of record with the Administrator.  Therefore, you must promptly notify the
Administrator of any change of address. 
To be effective with respect to mailings of distribution checks, address
changes must be received by the Administrator prior to the Record Date for the
next Distribution Payment Date.

 

Certificates for Shares

 

26.                               Will
certificates be issued for shares purchased?

 

No. 
Shares of our common stock purchased through the Plan will be issued in book
entry form only.  This means that we will
not issue actual share certificates to you or any holders of our common
stock.  The use of book entry only
registration protects you against loss, theft or destruction of stock
certificates and reduces costs.  Shares
of common stock purchased through the Plan will be credited to your Plan
Account under your name, but they will not be registered in your name.  The number of shares of common stock credited
to your Plan Account will be shown on your statement of your account.

 

Termination of Participation

 

27.                               How does a
participant terminate participation in the Plan?

 

To
terminate your participation in the Plan, you must notify the Administrator
that you wish to do so.  Notice of
termination should be sent to the address set forth in Question 4.  To expedite your transaction request, please
use the tear-off stub and business reply envelope enclosed with your summary
statement.  Upon termination, you will
receive a check for the net proceeds from the sale of all fractional shares of
common stock held in your Plan Account.

 

On the termination date, the Administrator will convert to cash any
fractional shares held in your Plan Account at the same price that the shares
could be purchased through the Plan, calculated in accordance with Question 16
above, on the termination date.

 

10

 

28.                               When may a
participant terminate participation in the Plan?

 

You
may request termination of your participation in the Plan at any time.  However, you should allow for several weeks
from the time you request termination until you receive a check for the net
proceeds of any fractional shares converted to cash, as described in Question
27.  Any distributions earned subsequent
to the effective date of your termination will be paid to you by check unless
you re-enroll in the Plan.

 

29.                               May an
individual’s participation be terminated by the Company or the Administrator?

 

The
Company reserves the right to terminate the participation of any participant
who, in the Company’s sole discretion, is abusing the Plan or causing undue
expense.  Also, as described in Question
19, a request to transfer shares, the transfer of which would result in less
than 25 shares remaining in your Plan Account, will be considered by the
Administrator to be a request to terminate participation in the Plan.  The Company also reserves the right to
terminate the Plan with respect to participants in one or more jurisdictions
(see Question 36).

 

Sales of Shares Registered
in your Name

 

30.                               What happens
when a participant sells or transfers all of the shares registered in the
participant’s name?

 

If
you sell or transfer all the shares registered in your name, the Administrator
will continue to reinvest any distributions received after your disposition of
the shares (for example, if the shares of common stock are disposed after the
Record Date and before the Distribution Payment Date), subject to your right to
withdraw from the Plan at any time. 
Also, the Administrator will continue to reinvest distributions on Plan
Shares held in your Plan Account.

 

31.                               What happens
when a participant sells or transfers some but not all of the shares registered
in the participant’s name?

 

If
you have elected the “Full Distribution Reinvestment” option described in
Question 2, and you transfer or sell a portion of the shares registered in your
name, then the Administrator will continue to reinvest the distributions on all
remaining shares registered in your name.

 

If
you have elected the “Partial Distribution Reinvestment” option described at
Question 2 by enrolling in the Plan only a portion of the shares you own, and
you transfer or sell a portion of the shares registered in your name, then the
Administrator will continue to reinvest the distributions on the remaining
shares registered in your name up to the number of shares originally enrolled
in the Plan.  For example, if you
requested the Company to enroll in the Plan 50 shares of the 100 shares
registered in your name, and then you transferred or sold 25 shares, the
Company would continue to reinvest the distributions on 50 shares.  If instead, you transferred or sold 75
shares, the Company would continue to reinvest the distributions on all of the
remaining 25 shares.  If you later
acquire additional shares registered in your name, those shares will
automatically be enrolled in the Plan (and their distributions reinvested) so
long as your total enrollment is less than your original enrollment request of
50.

 

11

 

In
all cases, after a sale or transfer of shares registered in your name, the
Administrator will continue to reinvest distributions on Plan Shares held in
your Plan Account.

 

Other Information

 

32.                               If the Company
has a rights offering, how will the rights on the Plan Shares be handled?

 

You
will participate in any rights offering, based upon your total holdings of
whole shares, including whole shares enrolled in the Plan and whole shares
credited to your Plan Account.

 

33.                               What happens if
the Company issues a distribution payable in stock or declares a stock split?

 

Any
distribution payable in stock or split shares distributed by the Company on
shares enrolled in the Plan and on shares of common stock held in your Plan
Account will be credited to your account.

 

34.                               How will a
participant’s shares held by the Administrator be voted at stockholders’
meetings?

 

Shares
of common stock held by the Administrator for you will be voted as you
direct.  A proxy card will be sent to you
in connection with any annual or special meeting of stockholders, as in the
case of stockholders not participating in the Plan.  This proxy will apply to all whole shares
registered in your own name including those enrolled in the Plan, if any, as
well as to all whole shares credited to your account under the Plan and, if properly
signed, will be voted in accordance with the instructions that you give on the
proxy card.  If the proxy card is not
returned, or if it is returned unsigned by you, none of your shares will be
voted.

 

As
in the case of non-participating stockholders, if no instructions are indicated
on a properly signed and returned proxy card, all of your whole shares – those
shares registered in your name (including those enrolled in the Plan), and
those credited to your account under the Plan – will be voted in accordance
with the recommendation of the Company’s management.

 

35.                               What are the
responsibilities of the Administrator and the Company under the Plan?

 

Subject
to the limitations contained in the Company’s articles of incorporation, the Administrator
and the Company will not be liable under the Plan for any act done in good
faith or for any good faith omission to act, including, without limitation, any
claim of liability arising with respect to the prices or times at which shares
are purchased for you or from failure to terminate your Plan Account upon your
death or any change in the market value of the Company’s common stock.

 

You
should not assume that the Company will pay distributions or pay them in any
particular amount or on any particular date.

 

12

 

You
should recognize that neither the Administrator nor the Company can assure you
of a profit or protect you against a loss on the shares of common stock
purchased by you under the Plan.

 

36.                               May the
Plan be changed or discontinued?

 

Notwithstanding
any other provisions of the Plan, the Company reserves the right to amend,
modify, suspend or terminate the Plan at any time, in whole or in part, or in
respect to participants in one or more jurisdictions, without prior notice to,
or the prior consent of, participants in the Plan.  Notice of any material amendment or
modification, or of any suspension or termination, will be mailed to all
affected participants following the date of such amendment, modification, suspension
or termination.

 

13EXHIBIT 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 [ __________ ], 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.

 

3

 

(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.

 

4

 

(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.

 

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