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  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  
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  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">UNITED STATES <br>
  SECURITIES AND EXCHANGE COMMISSION<br>
  </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">WASHINGTON, D.C.&#160; 20549</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">
  
  <hr size="1" width="25%" noshade color="black" align="center">
  
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  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">FORM&nbsp;8-K<br><br></font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">CURRENT REPORT</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Pursuant to Section&nbsp;13 or 15(d)&nbsp;of the
  Securities Exchange Act of 1934</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date of Report (Date of
  earliest event reported):&#160; <b>April&nbsp;25, 2008</b>  <b>(April&nbsp;21, 2008)</b></font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">INLAND REAL ESTATE CORPORATION <br>
  </font></b><font size="2" style="font-size:10.0pt;">(Exact Name of
  Registrant as Specified in its Charter)</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div align="center">
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Maryland</font></b><font size="2" style="font-size:10.0pt;"><br>
    (State or Other Jurisdiction of Incorporation)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">001-32185</font></b><font size="2" style="font-size:10.0pt;"><br>
    (Commission File Number)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">36-3953261</font></b><font size="2" style="font-size:10.0pt;"><br>
    (IRS Employer Identification No.)</font></p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2901 Butterfield Road</font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;"><br>
  Oak Brook, Illinois 60523</font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;"><br>
  </font></b><font size="2" style="font-size:10.0pt;">(Address of
  Principal Executive Offices)</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(630) 218-8000</font></b><font size="2" style="font-size:10.0pt;"><br>
  (Registrant&#146;s Telephone Number, Including Area Code)</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">N/A</font></b><font size="2" style="font-size:10.0pt;"><br>
  (Former Name or Former Address, if Changed Since Last Report)</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check the appropriate box below if the Form&nbsp;8-K
  filing is intended to simultaneously satisfy the filing obligation of the
  registrant under any of the following provisions:</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="98%" style="border-collapse:collapse;width:98.06%;">
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    <p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font></p>
    </td>
    <td width="575" valign="top" style="padding:0in 0in 0in 0in;width:431.4pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Written communications pursuant to Rule&nbsp;425
    under the Securities Act (17 CFR 230.425)</font></p>
    </td>
   </tr>
   <tr>
    <td width="37" valign="top" style="padding:0in 0in 0in 0in;width:27.5pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="575" valign="top" style="padding:0in 0in 0in 0in;width:431.4pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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    <p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font></p>
    </td>
    <td width="575" valign="top" style="padding:0in 0in 0in 0in;width:431.4pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Soliciting material pursuant to Rule&nbsp;14a-12
    under the Exchange Act (17 CFR 240.14a-12)</font></p>
    </td>
   </tr>
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    <td width="37" valign="top" style="padding:0in 0in 0in 0in;width:27.5pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="575" valign="top" style="padding:0in 0in 0in 0in;width:431.4pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
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    <td width="37" valign="top" style="padding:0in 0in 0in 0in;width:27.5pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font></p>
    </td>
    <td width="575" valign="top" style="padding:0in 0in 0in 0in;width:431.4pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pre-commencement communications pursuant to Rule&nbsp;14d-2(b)&nbsp;under
    the Exchange Act (17 CFR 240.14d-2(b))</font></p>
    </td>
   </tr>
   <tr>
    <td width="37" valign="top" style="padding:0in 0in 0in 0in;width:27.5pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="575" valign="top" style="padding:0in 0in 0in 0in;width:431.4pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="37" valign="top" style="padding:0in 0in 0in 0in;width:27.5pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font></p>
    </td>
    <td width="575" valign="top" style="padding:0in 0in 0in 0in;width:431.4pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pre-commencement communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under
    the Exchange Act (17 CFR 240.13e-4(c))</font></p>
    </td>
   </tr>
  </table>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0in 0in 0in 0in;">
  
  <p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  </div>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">
  
  <hr size="3" width="100%" noshade color="#010101" align="left">
  
  </font></b></div>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\Vmeane\08-12442-1\task2893948\12442-1-ba.htm',USER='vmeane',CD='Apr 25 12:42 2008' -->
  
  
  
  <br clear="all" style="page-break-before:always;">
  <div style="font-family:Times New Roman;">
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item
  1.01.&#160; Entry into a Material Definitive
  Agreement.</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On April&nbsp;21, 2008,
  Inland Real Estate Corporation (the &#147;Company&#148;) entered into employment
  agreements with each of Mark E. Zalatoris, Brett A. Brown, D. Scott Carr, Beth
  Sprecher Brooks, William W. Anderson and Kristi A. Rankin.&#160; Copies of these employment agreements are
  attached to this Current Report on Form&nbsp;8-K as Exhibits 10.1, 10.2, 10.3,
  10.4, 10.5 and 10.6, respectively, and are incorporated in their entirety in
  this Item 1.01 disclosure by reference.&#160;
  The following descriptions of the material terms and conditions of the
  employment agreements do not purport to be complete and are qualified in their
  entirety by reference to Exhibits 10.1, 10.2, 10.3, 10.4, 10.5 and 10.6 hereto.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Mark E. Zalatoris.</font></i></b><font size="2" style="font-size:10.0pt;">&#160; The Company&#146;s agreement with Mr.&nbsp;Zalatoris,
  its chief executive officer and president, is effective as of April&nbsp;21,
  2008, continuing through December&nbsp;31, 2009.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under the terms of the
  agreement, the Company has agreed to pay Mr.&nbsp;Zalatoris a base salary equal
  to $450,000 per year.&#160; Mr.&nbsp;Zalatoris
  also is eligible to earn an annual cash incentive bonus, determined based on
  the Company&#146;s level of performance, measured by growth in the Company&#146;s funds
  from operations, or &#147;FFO,&#148; per fully-diluted share, compared to the FFO growth
  of its peer group, and an assessment of his performance by the compensation
  committee.&#160; For example, if the Company&#146;s
  FFO growth rate is equal to or greater than 130% of the median FFO growth rate
  for its peer group, Mr.&nbsp;Zalatoris will be entitled to receive up to 50% of
  his base salary.&#160; Mr.&nbsp;Zalatoris also
  may earn additional compensation payable in shares of the Company&#146;s restricted
  stock or options to purchase shares of the Company&#146;s common stock.&#160; Mr.&nbsp;Zalatoris may receive a number of
  shares equal to the quotient of (1)&nbsp;a percentage of his base salary, based
  again on the relative growth in the Company&#146;s FFO per fully-diluted share
  compared to the FFO growth of its peer group, divided by (2)&nbsp;the average
  of the high and low trading price of the Company&#146;s common stock as reported by
  the New York Stock Exchange (&#147;NYSE&#148;) on the date of grant.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Additionally, if the Company
  achieves a threshold level of FFO growth per fully-diluted share, it will grant
  Mr.&nbsp;Zalatoris options to purchase a number of shares of its common stock
  equal to the quotient of (a)&nbsp;10% of his base salary divided by (b)&nbsp;the
  closing price per share on the day immediately preceding the date of grant, as
  reported by the NYSE. The exercise price for each share underlying each award
  will be equal to the closing price per share on the day immediately preceding
  the date of grant, as reported by the NYSE.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the agreement is
  terminated for &#147;cause&#148; or voluntarily by Mr.&nbsp;Zalatoris, the Company will
  pay Mr.&nbsp;Zalatoris any accrued base salary, vacation pay, reimbursable
  expenses and benefits, but any unvested long term shares or stock option awards
  must immediately be forfeited.&#160; If the
  agreement is terminated &#147;without cause&#148; or by Mr.&nbsp;Zalatoris for &#147;good
  reason,&#148; the Company will pay Mr.&nbsp;Zalatoris any accrued base salary,
  vacation pay, reimbursable expenses, benefits, bonus and an amount equal to
  1.25 times the sum of his then current base salary plus an amount equal to the
  annual incentive bonus that was paid to him for the fiscal year immediately
  preceding the year of termination.&#160; If
  the termination occurs within one year of a &#147;change of control,&#148; then in
  addition to the amounts described in the preceding sentence, the Company will
  pay Mr.&nbsp;Zalatoris an amount equal to 2.99 times the amount of his total
  compensation package.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>
  
  <div align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='1',FILE='C:\JMS\Vmeane\08-12442-1\task2894382\12442-1-bc.htm',USER='vmeane',CD='Apr 25 14:53 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the agreement is
  terminated &#147;without cause,&#148; any unvested long term shares or annual stock
  options will immediately vest.&#160; If the
  agreement is terminated for &#147;good reason,&#148; however, any unvested long term
  shares or annual stock options must immediately be forfeited; provided that if
  the termination occurs within one year of a &#147;change of control,&#148; any unvested
  long term shares or annual stock options will immediately vest.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the term of the
  employment agreement and for a period of one year following termination, Mr.&nbsp;Zalatoris
  has agreed to certain non-compete and non-solicitation provisions.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Brett A. Brown.</font></i></b><font size="2" style="font-size:10.0pt;">&#160; The Company&#146;s agreement with Mr.&nbsp;Brown,
  its chief financial officer, vice president and treasurer, is effective as of January&nbsp;1,
  2008, continuing through December&nbsp;31, 2009.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under the terms of the
  agreement, the Company has agreed to pay Mr.&nbsp;Brown a base salary equal to
  $300,000 per year.&#160; Mr.&nbsp;Brown also
  is eligible to earn an annual cash incentive bonus, determined based on the
  Company&#146;s level of performance, measured by growth in the Company&#146;s FFO per
  fully-diluted share, compared to the FFO growth of its peer group, and an
  assessment of his performance by the Company&#146;s chief executive officer.&#160; For example, if the Company&#146;s FFO growth rate
  is equal to or greater than 130% of the median FFO growth rate for its peer
  group, Mr.&nbsp;Brown will be entitled to receive up to 35% of his base
  salary.&#160; Mr.&nbsp;Brown also may earn
  additional compensation payable in shares of the Company&#146;s restricted stock or
  options to purchase shares of the Company&#146;s common stock.&#160; Mr.&nbsp;Brown may receive a number of shares
  equal to the quotient of (1)&nbsp;a percentage of his base salary, based again
  on the relative growth in the Company&#146;s FFO per fully-diluted share compared to
  the FFO growth of its peer group, divided by (2)&nbsp;the average of the high
  and low trading price of the Company&#146;s common stock as reported by the NYSE on
  the date of grant.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Additionally, if the Company
  achieves a threshold level of FFO growth per fully-diluted share, it will grant
  Mr.&nbsp;Brown options to purchase a number of shares of its common stock equal
  to the quotient of (a)&nbsp;5% of his base salary divided by (b)&nbsp;the closing
  price per share on the day immediately preceding the date of grant, as reported
  by the NYSE. The exercise price for each share underlying each award will be
  equal to the closing price per share on the day immediately preceding the date
  of grant, as reported by the NYSE.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the agreement is
  terminated for &#147;cause&#148; or voluntarily by Mr.&nbsp;Brown, the Company will pay Mr.&nbsp;Brown
  any accrued base salary, vacation pay, reimbursable expenses and benefits, but
  any unvested long term shares or stock option awards must immediately be
  forfeited.&#160; If the agreement is
  terminated &#147;without cause&#148; or by Mr.&nbsp;Brown for &#147;good reason,&#148; the Company
  will pay Mr.&nbsp;Brown any accrued base salary, vacation pay, reimbursable
  expenses, benefits, bonus and an amount equal to 1.0 times the sum of his then
  current base salary plus an amount equal to the annual incentive bonus that was
  paid to him for the fiscal year immediately preceding the year of
  termination.&#160; If the termination occurs
  within one year of a &#147;change of control,&#148; then in addition to the amounts
  described in the preceding sentence, the Company will pay Mr.&nbsp;Brown an
  amount equal to 2.0 times the amount of his total compensation package.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the agreement is
  terminated &#147;without cause,&#148; any unvested long term shares or annual stock
  options will immediately vest.&#160; If the
  agreement is terminated for &#147;good reason,&#148; however, </font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  
  <div align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='2',FILE='C:\JMS\Vmeane\08-12442-1\task2894382\12442-1-bc.htm',USER='vmeane',CD='Apr 25 14:53 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">any
  unvested long term shares or annual stock options must immediately be
  forfeited; provided that if the termination occurs within one year of a &#147;change
  of control,&#148; any unvested long term shares or annual stock options will
  immediately vest.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the term of the
  employment agreement and for a period of one year following termination, Mr.&nbsp;Brown
  has agreed to certain non-compete and non-solicitation provisions.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">D. Scott Carr.</font></i></b><font size="2" style="font-size:10.0pt;">&#160; The Company&#146;s agreement with Mr.&nbsp;Carr,
  the president of Inland Commercial Property Management,&nbsp;Inc., its property
  management subsidiary (&#147;ICPM&#148;), is effective as of January&nbsp;1, 2008,
  continuing through December&nbsp;31, 2009.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under the terms of the
  agreement, the Company has agreed to pay Mr.&nbsp;Carr a base salary equal to
  $300,000 per year.&#160; Mr.&nbsp;Carr also is
  eligible to earn an annual cash incentive bonus, determined based on the
  Company&#146;s level of performance, measured by growth in the Company&#146;s FFO per
  fully-diluted share, compared to the FFO growth of its peer group, and an
  assessment of his performance by the Company&#146;s chief executive officer.&#160; For example, if the Company&#146;s FFO growth rate
  is equal to or greater than 130% of the median FFO growth rate for its peer
  group, Mr.&nbsp;Carr will be entitled to receive up to 35% of his base
  salary.&#160; Mr.&nbsp;Carr also may earn
  additional compensation payable in shares of the Company&#146;s restricted stock or
  options to purchase shares of the Company&#146;s common stock.&#160; Mr.&nbsp;Carr may receive a number of shares
  equal to the quotient of (1)&nbsp;a percentage of his base salary, based again
  on the relative growth in the Company&#146;s FFO per fully-diluted share compared to
  the FFO growth of its peer group, divided by (2)&nbsp;the average of the high
  and low trading price of the Company&#146;s common stock as reported by the NYSE on
  the date of grant.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Additionally, if the Company
  achieves a threshold level of FFO growth per fully-diluted share, it will grant
  Mr.&nbsp;Carr options to purchase a number of shares of its common stock equal
  to the quotient of (a)&nbsp;5% of his base salary divided by (b)&nbsp;the
  closing price per share on the day immediately preceding the date of grant, as
  reported by the NYSE. The exercise price for each share underlying each award
  will be equal to the closing price per share on the day immediately preceding
  the date of grant, as reported by the NYSE.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the agreement is
  terminated for &#147;cause&#148; or voluntarily by Mr.&nbsp;Carr, the Company will pay Mr.&nbsp;Carr
  any accrued base salary, vacation pay, reimbursable expenses and benefits, but
  any unvested long term shares or stock option awards must immediately be
  forfeited.&#160; If the agreement is
  terminated &#147;without cause&#148; or by Mr.&nbsp;Carr for &#147;good reason,&#148; the Company
  will pay Mr.&nbsp;Carr any accrued base salary, vacation pay, reimbursable
  expenses, benefits, bonus and an amount equal to 1.0 times the sum of his then
  current base salary plus an amount equal to the annual incentive bonus that was
  paid to him for the fiscal year immediately preceding the year of
  termination.&#160; If the termination occurs
  within one year of a &#147;change of control,&#148; then in addition to the amounts
  described in the preceding sentence, the Company will pay Mr.&nbsp;Carr an amount
  equal to 2.0 times the amount of his total compensation package.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the agreement is
  terminated &#147;without cause,&#148; any unvested long term shares or annual stock
  options will immediately vest.&#160; If the
  agreement is terminated for &#147;good reason,&#148; however, any unvested long term
  shares or annual stock options must immediately be forfeited; provided</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>
  
  <div align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='3',FILE='C:\JMS\Vmeane\08-12442-1\task2894382\12442-1-bc.htm',USER='vmeane',CD='Apr 25 14:53 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">that
  if the termination occurs within one year of a &#147;change of control,&#148; any
  unvested long term shares or annual stock options will immediately vest.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the term of the
  employment agreement and for a period of one year following termination, Mr.&nbsp;Carr
  has agreed to certain non-compete and non-solicitation provisions.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Beth Sprecher Brooks.</font></i></b><font size="2" style="font-size:10.0pt;"> The Company&#146;s agreement
  with Ms.&nbsp;Sprecher Brooks, its vice president, general counsel and
  secretary, is effective as of January&nbsp;1, 2008, continuing through December&nbsp;31,
  2009.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under the terms of the
  agreement, the Company has agreed to pay Ms.&nbsp;Sprecher Brooks a base salary
  equal to $245,000 per year.&#160; Ms.&nbsp;Sprecher
  Brooks also is eligible to earn an annual cash incentive bonus, determined
  based on the Company&#146;s level of performance, measured by growth in the Company&#146;s
  FFO per fully-diluted share, compared to the FFO growth of its peer group, and
  an assessment of her performance by the Company&#146;s chief executive officer.&#160; For example, if the Company&#146;s FFO growth rate
  is equal to or greater than 130% of the median FFO growth rate for its peer
  group, Ms.&nbsp;Sprecher Brooks will be entitled to receive up to 35% of her
  base salary.&#160; Ms.&nbsp;Sprecher Brooks
  also may earn additional compensation payable in shares of the Company&#146;s
  restricted stock to purchase shares of the Company&#146;s common stock.&#160; Ms.&nbsp;Sprecher Brooks may receive a number
  of shares or options equal to the quotient of (1)&nbsp;a percentage of her base
  salary, based again on the relative growth in the Company&#146;s FFO compared to the
  FFO per fully-diluted share growth of its peer group, divided by (2)&nbsp;the
  average of the high and low trading price of the Company&#146;s common stock as
  reported by the NYSE on the date of grant.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Additionally, if the Company
  achieves a threshold level of FFO growth per fully-diluted share, it will grant
  Ms.&nbsp;Sprecher Brooks options to purchase a number of shares of its common
  stock equal to the quotient of (a)&nbsp;5% of her base salary divided by (b)&nbsp;the
  closing price per share on the day immediately preceding the date of grant, as
  reported by the NYSE. The exercise price for each share underlying each award
  will be equal to the closing price per share on the day immediately preceding
  the date of grant, as reported by the NYSE.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the agreement is
  terminated for &#147;cause&#148; or voluntarily by Ms.&nbsp;Sprecher Brooks, the Company
  will pay Ms.&nbsp;Sprecher Brooks any accrued base salary, vacation pay,
  reimbursable expenses and benefits, but any unvested long term shares or stock
  option awards must immediately be forfeited.&#160;
  If the agreement is terminated &#147;without cause&#148; or by Ms.&nbsp;Sprecher
  Brooks for &#147;good reason,&#148; the Company will pay Ms.&nbsp;Sprecher Brooks any
  accrued base salary, vacation pay, reimbursable expenses, benefits, bonus and
  an amount equal to 1.0 times the sum of her then current base salary plus an
  amount equal to the annual incentive bonus that was paid to her for the fiscal year
  immediately preceding the year of termination.&#160;
  If the termination occurs within one year of a &#147;change of control,&#148; then
  in addition to the amounts described in the preceding sentence, the Company
  will pay Ms.&nbsp;Sprecher Brooks an amount equal to 2.0 times the amount of
  her total compensation package.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the agreement is
  terminated &#147;without cause,&#148; any unvested long term shares or annual stock
  options will immediately vest.&#160; If the
  agreement is terminated for &#147;good reason,&#148; however, any unvested long term
  shares or annual stock options must immediately be forfeited; provided</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>
  
  <div align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='4',FILE='C:\JMS\Vmeane\08-12442-1\task2894382\12442-1-bc.htm',USER='vmeane',CD='Apr 25 14:53 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">that
  if the termination occurs within one year of a &#147;change of control,&#148; any
  unvested long term shares or annual stock options will immediately vest.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the term of the
  employment agreement and for a period of one year following termination, Ms.&nbsp;Sprecher
  Brooks has agreed to certain non-compete and non-solicitation provisions.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">William W. Anderson.</font></i></b><font size="2" style="font-size:10.0pt;">&#160; The Company&#146;s agreement with Mr.&nbsp;Anderson,
  its vice president, transactions, is effective as of January&nbsp;1, 2008,
  continuing through December&nbsp;31, 2009.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under the terms of the
  agreement, the Company has agreed to pay Mr.&nbsp;Anderson a base salary equal
  to $240,000 per year.&#160; Mr.&nbsp;Anderson also
  is eligible to earn an annual cash incentive bonus, determined based on the
  Company&#146;s level of performance, measured by growth in the Company&#146;s FFO per
  fully-diluted share, compared to the FFO growth of its peer group, and an
  assessment of his performance by the Company&#146;s chief executive officer.&#160; For example, if the Company&#146;s FFO growth rate
  is equal to or greater than 130% of the median FFO growth rate for its peer
  group, Mr.&nbsp;Anderson will be entitled to receive up to 35% of his base
  salary.&#160; Mr.&nbsp;Anderson also may earn
  additional compensation payable in shares of the Company&#146;s restricted stock or
  options to purchase shares of the Company&#146;s common stock.&#160; Mr.&nbsp;Anderson may receive a number of
  shares equal to the quotient of (1)&nbsp;a percentage of his base salary, based
  again on the relative growth in the Company&#146;s FFO per fully-diluted share
  compared to the FFO growth of its peer group, divided by (2)&nbsp;the average
  of the high and low trading price of the Company&#146;s common stock as reported by
  the NYSE on the date of grant.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Additionally, if the Company
  achieves a threshold level of FFO growth per fully-diluted share, it will grant
  Mr.&nbsp;Anderson options to purchase a number of shares of its common stock
  equal to the quotient of (a)&nbsp;5% of his base salary divided by (b)&nbsp;the
  closing price per share on the day immediately preceding the date of grant, as
  reported by the NYSE. The exercise price for each share underlying each award
  will be equal to the closing price per share on the day immediately preceding
  the date of grant, as reported by the NYSE.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the agreement is
  terminated for &#147;cause&#148; or voluntarily by Mr.&nbsp;Anderson, the Company will
  pay Mr.&nbsp;Anderson any accrued base salary, vacation pay, reimbursable
  expenses and benefits, but any unvested long term shares or stock option awards
  must immediately be forfeited.&#160; If the
  agreement is terminated &#147;without cause&#148; or by Mr.&nbsp;Anderson for &#147;good
  reason,&#148; the Company will pay Mr.&nbsp;Anderson any accrued base salary,
  vacation pay, reimbursable expenses, benefits, bonus and an amount equal to 1.0
  times the sum of his then current base salary plus an amount equal to the
  annual incentive bonus that was paid to him for the fiscal year immediately
  preceding the year of termination.&#160; If
  the termination occurs within one year of a &#147;change of control,&#148; then in
  addition to the amounts described in the preceding sentence, the Company will
  pay Mr.&nbsp;Anderson an amount equal to 2.0 times the amount of his total
  compensation package.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the agreement is
  terminated &#147;without cause,&#148; any unvested long term shares or annual stock
  options will immediately vest.&#160; If the
  agreement is terminated for &#147;good reason,&#148; however, any unvested long term
  shares or annual stock options must immediately be forfeited; provided </font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>
  
  <div align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='5',FILE='C:\JMS\Vmeane\08-12442-1\task2894382\12442-1-bc.htm',USER='vmeane',CD='Apr 25 14:53 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">that
  if the termination occurs within one year of a &#147;change of control,&#148; any
  unvested long term shares or annual stock options will immediately vest.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the term of the
  employment agreement and for a period of one year following termination, Mr.&nbsp;Anderson
  has agreed to certain non-compete and non-solicitation provisions.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Kristi A. Rankin.</font></i></b><font size="2" style="font-size:10.0pt;"> The Company&#146;s agreement
  with Ms.&nbsp;Rankin, the senior vice president of ICPM, is effective as of January&nbsp;1,
  2008, continuing through December&nbsp;31, 2009.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under the terms of the
  agreement, the Company has agreed to pay Ms.&nbsp;Rankin a base salary equal to
  $210,000 per year.&#160; Ms.&nbsp;Rankin also
  is eligible to earn an annual cash incentive bonus, determined based on the
  Company&#146;s level of performance, measured by growth in the Company&#146;s FFO per
  fully-diluted share, compared to the FFO growth of its peer group, and an
  assessment of her performance by the Company&#146;s chief executive officer.&#160; For example, if the Company&#146;s FFO growth rate
  is equal to or greater than 130% of the median FFO growth rate for its peer
  group, Ms.&nbsp;Rankin will be entitled to receive up to 35% of her base
  salary.&#160; Ms.&nbsp;Rankin also may earn
  additional compensation payable in shares of the Company&#146;s restricted stock or
  options to purchase shares of the Company&#146;s common stock.&#160; Ms.&nbsp;Rankin may receive a number of
  shares equal to the quotient of (1)&nbsp;a percentage of her base salary, based
  again on the relative growth in the Company&#146;s FFO per fully-diluted share
  compared to the FFO growth of its peer group, divided by (2)&nbsp;the average
  of the high and low trading price of the Company&#146;s common stock as reported by
  the NYSE on the date of grant.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Additionally, if the Company
  achieves a threshold level of FFO growth per fully-diluted share, it will grant
  Ms.&nbsp;Rankin options to purchase a number of shares of its common stock
  equal to the quotient of (a)&nbsp;5% of her base salary divided by (b)&nbsp;the
  closing price per share on the day immediately preceding the date of grant, as
  reported by the NYSE. The exercise price for each share underlying each award
  will be equal to the closing price per share on the day immediately preceding
  the date of grant, as reported by the NYSE.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the agreement is
  terminated for &#147;cause&#148; or voluntarily by Ms.&nbsp;Rankin, the Company will pay Ms.&nbsp;Rankin
  any accrued base salary, vacation pay, reimbursable expenses and benefits, but
  any unvested long term shares or stock option awards must immediately be
  forfeited.&#160; If the agreement is
  terminated &#147;without cause&#148; or by Ms.&nbsp;Rankin for &#147;good reason,&#148; the Company
  will pay Ms.&nbsp;Rankin any accrued base salary, vacation pay, reimbursable
  expenses, benefits, bonus and an amount equal to 1.0 times the sum of her then
  current base salary plus an amount equal to the annual incentive bonus that was
  paid to her for the fiscal year immediately preceding the year of
  termination.&#160; If the termination occurs
  within one year of a &#147;change of control,&#148; then in addition to the amounts
  described in the preceding sentence, the Company will pay Ms.&nbsp;Rankin an
  amount equal to 2.0 times the amount of her total compensation package.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the agreement is
  terminated &#147;without cause,&#148; any unvested long term shares or annual stock
  options will immediately vest.&#160; If the
  agreement is terminated for &#147;good reason,&#148; however, any unvested long term
  shares or annual stock options must immediately be forfeited; provided that if
  the termination occurs within one year of a &#147;change of control,&#148; any unvested
  long term shares or annual stock options will immediately vest.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='6',FILE='C:\JMS\Vmeane\08-12442-1\task2894382\12442-1-bc.htm',USER='vmeane',CD='Apr 25 14:53 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the term of the
  employment agreement and for a period of one year following termination, Ms.&nbsp;Rankin
  has agreed to certain non-compete and non-solicitation provisions.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 2.03 Creation of a Direct
  Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of
  a Registrant.</font></b></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On April&nbsp;21, 2008, the
  Company entered into a credit agreement (the &#147;Credit Agreement&#148;) with KeyBanc
  Capital Markets and Wachovia Capital Markets, LLC as co-lead arrangers and book
  managers and KeyBank National Association as administrative agent (referred to
  herein as &#147;Lender&#148; and &#147;Agent,&#148; in its respective roles), and other lending
  institutions that are parties to the credit facility (collectively with KeyBank
  National Association, the &#147;Lenders&#148;).&#160;
  Under the Credit Agreement, the Company may borrow, on an unsecured
  basis, up to $155,000,000 (the &#147;Facility Amount&#148;).&#160; The Company has the right to increase the
  Facility Amount to $300,000,000, provided that: (a)&nbsp;at the time of the
  proposed increase there is neither a default, nor any condition, which after
  notice or lapse of time would constitute a default by the Company; and (b)&nbsp;either
  one or more Lenders increase their respective funding commitments, in their
  sole discretion, or the Company, Agent, or the lead arrangers designate one or
  more new institutions (acceptable to each of the Company, the Administrative
  Agent and Lead Arrangers) to become Lenders providing funding commitments for
  the increased amount.&#160; Up to $25,000,000
  of the Facility Amount will be available for the issuance of letters of
  credit.&#160; This credit facility will be a
  direct, unsecured recourse obligation of the Company.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A swing line of credit of
  $25,000,000 will also be available for same day borrowings by the Company.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company will be required
  to pay interest only, on a monthly basis during the term of the facility, with
  all outstanding principal and unpaid interest due upon termination of the
  credit.&#160; The credit facility will mature
  three years from closing.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Initially, the Company may
  borrow at rates equal to (i)&nbsp;LIBOR plus a margin ranging from 120 basis
  points to 165 basis points, depending on the Company&#146;s ratio of consolidated
  outstanding indebtedness to total asset value or (ii)&nbsp;the Alternate Base
  Rate (as defined herein), plus a margin up to 35 basis points, depending on the
  Company&#146;s ratio of consolidated outstanding indebtedness to total asset
  value.&#160; Upon the earlier of (1)&nbsp;the
  Company having an unencumbered leverage ratio of 1.5 or (2)&nbsp;December&nbsp;31,
  2008, the Company may borrow at rates equal to (i)&nbsp;LIBOR plus a margin
  ranging from 100 basis points to 150 basis points, depending on the Company&#146;s
  leverage or (ii)&nbsp;the Alternate Base Rate, plus a margin up to 30 basis
  points, depending on the Company&#146;s leverage.&#160;
  As used herein, &#147;Alternate Base Rate&#148; means, for any day, the higher of
  the prime rate announced by the Agent or the sum of the Federal Funds Effective
  Rate plus 0.5% per annum.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Credit Agreement
  contains customary affirmative, negative and financial covenants,
  representations, warranties and borrowing conditions.&#160; The Company&#146;s activities are limited to
  acquiring retail properties and any incidental business activities and
  investments. Unimproved land holdings or land bank (excluding land that is either
  under development or planned for development in the next twelve months),
  investments in partnerships or joint ventures, construction activities and
  mortgage notes receivable are limited to the levels as described in the Credit
  Agreement.</font></p>
  
  <p style="margin:0in 0in .0001pt 6.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='7',FILE='C:\JMS\Vmeane\08-12442-1\task2894382\12442-1-bc.htm',USER='vmeane',CD='Apr 25 14:53 2008' -->
  
  
  
  <br clear="all" style="page-break-before:always;">
  <div style="font-family:Times New Roman;">
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Among
  the customary events of default to which the Company is subject, the occurrence
  of any of the following will constitute an event of default under the Credit
  Agreement, upon which the Lenders will have no obligation to make further
  disbursements of this credit facility, and the outstanding balance of the
  facility will become immediately due and payable:</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Failure to pay principal
  when due;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Failure to pay interest and
  fees within five business days after due;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Change of Control (stock
  ownership other than in the normal course of business and board composition);</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Change in Management (change
  of any two of the following: D. Scott Carr, Mark E. Zalatoris or Brett A.
  Brown);</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Violation of any financial
  covenant or any negative covenants;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Violation of other
  covenants, subject to customary grace periods;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Material inaccuracy of any
  representation or warranty;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Company disavows, revokes or
  terminates any facility document or otherwise challenges or contest in
  proceeding the validity or enforceability of any credit facility document;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Insolvency or bankruptcy of
  the Company or any consolidated subsidiary;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Violation of ERISA
  regulations;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">A federal tax lien filed
  under Section&nbsp;6323 of the Code remains undischarged for a period of
  twenty-five days;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Judgments against the
  Company or any consolidated subsidiary in excess of $10,000,000 in aggregate
  that remain unsatisfied or unstayed for more than 60 days; or</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Failure to remediate within
  the time period permitted by law or governmental order (or within a reasonable
  time give the nature of the problem if no specific time period has been given)
  material environmental problems.</font></h1>
  
  <h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The information set forth
  above does not purport to be complete in scope and is qualified in its entirety
  by the full text of the Credit Agreement, which is attached to this Current
  Report as Exhibit&nbsp;10.7 and incorporated into this Item 2.03 by reference.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>
  
  <div style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">
  
  <hr size="3" width="100%" noshade color="#010101" align="left">
  
  </font></b></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='8',FILE='C:\JMS\Vmeane\08-12442-1\task2894382\12442-1-be.htm',USER='vmeane',CD='Apr 25 14:54 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 5.02.&#160; Departure of Directors or Certain Officers;
  Election of Directors; Appointment of Certain Officers; Compensatory
  Arrangements of Certain Officers.</font></b></p>
  
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Appointment of New Chairman of
  the Board</font></u></i></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On April&nbsp;21, 2008, the
  Company&#146;s board of directors appointed Thomas P. D&#146;Arcy, an independent director,
  as its chairman, replacing Daniel L. Goodwin.&#160;
  Mr.&nbsp;Goodwin remains a member of the board of directors.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Resignation of President and
  Chief Executive Officer; Director not Standing for Re-election</font></u></i></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Robert D. Parks resigned his
  positions as president and chief executive officer of the Company effective April&nbsp;21,
  2008.&#160; Mr.&nbsp;Parks remains a member of
  the Company&#146;s board of directors but has advised the Company that he will not
  stand for reelection at the annual meeting scheduled for June&nbsp;11,
  2008.&#160; The Consulting Agreement entered
  into between Mr.&nbsp;Parks and the Company on July&nbsp;1, 2000, included as Exhibit&nbsp;10.4
  to the Company&#146;s Current Report on Form&nbsp;8-K filed on July&nbsp;14, 2000,
  has been voluntarily terminated by agreement of the parties.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Appointment of President and
  Chief Executive Officer; Resignation of Treasurer</font></u></i></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Mark E. Zalatoris, has been appointed as the Company&#146;s
  president and chief executive officer and has resigned his position as
  treasurer effective as of April&nbsp;21, 2008.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The discussion under Item 1.01 above regarding the
  terms of employment and the employment contract of Mr.&nbsp;Zalatoris is
  incorporated into this Item 5.02 by reference.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Appointment of Treasurer</font></u></i></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s board of
  directors has appointed Brett A. Brown as Treasurer effective April&nbsp;21,
  2008.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item
  5.03&#160; Amendments to Articles of
  Incorporation or Bylaws; Change in Fiscal Year.</font></b></p>
  
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Effective April&nbsp;21,
  2008, the Company&#146;s board of directors amended and restated its bylaws (the &#147;Bylaws&#148;).&#160; Section&nbsp;11 of Article&nbsp;III of the
  Bylaws has been amended to provide for the board&#146;s ability to delegate the
  authority to fix the compensation of directors to the Corporate Governance and
  Nominating Committee, which authority is consistent with the Company&#146;s
  Guidelines on Corporate Governance and the charter of that committee.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;8 of Article&nbsp;IV
  has been deleted in its entirety to eliminate chairman of the board as an
  officer position.&#160; The subsequent
  sections of Article&nbsp;VI have been renumbered accordingly.&#160; A conforming change also has been made to Section&nbsp;1
  of Article&nbsp;VI by removing the chairman as one of the officers who may sign
  certificates of the Company&#146;s stock.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The full text of the Bylaws,
  including amended Articles III, IV and VI, is filed as Exhibit&nbsp;3.1 to this
  Current Report and is incorporated into this Item 5.03 by reference.</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>
  
  <div style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">
  
  <hr size="3" width="100%" noshade color="#010101" align="left">
  
  </font></b></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='9',FILE='C:\JMS\Vmeane\08-12442-1\task2894382\12442-1-be.htm',USER='vmeane',CD='Apr 25 14:54 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 9.01.&#160; Financial Statements
  and Exhibits.</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.42%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.2</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.36%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amended
    and Restated Bylaws effective April&nbsp;21, 2008.</font></p>
    </td>
   </tr>
   <tr>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.42%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.36%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.42%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.36%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Employment
    Agreement between Inland Real Estate Corporation and Mark E. Zalatoris,
    effective as of April&nbsp;21, 2008.</font></p>
    </td>
   </tr>
   <tr>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.42%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.36%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.42%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.2</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.36%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Employment
    Agreement between Inland Real Estate Corporation and Brett A. Brown,
    effective as of January&nbsp;1, 2008.</font></p>
    </td>
   </tr>
   <tr>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.42%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.36%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.42%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.3</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.36%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Employment
    Agreement between Inland Real Estate Corporation and D. Scott Carr, effective
    as of January&nbsp;1, 2008.</font></p>
    </td>
   </tr>
   <tr>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.42%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.36%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.42%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.4</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.36%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Employment
    Agreement between Inland Real Estate Corporation and Beth Sprecher Brooks,
    effective as of January&nbsp;1, 2008.</font></p>
    </td>
   </tr>
   <tr>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.42%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.36%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.42%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.5</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.36%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Employment
    Agreement between Inland Real Estate Corporation and William W. Anderson,
    effective as of January&nbsp;1, 2008.</font></p>
    </td>
   </tr>
   <tr>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.42%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.36%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.42%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.6</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.36%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Employment
    Agreement between Inland Real Estate Corporation and Kristi A. Rankin,
    effective as of January&nbsp;1, 2008.</font></p>
    </td>
   </tr>
   <tr>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.42%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.36%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.42%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.7</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.36%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Credit
    Agreement dated April&nbsp;21, 2008 between and among Inland Real Estate
    Corporation and KeyBanc Capital Markets and Wachovia Capital Markets, LLC, as
    co-lead arrangers and book managers, and KeyBank National Association, as
    administrative agent, and a syndicate of other lenders.</font></p>
    </td>
   </tr>
   <tr>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.42%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.36%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.42%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.36%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Press
    Release dated April&nbsp;21, 2008.</font></p>
    </td>
   </tr>
  </table>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>
  
  <div style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">
  
  <hr size="3" width="100%" noshade color="#010101" align="left">
  
  </font></b></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='10',FILE='C:\JMS\Vmeane\08-12442-1\task2894382\12442-1-be.htm',USER='vmeane',CD='Apr 25 14:54 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURES</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the
  requirements of the Securities Exchange Act of 1934, the registrant has duly
  caused this report to be signed on its behalf by the undersigned hereunto duly
  authorized.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt 2.5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="40%" valign="top" style="padding:0in .7pt 0in .7pt;width:40.02%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="59%" colspan="2" valign="bottom" style="padding:0in .7pt 0in .7pt;width:59.98%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">INLAND REAL ESTATE
    CORPORATION</font></p>
    </td>
   </tr>
   <tr>
    <td width="40%" valign="top" style="padding:0in .7pt 0in .7pt;width:40.02%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="53%" valign="top" style="padding:0in .7pt 0in .7pt;width:53.32%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="40%" valign="top" style="padding:0in .7pt 0in .7pt;width:40.02%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:&nbsp; April&nbsp;25, 2008</font></p>
    </td>
    <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.66%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
    </td>
    <td width="53%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:53.32%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;/s/ Mark E.
    Zalatoris</font></p>
    </td>
   </tr>
   <tr>
    <td width="40%" valign="top" style="padding:0in .7pt 0in .7pt;width:40.02%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.66%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
    </td>
    <td width="53%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:53.32%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;Mark E.
    Zalatoris</font></p>
    </td>
   </tr>
   <tr>
    <td width="40%" valign="top" style="padding:0in .7pt 0in .7pt;width:40.02%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.66%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
    </td>
    <td width="53%" valign="top" style="padding:0in .7pt 0in .7pt;width:53.32%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;President and
    Chief Executive Officer</font></p>
    </td>
   </tr>
  </table>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>
  
  <div align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">
  
  <hr size="3" width="100%" noshade color="#010101" align="left">
  
  </font></b></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='11',FILE='C:\JMS\Vmeane\08-12442-1\task2894382\12442-1-be.htm',USER='vmeane',CD='Apr 25 14:54 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT INDEX</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">&nbsp;</font></b></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:8.02%;">
    <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit&nbsp;No.</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:89.64%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.02%;">
    <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.64%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.02%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.2</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.64%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amended
    and Restated Bylaws effective April&nbsp;21, 2008.</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.02%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.64%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.02%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.64%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Employment
    Agreement between Inland Real Estate Corporation and Mark E. Zalatoris,
    effective as of April&nbsp;21, 2008.</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.02%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.64%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.02%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.2</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.64%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Employment
    Agreement between Inland Real Estate Corporation and Brett A. Brown,
    effective as of January&nbsp;1, 2008.</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.02%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.64%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.02%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.3</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.64%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Employment
    Agreement between Inland Real Estate Corporation and D. Scott Carr, effective
    as of January&nbsp;1, 2008.</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.02%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.64%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.02%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.4</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.64%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Employment
    Agreement between Inland Real Estate Corporation and Beth Sprecher Brooks,
    effective as of January&nbsp;1, 2008.</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.02%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.64%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.02%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.5</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.64%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Employment
    Agreement between Inland Real Estate Corporation and William W. Anderson,
    effective as of January&nbsp;1, 2008.</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.02%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.64%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.02%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.6</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.64%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Employment
    Agreement between Inland Real Estate Corporation and Kristi A. Rankin,
    effective as of January&nbsp;1, 2008.</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.02%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.64%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.02%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.7</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.64%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Credit
    Agreement dated April&nbsp;21, 2008 between and among Inland Real Estate
    Corporation and KeyBanc Capital Markets and Wachovia Capital Markets, LLC, as
    co-lead arrangers and book managers, and KeyBank National Association, as
    administrative agent, and a syndicate of other lenders.</font></p>
    </td>
   </tr>
   <tr>
    <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.02%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.34%;">
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    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
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    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Press
    Release dated April&nbsp;21, 2008.</font></p>
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metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "a08-12442_18k.htm", "description": "8-K", "secsgml_size_bytes": 111647}]
metadata_filer: {"company-data": {"conformed-name": "INLAND REAL ESTATE CORP", "cik": "0000923284", "assigned-sic": "6798", "irs-number": "363953261", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-32185", "film-number": "08778206"}, "business-address": {"street1": "2901 BUTTERFIELD RD", "city": "OAK BROOK", "state": "IL", "zip": "60523", "phone": "6302188000"}, "mail-address": {"street1": "2901 BUTTERFIELD RD", "city": "OAK BROOK", "state": "IL", "zip": "60523"}, "former-company": {"former-conformed-name": "INLAND MONTHLY INCOME FUND III INC", "date-changed": "19940518"}}
text: UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, D.C.  20549
  FORM 8-K
  CURRENT REPORT
  Pursuant to Section 13 or 15(d) of the
  Securities Exchange Act of 1934
  Date of Report (Date of
  earliest event reported):
  April 25, 2008
  (April 21, 2008)
  INLAND REAL ESTATE CORPORATION
  (Exact Name of
  Registrant as Specified in its Charter)
  Maryland
  (State or Other Jurisdiction of Incorporation)
  001-32185
  (Commission File Number)
  36-3953261
  (IRS Employer Identification No.)
  2901 Butterfield Road
  Oak Brook, Illinois 60523
  (Address of
  Principal Executive Offices)
  (630) 218-8000
  (Registrant's Telephone Number, Including Area Code)
  N/A
  (Former Name or Former Address, if Changed Since Last Report)
  Check the appropriate box below if the Form 8-K
  filing is intended to simultaneously satisfy the filing obligation of the
  registrant under any of the following provisions:
  o
  Written communications pursuant to Rule 425
    under the Securities Act (17 CFR 230.425)
  o
  Soliciting material pursuant to Rule 14a-12
    under the Exchange Act (17 CFR 240.14a-12)
  o
  Pre-commencement communications pursuant to Rule 14d-2(b) under
    the Exchange Act (17 CFR 240.14d-2(b))
  o
  Pre-commencement communications pursuant to Rule 13e-4(c) under
    the Exchange Act (17 CFR 240.13e-4(c))
  Item
  1.01.  Entry into a Material Definitive
  Agreement.
  On April 21, 2008,
  Inland Real Estate Corporation (the "Company") entered into employment
  agreements with each of Mark E. Zalatoris, Brett A. Brown, D. Scott Carr, Beth
  Sprecher Brooks, William W. Anderson and Kristi A. Rankin.  Copies of these employment agreements are
  attached to this Current Report on Form 8-K as Exhibits 10.1, 10.2, 10.3,
  10.4, 10.5 and 10.6, respectively, and are incorporated in their entirety in
  this Item 1.01 disclosure by reference. 
  The following descriptions of the material terms and conditions of the
  employment agreements do not purport to be complete and are qualified in their
  entirety by reference to Exhibits 10.1, 10.2, 10.3, 10.4, 10.5 and 10.6 hereto.
  Mark E. Zalatoris.
  The Company's agreement with Mr. Zalatoris,
  its chief executive officer and president, is effective as of April 21,
  2008, continuing through December 31, 2009.
  Under the terms of the
  agreement, the Company has agreed to pay Mr. Zalatoris a base salary equal
  to $450,000 per year.  Mr. Zalatoris
  also is eligible to earn an annual cash incentive bonus, determined based on
  the Company's level of performance, measured by growth in the Company's funds
  from operations, or "FFO," per fully-diluted share, compared to the FFO growth
  of its peer group, and an assessment of his performance by the compensation
  committee.  For example, if the Company's
  FFO growth rate is equal to or greater than 130% of the median FFO growth rate
  for its peer group, Mr. Zalatoris will be entitled to receive up to 50% of
  his base salary.  Mr. Zalatoris also
  may earn additional compensation payable in shares of the Company's restricted
  stock or options to purchase shares of the Company's common stock.  Mr. Zalatoris may receive a number of
  shares equal to the quotient of (1) a percentage of his base salary, based
  again on the relative growth in the Company's FFO per fully-diluted share
  compared to the FFO growth of its peer group, divided by (2) the average
  of the high and low trading price of the Company's common stock as reported by
  the New York Stock Exchange ("NYSE") on the date of grant.
  Additionally, if the Company
  achieves a threshold level of FFO growth per fully-diluted share, it will grant
  Mr. Zalatoris options to purchase a number of shares of its common stock
  equal to the quotient of (a) 10% of his base salary divided by (b) the
  closing price per share on the day immediately preceding the date of grant, as
  reported by the NYSE. The exercise price for each share underlying each award
  will be equal to the closing price per share on the day immediately preceding
  the date of grant, as reported by the NYSE.
  If the agreement is
  terminated for "cause" or voluntarily by Mr. Zalatoris, the Company will
  pay Mr. Zalatoris any accrued base salary, vacation pay, reimbursable
  expenses and benefits, but any unvested long term shares or stock option awards
  must immediately be forfeited.  If the
  agreement is terminated "without cause" or by Mr. Zalatoris for "good
  reason," the Company will pay Mr. Zalatoris any accrued base salary,
  vacation pay, reimbursable expenses, benefits, bonus and an amount equal to
  1.25 times the sum of his then current base salary plus an amount equal to the
  annual incentive bonus that was paid to him for the fiscal year immediately
  preceding the year of termination.  If
  the termination occurs within one year of a "change of control," then in
  addition to the amounts described in the preceding sentence, the Company will
  pay Mr. Zalatoris an amount equal to 2.99 times the amount of his total
  compensation package.
  1
  If the agreement is
  terminated "without cause," any unvested long term shares or annual stock
  options will immediately vest.  If the
  agreement is terminated for "good reason," however, any unvested long term
  shares or annual stock options must immediately be forfeited; provided that if
  the termination occurs within one year of a "change of control," any unvested
  long term shares or annual stock options will immediately vest.
  During the term of the
  employment agreement and for a period of one year following termination, Mr. Zalatoris
  has agreed to certain non-compete and non-solicitation provisions.
  Brett A. Brown.
  The Company's agreement with Mr. Brown,
  its chief financial officer, vice president and treasurer, is effective as of January 1,
  2008, continuing through December 31, 2009.
  Under the terms of the
  agreement, the Company has agreed to pay Mr. Brown a base salary equal to
  $300,000 per year.  Mr. Brown also
  is eligible to earn an annual cash incentive bonus, determined based on the
  Company's level of performance, measured by growth in the Company's FFO per
  fully-diluted share, compared to the FFO growth of its peer group, and an
  assessment of his performance by the Company's chief executive officer.  For example, if the Company's FFO growth rate
  is equal to or greater than 130% of the median FFO growth rate for its peer
  group, Mr. Brown will be entitled to receive up to 35% of his base
  salary.  Mr. Brown also may earn
  additional compensation payable in shares of the Company's restricted stock or
  options to purchase shares of the Company's common stock.  Mr. Brown may receive a number of shares
  equal to the quotient of (1) a percentage of his base salary, based again
  on the relative growth in the Company's FFO per fully-diluted share compared to
  the FFO growth of its peer group, divided by (2) the average of the high
  and low trading price of the Company's common stock as reported by the NYSE on
  the date of grant.
  Additionally, if the Company
  achieves a threshold level of FFO growth per fully-diluted share, it will grant
  Mr. Brown options to purchase a number of shares of its common stock equal
  to the quotient of (a) 5% of his base salary divided by (b) the closing
  price per share on the day immediately preceding the date of grant, as reported
  by the NYSE. The exercise price for each share underlying each award will be
  equal to the closing price per share on the day immediately preceding the date
  of grant, as reported by the NYSE.
  If the agreement is
  terminated for "cause" or voluntarily by Mr. Brown, the Company will pay Mr. Brown
  any accrued base salary, vacation pay, reimbursable expenses and benefits, but
  any unvested long term shares or stock option awards must immediately be
  forfeited.  If the agreement is
  terminated "without cause" or by Mr. Brown for "good reason," the Company
  will pay Mr. Brown any accrued base salary, vacation pay, reimbursable
  expenses, benefits, bonus and an amount equal to 1.0 times the sum of his then
  current base salary plus an amount equal to the annual incentive bonus that was
  paid to him for the fiscal year immediately preceding the year of
  termination.  If the termination occurs
  within one year of a "change of control," then in addition to the amounts
  described in the preceding sentence, the Company will pay Mr. Brown an
  amount equal to 2.0 times the amount of his total compensation package.
  If the agreement is
  terminated "without cause," any unvested long term shares or annual stock
  options will immediately vest.  If the
  agreement is terminated for "good reason," however,
  2
  any
  unvested long term shares or annual stock options must immediately be
  forfeited; provided that if the termination occurs within one year of a "change
  of control," any unvested long term shares or annual stock options will
  immediately vest.
  During the term of the
  employment agreement and for a period of one year following termination, Mr. Brown
  has agreed to certain non-compete and non-solicitation provisions.
  D. Scott Carr.
  The Company's agreement with Mr. Carr,
  the president of Inland Commercial Property Management, Inc., its property
  management subsidiary ("ICPM"), is effective as of January 1, 2008,
  continuing through December 31, 2009.
  Under the terms of the
  agreement, the Company has agreed to pay Mr. Carr a base salary equal to
  $300,000 per year.  Mr. Carr also is
  eligible to earn an annual cash incentive bonus, determined based on the
  Company's level of performance, measured by growth in the Company's FFO per
  fully-diluted share, compared to the FFO growth of its peer group, and an
  assessment of his performance by the Company's chief executive officer.  For example, if the Company's FFO growth rate
  is equal to or greater than 130% of the median FFO growth rate for its peer
  group, Mr. Carr will be entitled to receive up to 35% of his base
  salary.  Mr. Carr also may earn
  additional compensation payable in shares of the Company's restricted stock or
  options to purchase shares of the Company's common stock.  Mr. Carr may receive a number of shares
  equal to the quotient of (1) a percentage of his base salary, based again
  on the relative growth in the Company's FFO per fully-diluted share compared to
  the FFO growth of its peer group, divided by (2) the average of the high
  and low trading price of the Company's common stock as reported by the NYSE on
  the date of grant.
  Additionally, if the Company
  achieves a threshold level of FFO growth per fully-diluted share, it will grant
  Mr. Carr options to purchase a number of shares of its common stock equal
  to the quotient of (a) 5% of his base salary divided by (b) the
  closing price per share on the day immediately preceding the date of grant, as
  reported by the NYSE. The exercise price for each share underlying each award
  will be equal to the closing price per share on the day immediately preceding
  the date of grant, as reported by the NYSE.
  If the agreement is
  terminated for "cause" or voluntarily by Mr. Carr, the Company will pay Mr. Carr
  any accrued base salary, vacation pay, reimbursable expenses and benefits, but
  any unvested long term shares or stock option awards must immediately be
  forfeited.  If the agreement is
  terminated "without cause" or by Mr. Carr for "good reason," the Company
  will pay Mr. Carr any accrued base salary, vacation pay, reimbursable
  expenses, benefits, bonus and an amount equal to 1.0 times the sum of his then
  current base salary plus an amount equal to the annual incentive bonus that was
  paid to him for the fiscal year immediately preceding the year of
  termination.  If the termination occurs
  within one year of a "change of control," then in addition to the amounts
  described in the preceding sentence, the Company will pay Mr. Carr an amount
  equal to 2.0 times the amount of his total compensation package.
  If the agreement is
  terminated "without cause," any unvested long term shares or annual stock
  options will immediately vest.  If the
  agreement is terminated for "good reason," however, any unvested long term
  shares or annual stock options must immediately be forfeited; provided
  3
  that
  if the termination occurs within one year of a "change of control," any
  unvested long term shares or annual stock options will immediately vest.
  During the term of the
  employment agreement and for a period of one year following termination, Mr. Carr
  has agreed to certain non-compete and non-solicitation provisions.
  Beth Sprecher Brooks.
  The Company's agreement
  with Ms. Sprecher Brooks, its vice president, general counsel and
  secretary, is effective as of January 1, 2008, continuing through December 31,
  2009.
  Under the terms of the
  agreement, the Company has agreed to pay Ms. Sprecher Brooks a base salary
  equal to $245,000 per year.  Ms. Sprecher
  Brooks also is eligible to earn an annual cash incentive bonus, determined
  based on the Company's level of performance, measured by growth in the Company's
  FFO per fully-diluted share, compared to the FFO growth of its peer group, and
  an assessment of her performance by the Company's chief executive officer.  For example, if the Company's FFO growth rate
  is equal to or greater than 130% of the median FFO growth rate for its peer
  group, Ms. Sprecher Brooks will be entitled to receive up to 35% of her
  base salary.  Ms. Sprecher Brooks
  also may earn additional compensation payable in shares of the Company's
  restricted stock to purchase shares of the Company's common stock.  Ms. Sprecher Brooks may receive a number
  of shares or options equal to the quotient of (1) a percentage of her base
  salary, based again on the relative growth in the Company's FFO compared to the
  FFO per fully-diluted share growth of its peer group, divided by (2) the
  average of the high and low trading price of the Company's common stock as
  reported by the NYSE on the date of grant.
  Additionally, if the Company
  achieves a threshold level of FFO growth per fully-diluted share, it will grant
  Ms. Sprecher Brooks options to purchase a number of shares of its common
  stock equal to the quotient of (a) 5% of her base salary divided by (b) the
  closing price per share on the day immediately preceding the date of grant, as
  reported by the NYSE. The exercise price for each share underlying each award
  will be equal to the closing price per share on the day immediately preceding
  the date of grant, as reported by the NYSE.
  If the agreement is
  terminated for "cause" or voluntarily by Ms. Sprecher Brooks, the Company
  will pay Ms. Sprecher Brooks any accrued base salary, vacation pay,
  reimbursable expenses and benefits, but any unvested long term shares or stock
  option awards must immediately be forfeited. 
  If the agreement is terminated "without cause" or by Ms. Sprecher
  Brooks for "good reason," the Company will pay Ms. Sprecher Brooks any
  accrued base salary, vacation pay, reimbursable expenses, benefits, bonus and
  an amount equal to 1.0 times the sum of her then current base salary plus an
  amount equal to the annual incentive bonus that was paid to her for the fiscal year
  immediately preceding the year of termination. 
  If the termination occurs within one year of a "change of control," then
  in addition to the amounts described in the preceding sentence, the Company
  will pay Ms. Sprecher Brooks an amount equal to 2.0 times the amount of
  her total compensation package.
  If the agreement is
  terminated "without cause," any unvested long term shares or annual stock
  options will immediately vest.  If the
  agreement is terminated for "good reason," however, any unvested long term
  shares or annual stock options must immediately be forfeited; provided
  4
  that
  if the termination occurs within one year of a "change of control," any
  unvested long term shares or annual stock options will immediately vest.
  During the term of the
  employment agreement and for a period of one year following termination, Ms. Sprecher
  Brooks has agreed to certain non-compete and non-solicitation provisions.
  William W. Anderson.
  The Company's agreement with Mr. Anderson,
  its vice president, transactions, is effective as of January 1, 2008,
  continuing through December 31, 2009.
  Under the terms of the
  agreement, the Company has agreed to pay Mr. Anderson a base salary equal
  to $240,000 per year.  Mr. Anderson also
  is eligible to earn an annual cash incentive bonus, determined based on the
  Company's level of performance, measured by growth in the Company's FFO per
  fully-diluted share, compared to the FFO growth of its peer group, and an
  assessment of his performance by the Company's chief executive officer.  For example, if the Company's FFO growth rate
  is equal to or greater than 130% of the median FFO growth rate for its peer
  group, Mr. Anderson will be entitled to receive up to 35% of his base
  salary.  Mr. Anderson also may earn
  additional compensation payable in shares of the Company's restricted stock or
  options to purchase shares of the Company's common stock.  Mr. Anderson may receive a number of
  shares equal to the quotient of (1) a percentage of his base salary, based
  again on the relative growth in the Company's FFO per fully-diluted share
  compared to the FFO growth of its peer group, divided by (2) the average
  of the high and low trading price of the Company's common stock as reported by
  the NYSE on the date of grant.
  Additionally, if the Company
  achieves a threshold level of FFO growth per fully-diluted share, it will grant
  Mr. Anderson options to purchase a number of shares of its common stock
  equal to the quotient of (a) 5% of his base salary divided by (b) the
  closing price per share on the day immediately preceding the date of grant, as
  reported by the NYSE. The exercise price for each share underlying each award
  will be equal to the closing price per share on the day immediately preceding
  the date of grant, as reported by the NYSE.
  If the agreement is
  terminated for "cause" or voluntarily by Mr. Anderson, the Company will
  pay Mr. Anderson any accrued base salary, vacation pay, reimbursable
  expenses and benefits, but any unvested long term shares or stock option awards
  must immediately be forfeited.  If the
  agreement is terminated "without cause" or by Mr. Anderson for "good
  reason," the Company will pay Mr. Anderson any accrued base salary,
  vacation pay, reimbursable expenses, benefits, bonus and an amount equal to 1.0
  times the sum of his then current base salary plus an amount equal to the
  annual incentive bonus that was paid to him for the fiscal year immediately
  preceding the year of termination.  If
  the termination occurs within one year of a "change of control," then in
  addition to the amounts described in the preceding sentence, the Company will
  pay Mr. Anderson an amount equal to 2.0 times the amount of his total
  compensation package.
  If the agreement is
  terminated "without cause," any unvested long term shares or annual stock
  options will immediately vest.  If the
  agreement is terminated for "good reason," however, any unvested long term
  shares or annual stock options must immediately be forfeited; provided
  5
  that
  if the termination occurs within one year of a "change of control," any
  unvested long term shares or annual stock options will immediately vest.
  During the term of the
  employment agreement and for a period of one year following termination, Mr. Anderson
  has agreed to certain non-compete and non-solicitation provisions.
  Kristi A. Rankin.
  The Company's agreement
  with Ms. Rankin, the senior vice president of ICPM, is effective as of January 1,
  2008, continuing through December 31, 2009.
  Under the terms of the
  agreement, the Company has agreed to pay Ms. Rankin a base salary equal to
  $210,000 per year.  Ms. Rankin also
  is eligible to earn an annual cash incentive bonus, determined based on the
  Company's level of performance, measured by growth in the Company's FFO per
  fully-diluted share, compared to the FFO growth of its peer group, and an
  assessment of her performance by the Company's chief executive officer.  For example, if the Company's FFO growth rate
  is equal to or greater than 130% of the median FFO growth rate for its peer
  group, Ms. Rankin will be entitled to receive up to 35% of her base
  salary.  Ms. Rankin also may earn
  additional compensation payable in shares of the Company's restricted stock or
  options to purchase shares of the Company's common stock.  Ms. Rankin may receive a number of
  shares equal to the quotient of (1) a percentage of her base salary, based
  again on the relative growth in the Company's FFO per fully-diluted share
  compared to the FFO growth of its peer group, divided by (2) the average
  of the high and low trading price of the Company's common stock as reported by
  the NYSE on the date of grant.
  Additionally, if the Company
  achieves a threshold level of FFO growth per fully-diluted share, it will grant
  Ms. Rankin options to purchase a number of shares of its common stock
  equal to the quotient of (a) 5% of her base salary divided by (b) the
  closing price per share on the day immediately preceding the date of grant, as
  reported by the NYSE. The exercise price for each share underlying each award
  will be equal to the closing price per share on the day immediately preceding
  the date of grant, as reported by the NYSE.
  If the agreement is
  terminated for "cause" or voluntarily by Ms. Rankin, the Company will pay Ms. Rankin
  any accrued base salary, vacation pay, reimbursable expenses and benefits, but
  any unvested long term shares or stock option awards must immediately be
  forfeited.  If the agreement is
  terminated "without cause" or by Ms. Rankin for "good reason," the Company
  will pay Ms. Rankin any accrued base salary, vacation pay, reimbursable
  expenses, benefits, bonus and an amount equal to 1.0 times the sum of her then
  current base salary plus an amount equal to the annual incentive bonus that was
  paid to her for the fiscal year immediately preceding the year of
  termination.  If the termination occurs
  within one year of a "change of control," then in addition to the amounts
  described in the preceding sentence, the Company will pay Ms. Rankin an
  amount equal to 2.0 times the amount of her total compensation package.
  If the agreement is
  terminated "without cause," any unvested long term shares or annual stock
  options will immediately vest.  If the
  agreement is terminated for "good reason," however, any unvested long term
  shares or annual stock options must immediately be forfeited; provided that if
  the termination occurs within one year of a "change of control," any unvested
  long term shares or annual stock options will immediately vest.
  6
  During the term of the
  employment agreement and for a period of one year following termination, Ms. Rankin
  has agreed to certain non-compete and non-solicitation provisions.
  Item 2.03 Creation of a Direct
  Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of
  a Registrant.
  On April 21, 2008, the
  Company entered into a credit agreement (the "Credit Agreement") with KeyBanc
  Capital Markets and Wachovia Capital Markets, LLC as co-lead arrangers and book
  managers and KeyBank National Association as administrative agent (referred to
  herein as "Lender" and "Agent," in its respective roles), and other lending
  institutions that are parties to the credit facility (collectively with KeyBank
  National Association, the "Lenders"). 
  Under the Credit Agreement, the Company may borrow, on an unsecured
  basis, up to $155,000,000 (the "Facility Amount").  The Company has the right to increase the
  Facility Amount to $300,000,000, provided that: (a) at the time of the
  proposed increase there is neither a default, nor any condition, which after
  notice or lapse of time would constitute a default by the Company; and (b) either
  one or more Lenders increase their respective funding commitments, in their
  sole discretion, or the Company, Agent, or the lead arrangers designate one or
  more new institutions (acceptable to each of the Company, the Administrative
  Agent and Lead Arrangers) to become Lenders providing funding commitments for
  the increased amount.  Up to $25,000,000
  of the Facility Amount will be available for the issuance of letters of
  credit.  This credit facility will be a
  direct, unsecured recourse obligation of the Company.
  A swing line of credit of
  $25,000,000 will also be available for same day borrowings by the Company.
  The Company will be required
  to pay interest only, on a monthly basis during the term of the facility, with
  all outstanding principal and unpaid interest due upon termination of the
  credit.  The credit facility will mature
  three years from closing.
  Initially, the Company may
  borrow at rates equal to (i) LIBOR plus a margin ranging from 120 basis
  points to 165 basis points, depending on the Company's ratio of consolidated
  outstanding indebtedness to total asset value or (ii) the Alternate Base
  Rate (as defined herein), plus a margin up to 35 basis points, depending on the
  Company's ratio of consolidated outstanding indebtedness to total asset
  value.  Upon the earlier of (1) the
  Company having an unencumbered leverage ratio of 1.5 or (2) December 31,
  2008, the Company may borrow at rates equal to (i) LIBOR plus a margin
  ranging from 100 basis points to 150 basis points, depending on the Company's
  leverage or (ii) the Alternate Base Rate, plus a margin up to 30 basis
  points, depending on the Company's leverage. 
  As used herein, "Alternate Base Rate" means, for any day, the higher of
  the prime rate announced by the Agent or the sum of the Federal Funds Effective
  Rate plus 0.5% per annum.
  The Credit Agreement
  contains customary affirmative, negative and financial covenants,
  representations, warranties and borrowing conditions.  The Company's activities are limited to
  acquiring retail properties and any incidental business activities and
  investments. Unimproved land holdings or land bank (excluding land that is either
  under development or planned for development in the next twelve months),
  investments in partnerships or joint ventures, construction activities and
  mortgage notes receivable are limited to the levels as described in the Credit
  Agreement.
  7
  Among
  the customary events of default to which the Company is subject, the occurrence
  of any of the following will constitute an event of default under the Credit
  Agreement, upon which the Lenders will have no obligation to make further
  disbursements of this credit facility, and the outstanding balance of the
  facility will become immediately due and payable:
  1.
  Failure to pay principal
  when due;
  2.
  Failure to pay interest and
  fees within five business days after due;
  3.
  Change of Control (stock
  ownership other than in the normal course of business and board composition);
  4.
  Change in Management (change
  of any two of the following: D. Scott Carr, Mark E. Zalatoris or Brett A.
  Brown);
  5.
  Violation of any financial
  covenant or any negative covenants;
  6.
  Violation of other
  covenants, subject to customary grace periods;
  7.
  Material inaccuracy of any
  representation or warranty;
  8.
  Company disavows, revokes or
  terminates any facility document or otherwise challenges or contest in
  proceeding the validity or enforceability of any credit facility document;
  9.
  Insolvency or bankruptcy of
  the Company or any consolidated subsidiary;
  10.
  Violation of ERISA
  regulations;
  11.
  A federal tax lien filed
  under Section 6323 of the Code remains undischarged for a period of
  twenty-five days;
  12.
  Judgments against the
  Company or any consolidated subsidiary in excess of $10,000,000 in aggregate
  that remain unsatisfied or unstayed for more than 60 days; or
  13.
  Failure to remediate within
  the time period permitted by law or governmental order (or within a reasonable
  time give the nature of the problem if no specific time period has been given)
  material environmental problems.
  The information set forth
  above does not purport to be complete in scope and is qualified in its entirety
  by the full text of the Credit Agreement, which is attached to this Current
  Report as Exhibit 10.7 and incorporated into this Item 2.03 by reference.
  8
  Item 5.02.  Departure of Directors or Certain Officers;
  Election of Directors; Appointment of Certain Officers; Compensatory
  Arrangements of Certain Officers.
  Appointment of New Chairman of
  the Board
  On April 21, 2008, the
  Company's board of directors appointed Thomas P. D'Arcy, an independent director,
  as its chairman, replacing Daniel L. Goodwin. 
  Mr. Goodwin remains a member of the board of directors.
  Resignation of President and
  Chief Executive Officer; Director not Standing for Re-election
  Robert D. Parks resigned his
  positions as president and chief executive officer of the Company effective April 21,
  2008.  Mr. Parks remains a member of
  the Company's board of directors but has advised the Company that he will not
  stand for reelection at the annual meeting scheduled for June 11,
  2008.  The Consulting Agreement entered
  into between Mr. Parks and the Company on July 1, 2000, included as Exhibit 10.4
  to the Company's Current Report on Form 8-K filed on July 14, 2000,
  has been voluntarily terminated by agreement of the parties.
  Appointment of President and
  Chief Executive Officer; Resignation of Treasurer
  Mark E. Zalatoris, has been appointed as the Company's
  president and chief executive officer and has resigned his position as
  treasurer effective as of April 21, 2008.
  The discussion under Item 1.01 above regarding the
  terms of employment and the employment contract of Mr. Zalatoris is
  incorporated into this Item 5.02 by reference.
  Appointment of Treasurer
  The Company's board of
  directors has appointed Brett A. Brown as Treasurer effective April 21,
  2008.
  Item
  5.03  Amendments to Articles of
  Incorporation or Bylaws; Change in Fiscal Year.
  Effective April 21,
  2008, the Company's board of directors amended and restated its bylaws (the "Bylaws").  Section 11 of Article III of the
  Bylaws has been amended to provide for the board's ability to delegate the
  authority to fix the compensation of directors to the Corporate Governance and
  Nominating Committee, which authority is consistent with the Company's
  Guidelines on Corporate Governance and the charter of that committee.
  Section 8 of Article IV
  has been deleted in its entirety to eliminate chairman of the board as an
  officer position.  The subsequent
  sections of Article VI have been renumbered accordingly.  A conforming change also has been made to Section 1
  of Article VI by removing the chairman as one of the officers who may sign
  certificates of the Company's stock.
  The full text of the Bylaws,
  including amended Articles III, IV and VI, is filed as Exhibit 3.1 to this
  Current Report and is incorporated into this Item 5.03 by reference.
  9
  Item 9.01.  Financial Statements
  and Exhibits.
  3.2
  Amended
    and Restated Bylaws effective April 21, 2008.
  10.1
  Employment
    Agreement between Inland Real Estate Corporation and Mark E. Zalatoris,
    effective as of April 21, 2008.
  10.2
  Employment
    Agreement between Inland Real Estate Corporation and Brett A. Brown,
    effective as of January 1, 2008.
  10.3
  Employment
    Agreement between Inland Real Estate Corporation and D. Scott Carr, effective
    as of January 1, 2008.
  10.4
  Employment
    Agreement between Inland Real Estate Corporation and Beth Sprecher Brooks,
    effective as of January 1, 2008.
  10.5
  Employment
    Agreement between Inland Real Estate Corporation and William W. Anderson,
    effective as of January 1, 2008.
  10.6
  Employment
    Agreement between Inland Real Estate Corporation and Kristi A. Rankin,
    effective as of January 1, 2008.
  10.7
  Credit
    Agreement dated April 21, 2008 between and among Inland Real Estate
    Corporation and KeyBanc Capital Markets and Wachovia Capital Markets, LLC, as
    co-lead arrangers and book managers, and KeyBank National Association, as
    administrative agent, and a syndicate of other lenders.
  99.1
  Press
    Release dated April 21, 2008.
  10
  SIGNATURES
  Pursuant to the
  requirements of the Securities Exchange Act of 1934, the registrant has duly
  caused this report to be signed on its behalf by the undersigned hereunto duly
  authorized.
  INLAND REAL ESTATE
    CORPORATION
  Date:  April 25, 2008
  By:
  /s/ Mark E.
    Zalatoris
  Name:
  Mark E.
    Zalatoris
  Title:
  President and
    Chief Executive Officer
  11
  EXHIBIT INDEX
  Exhibit No.
  Description
  3.2
  Amended
    and Restated Bylaws effective April 21, 2008.
  10.1
  Employment
    Agreement between Inland Real Estate Corporation and Mark E. Zalatoris,
    effective as of April 21, 2008.
  10.2
  Employment
    Agreement between Inland Real Estate Corporation and Brett A. Brown,
    effective as of January 1, 2008.
  10.3
  Employment
    Agreement between Inland Real Estate Corporation and D. Scott Carr, effective
    as of January 1, 2008.
  10.4
  Employment
    Agreement between Inland Real Estate Corporation and Beth Sprecher Brooks,
    effective as of January 1, 2008.
  10.5
  Employment
    Agreement between Inland Real Estate Corporation and William W. Anderson,
    effective as of January 1, 2008.
  10.6
  Employment
    Agreement between Inland Real Estate Corporation and Kristi A. Rankin,
    effective as of January 1, 2008.
  10.7
  Credit
    Agreement dated April 21, 2008 between and among Inland Real Estate
    Corporation and KeyBanc Capital Markets and Wachovia Capital Markets, LLC, as
    co-lead arrangers and book managers, and KeyBank National Association, as
    administrative agent, and a syndicate of other lenders.
  99.1
  Press
    Release dated April 21, 2008.