Document:

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                                                                   EXHIBIT 10.16

                              EMPLOYMENT AGREEMENT

         AGREEMENT made as of this 26th day of March, 2001, by and between Erik
C. Golz, residing at 25 Wood Way, Cohasset, MA 02025 (the "Employee") and
Atlantic Data Services, Inc., a Massachusetts corporation with a principal place
of business at One Batterymarch Park, Quincy, MA 02169 (the "Company").

         WHEREAS, the Company believes it to be to its advantage that the
Employee renders services to the Company as hereinafter provided; and

         WHEREAS, the Employee's senior managerial position requires that he or
she be trusted with confidential information and trade secrets of the Company
and that he or she develop a thorough and comprehensive knowledge of various
aspects of the Company's business;

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and in consideration of the mutual
covenants and obligations herein contained, the parties hereto agree as follows:

         1. Position and Responsibilities. The Employee agrees to serve
initially as Senior Vice President, Director of Operations of the Company. The
parties agree that such employment shall be full-time and on an "at-will" basis,
and that either the Employee or the Company may terminate the employment
relationship at any time, with or without cause, upon written notice to the
other party. The Employee shall initially report to, and his or her activities
shall at all times be subject to the direction and control of, the President and
Chief Operating Officer of the Company, and the Employee shall exercise such
powers and comply with and perform, faithfully and to the best of his or her
ability, such directions and duties in relation to the business and affairs of
the Company as may from time to time be vested in or requested of him or her by
the President and Chief Operating Officer and shall use his or her best efforts
to improve and extend the business of the Company.

         2. Compensation. The Company shall pay the Employee the following
compensation, including the following:

                  (A) Salary. In consideration of the services to be rendered by
the Employee to the Company, the Company will pay to the Employee a monthly
salary of $16,666.67 (the Employee's "base rate"). Such salary shall be payable
in conformity with the Company's customary practices for executive compensation
as such practices shall be established or modified from time to time. Salary
payments shall be subject to all applicable federal and state withholding,
payroll and other taxes.

                  (B) Fringe Benefits. The Employee will also be entitled to
participate on the same basis in the Company's standard benefits package
generally available for all other officers of the Company similarly situated. In
addition, the employee shall be eligible to participate in the Company's annual
incentive bonus plan for officers, as approved by and subject to the discretion
of the Company's Board of Directors.

                  (C) Change of Control. If, upon a Change of Control (as
hereinafter defined), the Employee is (i) not offered employment by the
acquiring corporation in a comparable position, at a comparable salary or (ii)
the Company or the acquiring corporation terminates the employment of the
Employee, without Cause, within twelve months of the consummation of a Change of
Control, then the Company or the acquiring corporation, as the case may be,
shall be obligated to pay the Employee a severance payment of twelve months'
salary at the Employee's then current base rate, payable in the same manner as
such salary was payable during the period of the Employee's employment. In the
event that the Employee elects to continue health insurance coverage in
accordance with the provisions of the Consolidated Budget Reconciliation Act of
1985 ("COBRA"), the

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Company shall continue to pay for Employee's health insurance premium on the
same terms and conditions, and subject to the same rules and regulations
applicable thereto, as active Company employees for a period to twelve months
from the date of termination of the Employee's employment with the Company.
Thereafter, the Employee shall be solely liable for the cost of such premium.
For purposes of this Agreement, a "Change in Control" shall have occurred if at
any time during Employee's employment with the Company any of the following
events shall occur:

               (i) The Company is merged or consolidated into or with another
corporation or legal person, and as a result of such merger or consolidation
less than a majority of the combined voting power of the then-outstanding
securities of such surviving or resulting corporation or person immediately
after such transaction is held in the aggregate by the holders of the
then-outstanding securities entitled to vote generally in the election of
directors of the Company ("Voting Stock") immediately prior to such transaction;

               (ii) The Company sells all or substantially all of its assets to
any other corporation or other legal person, and after such sale less than a
majority of the combined voting power of the then-outstanding securities of such
corporation or person immediately after such sale is held in the aggregate by
the holders of Voting Stock of the Company immediately prior to such sale; or

               (iii) There is a tender offer in which any "person" (as such term
is used in Section 13(d)(3) or Section 14(d)(2) of the Exchange Act) acquires
the beneficial ownership of securities representing a majority or more of the
Voting Stock of the Company;

provided, however, that a "Change in Control" shall not be deemed to have
occurred for purposes of this Agreement solely because (i) the Company, (ii) an
entity in which the Company directly or indirectly beneficially owns 50% or more
of the voting securities, or (iii) any Company-sponsored employee stock
ownership plan or any other employee benefit plan of the Company, either files
or becomes obligated to file a report or a proxy statement under or in response
to Schedule 13D, Schedule 14-D-1, Form 8-K or Schedule 14A (or any successor
schedule, form or report) under the Exchange Act, disclosing beneficial
ownership by it of shares of Voting Stock or because the Company reports that a
change in control of the Company has occurred by reason of such beneficial
ownership.

                  (D) Termination for Cause. The Company may terminate the
employment of the Employee at any time for "Cause." For purposes of this
Agreement, "Cause" means: (a) the Employee's conviction of any crime (whether or
not involving the company) other than unintentional motor vehicle felonies; (b)
any intentional act of theft, fraud or embezzlement by the Employee in
connection with his work with the Company; (c) Employee's continuing, repeated
or willful failure or refusal to perform his duties and services under this
Agreement (other than due to his incapacity due to illness or injury); or (d)
the Employee's violation of Section 3 of this Agreement.

         If the Company terminates the Employee's employment for Cause at any
time (regardless of whether or not the Company experiences a Change of Control),
the Employee shall not be entitled to any compensation or benefits following the
date of such termination, other than compensation and benefits required to be
paid or provided by law and payment of the Employee's normal post-termination
benefits in accordance with the Company's retirement, insurance and other
benefit plans and arrangements.

                  (E) Termination Without Cause. The Company may terminate the
employment of the Employee at any time without Cause. If the Company terminates
the Employee's employment without Cause at any time, then the Company shall be
obligated to pay the Employee a severance payment of twelve month's salary at
the Employee's then current base rate, payable in the same manner as such salary
was payable, during the period of the Employee's employment. In the event that
the Employee elects to continue health insurance coverage in accordance with the
provisions of COBRA, the Company shall continue to pay for Employee's health
insurance premium on the same terms and conditions, and subject to the same
rules and regulations applicable

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thereto, as active Company employees for a period of twelve months from the date
of termination of Employee's employment with the Company. Thereafter, the
Employee shall be solely liable for the cost of such premium.

         3.       Nondisclosure and Developments; Non-Solicitation.

                  (A) Nondisclosure. Employee will not at any time, whether
during or after his or her period of employment by the Company ("Employment
Period") reveal to any person or entity any of the trade secrets or confidential
information concerning the organization, business or finances of the Company or
of any third party which the Company is under an obligation to keep confidential
(including but not limited to trade secrets or confidential information
respecting inventions, products, designs, methods, know-how, techniques,
systems, processes, software programs, works of authorship, customer lists,
software, supplier lists, pricing, projects, plans and proposals), except as may
be required in the ordinary course of performing duties as an employee of the
Company, and Employee shall keep secret all matters entrusted to him or her and
shall not use or attempt to use any such information in any manner which may
injure or cause loss or may be calculated to injure or cause loss, whether
directly or indirectly, to the Company. Further, Employee agrees that during and
after the Employment Period he or she shall not make, use or permit to be used
any notes, memoranda, reports, lists, records, drawings, sketches,
specifications, software programs, data, documentation or other materials of any
nature relating to any matter within the scope of the business of the Company or
concerning any of its dealings or affairs otherwise than for the benefit of the
Company, it being agreed that all of the foregoing shall be and remain the sole
and exclusive property of the Company, and that immediately upon the termination
of Employee's employment he or she shall deliver all of the foregoing, and all
copies thereof, to the Company, at its main office.

                  (B) Developments. If at any time or times during the
Employment Period, Employee shall (either alone or with others) make, conceive,
create, discover, invent or reduce to practice any invention, modification,
discovery, design, development, improvement, process, software program, work of
authorship, documentation, formula, data, technique, know-how, trade secret or
intellectual property right whatsoever or any interest therein (whether or not
patentable or registrable under copyright, trademark or similar statutes,
including but not limited to the Semiconductor Chip Protection Act, or subject
to analogous protection) (herein called "Developments") that (i) relates to the
business of the Company or any customer of or supplier to the Company or any of
the products or services being developed, manufactured or sold by the Company or
which may be used in relation therewith, (ii) results from tasks assigned the
Employee by the Company or (iii) results from the use of premises or personal
property (whether tangible or intangible) owned, leased or contracted for by the
Company, then:

               (i) such Developments and the benefits thereof are deemed
works-made-for hire (if applicable) and shall immediately become the sole and
absolute property of the Company and its assigns, as works made for hire or
otherwise;

               (ii) Employee shall promptly disclose to the Company (or any
persons designated by it) each such development;

               (iii) as may be necessary to ensure the Company's ownership of
such Developments, Employee hereby assigns any rights (including, but not
limited to, any patents, copyrights and trademarks) he or she may have or
acquire in the Developments and benefits and/or rights resulting therefrom to
the Company and its assigns without further compensation; and

               (iv) Employee shall communicate, without cost or delay, and
without disclosing to others the same, all available information relating
thereto (with all necessary plans and models) to the Company.

                  (C) Further Assurances. Employee will, during and after the
Employment Period, at the request and cost of the Company, promptly sign,
execute, make and do all such deeds, documents, acts and things as the Company
and its duly authorized agents may reasonably require:

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               (i) to apply for, obtain, register and vest in the name of the
Company alone (unless the Company otherwise directs) letters patent, copyrights,
trademarks or other analogous protection in any country throughout the world and
when so obtained or vested to renew and restore the same; and

               (ii) to defend any judicial, opposition or other proceedings in
respect of such applications and any judicial, opposition or other proceedings
or petitions or applications for revocation of such letters patent, copyright,
trademark or other analogous protection.

In the event the Company is unable, after reasonable effort, to secure
Employee's signature on any application for letters patent, copyright or
trademark registration or other documents regarding any legal protection
relating to a Development, whether because of Employee's physical or mental
incapacity or for any other reason whatsoever, Employee hereby irrevocably
designates and appoints the Company and its duly authorized officers and agents
as his or her agent and attorney-in-fact, to act for an in Employee's behalf and
stead to execute and file any such application or applications or other
documents and to do all other lawfully permitted acts to further the prosecution
and issuance of letters patent, copyright or trademark registrations or any
other legal protection thereon with the same legal force and effect as if
executed by Employee.

                  (D) Non-Solicitation. For a period of two (2) years after any
termination of employment with the Company, whether voluntary or involuntary,
Employee will not, directly or indirectly:

               (i) solicit for employment or employ, or permit any other company
or business organization which is directly or indirectly controlled by Employee
to solicit for employment or employ, any person who is employed by the Company,
or in any manner assist any person or entity in soliciting for employment or
hiring any employee of the Company, or otherwise seek to induce any such
employee to leave his or her employment with the Company; or

               (ii) solicit any of the Company's then current customers, or
permit any other company or business organization which is directly or
indirectly controlled by Employee to solicit any such customers, or in any
manner assist any person or entity in soliciting such customers of the Company,
or otherwise seek to induce any such customer to terminate its business
relationship with the Company.

                  (E) Specific Performance. Employee agrees that any breach of
this Section 3 by Employee will cause irreparable damage to the Company and that
in the event of such breach the Company shall have, in addition to any and all
remedies of law, the right to an injunction, specific performance or other
equitable relief to prevent the violation of Employee's obligations hereunder.

         4. Consent and Waiver by Third Parties. The Employee hereby represents
and warrants that he or she has obtained all waivers and/or consents from third
parties which are necessary to enable him or her to enjoy employment with the
Company on the terms and conditions set forth herein and to execute and perform
this Agreement without being in conflict with any other agreement, obligation or
understanding with any such third party. The Employee represents that he or she
is not bound by any agreement or any other existing or previous business
relationship which conflicts with, or may conflict with, the performance of his
or her obligations hereunder or prevent the full performance of his or her
duties and obligations hereunder.

         5. Governing Law; Jurisdiction and Venue. This Agreement, the
employment relationship contemplated herein and any claim arising from such
relationship, whether or not arising under this Agreement, shall be governed by
and construed in accordance with the internal laws of the Commonwealth of
Massachusetts, without reference to its conflicts of law principles, and this
Agreement may be instituted in either the courts of the Commonwealth of
Massachusetts or the United States District Court for the District of
Massachusetts, and Employee hereby irrevocably submits to the jurisdiction of
any such court in any such action or proceeding, and Employee expressly consents
to personal jurisdiction and venue in any such action.

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         6. Severability. In the case any one or more of the provisions
contained in this Agreement for any reason shall be held to be invalid, illegal
or unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision of this Agreement, but this agreement shall
be construed and reformed to the maximum extent permitted by law.

         7. Waivers and Modifications. This Agreement may be modified, and the
rights, remedies and obligations contained in any provision hereof may be
waived, only in accordance with this Section 7. No waiver by either party of any
breach by the other or any provision hereof shall be deemed to be a waiver of
any later or other breach thereof or as a waiver of any other provision of this
Agreement. This Agreement sets forth all of the terms of the understandings
between the parties with reference to the subject matter set forth herein and
may not be waived, changed, discharged or terminated orally or by any course of
dealing between the parties, but only by an instrument in writing signed by the
party against whom any waiver, change, discharge or termination is sought.

         8. Assignment. The Employee acknowledges that the services to be
rendered by him or her hereunder are unique and personal in nature. Accordingly,
the Employee may not assign any of his or her rights or delegate any of his or
her duties or obligations under this Agreement. The rights and obligations of
the Company under this Agreement shall inure to the benefit of, and shall be
binding upon, the successors and assigns of the Company.

         9. Acknowledgments. The Employee hereby acknowledges and recognizes
that the enforcement of any of the provisions in this Agreement may potentially
interfere with the Employee's ability to pursue a proper livelihood. The
Employee represents that he or she is knowledgeable about the business of the
Company and further represents that he or she is capable of pursuing a career in
other industries to earn a proper livelihood. The Employee recognizes and agrees
that the enforcement of the provisions of Section 3 of this Agreement are
necessary to ensure the preservation, protection and continuity of the business,
trade secrets and goodwill of the Company.

         10. Entire Agreement. This Agreement constitutes the entire
understanding of the parties relating to the subject matter set forth herein and
supersedes and cancels all agreements, written or oral, made prior to the date
hereof between the Employee and the Company relating to employment, salary,
bonus, or other compensation of any description, equity participation, pension,
post-retirement benefits, severance or other remuneration, including the
Employment Agreement.

         11. Notices. All notices hereunder shall be in writing and shall be
delivered in person or mailed by certified or registered mail, return receipt
requested, addressed as follows:

                  If to the Company, to:    Atlantic Data Services, Inc.
                                            One Batterymarch Park
                                            Quincy, MA  02169
                                            Attention:  Chief Executive Officer

         If to the Employee, at the Employee's address set forth on the
signature page hereto.

         12. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument.

         13. Section Headings. The descriptive section headings herein have been
inserted for convenience only and shall not be deemed to define, limit, or
otherwise affect the construction of any provision hereof.

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         IN WITNESS WHEREOF, the parties hereto have executed this Employment
Agreement as of the date first above written as an instrument under seal.

ATLANTIC DATA SERVICES, INC.                              EMPLOYEE:

By:     /s/ William H. Gallagher                          /s/  Erik C. Golz
        ------------------------                          -----------------
        William H. Gallagher                              Erik C. Golz
Title:  President and Chief Operating Officer             25 Wood Way
        -------------------------------------             Cohasset, MA 02025

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                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the "Agreement") is made as of this 15(th) day
of June, 2001, by and between INLAND REAL ESTATE CORPORATION, a Maryland
corporation (the "Company"), and Mark Zalatoris (the "Executive").

                                   RECITALS:

     A. The Company is a real estate investment trust which owns, operates and
acquires neighborhood retail centers and community centers within a 400 mile
radius of its headquarters in Oak Brook, Illinois (the "Business").

     B. Executive has served as the Company's Chief Financial Officer and
Treasurer pursuant to an employment agreement, dated as of July 1, 2000, by and
between the Company and Executive (the "Prior Agreement") and during his
employment thereunder, Executive has demonstrated certain unique and particular
talents and abilities with regard to the Business.

     C. The Company desires to continue to assure itself of the availability of
the talents and abilities of Executive, by entering into a new employment
agreement to become effective July 1, 2001.

     D. Executive desires to continue to be employed by the Company, subject to
the terms, conditions and covenants hereinafter set forth.

     E. As a condition for the Company to enter into this Agreement, Executive
has agreed to restrict his ability to enter into competition with the Company.

     NOW, THEREFORE, in consideration of the foregoing and the agreements,
covenants and conditions set forth herein, Executive and the Company hereby
agree as follows:

                                    ARTICLE I

                                   EMPLOYMENT

     1.1 Employment.

     (a) The Company hereby employs, engages and hires Executive, and Executive
hereby accepts employment, upon the terms and conditions set forth in this
Agreement. Effective as of July 1, 2001 (the "Effective Date"), Executive shall
serve as Senior Vice President, Chief Financial Officer and Treasurer, with
duties commensurate with such position and such other duties and
responsibilities as assigned from time to time by the Company.

     (b) In addition, Executive shall provide advice, consultation and services
to any other entities which control, are controlled by or are under common
control with the Company now or in the future (together "Affiliates"), as may be
requested by the Company.

     1.2 Activities and Duties During Employment. Executive represents and
warrants to the Company that he is free to engage in full-time employment with
the Company, and that he has no prior or other commitments or obligations of any
kind to anyone else which would hinder or interfere with his acceptance of his
obligations under this Agreement, or the exercise of his reasonable commercial
efforts as an employee of the Company. During the Employment Term (as defined
below), Executive agrees:

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     (a) to faithfully serve and further the interests of the Company in every
lawful way, giving honest, diligent, loyal and cooperative service to the
Company and its Affiliates;

     (b) to comply with all reasonable rules and policies which are consistent
with the terms of this Agreement and which, from time to time, may be adopted by
the Company and/or its Affiliates; and

     (c) to devote all of his business time, attention and efforts to the
faithful and diligent performance of his services to the Company and its
Affiliates.

                                   ARTICLE II

                                      TERM

     2.1 Term. The term of employment under this Agreement shall commence on the
Effective Date and shall last for a period of three and one half (3 1/2) years
(the "Initial Term"). The term of Executive's employment hereunder may also be
terminated as provided in Section 2.2. (The Initial Term, as it may be extended
or terminated, is herein referred to as the "Employment Term").

     2.2 Termination. The Employment Term and employment of Executive may be
terminated as follows:

     (a) By the Company immediately for Cause (as hereinafter defined).

     (b) By the Company immediately without Cause.

     (c) Automatically, without the action of either party, upon the death of
Executive.

     (d) By either party upon a determination of Total Disability (as
hereinafter defined) of Executive.

     (e) Voluntarily by Executive.

     (f) By Executive, immediately for Good Reason (as hereinafter defined).

     2.3 Definitions of "Cause," "Total Disability," Good Reason" and "Change of
Control".

     (a) For the purpose of this Agreement, "Cause" shall mean: (i) conduct
amounting to fraud, embezzlement, disloyalty or illegal misconduct in connection
with Executive's duties under this Agreement and as an employee of the Company;
(ii) conduct that the Company reasonably believes has brought the Company into
substantial public disgrace or disrepute; (iii) failure to perform his duties
hereunder as reasonably directed by the Company after providing written notice
of such failure to Executive and Executive has failed to cure such
non-performance within ten days of receiving such notice; (iv) gross negligence
or willful misconduct with respect to the Company, its clients, its employees
and its activities; or (v) any other material breach of this Agreement or any
other agreement to which Executive and the Company are a party or any material
breach of any written policy adopted by the Company concerning conflicts of
interest, standards of business conduct or fair employment practices and any
other similar matter, provided that the Company has provided written notice of
the

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breach to Executive and Executive has failed to cure the breach within ten (10)
days of receiving such notice.

     (b) Executive shall be determined to have a "Total Disability" for purposes
of this Agreement if he is unable by reason of accident or illness to
substantially perform his employment duties or is expected to be in such
condition for periods totaling six (6) months (whether or not consecutive)
during any period of twelve (12) months. The determination of whether a Total
Disability has occurred shall be based on the determination of a physician
mutually acceptable to the Company and Executive. Nothing herein shall limit
Executive's right to receive any payments to which Executive may be entitled
under any disability or employee benefit plan of the Company or under any
disability or insurance policy or plan. During a period of Total Disability
prior to termination hereunder, Executive shall continue to receive his full
compensation (including base salary) and benefits.

     (c) "Good Reason" will mean any of the following events which have not been
cured within ten (10) days following the Company's receipt of Executive's
written notice specifying the events or factors constituting such Good Reason:

     (i) the Company requiring Executive to relocate his principal residence to
a location outside the Greater Chicago Metropolitan Area in order to perform his
duties and responsibilities hereunder;

     (ii) the reduction of Executive's base salary or other compensation and
benefits during the Employment Term to less than the amount of the Base Salary
and other compensation and benefits as set forth in Section 3.1 below; and

     (iii) a material breach by the Company of the provisions of this Agreement.

     (iv) The assignment to Executive of duties which constitute a material
          reduction in Executive's title or authority and which are materially
          inconsistent with Executive's position as contemplated by this
          Agreement, providing that such an assignment of duties occurs after a
          change in control.

     (d) "Change of Control" shall mean:

     (i) that the members of the Company's board of directors as of the date of
this Agreement fail to constitute a majority of the members of the board
provided, however, that any individual becoming a member of the board who is
nominated or appointed to a board seat by the board shall be treated as if he or
she were a member of the board as of the date of this Agreement;

     (ii) the disposition of all, or substantially all, of the assets of the
Company;

     (iii) the merger or consolidation of the Company with an unaffiliated third
party and the Company is not the surviving entity of such transaction or the
Company's stockholders do not own more than 50.1% of stock of resulting entity;

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     (iv) any "person," as such term is defined in Section 3(a)(9) of the
Securities Exchange Act of 1934, not affiliated with The Inland Group, Inc.,
becomes a "beneficial owner," as such term is used in Rule 13d-3 promulgated
under that Act, of 51% or more of the voting shares of the Company; and

     (v) the termination and liquidation of the Company.

                                   ARTICLE III

                            COMPENSATION AND BENEFITS

          3.1 Compensation.

     (a) Base Salary. During the first six (6) months of the Initial Term (July
1, 2001 through December 31, 2001) the Company shall pay Executive a base salary
of Ninety Thousand Dollars ($90,000). During the next three years of the Initial
Term the Company shall pay Executive a base salary as follows: (i) January 1,
2002 through December 31, 2002 the sum of One Hundred Ninety Thousand Dollars
($190,000); (ii) January 1, 2003 through December 31, 2003 the sum of Two
Hundred Ten Thousand Dollars ($210,000); (iii) January 1, 2004 through December
31, 2004 the sum of Two Hundred Twenty Five Thousand Dollars ($225,000).
(Collectively referred to hereafter as "Base Salary").

     (b) Annual Incentive Bonus. Within thirty days after December 31, 2001 the
Company shall pay Executive a bonus for the six months ending December 31, 2001
in the amount of Ten Thousand Dollars ($10,000). Commencing with the year ending
December 31, 2002, the Company shall, in addition to Executive's Base Salary,
pay Executive an Annual Incentive Bonus, which shall be payable within 120 days
of the end of each fiscal year, commencing with the year ending December 31,
2002, in accordance with the formula set forth on Exhibit A, attached hereto and
made a part hereof.

     (c) Annual Long Term Share Award. Effective January 1, 2002 the Company
shall give Executive an Annual Long Term Share Award for the six months ending
December 31, 2001 of 909.09 shares of the Company's stock. Commencing with the
fiscal year ending December 31, 2002, so long as the Employment Term has not
been terminated for any reason, Executive shall, within 120 days of the end of
the immediately fiscal year, receive shares of the common stock of the Company
("Long Term Shares"), subject to the restrictions and forfeitures set forth
below, in accordance with the schedule set forth on Exhibit B, attached hereto
and made a part hereof. Twenty percent (20%) of the Long Term Shares shall vest
on each successive yearly anniversary of the date such Long Term Shares were
granted to Executive.

     (i) Executive shall be the record owner of the Long Term Shares, but all
such shares shall be held by the Company for the benefit of Executive and any
such Long Term Shares which have not yet vested shall be forfeited to the
Company, and without any further action on the part of the Company or the
Executive the Company shall be deemed to have acquired a one hundred percent
interest in the forfeited Long Term Shares, if Executive is no longer employed
by the Company for any reason, other than in connection with a termination as
described in Section 2.2 (b), (c) or (d). Executive may not sell, transfer,
hypothecate, pledge or assign any Long Term Shares which remain subject to
forfeiture.

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     (ii) Upon the occurrence of any forfeiture of Long Term Shares, Executive
shall immediately take all actions necessary to cause the Company to be
immediately vested with full and complete ownership of such forfeited Long Term
Shares.

     (iii) Executive may exercise all rights of a stockholder, including the
right to vote and receive dividends on all Long Term Shares so long as such
shares have not been forfeited.

     (iv) If the Company shall file a registration statement (other than a
registration statement on Form S-4, S-8 or S-3 or any successor form) with the
Securities and Exchange Commission while any vested Long Term Shares are
outstanding, the Company shall give Executive at least 30 days prior written
notice of the filing of such registration statement. If requested by Executive
in writing within 20 days after receipt of any such notice, the Company shall,
at the Company's sole expense (other than the fees and disbursements of counsel
for Executive, and the underwriting discounts, if any, payable in respect of the
vested Long Term Shares sold by Executive), register all or, at Executive's
option, any portion of the vested Long Term Shares requested by Executive,
concurrently with the registration of such other securities, all to the extent
requisite to permit the public offering and sale of such other securities, and
will use its best efforts through its officers, directors, auditors and counsel
to cause such registration statement to become effective as promptly as
practicable. Notwithstanding the forgoing, if the managing underwriter of any
such offering shall advise a Company in writing that, in its opinion, the
distribution of all or a portion of the vested Long Term Shares requested to be
included in the registration concurrently with the securities being registered
by the Company and the securities of other holders of Company securities would
materially adversely affect the distribution of such securities by the Company
for its own account, the Company will include in such registration first, the
securities that the Company proposes to sell, second, the registerable
securities requested to be included in such registration and other securities
requested be included in such registration by holders who have registration
rights, pro rata among the holders of such registerable securities and such
other securities on the basis of the number of shares which are owned by such
holders, and third, other securities requested to be included in such
registration.

     (v) All Long Term Shares which may be issuable hereunder shall be issued in
reliance upon the following representations, warranties and agreements of
Zalatoris, each of which shall be true and correct as of the date of issuance
and each of which shall survive the termination of this Agreement.

     (a) Zalatoris acknowledges that any Long Term Shares which may be issuable
     to him will not have been registered under the Securities Act or under
     applicable state securities laws;

     (b) All Long Term Shares issuable to Zalatoris will be acquired by
     Zalatoris solely for investment purposes and for the account of Zalatoris
     and not as nominee or agent for others or with a view to or for sale in
     connection with any distribution, and Zalatoris has not and will not, at
     the time of issuance, have entered into any arrangement or understanding
     with respect thereto, except in accordance with the terms of this Agreement
     or otherwise in compliance with applicable securities laws;

     (c) Zalatoris acknowledges that any Long Term Shares issued to him must be
     held indefinitely unless subsequently registered under the Securities Act
     or an exemption from such registration is available. Zalatoris agrees that
     he shall not make a disposition of any Long

                                       5
<PAGE>   6

     Term Shares issued to him unless these shares have been registered under
     the Securities Act or are sold in accordance with an exemption from
     registration under Rule 144 or 144A under the Securities Act, or unless an
     exemption from the registration requirements of the Securities Act and
     applicable state securities laws (other than under Rule 144 or 144A) is
     available and the Company shall have received an opinion of counsel
     reasonably satisfactory to the Company to the effect that an exemption from
     the registration requirements of the Securities Act is valid and available;

     (d) Zalatoris acknowledges that holding of any Long Term Shares is subject
     to significant risk, including the risks described, from time to time, in
     the Company's Reports on Form 10-K. Zalatoris represents and warrants to
     Company that he is able to fend for himself and has such knowledge and
     expertise in financial and business matters as to be capable of evaluating
     the merits and risks of his investment and the ability to bear the economic
     risks of his investment;

     (e) Zalatoris is an "Accredited Investor" as defined in Rule 501 to
     Regulation D promulgated under the Securities Act inasmuch as he is an
     executive officer of the Company;

     (f) Zalatoris represents and warrants that he has had the opportunity to
     ask questions of the Company concerning its business and to obtain any
     information which he considers necessary to verify the accuracy of or to
     amplify upon the Company's disclosures and that all questions which have
     been asked have been answered by the Company to Zalatoris' satisfaction.

     3.2 Payment. Base Salary shall be payable in intervals in accordance with
the general payroll payment practice of the Company for executive level
employees; except that any payment relating to the termination of Executive
shall be paid as a lump sum payment within 15 days of such termination.

     3.3 Business Expenses.

     (a) Reimbursement. The Company shall reimburse Executive for all ordinary
and necessary business expenses incurred by him in connection with the
performance of his duties hereunder. The reimbursement of business expenses will
be governed by the policies for the Company they are in effect from time to time
during the term of this Agreement.

     (b) Accounting. Executive shall provide the Company with an accounting of
his expenses, which accounting shall clearly reflect which expenses were
incurred for proper business purposes in accordance with the policies adopted by
the Company, and as such are reimbursable by the Company. Executive shall
provide the Company with such other supporting documentation and other
substantiation of reimbursable expenses as will conform to Internal Revenue
Service or other requirements. All such reimbursements shall be payable by the
Company to Executive within a reasonable time after receipt by the Company of
appropriate documentation as required by Company.

     3.4 Other Benefits. The Company shall provide Executive with such
retirement benefits and group health and other insurance coverage at such levels
and on such terms as the Company generally provides to its executive level
employees in accordance with its Company-sponsored benefit plans as they are in
effect from time to time during the term of the Agreement.

                                       6
<PAGE>   7

       3.5 Compensation Upon Termination. If Executive's employment hereunder
and this Agreement is terminated in accordance with the provisions of Article
II, the Company will be obligated to provide to Executive compensation and
benefits, in lieu of any severance under any severance plan that the Company may
then have in effect, and subject to setoff for any amounts owed by Executive to
the Company or any affiliate of the Company by reason of any contract,
agreement, promissory note, advance, failure to return Company property or loan
document, as follows:

     (a) Upon Termination for Death or Total Disability. If Executive's
employment hereunder and this Agreement is terminated by reason of his death or
Total Disability, under Sections 2.2 (c) or (d), then within 30 days of the date
of termination the Company will provide to Executive (or his estate or
beneficiaries):

     (i) any Base Salary that has been accrued but not paid as of the date of
termination (the "Accrued Base Salary");

     (ii) any compensation for unused vacation days accrued as of the
termination date in an amount equal to his Base Salary multiplied by a fraction,
the numerator of which is the number of accrued unused vacation days and the
denominator of which is 360 (the "Accrued Vacation Payment");

     (iii) reimbursement for expenses incurred by him prior to the date of
termination that are subject to reimbursement pursuant to this Agreement (the
"Accrued Reimbursable Expenses");

     (iv) any accrued and vested benefits required to be provided upon death or
Total Disability by the terms of any Company-sponsored benefit plans or programs
exclusive of any Long Term Shares (the "Accrued Benefits"), together with any
benefits required to be paid or provided in the event of Executive's death or
Total Disability under applicable law; and

     (v) either the prorated portion of the Annual Incentive Bonus that he
received for the fiscal year prior to termination calculated by the amount of
Annual Incentive Bonus received for the fiscal year prior to termination
multiplied by a fraction, the numerator of which is the number of days in that
year that Executive worked prior to the date of death or Total Disability and
the denominator of which is 360, or if the termination occurs in the first year
of the Initial Term, then the prorated portion of the Annual Incentive Bonus as
if the target bonus was received for that year (the "Accrued Bonus") calculated
in the same fashion.

     In addition, if Executive's employment and this Agreement is terminated
under Section 2.2(c)- (d) any Long Term Shares issued to Executive under this
Agreement which have not yet vested shall immediately vest and shall no longer
be subject to forfeiture.

     (b) Upon Termination by Company for Cause or Voluntarily by Executive. If
Executive's employment hereunder and this Agreement is terminated Sections 2.2
(a) or (e), within 15 days of the date of such termination, the Company will:

     (i) pay Executive the Accrued Base Salary;

     (ii) pay Executive the Accrued Vacation Payment;

                                       7
<PAGE>   8

     (iii) pay Executive the Accrued Reimbursable Expenses; and

     (iv) pay Executive the Accrued Benefits, together with any benefits
required to be paid or provided under applicable law.

     In addition, if Executive's employment and this Agreement is terminated
under Section 2.2(a) or (e) Long Term Shares issued to Executive which have not
yet vested shall immediately be forfeited by Executive.

     (c) Upon Termination by the Company Without Cause or by Executive for Good
Reason. If Executive's employment hereunder and this Agreement is terminated
under Sections 2.2 (b) or (f), the Company will:

     (i) pay Executive the Accrued Base Salary;

     (ii) pay Executive the Accrued Vacation Payment;

     (iii) pay Executive the Accrued Reimbursable Expenses;

     (iv) pay Executive the Accrued Benefits, together with any benefits
required to be paid or provided under applicable law;

     (v) pay Executive the Accrued Bonus; and

     (vi) pay Executive an amount equal to 1.25 times the sum of: (A)
Executive's then current Base Salary; plus (B) an amount equal to the Annual
Incentive Bonus which was paid to Executive for the fiscal year immediately
preceding the year of termination (or if the termination occurs in the first
year of the Initial Term, then the Annual Incentive Bonus as if the target bonus
was received for that year); provided, however, that the payment to Executive
pursuant to this Section 3.5 (c)(vi) shall in no event exceed an amount which
would cause Executive to receive an "excess parachute payment" as defined in the
Internal Revenue Code of 1986, as amended (the "Code"); provided, however that
if the termination occurs within two years of a change of control, then in
addition to the amounts described in (i) - (v) above, the Company will pay
Executive an amount equal to 2.99 times the sum of: (A) Executive's then current
Base Salary; plus (B) an amount equal to the Annual Incentive Bonus which was
paid to Executive for the fiscal year immediately preceding the year of
termination (or if the termination occurs in the first eighteen months of the
Initial Term, then the Annual Incentive Bonus as if the target bonus was
received for that year); plus (C) the value of the Annual Long Term Share Award
which was granted to Executive for the fiscal year immediately preceding the
year of termination (or if the termination occurs in the first eighteen months
of the Initial Term, then the Annual Long Term Share Award as if the target
share award was received for that year); provided, however, that the payment to
Executive pursuant to this Section (d)(vi) shall in no event exceed an amount
which would cause Executive to receive an excess parachute payment" as defined
in the Code.

     In addition, if Executive's employment hereunder and this Agreement is
terminated under Section 2.2(b) Long Term Shares issued to Executive which have
not yet vested shall immediately vest and shall no longer be subject to
forfeiture by Executive. If Executive's employment hereunder is terminated under
Section 2.2(f) Long Term Shares issued to Executive which have not vested shall

                                       8
<PAGE>   9

immediately be forfeited by Executive; provided that if this Agreement is
terminated under Section 2.2(f) within two years of a change of control than any
Long Term Shares issued to Executive under this Agreement shall immediately vest
and shall no longer be subject to forfeiture by Executive.

     3.6 Cessation of Rights and Obligations: Survival of Certain Provisions. On
the date of expiration or earlier termination of the Employment Term for any
reason, all of the respective rights, duties, obligations and covenants of the
parties, as set forth herein, shall, except as specifically provided herein to
the contrary, cease and become of no further force or effect as of the date of
said termination, and shall only survive as expressly provided for herein.

     3.7 Employment-Agreement; Release of Claims. On the Effective Date, this
Agreement shall supersede the Prior Agreement which shall be void and of no
further effect. In consideration of the promises contained herein, and as a
natural inducement to the Company to enter into this Agreement, Executive hereby
releases and forever discharges the Company and its officers, directors,
employees, investors, shareholders, affiliates and agents from, and agrees not
to sue any of these parties concerning any and all actions, liabilities, and
other claims for relief and remuneration whatsoever, including all matters in
equity, contract, tort or pursuant to statute, whether presently known or
unknown, suspected or unsuspected that Executive may possess, provided nothing
herein shall be deemed to waive or release any claim: (a) for indemnification
that Executive may have under the Company's Third Articles of Amendment and
Restatement Amended and Restated By-laws; or (b) to enforce this Agreement.

                                   ARTICLE IV

                    CONFIDENTIALITY AND NON-COMPETE AGREEMENT

     4.1 Non-Disclosure of Confidential Information. Executive hereby
acknowledges and agrees that the duties and services to be performed by
Executive under this Agreement are special and unique and that as a result of
his employment by the Company hereunder Executive has developed over time and
will acquire, develop and use information of a special and unique nature and
value that is not generally known to the public or to the Company's industry,
including but not limited to, certain records, secrets, documentation, software
programs, price lists, ledgers and general information, employee records,
mailing lists, shareholder lists, tenant lists and profiles, prospective
customer, acquisition candidate or tenant lists, accounts receivable and payable
ledgers, financial and other records of the Company or its Affiliates,
information regarding its shareholders, tenants or joint venture partners, and
other similar matters (all such information being hereinafter referred to as
"Confidential Information"). Executive further acknowledges and agrees that the
Confidential Information is of great value to the Company and that the
restrictions and agreements contained in this Agreement are reasonably necessary
to protect the Confidential Information and the goodwill of the Company and the
Affiliates. Accordingly, Executive hereby agrees that:

     (a) Executive will not, during the Employment Term or at any time
thereafter, directly or indirectly, except in connection with Executive's
performance of his duties under this Agreement, or as otherwise authorized in
writing by the Company for the benefit of the Company or any Affiliate, divulge
to any person, firm, corporation, limited liability company , partnership or
organization, or any affiliated entity (hereinafter referred to as "Third
Parties"), or use or cause or authorize any Third Parties to divulge or use, the
Confidential Information, except as required by law; and

                                       9
<PAGE>   10

     (b) Upon the termination of the Employment Term for any reason whatsoever,
Executive shall deliver or cause to be delivered to the Company any and all
Confidential Information, including drawings, notebooks, keys, data and other
documents and materials belonging to the Company or its Affiliates which is in
his possession or under his control relating to the Company or its Affiliates,
regardless of the medium upon which it is stored, and will deliver to the
Company upon such termination of the employment term any other property of the
Company or its Affiliates which is in his possession or under his control.

     4.2 Non-Solicitation and Covenant Not to Compete.

     (a) General. Executive acknowledges that the covenants set forth in this
Section 4.2 are reasonable in scope and essential to the preservation of the
business and the goodwill of the Company, and are consideration for the amounts
to be paid to Executive hereunder. Executive also acknowledges that the
enforcement of the covenant set forth in this Section 4.2 will not preclude
Executive from being gainfully employed in such manner and to the extent as to
provide a standard of living for himself, the members of his family and the
others dependent upon him of at least the level provided by this Agreement. In
addition, Executive acknowledges that the Company and its Affiliates have
obtained an advantage over their competitors that is characterized by
relationships with clients, principals, tenants and other contacts.

     (b) Covenant. Executive hereby covenants and agrees that, during the term
of his employment hereunder and during, a period of one year following the end
of his employment hereunder, Executive shall not, directly or indirectly: (i)
alone, together or in association with others, either as a principal, agent,
owner, shareholder, officer, director, partner, employee, lender, investor or in
any other capacity, engage in, have any financial interest in or be in any way
connected or affiliated with, or render advice or services to, any business
engaged in the purchase, sale, financing, management, leasing, brokerage or
providing services for retail shopping centers or any new businesses or lines of
business which the Company may enter prior to the termination of Executive's
employment under this Agreement in the greater metropolitan area of Chicago,
Illinois, other than as an employee of The Inland Group, Inc. ("TIGI") or an
affiliate of TIGI or otherwise on behalf of the Company as an employee thereof
or such other business as may be permitted by the Company in writing, or as set
forth on the affiliations on Exhibit C attached hereto and made a part hereof;
(ii) directly or indirectly divert, take away, solicit or interfere with or
attempt to divert, take away, solicit or interfere with any present or
prospective customer, except on behalf of the Company as an employee thereof;
(iii) directly or indirectly solicit, induce, influence or attempt to solicit,
induce or influence any employee or agent of the Company to leave his employment
or engagement with the Company; or offer employment or engagement to or employ
or engage any such employee of the Company, or assist or attempt to assist any
such employee of the Company in seeking other employment; (iv) in any manner
slander, libel or by other means take action which is or intended, or could
reasonably be expected, to be detrimental to the Company or an Affiliate or
their respective employees or operations; (v) knowingly make or participate in
any "solicitation" of "proxies" or "consents" (as such terms are used in the
proxy rules of the United States Securities and Exchange Commission) or make
proposals for approval of the Company's stockholders; (vi) knowingly form, join
or participate in a "group" (within the meaning of Section 13(d)(3) of the
Exchange Act) with respect to the Company's securities; (vii) otherwise
knowingly act to control or seek to control the management, board of directors
or policies of the Company (except with respect to actions taken

                                       10
<PAGE>   11

solely in Executive's capacity as an officer of the Company in the exercise of
his fiduciary duties; or (viii) make any agreement to do any of the foregoing to
the extent restricted thereby. As used in this Section 4.2, the term "Company"
shall mean the Company or an Affiliate. As used in this Section 4.2(b),
"customer" and "prospective customer" shall include: (i) any tenant of the
Company's properties or any other person or entity with whom the Company is
negotiating for the leasing of real property from the Company or an Affiliate at
the time of the termination of Executive's employment or during the six month
period immediately prior to such termination; (ii) any owner or prospective
owner of real property the purchase or sale of which is being negotiated by the
Company at the time of the termination of Executive's employment or during the
six month period immediately prior to such termination; or (iii) any joint
venture partner of the Company. The restrictions imposed by this subparagraph
4.2(b) shall not apply to the ownership of one percent (1%) or less of all of
the outstanding securities of any entity whose securities are listed on a
national securities exchange, or included for quotation on any interdealer
quotation system.

     4.3 Remedies.

     (a) Injunctive Relief. Executive expressly acknowledges and agrees that the
business of the Company is highly competitive and that a violation of any of the
provisions of Sections 4.1 or 4.2 would cause immediate and irreparable harm,
loss and damage to the Company or an Affiliate not adequately compensable by a
monetary award. Executive further acknowledges and agrees that the time periods
and territorial areas provided for herein are the minimum necessary to
adequately protect the business of the Company, the enjoyment of the
Confidential Information and the goodwill of the Company. Without limiting any
of the other remedies available to the Company at law or in equity, or the
Company's right or ability to collect money damages, Executive agrees that any
actual or threatened violation of any of the provisions of Sections 4.1 or 4.2
may be immediately restrained or enjoined by any court of competent
jurisdiction, and that a temporary restraining order or emergency, preliminary
or final injunction may be issued in any court of competent jurisdiction, upon
twenty-four (24) hour notice and without bond.

     (b) Enforcement. It is the desire of the parties that the provisions of
Sections 4.1 or 4.2 be enforced to the fullest extent permissible under the laws
and public policies in each jurisdiction in which enforcement might be sought.
Accordingly, if any particular portion of Sections 4.1 or 4.2 shall ever be
adjudicated as invalid or unenforceable, or if the application thereof to any
party or circumstance shall be adjudicated to be prohibited by or invalidated by
such laws or public policies, such section or sections shall be: (i) deemed
amended to delete therefrom such portions so adjudicated; or (ii) modified as
determined appropriate by such a court, such deletions or modifications to apply
only with respect to the operation of such section or sections in the particular
jurisdictions so adjudicating on the parties and under the circumstances as to
which so adjudicated.

                                    ARTICLE V

                                  MISCELLANEOUS

     5.1 Notices. All notices or other communications required or permitted
hereunder shall be in writing and shall be deemed given, delivered and received:
(a) when delivered, if delivered personally; (b) four days after mailing, when
sent by registered or certified mail, return receipt requested and postage,
prepaid; (c) one business day after delivery to a private courier service, when

                                       11
<PAGE>   12

delivered to a private courier service providing documented overnight service;
and (d) on the date of delivery if delivered by telecopy, receipt confirmed,
provided that a confirmation copy is sent on the next business day by first
class mail, postage prepaid, in each case addressed as follows:

         To Executive at his home address.

         To the Company at:   Inland Real Estate Corporation
                              2901 Butterfield Road
                              Oak Brook, Illinois 60523
                              Attn: Robert D. Parks

         With a copy to:      Foley & Lardner
                              Three First National Plaza
                              Suite 4100
                              Chicago, Illinois 60602
                              Attn: William J. McKenna, Jr.
                              Telephone:  (312) 558-6769
                              Facsimile:  (312) 558-6585

Any party may change its address for purposes of this paragraph by giving the
other party written notice of the new address in the manner set forth above.

     5.2 Entire Agreement; Amendments, Etc. This Agreement contains the entire
agreement and understanding of the parties hereto, and supersedes all prior
agreements and understandings relating to the subject matter thereof. No
modification, amendment, waiver or alteration of this Agreement or any provision
or term hereof shall in any event be effective unless the same shall be in
writing, executed by both parties hereto, and any waiver so given shall be
effective only in the specific instance and for the specific purpose for which
given.

     5.3 Benefit. This Agreement shall be binding upon, and inure to the benefit
of, and shall be enforceable by, the heirs, successors and legal representatives
of Executive and the successors, assignees and transferees of the Company and
its current or future Affiliates. This Agreement or any right or interest
hereunder may not be assigned by Executive.

     5.4 No Waiver. No failure or delay on the part of any party hereto in
exercising any right, power or remedy hereunder or pursuant hereto shall operate
as a waiver thereof; nor shall any single or partial exercise of any such right,
power or remedy preclude any other or further exercise thereof or the exercise
of any other right, power or remedy hereunder or pursuant thereto.

     5.5 Severability. Wherever possible, each provision of this Agreement shall
be interpreted in such manner as to be effective and valid under applicable law
but, if any provision of this Agreement shall be prohibited by or invalid under
applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this Agreement. If any part of any covenant or
other provision in this Agreement is determined by a court of law to be overly
broad thereby making the covenant unenforceable, the parties hereto agree, and
it is their desire, that the court shall substitute

                                       12
<PAGE>   13

a judicially enforceable limitation in its place, and that as so modified the
covenant shall be binding upon the parties as if originally set forth herein.

     5.6 Compliance and Headings. The headings in this Agreement are intended to
be for convenience and reference only, and shall not define or limit the scope,
extent or intent or otherwise affect the meaning of any portion hereof.

     5.7 Governing Law. The parties agree that this Agreement shall be governed
by, interpreted and construed in accordance with the laws of the State of
Illinois, and the parties agree that any suit, action or proceeding with respect
to this Agreement shall be brought in the state courts in Chicago, Illinois or
in the U.S. District Court for the Northern District of Illinois. The parties
hereto hereby accept the exclusive jurisdiction of those courts for the purpose
of any such suit, action or proceeding. Venue for any such action, in addition
to any other venue permitted by statute, will be in Chicago, Illinois.

     5.8 Counterparts. This Agreement may be executed in one or more
counterparts, each of which will be deemed an original and all of which together
will constitute one and the same instrument.

     5.9 No Presumption Against Drafter. Each of the parties hereto has jointly
participated in the negotiation and drafting of this Agreement. In the event an
ambiguity or a question of intent or interpretation arises, this Agreement shall
be construed as if drafted jointly by each of the parties hereto and no
presumptions or burdens of proof shall arise favoring any party by virtue of the
authorship of any provisions of this Agreement.

     5.10 Enforcement. In the event either of the parties to this Agreement
shall bring an action against the other party with respect to the enforcement or
breach of any provision of this Agreement, the prevailing party in such action
shall recover from the non-prevailing party the costs incurred by the prevailing
party with respect to such action including court costs and reasonable
attorneys' fees.

     5.11 Recitals. The Recitals set forth above are hereby incorporated in and
made a part of this Agreement by this reference.

                                       13
<PAGE>   14

     IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to
be executed and delivered as of the day and year first above written.

                             INLAND REAL ESTATE CORPORATION,

                             a Maryland corporation

                             By:  /s/ Robert D. Parks
                                  ----------------------------

                             Name: Robert D. Parks
                                   ---------------------------

                             Its: President and CEO
                                  ----------------------------

                             EXECUTIVE

                             /s/ Mark E. Zalatoris
                             ---------------------------------
                             Mark Zalatoris

                                       14
<PAGE>   15
                                    EXHIBIT A

                         (FORMULA FOR DETERMINING ANNUAL
                                INCENTIVE BONUS)

I.   The Executive's Annual Incentive Bonus Opportunity ("AIBO") shall be
     determined based on performance of the Company, measured to either a
     Threshold, Target, or High level of performance.

     -    The Company will have achieved a Threshold level of performance if the
          Company's growth in FFO per fully-diluted share when compared to the
          prior year, for the fiscal year for which the AIBO is calculated is
          not less than 70% of the median FFO growth rate for the applicable
          year as published by NAREIT for the Retail Property Sector.

     -    The Company will have achieved a Target level of performance if the
          Company's growth in FFO per fully-diluted share when compared to the
          prior year, for the fiscal year for which the AIBO is calculated is
          not less than 100% of the median FFO growth rate for the applicable
          year as published by NAREIT for the Retail Property Sector.

     -    The Company will have achieved a High level of performance if the
          Company's growth in FFO per fully-diluted share when compared to the
          prior year, for the fiscal year for which the AIBO is calculated is
          not less than 130% of the median FFO growth rate for the applicable
          year as published by NAREIT for the Retail Property Sector.

For purposes of calculating AIBO, "FFO" shall have the same meaning ascribed to
that term in the Company's report on Form 10-k as filed with the SEC for the
year in which the bonus is to be calculated.

If the Company achieves a Threshold level of performance, the Executive's AIBO
will be equal to 20% of Executive's Base Salary for the applicable year. If the
Company achieves a Target level of performance, the Executive's AIBO will be
equal to 30% of Executive's Base Salary for the applicable year. If the Company
achieves a High level of performance, the Executive's AIBO will be equal to 60%
of Executive's Base Salary for the applicable year.

II.  The Executive's Annual Incentive Bonus for the applicable year shall be
     determined by adding two components:

A.   The first component shall be equal to 66% of the Executive's AIBO.

B.   The second component shall be determined by the Company's CEO based on a
     subjective assessment of the Executive's performance, and may be up to but
     not in excess of 34% of the Executive's AIBO.

                                       15
<PAGE>   16

                                    EXHIBIT B

                    (FORMULA FOR DETERMINING ANNUAL AWARD OF
                       LONG TERM GRANT RESTRICTED SHARES)

I.   The Executive's Annual Award of Long Term Grant Restricted Share
     Opportunity ("LTGRSO") shall be determined based on performance of the
     Company, measured to either a Threshold, Target, or High level of
     performance.

     -    The Company will have achieved a Threshold level of performance if the
          Company's growth in FFO, per fully-diluted share when compared to the
          prior year, for the fiscal year for which the grant of Long Term Grant
          Restricted Shares is calculated is not less than 70% of the median FFO
          growth rate for the applicable year as published by NAREIT for the
          Retail Property Sector.

     -    The Company will have achieved a Target level of performance if the
          Company's growth in FFO per fully-diluted share when compared to the
          prior year for the fiscal year for which the grant of Long Term Grant
          Restricted Shares is calculated is not less than 100% of the median
          FFO growth rate for the applicable year as published by NAREIT for the
          Retail Property Sector.

     -    The Company will have achieved a High level of performance if the
          Company's growth in FFO per fully-diluted share when compared to the
          prior year for which the grant of Long Term Grant Restricted Shares is
          calculated is not less than 130% of the median FFO growth rate for the
          applicable year as published by NAREIT for the Retail Property Sector.

For purposes of calculating LTGRSO, "FFO" shall have the same meaning ascribed
to that term in the Company's report on Form 10-k as filed with the SEC for the
year in which the bonus is to be calculated.

If the Company achieves a Threshold level of performance, the Executive's LTGRSO
will be 4545.45 shares. If the Company achieves a Target level of performance,
the Executive's LTGRSO will be 9090.91 shares. If the Company achieves a High
level of performance, the Executive's LTGRSO will be 18,181.82 shares.

II.  The Executive's Annual Award of Long Term Grant Restricted Shares for the
     applicable year shall be determined by adding two components:

     A.   The first component shall be equal to 66% of the Executive's LTGRSO.

     B.   The second component shall be determined by the Company's CEO based on
          a subjective assessment of the Executive's performance, and may be up
          to but not in excess of 34% of the Executive's LTGRSO.

                                       16
<PAGE>   17

                                    EXHIBIT C

                         TO EMPLOYMENT AGREEMENT BETWEEN
                INLAND REAL ESTATE CORPORATION AND MARK ZALATORIS

                                  AFFILIATIONS

IGL Real Estate, Inc.                       Director

                         INVESTMENTS/FINANCIAL INTERESTS

               2000 Shares                  Prime Retail Trust, Inc.

               30 Shares                    Mid America Management Corp.

               Shares                       Midwest Real Estate Equities, Inc.

               2000 Shares                  Boykin Lodging

                                       17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00026-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00026-of-00352.parquet"}]]