Document:

<PAGE>

                                                                    Exhibit 10.3

                        TERMINATION AND OPTION AGREEMENT

      This TERMINATION AND OPTION AGREEMENT ("Agreement") is made and entered
into as of ________ __, 2004 by NORWELL LAND COMPANY, a New York general
partnership ("Landlord") and BIOPHARMA ACQUISITION COMPANY, INC., a Delaware
corporation ("Tenant").

                              W I T N E S S E T H :

      For and in consideration of the covenants herein set forth, and intending
to be legally bound hereby, Landlord and Tenant hereto agree as follows:

                                   ARTICLE 1

                                   DEFINITIONS

            1.1   "Closing Date" shall have the meaning specified in Section
3.4.

            1.2   "FMV" shall have the meaning specified in Section 3.1.

            1.3   "Historical Revenue" shall mean the revenue realized by Tenant
from its operations at the Leased Premises during the twelve calendar month
period immediately preceding the Termination Notice Date, which shall equal the
sum of (i) the revenues received during such period from Persons which are not
Affiliates of Tenant, or from Affiliates of Tenant pursuant to arm's length
transactions with Tenant, plus (ii) the value of the services that Tenant has
performed during such period for its internal purposes, or for any of its
Affiliates with which it deals other than on an arm's length basis, which shall
be calculated on the basis of the standard hourly rates charged by the Tenant to
third Persons applicable for the personnel by whom such services are performed.

            1.4   "Landlord's Termination Option" shall have the meaning
specified in Section 2.1

            1.5   "Lease" means the Agreement of Lease of even date herewith
between Landlord and Tenant.

            1.6   "Person" means any natural person, corporation, partnership,
proprietorship, association, joint venture, trust or other legal entity.

            1.7   "Projected Revenue" shall mean the revenue projected to be
realized by Tenant from its operations at the Leased Premises during the twelve
calendar month period immediately succeeding the Termination Notice Date, which
shall equal the sum of (i) the revenues expected to be received during such
period from Persons which are not Affiliates of Tenant, or from Affiliates of
Tenant pursuant to arm's length transactions with Tenant, in each case pursuant
to binding commitments to purchase goods or services in existence on the
Termination Notice Date, plus (ii) subject to adjustment pursuant to Section
2.1(d), the value of the services that Tenant expects to perform during such
period for its internal purposes, or for any of its Affiliates with which it
deals other than on an arm's length basis, which shall be calculated on the
basis of the standard

<PAGE>

hourly rates charged by the Tenant to third Persons applicable for the personnel
by whom such services are performed.

            1.8   "Purchase Option" shall have the meaning specified in Section
3.1.

            1.9   "Termination Date" shall have the meaning specified in Section
2.1.

            1.10  "Termination Notice" shall have the meaning specified in
Section 2.1.

            1.11  "Termination Notice Date" shall have the meaning specified in
Section 2.1.

            1.12  "Termination Payment" shall have the meaning specified in
Section 2.1.

            1.13  "Viable" shall have the meaning specified in Section 2.1(c).

            1.14  All capitalized terms used and not defined herein shall have
the meanings given to such terms in the Lease.

                                   ARTICLE 2

                               TERMINATION OPTIONS

            2.1   If the Master Tenant ceases or has made a decision to cease
all its manufacturing activities at the Building and has so advised Landlord in
writing, Landlord shall have the option (the "Landlord's Termination Option") at
any time thereafter, on notice (the "Termination Notice") to Tenant as
hereinafter provided, to terminate the Lease effective on a date (the
"Termination Date") specified in the Termination Notice; provided that the
Termination Date may not be earlier than the later of (a) two years after the
date of the Termination Notice and (b) the fifth anniversary of the Commencement
Date. The date on which the Tenant receives the Termination Notice is referred
to herein as the "Termination Notice Date"; provided, however, that if a
Termination Notice is delivered prior to the third anniversary of the
Commencement Date, for all purposes of this Agreement, such Termination Notice
shall be deemed to have been delivered on such third anniversary. If Landlord
exercises such option, Tenant has timely vacated the Leased Premises on or
before the Termination Date, and Tenant has not exercised the Purchase Option,
Landlord shall pay to Tenant, within sixty (60) days after the Termination Date,
a payment (the "Termination Payment") in an amount as follows:

            (a)   If Tenant's activities at the Leased Premises are Viable as of
the Termination Notice Date, the amount of the Termination Payment shall be as
follows:

<TABLE>
<CAPTION>
                                                                                         Amount of
Termination Date                                                                          Payment
----------------                                                                        -----------
<S>                                                                                     <C>
On or after __ _________________ __, 2009 and through _________________ __, 2010        $ 8,000,000
On or after __ _________________ __, 2010 and through _________________ __, 2011        $ 6,000,000
On or after __ _________________ __, 2011 and through _________________ __, 2012        $ 4,000,000
On or after __ _________________ __, 2012 and through _________________ __, 2013        $ 2,000,000
On or after __ _________________ __, 2013 and through _________________ __, 2014        $         0
</TABLE>

<PAGE>

            (b)   If Tenant's activities at the Leased Premises are not Viable
as of the Termination Notice Date, the amount of the Termination Payment shall
be an amount equal to all actual, reasonable and customary costs to relocate and
reestablish Tenant's operations at the Leased Premises for which Tenant has
presented Landlord reasonable supporting documentation including evidence that
any relocated equipment will be actively used in a continuing business operated
by Tenant.

            (c)   Tenant's activities at the Leased Premises will be deemed to
be "Viable" if either Historical Revenue or Projected Revenue is greater than or
equal to $3,000,000. Tenant shall deliver Tenant's calculation of whether its
activities at the Leased Premises are Viable (the "Final Viability Data") within
thirty (30) days after the Termination Notice Date.

            (d)   The Final Viability Data shall become final and binding upon
Landlord and Tenant unless, within fifteen (15 ) days following the submittal
thereof to Landlord, Landlord notifies Tenant of its objection thereto in
writing (the "Objection Notice"). If Landlord so notifies Tenant of its
objection to the Final Viability Data, Landlord and Tenant shall negotiate in
good faith to resolve any differences. If, within fifteen (15) days following
the receipt of the Objection Notice by Landlord, any of such differences have
not been resolved, Landlord and Tenant shall submit the dispute to an
independent auditor reasonably acceptable to both parties. In the event the
parties cannot agree upon an independent auditor within fifteen (15) days,
either of the parties upon written notice to the other party hereto may request
such appointment by a court having jurisdiction. Such independent auditor's
opinion thereon and the resulting Final Viability Data shall be final, binding,
and not subject to any appeal. The fees and expenses of such independent auditor
in connection with any such resolution shall be paid one-half by Landlord and
one-half by Tenant. Landlord's obligation to pay the Termination Payment shall
be postponed to the date that is two (2) business days after the final
determination rendered by such independent auditor.

            (e)   If Landlord exercises Landlord's termination right provided
for in Article 14.3 of the Lease, Landlord shall pay the Termination Payment to
Tenant, provided, however, that (i) the Termination Date shall be deemed to be
the termination date of the Lease stated in Landlord's notice of termination
given pursuant to said Article 14.3, and (ii) the Termination Payment shall be
net of any insurance recoveries paid to Tenant or its Affiliates in connection
with the fire or other casualty. Except as otherwise expressly contemplated by
Article 13 of the Lease and as described below, Tenant shall not have any
obligation to obtain insurance coverage or otherwise mitigate its damages
resulting from a fire or other casualty. Tenant agrees to use commercially
reasonable efforts to exercise its rights under insurance carried by it from
which recoveries may be obtained in connection with any fire or other casualty
giving rise to Landlord's right to terminate the Lease, the parties hereby
agreeing that such efforts shall not include the obligation to litigate to
obtain a recovery from an insurance carrier.

                                   ARTICLE 3

                                 PURCHASE OPTION

            3.1   In the event that Landlord exercises the Landlord's
Termination Option and the Termination Date is on or before September____, 2013,
Tenant shall have the option to purchase (the "Purchase Option") all of
Landlord's right, title and interest in the Building and the Building systems,
the Land, the other improvements thereon and appurtenances thereto
(collectively, the "Option Property").

<PAGE>

            3.2   If Tenant exercises the Purchase Option, the purchase price
shall be paid on the Closing Date, by electronic wire transfer of immediately
available funds pursuant to wiring instructions given to Tenant at least two (2)
business days prior to the Closing Date. The purchase price shall equal the fair
market value of the Option Property ("FMV") as of the Termination Date, as
determined by Landlord and Tenant within thirty (30) days of Landlord's exercise
of Landlord's Termination Option or, in the absence of agreement, as provided in
Section 3.9 below.

            3.3   If Tenant elects to exercise the Purchase Option, Tenant must
give notice of such exercise to Landlord within the later of (i) one hundred
twenty (120) days after the date on which Tenant receives the Termination Notice
and (ii) thirty (30) days after the date on which the purchase price for the
Option Property is determined. Delivery of an exercise notice by Tenant shall
vitiate the obligation of Landlord to make any payment under Section 2.1 unless
Landlord defaults in closing.

            3.4   If Tenant exercises the Purchase Option, the closing of the
purchase shall take place on the Termination Date or such earlier date on which
the parties may agree (the "Closing Date"). Tenant's notice of exercise shall be
accompanied by a deposit, on account of the purchase price, equal to 10%
thereof.

            3.5   (a)If Landlord defaults in its obligation to sell the Option
Property in accordance with the terms hereof following Tenant's exercise of the
Purchase Option, Tenant's sole remedy against Landlord by reason thereof shall
be (i) to bring an action seeking specific performance of Landlord's obligation
to sell the Option Property as herein provided, the parties acknowledging that
specific performance is an appropriate remedy under the circumstances, or (ii)
to terminate this Agreement and receive the return of its deposit together with
the interest thereon, and Landlord shall have the obligation to pay to Tenant
the Termination Payment under Section 2.1.

                  (b)   If Tenant defaults in its obligation to purchase the
Option Property in accordance with the terms hereof (i) the Purchase Option
shall thereupon expire without any further notice from Landlord and be of no
further force or effect, (ii) Landlord's sole remedy against Tenant by reason
thereof shall be to retain any deposit together with interest thereon as
liquidated damages, the parties acknowledging that actual damages would be
difficult or impossible to ascertain, and (iii) the Lease shall expire and
terminate in accordance with Article 2 and Landlord shall have no obligation to
make any payment under Section 2.1.

            3.6   Landlord, on the Closing Date, shall convey good and
marketable fee simple title to the Option Property to Tenant (or to its
designee, provided Tenant so requests at least three (3) business days prior to
the Closing Date) by special warranty deed, and bill of sale in the case of
equipment, subject only to the Lease, the rights of subtenants under the Lease
and to those matters shown on Schedule A hereto and to any lien or encumbrance
created or caused by Tenant or created by Landlord at the request of Tenant
(collectively, "Permitted Encumbrances"). Transfer taxes shall be divided
equally. Landlord and Tenant each agrees to indemnify and hold harmless from and
against any loss or liability including, but not limited to reasonable
attorney's fees, resulting from a failure to pay any tax for which it is
responsible. Landlord and Tenant shall each complete such tax filings as may be
required and shall furnish such other documentation as may be reasonably
required to consummate the sale.

            3.7   Landlord shall be obligated to cure any title defects other
than Permitted Encumbrances, by the use of sales proceeds for such purpose or
otherwise, on or prior to the

<PAGE>

Closing Date. In the event Landlord is unable to cure such defects, Tenant shall
have the option, but not the obligation to waive any such defects and purchase
the Option Property subject to such title defects without abatement of the
purchase price. In the event that a condemnation of a material part of the
Option Property occurs between the exercise of the Purchase Option and the
Closing Date, Tenant shall have the option to rescind its exercise of the
Purchase Option, and in such event the Purchase Option shall expire and be of no
further force and effect and the Lease shall remain in full force and effect.
The Purchase Option is coupled with the Lease and is non-transferable, except
(1) to the assignee under a permitted assignment by Tenant of its interest under
the Lease or (2) as provided in the last sentence of this Section 3.7. If the
Purchase Option shall not have otherwise expired it shall expire and be of no
further force and effect upon the expiration or earlier termination of the
Lease. At the closing of the purchase, Tenant may designate a Person other than
Tenant to take title to the Option Property.

            3.8   The FMV is to be considered as of the Termination Date. The
Building is to be considered as already occupied by a purchaser and suitable for
the use of the purchaser (but consideration not to be given to the rental amount
being paid under the Lease), and shall be determined by agreement of Landlord
and Tenant as hereinabove provided, or in the absence of agreement, by the
appraisal procedure in Section 3.9 below.

            3.9   Either party may initiate the appraisal process by giving
written notice to that effect to the other party and shall in such notice
appoint a disinterested person of recognized competence in real estate
appraisals as appraiser on its behalf. Within fifteen (15) days thereafter, the
other party shall by written notice to the original party appoint a second
disinterested person of recognized competence in real estate appraisals as
appraiser on its behalf. Within thirty (30) days thereafter the parties shall
simultaneously exchange appraisals and, if the greater appraisal is less than
10% greater than the lesser appraisal, the determined figure shall be the
average of the two appraisals. If not, the appraisers thus appointed shall
appoint a third disinterested person of recognized competence in real estate
appraisals, such third appraiser shall prepare a third appraisal within thirty
(30) days of appointment, and the determined figure shall be the average of the
third appraiser's determination and the next closest appraisal; provided,
however, that if the two appraisers appointed by the parties shall be unable to
agree, within fifteen (15) days after the appointment of the second appraiser,
upon the appointment of a third appraiser, they shall give written notice of
such failure to agree to the parties, and, if the parties fail to agree upon the
selection of such third appraiser within fifteen (15) days after the appraisers
appointed by the parties give notice as aforesaid, then within ten (10) days
thereafter, either of the parties upon written notice to the other party hereto
may request such appointment by a court having jurisdiction. Landlord and Tenant
shall each be entitled to present evidence and argument to the appraisers. In
the event any appraiser selected in accordance with this Section 3.9 shall be
unable or unwilling to act, because of death, sickness or other cause, a
replacement for such appraiser shall be appointed within fifteen (15) days after
such event in the same manner, and by the same party as provided in this Section
3.9 for the appointment of the original appraiser so unable or unwilling to act.
Each party shall pay the fees and expenses of the appraiser appointed by such
party and one-half of the other expenses (including the fees and expenses of the
third appraiser) properly incurred hereunder.

                                   ARTICLE 4

                                     NOTICE

            4.1   All notices that are required or permitted hereunder shall be
in writing and shall be delivered (a) personally or (b) by "next day" courier
service, addressed as follows:

<PAGE>

                      To Landlord:

                                    Norwell Land Company
                                    One Stamford Forum
                                    Stamford, Connecticut 06901

                                    Attn:  General Counsel

                      To Tenant:

                                    Biopharma Acquisition Company, Inc.
                                    700 Union Boulevard
                                    Totowa, New Jersey 07512

                                    Attn:  Christopher J. Davis

                      with a copy to:

                                    Safeguard Scientifics, Inc.
                                    800 The Safeguard Building
                                    435 Devon Park Drive
                                    Wayne, Pennsylvania  19087

                                    Attn:  Christopher J. Davis

or elsewhere, as the respective parties may from time to time designate in
writing. All notices shall be deemed given when received.

                                   ARTICLE 5

                  APPLICABLE LAW AND CONSTRUCTION OF PROVISIONS

      This Agreement shall be governed by and construed under the laws of the
State of New Jersey. The captions used in this Agreement are for convenience
only and do not in any way modify, limit or amplify the terms and provisions
hereof. The language in all parts of this Agreement shall in all cases be
construed according to its fair meaning and not strictly for or against either
Landlord or Tenant, and the construction of this Agreement and any of its
various provisions shall be unaffected by any argument or claim, whether or not
justified, that it has been prepared, wholly or in substantial part, by or on
behalf of either Landlord or Tenant.

                                   ARTICLE 6

                                  SEVERABILITY

      Any provision of this Agreement that proves to be invalid, void or illegal
shall in no way affect, impair, or invalidate any other provision(s) hereof, and
such other provision(s) shall remain in full force and effect.

<PAGE>

                                   ARTICLE 7

                                    AUTHORITY

      Each individual executing this Agreement hereby represents and warrants
that (a) the entity on whose behalf such individual is executing this Agreement
is duly formed and validly existing, (b) the entity on whose behalf such
individual is executing this Agreement has full right and authority to enter
into this Agreement, and (c) such individual is duly authorized to execute this
Agreement on behalf of such entity.

                                   ARTICLE 8

                                  COUNTERPARTS

      This Agreement may be executed in multiple counterparts, all of which
shall constitute one and the same Agreement.

                                   ARTICLE 9

                                   SUCCESSORS

      This Agreement shall bind and inure to the benefit of the parties hereto,
their respective successors, permitted assignees of the Lease, heirs, executors
and administrators, subject to the provisions herein.

                                   ARTICLE 10

                              WAIVER OF JURY TRIAL

      LANDLORD AND TENANT HEREBY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM BROUGHT BY EITHER AGAINST THE OTHER ON ANY MATTER ARISING OUT OF
THIS AGREEMENT.

                                   ARTICLE 11

                               TIME OF THE ESSENCE

      TIME SHALL BE OF THE ESSENCE WITH RESPECT TO ALL DATES AND TIME PERIODS IN
THIS AGREEMENT.

                                   ARTICLE 12

                              MEMORANDUM OF OPTION

      Landlord and Tenant shall enter into a short form of this Agreement for
the purpose of recording the same, and shall, at Tenant's expense, record the
same. The short form agreed upon by the parties is attached as Exhibit A and
shall be executed contemporaneously with the execution of this Agreement.

<PAGE>

      IN WITNESS WHEREOF, Landlord and Tenant have executed this Agreement the
day and year first above written.

                                 TENANT:

                                 BIOPHARMA ACQUISITION COMPANY, INC.

                                 By: ___________________________________________
                                     Name:
                                     Title:

                                 LANDLORD:

                                 NORWELL LAND COMPANY
                                    By: Connecticut Avenue Realty Co., Inc.,
                                        its managing general partner

                                 By: ___________________________________________
                                     Name:
                                     Title

<PAGE>

                                   Schedule A

                Existing Matters That are Permitted Encumbrances

<PAGE>

                                    Exhibit A

                       Short Form of Memorandum of Option

      This Memorandum of Termination and Option Agreement ("Memorandum"), dated
as of ___________, 2004, evidences that a Termination and Option Agreement
("Agreement"), dated as of __________, 2004, was made and entered into by and
between Norwell Land Company, a New York general partnership ("Landlord") and
[Safeguard Acquisition Co.], a Delaware corporation ("Tenant").

      The Agreement provides in part that Landlord grants to Tenant an option to
purchase the property located at 700 Union Boulevard in Totowa, New Jersey (the
"Property") under certain terms and conditions set forth more fully in the
Agreement. The Property is further described in Exhibit A attached hereto. The
option price payable by Tenant to Landlord for the Property is more particularly
set forth in the Agreement. The term of the option granted by Landlord to Tenant
commences on ___________, 2004 and expires if Landlord has not exercised the
Landlord's Termination Option (as such term is defined in the Agreement) such
that the Termination Date (as such term is defined in the Agreement) is on or
before _________, 2013. The Agreement contains no right to extend the term of
the option.

      The parties have executed this Memorandum as of the day and year first
above written.

                                 TENANT:

                                 BIOPHARMA ACQUISITION COMPANY, INC.

                                 By: ___________________________________________
                                     Name:
                                     Title:

                                 LANDLORD:

                                 NORWELL LAND COMPANY
                                    By:Connecticut Avenue Realty Co., Inc., its
                                        managing general partner

                                 By: ___________________________________________
                                     Name:
                                     Title

<PAGE>

                                 Acknowledgment

State of ________   )
                              ) ss.
County of _______   )

            On this ___ day of ________ in the year 2004 before me,
__________________ , a Notary Public of said State, duly commissioned and sworn,
personally appeared _______________________________, personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person who
executed the within instrument as president (or secretary) or on behalf of the
corporation therein and acknowledged to me that such corporation executed the
same.

            In Witness Whereof, I have hereunto set my hand and affixed by
official seal the day and year in this certificate first above written.

                                         __________________________
                                               Notary Public

[Notarial Stamp]

                                 Acknowledgment

State of ________   )
                              ) ss.
County of _______   )

            On this ___ day of __________ in the year 2004 before me,
__________________ , a Notary Public of said State, duly commissioned and sworn,
personally appeared _______________________________, personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person who
executed the within instrument as president (or secretary) or on behalf of the
corporation therein and acknowledged to me that such corporation executed the
same.

            In Witness Whereof, I have hereunto set my hand and affixed by
official seal the day and year in this certificate first above written.

                                         _____________________________
                                               Notary Public

[Notarial Stamp]

<PAGE>

                                    Exhibit A
                                       to
                 Memorandum of Termination and Option Agreement

                              Property DescriptionOPERATING AGREEMENT

   

   

OPERATING AGREEMENT

OF

IN RETAIL FUND, L.L.C.

   

   

   

   

   

   

   

   

   

   

   

TABLE OF CONTENTS

   

                                                                                                                                                 
PAGE

Formation of Company. 2

Statutory Authority. 2

Filings. 2

Name. 2

Purpose of the Company. 2

Offices, Records, Agents and Term of the Company. 3

Principal Office of the Company. 3

Records to be Maintained. 3

Registered Office and Registered Agent3

Term of the Company. 4

Termination. 4

Capital Contributions. 4

Initial Capital Contributions. 4

Additional Capital Contributions. 6

Failure to Contribute Capital9

Properties to be Contributed and Acquired; Operation of the Company. 13

Initial Properties to be Contributed. 13

Additional Properties to be Acquired. 14

Inland Option to Acquire Additional Properties. 17

Senior Financing for the Properties. 18

Operation in Accordance with REIT Requirements. 19

Environmental Matters. 19

Gateway Lease. 21

Payments Not Treated as Capital Contributions. 22

Accounting and Distributions. 22

Books of Account22

Intentionally Omitted. 23

Percentage Interests. 23

Distributions of Cash Flow.. 24

Allocation of Income and Losses. 29

Guarantees. 29

Rights, Duties, Liabilities and Restrictions of the Manager30

Manager30

Authority of Manager31

Annual Plan. 32

Bank Accounts. 35

Compensation of Manager36

Expenditures by Manager36

Liability of Manager36

Indemnity. 36

Tax Matters Member39

Membership. 40

Rights and Obligations of the Members. 40

Approval of Members. 40

Executive Committee.40

Liability. 42

Expenses of Members. 43

Admission of Additional Members; Assignment Provisions. 43

Additional Members and Membership Interests. 43

General Provisions. 43

Transfers by the Manager Prohibited. 47

Transfers by Members. 47

Option to Sell Interests or Properties. 47

Option to Buy Interests or Properties. 49

Early Exercise of Sale Procedures. 51

Inland Stock as Consideration. 53

Procedure Upon Winding-Up. 54

Priority of Purchase Rights. 55

Procedures for Closing of Purchase and Sale Transactions. 55

Offset60

In-Kind Distribution Election.60

Resignations, Withdrawals, and Priorities. 61

Resignations and Withdrawals. 61

Priorities. 61

Interest on Capital Contributions. 61

Winding Up. 61

Liquidation Procedures. 61

Liquidating Trustee. 62

Distribution on Winding Up. 62

Liquidating Trust62

Distributions In Kind. 62

Partition. 62

Conflicts and Covenants. 63

Manager Time Commitment63

Related Business Partners. 63

Competitive Undertakings. 63

Exclusivity Covenant of NYSTRS. 63

Exclusivity Covenant of Inland. 64

Confidentiality Covenant66

Remedies. 67

Activities of Inland. 68

Counsel; Amendments. 69

Counsel to the Company. 69

Amendments. 69

Representations and Warranties. 69

Representations of Inland. 69

Representations of NYSTRS. 69

Securities Representations. 70

General Provisions. 72

Notices. 72

Successors. 73

Governing Law.. 73

Personal Jurisdiction. 73

Counterparts. 74

Pronouns and Headings. 74

Members Not Agents. 74

No Third Party Beneficiaries. 74

Entire Understanding. 74

Severability. 74

Further Assurances. 74

Set-Off Rights. 74

Affiliate. 75

Prevailing Party. 75

Press Releases. 75

Offset Right75

   

DEFINED TERMS INDEX

   

EXHIBITS

   

[INTENTIONALLY OMITTED]

THE INTERESTS EVIDENCED BY THIS AGREEMENT HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE, BUT HAVE BEEN ISSUED PURSUANT TO EXEMPTIONS UNDER THE FEDERAL SECURITIES ACT OF 1933, AS AMENDED
(THE “SEC ACT”), AND APPLICABLE STATE SECURITIES LAWS.  THE SALE, TRANSFER, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF ANY OF SAID INTERESTS IS RESTRICTED AND MAY NOT BE ACCOMPLISHED EXCEPT IN ACCORDANCE WITH THIS AGREEMENT AND AN APPLICABLE
REGISTRATION STATEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO THE MANAGER THAT REGISTRATION IS UNNECESSARY OR AN EXEMPTION FROM REGISTRATION UNDER THE SEC ACT AND APPLICABLE STATE SECURITIES LAWS.

OPERATING AGREEMENT

OF

IN RETAIL FUND, L.L.C.

THIS OPERATING AGREEMENT (this “Agreement”) is made and entered into this 8th day of October, 2004, among the following persons (individually referred to herein as a “Member”
and collectively referred to herein as “Members”):

INLAND REAL ESTATE CORPORATION, a Maryland corporation (“Inland”)

and

THE NEW YORK STATE TEACHERS’ RETIREMENT SYSTEM (“NYSTRS”),

a Public Retirement System established under Article 11 of the New York State Education Law, by and through its designated advisor,

   

MORGAN STANLEY REAL ESTATE ADVISOR, INC. (“Morgan Stanley”)

and the following person (individually referred to herein as the “Manager”):

IN RETAIL MANAGER, L.L.C., an Illinois limited liability company

The term “person” means any individual, sole proprietorship, partnership, limited liability company, corporation, trust or other entity.

W I T N E S S E T H:

WHEREAS, Inland and NYSTRS desire to provide for the operation, management and governance of a limited liability company known as IN Retail Fund, L.L.C. (the “Company”), which has previously been
formed pursuant to the Limited Liability Company Act (as amended from time to time, the “Act”) of the State of Delaware (the “State”).

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged by the parties, the
parties agree as follows:

Formation of Company

Statutory Authority.  The parties hereby
agree to operate the Company under and pursuant to the provisions of the Act.  Except as otherwise expressly provided in this Agreement, the rights and obligations of the Company, its Members and the Manager shall be governed by the Act.

Filings.  The Company has been formed
pursuant to a Certificate of Formation, filed in the Office of the Secretary of State of Delaware on July 19, 2004 (as amended from time to time, the “Certificate”) and the Manager shall make or cause to be made such other filings and recordings and shall
do or cause to be done such other acts and things conforming thereto as shall constitute compliance with all requirements for the formation and continuation of a limited liability company under the Act and, if required by applicable law, the qualification of the
Company to transact business in such other states in which the Company elects to do business. 

Name

The name of the Company shall be “IN Retail Fund, L.L.C.”  All of the affairs of the Company shall be conducted under the Company name.  Any change of the Company’s name shall require the approval
of both Members.  On behalf of the Company, the Manager shall execute and file with the proper offices any and all certificates required by the fictitious name or assumed name statutes of the states in which the Company elects to do business. 

Purpose of the Company

The purpose of the Company is to acquire, own, operate, lease, manage, maintain, improve, finance, refinance, sell, exchange or otherwise deal with and dispose of retail properties at locations in or around the Metropolitan
Statistical Areas (as defined by the U.S. Census Bureau) of Chicago, Illinois, Minneapolis/St. Paul, Minnesota, and Milwaukee, Wisconsin, as depicted on EXHIBIT 3-A attached hereto and made a part hereof (collectively, the “Investment Area”), and all
improvements, additions, replacements, easements and any and all other rights appurtenant thereto, and all personal property that might be used or useful used in connection therewith (individually, a “Property”, and collectively, the
“Properties”), and undertake such other activities necessary or incidental thereto as may be authorized pursuant to this Agreement.  Unless otherwise agreed by both Members, the Company shall cause title to each Property to be held by a separate
single-member limited liability company (each, a “Subsidiary”), which shall be wholly owned by the Company, and of which the Company shall be the sole manager (except to the extent that the holder of any indebtedness of any Subsidiary may require that
said Subsidiary also have an independent manager for the purpose of providing the lender with bankruptcy protection).

As further provided in Article 6, below, the Company may acquire Property only in accordance with the Investment Guidelines attached hereto as EXHIBIT 3-B and made a part hereof (such Investment Guidelines, as they
may be amended from time to time by the unanimous written approval of the Executive Committee (as defined herein) are hereinafter called the “Investment Guidelines”).

Offices, Records, Agents and Term of the Company

Principal Office of the Company.  The
principal office of the Company shall be located at such place within the United States of America (other than Alaska or Hawaii) as the Manager may from time to time designate.  The Company may have secondary offices at such other place or places as the Manager
may from time to time designate, subject to the approval of the Members.  Initially, the principal office of the Company will be located c/o Inland Real Estate Corporation, 2901 Butterfield Road, Oak Brook, IL  60523.

Records to be Maintained.  At all times
during the continuance of the Company, the Manager shall cause the Company to keep at the Company’s principal office such records and information as the Company may be required to maintain in accordance with the Act, which shall be subject to inspection and/or
copying at the request of any Member or its legal representative (with all such copies to be made at the Company’s expense) during ordinary business hours, including, without limitation, the following: 

Member List.  A list of the full name and last known address of each Member, setting forth the amount of cash each Member has contributed or has agreed to contribute in the future, a description and
statement of the agreed value of the other property or services each Member has contributed or has agreed to contribute in the future and the date on which each became a Member.

Certificate of Formation.  A copy of the Certificate of Formation, as amended or restated, together with executed copies of any powers of attorney under which any article, application or certificate has
been executed.

Tax Returns.  Copies of the Company’s Federal, state and local income tax returns and reports, if any, for the three most recent years.

Records.  Copies of this Agreement and any amendments hereto, and of any financial statements of the Company for the three most recent years.

Other Information.  Such other information and records as are specified in the Act.

Registered Office and Registered Agent. 
The Company’s registered agent for service of process required to be maintained pursuant to the Act shall be Corporation Service Company, and the address of the Company’s registered agent in the State of Delaware shall be 2711
Centerville Road, Suite 400, Wilmington, Delaware  19808.  Such agent and such office may be changed from time to time by the Executive Committee.  The Executive Committee shall select and designate a registered office and registered agent for the
Company in each other state in which the Company is required to maintain or appoint one.

Term of the Company.  The term of the
Company commenced upon the filing of the Certificate of Formation of the Company with the Office of the Secretary of State and shall continue in perpetuity, unless sooner terminated in accordance with Section 4.5, below. 

Termination.  The Company shall terminate
prior to the time set forth in Section 4.4, above in the following circumstances:

Sale of Assets.  Upon the sale or other disposition of all or substantially all of the Company’s non-cash assets; provided, however, that this Agreement generally and Article 12 in particular
shall govern the conduct of the parties during the winding up of the Company; provided, however, that in the event that such sale or other disposition involves (i) the receipt of a deferred payment obligation, whether or not secured, or (ii) the receipt of
payment in whole or in part in kind, then at the Members’ election the term of the Company shall not end, and it shall continue, subject  to the other provisions hereof, until the earlier of the time that (a) the deferred payment obligation shall have
been paid in full, or (b) the in kind considerations received by the Company shall have been sold or otherwise converted to cash.

Dissolution by Members.  If all of the Members shall execute an instrument so stating; provided, however, that this Agreement generally and Article 12 in particular shall govern the conduct of the
parties during the winding up of the Company.

Term of the Venture.  Upon the date which is seven years after the date of this Agreement (the “Termination Date”); provided, however, that this Agreement generally and Section 10.9 and
Article 12 in particular shall govern the conduct of the parties during the winding up of the Company.  Notwithstanding anything contained in this Section to the contrary, the Termination Date may be extended for two additional one-year periods upon
written agreement of the Members.

Capital Contributions

Initial Capital Contributions. 

Initial Contributions. Pursuant and subject to the terms and conditions of the Contribution Agreement attached hereto as EXHIBIT 6‐B, Inland shall contribute the Initial Properties (as defined in
Article 6, below) to the Company.  It is understood that the Initial Properties may not be, but could be, contributed simultaneously and may be contributed in stages.  At such time as each Initial Property is contributed to the Company, NYSTRS shall
contribute to the Company 50% of the Agreed Net Value (as defined in Section 6.1(a)) of said Initial Property (collectively, all capital contributions made pursuant to this Section 5.1(a) are referred to in this Agreement as “Initial Capital
Contributions,” even though said capital contributions may not be made simultaneously).  

  Credits to Capital Accounts.  NYSTRS’ Capital Account shall be credited with the amount of its Initial Capital Contributions, as and when made. Inland’s Capital Account shall be credited with the Agreed Net Value of the Initial
Properties as they are contributed to the Company.  Inland intends that Inland’s contribution of the Initial Properties shall be treated as a tax-free contribution under Internal Revenue Code Section 721(a).

Contribution Subject to Existing Indebtedness.  The Initial Properties shall be acquired by the Company subject to the entire indebtedness secured by the Initial Properties.

NIC Funds.  The Manager shall cause NYSTRS’ Initial Capital Contributions, as and when contributed to the Company (collectively, the “NIC Funds”), to be invested in interest bearing investments pending the acquisition of Additional
Properties.  The Manager shall have sole discretion to determine the nature of such interest bearing investments.  For book and tax purposes, interest earnings on NIC Funds shall be allocable 95% to Inland and 5% to NYSTRS, and all interest earnings on NIC
Funds attributable to Inland shall be considered additional NIC Funds and all interest earnings on NIC Funds attributable to NYSTRS shall not be considered additional NIC Funds.  The Manager shall apply the NIC Funds in accordance with Section 5.2(h)(v). If
NYSTRS’ Initial Capital Contributions are made in stages pursuant to Section 5.1(a) above, then the balance of NIC Funds shall be increased from time to time by the amount of each NYSTRS Initial Capital Contribution. The balance of NIC Funds shall be reduced
from time to time by (i) amounts distributed to Inland under Section 7.4(c)(i), (ii) the Section 5.2 Amount paid from NIC Funds pursuant to Section 5.2(h)(v), and (iii) any distributions of NIC Funds pursuant to Section 10.13. The Manager shall also have the right to
distribute NIC Funds to Inland (the balance of NIC Funds being reduced by the amount of any such distribution), provided that NIC Funds may not be distributed to Inland if at such time, said NIC Funds are required to be applied to the Section 5.2 Amount of the
Company pursuant to Section 5.2(h)(v).  All interest earnings on NIC Funds shall be distributed to Inland and NYSTRS as set forth herein from time to time as the Manager determines.  It is expressly understood that the amount of any Additional Capital
Contribution made in connection with any Additional Property shall in no circumstances constitute NIC Funds, even if (i) said Additional Capital Contribution is made prior to the contribution of all of the Initial Properties, and (ii) one or more of the Initial
Properties are never contributed to the Company.

   

Additional Capital Contributions. 

No Additional Assessments.  Except as set forth below or as required by the Act, no Member shall be assessed for, or shall have the right to make, additional capital contributions (the following
“Additional Capital Contributions,” together with the Initial Capital Contributions, are referred to herein collectively as the “Capital Contributions”).

Capital Calls. If at any time the anticipated Receipts of the Company during the subsequent 90-day period and the available funds of the Company at such time (including any Reserves, but only for the purpose
for which the applicable Reserve is maintained and including loan proceeds, but only to the extent said borrowing has been approved by the Executive Committee, but excluding NIC Funds) are less than the Expenses of the Company (other than Acquisition Expenses)
anticipated to be incurred during said 90-day period pursuant to the then-current Annual Plan, then (unless the Annual Plan is revised to eliminate said shortfall) the Manager shall cause the Company to make a Capital Call (as such term is hereinafter defined), in
the amount of the shortfall (the “Operating Shortfall”). 

Acquisition Expenses. If the Members have approved the Company’s acquisition of an Additional Property (as such term is defined in Section 6.2(a)) pursuant to Section 6.2(f), then the Manager
shall cause the Company to make a Capital Call for funds sufficient to enable the Company to pay all costs and expenses of said acquisition, including the portion of the purchase price not funded with Additional Property Senior Financing as defined herein
(collectively, “Acquisition Expenses”) in accordance with the Acquisition Budget for said Property. 

Refinancing Shortfalls. If at any time there is (or is projected to be) a “Refinancing Shortfall” (as such term is hereinafter defined), the Manager shall cause the Company to make a Capital Call
in the amount of the Refinancing Shortfall.  As employed herein, the term “Refinancing Shortfall” means the amount, if any, by which the proceeds of any Financings (net of the costs and expenses of obtaining said Financings) incurred for the purpose
of repaying Existing Indebtedness (as defined in Section 6.4(a)) upon the maturity of said Existing Indebtedness, is less than the amount required to pay off said Existing Indebtedness in full at such time. 

Protective Expenditures. If at any time, after paying all Expenses in accordance with the then‐current Annual Plan, the Company lacks the funds to make Protective Expenditures, the Manager shall cause
the Company to make a Capital Call in the amount of said shortfall.  As employed in this Agreement, the term “Protective Expenditures” means expenditures of the Company or any Subsidiary (i) for the payment of real estate taxes, insurance
premiums and utility charges on any Property; (ii) necessary to comply with, or to cure any failure of any of the assets of the Company or any Subsidiary to comply with applicable laws, ordinances, regulations, orders and other legal requirements; (iii) to
the extent necessary on an emergency basis for the protection or preservation of any Property, or for the protection of the health and safety of the public or any employees of any Property; (iv) necessary to comply with, or to cure any default on the part of the
Company or any Subsidiary under any Leases, loan documents, or other contracts affecting the Company or any Subsidiary, including the payment of principal, interest and other amounts when due under any loan documents to which the Company or any Subsidiary is a party
or to which any Property is subject; and (v) to the extent incurred in connection with litigation (whether as a plaintiff or as a defendant), including, but not limited to, the payment of any judgments rendered against the Company. 

Capital Call by Member. If the Manager fails to cause the Company to make a Capital Call when required to do so pursuant to Sections 5.2(b), (c), (d) or (e) above, and said failure shall continue for
ten (10) days or more following written notice to the Manager from either Member, either Member shall have the right to cause the Company to make the Capital Call in question.

Definition. As employed herein, the term “Capital Call” means a written notice from the Company to the Members setting forth the amount of the Additional Capital Contribution, the subsection or
subsections of this Section 5.2 pursuant to which the Capital Call is being made, the purpose of said Additional Capital Contribution, each Member’s share of said Additional Capital Contribution (determined in accordance with Section 5.2(h) below),
the date said Capital Contribution is due (which date shall be not less than ten (10) business days after the date the Capital Call is made), and wire transfer instructions for the bank account of the Company in which Capital Contributions shall be
deposited.  As used herein, any of the terms Operating Shortfall, Acquisition Expenses, Refinancing Shortfall and Protective Expenditures shall also be referred to as a “Section 5.2 Amount.”

Amounts to be Contributed.  The Members shall make Additional Capital Contributions by wire transfer of immediately available funds on or before the due date set forth in the Capital Call, as
follows:

First, until the “Catch-up Balance” (as defined in (iii), below) has been reduced to zero, NYSTRS shall fund 100% of each Additional Capital Contribution, in an amount not to exceed the then-existing
Catch-up Balance.

After the Catch-up Balance has been reduced to zero, 50% of each Additional Capital Contribution shall be funded by NYSTRS and 50% shall be funded by Inland.

The “Catch-up Balance” at any given time shall be equal to (x) the sum of all Inland Capital Contributions, less (y) the sum of all NYSTRS Capital Contributions, less (z) any NIC Funds distributed to
Inland pursuant to Section 5.1(d), less any Net Extraordinary Cash Flow distributed to Inland under Section 7.4(c)(i) to eliminate the Catch-Up Balance prior to the date of the Capital Call in question, plus (aa) the interest earnings on the NIC Funds which are
allocable to Inland.  For purposes of this Agreement, the “Catch-Up Balance” and the NIC Funds shall be equal to each other. The Catch-up Balance shall be further reduced by the amount of any cash distribution to NYSTRS made in connection with an
In-kind Distribution to Inland pursuant to Section 10.13.

When determining the amount of Additional Capital Contributions required to be made, the NIC Funds shall be treated as funds of the Company that are available for payment of a Section 5.2 Amount on a pari passu
basis with any Additional Capital Contributions made by NYSTRS pursuant to Section 5.2(h)(i), and the amount of Capital Contributions requested in the Capital Call shall be reduced accordingly. However, the amount of NIC Funds to be applied to the payment of a
Section 5.2 Amount for which the Capital Call is made may not exceed 50% of the Section 5.2 Amount for which the Capital Call is made. See illustrations in clause (vi), below.

In each case in which NYSTRS makes a Capital Contribution pursuant to clause (i), above, the Company shall apply NYSTRS’ Capital Contribution and an equivalent amount of the NIC Funds, if any, towards the
Section 5.2 Amount for which the Capital Call was made (subject to the 50% limitation in clause (iv), above). See illustrations in clause (vi) and (vii), below, and as set forth on EXHIBIT 5-A. 

Illustration 1. The Company requires $100 for a Section 5.2 Amount when the Catch-up Balance is $40 and there are $40 of NIC Funds. The Capital Call will be for $60 ($100 of the Section 5.2 Amount, less $40
of NIC Funds available, pursuant to clause (iv), above). $40 will be payable solely by NYSTRS (i.e., up to the amount of the Catch-up Balance pursuant to clause (i), above). $40 of NIC Funds will be utilized by the Company for the payment of the Section 5.2 Amount
(pursuant to clause (v), above). $20 will be funded equally by NYSTRS and Inland (pursuant to clause (ii), above).

Illustration 2. The Company requires $30 for a Section 5.2 Amount when the Catch-up Balance is $40 and there are $40 of NIC Funds. The Capital Call will be for $15 ($30 of the Section 5.2 Amount, less $15 of the $40 of NIC Funds (NIC Funds utilized cannot
exceed 50% of the Section 5.2 Amount, pursuant to clause (iv), above). $15 will be payable solely by NYSTRS (pursuant to clause (i), above). $15 of NIC Funds will be utilized by the Company for the payment of the Section 5.2 Amount (pursuant to clause (v), above).
The Catch-Up Balance is reduced to $25 and NIC Funds will be reduced to $25. 

Limits on Deficit Contributions.  Capital Contributions pursuant to Section 5.2(e) are referred to herein as “Deficit Contributions”.  Without the consent of both Members, the
Company shall not have the authority to make Capital Calls for Deficit Contributions that exceed, in the aggregate, the lesser of (i) 5% of the aggregate of the gross purchase price of the Additional Properties for which such Deficit Contributions are required
and the Net Agreed Value of the Initial Properties for which such Deficit Contributions are required or (ii) $25,000,000. 

Limit on All Capital Contributions.  In no event shall NYSTRS be obligated to make Capital Contributions hereunder in excess of $143,500,000, plus any amount distributed to NYSTRS as Initial Property
Senior Financing proceeds pursuant to Section 7.4(c), nor shall Inland be obligated to make Capital Contributions in excess of the amount of Capital Contributions made by NYSTRS, except to the extent that the contribution by Inland of the Initial Properties may cause
Inland’s Capital Contributions to exceed those of NYSTRS until Additional Capital Contributions are made by NYSTRS pursuant to Section 5.2((h)(i).

Failure to Contribute Capital.

Failure to Contribute.  If a Member (the “Defaulting Member“) fails to make such Member’s Additional Capital Contribution within the time period prescribed in Section 5.2(g),
and the other Member (the “Non‐Defaulting Member”)  has made its Additional Capital Contribution in accordance with this Agreement, the Non-Defaulting Member shall notify the Defaulting Member of said failure and the Non‐Defaulting Member
shall have the right, but not the obligation, to:

(w)       withdraw its Additional Capital Contribution, in which event the Non‐Defaulting Member (i) shall have no liability for failure to contribute its Additional Capital
Contribution, and (ii) shall have the right to exercise the provisions of Sections 10.5, 10.6 or 10.7 of this Agreement as a result of the Defaulting Member’s failure to contribute said Additional Capital Contribution; or

(x)        designate its Additional Capital Contribution as a Capital Contribution and, in addition, contribute to the Company, as a Capital Contribution for its own account (a “Default
Contribution“), the amount due from the Defaulting Member (the “Deficiency Amount“); or

(y)        withdraw its Additional Capital Contribution and advance directly to the Company both the Defaulting Member’s Additional Contribution Amount and the Non‐Defaulting
Member’s Additional Contribution as a Company Loan (as such term is hereinafter defined); or

(z)        designate its Additional Capital Contribution as a Capital Contribution and advance directly to the Company (on behalf of the Defaulting Member) the Defaulting Member’s
Additional Contribution Amount as a Member Loan (as such term is hereinafter defined).

These provisions shall be applicable each time that a Member shall fail to contribute capital as required in this Agreement.  The Non‐Defaulting Member shall elect which of the foregoing remedies it will pursue
(and, in the case of an election to proceed under clause (x), (y) or (z) above, shall advance to the Company either the Deficiency Amount or the amount of the Company Loan or the Member Loan, as the case may be) within twenty (20) days after sending the notice of the
Defaulting Member’s failure to contribute its Additional Contribution Amount.  Upon the election by the Non-Defaulting Member to proceed under clause (x), (y) or (z) above, the Non-Defaulting Member shall not be entitled to proceed under Sections 10.5,
10.6 or 10.7.

Effect on Percentage Interests and Capital Accounts.  If the Non‐Defaulting Member makes a Default Contribution as provided in clause (x) of Section 5.3(a) then, effective from the date on
which the Non‐Defaulting Member makes a Capital Contribution in an amount equal to the Deficiency Amount, the Percentage Interest of the Defaulting Member immediately prior thereto shall be reduced (but not below 0%) by the number of percentage points
equivalent to the fraction (the “Dilution Fraction”) obtained by dividing (i) 100% of the applicable Deficiency Amount by (ii) the aggregate amount of the Capital Contributions made by all of the Members (including said Default Contribution),
and concomitantly, the Percentage Interest of the Non‐Defaulting Member shall be increased by the same number of percentage points. By way of example, suppose that each Member had previously funded $50 in Capital Contributions, that a Capital Call for $100 in
Additional Capital Contributions is made, and that one Member fails to contribute its share ($50) of said Additional Capital Contributions.  If the Non‐Defaulting Member elects to make a Default Contribution of $50 under clause (x) of Section 5.3(a),
then the Dilution Fraction would be equal to $50 (100% of the Default Amount) divided by $200, or 0.25.  Thus, the Percentage Interest of the Defaulting Member would be reduced by 25 percentage points, to 25%; the Percentage Interest of the Non‐Defaulting
Member would be increased by 25 percentage points, to 75%, and any amounts otherwise distributable to the Defaulting Member under Section 7.4(d) would be reduced by 50%, with said amount being distributed instead to the Non‐Defaulting Member. The Incentive
Distribution Percentage (as defined in Section 7.4(d) hereof), shall also be adjusted as described in Section 7.4(d)(iii).

Company Loan.  If the Non-Defaulting Member shall elect to make a loan to the Company as provided in clause (y) of Section 5.3(a) above, the Non-Defaulting Member shall designate such loan as a
“Company Loan“.  Company Loans shall bear interest (“Company Loan Yield“) at the cumulative annual interest rate (the “Default Rate“) equal to the lesser of (i) 18% per annum and (ii) the maximum rate of interest
permitted by applicable law, compounded monthly on the average daily outstanding balance of principal, and shall be paid ahead of any distributions payable to the Members pursuant to Article 7 or Article 12 of this Agreement.  Interest expense incurred
on any Company Loan shall be treated as an obligation and expense of the Company.  Payments on the Company Loans shall be made pro rata in proportion to the principal amount of and any accrued interest on all such Company Loans, and shall be applied first to
accrued interest and then to principal. 

Member Loans.  If the Non‐Defaulting Member funds the Deficiency Amount pursuant to clause (z) of Section 5.3(a) and designates such amount as a “Member Loan”, then such
amount shall be treated as loaned by the Non‐Defaulting Member to the Defaulting Member, and in turn, contributed by the Defaulting Member to the capital of the Company.  If Inland is the Non-Defaulting Member, at its election, it may direct the Company to
cause the Member Loan to be made from the NIC Funds, which, for purposes of this Section shall be deemed to have been withdrawn by Inland from the Company and loaned to the Defaulting Member, and the Company shall treat the amount of the NIC Funds designated as the
Member Loan as having been contributed by the Defaulting Member to the capital of the Company.  A Member Loan shall bear interest at the Default Rate, compounded monthly on the average daily outstanding balance of principal.  Until such time as a Member
Loan has been satisfied as a result of the Conversion Election described below or repaid in full by the Defaulting Member, all distributions pursuant to this Agreement that would otherwise be paid by the Company to the Defaulting Member pursuant to Article 7 or
Article 12 of this Agreement shall instead be paid by the Company directly to the Non‐Defaulting Member, and the Defaulting Member hereby grants the Non‐Defaulting Member a security interest in the Defaulting Member’s rights to distributions
under Article 7 or Article 12 to secure said obligation.  Such amounts shall for all purposes of this Agreement be deemed distributed by the Company to the Defaulting Member pursuant to this Agreement and then paid by the Defaulting Member to the
Non‐Defaulting Member and applied first against accrued but unpaid interest owing with respect to the Member Loan and then in reduction of the principal balance thereof.  Each Member Loan, including all accrued interest thereon, shall be due and payable in
full on the first anniversary of the date on which the Non‐Defaulting Member advances the applicable Deficiency Amount to the Company (the “Due Date“).

Maturity of Member Loans.  Upon the Due Date of a Member Loan, the Non‐Defaulting Member shall have the right, determinable in its sole discretion, to:  (i) convert the Member Loan to a
Capital Contribution by the Non‐Defaulting Member as described below (the “Conversion Election“), (ii) enforce the obligation of the Defaulting Member to pay the outstanding principal balance and all accrued and unpaid interest under the Member
Loan, or (iii) extend the Due Date of the Member Loan for an additional one‐year period.

Conversion Election.  If the Non‐Defaulting Member wishes to exercise the Conversion Election, it may do so by delivering written notice thereof to the Company not later than sixty (60) days
following the Due Date of such Member Loan.  If the Non‐Defaulting Member exercises the Conversion Election, then, for all purposes of this Agreement, (i) the Member Loan, including all accrued and unpaid interest thereon, shall be deemed satisfied in
full; (ii) the Capital Contributions deemed made by the Defaulting Member shall be reduced by the sum of the then outstanding principal balance of and all accrued and unpaid interest on the Member Loan; (iii) the amount of the outstanding principal balance
of and all accrued and unpaid interest on the Member Loan shall be deemed to constitute a Capital Contribution by the Non‐Defaulting Member; and (iv) the Percentage Interests and Capital Accounts of the Members shall be adjusted as provided in
Section 5.3(b) as though, at the time of the Conversion, the Non‐Defaulting Member had made a Capital Contribution in the amount of the Deficiency Amount pursuant to clause (x) of Section 5.3(a) based on the Capital Contributions of the Members after
giving effect to the foregoing.

Enforcement of Member Loan. If, after the Due Date, the Non‐Defaulting Member elects to enforce the obligations of the Defaulting Member under the Member Loan, the Non‐Defaulting Member shall
deliver written notice of such election to the Defaulting Member within sixty (60) days following the Due Date.  The obligation of the Defaulting Member to repay the Member Loan and all accrued interest thereon shall be a personal liability of the Defaulting
Member and shall be enforceable against any assets of the Defaulting Member, including its Interest in the Company. 

Extension of Due Date. If the Non-Defaulting Member does not elect to either exercise the Conversion Election or to enforce the Member Loan in the applicable manner described above, then the Non-Defaulting
Member shall be deemed to have elected to extend the Due Date for a period of one year following such Due Date.  If the Non-Defaulting Member elects to extend the Due Date of the Member Loan, then if the Member Loan and all accrued interest thereon are not paid
in full on or before such extended Due Date, then, at such time, the Non-Defaulting Member shall again have the right to elect the remedies described in Section 5.3(e).

Acknowledgment and Agreement.  Each Member acknowledges and agrees that the other Member would not be entering into this Agreement were it not for (i) the Members agreeing to make the Capital
Contributions provided for in this Article 5, and (ii) the provisions of this Article 5 that describe the consequences of being a Defaulting Member (the “Remedy Provisions“).  The Members acknowledge and agree that the Remedy Provisions
could result in a Member reducing its interest in the Company to zero.  Each Member acknowledges and agrees that in the event a Member fails to make its Capital Contributions pursuant to this Agreement, the other Member will suffer substantial damages and the
Remedy Provisions are fair, just and equitable in all respects.  Although it is the intent of the Members that the Remedy Provisions will be fully effective without the execution of any documents or instruments by the Defaulting Member in connection therewith,
each Member hereby agrees that in the event its Percentage Interest is reduced pursuant to any Remedy Provision, it shall execute and deliver such conveyances, agreements, instruments or other documents which may be reasonably necessary in the judgment of the other
Member to confirm and render fully effective the Remedy Provisions, including, but not limited to, an assignment of all or a portion of its Percentage Interest and any amendments to this Agreement and to the Certificate of Formation of the Company.

Properties to be Contributed and Acquired; Operation of the Company

Initial Properties to be Contributed. 

Initial Properties.  The parties have identified certain Properties (the “Initial Properties”) which will be contributed by Inland to the Company at the “Agreed Net Value” for
each of the Initial Properties as described on EXHIBIT 6-A.  EXHIBIT 6-B contains the form of “Contribution Agreement” that shall be entered into with respect to each Initial Property.  The Manager shall cause the Company to accept the
contribution of each of the Initial Properties as soon as practicable after the execution of this Agreement in accordance with the terms of the Contribution Agreement; provided, however, that the parties have agreed that (i) none of the Initial Properties shall be
contributed to the Company until the conditions for contribution, as set forth in the Contribution Agreement, have been fulfilled (or as applicable, waived by any party having the right to waive said condition) as to at least 4 of the Initial Properties; (ii) the
Company shall not acquire, or enter into any binding agreement to acquire, any Additional Property unless and until 4 of the Initial Properties have been contributed to the Company, unless expressly authorized by NYSTRS in advance, in writing, in NYSTRS’ sole
discretion, and (iii) if no Properties have been contributed to or acquired by the Company on or before December 31, 2004, then NYSTRS, at its sole election, shall have the right to cause the Company to be terminated and dissolved.  Inland acknowledges that
NYSTRS, acting alone on behalf of Company, shall have the right to (i) exercise Company’s rights and remedies, at law, in equity, or under the Contribution Agreement in the event of a breach of the Contribution Agreement by Inland, and (ii) waive or modify any
condition precedent to the Company’s (as opposed to Inland’s) obligations under the Contribution Agreement, including any condition precedent to the contribution of any Initial Property.

Separate Title Holding Entities.  Title to each of the Initial Properties shall be acquired by the Company in a separate single purpose limited liability company of which the Company shall be the sole
member and the sole manager; provided, however, where determined appropriate by the Manager, title may be acquired in another form of pass-through entity, subject to the consent of the Members. All income, expense, cash flow and other financial activity of any
Subsidiary shall be consolidated with and shall constitute the financial activity of the Company.  All cash flow distributions from any Subsidiary to the Company shall be characterized as Net Ordinary Cash Flow or Net Extraordinary Cash Flow of the Company in
accordance with the terms of this Agreement and shall be retain such characterization for all purposes hereunder, including, but not limited to, distributions to Members.

Additional Properties to be Acquired. 

Acquisition of Additional Properties.  For the two-year period from and after the date of this Agreement (the “Acquisition Period”), the Company shall seek to acquire additional properties
from third parties which are not Affiliates (as defined in Section 16.13) of Inland or NYSTRS (individually, an “Additional Property”, and collectively, the “Additional Properties”) that meet the Investment Guidelines; provided, however, that
the Acquisition Period may be extended for one additional one-year period by written agreement of the Members.  At the end of the Acquisition Period, the Company shall cease to acquire Additional Properties; provided, however, that it shall complete any
transactions to acquire Additional Properties for which it has become contractually bound during the Acquisition Period.

Evaluation Materials.  The Manager will use commercially reasonable efforts to identify Additional Properties that meet the Investment Guidelines.  Should the Manager negotiate a reasonably
detailed non-binding letter of intent on behalf of the Company to purchase an Additional Property that meets the Investment Guidelines, the Manager will submit to the Executive Committee, a package of information, including, but not limited to: a description of the
Additional Property, a rent roll, financial projections, market data (including rental and sales comparables); photographs; site plans; known environmental and physical issues, competitive submarket survey, financing plan; due diligence budget, the amount of the
Additional Capital Contributions (as defined herein) which will be required to be made by the Members in connection with the acquisition of the Additional Property, and such other information as the Manager determines to be necessary (or as either Member may
reasonably request) in connection with the evaluation of the Additional Property (collectively, the “Evaluation Materials”) in order to permit the Executive Committee to evaluate the proposed acquisition.  Any such letter of intent shall expressly
state that the parties shall not be bound until a mutually satisfactory purchase contract has been entered into between the Company and the seller of the Additional Property.

Approval by the Executive Committee.  Within 7 business days from the Executive Committee’s receipt of the Evaluation Materials (the “Committee Approval Period”), the Executive
Committee shall advise the Manager in writing of its preliminary approval or disapproval of the acquisition of the Additional Property based upon the Evaluation Materials.  In the event that the Executive Committee fails to provide its approval or disapproval of
an Additional Property within the Committee Approval Period, such transaction shall be deemed to have been disapproved; provided, however, if consented to by the Manager, the Executive Committee may subsequently issue its approval to the Manager after the Committee
Approval Period as described below has expired.

Approval by NYSTRS and Inland. Upon issuance by the Executive Committee of its preliminary approval, NYSTRS and Inland shall each have the periods thereafter designed in such letters, agreements or other
documents by and between the Company and the owner of the Additional Property to advise the Manager in writing of their approval or disapproval of the acquisition of the Additional Property (the “Preliminary Member Approval Period”).  During the
Preliminary Member Approval Period, the Company shall engage consultants and professionals, as appropriate, from lists of consultants and professionals approved by the Executive Committee, to perform legal, business and physical due diligence, and said consultants
and professionals shall permit the Members to rely on their reports.  The Manager shall advise the Executive Committee if the Manager obtains any information regarding the Additional Property in the course of the due diligence review which the Manager determines
in the exercise of its reasonable judgment is material to the decision by the Members to approve the acquisition of the Additional Property.  Upon receipt by the Manager of NYSTRS’ and Inland’s Preliminary Member Approval, the Manager shall proceed
to take such actions as shall be necessary to complete the acquisition of the Additional Property on behalf of the Company in accordance with the terms and conditions set forth in the Evaluation Materials; subject, however, to the final approval by the Members as
described in this Section.  

Disapproval by NYSTRS; Resubmission of Evaluation Materials.  In the event that NYSTRS advises the Manager in writing that it disapproves of the acquisition of the Additional Property, or if NYSTRS
fails to give its preliminary approval or disapproval within the Preliminary Member Approval Period, unless extended by mutual written agreement of the Members, the Additional Property shall be deemed rejected by NYSTRS, the Company shall not acquire the Additional
Property, and thereafter, Inland or any affiliate or subsidiary thereof shall be free to acquire the Additional Property materially in accordance with the terms and conditions set forth in the Evaluation Materials.  In the event that any of the terms of the
transaction set forth in the Evaluation Materials shall be materially revised or amended after the rejection by NYSTRS, the Manager shall submit the revised or amended Evaluation Materials to NYSTRS and Inland, in which event the Preliminary Member Approval Period
shall be reinstated and the procedures for notice of approval or rejection described herein shall once again be complied with by the parties.

Final Approval by the Members. Final approval of the acquisition of any Additional Property by the Company shall be subject to the satisfaction of each of the following express conditions (any of which may
be waived by the Members) set forth below.  Final approval or disapproval shall be given by the earlier of (i) no later than 7 business days after the Manager’s request for approval; or (ii) the time by which such approval must be given in accordance with
the terms and conditions set forth in any agreements or other documents entered into by the Company and the owner of any Additional Property. The Manager’s request for approval should be accompanied by a recommendation from Manager that the acquisition be
approved. The failure of the Members to provide their final approval within the time period described above shall be deemed to be a disapproval of the acquisition, unless otherwise agreed to by the Members and the Manager.  The express conditions to which final
approval is subject are as follows:

Property level due diligence in accordance with the standard criteria and procedures of NYSTRS and Inland, including, without limitation, reviews of title, survey, entitlements and other matters of legal
compliance, environmental, physical, litigation and other items customary to such a transaction;

Satisfactory review of financial statements, leases, rent rolls, existing financing documents and other information requested by either Member;

Consents of sellers, partners, lenders, tenants and other persons whose consent is determined by either Member to be reasonably necessary to consummate the acquisition of the Additional Property;

Negotiation and approval of all transactional and subsidiary investment entity documents determined by either Member to be reasonably necessary to consummate the acquisition of the Additional Property;

Receipt by the Company of adequate insurance for the Additional Property to the satisfaction of the Members;

As to Inland only, approval of the Board of Directors of Inland; and

As to NYSTRS only, approval by authorized officers of NYSTRS.

Title to Additional Properties.  Title to each of the Additional Properties shall be acquired by the Company in a separate single purpose limited liability company of which the Company shall be the sole
member and the sole manager (except to the extent that the holder of any Financings (as defined herein) may require that said subsidiary also have an independent manager for the purpose of providing the lender with bankruptcy protection); provided, however, where
determined appropriate by the Manager, title may be acquired in another form of pass-through entity, subject to the consent of the Members.  All income, expense, cash flow and other financial activity of any Subsidiary shall be consolidated with and shall
constitute the financial activity of the Company.  All cash flow distributions from any Subsidiary to the Company shall be characterized as Net Ordinary Cash Flow or Net Extraordinary Cash Flow of the Company in accordance with the terms of this Agreement
and shall be retain such characterization for all purposes hereunder, including, but not limited to, distributions to Members. 

Transaction Costs.  If the Executive Committee provides its preliminary approval pursuant to Section 6.2(c), the Company shall pay all of the ordinary and customary out-of-pocket costs associated with the review and acquisition of any Additional
Property, including, but not limited to, due diligence, engineering and environmental inspections and reports, and outside legal counsel retained by the Company.  If the acquisition of an Additional Property is rejected by NYSTRS or Inland, or if such approval
is given, but the Additional Property is not thereafter acquired by the Company, Inland shall reimburse the Company for such out-of-pocket costs if the Additional Property is thereafter purchased by an Inland-related REIT or other investor that is an Affiliate of
Inland. 

Agents and Financial Advisors. Each of the Members hereby represents and warrants and acknowledges and agrees that there are no agents, brokers or financial advisors involved in connection with the formation
of the Company, other than Silver Portal Capital, LLC, whose fee will be paid by Inland.

Inland Option to Acquire Additional
Properties.  Notwithstanding anything to the contrary contained herein, Inland may acquire an Additional Property that meets the Investment Guidelines, if Inland, in its reasonable judgment, determines that the opportunity to acquire
the Additional Property will be lost to the Company unless Inland proceeds to consummate the acquisition.  Inland shall acquire such Additional Property in a single member limited liability company that is solely owned by Inland.  Within 7 days of such
acquisition, Inland shall advise NYSTRS’ in writing that the Additional Property has been acquired, and the parties shall comply with the provisions of Section 6.2 of this Agreement, to the extent appropriate, to obtain the approval or disapproval of the NYSTRS
Executive Committee Members and NYSTRS; provided, however, that upon receipt of the Evaluation Materials, the NYSTRS Executive Committee Members shall have no less than 7 business days to provide their preliminary approval or disapproval of the Additional Property
and after issuance of the preliminary approval by the NYSTRS Executive Committee Members, NYSTRS shall have no less than 30 business days to provide its final approval.  In the event that the NYSTRS gives its final approval for the acquisition by the Company of
the Additional Property, Inland shall cause the Additional Property (or Inland’s interest in the single member limited liability company holding title to the Additional Property) to be conveyed to the Company, and the Company shall acquire the Additional
Property from Inland at Inland’s acquisition costs, including, but not limited to, the net amount of the purchase price paid by Inland for the Additional Property and all other expenses incurred by Inland in connection with the acquisition, exclusive of any
pass-through expenses and without additional mark-up.  The Company shall pay all costs and expenses, including any transfer fees, associated with the conveyance of the Additional Property to the Company, and any other fees to which Inland or any of its
Affiliates would have been entitled to hereunder if the Additional Property had been originally been acquired by the Company.  All receipts derived by Inland with respect to the Additional Property during the period while Inland owns title to the Additional
Property shall inure to the benefit of the Company and all expenses associated with the Additional Property during such period shall be assumed by the Company, and all prorations and adjustments related thereto shall be calculated on the same basis as was agreed to
by Inland and the third party seller for purposes of acquiring the Additional Property.

Senior Financing for the Properties. 

Initial Property Senior Financing.  Simultaneously or as soon thereafter as is practical following the acquisition of the Initial Properties, and provided that the Executive Committee determines that it
is economic and expeditious to do so, the Company shall seek non-recourse debt financing (the “Initial Property Senior Financing”) from a third party institutional lender or lenders on three of the Initial Properties (Cobbler Crossing, Chatham Ridge and
Woodfield Commons).  In connection with the Initial Property Senior Financing the Company shall endeavor to bring the ratio of existing senior debt on the Initial Properties to 50% of the Gross Agreed Value identified on EXHIBIT 6-A.  Where necessary
or appropriate, the Company shall assume any Existing Indebtedness on the Initial Properties, in each case, as set forth in the Contribution Agreement related thereto.  The outstanding indebtedness on the Initial Properties as of December 31, 2003 is
described in EXHIBIT 6-C (collectively, the “Existing Indebtedness”).

Additional Property Senior Financing.  Upon or near the acquisition date for any Additional Property acquired by the Company thereafter, and provided that the Executive Committee determines that it is
economic and expeditious to do so, the Company shall seek non-recourse acquisition debt financing from a third party institutional lender or lenders in an amount which is no greater than 50% of the total acquisition cost of the applicable Property (the
“Additional Property Senior Financing”).  In the event that the Members thereafter agree to cause the Existing Indebtedness or any indebtedness hereafter secured by any Property to be repaid by the placement of new indebtedness on such Property, such
new indebtedness shall be in an amount that is no greater than 50% of the market value of the Property at the time of the refinancing (the “Refinancing”). 

Senior Financing Terms.

Each Initial Property Senior Financing, Additional Property Senior Financing or Refinancing (collectively, “Financings”) will be secured by a first mortgage on the applicable Property.  In no event
shall the Financings provide for any recourse to NYSTRS.

It is anticipated (but not required) that the Financings described above will have terms that include, but are not limited to, a fixed rate of interest, a scheduled maturity date as approved by the Executive
Committee taking into account appropriate terms and yield curves, and payment of interest only or amortizing debt until maturity as approved by the Executive Committee. None of the Financings will provide for any cross default provisions among the Property
loans.

The Company shall use its best efforts to cause each Financing to permit the exercise by the Members of any purchase and sale rights contained in Article 10 of this Agreement, or any other transfer of the
Property or Interests in the Company between the Members, without regard to any due on sale provision contained in the Financing and without payment of any prepayment penalty or assumption or other fee, except for an administrative fee to the lender to process any
ownership change.

Each of the Financings will provide for the replacement of Inland Commercial Property Management, Inc. as the property manager or leasing agent “for cause” (consistent with the applicable provisions of
the Management Agreement), or if Inland ceases to be a Member pursuant to a “Buy-Out Event” as described in Section 10.7(b), or if NYSTRS (or its affiliated entity) becomes the owner of the Property pursuant to the exercise of the purchase and sale
provisions contained in Article 10.

All fees and costs associated with the Financings will be paid by the Company.

Operation in Accordance with REIT
Requirements.    The Members acknowledge that Inland is a real estate investment trust (a “REIT”) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”) and that
the ability of Inland to be qualified as a REIT will depend upon the nature of the Company’s operations.  Accordingly, notwithstanding anything to the contrary contained herein, the Manager shall endeavor to operate the Company at all times in a manner
that will enable Inland to satisfy all the requirements applicable to a REIT with respect to its activities, income, operation, and assets as set forth in Code Section 856, et seq. (the “REIT Requirements”) and avoid the imposition of any federal income
or excise tax liability on Inland.  In addition, the Manager shall cause the Company to avoid taking any action that would result in Inland ceasing to satisfy any of the REIT Requirements or would result in the imposition of any federal income or excise tax
liability on Inland.  Upon the recommendation of the Manager, the Executive Committee shall not take or omit to take any course or action or require that the Manager take or omit to take any course of action which is inconsistent with the foregoing.

Environmental Matters.

NFR Letters. 

Inland shall submit applications to the Illinois Environmental Protection Agency (“IL EPA”) seeking “No Further Remediation” letters  (“NFR Letters”) for the dry cleaner operations on the Properties known as Randall Square
and Cobbler Crossing. 

Inland, at its sole cost and expense, shall use its best efforts to diligently pursue the issuance of the NFR Letters and take all actions reasonably required by the IL EPA to cause the NFR Letters to be issued, provided that Inland shall not be obligated to incur
more than (i) $100,000 from and after the date hereof in out-of-pocket costs in connection therewith for Randall Square and (ii) $100,000 from and after the date hereof in out-of-pocket costs in connection therewith for Cobbler Crossing, which out-of-pocket costs
shall include all costs and expenses incurred by Inland in connection with or in any way related to the application for and issuance of the NFR letter, including, but not limited to, all costs of remediation and all consulting, professional and third party fees and
charges related thereto.  Notwithstanding the foregoing, upon the earlier to occur of (i) Inland’s receipt of notice from the IL EPA that (A) it will not issue an NFR Letter with respect to either the Randall Square or Cobbler Crossing Property, or (B) it
will only issue an NFR Letter if remediation actions are taken and the cost of said actions (as estimated by reputable third party consultants not affiliated with Inland and acceptable to NYSTRS) with respect to either such Property would exceed $100,000; or (ii) the
date which is two years after the Property Contribution Date for either such Properties if no NFR Letter has been issued by such date, then NYSTRS, at its election, may either (x) release Inland from any further obligation under this Section 6.6(a)(ii) with respect
to such Property, or (y) cause the Company to make an In-kind Distribution of the Property in question to Inland, and a cash distribution to NYSTRS, in accordance with Section 10.13 of this Agreement. Notwithstanding anything to the contrary contained herein, if
Inland has begun to take any remediation actions with respect to such Property required by the IL EPA for purposes of obtaining an NFR Letter on or before the date which is two years after the Property Contribution Date, and Inland is taking all reasonable actions
necessary to cause such remediation to be pursued to completion, which actions shall include, if applicable, a waiver by Inland of the $100,000 limitation on out-of-pocket costs to complete such remediation, then NYSTRS may not require an In-Kind Distribution to be
made to Inland pursuant to Section 6.6(a)(ii)(y) above, provided; however, if the remediation which is being pursued by Inland is not completed within three years after the Property Contribution Date, then, NYSTRS, at its election, may thereafter require the In-Kind
Distribution to be made to Inland pursuant to this Section.

Within thirty (30) days after the earlier of (x) the date on which NYSTRS is notified by Inland of the occurrence of any of the events described in the second sentence of Section 6.6(a)(ii) above, or (y) two years after the Property Contribution Date for the
Property in question, unless the NFR Letter for said Property has been delivered to NYSTRS,  NYSTRS shall give written notice of Inland of its election under Section 6.6(a)(ii) (the “NYSTRS Election Notice”).  Notwithstanding the foregoing
election by NYSTRS, if NYSTRS has elected to cause the Company to make an In-kind Distribution (as defined in Section 10.13) to Inland because the NFR Letter will only be issued if remediation actions are taken and the cost of said remediation actions (as estimated
by reputable third party consultants not affiliated with Inland and acceptable to NYSTRS) with respect to either such Property would exceed $100,000; then Inland, upon written notice given to NYSTRS no later than thirty (30) days after Inland’s receipt of the
NYSTRS Election Notice may elect to complete the remediation, regardless of costs, necessary to obtain the NFR Letter for the Property.

Inland agrees to indemnify and hold NYSTRS harmless from any and all loss, cost or expense arising out of or resulting from any matter related the violation of an Environmental Law (as defined in the Contribution Agreement) with respect to the operation of the dry
cleaners on the Randall Square Property or the Cobbler Crossing Property prior to the Property Contribution Date (as defined in the Contribution Agreement).  Payment of any indemnification obligation set forth in this Section shall be governed by and included
within the indemnification limitations of Inland set forth in the Contribution Agreement. 

Thatcher Woods.  Inland agrees that it shall, at its sole cost and expense, repair the existing monitoring wells for the Citgo gas station on such Property known as Thatcher Woods after consultation with Hygienetics Environmental Services,
Inc.  The parties agree that no further action needs to be taken with respect to the dry cleaner at the Thatcher Woods Property; provided, however, that Inland agrees to indemnify and hold NYSTRS harmless from any and all loss, cost or expense arising out of or
resulting from any matter related the violation of an Environmental Law (as defined in the Contribution Agreement) with respect to the operation of the dry cleaners on the Thatcher Woods Property prior to the Property Contribution Date (as defined in the Contribution
Agreement).  The indemnification obligation set forth in this Section shall be governed by and included within the indemnification limitations of Inland set forth in the Contribution Agreement.

Gateway Lease.  As of the date of the contribution of the Property known as Woodfield Commons to the Company, Inland agrees to pay to the Company with respect to the Gateway location the amount of $17,201.04 per month through June
30, 2006, and $18,921.14 per month through June 30, 2009 (the “Rent”).  Inland shall also reimburse the Company for common area maintenance, taxes and insurance pursuant to the terms of the Gateway lease of the location.  If a new lease is
hereafter entered into by the Company or the applicable Subsidiary, Inland shall only liable hereunder for the difference between the Rent and the amount of the new rent (whether base or percentage) which is paid from time to time pursuant to the new lease; provided,
however, if the new lessee has a net worth or income which is equal to or greater than that of Gateway at the time the Gateway lease was originally entered into as determined by Inland’s usual method of determining the creditworthiness of a lessee, if said new
lease is approved by NYSTRS if required under Section 8.2(c) or in the Annual Plan, then Inland shall be fully released from its obligations hereunder from and after the date that new lease is entered into.

Payments Not Treated as Capital Contributions.   Any payments made by Inland pursuant to Section 6.6 or 6.7 shall not constitute capital contributions or loans to the Company, and Inland shall have no right to reimbursement or
repayment from the Company in connection therewith.

   

Accounting and Distributions

Books of Account. 

Maintenance of Books of Account.  At all times during the continuance of the Company, the Manager shall cause proper and true books of account to be maintained in conformity with generally accepted
accounting principles consistently applied (“GAAP“) wherein there shall be entered particulars of all monies, goods or effects belonging to or owing to or by the Company, or paid, received, sold or purchased in the course of the Company’s
activities, and all of such other transactions, matters and things relating to the Company as are usually entered in books of account kept by persons engaged in activities of a like kind and character.  All reports prepared pursuant to this Article 7 shall
be prepared separately for each Property and also on a consolidated basis for the Company and all of its Subsidiaries that hold title to any of the Properties.

Monthly Reports.  The Management Agreement and Leasing Agreement attached hereto as Exhibits 8-C and 8-D set forth the format of financial statements which shall be delivered by the Property Manager and
the Leasing Agent with respect to the Properties.  In addition to the financial statements to be prepared for each Property, the Manager shall cause the Property Manager and the Leasing Agent to provide to the Manager consolidated statements with respect to all
of the Properties owned by the Company in the formats set forth in the Management Agreement and Leasing Agreement, and within 10 days after the receipt of such consolidated statements, the Manager shall cause them to be delivered to the Members or their
designees.

  Financial Statements; Tax Returns. The Company’s books of account shall be closed as soon as practicable after the close of each calendar year (which shall be the Company’s “Calendar Year”) and an annual audit shall be
performed at the expense of the Company in accordance with GAAP by KPMG or such other independent certified public accounting firm approved by the Members (such initial firm of accountants, or any replacement firm so selected, the “Accountants”); provided
that in no event shall said accounting firm be the same firm as has been engaged by NYSTRS for its own internal audit purposes for the Calendar Year (or any portion thereof) in question.  NYSTRS agrees that NYSTRS shall not engage the then-current Accountants of
the Company except at the beginning of a new Calendar Year.  In the event that at any time hereafter NYSTRS desires to engage the then-current Accountants for the Company, NYSTRS shall give the Company no less than 120 days written notice prior to the beginning
of the Calendar Year for which NYSTRS will engage the Accountants, so that the Company shall have sufficient opportunity to retain new Accountants.  If NYSTRS does not advise the Company in writing within 120 days prior to retaining the then-current Accountants,
NYSTRS shall been deemed to have waived its right to cause the Company to obtain Accountants which differ from those engaged by NYSTRS.  Notwithstanding the foregoing, the Company shall not be required to obtain new Accountants if the appointment has already
been made for the up-coming Calendar Year or it would result in a material financial and substantial business hardship for the Company to retain new Accountants.  The Manager shall cause to be delivered to the Members within 60 days after the close of each
taxable year a draft of the audited financial statement (in the format prepared by the Accountants retained by the Company) and tax return for such taxable year, and shall cause to be delivered to the Members within 90 days after the close of each taxable year, the
final audited financial statements (in the format prepared by the Accountants retained by the Company) and tax return for the Company and/or any subsidiary entity of the Company that owns any Property, which can be used by the Members for tax reporting
purposes.  Such financial statements shall include certification by the Manager that any and all distributions made by the Company were made in accordance with the terms of this Agreement, and a verification thereof by the accountants.  The Manager shall be
responsible for engaging the Accountants to prepare and seeing to the filing of all Federal, state and local tax returns on behalf of the Company, and all costs of preparing the audited financial statements and tax returns shall be an expense of the Company.

Intentionally Omitted. 

Percentage Interests.  The Percentage
Interest of each Member shall be as follows:

Initial Percentage Interests.  The Percentage Interest of the Members is as follows:

	
INLAND

	
50%

	
NYSTRS

	
50%

Adjustments to Percentage Interests.  The Percentage Interests of the Members are expected to remain the same throughout the term of the Company; however, the Percentage Interests shall be modified as provided in Section 5.3(b). 

Adjustment Methods.  In the event of any changes in any Member’s Percentage Interest during the Calendar Year, the Manager shall take into account the requirements of Code Section 706(d) and
shall have the right to select any method of determining the varying interests of the Members during the Calendar Year that satisfies Code Section 706(d), subject to the approval of the Executive Committee.

Distributions of Cash Flow. 

Definitions. 

“Expenses”.  For a given period of time, a sum equal to the aggregate of the expenditures, charges and costs actually paid or required to be paid during such period of time in accordance with the terms of this
Agreement or in accordance with any Annual Plan approved pursuant to this Agreement or otherwise in connection with the business of the Company including, without limitation:

expenses, costs and charges in connection with the acquisition, ownership, operation, management or leasing of all or any portion of any Property;

expenses, costs and charges in connection with the repair, maintenance, replacement, alteration of or addition or capital improvement to any portion of any Property, including any casualty or condemnation losses,
to the extent that the losses are not reimbursed during such period by any third party responsible therefor or through insurance maintained by the Company;

payments of all outstanding principal and interest due with respect to Company Loans, if any;

all sales, payroll, real estate, personal property, occupancy and other excise, property, privilege or similar taxes and assessments imposed upon the Company or any Property;

utility costs and deposits and other costs and deposits required to obtain or lease any service or equipment relating to any Property;

management fees and other fees and reimbursements payable to the Property Manager pursuant to the Management Agreement;

leasing commissions, including commissions payable to the  Leasing Agent under the Leasing Agreement, and expenditures required to be made in connection with any lease covering space in or at any Property,
including tenant improvements, tenant allowances and payments, costs incurred in connection with the Company (or any Subsidiary) assuming a tenant’s lease obligations with respect to other real property and costs incurred in connection with the Company’s
(or any Subsidiary’s) exercise of a right, or entering into an agreement, to “takeback” space in any Property;

the net increase, if any, in the Reserves during such period of time;

the fees and expenses of attorneys, accountants, architects, engineers, appraisers, and other professionals retained by or on behalf of the Company in accordance with the terms hereof;

all other customary and necessary direct costs and expenses of the Company incurred in accordance with this Agreement; and

Notwithstanding the foregoing, there shall, however, be excluded from Expenses:

all noncash items such as depreciation;

Distributions;

all payments, deposits, expenses and reserves deducted from the proceeds of a Major Capital Event to determine the Net Extraordinary Cash Flow;

any expense, cost or charge enumerated above, to the extent such expense, cost or charge was paid from Reserves; and

expenditures that would be capitalized pursuant to generally accepted accounting principles consistently applied, to the extent that (x) the Company has Reserves available to pay such expenditures; (y) the Company
has obtained a credit facility which is available to pay such expenditures; or (z) the Members agreed, prior to acquiring the Property to which said expenditures relate, to contribute additional capital when needed to pay such expenditures.

“Major Capital Event”.  Any transaction with respect to any Property which generates cash receipts other than ordinary operating income, including, without limitation, sales of real or personal property
(other than sales of personal property in the ordinary course of business), condemnations (and conveyances in lieu thereof) (but only to the extent not required to be paid to mortgagees, tenants or other third parties and not applied to the restoration of the
Property), damage recoveries (but only to the extent not required to be paid to mortgagees, tenants or other third parties and not applied to the restoration of the Property), receipts of insurance proceeds (other than rent insurance proceeds) (but only to the extent
not required to be paid to mortgagees, tenants or other third parties and not applied to the restoration of the Property), borrowings, and other transfers or dispositions of all or a significant part of (i) any Property or (ii) the aggregate assets of the
Company.

“Net Extraordinary Cash Flow”.  The amount remaining, if any, after subtracting from cash receipts arising from a Major Capital Event (i) all expenses of, and payments and deposits by, the Company
related to such Major Capital Event, including, without limitation, any payment made in respect of any indebtedness encumbering the Property, and (ii) such reasonable reserves for the business of the Company as may be authorized pursuant to any Annual Plan, as
modified from time to time, and (iii) the payment of all outstanding principal and interest due with respect to Company Loans, if any.  Net Extraordinary Cash Flow shall not include NIC Funds or interest earnings thereon, which shall be applied or distributed
solely in accordance with Sections 5.2(h)(i) and 5.1(d).

“Net Ordinary Cash Flow”.  For any given period of time, the Receipts for such period of time minus the Expenses for such period of time.  Net Ordinary Cash Flow shall not include NIC Funds or
interest earnings thereon, which shall be applied or distributed solely in accordance with Sections 5.2(h)(i) and 5.1(d).

“Receipts”.  For any given period of time, a sum equal to the aggregate of all amounts actually received by or unconditionally made available to the Company from or in respect of all of the Properties
or other property of the Company during such period, including, without limitation:

all rents, percentage rents, expense reimbursements and other charges received from tenants and other occupants of the Properties;

proceeds of rent insurance and business interruption insurance;

all utility or other deposits owned by and returned to the Company;

interest, if any, earned on tenants’ security deposits or escrows to the extent unconditionally retained and security deposits to the extent applied pursuant to the provisions of the applicable
leases;

interest, if any, earned and available to the Company on any Reserves or other Company funds, or on any escrow or other funds deposited by the Company with others;

the amount of any net reduction of Reserves other than to pay Expenses; and

revenue received by the Company from any other source.

Notwithstanding the foregoing, Receipts shall not include (w) amounts contributed or loaned by the Members pursuant to this Agreement, (x) each tenant’s security deposit and interest thereon, if any, as long as
the Company has a contingent legal obligation to return that deposit or such interest thereon, (y) amounts arising from a Major Capital Event, and (z) interest earning on the NIC Funds.

“Reserves”.  The amounts of reserved cash set forth in an Annual Plan, or otherwise reasonably determined from time to time or at any time by the Executive Committee to be necessary or advisable, or as
required by any secured lender to the Company pursuant to any Existing Indebtedness or Financing (“Secured Lender”), for (i) payment of debt service coming due within a reasonable future time with respect to indebtedness of the Company;
(ii) management, operation, improvement, maintenance, replacement or preservation of any Property; (iii) payment of taxes, insurance premiums and other reasonably anticipated costs and expenses of the Company; and (iv) increases in working capital and
other contingencies.

“Unreturned Capital”. shall consist of so much of a Member’s Capital Contributions that have not been returned to such Member by way of distributions under paragraph 7.4(c)(i), (ii) or (iii), or
Section 10.13.

Distribution of Net Ordinary Cash Flow.  Net Ordinary Cash Flow shall be distributed on a monthly basis to the Members according to their Percentage
Interests.

Distribution of Net Extraordinary Cash Flow.  Net Extraordinary Cash Flow shall be distributed within 10 days of a Major Capital Event in the following rank and order:

First,to Inland, to eliminate the Catch-Up Balance;

Second, to a Member whose amount of Unreturned Capital is greater than that of the other Member, until Inland’s and NYSTRS’s Unreturned Capital are equal;

Third, to and among the Members in an amount equal to each Member’s Unreturned Capital; provided, however, if there is insufficient Net Extraordinary Cash Flow available for distribution to pay all Members’ Unreturned Capital, then the amount of such
distribution shall be made to and among the Members in accordance with the ratio that the amount of each Member’s Unreturned Capital bears to the aggregate Unreturned Capital of all of the Members; and

Fourth, among the Members according to their Percentage Interests;

Provided, however, that the net proceeds of Initial Property Senior Financing shall be distributed to the Members in accordance with Sections 7.4(c)(iv) only.  No such distribution shall be treated as a reduction of the
Catch-Up Balance under Section 7.4(c)(i) or as a distribution of NIC Funds under Section 5.1(d).

Incentive Distributions. 

After the aggregate of distributions of Net Ordinary Cash Flow and Net Extraordinary Cash Flow have caused each Member’s internal rate of return as defined herein to equal or exceed 13%, Inland shall be
entitled to an incentive distribution (the “Incentive Distribution“) equal to 20% (the “Incentive Distribution Percentage”) of all amounts that would otherwise be available for distribution to the Members pursuant to
Section 7.4(c).  The calculation of the internal rate of return (“IRR”) shall take into account the amount and timing of all Capital Contributions and distributions made hereunder shall be determined in accordance with EXHIBIT 7-C attached
hereto.  For purposes of determining whether the IRR has been met hereunder, if any Member hereafter acquires a Property from the Company in accordance with the terms of this Agreement, or otherwise, any distributions made by the Company to the Members as a
result of such transaction, whether in cash or in-kind, shall be deemed to have been a distribution of Net Extraordinary Cash Flow to the Members.

The Incentive Distribution shall first be calculated within 10 days after the Company (directly or through its Subsidiaries) has sold all of its Properties, and shall be paid to Inland by the Company out of the
next distribution of Net Extraordinary Cash Flow to be paid to Members hereunder within 10 days after the calculation of the Incentive Distribution.  Under no circumstances shall the Incentive Distribution be payable during any period of time in which the
Company or any Subsidiary owns any Property.  The Incentive Distribution shall be paid to Inland after distributions to satisfy Company Loans, but before distributions to Members in accordance with their Percentage Interests. In the event that the aggregate
amount of the Incentive Distribution to be paid to Inland is greater than the amount of Net Extraordinary Cash Flow which is available to satisfy the Incentive Distribution, each Member shall repay to the Company upon demand on a pro rata basis such portion of the
distributions previously made by the Company to such Member as shall be necessary to permit the Company to pay the Incentive Distribution which is due to Inland hereunder. After the payment of the Incentive Distribution, any amounts remaining shall be distributed to
the Members in accordance with their Percentage Interests.  By way of example, suppose (i) the Net Extraordinary Proceeds from the sale of the last Property owned by the Company are $200, (ii) there are no Company Loans and no Default Contributions
have been made, (iii) the Members’ Unreturned Capital is $70 which will be distributed pursuant to Section 7.4(c)(i), (ii) and (iii), as applicable, and (iv) after an additional $30 is distributed to the Members under Section 7.4(c)(iv), each
Member will have achieved a 13% IRR.  Then, the next $100 would be distributed as follows:  $20 would be distributed to Inland as an Incentive Distribution, and the remaining $80 would be distributed to NYSTRS and Inland in accordance with their respective
Percentage Interests.  See also the illustration in EXHIBIT 7-B.  No amount paid by the Company to Inland as Incentive Distribution is intended to constitute a fee or other remuneration for services.

(iii)       If at the time at which the Incentive Distribution is to be paid to Inland, the aggregate of the Capital Contributions which have been made by Inland and NYSTRS are not each 50% as the
result of the contribution by either party of a Default Contribution, the Incentive Distribution Percentage to be paid to Inland hereunder shall be reduced or increased by the change in Inland’s Percentage Interest from 50%.  By way of example, if as a
result of a Default Contribution, the Percentage Interest of Inland has been reduced from 50% to 45% (a 10% reduction), then the Incentive Distribution percentage would be reduced by 10%, from 20% to 18%; however, if the Percentage Interest of Inland has been
increased from 50% to 60% (a 20% increase), then the Incentive Distribution percentage would be increased by 20%, from 20% to 24%.

Repayment of Loans.  Prior to the distribution by the Manager of any Net Ordinary Cash Flow, Net Extraordinary Cash Flow or Incentive Distribution to the Members, the Manager shall cause the principal
amount and any interest due and owing on any Company Loan made by Members to the Company to be repaid in full. 

Restrictions on Distributions.  Notwithstanding the distributions contemplated by this Section, if the Company has creditors, no distribution may be made if, after giving effect to such distribution,
either (i) the Company would be unable to pay its debts as they become due in the usual course of business or (ii) the net assets of the Company would be less than zero. 

Allocation of Income and Losses.  The
agreement of the Members concerning the maintenance of capital accounts, allocation of income and loss, and other related tax matters is set forth in EXHIBIT 7-D, attached hereto and made a part hereof. 

Guarantees.  Notwithstanding the terms of
any guarantee or other document executed by a Member or the Manager or any of their affiliates (collectively, a “Guarantor”), the Company shall indemnify and hold harmless any Guarantor who is required to provide a guarantee with respect to any third
party indebtedness of the Company.  If any Guarantor is required to make any payment with respect to a guarantee of any Company indebtedness, the Company shall reimburse such Guarantor for such payment and all costs and expenses of the Guarantor in connection
therewith from the next distribution of Net Ordinary Cash Flow or Net Extraordinary Cash Flow, before making any other distributions to Members pursuant to this Agreement.  In no event shall the Company make a Capital Call or borrow funds from a third party to
reimburse the Guarantor.

Rights, Duties, Liabilities and Restrictions of the Manager

Manager. 

Generally.  Subject to the terms of this Agreement, the day-to-day business affairs of the Company shall be managed by a manager (the “Manager”), who shall be appointed and, as the case may
be, removed and replaced, in accordance with the terms of this Agreement.

Number.  There shall be one Manager of the Company. 

Election; Removal; Replacement.  The Members do hereby elect IN Retail Manager, L.L.C. as the initial Manager of the Company.  Members holding all of the Percentage Interests shall have the
authority at any time and from time to time hereafter to remove, replace and appoint the Manager. The Person appointed as Manager shall serve as Manager unless and until replaced pursuant to this Section 8.1; provided that, without the unanimous consent of the
Members, no Person shall serve as Manager unless said Person is (or is an asset manager for, or an Affiliate of) a Member, and any Person that has previously been appointed as Manager shall immediately cease acting as Manager at such time, if any, as said condition
is no longer satisfied.  If the Manager (i) breaches this Agreement by taking actions that constitute Major Decisions without the approval of the Executive Committee, (ii) takes any action or omits to take any action on behalf of the Company that
constitutes fraud, bad faith, or wanton and willful misconduct, or (iii) fails in any material respect to satisfy its duties and obligations set forth herein, and such failure is not cured within 30 days after written notice from the other Member (the
“Aggrieved Member“) (or, if said failure is not capable of being cured within said 30 day period, then the Manager shall have commenced said cure within said 30 day period and shall thereafter prosecute said cure diligently to completion), then the
Aggrieved Member shall have the right by notice to the Manager (the “Replacement Notice“) to designate an asset manager for, or an Affiliate of the Aggrieved Member to replace the Manager and thereafter to serve as Manager, with said replacement to be
effective on the thirtieth (30th) day following the furnishing of the Replacement Notice, subject however to the Manager’s rights to dispute said replacement, as provided below in this Section 8.1(c).  If the Manager disputes the basis on which the
Replacement Notice is issued by the Aggrieved Member, the Manager shall have the right, to be exercised within thirty (30) days after receiving the Replacement Notice, to submit the matter of whether the Aggrieved Member is entitled to replace the Manager in
accordance with this Section 8.1(c) (and no other matter) to the American Arbitration Association in Chicago, Illinois for adjudication pursuant to the Commercial Arbitration Rules utilizing expedited procedures. If the Manager does make such submission within such
thirty (30) day period, the Manager shall remain as the Manager unless the arbitrators conclude that the Manager should be replaced by the Aggrieved Member’s designated Affiliate.  The decision of the arbitrators shall be final and may be enforced by the
winning party in any court of competent jurisdiction.  All costs of the arbitration and such enforcement shall be borne and promptly paid by the losing party.  The Manager and the Aggrieved Member shall make all submissions to the arbitrators in a timely
manner and shall otherwise cooperate to achieve a timely resolution of the dispute. If the arbitrators in the arbitration process set forth above fail to render a decision within one (1) year after the Manager’s submission thereto, the Buy-Sell Option set forth
in Section 10.6 shall apply.  Upon the furnishing of an Initiating Notice pursuant to Section 10.6(b), the arbitration process shall be terminated, and no decision shall be rendered.

Authority of Manager. 

Exclusive Right to Manage.  Subject to the Annual Plan approved by the Executive Committee, and except as otherwise provided herein, (i) the Manager shall have the sole and exclusive right and authority
to manage, control and conduct the affairs of the Company, and (ii) the Manager shall make all decisions affecting the affairs and business of the Company and shall carry out the purposes of the Company as set forth herein. 

Power and Authority.  Consistent with the purposes of the Company, the Manager shall have the power and authority, subject to the provisions of this Agreement, to acquire assets; purchase goods and
services; sell, exchange, lease, license or otherwise deal in or with any and all assets of the Company; borrow funds to finance the Company’s activities and in connection with such borrowing, mortgage, hypothecate, pledge, lien or otherwise encumber the
revenues and assets of the Company; manage or arrange for the management of the Properties, supervise any construction on the Properties, enter into any contract or agreement or amend or cancel the same; invest and reinvest any funds or other assets of the Company,
all as incident to or necessary for the operations of the Company. 

Major Decisions.  Notwithstanding any other provisions of this Agreement, the Manager shall not be authorized to take, and shall not take, any of the actions or make any of the decisions that are listed
on EXHIBIT 8-A hereto (each a “Major Decision”) without the prior written consent of the Executive Committee. 

Inland Services.  The Company shall retain Inland Commercial Property Management, Inc. (the “Property Manager” pursuant to the Management Agreement and the “Leasing Agent”
pursuant to the Leasing Agreement) to provide day-to-day decisions and operations as to the management of the Properties, including, but not limited to, services related to the acquisition, operation and leasing of the Properties as described on EXHIBIT 8-B
attached hereto and made a part hereof, which services shall be provided to the Company pursuant to the terms of the Management Agreement, attached hereto as EXHIBIT 8-C (the “Management Agreement”) and the Leasing Agreement, attached hereto as
EXHIBIT 8-D and made a part hereof (the “Leasing Agreement”, and collectively, with the Management Agreement, the “Property Agreements”). Property Agreements shall be entered into between the Company and the Property Manager and/or Leasing
Agent with respect to each of the Properties.  Upon termination of either of the Property Agreements as provided therein, Inland agrees to assist NYSTRS in securing an unaffiliated third party property manager and leasing agent satisfactory to both
parties.  Inland acknowledges that NYSTRS, acting alone on behalf of Company, shall have the right to exercise Company’s rights and remedies, at law, in equity, or under the Property Agreements, in the event of a breach of the Property Agreements by
the Property Manager or the Leasing Agent.

Insurance.  The Manager shall cause the Company to carry comprehensive liability, fire, terrorism and earthquake insurance (where applicable), extended coverage, and other appropriate insurance coverage
as determined by the Manager, including any insurance coverage required by any lender to the Company, with respect to each Property all in form and substance acceptable to the Members.  The required insurance for the Company and its Subsidiaries shall be set
forth in the Annual Plan. 

No Duty to Inquire.  Nothing herein contained shall impose any obligation on any person or firm doing business with the Company to inquire as to whether or not a Manager has exceeded his power and
authority in executing any contract, lease, mortgage, security agreement, deed or other instrument on behalf of the Company, and any such third person shall be fully protected in relying upon such authority. 

Tax Elections.  Subject to the prior approval of the Executive Committee, the Manager shall have the right to make (and revoke) any and all tax elections for the Company, including, without limitation,
an election to adjust the tax basis of Company assets. 

Proscriptions.  The Manager shall have no authority to expend or use Company money or property other than on the account and for the benefit of the Company or to pledge any of the Company’s credit
or property for other than Company purposes. 

Annual Plan.

Annual Plan.  The Manager shall prepare and submit to the Executive Committee for approval a proposal (a “Proposed Annual Plan“) for the following items (collectively, if and to the
extent approved by the Executive Committee in accordance with this Agreement, the “Annual Plan“) for the Company and each Subsidiary on an annual basis: (i) an operating budget (the “Operating Budget“) setting forth the estimated revenues and
expenses (including variances and contingencies) of the Company and each Subsidiary for the ensuing Calendar Year; (ii) a capital budget (the “Capital Budget“), which shall include the proposed capital expenditures (including variances and contingencies)
relating to each Property and sources of funds in connection therewith, including the projected time for, and amount of, any projected Additional Capital Contributions to be required by the Members during the period covered by such budget; and (iii) a leasing budget
and plan (including variances and contingencies) for each Property, and leasing guidelines for each Property which will include minimum and maximum length of lease terms and the minimum permissible “economics” of leases (to be specified as a net present
value or another reasonable methodology incorporating factors such as minimum rental rates, brokerage commissions, tenant improvement costs, landlord contribution costs and free rent periods) (the “Leasing Guidelines“).  On or prior to the date on
which each of the Initial Properties is contributed to the Company, the Executive Committee shall approve an Annual Plan for such Property which will be for the period from the Property Contribution Date (as defined in the Contribution Agreement) through
December 31, 2005 (collectively, the “Initial Annual Plan“), which Initial Annual Plan shall be based upon the 2004 stub period budget and the preliminary Annual Plan for 2005 for such Initial Property, approved by NYSTRS pursuant to the Contribution
Agreement.  The Proposed Annual Plan for each subsequent Calendar Year of the Company shall be prepared by the Manager and submitted for the approval by the Members, such submission to be made not later than November 1 of the year prior to the Calendar Year
covered thereby. 

Revisions to Annual Plan for Additional Property.  In connection with the approval process pursuant to Section 6.2(f), the Manager shall submit to the Executive Committee, concurrently with the
request for final approval of the Company’s acquisition of any Additional Property, (i) a proposed amendment to the Annual Plan to reflect the Company’s acquisition of the Additional Property, including proposed modifications to the Capital Budget, for
the period of through the end of the calendar year in which the Additional Property is acquired, and (ii) a proposed amendment to the Annual Plan to reflect the sources and uses of funds in connection with said acquisition, including an explanation of any Capital
Calls and borrowings that will be required in connection with said acquisition (an “Acquisition Budget”). 

Revisions to Annual Plan for Changes in Receipts and Expenses.  If at any time the Manager believes that the Annual Plan requires modification to reflect changes in Receipts or Expenses not reflected in
the then‐current Annual Plan, the Manager shall propose an amendment of the Annual Plan.  Any amendment or modification proposed by the Manager with respect to the then‐applicable Annual Plan shall be subject to approval by the Executive Committee in
accordance with the same procedures as are set forth herein for approval of a Proposed Annual Plan. The Manager shall make itself available to answer question concerning the Proposed Annual Plan from the  Executive Committee. 

Procedure for Approval.  Within thirty (30) days after receiving a Proposed Annual Plan from the Manager, the Executive Committee Members appointed by the other Member (for purposes of this Section,
referred to as the “Other Member”) shall furnish a written response to the Manager, (i) identifying all elements of the Proposed Annual Plan which said Other Member approves, (ii) identifying any elements of the Proposed Annual Plan which the Other
Member disapproves, including an explanation of the reasons for said disapproval, and (iii) proposing specific alternatives to the elements that are disapproved.  The Member that is an Affiliate of the Manager (and its representatives on the Executive Committee)
shall automatically be deemed to have approved each Proposed Annual Plan, any modifications thereto, and any modification to any Annual Plan that is submitted by the Manager to the Members.  The Members shall cooperate in good faith in an effort to resolve any
disagreements regarding a Proposed Annual Plan prior to the commencement of the Calendar Year to which it relates.  If the Members shall consider for adoption a Proposed Annual Plan for any year and shall fail to adopt it in its entirety because one or more of
its elements have been disapproved in accordance with this Section 8.3(d), then the Company shall adopt as the Annual Plan for such year such Proposed Annual Plan exclusive of the items as to which there is disagreement.  If all or any elements of a Proposed
Annual Plan have not been approved in accordance with this Section 8.3(d) on or before the start of the Calendar Year to which said Proposed Annual Plan relates (said elements being referred to as “Disapproved Elements“), then the Company may, until
the disagreement over such element is resolved, as to each Disapproved Element, expend up to 105% of the amount authorized to be expended for said Disapproved Element for the Calendar Year for which an Annual Plan (or the relevant portions thereof) has been approved
..

Nondiscretionary Items.  Notwithstanding anything to the contrary contained herein, expenditures for Nondiscretionary Items shall not be limited by amounts set forth in an Annual Plan.  As employed
herein, the term “Nondiscretionary Items” means items that reasonably must be paid by the Company or any Subsidiary to avoid a material adverse effect on the business, operations or value of the assets of the Company, any Subsidiary or any Property (but
not capital expenditures made in connection with the renovation or expansion of a Property unless required by law or contractual obligation or made in connection with the repair or restoration of a Property following the occurrence of a casualty or
condemnation).  Without limiting the generality of the foregoing, the Members acknowledge and agree that Nondiscretionary Items include the minimum amount of funds needed to (a) pay and perform when due all of the obligations of the Company under any notes,
mortgages and other documents to which the Company is or shall be a party or by which it or its assets are bound and which have been entered into in accordance with the terms hereof, (b) pay when due real estate and other taxes affecting the Company assets, utility
charges and insurance premiums for the Company assets and the Company, (c) comply with all laws now or hereafter in force which shall be applicable to all or any part of the Company assets and the operation and management thereof (including the making of capital
expenditures required for such compliance), (d) following a casualty, condemnation or deed in lieu thereof in respect of a Property or any portion thereof, restore the Property to its condition (or as near thereto as is practicable) immediately prior to such
casualty, condemnation or deed in lieu thereof, (e) pay when due the fees or other amounts owing pursuant to any Occupancy Leases or other contracts or agreements duly entered into or approved pursuant to this Agreement or (f) in the case of an emergency
involving an immediate threat to persons, property or the continued operations of the Property, take actions to mitigate or eliminate such threat.

Long-Term Plan Items. In addition to the foregoing, elements of any Proposed Annual Plan that are approved by the Members, the cost of which the Members expected to be incurred over more than one year (and
therefore to be included in more than one Annual Plan) shall be deemed approved in advance with respect to future Annual Plans. 

Bank Accounts. 

Bank Accounts.  Except as set forth herein with respect to proceeds from a Major Capital Event, pending any expenditure, distribution or long-term investment, all funds of the Company shall be deposited
in a bank account or accounts as shall be designated by the Manager from time to time (collectively, the “Master Account”); including, but not limited to, an account from which the receipts and expenses of the Properties will be managed, a lock-box
account through which rents and other receipts will be collected and such other Company accounts as shall be necessary in connection with the operations of the Company and payment of Company operating expenses. Inland and NYSTRS acknowledge that the funds of third
parties may be maintained in the Master Account.  All Expenses of the Properties shall be paid from the Master Account, provided, however, that the Manager shall cause any funds in excess of Expenses of the Properties, including, but not limited to, funds
designated hereunder as Reserves, to be transferred to a segregated operating account or accounts for the Company (collectively, the “Operating Account”) on a monthly basis.  Upon the receipt by the Company of proceeds from any Major Capital Event,
such funds shall be deposited directly into the Company’s Operating Account.  All withdrawals from accounts maintained for or on behalf of the Company shall be made upon the signature of such person or persons as the Manager may
designate.  

Indemnification.  Inland agrees to indemnify and hold NYSTRS harmless from any loss incurred by NYSTRS if the Company loses any funds maintained in the Master Account due to the actions, omissions or
financial condition (including without limitation the bankruptcy or insolvency) of any Person other than the Company, its subsidiaries or NYSTRS who has (or is asserted in any bankruptcy or insolvency proceedings to have) an ownership interest in such Master Account,
excluding; however,  any bankruptcy, insolvency or similar event related to the financial institution at which the Master Account is maintained.

Requirement for Segregated Accounts.  NYSTRS shall be entitled to require that the Manager and the Property Manager cause all funds of the Company to be deposited in the Operating Account, and not in the Master Account, if at any time hereafter Inland
fails to meet 2 of the 3 ratios described on EXHIBIT 8-E attached hereto (the “Ratios”).  The Manager shall cease to deposit funds in the Master Account and cause all funds of the Company then deposited therein to be transferred to the Operating
Account within five (5) days after written notice from NYSTRS that Inland has failed to meet such Ratios as reasonably determined by NYSTRS after review of any filing made by Inland with the Securities and Exchange Commission setting forth the financial information
required to determine the Ratios (the “Filing”).  In the event that based upon the next Filing made by Inland, Inland’s financial position has changed such that Inland has cured the failure to meet 2 of the 3 Ratios, the Manager and the
Property Manager, may, upon written notice from the Manager to NYSTRS (containing a copy of such Filing), again deposit Company funds in the Master Account; provided, however, that the right to cure the failure the meet the Ratios may only be exercised by Inland
twice, and upon the third failure to meet the Ratios, all Company funds shall thereafter be deposited solely to the Operating Account, and no deposits of Company funds may thereafter be made in the Master Account.

Compensation of Manager.  Except as
otherwise set forth in this Agreement, during the term of the Company, the Manager shall not be entitled to any fees or other remunerations for its services as Manager of the Company. 

Expenditures by Manager.  The Company
shall reimburse the Manager for any costs that may be expended by the Manager on behalf of the Company in accordance with this Agreement made out of funds other than those of the Company.

Liability of Manager.  The Manager (which for purposes of this Section 8.6 and Section 8.7 shall include his partners, officers, directors, shareholders, members, managers, employees, agents, affiliates and legal representatives)
shall not be liable to a Member or the Company for honest mistakes of judgment, or for action or inaction, taken reasonably and in good faith for a purpose that was reasonably believed to be in the best interests of the Company, or for losses due to such mistakes,
action or inaction, or for the negligence of any employee, provided that such employee was supervised with reasonable care, or for the negligence, dishonesty or bad faith of any broker or other agent of the Company, provided that such broker or agent was selected,
engaged or retained and supervised with reasonable care. The Manager may consult with counsel and accountants in respect of Company affairs and be fully protected and justified in any action or inaction that is taken in accordance with the advice or opinion of such
counsel or accountants, provided that they shall have been selected with reasonable care.  The Members shall look solely to the assets of the Company for the return of their capital and, if the assets of the Company remaining after payment or discharge of the
debts and liabilities of the Company are insufficient to return such capital, they shall have no recourse against the Manager for such purpose.  Notwithstanding any of the foregoing to the contrary, the provisions of this Section shall not be construed to
relieve (or attempt to relieve) the Manager for any liability it may have to a Member or the Company for any actions by the Manager, or its agents or employees, which constitute the breach or violation of its obligations under or in connection with this Agreement or
any liability by reason of gross negligence, recklessness or intentional wrongdoing or to the extent (but only to the extent) that such liability may not be waived, modified or limited under applicable law, but shall be construed so as to effectuate the provisions of
this Section to the fullest extent permitted by law.

Indemnity.

Company Indemnity.  The Company shall, to the fullest extent permitted by applicable law, indemnify, defend and hold harmless each Member and its Affiliates, including without limitation the Manager
(collectively, the “Indemnified Party“) against any losses, claims, cost, expenses, damages, demands or liabilities to which such Indemnified Party may become subject as a result of claims brought by third parties (i.e., any Person that is not an
Affiliate of NYSTRS or Inland) in connection with any matter arising out of or incidental to any act performed or omitted to be performed by any such Indemnified Party in connection with this Agreement or the Company’s business or affairs; but only to the
extent that such act or omission (i) was not attributable to such Indemnified Party’s fraud, bad faith, willful misconduct or gross negligence and (ii) did not constitute a breach or violation by said Indemnified Party of its obligations under or in
connection with this Agreement.  If an Indemnified Party becomes involved in any capacity in any action, proceeding or investigation in connection with any matter arising out of or in connection with this Agreement or the Company’s business or affairs, the
Company shall make advances to such Indemnified Party for its reasonable legal and other reasonable out-of-pocket expenses (including the cost of any investigation and preparation) as they are incurred in connection therewith, provided that such Indemnified Party
shall promptly repay to the Company the amount of any such reimbursed expenses paid to it if it shall ultimately be determined that such Indemnified Party was not entitled to be indemnified by the Company in connection with such action, proceeding or investigation.
Any indemnity under this Section 8.7(a) shall be paid solely out of and to the extent of Company assets and shall not be a personal obligation of any Member. 

Release and Member Indemnity. Each Member hereby releases the other Member, the Manager and each of their Affiliates and holds them harmless from and against any and all claims, demands, liabilities, costs,
damages, expenses and causes of action of any nature whatsoever arising out of or incidental to any action or omission of the Member or the Manager taken or omitted to be taken reasonably and in good faith and in conformity with the material terms of this Agreement,
except to the extent that such actions or omissions arise out of or are incidental to the fraud, bad faith, willful misconduct or gross negligence of such party.  To the extent not released hereby, each Member and the Manager (each such Person being referred to
herein as an “Indemnitor”) shall indemnify, defend and hold harmless the Company and each of the other Members and their Affiliates from and against any and all claims, demands, liabilities, costs, damages, expenses and cause of action of any nature
whatsoever arising out of or incidental to any act performed by or on behalf the Indemnitor not taken reasonably and in good faith and in conformity with the material terms of this Agreement, or out of or incidental to fraud, bad faith, willful misconduct or gross
negligence.  A Member whose Affiliate is serving as the Manager shall be jointly and severally liable with said Affiliate for the performance of the Manager’s obligations as an Indemnitor under this Section 8.7(b).

Survival. The provisions of this Section 8.7 shall survive for a period of two years from the date of dissolution of the Company, provided that if at the end of such period there are any actions,
proceedings or investigations then pending, an Indemnified Party may so notify the Company, the Members and the Manager at such time (unless the Indemnified Party has previously provided notice to the Company, the Members and the Manager of such matter), which notice
shall include a brief description of each such action, proceeding or investigation and the liabilities asserted therein and the provisions of this Section 8.7 shall survive with respect to each such action, proceeding or investigation (or any related action,
proceeding or investigation based upon the same or similar claim) for which the Company had notice until such date that such action, proceeding or investigation is finally resolved, and the obligations of the Company under this Section 8.7 shall be satisfied
solely out of Company assets. 

Expenses.  To the extent that a Manager, Member, officer, employee or agent of the Company has been successful, on the merits or otherwise, in the defense of any action, suit or proceeding referred to
in paragraph (a) or (b), above, or in defense of any claim, issue or matter therein, the person shall be indemnified against expenses (including attorney’s fees) actually and reasonably incurred by the person in connection therewith. 

Determination.  Any indemnification under paragraphs (a) and (b), above (unless ordered by a court), shall be made by the Company only as authorized in the specific case, upon a determination that
indemnification of the manager, member officer, employee or agent is proper in the circumstances because the person has met the applicable standard of conduct set forth in either paragraph (a) or (b), above.  The determination shall be made by the Executive
Committee, excluding any member of the Executive Committee appointed by a Member who (or whose Affiliate) is a party to the action, suit or proceeding. 

Payment in Advance.  Expenses incurred in defending a civil or criminal action, suit or proceeding may be paid by the Company in advance of the final disposition of the action, suit or proceeding, as
authorized by the Manager or Members in the specific case, as provided in paragraph (d), above, upon receipt of an undertaking by or on behalf of the manager, member, officer, employee or agent to repay that amount, unless it shall ultimately be determined that the
person is entitled to be indemnified by the Company as authorized in this Section 8.7. 

Indemnification Not Exclusive.  The indemnification provided by this Section 8.7 shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under the
Company’s Certificate of Formation, or any agreement, vote of members or disinterested managers, or otherwise, both as to action in the person’s official capacity and as to action in another capacity while holding office, and shall continue as to a person
who has ceased to be a director, officer, manager, employee or agent, and shall inure to the benefit of the heirs, executors and administrators of such person. 

Insurance.  The Company may purchase and maintain insurance on behalf of any person who is or was a manager, officer, employee or agent of the Company, or who is or was serving at the request of the
Company as a director, officer, manager, employee or agent of another limited liability company, corporation, partnership, joint venture, trust or other enterprise, against any liability asserted against the person and incurred by the person in any capacity, or
arising out of the person’s status as such, whether or not the Company would have the power to indemnify the person against the liability under the provisions of this Section 8.7. 

Report to Members.  If the Company has paid indemnity or has advanced expenses to a manager, member, officer, employee or agent, the Company shall promptly report the indemnification or advance in
writing to the Members. 

Definitions.  For purposes of this Section, references to “other enterprises” shall include employee benefit plans; references to “fines” shall include any excise taxes assessed
on a person with respect to an employee benefit plan; and references to “serving at the request of the Company” shall include any service as a manager, officer, employee or agent of the Company that imposes duties on, or involves services by the manager,
officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries.  A person who acted in good faith and in a manner the person reasonably believed to be in the best interests of the participants and beneficiaries of an
employee benefit plan shall be deemed to have acted in a manner “not opposed to the best interests of the Company” as referred to in this Section 8.7. 

Tax Matters Member.  Inland shall be the
Company’s “Tax Matters Partner” as defined in Code Section 6231(a)(7) (the “TMP”).  The TMP shall have the right to resign by giving 30 days written notice to the Members.  Upon the resignation of the TMP, a successor TMP
shall be selected by the Members.  The TMP shall employ experienced tax counsel to represent the Company in connection with any audit or investigation of the Company by the Internal Revenue Service (the “Service”) and in connection with all
subsequent administrative and judicial proceedings arising out of such audit.  The Company shall not be obligated to pay any fees or other compensation to the TMP in its capacity as such; provided, however, that all reasonable expenses incurred by the TMP in
serving as the TMP shall be a Company expenses and the TMP shall be reimbursed by the Company in connection therewith.  Notwithstanding the foregoing, it shall be the responsibility of the Manager and of each Member, at their expense, to employ tax counsel to
represent their respective separate interests.  If the TMP is required by law or regulation to incur fees and expenses in connection with tax matters not affecting each of the Members, then the TMP may, in its sole discretion, seek reimbursement from or charge
such fees and expenses to the Capital Accounts of those Members on whose behalf such fees and expenses were incurred.  The TMP shall keep the Members informed of all administrative and judicial proceedings, as required by Code Section 6223(g), and shall
furnish to each Member a copy of each notice or other material communication received by the TMP from the Service, and each notice or other communication sent by the TMP to the Service, except such notices or communications as are sent directly
to such Member by the Service.  The relationship of the TMP to the Members is that of a fiduciary, and the TMP has a fiduciary obligation to perform its duties as TMP in such manner as will serve the best interests of the Company and all of the Members. 
Notwithstanding the foregoing, the TMP shall not take any position or action with the Service without prior approval from the Members, including but not limited to any decision: 

to enter into a settlement agreement which purports to bind Members other than the TMP;

to file a petition contemplated in Section 6226(a) or 6228(a) of the Code;

to file any request contemplated in Section 6227(b) of the Code;

to enter into an agreement extending the period of limitations as contemplated in Section 6229(b)(1)(B) of the Code. 

To the fullest extent permitted by law, the Company agrees to indemnify the TMP and its agents and save and hold them harmless, from and in respect of (i) all reasonable fees, costs and expenses in connection with or
resulting from any claim, action or demand against the TMP, the Manager or the Company that arise out of or in any way relate to the TMP’s status as TMP for the Company, and (ii) all such claims, actions and demands and any losses or damages therefrom,
including amounts paid in settlement or compromise of any such claim, action or demand; provided that this indemnity shall not extend to conduct by the TMP adjudged (i) not to have been undertaken reasonably and in good faith to promote the best interests of the
Company in accordance with this Agreement or (ii) to have constituted gross negligence, recklessness, intentional wrongdoing or breach or violation of this Agreement by the TMP.

Membership

Rights and Obligations of the Members. 
Except as otherwise provided in this Agreement to the contrary, the Members shall take no part in the control or management of the affairs of the Company, nor shall a Member have any authority to act for or on behalf of the Company or to sign for or bind the
Company. 

Approval of Members.  Whenever any vote or
consent of the Members shall be required pursuant to this Agreement, such vote or consent shall require the unanimous agreement of all of the Members. 

Executive
Committee.  

Executive Committee.  When and to the extent that the Members are required to vote or consent or otherwise take any action hereunder, including, but not limited to, the approval of any Major Decisions,
such vote, consent or action on the part of the Members shall be taken on behalf of the Members by the Executive Committee (the “Executive Committee”), except for the approval of the acquisition by the Company of any Additional Property, which acquisition
must be approved by the Members in accordance with the procedure described in Section 6.2. 

Number.  There shall be four (4) members of the Executive Committee. 

Election; Removal; Replacement.  Inland does hereby elect Mark Zalatoris and Scott Carr to act on behalf of Inland on the Executive Committee (individually, an “Inland Executive Committee
Member”, and collectively, the “Inland Executive Committee Members”) with David Kayner designated as an alternate with the right to attend and vote at any meeting of the Executive Committee not attended by either or both of the other two Inland
Executive Committee Members.  Notwithstanding anything to the contrary contained herein, Inland shall have the authority at any time and from time to time to remove and replace any Inland Executive Committee Member (and any successor thereto). NYSTRS does hereby
elect Brian Lantz and Mark Bratt to act on behalf of NYSTRS on the Executive Committee (individually, an “NYSTRS Executive Committee Member”, and collectively, the “NYSTRS Executive Committee Members”) with Jay Raghavan designated as an
alternate with the right to attend and vote at any meeting of the Executive Committee not attended by either or both of the other two NYSTRS Executive Committee Members.  Notwithstanding anything to the contrary contained herein, NYSTRS shall have the authority
at any time and from time to time to remove and replace any NYSTRS Executive Committee Member (and any successor thereto).  If any Executive Committee Member is not available to attend and vote at any meeting of the Executive Committee, then the alternate
Executive Committee Member named by such Member shall be entitled to act as an Executive Committee Member after notice from the Member whose alternate will be attending and voting to the other Member.  The Executive Committee Members, the Manager and the other
Member shall be entitled to act in reliance upon the votes cast or the consents given by any alternate Executive Committee Member.

Decisions.  Whenever the Executive Committee shall be required to take any action, make any decision or exercise any discretion, the action, decision or exercise of discretion shall require the
concurrence of all of the persons appointed to the Executive Committee.  Whenever the Inland Executive Committee Members or the NYSTRS Executive Committee Members, as the case shall be, shall be required to take any action, make any decision or exercise any
discretion on behalf of the Member which such Executive Committee Members represent, such action, decision or exercise of discretion by the Inland Executive Committee Members or the NYSTRS Executive Committee Members, as the case may be, shall require the concurrence
of all of the persons appointed as the Inland Executive Committee Members or the NYSTRS Executive Committee Members. 

Meetings of the Executive Committee Members.  Regular meetings of the Executive Committee Members may be held on a monthly or other basis as agreed to by the Executive Committee Members from time to
time.  Special meetings of the Executive Committee may be called for any purpose at any time by any Executive Committee Member.  Meetings shall be held at the principal office of the Company or such other place as may be designated by the Executive
Committee Members. Any actions required or permitted to be taken at a meeting of the Executive Committee may be taken without a meeting upon the unanimous written consent of the Executive Committee Members. Executive Committee Members may participate and act at any
meeting through the use of a conference telephone or other communications equipment by means of which all persons participating in the meeting can hear and speak to each other. 

Officers of the Company.  The Executive Committee may from time to time appoint one or more persons to serve as officers of the Company, in such capacities and with such delegated rights and powers as
the Executive Committee may unanimously approve; provided, however, that no such officer shall have any different or greater rights and powers than the Manager has under this Agreement.  Officers appointed by the Executive Committee shall be entitled to be
indemnified by the Company in accordance with Section 8.7.

Continuation of Business.  Upon the recommendation of the Manager, the Executive Committee shall approve all actions necessary (1) for the continuation of the Company’s valid existence as a
limited liability company under the laws of the State of Delaware and of each other jurisdiction in which such existence is necessary to protect the limited liability of the Members or to enable the Company to conduct the business in which it is engaged and (2) for
the accomplishment of the Company’s purposes.

Time.  The Executive Committee Members shall devote to the Company such time as may be necessary for the proper performance of all of their duties under this Agreement, but the Executive Committee
Members shall not be required to devote full time to the performance of such duties and may have other business interests or engage in other business activities.  Neither the Company nor any Member shall have any right, by virtue of this Agreement, to share or
participate in such other investments or activities of the Executive Committee Members.  The Executive Committee Members shall not incur any liability to the Company or to any Member as a result of engaging in any other business or venture. 

Restrictions on Authority of the Executive Committee.  Without the consent of all Members, the Executive Committee shall have no authority to: 

do any act in contravention of this Agreement or the Act;

possess property, or assign rights in specific Company property, for other than a Company purpose; or

knowingly perform any act that would subject any Member to liability for the obligations of the Company in any jurisdiction. 

Liability of Executive Committee Members.  The Executive Committee Members shall not be liable to the Company or to any Member for any losses sustained or liabilities incurred as a result of any act or
omission of the Executive Committee if the act or omission did not constitute fraud, bad faith, gross negligence, or willful or wanton misconduct.  For purposes of this Agreement, any act or omission, if done or omitted to be done in reliance, in whole or in
part, upon the advice of independent legal counsel or independent certified public accountants unanimously selected by the Executive Committee, will be presumed to have been done or omitted to be done in good faith and not to constitute fraud, bad faith, gross
negligence or willful or wanton misconduct. 

Compensation.  The Executive Committee Members shall not be entitled to compensation for their services as a member of the Executive Committee.

Liability.  No Member shall be personally
liable for any of the debts of the Company or any of the losses thereof beyond the amount contributed or required to be contributed by it to the Company under this Agreement and as otherwise specified in the Act.

Expenses of Members.  The Company shall
reimburse the Members for any costs that may be expended by them on behalf of the Company in accordance with this Agreement made out of funds other than those of the Company.  

Admission of Additional Members; Assignment Provisions

Additional Members and Membership
Interests.  No additional Members may be admitted to the Company, other than any Transferee of the Interests in the Company currently owned by NYSTRS or Inland, as the case may be, as
and to the extent permitted under this Agreement.  No additional membership interests in the Company may be issued. 

General Provisions.  The following rules
shall apply to transfers of Company interests and the admission of additional persons to the Company: 

Definitions.  The following terms shall have the following meaning: 

“Interest”.  The interest of each Member in the Company attributable to its status as a Member of the Company, including the right of such Member to any and all Distributions and other benefits
(including management and voting rights) to which such Member may be entitled as provided in this Agreement and under applicable law, subject to all liabilities and obligations of such Member as provided in this Agreement and under applicable law. 

“Transfer”.  As a noun, the transfer, sale, assignment, conveyance, gift, mortgage, pledge, hypothecation, charge or other encumbrance of a Member’s Interest (or, as the context may require, a
direct or indirect interest in any Member), in whole or in part, whether voluntarily or by operation of law, or the entry by a Member into any agreement or contract to do so (that is not conditioned on any approval or other conditions required hereunder), or the
consent by or permission of a Member to any of the foregoing with respect to such Member’s Interest (or a direct or indirect interest in such Member), or the sufferance by a Member of any third person to do any of the foregoing; and as a verb, to take any of
the preceding actions; provided that: 

In the case of NYSTRS, no Transfer shall be deemed to have occurred by reason of any change from time to time in the beneficiaries of NYSTRS or any merger or reorganization of NYSTRS with or into any other New York
State‐sponsored pension plan or retirement plan;

In the case of Inland, notwithstanding any other provision of this Agreement to the contrary, no Transfer shall be deemed to have occurred by reason of (A) any merger or reorganization of Inland with or into Inland
Retail Real Estate Trust, Inc., Inland Western Retail Real Estate Trust, Inc. or Inland American Real Estate Trust, Inc., regardless of whether Inland is the survivor, (B) any merger or reorganization of Inland with or into any other entity, provided that either (i)
Inland is the survivor, or, (ii) if Inland is not the survivor in a merger with any other entity, two or more of the key executives named in Section 10.7 continue to be involved in the operation of the Company in substantially similar capacities and the net worth of
the surviving entity is equal to or greater than the net worth of Inland on or prior to the date of merger, or (C) any transfer by any owner of any securities issued by any Member or any direct or indirect owner of any Member pursuant to a transaction occurring in
the ordinary course of trading of publicly traded securities, if the securities were issued pursuant to a registration statement that has been filed with and declared effective by the United States Securities and Exchange Commission, subject only to any required
consent of the mortgage or beneficiary under any deed of trust of any property of the Company; provided, however, no Change of Control shall have occurred in connection with any of the foregoing. 

“Change of Control”.  Shall mean that a Person or group of Persons acting in concert (other than the direct or indirect beneficial owners of the membership interests of Inland as of the date hereof)
shall, as a result of a tender or exchange offer, open market purchases, privately negotiated purchases or otherwise, have become the direct or indirect beneficial owner (within the meaning of Rule 13d3 under the Exchange Act) of securities of Inland representing
more than twenty percent (20%) of the combined voting power of the outstanding voting securities for the election of directors or shall have the right to elect a majority of the management committee or board of managers of Inland, or shall otherwise have the right to
direct the management of Inland. 

“Transfer Affiliate”.  With respect to each Member, any Person that directly, or through one or more intermediaries, controls or is controlled by or is under common control with, such Member; or any
person in which such Member has a direct, or indirect through one or more intermediaries, controlling interest as a partner, member, manager, principal, shareholder, beneficiary or otherwise as an owner. 

Restrictions on Transfer.  Except as expressly permitted in Sections 10.2(e) and (f), no Member shall Transfer, or cause or permit the Transfer of, all or any portion of its Interest or any
interest therein, without obtaining the prior written consent of the other Member.  Such consent may be given or withheld in the sole and absolute discretion of any Member, whether reasonable or unreasonable under the circumstances.  Any Transfer, or
purported Transfer, of all or any part of an Interest made in violation of the provisions of this Article 10 shall be void and of no force or effect against the Company, the other Member, any creditor of the Company or any claimant against the Company.  If
a Member consents to a Transfer of the Interest of another Member or if a Member effects a Transfer of its Interest permitted under this Article 10, then the giving of any such consent or the making of such permitted Transfer in any one or more instances shall
not limit or waive the requirement for such consent or the application of the provisions of this Article 10 to any other or subsequent Transfer of such Member’s Interest. 

Condition to All Transfers.  It shall be a condition to any Transfer that any required consent to such Transfer by any Secured Lender shall have been obtained.  It shall also be a condition to the
effectiveness of any Transfer of all or part of the Interest of a Member to a Person other than a Member, including Transfers otherwise permitted by Section 10.2(e) or (f), and a condition to the purported transferee of such Transfer being admitted as a Member
of the Company or otherwise being entitled to any benefits or rights under this Agreement or otherwise associated with such Interest, that: 

except in the case of a Transfer of ownership interests in a Member permitted by Section 10.2(e), (a) the transferee shall execute and deliver to the other Member a written agreement reasonably satisfactory to
the other Member accepting and adopting the terms of this Agreement and unconditionally assuming and agreeing to be bound by all obligations, conditions and covenants of the transferring Member hereunder with respect to the Interest transferred (whether in existence
at the time of such Transfer or accruing thereafter), and (b) any guarantor of the obligations of the transferor under this Agreement shall execute a written guaranty of the obligations of the transferee hereunder, to the same extent and on the same terms as
such guaranty of the transferor’s obligations;

except in the case of a Transfer of ownership interests in a Member permitted by Section 10.2(e), the other Member shall have received such evidence (including opinions of counsel) of the due authorization,
execution and delivery of instruments by, and the validity and enforceability of such instruments against, such transferee as the other Member shall reasonably request; and

the other Member, at its option, shall have received an opinion of counsel reasonably acceptable to the other Member that (a) such Transfer shall not violate any federal or applicable state securities law or
cause the Company to fail to qualify for an exemption from registration under the federal and any applicable state securities laws, and (b) such Transfer will not result in the imposition of fiduciary responsibility on the Company, any Member or any Affiliate of
any Member under the Employee Retirement Income and Security Act of 1974, as amended from time to time (“ERISA”). 

Indirect Transfers.  If an Interest is at any time held by a Member that is a partnership, corporation, limited liability company, trust or other person, any Transfer of a direct or indirect ownership
interest in such Member shall be deemed a Transfer of the Interest of such Member and subject to the provisions of Section 10.2, except as expressly provided in Section 10.2(e) or (f) or in the definition of “Transfer.” 

Certain Permitted Transfers.  Notwithstanding the provisions of Sections 10.2(b) and (d), but subject to the limitations of Section 10.2(c), any Person who is a stockholder, partner, member or
other direct or indirect owner of any Member may, from time to time, Transfer all or a portion of such Person’s direct or indirect interest in such Member to any Person, provided that (a) any required consent of the mortgagee or beneficiary under any
mortgage or deed of trust of any of the property of the Company has been received, (b) either (i) the assignee of such interest satisfies the provisions set forth in Section 10.2(g) or (ii) the Members receive other evidence satisfactory to each of them
that the proposed Transfer shall not result in adverse consequences to such Member or the Company relating to ERISA, and (c) after giving effect to such Transfer, such Member would come within the definition of a “Transfer Affiliate” as applied to
such Member as constituted on the date of this Agreement. 

Transfers to Transfer Affiliates.  Subject to the limitations of Section 10.2(c), each Member shall have the right, at any time or from time to time, without the consent of the Manager or any other
Member, to sell or assign all or any portion of its Interest to a Transfer Affiliate of such Member.  In the event of any such transfer, the transferee shall assume all obligations of the transferor attributable to the Interest transferred, in accordance with
Section 10.2(c), provided that the transferor shall not thereby be released and shall continue to be jointly and severally liable with such transferee for all such obligations.  Furthermore, any transferee of all or any portion of the Interest of a Member
shall have the right, pursuant to this Section 10.2(f), to assign all or any portion of its Interest to such Member or any Transfer Affiliate of such Member, except that if a Member has assigned its entire Interest, any further assignment of all or any portion
of such Interest shall be subject to the provisions of this Article 10.  If a Member shall transfer less than its entire Interest to a Transfer Affiliate, references to such Member in this Agreement shall refer to such Member and its Transfer Affiliate
collectively, and such transferor Member shall be authorized to act on behalf of such Transfer Affiliate for all purposes under this Agreement. 

ERISA Provisions.  A purchaser or assignee referred to in Section 10.2(b) shall satisfy the provisions of this Section 10.2(g) if (a) such Person is not an “employee benefit
plan” as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA, (b) the assets of such Person do not constitute “plan assets” of one or more such plans within the meaning of 29 C.F.R. Section 2510.3101, and (c) such
Person is not a “governmental plan” within the meaning of Section 3(32) of ERISA.  Each Member hereby agrees to indemnify, defend and hold the other Member harmless from and against all loss, cost, damage and expense (including, without
limitation, attorneys’ fees and costs incurred in the investigation, defense and settlement of claims and losses incurred in correcting any prohibited transaction, and in obtaining any individual prohibited transaction exemption under ERISA that may be
required, in such other Member’s sole discretion) that such other Member may incur, directly or indirectly, as a result of a Transfer of a direct or indirect interest in such Member to any Person not satisfying the provisions of this
Section 10.2(g). 

Binding Effect.  Any person acquiring or claiming an interest in the Company, in any manner whatsoever, shall be subject to and bound by all terms, conditions and obligations hereof to which its
predecessor in interest, if any, was subject or bound, without regard to whether such person has executed a counterpart hereof or any other document contemplated hereby.  No person, including the legal representatives, heirs or legatees of a deceased Member,
shall have any rights or obligations greater than those set forth herein and no person shall acquire an interest in the Company or become a Member except as permitted hereby. 

Actions Prior to Acceptance of Assignment.  The Company and the Manager shall be entitled to treat the assignor of the assigned interest as the absolute owner thereof in all respects and shall incur no
liability for distributions made in good faith to such assignor prior to such time as the documents specified in paragraph (a), above, have been delivered to and accepted by the Manager.

Costs.  The costs incurred by the Company in processing an assignment (including attorney’s fees) shall be borne by the assignee, and shall be payable prior to and as a condition of admission to
the Company.

Transfers by the Manager Prohibited.  The
Manager’s interest in the Company is that of an agent of the Company and is not susceptible of being sold, assigned, pledged, mortgaged or otherwise disposed of or transferred. 

Transfers by Members. 

Continuation of Company Upon Certain Events.  The death, disability, court declaration of incompetence, bankruptcy, dissolution, liquidation or other dissociation of a Member shall not dissolve the
Company, but it shall be continued with the successor or legal representative of the Member; such successor or legal representative shall, to the extent of the interest acquired, be entitled only to the predecessor Member’s rights, if any, in the capital,
profits and losses and distributions of the Company, and no such person shall have any right to participate in the management of the affairs of the Company or vote on any Company matter without the written consent of the Members. 

Restrictions of Transfer.  In addition to the general restrictions set forth herein, no Member shall sell, exchange, pledge, mortgage, hypothecate or otherwise transfer or encumber its interest in the
Company without the prior written consent of the Members. Any such transfer or encumbrance shall be void from inception and of no force or effect whatsoever. 

Option to Sell Interests or
Properties. 

Option to Sell.  At any time after (i) the second anniversary of the acquisition of any of the Initial Properties, or (ii) the second anniversary of the acquisition of any Additional Property
(collectively, the “Investment Period”), any Member can seek to obtain a bona fide offer to sell to a third party for cash either (a) all (but not less than all) of its interest in the Company, or (b) one or more Properties owned by the Company;
provided that the Property to be sold has been held for two years (the “Offered Interest”).   Prior to obtaining such offer, the Member that desires to sell the Offered Interest (the “Selling Member”) shall furnish the Manager and the
other Member (the “Other Member”) with notice setting forth the cash price (subject to adjustment as set forth in Section 10.11(i)) and any other material economic terms at which the Selling Member will agree to sell the Offered Interest (the
“Offer Notice”).  The provisions of this Section shall not apply to a transfer described in Section 10.2(e) or (f), above.  If the Offered Interest consists of more than one Property, the Selling Member shall submit a separate Offer
Notice with respect to each such Property, and the procedures of this Section 10.5 shall apply separately and independently with respect to each Offer Notice (so that, for example, the Other Member may deliver a separate Response Notice with respect to each
Property), and the term Offered Interest shall refer separately to each Property, rather than to such Properties collectively.  Under no circumstances shall any Member have the right to Transfer its Interest in the Company, pursuant to this Section 10.5, to
any “Prohibited Transferee.”  As employed herein, the term Prohibited Transferee shall mean: 

(x)        with respect to NYSTRS, Donahue Schriber or Edens & Avant; and

(y)        with respect to Inland, transferees who are not operators of retail properties with an equity capitalization of at least $750,000,000.

Response Notice.  The Other Member shall have the right and option (the “Option”) to purchase all (but not less than all) of the Offered Interest at the purchase price set forth in the Offer
Notice (subject to adjustment as set forth in Section 10.11(i)), said Option being exercised by notice from the Other Member to the Selling Member and the Manager (the “Response Notice”) on or before the 30th day after the Other Member’s
receipt of the Offer Notice.  The Response Notice shall be accompanied by written evidence of the deposit by the Other Member with a third-party escrow agent selected by the Other Member (the “Escrow Agent”) in an amount equal to the lesser of 5% of
the cash price set forth in the Offer Notice or $1,000,000, as the case may be. 

Closing.  If the Other Member elects to exercise its Option to acquire the entire Offered Interest, the Selling Member shall sell and assign the Offered Interest or shall consent to the Company’s
sale of the Offered Interest, as the case may be, to the Other Member, which sale and assignment shall be closed at the Company’s principal office or such other location as the Members may mutually agree, at any time on or before the 60th day following the
Other Member’s receipt of the Offer Notice or on such later date as the Members may agree.  At the closing, payment of the purchase price for the interests in the Company or the Selling Properties, as the case may be, purchased pursuant to the exercise of
any rights or option arising under this Section shall be paid in full by wire transfer of immediately available funds. 

Rejection of Option.  If the Selling Member wishes to sell its interest in the Company and the Other Member does not agree to purchase all of the Offered Interest, the Option provided to the Other
Member in this Section shall be deemed to have lapsed and expired.   If the Selling Member desires to sell more than one Property, and the Other Member does not agree to purchase one or more of the Properties as set forth in the Response Notice delivered
hereunder by the Other Member, the Option provided to the Other Member in this Section shall be deemed to have lapsed and expired as to the Property which the Other Member has not agreed to purchase.  If the Other Member fails to deliver a Response Notice
required hereunder, such failure shall mean that the Other Member does not agree to the purchase described herein, and the Option provided to the Other Member shall be deemed to have lapsed and expired.  Thereupon, the Selling Member shall be entitled to sell
and assign the its interest in the Company or the Property or Properties which the Other Member did not agree to purchase for an all‐cash purchase price, to any bona fide third party and in connection therewith shall have the right to engage brokers, attorneys
and other consultants not Affiliated with the Selling Member on behalf of the Company, on terms acceptable to the Selling Member; provided, however, such sale or assignment (i) is consummated for a purchase price which is not less than 100% of the price set
forth in the Offer Notice and upon other economic terms that are not more favorable to the buyer than those set forth in the Offer Notice, and (ii) is closed within 12 months of the date the Offer was originally received by the Selling Member. In the event that
the Offered Interest is not transferred in accordance with the terms and conditions set forth herein, the Option shall be reinstated, and the Offer Notice shall again be required to be given to the Other Member as set forth herein.  In the event of a sale of one
or more of the Properties owned by the Company, the purchase price shall be distributed by the Company to the Members as provided in Section 7.4(c) and, if applicable, Section 7.4(d), above. 

Two-year Holding Period Requirement.  Except to the extent provided in Section 10.7, and notwithstanding anything to the contrary contained in this Section 10.5, no Member can seek to sell all
of its interest in the Company (as opposed to an interest in one or more of the Properties) if there are any Properties owned by the Company which have been held for less than two years. 

Option to Buy Interests or
Properties. 

Buy-Sell Notice.  At any time after the Investment Period, any Member (the “Initiating Member”) may give written notice (the “Buy-Sell Notice”) to the other Member (the
“Responding Member”) stating the Initiating Member’s determination of either (i) the value of the Company (the “Company Value”) or the value of one or more Properties of the Company (the “Selling Properties”) that the
Initiating Member desires that the Company sell (the “Property Value”).  In the case of the Property Value, the Property Value shall be the gross fair market value of the Property or Properties.  In the case of the Company Value, the Company
Value shall be the gross fair market value of all of the Properties and other tangible Company assets.  The Buy-Sell Notice shall state that the Initiating Member is willing to (a) in the case of the interests in the Company, buy all of the Responding
Member’s interests in the Company or (b) in the case of the Selling Properties, purchase from the Company the Selling Properties for the Property Value (subject to adjustment as set forth in Section 10.11(i)). If the Buy-Sell Notice would relate to
the purchase of more than one Property, the Selling Member shall submit separate Buy-Sell Notices with respect to each such Property, and the procedures of this Section 10.6 shall apply separately and independently with respect to each Offer Notice (so that, for
example, the Other Member may deliver a separate Response Notice with respect to each Property), and the term Selling Properties shall refer separately to each Property, rather than to such Properties collectively.  

Response Notice.  On or before the 60th day after the receipt by the Responding Member of the Buy-Sell Notice, the Responding Member may give written notice (the “Response Notice”) either
(i) accepting the Initiating Member’s offer to purchase all of the Responding Member’s interests in the Company or purchase the Selling Properties for the Property Value, as the case may be, or (ii) agreeing to purchase all of the Initiating
Member’s interests in the Company or purchase the Selling Properties for the Property Value, as the case may be, in either case subject to adjustment as set forth in Section 10.11(i).  If the Response Notice provides that the Responding Member is
agreeing to purchase all of the Initiating Member’s interests in the Company or the Selling Properties, the Response Notice shall be accompanied by the tender to a third‐party escrow agent selected by the Initiating Member (the “Escrow Agent”)
in an amount equal to the lesser of 5% of (i) the Company Value or the Property Value, or (ii) $1,000,000, as the case may be (the “Buy-Sell Deposit”).  If the Response Notice accepts the Initiating Member’s offer to purchase, then
within five (5) business days after its receipt of the Response Notice, the Initiating Member shall tender to the Escrow Agent an amount equal to the Buy-Sell Deposit with respect to the Selling Property or the selling Member’s Interest, as the case may
be.  If the Responding Member fails to deposit the Buy-Sell Deposit as and when required pursuant to this paragraph (b), the Response Notice shall be deemed defective, with the same consequences as through the Response Notice had not been delivered.  If the
Initiating Member fails to deposit the Buy-Sell Deposit as and when required pursuant to this paragraph (b), and such failure is not cured within 5 business days after written notice from the other Member, the Initiating Member shall be in default of this Agreement,
and shall be deemed to be a “Defaulted Member,” with the consequences set forth in Section 10.11(k) below.

Purchase Price.  Upon the sale of any Member’s interest in the Company pursuant to this Section or the sale of the Selling Properties for the Property Value, the buying Member shall pay to the
selling Member cash in the amount that the selling Member would have received had the Company received the Company Value or the Property Value, as the case may be, and the same was distributed by the Company to the Members as provided in Section 7.4(c) and,
if applicable, Section 7.4 (d) above.  The Company Value or the Property Value, as the case may be, shall be adjusted for any outstanding indebtedness, and any transaction costs, expenses and prorations in accordance with Section 10.11.

Failure to Respond.  If the Responding Member does not deliver the Response Notice to the Initiating Member as set forth herein, then the Responding Member shall be deemed to have accepted the offer of the Initiating Member to purchase all of the
Responding Member’s interests in the Company or purchase the Selling Properties for the Property Value, as the case may be. 

Closing.  The closing of any purchase made under this Section shall be held at the principal place of business of the Company or such other location as the Members may mutually agree, on a date
designated by the Member who is purchasing the interests in the Company, but in no event later than 30 days after the date when all existing options to purchase have been exercised or have expired.  At the closing, payment of the purchase price for the interests
in the Company or the Selling Properties, as the case may be, purchased pursuant to the exercise of any rights or option arising under this Section shall be paid in full by wire transfer of immediately available funds. 

Two-year Holding Period Requirement.  Except to the extent provided in Section 10.7, and notwithstanding anything to the contrary contained in this Section 10.6, no Member can seek to sell all
of its interest in the Company (as opposed to an interest in one or more of the Properties) if there are any Properties owned by the Company which have been held for less than two years. 

Early Exercise of Sale Procedures.

Events Triggering Sale of Interests or Properties.  Upon the occurrence of any of the events described in Section 10.7(b) (a “Buy-Out Event”), the provisions of Section 10.5
and 10.6 may be exercised at any time from and after the date of this Agreement by the Members as follows: 

Upon the occurrence of a Buy-Out Event described in Section 10.7(b)(i), the procedures described in Sections 10.5 or 10.6 may be initiated by any Member; and

Upon the occurrence of a Buy-Out Event described in Section 10.7(b)(ii) through and including (xiv), the procedures described in Sections 10.5 or 10.6 may only be initiated by the Member who has not given
rise to the Buy-Out Event. 

Buy-Out Events.  For purposes of this Agreement, each of the following shall be considered a “Buy-Out Event”: 

The Executive Committee is unable to reach unanimous agreement as to a Major Decision, and such impasse is not resolved by unanimous vote of the Members, acting individually, and not through the Executive
Committee, within a 60-day period. 

A Member becomes insolvent, or generally fails to pay, or admits in writing its inability to pay, its debts as they mature, or the Member applies for, consents to, or acquiesces in, the appointment of a trustee,
receiver or other custodian for the Member, or makes a general assignment for the benefit of creditors; or in the absence of such an application, consent or acquiescence, a trustee, receiver or other custodian is appointed for the Member or for a substantial part of
the property of the Member, and is not discharged within thirty (30) days; or any bankruptcy, reorganization, debt arrangement or other proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation proceeding, is instituted by or against
the  Member, and, if instituted against the Member, is consented to or acquiesced in by the Member or remains for thirty (30) days undismissed; or any warrant or attachment or similar legal process is issued against any Member or any substantial part of its
property which is not released within thirty (30) days of service. 

The failure of a Member (or, if said Member has an Affiliate serving as the Manager of the Company, the failure of said Member’s Affiliate) to perform any material term, condition or obligations under this
Agreement or any other agreement governing the Company or its interest in any Property, and such failure continues beyond any applicable notice and/or cure period, or if none is provided, if such failure is not cured within 30 days after written notice specifying
such failure from the other Member, which cure period shall be extended for such longer period as is necessary if the default is by its nature not capable of being cured within 30 days and the notified Member (or its Affiliate) has promptly commenced and is
diligently proceeding to cure such failure. 

Any attempted sale, transfer or assignment or hypothecation of any Member’s interest in the Company, or any part thereof, that is not permitted in accordance with the terms of this Agreement, including, but
not limited to, a Transfer hereunder which is not permitted under Section 10.2 or Section 10.5 hereof.  

Upon any termination, dissolution or liquidation of any Member. 

The entry of any final judgment or decree of a court or governmental agency having proper jurisdiction, declaring any Member guilty of a felony involving moral turpitude, fraud or wrongdoing in connection with any
business activity. 

Misapplication by any Member or any affiliate or subsidiary thereof of any funds of the Company or any affiliate or subsidiary of the Company, which funds are not properly reapplied within 15 days after written
notice thereof from the Company. 

Fraud or intentional misrepresentation by any Member or any affiliate or subsidiary thereof of a material fact to another Member or any affiliate or subsidiary of such other Member, whether or not with respect to
the business or affairs of the Company, which affects the business, operations, assets or reputation of the Company. 

Willful or intentional misconduct by the Member or any affiliate or subsidiary thereof with respect to the business, operations or assets of the Company. 

An attempt by the Member to partition the property of the Company in violation of this Agreement. 

An attempt by the Member to withdraw from the Company in violation of this Agreement. 

A failure by a Member to contribute capital to the Company which such Member has agreed to contribute pursuant to Section 5.2 of this Agreement. 

If two or more of Mark Zalatoris, Scott Carr, Bill Anderson or Brett Brown cease to be full‐time employees of Inland at any time within the Acquisition Period, and such persons are not replaced by Inland with
executives with similar experience within 120 day of the cessation of their employment subject to the approval of NYSTRS in its sole discretion.

The termination of the REIT Agreement described in Section 13.5 hereof.

Inland Stock as Consideration.  In the
event that Inland is the acquirer of any Property or NYSTRS Interests pursuant to the exercise of the procedures described in Sections 10.5 or 10.6, NYSTRS, at its sole option, may elect to require that some or all of the cash consideration that would otherwise be
due to NYSTRS be paid in the common stock of Inland (the “Stock”); provided, however, that the portion of the consideration to be paid in Stock shall be no more than 8.5% of the aggregate equity capitalization of Inland for the Calendar Year ended
immediately prior to the issuance of the Stock.  The Stock shall be issued at a price based upon the trailing 30 calendar day average price as of the date of issuance, less a 2.5% discount with respect to the typical costs which would otherwise have been
incurred by Inland in connection with the offering of the Stock, and shall be subject to the terms of a lock-up agreement between Inland and NYSTRS pursuant to which NYSTRS shall agree not to sell or otherwise transfer the Stock for 18 months after issuance by
Inland, and such other reasonable terms and conditions as may be required by Inland which shall not unreasonably restrict transfer of the Stock.  NYSTRS agrees to make such other covenants, agreements, representations and warranties and execute and deliver such
other documents as shall be determined by Inland and its counsel as necessary and appropriate in connection with the issuance of its Stock. 

Procedure Upon Winding-Up.

Dissolution Notice.  If on the Termination Date, as may be extended by agreement of the Members hereunder, the disposition of all of the remaining Properties and other non-cash assets of the Company
(collectively, the “Assets”) has not been completed, then Inland shall give written notice (the “Dissolution Notice”) to NYSTRS stating Inland’s determination of the value of such Assets, which shall be itemized for each of the
Assets  (the “Stated Price”). 

NYSTRS Response Notice.  On or before the sixtieth (60th) day after the receipt by NYSTRS of the Dissolution Notice, NYSTRS shall give written notice (the “NYSTRS Response Notice”) either
(i) agreeing to sell its interests in the Company; or (ii) agreeing to sell some or all of the individual Assets (the “Identified Assets”) to Inland at the purchase price described in Section 10.9(c), and requiring that the Company sell all of
the other Assets not being sold to Inland, if any (the “Remaining Assets”) to a buyer that is not an Affiliate of Inland and that is not acting as a nominee for Inland (a “Third Party Buyer”) in open market transactions for not less than 100%
of the Stated Price.

Sale of NYSTRS Interests.  If NYSTRS elects to sell its interests in the Company or the Identified Assets to Inland, then within 30 days of the receipt of the Response Notice, Inland shall pay to
NYSTRS, in cash, such amount as would be due to NYSTRS if the Company (i) had sold the Identified Assets at the Stated Price, (ii) satisfied all of its obligations, and (iii) made liquidating distributions to the Members in accordance with
Article 12, except that no deduction shall be made for transfer taxes, prepayment premiums, yield maintenance charges or other like charges except to the extent actually payable in connection with the transaction.  Simultaneously with the payment to NYSTRS,
the Company shall transfer and convey its interests in the Identified Assets to Inland or NYSTRS shall transfer and convey its interests in the Company to Inland. 

Sale of Assets.  Manager shall cause the Remaining Assets to be sold by such means as the Manager determines would be appropriate to cause the Remaining Assets to be sold for all‐cash to a Third
Party Buyer no less than 180 days from the Termination Date; provided, however, if the third party offers which the Manager receives during the sale period for any of the Assets (the “Offer Prices”), are less than 100% of the Stated Price for said Asset,
then Inland shall be entitled to acquire the said Asset at the Offer Price which have been received by the Manager, provided, that such Offer Price is at least 97% of the Stated Price.  If, however, the Offer Prices for any Remaining Asset is less than 97% of
the Stated Price, or if the Manager gets no offers with respect to any Remaining Asset, or if the Offer Price for any Remaining Asset is between 97% and 100% and Inland does not elect to buy said Remaining Assets, then the Members must agree to either (i) sell
the Remaining Assets with Offer Prices to Inland at the Offer Prices, and sell the other Remaining Assets to Inland for amounts which shall be agreed to by the Members in their sole discretion, or (ii) sell the applicable Remaining Assets to the third parties at
the Offer Prices, and sell the other Remaining Assets to Inland for amounts which may be agreed to by the Members in their sole discretion, or (iii) extend the term of the Company for one year and repeat the process described herein at the end of the one-year
extension, provided, however, that at such time the then Remaining Assets shall be sold at market to third parties for the best offers received by the Company and no Member shall have any further rights to acquire the Remaining Assets. 

Failure to Respond.  If NYSTRS does not deliver the NYSTRS Response Notice to Inland as set forth herein, then NYSTRS shall be deemed to have accepted the offer of Inland to acquire the interests of
NYSTRS as provided in this Section. 

Priority of Purchase Rights. 
Notwithstanding any other provisions of this Article 10, a Member may not initiate the procedures under any of Sections 10.5, 10.6, 10.7 or 10.9 (the “Buy-Sell Options”, or a “Buy-Sell Option”) during any period after which the
provisions of any such Section have been initiated and the purchase of a Member’s Interest or one or more Properties is pending, until either such pending transaction has been consummated or it has been conclusively determined that such pending transaction
shall not be consummated either by reason of the expiration of any specified time periods or otherwise.  Notwithstanding the foregoing, if a Member has initiated the procedures in Section 10.5, 10.6 or 10.7 with respect to certain Properties, the other
Member shall have the right to initiate the procedures in Section 10.5, 10.6 or 10.7 with respect to one or more of the other Properties.  The order of the initiation of the procedures under the Buy-Sell Options shall be determined by
the date of deemed delivery of the applicable notices, as provided in Article 15. 

Procedures for Closing of Purchase and Sale
Transactions.  The provisions of this Section 10.11 shall apply to any purchase by one Member of another Member’s Interest pursuant to any provision of this Article 10, or one Member’s purchase of a Property from
the Company, except to the extent otherwise specified in the applicable Section within this Article 10. 

Liabilities; Indemnity.  The purchasing Member (and the Company, if it continues in existence) shall indemnify, defend and hold the selling Member, its directors, officers, shareholders, partners,
members, managers, employees and agents, or any of them harmless from any and all claims, demands, actions, losses, liabilities, costs, or expenses (including reasonable attorneys’ fees) arising out of or in connection with all obligations or liabilities of the
Company, incurred or accrued after the date of consummation of the purchase and sale of the selling Member’s Interest or the Property. Thereupon, except as limited by the preceding sentence and except to the extent that the Member continues to have an Interest
in the Company, this Agreement shall terminate as to the transferring Member but shall remain in effect as to the other Member. 

Releases.  In connection with a purchase by a Member of another Member’s Interest or the purchase by a Member of any Property from the Company under any provision of this Article 10, if the
non-selling Member or any Affiliate thereof is a guarantor or an indemnitor, in the case of the purchase of a Member’s Interest, with respect to any obligations of the Company for or in connection with borrowed money or is otherwise liable thereon, or in the
case of a Property being purchased, with respect to any obligations of the Company for or in connection with borrowed money or liabilities with respect to the Property, then at or prior to the closing of such transaction and as a condition precedent to such closing,
the purchasing Member shall obtain a release of such guarantee or liability (excluding only any environmental indemnity to any lender to the Company to the extent that such indemnity relates to the period preceding the closing); or if such a release is not obtainable
without the payment of any money by any Member, with the consent of the Member whose guarantee or other obligation is to be released  (which may be granted or withheld in its sole discretion), the purchasing Member shall fully indemnify the Member whose
obligation is to be released and its Affiliates with respect to any such obligations arising from and after the date of the applicable Transfer, in form and substance reasonably satisfactory to both Members.  Any such indemnity by the purchasing Member shall be
secured by its right to all distributions under Article 7 by the Company (both with respect to the purchased Interest and with respect to all other Interests of the purchasing Member and its Affiliates).  If the releases described above are not obtainable
without the payment of money by any Member and the Member to be released does not consent to the indemnification described above, then the Members shall have no further rights or obligations under this Article 10 to purchase or sell the applicable Interest with
respect to the particular event or election giving rise to such rights, except that any deposit given in connection with the purchase shall be promptly returned to the purchasing Member.  Notwithstanding the immediately preceding sentence, the right of a Member
to purchase the other Member’s Interest under this Agreement may subsequently arise as a result of similar or other circumstances, subject in each case to this Section 10.11. 

Form of Payment of Purchase Price.  The purchase price for a Member’s Interest or any Property shall be paid by wire transfer of immediately available funds as directed by the selling Member or
the Company, as the case may be. 

Location and Time Periods.  The closing of any purchase and sale of an Interest between Members or of any Property under this Article 10 shall be held at the principal office of the Company or such
other location as the Members may mutually agree upon, within the time period prescribed for said closing under the applicable section of this Article 10. 

Closing Documents.  Each Member or the Company, as the case may be, shall deposit such documents and instruments, duly executed, and acknowledged where required, as may be necessary to consummate the
purchase and sale of a Member’s Interest or the purchase of a Property hereunder.  Without limiting the foregoing, the selling Member or the Company, as the case may be, shall execute and deliver at the closing an assignment, instrument of conveyance or
other instrument appropriate to convey the entire Interest of the selling Member to the purchasing Member, or the Property to the purchasing Member, and shall deliver to the purchasing Member such evidence as the purchasing Member may reasonably request showing that
the Interest or the Property being sold is owned or will be owned by the purchasing Member free and clear of any and all claims, liens and encumbrances of any kind or nature, except to the extent expressly assumed by the purchasing Member.  Such conveyance
instrument (or a separate document that survives closing) shall contain the representations and warranties set forth on EXHIBIT 10-A hereto.

Lender’s Consents.  In addition, as a condition precedent to the closing, the parties to the transaction shall obtain the written consents of any lenders to the Company (to the extent such
consents are required under the applicable loan documents) to the transactions to be consummated at the closing.  The purchasing and selling Members shall each use their reasonable best efforts and cooperate in good faith to obtain such lenders’
consents.  If any such consent cannot be obtained, then, at the election of the purchasing Member, either (i) the purchasing Member may, in its sole discretion, waive the requirement of such consents; or (ii) the rights and obligations of the Members
to purchase and sell resulting from the applicable election shall terminate and no Member shall have any further right or obligation arising from such election to purchase or sell. 

Payment of Loans.  If the selling Member has any outstanding debts to the Company or the purchasing Member that were not taken into consideration in determining the purchase price, all proceeds of the
purchase price will be paid to the Company or the purchasing Member (pro rata in accordance with the amounts owed by the selling Member to each) for and on behalf of the selling Member until all such debts, including accrued and unpaid interest, will have been paid
and discharged in full. If there are any outstanding loans owed by the Company or the purchasing Member to the selling Member or its Affiliates, such loans, including accrued and unpaid interest, shall be purchased without discount by the purchasing Member as a
condition precedent to the closing, except to the extent that said obligations were taken into consideration in determining the purchase price.  The purchase price for such loans shall be paid in full at the closing in the same manner as the purchase price for
the Interest is paid.  At the closing, the selling Member shall deliver to the purchasing Member each note or other instrument evidencing such loans, all documents securing such loans and an assignment or satisfaction, which assignment or satisfaction shall be
at the election of the purchasing Member. 

Operations in Pre-Closing Period.  From the date of an Offer Notice or a Buy-Sell Notice or an Election Notice until the date on which the closing occurs under said section, or, if earlier, the date on
which the Members agree not to proceed with such closing, the Company will continue to be operated in the ordinary course, as if the closing were not going to occur, the Members and the Manager will continue to have all power and authority granted in this Agreement
(including the power to make distributions), and the Members and the Manager will exercise their power and authority in good faith and without regard to the fact that such closing may occur, and the Company shall not enter into any contracts or agreements, or
otherwise agree, to sell or otherwise dispose of the Property; except that the Company shall be authorized to consummate any transactions which were the subject of binding contractual obligations entered into prior to the commencement of such period. 

Closing Costs and Prorations.  On the date of the closing of the purchase of a Member’s Interest by another Member, or the purchase of a Property by a Member,  closing adjustments and
prorations of items of income and expense of the Company and transaction costs and expenses shall be made between the Members, such that the closing adjustments and prorations shall reflect those that would have been incurred, paid or received had the Property or
Properties been sold either (i) with respect to the Initial Properties, pursuant to the form of Proration Agreement attached to and made a part of the Contribution Agreement, or (ii) with respect to any Additional Property, using the same methodology by which the
closing adjustments and prorations were determined by the Company and the third party seller in connection with the acquisition of the Property by the Company.  In addition, the parties shall take into account, without limitation of customary practice and
procedure, the following additional items: Financings which shall continue to encumber the Property after the closing, any accrued interest on such Financings, and any cash reserves or other assets held for the benefit of the Property by the Company, the Property
Manager, any lender, agent or other person.  The Members shall, in good faith, use their reasonable best efforts to resolve any dispute or questions relating to the amount of transaction costs, expenses and net proration credits.  If the Members are unable
to promptly resolve the same in good faith, either may apply to the American Arbitration Association (AAA), in Chicago, Illinois for the appointment of an independent attorney, certified public accountant or real estate professional familiar with customary commercial
real estate practices and procedures for adjudication pursuant to the Commercial Arbitration Rules utilizing expedited procedures to settle any dispute or resolve any questions concerning transaction costs, expenses and net prorations.  The pendency of any
dispute or questions concerning transaction costs, expenses and net prorations shall not postpone closing as provided in this Article, but closing (based on the purchasing Member’s good faith estimate) shall not prejudice the entitlements of any party should
the dispute or question be resolved in its favor.  All such adjustments and prorations shall be either charged or debited to the selling or purchasing Member, as may be appropriate.  One hundred twenty (120) days after the date of the closing, any such
prorations shall be adjusted to the extent necessary to reflect actual events, subject to the resolution of any pending dispute or open questions regarding same.  The purchase price to be paid for a selling Member’s Interest shall also be
(i) increased by the aggregate amount of all Capital Contributions made by the selling Member pursuant to Article 5, as between the date on which the purchase price for such Member’s Interest was established pursuant hereto and the date of closing,
(ii) reduced by the aggregate amount of all distributions of Net Extraordinary Cash Flow received by the selling Member between the date on which the purchase price was established and the date of closing, and (iii) in the case of a closing under the Buy-Sell
Option, adjusted to reflect interest accrued and unpaid with respect to Company Loans, Member Loans or other Indebtedness, to the extent not otherwise taken into consideration in determining the amount distributed under the Buy-Sell Option.  Furthermore, in the
case of the sale of a Member’s Interest, the purchasing Member shall have the right to offset any sums owed by the selling Member to the purchasing Member or the Company against the purchase price payable for the Interest acquired, and in the case of the sale
of a Property, the purchasing Member shall have the right to offset any sums owed by the Company to the purchasing Member against the purchase price payable for the Property acquired, to the extent that said obligations were not otherwise taken into consideration in
determining the purchase price. Each Member shall bear the costs and expenses of the attorneys, consultants and other professionals engaged by it.  Any transfer and transaction taxes, stamp taxes or recording taxes in connection with said Transfer shall be paid
by the buyer or seller, as the case may be, in keeping with local custom in the jurisdiction in which the taxes are levied. 

Specific Performance.  It is the intent of the Members that the requirements or obligations, if any, of any Member to sell its Interest and of any Member to purchase another Member’s Interest or a
Property from the Company in accordance with the provisions of this Article 10 shall be enforceable by an action for specific performance, with the same force and effect and at least to the same extent as is permitted at law or in equity for the specific
performance of a contract relating to the purchase of real property or an interest therein. 

Failure to Close.  If the Member electing to buy the other Member’s Interests in the Company or the Selling Properties fails to consummate the acquisition as contemplated under the Buy-Sell
Option, except to the extent that such failure is caused by the other Member or the Company (the “Defaulted Member”), the Defaulted Member may not initiate the purchase and sale procedures under the Buy-Sell Options for a period of 12 months after the
date on which the acquisition was otherwise required to close hereunder and any Buy-Sell Deposit made to the Escrow Agent shall be tendered to the other Member as liquidated damages, and not as penalty, for the failure of the Defaulting Member to close.  The
other Member may, at its sole option, thereafter sell to a third party the Company interests or the Properties which were to be sold pursuant to the Buy-Sell Option at the price which was to be paid by the Defaulted Member. Such sale shall be consummated during
the 12-month period described herein without further obligation to obtain the consent of the Defaulted Member, provided, however, if the other Member consummates such sale to a third party, the other Member shall reimburse the Defaulted Member for any Buy-Sell
Deposit.  The Defaulted Member shall cooperate with the selling Member and shall take such actions as shall be necessary to complete such sale.  In the event of a sale of a Member’s interest in the Company, the purchaser of the interest shall, to the
extent of the interest acquired, be entitled only to the predecessor Member’s rights, if any, in the capital, profits and losses and distributions of the Company, and no such person shall have any right to participate in the management of the affairs of the
Company or vote on any Company matter without the consent of the Members.  In the event of a sale of one or more of the Properties owned by the Company, the purchase price shall be distributed by the Company to the Members as provided in Section 7.4(c) and
(d) above.

Assignees.  For purposes of this Article 10, the Interest of each Member shall include all Company Interests owned by such Member and any Interest that is owned by any Affiliate of such Member or
that has been assigned by such Member to an Affiliate of such Member or to any other Person (other than to another Member or an Affiliate thereof).  Any elections made by any Member, and any obligations of any Member to sell its Interest under this
Article 10 shall bind any Affiliate and any other such assignee of such Member.  All references in this Article 10 to a Member shall include all Affiliates of such Member and, except as provided above, all Persons to which any such Member has assigned
any portion of its Interest. 

Termination on Sale.  Upon consummation of the purchase and sale of a Member’s Interest to another Member under this Article 10, (i) the selling Member’s Interest in the Company shall
be fully and completely settled and terminated, and (ii) the selling Member’s rights and obligations under this Agreement shall terminate, except (x) as to items incurred or accrued as of such date and not subject to indemnification hereunder, and
(y) as to any indemnity obligations of such selling Member attributable to acts or events occurring prior to such date or otherwise specified in this Article 10. 

Obligations Arising Prior to Transfer.  No Transfer permitted under this Article 10 (whether or not to another Member) shall relieve the transferor of any of its obligations prior to such Transfer;
except that the non-acquiring Member will be released from any further obligation to make Capital Contributions to the Company, whether or not approved prior to the date of transfer.

Offset.  The purchasing Member will be
entitled to deduct from the amounts otherwise payable to the selling Member any and all amounts owed by the selling Member to the purchasing Member, including damages owed by the selling Member by reason of any default, to the extent agreed by the parties or to the
extent such damages have been reduced to an arbitration award or a final nonappealable judgment, as applicable, and to the extent not otherwise taken into consideration in determining the purchase price.

In-Kind Distribution Election. 

Determination of Net FMV. If NYSTRS makes an election (an “In-kind Distribution Election”), pursuant to Section 6.6(a) hereof, to cause the Randall Square Property, the Cobbler Crossing Property or both to be distributed in kind to Inland
(“In-kind Distribution”), the net fair market value of the Property (the “Net FMV”) shall be determined by taking (x) the Net Operating Income of the Property (as defined herein) for the forward looking twelve-month period beginning on the
last day of the Calendar Year ending immediately prior to the date of repurchase, divided by the “Cap Rate” for the Property as set forth on EXHIBIT 6-A, less (y) the principal amount of any indebtedness encumbering the Property. As used herein, the term
“Net Operating Income” shall mean gross revenues with respect to the Property, less total operating expenses, but not including any capital expenditures, principal and interest with respect to any Financings, income taxes or any depreciation or
amortization.

Closing.  The closing of each In-kind Distribution shall be completed within sixty (60) days after the applicable In-kind Election is made. The mechanics of closing shall be in accordance with Sections 10.11 (a) through (f) and (h) hereof, with the
proration mechanism in Section 10.11 (i) being used to adjust the Net FMV as of the closing date.  Concurrently with the distribution of the Property in question to Inland, the Company shall distribute to NYSTRS, as a return of capital, an amount (the
“NYSTRS Special Distribution”) equal to the sum of (i) the amount of NYSTRS’ Initial Capital Contribution with respect to said Property, plus (ii) the amount of any Additional Capital Contributions made by NYSTRS with respect to said Property
(reduced by the amount of any distributions of Net Extraordinary Cash Flow previously received by NYSTRS with respect to said Property), plus (iii) NYSTRS’ Percentage Interest of the amount, if any, by which the Net FMV exceeds the sum of the amounts in clauses
(i) and (ii).  Upon the making of the In-kind Distribution, Inland’s Unreturned Capital shall be reduced by an amount equal to the sum of (x) the Agreed Net Value of the Property as set forth on EXHIBIT 6-A, plus (y) the amount of any Additional Capital
Contributions made by Inland with respect to the Property (reduced by the amount of any distributions of Net Extraordinary Cash Flow previously received by Inland with respect to said Property), plus (z) Inland’s Percentage Interest of the amount, if any, by
which the Net FMV exceeds the sum of the amounts in clause (x) and (y).  The NYSTRS Special Distribution shall be paid from, and in reduction of the balance of, the NIC Funds, and if for any reason the NIC Funds are insufficient for such purpose, Inland shall
make a capital contribution to the Company in the amount of the difference, which amount shall thereupon be distributed to NYSTRS.

Resignations, Withdrawals, and Priorities

Resignations and Withdrawals.  No Member
shall be entitled to withdraw or resign from the Company, except pursuant to the terms of this Agreement.  The Manager shall not have the right to resign or withdraw as Manager of the Company, except that the Manager shall be entitled to resign and appoint as
Manager an Affiliate of the Manager, provided, however, that such appointee is also an affiliate of a Member; the consent to which replacement shall not be unreasonably withheld by the Members in accordance with Section 8.1(c) hereof.  No Member shall be
entitled to receive any money or property from the Company except (a) by way of distributions upon the winding up of the Company pursuant to Article 12, (b) by way of distributions of Net Ordinary Cash Flow and Net Extraordinary Cash Flow as provided
pursuant to Section 7.4, (c) in respect of any bona fide loans to the Company then due and owing and (d) as expressly provided elsewhere in this Agreement. 

Priorities.  Except as expressly provided
in this Agreement to the contrary, no Members shall have a priority right as to withdrawals, distributions or the return of contributions. 

Interest on Capital Contributions.  No
interest shall be allowed to any Member upon the amount of its Capital Contributions or Capital Account. 

Winding Up

Liquidation Procedures.  Upon termination
of the Company pursuant to Article 5, the affairs of the Company shall be wound up and the Company shall be dissolved.  As part of the winding up of the Company, a proper accounting shall be made of the net profit or net loss of the Company from the date of
the last previous accounting to the date of termination. 

Liquidating Trustee.  Upon the winding up of the Company
business for any reason, the Manager shall act as “Liquidating Trustee” or shall elect a Liquidating Trustee.  If the Manager has been removed, has withdrawn or is unwilling or unable to act as or elect a Liquidating Trustee, Members holding a
majority of the Percentage Interests shall act as or elect a Liquidating Trustee.  The Liquidating Trustee shall have full power to sell, assign and encumber Company assets for all‐cash in transactions with Persons that are not Affiliates of either Member and are not acting as nominees for either Member.  All certificates or notices required by law shall be filed on behalf of the Company by the Liquidating Trustee. 

Distribution on Winding Up.  In the event of the winding
up of the Company for any reason, the proceeds of liquidation shall be applied by the end of the Calendar Year in which the liquidation occurs or, if later, within 90 days after the date of such liquidation, in the following rank and order: 

Creditors.  To the creditors of the Company, including Members who are creditors, in satisfaction of liabilities of the Company, all in the order of priority and to the extent provided by
law. 

Expenses.  To the payment of costs and expenses incurred in the dissolution and termination of the Company. 

Priority Loans.  To the repayment of any unpaid Company Loans made by Members to the Company. 

Members.  Among the Members in accordance with Section 5.1 of EXHIBIT 7-D  provided that NIC Funds shall be distributed solely to Inland.

Liquidating Trust.  In the discretion of the Liquidating
Trustee, a pro rata portion of the distributions that would otherwise be made to the Members pursuant to Section 12.3 may be distributed to a trust established for the benefit of the Members for the purposes of liquidating Company assets, collecting amounts owed
to the Company and paying any contingent or unforeseen liabilities or obligations of the Company arising out of or in connection with the Company.  The assets of any such trust shall be distributed to the Members from time to time in the reasonable discretion of
the Liquidating Trustee, in the same proportions as the amount distributed to such trust by the Company would otherwise have been distributed to the Members pursuant to this Agreement. 

Distributions In Kind.  No distributions in kind shall
be made to any Member, unless expressly approved in advance by both Members or as otherwise provided in this Agreement. 

Partition.  No Member shall have the right to partition
any property of the Company during the term of this Agreement, or while such assets are held in trust pursuant to Section 12.4, nor shall any Member make application to any court of authority having jurisdiction in the matter or commence or prosecute any action
or proceeding for such partition and the sale thereof, and upon any breach of the provisions of this Section by any Member, the other Members, in addition to all of the rights and remedies in law and in equity that they may have, shall be entitled to a decree or
order restraining and enjoining such application, action or proceeding. 

Conflicts and Covenants

Manager Time Commitment.  The Manager shall cause so
much time to be devoted to the business of the Company as, in its judgment, the conduct of the Company’s business shall reasonably require. 

Related Business Partners.  Without the prior written
approval of the other Member (the “Non‐Affiliated Member”) the Company may not employ, contract for services with, acquire or sell goods, property and materials from or to and otherwise deal with any Member or Manager or any Affiliate of any Member
or Manager, on any basis, with the exception of (a) the Management Agreement and the Leasing Agreement between the Property Manager and/or the Leasing Agent and the Company attached hereto as EXHIBIT 8-C and EXHIBIT 8-D, respectively, (b) any other agreement
between the Company and any other Inland Affiliates which Affiliates are set forth on Exhibit 13-A on terms which are customary and competitive and otherwise fair and reasonably, or (c) agreements which are approved by the Executive Committee as a Major Decision
pursuant to Section 8.2(c) or in the Annual Plan.  The Non‐Affiliated Member shall have the sole right to enforce, compromise or settle, and exercise any and all rights of the Company with respect to, any contract between the Company and any Affiliate of
the other Member in accordance with the terms of such agreements.  The Management Agreement and the Leasing Agreement set forth those provisions of such agreements which cannot be amended or modified without the consent of the Non-Affiliated Member. No other
contracts between the Company and any Affiliate of a Member or Manager may be amended or modified in any way without the prior written approval of the Non‐Affiliated Member. 

Competitive Undertakings.  Except as
otherwise provided in Sections 13.4, 13.5 and 13.7 of this Agreement, any Member and the Manager may engage in business ventures of any nature and description independently or with others, including, but not limited to, business of the character described in
Article 3 (or any part thereof), and neither the Company nor any of the Members shall have any rights in or to such independent ventures or the income or profits derived therefrom. 

Exclusivity Covenant of NYSTRS. 

Exclusivity Covenant.  For so long as NYSTRS continues to be a Member of the Company, NYSTRS agrees, for and on behalf of itself, and each NYSTRS Affiliate  (which for purposes of Article 13
is referred to herein collectively as “NYSTRS”), that the Company will be the NYSTRS’ exclusive vehicle for future acquisition and ownership of retail properties within the Investment Area until the earlier to occur of (i) the termination of
the Company pursuant to the terms of this Agreement, including any period during which the term of the Company is extended; (ii) Additional Capital Contributions of $100,000,000 having been funded by NYSTRS, (iii) 2 years after the date of this Agreement or
(iv) the termination of the restriction contained herein pursuant to Section 13.4(b) (collectively, the “Restriction Period”).  During the Restriction Period, without Inland’s consent, NYSTRS will not directly or indirectly, whether
individually, or as a shareholder, partner, member, owner, manager, employee, agent, consultant or creditor of any business (which includes owning, managing, operating, controlling, being employed by, acting as a consultant to, giving financial assistance to,
participating in or being connected in any material way with any business or person so engaged) acquire retail properties within the Investment Area. This exclusivity shall not apply to:  (a) NYSTRS’ existing portfolio; (b) properties that are
not consistent with the Investment Guidelines; (c) properties presented to the Company for approval pursuant to Section 6.2 in which Inland or its representatives on the Executive Committee decline to invest (provided that the property was offered to the
Company on materially equivalent terms); or (D) entities in which NYSTRS is an investor, but does not exercise majority voting control. 

Termination of NYSTRS Exclusivity Covenant.  In the event that within any period of 12 consecutive months during the Acquisition Period as defined in Section 6.2, the Manager does not present
to the Executive Committee for evaluation pursuant to Section 6.2 hereof either (i) 4 properties, or (ii) transactions that represent at least $100 million in equity value, which are consistent with the Investment Guidelines, regardless of whether
NYSTRS thereafter approves or disapproves of investment in such properties, the exclusivity provisions set forth in Section 13.4(a) will terminate and be of no further force or affect.  The Manager may, from time to time in its discretion, provide the
Company with investment properties that do not meet the Investment Guidelines during the Investment Period; provided, however, presentation of such properties for investment by the Company shall not be included in the calculation of the number and equity value of
properties which have been presented to the Executive Committee for purposes of this Section, unless, with the approval of the Members, the Company shall have acquired such investment property notwithstanding the fact that it does not meet the Investment
Guidelines. 

Exclusivity Covenant of Inland. 

Exclusivity Covenant.  For so long as Inland continues to be a Member of the Company, and until the termination of the restriction contained herein pursuant to Section 13.5(b), Inland agrees, on
behalf of itself and its Affiliates, which for purposes of this provision shall not include Inland Retail Real Estate Trust, Inc., Inland Western Retail Real Estate Trust, Inc. or Inland American Real Estate Trust, Inc. (collectively, the “REITs”), that
the Company will be the exclusive vehicle for future acquisition, ownership and/or incentive management activities of retail assets, with the exception of any third-party property management or leasing that does not have incentive based compensation, within the
Investment Area during the Restriction Period.  During the Investment Period, Inland will not, directly or indirectly, whether individually, or as a shareholder, partner, member, owner, manager, employee, agent, consultant or creditor of any business (which
includes owning, managing, operating, controlling, being employed by, acting as a consultant to, giving financial assistance to, participating in or being connected in any material way with any business or person so engaged) enter into any other partnership or joint
venture agreement or any incentive management agreement, with the exception of any third-party property management or leasing that does not have incentive based compensation, with another investor that would compete with the Company for the acquisition of retail
properties consistent with the Investment Guidelines within the Investment Area. This exclusivity shall not apply to:  (a) any existing joint ventures of Inland that will not serve as a vehicle for future acquisitions; (b) properties that are not
consistent with the Investment Guidelines, (c) properties presented to the Company for approval pursuant to Section 6.2 which NYSTRS or its representatives on the Executive Committee decline (provided that the Property was offered to the Company on materially
equivalent terms); or (d) Inland’s existing portfolio.  As used in this Agreement, the term “incentive management agreement” shall mean any arrangement pursuant to which Inland or any affiliate of Inland is paid an amount that is
materially in excess of the usual and customary fees charged in the relevant market with respect to its services in connection with management of any property and such fee is dependent upon the overall success of such property. 

Termination of Inland Exclusivity Covenant.  In the event that within any period of 12 consecutive months during the Restriction Period as defined in Section 6.2, the NYSTRS Executive
Committee Members or NYSTRS disapprove investment by the Company pursuant to Section 6.2 hereof in either (i) 4 Properties, or (ii) transactions that represent at least $100 million in equity value, provided that said investment opportunities were
consistent with the Investment Guidelines, and that the Manager complied in all material respects with the procedures of Section 6.2 in presenting each such proposed investment to the Company, the exclusivity provisions limiting Inland set forth in
Section 13.5(a) shall terminate.  Notwithstanding the foregoing, for purposes of this provision, if NYSTRS shall disapprove an investment by the Company pursuant to Section 6.2 because (i) the time period given to NYSTRS for review of the acquisition
was less than 30 days, and (ii) NYSTRS did not have sufficient time to adequately review the acquisition within such time period, provided, however, that NYSTRS, in good faith, had not yet determined, based upon the materials presented for review, that it would be
reasonably likely to disapprove the investment in any event, then such disapproval will not be included in the determination of the number and equity value of properties which have been disapproved for purposes of this Section 13.5(b), provided that NYSTRS shall
recite the foregoing as the cause for its disapproval in a written notice to the Manager.  The Manager may, in its discretion, provide NYSTRS with investment opportunities for property that does not meet the Investment Guidelines during the Investment Period;
provided, however, the decision by NYSTRS to disapprove of the investment by the Company in any such property shall not be included in the calculation of the number or equity value of properties which NYSTRS has disapproved for purposes of this Section.

Agreement with Inland related REITs.  Inland represents and warrants to NYSTRS that Inland Real Estate Acquisition Corporation is or will be party to agreements with the REITs pursuant to which the REITs have or will have each agreed not to pursue
acquisitions within the Investment Area (collectively, the “REIT Agreements”).  Copies of the REIT Agreements will be provided to NYSTRS on or prior to the contribution of any of the Initial Properties to the Company.  Inland agrees that it will
provide NYSTRS with written notice in the event that any of the REITs terminate a REIT Agreement, in which event, such termination shall be considered a Buy-Out Event in accordance with Section 10.7 hereof.

Confidentiality Covenant. 

Restriction on Disclosure.  Each Member, on behalf of itself and its Executive Committee Members and advisors, agrees that it shall not at any time or in any manner, either directly or indirectly,
publish, communicate, divulge, disclose, disseminate or otherwise reveal to any person or entity other than said Member’s board members, trustees, officers and employees, prospective lenders to the Company or its Properties, prospective investors or purchasers
of the Company or its Properties or any Member’s interest in the Company (which investors or purchasers are themselves subject to confidentiality agreements reasonably approved by the Manager), any attorneys, agents, advisors, consultants or professionals
engaged by said Member in connection with said Member’s investment in the Company or the exercise (or potential exercise) of said Member’s rights under this Agreement, or use for any purpose whatsoever any Confidential Information, except as may be
necessary in the course of performing authorized services for the Company or as may be required by applicable order of court or any governmental authority, any law, statute or regulation, the rules of any stock exchange on which said Member’s shares are traded,
any applicable federal or state Freedom of Information Act, other similar legislation, or any requirements of the Service regarding disclosure or reporting of the tax aspects of this Agreement.  Before disclosing any Confidential Information under compulsion of
law, the Members shall use their best efforts to notify the Company to the extent practicable and permitted by law.

Definitions.  For the purposes of this Agreement, the term “Confidential Information” shall mean all information or data relating to (x) the terms of this Agreement or (y) the
business and affairs of the Company or Inland not generally known outside of the Company or Inland, including, without limitation, any information related to the Properties, as well as any information related to any potential investments in properties, whether or not
investment in such properties is thereafter accepted or rejected by the Members, or any of the Company’s or Inland’s processes, data, designs, compilations of information, apparatus, computer programs, information of or relating to suppliers or customers,
customer requirements, cost or price data, research data, business plans, marketing or sales plans or information, financial data, salary information, policies and procedures, sales know-how or any other information that may be considered to be proprietary to or a
trade secret of the Company or Inland, whether or not such information is considered a trade secret within the meaning of applicable law. Information shall not be considered “Confidential Information” if any of the following apply: 

It is already in or enters into the public domain otherwise than as a consequence of a breach of the terms of this Agreement. 

It is already properly and lawfully in the possession of the receiving party and is not subject to any obligation of secrecy on the receiving party’s part. 

It becomes available to a party on a non-confidential basis from a source other than the Company, provided that such information was properly and lawfully in the possession of such source and not, so far as the
receiving party is aware (after making due and careful inquiry), subject to any obligation of secrecy on the part of such source. 

Remedies.

(a)        Remedies of Company.  The Members and the Executive Committee Members agree that the scope and time periods contained in this Article have been carefully considered and
specifically agreed to as being reasonable and necessary.   If any Member or Executive Committee Member or any Member’s advisors shall at any time breach, violate or fail to comply fully with any of the terms, provisions or conditions of this Article,
the Company shall be entitled to equitable relief by way of injunction (in addition to, but not in substitution for, any and all other relief to which the Company may be entitled either in law or in equity) to restrain such breach or violation or to require
compliance fully with the terms, provisions or conditions of this Article.  In any such proceeding the Members and the Executive Committee Members agree not to raise as a defense in any such proceeding any allegation that any of the provisions of this Article
are either unnecessary or unreasonable or that any of them illegally restrain trade or any personal rights.  The Members further agree to reimburse the Company for any cost of enforcing the provisions of this Article, including reasonable attorney’s
fees.

(b)        Remedies by Inland. If NYSTRS or any NYSTRS Executive Committee Member or any NYSTRS advisor shall at any time breach, violate or fail to comply fully with any of the terms,
provisions or conditions of Section 13.7 of this Article, Inland shall be entitled to equitable relief by way of injunction (in addition to, but not in substitution for, any and all other relief to which Inland may be entitled either in law or in equity) to restrain
such breach or violation or to require compliance fully with the terms, provisions or conditions of Section 13.7 of this Article.  In any such proceeding NYSTRS and the NYSTRS Executive Committee Members agree not to raise as a defense in any such proceeding any
allegation that any of the provisions of Section 13.7 of this Article are either unnecessary or unreasonable or that any of them illegally restrain trade or any personal rights.  NYSTRS further agree to reimburse Inland for any cost of enforcing the provisions
of Section 13.7 of this Article, including reasonable attorney’s fees.

(c)        Remedies by NYSTRS. If Inland or any Inland Executive Committee Member shall at any time breach, violate or fail to comply fully with any of the terms, provisions or
conditions of Section 13.7 of this Article, NYSTRS shall be entitled to equitable relief by way of injunction (in addition to, but not in substitution for, any and all other relief to which NYSTRS may be entitled either in law or in equity) to restrain such breach or
violation or to require compliance fully with the terms, provisions or conditions of Section 13.7 of this Article.  In any such proceeding Inland and the Inland Executive Committee Members agree not to raise as a defense in any such proceeding any allegation
that any of the provisions of Section 13.7 of this Article are either unnecessary or unreasonable or that any of them illegally restrain trade or any personal rights.  Inland further agree to reimburse NYSTRS for any cost of enforcing the provisions of Section
13.7 of this Article, including reasonable attorney’s fees.

(d)        Modification by Court.  If a court or other body of authority and competent jurisdiction determines that the covenants contained in this Article are unenforceable, in
whole or in part, due to the duration or scope of the restrictions or limitations imposed therein or for any other reason, then the court is hereby authorized and directed to make such modifications thereto as are necessary to render said covenants enforceable to the
maximum extent permitted under applicable law, that being the intention of the parties hereto.

Activities of Inland.  NYSTRS expressly acknowledges and
agree that Inland and its affiliates and subsidiaries are engaged in all aspects of real property ownership, management, leasing, acquisition and disposition, including, but not limited to, each of the activities to be undertaken by the Company pursuant to the terms
of this Agreement.  Inland intends, in its capacity as Manager and as a Member of the Company, to use its best efforts to take all actions in the usual and customary course of its business to cause the Properties owned by the Company to be operated, managed,
leased, acquired and disposed of in the best interests of the Company and each of its Members. Notwithstanding the forgoing, and except as expressly agreed to by Inland in Section 13.5 hereof, nothing set forth in this Agreement is intended to require that
Inland or any of its Affiliates operate their businesses in a manner which shall cause Inland or any of its Affiliates to take any actions which are not in the best interests of the owners or the tenants of any of the retail properties which are now or hereafter
owned or managed by Inland, or any of its Affiliates, including the Properties.  NYSTRS, acknowledges and agree that Inland owes no fiduciary or other duty to NYSTRS to cause the Properties to be treated any differently than any other property which may be
owned, managed or leased by Inland or any of its affiliates or subsidiaries.  Notwithstanding the forgoing sentence, and except as expressly agreed to by Inland in Section 13.5 hereof, nothing set forth in this Agreement is intended to require that Inland
or any of its Affiliates operate the Properties in a manner which shall cause Inland or any of its Affiliates to take any actions which are not in the best interests of the Company and each of its Member.  Inland on behalf of itself and its Affiliates and
subsidiaries, agrees that, subject to the limitations of the Annual Plan, and subject to obtaining the approval of the other Member in the case of Major Decisions, for as long as Manager is an Affiliate of Inland, the Manager shall operate the
Company and its Subsidiaries and Properties in a manner consistent with the customary standards for similar equity investments and properties owned by Inland and its Affiliates taking into consideration the specific characteristics of the Properties.  NYSTRS
releases and holds Inland harmless from any claims, losses, costs, damages or expenses which might be asserted by NYSTRS as a result of any action or omission taken by Inland or any Affiliate thereof which is or could be construed, interpreted or asserted to be to be
discriminatory, damaging or in any way adverse to any of the Properties or to the Company. 

Counsel; Amendments

Counsel to the Company.  The Manager shall select
attorneys for the Company from a list of attorneys approved for various specified purposes, which shall be attached to, and shall form a part of, each Annual Plan.  The fees and disbursements of attorneys so selected shall be paid by the Company.  The
Members agree that neither shall assert the fact that a law firm has represented (or is representing) the other Member in connection with the negotiation of this Agreement or in connection with other matters unrelated to the Company to be a basis for disqualifying
said law firm from representing the Company and that the future representation of the Company by any such law firm shall not disqualify said firm from representing the respective Members in any dispute with each other; provided that said firm shall thereupon cease to
represent the Company. 

Amendments.  The terms and provisions of this Agreement
may not be modified or amended at any time and from time to time without the unanimous written consent of the Members.

Representations and Warranties

Representations of Inland.  Inland represents and
warrants to NYSTRS, as an inducement to NYSTRS to execute this Agreement and perform its covenants and agreements contained herein, as follows: 

Inland Capital Contribution.  Inland has the capability to provide $100 million of Capital Contributions to the Company. 

Condition of Initial Properties.  Inland has no knowledge of any material environmental or physical issues pertaining to the Initial Properties other than as disclosed in the reports with respect to the
Initial Properties provided by Inland to NYSTRS and Morgan Stanley or in the Contribution Agreement.

Representations of NYSTRS.  NYSTRS represents and
warrants to Inland, as an inducement to Inland to execute this Agreement and perform its covenants and agreements contained herein as follows: 

NYSTRS Capital Contributions.  NYSTRS has the capability and will, if required under the terms of this Agreement, contribute to the Company the Initial Capital Contributions necessary for the Company to
acquire the Initial Properties and $100 million of Additional Capital Contributions to acquire Additional Properties;

Board Approval.  NYSTRS has received the appropriate approvals from its Board of Trustees and Morgan Stanley’s Investment Committee to enter into this Agreement and make such Capital Contributions
as shall be necessary to complete the acquisitions of the Initial Properties; and

(c)        Due Diligence. NYSTRS has completed to its satisfaction all due diligence with respect to the Company and the Initial Properties.

Securities Representations.  Each of the Members hereby
represents and warrants to the other Members as follows: 

No Registration Statement.  It has been advised no registration statement relating to interests in the Company or otherwise has been or shall be filed with the United States Securities and Exchange
Commission under the Federal Securities Act of 1933, as amended, or the securities laws of any state. 

Representations and Warranties.  Each Member represents and warrants to the Manager and to the Company that: 

This Agreement has been duly authorized, executed and delivered by such Member and constitutes the valid and legally binding agreement of such Member, enforceable in accordance with its terms against such Members,
except as such enforceability may be limited by bankruptcy, insolvency, moratorium and other similar laws relating to creditor’s rights generally, by general equitable principles and by any implied covenant of good faith and fair dealing. 

Such Member’s interest in the Company has been or will be acquired solely by and for the account of such Member for investment purposes only and is not being purchased for subdivision, fractionalization,
resale or distribution; such Member has no contract, undertaking, agreement or arrangement with any person to sell, transfer or pledge to such person or anyone else such Member’s interest (or any portion thereof); and such Member has no present plans or
intentions to enter into any such contract, undertaking or arrangement.  

Such Member’s interest in the Company has not and will not be registered under the Federal Securities Act of 1933, as amended, or the securities laws of any state, and cannot be sold or transferred without
compliance with the registration provisions of said Securities Act of 1933, as amended, and the applicable state securities laws, or compliance with exemptions, if any, available thereunder.  Such Member understands that neither the Company nor the Manager have
any obligation or intention to register the interests under any Federal or state securities act or law, or to file the reports to make public the information required by Rule 144 under the Securities Act of 1933, as amended.

Such Member expressly represents that (a) it has such knowledge and experience in financial and business matters in general, and in sophisticated real estate transactions of the type to be made by the Company
in particular; (b) it is capable of evaluating the merits and risks of an investment in the Company; (c) its financial condition is such that it has no need for liquidity with respect to its investment in the Company to satisfy any existing or contemplated
undertaking or indebtedness; (D) it is able to bear the economic risk of its investment in the Company for an indefinite period of time, including the risk of losing all of such investment, and loss of such investment would not materially adversely affect it; and (E)
it has either secured independent tax advice with respect to the investment in the Company, upon which it is solely relying, or it is sufficiently familiar with the income taxation of partnerships that it has deemed such independent advice unnecessary.

Such Member acknowledges that the Manager has made all documents pertaining to the transaction available and has allowed it an opportunity to ask questions and receive answers thereto and to verify and clarify any
information contained in the documents.  Such Member is aware of the provisions of this Agreement providing for Additional Capital Contributions and dilution of its interest in the Company.

Such Member has relied solely upon the documents submitted to it and independent investigations made by it in making the decision to purchase its interest in the Company.

Such Member expressly acknowledges that (a) no Federal or state agency has reviewed or passed upon the adequacy or accuracy of the information set forth in the documents submitted to such Member or made any
finding or determination as to the fairness for investment, or any recommendation or endorsement of an investment in the Company; (b) there are restrictions on the transferability of such Member’s interest in the Company; (c) there will be no public
market for the interest, and, accordingly, it may not be possible for such Member to liquidate its investment in the Company; and (D) any anticipated Federal or state income tax benefits applicable to such Member’s interest may be lost through changes in, or
adverse interpretations of, existing laws and regulations.

If the Member is a corporation, partnership or limited liability company, that its bona fide principal place of business is at the address set forth on the signature pages hereof and that it was not formed for the
purpose of making an investment in the Company.  If the Member is a trust, the aforesaid representations shall be made by the trustee. 

General Provisions

Notices.  All notices, offers or other communications
required or permitted to be given pursuant to this Agreement shall be in writing and shall be considered as properly given:

Upon personal delivery;

On the fifth business day following mailing from within the United States by first class United States mail, postage prepaid, certified mail; or

On the next business day following delivery via a recognized overnight delivery service such as Federal Express or DHL, and shall be addressed as follows:

	
If to Inland, the Manager or the

Inland Executive Committee Members:

	
Inland Real Estate Corporation

2901 Butterfield Road

Oak Brook, IL  60523

Attn:     Mark Zalatoris

PH:      630-218-8000

Fax:      630-218-7357

	
   

	
   

	
with a copy to:

	
Levenfeld Pearlstein, LLC

2 North LaSalle Street

Suite 1300

Chicago, IL  60602

Attn:     Marc Joseph, Esq.

PH:      (312) 476-7571

Fax:      (312) 346-8434

	
   

	
   

	
If to NYSTRS or the NYSTRS Executive Committee Members:

	
New York State Teachers’ Retirement System

10 Corporate Woods Drive

Albany, NY  12211

Attn:     John Virtanen

PH:      (518) 447-2751

Fax:      (518) 447-2766

	
   

	
   

	
with a copy to:

	
Piper Rudnick LLP

203 North LaSalle Street

Chicago, IL  60601

Attn:     Ross Green, Esq.

PH:      (312) 368-2132

Fax:      (312) 630-5307

	
   

	
   

	
If to Morgan Stanley:

	
Morgan Stanley Real Estate Advisor, Inc.

440 South LaSalle Street

One Financial Place

Floor 37

Chicago, IL  60605

Attn:     Mark Bratt and Brian Lantz

PH:      (312) 706-4420

Fax:      (312) 706-4699

	
   

	
   

	
with a copy to:

	
Piper Rudnick LLP

203 North LaSalle Street

Chicago, IL  60601

Attn:     Ross Green, Esq.

PH:      (312) 368-2132

Fax:      (312) 630-5307

	
   

	
   

Any Member or Manager may change its address for all future notices, offers or other communications by giving notice to the Manager and all Members stating its new address. 

Successors.  This Agreement and all the terms and
provisions hereof shall be binding upon and shall inure to the benefit of all Members and their legal representatives, heirs, successors and permitted assigns, except as expressly herein otherwise provided.

Governing Law.  This Agreement shall be construed in
conformity with the laws of the State of Delaware, as applied to agreements whose only parties are residents of such state and which are to be performed entirely within such state.

Personal Jurisdiction.  Except as otherwise set forth
herein, the Company, the Manager and each Member hereby irrevocably consent to the jurisdiction of the United States District Court for the District of Delaware for purposes of any litigation among or between the Company, the Manager and any
Member concerning the Company or this Agreement or any other litigation to which the Company, the Manager or any Member is a party under the Contribution Agreement or the Property Agreements.  In any such proceeding, the Company and each Member shall be deemed
to have waived its right to a trial by jury.  The parties hereto hereby individually agree that they shall not assert any claim that they are not subject to the jurisdiction of such courts, that the venue is improper, that the forum is inconvenient or any
similar objection, claim or arguments.  Service of process on any of the parties hereto with regard to any such action may be made by mailing the process to such person by regular or certified mail to the address of such person set forth herein or to any
subsequent address to which notices shall be sent.

Counterparts.  This Agreement may be executed in
counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument.

Pronouns and Headings.  As used herein, all pronouns
shall include the masculine, feminine, neuter, singular and plural thereof wherever the context and facts require such construction.  The headings, titles and subtitles herein are inserted for convenience of reference only and are to be ignored in any
construction of the provisions hereof.

Members Not Agents.  Nothing contained
herein shall be construed to constitute any Member the agent of another Member, except as specifically provided herein.

No Third Party Beneficiaries.  Without limiting any of
the provisions of this Agreement, including any obligations of Members to make capital contributions or to return money or other property to the Company, the provisions of this Agreement are intended solely to benefit the Company and the parties hereto and, to the
fullest extent permitted by applicable law, shall not be construed as conferring any benefit upon any creditor of the Company (and no such creditor shall be a third party beneficiary of this Agreement), and the Members shall have no duty or obligation to any creditor
of the Company to make any contributions or return any money or other property to the Company.

Entire Understanding.  This Agreement constitutes the
entire understanding among the Members and supersedes any prior understanding and/or written or oral agreements among them with respect to the Company.

Severability.  If any provision of this Agreement, or
the application of such provision to any person or circumstance, shall be held invalid by a court of competent jurisdiction, the remainder of this Agreement, or the application of such provision to persons or circumstances other then those to which it is held invalid
by such court, shall not be affected thereby.

Further Assurances.  Each of the Members shall hereafter
execute and deliver such further instruments and do such further acts and things as may be required or useful to carry out the intent and purpose of this Agreement and as are not inconsistent with the terms hereof.  Recognizing that each Member may find it
necessary from time to time to establish to third parties, such as accountants, banks, mortgagees or the like, the then-current status of performance hereunder, each Member agrees, upon the written request of another Member (including the Manager, for and on behalf
of the Company), from time to time, to furnish promptly a written statement of the status of any matter pertaining to this Agreement or the Company to the best of the knowledge and belief of the Member making such statements. 

Set-Off Rights.  The Company shall be entitled to set
off against any amounts which may be or become due to a Member from the Company any obligations, fees, expenses or other amounts which may be payable to the Company by such Member. 

Affiliate.  As used herein, the term “Affiliate” shall mean and include
any Person that directly, or through one or more intermediaries, controls or is controlled by or is under common control with, a Member; or any person in which such Member has a direct, or indirect through one or more intermediaries, controlling interest as a
partner, member, manager, principal, shareholder, beneficiary or otherwise as an owner. 

Prevailing Party.  If any party shall commence any action against the other in
order to enforce any provision of this Agreement or to recover damages as the result of the breach of any of the provisions of this Agreement, the prevailing party in such action shall be entitled to recover all reasonable costs (including reasonable attorney’s
fees and paralegal’s fees) incurred in connection therewith against the party who has breached this Agreement.  Notwithstanding a settlement or other resolution of any such action without the issuance of a definitive ruling by a court, including, but not
limited to, any agreement by the parties that such settlement is not an admission of liability by either party, no such settlement or resolution shall constitute a waiver of this Section, and each party acknowledges and agrees that it shall be entitled to petition
the court for a determination that it is the prevailing party and entitled to recovery of its reasonable costs hereunder.

Press Releases.  No press releases shall be issued by any party with respect to the matters which are the subject of this Agreement without the prior approval of the other party. 

Offset Right.  The parties agree that the Company may deduct from the amounts otherwise payable by the Company to any Member (the “Debtor Member”) any and all amounts which may be payable by the Debtor Member to the
other Member pursuant to a judgment received by the other Member with respect to any matter set forth in this Agreement; provided, however, if the judgment is not final and nonappealable and the Debtor Member appeals the judgment, then the Manager shall cause such
amounts to be deposited into an escrow with Chicago Title and Trust Company or such comparable trust company to be held in a joint order escrow between the Members pending the resolution of the judgment on appeal.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date above written.

(Signatures begin on next page)

   

	

MANAGER:

   

	
   

	
IN RETAIL MANAGER, L.L.C.

By: INLAND REAL ESTATE CORPORATION

   

By:_/s/ Mark E. Zalatoris_________________

Its:_Executive Vice President______________

   

	
   

	
MEMBERS:

   

	
 

	
INLAND REAL ESTATE CORPORATION

   

By:_/s/ Mark E. Zalatoris_________________

Its:_Executive Vice President______________

   

	
 

	
   

THE NEW YORK STATE TEACHERS’ RETIREMENT SYSTEM

   

By:_/s/ Terri A. Pandolfi________________

Its:_Assistant Real Estate Officer_________

   

By:_/s/ Rosemarie C. Hewig_____________

Its:_Assistant General Counsel___________

   

	
   

	
EXECUTIVE COMMITTEE MEMBERS:

   

	
   

	
NYSTRS EXECUTIVE COMMITTEE MEMBERS:

   

__/s/ Brian Lantz______________________

Brian Lantz

   

__/s/ Mark Bratt_______________________

Mark Bratt

   

	
   

	
INLAND EXECUTIVE COMMITTEE MEMBERS:

   

__/s/ Scott Carr_______________________

Scott Carr

__/s/ Mark E. Zalatoris_________________

Mark Zalatoris

	
   

	
   

	
   

DEFINED TERMS INDEX

	
Note: further review and cross-checking required

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
   

	
Term

	
   

	
   

	
   

	
   

	
Reference

	
   

	
   

	
Accountants

	
   

	
   

	
   

	
Section 7.1(c)

	
   

	
Acquisition Budget

	
   

	
   

	
   

	
Section 8.3(b)

	
   

	
Acquisition Expenses

	
   

	
   

	
   

	
Section 5.2(c)

	
   

	
Acquisition Period

	
   

	
   

	
   

	
Section 6.2(a)

	
   

	
Act

	
   

	
   

	
   

	
   

	
First “Whereas” Clause

	
   

	
Additional Capital Contributions

	
   

	
   

	
   

	
Section 5.2(a)

	
   

	
Additional Properties

	
   

	
   

	
   

	
Section 6.2(a)

	
   

	
Additional Property

	
   

	
   

	
   

	
Section 6.2(a)

	
   

	
Additional Property Senior Financing

	
   

	
   

	
Section 6.4(b)

	
   

	
Affiliate

	
   

	
   

	
   

	
Section 16.13

	
   

	
Aggrieved Member

	
   

	
   

	
   

	
Section 8.1(c)

	
   

	
Agreed Net Value

	
   

	
   

	
   

	
   

	
Section 6.1(a)

	
   

	
Agreement

	
   

	
   

	
   

	
   

	
Preamble

	
   

	
Annual Plan

	
   

	
   

	
   

	
Section 8.3(a)

	
   

	
Assets

	
   

	
   

	
   

	
   

	
Section 10.9(a)

	
   

	
Buy-Sell Deposit

	
   

	
   

	
   

	
Section 10.6(b)

	
   

	
Buy-Sell Notice

	
   

	
   

	
   

	
Section 10.6(a)

	
   

	
Buy-Sell Option

	
   

	
   

	
   

	
Section 10.10

	
   

	
Buy-Sell Options

	
   

	
   

	
   

	
Section 10.10

	
   

	
Buy-Out Event

	
   

	
   

	
   

	
Section 10.7(b)

	
   

	
Capital Budget

	
   

	
   

	
   

	
Section 8.3(a)

	
   

	
Calendar Year

	
   

	
   

	
   

	
Section 7.1(c)

	
   

	
Capital Call

	
   

	
   

	
   

	
   

	
Section 5.2(g)

	
   

	
Capital Contributions

	
   

	
   

	
   

	
Section 5.2(a)

	
   

	
Cap Rate

	
   

	
   

	
   

	
Section 10.13

	
   

	
Catch-Up Balance

	
   

	
   

	
   

	
Section 5.2(h)(i)

	
   

	
Certificate

	
   

	
   

	
   

	
   

	
Section 1.2

	
   

	
   

	
Change of Control

	
   

	
   

	
   

	
Section 10.2(a)

	
   

	
Code

	
   

	
   

	
Section 6.5

	
   

	
Committee Approval Period

	
   

	
   

	
Section 6.2(c)

	
   

	
Company

	
   

	
   

	
   

	
   

	
First “Whereas” Clause

	
   

	
Company Loan

	
   

	
   

	
   

	
Section 5.3(c)

	
   

	
Company Loan Yield

	
   

	
   

	
   

	
Section 5.3(c)

	
   

	
Company Value

	
   

	
   

	
   

	
Section 10.6(a)

	
   

	
Confidential Information

	
   

	
   

	
   

	
Section 13.6(b)

	
   

	
Contribution Agreement

	
   

	
   

	
   

	
Section 6.1(a)

	
   

	
Conversion Election

	
   

	
   

	
   

	
Section 5.3(e)

	
   

	
Default Contribution

	
   

	
   

	
   

	
Section 5.3(a)(x)

	
   

	
Default Rate

	
   

	
   

	
   

	
Section 5.3(c)

	
   

	
Defaulted Member

	
   

	
   

	
   

	
Section 10.6(b)

	
   

	
Defaulting Member

	
   

	
   

	
   

	
Section 5.3(a)

	
   

	
Deficiency Amount

	
   

	
   

	
   

	
Section 5.3(a)(x)

	
   

	
Deficit Contributions

	
   

	
   

	
   

	
Section 5.2(i)

	
   

	
Dilution Fraction

	
   

	
   

	
   

	
Section 5.3(b)

	
   

	
Disapproved Elements

	
   

	
   

	
   

	
Section 8.3(d)

	
   

	
Dissolution Notice

	
   

	
   

	
   

	
Section 10.9(a)

	
   

	
Due Date

	
   

	
   

	
   

	
   

	
Section 5.3(d)

	
   

	
ERISA

	
   

	
   

	
   

	
   

	
Section 10.2(c)(iii)

	
   

	
Escrow Agent

	
   

	
   

	
   

	
Section 10.5(b), 10.6(b)

	
   

	
Evaluation Materials

	
   

	
   

	
   

	
Section 6.2(b)

	
   

	
Exchange Act

	
   

	
   

	
   

	
Section 10.2(a)

	
   

	
Executive Committee

	
   

	
   

	
   

	
Section 9.3(a)

	
   

	
Existing Indebtedness

	
   

	
   

	
   

	
   

	
Section 6.4(a)

	
   

	
Expenses

	
   

	
   

	
   

	
   

	
Section 7.4(a)

	
   

	
Financings

	
   

	
   

	
   

	
   

	
Section 6.4(c)(i)

	
   

	
Fines

	
   

	
   

	
   

	
   

	
Section 8.7(j)

	
   

	
GAAP

	
   

	
   

	
   

	
   

	
Section 7.1(a)

	
   

	
Guarantor

	
   

	
   

	
   

	
   

	
Section 7.6

	
   

	
Identified Assets

	
   

	
   

	
   

	
Section 10.9(b)

	
   

	
IL EPA

	
   

	
   

	
   

	
Section 6.6(a)

	
   

	
   

	
IN Retail Fund, L.L.C.

	
   

	
   

	
   

	
Article 2

	
   

	
   

	
Incentive Distribution

	
   

	
   

	
   

	
Section 7.4(d)(i)

	
   

	
Incentive Distribution Percentage

	
   

	
Section 7.4(d)(i)

	
   

	
incentive management agreement

	
   

	
   

	
Section 13.5(a)

	
   

	
Indemnified Party

	
   

	
   

	
   

	
Section 8.7(a)

	
   

	
Indemnitor

	
   

	
   

	
   

	
   

	
Section 8.7(b)

	
   

	
Initial Annual Plan

	
   

	
   

	
   

	
Section 8.3(a)

	
   

	
Initial Capital Contributions

	
   

	
   

	
Section 5.1(a)

	
   

	
Initial Properties

	
   

	
   

	
   

	
Section 6.1(a)

	
   

	
Initial Property Senior Financing

	
   

	
   

	
Section 6.4(a)

	
   

	
Inland

	
   

	
   

	
   

	
   

	
Preamble

	
   

	
Inland Executive Committee Member

	
   

	
Section 9.3(c)

	
   

	
Inland Executive Committee Members

	
   

	
Section 9.3(c)

	
   

	
Interest

	
   

	
   

	
   

	
   

	
Section 10.2(a)

	
   

	
In-Kind Distribution

	
   

	
   

	
   

	
   

	
Section 10.13

	
   

	
Initiating Member

	
   

	
   

	
   

	
Section 10.6(a)

	
   

	
Investment Area

	
   

	
   

	
   

	
Article 3

	
   

	
   

	
Investment Guidelines

	
   

	
   

	
   

	
Article 3

	
   

	
   

	
Investment Period

	
   

	
   

	
   

	
Section 10.5(a)

	
   

	
IRR

	
   

	
   

	
   

	
   

	
Section 7.4(d)(i)

	
   

	
Leasing Agreement

	
   

	
   

	
   

	
Section 8.2(d)

	
   

	
Leasing Guidelines

	
   

	
   

	
   

	
Section 8.3(a)

	
   

	
Liquidating Trustee

	
   

	
   

	
   

	
Section 12.2

	
   

	
Major Capital Event

	
   

	
   

	
   

	
Section 7.4(a)

	
   

	
Major Decision

	
   

	
   

	
Section 8.2(c)

	
   

	
Management Agreement

	
   

	
   

	
Section 8.2(d)

	
   

	
Manager

	
   

	
   

	
   

	
   

	
Preamble

	
   

	
Manager

	
   

	
   

	
   

	
   

	
Section 8.1(a)

	
   

	
Member

	
   

	
   

	
   

	
   

	
Preamble

	
   

	
Member Loan

	
   

	
   

	
   

	
Section 5.3(d)

	
   

	
Members

	
   

	
   

	
   

	
   

	
Preamble

	
   

	
Metropolitan Statistical Areas

	
   

	
   

	
   

	
Article 3

	
   

	
Morgan Stanley

	
   

	
   

	
   

	
Preamble

	
   

	
Net Extraordinary Cash Flow

	
   

	
   

	
Section 7.4(a)

	
   

	
Net FMV

	
   

	
   

	
   

	
Section 10.13

	
   

	
Net Operating Income

	
   

	
   

	
   

	
Section 10.13

	
   

	
Net Ordinary Cash Flow

	
   

	
   

	
   

	
Section 7.4(a)

	
   

	
NFR Letters

	
   

	
   

	
   

	
   

	
Section 6.6(a)

	
   

	
   

	
NIC Funds

	
   

	
   

	
   

	
   

	
Section 5.1(d)

	
   

	
   

	
Non-Affiliated Member

	
   

	
   

	
   

	
Section 13.2

	
   

	
Non-Defaulting Member

	
   

	
   

	
   

	
Section 5.3(a)

	
   

	
Nondiscretionary Items

	
   

	
   

	
   

	
Section 8.3(e)

	
   

	
NYSTRS

	
   

	
   

	
   

	
   

	
Preamble

	
   

	
NYSTRS

	
   

	
   

	
   

	
   

	
Section 13.4(a)

	
   

	
NYSTRS Executive Committee Member

	
   

	
Section 9.3(c)

	
   

	
NYSTRS Executive Committee Members

	
   

	
Section 9.3(c)

	
   

	
NYSTRS Response Notice

	
   

	
   

	
   

	
Section 10.9(b)

	
   

	
NYSTRS Special Distribution

	
   

	
   

	
   

	
Section 10.13

	
   

	
Offer Notice

	
   

	
   

	
   

	
Section 10.5(a)

	
   

	
Offer Prices

	
   

	
   

	
   

	
Section 10.9(d)

	
   

	
Offered Interest

	
   

	
   

	
   

	
Section 10.5(a)

	
   

	
Operating Budget

	
   

	
   

	
   

	
Section 8.3(a)

	
   

	
Option

	
   

	
   

	
   

	
   

	
Section 10.5(b)

	
   

	
Other Enterprises

	
   

	
   

	
   

	
Section 8.7(j)

	
   

	
Other Member

	
   

	
   

	
   

	
Section 10.5(a)

	
   

	
Person

	
   

	
   

	
   

	
   

	
Preamble

	
   

	
Preliminary Member Approval Period

	
   

	
   

	
Section 6.2(d)

	
   

	
Prohibited Transferee

	
   

	
   

	
   

	
   

	
Section 10.5(a)

	
   

	
   

	
Properties

	
   

	
   

	
   

	
   

	
Article 3

	
   

	
   

	
Property

	
   

	
   

	
   

	
   

	
Article 3

	
   

	
   

	
Property Agreements

	
   

	
   

	
   

	
   

	
Section 8.2(d)

	
   

	
   

	
Property Manager

	
   

	
   

	
   

	
Section 8.2(d)

	
   

	
Property Value

	
   

	
   

	
   

	
Section 10.6(a)

	
   

	
Proposed Annual Plan

	
   

	
   

	
   

	
Section 8.3(a)

	
   

	
Protective Expenditures

	
   

	
   

	
   

	
Section 5.2(e)

	
   

	
Ratios

	
   

	
   

	
   

	
   

	
Section 8.4(c)

	
   

	
Receipts

	
   

	
   

	
   

	
   

	
Section 7.4(a)

	
   

	
Refinancing

	
   

	
   

	
   

	
   

	
Section 6.4(b)

	
   

	
Refinancing Shortfall

	
   

	
   

	
   

	
Section 5.2(d)

	
   

	
REIT

	
   

	
   

	
   

	
Section 6.5

	
   

	
REITs

	
   

	
   

	
   

	
Section 13.5(a)

	
   

	
REIT Requirements

	
   

	
   

	
   

	
Section 6.5

	
   

	
Remaining Assets

	
   

	
   

	
   

	
Section 10.9(b)

	
   

	
Remedy Provisions

	
   

	
   

	
   

	
Section 5.3(i)

	
   

	
Rent

	
   

	
   

	
   

	
Section 6.7

	
   

	
Replacement Notice

	
   

	
   

	
   

	
Section 8.1(c)

	
   

	
Reserves

	
   

	
   

	
   

	
   

	
Section 7.4(a)

	
   

	
Responding Member

	
   

	
   

	
   

	
Section 10.6(a)

	
   

	
Response Notice

	
   

	
   

	
   

	
Section 10.5(b)

	
   

	
Response Notice

	
   

	
   

	
   

	
Section 10.6(b)

	
   

	
Restriction Period

	
   

	
   

	
   

	
Section 13.4(a)

	
   

	
Section 5.2 Amount

	
   

	
   

	
   

	
Section 5.2(g)

	
   

	
Secured Lender

	
   

	
   

	
   

	
Section 7.4(a)

	
   

	
Selling Member

	
   

	
   

	
   

	
Section 10.5(a)

	
   

	
Selling Properties

	
   

	
   

	
   

	
Section 10.6(a)

	
   

	
Service

	
   

	
   

	
   

	
   

	
Section 8.8

	
   

	
   

	
State

	
   

	
   

	
   

	
   

	
First “Whereas” Clause

	
   

	
Stated Price

	
   

	
   

	
   

	
Section 10.9(a)

	
   

	
Statements

	
   

	
   

	
   

	
   

	
Section 7.1(b)

	
   

	
Stock

	
   

	
   

	
   

	
   

	
Section 10.8

	
   

	
Subsidiary

	
   

	
   

	
   

	
   

	
Article 3

	
   

	
   

	
Termination Date

	
   

	
   

	
   

	
Section 4.5(c)

	
   

	
Third Party Buyer

	
   

	
   

	
   

	
Section 10.9(b)

	
   

	
TMP

	
   

	
   

	
   

	
   

	
Section 8.8

	
   

	
   

	
Transfer

	
   

	
   

	
   

	
   

	
Section 10.2(a)

	
   

	
Transfer Affiliate

	
   

	
   

	
   

	
Section 10.2(a)

	
   

	
Unreturned Capital

	
   

	
   

	
   

	
Section 7.4(a)

	
   

   

EXHIBIT 6-A

   

INITIAL PROPERTIES

   

	
Existing Property Portfolio

	
Property

	
Location

	
Year Built

	
Size (SF)

	
Occupancy

	
Major Tenants

	
Agreed Net Value

	
Randall Square

	
Geneva, IL

	
1998

	
216,201

	
97.10%

	
Bed, Bath & Beyond, Marshall’s

	
$19,470,000

	
Woodfield Commons

	
Schaumburg, IL

	
1973/ 1997

	
207,583

	
99.50%

	
Toys R Us, Comp USA

	
$17,500,000

	
Thatcher Woods

	
River Grove, IL

	
1965

	
188,213

	
97.3%

	
Dominick’s, Walgreens

	
$11,800,000

	
Chatham Ridge

	
Chicago, IL

	
1989

	
175,774

	
100.00%

	
Cub Foods, Marshall’s

	
$19,512,380

	
Marketplace at Six Corners

	
Chicago, IL

	
1997

	
117,000

	
100.00%

	
Jewel/Osco, Marshall’s

	
$  8,700,000

	
Cobblers Crossing

	
Elgin, IL

	
1993

	
102,643

	
94.90%

	
Jewel/Osco

	
$  6,773,500

	
Shoppes at Mill Creek

	
Palos Park, IL

	
1988

	
102,422

	
100.00%

	
Jewel/Osco

	
$  8,340,000

	
Forest Lake

	
Forest Lake, MN

	
2002

	
93,853

	
100.00%

	
Cub Foods

	
$  5,411,000

	
Total Net Agreed Value

	
 

	
 

	
1,203,693

	
98.6%

	
 

	
$97,506,880

   

	
Gross Agreed Value

	
   

	
   

	
   

	
   

	
   

	
$174,000,000

   

Randall Square Cap Rate = 8.3%

Cobbler Crossing Cap Rate = 7.7%

   

EXHIBIT 6-C

EXISTING INDEBTEDNESS AS OF DECEMBER 31, 2003

   

	
Property

	
Lender

	
Current Debt Amount

	
Interest

 Rate 1)

	
Maturity Date

	
Secondary Financing Availability

	
Cobbler Crossing

	
Allstate

	
$5,476,500

	
7%

	
2/18/2005

	
Possible

	
Mill Creek

	
Allstate

	
$5,660,000

	
7.375%

	
2/1/2006

	
Possible

	
Woodfield Commons

	
LaSalle

	
$13,500,000

	
2.9%

	
12/18/2007

	
Yes

	
Marketplace

	
Allstate

	
$11,800,000

	
4.84%

	
1/2/2010

	
No

	
Randall Square

	
Bear Stearns

	
$13,530,000

	
6.5%

	
9/1/2006

	
No

	
Thatcher Woods

	
Principal

	
$10,200,000

	
5.57%

	
10/1/2007

	
No

	
Chatham Ridge

	
LaSalle

	
$9,737,620

	
7.26%

	
1/31/2005

	
Yes

	
Forest Lake

	
Archon

	
$6,589,000

	
4.35%

	
12/1/2007

	
No, conduit loan

	
Total

	
   

	
  $76,493,120

	
   

	
   

	
   

1) Note:  All interest rates are fixed, with the exception of Woodfield Commons

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00073-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00073-of-00352.parquet"}]]