FIRST MODIFICATION AGREEMENT

 (Unsecured Loan)

THIS FIRST MODIFICATION AGREEMENT (the "Agreement") is entered into as of June 28, 2012, but effective as of the Effective Date (defined below), by and between WELLS FARGO BANK, NATIONAL ASSOCIATION (collectively with its successors or assigns, "Lender"), and INLAND REAL ESTATE CORPORATION, a Maryland corporation ("Borrower").

RECITALS

A.

Pursuant to the terms of that certain Unsecured Loan Agreement by and between Borrower and Lender dated November 15, 2011 (as it heretofore may have been amended or otherwise modified from time to time, the "Loan Agreement"), Lender made a loan to Borrower in the original principal amount of FIFTY MILLION AND NO/100THS DOLLARS ($50,000,000) (the "Loan").  The Loan is evidenced by that certain Promissory Note dated November 15, 2011, executed by Borrower payable to the order of Lender, in the principal amount of the Loan (as it heretofore may have been amended or otherwise modified from time to time, the "Note") and is further evidenced by certain other documents described in the Loan Agreement as Loan Documents.  

B.

Each of the undersigned, party to the Guarantor Consent attached to this Agreement (individually and collectively, "Guarantor") has previously executed and delivered to Lender that certain Repayment Guaranty, dated November 15, 2011, as it heretofore may have been amended or otherwise modified from time to time, the "Guaranty"), guarantying the Loan.

C.

The Note, Loan Agreement, the Guaranty, this Agreement, and the other documents described in the Loan Agreement as Loan Documents, together with all modifications, extensions, renewals and amendments thereto and any document required hereunder, are collectively referred to hereinafter as the "Loan Documents".

D.

As of the date hereof, the total outstanding principal balance under the Loan is Fifty Million and No/100 Dollars ($50,000,000).

E.

By this Agreement, Borrower and Lender intend to amend certain terms and provisions of the Loan Documents as of the Effective Date, hereinafter defined.

NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Borrower and Lender agree, subject to the terms and conditions of this Agreement, as follows:

1.

CONDITIONS PRECEDENT.  Lender's obligations under this Agreement are subject to the satisfaction of each and every one of the following conditions precedent:

1.1

Receipt and approval by Lender of an executed original of this Agreement and any and all other documents, instruments, policies and forms of evidence or other materials which are required pursuant to this Agreement or any of the other Loan Documents or as otherwise required by Lender, each in form and content acceptable to Lender.

1.2

There shall have occurred no material adverse change, as determined by Lender in its sole discretion, in the financial condition of Borrower, or any Guarantor from that which existed as of the later of:  (A) the Effective Date; or (B) the date upon which the financial condition of such party was first represented to Lender.  

1.3

Reimbursement to Lender by Borrower of Lender's costs and expenses incurred in connection with this Agreement 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.

1.4

The representations and warranties contained in this Agreement are true and correct.

1.5

All payments due and owing to Lender under the Loan Documents have been paid current as of the Effective Date of this Agreement, and, as of the date hereof.

1.6

Borrower's satisfaction of each and every one of the conditions precedent required pursuant to the terms of that certain Fourth Amendment to Fourth Amended and Restated Credit Agreement dated March 29, 2012, by and among Borrower, KeyBank National Association, as administrative agent, and certain other parties thereto.

2.

REPRESENTATIONS AND WARRANTIES.  As a material inducement to Lender's entry into this Agreement, Borrower represents and warrants to Lender as of the Effective Date and continuing thereafter that:

2.1

FORMATION AND ORGANIZATIONAL DOCUMENTS.  Borrower has previously delivered to Lender all of the relevant formation and organizational documents of Borrower, of the partners, members or joint venturers of Borrower (if any), and all guarantors of the Loan (if any) and all such formation documents remain in full force and effect and have not been amended or modified since they were delivered to Lender.  Borrower hereby certifies that:  (i) the above documents are all of the relevant formation and organizational documents of Borrower; (ii) they remain in full force and effect; and (iii) they have not been amended or modified since they were previously delivered to Lender.    

2.2

FULL FORCE AND EFFECT.  The Note and other Loan Documents, as heretofore amended, are in full force and effect without any defense, counterclaim, right or claim of set-off; Borrower has no claim against Lender as of the date hereof; all necessary action to authorize the execution and delivery of this Agreement has been taken; and this Agreement is a modification of an existing obligation and is not a novation.

2.3

NO DEFAULT.  No Default (as defined in the Loan Agreement, as modified by this Agreement), breach or failure of condition has occurred, or would exist with notice or the lapse of time or both, under any of the Loan Documents (as modified by this Agreement) and that all representations and warranties herein, in the Loan Agreement and in the other Loan Documents are true and correct, and shall survive execution of this Agreement.

1.

EFFECTIVE DATE.  The effective date of the obligations of Borrower and Lender under this Agreement shall be March 29, 2012 (the "Effective Date").

2.

MODIFICATION OF LOAN AGREEMENT.  Clause (a) of Section 5.1 of the Loan Agreement is hereby amended and restated in its entirety, as follows, which shall supersede and prevail over any conflicting provisions of any Loan Document:  

(a)

Variable Interest Indebtedness.  Borrower and its Subsidiaries shall not at any time permit the outstanding principal balance of Indebtedness which bears interest at an interest rate that is not fixed through the maturity date of such Indebtedness to exceed twenty-five percent (25%) of Total Asset Value, unless all of such Indebtedness in excess of such amount is subject to a Swap Contract approved by Lender that effectively converts the interest rate on such excess to a fixed rate.

3.

NON-IMPAIRMENT.  Except as expressly provided herein, nothing in this Agreement shall alter or affect any provision, condition, or covenant contained in any of the Loan Documents 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 modified hereby.

4.

MISCELLANEOUS PROVISIONS.

4.1

No Waiver.  No previous waiver and no failure or delay by Lender in acting with respect to the terms of the Note or this Agreement or any other Loan Document shall constitute a waiver of any breach, default, or failure of condition under the Note, this Agreement, any other Loan Document or the obligations secured thereby.  A waiver of any term of the Note, this Agreement, any other Loan Document or of any of the obligations secured thereby must be made in writing and shall be limited to the express written terms of such waiver. Time is of the essence of each and every term herein.

4.2

Severability.  If any provision or obligation under this Agreement or the other Loan Documents shall be determined by a court of competent jurisdiction to be invalid, illegal or unenforceable, that provision shall be deemed severed from the Loan Documents and the validity, legality and enforceability of the remaining provisions or obligations shall remain in full force as though the invalid, illegal, or unenforceable provision had never been a part of the Loan Documents.

4.3

Governing Law and Consent to Jurisdiction.  This Agreement and any claim, controversy or dispute arising under or related to this Agreement, the relationship of the parties, and/or the interpretation and enforcement of the rights and duties of the parties will be governed by, and construed and enforced in accordance with the laws of the State of Illinois (including, without limitation, 735 ILCS Section 105/5-1 et seq., but otherwise without regard to conflict of law provisions), except to the extent preempted by federal laws.  Borrower and all persons and entities in any manner obligated to Lender under the Loan Documents consent to the jurisdiction of any federal or state court within the State of Illinois having proper venue and also consent to service of process by any means authorized by Illinois or federal law.  

4.4

Joint and Several Liability.  The liability of all persons and entities obligated in any manner hereunder, including, without limitation, the consent hereto and, under any of the other Loan Documents, shall be joint and several.

4.5

Counterparts.  To facilitate execution, this document may be executed in as many counterparts as may be convenient or required.  It shall not be necessary that the signature of, or on behalf of, each party, or that the signature of all persons required to bind any party, appear on each counterpart.  All counterparts shall collectively constitute a single document.  It shall not be necessary in making proof of this document to produce or account for more than a single counterpart containing the respective signatures of, or on behalf of, each of the parties hereto.  Any signature page to any counterpart may be detached from such counterpart without impairing the legal effect of the signatures thereon and thereafter attached to another counterpart identical thereto except having attached to it additional signature pages.

4.6

Defined Terms.  Unless otherwise defined herein, capitalized terms used in this Agreement shall have the meanings attributed to such terms in the Loan Agreement.

[SIGNATURE PAGES TO FOLLOW.]

1

IN WITNESS WHEREOF, Borrower and Lender have caused this Agreement to be duly executed as of the date first above written.

[SIGNATURES CONTINUE ON FOLLOWING PAGES]

S-1

(Signature to First Modification Agreement)

[SIGNATURES CONTINUE ON FOLLOWING PAGES]

S-2

(Signature to First Modification Agreement)

GUARANTOR CONSENT

Each of the undersigned (collectively, the "Guarantors") consents to the foregoing First Modification Agreement and the transactions contemplated thereby and reaffirms its obligations under that certain Repayment Guaranty, dated November 15, 2011 (as it heretofore may have been amended or otherwise modified from time to time, the "Guaranty"), guarantying the Loan.

Each Guarantor reaffirms that its obligations under the Guaranty are separate and distinct from Borrower's obligations and reaffirms its waivers, as set forth in the Guaranty, of each and every one of the possible defenses to such obligations.

Agreed and Acknowledged:

Dated as of:  June __, 2012

"GUARANTORS"

[SIGNATURES CONTINUE ON FOLLOWING PAGES]

S-3

(Signature to First Modification Agreement)

Inland 200 Celebration Place Delaware Business Trust

By: Inland Real Estate Corporation, a Maryland corporation, as signatory trustee

           By:

__/s/ BRETT A. BROWN____

     Name: Brett A. Brown

     Title: Executive Vice President and

     Chief Financial Officer

S-4

(Signature to First Modification Agreement)