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                                                                    Exhibit 10.7


                      INERGY EMPLOYEE UNIT PURCHASE PLAN

                                   SECTION 1
                                 INTRODUCTION


1.1  Establishment.  INERGY HOLDINGS, LLC, a Delaware limited liability company
     ("Holdings"), hereby establishes the Inergy Employee Unit Purchase Plan
     (the "Plan") for certain employees of Holdings, Inergy GP, LLC, a Delaware
     limited liability company (the "General Partner"), Inergy, L.P., a Delaware
     limited partnership (the "Partnership"), and their Affiliates.

1.2  Purpose.  The purpose of the Plan is to promote the interests of Holdings,
     the General Partner and the Partnership by encouraging all full-time
     employees of Holdings, the General Partner, the Partnership and their
     Affiliates to acquire or increase their ownership of Units and to provide a
     means whereby such individuals may develop a sense of proprietorship and
     personal involvement in the development and financial success of the
     Partnership, and to encourage them to devote their best efforts to the
     business of the Partnership, thereby advancing the interests of the
     Partnership, the General Partner and Holdings.

                                   SECTION 2
                                  DEFINITIONS

2.1  The following terms shall have the meanings set forth below.

     (a)  "Affiliates" means with respect to any Person, any other Person that
          directly or indirectly through one or more intermediaries controls, is
          controlled by or is under common control with, the Person in question.
          As used herein, the term "control" means the possession, direct or
          indirect, of the power to direct or cause the direction of the
          management and policies of a Person, whether through ownership of
          voting securities, by contract or otherwise.

     (b)  "Board" means the Board of Directors of the General Partner.

     (c)  "Committee" means the committee appointed to administer the Plan
          pursuant to Section 9.

     (d)  "Employee" means any individual who is a full-time employee of
          Holdings, the General Partner, the Partnership or one of their
          Affiliates, but excluding any employee covered by a collective
          bargaining agreement unless such bargaining agreement provides for his
          participation in the Plan.

     (e)  "Employer" means Holdings, the General Partner, the Partnership and/or
          one of their Affiliates, as the case may be.

     (f)  "Holdings" means Inergy Holdings, LLC, a Delaware limited liability
          company.

     (g)  "Partnership" means Inergy Partners, L.P., a Delaware limited
          partnership.
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     (h)  "Partnership Agreement" means the Amended and Restated Agreement of
          Limited Partnership of Inergy, L.P., as amended from time to time.

     (i)  "Person" means an individual or a corporation, limited liability
          company, partnership, joint venture, trust, unincorporated
          organization, association, governmental agency or political
          subdivision thereof or other entity.

     (j)  "Purchase Period" means the 10-day period following the end of each
          calendar quarter; provided, however, the Purchase Period shall include
          such other periods, if any, as may be designated by the Committee from
          time to time.

     (k)  "Rule 16b-3" means Rule 16b-3 promulgated under the Securities
          Exchange Act of 1934 (the "1934 Act").

     (l)  "Unit" means a Common Unit of the Partnership.

2.2  Gender and Number. Except when otherwise indicated by the context, the
     masculine gender shall also include the feminine gender, and the definition
     of any term herein in the singular shall also include the plural.

                                   SECTION 3
                           UNITS AVAILABLE UNDER PLAN

3.1  The maximum number of Units that may be purchased for Employees under this
     Plan is 50,000.  Units to be delivered under the Plan may be Units acquired
     by Holdings in the open market, Units already owned by Holdings, Units
     acquired by Holdings directly from the Partnership or any other person, or
     any combination of the foregoing.  Upon an Employee's termination of
     employment with his or her Employer, all amounts then credited to his or
     her notional account under the Plan, if any, shall be paid to the
     terminated Employee as soon as practicable.  In the event that any change
     is made to the Units deliverable under the Plan, the Committee may make
     appropriate adjustments in the maximum number of Units deliverable under
     the Plan.  The adjustments determined by the Committee shall be final,
     binding and conclusive.

                                   SECTION 4
                               PURCHASE OF UNITS

4.1  Employee Withholding Elections.  The Committee shall provide an Employee
     the ability to purchase Units under this Plan upon the following terms and
     conditions:

     (a)  Effective as of the beginning of any month, an Employee may elect to
          have his Employer withhold from the Employee's cash base salary or
          cash base wages each future pay period, for the purchase of Units
          hereunder, a designated whole percentage of the Employee's cash base
          pay or wages (in whole percentages only, not to exceed 10%).  An
          Employee may change (within the above limitations) or stop his
          withholding election at any time; however, only one such change may be
          made during any calendar year.  All Employee elections and any changes
          to an election shall be in such written form as the Committee or its
          delegate may establish from time to time.

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     (b)  Each withholding election made by an Employee hereunder shall be an
          ongoing election until the earlier of the date changed by the Employee
          or the date the Employee ceases to be eligible to participate in the
          Plan.

     (c)  Holdings shall maintain for each electing Employee a separate notional
          or ledger account reflecting the aggregate amount of his cash base pay
          or wages that has been withheld and not yet applied to the purchase of
          Units for such Employee.  Amounts of base pay or wages withheld by the
          Employer and remitted to Holdings shall not be segregated from the
          general assets of Holdings and shall not bear interest.

     (d)  During each Purchase Period, Holdings shall use, to the fullest extent
          practicable, all amounts then credited to the notional accounts of the
          electing Employees to purchase Units for such Employees.  Purchases of
          Units may be made at any time or times during the Purchase Period on
          any securities exchange on which the Units are traded, in the over-
          the-counter market and/or in negotiated transactions as the Committee
          shall determine.  Any amounts credited to a notional account and not
          so applied during a Purchase Period shall be carried over to the next
          Purchase Period.

     (e)  Upon an Employee's termination of Employment with his or her Employer,
          all amounts then credited to his or her notional account under the
          Plan, if any, shall be paid to the terminated Employee as soon as
          reasonably practicable.

4.2  Purchase of Units and Plan Expenses.  During each Purchase Period Holdings,
     using funds withheld from Employees' wages pursuant to this Section 4,
     shall purchase for the electing Employees the maximum number of whole Units
     that can be acquired based on the sum of (i) amounts then credited to the
     electing Employees' notional accounts, and (ii) an amount, as determined
     from time to time by the Committee, not to exceed 10% of the aggregate
     price of the Units to be purchased (the "Reimbursement Amount").  Holdings
     shall pay, other than from the notional accounts, all brokerage fees and
     other costs and expenses of the Plan.

4.3  Reimbursements of Employee Purchases.  At any time during a year an
     Employee may furnish evidence satisfactory to Holdings that during that
     year (i) the Employee has purchased, while an Employee, Units on the open
     market, and (ii) the Employee continues to own such Units.  To the extent
     the purchase price paid by the Employee for such Units, when aggregated
     with any amounts withheld for such Employee pursuant to Section 4.2, does
     not exceed 10% of his or her cash base pay or wages for the year (through
     the date of reimbursement), Holdings shall reimburse (pay to) the Employee
     an amount equal to the sum of (x) the product of the Reimbursement Amount
     percentage and the Employee's purchase price of such Units and (y) any
     reasonable brokerage fees and expenses incurred by the Employee on such
     purchase.

4.4  No Fractional Units.  Holdings will not be required to deliver any
     fractional Units to an Employee pursuant to this Plan.

4.5  Withholding of Taxes.  To the extent that the Employer is required to
     withhold any taxes in connection with either the purchase of Units for an
     Employee or the reimbursement for

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     a purchase of Units, it will be a condition to the receipt of such Units or
     reimbursement that the Employee make arrangements satisfactory to the
     Employer for the payment of such taxes, which may include a reduction in
     the Employee's notional account or reimbursement as the case may be.

                                   SECTION 5
                                 SALE OF UNITS

5.1  If an Employee sells or otherwise disposes of any Units that the Employee
     has either acquired pursuant to or been reimbursed for under this Plan, the
     Employee shall not be eligible to again participate in the Plan at any time
     and any amounts then credited to his notional account shall be paid to the
     Employee as soon as practicable.

                                   SECTION 6
                              GENERAL RESTRICTIONS

6.1  Investment Representation.  Unless the Units subject to purchase under the
     Plan have been registered under the Securities Act of 1933, as amended (the
     "1933 Act"), and, in the case of any Employee who may be deemed an
     affiliate (for securities law purposes) of Holdings, the General Partner or
     the Partnership, such Units have been registered under the 1933 Act for
     resale by such Participant, or the Partnership has determined that an
     exemption from registration is available, Holdings may require prior to and
     as a condition of the delivery of any Units that the person purchasing such
     Units hereunder furnish Holdings with a written representation in a form
     prescribed by the Committee to the effect that such person is acquiring
     such Units solely with a view to investment for his or her own account and
     not with a view to the resale or distribution of all or any part thereof,
     and that such person will not dispose of any of such Units otherwise than
     in accordance with the provisions of Rule 144 under the 1933 Act unless and
     until either the Units are registered under the 1933 Act or Holdings is
     satisfied that an exemption from such registration is available.

6.2  Compliance with Securities Laws.  Notwithstanding anything herein or in any
     other agreement to the contrary, the Partnership shall not be obligated to
     sell or issue any Units to an Employee under the Plan unless and until the
     Partnership is satisfied that such sale or issuance complies with (i) all
     applicable requirements of the securities exchange on which the Units are
     traded (or the governing body of the principal market in which such Units
     are traded, if such Units are not then listed on an exchange), (ii) all
     applicable provisions of the 1933 Act, and (iii) all other laws or
     regulations by which the Partnership is bound or to which the Partnership
     is subject.  Holdings acknowledges that it is an affiliate of the
     Partnership under securities laws and it shall comply with such laws and
     obligations of the Partnership relating thereto as if they were directly
     applicable to Holdings.

                                   SECTION 7
                       RIGHTS OF EMPLOYEES; PARTICIPANTS

7.1  Employment. This Plan will not confer upon any Employee any right with
     respect to continuance of employment or other service with Holdings, the
     General Partner, the Partnership or one of their Affiliates, nor will it
     interfere in any way with any right

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     Holdings, the General Partner, the Partnership or one of their Affiliates
     would otherwise have to terminate such Employee's employment or other
     service at any time.

7.2  Nontransferability. No right to purchase Units or be reimbursed for the
     purchase of Units granted under this Plan shall be assignable or
     transferable during the lifetime of any Employee either voluntarily or
     involuntarily, or be subjected to any lien, directly or indirectly, by
     operation of law, or otherwise, including execution, levy, garnishment,
     attachment, pledge or bankruptcy.

                                   SECTION 8
                              PLAN ADMINISTRATION

8.1  Authority of Committee.  The Plan shall be administered by the Committee.
     Subject to the terms of the Plan and applicable law, and in addition to
     other express powers and authorizations conferred on the Committee by the
     Plan, the Committee shall have full power and authority to: (i) determine
     which persons are Employees who may participate; (ii) determine the number
     of Units to be purchased by an Employee; (iii) determine the time and
     manner for purchasing Units; (iv) interpret, construe and administer the
     Plan; (v) establish, amend, suspend, or waive such rules and regulations
     and appoint such agents as it shall deem appropriate for the proper
     administration of the Plan; (vi) make a determination as to the right of
     any person to receive Units under the Plan; (vii) correct any defect,
     supply any omission, or reconcile an inconsistency in the Plan; and (viii)
     make any other determinations and take any other actions that the Committee
     deems necessary or desirable for the administration of the Plan.

8.2  Determination Under the Plan.  Unless otherwise expressly provided in the
     Plan, all designations, determinations, interpretations, and other
     decisions under or with respect to the Plan or any Award shall be within
     the sole discretion of the Committee, may be made at any time and shall be
     final, conclusive, and binding upon all persons, including the Partnership
     or any Employee. No member of the Committee shall be liable for any action,
     determination or interpretation made in good faith, and all members of the
     Committee shall, in addition to their rights as directors, be fully
     protected by Holdings with respect to any such action, determination or
     interpretation.

                                   SECTION 9
                  PLAN AMENDMENT, MODIFICATION AND TERMINATION

9.1  This Plan may be amended from time to time by the Committee. This Plan may
     be terminated at any time by the Committee and shall automatically
     terminate when all Units authorized for purchase pursuant to the Plan have
     been purchased.  On termination of the Plan, all amounts then remaining
     credited to the notional accounts for Employees shall be returned to the
     affected Employees.

                                   SECTION 10
                           NONEXCLUSIVITY OF THE PLAN

10.1 The adoption of the Plan by Holdings shall not be construed as creating any
     limitations on the power or authority of Holdings to adopt such other or
     additional incentive or other compensation arrangements of whatever nature
     as Holdings may deem necessary or

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     desirable or preclude or limit the continuation of any other plan, practice
     or arrangement for the payment of compensation or fringe benefits to
     employees, non-employee directors, or consultants generally, or to any
     class or group of employees, directors, or consultants, which Holdings now
     has lawfully put into effect, including, without limitation, any
     retirement, pension, savings and stock purchase plan, insurance, death and
     disability benefits and executive short-term incentive plans.

                                   SECTION 11
                              REQUIREMENTS OF LAW

11.1  Requirements of Law.  The issuance of Units pursuant to the Plan shall be
      subject to all applicable laws, rules and regulations.

11.2  Rule 16b-3. It is intended that any purchases by a person subject to
      Section 16 of the 1934 Act meet all of the requirements of Rule 16b-3. If
      any action or procedure would otherwise not comply with Rule 16b-3, such
      action or procedure shall be modified, to the extent the Committee deems
      practicable, to conform to Rule 16b-3.

11.3  Governing Law. The validity, construction and effect of the Plan and any
      rules and regulations relating to the Plan shall be determined in
      accordance with applicable Federal law, and to the extent not preempted
      thereby, with the laws of the State of Delaware, without regard to
      conflicts of laws principles.

                                   SECTION 12
                         REIMBURSEMENT FROM PARTNERSHIP

12.1  The Partnership shall reimburse Holdings for all direct and indirect
      expenses incurred by Holdings in administering this Plan. Such costs
      incurred by Holdings may include, but are not limited to, costs incurred
      by Holdings attributable to (i) Holdings supplementing the purchase of
      Units by Employees pursuant to Section 4.2 of this Plan, (ii) Holdings
      reimbursing Employee's pursuant to Section 4.3 of this Plan and (iii)
      Holdings' payment of brokerage fees and other expenses incurred in
      purchasing Units under this Plan. The Partnership shall reimburse Holdings
      on a monthly basis, or such other reasonable basis as the General Partner
      may determine in its sole discretion.

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