Document:

Indenture

 EXHIBIT 4.3 

 
  

 
 CENTRAL ORIGINATING LEASE
TRUST 
 SECURED NOTES 

COLT 20    -SN   INDENTURE 

DATED AS OF             , 20     

 CENTRAL ORIGINATING LEASE TRUST 

AND 

                    , 

 AS COLT INDENTURE TRUSTEE 
  

 
  

 TABLE OF CONTENTS 

 

					
	 	 	 	  	Page
		
	ARTICLE I         DEFINITIONS AND INCORPORATION BY REFERENCE	  	
			
	 SECTION 1.1
	 	 Definitions; Rules of Construction
	  	3
			
	 SECTION 1.2
	 	 Incorporation by Reference of Trust Indenture Act
	  	3
		
	ARTICLE II         THE SECURED NOTES	  	
			
	 SECTION 2.1
	 	 Form
	  	4
			
	 SECTION 2.2
	 	 Execution, Authentication and Delivery
	  	4
			
	 SECTION 2.3
	 	 Registration; Registration of Transfer and Exchange of COLT 20    -SN   Secured
Notes
	  	5
			
	 SECTION 2.4
	 	 Mutilated, Destroyed, Lost or Stolen COLT 20    -SN   Secured
Notes
	  	7
			
	 SECTION 2.5
	 	 Payment of Principal and Interest
	  	8
			
	 SECTION 2.6
	 	 Persons Deemed Secured Noteholders
	  	9
			
	 SECTION 2.7
	 	 Cancellation of COLT 20    -SN   Secured Notes
	  	9
			
	 SECTION 2.8
	 	 Release of COLT 20    -SN   Trust Estate
	  	10
			
	 SECTION 2.9
	 	 Seller, CARI, the Trust and the CARAT Indenture Trustee as COLT 20    -SN  
Secured Noteholders
	  	10
			
	 SECTION 2.10
	 	 Tax Treatment
	  	10
		
	ARTICLE III         COVENANTS	  	
			
	 SECTION 3.1
	 	 Payment of Principal and Interest and Other Amounts
	  	10
			
	 SECTION 3.2
	 	 Maintenance of Agency Office
	  	10
			
	 SECTION 3.3
	 	 Money for Payments to Be Held in Trust
	  	11
			
	 SECTION 3.4
	 	 Existence
	  	12
			
	 SECTION 3.5
	 	 Protection of COLT 20    -SN   Trust Estate; Acknowledgment of
Pledge
	  	13
			
	 SECTION 3.6
	 	 Opinions as to COLT 20    -SN   Collateral
	  	13
			
	 SECTION 3.7
	 	 Performance of Obligations; Servicing of Series 20    -SN   Lease
Assets
	  	14
			
	 SECTION 3.8
	 	 Negative Covenants
	  	15
			
	 SECTION 3.9
	 	 Annual Statement as to Compliance
	  	16
			
	 SECTION 3.10
	 	 Consolidation, Merger, Etc., of Trust; Disposition of Trust Assets
	  	16
			
	 SECTION 3.11
	 	 Successor or Transferee
	  	18

  

 -i- 

 TABLE OF CONTENTS 

(continued) 
  

					
	 	 	 	  	Page
			
	 SECTION 3.12
	 	 No Other Business
	  	18
			
	 SECTION 3.13
	 	 No Borrowing
	  	19
			
	 SECTION 3.14
	 	 Guarantees, Loans, Advances and Other Liabilities
	  	19
			
	 SECTION 3.15
	 	 Servicer’s Obligations
	  	19
			
	 SECTION 3.16
	 	 Capital Expenditures
	  	19
			
	 SECTION 3.17
	 	 Restricted Payments
	  	19
			
	 SECTION 3.18
	 	 Notice of Events of Default
	  	20
			
	 SECTION 3.19
	 	 Further Instruments and Acts
	  	20
			
	 SECTION 3.20
	 	 COLT Indenture Trustee’s Release of Lien on Administrative Lease Assets and Warranty
Lease
 Assets and Sale or Other Distribution of the Related Vehicles
	  	20
			
	 SECTION 3.21
	 	 Representations and Warranties by COLT to the COLT Indenture Trustee
	  	21
			
	 SECTION 3.22
	 	 Maintenance of Separate Records for Each Series
	  	21
		
	ARTICLE IV         SATISFACTION AND DISCHARGE	  	
			
	 SECTION 4.1
	 	 Satisfaction and Discharge of COLT Indenture
	  	21
			
	 SECTION 4.2
	 	 Application of Trust Money
	  	23
			
	 SECTION 4.3
	 	 Repayment of Monies Held by Paying Agent
	  	23
			
	 SECTION 4.4
	 	 Duration of Position of COLT Indenture Trustee
	  	23
		
	ARTICLE V         DEFAULT AND REMEDIES	  	
			
	 SECTION 5.1
	 	 Events of Default
	  	23
			
	 SECTION 5.2
	 	 Acceleration of Maturity; Rescission and Annulment
	  	24
			
	 SECTION 5.3
	 	 Collection of Indebtedness and Suits for Enforcement by COLT Indenture Trustee
	  	25
			
	 SECTION 5.4
	 	 Remedies; Priorities
	  	27
			
	 SECTION 5.5
	 	 Optional Preservation of the Series 20    -SN   Lease Assets
	  	29
			
	 SECTION 5.6
	 	 Limitation of Suits
	  	29
			
	 SECTION 5.7
	 	 Unconditional Rights of the COLT 20    -SN   Secured Noteholders to Receive
Principal and Interest
	  	30
			
	 SECTION 5.8
	 	 Restoration of Rights and Remedies
	  	31
			
	 SECTION 5.9
	 	 Rights and Remedies Cumulative
	  	31
			
	 SECTION 5.10
	 	 Delay or Omission, Not a Waiver
	  	31

  

 -ii- 

 TABLE OF CONTENTS 

(continued) 
  

					
	 	 	 	  	Page
			
	 SECTION 5.11
	 	 Control by the COLT 20    -SN   Secured Noteholders
	  	31
			
	 SECTION 5.12
	 	 Waiver of Past Defaults
	  	32
			
	 SECTION 5.13
	 	 Undertaking for Costs
	  	32
			
	 SECTION 5.14
	 	 Waiver of Stay or Extension Laws
	  	33
			
	 SECTION 5.15
	 	 Action on COLT 20    -SN   Secured Notes
	  	33
			
	 SECTION 5.16
	 	 Performance and Enforcement of Certain Obligations
	  	33
		
	ARTICLE VI         THE COLT INDENTURE TRUSTEE	  	
			
	 SECTION 6.1
	 	 Duties of COLT Indenture Trustee
	  	34
			
	 SECTION 6.2
	 	 Rights of COLT Indenture Trustee
	  	35
			
	 SECTION 6.3
	 	 COLT Indenture Trustee May Own COLT 20    -SN   Secured Notes
	  	36
			
	 SECTION 6.4
	 	 COLT Indenture Trustee’s Disclaimer
	  	36
			
	 SECTION 6.5
	 	 Notice of Default
	  	36
			
	 SECTION 6.6
	 	 Reports by COLT Indenture Trustee
	  	37
			
	 SECTION 6.7
	 	 Compensation; Indemnity
	  	37
			
	 SECTION 6.8
	 	 Replacement of COLT Indenture Trustee
	  	38
			
	 SECTION 6.9
	 	 Merger or Consolidation of COLT Indenture Trustee
	  	39
			
	 SECTION 6.10
	 	 Appointment of Co-COLT Indenture Trustee or Separate COLT Indenture Trustee
	  	39
			
	 SECTION 6.11
	 	 Eligibility; Disqualification
	  	41
			
	 SECTION 6.12
	 	 Preferential Collection of Claims Against COLT
	  	41
			
	 SECTION 6.13
	 	 Representations and Warranties of COLT Indenture Trustee
	  	41
			
	 SECTION 6.14
	 	 COLT Indenture Trustee May Enforce Claims Without Possession of COLT
20    -SN   Secured
 Notes
	  	42
			
	 SECTION 6.15
	 	 Suit for Enforcement
	  	42
			
	 SECTION 6.16
	 	 Rights of COLT 20    -SN   Secured Noteholders to Direct COLT Indenture Trustee

	  	42
		
	ARTICLE VII         COLT 20    -SN   SECURED NOTEHOLDERS’ LISTS AND
REPORTS	  	
			
	 SECTION 7.1
	 	 COLT to Furnish COLT Indenture Trustee Names and Addresses of COLT
20    -SN   Secured
 Noteholders
	  	43

  

 -iii- 

 TABLE OF CONTENTS 

(continued) 
  

					
	 	 	 	  	Page
			
	 SECTION 7.2
	 	 Preservation of Information, Communications to COLT 20    -SN   Secured
Noteholders
	  	43
			
	 SECTION 7.3
	 	 Reports by COLT
	  	43
			
	 SECTION 7.4
	 	 Reports by Trustee
	  	44
		
	ARTICLE VIII         ACCOUNTS, DISBURSEMENTS AND RELEASES	  	
			
	 SECTION 8.1
	 	 Collection of Money
	  	44
			
	 SECTION 8.2
	 	 Designated Accounts; Allocations; Payments
	  	44
			
	 SECTION 8.3
	 	 General Provisions Regarding Designated Accounts
	  	45
			
	 SECTION 8.4
	 	 Release of the COLT 20    -SN   Trust Estate
	  	46
			
	 SECTION 8.5
	 	 Opinion of Counsel
	  	46
		
	ARTICLE IX         SUPPLEMENTAL INDENTURES	  	
			
	 SECTION 9.1
	 	 Supplemental Indentures Without Consent of COLT 20    -SN   Secured Noteholders

	  	46
			
	 SECTION 9.2
	 	 Supplemental Indentures with Consent of COLT 20    -SN   Secured
Noteholders
	  	48
			
	 SECTION 9.3
	 	 Execution of Supplemental Indentures
	  	49
			
	 SECTION 9.4
	 	 Effect of Supplemental Indenture
	  	49
			
	 SECTION 9.5
	 	 Conformity with Trust Indenture Act
	  	50
			
	 SECTION 9.6
	 	 Reference in COLT 20    -SN   Secured Notes to Supplemental
Indentures
	  	50
		
	ARTICLE X         REDEMPTION OF COLT 20    -SN   SECURED NOTES	  	
			
	 SECTION 10.1
	 	 Redemption
	  	50
			
	 SECTION 10.2
	 	 COLT 20    -SN   Secured Notes Payable on Redemption Date
	  	50
		
	ARTICLE XI         MISCELLANEOUS	  	
			
	 SECTION 11.1
	 	 Compliance Certificates and Opinions, Etc
	  	51
			
	 SECTION 11.2
	 	 Form of Documents Delivered to COLT Indenture Trustee
	  	52
			
	 SECTION 11.3
	 	 Acts of COLT 20    -SN   Secured Noteholders
	  	53
			
	 SECTION 11.4
	 	 Notices, Etc., to COLT Indenture Trustee, COLT and Rating Agencies
	  	54
			
	 SECTION 11.5
	 	 Notices to COLT 20    -SN   Secured Noteholders; Waiver
	  	54
			
	 SECTION 11.6
	 	 Alternate Payment and Notice Provisions
	  	55
			
	 SECTION 11.7
	 	 Conflict with Trust Indenture Act
	  	55

  

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 TABLE OF CONTENTS 

(continued) 
  

					
	 	 	 	  	Page
			
	 SECTION 11.8
	 	 Effect of Headings and Table of Contents
	  	55
			
	 SECTION 11.9
	 	 Successors and Assigns
	  	55
			
	 SECTION 11.10
	 	 Severability
	  	56
			
	 SECTION 11.11
	 	 Benefits of COLT Indenture
	  	56
			
	 SECTION 11.12
	 	 Legal Holidays
	  	56
			
	 SECTION 11.13
	 	 GOVERNING LAW
	  	56
			
	 SECTION 11.14
	 	 Counterparts
	  	56
			
	 SECTION 11.15
	 	 Recording of COLT Indenture
	  	56
			
	 SECTION 11.16
	 	 No Recourse
	  	57
			
	 SECTION 11.17
	 	 No Petition
	  	57
			
	 SECTION 11.18
	 	 Inspection
	  	58
			
	 SECTION 11.19
	 	 Indemnification by and Reimbursement of the Servicer
	  	58
			
	 SECTION 11.20
	 	 Series Liabilities
	  	58
			
	 SECTION 11.21
	 	 Subordination
	  	58
		
	EXHIBIT A         FORM OF COLT 20    -SN   SECURED NOTE	  	
		
	EXHIBIT B         FORM OF CERTIFICATION	  	

  

 -v- 

 COLT 20    -SN   INDENTURE, dated as of
            , 20    (this “COLT Indenture”), between CENTRAL ORIGINATING LEASE TRUST, a Delaware statutory trust (“COLT”), and
                    , a national banking association, as indenture trustee (as COLT Indenture Trustee and not in its individual capacity, the
“COLT Indenture Trustee”). 
 Each party agrees as follows for the benefit of the other parties and for the
equal and ratable benefit of the Holders of the COLT 20    -SN   Secured Notes: 

GRANTING CLAUSE 

COLT hereby Grants to the COLT Indenture Trustee, for the equal and ratable benefit of each Holder of a COLT
20    -SN   Secured Note, a security interest in, and its transfer, assignment and conveyance of, without recourse, the following: 

(i) all right, title and interest of COLT in, to and under the Series 20    -SN   Lease
Assets listed on the Series 20    -SN   Lease Assets Schedule attached as Schedule A to the COLT Sale and Contribution Agreement and all beneficial interest in the Vehicles related to the Series
20    -SN   Lease Assets under the VAULT Trust Agreement, and all monies due thereunder on and after the Cutoff Date and with respect to the Vehicles, to the extent permitted by law, all accessions
thereto; 
 (ii) the interest of COLT in any proceeds from claims on any physical damage, credit life, credit disability or
other insurance policies covering the related Vehicles or Lessees related to the Series 20    -SN   Lease Assets; 

(iii) the interest of COLT in any proceeds from recourse against Dealers on the Series
20    -SN   Lease Assets; 
 (iv) all right, title and interest of COLT in, to and
under the COLT 20    -SN   Lease Assets Assignment; 
 (v) all right, title and
interest of COLT in, to and under the VAULT Trust Agreement (solely with respect to the Vehicles related to Series 20    -SN   Lease Assets); 

(vi) all right, title and interest of COLT in, to and under the COLT Servicing Agreement and any other COLT
20    -SN   Basic Document; 
 (vii) all right, title and interest of COLT in, to
and under the funds on deposit from time to time in the Designated Accounts, including all Designated Account Property; and 

(viii) the present and future claims, demands, causes and choses in action in respect of any or all the foregoing and all payments on or
under and all proceeds of every kind and nature whatsoever in respect of any or all the foregoing, including all proceeds of the conversion of any or all of the foregoing, voluntary or involuntary, into cash or other liquid property, all cash
proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds, investment property, payment intangibles, general intangibles, condemnation awards, rights to payment of any and every
kind and other forms of obligations and receivables, instruments and other property which at any time constitute all or part of or are included in the proceeds of any of the foregoing (collectively, and together with the Direct COLT Pledge, the
“COLT 20    -SN   Collateral”). 
  

 1 

 In addition, to the extent that, notwithstanding the terms of the VAULT Trust Agreement and
the Statutory Trust Act, COLT is deemed to hold a direct ownership interest in the legal title to any Vehicle related to the Series 20    -SN   Lease Assets (and not merely a beneficial interest in VAULT
representing an interest in the legal title to such Vehicle), COLT hereby grants, equally and ratably, to each COLT 20    -SN   Secured Noteholder a security interest in all of COLT’s rights in such
Vehicle, to secure its obligations under the COLT Indenture (the assets pledged under such security interest, the “Direct COLT Pledge”). The Direct COLT Pledge shall constitute part of the COLT
20    -SN   Collateral for all purposes hereunder, and each COLT 20    -SN   Secured Noteholder, by its acceptance thereof, hereby appoints the COLT Indenture
Trustee as its agent to act with respect to the Direct COLT Pledge as it is required to act with respect to the remainder of the COLT 20    -SN   Collateral in accordance with this COLT Indenture.

 The foregoing Grant is made in trust to secure the payment of principal of and interest on, and any other amounts owing in
respect of, the COLT 20    -SN   Secured Notes, equally and ratably without prejudice, priority or distinction among the Holders of the COLT 20    -SN   Secured
Notes and to secure compliance with the provisions of this COLT Indenture, all as provided in this COLT Indenture. This COLT Indenture constitutes a security agreement under the UCC. 

The foregoing Grant includes all rights, powers and options (but none of the obligations, if any) of COLT under any agreement or
instrument included in the COLT 20    -SN   Collateral, including the immediate and continuing right to claim for, collect, receive and give receipt for principal and interest payments in respect of the
Series 20    -SN   Lease Assets included in the COLT 20    -SN   Collateral and all other monies payable under the COLT
20    -SN   Collateral, to give and receive notices and other communications, to make waivers or other agreements, to exercise all rights and options, to bring Proceedings in the name of COLT or otherwise
and generally to do and receive anything that COLT is or may be entitled to do or receive under or with respect to the COLT 20    -SN   Collateral. 

Furthermore, on the Series 20    -SN   Closing Date, VAULT shall grant a security interest in
the Pledged Collateral to each COLT 20    -SN   Secured Noteholder, to the extent set forth in the VAULT Security Agreement. The Pledged Collateral shall constitute part of the COLT
20    -SN   Trust Estate for all purposes hereunder, and each COLT 20    -SN   Secured Noteholder, by its acceptance thereof, hereby appoints the COLT Indenture
Trustee as its agent to act with respect to the Pledged Collateral as it is required to act with respect to the remainder of the COLT 20    -SN   Trust Estate in accordance with this COLT Indenture.

 The Holders of the COLT 20    -SN   Secured Notes shall enjoy solely the security
of the COLT 20    -SN   Trust Estate and shall have no recourse to the assets included in the Series Portfolio securing any other Series of Secured Notes or any other assets of COLT. 

 

 2 

 The COLT Indenture Trustee, as indenture trustee on behalf of each Holder of the COLT
20    -SN   Secured Notes, acknowledges such Grant and accepts the trusts under this COLT Indenture in accordance with the provisions of this COLT Indenture. 

ARTICLE I 

DEFINITIONS AND INCORPORATION BY REFERENCE 

SECTION 1.1 Definitions; Rules of Construction. Capitalized terms used in this COLT Indenture but not defined
herein are defined in and shall have the meanings assigned to them in the COLT Series Definitions set forth in Part I of Exhibit A to the COLT Servicing Agreement, dated as of the date hereof (as amended, modified or supplemented
from time to time, the “COLT Servicing Agreement”), between COLT, Ally Financial Inc. (“Ally Financial”), as Servicer, and the COLT Indenture Trustee or if not defined therein, shall have the meanings assigned to them in the COLT
Program Definitions set forth in Part I of Exhibit I to the Declaration of Trust, dated as of December 13, 2006 (as amended, modified or supplemented from time to time, the “Declaration”), by Deutsche Bank
Trust Company Delaware, as COLT Owner Trustee, and acknowledged, accepted and agreed by Central Originating Lease, LLC (“COLT, LLC”), as Residual Certificateholder. All references herein to Articles, Sections, subsections and
exhibits are to Articles, Sections, subsections and exhibits of this COLT Indenture unless otherwise specified. All terms defined in this COLT Indenture shall have the defined meanings when used in any certificate, notice, COLT
20    -SN   Secured Note or other document made or delivered pursuant hereto unless otherwise defined therein. The rules of construction set forth in Part II of Exhibit A to the COLT
Servicing Agreement shall be applicable to this COLT Indenture. 
 SECTION 1.2 Incorporation by Reference of Trust Indenture
Act. Whenever this COLT Indenture refers to a provision of the TIA, such provision is incorporated by reference in and made a part of this COLT Indenture. The following TIA terms used in this COLT Indenture have the following meanings:

 “Commission” means the Securities and Exchange Commission; 

“indenture securities” means the COLT 20    -SN   Secured Notes; 

“indenture security holder” means a COLT 20    -SN   Secured Noteholder;

 “indenture to be qualified” means this COLT Indenture; 

“indenture trustee” means the COLT Indenture Trustee; 

“obligor” on the indenture securities means COLT and any other obligor on the indenture securities. 

All other TIA terms used in this COLT Indenture that are defined by the TIA, defined by reference to another statute or defined by a
Commission rule have the respective meanings assigned to them by such definitions. 
  

 3 

 ARTICLE II 

THE SECURED NOTES 

SECTION 2.1 Form. 

(a) Each COLT 20    -SN   Secured Note, together, in each case, with the COLT Indenture
Trustee’s certificate of authentication, shall be substantially in the form set forth in Exhibit A, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this COLT
Indenture, and each such COLT 20    -SN   Secured Note may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may, consistently herewith, be
determined to be appropriate by the officers executing such COLT 20    -SN   Secured Notes, as evidenced by their execution of the COLT 20    -SN   Secured
Notes, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange on which such COLT 20    -SN   Secured Notes
may be listed or to conform to usage. Any portion of the text of any COLT 20    -SN   Secured Note may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the COLT
20    -SN   Secured Note. The COLT 20    -SN   Secured Notes shall be secured by the COLT 20    -SN   Trust Estate as
set forth in this COLT Indenture. 
 (b) The COLT 20    -SN   Secured Notes shall be
typewritten, printed, lithographed or engraved or produced by any combination of these methods (with or without steel engraved borders), all as determined by the officers executing such COLT 20    -SN  
Secured Notes, as evidenced by their execution of such COLT 20    -SN   Secured Notes. 

(c) Each COLT 20    -SN   Secured Note shall be issued in the initial Secured Note Principal
Balance set forth on the face thereof, which shall each be equal to 50% of the product of (x) the Secured Note Percentage and (y) the sum of the Initial ABS Values of the Series 20    -SN   Lease
Assets (with respect to each COLT 20    -SN   Secured Note, the “Initial Secured Note Principal Balance”). 

(d) The terms of the COLT 20    -SN   Secured Notes as provided for in Exhibit A are part of
the terms of this COLT Indenture. 
 SECTION 2.2 Execution, Authentication and Delivery. 

(a) Each COLT 20    -SN   Secured Note shall be dated the date of its authentication and shall
be issuable as a registered COLT 20    -SN   Secured Note. 
 (b) The COLT
20    -SN   Secured Notes shall be executed on behalf of COLT by any of its Authorized Officers. The signature of any such Authorized Officer on the COLT
20    -SN   Secured Notes may be manual or facsimile. 
 (c) COLT
20    -SN   Secured Notes bearing the manual or facsimile signature of individuals who were at any time Authorized Officers of COLT shall bind COLT, notwithstanding that such individuals or any of them
have ceased to hold such office prior to the authentication and delivery of such COLT 20    -SN   Secured Notes or did not hold such office at the date of such COLT
20    -SN   Secured Notes. 
  

 4 

 (d) The COLT Indenture Trustee, in exchange for the Grant of the COLT
20    -SN   Collateral, simultaneously with the Grant to the COLT Indenture Trustee of the COLT 20    -SN   Collateral, and the constructive delivery to the COLT
Indenture Trustee of the Series 20    -SN   Lease Assets and the other components and assets of the COLT 20    -SN   Collateral, shall cause to be authenticated
and delivered to or upon the order of COLT, one or more COLT 20    -SN   Secured Notes. 

(e) No COLT 20    -SN   Secured Notes shall be entitled to any benefit under this COLT
Indenture or be valid or obligatory for any purpose, unless there appears on such COLT 20    -SN   Secured Note a certificate of authentication substantially in the form set forth in Exhibit A
executed by the COLT Indenture Trustee by the manual signature of one of its Authorized Officers, and such certificate upon any COLT 20    -SN   Secured Note shall be conclusive evidence, and the only
evidence, that such COLT 20    -SN   Secured Note has been duly authenticated and delivered hereunder. 

SECTION 2.3 Registration; Registration of Transfer and Exchange of COLT 20    -SN   Secured Notes.

 (a) COLT shall cause to be kept the Secured Note Register, comprising separate registers for each of the COLT
20    -SN   Secured Notes, in which, subject to such reasonable regulations as COLT may prescribe, COLT shall provide for the registration of the COLT
20    -SN   Secured Notes and the registration of transfers and exchanges of the COLT 20    -SN   Secured Notes. The COLT Indenture Trustee shall initially be
the Secured Note Registrar for the purpose of registering the COLT 20    -SN   Secured Notes and transfers or exchanges of the COLT 20    -SN   Secured Notes as
herein provided. Upon any resignation of any Secured Note Registrar, COLT shall promptly appoint a successor Secured Note Registrar or, if it elects not to make such an appointment, assume the duties of the Secured Note Registrar. 

(b) If a Person other than the COLT Indenture Trustee is appointed by COLT as Secured Note Registrar, COLT will give the COLT Indenture
Trustee prompt written notice of the appointment of such Secured Note Registrar and of the location, and any change in the location, of the Secured Note Register. The COLT Indenture Trustee shall have the right to inspect the Secured Note Register
at all reasonable times and to obtain copies thereof. The COLT Indenture Trustee shall have the right to rely upon a certificate executed on behalf of the Secured Note Registrar by a Responsible Officer thereof as to the names and addresses of the
COLT 20    -SN   Secured Noteholders and the Secured Note Principal Balances and number of such COLT 20    -SN   Secured Notes. 

(c) Upon surrender for registration of transfer of any COLT 20    -SN   Secured Note at the
Corporate Trust Office of the COLT Indenture Trustee or Agency Office of COLT (and following the delivery, in the former case, of such COLT 20    -SN   Secured Notes to COLT by the COLT Indenture Trustee),
COLT shall execute, the COLT Indenture Trustee shall authenticate and the COLT 20    -SN   Secured Noteholder shall obtain from the COLT Indenture Trustee, in the name of the designated transferee or
transferees, one or more new COLT 20    -SN   Secured Notes in any authorized denominations, of a like Secured Note Principal Balance. 

 

 5 

 (d) At the option of the COLT 20    -SN  
Secured Noteholder, COLT 20    -SN   Secured Notes may be exchanged for other COLT 20    -SN   Secured Notes in any authorized denominations, of a like Secured
Note Principal Balance and a like numerical designation, upon surrender of such COLT 20    -SN   Secured Notes to be exchanged at the Corporate Trust Office of the COLT Indenture Trustee or the Agency
Office of COLT (and following the delivery of such COLT 20    -SN   Secured Notes to COLT by the COLT Indenture Trustee), COLT shall execute, and the COLT Indenture Trustee shall authenticate and the COLT
20    -SN   Secured Noteholder shall obtain from the COLT Indenture Trustee, such COLT 20    -SN   Secured Notes which the COLT
20    -SN   Secured Noteholder making the exchange is entitled to receive. 
 (e)
All COLT 20    -SN   Secured Notes issued upon any registration of transfer or exchange of other COLT 20    -SN   Secured Notes shall be the valid obligations of
COLT, evidencing the same debt, and entitled to the same benefits under this COLT Indenture, as the COLT 20    -SN   Secured Notes surrendered upon such registration of transfer or exchange. 

(f) Every COLT 20    -SN   Secured Note presented or surrendered for registration of transfer
or exchange shall be duly endorsed by, or be accompanied by a written instrument of transfer in form satisfactory to the COLT Indenture Trustee and the Secured Note Registrar, duly executed by the Holder thereof or such Holder’s
attorney-in-fact duly authorized in writing, with such signature guaranteed by a commercial bank or trust company located, or having a correspondent located, in the City of New York or the city in which the Corporate Trust Office of the COLT
Indenture Trustee is located, or by a member firm of a national securities exchange, and such other documents as the COLT Indenture Trustee may require. 

(g) No service charge shall be made to a Holder for any registration of transfer or exchange of COLT
20    -SN   Secured Notes, but COLT or the COLT Indenture Trustee may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any
registration of transfer or exchange of COLT 20    -SN   Secured Notes, other than exchanges pursuant to Section 9.6 not involving any transfer. 

(h) By acquiring a COLT 20    -SN   Secured Note or any interest therein, each purchaser and
transferee shall be deemed to represent and warrant that either (a) it is not acquiring the COLT 20    -SN   Secured Note with the plan assets of a Benefit Plan or (b) the acquisition, holding
and disposition of the COLT 20    -SN   Secured Note will not give rise to a non-exempt prohibited transaction under Section 406 of ERISA, Section 4975 of the Code or a non-exempt violation of
any substantially similar applicable law. 
 (i) The preceding provisions of this Section 2.3 notwithstanding, COLT
shall not be required to transfer or make exchanges, and the Secured Note Registrar need not register transfers or exchanges, of (i) COLT 20    -SN   Secured Notes that have been selected for
redemption pursuant to Article X, if applicable; or (ii) COLT 20    -SN   Secured Notes that are due for final payment within 15 days of submission to the Corporate Trust Office or the Agency
Office. 
  

 6 

 SECTION 2.4 Mutilated, Destroyed, Lost or Stolen COLT
20    -SN   Secured Notes. 
 (a) If (i) any mutilated COLT
20    -SN   Secured Note is surrendered to the COLT Indenture Trustee, or the COLT Indenture Trustee receives evidence to its satisfaction of the destruction, loss or theft of any COLT
20    -SN   Secured Note, and (ii) there is delivered to COLT and the COLT Indenture Trustee such security or indemnity as may be required by each such Person to hold each such Person harmless, then,
in the absence of notice to COLT, the Secured Note Registrar or the COLT Indenture Trustee that such COLT 20    -SN   Secured Note has been acquired by a Protected Purchaser, COLT shall execute and upon
COLT’s request the COLT Indenture Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen COLT 20    -SN   Secured Note, a replacement COLT
20    -SN   Secured Note of a like Secured Note Principal Balance; provided, however, that if any such destroyed, lost or stolen COLT 20    -SN  
Secured Note, but not a mutilated COLT 20    -SN   Secured Note, shall have become or within seven days shall be due and payable, or shall have been called for redemption, instead of issuing a replacement
COLT 20    -SN   Secured Note, COLT may make payment to the Holder of such destroyed, lost or stolen COLT 20    -SN   Secured Note when so due or payable or upon
the Redemption Date, if applicable, without surrender thereof. 
 (b) If, after the delivery of a replacement COLT
20    -SN   Secured Note or payment in respect of a destroyed, lost or stolen COLT 20    -SN   Secured Note pursuant to Section 2.4(a), a Protected
Purchaser of the original COLT 20    -SN   Secured Note in lieu of which such replacement COLT 20    -SN   Secured Note was issued presents for payment such
original COLT 20    -SN   Secured Note, COLT and the COLT Indenture Trustee shall be entitled to recover such replacement COLT 20    -SN   Secured Note (or such
payment) from (i) any Person to whom it was delivered, (ii) the Person taking such replacement COLT 20    -SN   Secured Note from the Person to whom such replacement COLT
20    -SN   Secured Note was delivered; or (iii) any assignee of such Person, except a Protected Purchaser, and COLT and the COLT Indenture Trustee shall be entitled to recover upon the security or
indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by COLT or the COLT Indenture Trustee in connection therewith. 

(c) In connection with the issuance of any replacement COLT 20    -SN   Secured Note under
this Section 2.4, COLT may require the payment by the Holder of such COLT 20    -SN   Secured Note of a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other reasonable expenses (including all fees and expenses of the COLT Indenture Trustee) connected therewith. 

(d) Any duplicate COLT 20    -SN   Secured Note issued pursuant to this
Section 2.4 in replacement for any mutilated, destroyed, lost or stolen COLT 20    -SN   Secured Note shall constitute an original additional contractual obligation of COLT, whether or not the
mutilated, destroyed, lost or stolen COLT 20    -SN   Secured Note shall be found at any time or be enforced by any Person, and shall be entitled to all the benefits of this COLT Indenture equally and
proportionately with any and all other COLT 20    -SN   Secured Notes duly issued hereunder. 
  

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 (e) The provisions of this Section 2.4 are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen COLT 20    -SN   Secured Notes. 

SECTION 2.5 Payment of Principal and Interest. 

(a) Each COLT 20    -SN   Secured Note shall accrue interest from and including the Series
20    -SN   Closing Date on the Secured Note Principal Balance of such COLT 20    -SN   Secured Note, until but excluding the date on which the Secured Note
Principal Balance of such COLT 20    -SN   Secured Note is reduced to zero. Interest shall accrue on each COLT 20    -SN   Secured Note at the COLT
20    -SN   Secured Note Rate. On each Payment Date, each COLT 20    -SN   Secured Note shall be paid interest in an amount equal to the Secured Note Interest
Distributable Amount payable to such COLT 20    -SN   Secured Note in accordance with Section 3.03(c)(ii) of the COLT Servicing Agreement on such Payment Date. Any installment of interest
payable on the COLT 20    -SN   Notes shall be punctually paid or duly provided for with funds set aside in the COLT Collection Account on the applicable Payment Date and shall be paid to the Person in
whose name such COLT 20    -SN   Secured Note is registered in the Secured Note Register on the applicable Record Date, by wire transfer in immediately available funds to the account or accounts designated
in writing by such Holder to the COLT Indenture Trustee on or prior to the related Record Date. 
 (b) To the extent of funds
available therefor, the outstanding principal amount of each COLT 20    -SN   Secured Note shall be paid in installments on each Payment Date, in the amounts and in accordance with the priorities set forth
in Section 3.03(c)(iii) of the COLT Servicing Agreement. The outstanding principal amount of the COLT 20    -SN   Secured Notes shall be due and payable in full on the Final Scheduled Payment
Date. All principal payments on the COLT 20    -SN   Secured Notes shall be made pro rata to the COLT 20    -SN   Secured Noteholders, as provided in
Section 3.03(c)(iii) of the COLT Servicing Agreement. Any installment of principal payable on any COLT 20    -SN   Secured Note shall be punctually paid or duly provided for with funds set
aside in the COLT Collection Account established with respect to the Series 20    -SN   Lease Assets on the applicable Payment Date and shall be paid to the Person in whose name such COLT
20    -SN   Secured Note is registered in the Secured Note Register on the applicable Record Date by wire transfer in immediately available funds to the account or accounts designated by such Holder on or
prior to the related Record Date, except for the Redemption Price for the COLT 20    -SN   Secured Notes redeemed pursuant to Section 10.1, which shall be payable as provided herein. The funds
represented by any such wire transfers in respect of interest or principal returned undelivered shall be held in accordance with Section 3.3. 

(c) From and after the occurrence of an Event of Default and a declaration in accordance with Section 5.2(a) that the COLT
20    -SN   Secured Notes have become immediately due and payable, until such time as all Events of Default have been cured or waived as provided in Section 5.2(b), all interest and principal
payments shall be allocated pro rata among the Holders of all of the COLT 20    -SN   Secured Notes on the basis of the Secured Note Principal Balances of COLT
20    -SN   Secured Notes held by such Holders. 
  

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 (d) With respect to any Payment Date on which the final installment of principal and
interest on a COLT 20    -SN   Secured Note is to be paid, the COLT Indenture Trustee on behalf of COLT shall notify each COLT 20    -SN   Secured Noteholders of
record as of the Record Date for such Payment Date of the fact that the final installment of principal and interest on such COLT 20    -SN   Secured Note is to be paid on such Payment Date. With respect to
any COLT 20    -SN   Secured Notes, such notice shall be sent not later than three Business Days after such Record Date in accordance with Section 11.5(a), and shall specify that such final
installment shall be payable only upon presentation and surrender of such COLT 20    -SN   Secured Note and shall specify the place where such COLT 20    -SN  
Secured Note may be presented and surrendered for payment of such installment and the manner in which such payment shall be made. 

(e) All payments of principal and interest on the COLT 20    -SN   Secured Notes and the
CARAT Collection Account Shortfall Amounts shall be made by the COLT Indenture Trustee from the COLT Collection Account solely pursuant to the calculations and written direction of the Servicer in accordance with Section 3.03(a) of the
COLT Servicing Agreement. 
 SECTION 2.6 Persons Deemed Secured Noteholders. Prior to due presentment for registration of
transfer of any COLT 20    -SN   Secured Note, COLT, the COLT Indenture Trustee and any agent of COLT or the COLT Indenture Trustee shall treat the Person in whose name any COLT
20    -SN   Secured Note is registered in the Secured Note Register (as of the day of determination) as the COLT 20    -SN   Secured Noteholder for the purpose
of receiving payments of principal of and interest on such COLT 20    -SN   Secured Note and for all other purposes whatsoever, whether or not such COLT
20    -SN   Secured Note be overdue, and neither COLT, the COLT Indenture Trustee nor any agent of COLT or the COLT Indenture Trustee shall be affected by notice to the contrary. 

SECTION 2.7 Cancellation of COLT 20    -SN   Secured Notes. All COLT
20    -SN   Secured Notes surrendered for payment, redemption, exchange or registration of transfer shall, if surrendered to any Person other than the COLT Indenture Trustee, be delivered to the COLT
Indenture Trustee and shall be promptly canceled by the COLT Indenture Trustee. COLT may at any time deliver to the COLT Indenture Trustee for cancellation any COLT 20    -SN   Secured Notes previously
authenticated and delivered hereunder which the Trust may have acquired in any manner whatsoever, and all COLT 20    -SN   Secured Notes so delivered shall be promptly canceled by the COLT Indenture
Trustee. No COLT 20    -SN   Secured Notes shall be authenticated in lieu of or in exchange for any COLT 20    -SN   Secured Notes canceled as provided in this
Section 2.7, except as expressly permitted by this COLT Indenture. All canceled COLT 20    -SN   Secured Notes may be held or disposed of by the COLT Indenture Trustee in accordance with its
standard retention or disposal policy as in effect at the time unless COLT shall direct by a COLT Order that they be destroyed or returned to it; provided, however, that such COLT Order is timely and the COLT
20    -SN   Secured Notes have not been previously disposed of by the COLT Indenture Trustee. The COLT Indenture Trustee shall certify to COLT upon request that surrendered COLT
20    -SN   Secured Notes have been duly canceled and retained or destroyed, as the case may be. 
  

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 SECTION 2.8 Release of COLT 20    -SN   Trust Estate.
The COLT Indenture Trustee shall release property from the lien of this COLT Indenture and the VAULT Security Agreement, other than as permitted by Sections 3.20, 8.4 and 11.1, only upon receipt of a COLT Request accompanied by
an Officers’ Certificate, an Opinion of counsel (to the extent required by the TIA) and Independent Certificates in accordance with TIA §§ 314(c) and 314(d)(1). 

SECTION 2.9 Seller, CARI, the Trust and the CARAT Indenture Trustee as COLT 20    -SN   Secured
Noteholders. Each of the Seller, CARI, the Trust and the CARAT Indenture Trustee, in their individual or any other capacity, may become the owner or pledgee of COLT 20    -SN   Secured Notes and may
otherwise deal with COLT or its affiliates with the same rights it would have if it were not the Seller or the CARAT Indenture Trustee, as applicable, or with respect to CARI and the Trust, an Affiliate of the Seller. 

SECTION 2.10 Tax Treatment. COLT and the COLT Indenture Trustee, by entering into this COLT Indenture, and the COLT
20    -SN   Secured Noteholders, by acquiring any COLT 20    -SN   Secured Note or interest therein, (i) express their intention that the COLT
20    -SN   Secured Notes qualify under applicable tax law as indebtedness secured by the COLT 20    -SN   Trust Estate and (ii) unless otherwise required
by appropriate taxing authorities, agree to treat the COLT 20    -SN   Secured Notes as indebtedness secured by the COLT 20    -SN   Trust Estate for the purpose
of federal income taxes, state and local income and franchise taxes, any applicable single business tax, including the Michigan single business tax and any other taxes imposed upon, measured by or based upon gross or net income. 

ARTICLE III 

COVENANTS 

SECTION 3.1 Payment of Principal and Interest and Other Amounts. COLT shall duly and punctually pay the principal of and interest
on the COLT 20    -SN   Secured Notes and the CARAT Collection Account Shortfall Amount in accordance with the terms of the COLT 20    -SN   Basic Documents. On
each Payment Date and on the Redemption Date (if applicable), COLT shall cause amounts on deposit in the COLT Collection Account to be paid to the COLT 20    -SN   Secured Noteholders in accordance with
Sections 2.5 and 8.2 and with Section 3.03 of the COLT Servicing Agreement, less amounts properly withheld under the Code by any Person from a payment to any COLT 20    -SN  
Secured Noteholder of interest and/or principal. Any amounts so withheld shall be considered as having been paid by COLT to such COLT 20    -SN   Secured Noteholder for all purposes of this COLT Indenture.

 SECTION 3.2 Maintenance of Agency Office. As long as any of the COLT
20    -SN   Secured Notes remains outstanding, COLT shall maintain in the Borough of Manhattan, the City of New York, an office (the “Agency Office”), being an office or agency where COLT
20    -SN   Secured Notes may be surrendered to COLT for registration of transfer or exchange, and where notices and demands to or upon COLT in respect of the COLT
20    -SN   Secured Notes and this COLT Indenture may be served. COLT hereby initially appoints the COLT Indenture Trustee to serve as its agent for the foregoing purposes. COLT shall give prompt written
notice to the COLT Indenture Trustee of the location, and of any change in the location, of the Agency Office. If at any time COLT shall fail to maintain any such office or agency or shall fail to furnish the COLT Indenture Trustee with the address
thereof, such surrenders, notices and demands may be made or served at the Corporate Trust Office of the COLT Indenture Trustee, and COLT hereby appoints the COLT Indenture Trustee as its agent to receive all such surrenders, notices and demands.

  

 10 

 SECTION 3.3 Money for Payments to Be Held in Trust. 

(a) As provided in Section 8.2(a) and (b), all payments of amounts due and payable with respect to any COLT
20    -SN   Secured Notes that are to be made from amounts withdrawn from the COLT Collection Account pursuant to Section 3.03 of the COLT Servicing Agreement shall be made on behalf of COLT by
the COLT Indenture Trustee or by another Paying Agent, and no amounts so withdrawn from the COLT Collection Account for payments of such COLT 20    -SN   Secured Notes shall be paid over to COLT except as
provided in this Section 3.3. 
 (b) On or before the Redemption Date, COLT shall cause the Servicer to deposit into
the COLT Collection Account, pursuant to Section 6.01 of the COLT Servicing Agreement, the Optional Purchase Price. On or before each Payment Date, COLT shall deposit or cause to be deposited in the COLT Collection Account, pursuant to
Section 3.03(b) of the COLT Servicing Agreement, an aggregate sum sufficient to pay the amounts then becoming due with respect to the COLT 20    -SN   Secured Notes and the CARAT Collection
Account Shortfall Amount, such sum to be held in trust for the benefit of the Persons entitled thereto. 
 (c) COLT shall cause
each Paying Agent other than the COLT Indenture Trustee to execute and deliver to the COLT Indenture Trustee an instrument in which such Paying Agent shall agree with the COLT Indenture Trustee (and if the Servicer acts as Paying Agent, it hereby so
agrees), subject to the provisions of this Section 3.3, that such Paying Agent shall: 
 (i) hold
all sums held by it for the payment of amounts due with respect to the COLT 20    -SN   Secured Notes in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons
or otherwise disposed of as herein provided and pay such sums to such Persons as herein provided; 
 (ii) give
the COLT Indenture Trustee notice of any default by COLT (or any other obligor upon the COLT 20    -SN   Secured Notes) of which it has actual knowledge in the making of any payment required to be made
with respect to the COLT 20    -SN   Secured Notes; 
 (iii) at any
time during the continuance of any such default, upon the written request of the COLT Indenture Trustee, forthwith pay to the COLT Indenture Trustee all sums so held in trust by such Paying Agent; 

(iv) immediately resign as a Paying Agent and forthwith pay to the COLT Indenture Trustee all sums held by it in trust
for the payment of the COLT 20    -SN   Secured Notes if at any time it ceases to meet the standards required to be met by a Paying Agent in effect at the time of determination; and 

 

 11 

 (v) comply with all requirements of the Code with respect to the
withholding from any payments made by it on the COLT 20    -SN   Secured Notes of any applicable withholding taxes imposed thereon and with respect to any applicable reporting requirements in connection
therewith. 
 (d) COLT may at any time, for the purpose of obtaining the satisfaction and discharge of this COLT Indenture or
for any other purpose, by a COLT Order direct any Paying Agent to pay to the COLT Indenture Trustee all sums held in trust by such Paying Agent, such sums to be held by COLT Indenture Trustee upon the same trusts as those upon which the sums were
held by such Paying Agent; and upon such payment by any Paying Agent to the COLT Indenture Trustee, such Paying Agent shall be released from all further liability with respect to such money. 

(e) Subject to applicable laws with respect to escheat of funds, any distribution to any COLT
20    -SN   Secured Noteholder returned to the COLT Indenture Trustee or any Paying Agent for any reason, held by the COLT Indenture Trustee or such Paying Agent in trust for the payment of any amount due
with respect to any COLT 20    -SN   Secured Note and remaining unclaimed for one year after such amount has become due and payable shall be discharged from such trust and be paid to COLT by the COLT
Indenture Trustee or such Paying Agent to COLT upon receipt of a COLT Request; and such COLT 20    -SN   Secured Noteholder shall thereafter, as an unsecured general creditor, look only to COLT for payment
thereof (but only to the extent of the amounts so paid to COLT), and all liability of the COLT Indenture Trustee or such Paying Agent with respect to such trust money shall thereupon cease; provided, however, that the COLT Indenture
Trustee or such Paying Agent, before being required to make any such payment, may at the expense of COLT cause to be published once, in a newspaper published in the English language, customarily published on each Business Day and of general
circulation in the City of New York, notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining shall
be paid to COLT. The COLT Indenture Trustee may also adopt and employ, at the expense of COLT, any other reasonable means of notification of such payment (including mailing notice of such repayment of any COLT
20    -SN   Secured Noteholder whose right to or interest in monies due and payable but not claimed is determinable from the records of the Secured Note Registrar, at the last address of record for each
COLT 20    -SN   Secured Noteholder). 
 SECTION 3.4 Existence. COLT shall
keep in full effect its existence, rights and franchises as a statutory trust under the laws of the State of Delaware (unless it becomes, or any successor trust hereunder is or becomes, organized under the laws of any other State or of the United
States of America, in which case COLT shall keep in full effect its existence, rights and franchises under the laws of such other jurisdiction) and shall obtain and preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and enforceability of this COLT Indenture, the COLT 20    -SN   Secured Notes, the COLT
20    -SN   Collateral and each other instrument or agreement included in the COLT 20    -SN   Trust Estate. 

 

 12 

 SECTION 3.5 Protection of COLT 20    -SN   Trust Estate;
Acknowledgment of Pledge. 
 (a) COLT shall from time to time execute and deliver all such supplements and amendments hereto
and authorize or execute, as applicable, and deliver all such financing statements, continuation statements, instruments of further assurance and other instruments, and shall take such other action necessary or advisable to: 

(i) maintain or preserve the Lien (and the priority thereof) of this COLT Indenture or carry out more effectively the
purposes hereof, including by making the necessary filings of financing statements or amendments thereto within sixty days after the occurrence of any of the following and by promptly notifying the COLT Indenture Trustee in writing of any such
filings: (A) any change in COLT’s true legal name or any of its trade names, (B) any change in the location of COLT’s jurisdiction of organization, (C) any merger or consolidation or other change in COLT’s identity or
organizational structure or jurisdiction of organization in which COLT is located for purposes of the UCC and (D) any other change or occurrence that would make any financing statement or amendment thereto seriously misleading within the
meaning of Section 9-506 of the UCC; 
 (ii) perfect, publish notice of or protect the validity of any
Grant made or to be made by this COLT Indenture and the priority thereof; 
 (iii) enforce the rights of the
COLT Indenture Trustee and the COLT 20    -SN   Secured Noteholders in the COLT 20    -SN   Trust Estate; or 

(iv) preserve and defend title to the COLT 20    -SN   Trust Estate and the
rights of the COLT Indenture Trustee and the COLT 20    -SN   Secured Noteholders in such COLT 20    -SN   Trust Estate against the claims of all Persons and
parties; 
 and COLT hereby designates the COLT Indenture Trustee its agent and attorney-in-fact to authorize and/or execute any financing
statement, continuation statement or other instrument required pursuant to this Section 3.5. 
 (b) COLT hereby
authorizes the COLT Indenture Trustee to file all financing statements, continuation statements or other instruments naming COLT as debtor that are necessary or advisable to perfect, make effective or continue the Lien of this COLT Indenture and the
VAULT Security Agreement with respect to the COLT 20    -SN   Trust Estate, and authorizes the COLT Indenture Trustee to take any such action without its signature. 

SECTION 3.6 Opinions as to COLT 20    -SN   Collateral. 

(a) On the Series 20    -SN   Closing Date, COLT shall furnish to the COLT Indenture Trustee
and each COLT 20    -SN   Secured Noteholder an Opinion of Counsel either stating that, in the opinion of such counsel, such action has been taken with respect to the recording and filing of this COLT
Indenture, any indentures supplemental hereto and any other requisite documents, and with respect to the authorization, execution and filing of any financing statements and continuation statements as are necessary to perfect and make effective the
Lien of this COLT Indenture and reciting the details of such action, or stating that, in the opinion of such counsel, no such action is necessary to make such Lien effective. 

 

 13 

 (b) On or before March 15 in each calendar year, beginning March 15,
20    , COLT shall furnish to the COLT Indenture Trustee and each COLT 20    -SN   Secured Noteholder an Opinion of Counsel either stating that, in the opinion of such counsel,
such action has been taken with respect to the recording and filing of this COLT Indenture, any indentures supplemental hereto and any other requisite documents and with respect to the authorization, execution and filing of any financing statements
and continuation statements as is necessary to maintain the Lien created by this COLT Indenture and reciting the details of such action or stating that in the opinion of such counsel no such action is necessary to maintain the Lien created by this
COLT Indenture. Such Opinion of Counsel shall also describe the recording, filing, re-recording and refiling of this COLT Indenture, any indentures supplemental hereto and any other requisite documents and the authorization, execution and filing of
any financing statements and continuation statements that will, in the opinion of such counsel, be required to maintain the Lien of this COLT Indenture until March 15 in the following calendar year. 

SECTION 3.7 Performance of Obligations; Servicing of Series 20    -SN   Lease Assets. 

(a) COLT shall not take any action and shall use its reasonable efforts not to permit any action to be taken by others that would release
any Person from any of such Person’s material covenants or obligations under any instrument or agreement included in the COLT 20    -SN   Trust Estate or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the validity or effectiveness of, any such instrument or agreement, except as otherwise expressly provided in this COLT Indenture, any other COLT
20    -SN   Basic Document or such other instrument or agreement. 
 (b) COLT may
contract with other Persons to assist it in performing its duties under this COLT Indenture, and any performance of such duties by a Person identified to the COLT Indenture Trustee in the COLT 20    -SN  
Basic Documents or an Officer’s Certificate of COLT shall be deemed to be action taken by COLT. Initially, COLT has contracted with the Servicer to assist COLT in performing its duties under this COLT Indenture. No such delegation shall relieve
COLT of its responsibilities with respect to such duties. 
 (c) COLT shall punctually perform and observe all of its
obligations and agreements contained in this COLT Indenture, any other COLT 20    -SN   Basic Documents and in the instruments and agreements included in the COLT
20    -SN   Trust Estate, including filing or causing to be filed all UCC financing statements and continuation statements required to be filed under the terms of this COLT Indenture and any other COLT
20    -SN   Basic Document in accordance with and within the time periods provided for herein or therein. 

(d) If COLT shall have knowledge of the occurrence of a Servicer Default under the COLT Servicing Agreement, COLT shall promptly (and in
any event within five Business Days) notify the COLT Indenture Trustee, the COLT 20    -SN   Secured Noteholders and the Rating Agencies (if any Rated Notes are outstanding) in writing thereof, and shall
specify in such notice the response or action, if any, COLT has taken or is taking with respect to such default. If any such Servicer Default shall arise from the failure of the Servicer to perform any of its duties or obligations under the COLT
Servicing Agreement with respect to the Series 20    -SN   Lease Assets, COLT and the COLT Indenture Trustee shall take all reasonable steps available to them pursuant to such COLT Servicing Agreement
(with respect to the COLT Indenture Trustee, in accordance with Section 6.2(h) of this COLT Indenture) to remedy such failure. 
  

 14 

 (e) Without derogating from the absolute nature of the assignment granted under this COLT
Indenture with respect to the COLT 20    -SN   Collateral and under the VAULT Security Agreement with respect to the Pledged Collateral or the rights of the COLT Indenture Trustee and the COLT
20    -SN   Secured Noteholders hereunder or under the VAULT Security Agreement, COLT agrees that it shall not, without the prior written consent of the COLT Indenture Trustee and the COLT
20    -SN   Secured Noteholders, amend, modify, waive, supplement, terminate or surrender, or agree to any amendment, modification, supplement, termination, waiver or surrender of, the terms of any assets
included in the COLT 20    -SN   Trust Estate or any of COLT 20    -SN   Basic Documents, or waive timely performance or observance by any party under any of the
COLT 20    -SN   Basic Documents. 
 SECTION 3.8 Negative Covenants. So long
as any COLT 20    -SN   Secured Notes are Outstanding, COLT shall not: 
 (a) sell,
transfer, exchange or otherwise dispose of any of the properties or assets included in the COLT 20    -SN   Trust Estate, except COLT may cause the Servicer to: (i) collect, liquidate, sell or
otherwise dispose of COLT’s interest in the Series 20    -SN   Lease Assets (including any Warranty Lease Assets, Administrative Lease Assets, and Liquidating Lease Assets, and any related
Vehicles); (ii) make cash payments out of the Designated Accounts and Payment Ahead Servicing Account; and (iii) take other actions, in each case as permitted by the COLT 20    -SN   Basic
Documents; 
 (b) claim any credit on, or make any deduction from the principal and interest payable in respect of COLT
20    -SN   Secured Notes (other than amounts withheld from such payments under the Code or applicable state law) or assert any claim against any present or former COLT
20    -SN   Secured Noteholder by reason of the payment of the taxes levied or assessed upon any part of the COLT 20    -SN   Trust Estate; 

(c) voluntarily commence any insolvency, readjustment of debt, marshaling of assets and liabilities or other proceeding, or apply for an
order by a court or agency or supervisory authority for the winding-up or liquidation of its affairs or any other event specified in Section 5.1(f); or 

(d) either (i) permit the validity or effectiveness of this COLT Indenture or any other COLT
20    -SN   Basic Documents to be impaired, or permit the lien of this COLT Indenture in the related COLT 20    -SN   Collateral or the lien of the VAULT
Security Agreement in the Pledged Collateral to be amended, hypothecated, subordinated, terminated or discharged, or permit any Person to be released from any covenants or obligations with respect to the COLT
20    -SN   Secured Notes under this COLT Indenture except as may be expressly permitted hereby, (ii) permit any Lien (other than the Lien of this COLT Indenture in the COLT
20    -SN   Collateral and the Lien of the VAULT Security Agreement in the Pledged Collateral) to be created on or extend to or otherwise arise upon or burden the COLT
20    -SN   Trust Estate or any part thereof or any interest therein or the proceeds thereof (other than as otherwise 

 

 15 

 
contemplated by the COLT 20    -SN   Basic Documents) or (iii) permit the Lien of this COLT Indenture not to constitute a valid first priority
perfected security interest in the COLT 20    -SN   Collateral or the Lien of the VAULT Security Agreement not to constitute a valid first priority perfected security interest in the Pledged Collateral
(other than as otherwise contemplated by the COLT 20    -SN    Basic Documents). 

SECTION 3.9 Annual Statement as to Compliance. Until the COLT 20    -SN   Secured
Notes have been paid in full, COLT shall deliver to the COLT Indenture Trustee and the COLT 20    -SN   Secured Noteholders, on or before March 15 of each year, beginning March 15,
20    , an Officer’s Certificate signed by an Authorized Officer of COLT, dated as of December 31 of the preceding year, stating that: 

(a) a review of the activities of COLT during the preceding 12-month period (or, with respect to the first such Officer’s
Certificate, such period as shall have elapsed since the Series 20    -SN   Closing Date) and of COLT’s performance under this COLT Indenture has been made under such Authorized Officer’s
supervision; and 
 (b) to the best of such Authorized Officer’s knowledge, based on such review, COLT has fulfilled all of
its obligations under this COLT Indenture throughout such period, or, if there has been a default in the fulfillment of any such obligation, specifying each such default known to such Authorized Officer and the nature and status thereof. 

SECTION 3.10 Consolidation, Merger, Etc., of Trust; Disposition of Trust Assets. 

(a) COLT shall not consolidate or merge with or into any other Person, unless: 

(i) the Person (if other than COLT) formed by or surviving such consolidation or merger shall be a Person organized and
existing under the laws of the United States of America or any state and be a U.S. Person, and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the COLT Indenture Trustee, in form satisfactory to the COLT
Indenture Trustee, the due and timely payment of the principal of and interest on all COLT 20    -SN   Secured Notes and the performance or observance of every agreement and covenant of this COLT Indenture on the part
of COLT to be performed or observed, all as provided herein; 
 (ii) immediately after giving effect to such
merger or consolidation, no Default or Event of Default shall have occurred and be continuing; 
 (iii) the
Approval Condition shall have been satisfied with respect to such transaction and such Person; 
 (iv) any
action as is necessary to maintain the Lien created by this COLT Indenture in the COLT 20    -SN   Collateral shall have been taken; and 

 

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 (v) COLT shall have delivered to the COLT Indenture Trustee an
Officer’s Certificate and an Opinion of Counsel addressed to COLT, the COLT Indenture Trustee and each COLT 20    -SN   Secured Noteholder, each stating: 

(A) that such consolidation or merger and such supplemental indenture comply with this Section 3.10;

 (B) that such consolidation or merger and such supplemental indenture shall have no material adverse tax
consequences to COLT or any COLT 20    -SN   Secured Noteholder; and 

(C) that all conditions precedent herein provided for in this Section 3.10 have been complied with, which
shall include any filing required by the Exchange Act. 
 (b) Except as otherwise expressly permitted by this
COLT Indenture or any other COLT 20    -SN   Basic Documents, COLT shall not sell, convey, exchange, transfer or otherwise dispose of any of the properties or assets included in the COLT
20    -SN   Trust Estate to any Person, unless: 
 (i) the Person
that acquires such properties or assets of COLT (A) shall be a United States citizen or a Person organized and existing under the laws of the United States of America or any state and be a U.S. Person and (B) by an indenture supplemental
hereto, executed and delivered to the COLT Indenture Trustee and each COLT 20    -SN   Secured Noteholder, in form satisfactory to the COLT Indenture Trustee: 

(1) expressly assumes the due and punctual payment of the principal of and interest on all COLT
20    -SN   Secured Notes and any CARAT Collection Account Shortfall Amounts and the performance or observance of every agreement and covenant of this COLT Indenture on the part of COLT to be performed or
observed, all as provided herein; 
 (2) expressly agrees that all right, title and interest so sold, conveyed,
exchanged, transferred or otherwise disposed of shall be subject and subordinate to the rights of COLT 20    -SN   Secured Noteholders; 

(3) unless otherwise provided in such supplemental indenture, expressly agrees to indemnify, defend and hold harmless COLT
against and from any loss, liability or expense arising under or related to this COLT Indenture and the COLT 20    -SN   Secured Notes; and 

(4) expressly agrees that such Person (or if a group of Persons, then one specified Person) shall make all
filings with the Commission (and any other appropriate Person) required by the Exchange Act in connection with the COLT 20    -SN   Secured Notes; 

 

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 (ii) immediately after giving effect to such transaction, no Default or
Event of Default shall have occurred and be continuing; 
 (iii) the Approval Condition shall have been satisfied
with respect to such transaction and such Person for the COLT 20    -SN   Secured Notes; 

(iv) any action as is necessary to maintain the lien and security interest created by this COLT Indenture in the COLT
20    -SN   Collateral shall have been taken; and 
 (v) COLT shall
have delivered to the COLT Indenture Trustee and each COLT 20    -SN   Secured Noteholder an Officer’s Certificate and an Opinion of Counsel addressed to COLT, each stating that: 

(A) such sale, conveyance, exchange, transfer or disposition and such supplemental indenture comply with this
Section 3.10; 
 (B) such sale, conveyance, exchange, transfer or disposition and such supplemental
indenture have no material adverse tax consequence to COLT or to any COLT 20    -SN   Secured Noteholder; and 

(C) that all conditions precedent herein provided for in this Section 3.10 have been complied with, which
shall include any filing required by the Exchange Act. 
 SECTION 3.11 Successor or Transferee. 

(a) Upon any consolidation or merger of COLT in accordance with Section 3.10(a), the Person formed by or surviving such
consolidation or merger (if other than COLT) shall succeed to, and be substituted for, and may exercise every right and power of, COLT under this COLT Indenture and the other COLT 20    -SN   Basic
Documents with the same effect as if such Person had been named as COLT herein. 
 (b) Upon a conveyance or transfer of all or
substantially all the assets and properties included in the COLT 20    -SN   Collateral pursuant to Section 3.10(b), COLT shall be released from every covenant and agreement of this COLT
Indenture and the other COLT 20    -SN   Basic Documents to be observed or performed on the part of COLT with respect to the COLT 20    -SN   Secured Notes
immediately upon the delivery of written notice to the COLT Indenture Trustee from the Person acquiring such assets and properties stating that COLT is to be so released. 

SECTION 3.12 No Other Business. COLT shall not engage in any business or activity other than acquiring, holding, pledging and
managing the COLT 20    -SN   Trust Estate and the proceeds therefrom in the manner contemplated by the COLT 20    -SN   Basic Documents, issuing COLT
20    -SN   Secured Notes and the COLT 20    -SN   Certificate, making payments on COLT 20    -SN   Secured Notes and
the COLT 20    -SN   Certificate and such other activities that are necessary, suitable or convenient to accomplish the foregoing or are incidental thereto or are otherwise described or set forth in
Section 2.3 of the Declaration. 
  

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 SECTION 3.13 No Borrowing. COLT shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any indebtedness for money borrowed other than indebtedness for money borrowed in respect of the COLT 20    -SN   Secured Notes, money
borrowed in respect of any other Series of Secured Notes or otherwise in accordance with the COLT 20    -SN   Basic Documents including Section 2.3 of the Declaration. 

SECTION 3.14 Guarantees, Loans, Advances and Other Liabilities. Except as contemplated by this COLT Indenture or the other COLT
20    -SN   Basic Documents, COLT shall not make any loan or advance or credit to, or guarantee (directly or indirectly or by an instrument having the effect of assuring another’s payment or
performance on any obligation or capability of so doing or otherwise), endorse or otherwise become contingently liable, directly or indirectly, in connection with the obligations, stocks or dividends of, or own, purchase, repurchase or acquire (or
agree contingently to do so) any stock, obligations, assets or securities of, or any other interest in, or make any capital contribution to, any other Person. 

SECTION 3.15 Servicer’s Obligations. COLT shall use its best efforts to cause the Servicer to comply with its obligations
under Sections 2.15, 2.16 and 2.17 of the COLT Servicing Agreement. 
 SECTION 3.16 Capital
Expenditures. COLT shall not make any expenditure (whether by long-term or operating lease or otherwise) for capital assets (either real, personal or intangible property) other than the purchase of the Series
20    -SN   Lease Assets and other related property and rights from time to time pursuant to the COLT Sale and Contribution Agreement or, with respect to other Series, to the extent otherwise described or
set forth in Section 2.3 of the Declaration of Trust. 
 SECTION 3.17 Restricted Payments. Except for payments of
principal or interest on or redemption of the COLT 20    -SN   Secured Notes or payment of any CARAT Collection Account Shortfall Amount, so long as any COLT
20    -SN   Secured Notes are Outstanding, COLT shall not, directly or indirectly: 

(a) pay any dividend or make any distribution from collections received on the COLT
20    -SN   Trust Estate (by reduction of capital or otherwise), whether in cash, property, securities or a combination thereof, to the COLT Owner Trustee or the Series
20    -SN   Certificateholder or otherwise, in each case with respect to any ownership or equity interest or similar security in or of the Series 20    -SN  
Portfolio or to the Servicer; 
 (b) redeem, purchase, retire or otherwise acquire for value any such ownership or equity
interest or similar security of the Series 20    -SN   Portfolio; or 
 (c) set
aside or otherwise segregate any amounts for any such purpose; 
 provided, however, that COLT may make, or cause to be made
(x) distributions to the Servicer, the COLT Indenture Trustee, the COLT Owner Trustee and the Series 20    -SN   Certificateholder as permitted by, and to the extent funds are available for such
purpose under, the COLT 20    -SN   Basic Documents and (y) distributions from any other Series Portfolio in accordance with the transaction documents related to such other Series Portfolio. COLT
shall not, directly or indirectly, make payments to or distributions from the COLT Collection Account except in accordance with the COLT 20    -SN   Basic Documents. 

 

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 SECTION 3.18 Notice of Events of Default. COLT agrees to give the COLT Indenture
Trustee, each COLT 20    -SN   Secured Noteholder and, if any Rated Notes are outstanding, the Rating Agencies prompt written notice of each Event of Default, each Servicer Default under the COLT Servicing
Agreement, each default on the part of the Servicer of its obligations under the COLT 20    -SN   Basic Documents and each default on the part of the Seller of its obligations under the COLT Sale and
Contribution Agreement. 
 SECTION 3.19 Further Instruments and Acts. Upon request of the COLT Indenture Trustee, COLT
shall execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purpose of this COLT Indenture. 

SECTION 3.20 COLT Indenture Trustee’s Release of Lien on Administrative Lease Assets and Warranty Lease Assets and Sale or Other
Distribution of the Related Vehicles. Upon receipt of the Administrative Purchase Payment with respect to any Administrative Lease Asset or the Warranty Payment with respect to any Warranty Lease Asset, in each case into the COLT Collection
Account, the COLT Indenture Trustee shall be deemed automatically and without any further action to have released its security interest and all of its other right title and interest in and Lien under this COLT Indenture on, (w) such Warranty
Lease Asset or (x) such Administrative Lease Asset, as the case may be, all monies due thereon, the security interest in the related Vehicle and any and all proceeds, rights and remedies relating thereto; and COLT shall simultaneously assign
and be deemed automatically and without any further action to have assigned, without recourse, representation or warranty, (y) such Warranty Lease Asset to the Seller under the COLT Sale and Contribution Agreement, or (z) such
Administrative Lease Asset to the Servicer under the COLT Servicing Agreement, as the case may be, all of COLT’s right, title and interest in, to and under such purchased Series 20    -SN   Lease
Asset, all monies due thereon, the security interest in the related Vehicle and any and all proceeds, rights and remedies relating thereto, such assignment being an assignment outright and not for security; and the Seller or the Servicer, as
applicable, shall thereupon own such Series 20    -SN   Lease Asset, and all such security and documents, free of any further obligation to the COLT Indenture Trustee, the COLT
20    -SN   Secured Noteholders or the COLT 20    -SN   Certificateholder with respect thereto. In addition, the Servicer shall have the right to sell or
otherwise dispose of the Vehicles related to the Series 20    -SN   Lease Assets so repurchased or purchased, as applicable, in accordance with the COLT Servicing Agreement. Upon the sale or other
disposition of any such Vehicle by the Servicer, the Lien of the COLT Indenture Trustee shall be automatically released upon the Servicer’s receipt of the proceeds of any such sale or liquidation. 

If in any enforcement suit or legal proceeding it is held that the Servicer under the COLT Servicing Agreement may not enforce a Series
20    -SN   Lease Asset included in the COLT 20    -SN   Collateral on the ground that it is not a real party in interest or a holder entitled to enforce the
Series 20    -SN   Lease Asset, the COLT Indenture Trustee shall, at the Servicer’s expense and written direction (which may be by electronic mail or other electronic transmission), take such steps as
the Servicer deems necessary to enforce such Series 20    -SN   Lease Asset, including bringing suit in the COLT Indenture Trustee’s name or the names of the COLT
20    -SN   Secured Noteholders and/or the COLT 20    -SN   Certificateholder. 

 

 20 

 SECTION 3.21 Representations and Warranties by COLT to the COLT Indenture Trustee. On
the Series 20    -SN   Closing Date, COLT hereby represents and warrants to the COLT Indenture Trustee as follows: 

(a) Good Title. No interest in any Series 20    -SN   Lease Asset
(other than any Administrative Lease Asset, Liquidating Lease Asset or Warranty Lease Asset or otherwise pursuant to the COLT 20    -SN   Basic Documents) has been sold, transferred, assigned or pledged by
COLT to any Person other than the COLT Indenture Trustee as of the Series 20    -SN   Closing Date (except that Ally Financial, as initial holder of the COLT
20    -SN   Secured Notes, has been named as the lienholder and VAULT has been named the legal titleholder on the certificates of title of the related Vehicles); immediately prior to the conveyance of such
Series 20    -SN   Lease Assets pursuant to this COLT Indenture, COLT had good and marketable title thereto, free of any Lien; and, upon execution and delivery of this COLT Indenture, the COLT Indenture
Trustee shall have all of the right, title and interest of COLT in, to and under such Series 20    -SN   Lease Assets, free of any Lien; and 

(b) All Filings Made. All filings (including UCC filings) and notations necessary in any jurisdiction to give the COLT Indenture
Trustee (or, with respect to the Direct COLT Pledge, each COLT 20    -SN   Secured Noteholder) a first priority perfected security interest in the COLT
20    -SN   Collateral have been made. 
 SECTION 3.22 Maintenance of Separate
Records for Each Series. So long as any COLT 20    -SN   Secured Note remains Outstanding and pursuant to Section 3.2(a) of the Declaration, COLT shall maintain separate and distinct
records with respect to the Series 20    -SN   Lease Assets and the remainder of the Series 20    -SN   Portfolio and the Series
20    -SN   Lease Assets and the remainder of the Series 20    -SN   Portfolio shall be held and accounted for separately from any other Trust Assets allocated
to any other Series Portfolio or the Residual Interest. 
 ARTICLE IV 

SATISFACTION AND DISCHARGE 

SECTION 4.1 Satisfaction and Discharge of COLT Indenture. This COLT Indenture shall cease to be of further effect except as to:
(i) rights of registration of transfer and exchange; (ii) substitution of mutilated, destroyed, lost or stolen COLT 20    -SN   Secured Notes; (iii) rights of COLT
20    -SN   Secured Noteholders to receive payments of principal thereof and interest thereon; (iv) Sections 3.3, 3.4, 3.5, 3.6, 3.10, 3.12, 3.13,
3.18, 3.20 and 11.16; (v) the rights, obligations and immunities of the COLT Indenture Trustee hereunder (including the rights of the COLT Indenture Trustee under Section 6.7 and the obligations of the COLT
Indenture Trustee under Sections 4.2 and 4.4); and (vi) the rights of COLT 20    -SN   Secured Noteholders as beneficiaries hereof with respect to the property so deposited with the COLT
Indenture Trustee payable to all or any of them, and the COLT Indenture Trustee, on demand of and at the expense of COLT, shall execute proper instruments acknowledging satisfaction and discharge of this COLT Indenture with respect to the COLT
20    -SN   Secured Notes, if: 
 (a) either: 

(i) all COLT 20    -SN   Secured Notes theretofore authenticated and delivered
(other than (A) COLT 20    -SN   Secured Notes that have been destroyed, lost or stolen and that have been replaced or paid as provided in Section 2.4 and (B) COLT
20    -SN   Secured Notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by COLT and thereafter repaid to COLT or discharged from such trust, as provided in
Section 3.3) have been delivered to the COLT Indenture Trustee for cancellation; or 
  

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 (ii) all COLT 20    -SN  
Secured Notes not theretofore delivered to the COLT Indenture Trustee for cancellation: 
 (A) have become due
and payable, 
 (B) will be due and payable on their respective Final Scheduled Payment Dates within one year, or

 (C) are to be called for redemption within one year under arrangements satisfactory to the COLT Indenture
Trustee for the giving of notice of redemption by the COLT Indenture Trustee in the name, and at the expense, of COLT or such COLT 20    -SN   Secured Notes have been redeemed in accordance with
Section 10.1, 
 and COLT, in the case of clause (A), (B) or (C) of
subsection 4.1(a)(ii) above, has irrevocably deposited or caused to be irrevocably deposited with the COLT Indenture Trustee cash or direct obligations of or obligations guaranteed by the United States of America (which will mature prior to
the date such amounts are payable), in trust for such purpose, in an amount sufficient to pay and discharge the entire unpaid principal and accrued interest on such COLT 20    -SN   Secured Notes not
theretofore delivered to the COLT Indenture Trustee for cancellation when due on the Final Scheduled Payment Date for such COLT 20    -SN   Secured Notes or the Redemption Date for such COLT
20    -SN   Secured Notes (if such COLT 20    -SN   Secured Notes have been called for redemption pursuant to Section 10.1), as the case may be;

 (b) COLT has paid or caused to be paid all amounts and has performed all obligations which COLT may owe to the COLT Indenture
Trustee personally or to the COLT Indenture Trustee for the benefit of the COLT 20    -SN   Secured Noteholders under this COLT Indenture and any other COLT
20    -SN   Basic Documents; and 
 (c) COLT has delivered to the COLT Indenture
Trustee and to the COLT 20    -SN   Secured Noteholders an Officer’s Certificate of COLT, an Opinion of Counsel and (if required by the TIA or the COLT Indenture Trustee) an Independent Certificate
from a firm of certified public accountants, each meeting the applicable requirements of Section 11.1(a) and each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this COLT Indenture
have been complied with. 
  

 22 

 SECTION 4.2 Application of Trust Money. All monies deposited with the COLT Indenture
Trustee pursuant to Section 4.1 shall be held in trust and applied by it, in accordance with the provisions of the COLT 20    -SN   Secured Notes and this COLT Indenture and the applicable
provisions of the COLT Servicing Agreement, to the payment, either directly or through any Paying Agent, as the COLT Indenture Trustee may determine, to the Holders of the particular COLT 20    -SN  
Secured Notes for the payment or redemption of which such monies have been deposited with the COLT Indenture Trustee, of all sums due and to become due in accordance with this COLT Indenture and any other COLT
20    -SN   Basic Documents; but such monies need not be segregated from other funds except to the extent required herein, in the COLT Servicing Agreement or by applicable law. 

SECTION 4.3 Repayment of Monies Held by Paying Agent. In connection with the satisfaction and discharge of this COLT Indenture
with respect to the COLT 20    -SN   Secured Notes, all monies then held by any Paying Agent other than the COLT Indenture Trustee under the provisions of this COLT Indenture with respect to all such COLT
20    -SN   Secured Notes shall, upon demand of COLT, be paid to the COLT Indenture Trustee to be held and applied according to Section 3.3 and thereupon such Paying Agent shall be released
from all further liability with respect to such monies. 
 SECTION 4.4 Duration of Position of COLT Indenture Trustee.
Notwithstanding the payment in full of all principal and interest due to all COLT 20    -SN   Secured Noteholders under the terms of the COLT 20    -SN   Secured
Notes and the cancellation of such COLT 20    -SN   Secured Notes pursuant to Section 4.1, the COLT Indenture Trustee shall continue to act in the capacity as COLT Indenture Trustee hereunder
for the benefit of the COLT 20    -SN   Certificateholder and the COLT Indenture Trustee, and for the benefit of such COLT 20    -SN   Certificateholder, shall
comply with its obligations under the COLT Servicing Agreement, as appropriate, until such time as all distributions due to the Holder of the Series 20    -SN   Certificate have been paid in full.

 ARTICLE V 

DEFAULT AND REMEDIES 

SECTION 5.1 Events of Default. For the purposes of this COLT Indenture, “Event of Default” wherever used herein,
means any one of the following events: 
 (a) failure to pay the full Secured Note Interest Distributable Amount on any COLT
20    -SN   Secured Note on any Payment Date, and such default shall continue unremedied for a period of five Business Days; or 

(b) except as set forth in Section 5.1(c), failure to pay any principal of any COLT
20    -SN   Secured Note as and when required in accordance with the COLT Basic Documents, and such default continues unremedied for a period of 30 days after there shall have been given, by registered or
certified mail, to the Servicer by the COLT Indenture Trustee or to the Servicer and the COLT Indenture Trustee by the Holders of not less than 25% of the Outstanding Amount of the COLT 20    -SN   Secured
Notes, a written notice specifying such default and demanding that it be remedied and stating that such notice is a “Notice of Default” hereunder; or 

 

 23 

 (c) failure to pay in full the Secured Note Principal Balance of any COLT
20    -SN   Secured Notes by the Final Scheduled Payment Date; or 

(d) default in the observance or performance in any material respect of any other covenants or agreements of COLT made
in this COLT Indenture (other than a covenant or agreement a default in the observance or performance of which is specifically dealt with elsewhere in this Section 5.1) which failure materially and adversely affects the rights of the
COLT 20    -SN   Secured Noteholders, and such default shall continue or not be cured for a period of 30 days (x) after there shall have been given, by registered or certified mail, to COLT, the
Seller (or the Servicer, as applicable) by the COLT Indenture Trustee or to COLT, the Seller (or the Servicer, as applicable) and the COLT Indenture Trustee by the Holders of at least 25% of the Outstanding Amount of the COLT
20    -SN   Secured Notes, a written notice specifying such default, demanding that it be remedied and stating that such notice is a “Notice of Default” hereunder; or 

(e) the filing of a decree or application for relief by a court having jurisdiction in the premises in respect of COLT or any substantial
part of the COLT 20    -SN   Trust Estate in an involuntary case under any applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official of COLT or for any substantial part of the COLT 20    -SN   Trust Estate, or ordering the winding-up or liquidation of COLT’s
affairs, and such decree or order shall remain unstayed and in effect for a period of 90 consecutive days; or 
 (f) the
commencement by COLT of a voluntary case under any applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or the consent of COLT to the entry of an application for relief in an involuntary case under any
such law, or the consent by COLT to the appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of COLT or for any substantial part of the COLT
20    -SN   Trust Estate, or the making by COLT of any general assignment for the benefit of creditors, or the failure by COLT generally to pay its debts as such debts become due, or the taking of action
by COLT in furtherance of any of the foregoing. 
 COLT shall deliver to the COLT Indenture Trustee and the COLT
20    -SN   Secured Noteholders promptly (and in any event within five Business Days) after learning of the occurrence thereof, written notice in the form of an Officer’s Certificate of any event
which with the giving of notice and the lapse of time would become an Event of Default under Section 5.1(d), its status and what action COLT is taking or proposes to take with respect thereto. 

SECTION 5.2 Acceleration of Maturity; Rescission and Annulment. 

(a) If an Event of Default should occur and be continuing, then and in every such case, unless the principal amount of the COLT
20    -SN   Secured Notes shall have already become due and payable, either the COLT Indenture Trustee or the Holders of COLT 20    -SN   Secured Notes
representing not less than a majority of the Outstanding Amount of the COLT 20    -SN   Secured Notes may declare all the COLT 20    -SN   Secured Notes to be
immediately due and payable, by a notice in writing to COLT and to the COLT Indenture Trustee if given by the COLT 20    -SN   Secured Noteholders setting forth the Event of Default or Events of

  

 24 

 
Default, and upon any such declaration the unpaid principal amount of the COLT 20    -SN   Secured Notes, together with accrued and unpaid interest
thereon through the date of acceleration, shall become immediately due and payable. 
 (b) At any time after such declaration of
acceleration of maturity of the COLT 20    -SN   Secured Notes has been made and before a judgment or decree for payment of the money due thereunder has been obtained by the COLT Indenture Trustee as
hereinafter provided in this Article V, the holders of COLT 20    -SN   Secured Notes representing not less than a majority of the Outstanding Amount of the COLT
20    -SN   Secured Notes, by written notice to COLT and the COLT Indenture Trustee, may waive all Defaults set forth in the notice delivered pursuant to Section 5.2(a) and rescind and annul
such declaration and its consequences; provided, however, that no such rescission and annulment shall extend to or affect any subsequent Event of Default or impair any right consequent thereto; and provided, further, that
if the COLT Indenture Trustee or the COLT 20    -SN   Secured Noteholders shall have proceeded to enforce any right under this COLT Indenture and such Proceedings shall have been discontinued or abandoned
because of such rescission and annulment or for any other reason, or such Proceedings shall have been determined adversely to the COLT Indenture Trustee or the COLT 20    -SN   Secured Noteholders, then
and in every such case, the COLT Indenture Trustee, COLT and the COLT 20    -SN   Secured Noteholders, as the case may be, shall be restored to their respective former positions and rights hereunder, and
all rights, remedies and powers of the COLT Indenture Trustee, COLT and the COLT 20    -SN   Secured Noteholders, as the case may be, shall continue as though no such Proceedings had been commenced.

 SECTION 5.3 Collection of Indebtedness and Suits for Enforcement by COLT Indenture Trustee. 

(a) COLT covenants that if an Event of Default occurs and such Event of Default has not been waived pursuant to Section 5.12,
then COLT shall, upon demand of the COLT Indenture Trustee, pay to the COLT Indenture Trustee, for the ratable benefit of the COLT 20    -SN   Secured Noteholders in accordance with their respective
Secured Note Principal Balances, the entire amount then due and payable on the COLT 20    -SN   Secured Notes for principal and interest, with interest upon the overdue principal and overdue interest at
the COLT 20    -SN   Secured Note Rate and any CARAT Collection Account Shortfall Amount and in addition thereto such further amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of the COLT Indenture Trustee and its agents and counsel. 

(b) If COLT shall fail forthwith to pay such amounts upon such demand, the COLT Indenture Trustee, may, in its own name and as trustee of
an express trust, institute a Proceeding for the collection of the sums so due and unpaid, and prosecute such Proceeding to judgment or final decree, and enforce the same against COLT or other obligor upon the COLT
20    -SN   Secured Notes and collect in the manner provided by law out of the property of the COLT 20    -SN   Trust Estate, the monies adjudged or decreed to
be payable. 
 (c) If an Event of Default occurs and is continuing, the COLT Indenture Trustee may, as more particularly
provided in Section 5.4, in its discretion, proceed to protect and enforce its rights and the rights of the COLT 20    -SN   Secured Noteholders, by such

  

 25 

 
appropriate Proceedings as the COLT Indenture Trustee shall deem most effective to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this
COLT Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy or legal or equitable right vested in the COLT Indenture Trustee by this COLT Indenture or by applicable law. 

(d) If there shall be pending, relative to COLT or any other obligor upon the COLT
20    -SN   Secured Notes or any Person having or claiming an ownership interest in the COLT 20    -SN   Trust Estate, Proceedings under Title 11 of the United
States Code or any other applicable federal or state bankruptcy, insolvency or similar law, or if a receiver, assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been appointed for or taken
possession of COLT or its property or such obligor or Person, or in case of any other comparable judicial Proceedings relative to COLT or other obligor upon the COLT 20    -SN   Secured Notes, or to the
creditors or property of COLT or such other obligor, the COLT Indenture Trustee, irrespective of whether the principal of any COLT 20    -SN   Secured Notes shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the COLT Indenture Trustee shall have made any demand pursuant to the provisions of this Section 5.3, shall be entitled and empowered, by intervention in such Proceedings or
otherwise: 
 (i) to file and prove a claim or claims for the whole amount of principal and interest and all
other amounts owing and unpaid in respect of the COLT 20    -SN   Secured Notes, and any CARAT Collection Account Shortfall Amount and to file such other papers or documents as may be necessary or
advisable in order to have the claims of the COLT Indenture Trustee (including any claim for reasonable compensation to the COLT Indenture Trustee and each predecessor trustee, and their respective agents, attorneys and counsel, and for
reimbursement of all expenses and liabilities incurred, and all advances made, by the COLT Indenture Trustee and each predecessor trustee, except as a result of negligence, fraud or bad faith) and of the COLT
20    -SN   Secured Noteholders allowed in such Proceedings; 
 (ii)
unless prohibited by applicable law and regulations, to vote on behalf of the Holders of the COLT 20    -SN   Secured Notes in any election of a trustee, a standby trustee or Person performing similar
functions in any such Proceedings; 
 (iii) to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute all amounts received with respect to the claims of the COLT 20    -SN   Secured Noteholders and of the COLT Indenture Trustee on their behalf; and

 (iv)(iv) to file such proofs of claim and other papers or documents as may be necessary or advisable in order
to have the claims of the COLT Indenture Trustee or the COLT 20    -SN   Secured Noteholders allowed in any judicial proceedings relative to COLT, its creditors and its property; 

 

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 and any trustee, receiver, liquidator, custodian or other similar official in any such Proceeding is hereby
authorized by each of such COLT 20    -SN   Secured Noteholders to make payments to the COLT Indenture Trustee for application in accordance with the priorities set forth in the COLT
20    -SN   Basic Documents, and, if the COLT Indenture Trustee shall consent to the making of payments directly to such COLT 20    -SN   Secured Noteholders, to
pay to the COLT Indenture Trustee such amounts as shall be sufficient to cover reasonable compensation to the COLT Indenture Trustee, each predecessor COLT Indenture Trustee and their respective agents, attorneys and counsel, and all other expenses
and liabilities incurred, and all advances made, by the COLT Indenture Trustee and each predecessor COLT Indenture Trustee except as a result of negligence, fraud or bad faith. 

(e) Nothing herein contained shall be deemed to authorize the COLT Indenture Trustee to authorize or consent to or vote for or accept or
adopt on behalf of any COLT 20    -SN   Secured Noteholder any plan of reorganization, arrangement, adjustment or composition affecting the COLT 20    -SN  
Secured Notes or the rights of any Holder thereof or to authorize the COLT Indenture Trustee to vote in respect of the claim of any COLT 20    -SN   Secured Noteholder in any such Proceeding except, as
aforesaid, to vote for the election of a trustee in bankruptcy or similar Person. 
 (f) All rights of action and of asserting
claims under this COLT Indenture, or under any of the COLT 20    -SN   Secured Notes may be enforced by the COLT Indenture Trustee without the possession of any of the COLT
20    -SN   Secured Notes or the production thereof in any trial or other Proceedings relative thereto, and any such Proceedings instituted by the COLT Indenture Trustee shall be brought in its own name as
trustee of an express trust, and any recovery of judgment, subject to the payment of the expenses, disbursements and compensation of the COLT Indenture Trustee, each predecessor COLT Indenture Trustee and their respective agents and attorneys, shall
be for the benefit of the COLT 20    -SN   Secured Noteholders in accordance with the priorities set forth in the COLT 20    -SN   Basic Documents. 

(g) In any Proceedings brought by the COLT Indenture Trustee (and also any Proceedings involving the interpretation of any provision of
this COLT Indenture to which the COLT Indenture Trustee shall be a party), the COLT Indenture Trustee shall be held to represent all the COLT 20    -SN   Secured Noteholders, and it shall not be necessary
to make any the COLT 20    -SN   Secured Noteholders a party to any such Proceedings. 

(h) With respect to any claims for payments of reimbursement for expenses, disbursement or compensation of any Person made of COLT
pursuant to this Section 5.3, where more than one Person has made such a claim, COLT shall not reimburse any Person other than the COLT Indenture Trustee for such amounts if, prior to incurring such expenses, the affected parties
reasonably could have avoided such expense by coordinating their claims under this COLT Indenture with the COLT Indenture Trustee. 

SECTION 5.4 Remedies; Priorities. 

(a) If an Event of Default shall have occurred and be continuing and the COLT 20    -SN  
Secured Notes have been accelerated under Section 5.2(a), the COLT Indenture Trustee may do one or more of the following (subject to Sections 5.3 and 5.5): 

 

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 (i) institute Proceedings in its own name and as trustee of an express trust
for the collection of all amounts then due and payable on such COLT 20    -SN   Secured Notes, under this COLT Indenture with respect thereto, whether by declaration of acceleration or otherwise, enforce
any judgment obtained, and collect from the COLT 20    -SN   Trust Estate and any other obligor upon such COLT 20    -SN   Secured Notes monies adjudged due;

 (ii) institute Proceedings from time to time for the complete or partial foreclosure of this COLT Indenture
with respect to the COLT 20    -SN   Collateral and of the VAULT Security Agreement with respect to the Pledged Collateral; 

(iii) exercise any remedies of a secured party under the UCC and take any other appropriate action to protect and enforce
the rights and remedies of the COLT Indenture Trustee and the COLT 20    -SN   Secured Noteholders; and 

(iv) sell the COLT 20    -SN   Trust Estate, or any portion thereof or rights
or interest therein, at one or more public or private sales called and conducted in any manner permitted by law or elect to have COLT maintain possession of the COLT 20    -SN   Trust Estate, including the
Series 20    -SN   Lease Assets and continue to apply collections on such Series 20    -SN   Lease Assets as if there had been no declaration of acceleration;
provided, however, that the COLT Indenture Trustee may not sell or otherwise liquidate the COLT 20    -SN   Trust Estate following an Event of Default and acceleration of the COLT
20    -SN   Secured Notes, except as is set forth in Section 3.20, unless (i)(A) the Holders of all of the aggregate Outstanding Amount of the COLT
20    -SN   Secured Notes consent thereto, (B) the proceeds of such sale or liquidation distributable to the Holders of the COLT 20    -SN   Secured Notes
are sufficient to discharge in full the principal of and the accrued interest on the COLT 20    -SN   Secured Notes as of the date of such sale or liquidation and pay any CARAT Collection Account Shortfall
Amount existing on such date (calculated as if such date were a Payment Date) or (C) (x) there has been an Event of Default under Section 5.1(a), (b) or (c) or otherwise arising from a failure to make a required
payment of principal on the COLT 20    -SN   Secured Notes, (y) the COLT Indenture Trustee determines that the COLT 20    -SN   Trust Estate will not
continue to provide sufficient funds for the payment of principal of and interest on the COLT 20    -SN   Secured Notes as and when they would have become due if the COLT
20    -SN   Secured Notes had not been declared due and payable and (z) the COLT Indenture Trustee obtains the consent of the Holders of all of the aggregate Outstanding Amount of the COLT
20    -SN   Secured Notes, and (ii) 10 days’ prior written notice of sale or liquidation has been given to the Rating Agencies by COLT, LLC, provided, however, that COLT, LLC shall have received
such notice from the COLT Indenture Trustee at least two business days prior thereto (if any Rated Notes are outstanding). In determining such sufficiency or insufficiency with respect to clauses (B) and (C), the COLT Indenture
Trustee may, but need not, obtain and rely upon an opinion of an Independent investment banking or accounting firm of national reputation as to the feasibility of such proposed action and as to the sufficiency of the COLT
20    -SN   Trust Estate for such purpose. 
 provided, however, that prior to the exercise of the
right to sell all or any portion of the COLT 20    -SN   Trust Estate as provided herein, the COLT Indenture Trustee shall provide a notice in writing to COLT (with a copy to the Seller) (the “Event
of Default Sale Notice”) of its 
  

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intention to sell all or any portion of the COLT 20    -SN   Trust Estate (the part to be sold being the “Subject Estate”), and if the
Subject Estate is less than all of the COLT 20    -SN   Trust Estate, the portion of the COLT 20    -SN   Trust Estate to be sold. The COLT Indenture Trustee
shall not consummate any sale until at least seven Business Days after the Event of Default Sale Notice has been given to COLT (with a copy to the Seller) (the “Authorization Date”). 

(b) If the COLT Indenture Trustee collects any money or property pursuant to this Article V, it shall pay out the money or property in
the following order: 
 FIRST: to the COLT Indenture Trustee for amounts due under Section 6.7 and
then to the COLT Owner Trustee for amounts due to the COLT Owner Trustee (not including amounts due for payments to the Series 20    -SN   Certificateholder) under Section 6.9 of the
Declaration of Trust; and 
 SECOND: to the COLT Collection Account for distribution in the following priority:
(i) payment in full of the accrued and unpaid interest on the COLT 20    -SN   Secured Notes; (ii) payment in full of unpaid principal balance of the COLT
20    -SN   Secured Notes; (iii) to the CARAT Collection Account towards payment in full of any CARAT Collection Account Shortfall Amounts and (iv) the remainder shall be distributed in
accordance with the instructions of the COLT 20    -SN   Certificateholder. 

SECTION 5.5 Optional Preservation of the Series 20    -SN   Lease Assets. If the COLT
20    -SN   Secured Notes have been declared to be due and payable under Section 5.2 following an Event of Default and such declaration and its consequences have not been rescinded and annulled in
accordance with Section 5.2(b), the COLT Indenture Trustee may, but need not, elect to take and maintain possession of the COLT 20    -SN   Trust Estate. It is the desire of the parties hereto and the
COLT 20    -SN   Secured Noteholders that there be at all times sufficient funds for the payment of principal of and interest on the COLT 20    -SN   Secured
Notes, and the COLT Indenture Trustee shall take such desire into account when determining whether or not to take and maintain possession of the COLT 20    -SN   Trust Estate. In determining whether to
take and maintain possession of the COLT 20    -SN   Trust Estate, the COLT Indenture Trustee may, but need not, obtain and rely upon an opinion of an Independent investment banking or accounting firm of
national reputation as to the feasibility of such proposed action and as to the sufficiency of the COLT 20    -SN   Trust Estate for such purpose. 

SECTION 5.6 Limitation of Suits. No Holder of any COLT 20    -SN   Secured Note shall
have any right to institute any Proceeding, judicial or otherwise, with respect to this COLT Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless: 

(a) such Holder has previously given written notice to the COLT Indenture Trustee of a continuing Event of Default; 

(b) the Holders of not less than 25% of the Outstanding Amount of the COLT 20    -SN  
Secured Notes have made written request to the COLT Indenture Trustee to institute such Proceeding in respect of such Event of Default in its own name as COLT Indenture Trustee hereunder; 

 

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 (c) such Holder or Holders have offered to the COLT Indenture Trustee reasonable indemnity
against the costs, expenses and liabilities to be incurred in complying with such request; 
 (d) the COLT Indenture Trustee for
60 days after the earlier of (x) its receipt of such notice under Section 5.6(a) above, request under Section 5.6(b) above and offer of indemnity under Section 5.6(c) above and (y) any similar notice,
request and offer of indemnity to the CARAT Indenture Trustee under Section 5.6 of the CARAT Indenture, has failed to institute such Proceedings; and 

(e) no direction inconsistent with such written request has been given to the COLT Indenture Trustee during such 60-day period by the
Holders of a majority of the Outstanding Amount of the COLT 20    -SN   Secured Notes; 
 it being
understood and intended that no one or more Holders of the COLT 20    -SN   Secured Notes shall have any right in any manner whatever by virtue of, or by availing of, any provision of this COLT Indenture
to affect, disturb or prejudice the rights of any other Holders of the COLT 20    -SN   Secured Notes or to obtain or to seek to obtain priority or preference over any other Holders of the COLT
20    -SN   Secured Notes or to enforce any right under this COLT Indenture, except in the manner herein provided and for the equal, ratable (on the basis of the respective aggregate amount of principal
and interest, respectively, due and unpaid on the COLT 20    -SN   Secured Note held by such COLT 20    -SN   Secured Noteholder) and common benefit of all
Holders of the COLT 20    -SN   Secured Notes. For the protection and enforcement of the provisions of this Section 5.6, each and every COLT 20    -SN  
Secured Noteholder shall be entitled to such relief as can be given either at law or in equity. 
 If the COLT Indenture Trustee
shall receive conflicting or inconsistent requests and indemnity from two or more groups of Holders of the COLT 20    -SN   Secured Notes, each representing less than a majority of the Outstanding Amount
of the COLT 20    -SN   Secured Notes, the COLT Indenture Trustee shall take the action requested by the group representing the higher percentage of the Outstanding Amount of the COLT
20    -SN   Secured Notes notwithstanding any other provisions of this COLT Indenture. 

SECTION 5.7 Unconditional Rights of the COLT 20    -SN   Secured Noteholders to Receive Principal and
Interest. Notwithstanding any other provisions in this COLT Indenture, the Holder of any COLT 20    -SN   Secured Note shall have the right, which is absolute and unconditional, to receive payment of
the principal of and interest on such COLT 20    -SN   Secured Note on or after the respective due dates thereof expressed in such COLT 20    -SN   Secured Note
or in this COLT Indenture (or in the case of redemptioin, if applicable, on or after the Redemption Date) and to institute suit for the enforcement of any such payment, and such right shall not be impaired without the consent of such Holder.

  

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 SECTION 5.8 Restoration of Rights and Remedies. If the COLT Indenture Trustee or any
COLT 20    -SN   Secured Noteholder has instituted any Proceeding to enforce any right or remedy under this COLT Indenture and such Proceeding has been discontinued or abandoned for any reason or has been
determined adversely to the COLT Indenture Trustee or to such COLT 20    -SN   Secured Noteholder, then and in every such case COLT, the COLT Indenture Trustee and the COLT
20    -SN   Secured Noteholders shall, subject to any determination in such Proceeding, be restored severally to their respective former positions hereunder, and thereafter all rights and remedies of the
COLT Indenture Trustee and the COLT 20    -SN   Secured Noteholders shall continue as though no such Proceeding had been instituted. 

SECTION 5.9 Rights and Remedies Cumulative. No right or remedy herein conferred upon or reserved to the COLT Indenture Trustee or
to the COLT 20    -SN   Secured Noteholders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy. 
 SECTION 5.10 Delay or Omission, Not a Waiver. No delay or omission of the COLT
Indenture Trustee or any Holder of any COLT 20    -SN   Secured Note to exercise any right or remedy accruing upon any Default or Event of Default shall impair any such right or remedy or constitute a
waiver of any such Default or Event of Default or an acquiescence therein. Every right and remedy given by this Article V or by law to the COLT Indenture Trustee or to the COLT 20    -SN   Secured
Noteholders may be exercised from time to time, and as often as may be deemed expedient, by the COLT Indenture Trustee or by the COLT 20    -SN   Secured Noteholders, as the case may be. 

SECTION 5.11 Control by the COLT 20    -SN   Secured Noteholders. The Holders of a majority of the
Outstanding Amount of the COLT 20    -SN   Secured Notes shall, subject to provision being made for indemnification against costs, expenses and liabilities in a form satisfactory to the COLT Indenture
Trustee, have the right to direct the time, method and place of conducting any Proceeding for any remedy available to the COLT Indenture Trustee with respect to the COLT 20    -SN   Secured Notes or
exercising any trust or power conferred on the COLT Indenture Trustee; provided, however, that: 

(a) such direction shall not be in conflict with any rule of law or with this COLT Indenture; 

(b) subject to the express terms of Section 5.4, any direction to the COLT Indenture Trustee to sell or
liquidate the COLT 20    -SN   Trust Estate shall be by the Holders of COLT 20    -SN   Secured Notes representing not less than 100% of the Outstanding Amount
of the COLT 20    -SN   Secured Notes; 
 (c) if the conditions set
forth in Section 5.5 have been satisfied and the COLT Indenture Trustee elects to retain the COLT 20    -SN   Trust Estate pursuant to Section 5.5, then any direction to the COLT
Indenture Trustee by Holders of COLT 20    -SN   Secured Notes representing less than 100% of the Outstanding Amount of the COLT 20    -SN   Secured Notes to
sell or liquidate the COLT 20    -SN   Trust Estate shall be of no force and effect; and 
  

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 (d) the COLT Indenture Trustee may take any other action deemed proper by the COLT Indenture
Trustee that is not inconsistent with such direction; 
 provided, however, that, subject to Section 6.1, the COLT
Indenture Trustee need not take any action that it determines might cause it to incur any liability with respect to which the COLT Indenture Trustee shall have reasonable grounds to believe that adequate indemnity against such liability is not
assured to it or might materially adversely affect the rights of the COLT 20    -SN   Secured Noteholders not consenting to such action. 

SECTION 5.12 Waiver of Past Defaults. 

(a) Prior to the declaration of the acceleration of the maturity of the COLT 20    -SN  
Secured Notes as provided in Section 5.2, the Holders of not less than a majority of the Outstanding Amount of the COLT 20    -SN   Secured Notes may waive any past Default or Event of Default
and its consequences except a Default or Event of Default (i) in the payment of principal of or interest on any of the COLT 20    -SN   Secured Notes or (ii) in respect of a covenant or provision
hereof that cannot be modified or amended without the consent of the Holder of each such COLT 20    -SN   Secured Note. In the case of any such waiver, COLT, the COLT Indenture Trustee and the COLT
20    -SN   Secured Noteholders shall be restored to their respective former positions and rights hereunder; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair
any right consequent thereto. 
 (b) Upon any such waiver, such Default or Event of Default shall cease to exist and be deemed
to have been cured and not to have occurred (and any Event of Default arising from any such Default shall be deemed to have been cured and not to have occurred) for every purpose of this COLT Indenture; but no such waiver shall extend to any
subsequent or other Default or Event of Default or impair any right consequent thereto. 
 SECTION 5.13 Undertaking for
Costs. All parties to this COLT Indenture agree, and each Holder of any COLT 20    -SN   Secured Note by such Holder’s acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any Proceeding for the enforcement of any right or remedy under this COLT Indenture, or in any Proceeding against the COLT Indenture Trustee for any action taken, suffered or omitted by it as COLT Indenture Trustee, the filing
by any party litigant in such Proceeding of an undertaking to pay the costs of such Proceeding, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in
such Proceeding, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section 5.13, shall not apply to: 

(a) any Proceeding instituted by the COLT Indenture Trustee; 

(b) any Proceeding instituted by any COLT 20    -SN   Secured Noteholder or group of COLT
20    -SN   Secured Noteholders holding in the aggregate more than 10% of the Outstanding Amount of the COLT 20    -SN   Secured Notes; or 

(c) any Proceeding instituted by any COLT 20    -SN   Secured Noteholder for the enforcement
of the payment of principal of or interest on any COLT 20    -SN   Secured Note on or after the respective due dates expressed in such COLT 20    -SN   Secured
Note and in this COLT Indenture (or, in the case of redemption, on or after the Redemption Date). 
  

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 SECTION 5.14 Waiver of Stay or Extension Laws. COLT covenants (to the extent that it
may lawfully do so) that it shall not at any time insist upon, or plead or in any manner whatsoever, claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, that may affect the
covenants or the performance of this COLT Indenture. COLT (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it shall not hinder, delay or impede the execution of any power
herein granted to the COLT Indenture Trustee, but shall suffer and permit the execution of every such power as though no such law had been enacted. 

SECTION 5.15 Action on COLT 20    -SN   Secured Notes. The COLT Indenture Trustee’s right to
seek and recover judgment on the COLT 20    -SN   Secured Notes or under this COLT Indenture shall not be affected by the seeking, obtaining or application of any other relief under or with respect to this
COLT Indenture. Neither the lien of this COLT Indenture in the COLT 20    -SN   Collateral or the lien of the VAULT Security Agreement in the Pledged Collateral nor any rights or remedies of the COLT
Indenture Trustee or the COLT 20    -SN   Secured Noteholders shall be impaired by the recovery of any judgment by the COLT Indenture Trustee against COLT or by the levy of any execution under such
judgment upon any portion of the COLT 20    -SN   Trust Estate or upon any of the assets of COLT. Any money or property collected by the COLT Indenture Trustee shall be applied in accordance with
Section 5.4(b). 
 SECTION 5.16 Performance and Enforcement of Certain Obligations. 

(a) Promptly following a request from the COLT Indenture Trustee to do so and at the Servicer’s expense, COLT agrees to take all such
lawful action as the COLT Indenture Trustee may request to compel or secure the performance and observance by the Seller and the Servicer of their respective obligations to COLT under or in connection with the COLT
20    -SN   Basic Documents in accordance with the terms thereof, and to exercise any and all rights, remedies, powers and privileges lawfully available to COLT under or in connection with the COLT
20    -SN   Basic Documents to the extent and in the manner directed by the COLT Indenture Trustee, including the transmission of notices of default on the part of the Seller or the Servicer thereunder and
the institution of legal or administrative actions or proceedings to compel or secure performance by the Seller or the Servicer of each of their obligations under the COLT 20    -SN   Basic Documents.

 (b) If an Event of Default has occurred and is continuing, the COLT Indenture Trustee may, and, at the
direction (which direction shall be in writing or by telephone (confirmed in writing promptly thereafter)) of the Holders of 66 2/
3% of the Outstanding Amount of the COLT 20    -SN   Secured Notes shall, exercise all rights, remedies, powers, privileges
and claims of COLT against the Seller or the Servicer under or in connection with the COLT 20    -SN   Basic Documents, including the right or power to take any action to compel or secure performance or
observance by the Seller or the Servicer of each of their obligations to COLT thereunder and to give any consent, request, notice, direction, approval, extension or waiver under the COLT 20    -SN   Basic
Documents, and any right of COLT to take such action shall be suspended. 
  

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 ARTICLE VI 

THE COLT INDENTURE TRUSTEE 

SECTION 6.1 Duties of COLT Indenture Trustee. 

(a) If an Event of Default has occurred and is continuing, the COLT Indenture Trustee shall exercise the rights and powers vested in it by
this COLT Indenture and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. 

(b) Except during the continuance of an Event of Default, the COLT Indenture Trustee undertakes to perform such duties and only such
duties as are specifically set forth in this COLT Indenture and the COLT Servicing Agreement and no implied covenants or obligations shall be read into this COLT Indenture or the COLT Servicing Agreement against the COLT Indenture Trustee.

 (c) In the absence of bad faith on its part, the COLT Indenture Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the COLT Indenture Trustee and conforming to the requirements of this COLT Indenture; provided, however, that the COLT
Indenture Trustee shall examine the certificates and opinions to determine whether or not they conform to the requirements of this COLT Indenture. 

(d) The COLT Indenture Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its
own willful misconduct or bad faith, except that: 
 (i) this Section 6.1(d) does not limit the
effect of Section 6.1(b); 
 (ii) the COLT Indenture Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer unless it is proved that the COLT Indenture Trustee was negligent in ascertaining the pertinent facts; and 

(iii) the COLT Indenture Trustee shall not be liable with respect to any action it takes or omits to take in good faith in
accordance with a direction received by it pursuant to any provision of this COLT Indenture or any other COLT 20    -SN   Basic Document. 

(e) The COLT Indenture Trustee shall not be liable for interest on any money received by it except as the COLT Indenture Trustee may
agree in writing with COLT. 
 (f) Money held in trust by the COLT Indenture Trustee need not be segregated from other funds
except to the extent required by law or the terms of this COLT Indenture, the COLT Servicing Agreement or the other COLT 20    -SN   Basic Documents. 

 

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 (g) No provision of this COLT Indenture or any other COLT
20    -SN   Basic Document shall require the COLT Indenture Trustee to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties hereunder or in the
exercise of any of its rights or powers, if it shall have reasonable grounds to believe that repayments of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. 

(h) Every provision of this COLT Indenture and each other COLT 20    -SN   Basic Document
relating to the COLT Indenture Trustee shall be subject to the provisions of this Section 6.1 and to the provisions of the TIA. 

(i) The COLT Indenture Trustee shall have no liability or responsibility for the acts or omissions of any other party to any of the COLT
20    -SN   Basic Documents. 
 (j) In no event shall the COLT Indenture Trustee be
liable for any damages in the nature of special, indirect or consequential damages, however styled, including lost profits, even if the COLT Indenture Trustee has been advised of the likelihood of such loss or damage. 

SECTION 6.2 Rights of COLT Indenture Trustee. 

(a) The COLT Indenture Trustee may conclusively rely on any document believed by it to be genuine and to have been signed or presented by
the proper Person. The COLT Indenture Trustee need not investigate any fact or matter stated in the document. 
 (b) Before the
COLT Indenture Trustee acts or refrains from acting, it may require an Officer’s Certificate or an Opinion of Counsel. The COLT Indenture Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such
Officer’s Certificate or Opinion of Counsel. 
 (c) The COLT Indenture Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through agents or attorneys or a custodian or nominee, and the COLT Indenture Trustee shall not be responsible for any misconduct or negligence on the part of, or for the supervision
of, any such agent, attorney, custodian or nominee appointed with due care by it hereunder. 
 (d) The COLT Indenture Trustee
shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers; provided, however, that the COLT Indenture Trustee’s conduct does not constitute willful
misconduct, negligence or bad faith. 
 (e) The COLT Indenture Trustee may consult with counsel, and the advice or opinion of
counsel with respect to legal matters relating to this COLT Indenture and the COLT 20    -SN   Secured Notes shall be full and complete authorization and protection from liability in respect to any action
taken, omitted or suffered by it hereunder in good faith and in accordance with the advice or opinion of such counsel. 
 (f)
The COLT Indenture Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this COLT Indenture at the request or direction of any of the Holders pursuant to this COLT Indenture, unless such Holders shall have
offered to the COLT Indenture Trustee security or indemnity satisfactory to the COLT Indenture Trustee against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction. 

 

 35 

 (g) The COLT Indenture Trustee shall not be bound to make any investigation into the facts
or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the COLT Indenture Trustee,
in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit. 
 (h) The COLT
Indenture Trustee shall not be deemed to have notice of any Default, Event of Default or Servicer Default unless a Responsible Officer of the COLT Indenture Trustee has actual knowledge thereof or unless written notice of any event which is in fact
such a default is received by the COLT Indenture Trustee at the Corporate Trust Office of the COLT Indenture Trustee, and such notice references the COLT 20    -SN   Secured Notes and this COLT Indenture.

 (i) The rights, privileges, protections, immunities and benefits given to the COLT Indenture Trustee, including, its right to
be indemnified, are extended to, and shall be enforceable by, the COLT Indenture Trustee in each of its capacities hereunder. 

SECTION 6.3 COLT Indenture Trustee May Own COLT 20    -SN   Secured Notes. The COLT Indenture
Trustee in its individual or any other capacity may become the owner or pledgee of COLT 20    -SN   Secured Notes and the Secured Notes of any other Series and may otherwise deal with COLT, the Servicer or
any of their respective Affiliates with the same rights it would have if it were not COLT Indenture Trustee; provided, however, that the COLT Indenture Trustee shall comply with Sections 6.10. Any Paying Agent, Secured Note
Registrar, co-registrar or co-paying agent may do the same with like rights. 
 SECTION 6.4 COLT Indenture Trustee’s
Disclaimer. The COLT Indenture Trustee shall not be responsible for and makes no representation as to the validity or adequacy of any COLT 20    -SN   Basic Document, including this COLT Indenture or
the COLT 20    -SN   Secured Notes, it shall not be accountable for COLT’s use of the proceeds from the COLT 20    -SN   Secured Notes, and it shall not be
responsible for any statement of COLT in the COLT Indenture or in any document issued in connection with the sale of any COLT 20    -SN   Secured Notes or in the COLT
20    -SN   Secured Notes other than the COLT Indenture Trustee’s certificate of authentication. 

SECTION 6.5 Notice of Default. If a Default occurs and is continuing and if it is known to the COLT Indenture Trustee, the COLT
Indenture Trustee shall mail to each COLT 20    -SN   Secured Noteholder notice of the Default within 90 days after it occurs. Except in the case of a Default in payment of principal or of interest on any
COLT 20    -SN   Secured Note, the COLT Indenture Trustee may withhold the notice if and so long as it in good faith determines that withholding the notice is in the interest of the COLT
20    -SN   Secured Noteholders. 
  

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 SECTION 6.6 Reports by COLT Indenture Trustee. 

(a) To the extent any COLT 20    -SN   Secured Noteholder does not receive such documents or
information directly, the COLT Indenture Trustee shall deliver to each such COLT 20    -SN   Secured Noteholder, as applicable, the documents and information set forth in Article VII, and, in
addition, all such information with respect to the COLT 20    -SN   Secured Notes as may be required to enable such Holder to prepare its federal and state income tax returns. 

(b) The COLT Indenture Trustee shall: 

(i) deliver to COLT, CARI, the COLT Owner Trustee, the CARAT Owner Trustee and the Servicer a report of its assessment of
compliance with the minimum Servicing Criteria regarding general servicing, cash and collection administration, investor remittances and reporting, and pool asset administration during the preceding calendar year, including disclosure of any
material instance of non-compliance identified by the COLT Indenture Trustee, as required by Rule 13a-18 and Rule 15d-18 of the Exchange Act, and Item 1122 of Regulation AB under the Securities Act; 

(ii) cause a firm of registered public accountants that is qualified and independent within the meaning of Rule 2-01 of
Regulation S-X under the Securities Act to deliver to COLT, CARI, the COLT Owner Trustee, the CARAT Owner Trustee and the Servicer an attestation report that satisfies the requirements of Rule 13a-18 or Rule 15d-18 under the Exchange Act, as
applicable, on the assessment of compliance with Servicing Criteria with respect to the prior calendar year for inclusion in COLT’s or the Trust’s 10-K filing; such attestation report shall be in accordance with Rule 1-02(a)(3) and Rule
2-02(g) of Regulation S-X under the Securities Act and the Exchange Act; and 
 (iii) deliver to COLT, CARI and
any other Person that will be responsible for signing the certification (a “Sarbanes Certification”) required by Rule 13a-14(d) and Rule 15d-14(d) under the Exchange Act (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002) on
behalf of COLT, CARI or the Trust with respect to the CARAT 20    -SN   securitization transaction a certification substantially in the form attached hereto as Exhibit B or such form as mutually agreed
upon by COLT, CARI and the COLT Indenture Trustee; the COLT Indenture Trustee acknowledges that the parties identified in this clause (iii) may rely on the certification provided by the COLT Indenture Trustee pursuant to such clause in signing
a Sarbanes Certification and filing such with the Commission. 
 (c) The reports referred to in Section 6.6(b) shall be
delivered on or before March 15 of each year that a 10-K filing is required to be filed by COLT or the Trust, beginning March 15, 20    . 

SECTION 6.7 Compensation; Indemnity. 

(a) COLT shall cause the Servicer to pay to the COLT Indenture Trustee from time to time such compensation for its services as is set
forth in the COLT Servicing Agreement. 
  

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 The COLT Indenture Trustee’s compensation shall not be limited by any law on compensation of a trustee
of an express trust. COLT shall cause the Servicer pursuant to the COLT Servicing Agreement to reimburse the COLT Indenture Trustee for all reasonable out-of-pocket expenses incurred or made by it, including costs of collection, in addition to the
compensation for its services. Such expenses shall include the reasonable compensation and expenses, disbursements and advances of the COLT Indenture Trustee’s agents, external counsel, accountants and experts. COLT shall cause the Servicer to
indemnify the COLT Indenture Trustee in accordance with the COLT Servicing Agreement. 
 (b) COLT’s obligations to the COLT
Indenture Trustee pursuant to Section 6.7(a) shall survive the discharge of this COLT Indenture. When the COLT Indenture Trustee incurs expenses after the occurrence of a Default specified in Section 5.1(e) or (f), the
expenses are intended to constitute expenses of administration under Title 11 of the United States Code or any other applicable federal or state bankruptcy, insolvency or similar law. 

SECTION 6.8 Replacement of COLT Indenture Trustee. 

(a) The COLT Indenture Trustee may at any time give notice of its intent to resign by so notifying COLT and the COLT
20    -SN   Secured Noteholders; provided, however, that no such resignation shall become effective and the COLT Indenture Trustee shall not resign prior to the time set forth in
Section 6.8(c). The Holders of a majority of the Outstanding Amount of the COLT 20    -SN   Secured Notes may remove the COLT Indenture Trustee by so notifying the COLT Indenture Trustee and
may appoint a successor COLT Indenture Trustee. Such resignation or removal shall become effective in accordance with Section 6.8(c). COLT shall remove the COLT Indenture Trustee if: 

(i) the COLT Indenture Trustee fails to comply with Section 6.11; 

(ii) the COLT Indenture Trustee is adjudged bankrupt or insolvent; 

(iii) a receiver or other public officer takes charge of the COLT Indenture Trustee or its property; or 

(iv) the COLT Indenture Trustee otherwise becomes incapable of acting. 

(b) If the COLT Indenture Trustee gives notice of its intent to resign or is removed or if a vacancy exists in the office of COLT
Indenture Trustee for any reason (the COLT Indenture Trustee in such event being referred to herein as the retiring COLT Indenture Trustee), COLT shall promptly appoint and designate a successor COLT Indenture Trustee. 

(c) A successor COLT Indenture Trustee shall deliver a written acceptance of its appointment and designation to the retiring COLT
Indenture Trustee and to COLT. Thereupon the resignation or removal of the retiring COLT Indenture Trustee shall become effective, and the successor COLT Indenture Trustee shall have all the rights, powers and duties of the COLT Indenture Trustee
under this COLT Indenture. The successor COLT Indenture Trustee shall mail a notice of its succession to the COLT 20    -SN   Secured Noteholders. The retiring COLT Indenture Trustee shall promptly
transfer all property held by it as COLT Indenture Trustee to the successor COLT Indenture Trustee. 
  

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 (d) If a successor COLT Indenture Trustee does not take office within 60 days after the
retiring COLT Indenture Trustee gives notice of its intent to resign or is removed, the retiring COLT Indenture Trustee, COLT or the Holders of a majority of the Outstanding Amount of the COLT 20    -SN  
Secured Notes may petition any court of competent jurisdiction for the appointment and designation of a successor COLT Indenture Trustee. 

(e) If the COLT Indenture Trustee fails to comply with Section 6.11, any COLT
20    -SN   Secured Noteholder may petition any court of competent jurisdiction for the removal of the COLT Indenture Trustee and the appointment of a successor COLT Indenture Trustee. 

(f) Notwithstanding the replacement of the COLT Indenture Trustee pursuant to this Section 6.8, COLT’s obligations under
Section 6.7 and the Servicer’s corresponding obligations under the COLT Servicing Agreement shall continue for the benefit of the retiring COLT Indenture Trustee. 

SECTION 6.9 Merger or Consolidation of COLT Indenture Trustee. 

(a) Any corporation into which the COLT Indenture Trustee may be merged or with which it may be consolidated, or any corporation resulting
from any merger or consolidation to which the COLT Indenture Trustee shall be a party, or any corporation succeeding to the corporate trust business of the COLT Indenture Trustee, shall be the successor of the COLT Indenture Trustee under this COLT
Indenture; provided, however, that such corporation shall be eligible under the provisions of Section 6.11, without the execution or filing of any instrument or any further act on the part of any of the parties to this COLT
Indenture, anything in this COLT Indenture to the contrary notwithstanding. 
 (b) If at the time such successor or successors
by merger or consolidation to the COLT Indenture Trustee shall succeed to the trusts created by this COLT Indenture, any of the COLT 20    -SN   Secured Notes shall have been authenticated but not
delivered, any such successor to the COLT Indenture Trustee may adopt the certificate of authentication of any predecessor trustee, and deliver such COLT 20    -SN   Secured Notes so authenticated; and in
case at that time any of the COLT 20    -SN   Secured Notes shall not have been authenticated, any successor to the COLT Indenture Trustee may authenticate such COLT
20    -SN   Secured Notes either in the name of any predecessor hereunder or in the name of the successor to the COLT Indenture Trustee. In all such cases such certificate of authentication shall have the
same full force as is provided anywhere in the COLT 20    -SN   Secured Notes or herein with respect to the certificate of authentication of the COLT Indenture Trustee. 

SECTION 6.10 Appointment of Co-COLT Indenture Trustee or Separate COLT Indenture Trustee. 

(a) Notwithstanding any other provisions of this COLT Indenture, at any time, for the purpose of meeting any legal requirement of any
jurisdiction in which any part of the COLT 20    -SN   Trust Estate may at the time be located, the COLT Indenture Trustee shall have 

 

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the power and may execute and deliver all instruments to appoint one or more Persons to act as a co-trustee or co-trustees, jointly with the COLT Indenture Trustee, or separate indenture
trustees, of all or any part of the COLT 20    -SN   Trust Estate and to vest in such Person or Persons, in such capacity and for the benefit of the COLT
20    -SN   Secured Noteholders, such title to the COLT 20    -SN   Trust Estate, or any part hereof, and, subject to the other provisions of this
Section 6.10, such powers, duties, obligations, rights and trusts as the COLT Indenture Trustee may consider necessary or desirable. No co-indenture trustee or separate indenture trustee hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 6.11 and no notice to COLT 20    -SN   Secured Noteholders of the appointment of any co-indenture trustee or separate indenture trustee shall be
required under Section 6.8. 
 (b) Every separate indenture trustee and co-indenture trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and conditions: 
 (i) all rights,
powers, duties and obligations conferred or imposed upon the COLT Indenture Trustee shall be conferred or imposed upon and exercised or performed by the COLT Indenture Trustee and such separate trustee or co-trustee jointly (it being understood that
such separate indenture trustee or co-indenture trustee is not authorized to act separately without the COLT Indenture Trustee joining in such act), except to the extent that under any law of any jurisdiction in which any particular act or acts are
to be performed the COLT Indenture Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties and obligations (including the holding of title to the COLT
20    -SN   Trust Estate or any portion thereof in any such jurisdiction) shall be exercised and performed singly by such separate trustee or co-trustee, but solely at the direction of the COLT Indenture
Trustee; 
 (ii) no co-indenture trustee or separate indenture trustee hereunder shall be personally liable by
reason of any act or omission of any other co-indenture trustee or separate indenture trustee hereunder; and 

(iii) the COLT Indenture Trustee may at any time accept the resignation of or remove any separate indenture trustee or
co-indenture trustee. 
 (c) Any notice, request or other writing given to the COLT Indenture Trustee shall be deemed to have
been given to each of the then separate indenture trustees and co-indenture trustees, as effectively as if given to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this COLT Indenture and the conditions of
this Article VI. Each separate indenture trustee and co-indenture trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the COLT
Indenture Trustee or separately, as may be provided therein, subject to all the provisions of this COLT Indenture, specifically including every provision of this COLT Indenture relating to the conduct of, affecting the liability of, or affording
protection to, the COLT Indenture Trustee. Every such instrument shall be filed with the COLT Indenture Trustee. 
  

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 (d) Any separate indenture trustee or co-indenture trustee may at any time appoint the COLT
Indenture Trustee as its agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any lawful act under or in respect of this COLT Indenture on its behalf and in its name. If any separate indenture trustee
or co-indenture trustee shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the COLT Indenture Trustee, to the extent permitted by law, without
the appointment of a new or successor co-indenture trustee or successor indenture trustee. 
 SECTION 6.11 Eligibility;
Disqualification. The COLT Indenture Trustee shall at all times satisfy the requirements of TIA § 310(a). The COLT Indenture Trustee shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published
annual report of condition and (unless waived by Moody’s, if Moody’s is rating the COLT 20    -SN   Secured Notes) it shall have a long term unsecured debt rating of Baa3 or better by
Moody’s. The COLT Indenture Trustee shall comply with TIA § 310(b); provided, however, that there shall be excluded from the operation of TIA § 310(b)(1) any indenture or indentures under which other securities of COLT
are outstanding if the requirements for such exclusion set forth in TIA § 310(b)(1) are met. 
 SECTION 6.12
Preferential Collection of Claims Against COLT. The COLT Indenture Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A trustee who has resigned or been removed shall be subject to
TIA § 311(a) to the extent indicated therein. 
 SECTION 6.13 Representations and Warranties of COLT Indenture
Trustee. The COLT Indenture Trustee represents and warrants as of the Series 20    -SN   Closing Date that: 

(a) the COLT Indenture Trustee (i) is a national banking association duly organized, validly existing and in good standing under the
laws of the United States of America and (ii) satisfies the eligibility requirements set forth in Section 6.11; 

(b) the COLT Indenture Trustee has full power, authority and legal right to execute, deliver and perform this COLT Indenture and any
other COLT 20    -SN   Basic Document to which it is a party, and has taken all necessary action to authorize the execution, delivery and performance by it of this COLT Indenture and any other COLT
20    -SN   Basic Document to which it is a party; 
 (c) the execution, delivery
and performance by the COLT Indenture Trustee of this COLT Indenture and any other COLT 20    -SN   Basic Document to which it is a party (i) shall not violate any provision of any law or regulation
governing the banking and trust powers of the COLT Indenture Trustee or any order, writ, judgment or decree of any court, arbitrator, or Governmental Authority applicable to the COLT Indenture Trustee or any of its assets, (ii) shall not
violate any provision of the corporate charter or by-laws of the COLT Indenture Trustee and (iii) shall not violate any provision of, or constitute, with or without notice or lapse of time, a default under, or result in the creation or
imposition of any Lien on any properties included in the COLT 20    -SN   Trust Estate pursuant to the provisions of any mortgage, indenture, contract,

  

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agreement or other undertaking to which it is a party, which violation, default or Lien could reasonably be expected to have a materially adverse effect on the COLT Indenture Trustee’s
performance or ability to perform its duties under this COLT Indenture and any other COLT 20    -SN   Basic Document to which it is a party or on the transactions contemplated hereunder and thereunder;

 (d) the execution, delivery and performance by the COLT Indenture Trustee of this COLT Indenture and any other COLT
20    -SN   Basic Document to which it is a party shall not require the authorization, consent or approval of, the giving of notice to, the filing or registration with, or the taking of any other action in
respect of, any Governmental Authority or agency regulating the banking and corporate trust activities of the COLT Indenture Trustee; and 

(e) this COLT Indenture and any other COLT 20    -SN   Basic Document to which it is a party
have been duly executed and delivered by the COLT Indenture Trustee and constitutes the legal, valid and binding agreement of the COLT Indenture Trustee, enforceable in accordance with their terms. 

SECTION 6.14 COLT Indenture Trustee May Enforce Claims Without Possession of COLT 20    -SN   Secured
Notes. All rights of action and claims under this COLT Indenture or the COLT 20    -SN   Secured Notes may be prosecuted and enforced by the COLT Indenture Trustee without the possession of any of the
COLT 20    -SN   Secured Notes or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the COLT Indenture Trustee shall be brought in its own name as COLT
Indenture Trustee. Any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the COLT Indenture Trustee, its agents and counsel, be for the ratable benefit of the COLT
20    -SN   Secured Noteholders in respect of which such judgment has been obtained. 

SECTION 6.15 Suit for Enforcement. If an Event of Default shall occur and be continuing, the COLT Indenture Trustee, in its
discretion may, subject to the provisions of Section 6.1, proceed to protect and enforce its rights and the rights of the COLT 20    -SN   Secured Noteholders under this COLT Indenture by a
Proceeding whether for the specific performance of any covenant or agreement contained in this COLT Indenture or in aid of the execution of any power granted in this COLT Indenture or for the enforcement of any other legal, equitable or other remedy
as the COLT Indenture Trustee, being advised by counsel, shall deem necessary to protect and enforce any of the rights of the COLT Indenture Trustee or the COLT 20    -SN   Secured Noteholders. 

SECTION 6.16 Rights of COLT 20    -SN   Secured Noteholders to Direct COLT Indenture Trustee. The
Holders of not less than a majority of the Outstanding Amount of the COLT 20    -SN   Secured Notes, shall have the right to direct the time, method and place of conducting any Proceeding for any remedy
available to the COLT Indenture Trustee or exercising any trust or power conferred on the COLT Indenture Trustee; provided, however, that subject to Section 6.1, the COLT Indenture Trustee shall have the right to decline to
follow any such direction if the COLT Indenture Trustee being advised by counsel determines that the action so directed may not lawfully be taken, or if the COLT Indenture Trustee in good faith shall, by a Responsible Officer, determine that the
proceedings so directed would be illegal or 
  

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subject it to personal liability; and provided, further, that nothing in this COLT Indenture shall impair the right of the COLT Indenture Trustee to take any action deemed proper by
the COLT Indenture Trustee and which is not inconsistent with such direction by the COLT 20    -SN   Secured Noteholders. 

ARTICLE VII 
 COLT
20    -SN   SECURED NOTEHOLDERS’ LISTS AND REPORTS 
 SECTION 7.1 COLT to
Furnish COLT Indenture Trustee Names and Addresses of COLT 20    -SN   Secured Noteholders. COLT shall furnish or cause to be furnished by the Servicer to the COLT Indenture Trustee (a) not more than five days
before each Payment Date, a list, in such form as the COLT Indenture Trustee may reasonably require, of the names and addresses of the Holders of COLT 20    -SN   Secured Notes as of the close of business
on the related Record Date, and (b) at such other times as the COLT Indenture Trustee may request in writing, within 14 days after receipt by COLT of any such request, a list of similar form and content as of a date not more than 10 days prior
to the time such list is furnished; provided, however, that so long as the COLT Indenture Trustee is the Secured Note Registrar, no such list shall be required to be furnished. 

SECTION 7.2 Preservation of Information, Communications to COLT 20    -SN   Secured Noteholders.

 (a) The COLT Indenture Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of
the Holders of COLT 20    -SN   Secured Notes contained in the most recent list furnished to the COLT Indenture Trustee as provided in Section 7.1 and the names and addresses of Holders of COLT
20    -SN   Secured Notes received by the COLT Indenture Trustee in its capacity as Secured Note Registrar. The COLT Indenture Trustee may destroy any list furnished to it as provided in such
Section 7.1 upon receipt of a new list so furnished. 
 (b) COLT
20    -SN   Secured Noteholders may communicate pursuant to TIA § 312(b) with other COLT 20    -SN   Secured Noteholders with respect to their rights under
this COLT Indenture or under the COLT 20    -SN   Secured Notes. 
 (c) COLT, the
COLT Indenture Trustee and the Secured Note Registrar shall have the protection of TIA § 312(c). 
 SECTION 7.3 Reports
by COLT 
 (a) COLT shall: 

(i) file with the COLT Indenture Trustee within 15 days after COLT is required to file the same with the Commission,
copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) which COLT may be required to file with
the Commission pursuant to Section 13 or 15(d) of the Exchange Act or Item 1122 of Regulation AB; 
  

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 (ii) file with the COLT Indenture Trustee and the Commission in accordance
with rules and regulations prescribed from time to time by the Commission such additional information, documents and reports with respect to compliance by COLT with the conditions and covenants of this COLT Indenture as may be required from time to
time by such rules and regulations; and 
 (iii) supply to the COLT Indenture Trustee (and the COLT Indenture
Trustee shall transmit by mail to all COLT 20    -SN   Secured Noteholders described in TIA § 313(c)) such summaries of any information, documents and reports required to be filed by the Issuer
pursuant to clauses (i) and (ii) of this Section 7.3(a) as may be required by rules and regulations prescribed from time to time by the Commission. 

(b) Unless COLT otherwise determines, the fiscal year of COLT shall end on December 31 of such year. 

SECTION 7.4 Reports by Trustee. If required by TIA § 313(a),within 60 days after each August 15, beginning with
August 15, 20    , the COLT Indenture Trustee shall mail to each COLT 20    -SN   Secured Noteholder as required by TIA § 313(c) a brief report dated as of such date
that complies with TIA § 313(a). The COLT Indenture Trustee also shall comply with TIA § 313(b). A copy of any report delivered pursuant to this Section 7.4(a) shall, at the time of its mailing to COLT
20    -SN   Secured Noteholders, be filed by the COLT Indenture Trustee with the Commission and each stock exchange, if any, on which the COLT 20    -SN  
Secured Notes are listed. COLT shall notify the COLT Indenture Trustee if and when the COLT 20    -SN   Secured Notes are listed on any stock exchange. 

ARTICLE VIII 

ACCOUNTS, DISBURSEMENTS AND RELEASES 

SECTION 8.1 Collection of Money. Except as otherwise expressly provided herein, the COLT Indenture Trustee may demand payment or
delivery of, and shall receive and collect, directly and without intervention or assistance of any fiscal agent or other intermediary, all money and other property payable to or receivable by the COLT Indenture Trustee pursuant to this COLT
Indenture and the COLT 20    -SN   Basic Documents. The COLT Indenture Trustee shall apply all such money received by it with respect to the COLT 20    -SN  
Trust Estate as provided in this COLT Indenture, the COLT Servicing Agreement and any other COLT 20    -SN   Basic Document to which it is a party. Except as otherwise expressly provided in this COLT
Indenture, if any default occurs in the making of any payment or performance under any agreement or instrument that is part of the COLT 20    -SN   Trust Estate, the COLT Indenture Trustee may take such
action as may be appropriate to enforce such payment or performance, including the institution and prosecution of appropriate Proceedings. Any such action shall be without prejudice to any right to claim an Event of Default under this COLT Indenture
and any right to proceed thereafter as provided in Article V. 
 SECTION 8.2 Designated Accounts; Allocations;
Payments. 
 (a) On or prior to the Series 20    -SN   Closing Date, COLT shall
cause the Servicer to establish and maintain, in the name of the COLT Indenture Trustee, for the benefit of the COLT 20    -SN   Secured Noteholders, the Designated Accounts in accordance with the COLT
Servicing Agreement. 
  

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 (b) On or before each Payment Date, (i) amounts shall be deposited in the COLT
Collection Account as provided in Section 3.03(a) and (b) of the COLT Servicing Agreement and (ii) the Aggregate Secured Note Interest Distributable Amount for such Payment Date, the Secured Note Principal Distributable Amount
for such Payment Date and all other amounts payable on such Payment Date pursuant to Section 3.03(c) of the COLT Servicing Agreement, shall be transferred from the COLT Collection Account to the COLT
20    -SN   Secured Noteholders and the CARAT Collection Account, as applicable, as and to the extent provided in Section 3.03(c) of the COLT Servicing Agreement. 

SECTION 8.3 General Provisions Regarding Designated Accounts. 

(a) So long as no Default or Event of Default shall have occurred and be continuing, all or a portion of the funds in the Designated
Accounts shall be invested in Eligible Investments and reinvested by the COLT Indenture Trustee upon a COLT Order, subject to the provisions of the COLT Servicing Agreement. COLT shall not direct the COLT Indenture Trustee to make any investment of
any funds or to sell any investment held in any of the Designated Accounts unless the security interest granted and perfected in such account shall continue to be perfected in such investment or the proceeds of such sale, in either case without any
further action by any Person, and, in connection with any direction to the COLT Indenture Trustee to make any such investment or sale, if requested by the COLT Indenture Trustee, COLT shall deliver to the COLT Indenture Trustee an Opinion of Counsel
acceptable to the COLT Indenture Trustee, to such effect. 
 (b) Subject to Section 6.1(c), the COLT Indenture
Trustee shall not in any way be held liable by reason of any insufficiency in any of the Designated Accounts resulting from any loss on any Eligible Investment included therein except for losses attributable to the COLT Indenture Trustee’s
failure to make payments on such Eligible Investments issued by the COLT Indenture Trustee, in its commercial capacity as principal obligor and not as trustee, in accordance with their terms. 

(c) If (i) COLT shall have failed to give written investment directions for any funds on deposit in the Designated Accounts to the
COLT Indenture Trustee by 11:00 A.M., New York City time (or such other time as may be agreed by COLT and the COLT Indenture Trustee) on any Business Day or (ii) a Default or Event of Default shall have occurred and be continuing with respect
to the COLT 20    -SN   Secured Notes but the COLT 20    -SN   Secured Notes shall not have been declared due and payable pursuant to Section 5.2, or
(iii) if the COLT 20    -SN   Secured Notes shall have been declared due and payable following an Event of Default, but amounts collected or receivable from the COLT
20    -SN   Trust Estate are being applied in accordance with Section 5.5 as if there had not been such a declaration, then the COLT Indenture Trustee shall, to the fullest extent practicable,
invest and reinvest funds in the Designated Accounts in [Goldman Sachs Financial Square Prime Obligations Fund, Institutional Shares, # 462.]” 
  

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 SECTION 8.4 Release of the COLT 20    -SN   Trust
Estate. 
 (a) Subject to the payment of its fees and expenses pursuant to Section 6.7, the COLT Indenture
Trustee may, and when required by the provisions of this COLT Indenture shall, execute instruments to release property from the Lien of this COLT Indenture, or convey the COLT Indenture Trustee’s interest in the same, in a manner and under
circumstances that are consistent with the provisions of this COLT Indenture. No party relying upon an instrument executed by the COLT Indenture Trustee as provided in this Article VIII, shall be bound to ascertain the COLT Indenture
Trustee’s authority, inquire into the satisfaction of any conditions precedent or see to the application of any monies. 

(b) The COLT Indenture Trustee shall, at such time as there are no COLT 20    -SN   Secured
Notes Outstanding and all sums due to the COLT Indenture Trustee pursuant to Section 6.7 and any CARAT Collection Account Shortfall Amounts pursuant to Section 3.03(c) of the COLT Servicing Agreement have been paid, notify
COLT thereof in writing and upon receipt of a COLT Request, release any remaining portion of the COLT 20    -SN   Trust Estate that secured the COLT 20    -SN  
Secured Notes from the Lien of this COLT Indenture and release to COLT or any other Person entitled thereto any funds then on deposit in the Designated Accounts. The COLT Indenture Trustee shall release property from the lien of this COLT Indenture
pursuant to this Section 8.4(b) only upon receipt by it of a COLT Request, an Officer’s Certificate and an Opinion of Counsel and (if required by the TIA) Independent Certificate in accordance with TIA §§ 314(c) and
314(d)(1) meeting the applicable requirements of Section 11.1. 
 SECTION 8.5 Opinion of Counsel. The COLT
Indenture Trustee shall receive at least seven days’ notice when requested by COLT to take any action pursuant to Section 8.4, accompanied by copies of any instruments involved, and the COLT Indenture Trustee shall also require as a
condition to such action, an Opinion of Counsel, in form and substance satisfactory to the COLT Indenture Trustee, stating the legal effect of any such action, outlining the steps required to complete the same, and concluding that all conditions
precedent to the taking of such action have been complied with and such action shall not materially and adversely impair the security for the COLT 20    -SN   Secured Notes or the rights of the COLT
20    -SN   Secured Noteholders in contravention of the provisions of this COLT Indenture; provided, however, that such Opinion of Counsel shall not be required to express an opinion as to
the fair value of the COLT 20    -SN   Trust Estate. Counsel rendering any such opinion may rely, without independent investigation, on the accuracy and validity of any certificate or other instrument
delivered to the COLT Indenture Trustee pursuant to the provisions of this COLT Indenture in connection with any such action. 

ARTICLE IX 

SUPPLEMENTAL INDENTURES 

SECTION 9.1 Supplemental Indentures Without Consent of COLT 20    -SN   Secured Noteholders.

 (a) Without the consent of the Holders of any COLT 20    -SN   Secured Notes but
with prior notice to the Rating Agencies by COLT (if any Rated Notes are outstanding), COLT and the COLT Indenture Trustee, when authorized by a COLT Order, at any time and from time to time, may enter into one or more indentures supplemental hereto
(which shall conform to the 
  

 46 

 
provisions of the Trust Indenture Act as in force at the date of the execution thereof), in form satisfactory to the COLT Indenture Trustee, for any of the following purposes: 

(i) to correct or amplify the description of any property at any time subject to the lien of this COLT Indenture, or
better to assure, convey and confirm unto the COLT Indenture Trustee any property subject or required to be subjected to the Lien of this COLT Indenture, or to subject additional property to the Lien of this COLT Indenture; 

(ii) to evidence the succession, in compliance with Section 3.11 and the applicable provisions hereof, of
another Person to COLT, and the assumption by any such successor of the covenants of COLT contained herein and in the COLT 20    -SN   Secured Notes; 

(iii) to add to the covenants of COLT for the benefit of the COLT 20    -SN  
Secured Noteholders or to surrender any right or power herein conferred upon COLT; 
 (iv) to convey, transfer,
assign, mortgage or pledge any property to or with the COLT Indenture Trustee; 
 (v) to cure any ambiguity or to
correct or supplement any provision herein or in any supplemental indenture which may be inconsistent with any other provision herein or in any supplemental indenture or in any COLT 20    -SN   Basic
Document; 
 (vi) to evidence and provide for the acceptance of the appointment hereunder by a successor or
additional indenture trustee with respect to the COLT 20    -SN   Secured Notes and the COLT Indenture and to add to or change any of the provisions of this COLT Indenture as shall be necessary to
facilitate the administration of the trust hereunder by more than one indenture trustee, pursuant to the requirements of Article VI; or 

(vii) to modify, eliminate or add to the provisions of this COLT Indenture to such extent as shall be necessary to effect
the qualification of this COLT Indenture under the TIA or under any similar federal statute hereafter enacted and to add to this COLT Indenture such other provisions as may be expressly required by the TIA, and the COLT Indenture Trustee is hereby
authorized to join in the execution of any such supplemental indenture and to make any further appropriate agreements and stipulations that may be therein contained. 

(b) COLT and the COLT Indenture Trustee, when authorized by a COLT Order, may, also without the consent of any of the COLT
20    -SN   Secured Noteholders but with prior notice to the Rating Agencies by COLT (if any Rated Notes are outstanding), at any time and from time to time enter into one or more indentures supplemental
hereto for the purpose of adding any provisions to, changing in any manner, or eliminating any of the provisions of, this COLT Indenture or modifying in any manner the rights of the COLT 20    -SN  
Secured Noteholders under this COLT Indenture; provided, however, that such action shall not, as evidenced by an Opinion of Counsel, adversely affect in any material respect the interests of any COLT
20    -SN   Secured Noteholder unless such COLT 20    -SN   Secured Noteholder’s consent is obtained. 

 

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 SECTION 9.2 Supplemental Indentures with Consent of COLT
20    -SN   Secured Noteholders. 
 (a) COLT and the COLT Indenture Trustee, when authorized by
a COLT Order, also may, with prior notice to the Rating Agencies by COLT (if any Rated Notes are outstanding) and with the written consent of the Holders of not less than a majority of the Outstanding Amount of COLT
20    -SN   Secured Notes affected in any material respect thereby, by Act of such Holders delivered to COLT and the COLT Indenture Trustee, enter into an indenture or indentures supplemental hereto for
the purpose of adding any provisions to, changing in any manner, or eliminating any of the provisions of, this COLT Indenture or modifying in any manner the rights of the COLT 20    -SN   Secured
Noteholders under this COLT Indenture; provided, however, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding COLT 20    -SN   Secured Note
affected thereby: 
 (i) change the due date of any installment of principal of or interest on any COLT
20    -SN   Secured Note, or reduce the principal amount thereof, the interest rate applicable thereto, change any place of payment where, or the coin or currency in which, any COLT
20    -SN   Secured Note or any interest thereon is payable, or impair the right to institute suit for the enforcement of the provisions of this COLT Indenture requiring the application of funds available
therefor, as provided in Article V, to the payment of any such amount due on the COLT 20    -SN   Secured Notes on or after the respective due dates thereof; 

(ii) reduce the percentage of the Outstanding Amount of the COLT 20    -SN  
Secured Notes, the consent of the Holders of which is required for any such supplemental indenture or the consent of the Holders of which is required for any waiver of compliance with certain provisions of this COLT Indenture or certain defaults
hereunder and their consequences as provided for in this COLT Indenture; 
 (iii) modify or alter the provisions
of the proviso to the definition of the term “Outstanding”; 
 (iv) reduce the percentage of the
Outstanding Amount of the COLT 20    -SN   Secured Notes required to direct the COLT Indenture Trustee to sell or liquidate the COLT 20    -SN   Trust Estate
pursuant to Section 5.4 if the proceeds of such sale would be insufficient to pay the principal amount of and accrued but unpaid interest on the Outstanding COLT 20    -SN   Secured Notes;

 (v) modify any provision of this Section 9.2 to decrease the required minimum percentage of the
Outstanding Amount of the COLT 20    -SN   Secured Notes necessary to approve any amendments to any provisions of this COLT Indenture or any of the COLT
20    -SN   Basic Documents; 
  

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 (vi) modify any of the provisions of this COLT Indenture in such manner as
to affect the calculation of the amount of any payment of interest or principal due on any COLT 20    -SN   Secured Notes on any Payment Date (including the calculation of any of the individual components
of such calculation), or modify or alter the provisions of this COLT Indenture regarding the voting of COLT 20    -SN   Secured Notes held by COLT, the Seller or any Affiliate of either of them; or

 (vii) permit the creation of any Lien ranking prior to or on a parity with the Lien of this COLT Indenture
with respect to any part of the COLT 20    -SN   Collateral or of the VAULT Security Agreement with respect to any part of the Pledged Collateral or, except as otherwise permitted or contemplated herein,
terminate the Lien of this COLT Indenture on any property at any time subject hereto or deprive the Holder of any COLT 20    -SN   Secured Note of the security afforded by the lien of this COLT Indenture.

 (b) The COLT Indenture Trustee may in its discretion determine whether or not any COLT
20    -SN   Secured Notes would be affected (such that the consent of each Secured Noteholder would be required) by any supplemental indenture proposed pursuant to this Section 9.2 and any such
determination shall be conclusive and binding upon the Holders of all COLT 20    -SN   Secured Notes, whether authenticated and delivered thereunder before or after the date upon which such supplemental
indenture becomes effective. The COLT Indenture Trustee shall not be liable for any such determination made in good faith. 

(c) It shall be sufficient if an Act of COLT 20    -SN   Secured Noteholders approves the
substance, but not the form, of any proposed supplemental indenture. 
 (d) Promptly after the execution by COLT and the COLT
Indenture Trustee of any supplemental indenture pursuant to this Section 9.2, the COLT Indenture Trustee shall mail to the COLT 20    -SN   Secured Noteholders to which such amendment or
supplemental indenture relates a notice setting forth in general terms the substance of such supplemental indenture. Any failure of the COLT Indenture Trustee to mail such notice, or any defect therein, shall not, however, in any way impair or
affect the validity of any such supplemental indenture. 
 SECTION 9.3 Execution of Supplemental Indentures. In
executing, or permitting the additional trusts created by any supplemental indenture permitted by this Article IX or the modifications thereby of the trusts created by this COLT Indenture, the COLT Indenture Trustee shall be entitled to
receive, and subject to Sections 6.1 and 6.2, shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Article IX. The COLT
Indenture Trustee may, but shall not be obligated to, enter into any such supplemental indenture that affects the COLT Indenture Trustee’s own rights, duties, liabilities or immunities under this COLT Indenture or otherwise. 

SECTION 9.4 Effect of Supplemental Indenture. Upon the execution of any supplemental indenture pursuant to the provisions hereof,
this COLT Indenture shall be and be deemed to be modified and amended in accordance therewith with respect to the Secured Notes affected thereby, and the respective rights, limitations of rights, obligations, duties, liabilities and

  

 49 

 
immunities under this COLT Indenture of the COLT Indenture Trustee, COLT and the COLT 20    -SN   Secured Noteholders shall thereafter be determined,
exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this COLT Indenture
for any and all purposes. 
 SECTION 9.5 Conformity with Trust Indenture Act. Every amendment of this COLT Indenture and
every supplemental indenture executed pursuant to this Article IX shall conform to the requirements of the TIA as then in effect so long as this COLT Indenture shall then be qualified under the TIA. 

SECTION 9.6 Reference in COLT 20    -SN   Secured Notes to Supplemental Indentures. COLT
20    -SN   Secured Notes authenticated and delivered after the execution of any supplemental indenture pursuant to this Article IX may, and if required by the COLT Indenture Trustee shall, bear a
notation in form approved by the COLT Indenture Trustee as to any matter provided for in such supplemental indenture. If COLT or the COLT Indenture Trustee shall so determine, new COLT 20    -SN   Secured
Notes so modified as to conform, in the opinion of the COLT Indenture Trustee and COLT, to any such supplemental indenture may be prepared and executed by COLT and authenticated and delivered by the COLT Indenture Trustee in exchange for Outstanding
COLT 20    -SN   Secured Notes of a like Secured Note Principal Balance. 
 ARTICLE X

 REDEMPTION OF COLT 20    -SN   SECURED NOTES 

SECTION 10.1 Redemption. The COLT 20    -SN   Secured Notes are subject to redemption
in whole, but not in part, upon the exercise by the Servicer of its option to purchase the Series 20    -SN   Lease Assets pursuant to Section 6.01 of the COLT Servicing Agreement. The Payment Date on
which such redemption shall occur is the Optional Purchase Date identified by the Servicer in its notice of exercise of such purchase option (the “Redemption Date”). The purchase price for the COLT
20    -SN   Secured Notes shall be equal to the applicable Redemption Price. The Servicer shall furnish the COLT Indenture Trustee and the COLT 20    -SN  
Secured Noteholders notice of such optional repurchase pursuant to Section 6.0 of the COLT Servicing Agreement and of the redemption of the COLT 20    -SN   Secured Notes, which notice shall
identify the place where the COLT 20    -SN   Secured Notes are to be surrendered for payment of the Redemption Price. The COLT Indenture Trustee (based on such notice) shall withdraw from the COLT
Collection Account and pay to the COLT 20    -SN   Secured Noteholders on the Redemption Date, the aggregate Redemption Price of the COLT 20    -SN   Secured
Notes. 
 SECTION 10.2 COLT 20    -SN   Secured Notes Payable on Redemption Date. The COLT
20    -SN   Secured Notes shall, following notice of redemption as required by Section 6.1 of the COLT Servicing Agreement, on the Redemption Date cease to be Outstanding for purposes of this
COLT Indenture and shall thereafter represent only the right to receive the applicable Redemption Price and (unless COLT shall default in the payment of such Redemption Price) no interest shall accrue on such Redemption Price for any period after
the date to which accrued interest is calculated for purposes of calculating such Redemption Price. 
  

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 ARTICLE XI 

MISCELLANEOUS 

SECTION 11.1 Compliance Certificates and Opinions, Etc. 

(a) Upon any application or request by COLT to the COLT Indenture Trustee to take any action under any provision of this COLT Indenture,
COLT shall furnish to the COLT Indenture Trustee: (i) an Officer’s Certificate stating that all conditions precedent, if any, provided for in this COLT Indenture relating to the proposed action have been complied with, (ii) an Opinion
of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with and (iii) (if required by the TIA) an Independent Certificate from a firm of certified public accountants meeting the
applicable requirements of this Section 11.1, except that, in the case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this COLT Indenture, no additional
certificate or opinion need be furnished. Every certificate or opinion with respect to compliance with a condition or covenant provided for in this COLT Indenture shall include: 

(i) a statement that each signatory of such certificate or opinion has read or has caused to be read such covenant or
condition and the definitions herein relating thereto; 
 (ii) a brief statement as to the nature and scope of
the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 

(iii) a statement that, in the judgment of each such signatory, such signatory has made such examination or investigation
as is necessary to enable such signatory to express an informed opinion as to whether or not such covenant or condition has been complied with; and 

(iv) a statement as to whether, in the opinion of each such signatory, such condition or covenant has been complied with.

 (b) (i) Prior to the deposit with the COLT Indenture Trustee of any COLT
20    -SN   Trust Estate or other property or securities that is to be made the basis for the release of any property or securities subject to the Lien of this COLT Indenture, COLT shall, in addition to
any obligation imposed in Section 11.1(a) or elsewhere in this COLT Indenture, furnish to the COLT Indenture Trustee an Officer’s Certificate certifying or stating the opinion of each Person signing such certificate as to the fair
value (within 90 days of such deposit) to COLT of the COLT 20    -SN   Trust Estate or other property or securities to be so deposited. 

(ii) Whenever COLT is required to furnish to the COLT Indenture Trustee an Officer’s Certificate certifying or
stating the opinion of any signer thereof as to the matters described in clause (b)(i) above, COLT shall also deliver to the COLT Indenture Trustee an Independent Certificate as to the same matters, if the fair value to COLT of the COLT
20    -SN   Trust Estate and other property (such as securities) to be so deposited and of all other such securities made the basis of any such withdrawal or release since the commencement of the then
current fiscal year of COLT, as set forth in 
  

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the certificates delivered pursuant to clause (b)(i) above and this clause (b)(ii), is 10% or more of the Outstanding Amount of the COLT
20    -SN   Secured Notes, but such a certificate need not be furnished with respect to any securities so deposited, if the fair value thereof to COLT as set forth in the related Officer’s Certificate
is less than $25,000 or less than one percent of the Outstanding Amount of the COLT 20    -SN   Secured Notes. 

(iii) Other than with respect to the release of any Administrative Lease Assets, Warranty Lease Assets, Liquidating Lease
Asset or the sale or other disposition of any related Vehicle in accordance with the COLT Servicing Agreement, whenever any property or securities are to be released from the Lien of this COLT Indenture, COLT shall also furnish to the COLT Indenture
Trustee an Officer’s Certificate certifying or stating the opinion of each Person signing such certificate as to the fair value (within 90 days of such release) of the property or securities proposed to be released and stating that in the
opinion of such Person the proposed release will not impair the security under this COLT Indenture in contravention of the provisions hereof. 

(iv) Whenever COLT is required to furnish to the COLT Indenture Trustee an Officer’s Certificate
certifying or stating the opinion of any signatory thereof as to the matters described in clause (b)(iii) above, COLT shall also furnish to the COLT Indenture Trustee an Independent Certificate as to the same matters if the fair value of the
property or securities and of all other property, other than Administrative Lease Assets, Warranty Lease Assets, Liquidating Lease Asset or the sale of any other Vehicle in accordance with the COLT Servicing Agreement, or securities released from
the Lien of this COLT Indenture since the commencement of the then current calendar year, as set forth in the certificates required by clause (b)(iii) above and this clause (b)(iv), equals 10% or more of the Outstanding Amount of the
COLT 20    -SN   Secured Notes, but such certificate need not be furnished with respect to any release of securities or other property proposed to be released if the fair value thereof as set forth in the
related Officer’s Certificate is less than $25,000 or less than one percent of the Outstanding Amount of the COLT 20    -SN   Secured Notes. 

(v) Notwithstanding Section 2.10 or any other provision of this Section 11.1, COLT may (A) collect,
liquidate, sell or otherwise dispose of Series 20    -SN   Lease Assets proceeds of both as and to the extent permitted or required by the COLT 20    -SN   Basic
Documents, (B) make cash payments out of any Designated Accounts as and to the extent permitted or required by the COLT 20    -SN   Basic Documents and (C) take any other action not inconsistent
with the TIA. 
 SECTION 11.2 Form of Documents Delivered to COLT Indenture Trustee. 

(a) In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not
necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and
one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 
  

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 (b) Any certificate or opinion of an Authorized Officer of COLT may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the matters
upon which his certificate or opinion is based are erroneous. Any such certificate of an Authorized Officer or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an
officer or officers of the Servicer, the Seller or COLT, stating that the information with respect to such factual matters is in the possession of the Servicer, the Seller or COLT, unless such counsel knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to such matters are erroneous. 
 (c) Where any
Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this COLT Indenture, they may, but need not, be consolidated and form one instrument. 

(d) Whenever in this COLT Indenture, in connection with any application or certificate or report to the COLT Indenture Trustee, it is
provided that COLT shall deliver any document as a condition of the granting of such application, or as evidence of COLT’s compliance with any term hereof, it is intended that the truth and accuracy, at the time of the granting of such
application or at the effective date of such certificate or report (as the case may be), of the facts and opinions stated in such document shall in such case be conditions precedent to the right of COLT to have such application granted or to the
sufficiency of such certificate or report. The foregoing shall not, however, be construed to affect the COLT Indenture Trustee’s right to rely upon the truth and accuracy of any statement or opinion contained in any such document as provided in
Article VI. 
 SECTION 11.3 Acts of COLT 20    -SN   Secured Noteholders.

 (a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this COLT Indenture to
be given or taken by COLT 20    -SN   Secured Noteholders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such COLT
20    -SN   Secured Noteholders in person or by agents duly appointed in writing and shall be subject to Section 5.11; and except as herein otherwise expressly provided such action shall become
effective when such instrument or instruments are delivered to the COLT Indenture Trustee, and, where it is hereby expressly required, to COLT. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the “Act” of the COLT 20    -SN   Secured Noteholders, as applicable, signing such instrument or instruments. Proof of execution of any such instrument or of a
writing appointing any such agent shall be sufficient for any purpose of this COLT Indenture and (subject to Section 6.1) conclusive in favor of the COLT Indenture Trustee and COLT, if made in the manner provided in this
Section 11.3. 
 (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved in any manner that the COLT Indenture Trustee deems sufficient. 
 (c) The ownership of COLT
20    -SN   Secured Notes shall be proved by the Secured Note Register. 
  

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 (d) Any request, demand, authorization, direction, notice, consent, waiver
or other action by the Holder of any COLT 20    -SN   Secured Notes shall bind the Holder of every COLT 20    -SN   Secured Note issued upon the registration
thereof or in exchange therefor or in lieu thereof, in respect of anything done, omitted or suffered to be done by the COLT Indenture Trustee or COLT in reliance thereon, whether or not notation of such action is made upon such COLT
20    -SN   Secured Note. 
 SECTION 11.4 Notices, Etc., to COLT Indenture
Trustee, COLT and Rating Agencies. Any request, demand, authorization, direction, notice, consent, waiver or Act of COLT 20    -SN   Secured Noteholders or other documents provided or permitted by this
COLT Indenture to be made upon, given or furnished to or filed with: 
 (a) the COLT Indenture Trustee by any COLT
20    -SN   Secured Noteholder or by COLT shall be made, given, furnished or filed in writing to or with the COLT Indenture Trustee at its Corporate Trust Office, or 

(b) COLT by the COLT Indenture Trustee or by any COLT 20    -SN   Secured Noteholder shall be
sufficient for every purpose hereunder if in writing and either sent by electronic facsimile transmission (with hard copy to follow via first class mail) or mailed, by certified mail, return receipt requested, or by overnight mail to COLT and the
COLT Owner Trustee each at the address specified in Part III of Exhibit I to the Declaration of Trust. 

COLT shall promptly transmit any notice received by it from the COLT
20    -SN   Secured Noteholders to the COLT Indenture Trustee and the COLT Indenture Trustee shall likewise promptly transmit any notice received by it from the COLT
20    -SN   Secured Noteholders to COLT. 
 (c) Notices required to be given to the
Rating Agencies by COLT, the COLT Indenture Trustee or the COLT Owner Trustee shall be delivered as specified in Part III to Exhibit A to the COLT Servicing Agreement. 

SECTION 11.5 Notices to COLT 20    -SN   Secured Noteholders; Waiver. 

(a) Where this COLT Indenture provides for notice to the COLT 20    -SN   Secured Noteholders
of any condition or event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if it is in writing and mailed, first-class, postage prepaid to each COLT 20    -SN   Secured
Noteholder affected by such event, at such Person’s address as it appears on the Secured Note Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice. If notice to COLT
20    -SN   Secured Noteholders is given by mail, neither the failure to mail such notice nor any defect in any notice so mailed to any particular COLT
20    -SN   Secured Noteholder shall affect the sufficiency of such notice with respect to other 20    -SN   Secured Noteholders, and any notice that is mailed
in the manner herein provided shall conclusively be presumed to have been duly given regardless of whether such notice is in fact actually received. 

(b) Where this COLT Indenture provides for notice in any manner, such notice may be waived in writing by any Person entitled to receive
such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by COLT 20    -SN   Secured Noteholders shall be filed with the COLT Indenture
Trustee but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such a waiver. 
  

 54 

 (c) In case, by reason of the suspension of regular mail service as a result of a strike,
work stoppage or similar activity, it shall be impractical to mail notice of any event of COLT 20    -SN   Secured Noteholders when such notice is required to be given pursuant to any provision of this
COLT Indenture, then any manner of giving such notice as shall be satisfactory to the COLT Indenture Trustee shall be deemed to be a sufficient giving of such notice. 

(d) Where this COLT Indenture provides for notice to the Rating Agencies, failure to give such notice shall not affect any other rights
or obligations created hereunder, and shall not under any circumstance constitute an Event of Default. 

SECTION 11.6 Alternate Payment and Notice Provisions. 

Notwithstanding any provision of this COLT Indenture or any of the COLT 20    -SN   Secured
Notes to the contrary, COLT may enter into any agreement with any Holder of a COLT 20    -SN   Secured Note providing for a method of payment, or notice by the COLT Indenture Trustee or any Paying Agent to
such Holder, that is different from the methods provided for in this COLT Indenture for such payments or notices. COLT shall furnish to the COLT Indenture Trustee a copy of each such agreement and the COLT Indenture Trustee shall cause payments to
be made and notices to be given in accordance with such agreements at the expense of COLT. 
 SECTION 11.7
Conflict with Trust Indenture Act. 
 (a) If any provision hereof limits, qualifies or conflicts with another provision
hereof that is required to be included in this COLT Indenture by any of the provisions of the TIA, such required provision shall control. 

(b) The provisions of TIA §§ 310 through 317 that impose duties on any Person (including the provisions automatically deemed
included herein unless expressly excluded by this COLT Indenture) are a part of and govern this COLT Indenture, whether or not physically contained herein. 

SECTION 11.8 Effect of Headings and Table of Contents. 

The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof.

 SECTION 11.9 Successors and Assigns. 

(a) All covenants and agreements in this COLT Indenture and the COLT 20    -SN   Secured Notes
by COLT shall bind its successors and assigns, whether so expressed or not. 
  

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 (b) All covenants and agreements of the COLT Indenture Trustee in this COLT Indenture shall
bind its successors and assigns, whether so expressed or not. 
 SECTION 11.10 Severability. 

In case any provision in this COLT Indenture or in the COLT 20    -SN   Secured Notes shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

SECTION 11.11 Benefits of COLT Indenture. 

Nothing in this COLT Indenture or in the COLT 20    -SN   Secured Notes, express or implied,
shall give to any Person, other than the parties hereto and their successors hereunder, and to the extent expressly provided herein, the COLT 20    -SN   Secured Noteholders and any other Person with an
ownership interest in any part of the COLT 20    -SN   Trust Estate, any benefit or any legal or equitable right, remedy or claim under this COLT Indenture. 

SECTION 11.12 Legal Holidays. 

If the date on which any payment is due shall not be a Business Day, then (notwithstanding any other provision of the
COLT 20    -SN   Secured Notes or this COLT Indenture) payment need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the date on
which nominally due, and no interest shall accrue for the period from and after any such nominal date. 

SECTION 11.13 GOVERNING LAW. 

THIS COLT INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO
THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF OR OF ANY OTHER JURISDICTION (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES UNDER THIS COLT INDENTURE SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
 SECTION 11.14 Counterparts. 

This COLT Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all
such counterparts shall together constitute but one and the same instrument. 
 SECTION 11.15 Recording of
COLT Indenture. 
 If this COLT Indenture is subject to recording in any appropriate public recording offices, such recording
is to be effected by COLT and at its expense accompanied by an Opinion of Counsel (which may be counsel to the COLT Indenture Trustee or any other counsel reasonably acceptable to the COLT Indenture Trustee) to the effect that such recording is
necessary either for the protection of the Secured Noteholders or any other Person secured hereunder or for the enforcement of any right or remedy granted to the COLT Indenture Trustee under this COLT Indenture. 

 

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 SECTION 11.16 No Recourse. 

(a) Each COLT 20    -SN   Secured Noteholder agrees by acceptance of a COLT
20    -SN   Secured Note (or interest therein) that no recourse may be taken, directly or indirectly, with respect to the obligations of COLT, the COLT Owner Trustee or the COLT Indenture Trustee on the
COLT 20    -SN   Secured Notes or under this COLT Indenture or any certificate or other writing delivered in connection herewith or therewith, against: 

(i) the COLT Indenture Trustee or the COLT Owner Trustee in its individual capacity; 

(ii) any owner of a beneficial interest in COLT; 

(iii) any partner, owner, beneficiary, agent, officer, director or employee of the COLT Indenture Trustee or the COLT
Owner Trustee in its individual capacity, any holder of a beneficial interest in COLT, the COLT Owner Trustee or the COLT Indenture Trustee or of any successor or assign of the COLT Indenture Trustee or the COLT Owner Trustee in its individual
capacity (or any of their successors or assigns), except as any such Person may have expressly agreed (it being understood that the COLT Indenture Trustee and the COLT Owner Trustee have no such obligation in their individual capacity) and except
that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. For all
purposes of this COLT Indenture, in the performance of any duties or obligations of COLT hereunder, the COLT Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Articles IV, V and
VI of the Declaration of Trust; or 
 (iv) COLT or any portion of the assets of COLT other than with
respect to the COLT 20    -SN   Trust Estate. 
 (b) Except as expressly provided in
the COLT 20    -SN   Basic Documents, neither the Seller, the Servicer, the COLT Indenture Trustee nor the COLT Owner Trustee in their respective individual capacities, any owner of a beneficial interest
in COLT, nor any of their respective partners, owners, beneficiaries, agents, officers, directors, employees or successors or assigns, shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants, obligations or indemnifications contained in the COLT 20    -SN   Secured Notes or this COLT Indenture. 

 

 57 

 SECTION 11.17 No Petition. 

Each of the COLT Indenture Trustee by entering this COLT Indenture and each Holder of a COLT
20    -SN   Secured Note, by its acceptance thereof, hereby covenants and agrees that prior to the date which is one year and one day after the payment in full of all COLT
20    -SN   Secured Notes, it shall not institute against, or join any other Person in instituting against, COLT any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other
similar proceeding under the laws of the United States or any state of the United States. This Section 11.17 shall survive the termination of this COLT Indenture. 

SECTION 11.18 Inspection. 

COLT agrees that, on reasonable prior notice, it shall permit any representative of the COLT Indenture Trustee, during COLT’s normal
business hours, to examine all the books of account, records, reports and other papers of COLT, to make copies and extracts therefrom, to cause such books to be audited by Independent certified public accountants, and to discuss COLT’s affairs,
finances and accounts with COLT’s officers, employees and Independent certified public accountants, all at such reasonable times and as often as may be reasonably requested. The COLT Indenture Trustee shall and shall cause its representatives
to hold in confidence all such information except to the extent disclosure may be required by law (and all reasonable applications for confidential treatment are unavailing) and except to the extent that the COLT Indenture Trustee may reasonably
determine that such disclosure is consistent with its obligations hereunder. 
 SECTION 11.19 Indemnification by and
Reimbursement of the Servicer. The COLT Indenture Trustee acknowledges and agrees to reimburse (i) the Servicer and its directors, officers, employees and agents in accordance with the COLT Servicing Agreement and (ii) the Seller and
its directors, officers, employees and agents in accordance with the COLT Servicing Agreement. The COLT Indenture Trustee further acknowledges and accepts the conditions and limitations with respect to the Servicer’s obligation to indemnify,
defend and hold the COLT Indenture Trustee harmless as set forth in the COLT Servicing Agreement for any Series. 
 SECTION
11.20 Series Liabilities. It is expressly understood and agreed by each COLT 20    -SN   Secured Noteholder, by its acceptance of its COLT 20    -SN  
Secured Note, that Series 20    -SN   is a separate series of COLT as provided in Section 3806(b)(2) of the Statutory Trust Act. As such, separate and distinct records shall be maintained for each
Series Portfolio and the Trust Assets associated with Series 20    -SN   shall be held and accounted for separately from the other assets of COLT or any other Series. The debts, liabilities, obligations
and expenses incurred, contracted for or otherwise existing with respect to each Series of Secured Notes, shall be enforceable against the related Series Portfolio of COLT only, and not against the assets of COLT generally or any other Series
Portfolio. 
 SECTION 11.21 Subordination. COLT and each Holder of a COLT
20    -SN   Secured Note, by accepting its COLT 20    -SN   Secured Note, acknowledges and agrees that such COLT
20    -SN   Secured Note represents indebtedness of COLT and does not represent an interest in any other assets of COLT allocated to any other Series Portfolio (including by virtue of any deficiency claim
in respect of obligations not paid or otherwise satisfied from the COLT 20    -SN   Trust Estate and proceeds thereof). In furtherance of and not in derogation of the foregoing, to the extent COLT enters
into other securitization transactions, including in connection with the issuance of other Series of Secured Notes, each of COLT and each COLT 20    -SN   Secured Noteholder, by accepting its COLT
20    -SN   Secured Note, acknowledges 
  

 58 

 
and agrees that it shall have no right, title or interest in or to any assets (or interests therein) (other than the COLT 20    -SN   Trust Estate)
conveyed or purported to be conveyed or pledged by COLT to another Person or Persons in connection therewith (whether by way of a sale, capital contribution or by virtue of the granting of a Lien) (“Other Assets”). To the extent
that, notwithstanding the agreements and provisions contained in the preceding sentences of this subsection, COLT or any COLT 20    -SN   Secured Noteholder either (a) asserts an interest or claim to,
or benefit from, Other Assets, whether asserted against or through the COLT Indenture Trustee or any other Person, or (b) is deemed to have any such interest, claim or benefit in or from Other Assets, whether by operation of law, legal process,
pursuant to applicable provisions of insolvency laws or otherwise (including by virtue of Section 1111(b) of the federal Bankruptcy Code or any successor provision having similar effect under the Bankruptcy Code), and whether deemed asserted
against or through the COLT Indenture Trustee or any other Person, then COLT and each COLT 20    -SN   Secured Noteholder, by accepting its COLT 20    -SN  
Secured Note, further acknowledges and agrees that any such interest, claim or benefit in or from Other Assets is and shall be expressly subordinated to the indefeasible payment in full of all obligations and liabilities of COLT which, under the
terms of the relevant documents relating to the securitization of such Other Assets, are entitled to be paid from, entitled to the benefits of, or otherwise secured by such Other Assets (whether or not any such entitlement or security interest is
legally perfected or otherwise entitled to a priority of distribution or application under applicable law, including insolvency laws, and whether asserted against the COLT 20    -SN   Secured Noteholder),
including the payment of post-petition interest on such other obligations and liabilities. This subordination agreement shall be deemed a subordination agreement within the meaning of Section 510(a) of the Bankruptcy Code. Each COLT
20    -SN   Secured Noteholder further acknowledges and agrees that no adequate remedy at law exists for a breach of this Section 11.21 and the terms of this Section 11.21 may be
enforced by an action for specific performance. The provisions of this Section 11.21 shall be for the third party benefit of those entitled to rely thereon and shall survive the termination of this COLT Indenture. 

IN WITNESS WHEREOF, COLT and the COLT Indenture Trustee have caused this COLT Indenture to be duly executed by their respective officers,
thereunto duly authorized, all as of the day and year first above written. 
  

			
	CENTRAL ORIGINATING LEASE TRUST
		
	By:	 	  

		 	not in its individual capacity but solely as COLT Owner Trustee

 

			
	By:	 	  

	Name:	 	
	Title:	 	
	                    , as COLT Indenture
Trustee

  

			
	By:	 	  

	Name:	 	
	Title:	 	

  

 59 

 Exhibit A to the 

COLT 20    -SN   Indenture 

FORM OF COLT 20    -SN   SECURED NOTE 

 

					
		 	Date of Issuance:	  	  

		 	Initial Secured Note Principal Balance:	  	 $

		 	Secured Note Rate:	  	             % per annum
		 	 Aggregate Initial ABS Value of All

    Series 20    -SN   Lease
Assets:
	  	  

Central Originating Lease Trust, a Delaware statutory trust (“COLT”), for value received, hereby promises to pay on each
Payment Date to                     , not in its individual capacity but solely as COLT Indenture Trustee, as pledgee of COLT, the sum of
(x) the Secured Note Interest Distributable Amount due on such COLT 20    -SN   Secured Note on such Payment Date, plus (y) the holder of this COLT
20    -SN   Secured Note’s portion of the aggregate amount payable on such Payment Date in respect of principal on the COLT 20    -SN   Secured Notes
pursuant to Sections 2.5(b) and 3.1 of the COLT Indenture (as defined below) pro rata based on the Secured Note Principal Balance of each such COLT 20    -SN   Secured Note. The
principal of this COLT 20    -SN   Secured Note shall be due and payable in full on the Final Scheduled Date, unless an optional redemption of the COLT
20    -SN   Secured Notes has occurred pursuant to Section 10.1 of the COLT Indenture in which case such unpaid principal shall be due on the Redemption Date. 

Pursuant to the COLT Indenture, dated as of             ,
20     (as amended, modified or otherwise supplemented from time to time, the “COLT Indenture”), between COLT and             , a national
banking association, as COLT indenture trustee (in its capacity as COLT indenture trustee and not its individual capacity, the “COLT Indenture Trustee”), COLT grants (x) to the COLT Indenture Trustee on behalf of the COLT
20    -SN   Secured Noteholders a security interest in the COLT 20    -SN   Collateral (other than the Direct COLT Pledge) to the extent set forth therein, and
(y) to each COLT 20    -SN   Secured Noteholder, to the extent that, notwithstanding the terms of the VAULT Trust Agreement and the Statutory Trust Act, COLT is deemed to hold a direct ownership
interest in the legal title to any Vehicle related to the Series 20    -SN   Lease Assets (and not merely a beneficial interest in VAULT representing an interest in the legal title to such Vehicle), a
security interest in all of COLT’s rights in such Vehicle. In addition, pursuant to the VAULT Pledge and Security Agreement, dated as of     , 20    , by Vehicle Asset Universal Leasing
Trust (“VAULT”) and acknowledged and agreed by COLT, Ally Financial Inc., Capital Auto Receivables, Inc., and Capital Auto Receivables Asset Trust 20    -SN  , VAULT pledges to each COLT
20    -SN   Secured Noteholder a security interest in all of VAULT’s legal title to the Vehicles related to the Series 20    -SN   Lease Assets to the
extent set forth therein. 
 The sole source for payment of this COLT 20    -SN  
Secured Note and all other COLT 20    -SN   Secured Notes is limited to the COLT 20    -SN   Trust Estate and such other funds as COLT may from time to time
pledge to secure the payment of the COLT 20    -SN   Secured Notes; it being understood that any other assets of COLT included in any other Series Portfolio or the Residual Interest shall not be available
to make payments on the COLT 20    -SN   Secured Notes. 
  

 60 

 Capitalized terms not otherwise defined herein shall have the meanings set forth in the COLT
Indenture. 
  

 61 

 This COLT 20    -SN   Secured Note is a valid
and binding obligation of COLT. 
  

			
	CENTRAL ORIGINATING LEASE TRUST
		
	By:	 	 ,

		 	not in its individual capacity, but solely as COLT Owner Trustee
		
	By:	 	  

	Name:	 	
	Title:	 	
	Dated:	 	            , 20    

 

 62 

 COLT INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the COLT 20    -SN   Secured Notes designed above and referred to in the within-mentioned COLT
Indenture. 
  

			
	                    , not in its individual capacity but
solely as COLT Indenture Trustee
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 63 

 Payment hereunder shall be made to the Holder of this COLT
20    -SN   Secured Note in accordance with the COLT Indenture and the COLT Servicing Agreement. 

By acquiring a COLT 20    -SN   Note or any interest therein, each purchaser and transferee
will be deemed to represent and warrant that either (A) it is not (i) an “employee benefit plan” (as defined in Section 3(3) of the United States Employee Retirement Income Security Act of 1974, as amended
(“ERISA”)), that is subject to the provisions of Title I of ERISA, (ii) a “plan” as described in Section 4975(e)(1) of the United States Internal Revenue Code of 1986, as amended (the “Code”),
that is subject to Section 4975 of the Code, or (iii) any entity whose underlying assets include plan assets of the foregoing or (iv) any other plan that is subject to applicable law that is substantially similar to Title I of
ERISA or Section 4975 of the Code or (B) the acquisition and holding of the COLT 20    -SN   Secured Note will not give rise to a non-exempt prohibited transaction under Section 406 of
ERISA, Section 4975 of the Code or a non-exempt violation of any substantially similar applicable law. 
 Pursuant to
Section 11.17 of the COLT Indenture, the COLT Indenture Trustee, by entering into the COLT Indenture and each holder of this COLT 20__-SN_ Secured Note, by its acceptance of this COLT 20__-SN_ Secured Note, (or interest therein),
covenant and agree that it shall not, prior to the date which is one year and one day after the payment in full of all COLT 20__-SN_ Secured Notes issued by COLT, acquiesce, petition or otherwise invoke or cause COLT to invoke the process of any
court or governmental authority for the purpose of commencing or sustaining a case against COLT under any federal or state bankruptcy, insolvency, reorganization or similar law or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of COLT or any substantial part of its property, or ordering the winding up or liquidation of the affairs of COLT, and that such obligations shall not constitute a claim against CoLT in the event that
COLT’s assets are insufficient to pay in full such obligations, in each case for one year after all COLT 20    -SN   Secured Notes are paid in full. 

The obligations of COLT under this COLT 20    -SN   Secured Note shall be non-recourse to
COLT and any other asset of COLT or any COLT 20    -SN   Certificateholder except to the extent described herein. 

This COLT 20    -SN   Secured Note shall be effective when executed, authenticated and
delivered in accordance with the COLT Indenture. 
 THIS COLT 20    -SN   SECURED
NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE DOMESTIC LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF OR OF ANY OTHER JURISDICTION (EXCEPT SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK
GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREOF UNDER THIS COLT 20    -SN   SECURED NOTE SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

 

 64 

 COLT agrees, and by acquiring this COLT
20    -SN   Secured Note or interest therein the Holder of this COLT 20    -SN   Secured Note or interest therein agrees, to treat this COLT
20    -SN   Secured Note as indebtedness for federal income tax, state and local income and franchise tax, Michigan single business tax, and any other taxes imposed upon, measured by or based upon gross or
net income. 
 It is expressly understood and agreed by the holder of this COLT
20    -SN   Secured Note that (a) the COLT Indenture and this COLT 20    -SN   Secured Note are executed and delivered by
                    , not individually or personally but solely as COLT Owner Trustee, (b) each of the representations, undertakings and
agreements herein and therein made on the part of COLT is made and intended not as a personal representation, undertaking or agreement by
                     but is made and intended for the purpose of binding only COLT, and (c) under no circumstances shall
                     be personally liable for the payment of any indebtedness or expenses of COLT or be liable for the breach or failure of
any obligation, representation, warranty or covenant made or undertaken by COLT under the COLT Indenture and this COLT 20    -SN   Secured Note. 

 

 65 

 Exhibit B to the 

COLT 20    -SN   Indenture 

FORM OF CERTIFICATION 

Re: the
                                         
                                         
       dated as of                      (the “Agreement”), among
                                         
                                         
                                         
                                     . 

I,
                                         
                                         
  , the
                                         
                                         
                       of
                                         
                                         
       (the “Company”), certify to Central Originating Lease Trust (“COLT”) and Capital Auto Receivables, LLC (“CARI”), and its officers, with the knowledge and intent that they
will rely upon this certification, that: 
 (1) I have reviewed the report on assessment of the Company’s compliance
provided in accordance with Rules 13a-18 and 15d-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Item 1122 of Regulation AB (the “Servicing Assessment”), and the registered public
accounting firm’s attestation report provided in accordance with Rules 13a-18 and 15d-18 under the Exchange Act and Section 1122(b) of Regulation AB (the “Attestation Report”) that were delivered by the Company to COLT, CARI, the
COLT Owner Trustee or the CARAT Owner Trustee pursuant to the Agreement (collectively, the “Company Information”); 

(2) To the best of my knowledge, the Company Information, taken as a whole, does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in the light of the circumstances under which such statements were made, not misleading with respect to the period of time covered by the Company Information; and 

(3) To the best of my knowledge, all of the Company Information required to be provided by the Company under the Agreement has been
provided to COLT, CARI, the COLT Owner Trustee or the CARAT Owner Trustee. 
  

			
	Dated:	 	  

		
	By:	 	  

		
	Name:	 	  

		
	Title:Indenture

 Exhibit 4.1 

 
  

INERGY, L.P., 

INERGY FINANCE CORP. 

AND 
 THE
GUARANTORS NAMED ON THE SIGNATURE PAGE HEREOF 
  

 
 7.0% SENIOR
NOTES DUE 2018 
  
  

INDENTURE 
 Dated
as of September 27, 2010 
  
  

U.S. BANK NATIONAL ASSOCIATION, 

As Trustee 
  

 

					
	
CROSS-
REFERENCE TABLE*
  

	 Trust Indenture

Act Section
	  	Indenture

Section

	 310(a)(1)
	  	7.10	  	                
	 (a)(2)
	  	7.10	  	
	 (a)(3)
	  	N/A	  	
	 (a)(4)
	  	N/A	  	
	 (a)(5)
	  	7.10	  	
	 (b)
	  	7.10	  	
	 (c)
	  	N/A	  	
	 311(a)
	  	7.11	  	
	 (b)
	  	7.11	  	
	 (c)
	  	N/A	  	
	 312(a)
	  	2.05	  	
	 (b)
	  	11.03	  	
	 (c)
	  	11.03	  	
	 313(a)
	  	7.06	  	
	 (b)(1)
	  	7.06	  	
	 (b)(2)
	  	7.06, 7.07	  	
	 (c)
	  	7.06, 11.02	  	
	 (d)
	  	7.06	  	
	 314(a)
	  	4.03, 4.04, 11.02	  	
	 (b)
	  	N/A	  	
	 (c)(1)
	  	11.04	  	
	 (c)(2)
	  	11.04	  	
	 (c)(3)
	  	N/A	  	
	 (d)
	  	N/A	  	
	 (e)
	  	11.05	  	
	 (f)
	  	N/A	  	
	 315(a)
	  	7.01	  	
	 (b)
	  	7.05, 11.02	  	
	 (c)
	  	7.01	  	
	 (d)
	  	7.01	  	
	 (e)
	  	6.11	  	
	 316(a)(last sentence)
	  	2.08	  	
	 (a)(1)(A)
	  	6.05	  	
	 (a)(1)(B)
	  	6.04	  	
	 (a)(2)
	  	N/A	  	
	 (b)
	  	6.07	  	
	 (c)
	  	9.04	  	
	 317(a)(1)
	  	6.08	  	
	 (a)(2)
	  	6.09	  	
	 (b)
	  	2.04	  	
	 318(a)
	  	11.01	  	
	 (b)
	  	N/A	  	
	 (c)
	  	11.01	  	

  
  

    N/A means not applicable. 

    *This Cross-Reference Table is not part of the Indenture. 

 

 i 

 TABLE OF CONTENTS 

 

					
	 	 	 	  	Page
	ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE
	 Section 1.01.
	 	 Definitions
	  	1
	 Section 1.02.
	 	 Other Definitions
	  	25
	 Section 1.03.
	 	 Incorporation by Reference of Trust Indenture Act
	  	25
	 Section 1.04.
	 	 Rules of Construction
	  	25
	
	ARTICLE 2 THE NOTES
	 Section 2.01.
	 	 Form and Dating
	  	26
	 Section 2.02.
	 	 Execution and Authentication
	  	26
	 Section 2.03.
	 	 Registrar and Paying Agent
	  	27
	 Section 2.04.
	 	 Paying Agent to Hold Money in Trust
	  	27
	 Section 2.05.
	 	 Noteholder Lists
	  	27
	 Section 2.06.
	 	 Transfer and Exchange
	  	28
	 Section 2.07.
	 	 Replacement Notes
	  	28
	 Section 2.08.
	 	 Outstanding Notes
	  	28
	 Section 2.09.
	 	Temporary Notes	  	29
	 Section 2.10.
	 	 Cancellation
	  	29
	 Section 2.11.
	 	 Defaulted Interest
	  	29
	 Section 2.12.
	 	 CUSIP Numbers
	  	29
	 Section 2.13.
	 	 Issuance of Additional Notes
	  	29
	
	ARTICLE 3 REDEMPTION AND PREPAYMENT
	 Section 3.01.
	 	 Notices to Trustee
	  	30
	 Section 3.02.
	 	 Selection of Notes to Be Redeemed
	  	30
	 Section 3.03.
	 	 Notice of Optional Redemption
	  	31
	 Section 3.04.
	 	 Effect of Notice of Redemption
	  	32
	 Section 3.05.
	 	 Deposit of Redemption Price
	  	32
	 Section 3.06.
	 	 Notes Redeemed in Part
	  	32
	 Section 3.07.
	 	 Optional Redemption
	  	33
	 Section 3.08.
	 	 Mandatory Redemption
	  	33
	 Section 3.09.
	 	 Offer to Purchase by Application of Excess Proceeds
	  	34
	 Section 3.10.
	 	 No Mandatory Sinking Fund
	  	36
	
	ARTICLE 4 COVENANTS
	 Section 4.01.
	 	 Payment of Notes
	  	36
	 Section 4.02.
	 	 Maintenance of Office or Agency
	  	36
	 Section 4.03.
	 	 Reports
	  	37
	 Section 4.04.
	 	 Compliance Certificate
	  	37
	 Section 4.05.
	 	 Taxes
	  	38
	 Section 4.06.
	 	 Stay, Extension and Usury Laws
	  	38
	 Section 4.07.
	 	 Limitation on Restricted Payments
	  	38
	 Section 4.08.
	 	 Limitation on Dividend and Other Payment Restrictions Affecting Subsidiaries
	  	41
	 Section 4.09.
	 	Limitation on Incurrence of Indebtedness and Issuance of Preferred Stock	  	43

  

 ii 

					
	 Section 4.10.
	 	 Limitation on Asset Sales.
	  	46
	 Section 4.11.
	 	 Limitation on Transactions with Affiliates
	  	47
	 Section 4.12.
	 	 Limitation on Liens
	  	49
	 Section 4.13.
	 	 Additional Subsidiary Guarantees
	  	49
	 Section 4.14.
	 	 Corporate Existence
	  	49
	 Section 4.15.
	 	 Offer to Repurchase Upon Change of Control
	  	49
	 Section 4.16.
	 	 No Inducements
	  	52
	 Section 4.17.
	 	 Activities of Finance Corp
	  	52
	 Section 4.18.
	 	 [Reserved]
	  	53
	 Section 4.19.
	 	 Covenant Termination
	  	53
	 Section 4.20.
	 	 Designation of Restricted and Unrestricted Subsidiaries
	  	53
	
	ARTICLE 5 SUCCESSORS
	 Section 5.01.
	 	 Merger, Consolidation, or Sale of Assets
	  	53
	 Section 5.02.
	 	 Successor Substituted
	  	55
	
	ARTICLE 6 DEFAULTS AND REMEDIES
	 Section 6.01.
	 	 Events of Default
	  	55
	 Section 6.02.
	 	 Acceleration
	  	58
	 Section 6.03.
	 	 Other Remedies
	  	58
	 Section 6.04.
	 	 Waiver of Past Defaults
	  	58
	 Section 6.05.
	 	 Control by Majority
	  	58
	 Section 6.06.
	 	 Limitation on Suits
	  	59
	 Section 6.07.
	 	 Rights of Holders of Notes to Receive Payment
	  	59
	 Section 6.08.
	 	 Collection Suit by Trustee
	  	59
	 Section 6.09.
	 	 Trustee May File Proofs of Claim
	  	59
	 Section 6.10.
	 	 Priorities
	  	60
	 Section 6.11.
	 	 Undertaking for Costs
	  	60
	
	ARTICLE 7 TRUSTEE
	 Section 7.01.
	 	 Duties of Trustee
	  	61
	 Section 7.02.
	 	 Rights of Trustee
	  	61
	 Section 7.03.
	 	 Individual Rights of Trustee
	  	63
	 Section 7.04.
	 	 Trustee’s Disclaimer
	  	63
	 Section 7.05.
	 	 Notice of Defaults
	  	63
	 Section 7.06.
	 	 Reports by Trustee to Holders of the Notes
	  	63
	 Section 7.07.
	 	 Compensation and Indemnity
	  	64
	 Section 7.08.
	 	 Replacement of Trustee
	  	65
	 Section 7.09.
	 	 Successor Trustee by Merger, etc
	  	66
	 Section 7.10.
	 	 Eligibility; Disqualification
	  	66
	 Section 7.11.
	 	 Preferential Collection of Claims Against Issuers
	  	66
	
	ARTICLE 8 LEGAL DEFEASANCE AND COVENANT DEFEASANCE
	 Section 8.01.
	 	 Option to Effect Legal Defeasance or Covenant Defeasance
	  	66
	 Section 8.02.
	 	 Legal Defeasance and Discharge
	  	66
	 Section 8.03.
	 	 Covenant Defeasance
	  	67
	 Section 8.04.
	 	 Conditions to Legal or Covenant Defeasance
	  	68
	 Section 8.05.
	 	 Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions
	  	69
	 Section 8.06.
	 	 Repayment to Issuers
	  	69

  

 iii 

					
	 Section 8.07.
	 	 Reinstatement
	  	70
	 Section 8.08.
	 	 Discharge
	  	70
	
	ARTICLE 9 AMENDMENT, SUPPLEMENT AND WAIVER
	 Section 9.01.
	 	 Without Consent of Holders of Notes
	  	71
	 Section 9.02.
	 	 With Consent of Holders of Notes
	  	72
	 Section 9.03.
	 	 Compliance with Trust Indenture Act
	  	73
	 Section 9.04.
	 	 Revocation and Effect of Consents
	  	73
	 Section 9.05.
	 	 Notation on or Exchange of Notes
	  	74
	 Section 9.06.
	 	 Trustee to Sign Amendments, etc
	  	74
	
	ARTICLE 10 GUARANTEES OF NOTES
	 Section 10.01.
	 	 Subsidiary Guarantees
	  	74
	 Section 10.02.
	 	 [Reserved]
	  	76
	 Section 10.03.
	 	 Guarantors May Consolidate, etc., on Certain Terms
	  	76
	 Section 10.04.
	 	 Releases of Subsidiary Guarantees
	  	76
	 Section 10.05.
	 	 [Reserved]
	  	77
	 Section 10.06.
	 	 Limitation on Guarantor Liability
	  	77
	 Section 10.07.
	 	 “Trustee” to Include Paying Agent
	  	77
	
	ARTICLE 11 MISCELLANEOUS
	 Section 11.01.
	 	 Trust Indenture Act Controls
	  	77
	 Section 11.02.
	 	 Notices
	  	77
	 Section 11.03.
	 	 Communication by Holders of Notes with Other Holders of Notes
	  	78
	 Section 11.04.
	 	 Certificate and Opinion as to Conditions Precedent
	  	79
	 Section 11.05.
	 	 Statements Required in Certificate or Opinion
	  	79
	 Section 11.06.
	 	 Rules by Trustee and Agents
	  	79
	 Section 11.07.
	 	 No Personal Liability of Directors, Officers, Employees and Unitholders
	  	79
	 Section 11.08.
	 	 Governing Law
	  	80
	 Section 11.09.
	 	 No Adverse Interpretation of Other Agreements
	  	80
	 Section 11.10.
	 	 Successors
	  	80
	 Section 11.11.
	 	 Severability
	  	80
	 Section 11.12.
	 	 Table of Contents, Headings, etc
	  	80
	 Section 11.13.
	 	 Counterparts
	  	80

  

 iv 

 This Indenture, dated as of September 27, 2010 is among Inergy, L.P., a
Delaware limited partnership (the “Company”), Inergy Finance Corp., a Delaware corporation (“Finance Corp.” and, together with the Company, the “Issuers”), the guarantors listed on the signature page hereof (each, a
“Guarantor” and, collectively, the “Guarantors”) and U.S. Bank National Association, a national banking association, as trustee (the “Trustee”). 

The Issuers, the Guarantors and the Trustee agree as follows for the benefit of each other and for the equal and ratable
benefit of the Holders of the Issuers’ Initial Notes, Exchange Notes, Private Exchange Notes and Additional Notes: 

ARTICLE 1 

DEFINITIONS AND INCORPORATION 

BY REFERENCE 

Section 1.01.    Definitions. 

“Acquired Debt” means, with respect to any specified Person: 

(1)        Indebtedness of any other Person existing at the time
such other Person was merged with or into or became a Subsidiary of such specified Person, whether or not such Indebtedness is incurred in connection with, or in contemplation of, such other Person merging with or into, or becoming a Subsidiary of,
such specified Person, but excluding Indebtedness which is extinguished, retired or repaid in connection with such Person merging with or becoming a Subsidiary or such specified Person; and 

(2)        Indebtedness secured by a Lien encumbering any asset
acquired by such specified Person. 
 “Additional Interest” means all additional interest then
owing pursuant to Section 2(d) of the Registration Rights Agreement referred to in clause (1) of the definition of “Registration Rights Agreement” in the Appendix. Unless the context indicates otherwise, all references to
“interest” in this Indenture or the Notes shall be deemed to include any Additional Interest. 

“Additional Notes” means, subject to the Company’s compliance with Section 4.09, 7.0% Senior
Notes due 2018 issued from time to time after the Initial Issuance Date under the terms of this Indenture (other than pursuant to Section 2.06, 2.07, 2.09 or 3.06 of this Indenture and other than Exchange Notes or Private Exchange Notes issued
pursuant to an exchange offer for other Notes outstanding under this Indenture). 
 “Affiliate”
of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For purposes of this definition, “control,” as used with respect to
any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise; provided, however,
that beneficial ownership of 10% or more of the Voting Stock of a Person will be deemed to be control by the other Person; and provided, further, that any third Person which also beneficially owns 10% or more of the Voting Stock of a specified
Person shall not be deemed to be an Affiliate of either the specified Person or the other Person merely because of such common ownership in such specified Person. For purposes of this definition,

 
the terms “controlling,” “controlled by” and “under common control with” have correlative meanings. 

“Agent” means the Escrow Agent and any Registrar or Paying Agent. 

“Agent Members” has the meaning provided in the Appendix. 

“Applicable Law,” except as the context may otherwise require, means all applicable laws, rules,
regulations, ordinances, judgments, decrees, injunctions, writs and orders of any court or governmental or congressional agency or authority and rules, regulations, orders, licenses and permits of any United States federal, state, municipal,
regional, or other governmental body, instrumentality, agency or authority. 
 “Applicable
Procedures” means, with respect to any transfer or exchange of beneficial interests in a Global Note, the rules and procedures of the Depository that apply to such transfer and exchange. 

“Asset Sale” means: 

(1)        the sale, lease, conveyance or other disposition of any
properties or assets (including by way of a sale and leaseback transaction); provided that the disposition of all or substantially all of the properties or assets of the Company and its Restricted Subsidiaries taken as a whole will be governed by
the provisions of Section 4.15 and/or the provisions of Section 5.01 and not by the provisions of Section 4.10; and 

(2)        the issuance of Equity Interests in any of the
Company’s Restricted Subsidiaries or the sale of Equity Interests in any of its Restricted Subsidiaries. 

Notwithstanding the preceding, the following items will not be deemed to be Asset Sales: 

(1)        any single transaction or series of related
transactions that involves properties or assets having a fair market value of less than $15.0 million; 

(2)        a transfer of assets between or among any of the
Company and its Restricted Subsidiaries, 
 (3)        an
issuance or sale of Equity Interests by a Restricted Subsidiary to the Company or to another Restricted Subsidiary; 

(4)        the disposition of equipment, inventory, accounts
receivable or other properties or assets in the ordinary course of business; 

(5)        the disposition of cash or Cash Equivalents, Hedging
Obligations or other financial instruments in the ordinary course of business; 

(6)        a Restricted Payment that is permitted by
Section 4.07 or a Permitted Investment; 
  

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(7)          any trade or exchange by the Company or any
Restricted Subsidiary of properties or assets for properties or assets owned or held by another Person, provided that the fair market value of the properties or assets traded or exchanged by the Company or such Restricted Subsidiary (together with
any cash) is reasonably equivalent to the fair market value of the properties or assets (together with any cash) to be received by the Company or such Restricted Subsidiary, and provided further that any net cash received must be applied in
accordance with the provisions of Section 4.10; 

(8)          the creation or perfection of a Lien that
is not prohibited by Section 4.12; 

(9)          dispositions in connection with Permitted
Liens; 
 (10)        surrender or waiver of contract
rights or the settlement, release or surrender of contract, tort or other claims of any kind; and 

(11)        the grant in the ordinary course of business of any
non-exclusive license of patents, trademarks, registrations therefor and other similar intellectual property. 

“Attributable Debt” in respect of a sale and leaseback transaction means, at the time of determination,
the present value of the obligation of the lessee for net rental payments during the remaining term of the lease included in such sale and leaseback transaction including any period for which such lease has been extended or may, at the option of the
lessor, be extended. Such present value shall be calculated using a discount rate equal to the rate of interest implicit in such transaction, determined in accordance with GAAP. As used in the preceding sentence, the “net rental payments”
under any lease for any such period shall mean the sum of rental and other payments required to be paid with respect to such period by the lessee thereunder, excluding any amounts required to be paid by such lessee on account of maintenance and
repairs, insurance, taxes, assessments, water rates or similar charges. In the case of any lease that is terminable by the lessee upon payment of penalty, such net rental payment shall also include the amount of such penalty, but no rent shall be
considered as required to be paid under such lease subsequent to the first date upon which it may be so terminated. 

“Available Cash” has the meaning assigned to such term in the Partnership Agreement, as in effect on the
date of the indenture. 
 “Bankruptcy Law” means Title 11, United States Code, as may be
amended from time to time, or any similar federal or state law for the relief of debtors. 
 “Beneficial
Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial ownership of any particular “person” (as that term is used in Section 13(d)(3) of the
Exchange Act), such “person” will be deemed to have beneficial ownership of all securities that such “person” has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or
is exercisable only upon the occurrence of a subsequent condition. The terms “Beneficially Owns” and “Beneficially Owned” have correlative meanings. 

“Board of Directors” means: 

(1)          with respect to Finance Corp., the board of
directors of Finance Corp.; 
  

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 (2)        with
respect to the Company, the Board of Directors of the Managing General Partner or any authorized committee thereof; and 

(3)        with respect to any other Person, the board or
committee of such Person serving a similar function. 
 “Board Resolution” means a copy of a
resolution certified by the Secretary or an Assistant Secretary of the applicable Person to have been duly adopted by the Board of Directors of such Person and to be in full force and effect on the date of such certification, and delivered to the
Trustee. 
 “Business Day” means each day that is not a Saturday, Sunday or other day on which
banking institutions in Kansas City, Missouri or in New York, New York or another place of payment are authorized or required by law to close. 

“Capital Lease Obligation” means, at the time any determination is to be made, the amount of the
liability in respect of a capital lease that would at that time be required to be capitalized on a balance sheet in accordance with GAAP. 

“Capital Stock” means: 

(1)        in the case of a corporation, corporate stock;

 (2)        in the case of an association or business
entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock; 

(3)        in the case of a partnership or limited liability
company, partnership or membership interests (whether general or limited); and 

(4)        any other interest or participation that confers on a
Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person. 

“Cash Equivalents” means: 

(1)        United States dollars; 

(2)        securities issued or directly and fully guaranteed or
insured by the United States government or any agency or instrumentality of the United States government (provided that the full faith and credit of the United States is pledged in support of those securities) having maturities of not more than six
months from the date of acquisition; 

(3)        certificates of deposit and eurodollar time deposits
with maturities of one year or less from the date of acquisition, bankers’ acceptances with maturities not exceeding one year and overnight bank deposits, in each case, with any lender party to the Credit Agreement or with any domestic
commercial bank having capital and surplus in excess of $500.0 million and a Thomson Bank Watch Rating of “B” or better; 
  

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(4)        repurchase obligations with a term of not more than
seven days for underlying securities of the types described in clauses (2) and (3) above entered into with any financial institution meeting the qualifications specified in clause (3) above; 

(5)        commercial paper having the highest rating obtainable
from Moody’s or S&P and in each case maturing within six months after the date of acquisition; and 

(6)        money market funds at least 95% of the assets of which
constitute Cash Equivalents of the kinds described in clauses (1) through (5) of this definition. 

“Change of Control” means the occurrence of any of the following: 

(1)        the direct or indirect sale, lease, transfer,
conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets (including Capital Stock of the Restricted Subsidiaries) of the
Company and its Restricted Subsidiaries taken as a whole, to any “person” (as that term is used in Section 13(d)(3) of the Exchange Act), which occurrence is followed by a Rating Decline within 90 days of the consummation of such
transaction; 
 (2)        the adoption of a plan
relating to the liquidation or dissolution of the Company or the removal of the Managing General Partner by the limited partners of the Company; 

(3)        the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act), excluding the Qualifying Owners identified in clauses (1) and (2) of the
definition of Qualifying Owners, becomes the Beneficial Owner, directly or indirectly, of more than 50% of the Voting Stock of the Managing General Partner, measured by voting power rather than number of shares, units or the like, which occurrence
is followed by a Rating Decline within 90 days thereof; 

(4)        the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act), excluding the Qualifying Owners identified in clause (1) of the definition of
Qualifying Owners, becomes the Beneficial Owner, directly or indirectly, of more than 50% of the Voting Stock of Inergy Holdings, measured by voting power rather than number or percentage of membership interests, at a time when Inergy Holdings still
Beneficially Owns more than 50% of the Voting Stock of the Managing General Partner, measured by voting power rather than number or percentage of membership interests, which occurrence is followed by a Rating Decline within 90 days thereof; or

 (5)        the first day on which a majority of the
members of the Board of Directors of the Managing General Partner are not Continuing Directors, which occurrence is followed by a Rating Decline within 90 days thereof. 

Notwithstanding the preceding, a conversion of the Company or any of its Restricted Subsidiaries from a limited
partnership, corporation, limited liability company or other form of 
  

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entity to a limited partnership, corporation, limited liability company or other form of entity or an exchange of all of the outstanding Equity Interests in one form of entity for Equity
Interests for another form of entity shall not constitute a Change of Control, so long as following such conversion or exchange the “persons” (as that term is used in Section 13(d)(3) of the Exchange Act) who Beneficially Owned the
Capital Stock of the Company immediately prior to such transactions continue to Beneficially Own in the aggregate more than 50% of the Voting Stock of such entity, or continue to Beneficially Own sufficient Equity Interests in such entity to elect a
majority of its directors, managers, trustees or other persons serving in a similar capacity for such entity, and, in either case no “person”, excluding any Qualifying Owner identified in clause (1) or (2) of the definition of
Qualifying Owner, Beneficially Owns more than 50% of the Voting Stock of such entity. 

“Clearstream” means Clearstream Banking, société anonyme, or any successor securities
clearing agency. 
 “Code” means the Internal Revenue Code of 1986, as amended from time to
time, and any successor statute. 
 “Commission” or “SEC” means the Securities
and Exchange Commission. 
 “Consolidated Cash Flow” means, with respect to any specified
Person for any period, the Consolidated Net Income of such Person for such period plus: 

(1)        an amount equal to any net loss realized by such Person
or any of its Restricted Subsidiaries in connection with an Asset Sale, to the extent such losses were deducted in computing such Consolidated Net Income; plus 

(2)        provision for taxes based on income or profits of such
Person and its Restricted Subsidiaries for such period, to the extent that such provision for taxes was deducted in computing such Consolidated Net Income; plus 

(3)        consolidated interest expense of such Person and its
Restricted Subsidiaries for such period, whether paid or accrued and whether or not capitalized (including, without limitation, amortization of debt issuance costs and original issue discount, non-cash interest payments, the interest component of
any deferred payment obligations, the interest component of all payments associated with Capital Lease Obligations, imputed interest with respect to Attributable Debt, commissions, discounts and other fees and charges incurred in respect of letter
of credit or bankers’ acceptance financings), and net of the effect of all payments made or received pursuant to interest rate Hedging Obligations, to the extent that any such expense was deducted in computing such Consolidated Net Income; plus

 (4)        depreciation and amortization (including
amortization of intangibles but excluding amortization of prepaid cash expenses that were paid in a prior period), impairment and other non-cash expenses (excluding any such non-cash expense to the extent that it represents an accrual of or reserve
for cash expenses in any future period or amortization of a prepaid cash expense that was paid in a prior period) of such Person and its Restricted Subsidiaries for such period to the extent that such depreciation and

  

 6 

 
amortization, impairment and other non-cash expenses were deducted in computing such Consolidated Net Income; plus 

(5)        unrealized non-cash losses resulting from foreign
currency balance sheet adjustments required by GAAP to the extent such losses were deducted in computing such Consolidated Net Income; plus 

(6)        all extraordinary, unusual or non-recurring items of
gain or loss, or revenue or expense; minus 

(7)        non-cash items increasing such Consolidated Net Income
for such period, other than items that were accrued in the ordinary course of business; 
 in each case, on a consolidated basis
and determined in accordance with GAAP. 
 “Consolidated Net Income” means, with respect to any
specified Person for any period, the aggregate of the Net Income of such Person and its Restricted Subsidiaries for such period, on a consolidated basis, determined in accordance with GAAP; provided that: 

(1)        the Net Income (but not loss) of any Person that is not
a Restricted Subsidiary or that is accounted for by the equity method of accounting will be included, but only to the extent of the amount of dividends or distributions paid in cash to the specified Person or a Restricted Subsidiary of the Person;

 (2)        the Net Income of any Restricted Subsidiary
will be excluded to the extent that the declaration or payment of dividends or similar distributions by that Restricted Subsidiary of that Net Income is not at the date of determination permitted without any prior governmental approval (that has not
been obtained) or, directly or indirectly, by operation of the terms of its charter or any judgment, decree, order, statute, rule or governmental regulation applicable to that Restricted Subsidiary or its stockholders, partners or members;

 (3)        the cumulative effect of a change in
accounting principles will be excluded; 

(4)        unrealized losses and gains under derivative
instruments included in the determination of Consolidated Net Income, including, without limitation those resulting from the application of Statement of Financial Accounting Standards No. 133 will be excluded; and 

(5)        any nonrecurring charges relating to any premium or
penalty paid, write off of deferred finance costs or other charges in connection with redeeming or retiring any Indebtedness prior to its Stated Maturity will be excluded. 

“Consolidated Net Tangible Assets” means, with respect to any Person at any date of determination, the
aggregate amount of total assets included in such Person’s most recent quarterly or annual consolidated balance sheet prepared in accordance with GAAP less applicable reserves reflected in such balance sheet, after deducting the following
amounts: (a) all current liabilities reflected in such balance sheet, and (b) all goodwill, trademarks, patents, 
  

 7 

 
unamortized debt discounts and expenses and other like intangibles reflected in such balance sheet. 

“Consolidated Net Worth” means, with respect to any Person, the total of the amounts shown on such
Person’s consolidated balance sheet, determined in accordance with GAAP, as of the end of such Person’s most recent fiscal quarter for which internal financial statements are available prior to the taking of any action for the purpose of
which the determination is being made, as the sum of: 

(1)        the par or stated value of all such Person’s
outstanding Capital Stock, plus 
 (2)        paid-in
capital or capital surplus relating to such Capital Stock, plus 

(3)        any retained earnings or earned surplus less
(A) any accumulated deficit and (B) any amounts attributable to Disqualified Stock. 

“Continuing Directors” means, as of any date of determination, any member of the Board of Directors of
the Managing General Partner who: 
 (1)        was a
member of such Board of Directors on the date of this Indenture; or 

(2)        was nominated for election or elected to such Board of
Directors with the approval of the Qualifying Owners identified in clauses (1) and (2) of the definition of Qualifying Owner or of a majority of the Continuing Directors who were members of such Board at the time of such nomination or
election. 
 “Corporate Trust Office of the Trustee” means the office of the Trustee at which
at any time the trust created by this Indenture shall be administered, which office at the date hereof is located at 60 Livingston Avenue St. Paul MN 55107-1419 Attention: Corporate Trust Department, or such other address as the Trustee may
designate from time to time by notice to the Holders and the Issuers, or the principal corporate trust office of any successor Trustee (or such other address as a successor Trustee may designate from time to time by notice to the Holders and the
Issuers). 
 “Credit Agreement” means that certain Credit Agreement, dated as of
November 24, 2009, among the Company, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, consisting of a general partnership facility and a working capital and letter of credit facility, including any related
notes, guarantees, collateral documents, instruments and agreements executed in connection therewith, and in each case as amended, restated, modified, renewed, refunded, replaced or refinanced from time to time. 

“Credit Facilities” means one or more debt facilities (including, without limitation, the Credit
Agreement), commercial paper facilities or secured capital markets financings, in each case with banks or other institutional lenders or institutional investors providing for revolving credit loans, term loans, receivables financing (including
through the sale of receivables to such lenders or to special purpose entities formed to borrow from such lenders against such receivables), letters of credit or secured capital markets financings, in each case, as amended, restated, modified,
renewed, refunded, replaced or refinanced (including refinancing with any capital markets transaction) in whole or in part from time to time. 
  

 8 

 “Custodian” means any receiver, trustee, assignee,
liquidator, sequestrator or similar official under any Bankruptcy Law. 
 “Default” means any
event that is, or with the passage of time or the giving of notice or both would be, an Event of Default. 

“Depository” has the meaning provided in the Appendix. 

“Disqualified Stock” means any Capital Stock that, by its terms (or by the terms of any security into
which it is convertible, or for which it is exchangeable, in each case at the option of the holder of the Capital Stock), or upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise,
or redeemable at the option of the holder of the Capital Stock, in whole or in part, on or prior to the date that is 91 days after the date on which the Notes mature. Notwithstanding the preceding sentence, any Capital Stock that would constitute
Disqualified Stock solely because the holders of the Capital Stock have the right to require the Company to repurchase or redeem such Capital Stock upon the occurrence of a change of control or an asset sale will not constitute Disqualified Stock if
the terms of such Capital Stock provide that the Company may not repurchase or redeem any such Capital Stock pursuant to such provisions unless such repurchase or redemption complies with Section 4.07. 

“Domestic Subsidiary” means any Restricted Subsidiary of the Company that was formed under the laws of
the United States or any state of the United States or the District of Columbia. 
 “Equity
Interests” means Capital Stock and all warrants, options or other rights to acquire Capital Stock (but excluding any debt security that is convertible into, or exchangeable for, Capital Stock). 

“Equity Offering” means any public or private sale of Capital Stock (other than Disqualified Stock) made
for cash on a primary basis by the Company after the date of this Indenture. 
 “Escrow Agent”
means U.S. Bank National Association, in its capacity as escrow agent under the Escrow Agreement, or any successor. 

“Escrow Agreement” means the Escrow Agreement dated as of the Initial Issuance Date among Wells Fargo
Securities, LLC, as representative of the several initial purchasers of the Notes, the Trustee and the Escrow Agent. 

“Euroclear” means Euroclear Bank S.A./N.V. or any successor securities clearing agency. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Exchange Notes” has the meaning specified in the Appendix. 

“Existing Indebtedness” means the aggregate principal amount of Indebtedness of the Company and its
Restricted Subsidiaries (other than Indebtedness under the Credit Agreement which is considered incurred under the first paragraph of Section 4.09 and other than 

 

 9 

 
intercompany indebtedness) in existence on the date of this Indenture, until such amounts are repaid. 

“FERC Subsidiary” means a Restricted Subsidiary of the Company that is subject to the regulatory
jurisdiction of the Federal Energy Regulatory Commission (or any successor thereof). 
 “Fixed Charge
Coverage Ratio” means with respect to any specified Person for any four-quarter reference period, the ratio of the Consolidated Cash Flow of such Person for such period to the Fixed Charges of such Person for such period. In the event that
the specified Person or any of its Restricted Subsidiaries incurs, assumes, guarantees, repays, repurchases or redeems any Indebtedness (other than ordinary working capital borrowings) or issues, repurchases or redeems preferred stock subsequent to
the commencement of the applicable four-quarter reference period and on or prior to the date on which the event for which the calculation of the Fixed Charge Coverage Ratio is made (the “Calculation Date”), then the Fixed Charge Coverage
Ratio will be calculated giving pro forma effect to such incurrence, assumption, guarantee, repayment, repurchase or redemption of Indebtedness, or such issuance, repurchase or redemption of preferred stock, and the use of the proceeds therefrom as
if the same had occurred at the beginning of such period. 
 In addition, for purposes of calculating the Fixed
Charge Coverage Ratio: 
 (1)        acquisitions that
have been made by the specified Person or any of its Restricted Subsidiaries, including through mergers, consolidations or otherwise (including acquisitions of assets used in a Permitted Business), and including in each case any related financing
transactions (including repayment of Indebtedness) during the four-quarter reference period or subsequent to such reference period and on or prior to the Calculation Date, will be given pro forma effect as if they had occurred on the first day of
the four-quarter reference period, including any Consolidated Cash Flow and any pro forma expense and cost reductions that have occurred or are reasonably expected to occur, in the reasonable judgment of the chief financial or accounting officer of
the Company (regardless of whether those cost savings or operating improvements could then be reflected in pro forma financial statements in accordance with Regulation S-X promulgated under the Securities Act or any other regulation or policy of the
Commission related thereto); 
 (2)        the
Consolidated Cash Flow attributable to discontinued operations, as determined in accordance with GAAP, and operations or businesses disposed of prior to the Calculation Date, will be excluded; 

(3)        the Fixed Charges attributable to discontinued
operations, as determined in accordance with GAAP, and operations or businesses disposed of prior to the Calculation Date, will be excluded, but only to the extent that the obligations giving rise to such Fixed Charges will not be obligations of the
specified Person or any of its Restricted Subsidiaries following the Calculation Date; and 

(4)        interest income reasonably anticipated by such Person
to be received during the applicable four-quarter period from cash or Cash Equivalents held by such Person or any Restricted Subsidiary of such Person, which cash or Cash Equivalents exist 

 

 10 

 
on the Calculation Date or will exist as a result of the transaction giving rise to the need to calculate the Fixed Charge Coverage Ratio, will be included. 

“Fixed Charges” means, with respect to any specified Person for any period, the sum, without
duplication, of: 
 (1)        the consolidated interest
expense of such Person and its Restricted Subsidiaries for such period, whether paid or accrued (including, without limitation, amortization of debt issuance costs and original issue discount, non-cash interest payments, the interest component of
any deferred payment obligations, the interest component of all payments associated with Capital Lease Obligations, imputed interest with respect to Attributable Debt, commissions, discounts and other fees and charges incurred in respect of letter
of credit or bankers’ acceptance financings), and net of the effect of all payments made or received pursuant to interest rate Hedging Obligations; plus 

(2)        the consolidated interest expense of such Person and
its Restricted Subsidiaries that was capitalized during such period; plus 

(3)        any interest expense on Indebtedness of another Person
that is guaranteed by such Person or one of its Restricted Subsidiaries or secured by a Lien on assets of such Person or one of its Restricted Subsidiaries, whether or not such guarantee or Lien is called upon; plus 

(4)        all dividends, whether paid or accrued and whether or
not in cash, on any series of preferred securities of such Person or any of its Restricted Subsidiaries, other than dividends on Equity Interests payable solely in Equity Interests of the Company (other than Disqualified Stock) or to the Company or
a Restricted Subsidiary of the Company, 
 in each case, on a consolidated basis and in accordance with GAAP. 

“Foreign Subsidiary” means any Restricted Subsidiary of the Company (1) that is not a Domestic
Subsidiary and (2) that has 50% or more of its consolidated assets located outside the United States or any territory thereof. 

“GAAP” means generally accepted accounting principles in the United States, which are in effect on the
date of this Indenture. 
 “General Partner” means each of the Non-managing General Partner and
the Managing General Partner. 
 “Global Note” has the meaning provided in the Appendix.

 “Government Securities” means direct obligations of, or obligations guaranteed by, the
United States of America for the payment of which guarantee or obligations the full faith and credit of the United States is pledged. 
  

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 The term “guarantee” means a guarantee other than by
endorsement of negotiable instruments for collection in the ordinary course of business, direct or indirect, in any manner including, without limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements in
respect thereof, of all or any part of any Indebtedness. When used as a verb, “guarantee” has a correlative meaning. 

“Guarantors” means each of (a) the Operating Company and the other Restricted Subsidiaries
executing this Indenture as initial Guarantors, (b) any other Restricted Subsidiary of the Company that executes a supplement to this Indenture in accordance with Section 4.13 or 10.03 hereof and (c) the respective successors and
assigns of such Restricted Subsidiaries, as required under Article 10 hereof, in each case until such time as any such Restricted Subsidiary shall be released and relieved of its obligations pursuant to Section 8.02, 8.03 or 10.04 hereof.

 “Hedging Obligations” means, with respect to any specified Person, the obligations of such
Person incurred in the normal course of business and consistent with past practices and not for speculative purposes under: 

(1)        interest rate swap agreements, interest rate cap
agreements and interest rate collar agreements entered into with one of more financial institutions and designed to protect the Person or any of its Restricted Subsidiaries entering into the agreement against fluctuations in interest rates with
respect to Indebtedness incurred and not for purposes of speculation; 

(2)        foreign exchange contracts and currency protection
agreements entered into with one of more financial institutions and designed to protect the Person or any of its Restricted Subsidiaries entering into the agreement against fluctuations in currency exchanges rates with respect to Indebtedness
incurred and not for purposes of speculation; 

(3)        any commodity futures contract, commodity option or
other similar agreement or arrangement designed to protect against fluctuations in the price of Hydrocarbons used, produced, processed or sold by that Person or any of its Restricted Subsidiaries at the time; and 

(4)        other agreements or arrangements designed to protect
such Person or any of its Restricted Subsidiaries against fluctuations in interest rates, commodity prices or currency exchange rates. 

“Holder” or “Noteholder” means a Person in whose name a Note is registered. 

“Hydrocarbons” means crude oil, natural gas, casinghead gas, drip gasoline, natural gasoline,
condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all constituents, elements or compounds thereof and products refined or processed therefrom. 

“Indebtedness” means, with respect to any specified Person, any indebtedness of such Person, whether or
not contingent: 
 (1)        in respect of borrowed
money; 
  

 12 

 (2)        evidenced
by bonds, notes, debentures or similar instruments or letters of credit (or reimbursement agreements in respect thereof); 

(3)        in respect of bankers’ acceptances; 

(4)        representing Capital Lease Obligations; 

(5)        representing the balance deferred and unpaid of the
purchase price of any property, except any such balance that constitutes an accrued expense or trade payable; or 

(6)        representing any Hedging Obligations, 

if and to the extent any of the preceding items (other than letters of credit and Hedging Obligations) would appear as a liability upon a
balance sheet of the specified Person prepared in accordance with GAAP. In addition, the term “Indebtedness” includes all Indebtedness of others secured by a Lien on any asset of the specified Person (whether or not such Indebtedness is
assumed by the specified Person) and, to the extent not otherwise included, the guarantee by the specified Person of any Indebtedness of any other Person. 

The amount of any Indebtedness outstanding as of any date will be: 

(1)        the accreted value of the Indebtedness, in the case of
any Indebtedness issued with original issue discount; 

(2)        in the case of any Hedging Obligation, the termination
value of the agreement or arrangement giving rise to such Hedging Obligation that would be payable by such Person at such date; and 

(3)        the principal amount of the Indebtedness, together with
any interest on the Indebtedness that is more than 30 days past due, in the case of any other Indebtedness. 

“Indenture” means this Indenture, as amended or supplemented from time to time. 

“Inergy Holdings” means Inergy Holdings, L.P., a Delaware limited partnership, and its successors.

 “Initial Issuance Date” means September 27, 2010. 

“Initial Notes” has the meaning provided in the Appendix. 

“Initial Purchasers” has the meaning provided in the Appendix. 

“Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by
Moody’s or BBB- (or the equivalent) by S&P. 
 “Investments” means, with respect to
any Person, all direct or indirect investments by such Person in other Persons (including Affiliates) in the forms of loans (including guarantees or other obligations), advances or capital contributions (excluding (1) commission, travel and
similar advances to officers and employees made in the ordinary course of business and (2) advances to customers in the ordinary course of business that are recorded as accounts 

 

 13 

 
receivable on the balance sheet of the lender), purchases or other acquisitions for consideration of Indebtedness, Equity Interests or other securities, together with all items that are or would
be classified as investments on a balance sheet prepared in accordance with GAAP. If the Company or any Restricted Subsidiary of the Company sells or otherwise disposes of any Equity Interests of any direct or indirect Restricted Subsidiary of the
Company such that, after giving effect to any such sale or disposition, such Person is no longer a Restricted Subsidiary of the Company, the Company will be deemed to have made an Investment on the date of any such sale or disposition in an amount
equal to the fair market value of the Equity Interests of such Restricted Subsidiary not sold or disposed of in an amount determined as provided in the final paragraph of Section 4.07. The acquisition by the Company or any Subsidiary of the
Company of a Person that holds an Investment in a third Person will be deemed to be an Investment made by the Company or such Subsidiary in such third Person in an amount equal to the fair market value of the Investment held by the acquired Person
in such third Person on the date of any such acquisition in an amount determined as provided in the final paragraph of Section 4.07. 

“Joint Venture” means any Person that is not a direct or indirect Subsidiary of the Company in which the
Company or any of its Restricted Subsidiaries makes any Investment. 
 “Legal Holiday” means
any calendar day other than a Business Day. If a payment date is a Legal Holiday, payment may be made on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period. 

“Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or
encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise perfected under Applicable Law, including any conditional sale or other title retention agreement, any lease in the nature thereof, any option or other
agreement to sell or give a security interest in and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction other than a precautionary financing statement respecting
a lease not intended as a security agreement. In no event will a right of first refusal be deemed to constitute a Lien. 

“Managing General Partner” means Inergy GP, LLC, a Delaware limited liability company, and its
successors and permitted assigns as managing general partner of the Company. 
 “Moody’s”
means Moody’s Investors Service, Inc. or any successor to the rating agency business thereof. 

“Net Income” means, with respect to any specified Person, the net income (loss) of such Person,
determined in accordance with GAAP and before any reduction in respect of preferred stock dividends, excluding, however: 

(1)        any gain (but not loss), together with any related
provision for taxes on such gain (but not loss), realized in connection with: (a) any Asset Sale; or (b) the disposition of any securities by such Person or the extinguishment of any Indebtedness of such Person; and 

(2)        any extraordinary gain (but not loss), together with
any related provision for taxes on such extraordinary gain (but not loss). 
  

 14 

 “Net Proceeds” means the aggregate cash proceeds received
by the Company or any of its Restricted Subsidiaries in respect of any Asset Sale (including, without limitation, any cash received upon the sale or other disposition of any non-cash consideration received in any Asset Sale), net of: 

(1)        the direct costs relating to such Asset Sale,
including, without limitation, legal, accounting and investment banking fees, and sales commissions, and any relocation expenses incurred as a result of the Asset Sale, 

(2)        taxes paid or payable as a result of the Asset Sale, in
each case, after taking into account any available tax credits or deductions and any tax sharing arrangements, 

(3)        amounts required to be applied to the repayment of
Indebtedness secured by a Lien on the properties or assets that were the subject of such Asset Sale, and 

(4)        any amounts to be set aside in any reserve established
in accordance with GAAP or any amount placed in escrow, in either case for adjustment in respect of the sale price of such properties or assets or for liabilities associated with such Asset Sale and retained by the Company or any of its Restricted
Subsidiaries until such time as such reserve is reversed or such escrow arrangement is terminated, in which case Net Proceeds shall include only the amount of the reserve so reversed or the amount returned to the Company or its Restricted
Subsidiaries from such escrow arrangement, as the case may be. 
 “Non-managing General
Partner” means Inergy Partners, LLC, a Delaware limited liability company, and its successors and permitted assigns as non-managing general partner of the Company. 

“Non-Recourse Debt” means Indebtedness: 

(1)        as to which neither the Company nor any of its
Restricted Subsidiaries (a) provides credit support of any kind (including any undertaking, agreement or instrument that would constitute Indebtedness), (b) is directly or indirectly liable as a guarantor or otherwise, or (c) is the
lender; 
 (2)        no default with respect to which
(including any rights that the holders of the Indebtedness may have to take enforcement action against an Unrestricted Subsidiary) would permit upon notice, lapse of time or both any holder of any other Indebtedness (other than the Notes) of the
Company or any of its Restricted Subsidiaries to declare a default on such other Indebtedness or cause the payment of the Indebtedness to be accelerated or payable prior to its Stated Maturity; and 

(3)        as to which the lenders have been notified in writing
that they will not have any recourse to the stock or assets of the Company or any of its Restricted Subsidiaries, except as contemplated by clause (9) of the definition of Permitted Liens. 

For purposes of determining compliance with Section 4.09, in the event that any Non-Recourse Debt of any of the
Company’s Unrestricted Subsidiaries ceases to be Non-Recourse 
  

 15 

 
Debt of such Unrestricted Subsidiary, such event will be deemed to constitute an incurrence of Indebtedness by a Restricted Subsidiary of the Company. 

“Notes” has the meaning specified in the Appendix. 

“Notes Custodian” has the meaning specified in the Appendix. 

“Obligations” means any principal, premium, if any, interest (including interest accruing on or after
the filing of any petition in bankruptcy or for reorganization, whether or not a claim for post-filing interest is allowed in such proceeding), penalties, fees, charges, expenses, indemnifications, reimbursement obligations, damages, guarantees, and
other liabilities or amounts payable under the documentation governing any Indebtedness or in respect thereto. 

“Offering Memorandum” means the offering memorandum of the Issuers dated September 13, 2010
relating to the offering of the Initial Notes. 
 “Officer” means, with respect to any Person,
the Chairman of the Board, the Chief Executive Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary, any Assistant Secretary or any Vice President of
such Person or, in the case of the Company, its Managing General Partner. 
 “Officers’
Certificate” means a certificate signed on behalf of each of the Company and Finance Corp. by two of its Officers, one of whom must be the principal executive officer, the principal financial officer, the treasurer or the principal
accounting officer of the Managing General Partner or Finance Corp., as the case may be, that meets the requirements of Section 11.05 hereof. 

“Operating Company” means Inergy Propane, LLC, a Delaware limited liability company, and its successors.

 “Operating Surplus” has the meaning assigned to such term in the Partnership Agreement, as
in effect on the date of this Indenture. 
 “Opinion of Counsel” means an opinion from legal
counsel who is reasonably acceptable to the Trustee, that meets the requirements of Section 11.05 hereof. The counsel may be an employee of or counsel to the Company, any Subsidiary of the Company or the Trustee. 

“Pari Passu Indebtedness” means, with respect to any Excess Proceeds from Asset Sales, Indebtedness of
an Issuer or any Guarantor that ranks equally in right of payment with the Notes or the Subsidiary Guarantees, as the case may be, and the terms of which require the Company or any of its Restricted Subsidiaries to apply such Excess Proceeds to
offer to repurchase such Indebtedness. 
 “Partnership Agreement” means the Second Amended and
Restated Agreement of Limited Partnership of Inergy, L.P., dated as of February 9, 2004, as in effect on the date of this Indenture and as such may be further amended, modified or supplemented from time to time. 

“Permitted Business” means either (1) gathering, transporting, treating, processing, fractionating,
marketing, distributing, storing or otherwise handling propane or other 
  

 16 

 
Hydrocarbons, or activities or services reasonably related or ancillary thereto including entering into Hedging Obligations to support these businesses, or (2) any other business that
generates gross income that constitutes “qualifying income” under Section 7704(d) of the Code. 

“Permitted Business Investments” means Investments by the Company or any of its Restricted Subsidiaries
in any Unrestricted Subsidiary of the Company or in any Joint Venture, provided that: 

(1)        either (a) at the time of such Investment and
immediately thereafter, the Company could incur $1.00 of additional Indebtedness under the Fixed Charge Coverage Ratio test set forth in the first paragraph of Section 4.09 or (b) such Investment does not exceed the aggregate amount of
Incremental Funds (as defined in Section 4.09) not previously expended at the time of making such Investment; 

(2)        if such Unrestricted Subsidiary or Joint Venture has
outstanding Indebtedness at the time of such Investment, either (a) all such Indebtedness is Non-Recourse Debt or (b) any such Indebtedness of such Unrestricted Subsidiary or Joint Venture that is recourse to the Company or any of its
Restricted Subsidiaries (which shall include, without limitation, all Indebtedness of such Unrestricted Subsidiary or Joint Venture for which the Company or any of its Restricted Subsidiaries may be directly or indirectly, contingently or otherwise,
obligated to pay, whether pursuant to the terms of such Indebtedness, by law or pursuant to any guarantee ,including, without limitation, any “claw-back,” “make-well” or “keep-well” arrangement) could, at the time such
Investment is made, be incurred at that time by the Company and its Restricted Subsidiaries under the Fixed Charge Coverage Ratio test set forth in the first paragraph of Section 4.09; and 

(3)        such Unrestricted Subsidiary’s or Joint
Venture’s activities are not outside the scope of the Permitted Business. 
 “Permitted
Investments” means: 
 (1)        any Investment
in the Company or in a Restricted Subsidiary of the Company (including through purchases of Notes or other Senior Debt); 

(2)        any Investment in Cash Equivalents; 

(3)        any Investment by the Company or any Restricted
Subsidiary of the Company in a Person, if as a result of such Investment: 

(a)        such Person becomes a Restricted Subsidiary of the
Company; or 
 (b)        such Person is merged,
consolidated or amalgamated with or into, or transfers or conveys substantially all of its properties or assets to, or is liquidated into, the Company or a Restricted Subsidiary of the Company; 

 

 17 

 (4)        any
Investment made as a result of the receipt of non-cash consideration from: 

(a)        an Asset Sale that was made pursuant to and in
compliance with Section 4.10; 

(b)        pursuant to clause (7) of the items deemed not to
be Asset Sales under the definition of “Asset Sale;” 

(5)        any Investment in any Person solely in exchange for the
issuance of Equity Interests (other than Disqualified Stock) of the Company; 

(6)        any Investments received in compromise of obligations
of trade creditors or customers that were incurred in the ordinary course of business, including pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of any trade creditor or customer, or as a result of a
foreclosure by the Company or any of its Restricted Subsidiaries with respect to any secured Investment in default; 

(7)        Hedging Obligations permitted to be incurred under
Section 4.09; 
 (8)        Permitted Business
Investments; and 
 (9)        other Investments in any
Person having an aggregate fair market value (measured on the date each such Investment was made and without giving effect to subsequent changes in value), when taken together with all other Investments made pursuant to this clause (9) that are
at the time outstanding, not to exceed the greater of $50.0 million or 5.0% of the Company’s Consolidated Net Tangible Assets. 

“Permitted Liens” means: 

(1)        Liens securing any Indebtedness under any of the Credit
Facilities and all Obligations and Hedging Obligations relating to such Indebtedness; 

(2)        Liens in favor of the Company or the Guarantors;

 (3)        Liens on property of a Person existing at
the time such Person is merged with or into or consolidated with the Company or any Restricted Subsidiary of the Company, provided that such Liens were in existence prior to the contemplation of such merger or consolidation and do not extend to any
assets other than those of the Person merged into or consolidated with the Company or the Restricted Subsidiary; 

(4)        Liens on property existing at the time of acquisition
of the property by the Company or any Restricted Subsidiary of the Company, provided that such Liens were in existence prior to the contemplation of such acquisition; 

(5)        any interest or title of a lessor to the property
subject to a Capital Lease Obligation; 
  

 18 

 (6)        Liens on
any property or asset acquired, constructed or improved by the Company or any of its Restricted Subsidiaries (a “Purchase Money Lien”), which (a) are in favor of the seller of such property or assets, in favor of the Person
developing, constructing, repairing or improving such asset or property, or in favor of the Person that provided the funding for the acquisition, development, construction, repair or improvement cost, as the case may be, of such asset or property,
(b) are created within 360 days after the acquisition, development, construction, repair or improvement, (c) secure the purchase price or development, construction, repair or improvement cost, as the case may be, of such asset or property
in an amount up to 100% of the fair market value (as determined by the Board of Directors of the Managing General Partner if such fair market value is $15.0 million or more) of such acquisition, construction or improvement of such asset or property,
and (d) are limited to the asset or property so acquired, constructed or improved (including the proceeds thereof, accessions thereto and upgrades thereof); 

(7)        Liens existing on the date of this Indenture other than
Liens securing the Credit Facilities; 
 (8)        Liens
to secure the performance of tenders, bids, statutory obligations, surety or appeal bonds, government contracts, performance bonds or other obligations of a like nature incurred in the ordinary course of business; 

(9)        Liens on and pledges of the Equity Interests of any
Unrestricted Subsidiary or any Joint Venture owned by the Company or any Restricted Subsidiary of the Company to the extent securing Non-Recourse Debt or other Indebtedness of such Unrestricted Subsidiary or Joint Venture; 

(10)        Liens on pipelines or pipeline facilities that arise
by operation of law; 
 (11)        Liens arising under
operating agreements, joint venture agreements, partnership agreements, oil and gas leases, farmout agreements, division orders, contracts for sale, transportation or exchange of crude oil and natural gas, unitization and pooling declarations and
agreements, area of mutual interest agreements and other agreements arising in the ordinary course of business of the Company and its Restricted Subsidiaries that are customary in the Permitted Business; 

(12)        Liens upon specific items of inventory, receivables or
other goods or proceeds of the Company or any of its Restricted Subsidiaries securing such Person’s obligations in respect of bankers’ acceptances or receivables securitizations issued or created for the account of such Person to
facilitate the purchase, shipment or storage of such inventory, receivables or other goods or proceeds and permitted by Section 4.09; 

(13)        Liens securing Obligations of the Issuers or any
Guarantor under the Notes or the Subsidiary Guarantees, as the case may be; 

(14)        Liens securing any Indebtedness equally and ratably
with all Obligations due under the Notes or any Subsidiary Guarantee pursuant to a contractual covenant that limits Liens in a manner substantially similar to Section 4.12; 

 

 19 

 (15)        Liens to
secure performance of Hedging Obligations of the Company or any of its Restricted Subsidiaries; 

(16)        Liens incurred in the ordinary course of business of
the Company or any Restricted Subsidiary of the Company with respect to Indebtedness that does not exceed $10.0 million at any one time outstanding; and 

(17)        any Lien renewing, extending, refinancing or refunding
a Lien permitted by clauses (1) through (15) above; provided that (a) the principal amount of the Indebtedness secured by such Lien is not increased and (b) no assets encumbered by any such Lien other than the assets permitted to
be encumbered immediately prior to such renewal, extension, refinance or refund are encumbered thereby. 

“Permitted Refinancing Indebtedness” means any Indebtedness of the Company or any of its Restricted
Subsidiaries issued in exchange for, or the net proceeds of which are used to extend, refinance, renew, replace, defease or refund other Indebtedness of the Company or any of its Restricted Subsidiaries (other than intercompany Indebtedness);
provided that: 
 (1)        the principal amount of such
Permitted Refinancing Indebtedness does not exceed the principal amount of the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded (plus all accrued interest on the Indebtedness and the amount of all expenses and
premiums incurred in connection therewith); 

(2)        such Permitted Refinancing Indebtedness has a final
maturity date later than the final maturity date of, and has a Weighted Average Life to Maturity equal to or greater than the Weighted Average Life to Maturity of, the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded;

 (3)        if the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded is subordinated in right of payment to the Notes or the Subsidiary Guarantees, such Permitted Refinancing Indebtedness is subordinated in right of payment to the Notes or the Subsidiary Guarantees
on terms at least as favorable to the Noteholders as those contained in the documentation governing the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded; and 

(4)        such Indebtedness is not incurred by a Restricted
Subsidiary of the Company if the Company is the obligor on the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded. 

Notwithstanding the preceding, any Indebtedness incurred under Credit Facilities pursuant to Section 4.09 shall be
subject only to the refinancing provision in the definition of Credit Facilities and not pursuant to the requirements set forth in the definition of Permitted Refinancing Indebtedness. 

“Person” means any individual, corporation, partnership, joint venture, association, joint-stock
company, trust, unincorporated organization, limited liability company or government or other entity. 

“Private Exchange” has the meaning provided in the Appendix. 

 

 20 

 “Private Exchange Notes” has the meaning provided in the
Appendix. 
 “Purchase Agreement” has the meaning provided in the Appendix. 

“QIB” means a “qualified institutional buyer” as defined in Rule 144A under the Securities
Act. 
 “Qualifying Owners” means (1) the significant owners of the parent company of the
Managing General Partner, Inergy Holdings, on the date of this Indenture, consisting of John J. Sherman or any of his Affiliates, (2) Inergy Holdings and its subsidiaries and (3) any transferee of any of the foregoing to the extent such
transferee is approved by the holders of a majority of the membership interests of the Managing General Partner (other than the transferor) or any Affiliate of any of the foregoing. 

“Rating Category” means: 

(1)        with respect to S&P, any of the following
categories: AAA, AA, A, BBB, BB, B, CCC, CC, C and D (or equivalent successor categories); and 

(2)        with respect to Moody’s, any of the following
categories: Aaa, Aa, A, Baa, Ba, B, Caa, Ca, C and D (or equivalent successor categories). 
 “Rating
Decline” means a decrease in the rating of the Notes by either Moody’s or S&P by one or more gradations (including gradations within Rating Categories as well as between Rating Categories). In determining whether the rating of the
Notes has decreased by one or more gradations, gradations within Rating Categories, namely + or – for S&P, and 1, 2, and 3 for Moody’s, will be taken into account; for example, in the case of S&P, a rating decline either from BB+
to BB or BB- to B+ will constitute a decrease of one gradation. 
 “Registered Exchange Offer”
has the meaning provided in the Appendix. 
 “Registration Rights Agreement” has the meaning
provided in the Appendix. 
 “Regulation S” has the meaning provided in the Appendix.

 “Reporting Default” means a Default described in Section 6.01(d). 

“Responsible Officer,” when used with respect to the Trustee, means any officer within the corporate
trust department of the Trustee having direct responsibility for the administration of this Indenture. 

“Restricted Global Note” has the meaning provided in the Appendix. 

“Restricted Investment” means an Investment other than a Permitted Investment. 

“Restricted Subsidiary” of a Person means any Subsidiary of the referent Person that is not an
Unrestricted Subsidiary. Notwithstanding anything in this Indenture to the contrary, Finance Corp. shall be a Restricted Subsidiary of the Company. 

“Rule 144A” has the meaning provided in the Appendix. 

 

 21 

 “S&P” means Standard & Poor’s Ratings
Services, a division of The McGraw-Hill Companies, Inc., or any successor to the rating agency business thereof. 

“SEC” or “Commission” means the Securities and Exchange Commission. 

“Securities Act” means the Securities Act of 1933, as amended. 

“Senior Debt” means 

(1)        all Indebtedness of the Company or any of its
Restricted Subsidiaries outstanding under Credit Facilities and all Hedging Obligations with respect thereto; 

(2)        any other Indebtedness of the Company or any of its
Restricted Subsidiaries permitted to be incurred under the terms of this Indenture, unless the instrument under which such Indebtedness is incurred expressly provides that it is on a parity with or subordinated in right of payment to the Notes or
any Subsidiary Guarantee; and 
 (3)        all
Obligations with respect to the items listed in the preceding clauses (1) and (2). 
 Notwithstanding
anything to the contrary in the preceding sentence, Senior Debt will not include: 
  

	 	(a)	 any intercompany Indebtedness of the Company or any of its Restricted Subsidiaries to the Company or any of its Affiliates; or

  

	 	(b)	 any Indebtedness that is incurred in violation of this Indenture. 

For the avoidance of doubt, “Senior Debt” will not include any trade payables or taxes owed or owing by the Company or any
Restricted Subsidiary. 
 “Shelf Registration Statement” has the meaning provided in the
Appendix. 
 “Significant Subsidiary” means any Subsidiary that would be a “significant
subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as such Regulation is in effect on the date of this Indenture. 

“Special Mandatory Redemption Trigger Event” means the earlier to occur of the following two events:

 (1)        December 31, 2010 if the Tres Palacios
Acquisition has not been consummated by such date; or 

(2)        the termination of the Tres Palacios Acquisition
Agreement. 
 “Stated Maturity” means, with respect to any installment of interest or principal
on any series of Indebtedness, the date on which the payment of interest or principal was scheduled to be paid in the original documentation governing such Indebtedness, and will not include any

  

 22 

 
contingent obligations to repay, redeem or repurchase any such interest or principal prior to the date originally scheduled for the payment thereof. 

“Subsidiary” means, with respect to any specified Person: 

(1)        any corporation, association or other business entity
(other than a partnership or limited liability company) of which more than 50% of the total voting power of Voting Stock is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that
Person (or a combination thereof); and 
 (2)        any
partnership (whether general or limited) or limited liability company (a) the sole general partner or the managing general partner or managing member of which is such Person or a Subsidiary of such Person, or (b) if there are more than a
single general partner or member, either (x) the only general partners or managing members of which are such Person or one or more Subsidiaries of such Person (or any combination thereof) or (y) such Person owns or controls, directly or
indirectly, a majority of the outstanding general partner interests, member interests or other Voting Stock of such partnership or limited liability company, respectively. 

“Subsidiary Guarantees” means the joint and several guarantees issued by all of the Guarantors pursuant
to Article 10 hereof. 
 “TIA” means the Trust Indenture Act of 1939 (15 U.S.C.
§§ 77aaa-77bbbb) and the rules and regulations thereunder, as in effect on the date on which this Indenture is qualified under the TIA (except as provided in Section 9.01(i) and 9.03 hereof). 

“Transfer Restricted Securities” has the meaning provided in the Appendix. 

“Tres Palacios Acquisition” means the acquisition of all of the equity interests in Tres Palacios Gas
Storage LLC by Inergy Midstream, LLC. 
 “Tres Palacios Acquisition Agreement” means the
Purchase and Sale Agreement, dated September 3, 2010, by and between Inergy Midstream, LLC and TP Gas Holding LLC, as amended or supplemented from time to time. 

“Trustee” means the party named as such above until a successor replaces it in accordance with the
applicable provisions of this Indenture and thereafter means the successor serving hereunder. 

“Uniform Commercial Code” means the New York Uniform Commercial Code as in effect from time to time.

  

 23 

 “Unrestricted Subsidiary” means any Subsidiary of the
Company (other than Finance Corp. or the Operating Company) that is designated by the Board of Directors of the Managing General Partner as an Unrestricted Subsidiary pursuant to a Board Resolution, but only to the extent that such Subsidiary:

 (1)        has no Indebtedness other than Non-Recourse
Debt owing to any Person other than the Company or any of its Restricted Subsidiaries; 

(2)        is not party to any agreement, contract, arrangement or
understanding with the Company or any Restricted Subsidiary of the Company unless the terms of any such agreement, contract, arrangement or understanding are no less favorable to the Company or such Restricted Subsidiary than those that might be
obtained at the time from Persons who are not Affiliates of the Company; 

(3)        is a Person with respect to which neither the Company
nor any of its Restricted Subsidiaries has any direct or indirect obligation (a) to subscribe for additional Equity Interests or (b) to maintain or preserve such Person’s financial condition or to cause such Person to achieve any
specified levels of operating results; and 

(4)        has not guaranteed or otherwise directly or indirectly
provided credit support for any Indebtedness of the Company or any of its Restricted Subsidiaries. 
 Any
designation of a Subsidiary of the Company as an Unrestricted Subsidiary will be evidenced to the Trustee by filing with the Trustee a Board Resolution giving effect to such designation and an Officers’ Certificate certifying that such
designation complied with the preceding conditions and was permitted by Section 4.07. If, at any time, any Unrestricted Subsidiary would fail to meet the preceding requirements as an Unrestricted Subsidiary, it will thereafter cease to be an
Unrestricted Subsidiary for purposes of this Indenture and any Indebtedness of such Subsidiary will be deemed to be incurred by a Restricted Subsidiary of the Company as of such date and, if such Indebtedness is not permitted to be incurred as of
such date under Section 4.09, the Company will be in default of such covenant. 
 “Voting
Stock” of any Person as of any date means the Capital Stock of such Person that is at the time entitled (without regard to the occurrence of any contingency) to vote in the election of the Board of Directors of such Person. 

“Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the number of
years obtained by dividing: 
 (1)        the sum of the
products obtained by multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect of the Indebtedness, by (b) the
number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment; by 

(2)        the then outstanding principal amount of such
Indebtedness. 
  

 24 

 Section 1.02.    Other Definitions. 

 

			
	 Term
	  	Defined in Section
		
	 “Affiliate Transaction”
	  	4.11
	 “Appendix”
	  	2.01
	 “Asset Sale Offer”
	  	3.09
	 “Change of Control Offer”
	  	4.15
	 “Change of Control Payment”
	  	4.15
	 “Change of Control Settlement Date”
	  	4.15
	 “Change of Control Settlement Date”
	  	4.15
	 “Covenant Defeasance”
	  	8.03
	 “Discharge”
	  	8.08
	 “Event of Default”
	  	6.01
	 “Excess Proceeds”
	  	4.10
	 “Incremental Funds”
	  	4.07
	 “incur”
	  	4.09
	 “Legal Defeasance”
	  	8.02
	 “Offer Amount”
	  	3.09
	 “Offer Period”
	  	3.09
	 “Paying Agent”
	  	2.03
	 “Payment Default”
	  	6.01
	 “Permitted Debt”
	  	4.09
	 “Registrar”
	  	2.03
	 “Restricted Payments”
	  	4.07
	 “Settlement Date”
	  	3.09
	 “Termination Date”
	  	3.09

Section 1.03.    Incorporation by Reference of Trust Indenture Act. 

Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of
this Indenture. Any terms incorporated in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA have the meanings so assigned to them. 

Section 1.04.    Rules of Construction. 

Unless the context otherwise requires: 

(1)        a term has the meaning assigned to it; 

(2)        an accounting term not otherwise defined has the
meaning assigned to it in accordance with GAAP; 

(3)        “or” is not exclusive; 

(4)        words in the singular include the plural, and in the
plural include the singular; 
 (5)        provisions
apply to successive events and transactions; 
  

 25 

(6)        references to sections of or rules under the Securities
Act or the Exchange Act shall be deemed to include substitute, replacement or successor sections or rules adopted by the SEC from time to time; and 

(7)        “herein,” “hereof” and other words
of similar import refer to this Indenture as a whole (as amended or supplemented from time to time) and not to any particular Article, Section or other subdivision 

ARTICLE 2 
 THE
NOTES 
 Section 2.01.    Form and Dating. 

Provisions relating to the Initial Notes, the Private Exchange Notes and the Exchange Notes are set forth in the Rule
144A/Regulation S Appendix attached hereto (the “Appendix”) which is hereby incorporated in and expressly made part of this Indenture. The Initial Notes and the Trustee’s certificate of authentication therefor shall be substantially
in the form of Exhibit 1 to the Appendix which is hereby incorporated in and expressly made a part of this Indenture. The Exchange Notes, the Private Exchange Notes and the Trustee’s certificate of authentication therefor shall be substantially
in the form of Exhibit A to the Appendix, which is hereby incorporated in and expressly made a part of this Indenture. The Notes may have notations, legends or endorsements required by law, stock exchange rule, agreements to which an Issuer is
subject, if any, or usage (provided that any such notation, legend or endorsement is in a form acceptable to the Company). Each Note shall be dated the date of its authentication. The terms of the Notes set forth in the Appendix are part of the
terms of this Indenture. 
 Section 2.02.    Execution and Authentication. 

An Officer shall sign the Notes on behalf of each Issuer by manual or facsimile signature. 

If an Officer whose signature is on a Note no longer holds that office at the time the Trustee authenticates the Note,
the Note shall be valid nevertheless. 
 A Note shall not be valid until an authorized signatory of the Trustee
manually signs the certificate of authentication on the Note. The signature shall be conclusive evidence that the Note has been authenticated under this Indenture. 

On the Initial Issuance Date, the Trustee shall authenticate and deliver $600.0 million of 7.0% Senior Notes due 2018
and, at any time and from time to time thereafter, the Trustee shall authenticate and deliver Notes for original issue in an aggregate principal amount specified in such order, in each case upon a written order of the Issuers. Such order shall
specify the amount of the Notes to be authenticated, the date on which the original issue of Notes is to be authenticated and to whom the Notes shall be registered and delivered and, in the case of an issuance of Additional Notes pursuant to
Section 2.13 after the Initial Issuance Date, shall certify that such issuance is in compliance with Section 4.09. 

The Trustee may appoint an authenticating agent reasonably acceptable to the Issuers to authenticate the Notes. Unless
limited by the terms of such appointment, an authenticating agent may authenticate Notes whenever the Trustee may do so. Each reference in this Indenture to 

 

 26 

 
authentication by the Trustee includes authentication by such agent. An authenticating agent has the same rights as any Registrar, Paying Agent or agent for service of notices and demands.

 Section 2.03.    Registrar and Paying Agent. 

The Issuers shall maintain an office or agency where Notes may be presented for registration of transfer or for exchange
(the “Registrar”) and an office or agency where Notes may be presented for payment (the “Paying Agent”). The Registrar shall keep a register of the Notes and of their transfer and exchange. The Issuers may have one or more
co-registrars and one or more additional paying agents. The term “Registrar” includes any co-registrar, and the term “Paying Agent” includes any additional paying agent. 

The Issuers shall enter into an appropriate agency agreement with any Registrar or Paying Agent not a party to this
Indenture, which shall incorporate the terms of the TIA. The agreement shall implement the provisions of this Indenture that relate to such agent. The Issuers shall notify the Trustee of the name and address of any such agent. If the Issuers fail to
maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to appropriate compensation therefor pursuant to Section 7.07. The Company or any Subsidiary may act as Paying Agent or Registrar. 

The Issuers initially appoint the Trustee as Registrar and Paying Agent in connection with the Notes. 

Section 2.04.    Paying Agent to Hold Money in Trust. 

Prior to 11:00 a.m. New York City time, on each due date of the principal and interest on any Note, an Issuer shall
deposit with the Paying Agent a sum sufficient to pay such principal and interest when so becoming due. The Issuers shall require each Paying Agent (other than the Trustee) to agree in writing that the Paying Agent shall hold in trust for the
benefit of Noteholders or the Trustee all money held by the Paying Agent for the payment of principal of or interest on the Notes and shall notify the Trustee of any default by the Issuers in making any such payment. If the Company or a Subsidiary
acts as Paying Agent, it shall segregate the money held by it as Paying Agent and hold it as a separate trust fund. The Issuers at any time may require a Paying Agent to pay all money held by it to the Trustee and to account for any funds disbursed
by the Paying Agent. Upon complying with this Section, the Paying Agent shall have no further liability for the money delivered to the Trustee. 

Section 2.05.    Noteholder Lists. 

The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the
names and addresses of Noteholders. If the Trustee is not the Registrar, the Issuers shall furnish to the Trustee, in writing at least five Business Days before each interest payment date and at such other times as the Trustee may request in
writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Noteholders. 
  

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 Section 2.06.    Transfer and Exchange. 

The Notes shall be issued in registered form and shall be transferable only upon the surrender of a Note for registration
of transfer. When a Note is presented to the Registrar or a co-registrar with a request to register a transfer, the Registrar shall register the transfer as requested if the requirements of this Indenture and Section 8-401(a) of the Uniform
Commercial Code are met. When Notes are presented to the Registrar with a request to exchange them for an equal principal amount of Notes of other denominations, the Registrar shall make the exchange as requested if the same requirements are met.
The Issuers may require payment of a sum sufficient to cover any taxes, assessments or other governmental charges in connection with any transfer or exchange pursuant to this Section (other than any such transfer taxes, assessments or similar
governmental charge payable upon exchange or transfer pursuant to Section 3.06, 4.10, 4.15 or 9.05). 

Section 2.07.    Replacement Notes. 

If a mutilated Note is surrendered to the Registrar or if the Holder of a Note claims that the Note has been lost,
destroyed or wrongfully taken, the Issuers shall issue and the Trustee shall authenticate a replacement Note if the requirements of Section 8-405 of the Uniform Commercial Code are met and the Holder satisfies any other reasonable requirements
of the Trustee. If required by the Trustee or the Issuers, such Holder shall furnish an indemnity bond sufficient in the judgment of the Issuers and the Trustee to protect the Issuers, the Trustee, the Paying Agent and the Registrar from any loss
which any of them may suffer if a Note is replaced. The Issuers and the Trustee may charge the Holder for their expenses in replacing a Note. 

Every replacement Note is an additional obligation of the Issuers. 

Section 2.08.    Outstanding Notes. 

Notes outstanding at any time are all Notes authenticated by the Trustee except for those canceled by it, those delivered
to it for cancellation and those described in this Section as not outstanding. Except as otherwise provided in TIA §316(a), a Note does not cease to be outstanding because the Company or an Affiliate of the Company holds the Note. 

If a Note is replaced pursuant to Section 2.07, it ceases to be outstanding unless the Trustee and the Issuers
receive proof satisfactory to them that the replaced Note is held by a bona fide purchaser. 
 If the Paying
Agent segregates and holds in trust, in accordance with this Indenture, by 11:00 a.m. New York time, on a redemption date or other maturity date money sufficient to pay all principal, premium, if any, interest and Additional Interest, if any,
payable on that date with respect to the Notes (or portions thereof) to be redeemed or maturing, as the case may be, then on and after that date such Notes (or portions thereof) cease to be outstanding and interest and Additional Interest, if any,
on them cease to accrue. 
  

 28 

 Section 2.09.    Temporary Notes. 

Until definitive Notes are ready for delivery, the Issuers may prepare and the Trustee shall authenticate temporary Notes.
Temporary Notes shall be substantially in the form of definitive Notes but may have variations that the Issuers consider appropriate for temporary Notes. Without unreasonable delay, the Issuers shall prepare and the Trustee shall authenticate
definitive Notes and deliver them in exchange for temporary Notes. 
 Section 2.10.    Cancellation.

 An Issuer at any time may deliver Notes to the Trustee for cancellation. The Registrar and the Paying Agent
shall forward to the Trustee any Notes surrendered to them for registration of transfer, exchange or payment. The Trustee and no one else shall cancel (subject to the record retention requirements of the Exchange Act) all Notes surrendered for
registration of transfer, exchange, payment or cancellation. Upon written request, the Trustee will deliver a certificate of such cancellation to the Issuers unless the Issuers direct the Trustee to deliver canceled Notes to the Issuers instead. The
Issuers may not issue new Notes to replace Notes they have redeemed, paid or delivered to the Trustee for cancellation. 

Section 2.11.    Defaulted Interest. 

If the Issuers default in a payment of interest on the Notes, the Issuers shall pay defaulted interest (plus interest on
such defaulted interest to the extent lawful) in any lawful manner. The Issuers may pay the defaulted interest to the Persons who are Noteholders on a subsequent special record date. The Issuers shall fix or cause to be fixed any such special record
date and payment date to the reasonable satisfaction of the Trustee and shall promptly mail to each Noteholder a notice that states the special record date, the payment date and the amount of defaulted interest to be paid. 

Section 2.12.    CUSIP Numbers. 

The Issuers in issuing the Notes may use “CUSIP” numbers and corresponding “ISINs” (if then generally
in use) and, if so, the Trustee shall use “CUSIP” numbers and corresponding “ISINs” in notices of redemption as a convenience to Holders; provided, however, that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Notes or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Notes, and any such redemption shall not be affected by
any defect in or omission of such numbers. 
 Section 2.13.    Issuance of Additional Notes.

 The Issuers shall be entitled, subject to their compliance with Section 4.09, to issue Additional Notes
under this Indenture which shall have identical terms as the Initial Notes issued on the Initial Issuance Date, other than with respect to the date of issuance and issue price. The Initial Notes issued on the Initial Issuance Date, any Additional
Notes and all Exchange Notes or Private Exchange Notes issued in exchange therefor shall be treated as a single class for all purposes under this Indenture, including, without limitation, waivers, consents, directions, declarations, amendments,
redemptions and offers to purchase. 
  

 29 

 With respect to any Additional Notes, the Issuers shall set forth in an
Officers’ Certificate, which shall be delivered to the Trustee, the following information: 

(1)        the aggregate principal amount of such Additional Notes
to be authenticated and delivered pursuant to this Indenture; 

(2)        the issue price, the issue date and the CUSIP number
and any corresponding ISIN of such Additional Notes; provided, however, that no Additional Notes may be issued at a price that would cause such Additional Notes to have “original issue discount” within the meaning of Section 1273 of
the Code; and 
 (3)        whether such Additional Notes
shall be Transfer Restricted Securities and issued in the form of Initial Notes as set forth in Exhibit 1 to the Appendix to this Indenture or shall be issued in the form of Exchange Notes as set forth in Exhibit A to the Appendix. 

ARTICLE 3 

REDEMPTION AND PREPAYMENT 

Section 3.01.    Notices to Trustee. 

If the Issuers elect to redeem Notes pursuant to the optional redemption provisions of Section 3.07 hereof, they
shall furnish to the Trustee, at least five Business Days (unless a shorter period shall be agreeable to the Trustee) before the date of giving notice of the redemption pursuant to Section 3.03, an Officers’ Certificate setting forth
(i) the clause of Section 3.07 pursuant to which the redemption shall occur, (ii) the redemption date, (iii) the principal amount of Notes to be redeemed, (iv) the redemption price, and (v) whether it requests the
Trustee to give notice of such redemption. Any such notice may be cancelled at any time prior to the mailing of notice of such redemption to any Holder and shall thereby be void and of no effect. 

Section 3.02.    Selection of Notes to Be Redeemed. 

If less than all of the Notes are to be redeemed at any time, the Trustee shall select the Notes to be redeemed among the
Holders of the Notes as follows: (1) if the Notes are listed on any national securities exchange, in compliance with the requirements of the principal national securities exchange on which the Notes are listed; or (2) if the Notes are not
listed on any national securities exchange, on a pro rata basis. In the event of partial redemption other than on a pro rata basis, the particular Notes to be redeemed shall be selected, not less than five (5) Business Days (unless a shorter
period shall be agreeable to the Trustee) prior to the giving of notice of the redemption pursuant to Section 3.03, by the Trustee from the outstanding Notes not previously called for redemption. 

The Trustee shall promptly notify the Issuers in writing of the Notes selected for redemption and, in the case of any
Note selected for partial redemption, the principal amount thereof to be redeemed. Notes and portions of Notes selected shall be in amounts of $2,000 or whole multiples of $1,000 in excess thereof; except that if all of the Notes of a Holder are to
be redeemed, the entire outstanding amount of Notes held by such Holder, even if such amount does not equal $2,000 or a multiple of $1,000 in excess thereof, shall be redeemed. Provisions of this

  

 30 

 
Indenture that apply to Notes called for redemption also apply to portions of Notes called for redemption. 

The provisions of the two preceding paragraphs of this Section 3.02 shall not apply with respect to any redemption
affecting only a Global Note, whether such Global Note is to be redeemed in whole or in part. In case of any such redemption in part, the unredeemed portion of the principal amount of the Global Note shall be in an authorized denomination.

 Section 3.03.    Notice of Redemption. 

Subject to the provisions of Section 3.09 hereof and except as otherwise provided in Section 3.08 hereof in
relation to a mandatory redemption, at least 30 days but not more than 60 days before a redemption date, the Issuers shall mail or cause to be mailed, by first class mail, a notice of redemption to each Holder whose Notes are to be redeemed at its
registered address, except that redemption notices may be mailed more than 60 days prior to a redemption date if the notice is issued in connection with a Legal Defeasance, Covenant Defeasance or Discharge. 

The notice shall identify the Notes to be redeemed and shall state: 

(a)        the redemption date; 

(b)        the redemption price; 

(c)        if any Note is being redeemed in part, the portion of
the principal amount of such Note to be redeemed and that, after the redemption date upon surrender of such Note, a new Note or Notes in a principal amount equal to the unredeemed portion shall be issued in the name of the Holder upon cancellation
of the original Note; 
 (d)        the name and address
of the Paying Agent; 
 (e)        that Notes called for
redemption must be surrendered to the Paying Agent to collect the redemption price; 

(f)        that, unless the Issuers default in making such
redemption payment, interest and Additional Interest, if any, on Notes called for redemption cease to accrue on and after the redemption date and the only remaining right of the Holders of such Notes is to receive payment of the redemption price
upon surrender to the Paying Agent of the Notes redeemed; 

(g)        the paragraph of the Notes and/or Section of this
Indenture pursuant to which the Notes called for redemption are being redeemed; and 

(h)        that no representation is made as to the correctness or
accuracy of the CUSIP or ISIN number, if any, listed in such notice or printed on the Notes. 
 If any of the
Notes to be redeemed is in the form of a Global Note, then the Issuers shall modify such notice to the extent necessary to accord with the procedures of the Depository applicable to redemption. 

 

 31 

 At the Issuers’ request, the Trustee shall give the notice of
redemption in the Issuers’ names and at their expense; provided, however, that the Issuers shall have delivered to the Trustee, as provided in Section 3.01, an Officers’ Certificate requesting that the Trustee give such notice and
setting forth the information to be stated in such notice as provided in the second preceding paragraph. 

Section 3.04.    Effect of Notice of Redemption. 

Once notice of redemption is mailed in accordance with Section 3.03 hereof, Notes called for redemption become
irrevocably due and payable on the redemption date at the redemption price. A notice of redemption may not be conditional, except that any redemption pursuant to Section 3.07(b) may, at the Issuers’ discretion, be subject to completion of
the related Equity Offering. If mailed in the manner provided for in Section 3.03, the notice of redemption shall be conclusively presumed to have been given whether or not a Holder receives such notice. Failure to give timely notice or any
defect in the notice shall not affect the validity of the redemption. 
 Section 3.05.    Deposit of
Redemption Price. 
 Prior to 11:00 a.m., New York City time, on the redemption date, the Issuers shall deposit
with the Paying Agent (or, if the Company or a Subsidiary thereof is acting as its own Paying Agent, segregate and hold in trust as provided in Section 2.04 hereof) money sufficient in same day funds to pay the redemption price of and accrued
interest and Additional Interest, if any, on all Notes to be redeemed on that date, it being understood that the amount of money to be deposited by the Company in relation to a mandatory redemption pursuant to Section 3.08 shall take into
consideration the amount of money deposited by the Escrow Agent with the Trustee or a Paying Agent to fund such redemption. The Paying Agent shall promptly return to the Issuers any money deposited with the Paying Agent by an Issuer in excess of the
amounts necessary to pay the redemption price of and accrued interest and Additional Interest, if any, on all Notes to be redeemed. 

If the Issuers comply with the provisions of the preceding paragraph, on and after the redemption date, interest and
Additional Interest, if any, shall cease to accrue on the Notes or the portions of Notes called for redemption whether or not such Notes are presented for payment, and the only remaining right of the Holders of such Notes shall be to receive payment
of the redemption price upon surrender to the Paying Agent of the Notes redeemed. If any Note called for redemption shall not be so paid upon surrender for redemption because of the failure of an Issuer to comply with the preceding paragraph,
interest shall be paid on the unpaid principal, from the redemption date until such principal is paid, and to the extent lawful, on any interest and Additional Interest, if any, not paid on such unpaid principal, in each case at the rate provided in
the Notes and in Section 4.01 hereof. 
 Section 3.06.    Notes Redeemed in Part. 

Upon surrender of a Note that is redeemed in part, the Issuers shall issue in the name of the Holder and the Trustee shall
authenticate for the Holder at the expense of the Issuers a new Note equal in principal amount to the unredeemed portion of the Note surrendered. 
  

 32 

 Section 3.07.    Optional Redemption. 

(a)        Except as set forth in clauses (b) and (c) of this
Section 3.07, the Issuers shall not have the option to redeem the Notes pursuant to this Section 3.07 prior to October 1, 2014. On or after October 1, 2014, the Issuers shall have the option to redeem the Notes, in whole or in
part at any time, at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest and Additional Interest, if any, to the applicable redemption date, if redeemed during the twelve-month
period beginning on October 1 of the years indicated below: 
  

			
	 YEAR
	  	PERCENTAGE
	   2014
	  	103.500%
	   2015
	  	101.750%
	   2016
	  	100.000%

(b)        Notwithstanding the provisions of clause (a) of this
Section 3.07, at any time prior to October 1, 2013, the Issuers may on one or more occasions redeem up to 35% of the aggregate principal amount of Notes (including any Additional Notes) issued under this Indenture at a redemption price of
107.000% of the principal amount thereof, plus accrued and unpaid interest and Additional Interest, if any, to the redemption date, with the net cash proceeds of one or more Equity Offerings, provided that: 

(1)        at least 65% of the aggregate principal amount of Notes
(including any Additional Notes) issued under this Indenture remains outstanding immediately after the occurrence of each such redemption (excluding any Notes held by the Company and its Subsidiaries); and 

(2)        each such redemption occurs within 150 days of the date
of the closing of each such Equity Offering. 
 (c)        The Issuers
shall have the right to redeem the Notes in accordance with the terms, and subject to the conditions, set forth in Section 4.15(7) hereof. 

(d)        Any redemption pursuant to this Section 3.07 shall be made
pursuant to the provisions of Section 3.01 through Section 3.06 hereof. 
 Section 3.08. Mandatory Redemption.

 (a)        The Trustee is hereby authorized and
directed to enter into and perform its obligations under the Escrow Agreement on the Initial Issuance Date and any amendment to the Escrow Agreement authorized under the terms thereof. After the Initial Purchasers have deposited the net proceeds of
the Initial Notes with the Escrow Agent on the Initial Issuance Date as provided in the Escrow Agreement, the Escrow Agent shall hold and invest such funds as provided in the Escrow Agreement, and, subject to and in accordance with the conditions
and requirements set forth in the Escrow Agreement, it shall either disburse such funds to or for the account of the Company or disburse them to the Trustee or the Paying Agent for application to the mandatory redemption of the Initial Notes
pursuant to this Section 3.08. 
  

 33 

 (b)        Following
the occurrence of the Special Mandatory Redemption Trigger Event, the Issuers shall redeem the Initial Notes as a whole, upon notice as provided in this Section 3.08, at a redemption price equal to 100% of the principal amount thereof plus
accrued and unpaid interest to the redemption date. Notwithstanding the provisions of Section 3.03, notice of such mandatory redemption shall be given within ten days of the date of the Special Mandatory Redemption Trigger Event by first-class
mail, mailed not less than 15 nor more than 30 days prior to the redemption date, to the Escrow Agent, to the Trustee and to each Holder, at its registered address, and such notice shall state, in addition to the matters specified in clauses
(a)-(h) of Section 3.03, that the Special Mandatory Redemption Trigger Event has occurred. 

(c)        Any redemption pursuant to this Section 3.08 shall
be made pursuant to the provisions of Sections 3.03 through 3.05 hereof. 
 Section 3.09.    Offer to
Purchase by Application of Excess Proceeds. 
 In the event that, pursuant to Section 4.10 hereof, the
Company shall be required to commence an offer to all Holders to purchase Notes (an “Asset Sale Offer”), it shall follow the procedures specified below. 

The Asset Sale Offer shall remain open for a period of 20 Business Days following its commencement and no longer, except
to the extent that a longer period is required by Applicable Law (the “Offer Period”). No later than five Business Days after the termination of the Offer Period (the “Settlement Date”), the Company shall purchase and pay for the
principal amount of Notes required to be purchased pursuant to Section 4.10 hereof (the “Offer Amount”) or, if less than the Offer Amount has been tendered, all Notes validly tendered in response to the Asset Sale Offer. Payment for
any Notes so purchased shall be made in the manner prescribed in the Notes. 
 Upon the commencement of an Asset
Sale Offer, the Company shall send, by first class mail, a notice to each of the Holders, with a copy to the Trustee. The notice shall contain all instructions and materials necessary to enable such Holders to tender Notes pursuant to the Asset Sale
Offer. The Asset Sale Offer shall be made to all Holders. The notice, which shall govern the terms of the Asset Sale Offer, shall state: 

(a)        that the Asset Sale Offer is being made pursuant to
this Section 3.09 and Section 4.10 hereof and the length of time the Asset Sale Offer shall remain open, including the time and date the Asset Sale Offer will terminate (the “Termination Date”); 

(b)        the Offer Amount and the purchase price; 

(c)        that any Note not tendered or accepted for payment
shall continue to accrue interest and Additional Interest, if any; 

(d)        that, unless the Company defaults in making such
payment, any Note accepted for payment pursuant to the Asset Sale Offer shall cease to accrue interest and Additional Interest, if any, after the Settlement Date; 

 

 34 

 (e)        that
Holders electing to have a Note purchased pursuant to an Asset Sale Offer may only elect to have all of such Note purchased and may not elect to have only a portion of such Note purchased; 

(f)        that Holders electing to have a Note purchased pursuant
to any Asset Sale Offer shall be required to surrender the Note, with the form entitled “Option of Holder to Elect Purchase” on the reverse of the Note completed, to the Company or a Paying Agent at the address specified in the notice,
before the Termination Date; 
 (g)        that Holders
shall be entitled to withdraw their election if the Company or the Paying Agent, as the case may be, receives, prior to the Termination Date, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal
amount of the Note the Holder delivered for purchase and a statement that such Holder is withdrawing his election to have such Note purchased; 

(h)        that, if the aggregate principal amount of Notes
surrendered by Holders, and Pari Passu Indebtedness surrendered by holders or lenders, collectively, exceeds the amount the Company is required to repurchase, the Trustee shall select the Notes and Pari Passu Indebtedness to be purchased on a pro
rata basis on the basis of the aggregate principal amount of tendered Notes and Pari Passu Indebtedness (with such adjustments as may be deemed appropriate by the Trustee so that only Notes in denominations of $2,000, or integral multiples of $1,000
in excess thereof, shall be purchased); and 

(i)        that Holders whose Notes were purchased only in part
shall be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered (or transferred by book-entry transfer). 

If any of the Notes subject to an Asset Sale Offer is in the form of a Global Note, then the Company shall modify such
notice to the extent necessary to accord with the procedures of the Depository applicable to repurchases. 

Promptly after the Termination Date, the Company shall, to the extent lawful, accept for payment Notes or portions
thereof tendered pursuant to the Asset Sale Offer in the aggregate principal amount required by Section 4.10 hereof, and prior to the Settlement Date it shall deliver to the Trustee an Officers’ Certificate stating that such Notes or
portions thereof were accepted for payment by the Company in accordance with the terms of this Section 3.09 and Section 4.10. Prior to 11:00 a.m., New York City time, on the Settlement Date, the Company or the Paying Agent, as the case may
be, shall mail or deliver to each tendering Holder an amount equal to the purchase price of the Notes tendered by such Holder and accepted by the Company for purchase, and the Company shall issue a new Note, and the Trustee shall authenticate and
mail or deliver such new Note to such Holder, in a principal amount equal to any unpurchased portion of the Note surrendered. Any Note not so accepted shall be promptly mailed or delivered by the Company to the Holder thereof. The Company shall
publicly announce the results of the Asset Sale Offer on or before the Settlement Date. 
  

 35 

 Section 3.10.    No Mandatory Sinking Fund. 

Except as set forth under Sections 3.08, 4.10 and 4.15 hereof, neither of the Issuers shall be required to make mandatory
redemption or sinking fund payments with respect to the Notes or to repurchase the Notes at the option of the Holders. 
 ARTICLE
4 
 COVENANTS 

Section 4.01.    Payment of Notes. 

The Issuers shall pay or cause to be paid the principal of, premium, if any, interest and Additional Interest, if any, on
the Notes on the dates and in the manner provided in the Notes. Principal, premium, if any, interest and Additional Interest, if any, shall be considered paid on the date due if the Paying Agent, if other than the Company or a Subsidiary thereof,
holds as of 11:00 a.m., New York City time, on the due date money deposited by an Issuer or a Guarantor in immediately available funds and designated for and sufficient to pay all principal, premium, if any, interest and Additional Interest, if any,
then due. 
 The Issuers shall pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal at the rate equal to the interest rate on the Notes to the extent lawful; and they shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest and Additional Interest, if any (without regard to any applicable grace period), at the same rate to the extent lawful. 

Section 4.02.    Maintenance of Office or Agency. 

The Issuers shall maintain an office or agency (which may be an office of the Trustee or an affiliate of the Trustee)
where Notes may be presented or surrendered for payment, where Notes may be surrendered for registration of transfer or for exchange and where notices and demands to or upon the Issuers in respect of the Notes and this Indenture may be served. The
Issuers shall give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. If at any time the Issuers shall fail to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee. 

The Issuers may also from time to time designate one or more other offices or agencies where the Notes may be presented
or surrendered for any or all such purposes and may from time to time rescind such designations. Further, if at any time there shall be no such office or agency in the City of New York where the Notes may be presented or surrendered for payment, the
Issuers shall forthwith designate and maintain such an office or agency in the City of New York, in order that the Notes shall at all times be payable in the City of New York. The Issuers shall give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other office or agency. 
 The Issuers
hereby designate the Corporate Trust Office of the Trustee as one such office or agency of the Company in accordance with Section 2.03. In addition, the Issuers hereby designate the office of the Trustee in the City of New York, which is
located at 100 Wall Street, 
  

 36 

 
Suite 1600, New York, New York 10006 on the date hereof, as an additional place where Notes may be presented or surrendered for payment. 

Section 4.03.    Reports. 

(a)        Notwithstanding that the Company may not be subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act, so long as any Notes are outstanding, the Company will file with the SEC (unless the SEC will not accept such a filing) for public availability within the time periods specified in the
SEC’s rules and regulations under the Exchange Act and, within five Business Days of filing, or attempting to file, the same with the SEC, furnish to the Trustee and, upon its prior request, to any of the Holders or Beneficial Owners of the
Notes: 
 (1)        all quarterly and annual financial
and other information with respect to the Company and its Subsidiaries that would be required to be contained in a filing with the SEC on Forms 10-Q and 10-K if the Company were required to file such forms, including a “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” and, with respect to the annual information only, a report thereon by the Company’s certified independent accountants; and 

(2)        all current reports that would be required to be filed
with the SEC on Form 8-K if the Company were required to file such reports. 
 The Company shall at all times comply with TIA
§ 314(a). 
 (b)        The Company and the Guarantors shall furnish
to the Holders and Beneficial Owners of the Notes, prospective purchasers of the Notes and securities analysts, upon their request, the information, if any, required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act. 

(c)        If the Company has designated any of its Subsidiaries as Unrestricted
Subsidiaries, then the quarterly and annual financial information required by paragraph (a) of this Section 4.03 shall include a reasonably detailed presentation, either on the face of the financial statements or in the footnotes to the
financial statements and in Management’s Discussion and Analysis of Financial Condition and Results of Operations, of the financial condition and results of operations of the Company and its Restricted Subsidiaries separate from the financial
condition and results of operations of the Unrestricted Subsidiaries. 

(d)        Delivery of reports, information and documents to the Trustee under
this Section is for informational purposes only and the Trustee’s receipt of the foregoing shall not constitute constructive notice of any information contained therein or determinable from information contained therein. 

Section 4.04.     Compliance Certificate. 

(a)        The Issuers shall deliver to the Trustee, within 90 days after the end
of each fiscal year, an Officers’ Certificate stating that a review of the activities of the Company and its Restricted Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view to
determining whether the Company has kept, observed, performed and fulfilled its obligations under this Indenture, and further stating, as to each such Officer signing such certificate, that to the best of his or her knowledge the Company has kept,
observed, 
  

 37 

 
performed and fulfilled each and every covenant contained in this Indenture and is not in default in the performance or observance of any of the terms, provisions and conditions of this Indenture
(or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which he or she may have knowledge and what action the Company is taking or proposes to take with respect thereto) and that to the best
of his or her knowledge no event has occurred and remains in existence by reason of which payments of interest on the Notes are prohibited or if such event has occurred, a description of the event and what action the Company is taking or proposes to
take with respect thereto. 
 (b)        [Reserved]. 

(c)        The Issuers shall, so long as any of the Notes are outstanding,
deliver to the Trustee, forthwith upon any of their respective Officers becoming aware of any Default or Event of Default, an Officers’ Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to
take with respect thereto. 
 Section 4.05.    Taxes. 

The Company shall pay, and shall cause each of its Subsidiaries to pay, prior to delinquency, all material taxes,
assessments, and governmental levies except such as are contested in good faith and by appropriate proceedings or where the failure to effect such payment is not adverse in any material respect to the Holders of the Notes. 

Section 4.06.    Stay, Extension and Usury Laws. 

Each of the Issuers and each of the Guarantors covenants (to the extent that it may lawfully do so) that it shall not at
any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the performance of this
Indenture; and each Issuer (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it shall not, by resort to any such law, hinder, delay or impede the execution of any power
herein granted to the Trustee, but shall suffer and permit the execution of every such power as though no such law has been enacted. 

Section 4.07.    Limitation on Restricted Payments. 

The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly: 

(1)        declare or pay any dividend or make any other payment
or distribution on account of the Company’s or any of its Restricted Subsidiaries’ Equity Interests or to the direct or indirect holders of the Company’s or any of its Restricted Subsidiaries’ Equity Interests in their capacity
as such (other than dividends or distributions payable in Equity Interests (other than Disqualified Stock) of the Company or payable to the Company or a Restricted Subsidiary of the Company); 

 

 38 

 (2)        purchase,
redeem or otherwise acquire or retire for value (including, without limitation, in connection with any merger or consolidation involving the Company) any Equity Interests of the Company or any direct or indirect parent of the Company; 

(3)        make any payment on or with respect to, or purchase,
redeem, defease or otherwise acquire or retire for value any Indebtedness that is subordinated to the Notes or the Subsidiary Guarantees, except a payment of interest or principal at the Stated Maturity thereof; or 

(4)        make any Restricted Investment (all such payments and
other actions set forth in these clauses (1) through (4) above being collectively referred to as “Restricted Payments”), 

unless, at the time of and after giving effect to such Restricted Payment, no Default (except a Reporting Default) or Event of Default
has occurred and is continuing or would occur as a consequence of such Restricted Payment and either: 

(1)        if the Fixed Charge Coverage Ratio for the
Company’s most recently ended four full fiscal quarters for which internal financial statements are available at the time of such Restricted Payment is not less than 1.75 to 1.0, such Restricted Payment, together with the aggregate amount of
all other Restricted Payments made by the Company and its Restricted Subsidiaries (excluding Restricted Payments permitted by clauses (2), (3), (4) and (5) of the next succeeding paragraph) with respect to the quarter for which such
Restricted Payment is made, is less than the sum, without duplication, of: 

(a)        Available Cash from Operating Surplus with respect to
the Company’s preceding fiscal quarter, plus 

(b)        100% of the aggregate net cash proceeds received by
the Company (including the fair market value of any Permitted Business or long-term assets that are used or useful in a Permitted Business to the extent acquired in consideration of Equity Interests of the Company (other than Disqualified Stock))
after December 22, 2004 as a contribution to its common equity capital or from the issue or sale of Equity Interests of the Company (other than Disqualified Stock) or from the issue or sale of convertible or exchangeable Disqualified Stock or
convertible or exchangeable debt securities of the Company that have been converted into or exchanged for such Equity Interests (other than Equity Interests (or Disqualified Stock or debt securities) sold to a Restricted Subsidiary of the Company),
plus 
 (c)        to the extent that any Restricted
Investment that was made after December 22, 2004 is sold for cash or otherwise liquidated or repaid for cash, the lesser of (i) the cash return of capital with respect to such Restricted Investment (less the cost of disposition, if any)
and (ii) the initial amount of such Restricted Investment, plus 

(d)        the net reduction in Restricted Investments resulting
from dividends, repayments of loans or advances, or other transfers of assets in each 
  

 39 

 
case to the Company or any of its Restricted Subsidiaries from any Person (including, without limitation, Unrestricted Subsidiaries) or from redesignations of Unrestricted Subsidiaries as
Restricted Subsidiaries, to the extent such amounts have not been included in Available Cash from Operating Surplus for any period commending on or after December 22, 2004 (items (b), (c) and (d) being referred to as “Incremental
Funds”), minus 
 (e)        the aggregate amount
of Incremental Funds previously expended pursuant to this clause (1) and clause (2) below; or 

(2)        if the Fixed Charge Coverage Ratio for the
Company’s most recently ended four full fiscal quarters for which internal financial statements are available at the time of such Restricted Payment is less than 1.75 to 1.00, such Restricted Payment, together with the aggregate amount of all
other Restricted Payments made by the Company and its Restricted Subsidiaries (excluding Restricted Payments permitted by clauses (2), (3), (4) and (5) of the next succeeding paragraph) with respect to the quarter for which such Restricted
Payment is made (such Restricted Payments for purposes of this clause (2) meaning only distributions on limited partnership interests of the Company, plus the related distribution on the general partner interest and any distributions made with
respect to incentive distribution rights), is less than the sum, without duplication, of: 

(a)        $115.0 million less the aggregate amount of all
Restricted Payments made by the Company and its Restricted Subsidiaries pursuant to this clause (2)(a) during the period ending on the last day of the fiscal quarter immediately preceding the date of such Restricted Payment and beginning on
December 22, 2004, plus 
 (b)        Incremental
Funds to the extent not previously expended pursuant to this clause (2) or clause (1) above. 
 So
long as no Default (except a Reporting Default) or Event of Default has occurred and is continuing or would be caused thereby (except with respect to clause (1) below under which the payment of a distribution or dividend is permitted), the
preceding provisions will not prohibit: 
 (1)        the
payment of any dividend or distribution within 60 days after the date of its declaration, if at the date of declaration the payment would have complied with the provisions of this Indenture; 

(2)        the redemption, repurchase, retirement, defeasance or
other acquisition of any subordinated Indebtedness of the Company or any Guarantor or of any Equity Interests of the Company in exchange for, or out of the net cash proceeds of the substantially concurrent (a) contribution (other than from a
Restricted Subsidiary of the Company) to the equity capital of the Company or (b) sale (other than to a Restricted Subsidiary of the Company) of, Equity Interests of the Company (other than Disqualified Stock), with a sale being deemed
substantially concurrent if such redemption, repurchase, retirement, defeasance or acquisition occurs not more than 120 days after such sale; provided, however, that the amount of any such net cash proceeds that are utilized for any

  

 40 

 
such redemption, repurchase, retirement, defeasance or other acquisition will be excluded or deducted from the calculation of Available Cash from Operating Surplus and Incremental Funds;

 (3)        the defeasance, redemption, repurchase,
retirement or other acquisition of subordinated Indebtedness of the Company or any Guarantor with the net cash proceeds from an incurrence of, or in exchange for, Permitted Refinancing Indebtedness; 

(4)        the payment of any dividend or distribution by a
Restricted Subsidiary of the Company to the holders of its Equity Interests on a pro rata basis; or 

(5)        the repurchase, redemption or other acquisition or
retirement for value of any Equity Interests of the Company or any Restricted Subsidiary of the Company pursuant to any director or employee equity subscription agreement or equity option agreement or other employee benefit plan or to satisfy
obligations under any Equity Interests appreciation rights or option plan or similar arrangement; provided that the aggregate price paid for all such repurchased, redeemed, acquired or retired Equity Interests may not exceed $2.0 million in any
calendar year. 
 The amount of all Restricted Payments (other than cash) will be the fair market value on the
date of the Restricted Payment of the asset(s) or securities proposed to be transferred or issued by the Company or such Restricted Subsidiary, as the case may be, pursuant to the Restricted Payment. The fair market value of any assets or securities
that are required to be valued by this covenant will be determined, in the case of amounts under $15.0 million, by an officer of the Managing General Partner and, in the case of amounts over $15.0 million, by the Board of Directors of the Managing
General Partner, whose determination shall be evidenced by a Board Resolution. Not later than the date of making any Restricted Payment (excluding any Restricted Payment described in the preceding clause (2), (3), (4) or (5)) the Company
will deliver to the Trustee an Officers’ Certificate stating that such Restricted Payment is permitted and setting forth the basis upon which the calculations required by this Section 4.07 were computed. For purposes of determining
compliance with this Section 4.07, in the event that a Restricted Payment meets the criteria of more than one of the categories of Restricted Payments described in the preceding clauses (1) – (5), the Company will be permitted to
classify (or later classify or reclassify in whole or in part in its sole discretion) such Restricted Payment in any manner that complies with this Section 4.07. 

Section 4.08.    Limitation on Dividend and Other Payment Restrictions Affecting Subsidiaries. 

The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create or permit
to exist or become effective any consensual encumbrance or restriction on the ability of any Restricted Subsidiary to: 

(1)        pay dividends or make any other distributions on its
Capital Stock to the Company or any of its Restricted Subsidiaries, or pay any Indebtedness or other obligations owed to the Company or any of its Restricted Subsidiaries; 

(2)        make loans or advances to the Company or any of its
Restricted Subsidiaries; or 
  

 41 

 (3)        transfer
any of its properties or assets to the Company or any of its Restricted Subsidiaries. 
 However, the preceding
restrictions of this Section 4.08 will not apply to encumbrances or restrictions existing under or by reason of: 

(1)        agreements as in effect on the date of this Indenture
and any amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings of those agreements or the Indebtedness to which they relate, provided that the amendments, modifications, restatements,
renewals, increases, supplements, refundings, replacement or refinancings are no more restrictive, taken as a whole, with respect to such dividend, distribution and other payment restrictions than those contained in those agreements on the date of
this Indenture; 
 (2)        this Indenture, the Notes
and the Subsidiary Guarantees; 
 (3)        Applicable
Law; 
 (4)        any instrument governing Indebtedness
or Capital Stock of a Person acquired by the Company or any of its Restricted Subsidiaries as in effect at the time of such acquisition, which encumbrance or restriction is not applicable to any Person, or the properties or assets of any Person,
other than the Person, or the property or assets of the Person, so acquired, provided that, in the case of Indebtedness, such Indebtedness was otherwise permitted by the terms of this Indenture to be incurred; 

(5)        customary non-assignment provisions in Hydrocarbon
purchase and sale or exchange agreements or similar operational agreements or in licenses or leases, in each case entered into in the ordinary course of business and consistent with past practices; 

(6)        Capital Lease Obligations, mortgage financings or
purchase money obligations, in each case for property acquired in the ordinary course of business that impose restrictions on that property of the nature described in clause (3) of the preceding paragraph; 

(7)        any agreement for the sale or other disposition of a
Restricted Subsidiary of the Company that restricts distributions by that Restricted Subsidiary pending its sale or other disposition; 

(8)        Permitted Refinancing Indebtedness, provided that the
restrictions contained in the agreements governing such Permitted Refinancing Indebtedness are not materially more restrictive, taken as a whole, than those contained in the agreements governing the Indebtedness being refinanced; 

(9)        Liens securing Indebtedness otherwise permitted to be
incurred under the provisions of Section 4.12 that limit the right of the debtor to dispose of the assets subject to such Liens; 
  

 42 

(10)        provisions with respect to the disposition or
distribution of assets or property in joint venture agreements, asset sale agreements, stock sale agreements and other similar agreements entered into in the ordinary course of business; 

(11)        any agreement or instrument relating to any property
or assets acquired after the date of this Indenture, so long as such encumbrance or restriction relates only to the property or assets so acquired and is not and was not created in anticipation of such acquisitions; 

(12)        restrictions on cash or other deposits or net worth
imposed by customers under contracts entered into in the ordinary course of business; 

(13)        any instrument governing Indebtedness of an FERC
Subsidiary, provided that such Indebtedness was otherwise permitted by the terms of this Indenture to be incurred; 

(14)        with respect to any Foreign Subsidiary, any
encumbrance or restriction contained in the terms of any Indebtedness or any agreement pursuant to which such Indebtedness was incurred if either (a) the encumbrance or restriction applies only in the event of a payment default or a default
with respect to a financial covenant in such Indebtedness or agreement or (b) the Company determines that any such encumbrance or restriction will not materially affect the Company’s ability to make principal or interest payments on the
notes, as determined in good faith by the Board of Directors of the Managing General Partner, whose determination shall be conclusive; and 

(15)        any other agreement governing Indebtedness of the
Company or any Restricted Subsidiary that is permitted to be incurred under Section 4.09; provided, however, that such encumbrances or restrictions are not materially more restrictive, taken as a whole, than those contained in
this Indenture or the Credit Agreement as it exists on the date of this Indenture. 
 Section
4.09.    Limitation on Incurrence of Indebtedness and Issuance of Preferred Stock. 
 The
Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable, contingently or otherwise, with respect to (collectively,
“incur”) any Indebtedness (including Acquired Debt), the Company will not issue any Disqualified Stock, and the Company will not permit any of its or its Restricted Subsidiaries Restricted Subsidiaries to issue any preferred securities;
provided, however, that the Company and any of its Restricted Subsidiaries may incur Indebtedness (including Acquired Debt) or issue Disqualified Stock, if the Fixed Charge Coverage Ratio for the Company’s most recently ended four full fiscal
quarters for which internal financial statements are available immediately preceding the date on which such additional Indebtedness is incurred or such Disqualified Stock is issued would have been at least 2.0 to 1.0, determined on a pro forma basis
(including a pro forma application of the net proceeds therefrom), as if the additional Indebtedness had been incurred or Disqualified Stock had been issued, as the case may be, at the beginning of such four-quarter period. 

 

 43 

 The first paragraph of this Section 4.09 will not prohibit the
incurrence of any of the following items of Indebtedness (collectively, “Permitted Debt”) or the issuance of any preferred securities described in clause (11) below: 

(1)        the incurrence by the Company or any of its Restricted
Subsidiaries of additional Indebtedness (including letters of credit) under one or more Credit Facilities in an aggregate principal amount at any one time outstanding under this clause (1) (with letters of credit being deemed to have a
principal amount equal to the maximum potential liability of the Company and its Subsidiaries thereunder) not to exceed the greater of (a) $625.0 million or (b) the sum of $350.0 million and 20% of the Company’s Consolidated Net
Tangible Assets; 
 (2)        the incurrence by the
Company or any of its Restricted Subsidiaries of the Existing Indebtedness; 

(3)        the incurrence by the Company and the Guarantors of
Indebtedness represented by the Notes issued and sold on the Initial Issuance Date and the related Subsidiary Guarantees issued on the date of this Indenture and the Exchange Notes and the related Subsidiary Guarantees issued pursuant to any
Registration Rights Agreement; 
 (4)        the
incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness represented by Capital Lease Obligations, mortgage financings or purchase money obligations, in each case, incurred for the purpose of financing all or any part of the
purchase price or cost of construction or improvement of property, plant or equipment used in the business of the Company or such Restricted Subsidiary, in an aggregate principal amount, including all Permitted Refinancing Indebtedness incurred to
extend, refinance, renew, replace, defease or refund any Indebtedness incurred pursuant to this clause (4), not to exceed $15.0 million at any time outstanding; 

(5)        the incurrence by the Company or any of its Restricted
Subsidiaries of Permitted Refinancing Indebtedness in exchange for, or the net proceeds of which are used to extend, refinance, renew, replace, defease or refund Indebtedness that was permitted by this Indenture to be incurred under the first
paragraph of this Section 4.09 or clause (2) or (3) of this paragraph or this clause (5); 

(6)        the incurrence by the Company or any of its Restricted
Subsidiaries of intercompany Indebtedness between or among the Company and any of its Restricted Subsidiaries; provided, however, that: 

(a)        if the Company is the obligor on such Indebtedness and
a Guarantor is not the obligee, such Indebtedness must be expressly subordinated to the prior payment in full in cash of all Obligations with respect to the Notes, or if a Guarantor is the obligor on such Indebtedness and neither the Company nor
another Guarantor is the obligee, such Indebtedness must be expressly subordinated to the prior payment in full in cash of all Obligations with respect to the Subsidiary Guarantee of such Guarantor; and 

(b)        (i) any subsequent issuance or transfer of Equity
Interests that results in any such Indebtedness being held by a Person other than the Company 
  

 44 

 
or a Restricted Subsidiary of the Company and (ii) any sale or other transfer of any such Indebtedness to a Person that is neither the Company nor a Restricted Subsidiary of the Company will
be deemed, in each case, to constitute an incurrence of such Indebtedness by the Company or such Restricted Subsidiary, as the case may be, that was not permitted by this clause (6); 

(7)        the incurrence by the Company or any of its Restricted
Subsidiaries of Hedging Obligations; 
 (8)        the
incurrence by the Company or any of its Restricted Subsidiaries of Acquired Debt in connection with a merger or consolidation meeting any one of the financial tests set forth in clause (d) of Section 5.01; 

(9)        the guarantee by the Company or any of its Restricted
Subsidiaries of Indebtedness of the Company or any of its Restricted Subsidiaries that was permitted to be incurred by another provision of this Section 4.09; 

(10)      the incurrence by the Company or any of its Restricted
Subsidiaries of Indebtedness in respect of bid, performance, surety and similar bonds issued for the account of the Company and any of its Restricted Subsidiaries in the ordinary course of business, including guarantees and obligations of the
Company or any of its Restricted Subsidiaries with respect to letters of credit supporting such obligations (in each case other than an obligation for money borrowed); 

(11)      the issuance by any of the Company’s Restricted Subsidiaries
to the Company or to any of its Restricted Subsidiaries of any preferred securities; provided, however, that: 

(a)        any subsequent issuance or transfer of Equity
Interests that results in any such preferred securities being held by a Person other than the Company or a Restricted Subsidiary of the Company; and 

(b)        any sale or other transfer of any such preferred
securities to a Person that is not either the Company or a Restricted Subsidiary of the Company 
 shall be
deemed, in each case, to constitute an issuance of such preferred securities by such Restricted Subsidiary that was not permitted by this clause (11); and 

(12)      the incurrence by the Company or any of its Restricted
Subsidiaries of additional Indebtedness in an aggregate principal amount then outstanding, not to exceed the greater of (a) $50.0 million or (b) 5% of the Company’s Consolidated Net Tangible Assets. 

For purposes of determining compliance with this Section 4.09, in the event that an item of Indebtedness (including
Acquired Debt) meets the criteria of more than one of the categories of Permitted Debt described in clauses (1) through (12) above, or is entitled to be incurred pursuant to the first paragraph of this Section 4.09, the Company will
be permitted to classify (or later classify or reclassify in whole or in part in its sole discretion) such item of Indebtedness in 

 

 45 

 
any manner that complies with this covenant. Any Indebtedness under Credit Facilities on the date of this Indenture shall be considered incurred under the first paragraph of this
Section 4.09. 
 The accrual of interest, the accretion or amortization of original issue discount, the
payment of interest on any Indebtedness in the form of additional Indebtedness with the same terms, and the payment of dividends on Disqualified Stock in the form of additional shares of the same class of Disqualified Stock will not be deemed to be
an incurrence of Indebtedness or an issuance of Disqualified Stock for purposes of this Section 4.09; provided, in each such case, that the amount thereof is included in Fixed Charges of the Company as accrued. Notwithstanding any other
provision of this Section 4.09, the maximum amount of Indebtedness that the Company or any Restricted Subsidiary may incur pursuant to this Section 4.09 will not be deemed to be exceeded solely as a result of fluctuations in exchange rates
or currency values. Further, the accounting reclassification of any obligation of the Company or any of its Restricted Subsidiaries as Indebtedness will not be deemed an incurrence of Indebtedness for purposes of this covenant. 

Section 4.10.    Limitation on Asset Sales. 

The Company will not, and will not permit any of its Restricted Subsidiaries to, consummate an Asset Sale unless:

 (1)      the Company (or the Restricted Subsidiary, as the case
may be) receives consideration at the time of the Asset Sale at least equal to the fair market value of the assets or Equity Interests issued or sold or otherwise disposed of; 

(2)      the fair market value is determined by (a) an executive
officer of the Managing General Partner if the value is less than $15.0 million and evidenced by a Officers’ Certificate delivered to the Trustee, or (b) the Managing General Partner’s Board of Directors if the value is $15.0 million
or more and evidenced by a resolution of the Board of Directors set forth in an Officers’ Certificate delivered to the Trustee; and 

(3)      at least 75% of the aggregate consideration received by the Company
and its Restricted Subsidiaries in the Asset Sale and all other Asset Sales since the date of this Indenture is in the form of cash. For purposes of this provision, each of the following will be deemed to be cash: 

(a)        any liabilities, as shown on the Company’s or
such Restricted Subsidiary’s most recent balance sheet, of the Company or any Subsidiary (other than contingent liabilities and liabilities that are by their terms subordinated to the Notes or any Subsidiary Guarantee) that are assumed by the
transferee of any such assets pursuant to a customary novation agreement that releases the Company or such Subsidiary from further liability; and 

(b)        any securities, notes or other obligations received by
the Company or any such Restricted Subsidiary from such transferee that are, within 90 days after the Asset Sale, converted by the Company or such Subsidiary into cash, to the extent of the cash received in that conversion. 

 

 46 

 Within 360 days after the receipt of any Net Proceeds from an Asset Sale,
the Company or any such Restricted Subsidiary may apply those Net Proceeds at its option to any combination of the following: 

(I)        to repay Senior Debt; 

(II)       to acquire all or substantially all of the properties or assets of a Person
primarily engaged in a Permitted Business; 
 (III)      to acquire a majority of
the Voting Stock of a Person primarily engaged a Permitted Business; 

(IV)      to make capital expenditures; or 

(V)       to acquire other long-term assets that are used or useful in a Permitted
Business. 
 Pending the final application of any Net Proceeds, the Company or any such Restricted Subsidiary
may invest the Net Proceeds in any manner that is not prohibited by this Indenture. Any Net Proceeds from Asset Sales that are not applied or invested as provided in the preceding paragraph will constitute “Excess Proceeds.” 

On the 361st day after the Asset Sale (or, at the Company’s option, any earlier date), if the aggregate amount of
Excess Proceeds then exceeds $20.0 million, the Company will make an Asset Sale Offer to all Holders of Notes, and to all holders of Pari Passu Indebtedness then outstanding, to purchase the maximum principal amount of Notes and such Pari Passu
Indebtedness that may be purchased out of the Excess Proceeds. The offer price in any Asset Sale Offer will be equal to 100% of principal amount plus accrued and unpaid interest, if any, to the Settlement Date, subject to the right of Holders of
record on the relevant record date to receive interest due on an interest payment date that is on or prior to the Settlement Date, and will be payable in cash. If any Excess Proceeds remain after consummation of an Asset Sale Offer, the Company may
use those Excess Proceeds for any purpose not otherwise prohibited by this Indenture. If the aggregate principal amount of Notes and Pari Passu Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds, the Trustee will
select the Notes and such Pari Passu Indebtedness to be purchased on a pro rata basis. Upon completion of each Asset Sale Offer, the amount of Excess Proceeds will be reset at zero. 

The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and
regulations thereunder to the extent those laws and regulations are applicable in connection with each repurchase of Notes pursuant to an Asset Sale Offer. To the extent that the provisions of any securities laws or regulations conflict with the
provisions of this Section 4.10, the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under such provisions by virtue of such conflict. 

Section 4.11.    Limitation on Transactions with Affiliates. 

The Company will not, and will not permit any of its Restricted Subsidiaries to, make any payment to, or sell, lease,
transfer or otherwise dispose of any of its properties or assets to, or purchase any property or assets from, or enter into or make or amend any transaction, contract, 

 

 47 

 
agreement, understanding, loan, advance or guarantee with, or for the benefit of, any Affiliate (each, an “Affiliate Transaction”), unless: 

(1)      the Affiliate Transaction is on terms that are no less favorable to
the Company or the relevant Restricted Subsidiary than those that would have been obtained in a comparable transaction by the Company or such Restricted Subsidiary with an unrelated Person; and 

(2)      the Company delivers to the Trustee, with respect to any Affiliate
Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of $25.0 million, a resolution of the Board of Directors of the Managing General Partner set forth in an Officers’ Certificate certifying that
such related Affiliate Transaction or series of Affiliate Transactions complies with the preceding clause (1) of this Section 4.11 and has been approved by a majority of the disinterested members of the Board of Directors. 

The following items will not be deemed to be Affiliate Transactions and, therefore, will not be subject to the provisions
of the prior paragraph of this Section 4.11: 
 (1)      any
employment equity award, equity option or equity appreciation agreement or plan entered into by the Company or any of its Restricted Subsidiaries in the ordinary course of business and any payments or awards pursuant thereto; 

(2)      transactions between or among any of the Company and its Restricted
Subsidiaries; 
 (3)      transactions with a Person that is an
Affiliate of the Company solely because the Company or any of its Restricted Subsidiaries owns an Equity Interest in such Person; 

(4)      transactions permitted by the terms of (a) the Partnership
Agreement with respect to accounting, treasury, information technology, insurance and other corporate services, general overhead and other administrative matters and (b) any other agreements with Inergy Holdings and its Subsidiaries that are
identified in Annex C to this Indenture, in each case as such agreements are in effect on the date of this Indenture, and any amendment or replacement of any of such agreements so long as such amendment or replacement agreement is no less
advantageous to the Company in any material respect than the agreement so amended or replaced; 

(5)      customary compensation, indemnification and other benefits made
available to officers, directors or employees of the Company, a Restricted Subsidiary of the Company or the Managing General Partner, including reimbursement or advancement of out-of-pocket expenses and provisions of officers’ and
directors’ liability insurance; 
 (6)      sales of Equity
Interests (other than Disqualified Stock) to Affiliates of the Company; and 

(7)      Restricted Payments or Permitted Investments that are permitted by
Section 4.07. 
  

 48 

 Section 4.12.    Limitation on Liens. 

The Company will not and will not permit any of its Restricted Subsidiaries to, create, incur, assume or otherwise cause
or suffer to exist or become effective any Lien of any kind (other than Permitted Liens) securing Indebtedness or Attributable Debt upon any of their property or assets, now owned or hereafter acquired, unless the Notes or any Subsidiary Guarantee
of such Restricted Subsidiary, as applicable, is secured on an equal and ratable basis (or on a senior basis to, in the case of obligations subordinated in right of payment to the Notes or such Subsidiary Guarantee, as the case may be) with the
obligations so secured until such time as such obligations are no longer secured by a Lien (other than Permitted Liens). 

Section 4.13.    Additional Subsidiary Guarantees. 

If, after the date of this Indenture, any Restricted Subsidiary of the Company that is not already a Guarantor guarantees
any other Indebtedness of either of the Issuers or any Indebtedness of the Operating Company, or the Operating Company, if not then a Guarantor, guarantees any other Indebtedness of either of the Issuers or incurs any Indebtedness under any of the
Credit Facilities, then in either case that Subsidiary will become a Guarantor by executing a supplemental indenture substantially in the form of Annex A hereto and delivering it to the Trustee within ten Business Days of the date on which it
guaranteed or incurred such Indebtedness, as the case may be, together with any Officers’ Certificate or Opinion of Counsel required by Section 9.06; provided, however, that the preceding shall not apply to Subsidiaries of the Company that
have properly been designated as Unrestricted Subsidiaries in accordance with this Indenture for so long as they continue to constitute Unrestricted Subsidiaries. Notwithstanding the preceding, any Subsidiary Guarantee of a Restricted Subsidiary
that was incurred pursuant to this Section 4.13 as a result of its guarantee of any Indebtedness shall provide by its terms that it shall be automatically and unconditionally released upon the release or discharge of the guarantee that resulted
in the creation of such Restricted Subsidiary’s Subsidiary Guarantee, except a discharge or release by, or as a result of payment under, such guarantee. 

Section 4.14.    Corporate Existence. 

Except as otherwise permitted pursuant to the terms hereof (including consolidation and merger permitted by
Section 5.01), the Company shall do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence, and the corporate, partnership or other existence of each of its Restricted Subsidiaries, in
accordance with the respective organizational documents (as the same may be amended from time to time) of the Company or any such Restricted Subsidiary; provided, however, that the Company shall not be required to preserve the existence of any of
its Restricted Subsidiaries (except Finance Corp.) if the Company shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and its Restricted Subsidiaries taken as a whole and that the loss
thereof is not adverse in any material respect to the Holders of the Notes. 
 Section 4.15.    Offer to
Repurchase Upon Change of Control. 
 (1) Within 30 days following the occurrence of a Change of
Control, the Company shall make an offer (a “Change of Control Offer”) to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of each Holder’s

  

 49 

 
Notes at a purchase price (the “Change of Control Payment”) in cash equal to 101% of the aggregate principal amount of Notes repurchased, plus accrued and unpaid interest and Additional
Interest, if any, thereon to the date of settlement (the “Change of Control Settlement Date”), subject to the right of Holders of record on the relevant record date to receive interest due on an interest payment date that is on or prior to
the Change of Control Settlement Date. Within 30 days following a Change of Control, the Company shall mail a notice of the Change of Control Offer to each Holder and the Trustee describing the transaction that constitutes the Change of Control and
stating: 
 (a)        that the Change of Control Offer
is being made pursuant to this Section 4.15 and that all Notes validly tendered and not withdrawn will be accepted for payment; 

(b)        the purchase price and the purchase date, which shall
be no earlier than 30 days but no later than 60 days from the date such notice is mailed (the “Change of Control Settlement Date”); 

(c)        that the Change of Control Offer will expire as of the
time specified in such notice on the Change of Control Settlement Date and that the Company shall pay the Change of Control Purchase Price for all Notes purchased as of the Change of Control Settlement Date promptly thereafter on the Change of
Control Settlement Date; 
 (d)        that any Note not
tendered will continue to accrue interest and Additional Interest, if any; 

(e)        that, unless the Company defaults in the payment of
the Change of Control Payment, all Notes accepted for payment pursuant to the Change of Control Offer shall cease to accrue interest and Additional Interest, if any, after the Change of Control Settlement Date; 

(f)        that Holders electing to have any Notes purchased
pursuant to a Change of Control Offer will be required to surrender the Notes, properly endorsed for transfer, together with the form entitled “Option of Holder to Elect Purchase” on the reverse of the Notes completed and such customary
documents as the Company may reasonably request, to the Paying Agent at the address specified in the notice prior to the termination of the Change of Control Offer on the Change of Control Settlement Date; 

(g)        that Holders will be entitled to withdraw their
election if the Paying Agent receives, prior to the termination of the Change of Control Offer, a telegram, facsimile transmission or letter setting forth the name of the Holder, the principal amount of Notes delivered for purchase, and a statement
that such Holder is withdrawing its election to have the Notes purchased; and 

(h)        that Holders whose Notes are being purchased only in
part will be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered, which unpurchased portion must be equal to $2,000 in principal amount or an integral multiple of $1,000 in excess thereof.

  

 50 

 If any of the Notes subject to a Change of Control Offer is in the form of a
Global Note, then the Company shall modify such notice to the extent necessary to accord with the procedures of the Depository applicable to repurchases. Further, the Company shall comply with the requirements of Rule 14e-1 under the Exchange Act
and any other securities laws and regulations thereunder to the extent such laws and regulations are applicable in connection with the repurchase of Notes as a result of a Change of Control. To the extent that the provisions of any securities laws
or regulations conflict with the provisions of this Section 4.15, the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under such provisions by virtue of such
conflict. 
 (2)        On the Change of Control
Settlement Date, the Company shall, to the extent lawful: 

(a)        accept for payment all Notes or portions thereof
(equal to $2,000 or an integral multiple of $1,000 in excess thereof) properly tendered pursuant to the Change of Control Offer; 

(a)        deposit with the Paying Agent by 11:00 a.m., New York
City time, an amount equal to the Change of Control Payment in respect of all Notes or portions thereof so tendered; and 

(b)        deliver or cause to be delivered to the Trustee the
Notes so accepted together with an Officers’ Certificate stating the aggregate principal amount of Notes or portions of Notes being purchased by the Company. 

On the Change of Control Settlement Date, the Paying Agent shall mail to each Holder of Notes properly tendered the Change
of Control Payment for such Notes (or, if all the Notes are then in global form, make such payment through the facilities of the Depository) and the Trustee shall authenticate and mail (or cause to be transferred by book entry) to each Holder a new
Note equal in principal amount to any unpurchased portion of the Notes surrendered, if any; provided, however, that each such new Note will be in a minimum principal amount of $2,000 or an integral multiple of $1,000 in excess thereof. The Company
shall publicly announce the results of the Change of Control Offer on or as soon as practicable after the Change of Control Settlement Date. 

(3)        The Change of Control provisions described above shall
be applicable whether or nor any other provisions of this Indenture are applicable. 

(4)         Prior to complying with any of the provisions of this
Section 4.15, but in any event no later than the Change of Control Settlement Date, the Company or any Guarantor must either repay all of its other outstanding Senior Debt or obtain the requisite consents, if any, under all agreements governing
such Senior Debt to permit the repurchase of Notes required by this Section 4.15. 

(5)        The Company shall not be required to make a Change of
Control Offer following a Change of Control if: 
  

 51 

 (a)        a third
party makes the Change of Control Offer in the manner, at the time and otherwise in compliance with the requirements set forth in this Indenture applicable to a Change of Control Offer made by the Company and purchases all Notes properly tendered
and not withdrawn under such Change of Control Offer; or 

(b)        notice of redemption of all outstanding Notes has been
given pursuant to Section 3.03, unless and until there is a default in payment of the applicable redemption price. 

(6)        A Change of Control Offer may be made in advance of a
Change of Control, and conditioned upon the occurrence of the Change of Control, if a definitive agreement is in place for the Change of Control at the time of making the Change of Control Offer. 

(7)        In the event that Holders of not less than 90% of the
aggregate principal amount of the outstanding Notes accept a Change of Control Offer and the Company purchases all of the Notes held by such Holders, the Company will have the right, upon not less than 30 nor more than 60 days’ prior notice,
given not more than 30 days following the purchase pursuant to the Change of Control Offer described above, to redeem all of the Notes that remain outstanding following such purchase at a redemption price equal to the Change of Control Payment plus,
to the extent not included in the Change of Control Payment, accrued and unpaid interest on the Notes that remain outstanding, to the date of redemption (subject to the right of Holders of record on the relevant record date to receive interest due
on an interest payment date that is on or prior to the redemption date). 
 Section 4.16.    No
Inducements. 
 The Company shall not, and the Company shall not permit any of its Subsidiaries, either directly
or indirectly, to pay (or cause to be paid) any consideration, whether by way of interest, fee or otherwise, to any Beneficial Owner or Holder of the Notes for or as an inducement to any consent to any waiver, amendment or supplement of any terms or
provisions of this Indenture or the Notes, unless such consideration is offered to be paid (or agreed to be paid) to all Beneficial Owners and Holders of the Notes which so consent in the time frame set forth in the solicitation documents relating
to such consent. 
 Section 4.17.    Activities of Finance Corp. 

Finance Corp. shall not incur Indebtedness unless (1) the Company is a co-obligor or guarantor of such Indebtedness
or (2) the net proceeds of such Indebtedness are loaned to the Company, used to acquire outstanding debt securities issued by the Company or used to repay Indebtedness of the Company as permitted under Section 4.09. Finance Corp. shall not
engage in any business not related directly or indirectly to obtaining money or arranging financing for the Company or its Restricted Subsidiaries. 
  

 52 

 Section 4.18.    [Reserved]. 

Section 4.19.    Covenant Termination. 

If at any time (a) the rating assigned to the Notes by either S&P or Moody’s is an Investment Grade Rating
and (b) no Default has occurred and is continuing under this Indenture, the Company and its Restricted Subsidiaries will no longer be subject to the provisions of Sections 3.09, 4.07, 4.08, 4.09, 4.10, 4.11, 4.17, and clause (d) of
Section 5.01 of this Indenture. However, the Company and its Restricted Subsidiaries will remain subject to all of the other provisions of this Indenture. 

Section 4.20.    Designation of Restricted and Unrestricted Subsidiaries. 

The Board of Directors of the Managing General Partner may designate any Restricted Subsidiary of the Company to be an
Unrestricted Subsidiary if that designation would not cause a Default. If a Restricted Subsidiary of the Company is designated as an Unrestricted Subsidiary, the aggregate fair market value of all outstanding Investments owned by the Company and its
Restricted Subsidiaries in the Subsidiary properly designated will be deemed to be an Investment made as of the time of the designation and will reduce the amount available for Restricted Payments under the first paragraph of Section 4.07 or
represent Permitted Investments, as determined by the Company. That designation shall only be permitted if the Investment would be permitted at that time and if the Subsidiary so designated otherwise meets the definition of an Unrestricted
Subsidiary. 
 The Board of Directors of the Managing General Partner may at any time designate any Unrestricted
Subsidiary to be a Restricted Subsidiary of the Company; provided that such designation will be deemed to be an incurrence of Indebtedness by a Restricted Subsidiary of the Company of any outstanding Indebtedness of such Unrestricted Subsidiary and
such designation will only be permitted if (1) such Indebtedness is permitted under Section 4.09, calculated on a pro forma basis as if such designation had occurred at the beginning of the four-quarter reference period, and (2) no
Default or Event of Default would be in existence following such designation. 
 ARTICLE 5 

SUCCESSORS 

Section 5.01.    Merger, Consolidation, or Sale of Assets. 

Neither of the Issuers may, directly or indirectly, (1) consolidate or merge with or into another Person (whether or
not such Issuer is the survivor), or (2) sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of its properties or assets in one or more related transactions to another Person, unless: 

(a)        either (1) such Issuer is the survivor or
(2) the Person formed by or surviving any such consolidation or merger (if other than such Issuer) or to which such sale, assignment, transfer, lease, conveyance or other disposition shall have been made is a Person organized or existing under
the laws of the United States, any state of the United States or the District of Columbia; provided, however, that Finance Corp. may not consolidate or merge with or into any Person other than a corporation satisfying such requirement so long as the
Company is not a corporation; 
  

 53 

 (b)        the
Person formed by or surviving any such consolidation or merger (if other than such Issuer) or the Person to which such sale, assignment, transfer, lease, conveyance or other disposition shall have been made assumes all the obligations of such Issuer
under the Notes, this Indenture and the applicable Registration Rights Agreement pursuant to a supplemental indenture or other agreement in a form reasonably satisfactory to the Trustee; 

(c)        immediately after such transaction no Default or Event
of Default exists; 
 (d)        in the case of a
transaction involving the Company and not Finance Corp., either: 

(i)        the Company or the Person formed by or surviving any
such consolidation or merger (if other than the Company), or to which such sale, assignment, transfer, lease, conveyance or other disposition shall have been made will, at the time of such transaction and after giving pro forma effect thereto and
any related financing transaction as if the same had occurred at the beginning of the applicable four-quarter period, be permitted to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in the
first paragraph of Section 4.09 hereof; 

(ii)        immediately after giving effect to such transaction
on a pro forma basis and any related financing transactions as if the same had occurred at the beginning of the Company’s most recently ended four full quarters for which internal financial statements are available immediately preceding the
date of the transaction, the Fixed Charge Coverage Ratio of the Company or the Person formed by or surviving any such consolidation or merger (if other than the Company), or to which such sale, assignment, transfer, lease, conveyance or other
disposition has been made will be equal to or greater than the Fixed Charge Coverage Ratio of the Company immediately before such transaction; or 

(iii)        immediately after giving effect to such transaction
on a pro forma basis, the Consolidated Net Worth of the Company or the Person formed by or surviving any such consolidation or merger (if other than the Company), or to which such sale, assignment, transfer, lease, conveyance or other disposition
has been made will not be less than the Consolidated Net Worth of the Company immediately before such transaction; and 

(e)        such Issuer has delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger or disposition and such supplemental indenture (if any) comply with this Indenture. 

Notwithstanding the preceding paragraph of this Section 5.01, the Company may reorganize as any other form of entity
in accordance with the following procedures provided that: 

(1)        the reorganization involves the conversion (by merger,
sale, contribution or exchange of assets or otherwise) of the Company into a form of entity other than a limited partnership formed under Delaware law; 
  

 54 

 (2)      the entity so formed
by or resulting from such reorganization is an entity organized or existing under the laws of the United States, any state thereof or the District of Columbia; 

(3)      the entity so formed by or resulting from such reorganization
assumes all the obligations of the Company under the Notes, the Indenture and the applicable Registration Rights Agreement pursuant to agreements reasonably satisfactory to the Trustee; 

(4)      immediately after such reorganization no Default or Event of
Default exists; and 
 (5)      such reorganization is not
materially adverse to the Holders or Beneficial Owners of the Notes (for purposes of this clause (5) a reorganization will not be considered materially adverse to the Holders or Beneficial Owners of the Notes solely because the successor or
survivor of such reorganization (a) is subject to federal or state income taxation as an entity or (b) is considered to be an “includible corporation” of an affiliated group of corporations within the meaning of
Section 1504(b) of the Code or any similar state or local law). 
 Section 5.02.    Successor
Substituted. 
 Upon any consolidation or merger, or any sale, assignment, transfer, lease, conveyance or other
disposition of all or substantially all of the properties or assets of an Issuer in accordance with Section 5.01 hereof, the successor formed by such consolidation or into or with which such Issuer is merged or to which such sale, assignment,
transfer, lease, conveyance or other disposition is made shall succeed to, and may exercise every right and power of, such Issuer under this Indenture with the same effect as if such successor had been named as such Issuer herein and shall be
substituted for such Issuer (so that from and after the date of such consolidation, merger, sale, assignment, transfer, lease, conveyance or other disposition, the provisions of this Indenture referring to the “Company” or “Finance
Corp.,” as the case may be, shall refer instead to the successor and not to the Company or Finance Corp., as the case may be); and thereafter, if an Issuer is dissolved following a transfer of all or substantially all of its properties or
assets in accordance with this Indenture, it shall be discharged and released from all obligations and covenants under this Indenture and the Notes. The Trustee shall enter into a supplemental indenture to evidence the succession and substitution of
such successor and such discharge and release of such Issuer. 
 ARTICLE 6 

DEFAULTS AND REMEDIES 

Section 6.01.    Events of Default. 

An “Event of Default” occurs if one of the following shall have occurred and be continuing (whatever the reason
for such Event of Default and whether it shall be involuntary or be effected by operation of law): 
  

 55 

 (a)      an Issuer defaults in
the payment when due of interest or Additional Interest, if any, with respect to, the Notes, and such default continues for a period of 30 days; 

(b)      an Issuer defaults in the payment of the principal of or premium,
if any, on the Notes when due at its Stated Maturity, upon optional redemption, upon required repurchase, upon declaration or otherwise; 

(c)      the Company fails to comply with the provisions of
Section 3.08, 3.09, 4.10, 4.15 or 5.01 hereof; 
 (d)      the
Company fails to comply with the provisions of Section 4.03 hereof for 90 days after notice to the Company by the Trustee or the Holders of at least 25% in principal amount of the Notes then outstanding of such failure; 

(e)      the Company fails to comply with any other covenant or other
agreement in this Indenture or the Notes for 60 days after notice to the Company by the Trustee or the Holders of at least 25% in principal amount of the Notes then outstanding of such failure; 

(f)      a default occurs under any mortgage, indenture or instrument under
which there may be issued or by which there may be secured or evidenced any Indebtedness for money borrowed by the Company or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Company or any of its Restricted
Subsidiaries), whether such Indebtedness or guarantee now exists or is created after the Initial Issuance Date, if such default: 

(1)      is caused by a failure to pay principal of, or interest or
premium, if any, on such Indebtedness prior to the expiration of any grace period provided in such Indebtedness (a “Payment Default”); or 

(2)      results in the acceleration of such Indebtedness prior to its
Stated Maturity 
 and, in each case, the principal amount of any such Indebtedness, together with the principal
amount of any other such Indebtedness under which there has been a Payment Default or the maturity of which has been so accelerated, aggregates $15.0 million or more; provided that if any such default is cured or waived or any such acceleration
rescinded, or such Indebtedness is repaid, within a period of 30 days from the continuation of such default beyond the applicable grace period or the occurrence of such acceleration, as the case may be, such Event of Default and any consequential
acceleration of the Notes shall be automatically rescinded, so long as such rescission does not conflict with any judgment or decree; 

(g)      the Company or any of its Restricted Subsidiaries fails to pay
final judgments aggregating in excess of $15.0 million, which judgments are not paid, discharged or stayed for a period of 60 days; 
  

 56 

 (h)      except as permitted
by this Indenture, any Subsidiary Guarantee is held in any judicial proceeding to be unenforceable or invalid or ceases for any reason to be in full force and effect or any Guarantor, or any Person acting on behalf of any Guarantor, denies or
disaffirms its obligations under its Subsidiary Guarantee; and 

(i)      the Company, Finance Corp., any of the Company’s Restricted
Subsidiaries that is a Significant Subsidiary of the Company or any group of Restricted Subsidiaries of the Company that, taken together, would constitute a Significant Subsidiary of the Company pursuant to or within the meaning of Bankruptcy Law:

 (1)      commences a voluntary case, 

(2)      consents in writing to the entry of an order for relief against it
in an involuntary case, 
 (3)      consents in writing to the
appointment of a Custodian of it or for all or substantially all of its property, 

(4)      makes a general assignment for the benefit of its creditors, or

 (5)      admits in writing it generally is not paying its debts
as they become due; or 
 (j)      a court of competent
jurisdiction enters an order or decree under any Bankruptcy Law that: 

(1)      is for relief against the Company, Finance Corp., any of the
Company’s Restricted Subsidiaries that is a Significant Subsidiary of the Company or any group of Restricted Subsidiaries of the Company that, taken together, would constitute a Significant Subsidiary of the Company in an involuntary case;

 (2)      appoints a Custodian of the Company, Finance Corp.,
any of the Company’s Restricted Subsidiaries that is a Significant Subsidiary of the Company or any group of Restricted Subsidiaries of the Company that, taken together, would constitute a Significant Subsidiary of the Company or for all or
substantially all of the property of the Company, Finance Corp., any of the Company’s Restricted Subsidiaries that is a Significant Subsidiary of the Company or any group of Restricted Subsidiaries of the Company, that, taken together, would
constitute a Significant Subsidiary of the Company; or 

(3)      orders the liquidation of the Company, Finance Corp., any of the
Company’s Restricted Subsidiaries that is a Significant Subsidiary of the Company or any group of Restricted Subsidiaries of the Company that, taken together, would constitute a Significant Subsidiary of the Company; 

and the order or decree remains unstayed and in effect for 60 consecutive days. 

 

 57 

 Section 6.02.    Acceleration. 

If any Event of Default occurs and is continuing, the Trustee, by notice to the Issuers, or the Holders of at least 25% in
principal amount of the then outstanding Notes, by notice to the Issuers and the Trustee, may declare all the Notes to be due and payable immediately. Upon any such declaration, the Notes shall become due and payable immediately, together with all
accrued and unpaid interest, Additional Interest, if any, and premium, if any, thereon. Notwithstanding the preceding, if an Event of Default specified in clause (i) or (j) of Section 6.01 hereof occurs with respect to the Company,
Finance Corp., any of the Company’s Restricted Subsidiaries that is a Significant Subsidiary of the Company or any group of Restricted Subsidiaries of the Company that, taken together, would constitute a Significant Subsidiary of the Company,
all outstanding Notes shall become due and payable without further action or notice, together with all accrued and unpaid interest, Additional Interest, if any, and premium, if any, thereon. The Holders of a majority in principal amount of the then
outstanding Notes by notice to the Trustee may on behalf of all of the Holders rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree and if all existing Events of Default (except with respect
to nonpayment of principal, interest, premium or Additional Interest, if any, that have become due solely because of the acceleration) have been cured or waived. 

Section 6.03.    Other Remedies. 

If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of
principal of and premium, interest and Additional Interest, if any, on the Notes or to enforce the performance of any provision of the Notes or this Indenture. 

The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not produce any of them in the
proceeding. A delay or omission by the Trustee or any Holder of a Note in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. All
remedies are cumulative to the extent permitted by law. 
 Section 6.04.    Waiver of Past Defaults.

 Holders of a majority in principal amount of the then outstanding Notes by notice to the Trustee may on behalf
of the Holders of all of the Notes waive any existing Default or Event of Default and its consequences hereunder, except a continuing Default or Event of Default in the payment of the principal of or premium, interest or Additional Interest, if any,
on the Notes (including in connection with an offer to purchase). Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other Default or impair any right consequent thereon. 
 Section
6.05.    Control by Majority. 
 Holders of a majority in principal amount of the then
outstanding Notes may direct the time, method and place of conducting any proceeding for exercising any remedy available to the Trustee or exercising any trust or power conferred on it. However, the Trustee may refuse to follow any direction that
conflicts with law or this Indenture or that the Trustee determines may be unduly prejudicial to the rights of other Holders of Notes. 
  

 58 

 Section 6.06.    Limitation on Suits. 

A Holder of a Note may pursue a remedy with respect to this Indenture or the Notes only if: 

(a)      the Holder of a Note gives to the Trustee written notice of a
continuing Event of Default; 
 (b)      the Holders of at least
25% in principal amount of the then outstanding Notes make a written request to the Trustee to pursue the remedy; 

(c)      such Holder of a Note or Holders of Notes offer and, if requested,
provide to the Trustee indemnity or security satisfactory to the Trustee against any loss, liability or expense; 

(d)      the Trustee does not comply with the request within 60 days after
receipt of the request and the offer and, if requested, the provision of indemnity; and 

(e)      during such 60-day period the Holders of a majority in principal
amount of the then outstanding Notes do not give the Trustee a direction inconsistent with the request. 
 A Holder of a Note
may not use this Indenture to prejudice the rights of another Holder of a Note or to obtain a preference or priority over another Holder of a Note. 

Section 6.07.    Rights of Holders of Notes to Receive Payment. 

Notwithstanding any other provision of this Indenture, the right of any Holder of a Note to receive payment of principal
of and premium, interest and Additional Interest, if any, on the Note, on or after the respective due dates expressed in the Note (including in connection with an offer to purchase), or to bring suit for the enforcement of any such payment on or
after such respective dates, shall not be impaired or affected without the consent of such Holder. 
 Section
6.08.    Collection Suit by Trustee. 
 If an Event of Default specified in
Section 6.01(a) or (b) occurs and is continuing, the Trustee is authorized to recover judgment in its own name and as trustee of an express trust against the Issuers and the Guarantors for the whole amount of principal of, premium,
interest and Additional Interest, if any, remaining unpaid on the Notes and interest on overdue principal and, to the extent lawful, interest and Additional Interest, if any, and such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 

Section 6.09.    Trustee May File Proofs of Claim. 

The Trustee is authorized to file such proofs of claim and other papers or documents as may be necessary or advisable in
order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the Holders of the Notes allowed in any judicial proceedings relative to
the 
  

 59 

 
Issuers (or any other obligor upon the Notes), their creditors or their property and shall be entitled and empowered to collect, receive and distribute any money or other property payable or
deliverable on any such claims and any custodian in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee, and in the event that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07 hereof. To the extent
that the payment of any such compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07 hereof out of the estate in any such proceeding, shall be denied
for any reason, payment of the same shall be secured by a Lien on, and shall be paid out of, any and all distributions, dividends, money, securities and other properties that the Holders may be entitled to receive in such proceeding whether in
liquidation or under any plan of reorganization or arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization,
arrangement, adjustment or composition affecting the Notes or the rights of any Holder, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding. 

Section 6.10.    Priorities. 

If the Trustee collects any money pursuant to this Article, it shall pay out the money in the following order: 

First: to the Trustee, its agents and attorneys for amounts due under Section 7.07 hereof, including
payment of all compensation, expense and liabilities incurred, and all advances made, by the Trustee and the Trustee’s costs and expenses of collection; 

Second: to Holders of Notes for amounts due and unpaid on the Notes for principal, premium, interest and
Additional Interest, if any, ratably, without preference or priority of any kind, according to the amounts due and payable on the Notes for principal, premium, interest and Additional Interest, if any, respectively; and 

Third: to the Issuers or to such party as a court of competent jurisdiction shall direct. 

The Trustee may fix a record date and payment date for any payment to Holders of Notes pursuant to this
Section 6.10. 
 Section 6.11.    Undertaking for Costs. 

In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any
action taken or omitted by it as a Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including
reasonable attorneys’ fees, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section does not apply to a suit by the Trustee, a suit by a Holder of
a Note pursuant to Section 6.07 hereof, or a suit by Holders of more than 10% in principal amount of the then outstanding Notes. 
  

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 ARTICLE 7 

TRUSTEE 
 Section
7.01.    Duties of Trustee. 
 (a)        If an Event
of Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in its exercise, as a prudent man would exercise or use under the
circumstances in the conduct of his own affairs. 
 (b)        Except
during the continuance of an Event of Default: 

(i)         the duties of the Trustee shall be determined
solely by the express provisions of this Indenture and the Trustee need perform only those duties that are specifically set forth in this Indenture and no others, and no implied covenants or obligations shall be read into this Indenture against the
Trustee; and 
 (ii)        in the absence of bad faith
on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture.
However, the Trustee shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture. 

(c)        The Trustee may not be relieved from liabilities for its own negligent
action, its own negligent failure to act, or its own willful misconduct, except that: 

(i)          this paragraph does not limit the effect of
paragraph (b) of this Section 7.01; 

(ii)         the Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts; and 

(iii)        the Trustee shall not be liable with respect to any
action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.05 hereof. 

(d)        Whether or not therein expressly so provided, every provision of this
Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section 7.01. 

(e)        The Trustee shall not be liable for interest on any money received by
it except as the Trustee may agree in writing with an Issuer. Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law. 

Section 7.02.    Rights of Trustee. 

(a)        The Trustee may conclusively rely upon any document believed by it to
be genuine and to have been signed or presented by the proper Person. The Trustee need not investigate any fact or matter stated in the document. 
  

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 (b)        Before the Trustee acts
or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate or Opinion
of Counsel. The Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection from liability in respect of any action taken, suffered or omitted by it
hereunder in good faith and in reliance thereon. 
 (c)        The
Trustee may act through its attorneys and agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care. 

(d)        The Trustee shall not be liable for any action it takes or omits to
take in good faith that it believes to be authorized or within the rights or powers conferred upon it by this Indenture. 

(e)        Unless otherwise specifically provided in this Indenture, any demand,
request, direction or notice from an Issuer shall be sufficient if signed by an Officer of such Issuer. 

(f)        The Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request or direction of any of the Holders unless such Holder shall have offered to the Trustee security or indemnity satisfactory to the Trustee against the costs, expenses and liabilities that might
be incurred by it in compliance with such request or direction. 

(g)        The Trustee shall have no duty to inquire as to the performance of the
Company’s covenants in Article 4 hereof. In addition, the Trustee shall not be deemed to have knowledge of any Default or Event of Default except: (1) any Event of Default occurring pursuant to Section 6.01(a) or 6.01(b) hereof; or
(2) any Default or Event of Default of which a Responsible Officer shall have received written notification or obtained actual knowledge. 

(h)        The permissive right of the Trustee to act hereunder shall not be
construed as a duty. 
 (i)        The Trustee shall not be required to
give any bond or surety or to expend or risk its own funds in respect of the performance of its powers and duties hereunder. 

(j)        The rights, privileges, protections, immunities and benefits given to
the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by the Trustee in each of its capacities hereunder. 

(k)        In no event shall the Trustee be responsible or liable for special,
indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action.

 (l)        The Trustee shall not be responsible or liable for any
failure or delay in the performance of its obligations under this Indenture arising out of or caused, directly or indirectly, by circumstances beyond its reasonable control, including, without limitation, acts of God; earthquakes; fire; flood;
terrorism; wars and other military disturbances; sabotage; epidemics; 
  

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riots; interruptions; accidents; labor disputes; acts of civil or military authority and governmental action; it being understood that the Trustee shall use commercially reasonable efforts which
are consistent with accepted practices in the banking industry to resume performance as soon as reasonably practicable under the circumstances. 

Section 7.03.    Individual Rights of Trustee. 

The Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with
the Issuers, any Guarantor or any Affiliate of the Company with the same rights it would have if it were not Trustee. However, in the event that the Trustee acquires any conflicting interest (as defined in the TIA) after a Default has occurred and
is continuing, it must eliminate such conflict within 90 days, apply to the SEC for permission to continue as trustee or resign. Any Agent may do the same with like rights and duties. The Trustee is also subject to Sections 7.10 and 7.11 hereof.

 Section 7.04.    Trustee’s Disclaimer. 

The Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture or
the Notes, it shall not be accountable for either Issuer’s use of the proceeds from the Notes or any money paid to an Issuer or upon either Issuer’s direction under any provision of this Indenture, it shall not be responsible for the use
or application of any money received by any Paying Agent other than the Trustee, and it shall not be responsible for any statement or recital herein or any statement in the Notes or any other document in connection with the sale of the Notes or
pursuant to this Indenture other than its certificate of authentication. 
 Section 7.05.    Notice of
Defaults. 
 If a Default or Event of Default occurs and is continuing and if it is known to the Trustee, the
Trustee shall mail to Holders of Notes a notice of the Default or Event of Default within 90 days after it occurs. Except in the case of a Default or Event of Default in payment of principal of or premium, if any, interest or Additional Interest, if
any, on any Note, the Trustee may withhold the notice if and so long as a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of the Holders of the Notes. 

Section 7.06.    Reports by Trustee to Holders of the Notes. 

Within 60 days after each May 15 beginning with the May 15 following the date of this Indenture, and for so long
as Notes remain outstanding, the Trustee shall mail to the Holders of the Notes a brief report dated as of such reporting date that complies with TIA § 313(a) (but if no event described in TIA § 313(a) has occurred within the twelve months
preceding the reporting date, no report need be transmitted). The Trustee also shall comply with TIA § 313(b)(2) and § 313(b)(1). The Trustee shall also transmit by mail all reports as required by TIA § 313(c). 

A copy of each report at the time of its mailing to the Holders of Notes shall be mailed to the Issuers and filed with
the SEC and each stock exchange on which the Notes are listed in accordance with TIA § 313(d). The Company shall promptly notify the Trustee when the Notes are listed on any stock exchange. 

 

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 Section 7.07.    Compensation and Indemnity. 

The Issuers shall pay to the Trustee from time to time such reasonable compensation as the Issuers and the Trustee may
agree in writing for the Trustee’s acceptance of this Indenture and services hereunder. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The Issuers shall reimburse the Trustee
promptly upon request for all reasonable disbursements, advances and expenses incurred or made by it in addition to the compensation for its services. Such expenses shall include the reasonable compensation, disbursements and expenses of the
Trustee’s agents and counsel. 
 The Issuers and the Guarantors shall indemnify the Trustee, jointly and
severally, against any and all losses, liabilities or expenses incurred by it arising out of or in connection with the acceptance or administration of its duties under this Indenture, including the costs and expenses of enforcing this Indenture
against the Issuers and the Guarantors (including this Section 7.07) and defending itself against any claim (whether asserted by an Issuer, any Guarantor or any Holder or any other Person) or liability in connection with the exercise or
performance of any of its powers or duties hereunder, except to the extent any such loss, liability or expense may be attributable to its negligence, bad faith or willful misconduct. The Trustee shall notify the Issuers and the Guarantors promptly
of any claim for which it may seek indemnity. Failure by the Trustee to so notify the Issuers and the Guarantors shall not relieve the Issuers or the Guarantors of their obligations hereunder. The Issuers and the Guarantors shall defend the claim
and the Trustee shall cooperate in the defense. The Trustee may have separate counsel and the Issuers and the Guarantors shall pay the reasonable fees and expenses of such counsel; provided that the Issuers and the Guarantors will not be
required to pay such fees and expenses if they assume the Trustee’s defense with counsel acceptable to and approved by the Trustee (such approval not to be unreasonably withheld) and there is no conflict of interest between the Issuers and the
Trustee in connection with such defense. The Issuers and the Guarantors need not pay for any settlement made without their consent, which consent shall not be unreasonably withheld. Neither the Issuers nor the Guarantors need reimburse the Trustee
for any expense or indemnity against any liability or loss of the Trustee to the extent such expense, liability or loss is attributable to the negligence, bad faith or willful misconduct of the Trustee. 

The obligations of the Issuers and the Guarantors under this Section 7.07 shall survive the satisfaction and
discharge of this Indenture and the resignation or removal of the Trustee. 
 To secure the Issuers’ and
the Guarantors’ payment obligations in this Section 7.07, the Trustee shall have a Lien prior to the Notes on all money or property held or collected by the Trustee, except that held in trust to pay principal and interest on particular
Notes. Such Lien shall survive the satisfaction and discharge of this Indenture. 
 When the Trustee incurs
expenses or renders services after an Event of Default specified in Section 6.01(i) or (j) hereof occurs, the expenses and the compensation for the services (including the fees and expenses of its agents and counsel) are intended to
constitute expenses of administration under any Bankruptcy Law. 
 The Trustee shall comply with the provisions
of TIA § 313(b)(2) to the extent applicable. 
  

 64 

 The immunities, protections and exculpations available to the Trustee under
this Indenture shall also be available to each Agent, and the Company’s obligations under this Section 7.07 to compensate and indemnify the Trustee shall extend likewise to each Agent. 

Section 7.08.    Replacement of Trustee. 

A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the
successor Trustee’s acceptance of appointment as provided in this Section. 
 The Trustee may resign in
writing upon 30 days notice at any time and be discharged from the trust hereby created by so notifying the Issuers. The Holders of Notes of a majority in principal amount of the then outstanding Notes may remove the Trustee by so notifying the
Trustee and the Issuers in writing and may appoint a successor trustee with the consent of the Issuers. The Issuers may remove the Trustee if: 

(a)        the Trustee fails to comply with Section 7.10
hereof; 
 (b)        the Trustee is adjudged a bankrupt
or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law; 

(c)        a receiver, Custodian or public officer takes charge of
the Trustee or its property; or 
 (d)        the Trustee
becomes incapable of acting. 
 If the Trustee resigns or is removed or if a vacancy exists in the office of
Trustee for any reason, the Issuers shall promptly appoint a successor Trustee. Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the then outstanding Notes may appoint a successor Trustee to
replace the successor Trustee appointed by the Issuers. 
 If a successor Trustee does not take office within 30
days after the retiring Trustee resigns or is removed, the retiring Trustee, the Issuers or the Holders of Notes of at least 10% in principal amount of the then outstanding Notes may petition any court of competent jurisdiction for the appointment
of a successor Trustee. 
 If the Trustee, after written request by any Holder of a Note who has been a Holder
of a Note for at least six months, fails to comply with Section 7.10 hereof, such Holder of a Note may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 

A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Issuers.
Thereupon, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. The successor Trustee shall mail a notice of its
succession to Holders of the Notes. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, provided all sums owing to the Trustee hereunder have been paid and subject to the Lien provided for in
Section 7.07 hereof. Notwithstanding replacement 
  

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of the Trustee pursuant to this Section 7.08, the Issuers’ and the Guarantors’ obligations under Section 7.07 hereof shall continue for the benefit of the retiring Trustee.

 Section 7.09.    Successor Trustee by Merger, etc. 

If the Trustee consolidates, merges or converts into, or transfers all or substantially all of its corporate trust
business to, another corporation, the successor corporation without any further act shall be the successor Trustee. As soon as practicable, the successor Trustee shall mail a notice of its succession to the Issuers and the Holders of the Notes.

 Section 7.10.    Eligibility; Disqualification. 

There shall at all times be a Trustee hereunder that is a corporation organized and doing business under the laws of the
United States of America or of any state thereof that is authorized under such laws to exercise corporate trustee power, that is subject to supervision or examination by federal or state authorities and that has a combined capital and surplus of at
least $100 million as set forth in its most recent published annual report of condition. 
 This Indenture shall
always have a Trustee who satisfies the requirements of TIA § 310(a)(1), (2) and (5). The Trustee is subject to TIA § 310(b). 

Section 7.11.    Preferential Collection of Claims Against Issuers. 

The Trustee is subject to TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A
Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated therein. 
 ARTICLE 8

 LEGAL DEFEASANCE AND COVENANT DEFEASANCE 

Section 8.01.    Option to Effect Legal Defeasance or Covenant Defeasance. 

The Issuers may, at the option of their respective Boards of Directors evidenced by a resolution set forth in an
Officers’ Certificate, at any time, exercise their rights under either Section 8.02 or 8.03 hereof with respect to all outstanding Notes upon compliance with the conditions set forth below in this Article 8. 

Section 8.02.    Legal Defeasance and Discharge. 

Upon the Issuers’ exercise under Section 8.01 hereof of the option applicable to this Section 8.02, the
Issuers shall, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be deemed to have discharged their obligations with respect to all outstanding Notes, and each Guarantor shall be deemed to have discharged its
obligations with respect to its Subsidiary Guarantee, on the date the conditions set forth in Section 8.04 below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means that the Issuers shall be
deemed to have paid and discharged the entire Indebtedness represented by the outstanding Notes, and each Guarantor shall be deemed to have paid and discharged its Subsidiary Guarantee (which in each case shall thereafter be deemed to be
“outstanding” only for the purposes of Section 8.05 hereof and the other Sections of this Indenture referred to in (a) and 

 

 66 

 
(b) below) and to have satisfied all its other obligations under such Notes or Subsidiary Guarantee and this Indenture (and the Trustee, on demand of and at the expense of the Issuers, shall
execute proper instruments acknowledging the same), except for the following provisions which shall survive until otherwise terminated or discharged hereunder: (a) the rights of Holders of outstanding Notes to receive solely from the trust fund
described in Section 8.04 hereof, and as more fully set forth in such Section, payments in respect of the principal of and premium, if any, interest and Additional Interest, if any, on such Notes when such payments are due, (b) the
Issuers’ obligations with respect to such Notes under Sections 2.03, 2.04, 2.07, 2.09 and 4.02 hereof and the Appendix, (c) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the Issuers’ and the
Guarantors’ obligations in connection therewith and (d) the Legal Defeasance provisions of this Article 8. Subject to compliance with this Article 8, the Issuers may exercise their option under this Section 8.02 notwithstanding the
prior exercise of its option under Section 8.03 hereof. 
 If the Issuers exercise their Legal Defeasance
option, each Guarantor will be released and relieved of any obligations under its Subsidiary Guarantee, and any security for the Notes (other than the trust) will be released. 

Section 8.03.    Covenant Defeasance. 

Upon the Issuers’ exercise under Section 8.01 hereof of the option applicable to this Section 8.03, the
Issuers shall, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be released from their obligations under the covenants contained in Article 4 (other than those in Sections 4.01, 4.02, 4.06, 4.14 and 4.21) and in
clause (d) of Section 5.01 hereof on and after the date the conditions set forth below are satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall thereafter be deemed not “outstanding” for the purposes of
any direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding” for all other purposes hereunder (it being understood
that such Notes shall not be deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the outstanding Notes, the Issuers and any Guarantor may omit to comply with and shall have no liability in
respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision
herein or in any other document and such omission to comply shall not constitute a Default or an Event of Default under Section 6.01 hereof, but, except as specified above, the remainder of this Indenture and such Notes shall be unaffected
thereby. In addition, upon the Issuers’ exercise under Section 8.01 hereof of the option applicable to this Section 8.03 hereof, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, Sections 6.01(f)
through 6.01(h) hereof shall not constitute Events of Default. 
 If the Issuers exercise their Covenant
Defeasance option, each Guarantor will be released and relieved of any obligations under its Subsidiary Guarantee and any security for the Notes (other than the trust) will be released. 

 

 67 

 Section 8.04.    Conditions to Legal or Covenant Defeasance. 

In order to exercise either Legal Defeasance or Covenant Defeasance: 

(a)        the Issuers must irrevocably deposit with the Trustee,
in trust, for the benefit of the Holders, cash in U.S. dollars, non-callable Government Securities, or a combination thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized firm of independent public accountants, to
pay the principal of and premium, interest and Additional Interest, if any, on the outstanding Notes on the date of fixed maturity or on the applicable redemption date, as the case may be, and the Issuers must specify whether the Notes are being
defeased to the date of fixed maturity or to a particular redemption date; 

(b)        in the case of an election under Section 8.02
hereof, the Issuers shall have delivered to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming that: 

(1)        the Issuers have received from, or there has been
published by, the Internal Revenue Service a ruling; or 

(2)        since the Initial Issuance Date, there has been a
change in the applicable federal income tax law, 
 in either case to the effect that, and based thereon such
Opinion of Counsel shall confirm that, the Holders of the outstanding Notes will not recognize income, gain or loss for federal income tax purposes as a result of such Legal Defeasance and will be subject to federal income tax on the same amounts,
in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred; 

(c)        in the case of an election under Section 8.03
hereof, the Issuers shall have delivered to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming that the Holders of the outstanding Notes will not recognize income, gain or loss for federal income tax purposes as a
result of such Covenant Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; 

(d)        no Default or Event of Default shall have occurred and
be continuing on the date of such deposit (other than a Default or Event of Default resulting from the incurrence of Indebtedness or the grant of Liens securing such Indebtedness, all or a portion of the proceeds of which will be used to defease the
Notes pursuant to this Article 8 concurrently with such incurrence or within 30 days thereof); 

(e)        such Legal Defeasance or Covenant Defeasance shall not
result in a breach or violation of, or constitute a default under, any material agreement or instrument (other than this Indenture) to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is
bound; 
 (f)        the Issuers shall have delivered to
the Trustee an Officers’ Certificate stating that the deposit was not made by the Issuers with the intent of preferring the 

 

 68 

 
Holders over any other creditors of the Issuers or with the intent of defeating, hindering, delaying or defrauding creditors of the Issuers or others; and 

(g)        the Issuers shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for or relating to the Legal Defeasance or the Covenant Defeasance have been complied with. 

Section 8.05.    Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions.

 Subject to Section 8.06 hereof, all money and non-callable Government Securities (including the proceeds
thereof) deposited with the Trustee pursuant to Section 8.04 or 8.08 hereof in respect of the outstanding Notes shall be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company or any of its Subsidiaries acting as Paying Agent) as the Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon in respect of
principal, premium, if any, interest and Additional Interest, if any, but such money need not be segregated from other funds except to the extent required by law. 

The Issuers shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the
cash or non-callable Government Securities deposited pursuant to Section 8.04 or 8.08 hereof or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders
of the outstanding Notes. 
 Anything in this Article 8 to the contrary notwithstanding, the Trustee shall
deliver or pay to the Issuers from time to time upon the written request of the Issuers any money or non-callable Government Securities held by it as provided in Section 8.04 or 8.08 hereof which, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof delivered to the Trustee (which may be the opinion delivered under Section 8.04(a) hereof), are in excess of the amount thereof that would then be required to be
deposited to effect an equivalent Legal Defeasance, Covenant Defeasance or Discharge, as the case may be. 
 Section
8.06.    Repayment to Issuers. 
 Subject to applicable escheat and abandoned property laws,
any money or non-callable Government Securities deposited with the Trustee or any Paying Agent, or then held by an Issuer, in trust for the payment of the principal of or premium, interest or Additional Interest, if any, on any Note and remaining
unclaimed for two years after such principal, premium, interest or Additional Interest, if any, has become due and payable shall be paid to the Issuers on their written request or (if then held by an Issuer) shall be discharged from such trust; and
the Holder of such Note shall thereafter, as an unsecured creditor, look only to the Issuers for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money or non-callable Government Securities, and all
liability of the Issuers as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Issuers cause to be published once, in the
New York Times and The Wall Street Journal (national edition), notice that such 
  

 69 

 money remains unclaimed and that, after a date specified therein, which shall not be less
than 30 days from the date of such notification or publication, any unclaimed balance of such money then remaining will be repaid to the Issuers. 

Section 8.07.    Reinstatement. 

If the Trustee or Paying Agent is unable to apply any money or non-callable Government Securities in accordance with
Section 8.05 hereof, by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Issuers’ obligations under this Indenture and the Notes shall be
revived and reinstated as though no deposit had occurred pursuant to Section 8.02 or 8.03 hereof until such time as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section 8.05 hereof; provided, however,
that, if an Issuer makes any payment of principal of or premium, interest, Additional Interest, if any, on any Note following the reinstatement of its obligations, such Issuer shall be subrogated to the rights of the Holders of such Notes to receive
such payment from the money held by the Trustee or Paying Agent. 
 Section 8.08.    Discharge.

 This Indenture shall be satisfied and discharged and shall cease to be of further effect as to all Notes
issued hereunder (except for (a) the rights of Holders of outstanding Notes to receive solely from the trust fund described in clause (b) of this Section 8.08, and as more fully set forth in such clause (b), payments in respect of the
principal of and premium, if any, interest and Additional Interest, if any, on such Notes when such payments are due, (b) the Issuers’ obligations with respect to such Notes under Sections 2.03, 2.04, 2.07, 2.09 and 4.02 hereof and the
Appendix and (c) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the Issuers’ obligations in connection therewith), when: 

(1)        either: 

(a)        all Notes that have been authenticated, except lost,
stolen or destroyed Notes that have been replaced or paid and Notes for whose payment money has been deposited in trust and thereafter repaid to the Issuers, have been delivered to the Trustee for cancellation; or 

(b)        all Notes that have not been delivered to the Trustee
for cancellation have become due and payable or will become due and payable within one year by reason of the mailing of a notice of redemption or otherwise, and the Issuers or any Guarantor has irrevocably deposited or caused to be deposited with
the Trustee as trust funds in trust solely for the benefit of the Holders, cash in U.S. dollars, non-callable Government Securities, or a combination of cash in U.S. dollars and non-callable Government Securities, in amounts as will be sufficient
without consideration of any reinvestment of interest, to pay and discharge the entire indebtedness on the Notes not delivered to the Trustee for cancellation for principal, premium, if any, and accrued interest and Additional Interest, if any, to
the date of fixed maturity or redemption; 
 (2)        no Default or
Event of Default has occurred and is continuing on the date of the deposit or will occur as a result of the deposit (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit) and the deposit will
not result in a 
  

 70 

 
breach or violation of, or constitute a default under, any material agreement or instrument (other than this Indenture) to which the Company or any of its Subsidiaries is a party or by which the
Company or any of its Subsidiaries is bound; 
 (3)        the Issuers
or any Guarantor has paid or caused to be paid all sums payable by it under this Indenture; 

(4)        the Issuers have delivered irrevocable instructions to the Trustee to
apply the deposited money toward the payment of the Notes at fixed maturity or on the redemption date, as the case may be; and 

(5)        the Issuers have delivered an Officers’ Certificate and an
Opinion of Counsel to the Trustee stating that all conditions precedent to satisfaction and discharge of this Indenture (“Discharge”) have been satisfied. 

ARTICLE 9 

AMENDMENT, SUPPLEMENT AND WAIVER 

Section 9.01.    Without Consent of Holders of Notes. 

Notwithstanding Section 9.02 of this Indenture, the Issuers, the Guarantors and the Trustee may amend or supplement
this Indenture or the Notes without the consent of any Holder of a Note: 

(a)        to cure any ambiguity, defect or inconsistency;

 (b)        to provide for uncertificated Notes in
addition to or in place of certificated Notes; 

(c)        to provide for the assumption of an Issuer’s
obligations to the Holders of Notes pursuant to Article 5 hereof; 

(d)        to make any change that would provide any additional
rights or benefits to the Holders of the Notes or that does not adversely affect the legal rights hereunder of any Holder, provided that any change to conform this Indenture to the Offering Memorandum shall not be deemed to adversely affect the
legal rights hereunder of any Holder; 
 (e)        to
secure the Notes or the Subsidiary Guarantees pursuant to the requirements of Section 4.12 or otherwise; 

(f)        to provide for the issuance of Additional Notes in
accordance with the limitations set forth in this Indenture; 

(g)        to add any additional Guarantor with respect to the
Notes or to evidence the release of any Guarantor from its Subsidiary Guarantee in accordance with Article 10 hereof; 
  

 71 

 (h)        to comply
with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA; 

(i)        to provide for the reorganization of the Company as any
other form of entity in accordance with the second paragraph of Section 5.01 hereof; or 

(j)        to evidence or provide for the acceptance of
appointment under this Indenture of a successor Trustee. 
 Upon the request of the Company accompanied by a
resolution of its Board of Directors authorizing the execution of any such amended or supplemental indenture, and upon receipt by the Trustee of the documents described in Section 9.06 hereof, the Trustee shall join with the Issuers and the
Guarantors in the execution of any amended or supplemental indenture authorized or permitted by the terms of this Indenture and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be
obligated to enter into such amended or supplemental Indenture that affects its own rights, duties or immunities under this Indenture or otherwise. 

Section 9.02.    With Consent of Holders of Notes. 

Except as provided above in Section 9.01 and below in this Section 9.02, the Issuers, the Guarantors and the
Trustee may amend or supplement this Indenture and the Notes may be amended or supplemented with the consent of the Holders of at least a majority in principal amount of the then outstanding Notes (including consents obtained in connection with a
purchase of, or tender offer or exchange offer for, Notes), and, subject to Sections 6.04 and 6.07 hereof, any existing Default or Event of Default or compliance with any provision of this Indenture or the Notes may be waived with the consent of the
Holders of a majority in principal amount of the then outstanding Notes (including consents obtained in connection with a purchase of, tender offer or exchange offer for Notes). However, without the consent of each Holder affected, an amendment,
supplement or waiver may not (with respect to any Notes held by a non-consenting Holder): 

(a)        reduce the principal amount of Notes whose Holders must consent to an
amendment, supplement or waiver; 
 (b)        reduce the principal of
or change the fixed maturity of any Note or alter any of the provisions with respect to the redemption or repurchase of the Notes (except as provided in Sections 3.09, 4.10 and 4.15 hereof); 

(c)        reduce the rate of or change the time for payment of interest on any
Note; 
 (d)        waive a Default or Event of Default in the payment
of principal of or premium, interest or Additional Interest, if any, on the Notes (except a rescission of acceleration of the Notes by the Holders of at least a majority in principal amount of the Notes and a waiver of the payment default that
resulted from such acceleration); 
 (e)        make any Note payable in
money other than that stated in the Notes; 
  

 72 

 (f)        make any change in the
provisions of this Indenture relating to waivers of past Defaults or Events of Default or the rights of Holders of Notes to receive payments of principal of or premium, interest or Additional Interest, if any, on the Notes (except as permitted in
clause (g) below); 
 (g)        waive a redemption or repurchase
payment with respect to any Note (other than a payment required by Sections 3.09, 4.10 and 4.15 hereof); 

(h)        release any Guarantor from any of its obligations under its Subsidiary
Guarantee or this Indenture, except in accordance with the terms of this Indenture; or 

(i)        make any change in the preceding amendment, supplement and waiver
provisions. 
 Upon the request of the Issuers accompanied by Board Resolutions authorizing their execution of
any such amended or supplemental indenture, and upon the filing with the Trustee of evidence satisfactory to the Trustee of the consent of the Holders of Notes as aforesaid, and upon receipt by the Trustee of the documents described in
Section 9.06 hereof, the Trustee shall join with the Issuers and the Guarantors in the execution of such amended or supplemental indenture, unless such amended or supplemental indenture affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such amended or supplemental indenture. 

It shall not be necessary for the consent of the Holders of Notes under this Section 9.02 to approve the particular
form of any proposed amendment, supplement or waiver, but it shall be sufficient if such consent approves the substance thereof. 

After an amendment, supplement or waiver under this Section becomes effective, the Company shall mail to the Holders of
Notes affected thereby a notice briefly describing the amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such amended or
supplemental Indenture or waiver. 
 Section 9.03.    Compliance with Trust Indenture Act. 

Every amendment or supplement to this Indenture or the Notes shall be set forth in an amended or supplemental Indenture
that complies with the TIA as then in effect. 
 A consent to any amendment, supplement or waiver under this
Indenture by any Holder given in connection with a purchase, tender or exchange of such Holder’s Notes shall not be rendered invalid by such purchase, tender or exchange. 

Section 9.04.    Revocation and Effect of Consents. 

Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a Note is a continuing consent
by the Holder of a Note and every subsequent Holder of a Note or portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of the consent is not made on any Note. However, any such Holder of a Note or
subsequent Holder of a Note may revoke the consent as to its Note if the Trustee receives written notice of revocation before the date the waiver, supplement or amendment becomes effective. 

 

 73 

 
An amendment, supplement or waiver becomes effective in accordance with its terms and thereafter binds every Holder. 

The Company may, but shall not be obligated to, fix a record date for the purpose of determining the Holders entitled to
consent to any amendment, supplement or waiver. If a record date is fixed, then notwithstanding the last sentence of the immediately preceding paragraph, those Persons who were Holders at such record date (or their duly designated proxies), and only
those Persons, shall be entitled to consent to such amendment or waiver or revoke any consent previously given, whether or not such Persons continue to be Holders after such record date. No consent shall be valid or effective for more than 90 days
after such record date except to the extent that the requisite number of consents to the amendment, supplement or waiver have been obtained within such 90-day period or as set forth in the next paragraph of this Section 9.04. 

After an amendment, supplement or waiver becomes effective, it shall bind every Holder, unless it makes a change
described in any of clauses (a) through (i) of Section 9.02, in which case, the amendment, supplement or waiver shall bind only each Holder of a Note who has consented to it and every subsequent Holder of a Note or portion of a Note
that evidences the same indebtedness as the consenting Holder’s Note. 
 Section 9.05.    Notation
on or Exchange of Notes. 
 The Trustee may place an appropriate notation about an amendment, supplement or
waiver on any Note thereafter authenticated. The Issuers, in exchange for all Notes, may issue and the Trustee shall authenticate new Notes that reflect the amendment, supplement or waiver. 

Failure to make the appropriate notation or issue a new Note shall not affect the validity and effect of such amendment,
supplement or waiver. 
 Section 9.06.    Trustee to Sign Amendments, etc. 

The Trustee shall sign any amended or supplemental indenture authorized pursuant to this Article 9 if the amendment or
supplement does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may, but need not, sign it. In signing such amendment or supplement, the Trustee shall be entitled to receive and, subject to
Section 7.01, shall be fully protected in relying upon an Officers’ Certificate and an Opinion of Counsel stating, in addition to the matters required by Section 11.05, that such amendment or supplement is authorized or permitted by
this Indenture, all conditions precedent required hereunder to such amendment or supplement have been satisfied, and such amendment or supplement is a legal, valid and binding obligation of the Issuers and Guarantors, enforceable against the Issuers
and Guarantors in accordance with its terms (subject to customary exceptions). 
 ARTICLE 10 

GUARANTEES OF NOTES 

Section 10.01.    Subsidiary Guarantees. 

Subject to this Article 10, each of the Guarantors hereby, jointly and severally, unconditionally guarantees, on a senior
unsecured basis, to each Holder of a Note authenticated 
  

 74 

 
and delivered by the Trustee and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of this Indenture, the Notes held thereby and the Obligations of
the Issuers hereunder and thereunder, that: (a) the principal of and premium, interest and Additional Interest, if any, on the Notes will be promptly paid in full when due, subject to any applicable grace period, whether at Stated Maturity, by
acceleration, upon repurchase or redemption or otherwise, and interest on the overdue principal of and premium, (to the extent permitted by law) interest and Additional Interest, if any, on the Notes, and all other payment Obligations of the Issuers
to the Holders or the Trustee hereunder or thereunder will be promptly paid in full and performed, all in accordance with the terms hereof and thereof; and (b) in case of any extension of time of payment or renewal of any Notes or any of such
other Obligations, the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, subject to any applicable grace period, whether at Stated Maturity, by acceleration, upon repurchase or
redemption or otherwise. Failing payment when so due of any amount so guaranteed for whatever reason, the Guarantors will be jointly and severally obligated to pay the same immediately. An Event of Default under this Indenture or the Notes shall
constitute an event of default under the Subsidiary Guarantees, and shall entitle the Holders to accelerate the obligations of the Guarantors hereunder in the same manner and to the same extent as the Obligations of the Issuers. 

The Guarantors hereby agree that their obligations hereunder shall be unconditional, irrespective of the validity,
regularity or enforceability of the Notes or this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder with respect to any provisions hereof or thereof, the recovery of any judgment against an Issuer, any
action to enforce the same or any other circumstance (other than complete performance) which might otherwise constitute a legal or equitable discharge or defense of a Guarantor. Each Guarantor further, to the extent permitted by law, hereby waives
diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of an Issuer, any right to require a proceeding first against an Issuer, protest, notice and all demands whatsoever and covenants that
its Subsidiary Guarantee will not be discharged except by complete performance of the Obligations contained in the Notes and this Indenture. 

If any Holder or the Trustee is required by any court or otherwise to return to an Issuer, the Guarantors, or any
Custodian, Trustee or other similar official acting in relation to any of the Issuers or the Guarantors, any amount paid by an Issuer or any Guarantor to the Trustee or such Holder, the Subsidiary Guarantees, to the extent theretofore discharged,
shall be reinstated in full force and effect. Each Guarantor agrees that it shall not be entitled to, and hereby waives, any right of subrogation in relation to the Holders in respect of any Obligations guaranteed hereby. 

Each Guarantor further agrees that, as between the Guarantors, on the one hand, and the Holders and the Trustee, on the
other hand, (a) the maturity of the Obligations guaranteed hereby may be accelerated as provided in Article 6 hereof for the purposes of its Subsidiary Guarantee, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Obligations guaranteed thereby, and (b) in the event of any declaration of acceleration of such Obligations as provided in Article 6 hereof, such Obligations (whether or not due and payable) shall forthwith become
due and payable by the Guarantor for the purpose of its Subsidiary Guarantee. The Guarantors shall have the right to seek contribution from any non-paying Guarantor so long as the exercise of such right does not impair the rights of the Holders
under the Subsidiary Guarantees. 
  

 75 

 Section 10.02. [Reserved]. 

Section 10.03. Guarantors May Consolidate, etc., on Certain Terms. 

(a)        No Guarantor shall sell or otherwise dispose of all or substantially
all of its properties or assets to, or consolidate with or merge with or into (whether or not such Guarantor is the surviving Person), another Person (other than the Company or another Guarantor), unless, (i) either (1) the Person
acquiring the properties or assets in any such sale or other disposition or the Person formed by or surviving any such consolidation or merger (if other than such Guarantor) unconditionally assumes all the obligations of such Guarantor, pursuant to
a supplemental indenture, substantially in the form of Annex A hereto, under the Notes, this Indenture and its Subsidiary Guarantee on terms set forth therein, or (2) such sale or other disposition does not violate the provisions of
Section 4.10, and (ii) immediately after giving effect to such transaction, no Default or Event of Default exists. 

(b)        In the case of any such consolidation or merger and upon the
assumption by the successor Person, by supplemental indenture, executed and delivered to the Trustee and substantially in the form of Annex A hereto, of the Subsidiary Guarantee and the due and punctual performance of all of the covenants of
this Indenture to be performed by the Guarantor, such successor Person shall succeed to and be substituted for the Guarantor with the same effect as if it had been named herein as a Guarantor. 

Section 10.04. Releases of Subsidiary Guarantees. 

The Subsidiary Guarantee of a Guarantor shall be released: (1) in connection with any sale or other disposition of
all or substantially all of the properties or assets of such Guarantor (including by way of merger or consolidation) to a Person that is not (either before or after giving effect to such transaction) a Restricted Subsidiary of the Company, if the
sale or other disposition does not violate Section 4.10; (2) in connection with any sale or other disposition of the Capital Stock of such Guarantor to a Person that is not (either before or after giving effect to such transaction) a
Restricted Subsidiary of the Company, if the sale or other disposition does not violate Section 4.10 and the Guarantor ceases to be a Restricted Subsidiary of the Company as a result of such sale or other disposition; (3) if the Company
designates that Guarantor as an Unrestricted Subsidiary in accordance with Section 4.20 of this Indenture; (4) upon Legal Defeasance or Covenant Defeasance or Discharge in accordance with Article 8; (5) in the case of any Guarantor
other than the Operating Company, at such time as such Guarantor ceases to guarantee any other Indebtedness of either of the Issuers and any Indebtedness of the Operating Company; or (6) in the case of the Operating Company, at such time as the
Operating Company ceases to guarantee any other Indebtedness of either of the Issuers, provided that it is then no longer an obligor with respect to any Indebtedness under any Credit Facility. 

Upon delivery by the Company to the Trustee of an Officers’ Certificate to the effect that any of the conditions
described in the foregoing clauses (1) – (6) has occurred, the Trustee shall execute any documents reasonably requested by the Company in order to evidence the release of any Guarantor from its obligations under its Subsidiary
Guarantee. Any Guarantor not released from its obligations under its Subsidiary Guarantee shall remain liable for the full amount of principal of and premium, interest and Additional Interest, if any, on the Notes and for the other obligations of
such Guarantor under this Indenture as provided in this Article 10. 
  

 76 

 Section 10.05. [Reserved]. 

Section 10.06. Limitation on Guarantor Liability. 

The obligations of each Guarantor under its Subsidiary Guarantee will be limited to the maximum amount as will, after
giving effect to all other contingent and fixed liabilities of such Guarantor and after giving effect to any collections from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under its
Subsidiary Guarantee or pursuant to its contribution obligations under this Indenture, result in the obligations of such Guarantor under its Subsidiary Guarantee not constituting a fraudulent conveyance or fraudulent transfer under federal or state
law and not otherwise being void or voidable under any similar laws affecting the rights of creditors generally. 

Section 10.07. “Trustee” to Include Paying Agent. 

In case at any time any Paying Agent other than the Trustee shall have been appointed and be then acting hereunder, the
term “Trustee” as used in this Article 10 shall in each case (unless the context shall otherwise require) be construed as extending to and including such Paying Agent within its meaning as fully and for all intents and purposes as if such
Paying Agent were named in this Article 10 in place of the Trustee. 
 ARTICLE 11 

MISCELLANEOUS 

Section 11.01. Trust Indenture Act Controls. 

If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by TIA §318(c), such
TIA-imposed duties shall control. 
 Section 11.02. Notices. 

Any notice or communication by an Issuer, any Guarantor or the Trustee to the others is duly given if in writing (in the
English language) and delivered in person or mailed by first class mail (registered or certified, return receipt requested), telecopier or overnight air courier guaranteeing next day delivery, to the others’ address: 

If to any of the Issuers or the Guarantors: 

Inergy, L.P. 

Two Brush Creek Boulevard, Suite 200 

Kansas City, Missouri 64112 

Attention: Chief Financial Officer 

Telecopier No.: (816) 471-3854 

 

 77 

 with a copy to: 

Vinson & Elkins L.L.P. 

2300 First City Tower 

1001 Fannin St. 

Houston, TX 77002-6760 

Attention: David P. Oelman 

Telecopier No.: (713) 615-5861 

If to the Trustee: 

U.S. Bank National Association 

EP-MN-WS3C 

60 Livingston Avenue 

St. Paul, MN 55107-1419 

Attention: Corporate Trust Department 

Telecopier No.: (651) 495-8097 

An Issuer, any of the Guarantors or the Trustee, by notice to the others, may designate additional or different addresses
for subsequent notices or communications. 
 All notices and communications (other than those sent to Holders)
shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when receipt is acknowledged, if telecopied; and the next Business Day
after timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery in each case to the address shown above. 

Any notice or communication to a Holder shall be mailed by first class mail, certified or registered, return receipt
requested, or by overnight air courier guaranteeing next day delivery to its address shown on the register kept by the Registrar. Any notice or communication shall also be so mailed to any Person described in TIA § 313(c), to the extent
required by the TIA. Failure to mail a notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders. 

If a notice or communication is mailed in the manner provided above within the time prescribed, it is duly given, whether
or not the addressee receives it. 
 If either of the Issuers mails a notice or communication to Holders, it
shall mail a copy to the Trustee and each Agent at the same time. 
 Section 11.03. Communication by Holders of Notes with
Other Holders of Notes. 
 Holders may communicate pursuant to TIA § 312(b) with other Holders with respect
to their rights under this Indenture or the Notes. The Issuers, the Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c). 
  

 78 

 Section 11.04. Certificate and Opinion as to Conditions Precedent. 

Upon any request or application by an Issuer to the Trustee to take any action under this Indenture, such Issuer shall
furnish to the Trustee: 
 (a)        an Officers’
Certificate in form and substance reasonably satisfactory to the Trustee (which shall include the statements set forth in Section 11.05 hereof) stating that, in the opinion of the signers, all conditions precedent and covenants, if any,
provided for in this Indenture relating to the proposed action have been satisfied; and 

(b)        an Opinion of Counsel in form and substance reasonably
satisfactory to the Trustee (which shall include the statements set forth in Section 11.05 hereof) stating that, in the opinion of such counsel, all such conditions precedent and covenants have been satisfied. 

Section 11.05. Statements Required in Certificate or Opinion. 

Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other
than a certificate provided pursuant to TIA § 314(a)(4)) shall comply with the provisions of TIA § 314(e) and shall include: 

(a)        a statement that the person making such certificate or
opinion has read such covenant or condition; 

(b)        a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 

(c)        a statement that, in the opinion of such person, he or
she has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been satisfied; and 

(d)        a statement as to whether or not, in the opinion of
such person, such condition or covenant has been satisfied. 
 Section 11.06. Rules by Trustee and Agents. 

The Trustee may make reasonable rules for action by or at a meeting of Holders. The Registrar or Paying Agent may make
reasonable rules and set reasonable requirements for its functions. 
 Section 11.07. No Personal Liability of Directors,
Officers, Employees and Unitholders. 
 Neither General Partner nor any past, present or future director,
officer, partner, employee, incorporator, manager or unitholder or other owner of Capital Stock of the Issuers, the General Partners or any Guarantor, as such, shall have any liability for any obligations of the Issuers or any Guarantor under the
Notes, the Subsidiary Guarantees or this Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of 

 

 79 

 
Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. 

Section 11.08. Governing Law. 

THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 Section 11.09. No Adverse Interpretation of Other Agreements. 

This Indenture may not be used to interpret any other indenture, loan or debt agreement of the Company or its Subsidiaries
or of any other Person. Any such indenture, loan or debt agreement may not be used to interpret this Indenture. 

Section 11.10. Successors. 

All agreements of the Issuers and the Guarantors in this Indenture and the Notes shall bind their respective successors.
All agreements of the Trustee in this Indenture shall bind its successors. 
 Section 11.11. Severability. 

In case any provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 Section 11.12.
Table of Contents, Headings, etc. 
 The Table of Contents, Cross-Reference Table and headings of the Articles
and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part of this Indenture and shall in no way modify or restrict any of the terms or provisions hereof. 

Section 11.13. Counterparts. 

This Indenture may be signed in counterparts and by the different parties hereto in separate counterparts, each of which
shall constitute an original and all of which together shall constitute one and the same instrument. 
 [Signatures on following
page] 
  

 80 

 SIGNATURES 

							
			
		 		 	 INERGY, L.P.

				
		 		 	 BY:
	 	 INERGY GP, LLC, ITS MANAGING GENERAL PARTNER

				
		 		 	 By:
	 	 /s/ John J. Sherman

		 		 	 John J. Sherman

		 		 	 President and Chief Executive Officer

			
		 		 	 INERGY FINANCE CORP.

				
		 		 	 By:
	 	 /s/ John J. Sherman

		 		 	 John J. Sherman

		 		 	 President and Chief Executive Officer

			
		 		 	GUARANTORS
			
		 		 	 INERGY PROPANE, LLC

		 		 	 INERGY MIDSTREAM, LLC

		 		 	 L & L TRANSPORTATION, LLC

		 		 	 INERGY TRANSPORTATION, LLC

		 		 	 FINGER LAKES LPG STORAGE, LLC

		 		 	 INERGY GAS MARKETING, LLC

		 		 	 INERGY STORAGE, INC

		 		 	 STELLAR PROPANE SERVICE, LLC

		 		 	 CENTRAL NEW YORK OIL AND GAS COMPANY, L.L.C.

		 		 	 INERGY SALES & SERVICE, INC.

		 		 	 ARLINGTON STORAGE COMPANY, LLC

		 		 	 US SALT, LLC

		 		 	 LIBERTY PROPANE GP, LLC

		 		 	 LIBERTY PROPANE, LP, BY LIBERTY PROPANE GP, LLC, ITS GENERAL
PARTNER

		 		 	 LIBERTY PROPANE OPERATIONS, LLC

		 		 	 INERGY PIPELINE EAST, LLC

				
		 		 	 BY:
	 	 /s/ John J. Sherman

		 		 		 	     John J. Sherman

		 		 		 	     President and Chief Executive Officer

 

 81 

			
	 U.S. BANK NATIONAL ASSOCIATION,
as TRUSTEE

		
	 By:
	 	 /s/ Raymond S. Haverstock

		 	     Raymond S. Haverstock

		 	     Vice President

  

 82 

 RULE 144A/REGULATION S APPENDIX 

PROVISIONS RELATING TO INITIAL NOTES, 

PRIVATE EXCHANGE NOTES 

AND EXCHANGE NOTES 
  

	1.	Definitions 

1.1        Definitions. 

For the purposes of this Appendix the following terms shall have the meanings indicated below: 

“Depository” means The Depository Trust Company, its nominees and their respective successors. 

“Exchange Notes” means (1) the 7.0% Senior Notes due 2018 issued pursuant to the Indenture in connection
with a Registered Exchange Offer pursuant to a Registration Rights Agreement and (2) Additional Notes, if any, issued pursuant to a registration statement filed with the SEC under the Notes Act. 

“Initial Notes” means (1) $600.0 million aggregate principal amount of 7.0% Senior Notes due 2018 issued
on the Initial Issuance Date and (2) Additional Notes, if any, issued in a transaction exempt from the registration requirements of the Securities Act. 

“Initial Purchasers” means (1) with respect to the Initial Notes issued on the Initial Issuance Date,
Wells Fargo Securities, LLC, Barclays Capital Inc., J.P. Morgan Securities LLC, Banc of America Securities LLC, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. Incorporated and SunTrust Robinson
Humphrey, Inc., and (2) with respect to each issuance of Additional Notes, the Persons purchasing such Additional Notes under the related Purchase Agreement. 

“Notes” means the Initial Notes, the Additional Notes, the Exchange Notes and the Private Exchange Notes,
treated as a single class. 
 “Notes Custodian” means the custodian with respect to a Global Note (as
appointed by the Depository), or any successor Person thereto and shall initially be the Trustee. 

“Private Exchange” means the offer by the Company, pursuant to a Registration Rights Agreement, to the Initial
Purchasers to issue and deliver to each Initial Purchaser, in exchange for the Initial Notes held by the Initial Purchaser as part of its initial distribution, a like aggregate principal amount of Private Exchange Notes. 

“Private Exchange Notes” means any 7.0% Senior Notes due 2018 issued in connection with a Private Exchange.

 “Purchase Agreement” means (1) with respect to the Initial Notes issued on the Initial
Issuance Date, the Purchase Agreement dated September 13, 2010 among the Issuers, the Guarantors and the Initial Purchasers, and (2) with respect to each issuance of Additional Notes,

  

 App.
- 1 

 
the purchase agreement or underwriting agreement among the Issuers and the Persons purchasing such Additional Notes. 

“Registered Exchange Offer” means the offer by the Issuers, pursuant to a Registration Rights Agreement, to
certain Holders of Initial Notes, to issue and deliver to such Holders, in exchange for the Initial Notes, a like aggregate principal amount of Exchange Notes registered under the Securities Act. 

“Registration Rights Agreement” means (1) with respect to the Initial Notes issued on the Initial Issuance
Date, the Registration Rights Agreement dated September 27, 2010 among the Issuers, the Guarantors and the Initial Purchasers, a form of which is attached to this Indenture as Annex B, and (2) with respect to each issuance of Additional
Notes issued in a transaction exempt from the registration requirements of the Securities Act, the registration rights agreement, if any, among the Issuers and the Persons purchasing such Additional Notes under the related Purchase Agreement.

 “Shelf Registration Statement” means the registration statement issued by the Company in connection
with the offer and sale of Initial Notes or Private Exchange Notes pursuant to a Registration Rights Agreement. 

“Transfer Restricted Securities” means Notes that bear or are required to bear the legend set forth in
Section 2.3(b) hereof. 
 1.2        Other Definitions.

  

					
	 Term
	  	Defined in Section:	 	 
	 “Agent Members”
	  	2.1(b)	 	
	 “Distribution Compliance Period”
	  	2.1(b)	 	
	 “Global Note”
	  	2.1(a)	 	
	 “Regulation S”
	  	2.1(a)	 	
	 “Regulation S Notes”
	  	2.1(a)	 	
	 “Restricted Global Note”
	  	2.1(a)	 	
	 “Rule 144A”
	  	2.1(a)	 	
	 “Rule 144A Notes”
	  	2.1(a)	 	

  

	2.	The Notes. 

2.1        (a)  Form and Dating.  Initial Notes offered
and sold to QIBs in reliance on Rule 144A (“Rule 144A Notes”) under the Securities Act (“Rule 144A”) or in reliance on Regulation S (“Regulation S Notes”) under the Securities Act
(“Regulation S”), in each case as provided in a Purchase Agreement, and Private Exchange Notes, as provided in a Registration Rights Agreement, shall be issued initially in the form of one or more permanent global Notes in definitive,
fully registered form without interest coupons with the global Notes legend and restricted Notes legend set forth in Exhibit 1 hereto (each, a “Restricted Global Note”), which shall be deposited on behalf of the purchasers of the Initial
Notes represented thereby with the Trustee, as custodian for the Depository (or with such other custodian as the Depository may 

 

 App.
- 2 

 
direct), and registered in the name of the Depository or a nominee of the Depository, duly executed by the Issuers and authenticated by the Trustee as hereinafter provided. Beneficial interests
in a Restricted Global Note representing Initial Notes sold in reliance on either Rule 144A or Regulation S may be held through Euroclear or Clearstream, as indirect participants in the Depository. The aggregate principal amount of the
Global Notes may from time to time be increased or decreased by adjustments made on the records of the Trustee and the Depository or its nominee as hereinafter provided. Exchange Notes shall be issued in global form (with the global Notes legend set
forth in Exhibit 1 hereto) or in certificated form as provided in Section 2.4 of this Appendix. Exchange Notes issued in global form and Restricted Global Notes are sometimes referred to in this Appendix as “Global Notes”. 

(b)        Book-Entry Provisions.  This Section 2.1(b)
shall apply only to a Global Note deposited with or on behalf of the Depository. 
 The Issuers shall execute
and the Trustee shall, in accordance with this Section 2.1(b), authenticate and deliver initially one or more Global Notes that (a) shall be registered in the name of the Depository for such Global Note or Global Notes or the nominee of
such Depository and (b) shall be delivered by the Trustee to such Depository or pursuant to such Depository’s instructions or held by the Trustee as custodian for the Depository. If such Global Notes are Restricted Global Notes, then
separate Global Notes shall be issued to represent Rule 144A Notes and Regulation S Notes so long as required by law or the Depository. 

Members of, or participants in, the Depository (“Agent Members”) shall have no rights under this Indenture with
respect to any Global Note held on their behalf by the Depository or by the Trustee as the custodian of the Depository or under such Global Note, and the Issuers, the Trustee and any agent of the Issuers or the Trustee shall be entitled to treat the
Depository as the absolute owner of such Global Note for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Issuers, the Trustee or any agent of the Issuers or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by the Depository or impair, as between the Depository and its Agent Members, the operation of customary practices of such Depository governing the exercise of the rights of a holder of a
beneficial interest in any Global Note. 
 Until the 40th day after the later of the commencement of the
offering of any Initial Notes and the original issue date of such Initial Notes (such period, the “Distribution Compliance Period”), a beneficial interest in a Restricted Global Note representing Regulation S Notes may be transferred
to a Person who takes delivery in the form of an interest in a Restricted Global Note representing Rule 144A Notes only if the transferor first delivers to the Trustee a written certificate (in the form provided in Exhibit 1 hereto) to the
effect that such transfer is being made to a Person who the transferor reasonably believes is purchasing for its own account or accounts as to which it exercises sole investment discretion and that such Person is a QIB, in each case in a transaction
meeting the requirements of Rule 144A and in accordance with any applicable securities laws of any state of the United States or any other jurisdiction. After the expiration of the Distribution Compliance Period, such certification requirements
shall not apply to such transfers of beneficial interests in a Restricted Global Note representing Regulation S Notes. 

Beneficial interests in a Restricted Global Note representing Rule 144A Notes may be transferred to a Person who
takes delivery in the form of an interest in a Restricted Global Note representing Regulation S Notes, whether before or after the expiration of the Distribution Compliance Period, only if the transferor first delivers to the Trustee a written
certificate (in the 
  

 App.
- 3 

 
form provided in Exhibit 1 hereto) to the effect that such transfer is being made in accordance with Rule 904 of Regulation S or Rule 144 (if available). 

(c)        Certificated Notes.  Except as provided in
Section 2.3 or 2.4, owners of beneficial interests in Restricted Global Notes shall not be entitled to receive physical delivery of certificated Notes. Certificated Notes shall not be exchangeable for beneficial interests in Global Notes.

 2.2        Authentication.  The Trustee shall
authenticate and deliver: (1) on the Initial Issuance Date, an aggregate principal amount of $600.0 million 7.0% Senior Notes due 2018, (2) any Additional Notes for an original issue in an aggregate principal amount specified in the
written order of the Issuers pursuant to Section 2.02 of the Indenture and (3) Exchange Notes or Private Exchange Notes for issue only in a Registered Exchange Offer or a Private Exchange, respectively, pursuant to a Registration Rights
Agreement, for a like principal amount of Initial Notes, in each case upon a written order of the Issuers. Such order shall specify the amount of the Notes to be authenticated, the date on which the original issue of Notes is to be authenticated and
to whom the Notes shall be registered and delivered and, in the case of any issuance of Additional Notes pursuant to Section 2.13 of the Indenture, shall certify that such issuance is in compliance with Section 4.09 of the Indenture.

 2.3        Transfer and Exchange. 

(a)        Transfer and Exchange of Global Notes.  (i) The
transfer and exchange of Global Notes or beneficial interests therein shall be effected through the Depository, in accordance with this Indenture (including applicable restrictions on transfer set forth herein, if any) and the procedures of the
Depository therefor. A transferor of a beneficial interest in a Global Note shall deliver to the Registrar a written order given in accordance with the Depository’s procedures containing information regarding the participant account of the
Depository to be credited with a beneficial interest in the Global Note. The Registrar shall, in accordance with such instructions instruct the Depository to credit to the account of the Person specified in such instructions a beneficial interest in
the Global Note and to debit the account of the Person making the transfer the beneficial interest in the Global Note being transferred. 

(ii)        Notwithstanding any other provisions of this Appendix,
a Global Note may not be transferred as a whole except by the Depository to a nominee of the Depository or by a nominee of the Depository to the Depository or another nominee of the Depository or by the Depository or any such nominee to a successor
Depository or a nominee of such successor Depository. 

(iii)        In the event that a Restricted Global Note is
exchanged for Notes in certificated form pursuant to Section 2.4 of this Appendix, prior to the consummation of a Registered Exchange Offer or the effectiveness of a Shelf Registration Statement with respect to such Notes, such Notes may be
exchanged only in accordance with such procedures as are substantially consistent with the provisions of this Section 2.3 (including the certification requirements set forth on the reverse of the Initial Notes intended to ensure that such
transfers comply with Rule 144A or Regulation S, as the case may be) and such other procedures as may from time to time be adopted by the Company. 
  

 App.
- 4 

 (b)        Legend.

 (i)        Except as permitted by the following
paragraphs (ii), (iii) and (iv), each Note certificate evidencing the Restricted Global Notes (and all Notes issued in exchange therefor or in substitution thereof) shall bear a legend in substantially the following form: 

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE
IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 

THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF INERGY, L.P. AND INERGY FINANCE CORP. THAT
(A) THIS NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO AN ISSUER, (II) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (III) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (IV) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (V) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND IN EACH OF CASES (I) THROUGH (V) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF
ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY SUBSEQUENT PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE. 

(ii)        Upon any sale or transfer of a Transfer Restricted
Security (including any Transfer Restricted Security represented by a Restricted Global Note) pursuant to Rule 144 under the Securities Act, the Registrar shall permit the transferee thereof to exchange such Transfer Restricted Security for a
certificated Note that does not bear the legend set forth above and rescind any restriction on the transfer of such Transfer Restricted Security, if the transferor thereof certifies in writing to the Registrar that such sale or transfer was made in
reliance on Rule 144 (such certification to be in the form set forth on the reverse of the Note). 

(iii)        After a transfer of any Initial Notes or Private
Exchange Notes pursuant to and during the period of the effectiveness of a Shelf Registration Statement with respect to such Initial Notes or Private Exchange Notes, as the case may be, all requirements pertaining to legends on such Initial Note or
such Private Exchange Note will cease to 
  

 App.
- 5 

 
apply, the requirements requiring any such Initial Note or such Private Exchange Note issued to certain Holders be issued in global form will cease to apply, and a certificated Initial Note or
Private Exchange Note or an Initial Note or Private Exchange Note in global form, in each case without restrictive transfer legends, will be available to the transferee of the Holder of such Initial Notes or Private Exchange Notes upon exchange of
such transferring Holder’s certificated Initial Note or Private Exchange Note or directions to transfer such Holder’s interest in the Global Note, as applicable. 

(iv)        Upon the consummation of a Registered Exchange Offer
with respect to the Initial Notes, all requirements pertaining to such Initial Notes that Initial Notes issued to certain Holders be issued in global form will still apply with respect to Holders of such Initial Notes that do not exchange their
Initial Notes, and Exchange Notes in certificated or global form will be available to Holders that exchange such Initial Notes in such Registered Exchange Offer. 

(v)        Upon the consummation of a Private Exchange with
respect to the Initial Notes, all requirements pertaining to such Initial Notes that Initial Notes issued to certain Holders be issued in global form will still apply with respect to Holders of such Initial Notes that do not exchange their Initial
Notes, and Private Exchange Notes in global form with the global Notes legend and the Restricted Notes legend set forth in Exhibit 1 hereto will be available to Holders that exchange such Initial Notes in such Private Exchange. 

(c)        Cancellation or Adjustment of Global Note.  At such
time as all beneficial interests in a Global Note have either been exchanged for certificated Notes, redeemed, purchased or canceled, such Global Note shall be returned to the Depository for cancellation or retained and canceled by the Trustee. At
any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for certificated Notes, redeemed, purchased or canceled, the principal amount of Notes represented by such Global Note shall be reduced and an adjustment
shall be made on the books and records of the Trustee (if it is then the Notes Custodian for such Global Note) with respect to such Global Note, by the Trustee or the Notes Custodian, to reflect such reduction. 

(d)        Obligations with Respect to Transfers and Exchanges of Notes.

 (i)        To permit registrations of transfers and
exchanges, the Issuers shall execute and the Trustee shall authenticate certificated Notes and Global Notes at the Registrar’s request. 

(ii)        No service charge shall be made for any registration
of transfer or exchange, but the Issuers may require payment of a sum sufficient to cover any transfer tax, assessments or similar governmental charge payable in connection therewith (other than any such transfer taxes, assessments or similar
governmental charge payable upon exchange or transfer pursuant to Sections 3.06, 4.10, 4.15 and 9.05 and of the Indenture). 

(iii)        The Registrar shall not be required to register the
transfer of or exchange of any Note or portion of a Note selected for redemption, except for the unredeemed portion of any Note being redeemed in part. Also, it need not exchange or register the transfer of any Notes for a period of 15 days before a
selection of Notes to be redeemed. 
 (iv)        Prior
to the due presentation for registration of transfer of any Note, the Issuers, the Guarantors, the Trustee, the Paying Agent or the Registrar may deem and treat the Person in whose name a Note is registered as the absolute owner of such Note

  

 App.
- 6 

 
for the purpose of receiving payment of principal of, premium, if any, interest and Additional Interest, if any, on such Note and for all other purposes whatsoever, whether or not such Note is
overdue, and none of the Issuers, the Guarantors, the Trustee, the Paying Agent or the Registrar shall be affected by notice to the contrary. 

(v)        All Notes issued upon any transfer or exchange pursuant
to the terms of this Indenture shall evidence the same debt and shall be entitled to the same benefits under this Indenture as the Notes surrendered upon such transfer or exchange. 

(e)        No Obligation of the Trustee. 

(i)        The Trustee shall have no responsibility or obligation
to any beneficial owner of a Global Note, a member of, or a participant in the Depository or other Person with respect to the accuracy of the records of the Depository or its nominee or of any participant or member thereof, with respect to any
ownership interest in the Notes or with respect to the delivery to any participant, member, beneficial owner or other Person (other than the Depository) of any notice (including any notice of redemption) or the payment of any amount, under or with
respect to such Notes. All notices and communications to be given to the Holders and all payments to be made to Holders under the Notes shall be given or made only to or upon the order of the registered Holders (which shall be the Depository or its
nominee in the case of a Global Note). The rights of beneficial owners in any Global Note shall be exercised only through the Depository subject to the applicable rules and procedures of the Depository. The Trustee may rely and shall be fully
protected in relying upon information furnished by the Depository with respect to its members, participants and any beneficial owners. 

(ii)        The Trustee shall have no obligation or duty to
monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under Applicable Law with respect to any transfer of any interest in any Note (including any transfers between or among Depository
participants, members or beneficial owners in any Global Note) other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by, the terms of this
Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof. 

2.4        Certificated Notes. 

(a)        A Global Note deposited with the Depository or with the Trustee as
custodian for the Depository pursuant to Section 2.1 shall be transferred to the beneficial owners thereof in the form of certificated Notes in an aggregate principal amount equal to the principal amount of such Global Note, in exchange for
such Global Note, only if such transfer complies with Section 2.3 and (i) the Depository notifies the Issuers that it is unwilling or unable to continue as Depository for such Global Note or if at any time such Depository ceases to be a
“clearing agency” registered under the Exchange Act and in either event a successor depositary is not appointed by the Issuers within 90 days, or (ii) an Event of Default has occurred and is continuing and DTC notifies the Trustee of
its decision to exchange the Global Notes. 
 (b)        Any Global Note
that is transferable to the beneficial owners thereof pursuant to this Section shall be surrendered by the Depository or the Notes Custodian to the Trustee located at its Corporate Trust Office to be so transferred, in whole or from time to time in
part, without charge, and the Trustee shall authenticate and deliver, upon such transfer of each portion of such 
  

 App.
- 7 

 
Global Note, an equal aggregate principal amount of certificated Notes of authorized denominations. Any portion of a Global Note transferred pursuant to this Section shall be executed,
authenticated and delivered only in denominations of $2,000 principal amount and any integral multiple of $1,000 in excess thereof and registered in such names as the Depository shall direct. Any certificated Note or Private Exchange Note delivered
in exchange for an interest in the Global Note shall, except as otherwise provided by Section 2.3(b), bear the restricted Notes legend set forth in Exhibit 1 hereto. 

(c)        Subject to the provisions of Section 2.4(b), the Holder of a
Global Note shall be entitled to grant proxies and otherwise authorize any Person, including Agent Members and Persons that may hold interests through Agent Members, to take any action which a Holder is entitled to take under this Indenture or the
Notes. 
 (d)        In the event of the occurrence of any of the events
specified in Section 2.4(a), the Issuers shall promptly make available to the Trustee a reasonable supply of certificated Notes in definitive, fully registered form without interest coupons. 

 

 App.
- 8 

 EXHIBIT 1 TO RULE 144A/REGULATION S APPENDIX 

[FORM OF FACE OF INITIAL NOTE] 

[Global Notes Legend] 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (“DTC”), NEW YORK, NEW YORK, TO AN ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 TRANSFERS OF
THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE
WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 
 [Restricted Notes Legend] 

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY
NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 

THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF INERGY, L.P. AND INERGY FINANCE CORP. THAT (A) THIS NOTE MAY BE
OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO AN ISSUER, (II) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (III) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (IV) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY
RULE 144 THEREUNDER (IF AVAILABLE) OR (V) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND IN EACH OF CASES (I) THROUGH (V) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY SUBSEQUENT 
  

 Ex. 1 to App.
- 1 

 
PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE. 
  

 Ex. 1 to App.
- 2 

 INERGY, L.P. 

INERGY FINANCE CORP. 
  

			
	 No.
	  	$                   
		
		  	 CUSIP No.

ISIN No.

7.0% Senior Note due 2018 

Inergy, L.P., a Delaware limited partnership, and Inergy Finance Corp., a Delaware corporation, jointly and severally
promise to pay to                 , or registered assigns, the principal sum of
                 Dollars on October 1, 2018 [or such greater or lesser amount as may be indicated on Schedule A
hereto].1 

Interest Payment Dates: April 1 and October 1. 

Record Dates: March 15 and September 15. 

Additional provisions of this Note are set forth on the other side of this Note. 

 

			
	 INERGY, L.P.

			
		
	 BY:
	 	
INERGY GP, LLC, ITS MANAGING GENERAL

  PARTNER

			
		
	 By:
	 	
 

			
	 Name:
	 	
 

			
	 Title:
	 	
 

			
	
	 INERGY FINANCE
CORP.

			
		
	 By:
	 	
 

			
	 Name:
	 	
 

			
	 Title:
	 	  

 
  

1
 If this Note is a Global Note, add this provision. 
  

 Ex. 1 to App.
- 3 

 TRUSTEE’S CERTIFICATE OF 

AUTHENTICATION 

U.S. BANK NATIONAL ASSOCIATION, 

as Trustee, certifies that 

this is one of the Notes 

referred to in the Indenture. 
  

			
	 By
	 	  

			
		 	 Authorized Signatory

		
	 Dated:
	 	

  

 Ex. 1 to App.
- 4 

 [FORM OF REVERSE SIDE OF INITIAL NOTE] 

7.0% Senior Note due 2018 

Capitalized terms used herein but not defined shall have the meanings assigned to them in the Indenture referred to below
unless otherwise indicated. 

1.        Interest.    Inergy, L.P., a Delaware
limited partnership (the “Company”), and Inergy Finance Corp., a Delaware corporation (the “Finance Corp.” and, together with the Company, the “Issuers”), jointly and severally promise to pay interest on the principal
amount of this Note at 7.0% per annum from September 27, 2010 until maturity and shall pay the Additional Interest payable pursuant to Section 2(d) of the Registration Rights Agreement referred to below. The Issuers will pay interest
and Additional Interest, if any, semi-annually in arrears on April 1 and October 1 of each year, commencing April 1, 2011, or if any such day is not a Business Day, on the next succeeding Business Day (each an “Interest Payment
Date”). Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of original issuance; provided that if there is no existing Default or Event of Default in the
payment of interest, and if this Note is authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date, except in the case of
the original issuance of Notes, in which case interest shall accrue from the date of authentication. The Issuers shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if
any, from time to time on demand at a rate that is the rate then in effect; it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest and Additional Interest (without
regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 

2.        Method of Payment.    The Issuers will pay
interest on the Notes (except defaulted interest) and Additional Interest to the Persons who are registered Holders of Notes at the close of business on the March 15 or September 15 next preceding the Interest Payment Date, even if such
Notes are cancelled after such record date and on or before such Interest Payment Date, except as provided in Section 2.11 of the Indenture with respect to defaulted interest. Holders must surrender Notes to the Paying Agent to collect payments
of principal and premium, if any, together with accrued and unpaid interest and Additional Interest, if any, due at maturity. The Notes will be payable as to principal, premium, if any, interest and Additional Interest, if any, at the office or
agency of the Issuers maintained for such purpose within the City and State of New York, or, at the option of the Issuers, payment of interest and Additional Interest may be made by check mailed to the Holders at their addresses set forth in the
register of Holders, and provided that payment by wire transfer of immediately available funds will be required with respect to any amounts due on all Global Notes and all other Notes the Holders of which shall have provided wire transfer
instructions to the Issuers or the Paying Agent. Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 

3.        Paying Agent and Registrar.    Initially,
U.S. Bank National Association, the Trustee under the Indenture, will act as Paying Agent and Registrar. The Company may change 

 

 Ex. 1 to App.
- 5 

 
any Paying Agent or Registrar without notice to any Holder. The Company or any of its Subsidiaries may act in any such capacity. 

4.        Indenture.    The Issuers issued the Notes
under an Indenture dated as of September 27, 2010 (“Indenture”) among the Issuers, the Guarantors and the Trustee. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb). The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for a statement of such terms. The Notes are unsecured senior
obligations of the Issuers limited to $600,000,000 aggregate principal amount in the case of Notes issued on the Initial Issuance Date (as defined in the Indenture). 

5.        Optional Redemption. 

(a)      Except as set forth in subparagraphs (b) and (c) of this Paragraph 5, the
Issuers shall not have the option to redeem the Notes prior to October 1, 2014. On or after October 1, 2014, the Issuers shall have the option to redeem the Notes, in whole or in part at any time, upon prior notice as set forth in
Paragraph 8, at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest and Additional Interest, if any, to the applicable redemption date (subject to the right of Holders of record
on the relevant record date to receive interest due on an Interest Payment Date that is on or prior to the redemption date), if redeemed during the twelve-month period beginning on October 1 of the years indicated below: 

 

			
	 YEAR
	  	PERCENTAGE
	 2014
	  	103.500%
	 2015
	  	101.750%
	 2016
	  	100.000%

(b)        Notwithstanding the provisions of subparagraph (a) of this
Paragraph 5, at any time prior to October 1, 2013, the Company may on any one or more occasions redeem up to 35% of the aggregate principal amount of Notes (including any Additional Notes) issued under the Indenture at a redemption price of
107.000% of the principal amount thereof, plus accrued and unpaid interest and Additional Interest, if any, thereon to the redemption date (subject to the right of Holders of record on the relevant record date to receive interest due on an Interest
Payment Date that is on or prior to the redemption date), with the net cash proceeds of one or more Equity Offerings by the Company; provided that (i) at least 65% of the aggregate principal amount of Notes (including any Additional Notes)
issued under the Indenture remains outstanding immediately after the occurrence of each such redemption (excluding any Notes held by the Company and its Subsidiaries) and (ii) each such redemption occurs within 150 days of the date of the
closing of each such Equity Offering. 
 (c)        In the event that
Holders of not less than 90% of the aggregate principal amount of the outstanding Notes accept a Change of Control Offer and the Company purchases all of the Notes held by such Holders, the Company will have the right upon not less than 30 nor more
than 60 days’ prior notice, given not more than 30 days following the purchase pursuant to the Change of Control Offer described below to redeem all of the Notes that remain outstanding following such purchase at a redemption price equal to the
Change of Control Payment plus, to 
  

 Ex. 1 to App.
- 6 

 
the extent not included in the Change of Control Payment, accrued and unpaid interest on the Notes that remain outstanding, to the date of redemption (subject to the right of Holders of record on
the relevant record date to receive interest due on an Interest Payment Date that is on or prior to the redemption date). 

6.        Mandatory Redemption. 

Except as set forth in this Paragraph 6 and in Paragraph 7 below, neither of the Issuers shall be required to make
mandatory redemption or sinking fund payments with respect to the Notes or to repurchase the Notes at the option of the Holders. 

Following the Special Mandatory Redemption Trigger Event, the Initial Notes are subject to mandatory redemption as a
whole, upon the giving of prior notice to Holders and on the redemption date and for the redemption price set forth in Section 3.08 of the Indenture. 

7.        Repurchase at Option of Holder. 

(a)        Within 30 days following the occurrence of a Change of Control, the
Company shall make an offer (a “Change of Control Offer”) to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of each Holder’s Notes at a purchase price equal to 101% of the aggregate
principal amount of Notes repurchased, plus accrued and unpaid interest and Additional Interest, if any, to the date of settlement (the “Change of Control Settlement Date”), subject to the right of Holders of record on the relevant record
date to receive interest due on an Interest Payment Date that is on or prior to the Change of Control Settlement Date. Within 30 days following a Change of Control, the Company shall mail a notice of the Change of Control Offer to each Holder and
the Trustee describing the transaction that constitutes the Change of Control and setting forth the procedures governing the Change of Control Offer as required by Section 4.15 of the Indenture. 

(b)        On the 361st day after an Asset Sale, if the aggregate amount of
Excess Proceeds then exceeds $20.0 million, the Company shall commence an offer to all Holders of Notes (an “Asset Sale Offer”) pursuant to Section 3.09 of the Indenture, and to all holders of any Pari Passu Indebtedness then
outstanding, to purchase the maximum principal amount of Notes and such Pari Passu Indebtedness that may be purchased out of the Excess Proceeds, at an offer price in cash in an amount equal to 100% of the principal amount of the Notes plus accrued
and unpaid interest and Additional Interest, if any, thereon to the date of settlement, subject to the right of Holders of record on the relevant record date to receive interest due on an Interest Payment Date that is on or prior to the Change of
Control Settlement Date, in accordance with the procedures set forth in the Indenture. If any Excess Proceeds remain after consummation of an Asset Sale Offer, the Company may use such remaining Excess Proceeds for any purpose not otherwise
prohibited by the Indenture. If the aggregate principal amount of Notes surrendered by Holders thereof and Pari Passu Indebtedness surrendered by holders or lenders, collectively, exceeds the amount of Excess Proceeds, the Trustee shall select the
Notes and Pari Passu Indebtedness to be purchased on a pro rata basis (with such adjustments as may be deemed appropriate by the Trustee so that only Notes in denominations of $2,000, or integral multiples of $1,000 in excess thereof, shall be
purchased) on the basis of the aggregate principal amount of tendered Notes and Pari Passu Indebtedness. Holders of Notes that are the subject of an offer to purchase will receive an Asset Sale Offer from the Company prior to any related purchase
date and may elect 
  

 Ex. 1 to App.
- 7 

 
to have such Notes purchased by completing the form entitled “Option of Holder to Elect Purchase” on the reverse of the Notes. 

8.        Notice of Redemption.    Notice of
redemption will be mailed at least 30 days but not more than 60 days (except as otherwise provided in the Indenture if the notice is issued in connection with a Special Mandatory Redemption Trigger Event, Legal Defeasance, Covenant Defeasance or
Discharge) before the redemption date to each Holder whose Notes are to be redeemed at its registered address. If mailed in the manner provided for in Section 3.03 of the Indenture, the notice of redemption shall be conclusively presumed to
have been given whether or not a Holder receives such notice. Failure to give timely notice or any defect in the notice shall not affect the validity of the redemption. Notes in denominations larger than $2,000 may be redeemed in part but only in
whole multiples of $1,000 in excess thereof, unless all of the Notes held by a Holder are to be redeemed. On and after the redemption date interest and Additional Interest, if any, cease to accrue on Notes or portions thereof called for redemption.

 9.        Denominations, Transfer,
Exchange.    The Notes are in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. The transfer of Notes may be registered and Notes may be exchanged as provided in
the Indenture. The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents, and the Company may require a Holder to pay any taxes due on transfer or exchange. The Issuers need
not exchange or register the transfer of any Note or portion of a Note selected for redemption, except for the unredeemed portion of any Note being redeemed in part. Also, they need not exchange or register the transfer of any Notes for a period of
15 days before a selection of Notes to be redeemed. 

10.        Persons Deemed Owners.    The registered
Holder of a Note may be treated as its owner for all purposes. 

11.        Amendment, Supplement and
Waiver.    Subject to certain exceptions, the Indenture or the Notes may be amended or supplemented with the consent of the Holders of at least a majority in principal amount of the then outstanding Notes, and any existing
default or compliance with any provision of the Indenture or the Notes may be waived with the consent of the Holders of a majority in principal amount of the then outstanding Notes. Without the consent of any Holder of a Note, the Indenture or the
Notes may be amended or supplemented (1) to cure any ambiguity, defect or inconsistency, (2) to provide for uncertificated Notes in addition to or in place of certificated Notes, (3) to provide for the assumption of an Issuer’s
obligations to Holders of the Notes pursuant to Article 5 of the Indenture, (4) to make any change that would provide any additional rights or benefits to the Holders of the Notes or that does not adversely affect the legal rights under
the Indenture of any such Holder, provided that any change to conform the Indenture to the Offering Memorandum shall not be deemed to adversely affect the legal rights under the Indenture of any Holder, (5) to secure the Notes or the Subsidiary
Guarantees pursuant to Section 4.12 of the Indenture or otherwise, (6) to provide for the issuance of Additional Notes in accordance with the limitations set forth in the Indenture, (7) to add any additional Guarantor with respect to
the Notes or to evidence the release of any Guarantor from its Subsidiary Guarantee, in each case as provided in the Indenture, (8) to comply with the requirements of the SEC in order to effect or maintain the qualification of the Indenture
under the Trust Indenture Act, (9) to provide for the reorganization of the Company as any other form of entity in 

 

 Ex. 1 to App.
- 8 

 
accordance with the second paragraph of Section 5.01 of the Indenture or (10) to evidence or provide for the acceptance of appointment under the Indenture of a successor Trustee.

 12.        Defaults and
Remedies.    Events of Default include: (i) default for 30 days in the payment when due of interest or Additional Interest, if any, on the Notes; (ii) default in payment when due of the principal of or premium, if
any, on the Notes when due at Stated Maturity, upon optional redemption, upon required repurchase, upon declaration or otherwise; (iii) failure by the Company to comply with Section 3.09, 4.10, 4.15 or 5.01 of the Indenture;
(iv) failure by the Company for 90 days after notice to comply with Section 4.03 of the Indenture; (v) failure by the Company for 60 days after notice to comply with any of its other agreements in the Indenture or the Notes;
(vi) default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Indebtedness for money borrowed by the Company or any of its Restricted Subsidiaries (or the payment of
which is guaranteed by the Company or any of its Restricted Subsidiaries), whether such Indebtedness or guarantee now exists or is created after the Initial Issuance Date, if such default (a) is caused by a failure to pay principal of, or
premium or interest, if any, on such Indebtedness prior to the expiration of any grace period provided in such Indebtedness (a “Payment Default”) or (b) results in the acceleration of such Indebtedness prior to its Stated Maturity
and, in each case, the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under which there has been a Payment Default or the maturity of which has been so accelerated, aggregates in excess
of $15.0 million provided that if any such default is cured or waived or any such acceleration rescinded, or such Indebtedness is repaid, within a period of 30 days from the continuation of such default beyond the applicable grace period or the
occurrence of such acceleration, as the case may be, such Event of Default and any consequential acceleration of the Notes shall be automatically rescinded, so long as such rescission does not conflict with any judgment or decree; (vii) failure
by the Company or any of its Subsidiaries to pay final judgments aggregating in excess of $15.0 million, which judgments are not paid, discharged or stayed for a period of 60 days; (viii) except as permitted by the Indenture, any Subsidiary
Guarantee is held in any judicial proceeding to be unenforceable or invalid or ceases for any reason to be in full force and effect or any Guarantor, or any Person acting on behalf of any Guarantor, denies or disaffirms its obligations under its
Subsidiary Guarantee; and (ix) certain events of bankruptcy, insolvency or reorganization with respect to the Company, Finance Corp., any of the Company’s Restricted Subsidiaries that is a Significant Subsidiary of the Company or any group
of Restricted Subsidiaries of the Company that, taken together, would constitute a Significant Subsidiary of the Company as specified in Section 6.01(i) or 6.01(j) of the Indenture. If any Event of Default occurs and is continuing, the Trustee,
by notice to the Issuers, or the Holders of at least 25% in principal amount of the then outstanding Notes, by notice to the Issuers and the Trustee, may declare all the Notes to be due and payable immediately. Notwithstanding the preceding, in the
case of an Event of Default arising from such events of bankruptcy, insolvency or reorganization described in Section 6.01(i) or 6.01(j) of the Indenture, all outstanding Notes will become due and payable without further action or notice.
Holders may not enforce the Indenture or the Notes except as provided in the Indenture. Subject to certain limitations, Holders of a majority in principal amount of the then outstanding Notes may direct the Trustee in its exercise of any trust or
power conferred on it. The Trustee may withhold from Holders of the Notes notice of any continuing Default or Event of Default (except a Default or Event of Default relating to the payment of principal, interest, premium or Additional Interest) if
it determines that withholding notice is in their interest. The Holders of a majority in principal amount of the Notes then outstanding by notice to the Trustee may on 

 

 Ex. 1 to App.
- 9 

 
behalf of the Holders of all of the Notes waive any existing Default or Event of Default and its consequences under the Indenture except a continuing Default or Event of Default in the payment of
the principal of or premium, interest or Additional Interest, if any, on the Notes. The Issuers are required to deliver to the Trustee annually a statement regarding compliance with the Indenture, and, so long as any Notes are outstanding, the
Issuers are required upon becoming aware of any Default or Event of Default, to deliver to the Trustee a statement specifying such Default or Event of Default. 

13.        Defeasance and Discharge.    The Notes are
subject to defeasance and discharge upon the terms and conditions specified in the Indenture. 

14.        No Recourse Against Others.    Neither
General Partner, nor any past, present or future director, officer, partner, employee, incorporator, manager or unitholder or other owner of Capital Stock of the Issuers, the General Partners or any Guarantor, as such, shall have any liability for
any obligations of the Issuers or any Guarantor under the Notes, the Subsidiary Guarantees or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder by accepting a Note waives and
releases all such liability. The waiver and release are part of the consideration for the issuance of the Notes. 

15.        Authentication.    This Note shall not be
valid until authenticated by the manual signature of an authorized signatory of the Trustee or an authenticating agent. 

16.        Abbreviations.    Customary abbreviations
may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act). 
 17.        Additional Rights of
Holders of Transfer Restricted Securities.    In addition to the rights provided to Holders of Notes under the Indenture, Holders of Transfer Restricted Securities shall have all the rights set forth in the Registration
Rights Agreement dated as of September 27, 2010, among the Issuers, the Guarantors and the Initial Purchasers (the “Registration Rights Agreement”). 

18.        Escrow.    The Initial Purchasers have
deposited the net proceeds of the offering of the Initial Notes with the Escrow Agent on the Initial Issuance Date. The Escrow Agent will hold such funds pursuant to the Escrow Agreement, and, subject to and in accordance with the conditions and
requirements set forth in the Escrow Agreement, it will either disburse such funds to or for the account of the Company or disburse them to the Trustee or the Paying Agent for application to the mandatory redemption of the Initial Notes following
the Special Mandatory Redemption Trigger Event. 
 19.        CUSIP
Numbers.    Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Issuers have caused CUSIP numbers and corresponding ISIN numbers to be printed on the Notes and the
Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders. No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed
only on the other identification numbers placed thereon. 
  

 Ex. 1 to App.
- 10 

 20.        Governing
Law.     THE INDENTURE AND THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

21.        Successors.    In the event a successor
assumes all the obligations of an Issuer under the Notes and the Indenture, pursuant to the terms thereof, such Issuer will be released from all such obligations. 

The Company will furnish to any Holder upon written request and without charge a copy of the Indenture or the
Registration Rights Agreement. Requests may be made to: 
 Inergy, L.P. 

Two Brush Creek Boulevard, Suite 200 

Kansas City, Missouri 64112 

Attention: Chief Financial Officer 

 

 Ex. 1 to App.
- 11 

 ASSIGNMENT FORM 

To assign this Note, fill in the form below: 

I or we assign and transfer this Note to 

 

	
	 Print or type assignee’s name, address and zip code)

 
  

	(Insert assignee’s soc. sec. or tax I.D. No.)

and irrevocably appoint
                             agent to transfer this Note on the books of the Issuers. The agent may
substitute another to act for him. 
  

							
	 Date:
	 	
                             
                               
	  	Your Signature:	  	  

		 		  	               Sign exactly as your name appears on the other side of this
Note.

  

	
	 Signature Guarantee:

	
	  

	 (Signature must be guaranteed)

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Registrar, which
requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for,
STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 
  

 
 In connection with any transfer of
any of the Notes evidenced by this certificate occurring prior to the expiration of the period referred to in Rule 144(k) under the Securities Act after the later of the date of original issuance of such Notes and the last date, if any, on which
such Notes were owned by the Company or any Affiliate of the Company (or, in the case of Regulation S Notes, prior to the expiration of the Distribution Compliance Period), the undersigned confirms that such Notes are being transferred in accordance
with its terms: 
 CHECK ONE BOX BELOW 
  

					
	 (1)
	  	 ̈	  	 to an Issuer; or

			
	 (2)
	  	 ̈	  	 pursuant to an effective registration statement under the Securities Act of 1933; or

			
	 (3)
	  	 ̈	  	 inside the United States to a person who the undersigned reasonably believes is a “qualified institutional buyer” (as defined in Rule 144A
under the Securities Act of 1933) that is purchasing for its own account or for the account of a qualified institutional buyer to whom notice is given that such transfer is being made in reliance on Rule 144A, in each case pursuant to and in
compliance with Rule 144A under the Securities Act of 1933; or

  

 Ex. 1 to App.
- 12 

					
	 (4)
	  	 ̈	  	 outside the United States in an offshore transaction within the meaning of Regulation S under the Securities Act in compliance with Rule 904 under the
Securities Act of 1933; or

			
	 (5)
	  	 ̈	  	 pursuant to the exemption from registration provided by Rule 144 under the Securities Act of 1933.

Unless one of the boxes is checked, the Trustee will refuse to register any of the Notes evidenced by this certificate in the name of any
person other than the registered holder thereof; provided, however, that if box (4) or (5) is checked, the Trustee shall be entitled to require, prior to registering any such transfer of the Notes, such legal opinions, certifications and
other information as the Company has reasonably requested to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933, such as the
exemption provided by Rule 144 under such Act. 
  

	
	  

	 Signature

  

 Ex. 1 to App.
- 13 

 TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED. 

The undersigned represents and warrants that it is purchasing this Note for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of 1933, and is aware that the sale to it is being made in reliance on Rule
144A and acknowledges that it has received such information regarding the Issuers and any Guarantors as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that the transferor is
relying upon the undersigned’s foregoing representations in order to claim the exemption from registration provided by Rule 144A. 
  

									
	 Dated:                        

	 		  	
                             
                                       

	  	
		 		  	 Notice: To be executed by an executive officer
	  	

  

 Ex. 1 to App.
- 14 

 OPTION OF HOLDER TO ELECT PURCHASE 

If you want to elect to have this Note purchased by the Company pursuant to Section 4.10 or 4.15 of the Indenture,
check the box below: 
  

							
		 	  ̈  Section 4.10
	    	
             ̈  Section 4.15
	  	

 If you want to elect to have only part of this Note purchased by the Company
pursuant to Section 4.10 or Section 4.15 of the Indenture, state the amount (in minimum denomination of $2,000 or integral multiples of $1,000 in excess thereof) you elect to have purchased:
$                 
  

							
	 Date:
	 	
                             
                               
	  	Your Signature:	  	  

		 		  	                           
        (Sign exactly as your name appears on the other side of this Note)        

 

					
		 	Soc. Sec. or Tax Identification No.:	 	
                        

  

			
	 Signature Guarantee:
	 	  

		 	(signature must be guaranteed)

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Registrar,
which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in
substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 
  

 Ex. 1 to App.
- 15 

 [TO BE ATTACHED TO GLOBAL NOTE] 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE 

The following increases or decreases in this Global Note have been made: 

 

									
	 Date
	  	 Amount of
decrease in
Principal
Amount of
this
Global Note
	  	 Amount of
increase in
Principal
Amount of
this
Global Note
	  	 Principal
Amount of this
Global Note
following
such
decrease or
increase
	  	 Signature of
authorized
officer

of Trustee or

Notes Custodian

		  		  		  		  	

  

 Ex. 1 to App.
- 16 

 EXHIBIT A TO RULE 144A/REGULATION S APPENDIX 

[FORM OF FACE OF EXCHANGE NOTE 

OR PRIVATE EXCHANGE NOTE]     */**/ 

*/ If the Note is to be issued in global form add the Global Notes Legend from Exhibit 1 to Rule 144A/Regulation S Appendix and the
attachment from such Exhibit 1 captioned “[TO BE ATTACHED TO GLOBAL NOTES] - SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE”. 

**/ If the Note is a Private Exchange Note issued in a Private Exchange to an Initial Purchaser holding an unsold portion of its initial
allotment, add the Restricted Notes Legend from Exhibit 1 to Rule 144A/Regulation S Appendix and replace the Assignment Form included in this Exhibit A with the Assignment Form included in such Exhibit 1. 

All references to “Additional Interest” in the Note shall be deleted unless if at the date of issuance of the Exchange Note or
Private Exchange Note (as the case may be) any Registration Default (as defined in the Registration Rights Agreement) has occurred with respect to the related Initial Notes during the interest period in which such date of issuance occurs.

  

 Ex. A to
App. - 1 

 [FORM OF FACE OF EXCHANGE NOTE OR 

PRIVATE EXCHANGE NOTE] 

INERGY, L.P. 

INERGY FINANCE CORP. 
  

			
	 No.
	  	 $

		
		  	CUSIP No.
ISIN No.

7.0% Senior Note due 2018 

Inergy, L.P., a Delaware limited partnership, and Inergy Finance Corp., a Delaware corporation, jointly and severally
promise to pay to                     , or registered assigns, the principal sum of
                     Dollars on October 1, 2018 [or such greater or lesser amount as may be indicated on Schedule A
hereto].2 

Interest Payment Dates: April 1 and October 1. 

Record Dates: March 15 and September 15. 

Additional provisions of this Note are set forth on the other side of this Note. 

 

			
	 INERGY, L.P.

		
	 BY:
	 	 INERGY GP, LLC, ITS GENERAL MANAGING   PARTNER

			
		
	 By:
	 	
 

			
	 Name:
	 	
	 Title:
	 	
	
	 INERGY FINANCE
CORP.

			
		
	 By:
	 	
 

			
	 Name:
	 	
 

			
	 Title:
	 	  

 
  

2
 If this Note is a Global Note, add this provision. 
  

 Ex. A to
App. - 2 

 TRUSTEE’S CERTIFICATE OF 

AUTHENTICATION 

U.S. BANK NATIONAL ASSOCIATION, 

  as Trustee, certifies that 

  this is one of the Notes 

  referred to in the Indenture. 

 

			
	 By
	 	  

			
		 	 Authorized Signatory

		
	 Dated:
	 	

  

 Ex. A to
App. - 3 

 [FORM OF REVERSE SIDE OF EXCHANGE NOTE OR 

PRIVATE EXCHANGE NOTE] 

7.0% Senior Note due 2018 

Capitalized terms used herein but not defined shall have the meanings assigned to them in the Indenture referred to below
unless otherwise indicated. 

1.        Interest.    Inergy, L.P., a Delaware
limited partnership (the “Company”), and Inergy Finance Corp., a Delaware corporation (the “Finance Corp.” and, together with the Company, the “Issuers”), jointly and severally promise to pay interest on the principal
amount of this Note at 7.0% per annum from September 27, 2010 until maturity and shall pay the Additional Interest payable pursuant to Section 2(d) of the Registration Rights Agreement referred to below. The Issuers will pay interest
and Additional Interest, if any, semi-annually in arrears on April 1 and October 1 of each year, commencing April 1, 2011, or if any such day is not a Business Day, on the next succeeding Business Day (each an “Interest Payment
Date”). Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of original issuance; provided that if there is no existing Default or Event of Default in the
payment of interest, and if this Note is authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date, except in the case of
the original issuance of Notes, in which case interest shall accrue from the date of authentication. The Issuers shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if
any, from time to time on demand at a rate that is the rate then in effect; it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest and Additional Interest (without
regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 

2.        Method of Payment.    The Issuers will pay
interest on the Notes (except defaulted interest) and Additional Interest to the Persons who are registered Holders of Notes at the close of business on the March 15 or September 15 next preceding the Interest Payment Date, even if such
Notes are cancelled after such record date and on or before such Interest Payment Date, except as provided in Section 2.11 of the Indenture with respect to defaulted interest. Holders must surrender Notes to the Paying Agent to collect payments
of principal and premium, if any, together with accrued and unpaid interest and Additional Interest, if any, due at maturity. The Notes will be payable as to principal, premium, if any, interest and Additional Interest, if any, at the office or
agency of the Issuers maintained for such purpose within the City and State of New York, or, at the option of the Issuers, payment of interest and Additional Interest may be made by check mailed to the Holders at their addresses set forth in the
register of Holders, and provided that payment by wire transfer of immediately available funds will be required with respect to any amounts due on all Global Notes and all other Notes the Holders of which shall have provided wire transfer
instructions to the Issuers or the Paying Agent. Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 

3.        Paying Agent and Registrar.    Initially,
U.S. Bank National Association, the Trustee under the Indenture, will act as Paying Agent and Registrar. The Company may change 

 

 Ex. A to
App. - 4 

 
any Paying Agent or Registrar without notice to any Holder. The Company or any of its Subsidiaries may act in any such capacity. 

4.        Indenture.    The Issuers issued the Notes
under an Indenture dated as of September 27, 2010 (“Indenture”) among the Issuers, the Guarantors and the Trustee. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb). The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for a statement of such terms. The Notes are unsecured senior
obligations of the Issuers limited to $600,000,000 aggregate principal amount in the case of Notes issued on the Initial Issuance Date (as defined in the Indenture). 

5.        Optional Redemption. 

(a)       Except as set forth in subparagraphs (b) and (c) of this Paragraph
5, the Issuers shall not have the option to redeem the Notes prior to October 1, 2014. On or after October 1, 2014, the Issuers shall have the option to redeem the Notes, in whole or in part at any time, upon prior notice as set forth in
Paragraph 8, at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest and Additional Interest, if any, to the applicable redemption date (subject to the right of Holders of record
on the relevant record date to receive interest due on an Interest Payment Date that is on or prior to the redemption date), if redeemed during the twelve-month period beginning on October 1 of the years indicated below: 

 

			
	 YEAR
	  	PERCENTAGE
	 2014
	  	103.500%
	 2015
	  	101.750%
	 2016
	  	100.000%

(b)       Notwithstanding the provisions of subparagraph (a) of this Paragraph 5,
at any time prior to October 1, 2013, the Company may on any one or more occasions redeem up to 35% of the aggregate principal amount of Notes (including any Additional Notes) issued under the Indenture at a redemption price of 107.000% of
the principal amount thereof, plus accrued and unpaid interest and Additional Interest, if any, thereon to the redemption date (subject to the right of Holders of record on the relevant record date to receive interest due on an Interest Payment Date
that is on or prior to the redemption date), with the net cash proceeds of one or more Equity Offerings by the Company; provided that (i) at least 65% of the aggregate principal amount of Notes (including any Additional Notes) issued under the
Indenture remains outstanding immediately after the occurrence of each such redemption (excluding any Notes held by the Company and its Subsidiaries) and (ii) each such redemption occurs within 150 days of the date of the closing of each
such Equity Offering. 
 (c)       In the event that Holders of not less than
90% of the aggregate principal amount of the outstanding Notes accept a Change of Control Offer and the Company purchases all of the Notes held by such Holders, the Company will have the right upon not less than 30 nor more than 60 days’ prior
notice, given not more than 30 days following the purchase pursuant to the Change of Control Offer described below to redeem all of the Notes that remain outstanding following such purchase at a redemption price equal to the Change of Control
Payment plus, to 
  

 Ex. A to
App. - 5 

 
the extent not included in the Change of Control Payment, accrued and unpaid interest on the Notes that remain outstanding, to the date of redemption (subject to the right of Holders of record on
the relevant record date to receive interest due on an Interest Payment Date that is on or prior to the redemption date). 

6.        Mandatory Redemption. 

Except as set forth in this Paragraph 6 and in Paragraph 7 below, neither of the Issuers shall be required to
make mandatory redemption or sinking fund payments with respect to the Notes or to repurchase the Notes at the option of the Holders. 

Following the Special Mandatory Redemption Trigger Event, the Initial Notes are subject to mandatory redemption as a
whole, upon the giving of prior notice to Holders and on the redemption date and for the redemption price set forth in Section 3.08 of the Indenture. 

7.        Repurchase at Option of Holder. 

(a)       Within 30 days following the occurrence of a Change of Control, the Company
shall make an offer (a “Change of Control Offer”) to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of each Holder’s Notes at a purchase price equal to 101% of the aggregate principal
amount of Notes repurchased, plus accrued and unpaid interest and Additional Interest, if any, to the date of settlement (the “Change of Control Settlement Date”), subject to the right of Holders of record on the relevant record date to
receive interest due on an Interest Payment Date that is on or prior to the Change of Control Settlement Date. Within 30 days following a Change of Control, the Company shall mail a notice of the Change of Control Offer to each Holder and the
Trustee describing the transaction that constitutes the Change of Control and setting forth the procedures governing the Change of Control Offer as required by Section 4.15 of the Indenture. 

(b)       On the 361st day after an Asset Sale, if the aggregate amount of Excess
Proceeds then exceeds $20.0 million, the Company shall commence an offer to all Holders of Notes (an “Asset Sale Offer”) pursuant to Section 3.09 of the Indenture, and to all holders of any Pari Passu Indebtedness then outstanding, to
purchase the maximum principal amount of Notes and such Pari Passu Indebtedness that may be purchased out of the Excess Proceeds, at an offer price in cash in an amount equal to 100% of the principal amount of the Notes plus accrued and unpaid
interest and Additional Interest, if any, thereon to the date of settlement, subject to the right of Holders of record on the relevant record date to receive interest due on an Interest Payment Date that is on or prior to the Change of Control
Settlement Date, in accordance with the procedures set forth in the Indenture. If any Excess Proceeds remain after consummation of an Asset Sale Offer, the Company may use such remaining Excess Proceeds for any purpose not otherwise prohibited by
the Indenture. If the aggregate principal amount of Notes surrendered by Holders thereof and Pari Passu Indebtedness surrendered by holders or lenders, collectively, exceeds the amount of Excess Proceeds, the Trustee shall select the Notes and Pari
Passu Indebtedness to be purchased on a pro rata basis (with such adjustments as may be deemed appropriate by the Trustee so that only Notes in denominations of $2,000, or integral multiples of $1,000 in excess thereof, shall be purchased) on the
basis of the aggregate principal amount of tendered Notes and Pari Passu Indebtedness. Holders of Notes that are the subject of an offer to purchase will receive an Asset Sale Offer from the Company prior to any related purchase date and may elect

  

 Ex. A to
App. - 6 

 
to have such Notes purchased by completing the form entitled “Option of Holder to Elect Purchase” on the reverse of the Notes. 

8.        Notice of Redemption.    Notice of
redemption will be mailed at least 30 days but not more than 60 days (except as otherwise provided in the Indenture if the notice is issued in connection with a Special Mandatory Redemption Trigger Event, Legal Defeasance, Covenant Defeasance or
Discharge) before the redemption date to each Holder whose Notes are to be redeemed at its registered address. If mailed in the manner provided for in Section 3.03 of the Indenture, the notice of redemption shall be conclusively presumed to
have been given whether or not a Holder receives such notice. Failure to give timely notice or any defect in the notice shall not affect the validity of the redemption. Notes in denominations larger than $2,000 may be redeemed in part but only in
whole multiples of $1,000 in excess thereof, unless all of the Notes held by a Holder are to be redeemed. On and after the redemption date interest and Additional Interest, if any, cease to accrue on Notes or portions thereof called for redemption.

 9.        Denominations, Transfer,
Exchange.    The Notes are in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. The transfer of Notes may be registered and Notes may be exchanged as provided in
the Indenture. The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents, and the Company may require a Holder to pay any taxes due on transfer or exchange. The Issuers need
not exchange or register the transfer of any Note or portion of a Note selected for redemption, except for the unredeemed portion of any Note being redeemed in part. Also, they need not exchange or register the transfer of any Notes for a period of
15 days before a selection of Notes to be redeemed. 

10.        Persons Deemed Owners.    The registered
Holder of a Note may be treated as its owner for all purposes. 

11.        Amendment, Supplement and
Waiver.    Subject to certain exceptions, the Indenture or the Notes may be amended or supplemented with the consent of the Holders of at least a majority in principal amount of the then outstanding Notes, and any existing
default or compliance with any provision of the Indenture or the Notes may be waived with the consent of the Holders of a majority in principal amount of the then outstanding Notes. Without the consent of any Holder of a Note, the Indenture or the
Notes may be amended or supplemented (1) to cure any ambiguity, defect or inconsistency, (2) to provide for uncertificated Notes in addition to or in place of certificated Notes, (3) to provide for the assumption of an Issuer’s
obligations to Holders of the Notes pursuant to Article 5 of the Indenture, (4) to make any change that would provide any additional rights or benefits to the Holders of the Notes or that does not adversely affect the legal rights under
the Indenture of any such Holder, provided that any change to conform the Indenture to the Offering Memorandum shall not be deemed to adversely affect the legal rights under the Indenture of any Holder, (5) to secure the Notes or the Subsidiary
Guarantees pursuant to Section 4.12 of the Indenture or otherwise, (6) to provide for the issuance of Additional Notes in accordance with the limitations set forth in the Indenture, (7) to add any additional Guarantor with respect to
the Notes or to evidence the release of any Guarantor from its Subsidiary Guarantee, in each case as provided in the Indenture, (8) to comply with the requirements of the SEC in order to effect or maintain the qualification of the Indenture
under the Trust Indenture Act, (9) to provide for the reorganization of the Company as any other form of entity in 

 

 Ex. A to
App. - 7 

 
accordance with the second paragraph of Section 5.01 of the Indenture or (10) to evidence or provide for the acceptance of appointment under the Indenture of a successor Trustee.

 12.        Defaults and
Remedies.    Events of Default include: (i) default for 30 days in the payment when due of interest or Additional Interest, if any, on the Notes; (ii) default in payment when due of the principal of or premium, if
any, on the Notes when due at Stated Maturity, upon optional redemption, upon required repurchase, upon declaration or otherwise; (iii) failure by the Company to comply with Section 3.09, 4.10, 4.15 or 5.01 of the Indenture;
(iv) failure by the Company for 90 days after notice to comply with Section 4.03 of the Indenture; (v) failure by the Company for 60 days after notice to comply with any of its other agreements in the Indenture or the Notes;
(vi) default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Indebtedness for money borrowed by the Company or any of its Restricted Subsidiaries (or the payment of
which is guaranteed by the Company or any of its Restricted Subsidiaries), whether such Indebtedness or guarantee now exists or is created after the Initial Issuance Date, if such default (a) is caused by a failure to pay principal of, or
premium or interest, if any, on such Indebtedness prior to the expiration of any grace period provided in such Indebtedness (a “Payment Default”) or (b) results in the acceleration of such Indebtedness prior to its Stated Maturity
and, in each case, the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under which there has been a Payment Default or the maturity of which has been so accelerated, aggregates in excess
of $15.0 million provided that if any such default is cured or waived or any such acceleration rescinded, or such Indebtedness is repaid, within a period of 30 days from the continuation of such default beyond the applicable grace period or the
occurrence of such acceleration, as the case may be, such Event of Default and any consequential acceleration of the Notes shall be automatically rescinded, so long as such rescission does not conflict with any judgment or decree; (vii) failure
by the Company or any of its Subsidiaries to pay final judgments aggregating in excess of $15.0 million, which judgments are not paid, discharged or stayed for a period of 60 days; (viii) except as permitted by the Indenture, any Subsidiary
Guarantee is held in any judicial proceeding to be unenforceable or invalid or ceases for any reason to be in full force and effect or any Guarantor, or any Person acting on behalf of any Guarantor, denies or disaffirms its obligations under its
Subsidiary Guarantee; and (ix) certain events of bankruptcy, insolvency or reorganization with respect to the Company, Finance Corp., any of the Company’s Restricted Subsidiaries that is a Significant Subsidiary of the Company or any group
of Restricted Subsidiaries of the Company that, taken together, would constitute a Significant Subsidiary of the Company as specified in Section 6.01(i) or 6.01(j) of the Indenture. If any Event of Default occurs and is continuing, the Trustee,
by notice to the Issuers, or the Holders of at least 25% in principal amount of the then outstanding Notes, by notice to the Issuers and the Trustee, may declare all the Notes to be due and payable immediately. Notwithstanding the preceding, in the
case of an Event of Default arising from such events of bankruptcy, insolvency or reorganization described in Section 6.01(i) or 6.01(j) of the Indenture, all outstanding Notes will become due and payable without further action or notice.
Holders may not enforce the Indenture or the Notes except as provided in the Indenture. Subject to certain limitations, Holders of a majority in principal amount of the then outstanding Notes may direct the Trustee in its exercise of any trust or
power conferred on it. The Trustee may withhold from Holders of the Notes notice of any continuing Default or Event of Default (except a Default or Event of Default relating to the payment of principal, interest, premium or Additional Interest) if
it determines that withholding notice is in their interest. The Holders of a majority in principal amount of the Notes then outstanding by notice to the Trustee may on 

 

 Ex. A to
App. - 8 

 
behalf of the Holders of all of the Notes waive any existing Default or Event of Default and its consequences under the Indenture except a continuing Default or Event of Default in the payment of
the principal of or premium, interest or Additional Interest, if any, on the Notes. The Issuers are required to deliver to the Trustee annually a statement regarding compliance with the Indenture, and, so long as any Notes are outstanding, the
Issuers are required upon becoming aware of any Default or Event of Default, to deliver to the Trustee a statement specifying such Default or Event of Default. 

13.        Defeasance and Discharge.    The Notes are
subject to defeasance and discharge upon the terms and conditions specified in the Indenture. 

14.        No Recourse Against Others.    Neither
General Partner, nor any past, present or future director, officer, partner, employee, incorporator, manager or unitholder or other owner of Capital Stock of the Issuers, the General Partners or any Guarantor, as such, shall have any liability for
any obligations of the Issuers or any Guarantor under the Notes, the Subsidiary Guarantees or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder by accepting a Note waives and
releases all such liability. The waiver and release are part of the consideration for the issuance of the Notes. 

15.        Authentication.    This Note shall not be
valid until authenticated by the manual signature of an authorized signatory of the Trustee or an authenticating agent. 

16.        Abbreviations.    Customary abbreviations
may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act). 
 17.        [Additional Rights of
Holders of Transfer Restricted Securities.    In addition to the rights provided to Holders of Notes under the Indenture, Holders of Transfer Restricted Securities shall have all the rights set forth in the Registration
Rights Agreement dated as of                                 , among the Issuers,
the Guarantors and the Initial Purchasers (the “Registration Rights
Agreement”).]3 

18.        [Escrow.    The Initial Purchasers have
deposited the net proceeds of the offering of the Initial Notes with the Escrow Agent on the Initial Issuance Date. The Escrow Agent will hold such funds pursuant to the Escrow Agreement, and, subject to and in accordance with the conditions and
requirements set forth in the Escrow Agreement, it will either disburse such funds to or for the account of the Company or disburse them to the Trustee or the Paying Agent for application to the mandatory redemption of the Initial Notes following
the Special Mandatory Redemption Trigger Event.]4

 19.        CUSIP Numbers.    Pursuant to a
recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Issuers have caused CUSIP numbers to be 
  

 

3
 Delete if this Note is not being issued in exchange for an Initial Note. 

4
 Delete for Additional Securities or if this Note is issued after the closing of the Tres Palacios Acquisition. 
  

 Ex. A to
App. - 9 

 printed on the Notes and the Trustee may use CUSIP numbers and corresponding ISIN numbers in
notices of redemption as a convenience to Holders. No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification
numbers placed thereon. 
 20.        Governing
Law.    THE INDENTURE AND THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

21.        Successors.    In the event a successor
assumes all the obligations of an Issuer under the Notes and the Indenture, pursuant to the terms thereof, such Issuer will be released from all such obligations. 

The Company will furnish to any Holder upon written request and without charge a copy of the Indenture, the Escrow
Agreement [and/or the Registration Rights Agreement]5.
Requests may be made to: 
  Inergy, L.P. 

 Two Brush Creek Boulevard, Suite 200 

 Kansas City, Missouri 64112 

 Attention: Chief Financial Officer 

 

5
 Delete if this Note is not being issued in exchange for an Initial Note. 
  

 Ex. A to
App. - 10 

 ASSIGNMENT FORM 

To assign this Note, fill in the form below: 

I or we assign and transfer this Note to 

 

	
	  

	Print or type assignee’s name, address and zip code)
	
	  

	  
 (Insert assignee’s soc. sec. or tax I.D. No.)

 and irrevocably appoint
                                     agent to transfer this
Note on the books of the Issuers. The agent may substitute another to act for him. 
  
  

									
	 Date:
	 	
                             
                               
	 		  	Your Signature:	  	  

	 .
	 		 		  	Sign exactly as your name appears on the other side of this Note.

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Registrar,
which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in
substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 
  

 Ex. A to
App. - 11 

 OPTION OF HOLDER TO ELECT PURCHASE 

If you want to elect to have this Note purchased by the Company pursuant to Section 4.10 or 4.15 of the Indenture,
check the box below: 
  

									
	  ̈
	 	 Section 4.10
	  	  ̈
	 	 Section 4.15
	  	

 If you want to elect to have only part of this Note purchased by the Company
pursuant to Section 4.10 or Section 4.15 of the Indenture, state the amount (in minimum denomination of $2,000 or integral multiples of $1,000 in excess thereof) you elected to have purchased:
$                         
  

											
	 Date:
	 	
                             
                               
	  		  	 Your
	  	  
	  	
		 		  		  	 Signature:
	  		  	
		 		  		  	(Sign exactly as your name appears on the other side of this Note)
						
		 		  		  		  	 Soc. Sec. or Tax Identification No.:
	  	 

  

					
	 Signature Guarantee:
	 	  
	 	
		 	   (Signature must be guaranteed)
	 	

 Signatures must be guaranteed by an “eligible guarantor institution”
meeting the requirements of the Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the
Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 
  

 Ex. A to
App. - 12 

 ANNEX A 

 
  

INERGY, L.P. 

INERGY FINANCE CORP. 

and 
 the
Guarantors named herein 
  
  

7.0% Senior Notes due 2018 
  

 
  

 
 FORM OF
SUPPLEMENTAL INDENTURE 
 AND AMENDMENT — SUBSIDIARY GUARANTEE 

DATED AS OF                 
    ,          
  

 
 U.S. BANK
NATIONAL ASSOCIATION, 
 Trustee 
  

 
  

 
  

A-1 

 This SUPPLEMENTAL INDENTURE, dated as of
                 ,          is among Inergy, L.P., a Delaware limited partnership (the “Company”),
Inergy Finance Corp., a Delaware corporation ( “Finance Corp.” and, together with the Company, the “Issuers”), each of the parties identified under the caption “Guarantors” on the signature page hereto (the
“Guarantors”) and U.S. Bank National Association, a national banking association, as Trustee. 
 RECITALS 

WHEREAS, the Issuers, the initial Guarantors and the Trustee entered into an Indenture, dated as of September 27,
2010 (the “Indenture”), pursuant to which the Company has issued $             in principal amount of 7.0% Senior Notes due 2018 (the “Notes”); 

WHEREAS, Section 9.01(g) of the Indenture provides that the Issuers, the Guarantors and the Trustee may amend or
supplement the Indenture in order to comply with Section 4.13 or 10.03 thereof, without the consent of the Holders of the Notes; and 

WHEREAS, all acts and things prescribed by the Indenture, by law and by the Certificate of Incorporation and the Bylaws
(or comparable constituent documents) of the Issuers, of the Guarantors and of the Trustee necessary to make this Supplemental Indenture a valid instrument legally binding on the Issuers, the Guarantors and the Trustee, in accordance with its terms,
have been duly done and performed; 
 NOW, THEREFORE, to comply with the provisions of the Indenture and in
consideration of the above premises, the Issuers, the Guarantors and the Trustee covenant and agree for the equal and proportionate benefit of the respective Holders of the Notes as follows: 

ARTICLE 1 

Section 1.01.    This Supplemental Indenture is supplemental to the Indenture and does and shall
be deemed to form a part of, and shall be construed in connection with and as part of, the Indenture for any and all purposes. 

Section 1.02.    This Supplemental Indenture shall become effective immediately upon its
execution and delivery by each of the Issuers, the Guarantors and the Trustee. 
 ARTICLE 2 

From this date, in accordance with Section 4.13 or 10.03 and by executing this Supplemental Indenture, the
Guarantors whose signatures appear below are subject to the provisions of the Indenture to the extent provided for in Article 10 thereunder. 

ARTICLE 3 

Section 3.01.    Except as specifically modified herein, the Indenture and the Notes are in all
respects ratified and confirmed (mutatis mutandis) and shall remain in full force and effect in accordance with their terms with all capitalized terms used herein without definition having the same respective meanings ascribed to them as in
the Indenture. 
  

A-2 

 Section 3.02.    Except as otherwise expressly
provided herein, no duties, responsibilities or liabilities are assumed, or shall be construed to be assumed, by the Trustee by reason of this Supplemental Indenture. This Supplemental Indenture is executed and accepted by the Trustee subject to all
the terms and conditions set forth in the Indenture with the same force and effect as if those terms and conditions were repeated at length herein and made applicable to the Trustee with respect hereto. 

Section 3.03.    THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK. 
 Section 3.04.    The parties may sign any
number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of such executed copies together shall represent the same agreement. 

[NEXT PAGE IS SIGNATURE PAGE] 
  

A-3 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Indenture to be duly executed, all as of the date first written above. 
  

					
	INERGY, L.P.

					
		
	 BY:
	 	 INERGY GP, LLC, ITS MANAGING GENERAL

   PARTNER

					
		
	 By
	 	
 

					
		 	 Name:
	 	
 

					
		 	 Title:
	 	  

	
	 INERGY FINANCE
CORP.

					
		
	 By:
	 	
 

					
	 Name:
	 	
 

					
	 Title:
	 	  

	
	 GUARANTORS

	
[                             
                           ]

		 		 	

					
	 By
	 	
 

					
		 	 Name:
	 	
 

					
		 	 Title:
	 	  

	
	 U.S. BANK NATIONAL ASSOCIATION,

as Trustee

					
		
	 By
	 	
 

					
		 	 Name:
	 	
 

					
		 	 Title:
	 	  

 

A-4 

 ANNEX B 

FORM OF REGISTRATION RIGHTS AGREEMENT 

See attached. 
  

B-1 

 ANNEX C 

CERTAIN AGREEMENTS 

Registration Rights Agreement, dated as of August 9, 2005, between Inergy, L.P. and Inergy Holdings, L.P. 

First Amended and Restated Agreement and Plan of Merger, dated as of September 3, 2010, by and among Inergy, L.P., Inergy GP, LLC,
Inergy Holdings, L.P., Inergy Holdings GP, LLC, NRGP Limited Partner, LLC and NRGP MS, LLC. 
  

 C-1

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