Document:

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REVISED THIRD AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT
CRIMSON MIDSTREAM HOLDINGS, LLC

Dated: June 30, 2021

TABLE OF CONTENTS
Page
						
	ARTICLE I. FORMATION AND CONTINUATION OF THE COMPANY
	1

	Section 1.1    Formation and Continuation
	1

	Section 1.2    Name
	1

	Section 1.3    Business
	2

	Section 1.4    Places of Business; Registered Agent
	2

	Section 1.5    Term
	2

	Section 1.6    Filings
	2

	Section 1.7    Title to Company Property
	2

	Section 1.8    No Payments of Individual Obligations
	3

	ARTICLE II. DEFINITIONS AND REFERENCES
	3

	Section 2.1    Defined Terms
	3

	Section 2.2    References and Titles
	19

	ARTICLE III. CAPITALIZATION
	20

	Section 3.1    Classes and Series of Company Interests
	20

	Section 3.2    Issuances of Additional Securities
	22

	Section 3.3    Capital Contributions
	23

	Section 3.4    Return of Contributions
	24

	ARTICLE IV. ALLOCATIONS AND DISTRIBUTIONS
	24

	Section 4.1    Allocations of Net Profits and Net Losses
	24

	Section 4.2    Special Allocations
	24

	Section 4.3    Distributions
	27

	Section 4.4    Income Tax Allocations
	29

	ARTICLE V. MANAGEMENT AND RELATED MATTERS
	30

	Section 5.1    Power and Authority of Board
	30

	Section 5.2    Duties of Managers
	37

	Section 5.3    Officers
	37

	Section 5.4    Acknowledged and Permitted Activities
	39

	Section 5.5    Tax Elections and Status
	40

	Section 5.6    Tax Returns
	41

	Section 5.7    Tax Matters Member
	41

	Section 5.8    Budget Act
	41

	Section 5.9    Budgets
	44

	ARTICLE VI. INDEMNIFICATION
	44

	Section 6.1    General
	44

	Section 6.2    Indemnification of Officers, Employees (if any) and Agent
	45

	Section 6.3    Non-exclusivity of Rights; Insurance
	46

	Section 6.4    Savings Clause
	46

	Section 6.5    Scope of Indemnity
	46

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	Section 6.6    Other Indemnities
	46

	Section 6.7    Replacement of Fiduciary Duties
	46

	Section 6.8    Liability of Indemnitees.
	47

	Section 6.9    Standards of Conduct and Modification of Duties.
	48

	ARTICLE VII. RIGHTS OF MEMBERS
	48

	Section 7.1    General
	48

	Section 7.2    Limitations on Members
	49

	Section 7.3    Liability of Members
	49

	Section 7.4    Withdrawal and Return of Capital Contributions
	49

	Section 7.5    Voting Rights
	49

	ARTICLE VIII. BOOKS, REPORTS, MEETINGS AND CONFIDENTIALITY
	50

	Section 8.1    Capital Accounts, Books and Records
	50

	Section 8.2    Bank Accounts
	51

	Section 8.3    Reports
	51

	Section 8.4    Meetings of Members
	54

	Section 8.5    Confidentiality
	54

	ARTICLE IX. DISSOLUTION, LIQUIDATION AND TERMINATION
	56

	Section 9.1    Dissolution
	56

	Section 9.2    Liquidation and Termination
	56

	ARTICLE X. TRANSFERS OF COMPANY INTERESTS
	58

	Section 10.1    Transfer of Company Interests
	58

	ARTICLE XI. REPRESENTATIONS AND WARRANTIES
	60

	ARTICLE XII. MISCELLANEOUS
	62

	Section 12.1    Notices
	62

	Section 12.2    Amendment
	62

	Section 12.3    Changes Upon CPUC Approval.
	64

	Section 12.4    Partition
	64

	Section 12.5    Entire Agreement
	64

	Section 12.6    Severability
	64

	Section 12.7    No Waiver
	64

	Section 12.8    Applicable Law
	65

	Section 12.9    Successors and Assigns
	65

	Section 12.10    Arbitration
	65

	Section 12.11    Legal Representation
	67

	Section 12.12    Counterparts
	68

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INDEX TO EXHIBITS
Exhibit A    Members, Capital Contributions, Sharing Ratios 
Exhibit B    Grier Companies
Exhibit C    Form of Fourth Amended and Restated Limited Liability Company Agreement of Crimson Holdings, LLC
Exhibit D    Form of CorEnergy Infrastructure Trust, Inc. Articles Supplementary Establishing and Fixing the Rights and Preferences of Series B Redeemable Convertible Preferred Stock
Exhibit E    Form of CorEnergy Infrastructure Trust, Inc. Articles Supplementary Establishing and Fixing the Rights and Preferences of 9.00% Series C Exchangeable Preferred Stock
Exhibit F    Form of CorEnergy Infrastructure Trust, Inc. Articles Supplementary Establishing and Fixing the Rights and Preferences of the Class B Common Stock
Exhibit G    Resolutions to be Approved by Managers

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REVISED THIRD AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT 
CRIMSON MIDSTREAM HOLDINGS, LLC
THIS REVISED THIRD AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT (this “Agreement”), is entered into as of the 16th of July, 2021, to be effective as of June 30, 2021 (the “Effective Date”), is made by and among:
•Crimson Midstream Holdings, LLC, a Delaware limited liability company (the “Company”);
•CorEnergy Infrastructure Trust, Inc., a Maryland corporation (“CORR”);  
•John D. Grier and M. Bridget Grier, individually, as Members of the Company;
•John D. Grier, as Trustee of the Bridget Grier Spousal Support Trust dated December 18, 2012;  Robert G. Lewis, as Trustee of the Hugh David Grier Trust dated October 15, 2012; and Robert G. Lewis, as Trustee of the Samuel Joseph Grier Trust dated October 15, 2012 (collectively, the “Grier Trusts” and, together with John D. Grier and M. Bridget Grier, the “Grier Members”), as Members of the Company; and
•any other Person executing this Agreement as a Member.
Article I.FORMATION AND CONTINUATION OF THE COMPANY
Section 1.1.Formation and Continuation.  The parties hereto desire to establish this Agreement to govern and continue the Company as a limited liability company under the provisions of the Delaware Limited Liability Company Act, as amended from time to time, and any successor statute or statutes (the “Act”).  The Company was formed upon the execution and filing by the organizer (such Person being hereby authorized to take such action) with the Secretary of State of the State of Delaware of the Certificate of Formation of the Company effective on December 3, 2015, and shall be continued pursuant to the terms of this Agreement.  This Agreement shall amend and restate in all respects that certain Second Amended and Restated Limited Liability Company Agreement of the Company, dated effective as of January 11, 2019 (the “Prior Agreement”), and such Prior Agreement shall be of no force or effect after the Effective Date.
Section 1.2.Name. The name of the Company shall be Crimson Midstream Holdings, LLC.  Subject to all applicable laws, the business of the Company shall be conducted in the name of the Company unless under the law of some jurisdiction in which the Company does business such business must be conducted under another name or unless the Board determines that it is advisable to conduct Company business under another name.  In such a case, the business of the Company in such jurisdiction or in connection with such determination may be conducted under such other name or names as the Board shall determine to be necessary.  The Board shall cause 
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to be filed on behalf of the Company such assumed or fictitious name certificate or certificates or similar instruments as may from time to time be required by law.
Section 1.3.Business. The business of the Company shall be, whether directly or indirectly through Subsidiaries, to conduct all activities permissible by applicable law.
Section 1.4.Places of Business; Registered Agent.
(a)The address of the principal office and place of business of the Company is 1801 California Street, Suite 3600, Denver, CO 80202.  The Board, at any time and from time to time, may change the location of the Company’s principal place of business upon giving prior written notice of such change to the Members and may establish such additional place or places of business of the Company as the Board shall determine to be necessary or desirable.
(b)The registered office of the Company in the State of Delaware shall be and it hereby is, established and maintained at 1209 Orange Street, Wilmington, DE 19801, and the registered agent for service of process on the Company shall be The Corporation Trust Company.  The Board, at any time and from time to time, may change the Company’s registered office or registered agent or both by complying with the applicable provisions of the Act, and may establish, appoint and change additional registered offices and registered agents of the Company in such other states as the Board shall determine to be necessary or advisable.
Section 1.5.Term. The existence of the Company commenced on the date the Certificate of Formation of the Company was filed with the Secretary of State of the State of Delaware and shall continue in existence until it is liquidated or dissolved in accordance with this Agreement and the Act.
Section 1.6.Filings.  Upon the request of the Board, the Members shall promptly execute and deliver all such certificates and other instruments conforming hereto as shall be necessary for the Board to accomplish all filings, recordings, publishings and other acts appropriate to comply with all requirements for the formation and operation of a limited liability company under the laws of the State of Delaware and for the qualification and operation of a limited liability company in all other jurisdictions where the Company shall propose to conduct business.  Prior to conducting business in any jurisdiction, the Board shall use its reasonable efforts to cause the Company to comply with all requirements for the qualification of the Company to conduct business as a limited liability company in such jurisdiction.
Section 1.7.Title to Company Property.  All property owned by the Company, whether real or personal, tangible or intangible, shall be deemed to be owned by the Company as an entity, and no Member, individually, shall have any ownership of such property.  The Company may hold its property in its own name or in the name of a nominee which may be the Board or any trustee, agent or Affiliate of the Company designated by the Board.
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Section 1.8.No Payments of Individual Obligations.  The Members shall use the Company’s credit and assets solely for the benefit of the Company.  No asset of the Company shall be Transferred for or in payment of any individual obligation of any Member.
Article II.DEFINITIONS AND REFERENCES
Section 2.1.Defined Terms.  When used in this Agreement, the following terms shall have the respective meanings set forth below:
“Act” shall have the meaning assigned to such term in Section 1.1.
“Additional Call Amount” shall have the meaning assigned to such term in Section 3.3(b)(i).
“Additional Call Unit FMV” shall have the meaning assigned to such term in Section 3.3(b)(i).
“Additional Call Units” shall have the meaning assigned to such term in Section 3.3(b)(i).
“Additional Equity Securities” shall have the meaning assigned to such term in Section 3.2(a).
“Adjusted Capital Account” shall mean the Capital Account maintained for each Member as provided in Section 8.1(b) as of the end of each fiscal year, (a) increased by an amount equal to such Member’s allocable share of Minimum Gain as computed as of the last day of such fiscal year in accordance with the applicable Treasury Regulations, and (b) reduced by the adjustments provided for in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4)-(6).
“Adjusted Property” shall mean any property the Carrying Value of which has been adjusted pursuant to Section 8.1(b)(v) or any property that has a Carrying Value different than the adjusted tax basis at the time of a Capital Contribution by a Capital Member.
“Adjusted Tax Member” shall have the meaning assigned to such term in Section 5.8(c).
•“Adjustment Factor for the Class A-1 Units” shall mean 1.0 for the Class A-1 Units; provided, however, that in the event that CORR (a) declares or pays a dividend on its outstanding CORR Series A Preferred Stock, wholly or partly in such CORR Series A Preferred Stock, or makes a distribution to all holders of its outstanding CORR Series A Preferred Stock wholly or partly in CORR Series A Preferred Stock, (b) splits or subdivides its outstanding CORR Series A Preferred Stock, or (c) effects a reverse stock split or otherwise combines its outstanding CORR Series A Preferred Stock into a smaller number of CORR Series A Preferred Stock, respectively, the Adjustment Factor for the Class A-1 Units shall be adjusted by multiplying the Adjustment Factor for the Class A-1 Units previously in effect by a fraction, the numerator of which shall be the number of depositary shares representing CORR Series A Preferred Stock, issued and outstanding on the record date for such dividend, distribution, split, subdivision, reverse split or combination (assuming for such purposes that such dividend, distribution, split, subdivision, reverse split or combination has occurred as of such time), and the 
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denominator of which shall be the actual number of depositary shares representing CORR Series A Preferred Stock (determined without the above assumption) issued and outstanding on such date and, provided further, that if CORR shall merge, consolidate or combine with any entity other than an Affiliate of CORR (the “Surviving Company”), the Adjustment Factor for the Class A-1 Units shall be adjusted by multiplying the Adjustment Factor for the Class A-1 Units by the number of shares of the Surviving Company into which one depositary share representing the CORR Series A Preferred Stock is converted pursuant to such merger, consolidation or combination, determined as of the date of such merger, consolidation or combination.  Any adjustment to the Adjustment Factor for the Class A-1 Units shall become effective immediately after the effective date of such event retroactive to the record date, if any, for such event.
•“Adjustment Factor for the Class A-2 Units” shall mean 1.0 for the Class A-2 Units; provided, however, that in the event that CORR (a) declares or pays a dividend on its outstanding CORR Series B Preferred Stock wholly or partly in such CORR Series B Preferred Stock or makes a distribution to all holders of its outstanding CORR Series B Preferred Stock wholly or partly in CORR Series B Preferred Stock, (b) splits or subdivides its outstanding CORR Series B Preferred Stock, or (c) effects a reverse stock split or otherwise combines its outstanding CORR Series B Preferred Stock into a smaller number of CORR Series B Preferred Stock, the Adjustment Factor for the Class A-2 Units shall be adjusted by multiplying the Adjustment Factor for the Class A-2 Units previously in effect by a fraction, the numerator of which shall be the number of CORR Series B Preferred Stock issued and outstanding on the record date for such dividend, distribution, split, subdivision, reverse split or combination (assuming for such purposes that such dividend, distribution, split, subdivision, reverse split or combination has occurred as of such time), and the denominator of which shall be the actual number of CORR Series B Preferred Stock (determined without the above assumption) issued and outstanding on such date and, provided further, that if CORR shall merge, consolidate or combine with any Surviving Company, the Adjustment Factor for the Class A-2 Units shall be adjusted by multiplying the Adjustment Factor for the Class A-2 Units by the number of shares of the Surviving Company into which one share of CORR Series B Preferred Stock is converted pursuant to such merger, consolidation or combination, determined as of the date of such merger, consolidation or combination.  Any adjustment to the Adjustment Factor for the Class A-2 Units shall become effective immediately after the effective date of such event retroactive to the record date, if any, for such event.
•“Adjustment Factor for the Class A-3 Units” shall mean 1.0 for the Class A-3 Units; provided, however, that in the event that CORR (a) declares or pays a dividend on its outstanding CORR Class B Common Stock wholly or partly in such CORR Class B Common Stock, or makes a distribution to all holders of its outstanding CORR Class B Common Stock wholly or partly in CORR Class B Common Stock, (b) splits or subdivides its outstanding CORR Class B Common Stock, or (c) effects a reverse stock split or otherwise combines its outstanding CORR Class B Common Stock into a smaller number of CORR Class B Common Stock, the Adjustment Factor for the Class A-3 Units shall be adjusted by multiplying the Adjustment Factor for the Class A-3 Units previously in effect by a fraction, the numerator of which shall be the number of CORR Class B Common Stock, issued and outstanding on the record date for such dividend, distribution, split, subdivision, reverse split or combination (assuming for such 
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purposes that such dividend, distribution, split, subdivision, reverse split or combination has occurred as of such time), and the denominator of which shall be the actual number of CORR Class B Common Stock (determined without the above assumption) issued and outstanding on such date and, provided further, that if CORR shall merge, consolidate or combine with any Surviving Company, the Adjustment Factor for the Class A-3 Units shall be adjusted by multiplying the Adjustment Factor for the Class A-3 Units by the number of shares of the Surviving Company into which one share of the CORR Class B Common Stock is converted pursuant to such merger, consolidation or combination, determined as of the date of such merger, consolidation or combination.  Any adjustment to the Adjustment Factor for the Class A-3 Units shall become effective immediately after the effective date of such event retroactive to the record date, if any, for such event.
 “Affiliate” (whether or not capitalized) shall mean, with respect to any Person: (a) any other Person directly or indirectly owning, controlling or holding power to vote 10% or more of the outstanding voting securities of such Person, (b) any other Person 10% or more of whose outstanding voting securities are directly or indirectly owned, controlled or held with power to vote by such Person, (c) any other Person directly or indirectly controlling, controlled by or under common control with such Person, and (d) any officer, director, member, partner or immediate family member of such Person or any other Person described in subsection (a), (b) or (c) of this paragraph. 
“Agreement” shall have the meaning assigned to such term in the introductory paragraph.
“Alternate CORR Manager” shall have the meaning assigned to such term in Section 5.1(a)(ii).
“Alternate Crimson Manager” shall have the meaning assigned to such term in Section 5.1(a)(i).
“Approved Budget” shall have the meaning assigned to such term in Section 5.9.
“Auditor’s Report” shall mean, with respect to financial statements or information of the Company required to be delivered, (a) the written report of the auditor for the Company with respect to such financial statements or information (excluding any auditor’s report on internal controls), manually executed by such auditor, and (b) a manually executed consent of such auditor to the inclusion of such auditor’s report (and any auditor consent with respect thereto) in filings to be made by CORR with the Securities and Exchange Commission.
“Board” shall have the meaning assigned to such term in Section 5.1(a).
“Budget Act” shall have the meaning assigned to such term in Section 5.8(a).
“Budgeted Expenses” shall mean the aggregate of the (a) general and administrative expenses (including reasonable overhead expenses), (b) personnel and employees costs, (c) planned asset maintenance expenses, and (d) other major categories, in each case that are included in the Approved Budget; provided, that “Budgeted Expenses” does not include Non-
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Discretionary Capital expenses (and for purposes of clarity, costs and expenses contained in any Approved Budget that do not constitute Non-Discretionary Capital expenses shall constitute Budgeted Expenses). 
“Business Day” shall mean any day on which banks are generally open to conduct business in the State of Colorado and the State of New York. 
“Capital Account” shall have the meaning assigned to such term in Section 8.1(b).
“Capital Contributions” shall mean for any Member at the particular time in question the aggregate of the dollar amounts of any cash, or the Fair Market Value of any property, contributed to the capital of the Company and its predecessors. The Capital Contributions made (or deemed to have been made) by each of the Members as of the Effective Date are set forth on Exhibit A.
“Capital Members” shall mean all of the Members holding Class C-1 Units.
“Capital Project” shall mean any project, transaction, agreement, arrangement or series of transactions, agreements or arrangements to which the Company or a Subsidiary of the Company is a party involving a capital expenditure, including any purchase, lease, acquisition, construction, development or completion of transportation, compression, gathering or related facilities for oil, gas or related products or the provision of services, equipment or other property for use in developing, completing or transporting oil, gas or related products or otherwise directly related and ancillary to the oil and gas business, including the transportation, storage and handling of water utilized or disposed of in oil and gas production.
“Carrying Value” shall mean with respect to any asset, the value of such asset as reflected in the Capital Accounts of the Members.  The Carrying Value of any asset shall be such asset’s adjusted basis for federal income tax purposes, except as follows:
(a)    The initial Carrying Value of any asset contributed by a Member to the Company will be the Fair Market Value of the asset on the date of the contribution (with the Fair Market Value of contributions made as of the Effective Date as shown on Exhibit A);
(b)    The Carrying Value of all Company assets shall be adjusted to equal their respective Fair Market Values upon (i) the acquisition of an additional Company Interest by any new or existing Member in exchange for a Capital Contribution that is not de minimis; (ii) the distribution by the Company to a Member of Company property that is not de minimis as consideration for a Company Interest; (iii) the grant of a Company Interest that is not de minimis consideration for the performance of services to or for the benefit of the Company by any new or existing Member; (iv) the liquidation of the Company as provided in Section 9.2; (v) the acquisition of a Company Interest by any new or existing Member upon the exercise of a non-compensatory warrant or the making of any Capital Contribution in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(s), as such Treasury Regulation may be amended or modified; 
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or (vi) any other event to the extent determined by the Board to be necessary to properly reflect Carrying Values in accordance with the standards set forth in Treasury Regulations Section 1.704-1(b)(2)(iv)(q), provided that any adjustments to the Capital Accounts of the Members shall be made as provided in Section 8.1(b)(v).  If any non-compensatory warrants (or similar interests) are outstanding upon the occurrence of an event described in clauses (i) through (vi) above, the Company shall adjust the Carrying Values of its properties in accordance with Treasury Regulations Sections 1.704-1(b)(2)(iv)(f)(1) and 1.704-1(b)(2)(iv)(h)(2), as such Treasury Regulations may be amended or modified;
(c)    The Carrying Value of any Company asset distributed to any Member shall be adjusted to equal the Fair Market Value of such asset on the date of distribution;
(d)    The Carrying Value of an asset shall be adjusted by Depreciation taken into account with respect to such asset for purposes of computing Net Profits, Net Losses and other items allocated pursuant to Section 8.1(b)(v); and
(e)    The Carrying Value of Company assets shall be adjusted at such other times as required in the applicable Treasury Regulations.
“Change of Control” shall mean the occurrence of any of the following: (i) the consummation of any transaction (including any merger or consolidation) the result of which is that one or more Third Parties (other than a Subsidiary of the Company) become the beneficial owner of more than 50% of the Company Interests; (ii) the direct or indirect sale, 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 Company’s assets and the assets of its Subsidiaries, taken as a whole, to one or more Third Parties; provided, however, that none of the circumstances in this clause (ii) shall be a Change of Control if the Persons that beneficially own the Company Interests immediately prior to the transaction own, directly or indirectly, equity interests with a majority of the total voting power of all of the issued and outstanding equity interests of the surviving entity or transferee Person immediately after the transaction or (iii) the Company consolidates with, or merges with or into, any Third Party or any such Third Party consolidates with, or merges with or into, the Company, in either case, pursuant to a transaction in which any of the Company’s issued and outstanding equity interests or the equity interests of such other Third Party is converted into or exchanged for cash, securities or other property, other than pursuant to a transaction in which the Company Interests issued and outstanding immediately prior to the transaction constitute, or are converted into or exchanged for, a majority of the equity securities of the surviving Person immediately after giving effect to such transaction; provided, that for the avoidance of doubt neither an IPO nor reorganization of an IPO vehicle for the Company or any of its Subsidiaries shall constitute a Change of Control.
“Class A-1 Member” shall mean a Member holding Class A-1 Units.
 “Class A-1 Sharing Ratio” shall mean, with respect to a Class A-1 Member, the number of Class A-1 Units held by such Class A-1 Member divided by the total number of Class A-1 
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Units outstanding, in each case as of the relevant date of determination. The Class A-1 Sharing Ratios of each Class A-1 Member as of the Effective Date are set forth on Exhibit A.
“Class A-1 Units” shall mean that class of Company Interests issued to those Members set forth on Exhibit A in the amounts set forth thereon, and to such other Persons after the Effective Date in accordance with this Agreement, representing an interest in profits, losses and distribution as set forth in this Agreement and having the rights, powers, obligations, restrictions and limitations specified with respect to Class A-1 Units in this Agreement.
“Class A-2 Member” shall mean a Member holding Class A-2 Units.
“Class A-2 Sharing Ratio” shall mean, with respect to a Class A-2 Member, the number of Class A-2 Units held by such Class A-2 Member divided by the total number of Class A-2 Units outstanding, in each case as of the relevant date of determination. The Class A-2 Sharing Ratios of each Class A-2 Member as of the Effective Date are set forth on Exhibit A.
“Class A-2 Units” shall mean that class of Company Interests issued to those Members set forth on Exhibit A in the amounts set forth thereon, and to such other Persons after the Effective Date in accordance with this Agreement, representing an interest in profits, losses and distribution as set forth in this Agreement and having the rights, powers, obligations, restrictions and limitations specified with respect to Class A-2 Units in this Agreement.
“Class A-3 Member” shall mean a Member holding Class A-3 Units.
“Class A-3 Sharing Ratio” shall mean, with respect to a Class A-3 Member, the number of Class A-3 Units held by such Class A-3 Member divided by the total number of Class A-3 Units outstanding, in each case as of the relevant date of determination. The Class A-3 Sharing Ratios of each Class A-3 Member as of the Effective Date are set forth on Exhibit A.
“Class A-3 Units” shall mean that class of Company Interests issued to those Members set forth on Exhibit A in the amounts set forth thereon, and to such other Persons after the Effective Date in accordance with this Agreement, representing an interest in profits, losses and distribution as set forth in this Agreement and having the rights, powers, obligations, restrictions and limitations specified with respect to Class A-3 Units in this Agreement.
 “Class B-1 Member” shall mean a Member holding Class B-1 Units.
“Class B-1 Sharing Ratio” shall mean, with respect to a Class B-1 Member, the number of Class B-1 Units held by such Class B-1 Member divided by the total number of Class B-1 Units outstanding, in each case as of the relevant date of determination. The Class B-1 Sharing Ratios of each Class B-1 Member as of the Effective Date are set forth on Exhibit A.
“Class B-1 Units” shall mean that class of Company Interests issued to those Members set forth on Exhibit A in the amounts set forth thereon, and to such other Persons after the Effective Date in accordance with this Agreement, representing an interest in profits, losses and 
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distribution as set forth in this Agreement and having the rights, powers, obligations, restrictions and limitations specified with respect to Class B-1 Units in this Agreement.
“Class C-1 Member” shall mean a Member holding Class C-1 Units. 
“Class C-1 Units” shall mean that class of Company Interests issued to those Members set forth on Exhibit A in the amounts set forth thereon, and to such other Persons after the Effective Date in accordance with this Agreement, having the rights, powers, obligations, restrictions and limitations specified with respect to Class C-1 Units in this Agreement.  For the avoidance of doubt, the Class C-1 Units shall only represent Voting Interests, and shall not have a right to any share in the profits, losses or distributions of the Company.
“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and any successor statute or statutes.
“Company Assets” shall mean all of the real and personal property, pipelines, equipment, and other physical assets owned and leased by the Company. 
“Company Interest” shall mean an ownership interest in the Company held by a Member and includes any and all benefits to which the holder of such a Company Interest may be entitled as provided in this Agreement, together with all obligations of such Member to comply with the terms and provisions of this Agreement.  There may be one or more classes or series of Company Interests created pursuant to Section 3.2.  The Company Interest may be expressed as a number of Class A-1 Units, Class A-2 Units, Class A-3 Units, Class B-1 Units, Class C-1 Units, or other Units.
“Company Nonrecourse Liabilities” shall mean nonrecourse liabilities (or portions thereof) of the Company for which no Member bears the economic risk of loss in accordance with applicable Treasury Regulations.
“Company Record Date” shall, in the case of the distribution of Distributable Funds pursuant to Section 4.3(b), generally be the same as the record date established by the CORR Board of Directors for a distribution to its stockholders, including pursuant to Sections 4.3(c)(i) and (ii).
“Company Representative” shall have the meaning assigned to such term in Section 5.8.
“Company Securities” shall have the meaning assigned to such term in Section 3.2(b).
“Compensation Committee” shall have the meaning assigned to such term in Section 5.1(l).
“Confidential Information” shall mean all proprietary and confidential information of the Company, including, without limitation, business opportunities of the Company, intellectual property, and any other information heretofore or hereafter acquired, developed or used by the Company relating to its business, including any confidential information contained in any lease files, land files, abstracts, title opinions, title or curative matters, contract files, memoranda, 
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notes, records, drawings, correspondence, financial and accounting information, customer lists, statistical data and compilations, shipper information, patents, copyrights, trademarks, trade names, inventions, formulae, methods, processes, agreements, contracts, manuals, plats, surveys, geological and geophysical information, operational and production information and land information related to customers or potential customers of the Company or any other documents relating to the business of the Company, developed by, or originated by any third party and brought to the attention of, the Company.
“Contributing Member” shall have the meaning assigned to such term in Section 3.3(b)(i).
“CORR Class B Common Stock” shall mean the Class B Common Stock of CORR, $0.001 par value per share, the terms of which shall be governed by the CorEnergy Infrastructure Trust, Inc. Articles Supplementary Establishing and Fixing the Rights and Preferences of Class B Common Stock, the form of which is attached to this Agreement as Exhibit F.
“CORR Class B Common Stock Conversion” shall mean the effective date of the “Mandatory Conversion,” as that term is used in the Articles Supplementary for the Class B Common Stock, of the CORR Class B Common Stock into CORR Common Stock.
"CORR Common Stock” shall mean the currently outstanding common stock of CORR, $0.001 par value per share.
“CORR Managers” shall have the meaning assigned to such term in Section 5.1(a)(ii).
“CORR Purchase Agreement” shall mean that certain Membership Interest Purchase Agreement, dated as of February 4, 2021, by and among CORR, the Company, John D. Grier and CGI Crimson Holdings, L.L.C.
“CORR Securities” shall mean the CORR Common Stock, CORR Class B Common Stock, CORR Series B Preferred Stock, and the CORR Series A Preferred Stock.
“CORR Series A Dividend Payment Date” shall mean the last calendar day of each February, May, August and November of each year, commencing on February 28, 2021.
“CORR Series A Dividend Payment Record Date” shall mean the date designated by the CORR Board of Directors pursuant to Section 4.3(c)(i) for the payment of dividends that is not more than 30 or less than 10 days prior to the applicable CORR Series A Dividend Payment Date. 
“CORR Series A Preferred Stock” shall mean the 7.375% Series A Cumulative Redeemable Preferred Stock of CORR, $0.001 par value per share, as to which each outstanding whole share is represented by outstanding depositary shares, each representing 1/100th of a whole share, the terms of which shall be governed by the CorEnergy Infrastructure Trust, Inc. Articles Supplementary Establishing and Fixing the Rights and Preferences Of Series A Cumulative Reedemable Preferred Stock.
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“CORR Series B Dividend Payment Date” shall mean the last calendar day of each February, May, August and November of each year, commencing on February 28, 2021.
“CORR Series B Dividend Payment Record Date” shall mean the date designated by the CORR Board of Directors pursuant to Section 4.3(c)(ii) for the payment of dividends that is not more than 30 or less than 10 days prior to the applicable CORR Series B Dividend Payment Date. 
“CORR Series B Preferred Stock” shall mean the Series B Convertible Preferred Stock of CORR, $0.001 par value per share, the terms of which shall be governed by the CorEnergy Infrastructure Trust, Inc. Articles Supplementary Establishing and Fixing the Rights and Preferences of Series B Redeemable Convertible Preferred Stock, the form of which is attached to this Agreement as Exhibit D.
“CORR Series C Preferred Stock” shall mean the Series C Exchangeable Preferred Stock of CORR, $0.001 par value per share, the terms of which shall be governed by the CorEnergy Infrastructure Trust, Inc. Articles Supplementary Establishing and Fixing the Rights and Preferences of 9.00% Series C Exchangeable Preferred Stock, the form of which is attached to this Agreement as Exhibit E.
“CORR Transfer” shall have the meaning assigned to such term in Section 12.3(a).
“CPUC Approval” shall mean the approval of the California Public Utility Commission under Section 854 of the California Public Utilities Code, respectively, for the (a) the change of control of the Subsidiaries of the Company that are subject to regulation by the California Public Utility Commission (the “CPUC Assets”) from John D. Grier to CORR and (b) the change in indirect ownership of the CPUC Assets from the Grier Members to CORR that will occur upon either of the following events:  (i) the exchange of the Class A-1 Units, Class A-2 Units, and Class A-3 Units held by the Grier Members for the respective CORR Securities, or (ii) a contribution of additional assets by CORR to the Company in exchange for additional Units of the Company.
“Credit Agreement” shall mean that certain Amended and Restated Credit Agreement, dated as of February 4, 2021 (the “Credit Agreement”), by and among Crimson Midstream Operating, LLC, a Delaware limited liability company (“Crimson Operating”), Corridor MoGas, Inc., a Delaware corporation (“MoGas”, and together with Crimson Operating, the “Borrowers”, and each, individually, a “Borrower”), Crimson Midstream Holdings, LLC, a Delaware limited liability company (“Holdings”),  MoGas Debt Holdco LLC, a Delaware limited liability company (“MoGas HoldCo”), MoGas Pipeline LLC, a Delaware limited liability company (“MoGas Pipeline”), CorEnergy Pipeline Company, LLC, a Delaware limited liability company (“CorEnergy Pipeline”), United Property Systems, LLC, a Delaware limited liability company (“United Property”), Crimson Pipeline, LLC, a California limited liability company (“Crimson Pipeline”), Cardinal Pipeline, L.P., a California limited partnership (“Cardinal Pipeline”), the lenders party thereto, Wells Fargo Bank, National Association, in its individual capacity and as Administrative Agent (as defined in the Credit Agreement) for such lenders party thereto, 
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Swingline Lender (as defined in the Credit Agreement) and Issuing Bank (as defined in the Credit Agreement), and the other parties from time to time party hereto.
“Crimson Managers” shall have the meaning assigned to such term in Section 5.1(a)(i).
“Debt” shall mean, as to the Company and its Subsidiaries, all indebtedness, liabilities and obligations of such Person (excluding deferred taxes) whether primary or secondary, direct or indirect, absolute or contingent (a) for borrowed money, (b) constituting an obligation to pay the deferred purchase price of property, (c) evidenced by bonds, debentures, notes or similar instruments, (d) arising under futures contracts, swap contracts, commodity hedge agreements or similar speculative agreements, (e) arising under leases serving as a source of financing or otherwise capitalized in accordance with GAAP, (f) arising under conditional sales or other title retention agreements, (g) under direct or indirect guaranties of Debt of any Person or constituting obligations to purchase or acquire or to otherwise protect or insure a creditor against loss in respect of indebtedness of any Person (such as obligations under working capital maintenance agreements, agreements to keep-well, agreements to purchase Debt, assets, goods, securities or services, or take-or-pay agreements, but excluding endorsements in the ordinary course of business of negotiable instruments in the course of collection), (h) with respect to letters of credit or applications or reimbursement agreements therefor, or (i) with respect to payments received in consideration of oil, gas, or other minerals yet to be acquired at the time of payment (including obligations under “take-or-pay” contracts to deliver hydrocarbons in return for payments already received and the undischarged balance of any production payment created by such Person or for the creation of which such Person directly or indirectly received payment) or with respect to other obligations to deliver goods or services in consideration of advance payments.
“Depreciation” shall mean for each fiscal year or other period, an amount equal to the depreciation, amortization, or other cost recovery deduction allowable with respect to an asset for such year or other period, except that (a) if the Carrying Value of an asset differs from its adjusted basis for federal income tax purposes at the beginning of such year or other period and which difference is being eliminated by use of the “traditional method with curative allocations” pursuant to Treasury Regulations Section 1.704-3(c), with the curative allocations limited to allocations of depreciation and amortization, or such other method or methods as determined by Super-Majority Board Approval to be appropriate and in accordance with the applicable Treasury Regulations.  Depreciation for such tax period shall be the amount of book basis recovered for such tax period under the rules prescribed by Treasury Regulation Section 1.704-3(c), and (b) with respect to any other property the Carrying Value of which differs from its adjusted tax basis at the beginning of such tax period, Depreciation shall be an amount which bears the same ratio to such beginning Carrying Value as the federal income tax depreciation, amortization, or other cost recovery deduction for such year or other tax period bears to such beginning adjusted tax basis; provided, that if the adjusted tax basis of any property at the beginning of such tax period is equal to zero dollars ($0.00), in which event Depreciation with respect to such property shall be determined under with reference to such beginning value using any reasonable method selected by the Board. 
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“Designated Business Opportunity” shall mean any business opportunity related to renewable energy, including the production or transportation of biodiesel fuels and the gathering of related feedstock.
“Dispute” shall have the meaning assigned to such term in Section 12.10.
“Distributable Funds” shall mean the available cash of the Company in excess of the Liquidity Reserve and other requirements of the Company (including, without limitation, current obligations under agreements evidencing Debt, which shall include the Credit Agreement), as determined by the Board acting with Super-Majority Board Approval.
“Draft Budget” shall have the meaning assigned to such term in Section 5.9.
“Emergency” shall mean a sudden or unexpected event that poses an imminent threat to health or property or risk of loss to property or risk of harm to the environment.
“Excepted Liens” shall mean (i) liens for taxes, assessments or other governmental charges or levies not yet due or which are being contested in good faith by appropriate action and if reserves adequate under GAAP shall have been established therefor; (ii) legal or equitable encumbrances deemed to exist by reason of the existence of any litigation or any other legal proceeding or arising out of a judgment or award with respect to which an appeal is being prosecuted in good faith and if reserves adequate under GAAP shall have been established therefor; (iii) vendors’, carriers’, warehousemen’s, repairmen’s, mechanics’, workmen’s, materialmen’s construction or other like liens arising by operation of law in the ordinary course of business or incident to the construction or improvement of any property or operator and non-operator liens under joint operating agreements in respect of obligations which are not yet due or which are contested in good faith by appropriate proceedings and if reserves adequate under GAAP shall have been established therefor; and (iv) servitudes, easements, restrictions, rights of way and other similar rights or liens in real or immovable property or any interest therein; provided, that the same do not materially impair the use of such property for the purposes for which it is held.
“Excluded Business Opportunity” shall mean a business opportunity other than a business opportunity:
(a)    that (i) has come to the attention of a Person solely in, and as a direct result of, its or his capacity as a director of, advisor to, principal of or employee of the Company or a Subsidiary of the Company, or (ii) was developed with the use or benefit of the personnel or assets of the Company, or a Subsidiary of the Company, and
(b)    that has not been previously independently brought to the attention of the subject Person from a source that is not affiliated (other than through such subject Person) with the Company or a Subsidiary of the Company.
“Fair Market Value” shall mean a good faith determination made by the Board, acting with Super-Majority Board Approval, of the cash value of specified asset(s) that would be 
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obtained in a negotiated, arm’s length transaction between an informed and willing buyer and an informed and willing seller, with such buyer and seller being unaffiliated, neither such party being under any compulsion to purchase or sell, and without regard to the particular circumstances of either such party.  A determination of Fair Market Value by the Board shall be final and binding for all purposes of this Agreement and any other relevant Transaction Document.  
“GAAP” shall mean generally accepted accounting principles as applied in the United States of America in effect from time to time.
“Governmental Authority” shall mean any federal, state, local or foreign government or political subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority have the force of law), or any arbitrator, court or tribunal of competent jurisdiction.
“Grier Companies” shall have the meaning assigned to such term in Section 5.4(a).
“Grier Members” shall have the meaning assigned to such term in the introductory section of this Agreement. 
 “Grier Trusts” shall have the meaning assigned to such term in the introductory section of this Agreement. 
“Indemnitee” shall have the meaning assigned to such term in Section 6.1.
“Indirect Transfer” shall mean (with respect to any Member that is a corporation, partnership, limited liability company or other entity) a deemed Transfer of a Company Interest, which shall occur upon any Transfer of the ownership of, or voting rights associated with, the equity or other ownership interests in such Member.
"Initial Resolutions" shall have the meaning assigned to such term in Section 5.1(b).
“IPO” shall mean the closing of a public offering of equity securities of the Company or any Subsidiary, registered under the Securities Act.
 “JAMS” shall have the meaning assigned to such term in Section 12.10(a).
“Liquidity Reserve” shall have the meaning assigned to such term in Section 5.1(k).
“Majority Board Approval” shall mean the approval by the affirmative vote of Managers representing a majority of the outstanding Voting Interests whether by vote at a regular or special meeting of the Board or by written proxy.
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“Majority Interest” shall mean with respect to the Members, as to any agreement, election, vote or other action of the Members, those Members whose combined Voting Interest exceed 50%.
 “Manager” and “Managers” shall have the meanings assigned to such terms in Section 5.1(a).
“Member Nonrecourse Debt” shall mean any nonrecourse Debt of the Company for which any Member bears the economic risk of loss in accordance with applicable Treasury Regulations.
“Member Nonrecourse Deductions” shall mean the amount of deductions, losses and expenses equal to the net increase during the year in Minimum Gain attributable to a Member Nonrecourse Debt, reduced (but not below zero) by proceeds of such Member Nonrecourse Debt distributed during the year to the Members who bear the economic risk of loss for such Debt, as determined in accordance with applicable Treasury Regulations.
“Members” shall mean the Persons (including Class A-1 Members, Class A-2 Members, Class A-3 Members, Class B-1 Members and Class C-1 Members) who from time to time shall execute a signature page to this Agreement (including by counterpart) as the Members, including any Person who becomes a substituted Member of the Company pursuant to the terms hereof, or joins in this Agreement pursuant to a joinder agreement in a form approved by the Board.
“Minimum Gain” shall mean (a) with respect to Company Nonrecourse Liabilities, the amount of gain that would be realized by the Company if the Company Transferred (in a taxable transaction) all Company properties that are subject to Company Nonrecourse Liabilities in full satisfaction of Company Nonrecourse Liabilities, computed in accordance with applicable Treasury Regulations, or (b) with respect to each Member Nonrecourse Debt, the amount of gain that would be realized by the Company if the Company Transferred (in a taxable transaction) the Company property that is subject to such Member Nonrecourse Debt in full satisfaction of such Member Nonrecourse Debt, computed in accordance with applicable Treasury Regulations.
“Net Profit” or “Net Loss” shall mean, with respect to any fiscal year or other fiscal period, the net income or net loss of the Company for such period, determined in accordance with federal income tax accounting principles and Code Section 703(a) (including any items that are separately stated for purposes of Code Section 702(a)), with the following adjustments:
(a)    any income of the Company that is exempt from federal income tax shall be included as income;
(b)    any expenditures of the Company that are described in Code Section 705(a)(2)(B) or treated as so described pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(i) shall be treated as current expenses;
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(c)    if Company assets are distributed to the Members in kind, such distributions shall be treated as sales of such assets for cash at their respective Fair Market Values in determining Net Profit and Net Loss;
(d)    in the event the Carrying Value of any Company asset is adjusted as provided in this Agreement, the amount of such adjustment shall be taken into account as gain or loss upon the Transfer of such asset for purposes of computing Net Profit or Net Loss;
(e)    gain or loss resulting from any Transfer of Company property with respect to which gain or loss is recognized for federal income tax purposes shall be computed by reference to the Carrying Value of the property Transferred, notwithstanding that the adjusted tax basis for such property differs from its Carrying Value;
(f)    in lieu of the depreciation, amortization and other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account Depreciation for such fiscal year or other period; and
(g)    items specially allocated under Section 4.2 shall be excluded.
“Non-Discretionary Capital” shall mean payments required to be made by the Company or any of its Subsidiaries to (a) protect the health and safety of Persons from immediate and present harm; (b) safeguard lives or property in connection with the initial response to any emergencies affecting any Company asset; (c) protect the environment from immediate and present harm; (d) make any repairs or capital improvements or take other action immediately required in the good faith judgment of the Board in order to avoid a violation of any laws, orders, rules, regulations and other requirements enacted, imposed or enforced by any Governmental Authority; (e) to repair, remediate, mitigate and provide reasonable contingencies for leaks or spills and/or any unplanned release of crude oil or other hydrocarbons to the extent such events were not included in the applicable Approved Budget; or (f) repair or replace any Company Assets that, if not repaired or replaced, would likely cause an unplanned outage that would likely materially impair the Company Assets or revenues of the Company.
“Nonrecourse Deductions” shall have the meaning assigned to such term in Treasury Regulations Section 1.704-2(b).
“Paid-in-Kind Distribution” shall have the meaning assigned to such term in Section 4.3(e).
“Permitted Transfer” or “Permitted Transferees” shall mean:
(a)    any Transfer of a Company Interest by CORR, (whether voluntarily or by operation of law) to a partner, Affiliate or legal successor of CORR;
(b)    any Transfer of a Company Interest, except for Class C-1 Units, to a Grier Trust;
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(c)    any Transfer of a Company Interest, except for Class C-1 Units, by John D. Grier or M. Bridget Grier, in each case, to (i) his or her children or to an entity, including a trust, controlled by John D. Grier, in each case, for estate planning purposes, or (ii) an existing Grier Member; and
(d)    any Transfer of a Company Interest occurring by operation of law upon the death or disability of a Member who is an individual.
“Person” (whether or not capitalized) shall mean any natural person, corporation, company, limited or general partnership, joint stock company, joint venture, association, limited liability company, trust, bank, trust company, business trust or other entity or organization, whether or not a Governmental Authority.
“Preferred Return Per Class A-1 Unit” means, with respect to each Class A-1 Unit outstanding on a specified Company Record Date (related to a CORR distribution), an amount initially equal to zero at the Effective Date, and increased cumulatively on each Company Record Date by an amount equal to the product of (i) (A) prior to June 30, 2021, the cash dividend per share of CORR Series C Preferred Stock declared by CORR for holders of CORR Series C Preferred Stock and (B) from and after June 30, 2021, the cash dividend per depositary share representing CORR Series A Preferred Stock declared by CORR for holders of CORR Series A Preferred Stock, in each case including pursuant to Section 4.3(c)(i), on such Company Record Date, including any special distributions, multiplied by (ii) the Adjustment Factor for the Class A-1 Units in effect on such Company Record Date; provided, however, that, for each Class A-1 Unit, the increase that shall occur in accordance with the foregoing on the first Company Record Date that occurs on or after the Effective Date shall be the foregoing product of (i) and (ii) above, multiplied by a fraction, the numerator of which shall be the number of days that such Class A-1 Unit was outstanding up to and including such first Company Record Date, and the denominator of which shall be the total number of days in the period from but excluding the immediately preceding Company Record Date to and including such first Company Record Date (related to a CORR distribution).
“Preferred Return Per Class A-2 Unit” means, with respect to each Class A-2 Unit outstanding on a specified Company Record Date (related to a CORR distribution), an amount initially equal to zero at the Effective Date, and increased cumulatively on each Company Record Date by an amount equal to the product of (i) (A) the cash dividend per share of CORR Series B Preferred Stock declared by CORR for holders of CORR Series B Preferred Stock, including pursuant to Section 4.3(c)(ii), on such Company Record Date, including any special distributions, plus, (B) the value of any Paid-in-Kind dividend received on such Class A-2 Unit determined in accordance with Section 4.3(e), multiplied by (ii) the Adjustment Factor for the Class A-2 Units in effect on such Company Record Date; provided, however, that, for each Class A-2 Unit, the increase that shall occur in accordance with the foregoing on the first Company Record Date that occurs on or after the Effective Date shall be the foregoing product of (i) and (ii) above, multiplied by a fraction, the numerator of which shall be the number of days that such Class A-2 Unit was outstanding up to and including such first Company Record Date, and the denominator of which shall be the total number of days in the period from but excluding the 
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immediately preceding Company Record Date to and including such first Company Record Date (related to a CORR distribution).
“Preferred Return Per Class A-3 Unit” means, with respect to each Class A-3 Unit outstanding on a specified Company Record Date (related to a CORR distribution) occurring prior to a CORR Class B Common Stock Conversion, an amount initially equal to zero at the Effective Date, and increased cumulatively on each Company Record Date by an amount equal to the product of (i) the cash dividend per share of CORR Class B Common Stock declared by CORR for holders of CORR Class B Common Stock on such Company Record Date, including any special distributions, multiplied by (ii) the Adjustment Factor for the Class A-3 Units in effect on such Company Record Date; provided, however, that, for each Class A-3 Unit, the increase that shall occur in accordance with the foregoing on the first Company Record Date that occurs on or after the Effective Date shall be the foregoing product of (i) and (ii) above, multiplied by a fraction, the numerator of which shall be the number of days that such Class A-3 Unit was outstanding up to and including such first Company Record Date, and the denominator of which shall be the total number of days in the period from but excluding the immediately preceding Company Record Date to and including such first Company Record Date (related to a CORR distribution).  Subsequent to the CORR Class B Common Stock Exchange, clause (i) above shall be deemed to refer to the dividend per share of CORR Common Stock declared by CORR for holders of CORR Common Stock.
 “Regulatory Allocations” shall have the meaning assigned to such term in Section 4.2(e).
“Rules” shall have the meaning assigned to such term in Section 12.10(a).
“Securities Act” shall mean the Securities Act of 1933, as amended.
“Sharing Ratio” shall mean, with respect to any Member, the number of Units owned by such Member divided by the total number of Units outstanding as of the relevant date of determination. The Sharing Ratios of the Members as of the Effective Date are set forth in Exhibit A.  The Sharing Ratio of each Member shall be adjusted in accordance with Section 3.1(d).
“Stock Exchange Agreement” shall mean that certain Stock Exchange Agreement, entered into as of the 6th day of July, 2021, to be effective as of 11:59 p.m Central Time on June 30, 2021, by and among CORR and the Class A-1 Members.
“Subsidiary” or “Subsidiaries” with respect to any Person, any corporation, association, partnership, limited liability company, joint venture, or other business or corporate entity, enterprise or organization of which the management is directly or indirectly (through one or more intermediaries) controlled by such Person or 40% or more of the equity interests in which is directly or indirectly (through one or more intermediaries) owned by such Person.  Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of the Company.
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“Super-Majority Board Approval” shall mean the approval by an affirmative vote of Board of Managers representing no fewer than eighty-two (82%) percent of the outstanding Voting Interests, whether by vote at a regular or special meeting of the Board or by written proxy.
“Tax Adjustment” shall have the meaning assigned to such term in Section 5.8(c). 
“Tax Matters Member” shall have the meaning assigned to such term in Section 5.7.
“Third Party” shall mean any Person (other than a Member, the Company and its Subsidiaries, and any transferee receiving Company Interests pursuant to a Permitted Transfer).
“Transfer” or any derivation thereof, shall mean any sale, assignment, conveyance, mortgage, pledge, granting of security interest in, or other disposition of a Company Interest or any asset of the Company, as the context may require.
“Transfer Agreement” shall have the meaning assigned to such term in Section 12.3(d).
“Transfer Closing” shall have the meaning assigned to such term in Section 12.3(g).
“Transfer Closing Date” shall have the meaning assigned to such term in Section 12.3(g).
“Treasury Regulation(s)” shall mean regulations promulgated by the United States Treasury Department under the Code.
“Unit” shall mean a unit of a membership interest in the Company representing, as the context shall require, any Company Interest, as well as any other class or series of Units created pursuant to Section 3.2.
“Unrealized Gain” attributable to any item of Company property shall mean, as of any date of determination, the excess, if any, of (a) the Fair Market Value of such property as of such date over (b) the Carrying Value of such property as of such date (prior to any adjustment to be made pursuant to Section 8.1(b)(v) as of such date).
“Unrealized Loss” attributable to any item of Company property shall mean, as of any date of determination, the excess, if any, of (a) the Carrying Value of such property as of such date (prior to any adjustment to be made pursuant to Section 8.1(b)(v), as of such date) over (b) the Fair Market Value of such property as of such date.
“Voting Interests” shall mean the outstanding Class C-1 Units of the Company.  For the avoidance of doubt, the Class C-1 Units shall be the only voting Units of the Company.
Any capitalized term used in this Agreement but not defined in this Section 2.1 shall have the meaning assigned to such term elsewhere in this Agreement.
Section 2.2.References and Titles.  All references in this Agreement to articles, sections, subsections and other subdivisions refer to corresponding articles, sections, subsections 
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and other subdivisions of this Agreement unless expressly provided otherwise.  Titles appearing at the beginning of any of such subdivisions are for convenience only and shall not constitute part of such subdivisions and shall be disregarded in construing the language contained in such subdivisions.  The words “this Agreement,” “herein,” “hereof,” “hereby,” “hereunder” and words of similar import refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited.  Pronouns in masculine, feminine and neuter genders shall be construed to include any other gender, and words in the singular form shall be construed to include the plural and vice versa, unless the context otherwise requires.  The word “including” (in its various forms) means including without limitation.
Article III.CAPITALIZATION
Section 3.1.Classes and Series of Company Interests.
(a)The Company Interests shall consist of five classes of Company Interests, designated as “Class A-1 Units,” “Class A-2 Units,” “Class A-3 Units,” “Class B-1 Units” and “Class C-1 Units.”  Each class of Company Interests shall have the rights, powers, obligations, restrictions and limitations accorded such class as are set forth in this Agreement.  Neither the Units previously issued, nor the Units issued hereunder shall be certificated unless otherwise determined by the Board.  A total of 1,755,573.0 Class A-1 Units, 2,460,411.0 Class A-2 Units, and 2,450,142.5 Class A-3 Units are hereby authorized for issuance, a total of 10,000.0 Class B-1 Units are hereby authorized for issuance, and a total of 1,000,000.0 Class C-1 Units are hereby authorized for issuance.  A Member may own one or more classes or series of Units, and the ownership of one class or series of Units shall not affect the rights, privileges, preferences or obligations of a Member with respect to the other class or series of Units owned by such Member.  Any reference herein to a holder of a class of Units shall be deemed to refer to such holder only to the extent of such holder’s ownership of such class or series of Units.  Notwithstanding anything to the contrary in this Agreement, any Units issued to CORR subsequent to the date hereof shall be Class B-1 Units, and any Units acquired by CORR or any Affiliate of CORR from any Grier Member, shall automatically be converted to a Class B-1 Unit.  
(b)On February 4, 2021, the Company issued:
(i)1,652,000 Class A-1 Units in the aggregate to the Grier Members as set forth in consideration for the conversion and retirement of certain of the prior Class C Units issued under the Prior Agreement held by the Grier Members on and prior to February 4, 2021, which for the purposes of this Agreement, were deemed to have a Fair Market Value in an amount equal to $41,300,000. Upon CPUC Approval, the Class A-1 Units were to be exchangeable for CORR Series C Preferred Stock. However, in accordance with the Stock Exchange Agreement, the Class A-1 Members have agreed to eliminate their right to receive CORR Series C Preferred Stock in exchange for Class A-1 Units, in consideration for each Class A-1 Member instead to have the right to receive depositary shares representing CORR Series A Preferred Stock. The number of depositary shares 
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representing such CORR Series A Preferred Stock each Class A-1 Member is to receive for each Class A-1 Unit shall be calculated using the Forced Exchange Rate (as that term is defined in the Stock Exchange Agreement);
(ii) 2,436,000 Class A-2 Units in the aggregate to the Grier Members as set forth in consideration for the conversion and retirement of certain of the prior Class C Units issued under the Prior Agreement held by the Grier Members on and prior to February 4, 2021, which for the purposes of this Agreement, were deemed to have a Fair Market Value in an amount equal to $60,900,000; 
(iii)2,450,000 Class A-3 Units in the aggregate to the Grier Members as set forth on Exhibit A in consideration for the conversion and retirement of certain of the prior Class C Units issued under the Prior Agreement held by the Grier Members on and prior to February 4, 2021, which for the purposes of this Agreement, were deemed to have a Fair Market Value in an amount equal to $17,200,000; 
(iv) 10,000 Class B-1 Units to CORR, and which, for the purposes of this Agreement, shall have a Fair Market Value in an amount equal to $117,000,000; 
(v)505,000 Class C-1 Units in the aggregate to the Grier Members as set forth on Exhibit A, and which, for the purposes of this Agreement, shall represent 50.5% of the Voting Interests of the Company; and 
(vi)495,000 Class C-1 Units to CORR, and which, for the purposes of this Agreement, shall represent 49.5% of the Voting Interests of the Company. 
(c)On June 30, 2021, the Company issued an additional 16,240 Class A-2 Units in the aggregate to the Grier Members as a Paid-in-Kind Distribution in accordance with Section 4.3(e).
(d)Additional Persons may be admitted to the Company as new Members only as provided in this Agreement.
(e)As of the Effective Date, the Class A-1 Units, Class A-2 Units, Class A-3 Units, Class B-1 Units and Class C-1 Units, and the respective Sharing Ratios, Class A-1 Sharing Ratios, Class A-2 Sharing Ratios, Class A-3 Sharing Ratios, and Class B-1 Sharing Ratios held by each Member are set forth on Exhibit A attached hereto.  Exhibit A shall be amended by the Board from time to time to reflect changes and adjustments resulting from (i) the admission of any new Member, (ii) any Transfer in accordance with this Agreement, (iii) any additional Paid-in-Kind Distributions and/or (iv) any Capital Contributions made or additional Company Interests issued, in each case as permitted by this Agreement (provided, that a failure to reflect such change or adjustment on Exhibit A shall not prevent any otherwise valid change or adjustment from being effective).  Any reference in this Agreement to Exhibit A shall be deemed a 
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reference to Exhibit A as amended in accordance with this Section 3.1(d) and in effect from time to time.
Section 3.2.Issuances of Additional Securities.
(a)The Company may issue additional Company Interests, or classes or series thereof, or options, rights, warrants or appreciation rights relating thereto, or instruments convertible into Company Interests, or any other type of equity security that the Company may lawfully issue (“Additional Equity Securities”) with the approval of the Board, acting with Super-Majority Board Approval.
(b)The Board, acting with Super-Majority Board Approval, is hereby authorized to cause the Company and/or its Subsidiaries to issue any unsecured or secured Debt obligations of the Company (collectively with the Additional Equity Securities, ”Company Securities”).
(c)Additional Equity Securities may be issuable in one or more classes, or one or more series of any of such classes, with such designations, preferences and relative, participating, optional or other special rights, powers, and duties, including rights, powers and duties senior to existing classes and series of Company Securities, all as shall be fixed by the Board, acting with Super-Majority Board Approval, in the exercise of its sole and complete discretion, subject to Delaware law and the terms of this Agreement, including (i) the allocations of items of Company income, gain, loss and deduction to each such class or series of Company Securities; (ii) the right of each such class or series of Company Securities to share in Company distributions; (iii) the rights of each such class or series of Company Securities upon dissolution and liquidation of the Company; (iv) whether such class or series of additional Company Securities is redeemable by the Company and, if so, the price at which, and the terms and conditions upon which, such class or series of additional Company Securities may be redeemed by the Company; (v) whether such class or series of additional Company Securities is issued with the privilege of conversion and, if so, the rate at which, and the terms and conditions upon which, such class or series of Company Securities may be converted into any other class or series of Company Securities; (vi) the terms and conditions upon which each such class or series of Company Securities will be issued and assigned or Transferred; and (vii) the right, if any, of each such class or series of Company Securities to vote on Company matters, including matters relating to the relative rights, preferences and privileges of each such class or series.
(d)Company Securities may be issued to such Persons for such consideration and on such terms and conditions as shall be established by the Board, acting with Super-Majority Board Approval, in its sole discretion, and the Board, acting with Super-Majority Board Approval, shall have sole discretion, subject to the guidelines set forth in this Section 3.2 and the requirements of the Act, in determining the consideration and terms and conditions with respect to any future issuance of Company Securities.
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(e)The Board is hereby authorized and directed to take all actions that it deems appropriate or necessary in connection with each issuance of Company Securities pursuant to this Section 3.2 and to amend this Agreement in any manner which it deems appropriate or necessary without the joinder of any Member to provide for each such issuance, to admit additional Members in connection therewith and to specify the relative rights, powers and duties of the holders of the Company Securities being so issued.  The Board shall do all things necessary to comply with the Act and is authorized and directed to do all things it deems to be necessary or advisable in connection with any future issuance of Company Securities, including compliance with any statute, rule, regulation or guideline of any federal, state or other governmental agency.
(f)The Board may be advised by the CORR Board of Directors that distributions payable pursuant to Section 4.3 of this Agreement should be paid in kind by the payment of a Paid-in-Kind Distribution rather than in cash. When so advised, the Board is hereby expressly authorized and directed to issue such additional Units as part of the recommended Paid-in-Kind Distribution and to amend Exhibit A to this Agreement to reflect such issuance of additional Units. 
Section 3.3.Capital Contributions.
(a)No Member shall be required to make any Capital Contributions to the Company, and such Members shall have the right to make Capital Contributions as set forth in this Section 3.3 or as otherwise agreed to in writing by such Member.
(b)Capital Calls
(i)After the Effective Date, the CORR Managers, may, in their sole discretion, determine that additional Capital Contributions are necessary for the conduct of the Company’s business (any such additional Capital Contributions called from the Capital Members by the Board, being hereinafter referred to as an “Additional Call Amount”).  In connection with determining that an Additional Call Amount is necessary, the CORR Managers shall (A) issue Class B-1 Units (the “Additional Call Units”) to the Capital Members in the event such Capital Members actually fund Capital Contributions in respect of such Additional Call Amount (the “Contributing Members”) and (B) determine the Fair Market Value of each Class B-1 Unit of such Additional Call Units (the “Additional Call Unit FMV”).  Grier shall have the right to acquire such Additional Call Units in an amount equal to (i) the number of Additional Call Units offered multiplied by (ii) a fraction (A) the numerator of which is the number of Class C-1 Units held by Grier and (B) the denominator of which is the number of Class C-1 Units held by all Members (for each Capital Member, the “Class C-1 Ratio”).  Should Grier desire to exercise such right, Grier shall give notice thereof to the Company within thirty (30) days following receipt of a notice from the Company of its intent to issue Additional Call Units (a “Preemptive Right Response”).  Absent receipt of a Preemptive Right Response from Grier within such 30-day period, the 
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Company shall be entitled to assume that such Member has elected not to exercise its rights under this Section 3.3.  
(ii)Upon the funding of any Capital Contribution by a Contributing Member, such Contributing Member shall be issued a number of Additional Call Units equal to the amount of the Capital Contribution made by such Member divided by a price per Additional Call Unit equal to the Additional Call Unit FMV.  Exhibit A and the books and records of the Company shall be thereafter amended accordingly to reflect the funding of any Capital Contributions by a Contributing Member and the issuance of any Units in connection therewith, including any upward or downward adjustments to the Sharing Ratios of the Members in the event a Member does not elect to make a Capital Contribution and a Contributing Member increases its Capital Contribution amount in accordance with Section 3.3(b)(i).  
Section 3.4.Return of Contributions.  No interest shall accrue on any contributions to the capital of the Company, and no Member shall have the right to withdraw or to be repaid any capital contributed by such Member except as otherwise specifically provided in this Agreement.
Article IV.ALLOCATIONS AND DISTRIBUTIONS
Section 4.1.Allocations of Net Profits and Net Losses.  After giving effect to the allocations under Section 4.2, the Members shall share Company Net Profits and Net Losses and all related items of income, gain, loss, deduction and credit for federal income tax purposes as follows:
(a)Net Profits and Net Losses for each fiscal year shall be allocated among the Members in such manner as shall cause the Capital Accounts of each Member to equal, as nearly as possible, (i) the amount such Member would receive if all assets on hand at the end of such year were sold for cash at the Carrying Values of such assets, all liabilities were satisfied in cash in accordance with their terms (limited in the case of Member Nonrecourse Debt and Company Nonrecourse Liabilities to the Carrying Value of the assets securing such liabilities), and any remaining or resulting cash was distributed to the Members under Section 4.3(b), minus (ii) an amount equal to such Member’s allocable share of Minimum Gain as computed immediately prior to the deemed sale in clause (i) above in accordance with the applicable Treasury Regulations.
(b)The Board shall make the foregoing allocations as of the last day of each fiscal year; provided, however, that if during any fiscal year of the Company there is a change in any Member’s Company Interest, the Board shall make the foregoing allocations as of the date of each such change in a manner which takes into account the varying interests of the Members and in a manner the Board reasonably deems appropriate.
Section 4.2.Special Allocations.
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(a)Notwithstanding any of the provisions of Section 4.1 to the contrary:
(i)If during any fiscal year of the Company there is a net increase in Minimum Gain attributable to a Member Nonrecourse Debt that gives rise to Member Nonrecourse Deductions, each Member bearing the economic risk of loss for such Member Nonrecourse Debt shall be allocated items of Company deductions and losses for such year (consisting first of cost recovery or depreciation deductions with respect to property that is subject to such Member Nonrecourse Debt and then, if necessary, a pro-rata portion of the Company’s other items of deductions and losses, with any remainder being treated as an increase in Minimum Gain attributable to Member Nonrecourse Debt in the subsequent year) equal to such Member’s share of Member Nonrecourse Deductions, as determined in accordance with applicable Treasury Regulations.
(ii)If for any fiscal year of the Company there is a net decrease in Minimum Gain attributable to Company Nonrecourse Liabilities, each Member shall be allocated items of Company income and gain for such year (consisting first of gain recognized from the Transfer of Company property subject to one or more Company Nonrecourse Liabilities and then, if necessary, a pro-rata portion of the Company’s other items of income and gain, and if necessary, for subsequent years) equal to such Member’s share of such net decrease (except to the extent such Member’s share of such net decrease is caused by a change in debt structure with such Member commencing to bear the economic risk of loss as to all or part of any Company Nonrecourse Liability or by such Member contributing capital to the Company that the Company uses to repay a Company Nonrecourse Liability), as determined in accordance with applicable Treasury Regulations.  Nonrecourse Deductions shall be allocated to the Members in accordance with their respective Sharing Ratios to the extent permitted by the Treasury Regulations.
(iii)If for any fiscal year of the Company there is a net decrease in Minimum Gain attributable to a Member Nonrecourse Debt, each Member bearing the economic risk of loss for such Member Nonrecourse Debt shall be allocated items of Company income and gain for such year (consisting first of gain recognized from the Transfer of Company property subject to Member Nonrecourse Debt, and then, if necessary, a pro-rata portion of the Company’s other items of income and gain, and if necessary, for subsequent years) equal to such Member’s share of such net decrease (except to the extent such Member’s share of such net decrease is caused by a change in debt structure such that the Member Nonrecourse Debt becomes partially or wholly a Company Nonrecourse Liability or by the Company’s use of capital contributed by such Member to repay the Member Nonrecourse Debt) as determined in accordance with applicable Treasury Regulations.
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(b)The Net Losses allocated pursuant to this Article IV shall not exceed the maximum amount of Net Losses that can be allocated to a Member without causing or increasing a deficit balance in the Member’s Adjusted Capital Account balance.  All Net Losses in excess of the limitations set forth in this Section 4.2(b) shall be allocated to Members with positive Adjusted Capital Account balances remaining at such time in proportion to such positive balances.  
(c)In the event that a Member unexpectedly receives any adjustment, allocation or distribution described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6) that causes or increases a deficit balance in such Member’s Adjusted Capital Account, items of Company income and gain shall be allocated to that Member in an amount and manner sufficient to eliminate the deficit balance as quickly as possible.
(d)In the event that any Member has a deficit balance in its Adjusted Capital Account at the end of any allocation period, such Member shall be allocated items of Company gross income and gain in the amount of such deficit as quickly as possible; provided, that an allocation pursuant to this Section 4.2(d) shall be made only if and to the extent that such Member would have a deficit balance in its Capital Account after all other allocations provided for in this Article IV have been tentatively made as if Section 4.2(c) and this Section 4.2(d) were not in this Agreement.
(e)If, as a result of an exercise of a non-compensatory warrant, a Capital Account reallocation is required under Treasury Regulations Section 1.704-1(b)(2)(iv)(s)(3) (as such Treasury Regulations may be amended or modified), the Company shall make corrective allocations pursuant to Proposed Treasury Regulations Section 1.704-1(b)(4)(x), as such Treasury Regulations may be amended or modified.
(f)The allocations set forth in subsections (a) through (e) of this Section 4.2 (collectively, the ”Regulatory Allocations”) are intended to comply with certain requirements of the Treasury Regulations.  It is the intent of the Members that, to the extent possible, all Regulatory Allocations that are made be offset either with other Regulatory Allocations or with special allocations pursuant to this Section 4.2(f).  Therefore, notwithstanding any other provisions of this Article IV (other than the Regulatory Allocations), the Board shall make such offsetting special allocations in whatever manner it determines appropriate so that, after such offsetting allocations are made, the net amount of allocations to each Member is, to the extent possible, equal to the amount such Member would have been allocated if the Regulatory Allocations were not part of the Agreement and all Company items were allocated pursuant to Section 4.1 and the remaining subsections of this Section 4.2.
(g)In the event Units are issued to a Person and the issuance of such Units results in items of income or deduction to the Company, such items of income or deduction shall be allocated to the Members in proportion to the positive balances in their Capital Accounts immediately before the issuance of such Units.
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Section 4.3.Distributions. 
(a)The Company shall distribute Distributable Funds in accordance with Section 4.3(b) unless the Board, acting with Super-Majority Board Approval, determines otherwise. 
(b)Subject to Section 4.3(a), at such times and in such amounts as are contemplated in the Budget and to the extent consistent (and to the extent commercially reasonable) with the distribution expectations set forth in the Initial Resolutions, the Company shall, unless the Board acting with Super-Majority Board Approval, determines otherwise, distribute Distributable Funds as follows, to the Members as of any Company Record Date: 
(i)First, to the Class A-1 Members, in accordance with each such Member’s Preferred Return Per Class A-1 Unit with respect to all Class A-1 Units held by such Member, less the aggregate amount previously distributed with respect to such Member’s Class A-1 Units pursuant to this Section 4.3(b)(i); 
(ii)Second, to the Class A-2 Members, in accordance with each such Member’s Preferred Return Per Class A-2 Unit with respect to all Class A-2 Units held by such Member, less the aggregate amount previously distributed with respect to such Member’s Class A-2 Units pursuant to this Section 4.3(b)(ii);
(iii)Third, to the Class A-3 Members, in accordance with each such Member’s Preferred Return Per Class A-3 Unit with respect to all Class A-3 Units held by such Member, less the aggregate amount previously distributed with respect to such Member’s Class A-3 Units pursuant to this Section 4.3(b)(iii);and
(iv)Fourth, to the Class B-1 Members, the remainder of the Distributable Funds.     
(c)Notwithstanding any provision to the contrary contained in this Agreement, for any quarter in which there are no shares of either CORR Series B Preferred Stock or CORR Series A Preferred Stock issued and outstanding, the following shall apply:
(i)If no shares of CORR Series A Preferred Stock are issued and outstanding on a CORR Series A Dividend Payment Date, subject to the preferential rights of the holders of any class or series of equity securities of CORR ranking senior to the CORR Series A Preferred Stock (if the CORR Series A Preferred Stock were outstanding) as to dividends, the CORR Board of Directors shall consider whether the CORR Board of Directors would declare cash dividends at the rate of 7.375% per annum of the $25.00 liquidation preference per depositary share representing the CORR Series A Preferred Stock, out of funds legally available to CORR for the payment of such dividends, if shares of such CORR Series A Preferred Stock were outstanding.  If the CORR 
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Board of Directors authorizes and CORR declares that a dividend would have been paid on the Series A Dividend Payment Date if such CORR Series A Preferred Stock were outstanding, the CORR Board of Directors shall designate the date that would have been the CORR Series A Dividend Record Date.  For purposes of this Agreement and determining a Class A-1 Member’s Preferred Return Per Class A-1 Unit only, such date shall be considered a record date established by the CORR Board of Directors and such declaration shall be considered a cash dividend per share of CORR for holders of CORR Series A Preferred Stock.
(ii)If no shares of CORR Series B Preferred Stock are issued and outstanding on a CORR Series B Dividend Payment Date, subject to the preferential rights of the holders of any class or series of equity securities of CORR ranking senior to the CORR Series B Preferred Stock (if the CORR Series B Preferred Stock were outstanding) as to dividends, the CORR Board of Directors shall consider whether the CORR Board of Directors would declare cash dividends at the rate of 4.00% or 11.00% (if applicable) per annum, pursuant to the terms of the Articles Supplementary for the CORR Series B Preferred Stock of the $25.00 liquidation preference per share of the CORR Series B Preferred Stock, out of funds legally available to CORR for the payment of such dividends, if shares of such CORR Series B Preferred Stock were outstanding.  If the CORR Board of Directors authorizes and CORR declares that a dividend would have been paid on the CORR Series B Dividend Payment Date if such CORR Series B Preferred Stock were outstanding, the CORR Board of Directors shall designate the date that would have been the CORR Series B Dividend Record Date.  For purposes of this Agreement and determining a Class A-2 Member’s Preferred Return Per Class A-2 Unit only, such date shall be considered a record date established by the CORR Board of Directors and such declaration shall be considered a cash dividend per share of CORR for holders of CORR Series B Preferred Stock.  
(iii)No dividends on the CORR Series B Preferred Stock or CORR Series A Preferred Stock will be deemed to have been declared or paid or set apart for payment by CORR pursuant to Sections 4.3(c)(i) and (ii) at such time as the terms and provisions of any agreement of CORR, including any agreement relating to its indebtedness, prohibits such declaration, payment or setting apart for payment or provides that such declaration, payment or setting apart for payment would constitute a breach thereof or a default thereunder, or if such declaration, or payment or setting apart for payment would be restricted or prohibited by law if such CORR Series B Preferred Stock or CORR Series A Preferred Stock were outstanding.  
(iv)Further, the deemed declarations made by the CORR Board of Directors pursuant to Sections 4.3(c)(i) and (ii) shall be subject to Section 9 (relating to “Ranking”) of the form of Articles Supplementary for each of the 
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CORR Series B Preferred Stock or CORR Series A Preferred Stock as if such CORR Series B Preferred Stock or CORR Series A Preferred Stock were outstanding.
(d)Notwithstanding any provision to the contrary contained in this Agreement, neither the Company nor the Board, on behalf of the Company, shall make a distribution to any Member if such distribution would violate the Act or other applicable law.
(e)Paid-in-Kind Distribution. Notwithstanding any provision to the contrary contained in this Agreement, the distribution under Section 4.3(b)(ii) above to the Class A-2 Members may, upon the approval of the CORR Board of Directors and the Board, be paid in kind, instead of cash (“Paid-in-Kind Distribution”). When so elected by the CORR Board of Directors and by the Board, a Paid-in-Kind Distribution shall result in an incremental issuance of additional Class A-2 Units to the Class A-2 Members. The number of Class A-2 Units to be issued shall be determined based on the dollar value of the Paid-in-Kind Distribution and the value of the Class A-2 Units, determined by taking the calculated dollar value for the partial-period dividend accrued over the applicable number of days on the Class A-2 Units, and dividing it by $25.00 per share (for the stated value of the CORR Series B Preferred Stock).  
Section 4.4.Income Tax Allocations.
(a)Except as provided in this Section 4.4, each item of income, gain, loss and deduction of the Company for federal income tax purposes shall be allocated among the Members in the same manner as such items are allocated for Capital Account purposes under Section 4.1 and Section 4.2.
(b)The Members recognize that with respect to Adjusted Property, there will be a difference between the Carrying Value of such property at the time of contribution or revaluation and the adjusted tax basis of such property at the time.  All items of tax depreciation, cost recovery, amortization, amount realized and gain or loss with respect to such Adjusted Property shall be allocated among the Members to take into account the disparities between the Carrying Values and the adjusted tax basis with respect to such properties in accordance with the provisions of Code Sections 704(b) and 704(c) and the Treasury Regulations under those sections; provided, however, that any tax items not required to be allocated under Code Sections 704(b) or 704(c) shall be allocated in the same manner as such gain or loss would be allocated for Capital Account purposes under Section 4.1 and Section 4.2. In making such allocations under Code Section 704(c), income, gain deduction and loss with respect to Company property having a Carrying Value that differs from such property’s adjusted federal income tax basis shall, solely for federal income tax purposes, be allocated among the Members in order to account for any such difference using the “traditional method with curative allocations” pursuant to Treasury Regulations Section 1.704-3(c), with the curative allocations limited to allocations of depreciation and amortization, or such other method or methods as 
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determined by Super-Majority Board Approval to be appropriate and in accordance with the applicable Treasury Regulations.
(c)All recapture of income tax deductions resulting from the Transfer of Company property shall, to the maximum extent possible, be allocated to the Member to whom the deduction that gave rise to such recapture was allocated hereunder to the extent that such Member is allocated any gain from the Transfer of such property (taking into account the effect of curative allocations).  For this purpose, deductions that were allocated as a component of Net Profit or Net Loss shall be treated as if allocated in the same manner as the allocation of the related Net Profit or Net Loss.
Article V.MANAGEMENT AND RELATED MATTERS
Section 5.1.Power and Authority of Board.
(a)The Company shall be managed by a board of managers (the “Board”) consisting of four managers (each, a “Manager” and collectively, the “Managers”).  Managers need not be Members.
(i)The Grier Members shall appoint two Managers (the “Crimson Managers”), and the Grier Members may remove and replace either or both Crimson Managers for any reason or no reason at any time and from time to time.  The Grier Members shall have the right to designate one (1) person to represent each Crimson Manager at any Board meeting at which such Crimson Manager is unable to attend (each, an “Alternate Crimson Manager” and collectively, the “Alternate Crimson Managers”).  The initial Crimson Managers are John D. Grier and Larry W. Alexander. 
(ii)CORR shall appoint two Managers (the “CORR Managers”) and may remove and replace either or both CORR Managers for any reason or no reason at any time and from time to time.  CORR shall have the right to designate one (1) person to represent each CORR Manager at any Board meeting at which such CORR Manager is unable to attend (each, an “Alternate CORR Manager” and collectively, the “Alternate CORR Managers”).  The initial CORR Managers are David J. Schulte and Todd Banks.
(iii)The term “Manager” shall also refer to any Alternate Crimson Manager or Alternate CORR Manager that is actually performing the duties of the applicable Manager in lieu of that Manager.
(iv)Each of CORR and the Grier Members shall have the right, but not the obligation, to transfer their right to appoint Board managers as provided in Section 5.1(a)(i) and (ii) hereof to any Person to whom CORR, on the one hand, or the Grier Members, on the other hand, Transfers all of the Company Interests held by such Person or Persons in accordance with the terms of this Agreement.
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(b)Except as otherwise expressly provided in this Agreement, all management powers over the business and affairs of the Company shall be exclusively vested in the Board, and the Members shall have no right of control over the business and affairs of the Company.  In addition to the powers now or hereafter granted to the Managers under the Act or which are granted to the Board under any other provision of this Agreement, the Board shall have full power and authority to do all things deemed necessary or desirable by it to conduct the business of the Company in the name of the Company. At their initial meeting, the CORR Managers and the Crimson Managers shall adopt the resolutions attached hereto as Exhibit G (the “Initial Resolutions”), and the Initial Resolutions shall guide the work of the Managers at all times that this Agreement remains effective.
(c)Each Manager serving on the Board shall have voting power equal to one half of the Voting Interests held at the time of such vote by the Member who appointed such Manager.  Except as otherwise provided expressly provided in paragraphs (d), (e), and (l) below, the business of the Company presented at any meeting of the Board (and all matters subject to “approval of the Board” and the like hereunder) shall be decided by Majority Board Approval.
(d)Notwithstanding paragraph (c) above but subject to paragraphs (e), and (l) below, the Company (and the officers, employees, and agents acting on behalf of the Company) shall not, either acting on its own behalf or when acting as controlling equity-holder of any of its Subsidiaries (and the officers, employees, and agents acting on the Company’s behalf in such capacity) shall not permit such Subsidiaries to, do any of the things described in clauses (i) - (xxix) below without Super-Majority Board Approval (it being acknowledged that the below items are not intended to be an exclusive statement of all of the other actions of the Board that require Majority Board Approval or approval of the Members, and such provisions are in addition to any and all other requirements imposed by other provisions of this Agreement): 
(i)adopt or amend any Approved Budget, or incur expenses or disburse funds for any of such purposes prior to the adoption of such Approved Budget by the Managers as required hereby (except for any actions that the Crimson Managers, in their reasonable discretion, deem necessary or appropriate in the case of an Emergency; provided, that the Crimson Managers shall notify the CORR Managers within 48 hours of the occurrence of any Emergency and shall provide a written report to the CORR Managers with respect thereto as soon as practicable of the occurrence of such Emergency setting forth the nature of the Emergency, the corrective action taken or proposed to be taken, and the actual or estimated cost and expense associated with such corrective action) or revise, rescind, or violate the Initial Resolutions;
(ii)approve, grant or enter into an agreement or arrangements for any payment or grant of, annual compensation or benefits to officers or other executive employees of the Company or any of its Subsidiaries or the payment of 
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any severance amounts upon termination of such officers or employees, including entering into employment agreements, severance agreements, adopting stock option plans or employee benefit plans, or granting options or benefits to any such Persons under any existing plans;
(iii)except with respect to Non-Discretionary Capital, the incurrence of any additional expenditures exceeding the total amount of expenditures (on an annual basis) set forth in the Approved Budget by more than ten percent (10%); provided, the Board will notify the Members no less than forty-five (45) days after the end of each quarter during such period that, after taking into account the actual year-to-date Budgeted Expenses incurred by the Company at the end of such quarters, it is reasonably projected that the Budgeted Expenses for the remainder of such period will exceed the budgeted amount for all such expenses set forth in the Approved Budget;
(iv)unless, previously approved in an Approved Budget, enter into any agreements or other arrangements with respect to, or make any payments, incur any expenses or disburse any funds for:
(A)any Capital Project, the completion or full capitalization of which can reasonably be expected to require the Company or any of its Subsidiaries to (i) expend, in the aggregate, in excess of $5,000,000 or (ii) issue a capital call to existing Members or issue equity to any third party; or
(B)to the extent not otherwise subject to approval under the preceding clause (A), the acquisition, directly or indirectly, of any assets or securities of any Person with an aggregate purchase price in excess of $5,000,000;
(v)approve, agree or consent to or make or enter into any agreement, transaction or take any other action the effect of which is to cause, any fundamental change in the scope or purpose of the business of the Company or any of its Subsidiaries, including the following: (A) any material change in the Company’s or any of its Subsidiaries’ operating strategies or in the geographic locations or methods of conducting their respective businesses; (B) any merger or consolidation or amalgamation, or liquidation, winding-up or dissolution, or Transfer of, in one transaction or a series of transactions, all or any material part of their respective businesses or assets, whether now owned or hereafter acquired; (C) the institution of proceedings to be adjudicated a bankrupt or insolvent, or the consent to the institution of bankruptcy or insolvency proceedings or the filing of a petition or consent to a petition seeking reorganization or relief under any applicable federal or state law relating to bankruptcy, or the consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator or other similar official, or an assignment for the benefit of creditors, or, except as may be required by any fiduciary obligation of the Board or as may be required by 
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applicable law, the admission in writing of inability to pay debts generally as they become due, or any corporate action in furtherance of any such action; or (D) any voluntary withdrawal as a general partner or relinquishment of rights as a controlling equity-holder of any Subsidiary;
(vi)issue any Company Interest, Company Security or any equity or debt interest in any of its Subsidiaries (or admit any new Members in the Company or equity owners of any Subsidiaries), other than repurchase any Company Interest, Company Security or any equity or debt interest in any of its Subsidiaries;
(vii)incur, create, authorize, issue, assume or suffer to exist any Debt or any liens related thereto, or authorize or permit any amendment, modification or change, or waiver of any right under, or voluntarily fail to perform obligations under (when the means for such performance is available), any agreement pertaining to such Debt, except: (A) Debt which is set forth in an Approved Budget; (B) Debt consisting of loans or advances among the Company and its Subsidiaries; (C) Excepted Liens; or (D) other Debt not to exceed $1,500,000 in any one transaction or series of related transactions;
(viii)enter into any transaction (including any purchase, sale, lease or exchange of property or assets or the rendering of any service) with any Member, any Affiliate of any Member, or any Affiliate of any officer or employee of the Company or any Subsidiary, or modify the terms of any prior transaction with any such Member or Affiliate (it being acknowledged that the Board will not approve any such transaction unless the terms thereof are no less favorable to the Company, or such Subsidiary, as the case may be, than would be obtained in a comparable arm’s-length transaction with unaffiliated Persons) other than such transactions as are expressly contemplated by this Agreement;
(ix)sell, lease or Transfer to any third-party, directly or indirectly, any assets in any one transaction or series of related transactions with expected proceeds to the Company in excess of $5,000,000, other than sales of products and services in the ordinary course of business;
(x)enter into or modify in any material respect any (A) hedge, swap, futures, option, or other derivative transactions or contracts, (B) long-term supply or purchase contracts involving consideration in excess of $2,500,000, or (C) “keep whole” commitments;
(xi)adopt or change accountants (from those selected by CORR) or accounting policies other than as necessary for such policies to be consistent with GAAP and Regulation S-X of the Securities Act or to preserve CORR’s real estate investment trust qualification;
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(xii)determine the amount of Distributable Funds, the amount of the Liquidity Reserve or make any distributions of Distributable Funds (including pursuant to Section 4.3(b));
(xiii)file or settle any litigation, mediation or arbitration in which payments are expected to exceed $2,500,000;
(xiv)remove the Tax Matters Member pursuant to Section 5.7 or Company Representative pursuant to Section 5.8;
(xv)the adoption of any voluntary change in the tax classification for federal income tax purposes of the Company or any of its Subsidiaries;
(xvi)adjust the Members’ Capital Accounts to reflect a revaluation of the Company’s properties on its books upon the occurrence of an event specified in Treasury Regulations Section 1.704-1(b)(2)(iv)(f) pursuant to Section 8.1(v);
(xvii)dissolve the Company pursuant to Section 9.1(b);
(xviii)permit the liquidator to distribute one or more properties in kind pursuant to Section 9.2(b);
(xix)permit any Transfer of a Company Interest except as may be permitted by Section 10.1(a);
(xx)accept any substituted Member pursuant to Section 10.1(d);
(xxi)determine Fair Market Value;
(xxii)enter into or modify in any material respect any material contract that provides revenue to the Company in excess of $10,000,000;
(xxiii)approve an IPO of any Company Interests or any equity interests of a Company Subsidiary;
(xxiv)commence any act that would constitute a Change of Control under this Agreement or a “change of control” as otherwise defined in any of the Company’s material contracts, except to the extent provided for in the CORR Purchase Agreement following receipt of CPUC Approval;  
(xxv)take any action or fail to take any action which would negatively affect the ability of CORR to qualify or preserve its status as a real estate investment trust; 
(xxvi)subject to Section 12.2, make any amendment of this Agreement;
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(xxvii)form, empower or delegate to any committee of the Board any responsibility for any action listed in the foregoing clauses (i) – (xxvi), or change the composition or authority of a committee;
(xxviii) hire or fire the Chief Executive Officer, Chief Operating Officer, President, any Vice President, Treasurer or Secretary of the Company or its Subsidiaries; or
(xxix)enter into any agreement or commitment to undertake any act listed in the foregoing clauses (i) – (xxviii).
(e)Notwithstanding anything to the contrary herein: 
(i)the Crimson Managers shall consult with the CORR Managers in advance with respect to all decisions regarding the ownership, management and operation of the CPUC Assets and which, but for this paragraph (e), would be subject to the consent of the CORR Managers or the Compensation Committee, as applicable, pursuant to Section 5.1(d) above or Section 5.1(l) below, but 
(ii)John D. Grier is and shall remain in control of all decisions regarding such CPUC Assets.
(f)The Board may hold such meetings at such place and at such time as it may determine; provided that meetings of the Board shall occur at least once per fiscal quarter.  Notice of a meeting shall be served not less than 24 hours before the date and time fixed for such meeting by confirmed e-mail or other written communication or not less than three (3) days prior to such meeting if notice is provided by overnight delivery service.  Notice of a meeting need not be given to any Manager who signs a waiver of notice or provides a waiver by electronic transmission or a consent to holding the meeting or an approval of the minutes thereof, whether before or after the meeting, or who attends the meeting without protesting, either prior thereto or at its commencement, the lack of notice to such Manager.  A special meeting of the Board may be called by any Manager.  Any Manager may participate in a meeting by telephone conference or similar communications.  Any action required or permitted to be taken by the Board may be taken without a meeting if such action is evidenced in writing and signed by all of the members of the Board.  At any meeting of the Board, the presence in person or by telephone or similar electronic communication of Managers representing at least 50% of the then-outstanding Voting Interests shall constitute a quorum; provided, that one CORR Manager and one Crimson Manager must be present at any meeting of the Board in person or by telephone or similar electronic communication in order to establish a quorum; and provided, further that the attendance of a CORR Manager or a Crimson Manager, as applicable, shall not be required to establish a quorum or to take any action in the event the CORR Managers or the Crimson Managers, as applicable, fail to attend any duly called meeting of the Board and, following the adjournment and re-calling of such meeting, a CORR Manager or a Crimson Manager, as applicable, again fails to attend such immediately subsequent meeting of the Board.
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(g)Subject to Section 5.1(d), in accomplishing all of the foregoing and in fulfilling its obligations pursuant to this Agreement, the Board may, in its sole discretion, retain or use personnel, properties and equipment of Affiliates of the Company, or the Board may hire or rent those of third parties and may employ on a temporary or continuing basis outside accountants, attorneys, consultants and others on such terms as the Board deems advisable.  No Person dealing with the Company shall be required to inquire into the authority of the Board to take any action or make any decision.
(h)The Board shall comply in all respects with the terms of this Agreement.  The Board shall be obligated to perform the duties, responsibilities and obligations of the Board hereunder only to the extent that funds of the Company are available therefor.  During the existence of the Company, each Manager serving on the Board shall devote such time and effort to the Company’s business as he deems necessary to manage and supervise Company business and affairs in an efficient manner.
(i)Each Manager shall be reimbursed by the Company for all reasonable out-of-pocket expenses incurred by such Person in connection with such services.
(j)The Board may determine to conduct any Company operations indirectly through one or more Subsidiaries.
(k)No later than thirty (30) days prior to the end of each fiscal year, the Board, acting with Super-Majority Board Approval, shall determine the projected amount of cash necessary from time to time for the Company to satisfy working capital requirements, including any required expenditures for the forthcoming year in accordance with the Approved Budgets, taking into account projected future revenue and costs (such projected cash balance, the “Liquidity Reserve”).  The Board will reevaluate the sufficiency of the Liquidity Reserve from time to time throughout the fiscal year, as necessary, and in any event prior to any approval of a distribution of Distributable Funds and may, acting with Super-Majority Board Approval, adjust the Liquidity Reserve.
(l)The Board shall establish a compensation committee the (“Compensation Committee”) for purposes of evaluating executive compensation and the granting of incentive equity awards. The Compensation Committee shall initially be composed of three (3) members, one (1) of which shall be appointed by the Grier Members and two (2) of which shall be appointed by CORR (one of which shall be designated by CORR as the chairman). The initial CORR-appointed members of the Compensation Committee shall be David J. Schulte and Todd Banks and the initial Grier Member-appointed member shall be John Grier. Each of CORR and the Grier Members may remove or replace their respective appointees to the Compensation Committee in their sole discretion at any time. The Compensation Committee shall hold meetings at such place and at such time as the chairman may reasonably determine.  Notice of a meeting of the Compensation Committee shall be served not less than 24 hours before the date and time fixed for such meeting by confirmed e-mail or other written communication or not less than three (3) days prior to such meeting if notice is provided by overnight delivery service.  Any member may participate in a meeting by telephone conference or similar 
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communications.  Any action required or permitted to be taken by the Compensation Committee may be taken without a meeting if such action is evidenced in writing and signed by all of the members of the Compensation Committee.  At any meeting of the Compensation Committee, the presence in person or by telephone or similar electronic communication of one (1) CORR appointee and one (1) Grier Member appointee shall constitute a quorum; provided, that the attendance of a CORR-appointee or the Grier Member-appointee, as applicable, shall not be required to establish a quorum or to take any action in the event the CORR-appointees or the Grier Member-appointee, as applicable, fail to attend any duly called meeting of the Compensation Committee and, following the adjournment and re-calling of such meeting, a CORR-appointee or the Grier Member-appointee, as applicable, again fails to attend such immediately subsequent meeting of the Compensation Committee. Notwithstanding paragraphs (c) or (d) above, the Company (and the Managers, officers, employees, and agents acting on behalf of the Company) shall not, either acting on its own behalf or when acting as controlling equity-holder of any of its Subsidiaries (and the Managers, officers, employees, and agents acting on the Company’s behalf in such capacity) shall not permit such Subsidiaries to, take (i) any of the actions described in clause (ii) of paragraph (d) above or (ii) any other action related to compensation of the Company’s senior management team without approval of the majority of the members of the Compensation Committee; provided that such majority must include at least one (1) CORR-appointed member of the Compensation Committee.  Any decisions made by the Compensation Committee shall take into account compensation programs established and maintained by CORR that benefit employees of the Company. 
Section 5.2.Duties of Managers.  Each Manager may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture, or other paper or document believed by it in good faith to be genuine and to have been signed or presented by the Board.  The Board may consult with legal counsel, accountants, appraisers, consultants, investment bankers and other consultants and advisers selected by it and any act taken or omitted in good faith reliance upon the opinion of such Persons as to matters that the Managers reasonably believe to be within such Person’s professional or expert competence shall be conclusively presumed to have been done or omitted in good faith and in accordance with such opinion.  Neither the Board nor any individual Manager shall be responsible or liable to the Company or any Member for any mistake, action, inaction, misconduct, negligence, fraud or bad faith on the part of any Person delivering such document, advice or opinion as provided in this Section 5.2 unless, with respect to an individual Manager only, such Manager had knowledge that such Person was acting unlawfully or engaging in fraud.
Section 5.3.Officers.
(a)Designation.  The Board, acting with Super-Majority Board Approval, may, from time to time, designate individuals (who need not be a Manager) to serve as officers of the Company.  The officers may, but need not, include a president and chief 
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executive officer, a chief operating officer, a treasurer, one or more vice presidents and a secretary.  Any two or more offices may be held by the same Person. 
(b)Duties of Officers.  Each officer of the Company designated hereunder shall devote such time to the Company’s business as he deems necessary to manage and supervise Company business and affairs in an efficient manner.
(i)The Chief Executive Officer, subject to the control and direction of the Board, shall in general supervise and control all of the business and affairs of the Company and perform all duties and exercise all powers usually appertaining to the office of the chief executive officer, subject to the provisions of applicable law and this Agreement.  The Chief Executive Officer may sign, with a secretary or any other proper officer of the Company thereunto authorized by the Board, any contracts or other instruments which the Board has authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated by the Board or by this Agreement to some other officer or agent of the Company, or shall be required by law to be otherwise signed and executed.  John D. Grier is the Chief Executive Officer of the Company as of the Effective Date.
(ii)The President shall assist in the supervision and control of the business and affairs of the Company in such manner as the Board shall determine.  The President may sign, with a secretary or any other proper officer of the Company thereunto authorized by the Board, any contracts or other instruments which the Board has authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated by the Board or by this Agreement to some other officer or agent of the Company, or shall be required by law to be otherwise signed and executed.  As between the Chief Executive Officer and President, the Chief Executive Officer shall be the more senior officer and the President shall perform the duties and exercise the powers of the Chief Executive Officer in the event of the Chief Executive Officer’s absence or disability, unless otherwise determined by the Chief Executive Officer or the Board.  Larry W. Alexander is the President of the Company as of the Effective Date.
(iii)The Chief Operating Officer, subject to the control and direction of the Board, shall in general supervise and control all of the business and affairs of the Company and perform all duties and exercise all powers usually appertaining to the office of the chief operating officer, subject to the provisions of applicable law and this Agreement.  The Chief Operating Officer may sign, with a secretary or any other proper officer of the Company thereunto authorized by the Board, any contracts or other instruments which the Board has authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated by the Board or by this Agreement to some other officer or agent of the Company, or shall be required by law to be otherwise signed and executed.  As between the Chief Executive Officer, the President and the Chief Operating Officer, the Chief Executive Officer and the President shall be the more senior 
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officers and the Chief Operating Officer shall perform the duties and exercise the powers of the Chief Executive Officer and/or the President in the event of the Chief Executive Officer’s and/or the President’s absence or disability, unless otherwise determined by the Chief Executive Officer, the President or the Board.  Larry W. Alexander is the Chief Operating Officer of the Company as of the Effective Date.
(iv)The Vice Presidents (if any) shall perform such duties and exercise the powers as the Chief Executive Officer or the President may assign or delegate to them from time to time.
(v)The Secretary (if any) shall keep and account for all books, documents, papers and records of the Company except those for which some other officer or agent is properly accountable; and have authority to attest to the signatures of the Chief Executive Officer, the President, the Chief Operating Officer or the Vice Presidents and shall generally perform all duties usually appertaining to the office of secretary of a corporation.  Robert Waldron is the Secretary of the Company as of the Effective Date.
(vi)Any other officer appointed by the Board shall have such authority and responsibilities as the Board, the Chief Executive Officer, the President or the Chief Operating Officer may delegate to such officer from time to time.
(c)Term of Office; Removal; Filling of Vacancies.
(i)Each officer of the Company shall hold office until his successor is chosen and qualified in his stead or until his earlier death, resignation, retirement, disqualification or removal from office.
(ii)Any officer, other than the Chief Executive Officer, may be removed at any time by the Board, and the Chief Executive Officer may be removed at any time by the Board, acting with Super-Majority Board Approval, whenever in its judgment the best interests of the Company will be served thereby, subject to the terms of any employment agreement between the Company and such officer.  Designation of an officer shall not of itself create any contract rights in favor of such officer.
(iii)If the office of any officer becomes vacant for any reason, the vacancy may be filled by the Board, acting with Super-Majority Board Approval.
Section 5.4.Acknowledged and Permitted Activities.
(a)Crimson Member Activities.  The Company and the Members recognize that John D. Grier and his Affiliates own and will own substantial equity interests in those companies listed on Exhibit B that participate in the energy industry (“Grier 
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Companies”) and have entered and will enter into management services agreements with such Grier Companies.  The Company and the Members acknowledge and agree that:
(i)John D. Grier and his Affiliates (A) shall not be prohibited or otherwise restricted by their relationship with the Company and its Subsidiaries from engaging in the business of operating or investing in such Grier Companies, entering into agreements to provide services to such companies or acting as directors or advisors to, or other principals of, such Grier Companies, and (B) shall not have any obligation to offer the Company or its Subsidiaries any Designated Business Opportunity; provided, however, that in no event may any of the Grier Companies acquire a new business or expand its existing business to the extent such new or expanded business competes, directly or indirectly, with the business operated by the Company and its Subsidiaries and; provided, further, that, for the avoidance of doubt, nothing in this Agreement shall restrict the Grier Companies’ right to acquire, invest in, or otherwise pursue any Designated Business Opportunity; and
(ii)the Company and the Members hereby renounce any interest or expectancy in any Grier Companies or any Designated Business Opportunity pursued by John D. Grier and his Affiliates, and waive any claim that any such Designated Business Opportunity constitutes a corporate, partnership or other business opportunity of the Company or any of its Subsidiaries.
For the avoidance of doubt, nothing in this Section 5.4(b) shall be deemed to approve, on behalf of the Company or any of its Subsidiaries, any contract or agreement between the Company or any of its Subsidiaries on the one hand and any of the Grier Companies on the other hand.
Section 5.5.Tax Elections and Status.
(a)The Board shall make such tax elections on behalf of the Company as are necessary or appropriate in order to permit CORR to maintain its REIT status.
(b)The Members agree to classify the Company as a partnership for income tax purposes.  Therefore, any provision hereof to the contrary notwithstanding, solely for income tax purposes, each of the Members hereby recognizes that the Company, so long as it has at least two Members, shall be subject to all provisions of subchapter K of Chapter 1 of Subtitle A of the Code and, to the extent permitted by law, any comparable state or local income tax provisions.  Neither the Company, any Member, nor any Manager shall file an election to classify the Company as an association taxable as a corporation for income tax purposes.
(c)The Members agree that all decisions relating to the taxes and accounting of the Company shall be made in a manner so as not to negatively affect the ability of CORR to qualify as a real estate investment trust, as determined by the CORR Managers, in their reasonable discretion.
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Section 5.6.Tax Returns.  The Company shall deliver necessary tax information to each Member after the end of each fiscal year of the Company.  Not less than thirty (30) days prior to the date (as extended) on which the Company intends to file its federal income tax return or any state income tax return, the return proposed by the Board to be filed by the Company shall be furnished to the Members for review; provided, however, that an IRS Form K-1 or a good faith estimate of the amounts to be included on such IRS Form K-1 for each Member shall be sent to each Member on or before March 31 of each year.  In addition, not more than ten (10) days after the date on which the Company files its federal income tax return or any state income tax return, a copy of the return so filed shall be furnished to the Members.
Section 5.7.Tax Matters Member.  For all tax years ending on or before December 31, 2017, John D. Grier shall be the tax matters member under Code Section 6231 (in such capacity, the “Tax Matters Member”).  The Tax Matters Member may be removed and replaced by Super-Majority Board Approval at any time for any reason.  The Tax Matters Member is authorized to take such actions and to execute and file all statements and forms on behalf of the Company which may be permitted or required by the applicable provisions of the Code or Treasury Regulations issued thereunder.  The Tax Matters Member shall have full and exclusive power and authority on behalf of the Company to represent the Company (at the Company’s expense) in connection with all examinations of the Company’s affairs by tax authorities, including resulting administrative and judicial proceedings, and to expend Company funds for professional services and costs associated therewith.  The Tax Matters Member shall keep the Members informed as to the status of any audit of the Company’s tax affairs, and shall take such action as may be necessary to cause any Member so requesting to become a “notice partner” within the meaning of Code Section 6223.  Without first obtaining the Super-Majority Board Approval, the Tax Matters Member shall not, with respect to Company tax matters: (a) enter into a settlement agreement with respect to any tax matter that purports to bind Members, (b) intervene in any action pursuant to Code Section 6226(b)(5), (c) enter into an agreement extending the statute of limitations, or (d) file a petition pursuant to Code Section 6226(a) or 6228.  If an audit of any of the Company’s tax returns shall occur, the Tax Matters Member shall not settle or otherwise compromise assertions of the auditing agent which may be adverse to any Member as compared to the position taken on the Company’s tax returns without the prior written consent of each such affected Member.
Section 5.8.Budget Act.
(a)For all tax years beginning after December 31, 2017, the Members hereby designate CORR as the “partnership representative” as such term is defined in Section 6223(a) of the Code, as revised by the Bipartisan Budget Act of 2015, H.R. 1314 (the “Budget Act”) (the “Company Representative”).  The Company Representative may be removed and replaced by Super-Majority Board Approval at any time for any reason.  If the Company Representative is not a natural person, then an officer of the Company Representative shall be designated as the “designated individual” within the meaning of the Treasury Regulation Section 301.6223-1. For all tax years beginning after December 31, 2017, the Members shall continue to have all the rights that they had during all tax years ending on or before December 31, 2017 pursuant to Section 5.8, and the Company 
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Representative shall take any necessary action to ensure such rights to such Members.  The Company Representative shall give prompt written notice to each other Member (including a former Member) of any and all notices it receives from the Internal Revenue Service concerning the Company, including any notice of audit, any notice of action with respect to a revenue agent’s report, any notice of a thirty (30) day appeal letter, and any notice of a deficiency in Tax concerning the Company’s federal income tax return. Following commencement of any audit, examination, or proceeding that could result in an adjustment to the tax items recognized by any Member or any former Member (including as a result of having an impact on a subsequent year), the Company Representative shall keep each such Member or former Member reasonably and promptly informed of any significant matter, event, or proceeding in connection with such audit, examination, or proceeding (including periodic updates regarding the status of any negotiations between the Internal Revenue Service and the Company).  The Company Representative shall take no action without the authorization of the Board, other than such action as may be required by law.  Without the Super-Majority Board Approval, the Company Representative shall not extend the statute of limitations, file a request for administrative adjustment, file suit concerning any federal, state or local tax refund or deficiency relating to any Company administrative adjustment or enter into any settlement agreement relating to any Company item of income, gain, loss, deduction or credit for any fiscal year of the Company, or take any other material action relating to any federal, state or local tax proceeding involving the Company.  The Company shall reimburse the Company Representative for any reasonable out-of-pocket expenses that the Company Representative incurs in connection with its obligations as Company Representative.  In the event that the Board determines that the foregoing provisions are no longer applicable to the Company, either due to a change of controlling law or the enactment of applicable Treasury Regulations, the Board is authorized to take any reasonable actions as may be required concerning tax matters of the Company not otherwise addressed in this Article V.
(b)Notwithstanding the foregoing, to the extent that the revised partnership audit rules under the Budget Act are applicable to the Company (and, for avoidance of doubt, subject to and after application of paragraph (a)), in the event that there is a determination of an adjustment under Section 6225 of the Code, as amended by the Budget Act, affecting the Company, the Board shall determine the appropriate response, which may include (i) instructing all Members and former Members to file amended income tax returns so as to comply with Section 6225(c)(2)(A) of the Code, as amended by the Budget Act, in which case all Members agree to file the necessary amended returns, even if they are no longer Members, (ii) utilizing the alternative procedures under Code Section 6225(c)(2)(B), in which case all Members agree to comply with all applicable procedures, even if they are no longer Members, (iii) making an election under Section 6226(a) of the Code, as amended by the Budget Act, in which case all Members agree to report the appropriate adjustment as necessary, or (iv) causing the Company to pay the tax, interest and penalties, if any, imposed by Section 6225 of the Code, as amended by the Budget Act.
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(c)In the event of the filing of an amended tax return for the Company, due to circumstances described in paragraph (b) or otherwise, Capital Accounts shall be adjusted accordingly.  If an election is made under Section 6226(a) of the Code, as amended by the Budget Act, the amount of the adjustment taken into account by the Members shall be reflected in Capital Accounts shall be made accordingly.  If the determination of an adjustment under Section 6225 of the Code, as amended by the Budget Act, is an adjustment to the Members’ respective distributive shares of income, gain, loss, deduction or credit, and the alternative under paragraph (b)(iii) is selected, then the amount of taxes, but not interest or penalties, if any, paid by the Company shall be the “Tax Adjustment” and each Member whose taxes would have been increased or reduced if the Company had originally reported in accordance with the determination of adjustment shall be an “Adjusted Tax Member.”  Retroactively, the Company shall increase, by the amount of the Tax Adjustment, the amount that is deemed to have been distributed pursuant to Section 4.3(b) to each Adjusted Tax Member whose taxes would have been increased if the Company had originally reported in accordance with the determination of adjustment, and the Company shall reduce, by the amount of the Tax Adjustment, the amount that is deemed to have been distributed pursuant to Section 4.3(b) to each Adjusted Tax Member whose taxes would have been reduced if the Company had originally reported in accordance with the determination of adjustment.  Finally, the Members’ distributive shares of income, gain, loss, deduction and credit for the year in which the determination of an adjustment under Section 6225 of the Code, as amended by the Budget Act, is effective and all future years shall be adjusted as appropriate. 
(d)In any case in which the Company Representative considers any decision involving any proposed or possible settlement with a taxing authority that involves both issues principally or disproportionately affecting the Company Representative and other issues principally or disproportionately affecting other partners, the Company Representative shall not engage in self-dealing.
(e)If a taxing authority proposes adjustments affecting a substantial number of former Members of the Company and such adjustments appear to have a low likelihood of prevailing on the merits (as reasonably determined by the Company Representative), the Company Representative shall use Company resources to contest such proposed adjustments to the same extent that the Company Representative would do so, exercising reasonable business judgment, if such former Members were current Members to whom the cost of contesting such proposed adjustments were to be allocated. In addition, specific agreements may be made by the Company or the Company Representative and Members regarding the treatment of issues of special concern to any Members selling, liquidating, or reducing their interests.
(f)In any case in which the previous subsection or any other provision does not result in a decision to use Company resources, the Company Representative shall endeavor to offer affected Members the opportunity to fund and direct efforts of the Company Representative to contest a proposed adjustment, and the Company 
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Representative shall have the authority (to the extent permitted by applicable tax law and IRS procedures) to concede or compromise any issue with respect to any direct or indirect current or former Members not willing to bear their reasonably determined share of the costs of continuing a controversy concerning a proposed adjustment.
Section 5.9.Budgets. For each fiscal year commencing with the fiscal year commencing January 1, 2021, the Budgeted Expenses to be made by the Company and any of its Subsidiaries for such fiscal year shall be set forth in a proposed line-item budget (a “Draft Budget”) which shall be adopted by the Board, acting with Super-Majority Board Approval (as adopted, an “Approved Budget”). Each Draft Budget shall be prepared and approved or disapproved by the Board, acting with Super-Majority Board Approval, as follows:
(a)The Company shall prepare and submit for approval by the Board, acting with Super-Majority Board Approval, a Draft Budget estimating the Budgeted Expenses to be incurred during the next succeeding fiscal year by the Company and/or any of its Subsidiaries. The Draft Budget shall itemize the costs estimated in the Approved Budget by such individual line items as are reasonably requested by the Managers. The Company shall submit a Draft Budget no later than sixty (60) days prior to the commencement of the applicable fiscal year. The officers of the Company shall be required to cooperate and meet with the Board concerning the Draft Budget and make changes as requested by the Board.
(b)The Board, acting with Super-Majority Board Approval, shall approve or disapprove such annual expenditures no later than thirty (30) days prior to the beginning of the next succeeding fiscal year. If the Board, acting with Super-Majority Board Approval, has failed to approve a Draft Budget by the commencement of a fiscal year, then until a Draft Budget is approved, the Company is authorized to incur (i) costs and expenses incurred in the ordinary course of business in amounts materially consistent with the prior year’s Approved Budget, (ii) costs and expenses to the extent incurred pursuant to the existing contractual obligations of the Company and its Subsidiaries and (iii) such other costs and expenses approved as expressly contemplated by this Agreement.
Article VI.INDEMNIFICATION 
Section 6.1.General.  Subject to the limitations and conditions provided herein and to the fullest extent permitted by applicable laws, each Person who was or is made a party or is threatened to be made a party to or is involved in any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative, arbitrative or investigative (hereinafter a “Proceeding”), or any appeal in such a Proceeding or any inquiry or investigation that could lead to such a Proceeding, by reason of the fact that he or she, or a Person of whom he or she is the legal representative, is or was a Member of the Company or Affiliate thereof or any of their respective representatives, a Manager, a member of a committee of the Company, the Tax Matters Member, the Company Representative or an officer of the Company, or while such a Person is or was serving at the request of the Company as a director, officer, partner, venturer, member, trustee, employee, agent or similar functionary of another foreign or domestic general 
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partnership, corporation, limited partnership, joint venture, limited liability company, trust, employee benefit plan or other enterprise (each an “Indemnitee”), shall be indemnified by the Company to the extent such Proceeding or other above-described process relates to any such above-described relationships with, status with respect to, or representation of any such Person to the fullest extent permitted by the Act, as the same exists or may hereinafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits the Company to provide broader indemnification rights than said laws permitted the Company to provide prior to such amendment) against judgments, penalties (including excise and similar taxes and punitive damages), fines, settlements and reasonable expenses (including attorneys’ and experts’ fees) actually incurred by such Person in connection with such Proceeding, and indemnification under this Section 6.1 shall continue as to a Person who has ceased to serve in the capacity that initially entitled such Person to indemnity hereunder for any and all liabilities and damages related to and arising from such Person’s activities while acting in such capacity; provided, however, that no Person shall be entitled to indemnification under this Section 6.1 if there has been a final and non-appealable judgment entered by a court of competent jurisdiction determining that, in respect of the matter for which such Person is seeking indemnification pursuant to this Section 6.1 such Person’s actions or omissions constituted an intentional breach of this Agreement or gross negligence or willful misconduct on the part of such Person or, in the case of a criminal matter, acted with knowledge that the Indemnitee’s conduct was unlawful.  Any indemnification pursuant to this Section 6.1 shall be made only out of the assets of the Company, it being agreed that the Members shall not be personally liable for such indemnification and shall have no obligation to contribute or loan any monies or property to the Company to enable it to effectuate such indemnification. The rights granted pursuant to this Section 6.1 shall be deemed contract rights, and no amendment, modification or repeal of this Section 6.1 shall have the effect of limiting or denying any such rights with respect to actions taken or Proceedings arising prior to any such amendment, modification or repeal.  An Indemnitee shall not be denied indemnification in whole or in part under this Section 6.1 because the Indemnitee had an interest in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted by the terms of this Agreement.  IT IS ACKNOWLEDGED THAT THE INDEMNIFICATION PROVIDED IN THIS SECTION 6.1 COULD INVOLVE INDEMNIFICATION FOR NEGLIGENCE OR UNDER THEORIES OF STRICT LIABILITY.  For purposes of this Article VI, “officers of the Company” shall include, without limitation, the Company’s and each of its Subsidiaries’ Chief Executive Officer, Chief Operating Officer, President, any Vice President, Treasurer and Secretary.
Section 6.2.Indemnification of Officers, Employees (if any) and Agent.  The Company may indemnify and advance expenses to Persons who are not entitled to indemnification under Section 6.1, including current and former employees (if any) or agents of the Company, and those Persons who are or were serving at the request of the Company as a manager, director, officer, partner, venturer, member, trustee, employee (if any), agent or similar functionary of another foreign or domestic general partnership, corporation, limited partnership, joint venture, limited liability company, trust, employee (if any) benefit plan or other enterprise against any liability asserted against such Person and incurred by such Person in such a capacity or arising out of his status as such a Person to the same extent that it may indemnify and advance expenses to a Member under this Article VI. 
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Section 6.3.Non-exclusivity of Rights; Insurance.  The right to indemnification and the advancement and payment of expenses conferred in Article VI shall not be exclusive of any other right that a Person indemnified pursuant to Section 6.1 or Section 6.2 may have or hereafter acquire under any laws, this Agreement, or any other agreement, vote of Members or otherwise.  The Company may purchase and maintain (or may reimburse an Indemnitee for the cost of) insurance, on behalf of an Indemnitee as the Board shall determine, against any liability that may be asserted against, or expense that may be incurred by, such Indemnitee in connection with the Company’s activities or such Indemnitee’s activities on behalf of the Company, regardless of whether the Company would have the power to indemnify such Indemnitee against such liability under the provisions of this Agreement.
Section 6.4.Savings Clause.  If Article VI or any portion thereof shall be invalidated on any ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify and hold harmless any Person entitled to be indemnified pursuant to Article VI as to costs, charges and expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement with respect to any action, suit or proceeding, whether civil, criminal, administrative or investigative to the full extent permitted by any applicable portion of this Article VI that shall not have been invalidated and to the fullest extent permitted by laws. 
Section 6.5.Scope of Indemnity.  For the purposes of Article VI, references to the “Company” include all constituent entities, whether corporations or otherwise, absorbed in a consolidation or merger as well as the resulting or surviving entity.  Thus, any Person entitled to be indemnified or receive advances under Article VI shall stand in the same position under the provisions of Article VI with respect to the resulting or surviving entity as he would have if such merger, consolidation, or other reorganization never occurred.
Section 6.6.Other Indemnities.  The Company acknowledges that certain Indemnitees may have rights to indemnification, advancement of expenses and/or insurance provided by Persons other than the Company.  The Company acknowledges and agrees that the obligation of the Company under this Agreement to indemnify or advance expenses to any Indemnitee for the matters covered thereby shall be the primary source of indemnification and advancement of such Indemnitee in connection therewith and any right on the part of any Indemnitee under any other agreement to be indemnified or have expenses advanced to such Indemnitee shall be secondary to the Company’s obligation and shall be reduced by any amount that the Indemnitee may collect as indemnification or advancement from the Company.  If the Company fails to indemnify or advance expenses to an Indemnitee as required or contemplated by this Agreement, and any Person makes any payment to such Indemnitee in respect of indemnification or advancement of expenses under any other agreement pursuant to which such Person is entitled to indemnification on account of such unpaid indemnity amounts, such other Person shall be subrogated to the rights of such Indemnitee under this Agreement in respect of such unpaid indemnity amounts.
Section 6.7.Replacement of Fiduciary Duties.  Notwithstanding any other provision of this Agreement, to the extent that any provision of this Agreement purports or is interpreted (a) to have the effect of replacing, restricting or eliminating the duties that might otherwise, as a 
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result of Delaware or other applicable law, be owed by the Board or any other Indemnitee to the Company, the Members, any other Person who acquires an interest in a Company Interest or any other Person who is bound by this Agreement or (b) to constitute a waiver or consent by the Company, the Members, any other Person who acquires an interest in a Company Interest or any other Person who is bound by this Agreement to any such replacement or restriction, such provision shall be deemed to have been approved by the Company, all of the Members, each other Person who acquires an interest in a Company Interest and each other Person who is bound by this Agreement.
Section 6.8.Liability of Indemnitees.
(a)Notwithstanding anything to the contrary set forth in this Agreement, no Indemnitee shall be liable for monetary damages to the Company, the Members, any other Person who acquires an interest in a Company Interest or any other Person who is bound by this Agreement, for losses sustained or liabilities incurred as a result of any act or omission of an Indemnitee unless there has been a final and non-appealable judgment entered by a court of competent jurisdiction determining that, in respect of the matter in question, the Indemnitee acted in bad faith or in the case of a criminal matter, acted with knowledge that the Indemnitee’s conduct was criminal.  The Members, any other Person who acquires an interest in a Company Interest or any other Person who is bound by this Agreement, each on their own behalf and on behalf of the Company, waives any and all rights to claim punitive damages or damages based upon the federal or state income taxes paid or payable by any such Member or other Person.
(b)The Board may exercise any of the powers granted to it by this Agreement and perform any of the duties imposed upon it hereunder either directly or by or through its agent or agents, and the Board shall not be responsible for any misconduct or negligence on the part of any such agent appointed by the Board in good faith.
(c)To the extent that, at law or in equity, an Indemnitee has duties (including fiduciary duties) and liabilities relating thereto to the Company, the Members, any Person who acquires an interest in a Company Interest or any other Person who is bound by this Agreement, any Indemnitee acting in connection with the Company’s business or affairs shall not be liable, to the fullest extent permitted by law, to the Company, to any Member, to any other Person who acquires an interest in a Company Interest or to any other Person who is bound by this Agreement for its reliance on the provisions of this Agreement.
(d)Any amendment, modification or repeal of this Agreement or any provision hereof shall be prospective only and shall not in any way affect the limitations on the liability of the Indemnitees under this Agreement as in effect immediately prior to such amendment, modification or repeal with respect to claims arising from or relating to matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when such claims may arise or be asserted.
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Section 6.9.Standards of Conduct and Modification of Duties. 
(a)Whenever the Board or the Managers make a determination or take or decline to take any other action, whether under this Agreement or any other agreement contemplated hereby or otherwise, then, unless another express standard is expressly provided for in this Agreement, the Board or the Managers (as the case may be) shall make such determination or take or decline to take such other action in good faith and shall not be subject to any higher standard contemplated hereby or under the Act or any other applicable law or at equity.  A determination, other action or failure to act by the Board or the Managers (as the case may be) will be deemed to be in good faith unless the Board or the Managers (as the case may be) believed such determination, other action or failure to act was adverse to the interests of the Company.  In any proceeding brought by the Company, any Member or any Person who acquires an interest in a Company Interest or any other Person who is bound by this Agreement challenging such action, determination or failure to act, the Person bringing or prosecuting such proceeding shall have the burden of proving that such determination, action or failure to act was not in good faith.
(b)To the extent that, at law or in equity, a Member owes any duties (including fiduciary duties) to the Company, any other Member or other holder of Company Interests or any other Person pursuant to applicable laws or this Agreement such duty is hereby eliminated to the fullest extent permitted pursuant to applicable law, it being the intent of the Members that to the extent permitted by applicable law and except to the extent another express standard is specified elsewhere in this Agreement, no Member shall owe any duties of any nature whatsoever to the Company, the other Members or any other holder of Company Interests or any other Person, other than the duty of good faith and fair dealing, and each Member may decide or determine any matter in its sole and absolute discretion taking into account solely its interests and those of its Affiliates (excluding the Company and its Subsidiaries) subject to the duty of good faith and fair dealing.  Except with respect to the express obligations set forth in this Agreement or any other agreement to which any Member is a party, to the maximum extent permitted by applicable law, the Company and each Member hereby waives any claim or cause of action against, and hereby eliminate all liabilities of, each Member, solely in its capacity as a Member, for any breach of any duty (including fiduciary duties) to the Company, the other Members or any other holder of Company Interests or any other Person.  Nothing herein is intended to create a partnership, joint venture, agency or other relationship creating fiduciary or quasi-fiduciary duties or similar duties or obligations, otherwise subject the Members to joint and several liability or vicarious liability or to impose any duty, obligation or liability that would arise therefrom with respect to any or all of the Members or the Company.
Article VII.RIGHTS OF MEMBERS
Section 7.1.General.  Each of the Members shall have the right to: (a) have the Company books and records (including those required under the Act) kept at the principal United 
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States office of the Company and at all reasonable times to inspect and copy any of them at the sole expense of such Member; (b) have on demand true and full information of all things affecting the Company and a formal account of Company affairs whenever circumstances render it just and reasonable; (c) have dissolution and winding up of the Company by decree of court as provided for in the Act; and (d) exercise all rights of a Member under the Act (except to the extent otherwise specifically provided herein).  Notwithstanding the foregoing, the Members shall not have the right to receive data pertaining to the assets or business of the Company if the Company is subject to a valid agreement prohibiting the distribution of such data or if the Board shall otherwise determine that such data is Confidential Information.
Section 7.2.Limitations on Members.  No Member (in his, her or its capacity as a Member) shall (a) be permitted to take part in the business or control of the business or affairs of the Company; (b) have any voice in the management or operation of any Company property; (c) have the authority or power to act as agent for or on behalf of the Company or any other Member, to do any act which would be binding on the Company or any other Member, or to incur any expenditures on behalf of or with respect to the Company; or (d) hold out or represent to any third party that the Members have any such power or right or that the Members are anything other than “members” of the Company.  The foregoing provision shall not be applicable to a Member acting in his or its capacity as a Manager or an officer of the Company.
Section 7.3.Liability of Members.  No Member shall be liable for the debts, liabilities, contracts or other obligations of the Company except as otherwise provided in the Act or as expressly provided in this Agreement.
Section 7.4.Withdrawal and Return of Capital Contributions.  No Member shall be entitled to (a) withdraw from the Company except upon the assignment by such Member of all of its Company Interest in accordance with Article X, or (b) the return of its Capital Contributions except to the extent, if any, that distributions made pursuant to the express terms of this Agreement may be considered as such by law or upon dissolution and liquidation of the Company, and then only to the extent expressly provided for in this Agreement and as permitted by law.
Section 7.5.Voting Rights.
(a)Except as otherwise provided herein, to the extent that the vote of the Members may be required hereunder, a written consent executed by a Majority Interest shall be an act of the Members.
(b)M. Bridget Grier hereby grants to John D. Grier a proxy to vote her Company Interest on all matters that might be presented to the Members from time to time for their vote at a meeting or action by consent in lieu thereof.  Such proxy shall be irrevocable.
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Article VIII.BOOKS, REPORTS, MEETINGS AND CONFIDENTIALITY
Section 8.1.Capital Accounts, Books and Records.
(a)The Company shall keep books of account for the Company in accordance with the terms of this Agreement.  Such books shall be maintained at the principal office of the Company.
(b)An individual capital account (the “Capital Account”) shall be maintained by the Company for each Member as provided below:
(i)The Capital Account of each Member shall, except as otherwise provided herein, be increased by the amount of cash and the Fair Market Value of any property contributed to the Company by such Member (net of liabilities secured by such contributed property that the Company is considered to assume or take subject to under Section 752 of the Code) and by such Member’s share of the Net Profits of the Company and special allocations of income or gain under Section 4.2, and shall be decreased by such Member’s share of the Net Losses of the Company and special allocations of deductions of loss under Section 4.2 and by the amount of cash or the Fair Market Value of any property distributed to such Member (net of liabilities secured by such distributed property that such Member is considered to assume or take subject to under Code Section 752).  The Capital Accounts shall also be increased or decreased (A) to reflect a revaluation of Company property pursuant to paragraph (b) of the definition of Carrying Value and (B) upon the exercise of any non-compensatory warrant pursuant to the requirements of Treasury Regulations Sections 1.704-1(b)(2)(iv)(d)(4) and 1.704-1(b)(2)(iv)(s), as such Treasury Regulations may be amended or modified.
(ii)Any adjustments of basis of Company property provided for under Code Sections 734 and 743 and comparable provisions of state law (resulting from an election under Code Section 754 or comparable provisions of state law) shall not affect the Capital Accounts of the Members (unless otherwise required by applicable Treasury Regulations), and the Members’ Capital Accounts shall be debited or credited pursuant to the terms of this Section 8.1 as if no such election had been made.
(iii)Capital Accounts shall be adjusted, in a manner consistent with this Section 8.1, to reflect any adjustments in items of Company income, gain, loss or deduction that result from amended returns filed by the Company or pursuant to an agreement by the Company with the Internal Revenue Service or a final court decision.
(iv)It is the intention of the Members that the Capital Accounts of each Member be kept in the manner required under Treasury Regulations Section 1.704-1(b)(2)(iv).  To the extent any additional adjustment to the Capital 
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Accounts is required by such regulation, the Board is hereby authorized to make such adjustment after notice to the Members.
(v)The Board, by Super-Majority Board Approval, shall have the discretion to adjust the Members’ Capital Accounts to reflect a revaluation of the Company’s properties on its books upon the occurrence of an event specified in Treasury Regulations Section 1.704-1(b)(2)(iv)(f).  If the Board, by Super-Majority Board Approval, makes a determination that any such adjustment is appropriate, the Capital Accounts of all Members and the Carrying Values of all Company properties shall, immediately prior to such event, be adjusted upward or downward to reflect any Unrealized Gain or Unrealized Loss attributable to the Company properties, as if such Unrealized Gain or Unrealized Loss had been recognized on an actual Transfer of each such property immediately prior to such event for an amount equal to its Fair Market Value and had been allocated to the Members at such time pursuant to Section 4.1 and Section 4.2.
(vi)Any Person who acquires a Company Interest directly from a Member, or whose Company Interest shall be increased by means of a Transfer to it of all or part of the Company Interest of another Member, shall have a Capital Account (including a credit for all Capital Contributions made by such Member Transferring such Company Interest) which includes the Capital Account balance of the Company Interest or portion thereof so acquired or Transferred.
Section 8.2.Bank Accounts.  The Board shall cause one or more Company accounts to be maintained in a bank (or banks) which is a member of the Federal Deposit Insurance Corporation or some other financial institution, which accounts shall be used for the payment of the expenditures incurred by the Company in connection with the business of the Company, and in which shall be deposited any and all receipts of the Company.  The Board shall determine the number of and the Persons who will be authorized as signatories on each such bank account.  The Company may invest the Company funds in such money market accounts or other investments as the Board may select.
Section 8.3.Reports.
(a)The Company shall provide to each Member the following reports in addition to any other reports or information reasonably requested by a Member:
(i)as soon as available, and in any event within five (5) Business Days of quarter end and seven (7) Business Days of year end, a pre-tax trial balance and pre-tax financial statements for the respective period;
(ii)as soon as available, and in any event within ten (10) Business Days of quarter end and eleven (11) Business Days of year end, an after-tax trial balance and after-tax financial statements for the respective period;
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(iii)as soon as available, and in any event within forty-five (45) days (or such later date as approved in writing by CORR) of the Company’s year-end, audited consolidated financial statements of the Company as at the end of each such fiscal year and audited consolidated statements of income, cash flows and Members’ equity for such fiscal year, in each case setting forth in comparative form the figures for the previous fiscal year, accompanied by the certification of independent certified public accountants of recognized national standing, certifying to the effect that, except as set forth therein, such financial statements have been prepared in accordance with GAAP, applied on a basis consistent with prior years, and fairly present in all material respects the financial condition of the Company as of the dates thereof and the results of their operations and changes in their cash flows and Members’ equity for the periods covered thereby, and a schedule showing any variance between actual and budgeted figures (as set forth on the Approved Budget);
(iv)as soon as available, and in any event within ten (10) Business Days of the end of any fiscal quarter, quarterly unaudited consolidated financial statements of the Company for the previous quarter, including unaudited consolidated balance sheets of the Company as at the end of each such fiscal quarter and for the current fiscal year to date and unaudited consolidated statements of income, cash flows and Members’ equity for such fiscal quarter and for the current fiscal year to date, in each case setting forth in comparative form the figures for the corresponding periods of the previous fiscal quarter, all in reasonable detail and all prepared in accordance with GAAP, consistently applied (subject to normal year-end audit adjustments and the absence of notes thereto), and certified by the principal financial or accounting officer of the Company, and a schedule showing any variance between actual and budgeted figures (as set forth on the Approved Budget);
(v)as soon as available, and in any event within ten (10) days of the end of each month, unaudited monthly financial statements of the Company, including unaudited consolidated balance sheets of the Company as at the end of each such monthly period and for the current fiscal year to date and unaudited consolidated statements of income, cash flows and Members’ equity for each such monthly period and for the current fiscal year to date, all in reasonable detail and all prepared in accordance with GAAP, consistently applied (subject to normal year-end audit adjustments and the absence of notes thereto) and business summary reports;
(vi)promptly upon request, copies of any Approved Budget (and any Draft Budgets);
(vii)prompt notice of any event that would reasonably be expected to have a material effect on the Company’s financial condition, business or operations, including any statements from the Company’s independent 
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accountants in respect of the Company’s status as a going concern, service of any material lawsuit on the Company or notice of material violations of any material law or regulation;
(viii)concurrently with delivery to any lender (or agent thereof) of the Company or any of its Subsidiaries, any report or document to be delivered to such lender or agent pursuant to the terms of any credit or other financing agreement of the Company or any of its Subsidiaries; and
(ix)any material reports prepared by or on behalf of the Company with respect to matters relating to asset maintenance and/or asset integrity.
(b)In addition to Section 8.3(a) and notwithstanding anything to the contrary therein, in order to enable CORR to comply with reporting requirements in filings to be made with the Securities and Exchange Commission, the Company shall:
(i)submit a reporting package to assist with the preparation of CORR’s SEC reporting obligations, including statements of member’s equity and cash flows and certain disclosure items, within eleven (11) Business Days of quarter end and fourteen (14) Business Days of year end;
(ii)submit quarterly and year to date analytics comparing current quarter and year to date periods to prior year quarter and year to date periods to assist with preparation of management’s discussion and analysis in CORR’s SEC filings within twelve (12) Business Days of quarter end and sixteen (16) Business Days of year end;
(iii)design and maintain internal controls providing for (1) reasonable assurance regarding the reliability of the Company’s financial reporting, including the presentation of the Company’s financial statements in accordance with GAAP and (2) the safeguarding of the Company’s assets;
(iv)to the extent that CORR’s obligations to maintain effective internal control over financial reporting pursuant to applicable laws and regulations (including those promulgated by the Securities and Exchange Commission) require  the Company to comply with such laws and regulations, including, but not limited to, the determination by CORR that CORR must consolidate the Company under GAAP, ensure that its internal controls comply with the laws, regulations, and control framework applicable to CORR;
(v)if CORR has advised the Company in writing that CORR is required to file an Auditor’s Report with respect to the Company’s financial information delivered under Section 8.3(b)(ii), in filings to be made by CORR with the Securities and Exchange Commission, cause its auditor to provide the Auditor’s Report; and
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(vi)afford CORR and its outside legal and accounting representatives access to (a) the Company’s properties, offices, and other facilities; (b) the corporate, financial and similar records, reports and documents of the Company, including all books and records, minutes of proceedings, internal management documents, reports of operations, reports of adverse developments, copies of any management letters and communications with Members, and to permit CORR and its representatives to examine such documents and make copies thereof or extracts therefrom; and (c) any officers, senior employees and accountants of the Company, and to afford each Member and its representatives the opportunity to discuss and advise on the affairs, finances and accounts of the Company with such officers, senior employees and accountants (and the Company hereby authorizes such employees and accountants to discuss with CORR and its representatives such affairs, finances and accounts).
(c)Financial statements, reports and other information required or permitted to be furnished by the Company pursuant to Section 8.3(a) above may be submitted by the Company by email addressed to CORR.
Section 8.4.Meetings of Members.  The Board may hold meetings of the Members from time to time to inform and consult with the Members concerning the Company’s assets and such other matters as the Board deems appropriate; provided, that nothing in this Section 8.4 shall require the Board to hold any such meetings.  Such meetings shall be held at such times and places, as often and in such manner as shall be determined by the Board.  The Board at its election may separately inform and consult with the Members for the above purposes without the necessity of calling and/or holding a meeting of the Members.  Notwithstanding the foregoing provisions of this Section 8.4, the Members shall not be permitted to take part in the business or control of the business of the Company; it being the intention of the parties that the involvement of the Members as contemplated in this Section 8.4 is for the purpose of informing the Members with respect to various Company matters, explaining any information furnished to the Members in connection therewith, answering any questions the Members may have with respect thereto and receiving any ideas or suggestions the Members may have with respect thereto; it being the further intention of the parties that the Board shall have full and exclusive power and authority on behalf of the Company to acquire, manage, control and administer the assets, business and affairs of the Company in accordance with Section 5.1 and the other applicable provisions of this Agreement.
Section 8.5.Confidentiality.  The Members acknowledge that they and their respective appointed Managers shall receive information from or regarding the Company and its Subsidiaries in the nature of trade secrets or that otherwise is confidential information or proprietary information (as further defined below in this Section 8.5, “Confidential Information”), the release of which would be damaging to the Company or Persons with which the Company conducts business.  Each Member shall hold in strict confidence, and shall require that such Member’s appointed Managers hold in strict confidence, any Confidential Information that such Member or such Member’s appointed Managers receives, and each Member shall not, and each Member shall require that such Member’s appointed Managers agree not to, disclose 
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such Confidential Information to any Person (including any Affiliates) other than another Member, Manager or officer of the Company, or otherwise use such information for any purpose other than to evaluate, analyze, and keep apprised of the Company’s assets and its interest therein and for the internal use thereof by a Member or its Affiliates, except for disclosures: (a) to comply with any laws; provided, that a Member or Manager must notify the Company promptly of any disclosure of Confidential Information that is required by law, and any such disclosure of Confidential Information shall be to the minimum extent required by law; (b) to Affiliates, partners, members, stockholders, investors, directors, officers, employees, agents, attorneys, consultants, lenders, underwriters, professional advisers or representatives of the Member or Manager or their Affiliates (provided, that such Member or Manager shall be responsible for assuring such partners’, members’, stockholders’, investors’, directors’, officers’, employees’, agents’, attorneys’, consultants’, lenders’, professional advisers’ and representatives’ compliance with the terms hereof, except to the extent any such Person who is not a partner, member, stockholder, director, officer or employee has agreed in writing addressed to the Company to be bound by customary undertakings with respect to confidential and proprietary information substantially similar to this Section 8.5), or to Persons to which that Member’s Company Interest may be Transferred as permitted by this Agreement, but only if the recipients of such information have agreed to be bound by customary confidentiality undertakings substantially similar to this Section 8.5; (c) of information that a Member also has received from a source independent of the Company and that such Member reasonably believes such source obtained without breach of any obligation of confidentiality to the Company; (d) of information obtained prior to the formation of the Company; provided, that this clause (d) shall not relieve any Member or any of its Affiliates from any obligations it may have to any other Member or any of its Affiliates under any existing confidentiality agreement; (e) that have been or become independently developed by a Member, a Manager or its Affiliates or on their behalf without using any of the Confidential Information; (f) that are or become generally available to the public (other than as a result of a prohibited disclosure by such Member or Manager or its representatives); (g) in connection with any proposed Transfer of all or part of a Company Interest of a Member, or of working interests or other assets received in accordance with this Section 8.5, or the proposed sale of all or substantially all of a Member or its direct or indirect parent, to advisers or representatives of the Member, its direct or indirect parent or Persons to which such interest may be Transferred as permitted by this Agreement, but only if the recipients of such information have agreed to be bound by customary undertakings with respect to confidential and proprietary information similar to this Section 8.5; (h) by CORR to the extent necessary or appropriate pursuant to the provisions of the federal securities laws or the rules or regulations promulgated thereunder (including applicable stock exchange or quotation system requirements); or (i) to the extent the Company shall have consented to such disclosure in writing.  The Members agree that breach of the provisions of this Section 8.5 by such Member or such Member’s appointed Managers would cause irreparable injury to the Company for which monetary damages (or other remedy at law) would be inadequate in view of (i) the complexities and uncertainties in measuring the actual damages that would be sustained by reason of the failure of a Member or Manager to comply with such provisions and (ii) the uniqueness of the Company’s business and the confidential nature of the Confidential Information.  Accordingly, the Members agree that the provisions of this Section 8.5 may be enforced by the Company (or any Member on behalf of the Company) by temporary or permanent injunction (without the need 
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to post bond or other security therefor), specific performance or other equitable remedy and by any other rights or remedies that may be available at law or in equity.  The term “Confidential Information” shall include any information pertaining to the identity of the Members and the Company’s (or any of its Subsidiaries’) business that is not available to the public, whether written, oral, electronic, visual form or in any other media, including such information that is proprietary, confidential or concerning the Company’s (or any of its Subsidiaries’) ownership and operation of their respective assets or related matters, including any actual or proposed operations or development project or strategies, other operations and business plans, actual or projected revenues and expenses, finances, contracts and books and records.  
Article IX.DISSOLUTION, LIQUIDATION AND TERMINATION
Section 9.1.Dissolution.  The Company shall be dissolved upon the occurrence of any of the following:
(a)The sale, disposition or termination of all or substantially all of the property then owned by the Company; or
(b)Super-Majority Board Approval.
Section 9.2.Liquidation and Termination.  Upon dissolution of the Company, the Board or, if the Board so desires, a Person selected by the Board, shall act as liquidator or shall appoint one or more liquidators who shall have full authority to wind up the affairs of the Company and make final distribution as provided herein.  The liquidator shall continue to operate the Company properties with all of the power and authority of the Board.  The steps to be accomplished by the liquidator are as follows:
(a)As promptly as possible after dissolution and again after final liquidation, the liquidator, if requested by any Member, shall cause a proper accounting to be made by the Company’s independent accountants of the Company’s assets, liabilities and operations through the last day of the month in which the dissolution occurs or the final liquidation is completed, as appropriate.
(b)In no event will any liquidation occur before receipt of the CPUC Approval.  Following the occurrence of either of the events specified in Section 9.1 above, and the receipt of any approval required by the CORR stockholders, immediately prior to liquidation of the Company, the following shall occur:
(i)each Class A-1 Unit will be exchanged for a number of depositary shares representing CORR Series A Preferred Stock, using the Forced Exchange Rate (as that term is defined in the Stock Exchange Agreement); 
(ii)each Class A-2 Unit will be exchanged for a share of CORR Series B Preferred Stock, unless the Mandatory Conversion, as that term is defined in Articles Supplementary for such Series B Preferred Stock, has occurred, in which case each Class A-2 Unit will be exchanged for a number of shares of CORR 
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Class B Common Stock pursuant to the Mandatory Conversion provisions set forth in the Articles Supplementary for such Series B Preferred Stock; and
(iii)each Class A-3 Unit will be exchanged for a share of CORR Class B Common Stock.
In order to process such exchange, the Grier Members shall submit such written representations, investment letters, legal opinions or other instruments necessary, in CORR’s reasonable discretion, to effect compliance with the Securities Act of 1933, as amended (the “Securities Act”) and all relevant state securities or “blue sky” laws.  The CORR Securities shall be delivered by CORR as duly authorized, validly issued, fully paid and non-assessable shares of CORR Securities, free of any pledge, lien, encumbrance or restriction, other than any ownership limits set forth in the charter of CORR, the Securities Act and relevant state securities or “blue sky” laws.  Neither any Grier Member nor any other interested Person shall have any right to require or cause CORR to register, qualify or list any CORR Securities owned or held by such Person, whether or not such CORR Securities are issued pursuant to this Section 9.2(b), with the SEC, with any state securities commissioner, department or agency, under the Securities Act or the Exchange Act or with any stock exchange, except as otherwise explicitly provided in a separate written registration rights agreement. CORR Securities issued pursuant to this Section 9.2(b) may contain such legends regarding restrictions under the Securities Act and applicable state securities laws as CORR determines to be necessary or advisable in order to ensure compliance with such laws.  Upon the closing of the exchange of CORR Securities pursuant to this Section 9.2(b), the Company shall distribute an amount equal to the excess of (x) the Class A-1 Members’ Preferred Return Per Class A-1 Unit with respect to Class A-1 Units being exchanged over the aggregate amount previously distributed with respect to such Class A-1 Units pursuant to Section 4.3(b)(i) through the date of exchange, (y) the Class A-2 Members’ Preferred Return Per Class A-2 Unit with respect to Class A-2 Units being exchanged over the aggregate amount previously distributed with respect to such Class A-2 Units pursuant to Section 4.3(b)(ii) through the date of exchange, while taking into account any additional Class A-2 Units issued as Paid-in-Kind Distribution in accordance with Section 4.3(e) above, and (z) the Class A-3 Members’ Preferred Return Per Class A-3 Unit with respect to Class A-3 Units being exchanged over the aggregate amount previously distributed with respect to such Class A-3 Units pursuant to Section 4.3(b)(iii) through the date of exchange.
(c)Thereafter, the liquidator shall pay all of the debts and liabilities of the Company (including all expenses incurred in liquidation) or otherwise make adequate provision therefor (including the establishment of a cash escrow fund for contingent liabilities in such amount and for such term as the liquidator may reasonably determine).  After making payment or provision for all debts and liabilities of the Company, the liquidator shall sell all properties and assets of the Company for cash as promptly as is 
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consistent with obtaining the best price and terms therefor; provided, however, that upon Super-Majority Board Approval, the liquidator may distribute one or more properties in kind.  All Net Profit and Net Loss (or other items of income, gain loss or deduction allocable under Section 4.2) realized on such sales shall be allocated to the Members in accordance with Section 4.1(a) and Section 4.2 of this Agreement, and the Capital Accounts of the Members shall be adjusted accordingly.  In the event of a distribution of properties in kind, the liquidator shall first adjust the Capital Accounts of the Members by the amount of any Net Profit or Net Loss (or other items of income, gain loss or deduction allocable under Section 4.2) that would have been recognized by the Members if such properties had been sold at then-current Fair Market Values. The liquidator shall then distribute the proceeds of such sales or such properties to the Members in the manner provided in Section 4.3(b).  If the foregoing distributions to the Members do not equal the Member’s respective positive Capital Account balances as determined after giving effect to the foregoing adjustments and to all adjustments attributable to allocations of Net Profit and Net Loss realized by the Company during the taxable year in question and all adjustments attributable to contributions and distributions of money and property effected prior to such distribution, then the allocations of Net Profit and Net Loss provided for in this Agreement shall be adjusted, to the least extent necessary, to produce a Capital Account balance for each Member which corresponds to the amount of the distribution to such Member.  Each Member shall have the right to designate another Person to receive any property that otherwise would be distributed in kind to that Member pursuant to this Section 9.2.
(d)Except as expressly provided herein, the liquidator shall comply with any applicable requirements of the Act and all other applicable laws pertaining to the winding up of the affairs of the Company and the final distribution of its assets.
(e)Notwithstanding any provision in this Agreement to the contrary, no Member shall be obligated to restore a deficit balance in its Capital Account at any time.
The distribution of cash and/or property to the Members in accordance with the provisions of this Section 9.2 shall constitute a complete return to the Members of their Capital Contributions and a complete distribution to the Members of their Company Interest and all Company property.
Article X.TRANSFERS OF COMPANY INTERESTS
Section 10.1.Transfer of Company Interests.
(a)No Member’s Company Interest or rights therein shall be Transferred, or made subject to an Indirect Transfer, in whole or in part, without the written consent of each other Member, which consent shall not be unreasonably withheld, conditioned or delayed; provided, however, that any Member may Transfer its Company Interest without obtaining such consent pursuant to a Permitted Transfer. Any attempt by a Member to Transfer its Company Interest in violation of the immediately preceding sentence shall be void ab initio.
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(b)[Intentionally Omitted].
(c)If any Company Interest is required by law to be Transferred to a spouse of a holder thereof pursuant to an order of a court of competent jurisdiction in a divorce proceeding (notwithstanding the provisions of Section 10.1(a)), then such holder shall nevertheless retain all rights with respect to such interest and any interest of such spouse shall be subject to such rights of such holder.  In addition, if it is determined that the holder will be required to pay any taxes attributable to such interest of the spouse in the Company, then any tax liability of such holder that is attributable to such spouse’s interest shall be taken into account, and shall reduce such spouse’s interest in the Company; in no event shall the Company be required to provide any financial, valuation or other information regarding the Company or any of its Subsidiaries or Affiliates or any of their respective assets to the spouse or former spouse of such holder.
(d)Unless an assignee of a Company Interest becomes a substituted Member in accordance with the provisions set forth below, such assignee shall not be entitled to any of the rights granted to a Member hereunder, other than the right to receive allocations of income, gains, losses, deductions, credits and similar items and distributions to which the assignor would otherwise be entitled, to the extent such items are assigned.
(e)An assignee of a Company Interest pursuant to a Permitted Transfer shall become a substituted Member of the Company, entitled to all of the rights of the assigning Member with respect to such assigned Company Interest, automatically upon request by the assignee.  Any other assignee of a Company Interest shall become a substituted Member if, and only if, (i) the assignor gives the assignee such right, (ii) the substitution is approved by Super-Majority Board Approval, and (iii) if the Board so requires, the assignee reimburses the Company for any costs incurred by the Company in connection with such assignment and substitution.  Upon satisfaction of such requirements, an assignee shall be admitted as a substituted Member of the Company as of the effective date of such assignment; provided, that the assignee agrees to be bound by the terms of this Agreement by executing a copy of same and such other documents as the Company may reasonably request to effectuate the Transfer.  In the event John D. Grier dies or becomes disabled so that he cannot perform competently as a member of the Board: (i) his seat on the Board shall be filled by Robert Waldron, (ii) his role as the person having control over the CPUC Assets shall be assumed by Larry W. Alexander, and (iii) the Company shall seek accelerated consideration of its requested CPUC Approval.  
(f)The Company and the Board shall be entitled to treat the record Member of any Company Interest as the absolute owner thereof in all respects and shall incur no liability for distributions of cash or other property made in good faith to such Member until such time as a written assignment of such Company Interest that complies with the terms of this Agreement has been received by the Board.
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Article XI.REPRESENTATIONS AND WARRANTIES
Each Member acknowledges and agrees that its Company Interest is being acquired for such Member’s own account as part of a private offering, exempt from registration under the Securities Act and all applicable state securities or blue sky laws, for investment only and not with a view to the distribution nor other sale thereof; and that an exemption from registration under the Securities Act and under applicable state securities laws may not be available if the Company Interest is acquired by such Member with a view to resale or distribution thereof under any conditions or circumstances as would constitute a distribution of such Company Interest within the meaning and purview of the Securities Act or applicable state securities laws.  Accordingly, except as specifically contemplated by the Purchase Agreement, each Member represents and warrants to the Company and all other interested parties that:
(a)Such Member has sufficient financial resources to continue such Member’s investment in the Company for an indefinite period.
(b)Such Member has adequate means of providing for its current needs and contingencies and can afford a complete loss of its investment in the Company.
(c)It is such Member’s intention to acquire and hold its Company Interest solely for its private investment and for its own account and with no view or intention to Transfer such Company Interest (or any portion thereof).
(d)Such Member has no contract, undertaking, agreement, or arrangement with any Person to sell or otherwise Transfer to any Person, or to have any Person sell on behalf of such Member, its Company Interest (or any portion thereof), and such Member is not engaged in and does not plan to engage within the foreseeable future in any discussion with any Person relative to the sale or any Transfer of its Company Interest (or any portion thereof).
(e)Such Member is not aware of any occurrence, event, or circumstance upon the happening of which such Member intends to attempt to Transfer its Company Interest (or any portion thereof), and such Member does not have any present intention of Transferring its Company Interest (or any portion thereof) after the lapse of any particular period of time.
(f)Such Member, by making other investments of a similar nature and/or by reason of his/its business and financial experience or the business and financial experience of those Persons it has retained to advise such Member with respect to its investment in the Company, is a sophisticated investor who has the capacity to protect its own interest in investments of this nature and is capable of evaluating the merits and risks of this investment.
(g)Such Member has had all documents, records, books and due diligence materials pertaining to this investment made available to such Member and such Member’s accountants and advisors; and such Member has also had an opportunity to ask 
    60

questions of and receive answers from the Company concerning this investment; and such Member has all of the information deemed by such Member to be necessary or appropriate to evaluate the investment and the risks and merits thereof.
(h)Such Member has a close business association with the Company or certain of its Affiliates, thereby making the Member a well-informed investor for purposes of this investment.
(i)Such Member confirms that such Member has been advised to consult with such Member’s own attorney regarding legal matters concerning the Company and to consult with independent tax advisors regarding the tax consequences of investing in the Company.
(j)Such Member is aware of the following:
(i)An investment in the Company is speculative and involves a high degree of risk of loss by the Member of its entire investment, with no assurance of any income from such investment;
(ii)No federal or state agency has made any finding or determination as to the fairness of the investment, or any recommendation or endorsement, of such investment;
(iii)There are substantial restrictions on the Transferability of the Company Interest of such Member, there will be no public market for such Company Interest and, accordingly, it may not be possible for such Member readily to liquidate its investment in the Company in case of Emergency; and
(iv)Any federal or state income tax benefits which may be available to such Member may be lost through changes to existing laws and regulations or in the interpretation of existing laws and regulations; such Member in making this investment is relying, if at all, solely upon the advice of its own tax advisors with respect to the tax aspects of an investment in the Company.
(k)Such Member is an accredited investor (as defined in Regulation D promulgated under the Securities Act) and such Member is fully aware that, in agreeing to admit him, her or it as a Member, the Board and the Company are relying upon the truth and accuracy of the foregoing representations and warranties.
Such Member further covenants and agrees that (A) its Company Interest will not be resold unless the provisions set forth in Article X above are complied with, and (B) such Member shall have no right to require registration of its Company Interest under the Securities Act or applicable state securities laws, and, in view of the nature of the Company and its business, such registration is neither contemplated nor likely.
    61

Article XII.MISCELLANEOUS
Section 12.1.Notices.  All notices, elections, demands or other communications required or permitted to be made or given pursuant to this Agreement shall be in writing and shall be considered as properly given or made on the date of actual delivery if given by (a) personal delivery, (b) United States mail, (c) fax or email (with a hard copy sent to the recipient by expedited overnight delivery service with proof of delivery (charges prepaid) within two (2) Business Days) or (d) expedited overnight delivery service with proof of delivery (charges prepaid), addressed to the following respective addresses:
If to some or all of the Grier Members, to:
1801 California Street, Suite 3600
Denver, CO 80202
Attention: John D. Grier
    Email: jgrier@crimsonml.com
and to:
Lewis, Ringelman & Fanyo P.C.
1515 Wynkoop Street, Suite 700
Denver, Colorado
Attention: David J. Ringelman
Email: dringelman@lewisringelman.com
If to CORR, to: 
CorEnergy Infrastructure Trust, Inc.
1100 Walnut, Suite 3350
Kansas City, MO 64106
Email: dschulte@corenergy.reit

and to:
Husch Blackwell LLP
4801 Main Street, Suite 1000
Kansas City, MO 64112-2551
Attention:  Steve Carman 
Email:  Steve.Carman@huschblackwell.com
Any Member may change its address by giving notice in writing to the other Members of its new address.
Section 12.2.Amendment.  
(a)Amendments to be Adopted by the Company.  Each Member agrees that an appropriate Manager or officer of the Company, in accordance with and subject to the 
    62

limitations contained in Article V, may execute, swear to, acknowledge, deliver, file and record whatever documents may be required to reflect:
(i)a change in the name of the Company in accordance with this Agreement, the location of the principal place of business of the Company or the registered agent or office of the Company that has been approved by the Board;
(ii)admission or substitution of Members whose admission or substitution has been made in accordance with this Agreement;
(iii)a change that the Board believes is reasonable and necessary or appropriate to qualify or continue the qualification of the Company as a limited liability company under the laws of any state or that is necessary or advisable in the opinion of the Board to ensure that the Company will not be taxable as a corporation or otherwise taxed as an entity for federal income tax purposes; and
(iv)an amendment that is necessary, in the opinion of counsel, to prevent the Company or its officers from in any manner being subjected to the provisions of the Investment Company Act of 1940, as amended, or “plan asset” regulations adopted under the Employee Retirement Income Security Act of 1974, as amended, whether or not substantially similar to plan asset regulations currently applied or proposed by the United States Department of Labor.
(b)Amendment Procedures.  Except as set forth in Section 12.2(a) and Section 12.2(d), this Agreement may be amended, or compliance with any provision hereof may be waived, at any time and from time to time by the Board, acting with Super-Majority Board Approval.
(c)Issuance of New Units.  For the avoidance of doubt, it is agreed that any such amendment, modification, supplement, restatement or waiver in connection with the authorization or issuance by the Company pursuant to Section 3.3, Section 3.4 or Section 3.5 of additional Company Interests having such rights, designations and preferences (including with respect to the Company’s distributions) ranking senior or junior to, or pari passu with, the Class A-1 Units, Class A-2 Units, Class A-3 Units, Class B-1 Units or any other series of Company Interests shall require only the approval of the Board, acting with Super-Majority Board Approval, and that such amendment, modification, supplement, restatement or waiver (including any change in governance rights) shall not be deemed an alteration or change to the rights, obligations, powers or preferences of any series of interests.
(d)Amendments Requiring Approval of Specific Member(s).  No amendment of this Agreement shall be effected that (i) obligates a Member to contribute capital to the Company, (ii) amends or revises the right or obligations with respect to the payment or return of distributions to or from a Member or (iii) changes the status with respect to the limited liability of a Member, in each case without the written consent of such Member.
    63

Section 12.3.Changes Upon CPUC Approval.
(a)Contribution of Other CORR Assets.  Notwithstanding any provisions to the contrary in this Agreement, within thirty (30) days following receipt of CPUC Approval, CORR covenants and agrees to transfer to the Company all of its operating assets, including, without limitation, all equity interests CORR holds directly or indirectly in any of its subsidiaries or other Affiliates (other than CORR’s equity interests in the Company or equity interests CORR holds indirectly in any of the Company’s Subsidiaries) (the “CORR Transfer”).
(b)Fourth Amended and Restated Limited Liability Company Agreement.  Notwithstanding any provisions to the contrary in this Agreement, immediately on receipt of CPUC Approval, the parties hereto acknowledge and agree that, without any further action or approvals by the Managers or Members, this Agreement shall be null and void, and shall be superseded and replaced in its entirety with the Fourth Amended and Restated Limited Liability Company Agreement, the form of which is attached hereto as Exhibit C.  
(c) Third Party Consents.  CORR and the Grier Members agree that, prior to consummation of the actions contemplated by Section 12.3(a) and Section 12.3(b) of this Agreement, each such Member will use its commercially reasonable efforts to complete all required registrations, filings and notifications with, and obtain all required consents, approvals, or waivers from, any Governmental Authority or any third party as necessary for the consummation of such actions.  At such time, CORR and all other Members shall deliver or cause to be delivered (i) a fully executed Fourth Amended and Restated Limited Liability Company Agreement, (ii) executed versions of all assignment and transfer documents reasonably necessary to consummate the Transfer and (iii) all other documents, certificates, releases and instruments customary and/or reasonably necessary to consummate the Transfer. 
Section 12.4.Partition.  Each of the Members hereby irrevocably waives for the term of the Company any right that such Member may have to maintain any action for partition with respect to the Company property.
Section 12.5.Entire Agreement.  This Agreement constitutes the full and complete agreement of the parties hereto with respect to the subject matter hereof.
Section 12.6.Severability.  Every provision in this Agreement is intended to be severable.  If any term or provision hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder of this Agreement.
Section 12.7.No Waiver.  The failure of any Member to insist upon strict performance of a covenant hereunder or of any obligation hereunder, irrespective of the length of time for which such failure continues, shall not constitute a waiver of such Member’s right to demand strict compliance in the future.  No consent or waiver, express or implied, to or of any breach or 
    64

default in the performance of any obligation hereunder shall constitute a consent or waiver to or of any other breach or default in the performance of the same or any other obligation hereunder.
Section 12.8.Applicable Law.  This Agreement and the rights and obligations of the parties hereunder shall be governed by and interpreted, construed and enforced in accordance with the internal laws of the State of Delaware, without regard to rules or principles of conflicts of law requiring the application of the law of another State.
Section 12.9.Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns; provided, however, that no Member may Transfer all or any part of its rights or Company Interest or any interest under this Agreement except in accordance with Article X.
Section 12.10.Arbitration.  Any dispute arising out of or relating to this Agreement or the Company, including claims sounding in contract, tort, statutory or otherwise (a “Dispute”), shall be settled exclusively and finally by arbitration in accordance with this Section 12.10.
(a)Rules and Procedures.  Such arbitration shall be administered by JAMS, a national dispute resolution company (“JAMS”), pursuant to (i) the JAMS Streamlined Arbitration Rules and Procedures, if the amount in controversy is $500,000 or less, or (ii) the JAMS Comprehensive Arbitration Rules and Procedures, if the amount in controversy exceeds $500,000 (each, as applicable, the “Rules”).  The making, validity, construction, and interpretation of this Section 12.10, and all procedural aspects of the arbitration conducted pursuant hereto, shall be decided by the arbitrator(s).  For purposes of this Section 12.10, “amount in controversy” means the stated amount of the claim, not including interest or attorneys’ fees, plus the stated amount of any counterclaim, not including interest or attorneys’ fees.  If the claim or counterclaim seeks a form of relief other than damages, such as injunctive or declaratory relief, it shall be treated as if the amount in controversy exceeds $250,000, unless all parties to the Dispute otherwise agree.
(b)Discovery.  Discovery shall be allowed only to the extent permitted by the Rules.
(c)Time and Place.  All arbitration proceedings hereunder shall be conducted in Denver, Colorado or such other location as all parties to the Dispute may agree.  Unless good cause is shown or all parties to the Dispute otherwise agree, the hearing on the merits shall be conducted within one hundred and eighty (180) days of the initiation of the arbitration, if the arbitration is being conducted under the JAMS Streamlined Arbitration Rules and Procedures, or within two hundred and seventy (270) days of the initiation of the arbitration, if the arbitration is being conducted under the JAMS Comprehensive Arbitration Rules.  However, it shall not be a basis to challenge the outcome or result of the arbitration proceeding that it was not conducted within the specified timeframe, nor shall the failure to conduct the hearing within the specified timeframe in any way waive the right to arbitration as provided for herein.
    65

(d)Arbitrators.
(i)If the amount in controversy is $500,000 or less, the arbitration shall be before a single arbitrator selected by JAMS in accordance with the Rules.
(ii)If the amount in controversy is more than $500,000, the arbitration shall be before a panel of three arbitrators, selected in accordance with this paragraph.  The party initiating the arbitration shall designate, with its initial filing, its choice of arbitrator.  Within thirty (30) days of the notice of initiation of the arbitration procedure, the opposing party to the Dispute shall select one arbitrator.  If any party to the Dispute shall fail to select an arbitrator within the required time, JAMS shall appoint an arbitrator for that party.  In the event that the Dispute involves three or more parties, JAMS shall determine the parties’ alignment pursuant to Rule 15 and each “side” shall have the right to appoint one arbitrator as provided above.  The two arbitrators so selected shall select a third arbitrator, failing agreement on which, the third arbitrator shall be selected in accordance with JAMS Rule 15.  Notwithstanding that each party may select an arbitrator, all arbitrators (whether selected by the parties, JAMS or otherwise) shall be independent and shall disclose any relationship that he or she may have with any party to the Dispute at the time of their respective appointment.  All arbitrators shall be subject to challenge for cause under JAMS Rule 15.  In the event that any party-selected arbitrator is struck for cause, JAMS shall appoint the replacement arbitrator.
(e)Waiver of Certain Damages.  Notwithstanding any other provision in this Agreement to the contrary, the Company and the Members expressly agree that the arbitrators shall have absolutely no authority to award consequential, incidental, special, treble, exemplary or punitive damages of any type under any circumstances regardless of whether such damages may be available under Delaware law, or any other laws, or under the Federal Arbitration Act or the Rules, unless such damages are a part of a third party claim for which a Member is entitled to indemnification hereunder.
(f)Limitations on Arbitrators.  The arbitrators shall have authority to interpret and apply the terms and conditions of this Agreement and to order any remedy allowed by this Agreement, including specific performance of the Agreement, but may not change any term or condition of this Agreement, deprive any Member of a remedy expressly provided hereunder, or provide any right or remedy that has been excluded hereunder.
(g)Form of Award.  The arbitration award shall conform with the Rules, but also contain a certification by the arbitrators that, except as permitted by Section 12.10(e), the award does not include any consequential, incidental, special, treble, exemplary or punitive damages.
(h)Fees and Awards.  The fees and expenses of the arbitrator(s) shall be borne equally by each side to the Dispute, but the decision of the arbitrators(s) may include such award of the arbitrators’ expenses and of other costs to the prevailing side as 
    66

the arbitrator(s) may determine.  In addition, the prevailing party shall be entitled to an award of its attorneys’ fees and interest.
(i)Binding Nature.  The decision and award shall be binding upon all of the parties to the Dispute and final and nonappealable to the maximum extent permitted by law, and judgment thereon may be entered in a court of competent jurisdiction and enforced by any party to the Dispute as a final judgment of such court.
(j)Applicability.  Notwithstanding any provision to the contrary contained in this Agreement, this Section 12.10 shall not apply to any dispute arising under or related to the CORR Purchase Agreement.
Section 12.11.Legal Representation.
(a)    Each Member hereby acknowledges and agrees that:
(i)    Husch Blackwell LLP represents CORR in the preparation of this Agreement and expressly does not represent any other party hereto in connection with this Agreement, and the other parties hereby expressly waive any conflict of interest that may arise from such representation; and
(ii)    A conflict may exist between such Member’s interest and those of the Company and the other Members;
(iii)    Such Member has had the opportunity to seek the advice of independent legal counsel to review the legal, tax and economic terms of this Agreement on his, her or its behalf prior to executing this Agreement; and
(iv)    This Agreement has tax consequences and such tax consequences may be different for each party.
(b)    Each Member hereby acknowledges and agrees that:
(i)    Lewis, Ringelman & Fanyo P.C. represents the Grier Members in the preparation of this Agreement and expressly does not represent any other party hereto in connection with this Agreement, and the other parties hereby expressly waive any conflict of interest that may arise from such representation; and
(ii)    A conflict may exist between such Member’s interest and those of the Company and the other Members;
(iii)    Such Member has had the opportunity to seek the advice of independent legal counsel to review the legal, tax and economic terms of this Agreement on his, her or its behalf prior to executing this Agreement; and
    67

(iv)    This Agreement has tax consequences and such tax consequences may be different for each party.
Section 12.12.Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be an original and all of which shall constitute but one and the same document.

[Signature Pages of the Company, Members and Managers Attached]

    68

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

									
	COMPANY:
Crimson Midstream Holdings, LLC,
a Delaware limited liability company

By:/s/ John D. Grier    
Name: John D. Grier
Title: Manager
		
			
			

			
	[Signature Pages Continued on Next Page]

[Signature Page to 
Revised Third Amended and Restated Limited Liability Company Agreement of Crimson Midstream Holdings, LLC]

																					
	MEMBERS:

By: /s/ John D. Grier    
Name: John D. Grier
Title: Individually and as Trustee of the Bridget Grier Spousal Support Trust dated December 18, 2012
		

By:/s/ M. Bridget Grier    
Name: M. Bridget Grier
Title: Individually
	
				
				
	/s/ John D. Grier    
John D. Grier
		CorEnergy Infrastructure Trust, Inc., 
a Maryland corporation 
By:/s/ David J. Schulte    
      Name: David J. Schulte
      Title: President and Chief Executive Officer
	
				
	

		
		
		
		
			
			

[Signature Page to 
Revised Third Amended and Restated Limited Liability Company Agreement of Crimson Midstream Holdings, LLC]

Exhibit A
to
Revised Third Amended and Restated Limited Liability Company Agreement
of Crimson Midstream Holdings, LLC
Members, Capital Contributions, Sharing Ratios
(as of the Effective Date)
																																				
	Member	Capital
Accounts	Class A-1 Units	Class A-2 Units	Class A-3 Units	Class B-1
Units	Class A-1 Sharing Ratio	Class A-2 Sharing Ratio	Class A-3 Sharing Ratio	Class B-1 Sharing Ratio	

Class C-1 Units
	Class C-1 Sharing Ratio
	John D. Grier	80,058,566	1,106,500.65	1,644,244.68	1,642,838.33	~	67.05%	67.05%	67.05%	~	338,606.2	33.86%
	M. Bridget Grier	31,858,977	440,326.60	654,320.17	653,760.75	~	26.68%	26.68%	26.68%	~	134,746.9	13.47%
	The Bridget Grier Spousal Support Trust dated December 18, 2012	1,957,884	27,059.79	40,210.77	40,176.68	~	1.64%	1.64%	1.64%	~	8,280.8	0.83%
	The Hugh David Grier Trust dated October 15, 2012	2,762,286	38,176.98	56,731.19	56,683.37	~	2.31%	2.31%	2.31%	~	11,683.0	1.17%
	The Samuel Joseph Grier Trust dated October 15, 2012	2,762,286	38,176.98	56,731.19	56,683.37	~	2.31%	2.31%	2.31%	~	11,683.0	1.17%
	CorEnergy Infrastructure Trust, Inc.	117,000,000	~	~	~	10,000.0	~	~	~	100.00%	495,000.0	49.50%
	TOTAL:	236,400,000	1,650,241.00 
	2,452,238.00	2,450,142.50	10,000	100.00%	100.00%	100.00%	100.00%	1,000,000	100.00%

Exhibit A to 
Revised Third Amended and Restated Limited Liability Company Agreement of Crimson Midstream Holdings, LLC

Exhibit B
to
Revised Third Amended and Restated Limited Liability Company Agreement
of Crimson Midstream Holdings, LLC
Grier Companies
Crimson Renewable Energy, L.P.
Delta Trading, L.P.
Millux Holdings LLC
Pike Capital, LLC
Pikes Capital, LLC
Crimson Environmental, LLC
C Gulf Holdings, LLC and its Subsidiaries
CorEnergy Infrastructure Trust, Inc. 
Exhibit B to 
Revised Third Amended and Restated Limited Liability Company Agreement of Crimson Midstream Holdings, LLC

Exhibit C
to
Revised Third Amended and Restated Limited Liability Company Agreement
of Crimson Midstream Holdings, LLC
Form of Fourth Amended and Restated Limited Liability Company Agreement
of Crimson Midstream Holdings, LLC

[attached to original Third Amended and Restated LLC Agreement and incorporated herein by reference to such attachment]
Exhibit C to 
Revised Third Amended and Restated Limited Liability Company Agreement of Crimson Midstream Holdings, LLC

Exhibit D
to
Revised Third Amended and Restated Limited Liability Company Agreement
of Crimson Midstream Holdings, LLC

Form of CorEnergy Infrastructure Trust, Inc. Articles Supplementary Establishing and Fixing the Rights and Preferences of Series B Redeemable Convertible Preferred Stock

[attached to original Third Amended and Restated LLC Agreement and incorporated herein by reference to such attachment]
Exhibit D to 
Revised Third Amended and Restated Limited Liability Company Agreement of Crimson Midstream Holdings, LLC

Exhibit E
to
Revised Third Amended and Restated Limited Liability Company Agreement
of Crimson Midstream Holdings, LLC

Form of CorEnergy Infrastructure Trust, Inc. Articles Supplementary Establishing and Fixing the Rights and Preferences of 9.00% Series C Exchangeable Preferred Stock

[attached to original Third Amended and Restated LLC Agreement and incorporated herein by reference to such attachment]
Exhibit E to 
Revised Third Amended and Restated Limited Liability Company Agreement of Crimson Midstream Holdings, LLC

Exhibit F
to
Revised Third Amended and Restated Limited Liability Company Agreement
of Crimson Midstream Holdings, LLC
Form of CorEnergy Infrastructure Trust, Inc. Articles Supplementary Establishing and Fixing the Rights and Preferences of the Class B Common Stock.

[attached to original Third Amended and Restated LLC Agreement and incorporated herein by reference to such attachment]
Exhibit F to 
Revised Third Amended and Restated Limited Liability Company Agreement of Crimson Midstream Holdings, LLC

Exhibit G
to
Revised Third Amended and Restated Limited Liability Company Agreement
of Crimson Midstream Holdings, LLC
 Resolutions to be Approved by Managers

[attached to original Third Amended and Restated LLC Agreement and incorporated herein by reference to such attachment]

Exhibit G to 
Revised Third Amended and Restated Limited Liability Company Agreement of Crimson Midstream Holdings, LLCEX-4.1

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 Exhibit 4.1 

EXECUTION VERSION 

STOCKHOLDERS AGREEMENT 

This STOCKHOLDERS AGREEMENT, dated as of April 27, 2016 (this “Agreement”), is entered into by and among
POMEGRANATE PARENT HOLDINGS, INC., a Delaware corporation (the “Company”), and the STOCKHOLDERS that are parties hereto (each, a “Stockholder” and, collectively, the “Stockholders”).

 WHEREAS, pursuant to that certain Agreement and Plan of Merger, dated as of March 11, 2016 (the “Merger
Agreement”), among The Fresh Market, Inc. (“The Fresh Market”), Pomegranate Holdings, Inc., a Delaware corporation and a wholly owned subsidiary of the Company (“Parent”), and Pomegranate Merger Sub, Inc.,
a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”), Merger Sub will be merged with and into The Fresh Market with The Fresh Market surviving such merger as an indirect wholly owned subsidiary of the
Company. 
 WHEREAS, reference is made to that certain (a) Rollover, Contribution and Exchange Agreement, dated as of
March 12, 2016 (as amended by the Rollover Letter Agreement, the “Rollover Agreement”), by and among Parent and certain stockholders of The Fresh Market (collectively, the “Rollover Stockholders”), and
(b) that certain letter agreement dated as of April 22, 2016 (the “Rollover Letter Agreement”), by and among the Rollover Stockholders, Company and TFM2, LLC, a Delaware limited liability company (“TFM2”).

 WHEREAS, the Rollover Agreement has been assigned from Parent to the Company pursuant to that certain Assignment and Assumption
Agreement dated as of April 22, 2016, by and between the Company and Parent. 
 WHEREAS, prior to the consummation of the
transactions contemplated by the Merger Agreement (the “Merger Closing”) and pursuant to that certain Contribution Agreement dated as of April 25, 2016 (the “Contribution Agreement”) by and between TFM2, LLC,
and the Rollover Stockholders, the Rollover Stockholders contributed their shares of the common stock of The Fresh Market (the “TFM Contributed Shares”) to TFM2 in exchange for units of TFM2 (the “Berry
Contribution”). 
 WHEREAS, prior to the Merger Closing and immediately following the Berry Contribution, TFM2 contributed
the TFM Contributed Shares to the Company in exchange for the issuance by the Company of 13,094,533 shares of Common Stock (“Berry Shares”) pursuant to the terms of the Rollover Agreement and the Rollover Letter Agreement (the
“TFM Contribution”). 
 WHEREAS, prior to the Merger Closing and concurrently with the TFM’s Contribution, the
Apollo Investor subscribed for and purchased from the Company 45,731,516 shares of Common Stock for an aggregate cash purchase price of $457,316,157 pursuant to the terms of that certain Subscription Agreement dated as of the date hereof, by and
between the Apollo Investor and the Company (the “Apollo Subscription Agreement”). 
 WHEREAS, in connection with
the consummation of the transactions contemplated by the Merger Agreement, the Rollover Agreement and the Apollo Subscription Agreement, the Stockholders each own or, upon the Closing (as defined in the Merger Agreement), will own an equity interest
in the Company and may, from time to time thereafter, acquire additional equity interests in the Company. 
 WHEREAS, each
Stockholder deems it to be in the best interest of the Company and the Stockholders to enter into this Agreement to set forth their agreements with respect to certain matters concerning the Company. 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 NOW, THEREFORE, in consideration of the premises and of the mutual consents and
obligations hereinafter set forth, intending to be legally bound, the parties hereto hereby agree as follows: 
  

	 	Section 1.	 Definitions. 

As used in this Agreement: 

“Agreement” has the meaning set forth in the preamble. 

“Affiliate” means a Person that, directly or indirectly through one or more intermediaries, controls, or is controlled by, or
is under common control with, such Person. For the avoidance of doubt, the term “Affiliate” (i) as applied to the Sponsor Funds, shall not at any time include any of the Fresh Market Co-Investors or
any portfolio companies of Apollo Management VIII, L.P. (including the Company and its subsidiaries) or any of its affiliated funds; (ii) as applied to the Berry Investor, shall include the Berry Investor Members and any affiliate of the Berry
Investor Members; and (iii) as applied to Golleher, shall include Golleher’s spouse and each of Golleher’s lineal ancestors and descendants (including by adoption and stepchildren). As used in this definition, the term
“control,” including the correlative terms “controlling,” “controlled by” and “under common control with,” means possession, directly or indirectly, of the power to direct or cause the direction of management
or policies (whether through ownership of securities or any partnership or other ownership interest, by contract or otherwise) of a Person. 

“Apollo Group” means Apollo Investor and its Affiliates. 

“Apollo Investor” means AP VIII Pomegranate Holdings, L.P., a Delaware limited partnership. 

“Apollo Subscription Agreement” has the meaning set forth in the recitals. 

“Berry Contribution” has the meaning set forth in the recitals. 

“Berry Investor” means TFM2, LLC, a Delaware limited liability company and any of its
Co- Investor Permitted Transferees. 
 “Berry Investor Member” means each Person
that holds an Ownership Interest in the Berry Investor. 
 “Berry Shares” has the meaning set forth in the recitals. 

“Berry Investor Termination Event” means the date the Berry Investor owns, directly or indirectly, less than an aggregate of
6,547,266 shares of Common Stock (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the Common Stock). 

“Co-Investor Permitted Transferee” means: (i) with respect to Golleher,
Golleher’s spouse, siblings, ancestors and descendants (including stepfamilies), in each case whether natural or adopted, and any trust, partnership, limited liability company or similar vehicle established and maintained solely for the benefit
of (or the sole members or partners of which are) Golleher, Golleher’s spouse and/or Golleher’s siblings, ancestors and/or descendants; and (ii) with respect to any Berry Investor Member, (A) any other Berry Investor Member,
(B) any spouse, siblings, ancestors and descendants (including stepfamilies), in each case whether natural or adopted, of Ray Berry and Brett Berry (collectively, the “Berry Owners”) and any trust, partnership, limited
liability company or similar vehicle established and maintained solely for the benefit of (or the sole members or partners of which are) either Berry Owner, either Berry Owner’s spouse and/or either Berry Owner’s siblings, ancestors and/or
descendants, and (C) any tax-exempt religious, private foundation, charitable organization or other organization qualified under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended. 

  
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 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 “Common Stock” means the common stock of the Company, par value $.01 per
share. 
 “Company” has the meaning ascribed to such term in the introductory paragraph hereof. 

“Company Board” means the Board of Directors of the Company and any duly authorized committee thereof. All determinations by
the Board required pursuant to the terms of this Agreement shall be made in the good faith sole discretion of the Board. 
 “Company
By-Laws” has the meaning set forth in Section 7(a). 
 “Company
Charter” has the meaning set forth in Section 7(a). 
 “Company Director” has the meaning set forth in
Section 7(a). 
 “Contribution Agreement” has the meaning set forth in the recitals. 

“Demand Notice” has the meaning set forth in Section 9(a)(ii). 

“Drag Along Notice” has the meaning set forth in Section 3(a). 

“Drag Along Right” has the meaning set forth in Section 3(a). 

“Drag Along Stockholder” has the meaning set forth in Section 3(a). 

“Election Notice” has the meaning set forth in Section 4(b). 

“Equity Securities” means, with regard to any Person, as applicable, (i) any capital stock, voting, partnership,
membership, joint venture or other ownership or equity interests, or other share capital of such Person, (ii) any debt or equity securities of such Person, directly or indirectly, convertible into or exchangeable for any capital stock,
partnership, membership, joint venture or other ownership or equity interests, or other share capital (whether voting or non-voting, whether preferred, common or otherwise) of such Person or containing any
profit participation features with respect to such Person, (iii) any rights or options directly or indirectly to subscribe for or to purchase any capital stock, partnership, membership, joint venture or other ownership or equity interests,
other share capital of such Person or securities containing any profit participation features with respect to such Person or directly or indirectly to subscribe for or to purchase any securities directly or indirectly convertible into or
exchangeable for any capital stock, partnership, membership, joint venture or other ownership interests, other share capital of such Person or securities containing any profit participation features with respect to such Person, or (iv) any
share, unit or membership interest appreciation rights, phantom share rights, contingent interest or other similar rights relating to such Person. 

“Fresh Market Co-Investors” means, collectively, the Berry Investor and Golleher.

 “GAAP” means United States generally accepted accounting principles. 

“Golleher” means, George G. Golleher, an individual. 

“Merger Agreement” has the meaning set forth in the recitals. 

“Merger Closing” has the meaning set forth in the recitals. 

  
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 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 “Merger Sub” has the meaning set forth in the recitals. 

“Ownership Interest” means any and all shares, interests, participations, or other equivalents (however designated) of
capital stock of a corporation and any and all ownership interests in a Person (other than a corporation), including membership interests, partnership interests, joint venture interests, and beneficial interests, and any and all warrants, options,
convertible or exchangeable securities, or rights to purchase or otherwise acquire any of the foregoing. 
 “Parent” has
the meaning set forth in the recitals. 
 “Parent Board” has the meaning set forth in Section 7(b). 

“Person” shall be construed broadly and shall include, without limitation, an individual, a partnership, a limited liability
company, a corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof. 

“Preemptive Event” has the meaning set forth in Section 5. 

“Proportionate Percentage” means a number (expressed as a percentage) equal to a fraction, the numerator of which is the
total number of shares of Common Stock proposed to be Transferred by the Sponsor Funds and the denominator of which is the total number of shares of Common Stock owned by the Sponsor Funds. 

“Prospective Purchaser” has the meaning set forth in Section 3(a). 

“Public Sale” means any sale of Common Stock to the public, occurring simultaneously with or after an initial public offering
of Common Stock, (i) pursuant to a registration statement under the Securities Act, or (ii) pursuant to Rule 144 under the Securities Act provided such sale is made in compliance with the manner of sale requirements of Rule 144(f) whether
or not compliance therewith is required by Rule 144. 
 “Qualified Public Offering” means an underwritten public offering
of Common Stock by the Company or any selling securityholders pursuant to an effective registration statement filed by the Company with the Securities and Exchange Commission (other than (i) a registration relating solely to an employee benefit
plan or employee stock plan, a dividend reinvestment plan, or a merger or a consolidation, (ii) a registration incidental to an issuance of securities under Rule 144A, (iii) a registration on Form
S-4 or any successor form, or (iv) a registration on Form S-8 or any successor form) under the Securities Act, pursuant to which the aggregate net offering price of
the Common Stock by the Company and/or other selling securityholders (after underwriting discounts, commissions and fees) sold in such offering is at least $300 million. 

“Registrable Securities” shall mean shares of Common Stock and any security issued or distributed in respect thereof;
provided, that any Registrable Securities shall cease to be Registrable Securities when (i) a registration statement with respect to the sale of such Registrable Securities has been declared effective under the Securities Act and such
Registrable Securities have been disposed of in accordance with the plan of distribution set forth in such registration statement, (ii) such Registrable Securities have been disposed of in reliance upon Rule 144 (or any similar provision then
in force) under the Securities Act or (iii) such Registrable Securities shall have been otherwise transferred and new certificates for them not bearing a legend restricting further transfer under the Securities Act shall have been delivered by
the Company; and provided, further, that any securities that have ceased to be Registrable Securities shall not thereafter become Registrable Securities and any security that is issued or distributed in respect of securities that have
ceased to be Registrable Securities is not a Registrable Security. 

  
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 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 “Registration Request” has the meaning set forth in
Section 9(a)(i). 
 “Rollover Agreement” has the meaning set forth in the recitals. 

“Rollover Letter Agreement” has the meaning set forth in the recitals. 

“Rollover Stockholders” has the meaning set forth in the recitals. 

“Securities Act” means the Securities Act of 1933, as amended, including the rules and regulations promulgated thereunder.

 “Stockholder” has the meaning set forth in the preamble. 

“Sponsor Funds” means the Apollo Investor collectively with any member of the Apollo Group to whom shares of Common Stock are
transferred or that otherwise acquires Common Stock (for the avoidance of doubt, excluding the Fresh Market Co-Investors). 

“Subsidiary Board” has the meaning set forth in Section 7(b). 

“Subsidiary Director” has the meaning set forth in Section 7(b). 

“Tag Along Certificates” has the meaning set forth in Section 4(b). 

“Tag Along Notice” has the meaning set forth in Section 4(a). 

“Tag Along Option Period” has the meaning set forth in Section 4(b). 

“Tag Along Right” has the meaning set forth in Section 4(a). 

“Tag Along Sale” has the meaning set forth in Section 4(a). 

“Tag Along Stockholder” has the meaning set forth in Section 4(b). 

“TFM Board” has the meaning set forth in Section 7(b). 

“TFM Contributed Shares” has the meaning set forth in the recitals. 

“TFM Contribution” has the meaning set forth in the recitals. 

“The Fresh Market” has the meaning set forth in the recitals. 

“Transfer” means a sale, assignment, encumbrance, gift, pledge, hypothecation, distribution or other disposition of Common
Stock or any interest therein. 
 “Transferring Stockholder” has the meaning set forth in Section 4(a). 

“Underwritten Offering” means a sale of shares of Common Stock to an underwriter for reoffering to the public. 

“Unfulfilled Amounts” has the meaning set forth in Section 4(c). 

  
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Pursuant to 17 C.F.R. Section 200.83 
  

	 	Section 2.	 Transfers. 

(a) General Restrictions on Transfers. Without the prior written consent of the Sponsor Funds (which consent may be
withheld in the sole discretion of the Sponsor Funds), no Stockholder (other than the Sponsor Funds) shall, directly or indirectly, Transfer any shares of Common Stock (other than pursuant to Section 2(d), Section 3,
Section 4 or Section 9). The preceding sentence shall apply with respect to all shares of Common Stock held at any time by any Fresh Market Co-Investor. Each Sponsor Fund may Transfer
its shares of Common Stock subject to Section 4. Any Transfer or attempted Transfer in breach of this Agreement shall be void ab initio and of no effect. In connection with any attempted Transfer in breach of this Agreement, the
Company may hold and refuse to transfer any Common Stock or any certificate therefor, in addition to and without prejudice to any and all other rights or remedies which may be available to it or the Stockholders. 

(b) Securities and Antitrust Law Compliance. Notwithstanding anything in this Agreement to the contrary, no Stockholder
shall, directly or indirectly, Transfer any shares of Common Stock owned by such Stockholder, or any interest therein, unless such transfer or disposition is made upon compliance with the provisions of the Securities Act and any applicable
antitrust, competition or similar laws. Prior to any proposed Transfer of any shares of Common Stock by a Stockholder (other than the Sponsor Funds) that is permitted by this Agreement, unless there is in effect a registration statement under the
Securities Act covering the proposed Transfer, the Stockholder intending to Transfer such Common Stock (the “Transferor Stockholder”) shall give written notice to the Company of such Transferor Stockholder’s intention to effect
such Transfer; provided, however, that promptly following a Transfer of any shares of Common Stock by a Sponsor Fund, the transferring Sponsor Fund shall provide written notice to each Fresh Market
Co-Investor setting forth the number of shares Transferred and the name of the transferee. Each such notice shall describe the manner and circumstances of the proposed Transfer in sufficient detail, and shall
be accompanied, unless the Board otherwise approves, by either (i) a written opinion of legal counsel, who shall be reasonably satisfactory to the Company, addressed to the Company, and reasonably satisfactory in form and substance to the
Company’s legal counsel, to the effect that the proposed Transfer may be effected without registration under the Securities Act, or (ii) a “no action” letter from the staff of the Securities and Exchange Commission to the effect
that the Transfer of such Common Stock without registration will not result in a recommendation by the staff that action be taken with respect thereto. Notwithstanding the foregoing, any proposed Transfer (other than Transfers pursuant to Rule 144
under the Securities Act or Transfers pursuant to a transaction subject to an effective registration statement) shall be null and void unless the proposed transferee becomes a party to this Agreement (in the same capacity as the transferor) by
executing a joinder agreement in form and substance reasonably acceptable to the Company Board. 
 (c) Legends. Each
certificate representing any shares of Common Stock that is held by a party hereto shall be stamped or otherwise imprinted with a legend in the following form (in addition to any legend required under applicable state securities laws): 

“THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR APPLICABLE STATE SECURITIES LAWS, AND MAY BE OFFERED, PLEDGED, SOLD, ASSIGNED, TRANSFERRED OR OTHERWISE DISPOSED OF ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE ACT AND SUCH LAWS, OR IN COMPLIANCE WITH AN APPLICABLE EXEMPTION FROM
REGISTRATION; PROVIDED THAT THE ISSUER MAY REQUIRE THE TRANSFEROR TO DELIVER AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER REGARDING THE AVAILABILITY OF SUCH AN EXEMPTION. 

  
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 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 THE SECURITIES EVIDENCED BY THIS CERTIFICATE ARE ALSO SUBJECT TO A STOCKHOLDERS’
AGREEMENT, DATED AS OF APRIL 27, 2016, AS IT MAY BE AMENDED FROM TIME TO TIME (THE “AGREEMENT”), WHICH CONTAINS PROVISIONS REGARDING (I) CERTAIN RESTRICTIONS ON THE SALE, ASSIGNMENT, ENCUMBRANCE, GIFT, PLEDGE, HYPOTHECATION,
DISTRIBUTION OR OTHER DISTRIBUTION (EACH, A “TRANSFER”) OF SUCH SECURITIES, (II) CERTAIN TAG ALONG RIGHTS AND DRAG ALONG RIGHTS APPLICABLE TO SUCH SECURITIES AND (III) CERTAIN OTHER MATTERS. A COPY OF SUCH AGREEMENT IS AVAILABLE
FOR INSPECTION AT THE PRINCIPAL OFFICE OF THE COMPANY. ANY TRANSFER OF THE SECURITIES EVIDENCED BY THIS CERTIFICATE OR ANY INTEREST THEREIN IN VIOLATION OF THE AGREEMENT IS NULL AND VOID.” 

The Company will instruct any transfer agent not to register the Transfer of any shares of Common Stock until the conditions
specified in the foregoing legends and this Agreement are satisfied. Upon the request of any Stockholder, the Company shall remove the Securities Act portion of the legend set forth above from the certificate or certificates for such shares to the
extent such shares are eligible (as determined by the Company Board) to be sold pursuant to an effective registration statement under the Securities Act. 

(d) Permitted Transfers. Subject to compliance with the applicable provisions of the Securities Act and
Section 2(b), the following Transfers may be made by Stockholders without the prior written consent of the Sponsor Funds in accordance with Section 2(a) subject to the transferee executing a joinder agreement and thereby
becoming a party hereto (in the same capacity as the transferor): (i) Transfers by any Stockholder to the Company or to the Apollo Group; and (ii) Transfers by a Fresh Market Co-Investor to a Co-Investor Permitted Transferee. 
 (e) Indirect Transfers. Without limiting the
generality of Section 2(a), the Berry Investor agrees that (i) no Berry Investor Member shall be permitted to sell, assign, encumber, gift, pledge, hypothecate, distribute or otherwise dispose of any Ownership Interest in the Berry
Investor to any Person other than a Co-Investor Permitted Transferee without the prior written consent of the Sponsor Funds (which consent may be without in the sole discretion of the Sponsor Funds) and
(ii) it will take any and all actions reasonably requested by the Sponsor Funds to prevent breaches of this Section 2 by the Berry Investor Members. 
  

	 	Section 3.	 Drag Along Rights. 

(a) If the Sponsor Funds propose a transaction involving the Transfer of Common Stock or a transaction
involving the Transfer of any portion of the assets of the Company (whether through a stock sale, a merger, a recapitalization, a consolidation transaction, a transaction involving the transfer of the assets of the Company or otherwise) to any
Person other than a member of the Apollo Group (a “Prospective Purchaser”), then the Sponsor Funds shall have the right (the “Drag Along Right”) to compel the remaining Stockholders (the “Drag Along
Stockholders”) to sell their shares of Common Stock to the Prospective Purchaser for a consideration per share and on terms and conditions no less favorable to the Drag Along Stockholders than those the Sponsor Funds obtain for their Common
Stock (and in the case of a transfer of such shares or a transfer of assets of the Company, or other transaction requiring the vote of the Drag Along Stockholders, this Drag Along Right requires the Drag Along

  
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Stockholders to vote their shares in favor of the transaction and to tender their shares for the transaction consideration); provided, however, that the Drag Along Stockholders
shall not be required to (i) make any representations and warranties to the Prospective Purchaser other than those representations and warranties made by the Sponsor Funds, (ii) be subject to any additional covenants and indemnification
obligations than those to which the Sponsor Funds are subject to, or (iii) pay indemnity to the Prospective Purchaser (other than in cases of fraud) in excess of the aggregate consideration received by such Drag Along Stockholder in the
transaction (which indemnity obligations shall be several, and not joint and several, among the Stockholders and shall be on a pro rata basis based on the relative consideration (whether in cash or otherwise) received or to be received by
each such Stockholder, other than obligations that relate specifically to a particular Stockholder such as indemnification with respect to representations and warranties given by a Stockholder regarding such Stockholder’s title to and ownership
of such Stockholder’s shares of Common Stock). In addition, the obligations of each Drag Along Stockholder pursuant to this Section 3 are subject to the satisfaction of the condition that each Drag Along Stockholder will receive the same
form and amount of consideration with respect to each share of Common Stock as each other Stockholder receives with respect to such Stockholder’s shares of Common Stock; provided, however, that any Drag Along Stockholder who does
not deliver representations and warranties satisfactory to the Company that it is an “accredited investor” within the meaning of Rule 501 under the Securities Act (unless another exemption from registration under the Securities Act is
available), may be excluded from receiving any securities in connection with such Transfer and such Drag Along Stockholder shall receive, in lieu thereof, an amount in cash equal to the fair value (as determined by the Company Board) of the
securities which such Drag Along Stockholder would otherwise receive in connection with such Transfer. The number of shares subject to the Drag Along Right shall be, as to each Drag Along Stockholder, a number of shares of Common Stock that
represents the Proportionate Percentage of all shares of Common Stock owned by such Drag Along Stockholder. The Sponsor Funds shall exercise the Drag Along Right by giving written notice (the “Drag Along Notice”), not less than 20
days prior to consummation of the transfer to the Prospective Purchaser, to the Company and the Drag Along Stockholders stating: (A) that they propose to effect such a transaction; (B) the name of the Prospective Purchaser; (C) the
proposed purchase price per share of Common Stock or for such assets; (D) the Proportionate Percentage; (E) that all the Drag Along Stockholders shall be obligated to sell their shares upon terms and conditions no less favorable to the
Drag Along Stockholders than those the Sponsor Funds are able to obtain for their shares, including entering into agreements with other persons on terms substantially identical to or more favorable to the Drag Along Stockholders than those
applicable to the Sponsor Funds and obtaining any required consents; and (F) in the case of a transfer, whether through a stock sale, a merger, a recapitalization, a consolidation transaction, a transaction involving the transfer of the assets
of the Company or otherwise, of such shares or of such assets in a transaction requiring the vote of or tenders by the Drag Along Stockholders, that all the Drag Along Stockholders shall be obligated to vote in favor of such transaction and, if
applicable, tender their shares for the transaction consideration. Each Drag Along Stockholder affirms that its agreement to vote for the approval of the transaction with respect to the transfer of shares or assets to the Prospective Purchaser under
this Section 3 is given as a condition of this Agreement and as such is coupled with an interest and is irrevocable. This voting agreement shall remain in full force and effect throughout the time that this Section 3 is in
effect. It is understood that this voting agreement relates solely to the transaction with a Prospective Purchaser as described in this Section 3 and does not constitute the agreement to vote or consent as to any other matters. 

(b) Not later than 20 days following the date of receipt of the Drag Along Notice, each of the Drag Along Stockholders shall,
if required by the Drag Along Notice, deliver to the Sponsor Funds certificates representing the shares held by such Drag Along Stockholder to be transferred, accompanied by duly executed stock powers. If any Drag Along Stockholder fails to deliver
such certificates to the Sponsor Funds, the Company shall cause the books and records of 

  
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the Company to show that the shares represented by such certificates of such Drag Along Stockholder are bound by the provisions of this Section 3 and are transferable only to the
Prospective Purchaser or an Affiliate of such Prospective Purchaser upon surrender for transfer by the holder thereof. 
 (c)
Each Stockholder shall, at or following the consummation of a Transfer pursuant to this Section 3, bear its pro rata share (based upon the amount of consideration received or proposed to be received in such Transfer with respect
to such Stockholder’s shares of Common Stock) of the costs of any such Transfer to the extent such costs are incurred for the benefit of all such Stockholders and are not otherwise paid by the Company or the acquiring party. Costs incurred by
the Stockholders on their own behalf will not be considered costs of such Transfer. 
  

	 	Section 4.	 Tag Along Rights. 

(a) If one or more Sponsor Funds (collectively, the “Transferring Stockholder”) proposes a Transfer of Common
Stock to a Prospective Purchaser or to Prospective Purchasers representing, together with any prior such Transfers by the Sponsor Funds, 25% or more of the then issued and outstanding Common Stock (other than pursuant to Section 9 of
this Agreement) (a “Tag Along Sale”), and the Drag Along Right, if any, has not been exercised with respect to such Tag Along Sale, then, prior to proceeding with such Tag Along Sale, the Transferring Stockholder shall promptly
deliver to each remaining Stockholder and the Company a written notice (the “Tag Along Notice”) stating that the Transferring Stockholder desires to enter into the Tag Along Sale and setting forth in reasonable detail the identity
of the Prospective Purchaser, the purchase price per share of Common Stock the number of shares desired to be sold by the Transferring Stockholder and the total number of shares of Common Stock then owned by the Transferring Stockholder and any
other material terms and conditions of the Tag Along Sale. Each of the remaining Stockholders shall have the right (the “Tag Along Right”) to participate in any such sale of shares of Common Stock by the Transferring Stockholder in
accordance with the procedures set forth in Section 4(b) below; provided, that such participation shall be on terms and conditions no less favorable to such remaining Stockholders than those on which the Transferring Stockholder
proposes to transfer its shares. 
 (b) Within 20 days after receipt of the Tag Along Notice (the “Tag Along Option
Period”), the remaining Stockholders may elect to exercise their Tag Along Right and participate in the Tag Along Sale. Any remaining Stockholder electing to participate in the Tag Along Sale (a “Tag Along Stockholder”)
shall give written notice thereof (the “Election Notice”) to the Transferring Stockholder and the Company within the Tag-Along Option Period. The Election Notice shall specify the number of
shares that such Tag-Along Stockholder desires to sell to the Prospective Purchaser, which amount may be up to (or less than) the number of shares of Common Stock that represents the Proportionate Percentage
of all shares of Common Stock owned by such Tag Along Stockholder; provided if, at the end of the Tag-Along Option Period, any remaining Stockholders do not exercise their
Tag-Along Right in full (or at all), then the Transferring Stockholder shall be entitled to Transfer such number of additional shares equal to the number of such unexercised shares, without the need to provide
an additional Tag Along Notice, within 120 days of the expiration of the Tag Along Option Period, at a price no greater than and on other terms and conditions no more favorable to the Transferring Stockholders as those provided for thin the Tag
Along Notice. Each Tag Along Stockholder shall deliver to the Transferring Stockholder, at the same time as, and enclosed with its Election Notice, certificates representing such Tag Along Stockholder’s shares that are specified in the Election
Notice to be transferred, accompanied by duly executed stock powers (the “Tag Along Certificates”). The failure of any remaining Stockholder to submit an Election Notice or deliver its Tag Along Certificates within the Tag Along
Option Period shall constitute an election by such remaining Stockholder not to participate in such Tag Along Sale; provided, however, that such Tag Along 

  
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Sale is consummated within 120 days of the expiration of the Tag Along Option Period, at a price no greater than and on other terms and conditions no more favorable to the Transferring
Stockholders as those provided for in the Tag Along Notice. By delivering an Election Notice and its Tag Along Certificates to the Transferring Stockholder within the Tag Along Option Period, a Tag Along Stockholder shall have the right and
obligation to sell to the Prospective Purchaser that number of shares specified in the Election Notice; provided, however, that, to the extent the Prospective Purchaser is unwilling or unable to purchase all of the shares proposed to
be sold by the Transferring Stockholder and the Tag Along Stockholders, the number of shares to be sold by the Transferring Stockholder shall be ratably reduced so that each Tag-Along Stockholder may sell its
proportionate share of Common Stock calculated as provided above, and the number of shares to be sold by the Transferring Stockholder and each of the Tag-Along Stockholders equals the number of shares that the
Prospective Purchaser is willing or able to purchase. Any such securities not sold by the Transferring Stockholder during such 120 day period shall again be subject to the provisions of this Section 4 upon subsequent Transfer. 

Section 5. Preemptive Rights. Subject to this Section 5, none of the Stockholders shall have any preemptive rights with
respect to issuances of Equity Securities by the Company or any of its subsidiaries. Notwithstanding the foregoing, at any time prior to a Qualified Public Offering, each Fresh Market Co-Investor shall have
the right to participate, in whole or in part, on a pro rata basis (measured with reference to the percentage of the outstanding Common Stock owned by such Fresh Market Co-Investors relative to the
percentage of the outstanding Common Stock owned by the Sponsor Funds and the other Fresh Market Co-Investors), in any subscription for Equity Securities by the Apollo Group and/or any other Stockholder (other
than in connection with any equity based compensation plans or arrangements), on the same terms, cash purchase price and subject to the same conditions as applied to the Apollo Group and/or any other Stockholder (a “Preemptive
Event”). The offer to the Fresh Market Co-Investors to participate in any such equity issuance shall be made either prior to or as soon as reasonably practicable after the relevant issuance to achieve
the same effect. The Company shall give prompt notice to each Fresh Market Co-Investor of any Preemptive Event, including the terms of such subscription, which the Fresh Market
Co-Investors shall have 30 days to accept or reject (in whole or in part), provided that in the event any such Fresh Market Co-Investor does not reply in such 30-day period, such offer shall be deemed rejected by such Fresh Market Co-Investor. If and to the extent a Fresh Market Co-Investor
rejects (in whole or in part) its respective right for subscription in a Preemptive Event, it shall forfeit such opportunity, which opportunity shall revert to the Sponsor Funds, who may elect to purchase such securities within 120 days after the
expiration of the 30 day period described above at the proposed purchase price and on the terms of sale set forth in the notice provided to the Fresh Market Co-Investors pursuant to this Section 5.
Any Equity Securities not sold within such 120 day period that are again offered for sale by the Company or any of its subsidiaries after such 120 day period must be reoffered to the Fresh Market Co-Investors
pursuant to this Section 5. 
 Section 6. Dividends and Distributions. In the event that any dividend is paid on any
shares of Common Stock or any other distribution is made in respect of shares of Common Stock, shares of Common Stock owned by the Fresh Market Co-Investors shall be treated in the same manner (on a pro rata
basis) as shares of Common Stock owned by the Sponsor Funds. 
  

	 	Section 7.	 The Board (and Committees of the Board) of the Company, Parent and The Fresh Market.

 (a) Company Board. As of the Closing, the Company Board and any committees thereof shall consist
of three members (each member, a “Company Director”) which shall consist of (A) one Company Director to be designated by the Berry Investor which shall initially be Ray Berry; and (B) two Company Directors to be designated
by the Sponsor Funds. Company Directors shall serve for the time periods set forth in the Company’s Certificate of Incorporation (the “Company Charter”) or By-Laws (“Company By-Laws”). The Company Board shall have the 

  
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sole right to manage the business and affairs of the Company and shall have all powers and rights necessary, appropriate or advisable to carry out the purposes and business of the Company and is
authorized to execute and document on behalf of the Company in call cases consistent with this Agreement, the Company Charter and Company By-Laws. The Company By-Laws
shall provide, among other things, that at least 24 hours advance notice of any meetings of the Company Board shall be given to all members of the Company Board. The Company Board shall have sole discretion regarding the appointment, quantity,
titles, duties, power and removal of officers and agents of the Company. Without limiting any Stockholder’s rights pursuant to this Section 7(a), the Company Board may increase or decrease its size in accordance with the provisions
of the Company Charter and Company By-Laws; provided that, except as otherwise provided in this Agreement (including Section 7(a)), no such change to the size of the Company Board shall
eliminate the right of the Berry Investor to designate one Company Director to the Company Board without the written consent of the Berry Investor. 

(b) Subsidiary Boards and Committees Thereof. As of the Closing, the Company shall cause (i) the Board of Directors
of Parent and each committee of the Board of Directors of Parent (collectively, the “Parent Board”) and (ii) the Board of Directors of The Fresh Market and each committee of the Board of Directors of The Fresh Market
(collectively, the “TFM Board” and, together with the Parent Board, each a Subsidiary Board”) to consist of five members (each member of such Subsidiary Board, a “Subsidiary Director”) which shall
consist of: (A) one Subsidiary Director on each Subsidiary Board to be designated by the Berry Investor, which shall initially be Ray Berry; and (B) four Subsidiary Directors on each Subsidiary Board to be designated by the Sponsor Funds.
Subsidiary Directors shall serve for the time periods set forth in the Parent’s and The Fresh Market’s organizational documents and such documents shall provide, among other things, that at least 24 hours advance notice of any meetings of
the Subsidiary Board shall be given to all members of the Subsidiary Board. Without limiting any Stockholder’s rights pursuant to this Section 7(b), each Subsidiary Board may increase or decrease its size in accordance with the
provisions of its certificate of incorporation and by-laws; provided that, except as otherwise provided in this Agreement (including Section 7(b)), no such change to the size of any
Subsidiary Board shall eliminate the right of the Berry Investor to designate one Subsidiary Director to such Subsidiary Board without the consent of the Berry Investor. 

(c) Designation; Removal and Replacement of Directors. The Sponsor Funds shall have the right to continue to designate
Company Directors and Subsidiary Directors as provided in Sections 7(a) and (b) for so long as the Sponsor Funds own any shares of Common Stock. The Berry Investor shall have the right to continue to designate one Company Director
and one Subsidiary Director on each Subsidiary Board as provided in Section 7(b) until the date of the Berry Investor Termination Event. Any Stockholder may remove and replace any of its Company Director designees or Subsidiary Director
designees for any reason and at any time and shall have the right to designate a replacement Company Director or Subsidiary Director; provided that in the event the Berry Investor’s right to designate a Company Director and a Subsidiary
Director on each Subsidiary Board is terminated in accordance with Section 7(f), the Sponsor Funds shall have the right to remove and replace the Berry Investor’s designee and shall have the right to designate a replacement Subsidiary
Director on each Subsidiary Board. No delay by a Stockholder in designating its Company Director designee or Subsidiary Director designee shall impair such Stockholders’ right to subsequently designate its Company Director designee or
Subsidiary Director designee. 
 (d) Implementation; Facilitation. Each of the parties to this Agreement agrees that
it shall (and shall cause its Affiliates to) cooperate in facilitating any action described in or required by this Agreement, including by voting all of the shares of Common Stock under its control in support of such action. Without limiting the
generality of the foregoing, each of the parties to this 

  
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Agreement agrees that it shall (and shall cause its Affiliates to) vote its shares of Common Stock and any shares of Common Stock it holds proxies or powers of attorney with respect to or execute
consents, as the case may be, and take all other necessary action (including nominating such designees and calling an annual or special meeting of stockholders) in order to ensure that the composition of the Company Board and each Subsidiary Board
is as set forth in this Section 7 and otherwise to give effect to the provisions of this Section 7. Each party shall vote its shares of Common Stock and any shares of Common Stock it holds proxies or powers of attorney with
respect to, and shall take all other actions necessary, to ensure that the Company Charter and Company By-Laws facilitate and do not at any time conflict with any provision of this Agreement. The Company
agrees that it will (and will cause its officers and its subsidiaries to) take all such action as shall be necessary (including by voting all shares of capital stock or other equity interests that it holds in each of its subsidiaries, either in a
meeting or in an action by written consent) to ensure that the articles of incorporation and by-laws or other applicable governing documents of each of its subsidiaries are consistent with, and do not conflict
with, any provision of this Agreement and that the boards of directors, general partners, managing members or other applicable governing body or persons for each such subsidiary shall act in accordance with the provisions of this Agreement and that
each subsidiary board of directors or other applicable governing body is as set forth in Section 7. Each of the parties to this Agreement acknowledges and agrees that the director designated by the Berry Investor may share any
information and documents obtained in his capacity as director with TFM2, subject to compliance with Section 11(a) by TFM2. 

(e) Compensation and Reimbursement. Directors who are not employees of the Company may receive such reasonable
compensation for serving in such capacity as may be approved by the Company Board or the Subsidiary Board, as the case may be. The Company shall pay, or shall cause one of its Subsidiaries to pay, the reasonable and documented out-of-pocket costs and expenses incurred by each Director in the course of his or her service as such, including in connection with attending regular and special meetings of
the Company Board or the Subsidiary Board, as the case may be, and/or any of their respective committees 
 (f)
Termination. The rights and obligations under this Section 7 shall terminate: (i) following a Qualified Public Offering; (ii) solely with respect to the Sponsor Funds, at such time as the Sponsor Funds cease to own any
shares of Common Stock; and (iii) solely with respect to the Berry Investor, on the date of the Berry Investor Termination Event. 

(g) Conflicts. Notwithstanding the rights of the Berry Investor to designate one Company Director to each committee of
the Company Board and one Subsidiary Director to each committee of each Subsidiary Board pursuant to this Section 7, the Berry Investor acknowledges and agrees that such rights shall not apply in the event an actual or potential conflict
of interest arises in connection with having such designee on the applicable committee. 
  

	 	Section 8.	 Financial Statements; Information Rights. 

(a) Prior to such time as the Company, Parent or The Fresh Market is a reporting company under the Securities Exchange Act of
1934, as amended, the Company shall provide to each of the Fresh-Market Co-Investors: (i) as soon as available after the end of each fiscal quarter but in no event later than forty-five (45) days
after the end of such fiscal quarter, unaudited consolidated quarterly balance sheets of the Company and its subsidiaries and unaudited consolidated statements of income and cash flows of the Company and its subsidiaries for such quarter and for the
portion of the fiscal year ending with such quarter, in each case prepared in accordance with GAAP; and (ii) as soon as available after the end of each fiscal year but in no event later than ninety (90) days after the end of such fiscal
year audited consolidated annual balance sheets of the Company and its subsidiaries for such fiscal year and audited consolidated 

  
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statements of income and cash flows of the Company and its subsidiaries for such fiscal year, in each case prepared in accordance with GAAP and accompanied by an opinion thereon of the
independent certified public accountants of the Company. 
 (b) Following the consummation of a Qualified Public Offering,
the Berry Investor shall have the right, upon reasonable request, to inspect the books and records of the Company and its subsidiaries and the facilities of the Company and its subsidiaries, and to request and receive reasonable information
regarding the Company’s and its subsidiaries’ financial condition and operations. 
  

	 	Section 9.	 Registration Rights. 

 

	 	(a)	 Demand Registration Rights. 

(i) Subject to the provisions of this Section 9(a), at any time and from time to time after the date hereof, the
Sponsor Funds may make one or more written requests (“Registration Request”) to the Company for registration under and in accordance with the provisions of the Securities Act of all or part of their shares of Common Stock. 

(ii) All Registration Requests made pursuant to this Section 9(a) will specify the aggregate amount of shares of
Common Stock to be registered and will also specify the intended methods of disposition thereof (a “Demand Notice”). Subject to Section 9(a)(iii), promptly upon receipt of any such Demand Notice, the Company will
use its reasonable best efforts to effect such registration under the Securities Act (including, without limitation, filing post-effective amendments, appropriate qualification under applicable blue sky or other state securities laws and appropriate
compliance with the applicable regulations promulgated under the Securities Act) of the shares of Common Stock which the Company has been so requested to register within 180 days of such request (or within 120 days of such request in the case of a
Registration Request after a Qualified Public Offering (subject to any lock-up restrictions)). 

(iii) If the Company receives a Registration Request and the Company furnishes to the Sponsor Funds a copy of a resolution of
the Board certified by the secretary of the Company stating that in the good faith judgment of the Board it would be materially adverse to the Company for a registration statement to be filed on or before the date such filing would otherwise be
required hereunder, the Company shall have the right to defer such filing for a period of not more than ninety (90) days after the date such filing would otherwise be required hereunder. The Company shall not be permitted to take such action
more than once in any 360-day period. If the Company shall so postpone the filing of a registration statement, the Sponsor Funds may withdraw its Registration Request by so advising the Company in writing
within thirty (30) days after receipt of the notice of postponement. In addition, if the Company receives a Registration Request and the Company is then in the process of preparing to engage in a Public Sale, the Company shall inform the
Sponsor Funds of the Company’s intent to engage in a Public Sale and may require the Sponsor Funds to withdraw such Registration Request for a period of up to 120 days so that the Company may complete its Public Sale. In the event that the
Company ceases to pursue such Public Sale, it shall promptly inform the Sponsor Funds and the Sponsor Funds shall be permitted to submit a new Registration Request. The foregoing shall be without prejudice to any rights of the Sponsor Funds pursuant
to Section 9(b). 
 (iv) Registrations under this Section 9(a) shall be on such appropriate
registration form of the Securities and Exchange Commission (A) as shall be selected by 

  
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the Company and as shall be reasonably acceptable to the Sponsor Funds and (B) as shall permit the disposition of such Common Stock in accordance with the intended method or methods of
disposition specified in the Demand Notice. If, in connection with any registration under this Section 9(a) which is proposed by the Company to be on Form S-3 or any successor form, the managing
underwriter, if any, shall advise the Company in writing that in its opinion the use of another permitted form is of material importance to the success of the offering, then such registration shall be on such other permitted form. 

(v) The Company shall use its best efforts to keep any Registration Statement filed in response to a Registration Request
effective for as long as is necessary for the Sponsor Funds to dispose of the covered securities. 
 (vi) In the case of an
Underwritten Offering, the Sponsor Funds shall select the underwriters, provided such selection is reasonably acceptable to the Company. 
  

	 	(b)	 Piggy-Back Registration Rights. 

(i) Participation. Subject to Section 9(b)(ii), if the Company proposes to register (other than a
registration on Form S-4 or S-8 or any successor form to such forms or any registration of securities as it relates to an offering and sale to management of the Company
pursuant to any employee stock plan or other employee benefit plan arrangement) any shares of Common Stock in connection with the public offering of such securities (including for this purpose a registration effected by the Company for stockholders
other than the Sponsor Funds), then the Company shall give prompt notice (the “Piggy-Back Notice”) to the Sponsor Funds and each of the Fresh Market Co- Investors and each of the Sponsor Funds
and Fresh Market Co-Investors shall be entitled to include in such registration statement the Registrable Securities held by it. The Piggy-Back Notice shall offer the Sponsor Funds and Fresh Market Co-Investors the right, subject to Section 9(b)(ii) (the “Piggy-Back Registration Right”), to register such number of shares of Registrable Securities as the each such Sponsor Funds and
Fresh Market Co- Investor may request and shall set forth (i) the anticipated filing date of such registration statement and (ii) the number of shares of Common Stock that is proposed to be included
in such registration statement. Subject to Section 9(b)(ii), the Company shall include in such registration statement such shares of Registrable Securities for which it has received written requests to register such shares within twenty
(20) days after the Piggy-Back Notice has been given. Notwithstanding the foregoing, the Piggyback Registration Right of the Berry Investor set forth in this Section 9(b)(i) shall terminate on the date of the Berry Investor
Termination Event. 
 (ii) Underwriters’ Cutback. Notwithstanding the foregoing, if a registration pursuant to
this Section 9(b) involves an Underwritten Offering and the managing underwriter or underwriters of such proposed Underwritten Offering advises the Company that the total or kind of securities intend to include in such offering would be
reasonably likely to adversely affect the price, timing or distribution of the securities offered in such offering, then the number of securities proposed to be included in such registration shall be allocated among the Company, the Sponsor Funds
and the Fresh Market Co-Investors proportionately, such that the number of securities that each such 

  
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 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

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Person shall be entitled to sell in the Underwritten Offering shall be included in the following order: 

(1) In the event of an exercise of any demand rights by the Sponsor Funds: 

first, the Registrable Securities held by the Sponsor Funds exercising a demand right pursuant to
Section 9(a) and the Registrable Securities held by the Persons requesting their Registrable Securities to be included in such registration pursuant to the terms of this Section 9(b) or pursuant to any other agreement in
which the Company has granted piggyback registration rights, pro rata based upon the number of Registrable Securities owned by each such Person at the time of such registration; and 

second, the securities to be issued and sold by the Company in such registration. 

(2) In all other cases: 

first, the securities to be issued and sold by the Company in such registration; and 

second, the Registrable Securities held by the Persons requesting their Registrable Securities be included in such
registration pursuant to the terms of this Section 9(b) or pursuant to any other agreement in which the Company has granted piggyback registration rights, pro rata based upon the number of Registrable Securities owned by each such Person
at the time of such registration. 
 (iii) Lock-up. If the Company at any time
shall register shares of Common Stock under the Securities Act for sale to the public, no Stockholder shall sell publicly, make any short sale of, grant any option for the purchase of, or otherwise dispose publicly of, any capital stock of the
Company without the prior written consent of the Company, for the period of time in which the Sponsor Funds has similarly agreed not to sell publicly, make any short sale of, grant any option for the purchase of, or otherwise dispose publicly of,
any capital stock of the Company. In addition, if requested by the managing underwriter(s), in connection with the initial Qualified Public Offering, all Stockholders shall enter into a customary lock-up
agreement with the managing underwriter(s) for such period as may be required by the managing underwriter(s), subject to customary exceptions in the Company’s discretion. For avoidance of doubt, the foregoing shall not apply to shares of
capital stock of the Company that are purchased in the public markets or are purchased under a registration statement. 

(iv) Company Control. The Company may decline to file a registration statement after giving the Piggy-Back Notice, or
withdraw a registration statement after filing and after such Piggy-Back Notice, but prior to the effectiveness of the registration statement, provided that the Company shall promptly notify each Stockholder in writing of any such action and
provided further that the Company shall bear all reasonable expenses incurred by such Stockholder or otherwise in connection with such withdrawn registration statement. Except as provided in Section 9(a)(vi), notwithstanding any other
provision herein, the Company shall have sole discretion to select any and all underwriters that may participate in any Underwritten Offering. 

(v) Participation in Underwritten Offerings. No Person may participate in any Underwritten Offering hereunder unless
such Person (i) agrees to sell such Person’s securities on the basis provided in any underwriting arrangements approved by the Persons entitled to approve such arrangements and (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements, lock-ups and 

  
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other documents required for such underwriting arrangements. Nothing in this Section 9 (b)(v) shall be construed to create any additional rights regarding the piggy-back registration
of Registrable Securities in any Person otherwise than as set forth herein. 
 (vi) Expenses. The Company will pay all
registration fees and other reasonable expenses in connection with each registration of Registrable Securities requested pursuant to this Section 9(b); provided, that each Stockholder shall pay all applicable underwriting fees,
discounts and similar charges (pro rata based on the securities sold) and that all Stockholders as a group shall be entitled to a single counsel (at the Company’s expense) to be selected by the Sponsor Funds. 

(vii) Indemnification. 

(1) Indemnification by the Company. The Company agrees to indemnify and hold harmless, to the full extent permitted by
law, each selling Stockholder, its officers, directors, employees and representatives and each Person who controls (within the meaning of the Securities Act) such selling Stockholder against any losses, claims, damages, liabilities and expenses
caused by any untrue or alleged untrue statement of a material fact contained in any registration statement, prospectus or preliminary prospectus or any omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statement therein not misleading, except insofar as the same may be caused by or contained in any information furnished in writing to the Company by such selling Stockholder for use therein; provided, however,
that the Company shall not be liable in any such case to the extent that any such loss, claim, damage, liability or expense arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any
such preliminary prospectus if (A) such selling Stockholder failed to deliver or cause to be delivered a copy of the prospectus to the Person asserting such loss, claim, damage, liability or expense after the Company has furnished such selling
Stockholder with a sufficient number of copies of the same and (B) the prospectus completely corrected in a timely manner such untrue statement or omission; and provided, further, that the Company shall not be liable in any such
case to the extent that any such loss, claim, damage, liability or expense arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission in the prospectus, if such untrue statement or alleged untrue
statement, omission or alleged omission is completely corrected in an amendment or supplement to the prospectus and the selling Stockholder thereafter fails to deliver such prospectus as so amended or supplemented prior to or concurrently with the
sale of the securities to the Person asserting such loss, claim, damage, liability or expense after the Company had furnished such selling Stockholder with a sufficient number of copies of the same. The Company will also indemnify underwriters,
selling brokers, dealer managers and similar securities industry professionals participating in the distribution, their officers and directors and each Person who controls such Persons (within the meaning of the Securities Act) to the same extent as
provided above with respect to the indemnification of the selling Stockholder, if requested. 
 (2) Indemnification by
Selling Stockholders. Each selling Stockholder, agrees to severally and not jointly, indemnify and hold harmless, to the full extent permitted by law, the Company, its directors, officers, employees and representatives and each Person who
controls the Company (within the meaning of the Securities Act) against any losses, claims, damages or liabilities 

  
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and expenses caused by any untrue statement of a material fact contained in any registration statement or any omission to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, to the extent, but only to the extent, that such untrue statement or omission is contained in any information or affidavit so furnished in writing by such selling Stockholder to the Company for
inclusion in such registration statement, prospectus or preliminary prospectus and has not been corrected in a subsequent writing prior to or concurrently with the sale of the securities to the Person asserting such loss, claim, damage, liability or
expense. In no event shall the maximum aggregate liability of any selling Stockholder hereunder be greater in amount than the dollar amount of the proceeds received by such selling Stockholder upon the sale of the securities giving rise to such
indemnification obligation (net of any selling expenses paid by such selling Stockholder). The Company and the selling Stockholders shall be entitled to receive indemnities from underwriters, selling brokers, dealer managers and similar securities
industry professionals participating in the distribution, to the same extent as provided above with respect to information so furnished in writing by such Persons for inclusion in any prospectus or registration statement. 

(3) Conduct of Indemnification Proceedings. Any Person entitled to indemnification hereunder will (i) give prompt
(but in any event within 30 days after such Person has actual knowledge of the facts constituting the basis for indemnification) written notice to the indemnifying party of any claim with respect to which it seeks indemnification and
(ii) permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party; provided, however, that any delay or failure to so notify the indemnifying party shall relieve
the indemnifying party of its obligations hereunder only to the extent, if at all, that the indemnifying party is actually prejudiced by reason of such delay or failure; provided, further, however, that any Person entitled to
indemnification hereunder shall have the right to select and employ separate counsel and to participate in the defense of such claim, but the fees and expenses of such counsel shall be at the expense of such Person unless (a) the indemnifying
party has agreed in writing to pay such fees or expenses, or (b) the indemnifying party shall have failed to assume the defense of such claim within a reasonable time after receipt of notice of such claim from the Person entitled to
indemnification hereunder and employ counsel reasonably satisfactory to such Person or (c) in the reasonable judgment of any such Person, based upon advice of counsel, a conflict of interest may exist between such Person and the indemnifying
party with respect to such claims (in which case, if the Person notifies the indemnifying party in writing that such Person elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right
to assume the defense of such claim on behalf of such Person). If such defense is not assumed by the indemnifying party, the indemnifying party will not be subject to any liability for any settlement made without its consent (but such consent will
not be unreasonably withheld), provided that an indemnified party shall not be required to consent to any settlement involving the imposition of equitable remedies or involving the imposition of any material obligations on such indemnified
party other than financial obligations for which such indemnified party will be indemnified hereunder. No indemnifying party will be required to consent to entry of any judgment or enter into any settlement which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation. Whenever the 

  
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indemnified party or the indemnifying party receives a firm offer to settle a claim for which indemnification is sought hereunder, it shall promptly notify the other of such offer. If the
indemnifying party refuses to accept such offer within 20 business days after receipt of such offer (or of notice thereof), such claim shall continue to be contested and, if such claim is within the scope of the indemnifying party’s indemnity
contained herein, the indemnified party shall be indemnified pursuant to the terms hereof. If the indemnifying party notifies the indemnified party in writing that the indemnifying party desires to accept such offer, but the indemnified party
refuses to accept such offer within 20 business days after receipt of such notice, the indemnified party may continue to contest such claim and, in such event, the total maximum liability of the indemnifying party to indemnify or otherwise reimburse
the indemnified party hereunder with respect to such claim shall be limited to and shall not exceed the amount of such offer, plus reasonable out-of-pocket costs and
expenses (including reasonable attorneys’ fees and disbursements) to the date of notice that the indemnifying party desires to accept such offer, provided that this sentence shall not apply to any settlement of any claim involving the
imposition of equitable remedies or to any settlement imposing any material obligations on such indemnified party other than financial obligations for which such indemnified party will be indemnified hereunder. An indemnifying party who is not
entitled to, or elects not to, assume the defense of a claim will not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim in any one jurisdiction,
unless in the written opinion of counsel to the indemnified party, reasonably satisfactory to the indemnifying party, use of one counsel would be expected to give rise to a conflict of interest between such indemnified party and any other of such
indemnified parties with respect to such claim, in which even the indemnifying party shall be obligated to pay the fees and expenses of each additional counsel. 

(4) Other Indemnification. Indemnification similar to that specified in this Section 9(b)(vii) (with appropriate
modifications) shall be given by the Company and each selling Stockholder with respect to any required registration or other qualification of securities under Federal or state law or regulation of governmental authority other than the Securities
Act. 
 (5) Contribution. If for any reason the indemnification provided for in the preceding
clauses 9(b)(vii)(1) and 9(b)(vii)(2) is unavailable to an indemnified party or insufficient to hold it harmless as contemplated by the preceding clauses 9(b)(vii)(1) and 9(b)(vii)(2), then the indemnifying party shall
contribute to the amount paid or payable by the indemnified party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect not only the relative benefits received by the indemnified party and the
indemnifying party, but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations, provided that no selling Stockholder shall be required to contribute in an amount greater
than the dollar amount of the proceeds received by such selling Stockholder with respect to the sale of any securities under this Section 9(b) (net of any selling expenses paid by such Stockholder). No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. 

  
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 Section 10. Affiliate Transactions. Until the date of the Berry Investor
Termination Event, the prior written consent of the Berry Investor will be required prior to the entry into (i) any transaction between the Company, Parent, The Fresh Market and/or any of their respective subsidiaries, on the one hand, and any
Sponsor Fund and/or any of their Affiliates and/or any portfolio companies of Apollo Management VIII, L.P., on the other hand, and (ii) any agreement or arrangement with any Sponsor Fund and/or any of their Affiliates for the payment of fees or
reimbursement of expenses (other than (A) that certain Management Consulting Agreement, dated as of the date hereof, by and among The Fresh Market, Parent and Apollo Management Holdings, L.P. and (B) this Agreement), in each case, unless
the terms of such transaction, agreement or arrangement, as the case may be, are no less favorable to the Company and/or its subsidiaries than would be obtained in a comparable arm’s-length transaction
with an unrelated third-party. 
  

	 	Section 11.	 Restrictive Covenants. 

(a) Confidentiality. Each Fresh Market Co-Investor agrees that such Fresh Market
Co-Investor shall not, and shall cause its Affiliates to not, disclose and to treat and hold as confidential all information, observations and data concerning the business of the Company and its subsidiaries
and including any confidential or proprietary information of any third person in the Company’s possession (collectively, the “Confidential Information”) and, except as otherwise expressly permitted by this Agreement, refrain
from using any of the Confidential Information for the benefit of any Person other than the Company and its Affiliates. In the event that any Fresh Market Co-Investor or any of such Fresh Market Co-Investor’s Affiliates is requested or required (by oral question or request for information or documents in any legal proceeding, interrogatory, subpoena, civil investigative demand, or similar process) to
disclose any Confidential Information, such Fresh Market Co-Investor shall notify the Company promptly of the request or requirement so that the Company may seek an appropriate protective order or waive
compliance with the provisions of this Section 11(a). If, in the absence of a protective order or the receipt of a waiver hereunder, in the event a Fresh Market Co-Investor is compelled to disclose
any Confidential Information to any tribunal, such Fresh Market Co-Investor may disclose the Confidential Information to the tribunal; provided that such Fresh Market
Co-Investor shall use its commercially reasonable efforts to obtain, at the request and expense of the Company, an order or other assurance that confidential treatment shall be accorded to such portion of the
Confidential Information required to be disclosed as the Company shall designate. Notwithstanding the foregoing, for purposes of this Agreement, Confidential Information shall not include information which (i) is or becomes generally available
to the public other than as a result of a disclosure by any Fresh Market Co-Investor or its Affiliates in violation of this Agreement, (ii) was available to such Fresh Market Co-Investor or its Affiliates on a non-confidential basis prior to disclosure by the Company, (iii) becomes available to such Fresh Market
Co-Investor or its Affiliates on a non-confidential basis from a source other than the Company, provided that, to such Fresh Market
Co-Investor’s knowledge after reasonable inquiry, such source is not acting in violation of a confidentiality agreement with the Company or otherwise prohibited from transmitting the information to such
Fresh Market Co-Investor or its Affiliates by a contractual, legal or fiduciary obligation, or (iv) is independently developed by such Fresh Market Co-Investor or
its Affiliates without use of or reference to the Confidential Information. 
 (b)
Non-Solicitation. Each Stockholder other than the Sponsor Funds covenants and agrees that during the Restricted Period, such Stockholder shall not and shall cause its Affiliates not to, directly or
indirectly, (i) induce or attempt to induce any officer or manager of the Company or any of its Affiliates to leave the employ of the Company or any of its Affiliates or (ii) actually hire any officer or manager that is or was employed by
the Company or any of its Affiliates at any time during the 6 months prior to the date such hiring is contemplated; provided, however, that the foregoing shall not prohibit the solicitation of any person by general

  
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advertisements (in any media) or non-directed search inquiries (including through professional search firms or otherwise) for employment not specifically
directed towards employees of the Company or its Affiliates. 
 (c)
Non-Disparagement. Each Stockholder covenants and agrees that such Stockholder shall not and shall cause its Affiliates not to, directly or indirectly, make any disparaging statements or communications
about the Company, any other Stockholder or any of their respective direct or indirect Affiliates, stockholders, directors, members, managers, officers, employees, independent contractors and representatives, provided that no Stockholder shall be
prevented from providing true testimony to the extent required by any legal proceeding or investigation by a competent governmental authority. 

(d) Enforcement. If, at the time of enforcement of any of the provisions of this Section 11, a court
determines that the restrictions stated herein are unreasonable under the circumstances then existing, then the parties hereto agree that the maximum period, scope or geographical area reasonable under the circumstances shall be substituted for the
stated period, scope or area. The parties further agree that such court shall be allowed to revise the restrictions contained herein to cover the maximum period, scope or geographical area permitted by law, but in no event a period longer than the
Restricted Period. 
 (e) Remedies. Each Stockholder acknowledges and agrees that money damages may not be an adequate
remedy for any breach or threatened breach of the provisions of this Section 11 applicable to such Stockholder and that, in such event, the Stockholders, the Company and/or their respective successors or assigns shall, in addition to any other
rights and remedies existing in their favor, be entitled to seek specific performance, injunctive and/or other relief from any court of competent jurisdiction in order to enforce or prevent any violations of the provisions of this
Section 11; provided that such Stockholder is found to have been in violation of the provisions of this Section 11. 

Section 12. Directors’ and Officers’ Liability Insurance; Indemnification Agreements. The Company shall purchase and
maintain a directors and officers insurance policy with an aggregate limit equal to not less than $30 million, and the members of the Parent Board and any Subsidiary Board appointed or designated by the Stockholders shall each be named as
covered insureds thereunder. The Company shall maintain such policy contemplated hereby in effect from the date hereof until six years from the last date upon which any member of the Parent Board and any Subsidiary Board nominated by any of the
Stockholders held office on such board. In addition, the Company, Parent, and The Fresh Market shall enter into indemnification agreements with each member of the Parent Board and each Subsidiary Board in the form of Exhibit A (collectively,
the “Indemnification Agreements”). In the event the Company, Parent, or The Fresh Market or any of its successors or assigns (a) consolidates with or merges into any other person and shall not be the continuing or surviving
corporation or entity of such consolidation or merger, or (b) transfers all or substantially all of the properties and assets to any person, then, and in each such case, proper provision shall be made so that such successors and assigns shall
assume the obligations set forth in this Section 12. 
 Section 13. Notices. In the event a notice or other document is
required to be sent hereunder to the Company or to any Stockholder, such notice or other document shall be deemed given: (a) on the date delivered personally, (b) on the date delivered by a private courier, or (c) on the date sent by
email to the email address upon email confirmation, (d) on the date noted on the return receipt as the delivery or attempted delivery date if mailed, by certified or registered mail, return receipt requested, postage prepaid. Any such notice or
other documents shall be addressed as set forth on Annex I hereto. Any party may effect a change of address for purposes of this Agreement by giving notice of such change to each of the other parties in the manner provided herein. Until such
notice of change of address is properly given, the addresses set forth on Annex I hereto shall be effective for all purposes. 

  
 20 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 Section 14. Amendment. This Agreement may be amended, modified or supplemented
from time to time by an instrument in writing signed by the Company and Apollo Investor; provided, however, that until the date of the Berry Investor Termination Event, any amendment, modification or supplement of any provision of this
Agreement (including, without limitation, Sections 4, 5, 7, 9(b), 10, this Section 14 and any applicable defined terms in such Sections) that will have a material, adverse and disproportionate effect on
the Berry Investor (as compared to the other Stockholders) shall require the prior written consent of the Berry Investor. 
  

	 	Section 15.	 Miscellaneous Provisions. 

(a) THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING
EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE TO BE APPLIED. IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF DELAWARE WILL CONTROL THE
INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT, EVEN IF UNDER SUCH JURISDICTION’S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY. 

(b) Whenever the context requires, the gender of all words used herein shall include the masculine, feminine and neuter, and
the number of all words shall include the singular and plural. Section headings are used for convenience only and shall in no way affect the construction of this Agreement. 

(c) This Agreement shall be binding upon the Company, each of the parties hereto, and their respective permitted successors and
assigns. The Company shall require any Person who acquires any shares of Common Stock (whether from another Stockholder or from the Company) after the date of this Agreement (the “Acquired Securities”) to become a party to this
Agreement and to succeed to all of the rights and obligations of a “Stockholder” under this Agreement by obtaining an executed joinder to this Agreement from such Person in the form and substance approved by the Company Board. Upon the
execution and delivery of the joinder by such Person, such Person shall be a “Stockholder” under this Agreement with respect to the Acquired Securities. Each Additional Stockholder shall be added by the Company to Annex I attached
hereto, and the Company shall amend and restate such Annex I from time to time to reflect the addition of such Additional Stockholders; provided that such amendment shall not be subject to Section 14 of this Agreement. 

(d) Any provision of this Agreement may be waived from time to time by an instrument in writing signed by each party from whom
such waiver is sought. The waiver by any party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach. The specified rights of the Berry Investor may not be waived without the consent of
the Berry Investor. 
 (e) Unless earlier terminated by the mutual agreement of all the parties hereto, this Agreement shall
terminate automatically upon the dissolution of the Company (unless the Company continues to exist after such dissolution as a limited liability company or in another form, whether incorporated in Delaware or another jurisdiction). 

(f) Any Stockholder who disposes of all of his, her or its Common Stock in conformity with the terms of this Agreement shall
cease to be a party to this Agreement and shall have no further rights hereunder other than rights to indemnification under Section 9(b)(vii), if applicable. 

  
 21 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 (g) Each party to this Agreement acknowledges that a remedy at law for any
breach or attempted breach of this Agreement will be inadequate, agrees that each other party to this Agreement shall be entitled to specific performance and injunctive and other equitable relief in case of any such breach or attempted breach and
further agrees to waive (to the extent legally permissible) any legal conditions required to be met for the obtaining of any such injunctive or other equitable relief (including posting any bond in order to obtain equitable relief). 

(h) This Agreement may be executed simultaneously in two or more counterparts, any one of which need not contain the signatures
of more than one party, but all such counterparts taken together will constitute one and the same agreement. It shall not be necessary in making proof of this Agreement to produce or account for more than one such counterpart. 

(i) Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other
provision or any other jurisdiction, and such invalid, illegal or otherwise unenforceable provisions shall be null and void as to such jurisdiction. It is the intent of the parties, however, that any invalid, illegal or otherwise unenforceable
provisions be automatically replaced by other provisions which are as similar as possible in terms to such invalid, illegal or otherwise unenforceable provisions but are valid and enforceable to the fullest extent permitted by law. 

(j) Each party hereto shall do and perform or cause to be done and performed all such further acts and things and shall execute
and deliver all such other agreements, certificates, instruments, and other documents as any other party hereto reasonably may request in order to carry out the provisions of this Agreement and the consummation of the transactions contemplated
hereby. 
 (k) The parties to this Agreement agree that jurisdiction and venue in any action brought by any party hereto
pursuant to this Agreement shall exclusively and properly lie in the Delaware State Chancery Court located in Wilmington, Delaware, or (in the event that such court denies jurisdiction) any federal or state court located in the State of Delaware. By
execution and delivery of this Agreement each party hereto irrevocably submit to the jurisdiction of such courts for himself and in respect of his property with respect to such action. The parties hereto irrevocably agree that venue for such action
would be proper in such court, and hereby waive any objection that such court is an improper or inconvenient forum for the resolution of such action. The parties further agree that the mailing by certified or registered mail, return receipt
requested, of any process required by any such court shall constitute valid and lawful service of process against them, without necessity for service by any other means provided by statute or rule of court. 

(l) No course of dealing between the Company, or its subsidiaries, and the Stockholders (or any of them) or any delay in
exercising any rights hereunder will operate as a waiver of any rights of any party to this Agreement. The failure of any party to enforce any of the provisions of this Agreement will in no way be construed as a waiver of such provisions and will
not affect the right of such party thereafter to enforce each and every provision of this Agreement in accordance with its terms. 

(m) BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN
EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED 

  
 22 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 
BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
SUIT OR PROCEEDING BROUGHT TO ENFORCE OR DEFEND ANY RIGHT OR REMEDIES UNDER THIS AGREEMENT OR ANY DOCUMENTS ENTERED INTO IN CONNECTION WITH THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREIN. 

(n) Except as otherwise expressly provided herein, this Agreement sets forth the entire agreement of the parties hereto as to
the subject matter hereof and supersedes all previous agreements (including, without limitation, the Rollover Agreement) among all or some of the parties hereto, whether written, oral or otherwise, as to such subject matter. Unless otherwise
provided herein, any consent required by the Company may be withheld by the Company in its sole discretion. 
 (o) Except as
otherwise expressly provided herein, no Person not a party to this Agreement, as a third party beneficiary or otherwise, shall be entitled to enforce any rights or remedies under this Agreement; provided that parties entitled to
indemnification pursuant to Section 9(b)(vii) hereof shall have the right to enforce such sections in their own names. 

(p) If, and as often as, there are any changes in the Common Stock by way of stock split, stock dividend, combination or
reclassification, or through merger, consolidation, reorganization or recapitalization, or by any other means, appropriate adjustment shall be made in the provisions of this Agreement, as may be required, so that the rights, privileges, duties and
obligations hereunder shall continue with respect to the Common Stock as so changed. 
 (q) Without limiting anything in the
Company Charter or the Company By-Laws, no Company Director shall be personally liable to the Company or any Stockholder as a result of any acts or omissions taken under this Agreement in good faith. 

(r) In the event additional shares of Common Stock are issued by the Company to a Stockholder at any time during the term of
this Agreement, either directly or upon the exercise or exchange of securities of the Company exercisable for or exchangeable into shares of Common Stock, such additional shares of Common Stock, as a condition to their issuance, shall become subject
to the terms and provisions of this Agreement. 
 (s) Notwithstanding anything to the contrary contained herein, the Sponsor
Funds may assign their rights or obligations, in whole or in part, under this Agreement to any member of the Apollo Group. In the event that any additional members of the Apollo Group becomes an becomes an owner of Common Stock, such member shall
automatically become party to this Agreement and this Agreement shall be amended and restated to provide that such Person or a designee of such Person shall have the same rights and obligations of the Sponsor Funds hereunder. 

*   *   *   *   * 

  
 23 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 This Stockholders Agreement is executed by the Company and by the other parties hereto to be
effective as of the date first above written. 
  

							
	POMEGRANATE PARENT HOLDINGS, INC.
		
	 By:
  
	 	 

  

		 	Name:	 	Andrew S. Jhawar
		 	Title:	 	President
	
	AP VIII POMEGRANATE HOLDINGS, L.P.
		 	By:	 	AP VIII Pomegranate GP, LLC,
		 		 	its General Partner
		
	 By:
  
	 	 

  

		 	Name:	 	Andrew S. Jhawar
		 	Title:	 	President

  
 [Signature Page to
Stockholders Agreement] 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 
			
	TFM2, LLC
		
	 By:
  
	 	 

  

		 	Name: Leslie Anderson
		 	Title:   Manager

  
 [Signature Page to
Stockholders Agreement] 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 
	
	 

  

	George G. Golleher

  
 [Signature Page to
Stockholders Agreement] 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 ANNEX I 

ADDRESSES FOR NOTICE 
  

	1.	 If to the Company: 

 

			
	     Pomegranate Parent Holdings, Inc.

	     c/o Apollo Management VIII, L.P.

	     9 West 57th Street

	     43rd Floor

	     New York, NY 10019

	     Attention:
	 	 Laurie Medley

	     Email:
	 	 lmedley@apollolp.com

   with an additional copy (which shall not constitute notice) to: 

 

			
	     Morgan, Lewis & Bockius, LLP

	     101 Park Avenue

	     New York, New York 10178

	     Attention:
	  	 Robert G. Robison

	     Email:
	  	 robert.robison@morganlewis.com

  

	2.	 If to any Sponsor Fund: 

 

			
	     Apollo Management VIII, L.P.

	     9 West 57th Street

    43rd Floor

	     New York, NY 10019

	     Attention:
	  	 Laurie Medley

	     Email:
	  	 lmedley@apollolp.com

   with an additional copy (which shall not constitute notice) to: 

  Morgan, Lewis & Bockius, LLP 

  101 Park Avenue 

			
	     New York, New York 10178

	     Attention:
	  	 Robert G. Robison

	     Email:
	  	 robert.robison@morganlewis.com

  
 Annex I-1 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

	3.	 If to Berry Investor: 

TFM 2, LLC 
 c/o Leslie L
Anderson 
 Leslie Anderson, CPA, P.C. 

1101 Norwalk Street 
 Greensboro,
NC 27407-2022 
 Email:   Anderson@leslieandersonpc.com 

Ray Berry 
 4540 Gordon Drive

 Naples, FL 34102 

Email:   rdbtfm@gmail.com 

Brett Berry 
 740 Juniper Avenue

 Boulder, CO 80304-1722 

Email:   bmberry@gmail.com 

with additional copies (which shall not constitute notice) to: 

DLA Piper LLP (US) 
 One Atlantic
Center 
 1201 West Peachtree Street, Suite 2800 

Atlanta, Georgia 30309-3450 

Attention:         Joseph Silver, Esq. 

Email:               joseph.silver@dlapiper.com 

 

	4.	 If to Golleher: 

George G. Golleher 
 50 Greenhorn
Road 
 Hailey, ID. 83333 

  
 Annex I-2 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 EXHIBIT A 

Form of Director Indemnification Agreement 

[See attached.] 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 DIRECTOR INDEMNIFICATION AGREEMENT 

THIS DIRECTOR INDEMNIFICATION AGREEMENT (the “Agreement”) is effective as of [●], 2016 by and among [The Fresh Market,
Inc., a Delaware corporation] (the “Company”), and [●] (the “Indemnitee”). 
 WHEREAS, the
Indemnitee has been elected as a director of the Company as of the date of this Agreement; 
 WHEREAS, it is reasonable, prudent and
necessary for the Company contractually to obligate itself to indemnify persons serving as directors of the Company to the fullest extent permitted by applicable law so that they will serve or continue to serve as directors of the Company free from
undue concern that they will not be so indemnified; and 
 WHEREAS, the Indemnitee is willing to serve and/or continue to serve on the Board
of Directors of the Company (the “Board”), on the condition that he be so indemnified; 
 NOW THEREFORE, in consideration
of the promises and the covenants contained herein, the Company and the Indemnitee do hereby covenant and agree as follows: 

Section 1. Services by the Indemnitee. The Indemnitee agrees to serve or continue to serve at the request of the Company as a
director of the Company. Notwithstanding the foregoing, the Indemnitee may at any time and for any reason resign from any such position. 

Section 2. Indemnification – General. The Company shall indemnify, and advance Expenses (as hereinafter defined) to, the
Indemnitee as provided in this Agreement and to the fullest extent permitted by the General Corporation Law of the State of Delaware and Delaware law as in effect at any time. The rights of the Indemnitee provided under the preceding sentence shall
include, but shall not be limited to, the rights set forth in the other Sections of this Agreement. 
 Section 3. Proceedings Other
Than Proceedings by or in the Right of the Company. The Indemnitee shall be entitled to the rights of indemnification provided in this Section 3 if, by reason of his Corporate Status (as hereinafter defined), he was, is, or is
threatened to be made, a party to any threatened, pending or completed Proceeding (as hereinafter defined), other than a Proceeding by or in the right of the Company. Pursuant to this Section 3, the Company shall indemnify the Indemnitee
against Expenses, judgments, fines (including any excise taxes assessed on the Indemnitee with respect to an employee benefit plan) and amounts paid in settlement actually and reasonably incurred by him in connection with such Proceeding, if he
acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal Proceeding, if he also had no reasonable cause to believe his conduct was unlawful. 

Section 4. Proceedings by or in the Right of the Company. The Indemnitee shall be entitled to the rights of indemnification
provided in this Section 4 if, by reason of his Corporate Status, he was, is, or is threatened to be made, a party to any threatened, pending or completed Proceeding brought by or in the right of the Company to procure a judgment in its
favor. Pursuant to this Section 4, the Company shall indemnify the Indemnitee against Expenses actually and reasonably incurred by him in connection with the defense or settlement of such Proceeding if he acted in good faith and in a
manner he reasonably believed to be in or not opposed to the best interests of the Company. Notwithstanding the foregoing, no 

  
 1 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 
indemnification against such Expenses shall be made in respect of any claim, issue or matter in such Proceeding as to which the Indemnitee shall have been adjudged to be liable to the Company or
if applicable law prohibits such indemnification unless and only to the extent that the Court of Chancery of the State of Delaware or the court in which such Proceeding was brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, the Indemnitee is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery of the State of Delaware of such other court shall deem proper. 

 

	 	Section 5.	 Indemnification for Expenses of a Party Who is Wholly or Partly Successful. 

(a) To the extent that the Indemnitee is, by reason of his Corporate Status, a party to and is successful, on the merits or
otherwise, in any Proceeding, the Company shall indemnify the Indemnitee against all Expenses actually and reasonably incurred by him in connection therewith. If the Indemnitee is not wholly successful in defense of any Proceeding but is successful,
on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify the Indemnitee against all Expenses actually and reasonably incurred by him in connection with each such claim,
issue or matter as to which the Indemnitee is successful, on the merits or otherwise. For purposes of this Section 5(a), the term “successful, on the merits or otherwise,” shall include, but shall not be limited to,
(i) the termination of any claim, issue or matter in a Proceeding by withdrawal or dismissal, with or without prejudice, (ii) termination of any claim, issue or matter in a Proceeding by any other means without any express finding of
liability or guilt against the Indemnitee, with or without prejudice, or (iii) the expiration of 120 days after the making of a claim or threat of a Proceeding without the institution of the same and without any promise or payment made to
induce a settlement. The provisions of this Section 5(a) are subject to Section 5(b) below. 
 (b) In
no event shall the Indemnitee be entitled to indemnification under Section 5(a) above with respect to a claim, issue or matter to the extent (i) applicable law prohibits such indemnification or (ii) an admission is made by the
Indemnitee in writing to the Company or in such Proceeding or a final, nonappealable determination is made in such Proceeding that the standard of conduct required for indemnification under this Agreement has not been met with respect to such claim,
issue or matter. 
 Section 6. Indemnification for Expenses as a Witness. Notwithstanding any provisions herein to the contrary,
to the extent that the Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding, the Company shall indemnify the Indemnitee against all Expenses actually and reasonably incurred by him in connection therewith. 

Section 7. Advancement of Expenses. The Company shall advance all reasonable Expenses incurred by or on behalf of the Indemnitee
in connection with any Proceeding within 20 days after the receipt by the Company of a statement or statements from the Indemnitee requesting such advance or advances from time to time, whether prior to or after the final disposition of such
Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by or on behalf of the Indemnitee. The Indemnitee hereby expressly undertakes to repay such amounts advanced, if, but only if, and then only to the extent that,
it shall ultimately be determined by a final, non-appealable adjudication or arbitration decision that the Indemnitee is not entitled to be indemnified against such Expenses. The Indemnitee further undertakes
to return any such advance which remains unspent at the final, non-appealable conclusion of the Proceeding to which the advance related. All amounts advanced to the Indemnitee by the Company pursuant to this
Section 7 and repaid shall be repaid without interest. The Company shall make all advances pursuant to this Section 7 without regard to the financial ability of the Indemnitee to make repayment, without bond or other security
and without regard to the prospect of 

  
 2 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 
whether the Indemnitee may ultimately be found to be entitled to indemnification under the provision of this Agreement. Any required reimbursement of Expenses by the Indemnitee shall be made by
the Indemnitee to the Company within 20 days following the entry of the final, non-appealable adjudication or arbitration decision pursuant to which it is determined that the Indemnitee is not entitle to be
indemnified against such Expenses. 
  

	 	Section 8.	 Procedure for Determination of Entitlement to Indemnification. 

(a) To obtain indemnification under this Agreement, following final disposition of the applicable Proceeding, the Indemnitee shall submit to
the Company in care of the Secretary of the Company a written request therefor, along with such documentation and information as is reasonably available to the Indemnitee and reasonably necessary to determine whether and to what extent the
Indemnitee is entitled to indemnification. The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that the Indemnitee has requested indemnification. 

(b) Upon written request by the Indemnitee for indemnification pursuant to the first sentence of Section 8(a) hereof, a
determination, if required by applicable law, with respect to the Indemnitee’s entitlement thereto shall be made in the specific case; (i) by a majority voted of the Disinterested Directors (as hereinafter defined), even though less than a
quorum; or (ii) by a committee of Disinterested Directors designated by a majority vote of Disinterested Directors, even though less than a quorum; or (iii) if there are no Disinterested Directors, or if the Disinterested Directors so
direct, by Independent Counsel (as hereinafter defined), as selected pursuant to Section 8(c), in a written opinion to the Board, a copy of which hall be delivered to the Indemnitee; or (iv) by the stockholders of the Company. If it
is so determined that the Indemnitee is entitled to indemnification, the Company shall make payment to the Indemnitee within 10 days after such determination. The Indemnitee shall cooperate with the Person or Persons making such determination with
respect to the Indemnitee’s entitlement to indemnification, including providing to such Person or Persons upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which
is reasonably available to the Indemnitee and reasonably necessary to such determination. Notwithstanding the foregoing, if a Change of Control has occurred, the Indemnitee may require a determination with respect to the Indemnitee’s
entitlement to indemnification to be made by Independent Counsel, as selected pursuant to Section 8(c), in a written opinion to the Board. 

(c) In the event the determination of entitlement to the indemnification is to be made by Independent Counsel pursuant to
Section 8(b) hereof, the Independent Counsel shall be selected as provide in this Section 8(c). If a Change of Control shall not have occurred, the Independent Counsel shall be selected by the Board (including a vote of a
majority of the Disinterested Directors if obtainable), and the Company shall give written notice to the Indemnitee advising him of the identity of the Independent Counsel so selected. If a Change of Control shall have occurred, the Independent
Counsel shall be selected by the Indemnitee (unless the Indemnitee shall request that such selection be made by the Board, in which event the preceding sentence shall apply), and approved by the Company (which approval shall not be unreasonably
withheld, conditioned or delayed). If (i) an Independent Counsel is to make the determination of entitlement pursuant to Section 8(b) hereof, and (ii) within 20 days after submission by the Indemnitee of a written request for
indemnification pursuant to Section 8(a) hereof, no Independent Counsel shall have been selected, either the Company or the Indemnitee may petition the Court of Chancery of the State of Delaware for the appointment as Independent Counsel
of a Person selected by such a court or by such other Person as such court shall designate. The Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting pursuant
to Section 8(b) hereof, and the Company shall pay all reasonable fees and expenses incident to the procedures of this Section 8(c), regardless of the manner in which such 

  
 3 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 
Independent Counsel was selected or appointed. Upon the due commencement of any judicial proceeding pursuant to Section 10(a)(iv) of this Agreement, Independent Counsel shall be
discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing). 
  

	 	Section 9.	 Presumptions and Effect of Certain Proceedings; Construction of Certain Phrases. 

(a) In making a determination with respect to whether the Indemnitee is entitled to indemnification hereunder, the Person or
Persons making such determination shall presume that the Indemnitee is entitled to indemnification under this Agreement if the Indemnitee has submitted a request for indemnification in accordance with Section 8(a) of this Agreement, and
anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion to overcome that presumption. 

(b) Subject to the terms of Section 16 hereof, the termination of any Proceeding or of any claim, issue or matter
therein, by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself create a presumption that the Indemnitee did not act in
good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that the Indemnitee had reasonable cause to believe that his conduct was unlawful. 

(c) For purposes of any determination of the Indemnitee’s entitlement to indemnification under this Agreement or
otherwise, the Indemnitee shall be deemed to have acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the interests of the Company, and, with respect to a criminal Proceeding, to have also had
no reasonable cause to believe his conduct was unlawful, if it is determined by the Board or by the Independent Counsel, as applicable, that the Indemnitee’s actions were based on good faith reliance on the records or books of account of the
Company or Another Enterprise or on information supplied to the Indemnitee by the officers of the Company or Another Enterprise in the course of their duties, or on the advice of legal counsel for the Company or Another Enterprise or on information
or records given or reports made to the Company or Another Enterprise by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Company or Another Enterprise. 

 

	 	Section 10.	 Remedies of the Indemnitee. 

(a) In the event that (i) a determination is made pursuant to Section 8 of this Agreement that the Indemnitee
is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 6 of this Agreement, (iii) the determination of entitlement of indemnification is to be made by the
Disinterested Directors, a committee of Disinterested Directors or the stockholders of the Company pursuant to Section 8(b) of this Agreement and such determination shall not have been made and delivered to the Indemnitee in writing
within 20 days after receipt by the Company of the request for indemnification, (iv) the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 8(b) of this Agreement and such
determination shall not have been made in a written opinion to the Board and a copy delivered to the Indemnitee within 20 days after receipt by the Company of the request for indemnification, (v) payment of indemnification is not made pursuant
to Section 6 of this Agreement within 30 days after receipt by the Company of a written request therefor or (vi) payment of indemnification is not made 

  
 4 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 
within 10 days after a determination has been made that the Indemnitee is entitled to indemnification or such determination is deemed to have been made pursuant to Section 8 or
Section 9 of this Agreement, the Indemnitee shall be entitled to an adjudication in the Court of Chancery of the State of Delaware of his entitlement to such indemnification or advancement of Expenses. The Indemnitee shall commence such
Proceeding seeking an adjudication within 180 days following the date on which the Indemnitee first has the right to commence such Proceeding pursuant to this Section 10(a); provided, however, that the foregoing clause shall not
apply in respect of a Proceeding brought by the Indemnitee to enforce his rights under Section 5 of this Agreement. 

(b) In the event that a determination is made pursuant to Section 8 of this Agreement that the Indemnitee is not
entitled to indemnification, any judicial proceeding commenced pursuant to this Section 10 shall be conducted in all respects as a de novo trial on the merits, and the Indemnitee shall not be prejudiced by reason of that adverse
determination. 
 (c) Any judicial adjudication determined under this Section 10 shall be final and binding on
the parties. 
 Section 11. Defense of Certain Proceedings. The Company shall be entitled to participate in the defense of any
Proceeding or to assume the defense thereof, with counsel approved by the Indemnitee, which approval shall not be unreasonably withheld, conditioned or delayed, upon the delivery to the Indemnitee of written notice of its election to do so;
provided, however, that in the event that (i) the use of counsel chosen by the Company to represent the Indemnitee would present such counsel with an actual or potential conflict, (ii) the named parties in any such Proceeding
(including any impleaded parties) include both the Company and the Indemnitee and Indemnitee shall conclude that there may be one or more legal defenses available to him or her that are different from or in addition to those available to the
Company, or (iii) any such representation by the Company would be precluded under the applicable standards of professional conduct then prevailing, then the Indemnitee will be entitled to retain separate counsel (but not more than one law firm
plus, if applicable, local counsel in respect of any particular Proceeding) at the Company’s expense. 
 Section 12. Exception
to Right of Indemnification or Advancement of Expenses. (a) Notwithstanding any other provision of this Agreement, the Indemnitee shall not be entitled to indemnification or advancement of Expenses under this Agreement with respect to any
Proceeding, or any claim, issue or matter therein, brought or made by the Indemnitee against: 
 (i) The Company, except for
(x) any claim or Proceeding in respect of this Agreement and/or the Indemnitee’s rights hereunder, (y) any claim or Proceeding to establish or enforce a right to indemnification under (A) any statute or law, (B) any other
agreement with the Company or (C) the Company’s Certificate of Incorporation or Bylaws as now or hereinafter in effect and (z) any counter-claim or cross-claim brought or made by him against the Company in any Proceeding brought by or
in the right of the Company against him; or 
 (ii) Any other Person, except for Proceedings or claims approved by the Board.

 (b) In the event that a claim for indemnification against liabilities arising under the Securities Act of 1933, as amended
(the “Securities Act”) (other than the payment by the Company of Expenses incurred or paid by the Indemnitee in the successful defense of any Proceeding) is asserted by the Indemnitee in connection with securities being registered
under the 

  
 5 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 
Securities Act, the Company shall, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of competent jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Securities Act and the parties hereto shall be governed by the final adjudication of such issue. 
  

	 	Section 13.	 Contribution. 

(a) If, with respect to any Proceeding, the indemnification provided for in this Agreement is held by a court of competent
jurisdiction to be unavailable to the Indemnitee for any reason other than that the Indemnitee did not act in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to a
criminal Proceeding, that the Indemnitee had reasonable cause to believe his conduct was unlawful, the Company shall contribute to the amount of Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by
the Indemnitee in connection with such Proceeding or any claim, issue or matter therein in such proportion as is appropriate to reflect the relative benefits received by the Indemnitee and the relative fault of the Indemnitee versus the other
defendants or participants in connection with the action or inaction which resulted in such Expenses, judgments, penalties, fines and amounts paid in settlement, as well as any other relevant equitable considerations. 

(b) The Company and the Indemnitee agree that it would not be just and equitable if contribution pursuant to this
Section 13 were determined by pro rata or per capita allocation or by any other method of allocation which does not take into account the equitable considerations referred to in Section 13(a) above. 

(c) No Person found guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any Person who was not found guilty of such fraudulent misrepresentation. 
 Section 14.
Director Liability Insurance. To the extent the Company maintains an insurance policy or policies providing directors’ liability insurance, the Indemnitee will be covered by such policy or policies, in accordance with its or their terms,
to the maximum extent of the coverage available for any director of the Company. 
 Section 15. Security. The Company may, but
shall not be required to, provide security to the Indemnitee for the Company’s obligations hereunder through an irrevocable bank letter of credit, funded trust or other similar collateral. 

Section 16. Settlement of Claims. The Company shall not be required to obtain the consent of the Indemnitee to the settlement of
any Proceeding which the Company has undertaken to defend if such settlement solely involves the payment of money, the Company assumes full and sole responsibility for such settlement and the settlement grants the Indemnitee a complete and
unqualified release in respect of the potential liability. The Company shall not be liable for any amount paid by an Indemnitee in settlement of any Proceeding unless the Company has consented to such settlement, which consent shall not be
unreasonably withheld. 
 Section 17. Duration of Agreement. This Agreement shall be unaffected by the termination of the
Corporate Status of the Indemnitee and shall continue for so long as the Indemnitee may have any liability or potential liability by virtue of his Corporate Status, including, without limitation, the final termination of all pending Proceedings in
respect of which the Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of any Proceeding commenced by the 

  
 6 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 
Indemnitee pursuant to Section 10 of this Agreement relating thereto, whether or not he is acting or serving in such capacity at the time any liability or Expense is incurred for
which indemnification can be provided under this Agreement. 
 Section 18. No Duplication of Payments. The Company shall not be
liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder (or for which advancement is provided hereunder) if and to the extent that Indemnitee has otherwise actually received payment for such amounts under any
insurance policy, contract, agreement or otherwise. 
 Section 19. Limitation of Liability. Notwithstanding any other provision
of this Agreement, neither party shall have any liability to the other for, and neither party shall be entitled to recover from the other, any consequential, special, punitive, multiple or exemplary damages as a result of a breach of this Agreement.

 Section 20. Subrogation. In the event of any payment under this Agreement, the Company shall be subrogated to the extent of
such payment to all of the rights of recovery of the Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to
enforce such rights; provided, however, that no right of advancement or recovery that the Indemnitee may have from any other Person, and no right to coverage from any insurer providing insurance coverage under any policy purchased or maintained by
any other Person or under any personal umbrella liability insurance policy or any policy purchased or maintained by the Indemnitee, shall reduce or otherwise alter the rights of the Indemnitee or the obligations of the Company under applicable law,
the Company’s Certificate of Incorporation, the Company’s Bylaws, any other agreement, a vote of stockbrokers, a resolution of directors or otherwise. 
  

	 	Section 21.	 Definitions. For purposes of this Agreement: 

(a) “Another Enterprise” means any corporation (other than the Company), partnership, limited liability
company, joint venture, trust, employee benefit plan or other enterprise of which the Indemnitee is serving at the request of the Company as a director, officer, employee, partner, member, agent or in a similar capacity. 

(b) “Change of Control” shall mean the occurrence of any one or more of the following: 

(i) Business Combination. Consummation of (x) a reorganization, merger, consolidation, share exchange or other
business combination involving the Company or any of its subsidiaries or the disposition of all or substantially all the assets of the Company, whether in one or a series of related transactions, or (y) the acquisition of assets or stock of
another entity by the Company (either, a “Business Combination”), excluding, however, any Business Combination pursuant to which individuals who were the “beneficial owners” (as such term is defined in Rule 13d-3 under the Exchange Act), respectively, of the then outstanding shares of common stock of the Company (the “Outstanding Stock”) and the combined voting power of the then outstanding securities
entitled to vote generally in the election of directors of the Company (the “Outstanding Company Voting Securities”) immediately prior to such Business Combination beneficially own, upon consummation of such Business Combination,
directly or indirectly, more than 50% of the then outstanding shares of common stock (or similar securities or interests in the case of an entity other than a corporation) and more than 50% of the combined voting power of the then outstanding
securities (or interests) entitled to vote generally in the election of directors (or in the selection of any other similar 

  
 7 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 governing body in the case of an entity other than a corporation) of the Surviving
Corporation (as defined below) in substantially the same proportions as their ownership of the Outstanding Stock and Outstanding Company Voting Securities, immediately prior to the consummation of such Business Combination (that is, excluding any
outstanding voting securities of the Surviving Corporation that such beneficial owners hold immediately following the consummation of the Business Combination as a result of their ownership prior to such consummation of voting securities of any
company or other entity involved in or forming part of such Business Combination other than the Company); or 
 (ii)
Liquidation. Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company (or, if no such approval is required, the consummation of such a liquidation or dissolution). 

(c) “Corporate Status” describes the status of an individual who is or was director of the Company, or is or
was serving at the request of the Company as a director, officer, employee, partner, member, agent or in a similar capacity of Another Enterprise. 

(d) “Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding
for which indemnification is sought by the Indemnitee. 
 (e) “Exchange Act” means the Securities Exchange
Act of 1934, as amended. 
 (f) “Expenses” shall include all reasonable attorneys’ fees, retainers,
court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and all other disbursements or expenses of the types customarily incurred
in connection with prosecuting, defending, preparing to prosecute or defend, investigating or being or preparing to be a witness in a Proceeding. 

(g) “Independent Counsel” means a law firm or a member of a law firm that is experienced in matters of
corporation law and such law firm neither presently is, nor in the past five years has been, retained to represent: (i) the Company or the Indemnitee in any matter material to either such party or (ii) any other party to the Proceeding
giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any Person who, under the applicable standards of professional conduct then prevailing, would have a
conflict of interest in representing either the Company of the Indemnitee in an action to determine the Indemnitee’s rights under this Agreement. 

(h) “Person” means a natural person, firm, partnership, joint venture, association, corporation, company,
limited liability company, trust, business trust, estate or other entity. 
 (i) “Proceeding” includes any
action, suit or proceeding, whether civil, criminal, administrative or investigative. 
 (j) References to “the
Company” shall include, in addition to any resulting corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had
power and authority to indemnify its directors, officers, employees or agents so that any person who is or was a director, officer, employee or agents so that any person who is or was a director, officer, employee or agent of such constituent
corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee, partner, member or agent of another 

  
 8 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 
corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise, shall stand in the same position under the provision of this Agreement with
respect to the resulting or surviving corporation as such person would have with respect to such constituent corporation if its separate existence had continued. 

Section 22. Non-Exclusivity. The Indemnitee’s rights of indemnification and to
receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which the Indemnitee may at any time be entitled under applicable law, the Company’s Certificate of Incorporation, the
Company’s Bylaws, any other agreement, a vote of stockholders, a resolution of directors or otherwise. The Company shall, in connection with any threatened, pending or completed Proceeding to which the Indemnitee was, is, or is threatened to be
made, a party, by reason of his Corporate Status be the indemnitor of first resort and any obligation of any other Person, and any obligation of any insurer providing insurance coverage under any policy purchased or maintained by any other Person,
or under any personal umbrella liability insurance policy or any policy purchased or maintained by the Indemnitee, to provide advancement or indemnification for the same Expenses, liabilities, judgments, penalties, fines and amounts paid in
settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, liabilities, judgments, penalties, fines and amounts paid in settlement) incurred by the Indemnitee shall be
secondary. In no event shall the Company have any indemnification obligation to the Indemnitee in connection with the Indemnitee’s service to any Person other than the Company or Another Enterprise. 

Section 23. Remedies Not Exclusive. No right or remedy herein conferred upon the Indemnitee is intended to be exclusive of any
other right or remedy, and every other right or remedy shall be cumulative of and in addition to the rights and remedies given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or
remedy of the Indemnitee hereunder or otherwise shall not be deemed an election of remedies on the part of the Indemnitee and shall not prevent the concurrent assertion or employment of any other right or remedy by the Indemnitee. 

Section 24. Changes in Law. In the event that a change in applicable law after the date of this Agreement, whether by statute,
rule or judicial decision, expands or otherwise increases the right or ability of a Delaware corporation to indemnify (or to otherwise pay or advance Expenses as to any Proceeding for the benefit of) a member of its board of directors, the
Indemnitee shall, by this Agreement, enjoy the greater benefits so afforded by such change. In the event that a change in applicable law after the date of this Agreement, whether by statute, rule or judicial decision, narrows or otherwise reduces
the right or ability of a Delaware corporation to indemnify (or to otherwise pay or advance Expenses as to any Proceeding for the benefit of) a member of its board of directors, such change shall have no effect on this Agreement or any of the
Indemnitee’s rights hereunder, except and only to the extent required by law. 
 Section 25. Interpretation of Agreement.
No provision of this Agreement will be interpreted in favor of, or against, either of the parties hereto by reason of the extent to which any such party or its counsel participated in the drafting thereof or by reason of the extent to which any
such provision is inconsistent with any prior draft hereof or thereof. 
 Section 26. Severability. If any provision or
provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this agreement (including, without limitation, each
portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; (b) such provision or provisions will be deemed reformed to the extent
necessary to conform to applicable law and to give maximum effect to the intent of the parties 

  
 9 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 
hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision
held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision or provisions held invalid, illegal or unenforceable. 

 

	 	Section 27.	 Governing Law; Jurisdiction and Venue. 

(a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE EXCLUDING (TO THE
GREATEST EXTENT PERMISSIBLE BY LAW) ANY RULE OF LAW THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE. 

(b) Each of the parties (a) consents to submit itself to the personal jurisdiction of the courts of the State of Delaware
in the event any dispute arises out of this Agreement or the transactions contemplated by this Agreement, (b) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court
and (c) agrees that it will not bring any action relating to this Agreement or the transactions contemplated by this Agreement in any court other than the courts of the State of Delaware or any Federal court sitting in the State of Delaware.

 Section 28. Notice by the Indemnitee. The Indemnitee agrees to promptly notify the Company in writing upon
being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder; provided,
however, that the failure of the Indemnitee to timely provide such notice shall not affect the Indemnitee’s right to be indemnified or to receive advancement of Expenses under this Agreement except if, and then only to the extent that,
the Company is actually prejudiced by such failure. 
 Section 29. Notices. All notices, requests, demands and
other communications hereunder shall be in writing and shall be deemed to have been duly given if (a) delivered by hand and received for by the party to whom said notice or other communication shall have been directed, (b) mailed by U.S.
certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed, or (c) sent via facsimile or electronic mail transmission (with electronic or telephonic confirmation of receipt): 

(i) If to the Company: 
 c/o
Apollo Management VIII, L.P. 
 9 West 57th Street, 43rd Floor 

New York, NY 10019 

					
		 	 Attention:
	  	 Laurie Medley, Esq.

		 	 Facsimile:
	  	 (646) 607-0528

		 	 Email: lmedley@apollolp.com

 With a copy to: 

Morgan, Lewis & Bockius LLP 

101 Park Avenue 
 New York, NY
10178 

					
		 	 Attention:
	  	Robert G. Robison, Esq.
		 	 Facsimile: (212) 309-6001

		 	 Email:   robert.robison@morganlewis.com

  
 10 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 (ii) If to the Indemnitee, to the address of the Indemnitee set forth on the
signature page hereof; or to such other address as may have been furnished by any party to the other(s), in accordance with this Section 29. 

Section 30. Modification and Waiver. No supplement, modification or amendment of this Agreement or any provision hereof shall
limit or restrict in any way any right of the Indemnitee under this Agreement with respect to any action taken or omitted by the Indemnitee in his Corporate Status prior to such supplement, modification or amendment. No supplement, modification or
amendment of this Agreement or any provision hereof shall be binding unless executed in writing by both of the Company and the Indemnitee. No waiver of any provision of this Agreement shall be deemed or shall constitute a waiver of any other
provision hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. 
 Section 31. Entire Agreement.
This Agreement embodies the final, entire agreement among the parties hereto with respect to the subject matter hereof and supersedes any and all prior negotiations, commitments, agreements, representations and understandings, whether written or
oral, relating to such subject matter and may not be contradicted or varied by evidence of prior, contemporaneous or subsequent oral agreements or discussions of the parties hereto. 

Section 32. Headings. The headings of the Sections or paragraphs of this Agreement are inserted for convenience only and shall not
be deemed to constitute part of this Agreement or to affect the construction thereof. 
 Section 33. Gender. Use of the
masculine pronoun in this Agreement shall be deemed to include usage of the feminine pronoun where appropriate. 
 Section 34.
Identical Counterparts. This Agreement may be executed in one or more counterparts (whether by original, photocopy or facsimile signature), each of which shall for all purposes be deemed to be an original, but all of which together shall
constitute one and the same Agreement. Only one such counterpart executed by the party against whom enforcement is sought must be produced to evidence the existence of this Agreement. 

Section 35. Successors and Assigns. (a) This Agreement shall be binding upon all successors and assigns of the Company
(including any transferee of all or substantially all of its assets and any successor by merger or operation of law) and shall inure to the benefit of the heirs, executors and administrators of the Indemnitee. 

(b) This Agreement is personal in nature and neither of the parties hereto will, without the consent of the other, assign or
delegate this Agreement or any rights or obligations hereunder except as expressly provided in Section 35(a). Without limiting the generality or effect of the foregoing, the Indemnitee’s right to receive payments hereunder will not
be assignable, whether by pledge, creation of a security interest or otherwise, other than by a transfer by Indemnitee’s will or by the laws of descent and distribution, and, in the event of any attempted assignment or transfer contrary to this
Section 35(b) the Company will have no liability to pay any amount so attempted to be assigned or transferred. 

  
 11 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 [Signature pages follow] 

  
 12 

  

 Confidential Treatment Requested by The Fresh Market Holdings, Inc. 

Pursuant to 17 C.F.R. Section 200.83 
  

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective
as of the date and year first above written. 
  

			
	[THE FRESH MARKET, INC.]
		
	By:	 	                                    
                                
	Name:	 	
	Title:	 	
	
	[●]
	
	                                    
                                         
   
	
	Address:
	
	                                    
                                         
   
	                                    
                                         
   
	                                    
                                         
   
	Facsimile:
                                         
                     
	Email:
                                         
                           

  
 [Signature Page –
Director Indemnification Agreement]

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