REFORMATION AND THIRD MODIFICATION OF UNSECURED LOAN AGREEMENT

This REFORMATION AND THIRD MODIFICATION OF UNSECURED LOAN AGREEMENT (the “Reformation”) is made and entered into as of April 12, 2013, but effective as of November 15, 2011 (the “Effective Date”), by and between Inland Real Estate Corporation, a Maryland corporation (“Borrower”) and Wells Fargo Bank, National Association (“Lender”), under the following circumstances.

A.    Borrower and Lender entered into an Unsecured Loan Agreement as of November 15, 2011 (as previously amended, the “Loan Agreement”). Capitalized terms used herein without definition shall have the meanings assigned to them in the Loan Agreement.

B.    Pursuant to a Second Modification Agreement dated July 31, 2012 (the “Second Modification Agreement”), the Borrower and Lender provided that the Indebtedness due from IN Retail Fund Algonquin Commons L.L.C., an Illinois limited liability company, under loans made by Teachers Insurance and Annuity Association of America with respect to the Algonquin Projects (as herein defined) (the “Algonquin Indebtedness”), shall not constitute “Material Indebtedness” for purposes of the cross default provisions of Section 7.1(d) of the Loan Agreement.

C.    The parties intent, as evidenced by the Second Modification, was to provide exceptions under the Loan Agreement from certain covenants, representations and default provisions with respect to the projects commonly known as Algonquin Commons and The Exchange at Algonquin Commons, each located in Algonquin, Illinois (the “Algonquin Projects”).

D.    The Borrower and Lender desire to reform and amend the Loan Agreement to more clearly reflect their intent to exclude the Algonquin Projects from the scope of such covenants, representations and default provisions.

NOW, THEREFORE, the Loan Agreement shall be reformed and amended, effective as of the Effective Date, as follows:

1.Reformation of Loan Agreement. Notwithstanding anything in the Loan Agreement to the contrary: (i) IN Retail Fund Algonquin Commons L.L.C., an Illinois limited liability company (“IN Retail Fund Algonquin Commons”) shall not constitute a “Subsidiary”; (ii) no agreement, guaranty, indemnity or other obligation of IN Retail Fund Algonquin Commons shall constitute “Indebtedness” or a “Guarantee Obligation”; (iii) no agreement, guaranty, indemnity or other obligation of IN Retail Fund, L.L.C., a Delaware limited liability company, with respect to the Algonquin Indebtedness and in effect as of the date of this Reformation shall constitute “Indebtedness” or a “Guarantee Obligation”; and (iv) that certain guarantee by the Borrower in the amount of approximately $18,600,000 of the Algonquin Indebtedness, which guarantee is described in the Borrower’s Form 10-K for the year ended December 31, 2012, shall not constitute “Indebtedness” or a “Guarantee Obligation.”

2.    Additional Modifications of Loan Agreement.

3.    Representations and Warranties. As a material inducement to Lender's entry into this Reformation, Borrower represents and warrants to Lender as of the Effective Date:

4.    Non-Impairment. Except as expressly provided herein, nothing in this Reformation shall alter or affect any provision, condition, or covenant contained in the Loan Agreement or any of the Loan Documents (as defined in the Loan Agreement) or affect or impair any rights, powers, or remedies of Lender, it being the intent of the parties hereto that the provisions of the Loan Documents shall continue in full force and effect except as expressly reformed and modified hereby; provided, that for purposes of avoiding ambiguity, Lender acknowledges and agrees that to the extent a breach of a Loan Document, a Default or an Unmatured Default would have occurred prior to the date of entry into this Reformation but for the corrections and modifications contained in, or otherwise effected by, this Reformation, no such breach, Default or Unmatured Default has occurred.

5.    Counterparts. This Reformation may be executed in one or more counterparts, each of which shall be deemed an original.

6.    Lender’s Costs. Borrower shall reimburse Lender for all of Lender's costs and expenses incurred in connection with this Reformation and the transactions contemplated hereby, whether such services are furnished by Lender's employees or agents or by independent contractors, including, without limitation, reasonable attorneys' fees, documentation costs and charges.

7.    

IN WITNESS WHEREOF, the parties have executed this Reformation as of the date first set forth above.