Document:

Form of Omnibus Agreement

 Exhibit 10.2 

 
 FORM OF 

 
 OMNIBUS AGREEMENT 

 
 among 

 
 INERGY GP, LLC, 

 
 INERGY, L.P., 

 
 NRGM GP, LLC, 

 
 and 

 
 INERGY MIDSTREAM, L.P. 

 OMNIBUS AGREEMENT 

 
 This OMNIBUS AGREEMENT (“Agreement”) is
entered into on, and effective as of, the Closing Date (as defined herein), among Inergy GP, LLC, a Delaware limited liability company (“NRGY GP”), Inergy, L.P., a Delaware limited partnership (“NRGY”), NRGM GP,
LLC, a Delaware limited liability company (the “General Partner”), and Inergy Midstream, L.P., a Delaware limited partnership (the “Partnership”). The above-named entities are sometimes referred to in this Agreement
each as a “Party” and collectively as the “Parties.” 
  
 R E C I T A L S: 
  
 1. The Parties desire by their execution of this Agreement to evidence their agreement, as more fully set forth in Article II, with respect to NRGY’s right to review and first option with
respect to certain business opportunities. 
  
 2. The
Parties desire by their execution of this Agreement to evidence their agreement, as more fully set forth in Article III, with respect to certain indemnification obligations of the Parties. 

 
 3. The Parties desire by their execution of this Agreement to
evidence their agreement, as more fully set forth in Article IV, with respect to the amount to be paid by the Partnership for certain general and administrative services to be performed by NRGY GP and its Affiliates (as defined herein) as well
as direct expenses, including operating expenses, incurred by NRGY GP and its Affiliates for and on behalf of the Partnership Entities (as defined herein) and other services to be provided among the Parties. 

 
 4. The Parties desire by their execution of this Agreement to
evidence their agreement, as more fully set forth in Article V, with respect to the granting of a license from NRGY to the Partnership Entities. 
  

In consideration of the premises and the covenants, conditions and agreements contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 
  

ARTICLE I 

Definitions 
  

1.1 Definitions 
  

As used in this Agreement, the following terms shall have the respective meanings set forth below: 

 
 “Affiliate” has the meaning given such term
in the Partnership Agreement. 
  

“Agreement” means this Omnibus Agreement, as it may be amended, modified or supplemented from time to time in accordance
with the terms hereof. 
  
 “Cause”
has the meaning given such term in the Partnership Agreement. 

 “Closing Date” means the date of the closing of the Partnership’s
initial public offering of Common Units. 
  

“Common Units” has the meaning given such term in the Partnership Agreement. 

 
 “Conflicts Committee” has the meaning given
such term in the Partnership Agreement. 
  

“Contribution Agreement” means that certain Contribution, Conveyance and Assumption Agreement, dated as of the Closing
Date, among the General Partner, the Partnership, NRGY GP, NRGY and certain of NRGY’s Affiliates, together with the additional conveyance documents and instruments contemplated or referenced thereunder. 

 
 “Covered Environmental Losses” means all
environmental and toxic tort losses, damages, liabilities, injuries, claims, demands, causes of action, judgments, settlements, fines, penalties, costs and expenses (including costs and expenses of any Environmental Activity, court costs and
reasonable attorney’s and experts’ fees) of any and every kind or character, fixed or contingent, by reason of or arising out of: 
  

(i) any violation or correction of violation of Environmental Laws, including performance of any Environmental Activity; or 

 
 (ii) any event, omission or condition associated with
ownership or operation of the Partnership Assets (including the exposure to or presence of Hazardous Substances on, under, about, Releasing or threatening to be Released to or from the Partnership Assets or the exposure to or Release or threatened
Release of Hazardous Substances arising out of operation of the Partnership Assets at non-Partnership Asset locations), including (A) the cost and expense of any Environmental Activities, (B) the cost or expense of the preparation and
implementation of any closure, remedial or corrective action or other plans required or necessary under Environmental Laws and (C) the cost and expense of any environmental or toxic tort pre-trial, trial or appellate legal or litigation support
work. 
  
 “Environmental Activity”
shall mean any investigation, study, assessment, evaluation, sampling, testing, monitoring, containment, removal, disposal, closure, corrective action, remediation (regardless of whether active or passive), natural attenuation, restoration,
bioremediation, response, repair, corrective measure, cleanup or abatement that is required or necessary under any applicable Environmental Law, including institutional or engineering controls or participation in a governmental voluntary cleanup
program to conduct voluntary investigatory and remedial actions for the clean-up, removal or remediation of Hazardous Substances that exceed actionable levels established pursuant to Environmental Laws, or participation in a supplemental
environmental project in partial or whole mitigation of a fine or penalty. 
  
 “Environmental Laws” means all federal, state, regional and local laws, statutes, rules, regulations, orders, judgments, ordinances, codes, injunctions, decrees, Environmental Permits and
other legally enforceable requirements and rules of common law relating to (a) pollution or 

  
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protection of human health, the environment or natural resources, including the federal Comprehensive Environmental Response, Compensation and Liability Act, the Superfund Amendments and
Reauthorization Act, the Resource Conservation and Recovery Act, the Clean Air Act, the Clean Water Act, the Safe Drinking Water Act, the Toxic Substances Control Act, the Oil Pollution Act of 1990, the federal Hazardous Materials Transportation
Act, the Marine Mammal Protection Act, the Endangered Species Act, the National Environmental Policy Act, the federal Occupational Safety and Health Act and other environmental conservation and protection laws, each as amended through the Closing
Date, (b) any Release or threatened Release of, or any exposure of any Person or property to, any Hazardous Substances and (c) the generation, manufacture, processing, distribution, use, treatment, storage, disposal, transport, arrangement
for disposal or transport, or handling of any Hazardous Substances. 
  
 “Environmental Permit” means any permit, approval, identification number, license, registration, certification, filing, notice, consent, exemption, variance or other authorization
required under or issued pursuant to any applicable Environmental Law. 
  
 “General Partner” has the meaning given such term in the introduction to this Agreement. 
  

“Hazardous Substance” means (a) any substance that is designated, defined or classified as a hazardous waste, solid
waste, hazardous material, pollutant, contaminant or toxic or hazardous substance, or terms of similar meaning, or that is otherwise regulated under any Environmental Law, including any hazardous substance as defined under the Comprehensive
Environmental Response, Compensation and Liability Act, as amended, (b) oil as defined in the Oil Pollution Act of 1990, as amended, including oil, gasoline, natural gas, fuel oil, motor oil, waste oil, diesel fuel, jet fuel and other refined
petroleum hydrocarbons and petroleum products and (c) radioactive materials, asbestos containing materials, polychlorinated biphenyls or radon. 
  

“Indemnified Party” means each Partnership Group Member or each NRGY Entity, as the case may be, in
their capacities as parties entitled to indemnification in accordance with Article III.  
  

“Indemnifying Party” means each of the Partnership or NRGY, as the case may be, in their capacity as the parties from
whom indemnification may be required in accordance with Article III. 
  
 “less than 50% NRGM Owner” has the meaning given such term in the Membership Interest Purchase Agreement. 

 
 “Losses” means all losses, damages,
liabilities, claims, demands, causes of action, judgments, settlements, fines, penalties, costs and expenses (including court costs and reasonable attorney’s and experts’ fees) of any and every kind or character, fixed or contingent.

  
 “Membership Interest Purchase
Agreement” means that certain Membership Interest Purchase Agreement, dated as of the Closing Date, by and among NRGY and Inergy Holdings GP, LLC, a Delaware limited liability company. 

  
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 “NGL” means natural gas liquids. 

 
 “NRGM Change of Control” has the meaning
given such term in the Membership Interest Purchase Agreement. 
  
 “NRGY” has the meaning given such term in the introduction to this Agreement. 
  

“NRGY Change of Control” has the meaning given such term in the Membership Interest Purchase Agreement. 

 
 “NRGY Entities” NRGY, NRGY GP and any Person
controlled, directly or indirectly, by NRGY GP other than the General Partner or a member of the Partnership Group; and “NRGY Entity” means any of the NRGY Entities. 
  
 “NRGY GP” has the meaning given such term in the introduction to this Agreement. 

 
 “Partnership” has the meaning given such
term in the introduction to this Agreement. 
  

“Partnership Agreement” means the First Amended and Restated Agreement of Limited Partnership of Inergy Midstream, L.P.,
dated as of the Closing Date, as such agreement is in effect on the Closing Date immediately following the completion of the initial public offering of the Common Units. 

 
 “Partnership Assets” means the natural gas
and NGL storage and transportation assets and associated infrastructure and equity interests owned directly or indirectly by the Partnership upon completion of the initial public offering described in the Registration Statement. 

 
 “Partnership Entities” means the General
Partner and each Partnership Group Member. 
  

“Partnership Group” means the Partnership and its Subsidiaries. 
  
 “Partnership Group Member” means any member of the Partnership Group. 

 
 “Partnership Indemnitee” means any Person
who is an Indemnitee as defined in the Partnership Agreement; provided, however, that for purposes of this definition, the term “Indemnitee” shall exclude NRGY GP and any Affiliate of NRGY GP that is not a Partnership
Group Member. 
  
 “Party” and
“Parties” are defined in the introduction to this Agreement. 
  
 “Person” means an individual or a corporation, limited liability company, partnership, joint venture, trust, business trust, employee benefit plan, unincorporated organization,
association, government body or agency or political subdivision thereof or other entity. 
  
 “Registration Statement” means the Registration Statement on Form S-1 (File No. 333-176445), as amended, filed with the Securities and Exchange Commission with respect to the
proposed initial public offering of Common Units by the Partnership. 

  
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 “Release” means any depositing, spilling, leaking, pumping, pouring,
placing, emitting, discarding, abandoning, emptying, discharging, migrating, injecting, escaping, leaching, dumping or disposing into the environment. 
  

“Retained NRGY Assets” means the assets and equity interests of Tres Palacios Gas Storage LLC and US Salt, LLC conveyed
or otherwise transferred, through the transfer of equity interests, or intended to be conveyed or otherwise transferred, to NRGY or any of its Affiliates (other than the Partnership Entities) pursuant to the Contribution Agreement or the instruments
or other documents referred to in the Contribution Agreement. 
  
 “Subsidiary” has the meaning given such term in the Partnership Agreement. 
  

“Tres Palacios Purchase Agreement” means that certain Purchase and Sale Agreement, dated September 3, 2010, by and
between TP Gas Holding LLC, a Delaware limited liability company, and Inergy Midstream, LLC, a Delaware limited liability company and the predecessor to the Partnership. 

 
 “Voting Securities” means securities of any
class of a Person entitling the holders thereof to vote in the election of, or to appoint, members of the board of directors or other similar governing body of the Person. 

 
 ARTICLE II 

Right to Review and First Option to Purchase 

 
 Until the earlier of (a) an NRGM Change of Control,
(b) an NRGY Change of Control, or (c) the termination of this Agreement pursuant to Section 6.4, the Partnership hereby agrees, and will cause its controlled Affiliates to agree, that in the event that an opportunity to develop,
acquire or invest in an asset or business is presented to NRGY, the Partnership or any of their respective controlled Affiliates, NRGY shall have the first opportunity to acquire, develop or invest in such asset or business before the Partnership or
its controlled Affiliates may acquire, develop or invest in such asset or business. 
  
 ARTICLE III 
 Indemnification 

 
 3.1 Environmental Indemnification. 

 
 (a) Subject to the provisions of Section 3.3 and
provided that the Indemnified Party notifies the Indemnifying Party of such claim prior to the third anniversary of the Closing Date, NRGY shall indemnify, defend and hold harmless the Partnership Group and the Partnership Indemnitees from and
against any Covered Environmental Losses suffered or incurred by the Partnership Group or any Partnership Indemnitee relating to the Partnership Assets, but only to the extent the violations, events, omissions or conditions giving rise to such
Covered Environmental Losses occurred or existed on or before the Closing Date, even if such liability does not accrue until after the Closing Date. Furthermore, subject to the provisions of Section 3.3, NRGY shall indemnify, defend and hold
harmless the Partnership Group and the Partnership Indemnitees from and against any Covered Environmental Losses suffered or 

  
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incurred by the Partnership Group and the Partnership Indemnitees relating to the Retained NRGY Assets, but only to the extent the violations, events, omissions or conditions giving rise to such
Covered Environmental Losses occurred after the Closing Date. 
  
 (b) Subject to the provisions of Section 3.3, the Partnership shall indemnify, defend and hold harmless the NRGY Entities from and against any Covered Environmental Losses suffered or incurred by the
NRGY Entities relating to the Partnership Assets, but only to the extent the violations, events, omissions or conditions giving rise to such Covered Environmental Losses occurred after the Closing Date. 

 
 (c) The aggregate liability of NRGY under Section 3.1(a)
shall not exceed $15 million. The aggregate liability of the Partnership under Section 3.1(b) shall not exceed $15 million. 
  

(d) No claims may be made for indemnification pursuant to Section 3.1 unless and until, and no Party shall be liable to provide
indemnification pursuant to this Section 3.1 to the extent that, the aggregate dollar amount of the Losses suffered or incurred by the Indemnified Party exceeds $100,000 and then only for Losses in excess of $100,000, subject to the limitations
of Section 3.1(c). 
  
 (e) Notwithstanding
anything herein to the contrary, in no event shall NRGY or the Partnership have any indemnification obligations under this Agreement for claims made as a result of additions to or modifications of Environmental Laws promulgated after the Closing
Date. 
  
 3.2 Additional
Indemnification. 
  
 (a) Subject to the
provisions of Section 3.3, NRGY shall indemnify, defend and hold harmless the Partnership Group and the Partnership Indemnitees from and against any Losses suffered or incurred by the Partnership Group or any Partnership Indemnitee resulting
from or arising out of: 
  
 (i) the failure of the
Partnership Group to be the owner of valid and indefeasible easement rights, leasehold and/or fee ownership interests in and to the lands on which are located any Partnership Assets, in each case to the extent that such failure renders the
Partnership Group liable or unable to use or operate the Partnership Assets in substantially the same manner that the Partnership Assets were used and operated immediately prior to the Closing Date as generally described in the Registration
Statement; 
  
 (ii) the failure of the Partnership
Group to have on the Closing Date any consent, license or permit necessary to allow any such Partnership Assets to cross the roads, waterways, railroads and other areas upon which any such Partnership Assets are located as of the Closing Date, in
each case to the extent any such failure renders the Partnership Group unable to use or operate the Partnership Assets in substantially the same manner that the Partnership Assets were owned and operated immediately prior to the Closing Date;

  
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 (iii) the cost of curing any failure or condition set forth in clause (i) or clause
(ii) of this Section 3.2(a) that does not allow any Partnership Asset to be operated in substantially the same manner that the Partnership Assets were owned and operated immediately prior to the Closing Date; 

 
 (iv) all federal, state and local income tax liabilities
attributable to the ownership or operation of the Partnership Assets prior to the Closing Date, including (A) any such income tax liabilities of the Partnership Group that may result from the consummation of the formation transactions for the
Partnership Group occurring on or prior to the Closing Date and (B) any income tax liabilities arising under Treasury Regulation Section 1.1502-6 and any similar provision from applicable state, local or foreign law, by contract, as
successor, transferree or otherwise and which income tax is attributable to having been a member of any consolidated combined or unitary group prior to the Closing Date; 

 
 (v) the assets or operations of the NRGY Entities (other
than the Partnership Assets and the operations of any Partnership Group Member) except to the extent that the NRGY is indemnified with respect to any such Losses under Section 3.1(b); and 
  
 (vi) the Tres Palacios Purchase Agreement; 
  
 provided, however, that, in the case of clauses (i), (ii), (iii) and (v) above, the Indemnified Party
must notify the Indemnifying Party of such claim prior to the third anniversary of the Closing Date, and that in the case of clause (iv) above, the Indemnified Party must notify the Indemnifying Party of such claim prior to the sixtieth day
following the expiration of any applicable statute of limitations. 
  
 (b) Subject to the provisions of Section 3.3, in addition to and not in limitation of the indemnification provided under this Article III, the Partnership shall indemnify, defend, and hold
harmless the NRGY Entities from and against any Losses suffered or incurred by the NRGY Entities by reason of or arising out of: 
  

(i) events and conditions associated with the operation of the Partnership Assets that occurs on or after the Closing Date (other than
Covered Environmental Losses, which are covered by Section 3.1) except to the extent that the Partnership Group and Partnership Indemnitees are indemnified with respect to any such Losses under Section 3.2(a); 

 
 (ii) the failure of the NRGY to be the owner of
(A) valid and indefeasible easement rights, leasehold and/or fee ownership interests in and to the lands on which are located any Retained NRGY Assets and (B) valid title to 100% of the equity interest of Tres Palacios Gas Storage LLC and
US Salt, LLC, in each case to the extent that such failure renders NRGY liable or unable to use or operate the Retained NRGY Assets in substantially the same manner that the Retained NRGY Assets were used and operated immediately prior to the
Closing Date; 
  
 (iii) the failure of the NRGY to
have on the Closing Date any consent or governmental permit necessary to allow (A) the transfer of 100% of the equity interests in Tres Palacios Gas Storage LLC and US Salt, LLC to NRGY or its Affiliates on the Closing Date

  
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or (B) any such Retained NRGY Assets to cross the roads, waterways, railroads and other areas upon which any such Retained NRGY Assets are located as of the Closing Date, in each case to the
extent any such failure renders NRGY unable to use or operate the Retained NRGY Assets in substantially the same manner that the Retained NRGY Assets were owned and operated by the Partnership and its Affiliates immediately prior to the Closing
Date; and 
  
 (iv) the cost of curing any failure or
condition set forth in clause (ii) or clause (iii) of this Section 3.2(b) that does not allow any Retained NRGY Asset to be operated in substantially the same manner that the Retained NRGY Assets were owned and operated immediately
prior to the Closing Date; 
  
 provided, however, that,
in the case of clauses (ii), (iii) and (iv) above, the Indemnified Party must notify the Indemnifying Party of such claim prior to the third anniversary of the Closing Date. 
  
 (c) Notwithstanding anything herein to the contrary, in no event will the Indemnifying Party be obligated to
indemnify the Indemnified Party for any claims, losses or expenses or income taxes referred to in Section 3.1(a), Sections 3.2 (a)(i)-(iv) and Sections 3.2(b)(ii)-(iv), if, and to the extent that such claims, losses or expenses
or income taxes were either (i) reserved for in the Indemnified Party’s financial statements as of the Closing Date, or (ii) are recovered under available insurance coverage, from contractual rights or other recoveries against any
third party. 
  
 3.3 Indemnification
Procedures. 
  
 (a) The Indemnified Party
agrees that within a reasonable period of time after it becomes aware of facts giving rise to a claim for indemnification pursuant to this Article III, it will provide notice thereof in writing to the Indemnifying Party specifying the nature of
and specific basis for such claim; provided, however, that the Indemnified Party shall not submit claims more frequently than once a calendar quarter (or twice in the case of the last calendar quarter prior to the expiration of the
applicable indemnity coverage under this Agreement). Notwithstanding the foregoing, the Indemnified Party’s failure to provide notice under this Section 3.3 will not relieve the Indemnifying Party from liability hereunder with respect to
such matter except in the event and only to the extent that the Indemnifying Party is materially prejudiced by such failure or delay or the Indemnifying Party does not receive notice of the claim prior to the applicable deadline for making such
claim. 
  
 (b) The Indemnifying Party shall have the
right to control all aspects of the defense of (and any counterclaims with respect to) any claims brought against the Indemnified Party that are covered by the indemnification set forth in this Article III, including the selection of counsel
(provided that if such claim involves Covered Environmental Losses, such counsel shall be reasonably acceptable to the Indemnified Party), determination of whether to appeal any decision of any court or similar authority, performance of any
Environmental Activity associated with any Covered Environmental Losses and the settling of any matter or any issues relating thereto; provided, however, that no such settlement shall be entered into without the consent (which consent
shall not be unreasonably withheld, conditioned or delayed) of the Indemnified Party unless it includes a full release of the Indemnified Party from such matter or issues, as the case may be. 

  
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 (c) The Indemnified Party agrees to cooperate fully with the Indemnifying Party with respect
to all aspects of the defense of any claims covered by the indemnification set forth in this Article III, including the prompt furnishing to the Indemnifying Party of any correspondence or other notice relating thereto that the Indemnified
Party may receive, permitting the names of the Indemnified Party to be utilized in connection with such defense, the making available to the Indemnifying Party of any files, records or other information of the Indemnified Party that the Indemnifying
Party considers relevant to such defense and the making available to the Indemnifying Party of any employees of the Indemnified Party; provided, however, that in connection therewith the Indemnifying Party agrees to use reasonable
efforts to minimize the impact thereof on the operations of the Indemnified Party and further agrees to maintain the confidentiality of all files, records and other information furnished by the Indemnified Party pursuant to this Section 3.3. In
no event shall the obligation of the Indemnified Party to cooperate with the Indemnifying Party as set forth in the immediately preceding sentence be construed as imposing upon the Indemnified Party an obligation to hire and pay for counsel in
connection with the defense of any claims covered by the indemnification set forth in this Article III; provided, however, that the Indemnified Party may, at its own option, cost and expense, hire and pay for counsel in connection
with any such defense. The Indemnifying Party agrees to keep any such counsel hired by the Indemnified Party reasonably informed as to the status of any such defense, but the Indemnifying Party shall have the right to retain sole control over such
defense. 
  
 (d) In determining the amount of any
loss, cost, damage or expense for which the Indemnified Party is entitled to indemnification under this Agreement, the gross amount of the indemnification will be reduced by (i) any insurance proceeds realized by the Indemnified Party, and such
correlative insurance benefit shall be net of any incremental insurance premium that becomes due and payable by the Indemnified Party as a result of such claim, (ii) all amounts recovered by the Indemnified Party under contractual indemnities
from third Persons and (iii) any correlative tax benefit. 
  
 (e) NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IN NO EVENT SHALL ANY PARTY’S INDEMNIFICATION OBLIGATION HEREUNDER COVER OR INCLUDE CONSEQUENTIAL, INDIRECT, INCIDENTAL, PUNITIVE, EXEMPLARY,
SPECIAL OR SIMILAR DAMAGES OR LOST PROFITS SUFFERED BY ANY OTHER PARTY ENTITLED TO INDEMNIFICATION UNDER THIS AGREEMENT. 
  

ARTICLE IV 

Provision of Services; Reimbursement 
  

4.1 Agreement to Provide Services. Until such time as this Agreement is terminated as provided in Section 6.4, NRGY GP
and NRGY hereby agree to provide the Partnership Group with such general and administrative services and management and operating services as may be necessary to manage and operate the business and affairs of the Partnership Group, including
accounting, audit, business development, corporate record keeping, treasury services (including cash management), real property/land, legal, operations/engineering, geology/geophysics, 

  
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investor relations, risk management, commercial/marketing, information technology, insurance, government relations/compliance, tax, payroll, human resources and environmental, health and safety
(collectively, “Services”). The Services shall be consistent in nature and quality to the services of such type previously provided by NRGY GP and NRGY in connection with the management and operation of the Partnership Assets prior
to the Closing Date. 
  
 4.2 Reimbursement by
Partnership. Subject to and in accordance with the terms and provisions of this Article IV and such reasonable allocation and other procedures as may be agreed upon by NRGY GP and the General Partner from time to time, the Partnership
hereby agrees to reimburse NRGY GP for all reasonable direct and indirect costs and expenses incurred by NRGY GP or its Affiliates (other than the Partnership Group) in connection with the provision of the Services to the Partnership Group,
including the following: 
  
 (a) any payments or
expenses incurred for insurance coverage and negotiated instruments (including surety bonds and performance bonds) provided by underwriters with respect to the Partnership Assets or the business of the Partnership Group; 

 
 (b) any costs incurred in connection with the provision of
information technology services; 
  
 (c) salaries and
related benefits and expenses of personnel employed by NRGY GP or its Affiliates (other than the Partnership Group) who render Services to the Partnership Group, plus general and administrative expenses associated with such personnel; it being
agreed, however, that such allocation shall not include any costs or expenses attributable to NRGY equity compensation awards; 
  

(d) any taxes or other direct expenses paid by NRGY GP or its Affiliates for the benefit of the Partnership Group; and 

 
 (e) all expenses and expenditures incurred by NRGY GP or its
Affiliates as a result of the Partnership becoming and continuing as a publicly traded entity, including costs associated with annual and quarterly reports, tax return and Schedule K-1 preparation and distribution, independent auditor fees,
partnership governance and compliance, registrar and transfer agent fees, legal fees and independent director compensation; 
  

it being agreed, however, that to the extent any reimbursable costs or expenses incurred by NRGY GP or its Affiliates consist of an allocated portion of
costs and expenses incurred by NRGY GP or its Affiliates for the benefit of both the Partnership Group and the other Affiliates of NRGY, such allocation shall be made on a reasonable cost reimbursement basis as determined by NRGY GP. 

 
 ARTICLE V 

License of Name and Mark 
  

5.1 Grant of License. Upon the terms and conditions set forth in this Article V, NRGY hereby grants and conveys to each
of the entities currently or hereafter comprising a part of the Partnership Group a nontransferable, nonexclusive, royalty free right and license (“License”) to use the name “Inergy” (the “Name”) and any
associated or related marks (the “Mark”). 

  
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 5.2 Ownership and Quality. The Partnership agrees that ownership of the Name
and the Mark and the goodwill relating thereto shall remain vested in NRGY both during the term of this License and thereafter, and the Partnership further agrees, and agrees to cause the other members of the Partnership Group, never to challenge,
contest or question the validity of NRGY’s ownership of the Name and Mark or any registration thereto by NRGY. In connection with the use of the Name and the Mark, the Partnership and any other member of the Partnership Group shall not in any
manner represent that they have any ownership in the Name and the Mark or registration thereof except as set forth herein, and the Partnership, on behalf of itself and the other members of the Partnership Group, acknowledges that the use of the Name
and the Mark shall not create any right, title or interest in or to the Name and the Mark, and all use of the Name and the Mark by the Partnership or any other member of the Partnership Group, shall inure to the benefit of NRGY. The Partnership
agrees, and agrees to cause the other members of the Partnership Group, to use the Name and Mark in accordance with such quality standards established by NRGY and communicated to the Partnership from time to time, it being understood that the
products and services offered by the members of the Partnership Group immediately before the Closing Date are of a quality that is acceptable to NRGY and justifies the License. 

 
 5.3 Termination. The License shall terminate
upon a termination of this Agreement pursuant to Section 6.4. 
  
 ARTICLE VI 
 Miscellaneous 

 
 6.1 Choice of Law; Submission to Jurisdiction.
This Agreement shall be subject to and governed by the laws of the State of Delaware, excluding any conflicts-of-law rule or principle that might refer the construction or interpretation of this Agreement to the laws of another state. Each Party
hereby submits to the jurisdiction of the state and federal courts in the State of Delaware and to venue in Delaware. 
  

6.2 Notice. All notices or requests or consents provided for by, or permitted to be given pursuant to, this Agreement must
be in writing and must be given by depositing same in the United States mail, addressed to the Person to be notified, postpaid, and registered or certified with return receipt requested or by delivering such notice in person or by telecopier or
telegram to such Party. Notice given by personal delivery or mail shall be effective upon actual receipt. Notice given by telegram or telecopier shall be effective upon actual receipt if received during the recipient’s normal business hours or
at the beginning of the recipient’s next business day after receipt if not received during the recipient’s normal business hours. All notices to be sent to a Party pursuant to this Agreement shall be sent to or made at the address set
forth below or at such other address as such Party may stipulate to the other Parties in the manner provided in this Section 6.2. 

  
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 For notice to NRGY GP and NRGY: 
  
 Inergy GP, LLC 
 Two Brush Creek Boulevard, Suite 200 
 Kansas City, Missouri 64112 

Attention: General Counsel 
 Fax: (816) 842-8181 
  
 For notice to the Partnership Entities: 
  
 NRGM GP, LLC 
 Two Brush Creek Boulevard, Suite 200 

Kansas City, Missouri 64112 
 Attention: General Counsel 
 Fax: (816) 842-8181 

 
 6.3 Entire Agreement. This Agreement
constitutes the entire agreement of the Parties relating to the matters contained herein, superseding all prior contracts or agreements, whether oral or written, relating to the matters contained herein. In the event of a conflict between the
provisions of this Agreement and the provisions of the Partnership Agreement, the provisions of the Partnership Agreement shall control. 
  

6.4 Termination. 
  

(a) Termination by NRGY. Notwithstanding any other provision of this Agreement, if (i) the General Partner is
removed as general partner of the Partnership under circumstances where Cause does not exist and the Common Units held by the General Partner, NRGY and their Affiliates are not voted in favor of such removal, (ii) an NRGY Change of Control
occurs or (iii) an NRGM Change of Control occurs, then this Agreement, other than the provisions set forth in Article III hereof, may be terminated by NRGY with 120 days’ prior written notice. 

 
 (b) Termination by the Partnership.
Notwithstanding any other provision of this Agreement, if Inergy Holdings GP, LLC acquires MGP GP, LLC pursuant to the Membership Interest Purchase Agreement, then this Agreement, other than the provisions set forth in Article III hereof, may
be terminated by the Partnership with 120 days’ prior written notice. 
  
 (c) Survival of Obligations under Article III. For the avoidance of doubt, the Parties’ indemnification obligations under Article III shall survive the termination of this Agreement in
accordance with their respective terms. 
  
 6.5
Effect of Waiver or Consent. No waiver or consent, express or implied, by any Party to or of any breach or default by any Person in the performance by such Person of its obligations hereunder shall be deemed or construed to be a
consent or waiver to or of any other breach or default in the performance by such Person of the same or any other obligations of such Person hereunder. Failure on the part of a Party to complain of any act of any Person or to declare any Person in
default, irrespective of how long such failure continues, shall not constitute a waiver by such Party of its rights hereunder until the applicable statute of limitations period has run. 

  
 12 

 6.6 Amendment or Modification. This Agreement may be amended or modified from
time to time only by the written agreement of all the Parties; provided, however, that the Partnership may not, without the prior approval of the Conflicts Committee, agree to any amendment or modification of this Agreement that, in
the reasonable discretion of the General Partner, would be adverse in any material respect to the holders of Common Units. Each such instrument shall be reduced to writing and shall be designated on its face an “Amendment” or an
“Addendum” to this Agreement. 
  
 6.7
Assignment; Third-Party Beneficiaries. No Party shall have the right to assign any of its rights or obligations under this Agreement without the consent of the other Parties hereto. Each of the Parties hereto specifically agrees that
each Partnership Group Member, whether or not a Party to this Agreement, shall be entitled to assert rights and remedies hereunder as third-party beneficiaries hereto with respect to those provisions of this Agreement affording a right, benefit or
privilege to any such entity. Except as contemplated by the preceding sentence, this Agreement does not create any rights or benefits for any entity or individual other than the Parties. 
  
 6.8 Successors. This Agreement shall bind and inure to the benefit of the Parties and to their
respective successors and assigns. 
  
 6.9
Continuation of Work During Dispute. Notwithstanding any dispute, it shall be the responsibility of each Party to continue to perform its obligations under this Agreement pending resolution of the dispute. 

 
 6.10 Counterparts. This Agreement may be
executed in any number of counterparts, including facsimile counterparts, with the same effect as if all signatory Parties had signed the same document. All counterparts shall be construed together and shall constitute one and the same instrument.

  
 6.11 Severability. If any provision
of this Agreement or the application thereof to any Person or circumstance shall be held invalid or unenforceable by a court or regulatory body of competent jurisdiction, the remainder of this Agreement and the application of such provision to other
Persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law. 
  

6.12 Rules of Construction. Whenever the context requires, the gender of all words used in this Agreement shall include the
masculine, feminine and neuter, and the number of all words shall include the singular and plural. All references to Article numbers and Section numbers refer to Articles and Sections of this Agreement. Unless otherwise specifically indicated or the
context otherwise requires, the terms “include,” “includes” and “including” as used in this Agreement shall be deemed to be followed by the words “without limitation.” 

  
 13 

 6.13 Further Assurances. In connection with this Agreement and all
transactions contemplated by this Agreement, each Party agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate, carry out and perform all of the
terms, provisions and conditions of this Agreement and all such transactions. 
  
 6.14 Withholding or Granting of Consent. Unless otherwise provided herein, each Party may, with respect to any consent or approval that it is entitled to grant pursuant to this Agreement,
grant or withhold such consent or approval in its sole and uncontrolled discretion, with or without cause, and subject to such conditions as it shall deem appropriate. 

 
 6.15 Laws and Regulations. Notwithstanding any
provision of this Agreement to the contrary, no Party shall take any act, or fail to take any act, under this Agreement which would violate any applicable law, statute, rule or regulation. 
  
 6.16 Negation of Rights of Limited Partners, Assignees and Third Parties. Except as set forth in
Section 6.7, the provisions of this Agreement are enforceable solely by the Parties, and no stockholder, limited partner, member or assignee of NRGY GP, the Partnership or other Person shall have the right, separate and apart from NRGY GP or
the Partnership, to enforce any provision of this Agreement or to compel any Party to comply with the terms of this Agreement. 
  

6.17 No Recourse Against Officers or Directors. For the avoidance of doubt, the provisions of this Agreement shall not give
rise to any right of recourse against any officer or director of NRGY GP, NRGY, the General Partner, the Partnership or any Partnership Group Member. 
  

6.18 Legal Compliance. The Parties acknowledge and agree that this Agreement, and all services provided under this
Agreement, are intended to comply with any and all laws and legal obligations and that this Agreement should be construed and interpreted with this purpose in mind. 

 
 [Signature Page Follows] 

  
 14 

 IN WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of, the
Closing Date. 
  

			
	INERGY GP, LLC
		
	 By:
	 	  

	 Name:

Title:
	 	 John J. Sherman

President and Chief Executive Officer

  

			
	INERGY, L.P.
		
	 By:
	 	Inergy GP, LLC, its general partner

  

			
		
	 By:
	 	  

	 Name:

Title:
	 	 John J. Sherman

President and Chief Executive Officer

  

			
	NRGM GP, LLC
		
	 By:
	 	  

	 Name:

Title:
	 	 R. Brooks Sherman, Jr.

Executive Vice President and

Chief Financial Officer

  

			
	INERGY MIDSTREAM, L.P.
		
	 By:
	 	NRGM GP, LLC, its general partner

  

			
		
	 By:
	 	  

	 Name:

Title:
	 	 R. Brooks Sherman, Jr.

Executive Vice President and

Chief Financial Officer

  
 Signature Page to the
Omnibus AgreementForm of Inergy Midstream, L.P. Long Term Incentive Plan

 Exhibit 10.3 

 
 FORM OF 

 
 INERGY MIDSTREAM, L.P. LONG TERM INCENTIVE PLAN

  
 SECTION 1 

INTRODUCTION 
  

	1.1	 	Establishment. The Inergy Midstream, L.P. Long-Term Incentive Plan (the “Plan”) has been adopted on
[            ] by NRGM GP, LLC., a Delaware limited liability company, (the “General Partner”), the general partner of Inergy Midstream, L.P, a Delaware limited partnership
(the “Partnership”). 

  

	1.2	 	Purpose. The purpose of this Plan is to encourage employees of the Partnership, the General Partner, and their Affiliates to acquire a proprietary interest in
the growth and performance of the Partnership. The Plan is also designed to assist the Partnership, the General Partner and their Affiliates in attracting and retaining employees, non-employee directors and consultants by providing them with the
opportunity to participate in the financial success and profitability of the Partnership. 

  

SECTION 2 

DEFINITIONS 
  

	2.1	 	Capitalized terms used in this document shall have the meanings as defined herein and in Appendix A to this Plan. 

 

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

  
 SECTION 3 
 PARTICIPATION 
  

	3.1	 	Participants in the Plan shall be those Service Providers, who, in the judgment of the Committee, are performing, or during the term of their incentive arrangement will
perform, important services in the management, operation and financial success of the General Partner or the Partnership, and significantly contribute, or are expected to significantly contribute, to the achievement of long-term economic objectives.
If the Units issuable pursuant to an Award are intended to be registered with the SEC on Form S-8, then only employees, consultants, and directors of the Partnership or a parent or subsidiary of the Partnership (within the meaning of General
Instruction A.1(a) to Form S-8) will be eligible to receive such an Award. Participants may be granted from time to time one or more Awards; provided, however, that the grant of each such Award shall be separately approved by the Committee and,
except as provided for in Section 6.4, the receipt of one such Award shall not result in the automatic receipt of any other Award. In each case, written notice shall be given to the Award recipient, specifying the terms, conditions, rights and
duties related thereto. Each Participant shall enter into an Award Agreement with the General Partner, in such form as the Committee shall determine and which is consistent with the provisions of this Plan, specifying such terms, conditions, rights
and duties. Awards shall be considered as having been granted on the date specified as the Date of Grant in the grant resolution of the Committee. 

 SECTION 4 
 UNIT OPTIONS 
  

	4.1	 	Grant of Options. A Participant may be granted one or more Options; provided, that the Committee may grant Options that are intended to comply with
Section 1.409A-l(b)(5)(i)(A) of the 409A Regulations only to Service Providers performing services on the date of grant for the Partnership or a corporation or other type of entity in a chain of corporations or other entities in which each
corporation or other entity has a “controlling interest” in another corporation or entity in the chain, starting with the Partnership and ending with the corporation or other entity for which the employee, consultant or director performs
services. The Committee may grant Options that are otherwise exempt from or compliant with Code section 409A to any eligible Service Provider. The Committee may grant one or more Options to the same Participant at the same time or at different
times. Options shall be clearly identified, and in no event shall the right to exercise one Option affect the right to exercise any other Option or affect the number of Units for which any other Option may be exercised. For purposes of this
Section 4.1, “controlling interest” means (i) in the case of a corporation, ownership of stock possessing at least 50% of total combined voting power of all classes of stock of such corporation entitled to vote or at least 50% of
the total value of shares of all classes of stock of such corporation; (ii) in the case of a partnership, ownership of at least 50% of the profits interest or capital interest of such partnership; (iii) in the case of a sole
proprietorship, ownership of the sole proprietorship; or (iv) in the case of a trust or estate, ownership of an actuarial interest (as defined in Section 1.414(c)-2(b)(2)(ii) of the Treasury Regulations) of at least 50% of such trust or
estate. 

  

	4.2	 	Terms of Options. Each Option granted under the Plan (i) shall be evidenced by a written Option Award Agreement entered into by the General Partner and the
Participant to whom the Option is granted (the “Option Holder”), (ii) shall contain those terms and conditions required by this Section 4.2, and (iii) may contain such other terms and conditions not inconsistent with this
Section 4.2, as the Committee may consider appropriate in each case. 

  

	 	(a)	 	Number of Units. Each Option Award Agreement shall set forth the number of Units subject to the Option, as determined by the Committee. 

 

	 	(b)	 	Price. Each Option Award Agreement shall state the Option Price for each Unit subject to the Option. Such price shall be determined in each case by the Committee
and may be more or less than the Unit’s Fair Market Value as of the Date of Grant; provided, however, that any Option granted with an exercise price below the Unit Fair Market Value on the Date of Grant must (i) only be exercised on a date
that would otherwise be a permissible distribution date for deferred compensation under Code section 409A and (ii) in all other respects comply with Code section 409A. 

  

	 	(c)	 	Duration of Options and Exercisability. Each Option Award Agreement may state the duration of the Option and the extent to which it shall become exercisable. To
the extent that an Option Award Agreement does not state the Option Period, the Option Period shall be ten years from the Option’s Date of Grant. If any Option is not exercised during its Option Period, it shall be deemed to have been forfeited
and of no further force or effect. 

  

To the extent that an Option Award Agreement does not state the extent to which the Option shall become exercisable, the following rules
shall apply: 
  
 Subject to subsections (c)(i) and
(c)(ii), no Option granted under the Plan shall become exercisable until the fifth (5th) anniversary of an Option’s Date of Grant or, if earlier, the fifth (5th) anniversary of an Option’s Vesting Commencement Date, if any such
Vesting 

  
 2 

 
Commencement Date is specified in the Award Agreement. In the event of a Change in Control, all Options shall become immediately exercisable. 

 

	 	(i)	 	In the event that an Option Holder ceases to be a Service Provider because of the Option Holder’s death or Disability, the Option shall be exercisable according to
the following schedule based upon the number of years that have elapsed since the Option’s Date of Grant or, if a longer period of time, the number of years that have elapsed since the Option’s Vesting Commencement Date, if such a date is
specified in the Award Agreement. 

  

					
	 Anniversary of Option’s

Date of Grant or
 Vesting Commencement Date
	  	Percentage Exercisable	 
	 1st
	  	 	40%	  
	 2nd
	  	 	60%	  
	 3rd
	  	 	80%	  
	 4th and beyond
	  	 	100%	  

  

	 	(ii)	 	In the event that an Option Holder ceases to be a Service Provider because of the termination of the Option Holder’s service by his or her Employer without Cause,
the Option shall be exercisable according to the following schedule based upon the number of years that have elapsed from the Option’s Date of Grant or, if a longer period of time, the number of years that have elapsed since the Option’s
Vesting Commencement Date, if such a date is specified in the Award Agreement. 

  

					
	 Anniversary of Option’s

Date of Grant or
 Vesting Commencement Date
	  	Percentage Exercisable	 
	 1st
	  	 	20%	  
	 2nd
	  	 	40%	  
	 3rd
	  	 	60%	  
	 4th
	  	 	80%	  
	 5th and beyond
	  	 	100%	  

  

	 	(d)	 	Termination of Service, Death, Disability, etc. Each Option Award Agreement may state the period of time the Option, or exercisable portion thereof, may be
exercised after a Participant ceases to be a Service Provider on account of the Service Provider’s death, Disability, retirement, voluntary resignation, removal from the Board, or the Employer having terminated the Service Provider’s
employment with or without Cause. To the extent that an Option Award Agreement does not state the period of time the exercisable portion of an Option may be exercised after a Participant ceases to be a Service Provider, or to the extent an Option
Award Agreement does not explain in as much specificity how the below expiration rules operate (e.g., time of day an Option expires) the following rules shall apply: 

 

	 	(i)	 	 If the Participant ceases to be a Service Provider within the Option Period due to the termination by the Employer of the Participant’s service
(or removal as a non-employee director) for Cause, the entire Option, regardless of whether it is then exercisable, shall immediately expire and be void for all purposes. The effect of this Section 4.2(d)(i) shall be limited to determining the
conditions under which 

  
 3 

	 	
an Option may be rendered null and void, and nothing in this Section 4.2(d)(i) shall restrict or otherwise interfere with the employer’s discretion with respect to the termination of
any Service Provider’s employment or continuance as a director. 

  

	 	(ii)	 	 If the Participant ceases to be a Service Provider in a manner determined by the Committee, in its sole discretion, to constitute retirement (which
determination shall be communicated to the Option Holder), that portion of an Option which is exercisable on the date the Option Holder retires, shall remain exercisable until 5:00 p.m., Kansas City, Missouri time, on the 365th calendar day (or the first Business Day thereafter if the 365th day is a non-Business Day) following the date of the
Participant’s retirement; provided, however, in no event may any portion of the Option be exercised following the expiration of the Option Period. 

 
 If the exercisable portion of the Option is not exercised
within the above permitted period of time, the entire Option shall expire at 5:01 p.m., Kansas City, Missouri time, on the last day such portion of the Option is exercisable and, thereafter, the Option shall be void for all purposes. 

 

	 	(iii)	 	 If the Participant dies (A) while he or she is a Service Provider, or (B) within the 365-day period referred to in clause (ii) above,
that portion of an Option which is exercisable on the date the Option Holder dies, shall remain exercisable by those Beneficiaries entitled to do so until 5:00 p.m., Kansas City, Missouri time, on the 365th calendar day (or the first Business Day thereafter if the 365th day is a non-Business Day) following the Participant’s death;
provided, however, in no event may the Option be exercised following the expiration of the Option Period. 

  

If the exercisable portion of the Option is not exercised within the above permitted period of time, the entire Option shall expire at
5:01 p.m., Kansas City, Missouri time, on the last day such portion of the Option is exercisable and, thereafter, the Option shall be void for all purposes. 
  

	 	(iv)	 	 If the Participant ceases to be a Service Provider because the Participant is Disabled, that portion of an Option which is exercisable on the date of
such cessation of service shall remain exercisable until 5:00 p.m., Kansas City, Missouri time, on the 365th calendar day (or the first Business Day thereafter if the 365th day is a non-Business Day) following the date the Participant ceased to be a Service Provider because of his or her Disability; provided, however, in no event may the Option be exercised following the
expiration of the Option Period. 

  
 If the exercisable portion of the Option is not exercised within such above permitted period of time, the entire Option shall expire at 5:01 p.m., Kansas City, Missouri time, on the last day such portion
of the Option is exercisable and, thereafter, the Option shall be void for all purposes. 
  

	 	(v)	 	 If the Participant ceases to be a Service Provider due to (A) the Participant’s voluntary resignation or (B) the removal of the
Participant from the Board or the Employer’s termination of employment without Cause, that portion of the Option which is exercisable on the date the Option Holder ceased to be a Service Provider, shall remain exercisable until 5:00 p.m.,
Kansas City, Missouri time, on the 180th calendar day (or
the first Business Day thereafter if the 180th day is a non-Business Day) following the date the Participant ceased to be a Service 

  
 4 

 
Provider; provided, however, in no event may the Option be exercised following the expiration of the Option Period. 

 
 If the exercisable portion of the Option is not exercised
within the above permitted period of time, the entire Option shall expire at 5:01 p.m., Kansas City, Missouri time, on the last day such portion of the Option is exercisable and, thereafter, the Option shall be void for all purposes. 

 

	 	(e)	 	Transferability. Except as otherwise determined by the Committee and as provided in Section 11.3, Options shall not be transferable by the Option Holder
except by will or pursuant to the laws of descent and distribution; each Option shall be exercisable (to the extent permitted under the Plan and terms of the applicable Award Agreement) during the Option Holder’s lifetime only by him or her, or
in the event of Disability or incapacity, by his or her guardian or legal representative; and Units issuable pursuant to any Option shall be delivered only to or for the account of the Option Holder, or in the event of Disability or incapacity, his
or her guardian or legal representative. 

  

	 	(f)	 	Exercise, Payments, etc. Each Option Award Agreement may set forth the acceptable method(s) under which the Option may be exercised and the permissible payment
method(s) for exercising the Option granted therein. Unless otherwise provided in the Award Agreement, acceptable payment methods permitted under this Plan include, but are not limited to: (i) cash; (ii) cashier’s check payable to the
order of the General Partner; (iii) a “cashless broker” exercise; (iv) withholding Units from an Option; (v) delivery of other securities or other property; (vi) a recourse note from the Option Holder, to the extent
permitted by applicable law and the policies and procedures of the General Partner and its Affiliates; or (vii) any combination (i) – (vi), above, having a Fair Market Value on the exercise date equal to the relevant aggregate
exercise price. The exercise of the Option shall be deemed effective upon receipt of proper notice by the General Partner and payment to the General Partner. 

 

	 	(g)	 	Vesting Commencement Date. An Option Award Agreement may provide for a Vesting Commencement Date. An Option’s Vesting Commencement Date may be the same as
or different from the Option’s Date of Grant. Unless otherwise provided in the Award Agreement, the Vesting Commencement Date is the Date of Grant. 

 

	4.3	 	Adjustment of Options. Subject to the limitations contained in this Section 4 and Sections 10 and 13, the Committee may make any adjustment to an
outstanding Option it desires including, without limitation, (a) adjusting the Option Price or the number of Units subject to an outstanding Option and (b) subsequently granting a new Option or substituting an existing Option for a new
Option. Such amendment, substitution, or re-grant may result in terms and conditions (including Option Price, number of Units covered, Restriction Period or Option Period) that differ from the terms and conditions of the original Option or
previously granted Options. The Committee may not, however, adversely affect the rights of any Option Holder without the consent of such Option Holder or take any such action that would cause the Option to be subject to the additional 20% income tax
provided by Code section 409A. 

  

	4.4	 	Member Privileges. No Option Holder shall have any rights as a limited partner with respect to any Unit covered by an Option until the Option Holder becomes the
holder of record of such Unit, and no adjustments shall be made for distributions, dividends or other rights as to which there is a record date preceding the date such Option Holder becomes the holder of record of such Unit, except as provided in
Section 10.6. 

  
 5 

 SECTION 5 
 PHANTOM UNITS 
  

	5.1	 	Awards Granted by Committee. Coincident with or following designation for participation in the Plan, a Participant may be granted one or more Phantom Unit Awards
consisting of Phantom Units. The number of Units subject to a Phantom Unit Award shall be determined by the Committee. 

  

	5.2	 	Restrictions/Vesting. Phantom Units received by a Holder will be subject to a Restricted Period. The terms of such Restricted Period shall be set forth in a
Phantom Unit Award Agreement along with the conditions pursuant to which the Phantom Units may become vested or forfeited. A Phantom Unit Award Agreement may provide for, without limitation, the accelerated vesting of Phantom Units upon the
achievement of specified performance goals, whether DERs are granted with respect to such Phantom Units, and such other terms and conditions as the Committee may establish with respect to such Awards. A Holder’s right to sell, encumber or
otherwise transfer a Phantom Unit shall be subject to the limitations of Section 12 hereof. The Committee may in its sole discretion decide the methods of enforcing the restrictions referred to in Section 5.2 and 5.3.

  

	5.3	 	Termination of Service. Unless otherwise stated in the Phantom Unit Award Agreement and subject to Section 8, in the event a Participant ceases to be a
Service Provider for any reason, any Phantom Unit Award then held by the Holder and as to which the Restricted Period has not lapsed shall be forfeited as of the date the Participant ceases to be a Service Provider. The Committee may, in its
discretion, waive in whole or in part such forfeiture with respect to a Participant’s Phantom Units; provided, however that no such action shall be taken by the Committee that would cause an Award to be subject to the additional 20% income tax
provided by Code section 409A. 

  

SECTION 6 

RESTRICTED UNITS 
  

	6.1	 	Grant of Restricted Units. Coincident with or following designation for participation in the Plan, a Participant may be granted one or more Restricted Unit
Awards consisting of Restricted Units. The number of Restricted Units granted to a Participant shall be determined by the Committee. 

  

	6.2	 	Restrictions/Vesting. Restricted Units received by a Holder will be subject to a Restricted Period. The terms of such Restricted Period shall be set forth in a
Restricted Unit Award Agreement and will set forth the conditions under which the Restricted Units may become vested or forfeited, which may include, without limitation, the accelerated vesting upon the achievement of specified performance goals,
and such other terms and conditions as the Committee may establish with respect to such Awards. 

  

	6.3	 	Termination of Service. Unless otherwise stated in a Restricted Unit Award Agreement and subject to Section 8, in the event a Participant ceases to be a
Service Provider for any reason, any Restricted Unit Award then held by the Holder and as to which the Restricted Period has not lapsed shall be forfeited as of the date the Participant ceases to be a Service Provider. The Committee may, in its
discretion, waive in whole or in part such forfeiture with respect to a Participant’s Restricted Units. 

  

	6.4	 	 UDRs. Unless otherwise specifically provided for in an Award Agreement, all Restricted Units shall be granted along with UDRs relating to such
Restricted Units. To the extent provided by the Committee, in its discretion, a grant of Restricted Units may provide that distributions made by the Company with respect to the Restricted Units shall be subject to the same forfeiture and other
restrictions as the Restricted Unit and, if restricted, such distributions shall be held, without 

  
 6 

	 	
interest, until the Restricted Unit vests or is forfeited with the UDRs being paid or forfeited at the same time, as the case may be. Absent such a restriction on the UDRs in the Award Agreement,
UDRs shall be paid to the holder of the Restricted Unit without restriction. 

  

	6.5	 	Lapse of Restrictions. Upon or as soon as reasonably practical following the vesting of each Restricted Unit, the Participant shall be entitled to have the
restrictions removed from his or her Unit certificate so that the Participant then holds an unrestricted Unit. 

  

	6.6	 	Section 83(b) Election. To the extent a Participant desires to make a Code section 83(b) election, the Participant must notify the Company within the
period beginning on the Date of Grant of the Restricted Units and ending thirty (30) calendar days thereafter. If no such notification is made by the Participant within such thirty (30) day period, the Participant shall be precluded from
making such a Code section 83(b) election. 

  
 SECTION 7 
 ADDITIONAL AWARDS 

 

	7.1	 	Unit Awards. The Committee shall have the authority to grant a Unit Award under the Plan to any Service Provider in a number determined by the Committee in its
discretion, as a bonus or additional compensation or in lieu of cash compensation the individual is otherwise entitled to receive, in such amounts as the Committee determines to be appropriate. 

 

	7.2	 	Other Unit Based Awards. The Committee is authorized, subject to limitations under applicable law, to grant to Participants such other Awards that may be
denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Units, as deemed by the Committee to be consistent with the purposes of this Plan, including, without limitation, convertible or
exchangeable debt securities, other rights convertible or exchangeable into Units, purchase rights for Units, Awards with value and payment contingent upon performance of the Partnership or any other factors designated by the Committee, and Awards
valued by reference to the book value of Units or the value of securities of or the performance of specified Affiliates of the General Partner or the Partnership. The Committee shall determine the terms and conditions of such Awards. Units delivered
pursuant to an Award in the nature of a purchase right granted under this Section 7.2 shall be purchased for such consideration, paid for at such times, by such methods, and in such forms, including, without limitation, cash, Units, other
Awards, or other property, as the Committee shall determine. Cash awards, as an element of or supplement to, or independent of any other Award under this Plan, may also be granted pursuant to this Section 7.2. 

 

	7.3	 	DERs. The Committee is authorized to grant DERs, either alone or in tandem with an Award (other than a Restricted Unit or Unit Award), and may provide that such
DERs shall be paid directly to the Participant, be reinvested into additional Awards, be credited to a bookkeeping account (with or without interest in the discretion of the Committee) subject to the same vesting restrictions as the tandem Award (if
applicable), or be subject to such other provisions or restrictions as determined by the Committee in its discretion. Absent a contrary provision in the Award Agreement, DERs shall be paid to the Participant without restriction at the same time as
ordinary cash distributions are paid by the Partnership to its unitholders. Notwithstanding the foregoing, DERs shall only be paid in a manner that is either exempt from or in compliance with Code section 409A and the 409A Regulations.

  

	7.4	 	 Substitute Awards. Awards may be granted under the Plan in substitution for similar awards held by individuals who become Service Providers as a
result of a merger, consolidation or acquisition by the Partnership or an Affiliate of another entity or the assets of another entity. Such Substitute Awards that are Options may have exercise prices less than the Fair Market Value of a

  
 7 

	 	
Unit on the date of the substitution if such substitution complies with Code section 409A and the 409A Regulations and other applicable laws and exchange rules. 

 

	7.5	 	Performance Awards. The right of a Participant to receive a grant, and the right of a Participant to exercise or receive a grant or settlement of any Award, and
the timing thereof, may be subject to such performance conditions as may be specified by the Committee. The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance
conditions, and may exercise its discretion to reduce or increase the amounts payable under any Award subject to performance conditions. 

  

	 	(a)	 	Performance Goals Generally. The performance goals for such Performance Awards shall consist of one or more business criteria or individual performance criteria
and a targeted level or levels of performance with respect to each of such criteria, as specified by the Committee consistent with this Section 7.5. The Committee may determine that such Performance Awards shall be granted, exercised, and/or
settled upon achievement of any one performance goal or that two or more of the performance goals must be achieved as a condition to grant, exercise and/or settlement of such Performance Awards. The Committee shall establish any such performance
conditions and goals based on one or more business criteria for the General Partner and/or the Partnership, on a consolidated basis, and/or for specified Affiliates or business or geographical units of the Partnership, as determined by the Committee
in its discretion, which may include (but are not limited to) one or more of the following: (A) earnings per Unit, (B) increase in revenues, (C) increase in cash flow, (D) increase in cash flow from operations, (E) increase
in cash flow return, (F) return on net assets, (G) return on assets, (H) return on investment, (I) return on capital, (J) return on equity, (K) economic value added, (L) operating margin, (M) contribution
margin, (N) net income, (O) net income per Unit, (P) pretax earnings, (Q) pretax earnings before interest, depreciation and amortization, (R) pretax operating earnings after interest expense and before incentives, service
fees, and extraordinary or special items, (S) total unitholder return, (T) debt reduction, (U) market share, (V) change in the Fair Market Value of the Units, (W) operating income, and (X) any of the above goals
determined on an absolute or relative basis or as compared to the performance of a published or special index deemed applicable by the Committee including, but not limited to, the Standard & Poor’s 500 Stock Index or a group of
comparable companies. Performance goals may differ for Performance Awards granted to any one Participant or to different Participants. 

  

	 	(b)	 	Performance Periods. Achievement of performance goals in respect of such Performance Awards shall be measured over a performance period of up to ten years, as
specified by the Committee. Performance goals shall be established by the Committee not later than ninety (90) days after the beginning of any performance period applicable to such Performance Awards. 

 

	 	(c)	 	 Settlement. At the end of each performance period, the Committee shall determine the amount, if any, of the amount of the potential Performance
Award otherwise payable to each Participant and such amount shall be paid to the Participant no later than March 15 of the year following the year that included the last day of the performance period. Settlement of such Performance Awards shall
be in cash, Units, other Awards or other property, in the discretion of the Committee. The Committee may, in its discretion, reduce or increase the amount of a settlement otherwise to be made in connection with such Performance Awards. The Committee
shall specify the circumstances in which such Performance Awards shall be paid or forfeited in the event of termination of employment 

  
 8 

	 	
by the Participant prior to the end of a performance period or settlement of Performance Awards. 

 
 SECTION 8 

REORGANIZATION, CHANGE IN CONTROL OR LIQUIDATION 
  

	8.1	 	In the event of a Change in Control, all Awards then outstanding shall become fully exercisable and payable in full, as the case may be, on such Change in Control or at
such earlier time as the Committee may provide. In the event the Partnership, the General Partner, Inergy GP or Inergy shall become a party to any corporate or partnership merger, consolidation, split-up, spin-off, reorganization, change in the
membership of the board of directors (or its equivalent), or liquidation that does not constitute a Change in Control (a “Similar Event”), the Committee, in its sole discretion, may provide for the complete or partial acceleration of any
time periods relating to the exercise or vesting of any outstanding Award so that such Award may be exercised or paid in full, as the case may be, on or before the date such Award would otherwise have been exercisable or payable. In addition, in the
event of a Change in Control or a Similar Event the Committee may, without the approval of any Person, including any Participant, in its sole discretion (A) cause any Award then outstanding to be assumed by the surviving entity in such
transaction; (B) require the mandatory surrender to the General Partner by any Participant or beneficiary of some or all of the outstanding Awards held by such Person (irrespective of whether such Awards are then exercisable or payable under
the provisions of the Plan) as of a date specified by the Committee, in which event such Awards shall be cancelled and each Person paid an amount of cash per unit equal to the amount that could have been attained upon the exercise or vesting of such
Award or realization of the holder’s rights had such Award been currently exercisable or payable; (C) require the substitution of a new Award for some or all of the outstanding Awards held by a holder (irrespective of whether such Awards
are then exercisable or vested under the provisions of the Plan) provided that any replacement or substituted Award shall be equivalent in economic value to the holder, as determined by the Committee; (D) make such adjustments to any Award then
outstanding as the Committee deems appropriate to reflect such Change in Control or Similar Event; and (E) require that any Award must be exercised in connection with or prior to the closing of such Change in Control or Similar Event, and that
if not so exercised such Award will expire. Any such determinations by the Committee may be made generally with respect to all Participants, or may be made on a case-by-case basis with respect to particular Participant(s). However, no action shall
be taken by the Committee that would cause an Award to be subject to the additional 20% income tax provided by Code section 409A. 

  

SECTION 9 
 PLAN
ADMINISTRATION 
  

	9.1	 	 Authority of Committee. The Plan shall be administered by the Committee. Subject to the terms of the Plan and applicable law, and in addition to
other express powers and authorizations conferred on the Committee by the Plan, the Committee shall have full power and authority to: (i) select the Service Providers to whom Awards may from time to time be granted hereunder;
(ii) determine the type or types of Awards to be granted to eligible Service Providers; (iii) determine the number of Units to be covered by, or with respect to which payments, rights, or other matters are to be calculated in connection
with, Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, and to what extent, and under what circumstances Awards may be settled or exercised in cash, Units, other Awards or other property,
(vi) determine whether, to what extent, under what circumstances, and the method(s) by which Awards may be exercised, vested, settled, canceled, forfeited, or suspended; (vii) determine, subject to the requirements of

  
 9 

	 	
Code section 409A, whether, to what extent, and under what circumstances cash, Units, other Awards, other property, and other amounts payable with respect to an Award shall be deferred either
automatically or at the election of the holder thereof or of the Committee; (viii) determine whether, to what extent, and under what circumstances Awards may be transferred under circumstances other than by transfer by will or by the laws of
descent and distribution; (ix) correct any defect, supply an omission, reconcile any inconsistency and otherwise interpret and administer the Plan and any Award Agreement relating to the Plan or any Award hereunder; (x) modify and amend
the Plan, establish, amend, suspend, or waive such rules, regulations and procedures of the Plan, and appoint such agents as it shall deem appropriate for the proper administration of the Plan; and (xi) make any other determination and take any
other action that the Committee deems necessary or desirable for the administration of the Plan. The Committee shall retain full power and discretion to accelerate, waive or modify, at any time, any term or condition of an Award that is not
mandatory under the Plan; provided, however, that the Committee shall not have any discretion to accelerate the terms of payment of any Award that provides for a deferral of compensation under Code section 409A and the 409A Regulations if such
acceleration would make such Award subject to the additional 20% income tax provided by Code section 409A. A majority of the members of the Committee may determine its actions and fix the time and place of its meetings. 

 

	9.2	 	Manner and Exercise of Committee Authority. At any time that a member of the Committee is not a Qualified Member, any action of the Committee relating to an
Award granted or to be granted to a Participant who is then subject to Section 16 of the 1934 Act in respect of the Partnership may be taken either (i) by a subcommittee, designated by the Committee, composed solely of two or more
Qualified Members, or (ii) by the Committee but with each such member who is not a Qualified Member abstaining or recusing himself or herself from such action; provided, however, that upon such abstention or recusal the Committee remains
composed solely of two or more Qualified Members. Such action, authorized by such a subcommittee or by the Committee upon the abstention or recusal of such non-Qualified Member(s), shall be the action of the Committee for all purposes of the Plan.
Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions under or with respect to the Plan or any Award shall be within the sole discretion of the Committee, may be made at any time and
shall be final, conclusive, and binding upon all Persons, including, without limitation, the General Partner, the Partnership, any Affiliate, any Participant, and any beneficiary of a Participant. The express grant of any specific power to the
Committee, and the taking of any action by the Committee, shall not be construed as limiting the power or authority of the Committee. Subject to the Plan and any applicable law, the Committee, in its sole discretion, may delegate any or all of its
powers and duties under the Plan, including the power to grant Awards under the Plan, to the Chief Executive Officer of the General Partner, subject to such limitations on such delegated powers and duties as the Committee may impose, if any, and
provided that the Committee may not delegate its duties where such delegation would violate state corporate law, or with respect to making Awards to, or otherwise with respect to Awards granted to, Participants who are subject to Section 16(b)
of the 1934 Act. Upon any such delegation, all references in the Plan to the “Committee,” other than in Section 13 shall be deemed to include the Chief Executive Officer. Any such delegation shall not limit the Chief Executive
Officer’s right to receive Awards under the Plan; provided, however, the Chief Executive Officer may not grant Awards to himself, a director or any executive officer of the General Partner or an Affiliate, or take any action with respect to any
Award previously granted to himself, an individual who is an executive officer or a director. Under no circumstances shall any such delegation result in the loss of an exemption under Rule 16b-3(d)(1) for Awards granted to Participants subject to
Section 16 of the 1934 Act in respect of the Partnership. 

  
 10 

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

  

SECTION 10 
 UNITS
SUBJECT TO THE PLAN 
  

	10.1	 	Number of Units. Subject to adjustment as provided for in this Section 10, the maximum number of Units that may be issued under the Plan is
[            ]; provided, however, that the maximum number of Units that may be issued under the Plan shall increase automatically on the first business day of the Partnership’s
fiscal year, commencing [            ], to equal 10% of the Partnership’s total common units outstanding as of such date. The Committee shall have the right in its reasonable
discretion to accelerate the date of the annual automatic increase in the event of a merger, acquisition or other significant transaction involving the Partnership. In no event shall number of Units available for issuance under the Plan be reduced
as a result of this provision. 

  

	10.2	 	Unused and Forfeited Units. Units withheld from an Award or surrendered by a Participant to satisfy the Partnership’s or an Affiliate’s tax withholding
obligations (including the withholding of Units with respect to Restricted Units) or to satisfy the payment of any exercise price with respect to the Award shall not be considered to be Units delivered under the Plan for this purpose. If any Award
is forfeited, cancelled, exercised, settled in cash, or otherwise terminates or expires without the actual delivery of Units pursuant to such Award (the grant of Restricted Units is not a delivery of Units for this purpose), the Units subject to
such Award shall again be available for Awards under the Plan (including Units not delivered in connection with the exercise of an Option). 

  

	10.3	 	Sources of Units Deliverable Under Awards. Any Units delivered pursuant to an Award shall consist, in whole or in part, of Units acquired in the open market,
from any Affiliate, the Partnership or other combination of the foregoing, as determined by the Committee in its discretion. 

  

	10.4	 	 Adjustments for Change in Capitalization. In the event that the Committee determines that any distribution (whether in the form of cash, Units,
other securities, or other property), liquidation, recapitalization, unit split, stock split, reverse split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Units or other securities of the
Partnership, issuance of warrants or other rights to purchase Units or other securities of the Partnership, or other similar transaction or event affects the Units such that an adjustment is determined by the Committee to be appropriate in order to
prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of Units (or
other securities or property) with respect to which Awards may be granted, (ii) the number and type of Units (or other securities or property) subject to outstanding Awards, and (iii) the grant or exercise price with respect to any Award
or, if deemed appropriate, make provision for a cash payment to the Holder of an outstanding Award; provided, that the number of Units subject to any Award shall always be a whole number. In the case of any such substitution or adjustment

  
 11 

	 	
affecting an Option, such substitution or adjustments shall be made in a manner that complies with Code section 409A and the 409A Regulations. 

 

	10.5	 	Anti-dilution Adjustments. Notwithstanding anything in this Section 10 to the contrary, with respect to any “equity restructuring” event that
could result in an additional compensation expense to the General Partner or the Partnership pursuant to the provisions of FASB Accounting Standards Codification, Topic 718 if adjustments to Awards with respect to such event were discretionary, the
Committee shall equitably adjust the number and type of Units covered by each outstanding Award and the terms and conditions, including the exercise price and performance criteria (if any), of such Award to equitably reflect such restructuring event
and shall adjust the number and type of Units (or other securities or property) with respect to which Awards may be granted after such event. With respect to any other similar event that would not result in an accounting charge under FASB Accounting
Standards Codification, Topic 718 if the adjustment to Awards with respect to such event were subject to discretionary action, the Committee shall have complete discretion to adjust Awards in such manner as it deems appropriate with respect to such
other event. In the event the Committee makes any adjustment pursuant to the foregoing provisions of this Section 10.5, the Committee shall make a corresponding and proportionate adjustment with respect to the maximum number of Units that may
be delivered with respect to Awards under the Plan as provided in Section 10.1 and the kind of Units or other securities available for grant under the Plan. 

 

	10.6	 	Unit Certificates. All certificates for Units or other securities of the Partnership delivered under the Plan pursuant to any Award or the exercise thereof shall
be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the SEC, any stock exchange upon which such Units or other securities are then
listed, and any applicable federal or state laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 

 

	10.7	 	Determination by Committee, etc. Adjustments under this Section 10 shall be made by the Committee, whose determinations with regard thereto shall be final
and binding upon all persons. 

  

SECTION 11 
 RIGHTS
OF EMPLOYEES; PARTICIPANTS 
  

	11.1	 	Employment. Nothing contained in the Plan or in any Award granted under the Plan shall confer upon any Participant any right with respect to the continuation of
his or her services as a Service Provider or interfere in any way with the right of his or her employer, subject to the terms of any separate employment or consulting agreement to the contrary, at any time to terminate such services or to increase
or decrease the compensation of the Participant from the rate in existence at the time of the grant of an Award. Whether an authorized leave of absence, or absence in military or government service, shall constitute a termination of the
Participant’s services as a Service Provider shall be determined by the Committee at the time. 

  

	11.2	 	 Nontransferability. Except as provided in Section 11.3, no right of any Holder in an Award granted pursuant to the Plan shall be assignable
or transferable during the lifetime of the Holder either voluntarily or involuntarily, or be subjected to any lien, directly or indirectly, by operation of law, or otherwise, including execution, levy, garnishment, attachment, pledge or bankruptcy.
In the event of a Holder’s death, a Holder’s rights in all Awards shall, to the extent permitted by the Committee and as provided for in accordance with this Plan, be transferable by testamentary will or the laws of descent and
distribution, and payment of any amounts due under the Plan shall be made to, and the exercise of any Options may be made by, the Holder’s legal representatives, 

  
 12 

	 	
heirs or legatees. If, in the opinion of the Committee, a person entitled to payments or to exercise rights with respect to the Plan is disabled from caring for his or her affairs because of a
mental condition, physical condition or age, payment due such person may be made to, and such rights shall be exercised by, such person’s guardian, conservator, or other legal personal representative upon furnishing the Committee with evidence
satisfactory to the Committee of such disabled status. 

  

	11.3	 	Permitted Transfers. Pursuant to conditions and procedures established by the Committee from time to time, the Committee may permit Awards to be transferred to,
exercised by and paid to certain persons or entities related to a Participant, including but not limited to members of the Participant’s immediate family, charitable institutions, or trusts or other entities whose beneficiaries or beneficial
owners are members of the Participant’s immediate family and/or charitable institutions. In the case of initial Awards, at the request of the Participant, the Committee may permit the naming of the related person or entity as the Option
recipient. Any permitted transfer shall be subject to the condition that the Committee receive evidence satisfactory to it that the transfer is being made for estate and/or tax planning purposes on a gratuitous or donative basis and without
consideration (other than nominal consideration). 

  
 SECTION 12 
 GENERAL RESTRICTIONS 

 

	12.1	 	Investment Representations. The General Partner may require any person to whom an Option or other Award is granted, as a condition of exercising such Option or
receiving Units under the Award, to give written assurances in substance and form satisfactory to the General Partner and its counsel to the effect that such person is acquiring the Unit subject to the Option or the Award for his own account for
investment and not with any present intention of selling or otherwise distributing the same, and to such other effects as the General Partner deems necessary or appropriate in order to comply with federal and applicable state securities laws.
Legends evidencing such restrictions may be placed on the certificates evidencing the Unit. 

  

	12.2	 	Compliance with Securities Laws. Each Award shall be subject to the requirement that, if at any time counsel to the Partnership shall determine that the listing,
registration or qualification of the Units subject to such Award upon any securities exchange or under any state or federal law, or the consent or approval of any governmental or regulatory body, is necessary as a condition of, or in connection
with, the issuance or purchase of Units thereunder, such Award may not be accepted or exercised in whole or in part unless such listing, registration, qualification, consent or approval shall have been effected or obtained on conditions acceptable
to the Committee. Nothing herein shall be deemed to require the Partnership to apply for or to obtain such listing, registration or qualification. 

 

	12.3	 	Unit Restriction Agreement. The Committee may provide that Units issuable upon the exercise of an Option or the vesting of a Restricted Unit, Phantom Unit or
other Award shall, under certain conditions, be subject to restrictions whereby the General Partner has a right of first refusal with respect to such Units or a right or obligation to repurchase all or a portion of such Units, which restrictions may
survive a Participant’s cessation or termination as a Service Provider. 

  
 SECTION 13 
 PLAN AMENDMENT, MODIFICATION AND TERMINATION 

 

	13.1	 	 The Committee may at any time terminate, and from time to time may amend or modify, the Plan; provided, however, that no amendment or modification may
become effective without approval of the amendment or modification by the General Partner or the unitholders of the 

  
 13 

	 	
Partnership if the General Partner or unitholders’ approval is required to enable the Plan to satisfy any applicable statutory, regulatory or listing requirements, or if the General Partner,
on the advice of counsel, determines that the General Partner’s approval is otherwise necessary or desirable. 

  

Solely with respects to Awards then outstanding under the Plan, no amendment, modification or termination of the Plan shall adversely
affect, in a material way, Holders of such outstanding Awards, without the consent of the Holder holding such Awards. 
  

SECTION 14 

WITHHOLDING 
  

	14.1	 	Withholding Requirement. Unless other arrangements have been made that are acceptable to the General Partner or an Affiliate, the Partnership or an Affiliate is
authorized to deduct, withhold, or cause to be deducted or withheld, from any Award, from any payment due or transfer made under any Award or from any compensation or other amount owing to a Participant the amount (in cash, Units, Units that would
otherwise be issued pursuant to such Award or other property) of any applicable taxes payable in respect of the grant or settlement of an Award, its exercise, the lapse of restrictions thereon, or any other payment or transfer under an Award or
under the Plan and to take such other action as may be necessary in the opinion of the General Partner or Affiliate to satisfy its withholding obligations for the payment of such taxes. Notwithstanding the foregoing, with respect to any Participant
who is subject to Rule 16b-3, such tax withholding automatically shall be effected by the General Partner either by (i) “netting” or withholding Units otherwise deliverable to the Participant on the vesting or payment of such Award,
or (ii) requiring the Participant to pay an amount equal to the applicable taxes payable in cash. 

  

SECTION 15 

NONEXCLUSIVITY OF THE PLAN 
  

	15.1	 	The acceptance by the General Partner of the sponsorship of the Plan shall not be construed as creating any limitations on the power or authority of the General Partner
to adopt such other or additional incentive or other compensation arrangements of whatever nature as the General Partner may deem necessary or desirable or preclude or limit the continuation of any other plan, practice or arrangement for the payment
of compensation or fringe benefits to employees, non-employee directors, or consultants generally, or to any class or group of employees, directors, or consultants, which the General Partner now has lawfully put into effect, including, without
limitation, any retirement, pension, savings and stock purchase plan, insurance, death and disability benefits and executive short-term incentive plans. 

 
 SECTION 16 

GENERAL PROVISIONS 
  

	16.1	 	Additional Agreements. Each Service Provider to whom an Award is granted under this Plan may be required to agree in writing, as a condition to the grant of such
Award or otherwise, to subject an Award that is exercised or settled following such Person’s termination of services with the General Partner, the Partnership or their Affiliates to a general release of claims and/or a noncompetition agreement
in favor of the General Partner, the Partnership, and their Affiliates, with the terms and conditions of such agreement(s) to be determined in good faith by the Committee. 

  

	16.2	 	 Requirements of Law. The issuance of Units and the payment of cash pursuant to the Plan shall be subject to all applicable laws, rules and
regulations. The Committee may refuse to issue or transfer any Units or other consideration under an Award if, in its sole discretion, it determines 

  
 14 

	 	
that the issuance or transfer of such Units or such other consideration might violate any applicable law or regulation, the rules of the principal securities exchange on which the Units are then
traded, or entitle the Partnership or an Affiliate to recover the same under Section 16(b) of the 1934 Act, and any payment tendered to the General Partner by a Participant, other holder or beneficiary in connection with the exercise of such
Award shall be promptly refunded to the relevant Participant, holder or beneficiary. 

  

	16.3	 	Rule 16b-3. It is the intent of the General Partner that the grant of any Awards to, or other transaction by, a Participant who is subject to Section 16 of
the 1934 Act shall be exempt from Section 16(b) of the 1934 Act pursuant to Rule 16b-3 or another applicable exemption (except for transactions acknowledged by the Participant in writing to be non-exempt). Accordingly, if any provision of the
Plan or any Award Agreement does not comply with the requirements of Rule 16b-3 or such other exemption as then applicable to any such transaction, such provision shall be construed or deemed amended to the extent necessary to conform to the
applicable requirements of Rule 16b-3 so that such Participant shall avoid liability under Section 16(b) of the 1934 Act. 

  

	16.4	 	Code Section 409A. In the event that any provision of this Plan shall be determined to contravene Code section 409A, the regulations promulgated thereunder,
regulatory interpretations or announcements with respect to Code section 409A or applicable judicial decisions construing Code section 409A, any such provision shall be void and have no effect. Moreover, this Plan shall be interpreted at all times
in such a manner that the terms and provisions of the Plan comply with Code section 409A, the regulations promulgated thereunder, regulatory interpretations or announcements with respect to Code section 409A of and applicable judicial decisions
construing Code section 409A. 

  

	16.5	 	Specified Employee under Code Section 409A. Subject to any other restrictions or limitations contained herein, in the event that a “specified
employee” (as defined under Code section 409A and the 409A Regulations) becomes entitled to a payment under an Award which is a 409A Award on account of a “separation from service” (as defined under Code section 409A and the 409A
Regulations), to the extent required by the Code, such payment shall not occur until the date that is six months plus one day from the date of such separation from service. Any amount that is otherwise payable within the six month period described
herein will be aggregated and paid in a lump sum without interest. 

  

	16.6	 	Governing Law. The Plan and all agreements hereunder shall be construed in accordance with and governed by the laws of the State of Delaware, without regard to
conflict of laws principles. 

  

	16.7	 	Severability. If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any
Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable law or, if it cannot be construed or deemed amended
without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person or Award and the remainder of the Plan and any such Award shall remain in full
force and effect. If any of the terms or provisions of the Plan or any Award Agreement conflict with the requirements of Rule 16b-3 (as those terms or provisions are applied to Participants who are subject to Section 16(b) of the 1934 Act),
then those conflicting terms or provisions shall be deemed inoperative to the extent they so conflict with the requirements of Rule 16b-3 (unless the Board or the Committee, as appropriate, has expressly determined that the Plan or such Award should
not comply with Rule 16b-3). 

  
 15 

	16.8	 	No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship
between the General Partner or any Affiliate and a Participant or any other Person. To the extent that any Person acquires a right to receive payments from the General Partner or any Affiliate pursuant to an Award, such right shall be no greater
than the right of any general unsecured creditor of the General Partner or such Affiliate. 

  

	16.9	 	No Fractional Units. No fractional Units shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine in its sole discretion
whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional Units or whether such fractional Units or any rights thereto shall be canceled, terminated, or otherwise eliminated with or without
consideration. 

  

	16.10	 	Allocation of Costs. Nothing herein shall be deemed to override, amend, or modify any cost sharing arrangement, omnibus agreement, or other arrangement between
the General Partner, the Partnership, and any Affiliate regarding the sharing of costs between those entities. 

  

	16.11	 	No Guarantee of Legal Consequences. None of the Board, the Committee, the Partnership nor the General Partner makes any commitment or guarantee that any federal,
state or local tax treatment or exemption from Section 16 of the 1934 Act or registration or exemption under applicable securities laws will (or will not) apply or be available to any Participant. 

 
 SECTION 17 

DURATION OF THE PLAN 
  

	17.1	 	This Plan shall terminate on [            ]. No Award shall be granted under the Plan after the Plan
is terminated; provided, however, that any Award theretofore granted may be amended, altered, adjusted, suspended, discontinued, or terminated by the Committee and the Committee’s authority to waive any conditions or rights under any such Award
shall extend beyond the Plan’s termination date. 

  
 16 

 APPENDIX A 
 DEFINITIONS 
  
 For purposes of the Plan the following terms shall have the meanings set forth below. 
  

	 	(a)	 	“1934 Act” means the Securities Exchange Act of 1934, as amended. Reference to a specific section of the 1934 Act or regulation thereunder shall
include such section or regulation, any valid regulation promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing, or superseding such section or regulation.

  

	 	(b)	 	“409A Award” means an Award that constitutes a “deferral of compensation” within the meaning of the 409A Regulations, whether by design, due
to a subsequent modification in the terms and conditions of such Award or as a result of a change in applicable law following the date of grant of such Award, and that is not exempt from Code section 409A pursuant to an applicable exemption.

  

	 	(c)	 	“409A Regulations” means the applicable Treasury regulations and other interpretive guidance promulgated pursuant to Code section 409A

  

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

  

	 	(e)	 	“Award” means an Option, Phantom Unit, Restricted Unit, Unit Award, Performance Award, DER or Other Unit-Based Award granted under the Plan, and shall
include any UDRs granted in tandem with respect to a Restricted Unit. 

  

	 	(f)	 	“Award Agreement” means a written agreement or instrument between the General Partner and a Holder evidencing an Award. 

 

	 	(g)	 	“Beneficiary” means the Person who has been designated by a Holder in his or her most recent written beneficiary designation filed with the General
Partner or an Affiliate thereof to receive the benefits specified under this Plan upon the death of the Holder, or, if there is no designated Beneficiary or surviving designated Beneficiary, then the Person entitled by will or the laws of descent
and distribution to receive such benefits. 

  

	 	(h)	 	“Board” means the Board of Directors of the General Partner. 

 

	 	(i)	 	“Business Day” means any day other than a Saturday, a Sunday or a day which is declared to be a Federal holiday by the United States Government.

  

	 	(j)	 	“Cause” means (i) willful failure by the Participant to carry out the reasonable and lawful policies and directives of the General Partner, the
Partnership or their Affiliates; (ii) willful engaging by the Participant in misconduct that causes material injury to, or damages the reputation of, the General Partner, the Partnership or one of their Affiliates, as determined in good faith
by the Committee; (iii) any act of dishonesty of the Participant; (iv) commission by the Participant of a criminal offense, other than a minor traffic misdemeanor; (v) any use by the Participant of an illegal controlled substance; or
(vi) excessive absenteeism other than for illness, after receiving a warning in writing 

  

APPENDIX A-1 

	 	
from the General Partner, the Partnership or one of their Affiliates to refrain from such behavior. 

 

	 	(k)	 	“Change in Control” shall be deemed to have occurred upon the occurrence of one of the following events: (i) any sale, lease, exchange or other
transfer (in one or a series of related transactions) of all or substantially all of the assets of the Partnership to any Person or its Affiliates, other than a Qualifying Owner, the General Partner, the Partnership or any of their Affiliates, or
(ii) any merger, reorganization, consolidation or other transaction pursuant to which more than 50% of the combined voting power of the equity interests in the General Partner cease to be controlled by a Qualifying Owner or its Affiliates.
Notwithstanding the foregoing, with respect to a 409A Award, a “Change in Control” shall not occur unless that Change in Control also constitutes a “change in the ownership of a corporation,” a “change in the effective
control of a corporation,” or a “change in the ownership of a substantial portion of a corporation’s assets,” in each case, within the meaning of 1.409A-3(i)(5) of the 409A Regulations, as applied to non-corporate entities.

  

	 	(l)	 	“Code” means the Internal Revenue Code of 1986, as it may be amended from time to time, and the rules and regulations promulgated thereunder.

  

	 	(m)	 	“Committee” means the Compensation Committee of the Board or such other committee of the Board appointed by the Board to administer the Plan.

  

	 	(n)	 	“Date of Grant” means, with respect to any Award, the date as of which such Award is granted under the Plan. 

 

	 	(o)	 	“DER” means a contingent right, granted alone or in tandem with a specific Award (other than a Restricted Unit or a Unit Award), to receive with
respect to each Unit subject to the Award an amount in cash, Units and/or Phantom Units, as determined by the Committee in its sole discretion, equal in value to the distributions made by the Partnership with respect to a Unit during the period such
Award is outstanding. 

  

	 	(p)	 	“Disability” or “Disabled” means disabled as defined in Section 22(e) of the Code, except that Disability or Disabled may,
subject to the discretion of the Committee, mean qualifying for and receiving payments under a disability pay plan of the General Partner, the Partnership or one of their Affiliates. 

 

	 	(q)	 	“Employer” means any of the General Partner, the Partnership or any one of such entity’s Affiliates who is either (i) the common law employer
of a Participant or (ii) the service recipient of any non-employee Service Provider. 

  

	 	(r)	 	“Effective Date” means [            ]. 

 

	 	(s)	 	“Fair Market Value” means, as of any date, the value of a Unit determined based upon the last sale before or the first sale after the Date of Grant,
the closing price on the trading day before or the trading day of the Date of Grant, or any other reasonable basis using actual transactions in such Units as reported in The Wall Street Journal and consistently applied. The determination of
Fair Market Value also may be based upon the average price during a specified period that is within 30 days before or 30 days after the Date of Grant (calculated based upon the arithmetic mean of the selling prices on all trading days during the
specified period or weighted based on the volume of trading on each trading day during the specified period), provided that the commitment to grant the stock right based on such valuation method must be irrevocable before the beginning of the
specified period, the Committee must specify the Participants that will receive 

  
 APPENDIX A-2 

	 	
Awards during such specified period, and the number of Units subject to such Awards, and such valuation method must be used consistently for grants of Awards under the same and substantially
similar programs. If Units are not traded on a national securities exchange or other market at the time a determination of Fair Market Value is required to be made hereunder, the determination of Fair Market Value shall be made by the Committee in
good faith using a “reasonable application of a reasonable valuation method” within the meaning of the 409A Regulations (specifically, Section 1.409A-l(b)(5)(iv)(B) of the 409A Regulations). 

 

	 	(t)	 	“Holder” means a Participant or a Beneficiary who is in possession of an Award Agreement representing an Award that has been granted to such individual
(or received by such individual in a transfer permitted by Committee and the Award Agreement) and has not expired, been canceled or terminated. 

  

	 	(u)	 	“Inergy” means Inergy, L.P., a Delaware limited partnership. 

 

	 	(v)	 	“Inergy GP” means Inergy GP, LLC, a Delaware limited liability company. 

  

	 	(w)	 	“Option” means a right to purchase a Unit at a stated price for a specified period of time. 

 

	 	(x)	 	“Option Period” means the maximum period of time from the Option Date of Grant that an Option as provided under the Option Award Agreement may remain
exercisable. Notwithstanding an Option’s Option Period, an Option may cease to be exercisable and become null and void prior to the expiration of the Option Period as provided in accordance with the terms of this Plan and the respective Award
Agreement. 

  

	 	(y)	 	“Option Price” means the price at which a Unit subject to an Option may be purchased, determined in accordance with Section 4.2(b).

  

	 	(z)	 	“Other Unit Based Award” means an Award granted to Service Provider pursuant to Section 7.2. 

 

	 	(aa)	 	“Participant” means a Service Provider designated by the Committee from time to time during the term of the Plan to receive one or more Awards under
the Plan. 

  

	 	(bb)	 	“Performance Award” means a right granted to a Service Provider pursuant to Section 7.5, to receive an Award based upon performance criteria
specified by the Committee. 

  

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

  

	 	(dd)	 	“Phantom Unit” means a phantom (notional) Unit granted under the Plan which upon vesting entitles the Participant to receive a Unit or an amount of
cash equal to the Fair Market Value of a Unit, whichever is determined by the Committee. 

  

	 	(ee)	 	“Plan Year” means each 12-month period beginning January 1 and ending the following December 31, except that for the first year of the Plan
it shall begin on the Effective Date and extend to December 31 of that year. 

  

	 	(ff)	 	“Qualified Member” means a member of the Committee who is a “nonemployee director” within the meaning of Rule 16b-3(b)(3).

  

	 	(gg)	 	“Qualifying Owner” means (i) John J. Sherman or any of his Affiliates, (ii) Inergy Holdings GP, LLC, a Delaware limited liability company and
(iii) Inergy Holdings, L.P., a Delaware limited partnership. 

  
 APPENDIX A-3 

	 	(hh)	 	“Restricted Period” or “Restriction Period” means the period established by the Committee with respect to an Award during which the
Award remains subject to forfeiture and is not exercisable by or payable to the Participant. 

  

	 	(ii)	 	“Restricted Unit” means a Unit granted under the Plan that is subject to a Restricted Period. 

 

	 	(jj)	 	“Rule 16b-3” means Rule 16b-3 promulgated under the 1934 Act, and any future regulation amending, supplementing, or superseding such regulation.

  

	 	(kk)	 	“SEC” means the Securities and Exchange Commission or any successor thereto. 

  

	 	(ll)	 	“Section 16 Person” means a person who, with respect to a Unit, is subject to Section 16 of the 1934 Act. 

 

	 	(mm)	 	“Service Provider” means an employee (full or part-time), non-employee director or consultant of the General Partner, the Partnership, or any of their
Affiliates who renders service to or for the benefit of the General Partner or the Partnership. 

  

	 	(nn)	 	“UDR” means a distribution made by the Partnership with respect to a Restricted Unit. 

 

	 	(oo)	 	“Unit” means a common Unit of the Partnership. 

  

	 	(pp)	 	“Unit Award” means a grant of a Unit that is not subject to a Restricted Period. 

  
 APPENDIX A-4

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