Document:

Lease Agreement

 Exhibit 10.8 
  
 L  E  A  S  E 
  
 ************************** 
  
 1400 WESTGATE ASSOCIATES, L.L.C. 
 (Lessor) 
  
 and 
  
 BANK OF NORTH CAROLINA 
 (Lessee) 
  
  

 TABLE OF CONTENTS 
  

					
	 Paragraph
 Number

	  	 Subject

	  	Page

	 1
	  	Construction of Building and Tenant Improvements	  	3
	 2
	  	Lease Term	  	3
	 3
	  	Rental	  	4
	 4
	  	Maintenance Responsibilities	  	5
	 5
	  	Taxes & Assessments	  	5
	 6
	  	Services by Landlord	  	5
	 7
	  	Alterations	  	6
	 8
	  	Use and Occupancy	  	6
	 9
	  	Insurance	  	7
	 10
	  	Fire or Other Casualty	  	8
	 11
	  	Condemnation	  	8
	 12
	  	Condition at Commencement and Termination	  	9
	 13
	  	Indemnity	  	9
	 14
	  	Quiet Enjoyment	  	9
	 15
	  	Assignment and Subletting	  	10
	 16
	  	Default	  	10
	 17
	  	Removal of Lessee’s Property	  	11
	 18
	  	Notices	  	12
	 19
	  	No Identity of Interest	  	12
	 20
	  	Entire Understanding; Amendment	  	12
	 21
	  	Personal Representatives, Successors and Assigns	  	12
	 22
	  	Law Applicable	  	12
	 23
	  	Surrender of Premises	  	13
	 24
	  	Holding Over	  	13
	 25
	  	Right of Entry	  	13
	 26
	  	Waiver	  	13
	 27
	  	Estoppels/Subordinations	  	13
	 28
	  	Bankruptcy	  	14
	 29
	  	Environmental Compliance	  	15
	 30
	  	Force Majeure	  	16
			
	 Exhibit A
	  	Property Description	  	 
	 Exhibit B
	  	Plans and Specifications	  	 
	 Exhibit C
	  	Janitorial Standards	  	 
	 Exhibit D
	  	Rules and Regulations	  	 

  

			
	 Bank of North Carolina - Lease - 06/01/2005
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	 STATE OF NORTH CAROLINA
	  	)	  	 
	 	  	 	  	L  E  A  S  E
	 COUNTY OF FORSYTH
	  	)	  	 

  
 This Lease, dated as
of the          day of June 2005, by and between 1400 WESTGATE ASSOCIATES, L.L.C., a North Carolina Limited Liability Company with offices at 16 South Main Street; Post Office Box 1066; Lexington, North
Carolina 27293-1066 (the “Lessor”) and Bank of North Carolina (the “Lessee”). 
  
 RECITALS/STATEMENT OF PURPOSE 
  
 Lessor is the owner of Suite 90 in the office building in Winston-Salem, North Carolina, at 1551 Westbrook Plaza Drive and being known as GreenTree Centre II, said Suite containing 2,639 square feet, which includes both the Suite and
the proportionate share of undivided common area allocated thereto, all as more particularly described on Exhibit “A” attached hereto and made a part hereof (the “Leased Premises”). Lessee wishes to lease from Lessor, and Lessor
wishes to lease to Lessee the Leased Premises, together with a non-exclusive right to use the common areas of GreenTree Centre, upon the terms and conditions set forth herein. The purpose of this instrument is to set forth the terms and conditions
upon which the parties will deal with each other as a result of Lessee’s having leased the Leased Premises from Lessor. 
  
 NOW, THEREFORE, in consideration of the mutual promises contained herein, the Lessor hereby leases the Leased Premises to Lessee and Lessee leases the
Leased Premises from Lessor upon the following terms and conditions: 
  
 1. UPFITTING. Lessor agrees that it shall construct the upfit plan for Suite 90 substantially in accordance with the Plans & Specifications attached hereto as Exhibit B, which Plans & Specifications are hereby incorporated herein by
reference. Lessor warrants that the construction of the Suite and other improvements shall be completed in good and workman-like manner. 
  
 2. LEASE TERM. 
  
 (a) The initial term of this Lease shall commence immediately and continue for a period of two (2) Lease Years (as defined below) after the Rental
Commencement Date. The term “Lease Year” as referred to herein shall mean the period beginning on the Rental Commencement Date and ending on the day prior to the anniversary of such date in the next year, and each such period thereafter
during the term of this Lease. Lessor will notify Lessee 30 days prior to the date that the Leased Premises are expected to be ready for occupancy. Upon Substantial Completion of the Leased Premises (as defined in Exhibit B “Plans and
Specifications” attached hereto) Lessor and Lessee agree to execute a Certificate of Rental Commencement reflecting the Rental Commencement Date. 
  

			
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 (b) Provided Lessee is not in default hereunder, the term of this Lease may be extended at the option of
the Lessee for one (2) two-year period. Such option shall be exercised by written notice to Lessor on or before six months prior to the expiration of the initial term of this Lease. The renewal shall be upon the same terms, covenants, and conditions
as the initial lease term, including the provisions for annual adjustments to Base Rental. Any termination of this Lease during the initial term shall automatically terminate this option to renew. 
  
 3. RENTAL. 
  
 (a) The rental for the first Lease Year shall be $43,543.50 per year (or $3,628.63 per month), hereinafter referred to as
the “Base Rental,” which annual Base Rental shall be increased as hereinbelow provided in Subparagraph 3(b). Base Rental shall be payable in equal monthly installments in advance on the first day of every calendar month during the term of
this Lease and shall be increased from time to time pursuant to the provisions of Subparagraph 3(b) below. The first monthly payment of Base Rental shall be due on the Rental Commencement Date. 
  
 (b) The Base Rental shall be increased after the end of each Lease Year
during the term of this Lease in accordance with increases in the Consumer Price Index (hereinafter called the “Price Index”). The Price Index shall mean the “U.S. City Average for Urban Wage Earners and Clerical Workers, all items,
groups, subgroups and special groups if items” as promulgated by the Bureau of Labor Statistics of the U.S. Department of Labor, using the years 1982-1984 as a base of 100. 
  
 The Base Rental shall be increased in accordance with the following provisions: 
  
 (1) At the beginning of the second Lease Year and of each
Lease Year thereafter, the Base Rental shall be increased by an amount determined by multiplying the Base Rental for a previous Lease Year by the percentage increase in the Price Index from the first month of the previous Lease Year to the first
month of the new Lease Year, provided that in no event shall the increase provided for hereby be less than 3% per year nor more than 5% per year. 
  
 (2) The Lessor will notify the Lessee as soon as computation of the adjusted Base Rental has been made, which shall be no later than
ninety (90) days after the commencement of a Lease Year. The adjusted Base Rental shall be due from the first month of the Lease Year in which it applies, and the adjusted Base Rental for those months for which it was owed before Lessee is notified
of the amount thereof shall be paid with the first Base Rental payment made after Lessee has received the notice of the adjustment. 
  
 All dates and rents shall be adjusted to reflect the beginning of the initial “Lease Year” and will be incorporated into the Lease Modification
Agreement provided for in Section 2(a) of this Lease Agreement. 
  
 The Lessee will pay the foregoing rent to 1400 WESTGATE ASSOCIATES, L.L.C., Post Office Box 1066, 16 South Main Street, Lexington, North Carolina 27293-1066, or to such other person or at such other place as the Lessor may designate in
writing. 
  

			
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 4. MAINTENANCE RESPONSIBILITIES. 
  
 (a) Lessor Maintenance. As between Lessor and Lessee, Lessor shall be responsible for maintenance of the roof and structural
portions of the Leased Premises; provided, the Lessor shall not be responsible for any damage thereto caused by the negligence of Lessee, its employees, agents, invitees, subtenants, licensees, assignees, or contractors, in which event such damage
shall be promptly repaired by Lessee. Lessor shall commence any repairs for which it is responsible promptly after notification by Lessee and shall complete same diligently. 
  
 (b) Additional Lessor Maintenance. Lessor shall also be responsible for all maintenance, upkeep, and repair of any kind and
nature with respect to the Leased Premises, such to be accomplished regularly and routinely by Lessor so as to keep the Leased Premises at all times in first-class condition; provided, the Lessor shall not be obligated to repair any damage to the
Leased Premises or perform any maintenance or upkeep of any kind thereto caused or necessitated by the negligence of Lessee, its employees, agents, invitees, subtenants, licensees, assignees, or contractors, in which event such damage shall be
promptly repaired by Lessee. By way of example and not limitation, Lessor shall keep and maintain all plumbing, heating, electrical, and air conditioning systems in the Leased Premises in good working order. Lessee shall not be entitled to any
abatement of rent and Lessor shall not be liable for any loss or damage occasioned by any breakdown or interruption in the operation of such systems. 
  
 5. TAXES & ASSESSMENTS. Lessor shall pay when due all real property taxes and assessments which are now or which may hereafter be imposed upon the
Leased Premises, and Lessee shall pay when due all taxes and assessments of any kind or nature imposed or assessed upon Lessee’s improvements, trade fixtures, equipment, merchandise or other property installed in or brought onto the Leased
Premises by or for Lessee. Upon Lessor’s request, the Lessee shall furnish Lessor copies of paid receipts for all said taxes and assessments forthwith after payment of same. 
  
 6. SERVICES BY LANDLORD. Provided that Tenant is not then in default, Landlord shall cause to be furnished to the Building,
or as applicable, the Leased Premises, in common with other tenants, during business hours of 7:00 A.M. to 7:00 P.M. Monday through Friday (excluding National and State holidays), the following services: janitorial services (five (5) days a week
after normal working hours, as more particularly set forth on Exhibit C), water (if available from city mains) for drinking, lavatory and toilet purposes, operatorless elevator service, gas and heating and air conditioning for the reasonably
comfortable use and occupancy of the Leased Premises, provided heating and cooling conforming to any governmental regulation prescribing limitations thereon shall be deemed to comply with this service. Landlord shall furnish the Leased Premises with
electricity for the maintenance of building standard fluorescent lighting composed of 2’ x 4’ fixtures and keep such lighting in good repair and replace bulbs as needed. Incandescent fixtures, table lamps, all lighting other than the
aforesaid building standard fluorescent lighting, dimmers and all lighting controls other than controls for the aforesaid building standard fluorescent lighting shall be serviced, replaced and maintained at Tenant’s expense. Landlord shall also
furnish the Leased Premises with electricity for lighting for the aforesaid building standard fluorescent lighting and for the operation of general office machines, such as electric typewriters, desk top computers, word processing 

  

			
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equipment, dictating equipment, adding machines and calculators, telecommunication equipment and network servers and office copy machines. Landlord shall
provide electricity as necessary for the normal operation of convenience outlets serving the Leased Premises. After hours heating and air conditioning will be available at a charge of fifty dollars ($50.00) per hour, or part thereof, per floor, with
a minimum charge of two (2) hours per occurrence. All additional costs resulting from Tenant’s extraordinary usage of heating, air conditioning or electricity shall be paid by Tenant upon demand as Additional Rent for each month or portion
thereof, and Tenant shall not install equipment with unusual demands for any of the foregoing without Landlord’s prior written consent, which Landlord may withhold if it determines that in its opinion such equipment may not be safely used in
the Leased Premises or that electrical service is not adequate therefor. If heat generating machines or equipment other than those contemplated by the foregoing language of this Section 6 or other intensive activities shall be used or carried on in
the Leased Premises by Tenant which materially adversely affect the temperature, the heating and air conditioning systems, or utility usage thereof, Landlord shall have the right to install supplemental air conditioning units in the Leased Premises
and the actual cost thereof, including the cost of engineering and installation, and the actual cost of operation and maintenance thereof, shall be paid by Tenant upon demand by Landlord. 
  
 7. ALTERATIONS. Any alterations, additions or improvements permitted herein except as otherwise provided in Section1 and the
Workletter shall be made at the expense of the Lessee. The Lessee agrees that it will make no alterations, additions or improvements to the Leased Premises without the written consent of the Lessor. All alterations, additions, improvements,
cabinetry or other fixtures made or attached to the Building or the Leased Premises by and for the Lessee, including but not limited to, any and all subdividing partitions, walls or railings of whatever type, material or height (but excepting
movable office furniture and equipment and modular cabinetry paid for by Lessee and not permanently attached to the Building, which may be removed by the Lessee at the end of the term of this Lease, if such termination is not the result of Lessee
default hereunder) shall be the property of the Lessor and shall remain upon and be surrendered with the Leased Premises as a part thereof at the expiration or earlier termination of this Lease. The Lessor, however, reserves the right to require the
Lessee to remove any paneling, decorations, partitions, walls or railings, floor coverings, booths, or fixtures installed by or at the request of the Lessee, by giving notice of such election to the Lessee at any time prior to, or not later than ten
(10) days after the expiration or earlier termination of the Lease; in which event the Lessee, at the Lessee’s sole cost and expense, shall remove the property so specified on or before the date of expiration or earlier termination of this
Lease or a date five (5) days after the receiving of such notice, whichever shall be the later, and shall promptly restore the Leased Premises to their original condition, reasonable wear and tear excepted; if Lessee fails to perform the necessary
restorations within ten days after removing the property, or if Lessee is in default under this Lease, Lessor may undertake the restoration of the Leased Premises to their original condition after the removal of the specified property, in which
event Lessee shall promptly reimburse Lessor for the cost of such restoration. 
  
 8. USE AND OCCUPANCY. 
  
 (a) The
Lessee agrees that the Leased Premises will be used only for general office use and for the purpose of conducting Lessee’s business therefrom (the “Permitted Use”); that no 

  

			
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unlawful use of the Leased Premises will be made; that no sign, name, legend, notice or advertisement of any kind will be fixed, painted or displayed on any
part of the Leased Premises, except with the consent of Lessor, which consent shall not be unreasonably withheld; and that upon the termination of this Lease, Lessee will vacate and surrender possession of the Leased Premises to the Lessor in as
good condition as the Leased Premises were at the commencement of this Lease, ordinary wear and tear excepted. 
  
 (b) Lessee will use and operate the Leased Premises and the common areas of the GreenTree Centre in compliance with the rules and regulations attached
hereto as Exhibit D and any other rules established by Lessor and approved by a majority of the tenants in the Building and with all laws, rules and regulations of any agency having jurisdiction over the Leased Premises. Lessee will not use,
and will not permit or suffer anyone else to use, the Leased Premises for the production, storage or disposal of any hazardous substance, as now or hereafter defined by any agency having jurisdiction over the premises, or any petroleum product.
Lessee hereby indemnifies and agrees to hold harmless Lessor from any cost, obligation, fine, penalty, charge, loss or damage, including attorney’s fees, arising out of the use or operation of the leased Premises or the storage or disposal of
any material thereon, during the time that Lessee is in possession of said premises. 
  
 9. INSURANCE. 
  
 (a) Lessor
agrees that it will keep the Leased Premises and the building in which the Leased Premises are located insured against loss or damage by fire with extended coverage to the full fair insurable value thereof. Lessee shall not be liable to repair
damage caused by accidental fire or other casualty covered by such insurance. Lessee shall not use or permit upon the premises anything that will invalidate or will increase the rate of any policy of insurance now or hereafter carried on the Leased
Premises or the building(s) of which said Leased Premises are a part. 
  
 Lessee agrees that it will keep its trade fixtures, equipment, and other property of Lessee located in, on or about the demised premises insured against loss or damage by fire with extended coverage to the full fair insurable value thereof.
Lessee agrees that all personal property in, about or on the demised premises shall be at the risk of Lessee only and that Lessor shall not be liable for damage thereto or theft thereof under any circumstances. 
  
 (b) The Lessor and the Lessee agree that if the Leased Premises or any
furniture, fixtures, machinery, equipment or other personal property located therein are damaged or destroyed by fire or other insured casualty, the rights, if any, of either party against the other with respect to such damage or destruction are
hereby waived if and to the extent permitted by any applicable insurance policies. The parties agree to use their best efforts to insure that the policies of insurance obtained by them permit such waivers of subrogation and shall furnish evidence of
such, each to the other. 
  
 (c) At all times subsequent to the
commencement of this Lease and during its full term, the Lessee, at its sole cost and expense, shall provide general public liability insurance for personal injury and property damage in an amount of $1,000,000.00 per occurrence. 
  

			
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 (d) Lessor shall provide Lessee and Lessee shall provide Lessor with certificates evidencing the
coverages hereinabove described. All such policies provided by Lessee shall name Lessor and, with respect to insurance covering the Leased Premises, any lender of Lessor which maintains a mortgage on the Leased Premises, as additional insureds and
shall provide that Lessor and such lender must receive at least 20 days’ written notice before any cancellation or material change in terms. Lessor shall name Lessee as additional named insured with respect to the leased premises. 

 
 10. FIRE OR OTHER CASUALTY. 
  
 (a) The Lessor agrees that if during the first five years of the initial
term of this Lease or the first five years of the renewal term if this Lease is renewed, the Leased Premises shall be damaged by fire or other casualty, to such an extent that the cost of repairs will be less than 50% of the fair market value
thereof at the time of such casualty, provided Lessor’s lender permits, Lessor will employ the proceeds of insurance policies referred to in Section 9 to repair the Leased Premises after a casualty with reasonable dispatch after notice to
Lessor of damage, due allowance to be made for delay resulting from any cause beyond the Lessor’s reasonable control; provided, however, that the Lessor shall not be required to expend funds in excess of the insurance proceeds or repair or
replace any property which the Lessee may be entitled to remove or which the Lessor may require the Lessee to remove from the Leased Premises upon the termination or expiration of this Lease, and provided further, that during the time that the
Leased Premises are unfit for occupancy by Lessee, the rent shall abate in proportion to the extent the premises are unfit for occupancy, so long as the damage was not occasioned by the act or omission of Lessee or Lessee’s agents, servants,
employees or invitees. 
  
 (b) If the Leased Premises are damaged
during the last two years of the initial Lease term or renewal term or to such extent that the cost of repairs will be 50% or more of the fair market value, as above described, then the Lessor in his sole discretion may choose not to repair and
restore the Leased Premises, whereupon the Lessor may terminate this Lease by notifying the Lessee in writing, within a reasonable time after such damage, of the Lessor’s election to terminate this Lease. In the event of the giving of such
notice during the term of this Lease, this Lease shall expire and all interests of the Lessee in the Leased Premises shall terminate on the date specified in such notice, and the rent shall be apportioned and paid up to the time of such fire or
other casualty if the Leased Premises are damaged, or up to the specified date of termination. 
  
 (c) Any insurance proceeds from the fire and extended coverage insurance furnished by the Lessee shall be made payable to the Lessor to effect the required repairs. Lessee will cooperate with and coordinate with
Lessor in insuring that such proceeds are at the Lessor’s disposal on a timely basis in order that Lessor may proceed with the repairs with reasonable dispatch. 
  
 11. CONDEMNATION. If the whole of the Leased Premises or such part thereof as shall make the Leased Premises unsuitable for
the purpose leased shall be taken for any public or any quasi-public use under any statute or by right of eminent domain, or by private purchase by 

  

			
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condemning authority in lieu thereof, then this Lease shall automatically terminate as of the date the title shall be taken, and the rent shall be
apportioned as of that date. Such termination shall be without prejudice to the rights of either party to recover compensation from the condemning authority for any loss or damage caused by the taking. Neither party shall have any rights in or to
any award made to the other by the condemning authority. 
  
 12.
CONDITION AT COMMENCEMENT AND TERMINATION. The Lessor warrants that the Leased Premises and all its systems including heating, plumbing, wiring, lighting, air conditioning, water and sewer shall be in good working order at the beginning of the term
of this Lease. At the termination of this Lease, Lessee shall deliver up possession of the Lease Premises to Lessor in as good condition as the same are at the beginning of the lease term, excepting only reasonable wear and tear. 
  
 13. INDEMNITY. The Lessee agrees to defend, indemnify and save harmless the
Lessor and the agents, servants and employees of the Lessor against and from any and all claims made or liability, loss, cost, damage and expenses (including reasonable attorneys’ fees) assessed against Lessor by or on behalf of any person,
firm or corporation arising by reason of injury to person or property occurring on the Leased Premises, occasioned in whole or in part by any act or omission of Lessee (including any acts or omission involving radioactive or hazardous substance on
the part of the Lessee or an employee [whether or not acting within the scope of employment], agent, visitor, assign or sub-tenant of the Lessee), or by reason of any unlawful use of the Leased Premises or any breach, violation or nonperformance of
any covenant in this Lease on the part of the Lessee to be observed or performed, and also for any matter or thing growing out of the occupancy or use of the Leased Premises by the Lessee or any one holding or claiming to hold through or under the
Lessee. Lessee agrees to pay for all damage to the Leased Premises, as well as all damage to licensees or invitees thereof, caused by Lessee’s misuse or neglect of the Leased Premises, its apparatus or appurtenances. Lessor shall not be liable
to Lessee for any loss or damage incurred by Lessee as the result of any act of negligence of any occupant of the Building (or such occupant’s guests, invitees, contractors and/or employees) or by any owner or occupant of property adjoining or
contiguous to the Land. 
  
 Lessor agrees to defend, indemnify,
and save harmless the Lessee, and the agents, servants, and employees of the Lessee, against and from any and all claims made or liability, loss, cost, damage, and expenses (including reasonable attorneys’ fees) assessed against Lessee by or on
behalf of any person, firm, or corporation arising by reason of injury to person or property occurring on the Leased Premises, occasioned in whole or in part by any act or omission, including any acts or omissions regarding radioactive or hazardous
substances, on the part of the Lessor or an employee or agent of the Lessor. 
  
 14. QUIET ENJOYMENT. The Lessor agrees that the Lessee on paying the stipulated rental and keeping and performing the agreement and covenants herein contained, shall hold and enjoy the Leased Premises for the term
aforesaid, free from interference by the Lessor or by any one claiming by, through or under the Lessor, subject, however, to the terms of this Lease. 
  

			
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 15. ASSIGNMENT AND SUBLETTING. Except as set forth below, Lessee shall not assign or sublease the Leased
Premises without Lessor’s prior written consent, which consent shall not be unreasonably withheld. Consent to any assignment or sublease by Lessor shall not release the Lessee from its obligations and liabilities hereunder. Notwithstanding the
above, Lessee may assign this Lease or sublease the Leased Premises to any legal entity controlled by or under common control with the Lessee without Lessor’s consent, provided that prior to any such assignment Lessee must notify Lessor in
writing of any such assignment. 
  
 16. DEFAULT. 
  
 (a) In the event of default in the payment of rent or any other sum payable
hereunder for five days after the due date, or in the event of three monetary defaults in any Lease Year, the Lessor, without prejudice to any other rights or remedies that it may have, shall have the right, immediately or any time thereafter, to
re-enter the Leased Premises and remove all persons and property from the Leased Premises. In the event the Lessee shall neglect to keep or perform any other covenant, agreement or condition of this Lease, the Lessor shall give written notice of
such default to the Lessee; and in the event that such default is not rectified within twenty (20) days from the date of such notice, then the Lessor shall have the right to enter the Leased Premises immediately or at any time thereafter and remove
the Lessee therefrom, without prejudice to any other remedies of the Lessor. In the event of such re-entry, the Lessee hereby waives all claims for damages which may be caused by the re-entry of the Lessor and will save the Lessor harmless from any
loss, cost or damages occasioned Lessor thereby (including reasonable attorneys’ fees and other expenses incurred by reason of such re-entry), and no such re-entry shall be considered or construed to be a forcible entry. 
  
 (b) The Lessor shall also have the right, at its option, to cure any of
Lessee’s defaults and charge the cost of such cure to Lessee as additional rent. 
  
 (c) Should the Lessor elect to re-enter the Leased Premises as herein provided, or should he take possession pursuant to legal proceedings, it may either terminate this Lease or it may, from time to time, without
terminating this Lease, re-let the Leased Premises or any part thereof on Lessee’s account for such time or times and at such rental or rentals and upon such other terms and conditions as the Lessor in its reasonable discretion may deem
advisable, with the right to make alterations and repairs to the Leased Premises, and the Lessee shall pay the amount of rent due under this Lease to the date of the beginning of payment or rent pursuant to any such re-letting, together with the
cost of such re-letting, including attorneys’ fees occasioned by such re-letting, brokers commissions, tenant improvement costs and the cost of any repairs to the Leased Premises necessitated by damage caused by Lessee, and the Lessee will
thereafter pay monthly during the remainder of the term of this Lease the difference, if any, between the rent collected from such re-letting and the rent reserved in this Lease if such collected is less than that reserved in this Lease. No such
re-entry or taking possession of the Leased Premises by the Lessor shall be construed as an 

  

			
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election on its part to terminate this Lease unless a written notice of such intention be given to the Lessee. Notwithstanding any such re-letting without
termination, the Lessor may, at any time after the occurrence of any default set out in this Section 16, elect to terminate this Lease and may terminate it by giving written notice to that effect to the Lessee. 
  
 (d) If the Lessor shall at any time terminate this Lease on account of any
default set out in this Section 16, in addition to other remedies it may have, it may recover from the Lessee all damages that it may suffer by reason of the termination of this Lease, including, but not limited to, reasonable attorneys’ fees
and expenses and other costs of recovering possession of the Leased Premises, and the excess, if any, of the amount of rent and other amounts to be paid by the Lessee under the terms of the Lease for the remainder of the stated term, over the then
reasonable rental value of the Leased Premises for the remainder of the stated term. 
  
 (e) If, before or during the term of this Lease, the Lessee shall be adjudged a bankrupt, or if any proceeding under the federal bankruptcy laws shall be filed by or against the Lessee, then such occurrence shall be
deemed a breach of this Lease and, upon the happening of such event, this Lease shall automatically terminate, and the Lessee and/or Guarantor, if any, shall be liable for all damages sustained by the Lessor as provided by law. 
  
 (f) If, before or during the term of this Lease or any renewal thereof (1)
the Lessee shall make an assignment for the benefit of creditors, or (2) a receiver shall be appointed for the property of the Lessee by order of a court of competent jurisdiction by reason of the insolvency or alleged insolvency or otherwise of the
Lessee, or (3) any department of the state or federal government, or any officer thereof authorized by order of court, shall take possession of the business or property of the Lessee by reason of the insolvency or alleged insolvency of the Lessee,
or (4) execution shall issue on any judgment and be levied against Lessee’s interests in the Leased Premises, then, upon the happening of any one or more of such events, at the option of the Lessor, this Lease may be terminated by the Lessor by
written notice to that effect to the Lessee, and the Lessor shall, in addition to other remedies provided by law in case of default by the Lessee, be entitled to the damages set out in this Section 16. 
  
 17. REMOVAL OF LESSEE’S PROPERTY. Provided Lessee pays all rental due
Lessor and is not in default hereunder, Lessee shall have the right, subject to Section 7 hereof, to remove all furniture and equipment from the Leased Premises upon expiration of this Lease. 
  

			
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 18. NOTICES. Any notice provided for herein shall be deemed to have been served sufficiently upon receipt
if the same shall be in writing and sent (1) via certified mail, return receipt requested or (2) overnight express mail carrier requiring signature by recipient, addressed as follows: 
  

			
	As to Lessor:	  	1400 WESTGATE ASSOCIATES, L.L.C.
	 	  	c/o Robert A. Team, Jr.
	 	  	16 South Main Street
	 	  	Post Office Box 1066
	 	  	Lexington, North Carolina 27293-1066
	 	  	Telephone: (336) 243-2600
	 	  	FAX: (336) 243-2680
	 	  	E-mail: rteam@cipnc.com

  

			
	As to Lessee:	  	BANK OF NORTH CAROLINA
	 	  	Attn: Richard D. Callicutt, II
	 	  	831 Julian Avenue
	 	  	Thomasville, North Carolina 27360

  
 Notices may also be
made via facsimile transmission, followed by non-certified original hard copy or overnight express mail no signature required, to the above-captioned fax numbers. Sender’s transaction report showing successful transmission to receiver’s
number shall be evidence of receipt of notice by receiver at the time indicated. 
  
 19. NO IDENTITY OF INTEREST. The execution of this Lease or the performance of any act pursuant to the provisions hereof shall not be deemed or construed to have the effect of creating between Lessor and Lessee the
relationship of principal and agent or of partnership or of joint venture and the relationship between them shall be that only of Lessor and Lessee or landlord and tenant. 
  
 20. ENTIRE UNDERSTANDING; AMENDMENT. This instrument contains the entire understanding and agreement by and between the
parties hereto with respect to the Lease of the Leased Premises, notwithstanding any prior or contemporaneous oral or written agreements or instruments, and no amendment to this Lease shall be effective unless the same is in writing and signed by
all of the parties hereto. 
  
 21. PERSONAL REPRESENTATIVES,
SUCCESSORS AND ASSIGNS. All rights and privileges provided for hereunder shall inure to the benefit of the personal representatives, successors and assigns of the parties hereto. All obligations herein provided shall be binding on the parties
hereto, the personal representatives, successors and assigns. 
  
 22. LAW APPLICABLE. This Lease Agreement shall be construed and interpreted under and governed by the laws of the State of North Carolina. 
  

			
	 Bank of North Carolina - Lease - 05/20/2005
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 23. SURRENDER OF PREMISES. Lessee will deliver up the Leased Premises at the end of the term or any
holdover period in good order and condition, reasonable wear and tear excepted. 
  
 24. HOLDING OVER. This tenancy expires at the end of the Lease term provided in Section 2, unless renewed as specified in Section 2, but it is expressly understood that if Lessee holds over for another month at the
end of said term or the renewal term for any purpose other than the removal of its property, and Lessor accepts rent for said month, such holding over shall operate as a renewal of the tenancy for another month and for each additional month Lessor
accepts rent, at a rental rate equal to 150% of the rental payable in the last month of the regular Lease Term. Should Lessor require possession of the Leased Premises, he shall give Lessee thirty (30) days to vacate the Leased Premises during such
holdover period. 
  
 25. RIGHT OF ENTRY. The Lessee agrees that
the Lessor shall have the right to enter and to grant licenses to enter the Leased Premises at any reasonable time upon reasonable advance notice to Lessee (a) to examine the Leased Premises, (b) to make alterations and repairs to the Leased
Premises (including the right, during the progress of such alterations or repairs, to keep and store within the Leased Premises all necessary materials, tools and equipment, provided said storage does not interfere with Lessee’s use and
occupancy), (c) for any purpose which the Lessor shall reasonably deem necessary for the operation and maintenance of the Leased Premises, (d) to show the Leased Premises to a prospective purchaser of the Building, or (e) within one hundred eighty
(180) days prior to the termination of this Lease, to exhibit the Leased Premises to prospective new tenants of the Leased Premises, and that no such entry shall render the Lessor liable to any claim or cause of action for loss of or damage to the
business or property of the Lessee, by reason thereof, nor in any manner affect the obligations and covenants of this Lease. 
  
 26. WAIVER. The waiver by Lessor or Lessee of any breach of any covenant or agreement herein contained shall not be deemed to be a waiver of such covenant
or agreement or any subsequent breach of the same or any other covenant or agreement herein contained. The subsequent acceptance of rent hereunder by Lessor shall not be deemed to be a waiver of any preceding breach by Lessee of any covenant or
agreement of this Lease, other than the failure of Lessee to pay the particular rental so accepted, regardless of Lessor’s knowledge of such preceding breach at the time of acceptance of such breach. 
  
 27. ESTOPPELS/SUBORDINATIONS. 
  
 (a) Within ten (10) days after request therefor by Lessor, Lessee shall
deliver in recordable form a certification to any proposed lender, trustee or purchaser, certifying that the Lease is in full force and effect and that there are no defenses or offsets thereto, or stating in detail those claimed by Lessee.

  
 (b) This Lease is subject to and subordinate at all times to
the lien of existing and future 
  

			
	 Bank of North Carolina - Lease - 05/20/2005
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 mortgages and deeds of trust on the Leased Premise. Although no instrument or act on the part of the Lessee shall be
necessary to effectuate such subordination, the Lessee will, nevertheless, execute and deliver such further instruments subordinating this Lease to the lien of all such mortgages and deeds of trust as may be desired by the Lessor in replacement on
the first mortgage loan on the Leased Premises. The Lessee hereby appoints the Lessor its attorney-in-fact, irrevocably, to execute and deliver any such instruments on behalf of the Lessee. 
  
 28. BANKRUPTCY. If, pursuant to the insolvency laws (i.e., the United States
Bankruptcy Code, 11 U.S.C. Paragraph 101 et seq., and any federal, state, foreign or other laws of like impact), Lessee or a trustee of Lessee is permitted to, and elects to, assume or assume and assign this Lease: 
  
 (a) Lessee or the trustee shall as a condition to such assumption or
assumption and assignment either cure all defaults under this Lease, or provide Lessor Adequate Assurance (hereinafter defined) that: (i) Lessee or the trustee shall cure all monetary defaults under this Lease within ten (10) days after the date of
any such assumption; and (ii) Lessee or the trustee shall cure all non-monetary defaults under this Lease within thirty (30) days after the date of any such assumption. 
  
 (b) Lessee or the trustee shall as a condition to such assumption or assumption and assignment either compensate, or provide
Adequate Assurance to Lessor that within ten (10) days from the date of any such assumption, Lessee or the trustee shall compensate Lessor for any pecuniary loss incurred by Lessor arising from any default under this Lease, including, but not
limited to, Lessor’s reasonable attorneys’ fees and disbursements and any late charge applicable under this Lease, as recited in Lessor’s written statement of pecuniary loss sent to Lessee or the trustee. 
  
 (c) In the case of an assumption, Lessee or the trustee shall as a condition
to such assumption provide Lessor with Adequate Assurance of the future performance of the obligations of Lessee under this Lease, including, without limitation, Adequate Assurance of Lessee’s or the trustee’s ability to pay Rent.

  
 (d) In the case of an assumption and assignment, such assignee
shall as a condition to such assignment provide Lessor with Adequate Assurance of the future performance of the obligations of Lessee under this Lease, including, without limitation, Adequate Assurance of such assignee’s ability to pay Rent.

  
 (e) In the case of an assumption and assignment, any and all
monies or other consideration payable or otherwise to be delivered in connection with such assignment shall be paid or delivered to Lessor (or shall be held in trust for the benefit of Lessor and be promptly paid or delivered to Lessor), shall be
and remain the exclusive property of Lessor and shall not constitute property of Lessee or of the estate of Lessee within the meaning of the United States Bankruptcy Code, 11 U.S.C. Paragraph 101, et seq. 
  
 (f) In the case of an assumption, Lessee or the trustee, and in the case of
an assumption and assignment, such assignee, shall be deemed without further act or deed to have assumed all of 
  

			
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 the obligations arising under this Lease on and after the date of such assumption or assumption and assignment. Lessee
and any such trustee or assignee shall upon demand execute and deliver to Lessor an instrument confirming such assumption. 
  
 (g) The assumption of this Lease by Lessee or the trustee and the assumption and subsequent assignment of this Lease to the assignee is subject to all the
provisions of this Lease, and Lessee, trustee or assignee will not breach any provision contained in this Lease or any other lease, mortgage, financing agreement, master agreement or other agreement relating to the Building. 
  
 (h) Notwithstanding anything in the Lease to the contrary, all amounts
payable by Lessee to or on behalf of Lessor under this Lease, whether or not expressly denominated as Rent or other charges due hereunder shall constitute rent for the purpose of Paragraph 502(b)(6) of the United States Bankruptcy Code and for the
purpose of any similar Paragraph of any other present or future insolvency laws. 
  
 29. ENVIRONMENTAL COMPLIANCE. 
  
 (a) Lessee’s Responsibility. Lessee shall not (either with or without negligence) cause or permit the escape, disposal or release of any biologically active or other hazardous substances, or materials into the Building or onto the land
owned by Lessor on which the Building is located and the surrounding land owned by Lessor. Lessee shall not allow the storage or use of such substances or materials in any manner not sanctioned by law or in compliance with the highest standards
prevailing in the industry for the storage and use of such substances or materials, nor allow to be brought into the Building any such materials or substances except to use in the ordinary course of Lessee’s business, and then only after
written notice is given to Lessor of the identity of such substances or materials. Lessee covenants and agrees that the Premises will at all times during its use or occupancy thereof be kept and maintained so as to comply with all now existing or
hereafter enacted or issued statutes, laws, rules, ordinances, orders, permits, and regulations of all state, federal, local and other governmental and regulatory authorities, agencies and bodies applicable to the Premises, pertaining to
environmental matters or regulating, prohibiting or otherwise having to do with asbestos and all other toxic, radioactive, or hazardous wastes or material including, but not limited to, the Federal Clean Air Act, the Federal Water Pollution Control
Act, and the Comprehensive Environmental Response Compensation, and Liability Act of 1980, as from time to time amended (all hereinafter collectively called “Laws”). Lessee shall execute affidavits, representations and the like, from time
to time, at Lessor’s request, concerning Lessee’s best knowledge and belief regarding the presence of hazardous substances or materials in the demised Premises. 
  
 (b) Lessee’s Liability. Lessee shall hold Lessor free, harmless, and indemnified from any penalty, fine, claim, demand,
liability, cost, or charge whatsoever which Lessor shall incur, or which Lessor would otherwise incur, by reason of Lessee’s failure to comply with this Section 23 including, but not limited to: (i) the cost of bringing the Premises into
compliance with all Laws and in a non-contaminated state, the same condition as prior to occupancy; (ii) the reasonable cost of all appropriate tests and examinations of the Premises to confirm that the Premises have been brought 
  

			
	 Bank of North Carolina - Lease - 05/20/2005
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 into compliance with all Laws; (iii) the reasonable fees and expenses of Lessor’s attorneys, engineers, and
consultants incurred by Lessor in enforcing and confirming compliance with this Section 23. 
  
 (c) Property. For the purpose of this Section 29, the Premises shall include the real estate covered by this Lease; all improvements thereon; all personal property used in connection with the Premises (including that
owned by Lessee); and the soil, ground water, and surface water of the Premises, if the Premises includes any ground area. 
  
 (d) Inspections by Lessor. Lessor and its engineers, technicians, and consultants (collectively the “Auditors”) may, from time to time as Lessor
deems appropriate, conduct periodic tests and examinations (“Audits”) of the Premises to confirm and monitor Lessee’s compliance with this Section 29. Such Audits shall be conducted in such a manner as to minimize the interference
with Lessee’s Permitted Use; however in all cases, the Audits shall be of such nature and scope as shall be reasonably required by then existing technology to confirm Lessee’s compliance with this Section 29. Lessee shall fully cooperate
with Lessor and its Auditors in the conduct of such Audits. The cost of such Audits shall be paid by Lessor unless an Audit shall disclose a material failure of Lessee to comply with this Section 29, in which case, the cost of such Audit, with
respect to Lessee’s premises only and the cost of all subsequent Audits related to the non-compliance of Lessee made during the Term and within thirty (30) days thereafter (not to exceed two (2) such Audits per calendar year), shall be paid for
on demand by Lessee. 
  
 (e) Lessor’s Liability. Provided,
however, the foregoing covenants and undertakings of Lessee contained in this Section 29 shall not apply to any condition or matter constituting a violation of any Law: (i) which existed prior to the commencement of Lessee’s use or occupancy of
the Premises; (ii) which was not caused, in whole or in part, by Lessee or Lessee’s agents, employees, officers, partners, contractors or invitees; or (iii) to the extent such violation is caused by, or results from the acts or neglects of
Lessor or Lessor’s agents, employees, officers, partners, contractors, guests, invitees, or other Lessees. 
  
 (f) Lessee’s Liability After Termination of Lease. The covenants contained in this Section 29 shall survive the expiration or termination of this
Lease and shall continue for so long as Lessor and its successors and assigns may be subject to any expense, liability, charge, penalty, or obligation against which Lessee has agreed to indemnify Lessor under this Section 29. 
  
 30. FORCE MAJEURE. Whenever a period of time is prescribed for the taking of
any action by Lessor, Lessor shall not be liable or responsible for, and there shall be excluded from the computation of such period of time, any delays due to strikes, fire, earthquakes, floods, acts of God, governmental regulations, shortages of
labor or materials, war, governmental laws, regulations or restrictions, or any other cause whatsoever beyond the control of Lessor (all of which are sometimes referenced collectively in this Agreement as “Force Majeure”) excluding however
the financial condition of Lessor or the unavailability to or cost of funds of Lessor. 
  

			
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 IN WITNESS WHEREOF, the parties hereto have signed and sealed this Lease the day and year first written
above. 
  

					
	LESSOR:	  	1400 WESTGATE ASSOCIATES, L.L.C.,
			
	 	  	By:	 	  

	 	  	 	 	Robert A. Team, Jr., Manager
		
	LESSEE:	  	BANK OF NORTH CAROLINA
			
	 	  	By:	 	  

	 	  	 	 	Richard D. Callicutt, II

  

			
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 EXHIBIT A 
  

PROPERTY DESCRIPTION 
  
 Location: 1551 Westbrook Plaza Drive, and also being known as Green Tree Centre II, suite 90 located on the first floor of said building. 
  
 

 
  
  

			
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 May 25, 2005 
  
 Mr. Robin Team 
 1400 Westgate Associates, LLC 
 P O Box 1066 
 Lexington, North Carolina 27292 
  
 Dear Robin; 
  
 Landmark is pleased to offer the following budget proposal to upfit 2639 s/f of the first floor in your Greentree II facility, located at
1400 Westbrook Plaza Drive in Winston Salem, North Carolina. This proposal is based on preliminary drawing by Lafferty Architecture, dated May18, 2005, sheets A2.1 and your direction. 
  
 Total cost of work as outlined below is One Hundred Five Thousand Eight Hundred Eight Dollars ($105,808.00) and is good for fifteen
(15) days from date herein and includes the following: 
  
 GENERAL
CONDITIONS 
  

	•	 	Permits and inspections 

  

	•	 	Architectural and Design drawings 

  

	•	 	Supervision 

  

	•	 	Dumpster 

  

	•	 	Construction cleanup 

  

	•	 	Drug testing and safety program 

  

	•	 	Temporary toilet 

  
 CONCRETE 
  

	•	 	Pour new plumbing trenches using 3000-psi concrete and doweled into existing concrete slab 

  

	•	 	Patch holes as required in existing concrete slab after unused plumbing drains have been capped 

  
 CARPENTRY 
  

	•	 	Install blocking as required for new cabinetry 

  
 CABINETRY 
  

	•	 	Provide and install 6 l/f of new base cabinetry and 9 l/f of wall cabinetry, consisting of melamine interior and exterior, plastic laminate counter top, with handicap sink access
panel 

  

	•	 	Two (2) new 2’6” sink cabinets, with handicap access panel, consisting of melamine interiors and exteriors and plastic laminate cabinet tops 

 May 25, 2005 
 Mr. Robin Team

 1400 Westgate Associates, LLC 
 Page 2 
  
 DOORS AND HARDWARE 
  

	•	 	Provide and install six (6) 3’0” x 7’0”, prefinished, solid core, 1 3/4” thick doors, with a 22” x 64” glass kit 

  

	•	 	One (1) 3’0” x 7’0”, prefinished, solid core, 1 3/4” thick door, with 3” x 33” glass kit 

  

	•	 	Three (3) 3’0” x 7’0”, prefinished, solid core, flush, 1 3/4” thick doors 

  

	•	 	One (1) 3’0” x 7’0” hollow metal, knock down, case opening frame 

  

	•	 	Ten (10) 3’0” x 7’0” hollow metal, knock down, door frames 

  

	•	 	Hardware as required 

  
 GLASS 
  

	•	 	Provide and install six (6) pieces of 22” x 64” x  1/4”, tempered glass for new doors 

  

	•	 	One (1) piece of 48” x 48” x  1/4”, tempered glass for new conference room window, in hollow metal frame 

  

	•	 	One (1) piece of 3” x 33” x  1/4”, tempered glass for breakroom door 

  

	•	 	One (1) 36” x 36” x  1/4”,
tempered glass for stationary window, in aluminum frame for office next to lobby 

  
 DRYWALL/ACOUSTICAL 
  

	•	 	Remove and dispose of approximately 12 l/f of existing 9’ high sheetrock wall 

  

	•	 	Construct new 9’ high walls per new floor layout, using 3 5/8” metal studs on 16” centers with R-11 insulation between stud cavities and 5/8 sheetrock on each side, finished ready for paint 

  

	•	 	Infill door area leading into the stairwell from new conference room, using 1 5/8” metal studs, with 5/8” sheetrock on each side, finished ready for paint on conference room side only 

  

	•	 	Install approximately 82 l/f of sheetrock from floor to deck on existing metal stud wall, (adjacent to occupied space), finished ready for paint 

  

	•	 	Frame for new 4’ x 4’ window opening in conference room wall per drawing 

  

	•	 	Install new 2’ x 2’, standard tegular, lay-in ceiling tiles, in white 15/16 grid system 

  
 FLOORCOVERING 
  

	•	 	Install VCT with vinyl base in new Breakroom, both toilet rooms, and equipment/telephone room 

  

	•	 	Install new carpet with carpet base in the remaining space to be renovated using an allowance of $18.00 per s/y 

  
 PAINT 
  

	•	 	Paint new walls with one (1) coat of primer and two (2) coats of flat latex paint with the exception of the new conference room and one executive office

  

	•	 	New metal door and window frames to receive one (1) coat of primer and two (2) coats of enamel paint 

  

	•	 	Install wallcovering in new conference room and one (1) executive office using a material allowance of $12.00 per l/y 

 May 25, 2005 
 Mr. Robin Team

 1400 Westgate Associates, LLC 
 Page 3 
  
 PLUMBING 
  

	•	 	Sawcut floor as required for new plumbing installation 

  

	•	 	Cap existing toilet connection as required 

  

	•	 	Provide and install two (2) new handicap tank type water closets 

  

	•	 	Two (2) new drop in sinks in toilet rooms 

  

	•	 	One (1) new double bowl breakroom sink 

  

	•	 	Connections as required to existing hot water heater 

  

	•	 	One (1) new bi-level handicap water fountain 

  
 HVAC 
  

	•	 	Modify existing HVAC ductwork as required for new floor layout 

  

	•	 	Relocate thermostat’s as needed 

  

	•	 	Install one (1) new exhaust fan in each toilet room, using existing exhaust duct 

  
 ELECTRICAL 
  

	•	 	Remove electrical panel as required for new floor lay out 

  

	•	 	Relocate existing electrical panel to new electrical room 

  

	•	 	Extend the existing service from the occupied space to a new meter base on the outside of the exterior wall 

  

	•	 	Reconnection to existing HVAC system and water heater 

  

	•	 	Two (2) dedicated breakroom circuits 

  

	•	 	Thirty Three (33) new 2’ x 4’ light fixtures with acrylic lens 

  

	•	 	Twelve (12) single pole switches 

  

	•	 	Connection to two (2) toilet room exhaust fans 

  

	•	 	Thirty five (35) standard duplex outlets 

  

	•	 	One (1) dedicated circuit for copier 

  

	•	 	One (1) dedicated circuit for server room 

  
 AWNING 
  

	•	 	Install new entrance awning using an allowance of $3,500.00 

  
 BLINDS 
  

	•	 	Install new exterior window blinds using an allowance of $900.00 

  
 EXCLUSIONS OR QUALIFICATIONS 
  

	•	 	Any changes due to final design, code search or review by inspections will be a change order to the contract 

  

	•	 	Anything not specifically mentioned in this proposal is not included 

  

	•	 	Data/telephone wiring is not included 

  

	•	 	No fire alarm work is included 

  

	•	 	Overtime work is not included 

  

	•	 	We have included waxing the VCT with three (3) coats of wax 

  

	•	 	Owner to provide temporary power and water for construction 

 May 25, 2005 
 Mr. Robin Team

 1400 Westgate Associates, LLC 
 Page 4 
  
 After receipt of fully executed contract please allow one (1) week for permit/working
drawings, and two (2) weeks for receipt of building permit. Please allow an additional five (5) weeks for construction after receipt of building permit. 
  
 Our payment terms are as follows: 100% of all work completed during the month, invoiced on the 30th of the month and due on the 10th of the following month. Final payment
is due ten (10) days after completion, occupancy or acceptance whichever is earlier. 
  
 Thank you for the opportunity to make this proposal. I look forward to working with you on this project. Please feel free to call with any questions. 
  

Sincerely, 
  
 LANDMARK BUILDERS 
  
 Lawrence Effler

 Upfit/Renovation Sales 
 Project Manager 

 EXHIBIT C 
  

JANITORIAL STANDARDS 
  
 Janitorial Maintenance Schedule 
  

	I.	Offices and Common Areas (Nightly): 

  

	 	A.	Vacuum all floor areas 

  

	 	B.	Empty and clean all wastebaskets and ashtrays 

  

	 	C.	Dust and wipe clean all furniture, fixtures, telephones and windowsills 

  

	 	D.	Clean all glass furniture tops 

  

	 	E.	Clean all water fountains and coolers 

  

	 	F.	Wipe all countertops with cleaning agent 

  

	 	G.	Clean all door and elevator thresholds 

  

	II.	Lavatories (Nightly): 

  

	 	A.	Sweep and wash all floors 

  

	 	B.	Clean all mirrors, enameled surfaces and fixtures 

  

	 	C.	Clean and disinfect all toilets and urinals 

  

	 	D.	Clean all partitions, soap dispensers and paper dispensers 

  

	 	E.	Refill all paper dispensers 

  

	 	F.	Empty all waste paper receptacles 

  

	III.	Periodic Cleaning: 

  

	 	A.	Spot clean carpet as needed 

  

	 	B.	Strip and wax vinyl flooring semi-annually 

  

	 	C.	Dust all window blinds 

  

	 	D.	Dust high ledges and other areas 

  

	 	E.	Shampoo carpet semi-annually 

  

	 	F.	Vacuum supply and return-air grills 

  

	 	G.	Clean interior windows as needed and no less than quarterly 

  

			
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 EXHIBIT D 
  

RULES AND REGULATIONS 
  
 1. Access to Building. On Saturdays, Sundays, legal holidays and weekdays between the hours of 6:00 P.M. and 8:00 A.M., access to the Building and/or to
the halls, corridors, elevators or stairways in the Building may be restricted and access shall be gained by use of a key or electronic card to the outside doors of the Buildings. Lessor may from time to time establish security controls for the
purpose of regulating access to the Building. Lessee shall be responsible for providing access to the Premises for its agents, employees, invitees and guests at times access is restricted, and shall comply with all such security regulations so
established. 
  
 2. Building Directories. The directories for the
Building in the form selected by Lessor shall be used exclusively for the display of the name and location of tenants. Any additional names and/or name change requested by Lessee to be displayed in the directories must be approved by Lessor and, if
approved, will be provided at the sole expense of Lessee. 
  
 3.
Large Articles. Furniture, freight and other large or heavy articles may be brought into the Building only on the freight elevator in the Building and only at times and in the manner designated by Lessor and always at Lessee’s sole
responsibility. All damage done to the Building, its furnishings, fixtures or equipment by moving or maintaining such furniture, freight or articles shall be repaired at Lessee’s expense. 
  
 4. Signs. Lessee shall not paint, display, inscribe, maintain or affix any
sign, placard, picture, advertisement, name, notice, lettering or direction on any part of the outside or inside of the Building, or on any part of the inside of the Premises which can be seen from the outside of the Premises, without the written
consent of Lessor, and then only such name or names or matter and in such color, size, style, character and material as shall be first approved by Lessor in writing. Lessor, without notice to Lessee, reserves the right to remove, at Lessee’s
expense, all matter other than that provided for above. 
  
 5.
Compliance with Laws. Lessee shall comply with all applicable laws, ordinances, governmental orders or regulations and applicable orders or directions from any public office or body having jurisdiction, whether now existing or hereinafter enacted
with respect to the Premises and the use or occupancy thereof. Lessee shall not make or permit any use of the Premises which directly or indirectly is forbidden by law, ordinance, governmental regulations or order or direction of applicable public
authority, which may be dangerous to persons or property or which may constitute a nuisance to other tenants. 
  
 6. Hazardous Materials. Lessee shall not use or permit to be brought into the Premises or the Building any flammable oils or fluids, or any explosive or
other articles deemed hazardous to persons or property, or do or permit to be done any act or thing which will invalidate, or which, if brought in, would be in conflict with any insurance policy covering the Building or its operation, or the
Premises, or any part of either, and will not do or permit to be done anything in or upon the Premises, or bring to keep anything therein, which shall not comply with all rules, orders, regulations 
  

			
	 Bank of North Carolina - Lease - 05/20/2005
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 or requirements of any organization, bureau, department or body having jurisdiction with respect thereto (and Lessee
shall at all times comply with all such rules, orders, regulations or requirements), or which shall increase the rate of insurance on the Building, its appurtenances, contents or operation. Additionally, in the event Lessee’s business involves
the storage, use and disposal of medical waste, such medical waste shall be properly disposed of in accordance with all laws, rules and regulations governing same, and in any event, in a safe and sanitary manner. 
  
 7. Defacing Premises and Overloading. Lessee shall not place anything or
allow anything to be placed in the Premises near the glass of any door, partition, wall or window that may be unsightly from outside the Premises. Lessee shall not place or permit to be placed any article of any kind on any window ledge or on the
exterior walls; blinds, shades, awnings or other forms of inside or outside window ventilators or similar devices shall not be placed in or about the outside windows in the Premises except to the extent that the character, shape, color, material and
make thereof is approved by Lessor. Lessee shall not do any painting or decorating in the Premises or install any floor coverings in the Premises or make, paint, cut or drill into, or in any way deface any part of the Premises or Building without in
each instance obtaining the prior written consent of Lessor. Lessee shall not overload any floor or part thereof in the Premises, or any facility in the Building or any public corridors or elevators therein by bringing in or removing any large or
heavy articles and Lessor may direct and control the location of safes, files, and all other heavy articles and, if considered necessary by Lessor may require Lessee at its expense to supply whatever supplementary supports necessary to properly
distribute the weight. 
  
 8. Obstruction of Public Areas. Lessee
shall not, whether temporarily, accidentally or otherwise, allow anything to remain in, place or store anything in, or obstruct in any way, any sidewalk, court, hall passageway, entrance, or shipping area. Lessee shall lend its full cooperation to
keep such areas free from all obstruction and in a clean and sightly condition, and move all supplies, furniture and equipment as soon as received directly to the Premises, and shall move all such items and waste (other than waste customarily
removed by Building employees) that are at any time being taken from the Premises directly to the areas designated for disposal. All courts, passageways, entrances, exits, elevators, escalators, stairways, corridors, halls and roofs are not for the
use of the general public and Lessor shall in all cases retain the right to control and prevent access thereto by all persons whose presence, in the judgment of Lessor, shall be prejudicial to the safety, character, reputation and interest of the
Building and its tenants; provided, however, that nothing herein contained shall be construed to prevent such access to persons with whom Lessee deals within the normal course of Lessee’s business so long as such persons are not engaged in
illegal activities. 
  
 9. Additional Locks. Lessee shall not
attach, or permit to be attached, additional locks or similar devices to any door or window, change existing locks or the mechanism thereof, or make or permit to be made any keys for any door other than those provided by Lessor. Upon termination of
this Lease or of Lessee’s possession, Lessee shall immediately surrender all keys or pass cards to the Premises. 
  
 10. Communications or Utility Connections. If Lessee desires signal, alarm or other utility or similar service connections installed or changed, then
Lessee shall not install or change the same without the approval of Lessor, and then only under direction of Lessor and at Lessee’s 
  

			
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	 	Page 21 of 25

 expense. Lessee shall not install in the Premises any equipment which requires a greater than normal amount of electrical
current for the Permitted Use without the advance written consent of Lessor. Lessee shall ascertain from Lessor the maximum amount of load or demand for or use of electrical current which can safely be permitted in the Premises, taking into account
the capacity of the electric wiring in the Building and the Premises and the needs of other tenants in the Building, and shall not in any event connect a greater load than that which is safe. 
  
 11. Office of the Building. Service requirements of Lessee will be attended
to only upon application at the office of the Building Manager. Employees of Lessor shall not perform, and Lessee shall not engage them to do any work outside of their duties unless specifically authorized by Lessor. 
  
 12. Restrooms. The restrooms, toilets, urinals, vanities and the other
apparatus shall not be used for any purpose other than that for which they were constructed, and no foreign substance of any kind whatsoever shall be thrown therein. The expense of any breakage, stoppage or damage resulting from the violation of
this rule shall be borne by Lessee whom, or whose employees or invitees, shall have caused it. 
  
 13. Intoxication. Lessor reserves the right to exclude or expel from the Building any person who, in the judgment of Lessor, is intoxicated, or under the influence of liquor or drugs, or who in any way violates any of
the Rules and Regulations of the Building. 
  
 14. Nuisances and
Certain Other Prohibited Uses. Lessee shall not (a) install or operate any internal combustion engine, boiler, machinery, refrigerating (excluding breakroom refrigerator), heating or air conditioning apparatus in or about the Premises; (b) engage in
any mechanical business, or in any service in or about the Premises or Building, except those ordinarily embraced within the Permitted Use as defined in Section 8(a) of the Lease; (c) use the Premises for housing, lodging, or sleeping purposes; (d)
prepare or warm food in the Premises or permit food to be brought into the Premises for consumption therein (heating coffee, individual lunches of employees and catered in meals excepted) except by express permission of Lessor; (e) place any radio
or television antennae on the roof or on or in any part of the inside or outside of the Building other than the inside of the Premises, or place a musical or sound producing instrument or device inside or outside the Premises which may be heard
outside the Premises; (f) use any power source for the operation of any equipment or devise other than dry cell batteries or electricity; (g) operate any electrical device from which may emanate waves that could interfere with or impair radio or
television broadcasting or reception from or in the Building or elsewhere; (h) bring or permit to be in the Building any bicycle, other vehicle, dog (except in the company of a blind person), other animal or bird; (i) make or permit any
objectionable noise or odor to emanate from the Premises; (j) disturb, harass, solicit or canvass any occupant of the Building; (k) do anything in or about the Premises which could be a nuisance or lend to injure the reputation of the Building; (l)
allow any firearms in the Building or the Premises except as approved by Lessor in writing. 
  

			
	 Bank of North Carolina - Lease - 05/20/2005
	 	Page 22 of 25

 15. Solicitation. Lessee shall not canvass other tenants in the Building to solicit business or
contributions and shall not exhibit, sell or offer to sell, use, rent or exchange any products or services in or from the Premises unless ordinarily embraced within the Lessee’s Permitted Use. 
  
 16. Energy Conservation. Lessee shall not waste electricity, water, heat or
air conditioning and agrees to cooperate fully with Lessor to insure the most effective operation of the Building’s heating and air conditioning, and shall not allow the adjustment (except by Lessor’s authorized Building personnel) of any
controls. The last employee of Lessee’s to leave the Premises each day shall turn off all lights in the Premises. 
  
 17. Building Security. At all times other than normal business hours the exterior Building doors and suite entry door(s) must be kept locked to assist in
security. The janitorial service, upon completion of its duties, will lock all Building doors. Problems in Building and suite security should be directed to Lessor at Lessor’s phone number (336-243-2600). The last employee of Lessee’s to
leave the Premises each day shall close and lock all doors to the Premises. 
  
 18. Parking. Parking is in designated parking areas only. There may be no vehicles in “no parking” zones or at curbs. Handicapped spaces are for handicapped persons and the Police Department will ticket
unauthorized (unidentified) cars in handicapped spaces. Lessor reserves the right to remove vehicles that do not comply with the Lease or these Rules and Regulations and Lessee shall indemnify and hold harmless Lessor from its reasonable exercise of
these rights with respect to the vehicles of Lessee and its employees, agents and invitees. 
  
 19. Janitorial Service. The janitorial staff will remove all trash from trash cans. Any container or boxes left in hallways or apparently discarded unless clearly and conspicuously labeled DO NOT REMOVE may be removed
without liability to Lessee. Any large volume of trash resulting from delivery of furniture, equipment, etc., should be removed by the delivery company, Lessee, or Lessor at Lessee’s expense. Janitorial service will be provided after hours five
(5) days a week in accordance with the janitorial standards set forth on Exhibit C. All requests for trash removal other than normal janitorial services should be directed to Lessor at Lessor’s phone number (336-243-2600). 
  
 20. Construction. Lessee shall make no structural or interior alterations of
the Premises. All structural and nonstructural alterations and modifications to the Premises shall be coordinated through Lessor as outlined in the Lease. Completed construction drawings of the requested changes are to be submitted to Lessor or its
designated agent for pricing and construction supervision. 
  
 21.
Lessee shall not allow any person to bring a firearm onto the Leased Premises nor shall Lessee permit any person to use any portion of the Leased Premises (or the property on which it is located) for hunting purposes, or to discharge from any
portion of the Leased Premises (or on the property which is it located ), any rifle, shotgun, pistol or other firearm, or any bow and arrow, or any other device or weapon designed to fire or shoot any projectile for the purpose of injuring or
killing. 
  
 22. Smoking is not permitted in offices and cubicles,
common areas such as restrooms, conference rooms, lobbies, hallways, elevators, staircases, water fountains and 
  

			
	 Bank of North Carolina - Lease - 05/20/2005
	 	Page 23 of 25

 building main entrances and exits. Smoking is not permitted where combustible fumes can collect. This includes storage
areas, or any area where an occupational hazard may exist. Due to health, safety and liability risks, this policy will be strictly enforced. The designated smoking areas are located outside of the secondary / employee entrances of the building.
There is no prohibition on smoking in these areas. 
  
  

			
	 Bank of North Carolina - Lease - 05/20/2005
	 	Page 24 of 25

 THIS IS THE LAST PAGE OF THE LEASE DOCUMENT AND INTENTIONALLY LEFT BLANK 
  

			
	 Bank of North Carolina - Lease - 05/20/2005
	 	Page 25 of 25Credit Agreement

 Exhibit 10.19 
  

  
 $69,000,000 
  
 CREDIT AGREEMENT 

 
 among 
  
 INERGY HOLDINGS, LLC, 
 as Borrower, 
  
 The
Several Lenders 
 from Time to Time Parties Hereto, 
  
 LEHMAN BROTHERS INC., 
 as Arranger 
  
 and

  
 LEHMAN COMMERCIAL PAPER INC., 
 as Syndication Agent and Administrative Agent 
  
 Dated as of April 28, 2005 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 Section 1.
	  	 DEFINITIONS
	  	1
	 1.1
	  	 Defined Terms
	  	1
	 1.2
	  	 Other Definitional Provisions
	  	17
			
	 Section 2.
	  	 AMOUNT AND TERMS OF COMMITMENTS
	  	18
	 2.1
	  	 Commitments
	  	18
	 2.2
	  	 Procedure for Borrowing
	  	18
	 2.3
	  	 Repayment of Loans
	  	18
	 2.4
	  	 Evidence of Debt
	  	18
	 2.5
	  	 Fees, etc.
	  	19
	 2.6
	  	 Optional Prepayments
	  	19
	 2.7
	  	 Mandatory Prepayments
	  	19
	 2.8
	  	 Conversion and Continuation Options
	  	19
	 2.9
	  	 Minimum Amounts and Maximum Number of Eurodollar Tranches
	  	20
	 2.10
	  	 Interest Rates and Payment Dates
	  	20
	 2.11
	  	 Computation of Interest and Fees
	  	21
	 2.12
	  	 Inability to Determine Interest Rate
	  	21
	 2.13
	  	 Pro Rata Treatment and Payments
	  	22
	 2.14
	  	 Requirements of Law
	  	23
	 2.15
	  	 Taxes
	  	24
	 2.16
	  	 Indemnity
	  	25
	 2.17
	  	 Illegality
	  	26
	 2.18
	  	 Change of Lending Office
	  	26
	 2.19
	  	 Replacement of Lenders under Certain Circumstances
	  	26
			
	 Section 3.
	  	 REPRESENTATIONS AND WARRANTIES
	  	27
	 3.1
	  	 Financial Condition
	  	27
	 3.2
	  	 No Change
	  	28
	 3.3
	  	 Corporate Existence; Compliance with Law
	  	28
	 3.4
	  	 Corporate Power; Authorization; Enforceable Obligations
	  	28
	 3.5
	  	 No Legal Bar
	  	28
	 3.6
	  	 No Material Litigation
	  	29
	 3.7
	  	 No Default
	  	29
	 3.8
	  	 Ownership of Property; Liens
	  	29
	 3.9
	  	 Intellectual Property
	  	29
	 3.10
	  	 Taxes
	  	30
	 3.11
	  	 Federal Regulations
	  	30
	 3.12
	  	 Labor Matters
	  	30
	 3.13
	  	 ERISA
	  	30
	 3.14
	  	 Investment Company Act; Other Regulations
	  	31
	 3.15
	  	 Subsidiaries
	  	31
	 3.16
	  	 Use of Proceeds
	  	31

  

 i 

					
	 3.17
	  	 Environmental Matters
	  	31
	 3.18
	  	 Accuracy of Information, etc.
	  	32
	 3.19
	  	 Guarantee and Collateral Agreement
	  	33
	 3.20
	  	 Solvency
	  	33
	 3.21
	  	 Existing Indebtedness
	  	33
			
	 Section 4.
	  	 CONDITIONS PRECEDENT
	  	33
	 4.1
	  	 Conditions to Loans
	  	33
			
	 Section 5.
	  	 AFFIRMATIVE COVENANTS
	  	35
	 5.1
	  	 Financial Statements
	  	35
	 5.2
	  	 Certificates; Other Information
	  	36
	 5.3
	  	 Payment of Obligations
	  	37
	 5.4
	  	 Conduct of Business and Maintenance of Existence, etc.
	  	37
	 5.5
	  	 Maintenance of Property; Insurance
	  	37
	 5.6
	  	 Inspection of Property; Books and Records; Discussions
	  	37
	 5.7
	  	 Notices
	  	37
	 5.8
	  	 Environmental Laws
	  	38
	 5.9
	  	 Additional Collateral, etc.
	  	38
	 5.10
	  	 Further Assurances
	  	39
			
	 Section 6.
	  	 NEGATIVE COVENANTS
	  	39
	 6.1
	  	 Financial Condition Covenants
	  	39
	 6.2
	  	 Limitation on Indebtedness
	  	40
	 6.3
	  	 Limitation on Liens
	  	40
	 6.4
	  	 Limitation on Fundamental Changes
	  	41
	 6.5
	  	 Limitation on Disposition of Property
	  	41
	 6.6
	  	 Limitation on Restricted Payments
	  	42
	 6.7
	  	 Limitation on Capital Expenditures
	  	42
	 6.8
	  	 Limitation on Investments
	  	42
	 6.9
	  	 Change in Equity Structure
	  	43
	 6.10
	  	 Limitation on Transactions with Affiliates
	  	43
	 6.11
	  	 Limitation on Sales and Leasebacks
	  	44
	 6.12
	  	 Limitation on Changes in Fiscal Periods
	  	44
	 6.13
	  	 Limitation on Negative Pledge Clauses
	  	44
	 6.14
	  	 Limitation on Lines of Business
	  	44
	 6.15
	  	 Limitation on Optional Payments and Modifications of Debt Instruments, etc.
	  	44
	 6.16
	  	 Limitation on Amendments to Certain Documents
	  	44
	 6.17
	  	 Limitation on Activities of Restricted Subsidiaries
	  	45
	 6.18
	  	 Limitation on Hedge Agreements
	  	45
			
	 Section 7.
	  	 EVENTS OF DEFAULT
	  	45
			
	 Section 8.
	  	 THE AGENTS
	  	48
	 8.1
	  	 Appointment
	  	48
	 8.2
	  	 Delegation of Duties
	  	49
	 8.3
	  	 Exculpatory Provisions
	  	49

  

 ii 

					
	 8.4
	  	 Reliance by Agents
	  	49
	 8.5
	  	 Notice of Default
	  	50
	 8.6
	  	 Non-Reliance on Agents and Other Lenders
	  	50
	 8.7
	  	 Indemnification
	  	50
	 8.8
	  	 Agent in Its Individual Capacity
	  	51
	 8.9
	  	 Successor Administrative Agent
	  	51
	 8.10
	  	 Authorization to Release Liens
	  	51
	 8.11
	  	 The Arranger and the Syndication Agent
	  	52
			
	 Section 9.
	  	 MISCELLANEOUS
	  	52
	 9.1
	  	 Amendments and Waivers
	  	52
	 9.2
	  	 Notices
	  	53
	 9.3
	  	 No Waiver; Cumulative Remedies
	  	54
	 9.4
	  	 Survival of Representations and Warranties
	  	54
	 9.5
	  	 Payment of Expenses
	  	54
	 9.6
	  	 Successors and Assigns; Participations and Assignments
	  	55
	 9.7
	  	 Adjustments; Set-off
	  	58
	 9.8
	  	 Counterparts
	  	59
	 9.9
	  	 Severability
	  	59
	 9.10
	  	 Integration
	  	59
	 9.11
	  	 GOVERNING LAW
	  	59
	 9.12
	  	 Submission To Jurisdiction; Waivers
	  	59
	 9.13
	  	 Acknowledgments
	  	60
	 9.14
	  	 Confidentiality
	  	60
	 9.15
	  	 Release of Collateral
	  	61
	 9.16
	  	 Accounting Changes
	  	61
	 9.17
	  	 Delivery of Lender Addenda
	  	61
	 9.18
	  	 Intentionally Omitted
	  	61
	 9.19
	  	 WAIVERS OF JURY TRIAL
	  	62
	 9.20
	  	 Separateness
	  	62
	 9.21
	  	 USA Patriot Act
	  	62

  

 iii 

 SCHEDULES: 
  

			
	 3.15
	  	Subsidiaries
	 3.21
	  	Existing Indebtedness

  
 EXHIBITS: 
  

			
	 A
	  	Form of Guarantee and Collateral Agreement
	 B
	  	Form of Compliance Certificate
	 C
	  	Form of Closing Certificate
	 D
	  	Form of Assignment and Acceptance
	 E
	  	Form of Legal Opinion of Stinson Morrison Hecker LLP
	 F
	  	Form of Note
	 G
	  	Form of Exemption Certificate
	 H
	  	Form of Lender Addendum
	 I
	  	Form of Borrowing Notice
	 J
	  	List of Closing Documents

  

 iv 

 Exhibit 10.19 
  
 CREDIT AGREEMENT, dated as of April 28, 2005, among INERGY HOLDINGS, LLC, a Delaware limited liability company (together
with its successors and permitted assigns, the “Borrower”), the several banks and other financial institutions or entities from time to time parties to this Agreement (the “Lenders”), LEHMAN BROTHERS INC., as sole
lead arranger and sole bookrunner (in such capacity, the “Arranger”) and LEHMAN COMMERCIAL PAPER INC., as syndication agent (in such capacity, the “Syndication Agent”) and as administrative agent (in such capacity,
the “Administrative Agent”). 
  
 W I
T N E S S E T H: 
  
 WHEREAS, the Borrower and Enterprise Bank & Trust are parties to a Credit Agreement, dated as of August 30, 2004 (as amended prior to the date hereof, the “Existing Credit Agreement”); and

  
 WHEREAS, the Borrower has requested that the Lenders provide
it credit facilities in order to (a) repay all amounts outstanding on the date hereof under the Existing Credit Agreement in connection with the termination thereof, (b) pay a special distribution to holders of its Capital Stock (the
“Special Distribution”), (c) repurchase certain outstanding membership interests in the Borrower for an amount not to exceed $3,000,000 and (d) pay the related fees and expenses incurred in connection therewith; and 
  
 WHEREAS, the Lenders are willing to make such credit facilities available
upon and subject to the terms and conditions hereinafter set forth; 
  
 NOW, THEREFORE, in consideration of the premises and the agreements hereinafter set forth, the parties hereto hereby agree as follows: 
  
 Section 1. DEFINITIONS 
  
 1.1 Defined Terms. As used in this Agreement, the terms listed in this Section 1.1 shall have the respective meanings set forth in this
Section 1.1. 
  
 “Administrative Agent”: as
defined in the preamble hereto. 
  
 “Affiliate”:
as to any Person, any other Person that, directly or indirectly, is in control of, is controlled by, or is under common control with, such Person. For purposes of this definition, “control” of a Person means the power, directly or
indirectly, either to (a) vote 10% or more of the securities having ordinary voting power for the election of directors (or persons performing similar functions) of such Person or (b) direct or cause the direction of the management and policies of
such Person, whether by contract or otherwise. 
  
 “Agents”: the collective reference to the Syndication Agent and the Administrative Agent. 
  
 “Agreement”: this Credit Agreement, as amended, modified or otherwise supplemented from time to time. 
  

 “Applicable Margin”: for each Type of Loan, the rate per annum set forth under the
relevant column heading below: 
  

			
	 Base Rate Loans

	  	 Eurodollar Loans

	 1.50%
	  	2.50%

  
 “Arranger”: as defined in the preamble hereto. 
  
 “Assignee”: as defined in Section 9.6(c). 
  
 “Assignor”: as defined in Section 9.6(c). 
  
 “Available Cash”: with respect to the Borrower, for any period: 
  
 (a) all cash and cash equivalents of the Borrower on hand at the end of such period 
  
 (b) less the total amount of any cash reserves that is
necessary or appropriate in the reasonable discretion of the Borrower to: 
  
 (1) provide for the proper conduct of the business of the Borrower (including reserves for future Capital Expenditures and for future credit needs of the Borrower) after such period; 
  
 (2) pay 50% of the interest to be paid on the Loans
hereunder and any Subordinated Debt in the next fiscal quarter; and 
  
 (3) comply with applicable law or any debt instrument or other agreement or obligation to which the Borrower is a party or its assets are subject; 
  
 provided, further, that disbursements made by the Borrower or cash reserves established, increased or reduced after
the end of such period but on or before the date of determination of Available Cash for such period shall be deemed to have been made, established, increased or reduced, for purposes of determining Available Cash, within such period if the Borrower
so determines. 
  
 “Base Rate”: for any day, a
rate per annum equal to the greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day plus 1⁄2 of 1%. For purposes hereof: “Prime Rate” shall mean the prime lending rate as
set forth on the British Banking Association Telerate Page 5 (or such other comparable page as may, in the opinion of the Administrative Agent, replace such page for the purpose of displaying such rate), as in effect from time to time. The Prime
Rate is a reference rate and does not necessarily represent the lowest or best rate actually available. Any change in the Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate shall be effective as of the opening of
business on the effective day of such change in the Prime Rate or the Federal Funds Effective Rate, respectively. 
  

 2 

 “Base Rate Loans”: Loans for which the applicable rate of interest is based upon the
Base Rate. 
  
 “Benefitted Lender”: as defined in
Section 9.7(a). 
  
 “Board”: the Board of
Governors of the Federal Reserve System of the United States (or any successor). 
  
 “Borrower”: as defined in the preamble hereto. 
  
 “Borrower GP”: Inergy Holdings GP, LLC, a Delaware limited liability company and the sole general partner of the Borrower upon completion
of the Minimum IPO, together with its successors and permitted assigns. 
  
 “Borrower Projections”: as defined in Section 5.2(c). 
  
 “Borrowing Notice”: with respect to the request for borrowing of Loans hereunder, a notice from the Borrower, substantially in the form of, and containing the information prescribed by, Exhibit I,
delivered to the Administrative Agent. 
  
 “Business
Day”: (a) for all purposes other than as covered by clause (b) below, a day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to close and (b) with respect to all notices
and determinations in connection with, and payments of principal and interest on, Eurodollar Loans, any day which is a Business Day described in clause (a) and which is also a day for trading by and between banks in Dollar deposits in the interbank
eurodollar market. 
  
 “Capital Expenditures”:
for any period, with respect to any Person, the aggregate of all expenditures by such Person for the acquisition or leasing (pursuant to a capital lease) of fixed or capital assets or additions to equipment (including replacements, capitalized
repairs and improvements during such period) which are required to be capitalized under GAAP on a balance sheet of such Person. 
  
 “Capital Lease Obligations”: with respect to any Person, the obligations of such Person to pay rent or other amounts under any lease of
(or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP; and, for the
purposes of this Agreement, the amount of such obligations at any time shall be the capitalized amount thereof at such time determined in accordance with GAAP. 
  

“Capital Stock”: any and all shares, interests, participations or other equivalents (however designated) of equity of a corporation,
any and all equivalent equity-related interests in a Person (other than a corporation), including without limitation the Incentive Distribution Rights, and any and all warrants, rights or options to purchase any of the foregoing, excluding any debt
securities convertible into such interests. 
  

 3 

 “Cash Equivalents”: (a) marketable direct obligations issued by, or unconditionally
guaranteed by, the United States government or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within one year from the date of acquisition; (b) certificates of deposit, time deposits,
eurodollar time deposits or overnight bank deposits having maturities of six months or less from the date of acquisition issued by any Lender or by any commercial bank organized under the laws of the United States of America or any state thereof
having combined capital and surplus of not less than $500,000,000; (c) commercial paper of an issuer rated at least A-1 by Standard & Poor’s Ratings Services (“S&P”) or P-1 by Moody’s Investors Service, Inc.
(“Moody’s”), or carrying an equivalent rating by a nationally recognized credit rating agency, if both of the two named rating agencies cease publishing ratings of commercial paper issuers generally, and maturing within six
months from the date of acquisition; (d) repurchase obligations of any Lender or of any commercial bank satisfying the requirements of clause (b) of this definition, having a term of not more than 30 days with respect to securities issued or fully
guaranteed or insured by the United States government; (e) securities with maturities of one year or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States, by any political
subdivision or taxing authority of any such state, commonwealth or territory or by any foreign government, the securities of which state, commonwealth, territory, political subdivision, taxing authority or foreign government (as the case may be) are
rated at least A by S&P or A by Moody’s; (f) securities with maturities of six months or less from the date of acquisition backed by standby letters of credit issued by any Lender or any commercial bank satisfying the requirements of clause
(b) of this definition; (g) shares of money market mutual or similar funds which invest exclusively in assets satisfying the requirements of clauses (a) through (f) of this definition; and (h) money market funds that (i) comply with the criteria set
forth in SEC Rule 2a-7 under the Investment Company Act of 1940, as amended, (ii) are rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio assets of at least $5,000,000,000. 
  
 “Change of Control”: the occurrence of any of the following
events, other than as an immediate and direct result of the Proposed IPO : (a) (i) prior to completion of the Minimum IPO, the Permitted Investors shall cease to own, directly, at least 33% of each class of outstanding Capital Stock (including, in
any event, Capital Stock representing at least 33% of both the voting and the economic interest) of the Borrower free and clear of all Liens and (ii) on and after completion of the Minimum IPO, the Permitted Investors shall cease to own, directly,
at least 33% of each class of outstanding Capital Stock (including, in any event, Capital Stock representing at least 33% of both the voting and the economic interest) of the Borrower GP free and clear of all Liens; (b) on and after completion of
the Minimum IPO, the Borrower GP shall cease to be the sole general partner of the Borrower; (c) John J. Sherman, other than as a result of his death or disability, fails to perform substantially the same duties as being performed by him for the
benefit of the Borrower on the Closing Date; (d) the Borrower shall cease to own and control, of record and beneficially, directly, (i) 100% of each class of outstanding Capital Stock of IPCH Acquisition Corp. (a Delaware corporation), Inergy
Partners, LLC (a Delaware limited liability company) and Inergy GP, LLC (a Delaware limited liability company) and (ii) 100% of each class of outstanding common Capital Stock of New Inergy Propane, LLC (a Delaware limited liability company), in each
case free and clear of all Liens (except Liens created by the Guarantee and Collateral Agreement); (e) the board of directors of the Borrower shall cease to consist of a majority of Continuing Directors; (f) the Borrower shall cease to own and
control, of record or beneficially, directly or indirectly, 100% of the general partner interests in ILP or to be, 

  

 4 

 
or indirectly control, the general partners of ILP; (g) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of
the Exchange Act), excluding the Borrower and its Affiliates and the owners of the Borrower as of the Closing Date and their Permitted Transferees, shall become, or obtain rights (whether by means of warrants, options or otherwise) to become, the
“beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act), directly or indirectly, of more than 30% of the outstanding Capital Stock of the Borrower or (h) a “Change in Control”, as defined in the ILP
Credit Agreement or the ILP Senior Note Indenture, occurs. 
  
 “Closing Date”: the date on which the conditions precedent set forth in Section 4.1 shall have been satisfied, which date shall be not later than April 29, 2005. 
  
 “Code”: the Internal Revenue Code of 1986, as amended from time to time. 
  
 “Collateral”: all Property of the Borrower, now owned or
hereafter acquired, upon which a Lien is purported to be created by any Security Document. 
  
 “Collateral Asset Sale”: any Disposition of Collateral, other than (i) the transfer of the Incentive Distribution Rights to Inergy Partners, LLC as provided for in Section 5.9(b) and Restricted
Payments made in compliance with Section 6.6. 
  
 “Collateral Party”: each Loan Party other than the entities in existence on the Closing Date named Inergy Partners, LLC and Inergy GP, LLC. 
  
 “Commitment”: as to any Lender, the obligation of such Lender to make a Loan to the Borrower hereunder on
the Closing Date in a principal amount not to exceed the amount set forth under the heading “Commitment” opposite such Lender’s name on Schedule 1 to the Lender Addendum delivered by such Lender, or, as the case may be, in the
Assignment and Acceptance pursuant to which such Lender became a party hereto, as the same may be changed from time to time pursuant to the terms hereof. The original aggregate amount of the Commitments is $69,000,000. 
  
 “Commonly Controlled Entity”: an entity, whether or not
incorporated, that is under common control with the Borrower within the meaning of Section 4001 of ERISA or is part of a group that includes the Borrower and that is treated as a single employer under Section 414 of the Code. 
  
 “Compliance Certificate”: a certificate duly executed by a
Responsible Officer, substantially in the form of Exhibit B. 
  
 “Consolidated Free Cash Flow”: for any period, the difference, if any, of (a) the aggregate amount, without duplication, of all cash distributions received on account of Capital Stock by the Borrower from any of its
Restricted Subsidiaries during such period minus (b) any amounts, without duplication, paid in cash by any Loan Party during such period in respect of the operating expenses of the Borrower or any of its Subsidiaries or Borrower GP (other
than any amounts constituting operating expenses of, and which are reimbursed by, ILP or any of its Subsidiaries). 
  

 5 

 “Consolidated Interest Expense”: for any period, total cash interest expense (including
that attributable to Capital Lease Obligations) of each Loan Party for such period with respect to all outstanding Indebtedness of such Loan Party (including all commissions, discounts and other fees and charges owed by such Loan Party with respect
to letters of credit and bankers’ acceptance financing and net costs of such Loan Party under Hedge Agreements in respect of interest rates to the extent such net costs are allocable to such period in accordance with GAAP). 
  
 “Consolidated Senior Debt”: all Consolidated Total Debt
other than Subordinated Debt. 
  
 “Consolidated Total
Debt”: at any date, the aggregate principal amount of all Indebtedness of all Loan Parties at such date, determined on a consolidated basis in accordance with GAAP. 
  
 “Continuing Directors”: each director of the Borrower if such director’s nomination for election to
the board of directors of the Borrower is recommended by a majority of the then Continuing Directors or such other director receives the vote of the Permitted Investors in his or her election by the members of the Borrower. 
  
 “Contractual Obligation”: as to any Person, any provision of
any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its Property is bound. 
  
 “Control Investment Affiliate”: as to any Person, any other Person that (a) directly or indirectly, is in
control of, is controlled by, or is under common control with, such Person and (b) is organized by such Person primarily for the purpose of making equity or debt investments in one or more companies. For purposes of this definition,
“control” of a Person means the power, directly or indirectly, to direct or cause the direction of the management and policies of such Person, whether by contract or otherwise. 
  
 “Default”: any of the events specified in Section 7, whether or not any requirement for the giving of
notice, the lapse of time, or both, has been satisfied. 
  
 “Disposition”: with respect to any Property, any sale, lease, sale and leaseback, assignment, conveyance, transfer or other disposition thereof; and the terms “Dispose” and “Disposed of”
shall have correlative meanings. 
  
 “Dollars”
and “$”: lawful currency of the United States of America. 
  
 “Environmental Laws”: any and all laws, rules, orders, regulations, statutes, ordinances, codes, decrees, (including common law) of the United States, or any state, local, municipal or other
Governmental Authority, regulating, relating to or imposing liability or standards of conduct concerning protection of the environment or of human health, or employee health and safety. 
  
 “Environmental Permits”: any and all permits, licenses, approvals, registrations, notifications, exemptions
and other authorizations required under any Environmental Law. 
  

 6 

 “ERISA”: the Employee Retirement Income Security Act of 1974, as amended from time to
time. 
  
 “Eurocurrency Reserve Requirements”:
for any day, the aggregate (without duplication) of the maximum rates (expressed as a decimal fraction) of reserve requirements in effect on such day (including, without limitation, basic, supplemental, marginal and emergency reserves) under any
regulations of the Board or other Governmental Authority having jurisdiction with respect thereto dealing with reserve requirements prescribed for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of
the Board) maintained by a member bank of the Federal Reserve System. 
  
 “Eurodollar Base Rate”: with respect to each day during each Interest Period, the rate per annum determined on the basis of the rate for deposits in Dollars for a period equal to such Interest Period commencing on the first
day of such Interest Period appearing on Page 3750 of the Telerate screen as of 11:00 A.M., London time, two Business Days prior to the beginning of such Interest Period. In the event that such rate does not appear on Page 3750 of the Telerate
screen (or otherwise on such screen), the “Eurodollar Base Rate” for purposes of this definition shall be determined by reference to such other comparable publicly available service for displaying eurodollar rates as may be selected
by the Administrative Agent. 
  
 “Eurodollar
Loans”: Loans for which the applicable rate of interest is based upon the Eurodollar Rate. 
  
 “Eurodollar Rate”: with respect to each day during each Interest Period, a rate per annum determined for such day in accordance with the
following formula (rounded upward to the nearest 1/100th of 1%): 
  
 Eurodollar Base Rate 

 1.00 - Eurocurrency Reserve Requirements 
  
 “Eurodollar Tranche”: the collective reference to Eurodollar
Loans the then current Interest Periods with respect to all of which begin on the same date and end on the same later date (whether or not such Loans shall originally have been made on the same day). 
  
 “Event of Default”: any of the events specified in Section
7, provided that any requirement for the giving of notice, the lapse of time, or both, has been satisfied. 
  
 “Exchange Act”: the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 
  
 “Excluded Taxes”: as defined in Section 2.15(a). 

 
 “Existing Credit Agreement”: as defined in the recitals
hereto. 
  
 “Facility”: the Commitments and the
Loans made hereunder. 
  
 “Federal Funds Effective
Rate”: for any day, the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by 

  

 7 

 
federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any
day which is a Business Day, the average of the quotations for the day of such transactions received by the Administrative Agent from three federal funds brokers of recognized standing selected by it. 
  
 “Funding Office”: the office specified from time to time by
the Administrative Agent as its funding office by notice to the Borrower and the Lenders. 
  
 “GAAP”: generally accepted accounting principles in the United States of America as in effect from time to time. 
  
 “Governmental Authority”: any nation or government, any state or other political subdivision thereof, any
agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any
self-regulatory organization (including the National Association of Insurance Commissioners). 
  
 “Guarantee and Collateral Agreement”: the Guarantee and Collateral Agreement to be executed and delivered by each Loan Party, substantially in the form of Exhibit A. 
  
 “Guarantee Obligation”: as to any Person (the
“guaranteeing person”), any obligation, including a reimbursement, counterindemnity or similar obligation, of the guaranteeing person that guarantees or in effect guarantees, or which is given to induce the creation of a separate
obligation by another Person (including any bank under any letter of credit) that guarantees or in effect guarantees any Indebtedness, leases, dividends or other obligations (the “primary obligations”) of any other third Person (the
“primary obligor”) in any manner, whether directly or indirectly, including, without limitation, any obligation of the guaranteeing person, whether or not contingent, (i) to purchase any such primary obligation or any Property
constituting direct or indirect security therefor, (ii) to advance or supply funds (1) for the purchase or payment of any such primary obligation or (2) to maintain working capital or equity capital of the primary obligor or otherwise to maintain
the net worth or solvency of the primary obligor, (iii) to purchase Property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary
obligation or (iv) otherwise to assure or hold harmless the owner of any such primary obligation against loss in respect thereof; provided, however, that the term Guarantee Obligation shall not include endorsements of instruments for
deposit or collection in the ordinary course of business. The amount of any Guarantee Obligation of any guaranteeing person shall be deemed to be the lower of (a) an amount equal to the stated or determinable amount of the primary obligation in
respect of which such Guarantee Obligation is made and (b) the maximum amount for which such guaranteeing person may be liable pursuant to the terms of the instrument embodying such Guarantee Obligation, unless such primary obligation and the
maximum amount for which such guaranteeing person may be liable are not stated or determinable, in which case the amount of such Guarantee Obligation shall be such guaranteeing person’s maximum reasonably anticipated liability in respect
thereof as determined by the Borrower in good faith. 
  
 “Guarantors”: the collective reference to the Subsidiary Guarantors. 
  

 8 

 “Hedge Agreements”: all interest rate or currency swaps, caps or collar agreements,
foreign exchange agreements, commodity contracts or similar arrangements entered into by any Person providing for protection against fluctuations in interest rates, currency exchange rates, commodity prices or the exchange of nominal interest
obligations, either generally or under specific contingencies. 
  
 “ILP”: Inergy, L.P., a Delaware limited partnership and a Subsidiary, together with its successors and permitted assigns. 
  
 “ILP Consolidated EBITDA”: “Consolidated EBITDA” as defined in the ILP Credit Agreement. 
  
 “ILP Credit Agreement”: the Credit Agreement dated as of
December 17, 2004 by and among ILP, the lenders from time to time party thereto, Lehman Commercial Paper Inc. as syndication agent and JPMorgan Chase Bank, N.A. as administrative agent, together with all instruments, security documents and other
agreements entered into in connection therewith, as the same shall have been amended, supplemented or otherwise modified on or prior to, and as in effect, as of the Closing Date, without giving effect to any subsequent amendment, supplement or other
modification thereto or termination thereof not approved of by the Required Lenders. 
  
 “ILP Senior Notes”: the $425,000,000 of 6.875% Senior Notes of ILP and Inergy Finance Corp. due December 15, 2014 issued pursuant to the ILP Senior Note Indenture. 
  
 “ILP Senior Note Indenture”: the Indenture dated as of
December 22, 2004 between ILP and Inergy Finance Corp., as issuers, certain Subsidiaries of ILP as guarantors, and U.S. Bank National Association, as trustee. 
  

“ILP Total Funded Debt”: “Total Funded Debt” as defined in the ILP Credit Agreement. 
  
 “ILP Total Leverage Ratio”: the “Total Leverage
Ratio” as defined in the ILP Credit Agreement. 
  
 “Incentive Distribution Rights”: the “Incentive Distribution Rights” as described and defined in the partnership agreement of ILP. 
  
 “Indebtedness”: of any Person at any date, without duplication, (a) all indebtedness of such Person for
borrowed money, (b) all obligations of such Person for the deferred purchase price of Property or services (other than trade payables incurred in the ordinary course of such Person’s business), (c) all obligations of such Person evidenced by
notes, bonds, debentures or other similar instruments, (d) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to Property acquired by such Person (even though the rights and remedies of the
seller or lender under such agreement in the event of default are limited to repossession or sale of such Property), (e) all Capital Lease Obligations of such Person, (f) all obligations of such Person, contingent or otherwise, as an account party
or applicant under acceptance, letter of credit or similar facilities, (g) all obligations of such Person, contingent or otherwise, to purchase, redeem, retire or otherwise acquire for value any Capital Stock of such Person, (h) all Guarantee
Obligations of such Person 

  

 9 

 
in respect of obligations of the kind referred to in clauses (a) through (g) above; (i) all obligations of the kind referred to in clauses (a) through (h)
above secured by (or for which the holder of such obligation has an existing right, contingent or otherwise, to be secured by) any Lien on Property (including, without limitation, accounts and contract rights) owned by such Person, whether or not
such Person has assumed or become liable for the payment of such obligation and (j) for the purposes of Section 7(e) only, all obligations of such Person in respect of Hedge Agreements. The Indebtedness of any Person shall include the Indebtedness
of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the
extent the terms of such Indebtedness expressly provide that such Person is not liable therefor. 
  
 “Indemnified Liabilities”: as defined in Section 9.5. 
  
 “Indemnitee”: as defined in Section 9.5. 
  
 “Insolvency”: with respect to any Multiemployer Plan, the condition that such Plan is insolvent within the
meaning of Section 4245 of ERISA. 
  
 “Insolvent”: pertaining to a condition of Insolvency. 
  
 “Intellectual Property”: the collective reference to all rights, priorities and privileges relating to intellectual property, whether arising under United States, multinational or foreign laws or
otherwise, including copyrights, patents, trademarks, know-how and processes, and all rights to sue at law or in equity for any infringement or other impairment thereof, including the right to receive all proceeds and damages therefrom. 

 
 “Interest Coverage Ratio”: for any period, the ratio of
(a) Consolidated Free Cash Flow for such period to (b) Consolidated Interest Expense for such period. 
  
 “Interests”: the Capital Stock now owned or hereafter acquired by any Loan Party. 
  
 “Interest Payment Date”: (a) as to any Base Rate Loan, the
last day of each March, June, September and December (commencing June 30, 2005; it being understood that the first interest payment on such date shall include all interest accrued since the Closing Date) to occur while such Loan is outstanding and
the final maturity date of such Loan, (b) as to any Eurodollar Loan having an Interest Period of three months or shorter, the last day of such Interest Period, (c) as to any Eurodollar Loan having an Interest Period longer than three months, each
day that is three months, or a whole multiple thereof, after the first day of such Interest Period and the last day of such Interest Period and (d) as to any Loan, the date of any repayment or prepayment made in respect thereof. 
  
 “Interest Period”: as to any Eurodollar Loan, (a) initially,
the period commencing on the borrowing or conversion date, as the case may be, with respect to such Eurodollar Loan and ending one, two, three or six months thereafter, as selected by the Borrower in its notice of borrowing or notice of conversion,
as the case may be, given with respect thereto; and (b) thereafter, each period commencing on the last day of the next preceding Interest Period 

  

 10 

 
applicable to such Eurodollar Loan and ending one, two, three or six months thereafter, as selected by the Borrower by irrevocable notice to the
Administrative Agent not less than three Business Days prior to the last day of the then current Interest Period with respect thereto; provided that, all of the foregoing provisions relating to Interest Periods are subject to the following:

  
 (1) if any Interest Period would otherwise
end on a day that is not a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless the result of such extension would be to carry such Interest Period into another calendar month in which event such Interest
Period shall end on the immediately preceding Business Day; 
  
 (2) any Interest Period that would otherwise extend beyond the date final payment is due on the Loans shall end on such due date; 
  
 (3) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which
there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; and 
  
 (4) any Interest Period that begins prior to the first
Interest Payment Date for the Base Rate Loans shall end on such first Interest Payment Date. 
  
 “Investments”: as defined in Section 6.8. 
  
 “Legal Proceedings”: as defined in Section 3.6. 
  
 “Lehman Entity”: any of Lehman Commercial Paper Inc. or any of its Affiliates (including Syndicated Loan Funding Trust). 
  
 “Lender Addendum”: with respect to any initial Lender, a
Lender Addendum, substantially in the form of Exhibit H, to be executed and delivered by such Lender on the Closing Date as provided in Section 9.17. 
  
 “Lenders”: as defined in the preamble hereto. 
  
 “Lien”: any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge or other
security interest or any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including, without limitation, any conditional sale or other title retention agreement and any capital lease
having substantially the same economic effect as any of the foregoing). 
  
 “Loan”: as defined in Section 2.1. 
  
 “Loan Documents”: this Agreement, the Security Documents, the Notes and any and all other instruments and documents executed and delivered in connection with any of the foregoing. 
  

 11 

 “Loan Parties”: the Borrower and each Subsidiary Guarantor. 
  
 “Loan Percentage”: as to any Lender at any time, the
percentage which such Lender’s Commitment then constitutes of the aggregate Commitments (or, at any time after the Closing Date, the percentage which the aggregate principal amount of such Lender’s Loans then outstanding constitutes of the
aggregate principal amount of the Loans then outstanding). 
  
 “Material Adverse Effect”: a material adverse effect on (a) the business, assets, property, operations, financial condition or prospects of the Borrower and its Subsidiaries taken as a whole or (b) the validity or
enforceability of this Agreement or any of the other Loan Documents or the rights or remedies of the Agents or the Lenders hereunder or thereunder. 
  
 “Material Agreements”: collectively, the agreements and other instruments and documents from time to time filed by the Borrower or ILP or
any of their respective Subsidiaries with the SEC under exhibit item numbers 1, 2, 4, 9 and 10, excluding any such agreements the primary purpose of which is the compensation of employees, officers and/or directors. 
  
 “Materials of Environmental Concern”: any gasoline or
petroleum (including crude oil or any fraction thereof) or petroleum products, natural gas, natural gas liquids, liquefied petroleum gas, ammonia, polychlorinated biphenyls, urea-formaldehyde insulation, asbestos, pollutants, contaminants,
radioactivity, and any other substances or forces of any kind, whether or not any such substance or force is defined as hazardous or toxic under any Environmental Law, that is regulated pursuant to or could give rise to liability under any
Environmental Law. 
  
 “Maturity Date”: December
31, 2005. 
  
 “Minimum IPO”: the issuance or sale
of equity securities by the Borrower in an amount not less than $35,000,000 and pursuant to an initial offering in the public equity markets, the Net Cash Proceeds of which are used to prepay the Loans in accordance with Section 2.7. 
  
 “Multiemployer Plan”: a Plan that is a multiemployer plan as
defined in Section 4001(a)(3) of ERISA. 
  
 “Net Cash
Proceeds”: (a) in connection with any Collateral Asset Sale, the proceeds thereof in the form of cash and Cash Equivalents (including any such proceeds received by way of deferred payment of principal pursuant to a note or installment
receivable or purchase price adjustment receivable or otherwise, but only as and when received) of such Collateral Asset Sale, net of attorneys’ fees, accountants’ fees, investment banking fees, amounts required to be applied to the
repayment of Indebtedness secured by a Lien expressly permitted hereunder on any asset which is the subject of such Collateral Asset Sale (other than any Lien pursuant to a Security Document) and other customary fees and expenses actually incurred
in connection therewith and net of taxes paid or reasonably estimated to be payable as a result thereof (after taking into account any available tax credits or deductions and any tax sharing arrangements) and (b) in connection with any issuance or
sale of equity securities or debt securities or instruments or the incurrence of loans, the cash proceeds received from such issuance or incurrence, net of attorneys’ fees, investment banking fees, accountants’ fees, lenders’ fees,
underwriting discounts and commissions and other customary fees and expenses actually incurred in connection therewith. 
  

 12 

 “Non-Excluded Taxes”: as defined in Section 2.15(a). 
  
 “Non-U.S. Lender”: as defined in Section 2.15(e).

  
 “Note”: as defined in Section 2.4(e).

  
 “Obligations”: the unpaid principal of and
interest on (including, without limitation, interest accruing after the maturity of the Loans and interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to
the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) the Loans and all other obligations and liabilities of the Borrower to the Administrative Agent or to any Lender or any Qualified
Counterparty, whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, this Agreement, any other Loan Document, any Specified Hedge
Agreement or any other document made, delivered or given in connection herewith or therewith, whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses (including all reasonable fees, charges and
disbursements of counsel to the Administrative Agent or to any Lender that are required to be paid by the Borrower pursuant hereto) or otherwise; provided, that (i) obligations of the Borrower under any Specified Hedge Agreement shall be
secured and guaranteed pursuant to the Security Documents only to the extent that, and for so long as, the other Obligations are so secured and guaranteed and (ii) any release of Collateral or Guarantors effected in the manner permitted by this
Agreement or any Security Document shall not require the consent of holders of obligations under Specified Hedge Agreements. 
  
 “Other Taxes”: any and all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies
(other than Excluded Taxes) arising from any payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any other Loan Document. 
  
 “Participant”: as defined in Section 9.6(b). 
  
 “Payment Office”: the office specified from time to time by
the Administrative Agent as its payment office by notice to the Borrower and the Lenders. 
  
 “PBGC”: the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA (or any successor). 
  
 “Permitted Investors”: John J. Sherman or any of his Permitted Transferees. 
  
 “Permitted Liens”: the Liens referred to in clauses (a)
through (g) of Section 6.3. 
  
 “Permitted Shareholder
Debt”: Indebtedness of the Borrower to any one or more of its equity holders provided that (1) such Indebtedness is incurred by the Borrower solely for purposes of making distributions to its equity holders, (2) the aggregate principal
amount of such 

  

 13 

 
Indebtedness outstanding at any time does not exceed $15,000,000, (3) such Indebtedness is unsecured, (4) no Person has guaranteed the payment of performance
of, or agreed to purchase or otherwise acquire or offered any other credit assurances with respect to all or any part of such Indebtedness, (5) no points, fees or other finance charges are payable with respect to such Indebtedness, other than the
accrual of interest on the outstanding principal balance thereof from time to time at a rate not exceed 6% per annum and the payment of such interest no more frequently than quarterly, (6) no principal with respect to such Indebtedness is payable on
or before the Maturity Date (except that, to the extent permitted under the Permitted Shareholder Debt Subordination Agreements, quarterly payments of principal with respect to such Indebtedness may be made so long as the principal amount of each
such quarterly payment does not exceed $375,000), and (7) the holders’ payment and other rights with respect to such Indebtedness are subordinated to the Lenders rights with respect to the Obligations as provided in the Permitted Shareholder
Debt Subordination Agreements. 
  
 “Permitted Shareholder
Debt Subordination Agreements”: those certain Subordination Agreements entered into as of the Closing Date and thereafter by and among the holders of the Permitted Shareholder Debt and the Administrative Agent, as the same may be amended,
restated, supplemented or otherwise modified from time to time. 
  
 “Permitted Subordinated Debt Payments”: so long as no Default or Event of Default has occurred and is then continuing, the payment of (i) regularly-scheduled repayments of principal of the Permitted Shareholder Debt in an
aggregate amount not to exceed $375,000 during any fiscal quarter of the Borrower and (ii) interest on the Permitted Shareholder Debt. 
  
 “Permitted Transferee”: means with respect to any person, (i) any transfer to the spouse of such Person; (ii) any transfer to a lineal
descendant, natural or adopted, of such Person or to the spouse of any such lineal descendant; and (iii) any transfer to the trustee of a trust, to a partnership or to any other entity, for the substantial benefit of such Person and/or one or more
Persons described in clauses (i) or (ii) above and/or one or more entities exempt from tax under Section 501(c)(3) of the Code. 
  
 “Person”: an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated
association, joint venture, Governmental Authority or other entity of whatever nature. 
  
 “Plan”: at a particular time, any employee benefit plan that is covered by ERISA and in respect of which the Borrower or a Commonly Controlled Entity is (or, if such plan were terminated at such time,
would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA. 
  
 “Property”: any right or interest in or to property of any kind whatsoever, whether real, personal or mixed and whether tangible or
intangible, including Capital Stock. 
  
 “Proposed
IPO”: the proposed issuance or sale of equity securities in an amount approximately equal to $80,000,000 and pursuant to an initial offering in the public equity markets, contemplated as of the date hereof to occur within 90 days after the
Closing Date. 
  

 14 

 “Qualified Counterparty”: with respect to any Specified Hedge Agreement, any
counterparty thereto that, at the time such Specified Hedge Agreement was entered into, was a Lender or an affiliate of a Lender. 
  
 “Register”: as defined in Section 9.6(d). 
  
 “Regulation U”: Regulation U of the Board as in effect from time to time. 
  
 “Related Fund”: with respect to any Lender, any fund that (x) invests in commercial loans and (y) is
managed or advised by the same investment advisor as such Lender, by such Lender or an Affiliate of such Lender. 
  
 “Reorganization”: with respect to any Multiemployer Plan, the condition that such plan is in reorganization within the meaning of Section
4241 of ERISA. 
  
 “Reportable Event”: any of the
events set forth in Section 4043(c) of ERISA, other than those events as to which the thirty day notice period is waived under subsections .27, .28, .29, .30, .31, .32, .34 or .35 of PBGC Reg. § 4043. 
  
 “Required Lenders”: at any time, the holders of more than
50% of (a) until the Closing Date, the Commitments and (b) thereafter, the aggregate unpaid principal amount of the Loans then outstanding. 
  
 “Requirement of Law”: as to any Person, the certificate of incorporation, certificate of formation and by-laws, operating agreements or
other organizational or governing documents of such Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its
Property or to which such Person or any of its Property is subject. 
  
 “Responsible Officer”: the chief executive officer, president or chief financial officer of the Borrower, but in any event, with respect to financial matters, the chief financial officer of the Borrower. 
  
 “Restricted Payments”: as defined in Section 6.6.

  
 “Restricted Subsidiary”: each Subsidiary of
the Borrower other than ILP and its Subsidiaries. 
  
 “SEC”: the Securities and Exchange Commission (or successors thereto or an analogous Governmental Authority). 
  
 “Secured Parties”: as defined in the Guarantee and Collateral Agreement. 
  
 “Securities Act”: the Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder. 
  
 “Security Documents”: the
collective reference to the Guarantee and Collateral Agreement and all other security documents hereafter delivered to the Administrative Agent by 

  

 15 

 
any Person granting a Lien on any Property of such Person to secure the obligations and liabilities of any Loan Party under any Loan Document. 
  
 “Senior Leverage Ratio”: as at the last day of any period of
four consecutive fiscal quarters, the ratio of (a) Consolidated Senior Debt on such day to (b) Consolidated Free Cash Flow for such period. 
  
 “Single Employer Plan”: any Plan that is covered by Title IV of ERISA, but which is not a Multiemployer Plan. 
  
 “Solvent”: with respect to any Person, as of any date of
determination, (a) the amount of the “present fair saleable value” of the assets of such Person will, as of such date, exceed the amount of all “liabilities of such Person, contingent or otherwise”, as of such date, as such
quoted terms are determined in accordance with applicable federal and state laws governing determinations of the insolvency of debtors, (b) the present fair saleable value of the assets of such Person will, as of such date, be greater than the
amount that will be required to pay the liability of such Person on its debts as such debts become absolute and matured, (c) such Person will not have, as of such date, an unreasonably small amount of capital with which to conduct its business, and
(d) such Person will be able to pay its debts as they mature. For purposes of this definition, (i) “debt” means liability on a “claim”, and (ii) “claim” means any (x) right to payment, whether or not such a right is
reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured or (y) right to an equitable remedy for breach of performance if such breach gives rise to a right to
payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured or unmatured, disputed, undisputed, secured or unsecured. 
  
 “Special Distribution”: as defined in the recitals hereto. 
  
 “Specified Hedge Agreement”: any Hedge Agreement entered
into by the Borrower and any Qualified Counterparty. 
  
 “Subordinated Debt”: (i) the Permitted Shareholder Debt outstanding on the Closing Date and (ii) any other unsecured Indebtedness approved by the Required Lenders and subordinated to the Obligations on terms and conditions
reasonably satisfactory to the Administrative Agent. 
  
 “Subordinated Debt Documents”: any document, agreement or instrument evidencing any Subordinated Debt or entered into in connection with any Subordinated Debt, all in form and substance satisfactory to the Administrative
Agent. 
  
 “Subsidiary”: as to any Person, a
corporation, partnership, limited liability company or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the
happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through
one or more intermediaries, or both, by such Person. Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower. For the
avoidance of doubt, ILP and each of its Subsidiaries shall be deemed to be a Subsidiary. 
  

 16 

 “Subsidiary Guarantor”: each Restricted Subsidiary. 
  
 “Syndication Agent”: as defined in the preamble hereto.

  
 “Tax Distributions”: distributions made by
the Borrower with respect to the tax liability of the holders of the Capital Stock of the Borrower pursuant to Section 6.6(a). 
  
 “Total Leverage Ratio”: as at the last day of any period of four consecutive fiscal quarters, the ratio of (a) Consolidated Total Debt on
such day to (b) Consolidated Free Cash Flow for such period. 
  
 “Transferee”: as defined in Section 9.14. 
  
 “Type”: as to any Loan, its nature as a Base Rate Loan or a Eurodollar Loan. 
  
 1.2 Other Definitional Provisions. (a) Unless otherwise specified therein, all terms defined in this Agreement shall have the defined
meanings when used in the other Loan Documents or any certificate or other document made or delivered pursuant hereto or thereto. 
  
 (b) As used herein and in the other Loan Documents, and any certificate or other document made or delivered pursuant hereto or thereto, (i) accounting
terms relating to the Borrower and its Subsidiaries not defined in Section 1.1 and accounting terms partly defined in Section 1.1, to the extent not defined, shall have the respective meanings given to them under GAAP, (ii) the words
“include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”, (iii) the words “asset” and “property” shall be construed to have the same meaning
and effect and to refer to any and all tangible and intangible assets and properties, including cash, Capital Stock, securities, revenues, accounts, leasehold interests and contract rights, and (iv) references to agreements or other Contractual
Obligations shall, unless otherwise specified, be deemed to refer to such agreements or Contractual Obligations as amended, supplemented, restated or otherwise modified from time to time. 
  
 (c) The words “hereof”, “herein” and “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section, Schedule and Exhibit references are to this Agreement unless otherwise specified. 
  
 (d) The meanings given to terms defined herein shall be equally applicable to
both the singular and plural forms of such terms. 
  
 (e) All
calculations of financial ratios set forth in Section 6.1 shall be calculated to the same number of decimal places as the relevant ratios are expressed in and shall be rounded upward if the number in the decimal place immediately following the last
calculated decimal place is five or greater. For example, if the relevant ratio is to be calculated to the hundredth decimal place and the calculation of the ratio is 5.126, the ratio will be rounded up to 5.13. 
  

 17 

 Section 2. AMOUNT AND TERMS OF COMMITMENTS 
  
 2.1 Commitments. Subject to the terms and conditions hereof, the Lenders severally agree to make loans (each,
a “Loan”) to the Borrower on the Closing Date in a principal amount for each Lender not to exceed the amount of the Commitment of such Lender. The Loans may from time to time be Eurodollar Loans or Base Rate Loans, as determined by
the Borrower and notified to the Administrative Agent in accordance with Sections 2.2 and 2.8. 
  
 2.2 Procedure for Borrowing. The Borrower shall deliver to the Administrative Agent a Borrowing Notice (which Borrowing Notice must be received by the Administrative Agent prior to 10:00 A.M., New York
City time, one Business Day prior to the anticipated Closing Date) requesting that the Lenders make the Loans on the Closing Date. The Loans made on the Closing Date shall initially be Base Rate Loans and may thereafter at the option of the
Borrower, but subject to the terms and conditions herein, be incurred and maintained as, and/or converted into, Base Rate Loans or Eurodollar Loans. Upon receipt of such Borrowing Notice the Administrative Agent shall promptly notify each Lender
thereof. Not later than 12:00 Noon, New York City time, on the Closing Date, each Lender shall make available to the Administrative Agent at the Funding Office an amount in immediately available funds equal to the Loan or Loans to be made by such
Lender. The Administrative Agent shall make available to the Borrower the aggregate of the amounts made available to the Administrative Agent by the Lenders, in like funds as received by the Administrative Agent. 
  
 2.3 Repayment of Loans. The Loan of each Lender shall mature on
the Maturity Date (or such earlier date on which the Loans become due and payable pursuant to Section 7). 
  
 2.4 Evidence of Debt. (a) The Borrower hereby unconditionally promises to pay to the Administrative Agent for the account of the appropriate
Lender the principal amount of each Loan of such Lender on the Maturity Date (or on such earlier date on which the Loans become due and payable pursuant to Section 7). The Borrower hereby further agrees to pay interest on the unpaid principal amount
of the Loans from time to time outstanding from the date hereof until payment in full thereof at the rates per annum, and on the dates, referred to in Section 2.10. 
  
 (b) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing indebtedness of the
Borrower to such Lender resulting from each Loan of such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time under this Agreement. 
  
 (c) The Administrative Agent, on behalf of the Borrower, shall maintain the
Register pursuant to Section 9.6(d), and a subaccount therein for each Lender, in which shall be recorded (i) the amount of each Loan made hereunder and any Note evidencing such Loan, the Type of such Loan and each Interest Period applicable
thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) both the amount of any sum received by the Administrative Agent hereunder from the Borrower and
each Lender’s share thereof. 
  

 18 

 (d) The entries made in the Register and the accounts of each Lender maintained pursuant to Section
2.4(c) shall, to the extent permitted by applicable law, be prima facie evidence of the existence and amounts of the obligations of the Borrower therein recorded; provided, however, that the failure of any Lender or the
Administrative Agent to maintain the Register or any such account, or any error therein, shall not in any manner affect the obligation of the Borrower to repay (with applicable interest) the Loans made to the Borrower by such Lender in accordance
with the terms of this Agreement. 
  
 (e) The Borrower agrees
that, upon the request to the Administrative Agent by any Lender, the Borrower will promptly execute and deliver to such Lender a promissory note of the Borrower evidencing any Loans of such Lender, substantially in the form of Exhibit F (a
“Note”), with appropriate insertions as to date and principal amount; provided, that delivery of Notes shall not be a condition precedent to the occurrence of the Closing Date or the making of the Loans on the Closing Date.

  
 2.5 Fees, etc. (a) The Borrower agrees to pay to
the Arranger the fees of the Arranger in the amounts and on the dates as set forth in any fee agreements between the Borrower and the Arranger. 
  
 (b) The Borrower agrees to pay to the Administrative Agent the fees of the Administrative Agent in the amounts and on the dates as set forth in any fee
agreement between the Borrower and the Administrative Agent and to perform any other obligations contained therein. 
  
 2.6 Optional Prepayments. The Borrower may, at any time and from time to time, prepay the Loans, in whole or in part, without premium or
penalty (except as otherwise provided herein), upon irrevocable notice delivered to the Administrative Agent at least three Business Days prior thereto in the case of Eurodollar Loans and at least one Business Day prior thereto in the case of Base
Rate Loans, which notice shall specify the date and amount of such prepayment and whether such prepayment is of Eurodollar Loans or Base Rate Loans; provided, that if a Eurodollar Loan is prepaid on any day other than the last day of the
Interest Period applicable thereto, the Borrower shall also pay any amounts owing pursuant to Section 2.16. Upon receipt of any such notice the Administrative Agent shall promptly notify each Lender thereof. If any such notice is given, the amount
specified in such notice shall be due and payable on the date specified therein, together with accrued interest to such date on the amount prepaid. Partial prepayments of Loans under this Section 2.6 shall be in an aggregate principal amount of
$5,000,000 or a whole multiple of $1,000,000 in excess thereof. 
  
 2.7 Mandatory Prepayments. Unless the Required Lenders and the Borrower shall otherwise agree, if on any date any Loan Party shall receive any Net Cash Proceeds, subject to the provisions of Section 2.13(c), on the third
Business Day after receipt by such Loan Party of such Net Cash Proceeds, the Loans shall be prepaid by an amount equal to 100% of such Net Cash Proceeds. 
  
 2.8 Conversion and Continuation Options. (a) The Borrower may elect from time to time to convert Eurodollar Loans to Base Rate Loans by
giving the Administrative Agent at least two Business Days’ prior irrevocable notice of such election, provided that any such 

  

 19 

 
conversion of Eurodollar Loans may be made only on the last day of an Interest Period with respect thereto. The Borrower may elect from time to time to
convert Base Rate Loans to Eurodollar Loans by giving the Administrative Agent at least three Business Days’ prior irrevocable notice of such election (which notice shall specify the length of the initial Interest Period therefor),
provided that no Base Rate Loan may be converted into a Eurodollar Loan (i) when any Event of Default has occurred and is continuing and the Administrative Agent has, or the Required Lenders have, determined in its or their sole discretion
not to permit such conversions or (ii) after the date that is one month prior to the final scheduled maturity date of the Loans. Upon receipt of any such notice the Administrative Agent shall promptly notify each Lender thereof. 
  
 (b) The Borrower may elect to continue any Eurodollar Loan as such upon the
expiration of the then current Interest Period with respect thereto by giving irrevocable notice to the Administrative Agent, in accordance with the applicable provisions of the term “Interest Period” set forth in Section 1.1, of the
length of the next Interest Period to be applicable to such Loans, provided that no Eurodollar Loan may be continued as such (i) when any Event of Default has occurred and is continuing and the Administrative Agent has, or the Required
Lenders have, determined in its or their sole discretion not to permit such continuations or (ii) after the date that is one month prior to the final scheduled maturity date of the Loans, and provided, further, that if the Borrower
shall fail to give any required notice as described above in this paragraph or if such continuation is not permitted pursuant to the preceding proviso, such Loans shall be converted automatically to Base Rate Loans on the last day of such then
expiring Interest Period. Upon receipt of any such notice the Administrative Agent shall promptly notify each Lender thereof. 
  
 2.9 Minimum Amounts and Maximum Number of Eurodollar Tranches. Notwithstanding anything to the contrary in this Agreement, all borrowings,
conversions, continuations and optional prepayments of Eurodollar Loans and all selections of Interest Periods shall be in such amounts and be made pursuant to such elections so that, (a) after giving effect thereto, the aggregate principal amount
of the Eurodollar Loans comprising each Eurodollar Tranche shall be equal to $5,000,000 or a whole multiple of $1,000,000 in excess thereof and (b) no more than five Eurodollar Tranches shall be outstanding at any one time. 
  
 2.10 Interest Rates and Payment Dates. (a) Each Eurodollar Loan
shall bear interest for each day during each Interest Period with respect thereto at a rate per annum equal to the Eurodollar Rate determined for such day plus the Applicable Margin. 
  
 (b) Each Base Rate Loan shall bear interest for each day on which it is outstanding at a rate per annum equal to the Base
Rate in effect for such day plus the Applicable Margin. 
  
 (c)
(i) If all or a portion of the principal amount of any Loan shall not be paid when due (whether at the stated maturity, by acceleration or otherwise), all outstanding Loans shall bear interest at a rate per annum that is equal to the rate that would
otherwise be applicable thereto pursuant to the foregoing provisions of this Section plus 2% and (ii) if all or a portion of any interest payable on any Loan or other amount payable hereunder shall not be paid when due (whether at the stated
maturity, by acceleration or otherwise), such overdue amount shall bear 

  

 20 

 
interest at a rate per annum equal to the rate then applicable to Base Rate Loans plus 2%, in each case, with respect to clauses (i) and (ii) above,
from the date of such non-payment until such amount is paid in full (after as well as before judgment). 
  
 (d) Interest shall be payable in arrears on each Interest Payment Date, provided that interest accruing pursuant to paragraph (c) of this Section
shall be payable from time to time on demand. 
  
 2.11
Computation of Interest and Fees. (a) Interest, fees and commissions payable pursuant hereto shall be calculated on the basis of a 360-day year for the actual days elapsed, except that, with respect to Base Rate Loans on which interest is
calculated on the basis of the Prime Rate, the interest thereon shall be calculated on the basis of a 365- (or 366-, as the case may be) day year for the actual days elapsed. The Administrative Agent shall as soon as practicable notify the Borrower
and the Lenders of each determination of a Eurodollar Rate. Any change in the interest rate on a Loan resulting from a change in the Base Rate or the Eurocurrency Reserve Requirements shall become effective as of the opening of business on the day
on which such change becomes effective. The Administrative Agent shall as soon as practicable notify the Borrower and the Lenders of the effective date and the amount of each such change in interest rate. 
  
 (b) Each determination of an interest rate by the Administrative Agent
pursuant to any provision of this Agreement shall be conclusive and binding on the Borrower and the Lenders in the absence of manifest error. The Administrative Agent shall, at the request of the Borrower, deliver to the Borrower a statement showing
the quotations used by the Administrative Agent in determining any interest rate pursuant to Section 2.10(a) or 2.10(b). 
  
 2.12 Inability to Determine Interest Rate. If prior to the first day of any Interest Period: 
  
 (a) the Administrative Agent shall have determined (which determination shall
be conclusive and binding upon the Borrower) that, by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining the Eurodollar Rate for such Interest Period, or 
  
 (b) the Administrative Agent shall have received notice from the Required
Lenders that the Eurodollar Rate determined or to be determined for such Interest Period will not adequately and fairly reflect the cost to such Lenders (as conclusively certified by such Lenders) of making or maintaining their affected Loans during
such Interest Period, 
  
 the Administrative Agent shall give telecopy or
telephonic notice thereof to the Borrower and the Lenders as soon as practicable thereafter. If such notice is given (x) any Eurodollar Loans requested to be made on the first day of such Interest Period shall be made as Base Rate Loans, (y) any
Loans that were to have been converted on the first day of such Interest Period to Eurodollar Loans shall be continued as Base Rate Loans and (z) any outstanding Eurodollar Loans shall be converted, on the last day of the then current Interest
Period with respect thereto, to Base Rate Loans. Until such notice has been withdrawn by the Administrative Agent, no 

  

 21 

 
further Eurodollar Loans shall be made or continued as such, nor shall the Borrower have the right to convert Loans to Eurodollar Loans. 
  
 2.13 Pro Rata Treatment and Payments. (a) The borrowing by the
Borrower from the Lenders hereunder shall be made pro rata according to the respective Loan Percentages of the Lenders. 
  
 (b) Each payment (including each prepayment) of the Loans shall be allocated among the Lenders pro rata based on the principal amount of the Loans
held by the Lenders, and each prepayment of the Loans shall be applied to the installments of the Loans pro rata based on the remaining outstanding principal amount of such installments. Amounts prepaid on account of the Loans may not be reborrowed.

  
 (c) The application of any payment of Loans (including
optional and mandatory prepayments) shall be made, first, to Base Rate Loans and, second, to Eurodollar Loans. 
  
 (d) All payments (including prepayments) to be made by the Borrower hereunder, whether on account of principal, interest, fees or otherwise, shall be made
without setoff or counterclaim and shall be made prior to 1:00 p.m., New York City time, on the due date thereof to the Administrative Agent, for the account of the Lenders, at the Payment Office, in Dollars and in immediately available funds. Any
payment made by the Borrower after 1:00 p.m., New York City time, on any Business Day shall be deemed to have been on the next following Business Day. The Administrative Agent shall distribute such payments to the Lenders promptly upon receipt in
like funds as received. If any payment hereunder (other than payments on the Eurodollar Loans) becomes due and payable on a day other than a Business Day, such payment shall be extended to the next succeeding Business Day. If any payment on a
Eurodollar Loan becomes due and payable on a day other than a Business Day, the maturity thereof shall be extended to the next succeeding Business Day unless the result of such extension would be to extend such payment into another calendar month,
in which event such payment shall be made on the immediately preceding Business Day. In the case of any extension of any payment of principal pursuant to the preceding two sentences, interest thereon shall be payable at the then applicable rate
during such extension. 
  
 (e) Unless the Administrative Agent
shall have been notified in writing by any Lender prior to the Closing Date that such Lender will not make the amount that would constitute its share of the Loans available to the Administrative Agent, the Administrative Agent may assume that such
Lender is making such amount available to the Administrative Agent, and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower a corresponding amount. If such amount is not made available to the Administrative
Agent by the required time on the Closing Date, such Lender shall pay to the Administrative Agent, on demand, such amount with interest thereon, at the greater of (i) the Federal Funds Effective Rate and (ii) a rate determined by the Administrative
Agent in accordance with banking industry rules on interbank compensation, for the period until such Lender makes such amount immediately available to the Administrative Agent. A certificate of the Administrative Agent submitted to any Lender with
respect to any amounts owing under this paragraph shall be conclusive in the absence of manifest error. 
  

 22 

 (f) Unless the Administrative Agent shall have been notified in writing by the Borrower prior to the date
of any payment due to be made by the Borrower hereunder that the Borrower will not make such payment to the Administrative Agent, the Administrative Agent may assume that the Borrower is making such payment, and the Administrative Agent may, but
shall not be required to, in reliance upon such assumption, make available to the Lenders their respective pro rata shares of a corresponding amount. If such payment is not made to the Administrative Agent by the Borrower within three
Business Days after such due date, the Administrative Agent shall be entitled to recover, on demand, from each Lender to which any amount which was made available pursuant to the preceding sentence, such amount with interest thereon at the rate per
annum equal to the daily average Federal Funds Effective Rate. Nothing herein shall be deemed to limit the rights of the Administrative Agent or any Lender against the Borrower. 
  
 2.14 Requirements of Law. (a) If the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof or compliance by any Lender with any request or directive (whether or not having the force of law) from any central bank or other Governmental Authority made subsequent to the date hereof: 
  
 (i) shall impose, modify or hold applicable any reserve,
special deposit, compulsory loan or similar requirement against assets held by, deposits or other liabilities in or for the account of, advances, loans or other extensions of credit by, or any other acquisition of funds by, any office of such Lender
that is not otherwise included in the determination of the Eurodollar Rate hereunder; or 
  
 (ii) shall impose on such Lender any other condition; 
  
 and the result of any of the foregoing is to increase the cost to such Lender, by an amount which such Lender deems to be material, of
making, converting into, continuing or maintaining Eurodollar Loans, or to reduce any amount receivable hereunder in respect thereof, then, in any such case, the Borrower shall promptly pay such Lender, upon its demand, any additional amounts
necessary to compensate such Lender for such increased cost or reduced amount receivable. If any Lender becomes entitled to claim any additional amounts pursuant to this Section, it shall promptly notify the Borrower (with a copy to the
Administrative Agent) of the event by reason of which it has become so entitled. 
  
 (b) If any Lender shall have determined that the adoption of or any change in any Requirement of Law regarding capital adequacy or in the interpretation or application thereof or compliance by such Lender or any
corporation controlling such Lender with any request or directive regarding capital adequacy (whether or not having the force of law) from any Governmental Authority made subsequent to the date hereof shall have the effect of reducing the rate of
return on such Lender’s or such corporation’s capital as a consequence of its obligations hereunder to a level below that which such Lender or such corporation could have achieved but for such adoption, change or compliance (taking into
consideration such Lender’s or such corporation’s policies with respect to capital adequacy) by an amount deemed by such Lender to be material, then from time to time, after submission by such Lender to the Borrower (with a copy to the
Administrative Agent) of a written request therefor, the Borrower shall pay to such Lender such additional amount or amounts as will compensate such Lender or such corporation for such reduction. 
  

 23 

 (c) A certificate as to any additional amounts payable pursuant to this Section submitted by any Lender
to the Borrower (with a copy to the Administrative Agent) shall be conclusive in the absence of manifest error. The obligations of the Borrower pursuant to this Section shall survive the termination of this Agreement and the payment of the Loans and
all other amounts payable hereunder. 
  
 2.15 Taxes.
(a) All payments made by the Borrower under this Agreement shall be made free and clear of, and without deduction or withholding for or on account of, any present or future income, stamp or other taxes, levies, imposts, duties, charges, fees,
deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority, excluding net income taxes and franchise taxes (imposed in lieu of net income taxes) imposed on any Agent or any Lender as a
result of a present or former connection between such Agent or such Lender and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing authority thereof or therein (other than any such connection
arising solely from such Agent’s or such Lender’s having executed, delivered or performed its obligations or received a payment under, or enforced, this Agreement or any other Loan Document)(“Excluded Taxes”). If any such
non-excluded taxes, levies, imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded Taxes”) or any Other Taxes are required to be withheld from any amounts payable to any Agent or any Lender hereunder, the amounts
so payable to such Agent or such Lender shall be increased to the extent necessary to yield to such Agent or such Lender (after payment of all Non-Excluded Taxes and Other Taxes) interest or any such other amounts payable hereunder at the rates or
in the amounts specified in this Agreement; provided, however, that the Borrower shall not be required to increase any such amounts payable to any Lender with respect to any Non-Excluded Taxes (i) that are attributable to such
Lender’s failure to comply with the requirements of paragraph (e) of this Section or (ii) that are United States withholding taxes imposed on amounts payable to such Lender at the time such Lender becomes a party to this Agreement, except to
the extent that such Lender’s assignor (if any) was entitled, at the time of assignment, to receive additional amounts from the Borrower with respect to such Non-Excluded Taxes pursuant to this paragraph (a). 
  
 (b) In addition, the Borrower shall pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law. 
  
 (c)
Whenever any Non-Excluded Taxes or Other Taxes are payable by the Borrower, as promptly as possible thereafter the Borrower shall send to the Administrative Agent for the account of the relevant Agent or Lender, as the case may be, a certified copy
of an original official receipt received by the Borrower showing payment thereof. If the Borrower fails to pay any Non-Excluded Taxes or Other Taxes when due to the appropriate taxing authority or fails to remit to the Administrative Agent the
required receipts or other required documentary evidence, the Borrower shall indemnify the Agents and the Lenders for any incremental taxes, interest or penalties that may become payable by any Agent or any Lender as a result of any such failure.

  

 24 

 (d) If any Agent or any Lender reasonably determines that it has received a refund of any Non-Excluded
Taxes or Other Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this Section 2.15, it shall pay over such refund to the Borrower (but only to the extent of
indemnity payments made, or additional amounts paid, by the Borrower under this Section 2.15 with respect to the Non-Excluded Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of such Agent or such Lender;
provided, that the Borrower, upon the request of such Agent or such Lender, agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Agent or
such Lender in the event such Agent or such Lender is required to repay such refund to such Governmental Authority. This paragraph shall not be construed to require any Agent or any Lender to make available its tax returns (or any other information
relating to its taxes which it deems confidential) to the Borrower or any other Person. 
  
 (e) Each Lender (or Transferee) that is not a “U.S. Person” as defined in Section 7701(a)(30) of the Code (a “Non-U.S. Lender”) shall deliver to the Borrower and the Administrative Agent
(or, in the case of a Participant, to the Lender from which the related participation shall have been purchased) two copies of either U.S. Internal Revenue Service Form W-8BEN or Form W-8ECI, or, in the case of a Non-U.S. Lender claiming exemption
from U.S. federal withholding tax under Section 871(h) or 881(c) of the Code with respect to payments of “portfolio interest” a statement substantially in the form of Exhibit G and a Form W-8BEN, or any subsequent versions thereof or
successors thereto properly completed and duly executed by such Non-U.S. Lender claiming complete exemption from, or a reduced rate of, U.S. federal withholding tax on all payments by the Borrower under this Agreement and the other Loan Documents.
Such forms shall be delivered by each Non-U.S. Lender on or before the date it becomes a party to this Agreement (or, in the case of any Participant, on or before the date such Participant purchases the related participation). In addition, each
Non-U.S. Lender shall deliver such forms promptly upon the obsolescence or invalidity of any form previously delivered by such Non-U.S. Lender. Each Non-U.S. Lender shall promptly notify the Borrower at any time it determines that it is no longer in
a position to provide any previously delivered certificate to the Borrower (or any other form of certification adopted by the U.S. taxing authorities for such purpose). Notwithstanding any other provision of this paragraph, a Non-U.S. Lender shall
not be required to deliver any form pursuant to this paragraph that such Non-U.S. Lender is not legally able to deliver. 
  
 (f) The agreements in this Section shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.

  
 2.16 Indemnity. The Borrower agrees to indemnify
each Lender for, and to hold each Lender harmless from, any loss or expense that such Lender may sustain or incur as a consequence of (a) default by the Borrower in making a borrowing of, conversion into or continuation of Eurodollar Loans after the
Borrower has given a notice requesting the same in accordance with the provisions of this Agreement, (b) default by the Borrower in making any prepayment of Eurodollar Loans after the Borrower has given a notice thereof in accordance with the
provisions of this Agreement or (c) the making of a prepayment or conversion of Eurodollar Loans on a day that is not the last day of an Interest Period with respect thereto. Such indemnification may include an amount equal to the excess, if any, of
(i) the amount of interest 

  

 25 

 
that would have accrued on the amount so prepaid, or not so borrowed, converted or continued, for the period from the date of such prepayment or of such
failure to borrow, convert or continue to the last day of such Interest Period (or, in the case of a failure to borrow, convert or continue, the Interest Period that would have commenced on the date of such failure) in each case at the applicable
rate of interest for such Loans provided for herein (excluding, however, the Applicable Margin included therein, if any) over (ii) the amount of interest (as reasonably determined by such Lender) that would have accrued to such Lender on such
amount by placing such amount on deposit for a comparable period with leading banks in the interbank Eurodollar market. A certificate as to any amounts payable pursuant to this Section submitted to the Borrower by any Lender shall be conclusive in
the absence of manifest error. This covenant shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder. 
  
 2.17 Illegality. Notwithstanding any other provision herein, if the adoption of or any change in any
Requirement of Law or in the interpretation or application thereof shall make it unlawful for any Lender to make or maintain Eurodollar Loans as contemplated by this Agreement, (a) the commitment of such Lender hereunder to make Eurodollar Loans,
continue Eurodollar Loans as such and convert Base Rate Loans to Eurodollar Loans shall forthwith be suspended until such time as it is no longer unlawful to make or maintain Eurodollar Loans and (b) such Lender’s Loans then outstanding as
Eurodollar Loans, if any, shall be converted automatically to Base Rate Loans on the respective last days of the then current Interest Periods with respect to such Loans or within such earlier period as required by law. If any such conversion of a
Eurodollar Loan occurs on a day which is not the last day of the then current Interest Period with respect thereto, the Borrower shall pay to such Lender such amounts, if any, as may be required pursuant to Section 2.16. 
  
 2.18 Change of Lending Office. Each Lender agrees that, upon
the occurrence of any event giving rise to the operation of Section 2.14, 2.15(a) or 2.17 with respect to such Lender, it will, if requested by the Borrower, use reasonable efforts (subject to overall policy considerations of such Lender) to
designate another lending office for any Loans affected by such event with the object of avoiding the consequences of such event; provided, that such designation is made on terms that, in the sole judgment of such Lender, cause such Lender
and its lending office(s) to suffer no economic, legal or regulatory disadvantage, and provided, further, that nothing in this Section shall affect or postpone any of the obligations of any Borrower or the rights of any Lender pursuant
to Section 2.14, 2.15(a) or 2.17. 
  
 2.19 Replacement
of Lenders under Certain Circumstances. The Borrower shall be permitted to replace any Lender that (a) requests reimbursement for amounts owing pursuant to Section 2.14 or 2.15(a) or gives a notice of illegality pursuant to Section 2.17 or (b)
defaults in its obligation to make Loans hereunder, with a replacement financial institution; provided that (i) such replacement does not conflict with any Requirement of Law, (ii) no Event of Default shall have occurred and be continuing at
the time of such replacement, (iii) prior to any such replacement, such Lender shall have taken no action under Section 2.18 so as to eliminate the continued need for payment of amounts owing pursuant to Section 2.14 or 2.15(a) or to eliminate the
illegality referred to in such notice of illegality given pursuant to Section 2.17, (iv) the replacement financial institution shall purchase, at par, all Loans and other amounts owing to such replaced Lender on or prior to the date of replacement,
(v) the Borrower shall be 

  

 26 

 
liable to such replaced Lender under Section 2.16 (as though Section 2.16 were applicable) if any Eurodollar Loan owing to such replaced Lender shall be
purchased other than on the last day of the Interest Period relating thereto, (vi) the replacement financial institution, if not already a Lender, shall be reasonably satisfactory to the Administrative Agent, (vii) the replaced Lender shall be
obligated to make such replacement in accordance with the provisions of Section 9.6 (provided that the Borrower shall be obligated to pay the registration and processing fee referred to therein), (viii) the Borrower shall pay all additional amounts
(if any) required pursuant to Section 2.14 or 2.15(a), as the case may be, in respect of any period prior to the date on which such replacement shall be consummated, and (ix) any such replacement shall not be deemed to be a waiver of any rights that
the Borrower, the Administrative Agent or any other Lender shall have against the replaced Lender. 
  
 Section 3. REPRESENTATIONS AND WARRANTIES 
  
 To induce the Agents and the Lenders to enter into this Agreement and to make the Loans, the Borrower hereby represents and warrants to each Agent and each Lender that: 
  
 3.1 Financial Condition. (a) The unaudited pro
forma consolidated balance sheet of the Borrower and its consolidated Subsidiaries as at December 31, 2004 (including the notes thereto) (the “Pro Forma Balance Sheet”), copies of which have heretofore been furnished to each
Lender, has been prepared giving effect (as if such events had occurred on such date) to (i) the Loans to be made on the Closing Date and the use of proceeds thereof and (ii) the payment of fees and expenses in connection with the foregoing. The Pro
Forma Balance Sheet has been prepared based on the best information available to the Borrower as of the date of delivery thereof, and presents fairly on a pro forma basis the estimated financial position of the Borrower and its
consolidated Subsidiaries as at December 31, 2004, assuming that the events specified in the preceding sentence had actually occurred at such date. 
  
 (b) The audited consolidated balance sheet of the Borrower and its consolidated Subsidiaries as at September 30, 2004, and the related consolidated
statements of income and of cash flows for the fiscal year ended on such date, reported on by and accompanied by an unqualified report from Ernst & Young, LLP, copies of which have heretofore been furnished to each Lender, present fairly in all
material respects the consolidated financial condition of the Borrower and its consolidated Subsidiaries as at such date, and the consolidated results of its operations and its consolidated cash flows for the fiscal year then ended. The unaudited
consolidated balance sheet of the Borrower and its consolidated Subsidiaries as at December 31, 2004, and the related unaudited consolidated statements of income and cash flows for the three-month period ended on such date, copies of which have
heretofore been furnished to each Lender, present fairly in all material respects the consolidated financial condition of the Borrower and its consolidated Subsidiaries as at such date, and the consolidated results of its operations and its
consolidated cash flows for the three-month period then ended (subject to normal year-end audit adjustments). All such financial statements, including the related schedules and notes thereto, have been prepared in accordance with GAAP applied
consistently throughout the periods involved (except as approved by the aforementioned firm of accountants and disclosed therein). The Borrower and its Subsidiaries do not have any material Guarantee Obligations, contingent liabilities and
liabilities for taxes, or any long-term leases or unusual forward or long-term commitments, including, without limitation, any interest rate or foreign 

  

 27 

 
currency swap or exchange transaction or other obligation in respect of derivatives, that are not reflected in the most recent financial statements referred
to in this paragraph. During the period from September 30, 2004 to and including the date hereof, there has been no Disposition by the Borrower of any material part of its business or Property (including the Collateral). 
  
 3.2 No Change. Since September 30, 2004, there has been no
development or event that has had or could reasonably be expected to have a Material Adverse Effect. 
  
 3.3 Corporate Existence; Compliance with Law. Each of the Borrower and its Subsidiaries (a) is duly formed, validly existing and in good
standing under the laws of the jurisdiction of its organization or formation (as applicable), (b) has all requisite power and authority, and the legal right, and all governmental licenses, authorizations, permits, consents and approvals, to own and
operate its Property, to lease the Property it operates as lessee and to conduct its business as now conducted, except where the failure to have such licenses, authorizations, permits, consents and approvals would not have a Material Adverse Effect,
(c) is duly qualified to do business as a foreign organization and is in good standing under the laws of each jurisdiction where the character of the Property owned, leased or operated by it or the nature of the business conducted by it makes such
qualification necessary and (d) is in compliance with all Requirements of Law, all Material Agreements and its organizational or other governing documents except, in the case of clauses (c) and (d) above, to the extent that the failure to comply
therewith would not, in the aggregate, reasonably be expected to have a Material Adverse Effect. 
  
 3.4 Corporate Power; Authorization; Enforceable Obligations. Each Loan Party has the power and authority, and the legal right, to enter into
the Loan Documents, to carry out its obligations hereunder and thereunder and to borrow hereunder. Each Loan Party has taken all necessary partnership, limited liability company or other appropriate action to authorize the execution, delivery and
performance of the Loan Documents and, in the case of the Borrower, to authorize the borrowings on the terms and conditions of this Agreement. No material consent, approval or authorization of, filing, registration or qualification with, notice to
or other act by or in respect of, any Governmental Authority or any other Person is required in connection with the repayment and termination of the Existing Credit Agreement, the borrowings hereunder or the execution, delivery, performance,
validity or enforceability of this Agreement or any of the other Loan Documents, except the filings referred to in the Guarantee and Collateral Agreement and UCC termination statements in connection with the Existing Credit Agreement. Each Loan
Document has been duly executed and delivered on behalf of each Loan Party that is a party thereto. Each Loan Document constitutes the legal, valid and binding obligation of the Loan Party party thereto, enforceable against such Loan Party in
accordance with its terms, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general
equitable principles (whether enforcement is sought by proceedings in equity or at law). 
  
 3.5 No Legal Bar. The execution, delivery and performance of this Agreement and the other Loan Documents, the borrowings hereunder and the use of the proceeds thereof does not and will not (i) violate or
conflict with any organizational or other governing document of the Borrower or any of its Subsidiaries, (ii) violate, result in a breach of, constitute 

  

 28 

 
(with due notice or lapse of time or both) a default or cause any obligation, penalty or premium to arise or accrue under, any Material Agreement of the
Borrower or any of its Subsidiaries or violate or conflict with, in any material respect, any Requirement of Law which, in the case of any Subsidiaries, could, in the aggregate, reasonably be expected to have a Material Adverse Effect, (iii) result
in, or require the creation or imposition of any Lien upon, any Collateral or any Property of the Borrower or any of its Subsidiaries pursuant to any such Requirement of Law, any such Material Agreement, any such organizational or other governing
document (other than the Liens created by the Security Documents), or (iv) result in the cancellation, modification, revocation or suspension of any License which could, in the aggregate, reasonably be expected to have a Material Adverse Effect.

  
 3.6 No Material Litigation. There are no
judicial, administrative or arbitral actions, suits or proceedings (public or private)(“Legal Proceedings”) of or before any arbitrator or Governmental Authority pending or, to the knowledge of the Borrower, threatened by or against
or involving the Borrower or any of its Subsidiaries or against any of their respective Property (a) with respect to the Loan Documents or any of the transactions contemplated hereby or thereby or (b) that, individually or in the aggregate, are
reasonably likely to have a Material Adverse Effect. There is no order, judgment, injunction or decree of any Governmental Authority outstanding against the Borrower or any of its Subsidiaries that, individually or in the aggregate, would have any
effect referred to in the foregoing clauses (a) or (b). 
  
 3.7 No Default. Neither the Borrower nor any of its Subsidiaries is in default under or with respect to any of its Contractual Obligations in any respect that could reasonably be expected to have a Material Adverse Effect. No
Default or Event of Default has occurred and is continuing. 
  
 3.8 Ownership of Property; Liens. Each of the Borrower and its Subsidiaries owns valid and defensible title to, or holds a valid leasehold interest in, or a right-of-way or easement through, all real property used or necessary
for the conduct of the business of the Borrower and its Subsidiaries as it is presently conducted, except to the extent that the failure to own valid and defensible title to, or to hold a valid leasehold interest in, or right of way or easement
through, all such real property could not reasonably be expected to have a Material Adverse Effect. Each of the Borrower and its Subsidiaries has good and valid title to, or a valid leasehold interest in, all of its other Property, except, in the
case of Property not constituting Collateral, to the extent that the failure to have good and valid title to, or a valid leasehold interest in, such Property could not reasonably be expected to have a Material Adverse Effect, and all of its Property
is owned or leased free and clear of all Liens, except Permitted Liens. 
  
 3.9 Intellectual Property. Except as would not be likely to have a Material Adverse Effect, the Borrower and its Subsidiaries own all rights, titles and interests in and to, or have a valid and enforceable license or other
right of use to use lawfully, all Intellectual Property used by each of the Borrower and its Subsidiaries in connection with its business, free and clear of all Liens, except Permitted Liens. Neither the Borrower nor any of its Subsidiaries is
infringing or otherwise violating the Intellectual Property of any Person, except where the liability for any such infringement could not reasonably be expected to have a Material Adverse Effect. To the knowledge of the Borrower, no person has
infringed or otherwise violated the Intellectual Property of the Borrower or any of its Subsidiaries. The consummation of the 

  

 29 

 
transactions contemplated by the Loan Documents will not alter, impair or extinguish any Intellectual Property of the Borrower or any of its Subsidiaries.
There are no material agreements, judicial orders or settlement agreements which limit or restrict the Borrower’s or any of its Subsidiaries’ rights to use any Intellectual Property in the business of the Borrower, and no material claim
has been asserted and is pending by any Person challenging or questioning the use of any Intellectual Property or the validity or effectiveness of any Intellectual Property. 
  
 3.10 Taxes. Each of the Borrower and its Subsidiaries has filed or caused to be filed all material Federal,
state and other tax returns that are required to be filed, and has paid all taxes shown to be due and payable on said returns or on any assessments made against it or any of its Property and all other taxes, fees or other charges imposed on it or
any of its Property by any Governmental Authority (other than any the amount or validity of which are currently being contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have been provided on
the books of the Borrower or its Subsidiaries, as the case may be); and no tax Lien has been filed (other than as permitted by Section 6.3(a)), and, to the knowledge of the Borrower, no claim is being asserted, with respect to any such tax, fee or
other charge. 
  
 3.11 Federal Regulations. No part
of the proceeds of the Loans will be used for the purpose of “purchasing” or “carrying’ any “margin stock”, within the respective meanings of each of the quoted terms under Regulation U as now and from time to time
hereafter in effect or for any purpose that violates the provisions of the Regulations of the Board. If requested by any Lender or the Administrative Agent, the Borrower will, and will cause each Subsidiary to, furnish to the Administrative Agent
and each Lender a statement to the foregoing effect in conformity with the requirements of FR Form G-3 or FR Form U-1 referred to in Regulation U. 
  
 3.12 Labor Matters. There are no strikes or other labor disputes against the Borrower or any of its Subsidiaries pending or, to the
knowledge of the Borrower, threatened that (individually or in the aggregate) could reasonably be expected to have a Material Adverse Effect. Hours worked by and payment made to employees of the Borrower and its Subsidiaries have not been in
violation of the Fair Labor Standards Act or any other applicable Requirement of Law dealing with such matters that (individually or in the aggregate) could reasonably be expected to have a Material Adverse Effect. All payments due from the Borrower
or any of its Subsidiaries on account of employee health and welfare insurance that (individually or in the aggregate) could reasonably be expected to have a Material Adverse Effect if not paid have been paid or accrued as a liability on the books
of the Borrower or the relevant Subsidiary. 
  
 3.13
ERISA. Neither a Reportable Event nor an “accumulated funding deficiency” (within the meaning of Section 412 of the Code or Section 302 of ERISA) has occurred during the five-year period prior to the date on which this
representation is made or deemed made with respect to any Plan, and each Plan has complied in all respects with the applicable provisions of ERISA and the Code. No termination of a Single Employer Plan has occurred, and no Lien on the assets of
Borrower or its Subsidiaries in favor of the PBGC or a Plan has arisen, during such five-year period. The present value of all accrued benefits under each Single Employer Plan (based on those assumptions used to fund such Plans) did not, as of the
last annual valuation date prior to the date on which this representation is made or deemed made, exceed the value of the assets of such Plan allocable to such accrued benefits by a material 

  

 30 

 
amount. Neither the Borrower nor any Commonly Controlled Entity has had a complete or partial withdrawal from any Multiemployer Plan that has resulted or
could reasonably be expected to result in a material liability under ERISA. To the knowledge of the Borrower, no such Multiemployer Plan is in Reorganization or Insolvent. 
  
 3.14 Investment Company Act; Other Regulations. No Loan Party is an “investment company”, or a
company “controlled” by an “investment company”, within the meaning of the Investment Company Act of 1940, as amended. No Loan Party is subject to regulation under any Requirement of Law (other than Regulation X of the Board)
which limits its ability to incur Indebtedness. 
  
 3.15
Subsidiaries. (a) The Subsidiaries listed on Schedule 3.15 constitute all the Subsidiaries of the Borrower at the date hereof. Schedule 3.15 sets forth as of the Closing Date the name and jurisdiction of organization of each Subsidiary and,
as to each Subsidiary, the percentage of each class of Capital Stock of such Subsidiary owned by the Borrower or by any Subsidiary of the Borrower. 
  
 (b) There are no outstanding subscriptions, options, warrants, calls, rights or other agreements or commitments (other than stock options granted to
employees or directors and directors’ qualifying shares) of any nature relating to any Capital Stock of the Borrower or any Subsidiary, except as disclosed on Schedule 3.15. 
  
 3.16 Use of Proceeds. The proceeds of the Loans shall be used to (a) repay all amounts outstanding under the
Existing Credit Agreement in connection with the termination thereof, (b) pay the Special Distribution, (c) repurchase certain outstanding membership interests in the Borrower for an amount not to exceed $3,000,000 and (d) pay related fees and
expenses incurred in connection herewith and therewith. 
  
 3.17 Environmental Matters. Other than exceptions to any of the following that could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect (after taking into account any insurance or
indemnification available to pay any liability, loss, cost or expense arising with respect to such exception): 
  
 (a) (i) The Borrower and its Subsidiaries, their respective operations, activities and Property are, and within the period of all applicable statutes of
limitation have been, in compliance with all applicable Environmental Laws; (ii) the Borrower and its Subsidiaries have obtained, currently maintain and are, and within the period of all applicable statutes of limitation have been, in compliance
with all Environmental Permits for any of their operations, activities or for any Property owned, leased or otherwise operated by any of them; and (iii) each of the Borrower and its Subsidiaries reasonably believes that each of their Environmental
Permits will be timely renewed. No appeal nor any other Legal Proceeding is pending to revoke any such Environmental Permit, nor, to the knowledge of the Borrower, threatened. 
  
 (b) There are no Materials of Environmental Concern present in, at, on, under, beneath or in any Property now (or, solely
with respect to such period of time during which the Borrower or any of its Subsidiaries owned, leased or operated such Property, formerly) owned, 

  

 31 

 
leased or operated by the Borrower or any of its Subsidiaries, or at any other location to which Materials of Environmental Concern have been sent for re-use
or recycling or for treatment, storage, or disposal in amounts or concentrations that could reasonably be expected to (i) result in liability to the Borrower or any of its Subsidiaries under any applicable Environmental Law or costs to the Borrower
or any of its Subsidiaries, or (ii) interfere with the Borrower’s or any of its Subsidiaries’ continued operations, or (iii) impair the fair saleable value of any real property owned or leased by the Borrower or any of its Subsidiaries.

  
 (c) There are no writs, injunctions, decrees, orders or
judgments outstanding or any Legal Proceedings pending (including any notice of violation or alleged violation) or, to the knowledge of the Borrower, threatened, against the Borrower or any of its Subsidiaries or the activities, operations or
Property of the Borrower or any of its Subsidiaries relating to (i) their compliance with any Environmental Law, or (ii) the release, disposal, discharge, spill, treatment, storage or recycling of Materials of Environmental Concern. 
  
 (d) Neither the Borrower nor any of its Subsidiaries has received any written
request for information, or has received notification that it has any liability under any Environmental Law or is a potentially responsible party under or relating to the federal Comprehensive Environmental Response, Compensation, and Liability Act
or any similar Environmental Law or with respect to any Materials of Environmental Concern. 
  
 (e) Neither the Borrower nor any of its Subsidiaries has entered into or agreed to any consent decree, order, or settlement or other agreement, or is subject to any judgment, decree, or order or other agreement, in
any judicial, administrative, arbitral, or other forum for dispute resolution, relating to compliance with or liability under any Environmental Law. 
  
 (f) Neither the Borrower nor any of its Subsidiaries has assumed or retained, by contract or operation of law, any liabilities of any kind, fixed or
contingent, known or unknown, under any Environmental Law or with respect to any Material of Environmental Concern. 
  
 3.18 Accuracy of Information, etc. No statement or information contained in this Agreement, any other Loan Document, or any other document,
certificate or statement furnished to the Administrative Agent or the Lenders or any of them, by or on behalf of any Loan Party for use in connection with the transactions contemplated by this Agreement or the other Loan Documents, contained as of
the date such statement, information, document or certificate was so furnished, any untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements contained herein or therein not materially
misleading in light of the circumstances under which such statements were made; provided that the projections and pro forma financial information contained in the materials referenced above are based upon good faith estimates and
assumptions believed by management of the Borrower to be reasonable at the time made, it being recognized by the Lenders that such financial information as it relates to future events is not to be viewed as fact and that actual results during the
period or periods covered by such financial information may differ from the projected results set forth therein by a material amount. 
  

 32 

 3.19 Guarantee and Collateral Agreement. The Guarantee and Collateral Agreement is
effective to create in favor of the Administrative Agent, for the benefit of the Secured Parties, a legal, valid and enforceable security interest in the Collateral described therein and proceeds thereof. In the case of the Pledged Stock described
in the Guarantee and Collateral Agreement, when any stock certificates representing such Pledged Stock are delivered to the Administrative Agent, and in the case of the other Collateral described in the Guarantee and Collateral Agreement, when a
financing statement in appropriate form is filed in the office of the Secretary of State of the State of Delaware (which financing statement has been duly completed and delivered to the Administrative Agent), the Guarantee and Collateral Agreement
shall constitute a fully perfected Lien on, and security interest in, all right, title and interest of the Collateral Parties in such Collateral and the proceeds thereof, as security for the Obligations (as defined in the Guarantee and Collateral
Agreement), in each case prior and superior in right to any other Person. 
  
 3.20 Solvency. Each Loan Party is, and after giving effect to the repayment and termination of the Existing Credit Agreement and the incurrence of all Indebtedness and obligations being incurred in
connection herewith will be, Solvent. 
  
 3.21 Existing
Indebtedness. The Borrower and its Subsidiaries do not have any material outstanding Indebtedness, except (i) as set forth in the financial statements referred to in Section 3.1 hereof or (ii) as set forth in Schedule 3.21. 
  
 3.22 Financial Tests. 
  
 (a) The ratio of (a) Consolidated Senior Debt on the Closing Date after the
Loans are made to the Borrower to (b) Consolidated Free Cash Flow for the four consecutive fiscal quarters of the Borrower ended March 31, 2005, does not exceed 7.25 to 1.00; 
  
 (b) The ratio of (a) Consolidated Total Debt on the Closing Date after the Loans are made to the Borrower to (b)
Consolidated Free Cash Flow for the four consecutive fiscal quarters of the Borrower ended March 31, 2005, does not exceed 8.75 to 1.00; and 
  
 (c) The ILP Total Leverage Ratio on the Closing Date (calculated based upon (i) ILP Total Funded Debt on the Closing Date after the Loans are made to the
Borrower and (ii) ILP Consolidated EBITDA for the four fiscal quarters of ILP ended March 31, 2005) does not exceed 5.5 to 1.00. 
  
 Section 4. CONDITIONS PRECEDENT 
  
 4.1 Conditions to Loans. The agreement of each Lender to make its Loan on the Closing Date is subject to the satisfaction, prior to or
concurrently with the making of such Loan on the Closing Date, of the following conditions precedent: 
  
 (a) Loan Documents. The Administrative Agent shall have received (i) this Agreement, executed and delivered by a duly authorized officer of the
Borrower, (ii) the Guarantee and Collateral Agreement, executed and delivered by a duly authorized officer of each Loan Party signatory thereto and (iii) such other instruments and documents as are required under the list of closing documents set
forth on Exhibit J. 
  

 33 

 (b) Termination of Existing Credit Agreement. All Indebtedness outstanding under the Existing
Credit Agreement shall have been repaid or concurrently repaid with the proceeds of the Loans on the Closing Date, together with all interest thereon and other amounts owing in respect thereof, all commitments thereunder shall have been cancelled
and such agreement shall have been terminated. 
  
 (c)
Approvals. All material governmental and third party approvals, if any, necessary in connection with the financing contemplated hereby shall have been duly obtained and shall be in full force and effect. 
  
 (d) Fees. The Lenders, the Arranger and the Administrative Agent shall
have received all fees required to be paid, and all expenses for which invoices have been presented (including reasonable fees, disbursements and other charges of counsel to the Agents), on or before the Closing Date. All such amounts will be paid
with proceeds of the Loans and will be reflected in the funding instructions given by the Borrower to the Administrative Agent on or before the Closing Date. 
  
 (e) Lien Searches. The Administrative Agent shall have received the results of a recent lien search in each relevant jurisdiction with respect to
the Collateral Parties and the Collateral, and such search shall reveal no liens on any of the assets of the Collateral Parties or on the Interests, except for liens permitted by the Loan Documents or liens to be discharged on or prior to the
Closing Date pursuant to Uniform Commercial Code termination statements in form and substance reasonably satisfactory to the Agents and Lenders, which Uniform Commercial Code termination statements shall be delivered to the Administrative Agent on
or prior to the Closing Date, together with all necessary authorizations to file such termination statements. 
  
 (f) Closing Certificate. The Administrative Agent shall have received (i) a certificate of each Loan Party, dated the Closing Date, substantially
in the form of Exhibit C, with appropriate insertions and attachments, including such Loan Party’s articles of incorporation, certificate of formation, certificate of partnership or other comparable document, certified by the Secretary of State
of its state of organization, and (ii) a long form good standing certificate of such Loan Party from such state. 
  
 (g) Legal Opinion. The Administrative Agent shall have received the executed legal opinion of Stinson Morrison Hecker LLP, counsel to the Loan
Parties, substantially in the form of Exhibit E, covering such matters relating to the Loan Parties, the Loan Documents and this Agreement as the Administrative Agent shall reasonably request. 
  
 (h) Filings, Registrations and Recordings. Each document (including
any Uniform Commercial Code financing statement) required by the Security Documents or under law or reasonably requested by the Administrative Agent to be filed, registered or recorded in order to create in favor of the Administrative Agent, for the
benefit of the Secured Parties, a perfected Lien on the Collateral described therein, prior and superior in right to any other Person, shall have been filed, registered or recorded or shall have been delivered to the Administrative Agent and be in
proper form for filing, registration or recordation. 
  

 34 

 (i) Pledged Stock; Stock Powers; Acknowledgment and Consent. The Administrative Agent shall have
received (i) the certificates representing the shares of Capital Stock pledged pursuant to the Guarantee and Collateral Agreement, together with an undated stock power for each such certificate executed in blank by a duly authorized officer of the
pledgor thereof and (ii) an Acknowledgment and Consent, substantially in the form of Annex I to the Guarantee and Collateral Agreement, duly executed by any non-corporate issuer of Capital Stock pledged pursuant to the Guarantee and Collateral
Agreement that is not itself a party to the Guarantee and Collateral Agreement. 
  
 (j) Representations and Warranties. Each of the representations and warranties made by any Loan Party in or pursuant to the Loan Documents shall be true and correct on and as of the Closing Date. 
  
 (k) No Default. No Default or Event of Default shall have occurred and
be continuing on such date or after giving effect to the Loans to be made on the Closing Date. 
  
 (l) Proposed IPO. The Arranger shall be satisfied in all material respects with the prospects, terms, conditions and timetable of the Proposed IPO. 
  
 Section 5. AFFIRMATIVE COVENANTS 
  
 The Borrower hereby agrees that, so long as any Loan or other amount is owing to any Lender or any Agent hereunder, the Borrower shall, and shall cause
each Restricted Subsidiary to: 
  
 5.1 Financial
Statements. Furnish to the Administrative Agent: 
  
 (a) as
soon as available, but in any event within 90 days after the end of each fiscal year of the Borrower, a copy of the audited consolidated (and unaudited consolidating) balance sheet of the Borrower and its consolidated Subsidiaries as at the end of
such year and the related audited consolidated (and unaudited consolidating) statements of income and of cash flows for such year, setting forth in each case in comparative form the figures as of the end of and for the previous year, reported on
without a “going concern” or like qualification or exception, or qualification arising out of the scope of the audit, by Ernst & Young LLP or other independent certified public accountants of nationally recognized standing; and

  
 (b) as soon as available, but in any event not later than 45
days after the end of each of the first three quarterly periods of each fiscal year of the Borrower, the unaudited consolidated and consolidating balance sheet of the Borrower and its consolidated Subsidiaries as at the end of such quarter and the
related unaudited consolidated and consolidating statements of income and of cash flows for such quarter and the portion of the fiscal year through the end of such quarter, setting forth in each case in comparative form the figures as of the end of
and for the corresponding period in the previous year, certified by a Responsible Officer as being fairly stated in all material respects (subject to normal year-end audit adjustments); 
  
 all such financial statements to be complete and correct in all material respects and to be prepared in reasonable detail and in accordance
with GAAP applied consistently throughout the 

  

 35 

 
periods reflected therein and with prior periods (except as approved by such accountants or officer, as the case may be, and disclosed therein). 

 
 5.2 Certificates; Other Information. Furnish to the
Administrative Agent: 
  
 (a) concurrently with the delivery of
the financial statements referred to in Section 5.1(a), a certificate of the independent certified public accountants reporting on such financial statements stating that in making the examination necessary therefor no knowledge was obtained of any
Default or Event of Default, except as specified in such certificate (it being understood that such certificate shall be limited to the items that independent certified public accountants are permitted to cover in such certificates pursuant to their
professional standards and customs of the profession); 
  
 (b)
concurrently with the delivery of any financial statements pursuant to Section 5.1, (i) a certificate of a Responsible Officer stating that, to such Responsible Officer’s knowledge, each Loan Party during such period has observed or performed
all of its covenants and other agreements, and satisfied every condition, contained in this Agreement and the other Loan Documents to be observed, performed or satisfied by it, and that such Responsible Officer has obtained no knowledge of any
Default or Event of Default except as specified in such certificate and (ii) in the case of quarterly or annual financial statements delivered pursuant to Section 5.1(a) and Section 5.1(b), a Compliance Certificate containing all information and
calculations necessary for determining compliance by the Borrower and its Subsidiaries with the provisions of this Agreement referred to therein as of the last day of the fiscal quarter or fiscal year of the Borrower, as the case may be; 

 
 (c) as soon as available, and in any event no later than 45 days after the
end of each fiscal year of the Borrower, (i) a detailed consolidated budget for the following fiscal year (including a projected consolidated balance sheet of the Borrower and its Subsidiaries as of the end of the following fiscal year, and the
related consolidated statements of projected cash flow, projected changes in financial position and projected income) and (ii) a detailed “stand-alone” budget for the following fiscal year (including a projected “stand-alone”
balance sheet of the Borrower as of the end of the following fiscal year, and the related “stand-alone” statements of projected cash flow, projected changes in financial position and projected income), and, as soon as available,
significant adverse revisions, if any, of each such budget with respect to such fiscal year (collectively, the “Borrower Projections”), which Borrower Projections shall in each case be accompanied by a certificate of a Responsible
Officer stating that such Borrower Projections are based on reasonable estimates, information and assumptions and were calculated in a manner that such Responsible Officer believed to be accurate; 
  
 (d) no later than 5 Business Days prior to the effectiveness thereof, copies
of substantially final drafts of any proposed amendment, supplement, waiver or other modification with respect to any Material Agreement of the Borrower and its Subsidiaries that could reasonably be expected to be materially adverse to the Lenders;

  
 (e) within five days after the same are sent, copies of all
financial statements and reports that the Borrower sends to the holders of any class of its debt securities or public equity securities; 
  

 36 

 (f) promptly, such additional financial and other information regarding the operations, business affairs
and financial condition or prospects of the Borrower as the Administrative Agent may from time to time reasonably request. 
  
 5.3 Payment of Obligations. Pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as the case may be,
all its material obligations of whatever nature, except where the amount or validity thereof is currently being contested in good faith by appropriate proceedings and reserves required by GAAP with respect thereto have been provided on the books of
the Borrower. 
  
 5.4 Conduct of Business and
Maintenance of Existence, etc. (a) Except for the conversion of the Borrower to a limited partnership in connection with a Minimum IPO, (i) preserve, renew and keep in full force and effect its organizational existence and (ii) take all
reasonable action to maintain all rights, privileges and franchises necessary or desirable in the normal conduct of its business, except, in the case of clause (ii) above, to the extent that failure to do so could not reasonably be expected to have
a Material Adverse Effect; and (b) comply with all of its Contractual Obligations, Requirements of Law, and its organizational and other governing documents, except to the extent that failure to comply therewith could not, in the aggregate,
reasonably be expected to have a Material Adverse Effect. 
  
 5.5 Maintenance of Property; Insurance. (a) Keep all Property and systems useful and necessary in its business in good working order and condition, ordinary wear and tear excepted and (b) maintain with financially sound and
reputable insurance companies insurance on all its Property in at least such amounts and against at least such risks (but including in any event public liability, product liability and business interruption) as are usually insured against in the
same general area by companies engaged in the same or a similar business. 
  
 5.6 Inspection of Property; Books and Records; Discussions. (a) Keep proper books of records and account, in conformity with GAAP and all Requirements of Law, of all dealings and transactions in relation
to its business and activities and (b) permit representatives of any Lender to visit and inspect any of its properties and examine and make abstracts from any of its books and records upon reasonable notice and at any reasonable time and as often as
may reasonably be desired and to discuss the business, operations, properties and financial and other condition of the Borrower and its Subsidiaries with officers and employees of the Borrower and with its independent certified public accountants.

  
 5.7 Notices. Promptly give notice to the
Administrative Agent of: 
  
 (a) the occurrence of any Default or
Event of Default; 
  
 (b) any (i) default or event of default
under any Contractual Obligation of the Borrower or any of its Subsidiaries or (ii) litigation, investigation or proceeding which may exist at any time between the Borrower or any of its Subsidiaries and any Governmental Authority, that in either
case, if not cured or if adversely determined, as the case may be, could reasonably be expected to have a Material Adverse Effect; 
  
 (c) any litigation or proceeding affecting the Borrower or any of its Subsidiaries which relates to any Loan Document; 
  

 37 

 (d) the following events, as soon as possible and in any event within 30 days after the Borrower knows
thereof: (i) the occurrence of any Reportable Event with respect to any Single Employer Plan, a failure to make any required contribution to a Single Employer Plan, the creation of any Lien in favor of the PBGC or a Plan or any withdrawal from, or
the termination, Reorganization or Insolvency of, any Multiemployer Plan or (ii) the institution of proceedings or the taking of any other action by the PBGC or the Borrower or any Commonly Controlled Entity or any Multiemployer Plan with respect to
the withdrawal from, or the termination, Reorganization or Insolvency of, any Plan; and 
  
 (e) any event or condition that has had or is reasonably expected to have a Material Adverse Effect. 
  
 Each notice pursuant to this Section shall be accompanied by a statement of a Responsible Officer setting forth details of the occurrence referred to therein and stating
what action the Borrower or the relevant Subsidiary proposes to take with respect thereto. 
  
 5.8 Environmental Laws. (a) Comply in all material respects with all applicable Environmental Laws, and obtain and comply in all material respects with and maintain, and make reasonable efforts to ensure
that all tenants and subtenants obtain and comply in all material respects with and maintain, any and all licenses, approvals, notifications, registrations or permits required by applicable Environmental Laws, except where the failure to obtain or
maintain such licenses, approvals, notifications, registrations or permits could not reasonably be expected to have a Material Adverse Effect. 
  
 (b) Conduct and complete all investigations, studies, sampling and testing, and all remedial, removal and other actions required under Environmental Laws
and promptly comply in all material respects with all lawful orders and directives having the force of law of all Governmental Authorities regarding Environmental Laws, except for such failures that could not reasonably be expected to have a
Material Adverse Effect. 
  
 5.9 Additional Collateral,
etc. 
  
 (a) (i) With respect to any Collateral acquired after
the Closing Date by any Collateral Party as to which the Administrative Agent, for the benefit of the Secured Parties, does not have a perfected Lien, promptly execute and deliver to the Administrative Agent such amendments to the Guarantee and
Collateral Agreement or such other documents as the Administrative Agent deems necessary or advisable to grant to the Administrative Agent, for the benefit of the Secured Parties, a security interest in such Property, (ii) with respect to any new
Restricted Subsidiary created or acquired after the Closing Date by the Borrower or any Restricted Subsidiary, promptly (A) execute and deliver to the Administrative Agent such amendments to the Guarantee and Collateral Agreement as the
Administrative Agent deems necessary or advisable to grant to the Administrative Agent, for the benefit of the Secured Parties, a perfected first priority security interest in the Capital Stock of such new Subsidiary, (B) deliver to the
Administrative Agent the certificates, if any, representing such Capital Stock, together with undated stock powers, in blank, executed and delivered by a duly authorized officer of the Borrower or such Restricted Subsidiary, as the case may be, (C)
cause such new Subsidiary (1) to become a party to the Guarantee and Collateral Agreement and (2) to take such  

  

 38 

 
actions necessary or advisable to grant to the Administrative Agent for the benefit of the Secured Parties a perfected first priority security interest in
the Collateral described in the Guarantee and Collateral Agreement with respect to such new Subsidiary, including, without limitation, the filing of Uniform Commercial Code financing statements in such jurisdictions as may be required by the
Guarantee and Collateral Agreement or by law or as may be requested by the Administrative Agent, (iii) if requested by the Administrative Agent, deliver to the Administrative Agent legal opinions relating to the matters described above, which
opinions shall be in form and substance, and from counsel, reasonably satisfactory to the Administrative Agent and (iv) take all actions necessary or advisable to grant to the Administrative Agent, for the benefit of the Secured Parties, a perfected
first priority security interest in such Property, including without limitation, the filing of Uniform Commercial Code financing statements in such jurisdictions as may be required by the Guarantee and Collateral Agreement or by law or as may be
requested by the Administrative Agent. 
  
 (b) If any Loans
remain outstanding on the date which is 60 days after the Closing Date (or such earlier date as is reasonably requested by Lehman Brothers but no earlier than the date which is 30 days after the Closing Date), the Borrower shall on such
60th day (or such earlier date) transfer the Incentive Distribution Rights in ILP owned by the Borrower to Inergy
Partners, LLC. 
  
 5.10 Further Assurances.
From time to time execute and deliver (in the case of the Borrower), or cause to be executed and delivered (in the case of each Loan Party), such additional instruments, certificates or documents, and take such actions, as the Administrative Agent
may reasonably request for the purposes of implementing or effectuating the provisions of this Agreement and the other Loan Documents, or of more fully perfecting or renewing the rights of the Administrative Agent and the Lenders with respect to the
Collateral (or with respect to any additions thereto or replacements or proceeds thereof or with respect to any other property or assets hereafter acquired by any Collateral Party which may be deemed to be part of the Collateral) pursuant hereto or
thereto. Upon the exercise by the Administrative Agent or any Lender of any power, right, privilege or remedy pursuant to this Agreement or the other Loan Documents which requires any consent, approval, recording, qualification or authorization of
any Governmental Authority, the Borrower will execute and deliver, or will cause the execution and delivery of, all applications, certifications, instruments and other documents and papers that the Administrative Agent or such Lender may be required
to obtain from the Borrower or any of its Subsidiaries for such governmental consent, approval, recording, qualification or authorization. 
  
 Section 6. NEGATIVE COVENANTS 
  
 The Borrower hereby agrees that, so long as any Loan or other amount is owing to any Lender or any Agent hereunder, the Borrower shall not, and shall
cause each Restricted Subsidiary to not, and, in the case of Section 6.17, the Borrower shall not (directly or indirectly): 
  
 6.1 Financial Condition Covenants. 
  
 (a) Senior Leverage Ratio. Permit the Senior Leverage Ratio as at the last day of any period of four consecutive fiscal quarters of the Borrower
(commencing with the four 

  

 39 

 
fiscal quarter period ending June 30, 2005) to exceed (i) 6.25 to 1.0 as of the fiscal quarter ending June 30, 2005 and (ii) 5.0 to 1.0 as of the end of each
fiscal quarter thereafter. 
  
 (b) Total Leverage Ratio.
Permit the Total Leverage Ratio as at the last day of any period of four consecutive fiscal quarters of the Borrower to exceed (i) 7.50 to 1.0 as of the fiscal quarter ending June 30, 2005 and (ii) 6.25 to 1.0 as of the end of each fiscal quarter
thereafter. 
  
 (c) Interest Coverage Ratio. Permit the
Interest Coverage Ratio as at the last day of any period of four consecutive fiscal quarters of the Borrower (commencing with the four fiscal quarter period ending June 30, 2005) to be less than 4.0 to 1.0. 
  
 (d) ILP Total Leverage Ratio. Permit the ILP Total Leverage Ratio as
at the last day of any period of four consecutive fiscal quarters of ILP (commencing with the four fiscal quarter period ending June 30, 2005) to be greater than the Maximum Ratio. As used in this Section 6.1(d), “Maximum Ratio”
means 5.5 to 1.0; provided that upon consummation of the Minimum IPO, the Maximum Ratio shall mean 6.0 to 1.0. 
  
 6.2 Limitation on Indebtedness. Create, incur, assume or suffer to exist any Indebtedness, except: 
  
 (a) Indebtedness of any Loan Party pursuant to any Loan Document; and

  
 (b) Subordinated Debt. 
  
 (c) Indebtedness of any Collateral Party to any other Collateral Party; and

  
 (d) Put rights granted by Borrower to R. Brooks Sherman, Jr.,
Andrew Atterbury and Phillip L. Elbert, as such rights are in effect on the Closing Date and without giving effect to any amendments or modifications thereto after the Closing Date, so long as the aggregate principal amount of the Indebtedness under
all such put rights does not at any time exceed $7,700,000. 
  
 6.3 Limitation on Liens. Create, incur, assume or suffer to exist any Lien upon any of its Property, whether now owned or hereafter acquired, except for: 
  
 (a) Liens for taxes, assessments or governmental charges not yet due and payable or which are being contested in good faith
by appropriate proceedings, provided that adequate reserves with respect thereto are maintained on the books of the Borrower or the relevant subsidiary in conformity with GAAP; 
  
 (b) carriers’, warehousemen’s, mechanics’, workers’, materialmen’s, repairmen’s or other like
Liens arising in the ordinary course of business which secure the payment of obligations that are not overdue for a period of more than 30 days or that are being contested in good faith by appropriate proceedings; 
  

 40 

 (c) pledges or deposits in connection with workers’ compensation, unemployment insurance, old age
pensions and other social security or retirement benefits legislation; 
  
 (d) deposits to secure the performance of bids, tenders, contracts (other than for borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary
course of business; 
  
 (e) easements, rights-of-way, restrictions
and other similar encumbrances incurred in the ordinary course of business that, in the aggregate, are not substantial in amount and which do not in any case materially detract from the value of the Property subject thereto or materially interfere
with the ordinary conduct of the business of the Borrower; 
  
 (f)
Liens created pursuant to the Security Documents or the ILP Credit Agreement; 
  
 (g) any interest or title of a lessor under any lease entered into by the Borrower in the ordinary course of its business and covering only the assets so leased; 
  
 (h) bankers’ Liens, rights of setoff and other similar Liens existing
solely with respect to cash and cash equivalents on deposit in one or more accounts maintained by the Borrower or such Subsidiary, in each case granted in the ordinary course of business in favor of the bank or banks with which such accounts are
maintained, securing amounts owing to such bank with respect to cash management and operating account arrangements, including those involving pooled accounts and netting arrangements; and 
  
 (i) Liens arising out of judgments, attachments or awards not resulting in a Default and in respect of which the Borrower or
such Subsidiary shall in good faith be prosecuting an appeal or proceedings for review in respect of which there shall be secured a subsisting stay of execution pending such appeal or proceedings. 
  
 6.4 Limitation on Fundamental Changes. Enter into any merger,
consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), or Dispose of all or substantially all of its Property or business, other than as permitted under Section 6.5. 
  
 6.5 Limitation on Disposition of Property. Dispose of any of
its Property (including, without limitation, receivables and leasehold interests), whether now owned or hereafter acquired, or sell any of the Interests to any Person, except: 
  
 (a) the Disposition of obsolete or worn out property in the ordinary course of business; 
  
 (b) any Subsidiary of the Borrower may be merged or consolidated with or into
any Collateral Party (provided that such Collateral Party shall be the continuing or surviving entity); 
  

 41 

 (c) any Subsidiary of the Borrower may Dispose of any or all of its assets (upon voluntary liquidation or
otherwise) to any Collateral Party; and 
  
 (d) the transfer of
the Incentive Distribution Rights to Inergy Partners, LLC as provided for in Section 5.9(b). 
  
 6.6 Limitation on Restricted Payments. Declare or pay any dividend on, or make any payment on account of, or set apart assets for a sinking or other analogous fund for, the purchase, redemption,
defeasance, retirement or other acquisition of, any Capital Stock of the Borrower, whether now or hereafter outstanding, or make any other distribution in respect thereof, either directly or indirectly, whether in cash or property or in obligations
of the Borrower (collectively, “Restricted Payments”), except that 
  
 (a) so long as no Default or Event of Default shall have occurred and be continuing or would result therefrom, (i) with respect to any period in which the Borrower qualifies as a partnership for U.S. federal and state
income tax purposes, the Borrower may make ratable quarterly cash tax distributions to the holders of the Capital Stock of the Borrower in an amount not to exceed the U.S. federal and state taxable income of the Borrower allocated to such holders
for such period, multiplied by the highest combined federal, state and local individual income tax rate (assuming that the Borrower is an individual resident in Kansas City, Missouri) in effect for such period and (2) to the extent such
distributions are made after consummation of the Minimum IPO, the Borrower may make cash distributions, free of any Lien, to its unitholders in an aggregate amount not to exceed Available Cash; 
  
 (b) so long as no Default or Event of Default shall have occurred and be
continuing or would result therefrom, prior to (i) the consummation of the Minimum IPO and (ii) May 20, 2005, the Borrower may make a one-time distribution to the holders of Capital Stock of the Borrower in an aggregate amount not to exceed
$5,000,000; 
  
 (c) any Subsidiary may make Restricted Payments to
any Collateral Party; 
  
 (d) the Borrower may pay the Special
Distribution in an aggregate amount not to exceed $45,000,000 with the portion of the proceeds of the Loans not required for the repayment and termination of the Existing Credit Agreement and the payment of fees and expenses incurred in connection
herewith or therewith; and 
  
 (e) the Borrower may purchase the
Capital Stock of Borrower owned by R. Brooks Sherman, Jr., Andrew Atterbury and/or Phillip L. Elbert in connection with the exercise by such individuals of the put rights permitted under Section 6.2(d). 
  
 6.7 Limitation on Capital Expenditures. Make or commit to make
any Capital Expenditure, except Capital Expenditures of the Restricted Subsidiaries in the ordinary course of business not exceeding $250,000 in the aggregate for all Restricted Subsidiaries in any fiscal year. 
  
 6.8 Limitation on Investments. Make any advance, loan,
extension of credit (by way of guaranty or otherwise) or capital contribution to, or purchase any Capital Stock, bonds, notes, debentures or other debt securities of, or any assets constituting an ongoing 

  

 42 

 
business from, or make any other investment in, any other Person (all of the foregoing, “Investments”), except: 
  
 (a) investments in Cash Equivalents; 
  
 (b) loans and advances to employees of any Restricted Subsidiary in the
ordinary course of business (including, without limitation, for travel, entertainment and relocation expenses) that are not reimbursable to such Loan Party by any of its Subsidiaries and in an aggregate amount for all Restricted Subsidiaries not to
exceed $500,000 at any one time outstanding; 
  
 (c) existing
Investments in Subsidiaries that are not Restricted Subsidiaries; 
  
 (d) investments in Restricted Subsidiaries or the Borrower, including without limitation, the transfer of the Incentive Distribution Rights to Inergy Partners, LLC as provided for in Section 5.9(b); 
  
 (e) acquire and hold accounts receivables owing to any of them if created or
acquired in the ordinary course of business and payable or dischargeable in accordance with customary terms; 
  
 (f) endorse negotiable instruments held for collection in the ordinary course of business; 
  
 (g) make lease, utility and other similar deposits in the ordinary course of business; and 
  
 (h) operating bank accounts with any commercial bank. 
  
 6.9 Change in Equity Structure. Except for the conversion of
the Borrower to a limited partnership in connection with a Minimum IPO, amend, modify, waive or otherwise change, or correct or agree to any amendment, modification, waiver or other change to its articles of incorporation, certificate of formation,
certificate of partnership, bylaws, operating agreement, partnership agreement or other comparable document in any respect materially adverse to the Administrative Agent or the Lenders. 
  
 6.10 Limitation on Transactions with Affiliates. Enter into any transaction, including, without limitation,
any purchase, sale, lease or exchange of Property, the rendering of any service or the payment of any management, advisory or similar fees, with any Affiliate unless such transaction (a) is otherwise permitted under this Agreement, (b) in the
ordinary course of business of any Restricted Subsidiary and (c) is upon fair and reasonable terms no less favorable to any Loan Party than it would obtain in a comparable arm’s length transaction with a Person that is not an Affiliate;
provided, however that this Section 6.10 shall not prohibit (i) investments permitted by Sections 6.8(b)-(d); (ii) reasonable and customary director, officer and employee compensation (including bonuses) and other benefits (including retirement,
health, stock option and other benefit plans) and indemnification arrangements, (iii) the existence of, and the performance by any Loan Party of its obligations under the terms of, any limited liability company, limited partnership or other
constituent document to which it is a party on the Closing Date or as thereafter amended in accordance with Section 6.9; and (iv) transactions between and among the Collateral Parties. 
  

 43 

 6.11 Limitation on Sales and Leasebacks. Enter into any arrangement with any Person
providing for the leasing by any Restricted Subsidiary of real or personal property which has been or is to be sold or transferred by the Borrower to such Person or to any other Person to whom funds have been or are to be advanced by such Person on
the security of such property or rental obligations of the Borrower. 
  
 6.12 Limitation on Changes in Fiscal Periods. Permit the fiscal year of any Restricted Subsidiary to end on a day other than September 30 or change such Restricted Subsidiary’s method of determining fiscal quarters.

  
 6.13 Limitation on Negative Pledge Clauses.
Enter into or suffer to exist or become effective any agreement that prohibits or limits the ability of any Loan Party to create, incur, assume or suffer to exist any Lien upon any of its Property or revenues, whether now owned or hereafter
acquired, to secure the Obligations other than (a) this Agreement and the other Loan Documents and (b) any agreements governing any purchase money Liens or Capital Lease Obligations otherwise permitted hereby (in which case, any prohibition or
limitation shall only be effective against the assets financed thereby) and (c) the limitations contained in the ILP partnership agreement with respect to the Incentive Distribution Rights. 
  
 6.14 Limitation on Lines of Business. Enter into, in the case
of the Borrower or any Restricted Subsidiary, any business except for those businesses in which such Person is engaged on the date of this Agreement or that are reasonably related thereto. 
  
 6.15 Limitation on Optional Payments and Modifications of Debt
Instruments, etc. (a) Make or offer to make any optional or voluntary payment, prepayment, repurchase or redemption of, or otherwise voluntarily or optionally defease, any Subordinated Debt, or segregate funds for any such payment, prepayment,
repurchase, redemption or defeasance, provided that the foregoing shall not prevent the making of any Permitted Subordinated Debt Payments, (b) amend, modify or otherwise change, or consent or agree to any amendment, modification, waiver or other
change to, any of the terms of any Subordinated Debt (other than any such amendment, modification, waiver or other change which (i) would extend the maturity or reduce the amount of any payment of principal thereof, reduce the rate or extend the
date for payment of interest thereon or relax any covenant or other restriction applicable to the Borrower or any of its Subsidiaries and (ii) does not involve the payment of a consent fee), or (c) designate any Indebtedness (other than the
Obligations) as “Senior Debt” for the purposes of such Subordinated Debt. 
  
 6.16 Limitation on Amendments to Certain Documents. Amend, supplement or otherwise modify (pursuant to a waiver or otherwise) the terms and conditions of any Material Agreement of the Borrower or its
Restricted Subsidiaries, except to the extent that any such amendment, supplement or modification could not reasonably be expected to have a Material Adverse Effect. 
  

 44 

 6.17 Limitation on Activities of Restricted Subsidiaries. In the case of the Borrower and
each Restricted Subsidiary, notwithstanding anything to the contrary in this Agreement or any other Loan Document, (a) conduct, transact or otherwise engage in, or commit to conduct, transact or otherwise engage in, any business or operations other
than those incidental to its ownership of the Capital Stock owned by the Borrower or such Restricted Subsidiary on the Closing Date and (b) own, lease, manage or otherwise operate any properties or assets other than the ownership of the Capital
Stock of ILP and the other Subsidiaries owned by the Borrower or such Restricted Subsidiary on the Closing Date and cash and Cash Equivalents and other than those incidental to its ownership of the Capital Stock of ILP and the other Subsidiaries on
the Closing Date and the performance of its obligations hereunder and under the Material Agreements; provided that, except for any Incentive Distribution Rights transferred to Inergy Partners, LLC as provided for in Section 5.9(b), neither of the
entities in existence on the Closing Date named Inergy Partners, LLC and Inergy GP, LLC shall own any assets other than the Capital Stock owned by each such Subsidiary on the Closing Date. 
  
 6.18 Limitation on Hedge Agreements. Enter into any Hedge
Agreement other than, in the case of the Borrower only, Hedge Agreements entered into in the ordinary course of business, for bona fide hedging purposes and not for speculative purposes, to protect against changes in interest rates or foreign
exchange rates. 
  
 Section 7. EVENTS OF DEFAULT 
  
 If any of the following events shall occur and be continuing: 
  
 (a) The Borrower shall fail to pay any principal of any Loan when due in
accordance with the terms hereof; or the Borrower shall fail to pay any interest on any Loan, or any other amount payable hereunder or under any other Loan Document, within five days after any such interest or other amount becomes due in accordance
with the terms hereof or thereof; or 
  
 (b) Any representation or
warranty made or deemed made by any Loan Party herein or in any other Loan Document or that is contained in any certificate, document or financial or other statement furnished by it at any time under or in connection with this Agreement or any such
other Loan Document shall prove to have been inaccurate in any material respect on or as of the date made or deemed made or furnished; or 
  
 (c) Any Loan Party shall default in the observance or performance of any agreement contained in Section 5.4(a)(i), Section 5.7(a) or Section 6 (other than
Section 6.12) of this Agreement, or in Section 5.3(a) of the Guarantee and Collateral Agreement; or 
  
 (d) Any Loan Party shall default in the observance or performance of any other agreement contained in this Agreement or any other Loan Document (other
than as provided in paragraphs (a) through (c) of this Section), and such default shall continue unremedied for a period of 30 days after the earlier to occur of (i) notice thereof from the Administrative Agent to the Borrower (which notice will be
given at the request of any Lender) or (ii) an officer of the Borrower becomes aware of any such failure or breach; or 
  
 (e) The Borrower GP, the Borrower or any of its Subsidiaries shall (i) default in making any payment of any principal of any Indebtedness (including,
without limitation, any 

  

 45 

 
Guarantee Obligation constituting Indebtedness, but excluding the Loans) on the scheduled or original due date with respect thereto; or (ii) default in
making any payment of any interest on any such Indebtedness beyond the period of grace, if any, provided in the instrument or agreement under which such Indebtedness was created; or (iii) default in the observance or performance of any other
agreement or condition relating to any such Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur or condition exist, the effect of which default or other event or condition
is to cause, or to permit the holder or beneficiary of such Indebtedness (or a trustee or agent on behalf of such holder or beneficiary) to cause, with the giving of notice if required, such Indebtedness to become due prior to its stated maturity or
to become subject to a mandatory offer to purchase by the obligor thereunder or (in the case of any such Indebtedness constituting a Guarantee Obligation) to become payable; provided, that a default, event or condition described in clause
(i), (ii) or (iii) of this paragraph (e) shall not at any time constitute an Event of Default unless, at such time, one or more defaults, events or conditions of the type described in clauses (i), (ii) and (iii) of this paragraph (e) shall have
occurred and be continuing with respect to Indebtedness the outstanding principal amount of which exceeds in the aggregate $15,000,000; or 
  
 (f) (i) The Borrower or any of its Subsidiaries or the Borrower GP shall commence any case, proceeding or other action (A) under any existing or future
law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking
reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts, or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar official for it or
for all or any substantial part of its assets, or the Borrower or any of its Subsidiaries or the Borrower GP shall make a general assignment for the benefit of its creditors; or (ii) there shall be commenced against the Borrower or any of its
Subsidiaries or the Borrower GP any case, proceeding or other action of a nature referred to in clause (i) above that (A) results in the entry of an order for relief or any such adjudication or appointment or (B) remains undismissed, undischarged or
unbonded for a period of 60 days; or (iii) there shall be commenced against the Borrower or any of its Subsidiaries or the Borrower GP any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar
process against all or any substantial part of its assets that results in the entry of an order for any such relief that shall not have been vacated, discharged, or stayed or bonded pending appeal within 60 days from the entry thereof; or (iv) the
Borrower or any of its Subsidiaries or the Borrower GP shall take any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above; or (v) the Borrower or any
of its Subsidiaries or the Borrower GP shall generally not, or shall be unable to, or shall admit in writing its inability to, pay its debts as they become due; or 
  
 (g) (i) Any Person shall engage in any “prohibited transaction” (as defined in Section 406 of ERISA or Section
4975 of the Code) involving any Plan, (ii) any “accumulated funding deficiency” (as defined in Section 302 of ERISA), whether or not waived, shall exist with respect to any Plan, or any Lien in favor of the PBGC or a Plan shall arise on
the assets of the Borrower or any Commonly Controlled Entity, (iii) a Reportable Event shall occur with respect to, or proceedings shall commence to have a trustee appointed, or a trustee shall be appointed, to administer or to terminate, any Single
Employer Plan, which Reportable Event or 

  

 46 

 
commencement of proceedings or appointment of a trustee is, in the reasonable opinion of the Required Lenders, likely to result in the termination of such
Plan for purposes of Title IV of ERISA, (iv) any Single Employer Plan shall terminate for purposes of Title IV of ERISA, (v) the Borrower or any Commonly Controlled Entity shall incur any liability in connection with a withdrawal from, or the
Insolvency or Reorganization of, a Multiemployer Plan or (vi) any other event or condition shall occur or exist with respect to a Plan; and in each case in clauses (i) through (vi) above, such event or condition, together with all other such events
or conditions, if any, could reasonably be expected to have a Material Adverse Effect; or 
  
 (h) One or more judgments or decrees shall be entered against the Borrower or any of its Subsidiaries involving in the aggregate a liability (not paid or fully covered by insurance as to which the relevant insurance
company has acknowledged coverage) of $15,000,000 or more, and all such judgments or decrees shall not have been vacated, discharged, stayed or bonded pending appeal within 30 days from the entry thereof; or 
  
 (i) Any of the Security Documents shall cease, for any reason (other than by
reason of the express release thereof pursuant to Section 9.15), to be in full force and effect, or any Loan Party shall so assert, or any Lien created by any of the Security Documents shall cease to be enforceable and of the same effect and
priority purported to be created thereby; or 
  
 (j) The guarantee
contained in Section 2 of the Guarantee and Collateral Agreement shall cease, for any reason (other than by reason of the express release thereof pursuant to Section 9.15), to be in full force and effect or any Loan Party or any Affiliate of any
Loan Party shall so assert; or 
  
 (k) Any Change of Control shall
occur; or 
  
 (l) Any Subordinated Debt shall cease, for any
reason, to be validly subordinated to the Obligations, as provided in the applicable Subordinated Debt Documents, or the Borrower, any Subsidiary or any holder of any Subordinated Debt shall so assert; or 
  
 (m) ILP or any of its Subsidiaries shall default in the observance or
performance of any covenant or agreement contained in any loan agreement, mortgage, indenture or instrument (including the ILP Credit Agreement) under which there may be issued or by which there may be secured or evidenced any Indebtedness
(including any Guarantee Obligation constituting Indebtedness) by ILP or any of its Subsidiaries, whether such Indebtedness now exists or is created after the date of this Agreement, which default has caused or resulted in such Indebtedness being
accelerated or otherwise becoming or being declared due and payable prior to its stated maturity (or, in the case of any such Indebtedness constituting a Guarantee Obligation, to become payable) or to become subject to a mandatory offer to purchase
by the obligor under any such loan agreement, mortgage, indenture or instrument and, in each case, the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness the maturity of which has been so
accelerated, aggregates to $15,000,000 or more; or 
  
 (n) ILP or
any of its Subsidiaries shall, unless the Required Lenders shall have otherwise agreed in writing, enter into or suffer to exist or become effective any amendment, 

  

 47 

 
supplement or other modification (pursuant to a waiver or otherwise) any of the terms and conditions of the partnership agreement of ILP, the ILP Credit
Agreement, the ILP Senior Notes or the ILP Senior Note Indenture in any respect materially adverse to the Agents or the Lenders or, in the case of the partnership agreement of ILP, materially adverse to the rights of the beneficiaries of the
Incentive Distribution Rights; or 
  
 (o) The Borrower or any
Subsidiary shall enter into or suffer to exist or become effective any consensual encumbrance or restriction on the ability of any Subsidiary to (i) make Restricted Payments in respect of the Capital Stock of such Subsidiary held by, or pay any
Indebtedness owed to, the Borrower, (ii) make Investments in any Loan Party or (iii) transfer any of its assets to any Loan Party, except for such encumbrances or restrictions that are no more restrictive than the restrictions existing under or by
reason of (A) any restrictions existing under the Loan Documents and (B) any restrictions existing in the ILP Credit Agreement or the ILP Senior Note Indenture; or 
  
 (p) On and after the completion of the Minimum IPO, the Borrower GP shall (i) conduct, transact or otherwise engage in, or
commit to conduct, transact or otherwise engage in, any business or operations other than those incidental to its ownership of the general partnership interests in the Borrower and its obligations as general partner of the Borrower as set forth in
the partnership agreement of the Borrower, (ii) incur, create, assume or suffer to exist any Indebtedness or other liabilities or financial obligations, except (A) nonconsensual obligations imposed by operation of law, including obligations of the
Borrower to the extent such obligations become obligations of the Borrower GP in its capacity as general partner of the Borrower, (B) obligations with respect to its Capital Stock and (C) obligations to pay for its ordinary course expenses, or (iii)
own, lease, manage or otherwise operate any properties or assets other than the ownership of shares of Capital Stock of the Borrower and other than fulfilling its obligations as general partner of the Borrower as set forth in the partnership
agreement of the Borrower; 
  
 then, and in any such event, (A) if such event is
an Event of Default specified in clause (i) or (ii) of paragraph (f) above with respect to the Borrower, the Borrower GP or ILP, automatically the Loans hereunder (with accrued interest thereon) and all other amounts owing under this Agreement and
the other Loan Documents shall immediately become due and payable, and (B) if such event is any other Event of Default, the following actions may be taken: with the consent of the Required Lenders, the Administrative Agent may, or upon the request
of the Required Lenders, the Administrative Agent shall, by notice to the Borrower, declare the Loans hereunder (with accrued interest thereon) and all other amounts owing under this Agreement and the other Loan Documents to be due and payable
forthwith, whereupon the same shall immediately become due and payable. Presentment, demand, protest and all other notices of any kind are hereby expressly waived by the Borrower. 
  
 Section 8. THE AGENTS 
  
 8.1 Appointment. Each Lender hereby irrevocably designates and appoints the Agents as the agents of such Lender under this Agreement and the
other Loan Documents, and each Lender irrevocably authorizes each Agent, in such capacity, to take such action on its behalf under the provisions of this Agreement and the other Loan Documents and to exercise 

  

 48 

 
such powers and perform such duties as are expressly delegated to such Agent by the terms of this Agreement and the other Loan Documents, together with such
other powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary elsewhere in this Agreement, no Agent shall have any duties or responsibilities, except those expressly set forth herein, or any fiduciary relationship
with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against any Agent. 
  
 8.2 Delegation of Duties. Each Agent may execute any of its
duties under this Agreement and the other Loan Documents by or through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. No Agent shall be responsible for the negligence or
misconduct of any agents or attorneys-in-fact selected by it with reasonable care. 
  
 8.3 Exculpatory Provisions. Neither any Agent nor any of its officers, directors, employees, agents, attorneys-in-fact or affiliates shall be (i) liable for any action lawfully taken or omitted to be
taken by it or such Person under or in connection with this Agreement or any other Loan Document (except to the extent that any of the foregoing are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted
from its or such Person’s own gross negligence or willful misconduct) or (ii) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by any Loan Party or any officer thereof contained in
this Agreement or any other Loan Document or in any certificate, report, statement or other document referred to or provided for in, or received by the Agents under or in connection with, this Agreement or any other Loan Document or for the value,
validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or for any failure of any Loan Party to perform its obligations hereunder or thereunder. The Agents shall not be under any obligation to
any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of any Loan Party.

  
 8.4 Reliance by Agents. Each Agent shall be
entitled to rely, and shall be fully protected in relying, upon any instrument, writing, resolution, notice, consent, certificate, affidavit, letter, telecopy, telex or teletype message, statement, order or other document or conversation believed by
it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons and upon advice and statements of legal counsel (including counsel to the Loan Parties), independent accountants and other experts selected by such
Agent. The Agents may deem and treat the payee of any Note as the owner thereof for all purposes unless such Note shall have been transferred in accordance with Section 9.6 and all actions required by such Section in connection with such transfer
shall have been taken. Each Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless it shall first receive such advice or concurrence of the Required Lenders (or, if so
specified by this Agreement, all Lenders or any other instructing group of Lenders specified by this Agreement) as it deems appropriate or it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense
that may be incurred by it by reason of taking or continuing to take any such action. Each Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement and the other Loan Documents in 

  

 49 

 
accordance with a request of the Required Lenders (or, if so specified by this Agreement, all Lenders or any other instructing group of Lenders specified by
this Agreement), and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders and all future holders of the Loans. 
  
 8.5 Notice of Default. No Agent shall be deemed to have knowledge or notice of the occurrence of any Default
or Event of Default hereunder unless such Agent shall have received notice from a Lender or the Borrower referring to this Agreement, describing such Default or Event of Default and stating that such notice is a “notice of default”. In the
event that the Administrative Agent shall receive such a notice, the Administrative Agent shall give notice thereof to the Lenders. The Administrative Agent shall take such action with respect to such Default or Event of Default as shall be
reasonably directed by the Required Lenders (or, if so specified by this Agreement, all Lenders or any other instructing group of Lenders specified by this Agreement); provided that unless and until the Administrative Agent shall have
received such directions, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable in the best interests of the
Lenders. 
  
 8.6 Non-Reliance on Agents and Other
Lenders. Each Lender expressly acknowledges that neither any of the Agents nor any of their respective officers, directors, employees, agents, attorneys-in-fact or affiliates have made any representations or warranties to it and that no act by
any Agent hereafter taken, including any review of the affairs of any Loan Party or any affiliate of any Loan Party, shall be deemed to constitute any representation or warranty by any Agent to any Lender. Each Lender represents to the Agents that
it has, independently and without reliance upon any Agent or any other Lender, and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, operations, property, financial
and other condition and creditworthiness of the Loan Parties and their affiliates and made its own decision to make its Loans hereunder and enter into this Agreement. Each Lender also represents that it will, independently and without reliance upon
any Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other
Loan Documents, and to make such investigation as it deems necessary to inform itself as to the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and their affiliates. Except for notices, reports
and other documents expressly required to be furnished to the Lenders by the Administrative Agent hereunder, no Agent shall have any duty or responsibility to provide any Lender with any credit or other information concerning the business,
operations, property, condition (financial or otherwise), prospects or creditworthiness of any Loan Party or any affiliate of any Loan Party that may come into the possession of such Agent or any of its officers, directors, employees, agents,
attorneys-in-fact or affiliates. 
  
 8.7
Indemnification. The Lenders agree to indemnify each Agent in its capacity as such (to the extent not reimbursed by the Borrower and without limiting the obligation of the Borrower to do so), ratably according to their respective Loan
Percentages in effect on the date on which indemnification is sought under this Section (or, if indemnification is sought after the date upon which the Commitments shall have terminated and the Loans shall 

  

 50 

 
have been paid in full, ratably in accordance with such Loan Percentages immediately prior to such date), for, and to save each Agent harmless from and
against, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any time (including, without limitation, at any time following the payment of
the Loans) be imposed on, incurred by or asserted against such Agent in any way relating to or arising out of, the Commitments, this Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein or the
transactions contemplated hereby or thereby or any action taken or omitted by such Agent under or in connection with any of the foregoing; provided that no Lender shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements that are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from such Agent’s gross negligence
or willful misconduct. The agreements in this Section shall survive the payment of the Loans and all other amounts payable hereunder. 
  
 8.8 Agent in Its Individual Capacity. Each Agent and its affiliates may make loans to, accept deposits from and generally engage in any kind
of business with any Loan Party or any of its affiliates as though such Agent were not an Agent. With respect to its Loans made or renewed by it, each Agent shall have the same rights and powers under this Agreement and the other Loan Documents as
any Lender and may exercise the same as though it were not an Agent, and the terms “Lender” and “Lenders” shall include each Agent in its individual capacity. 
  
 8.9 Successor Administrative Agent. The Administrative Agent may resign as Administrative Agent upon 10
days’ notice to the Lenders and the Borrower. If the Administrative Agent shall resign as Administrative Agent under this Agreement and the other Loan Documents, then the Required Lenders shall appoint from among the Lenders a successor agent
for the Lenders, which successor agent shall (unless an Event of Default under Section 7(a) or Section 7(f) with respect to the Borrower shall have occurred and be continuing) be subject to approval by the Borrower (which approval shall not be
unreasonably withheld or delayed), whereupon such successor agent shall succeed to the rights, powers and duties of the Administrative Agent, and the term “Administrative Agent” shall mean such successor agent effective upon such
appointment and approval, and the former Administrative Agent’s rights, powers and duties as Administrative Agent shall be terminated, without any other or further act or deed on the part of such former Administrative Agent or any of the
parties to this Agreement or any holders of the Loans. If no successor agent has accepted appointment as Administrative Agent by the date that is 10 days following a retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become effective, and the Lenders shall assume and perform all of the duties of the Administrative Agent hereunder until such time, if any, as the Required Lenders appoint a
successor agent as provided for above. After any retiring Administrative Agent’s resignation as Administrative Agent, the provisions of this Section 8 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement and the other Loan Documents. 
  
 8.10 Authorization to Release Liens. The Administrative Agent is hereby irrevocably authorized by each of the Lenders to effect any release of Liens contemplated by Section 9.15. 
  

 51 

 8.11 The Arranger and the Syndication Agent. Neither the Arranger nor the Syndication
Agent, in their respective capacities as such, shall have any duties or responsibilities, nor shall either of them incur any liability, under this Agreement and the other Loan Documents. 
  
 Section 9. MISCELLANEOUS 
  
 9.1 Amendments and Waivers. Neither this Agreement nor any other Loan Document, nor any terms hereof or thereof, may be amended,
supplemented or modified except in accordance with the provisions of this Section 9.1. The Required Lenders and each Loan Party party to the relevant Loan Document may, or (with the written consent of the Required Lenders) the Administrative Agent
and each Loan Party party to the relevant Loan Documents may, from time to time, (a) enter into written amendments, supplements or modifications hereto and to the other Loan Documents (including amendments and restatements hereof or thereof) for the
purpose of adding any provisions to this Agreement or the other Loan Documents or changing in any manner the rights of the Lenders or of the Loan Parties hereunder or thereunder or (b) waive, on such terms and conditions as may be specified in the
instrument of waiver, any of the requirements of this Agreement or the other Loan Documents or any Default or Event of Default and its consequences; provided, however, that no such waiver and no such amendment, supplement or
modification shall: 
  
 (i) forgive the principal
amount or extend the final scheduled date of maturity of any Loan, extend the scheduled date of any amortization payment in respect of any Loan, reduce the stated rate of any interest or fee payable hereunder or extend the scheduled date of any
payment thereof, or increase the amount or extend the expiration date of any Commitment of any Lender, in each case without the consent of each Lender directly affected thereby; 
  
 (ii) amend, modify or waive any provision of this Section or reduce any percentage specified in the
definition of Required Lenders, consent to the assignment or transfer by the Borrower of any of its rights and obligations under this Agreement and the other Loan Documents, release all or substantially all of the Collateral under the Guarantee and
Collateral Agreement or release all or substantially all of the Subsidiary Guarantors from their obligations under the Guarantee and Collateral Agreement, in each case without the consent of all Lenders except to the extent provided for herein or
therein; 
  
 (iii) amend, modify or waive any
provision of Section 8 without the consent of any Agent directly affected thereby; 
  
 (iv) amend, modify or waive any provision of Section 2.13(a) or 2.13(b) without the consent of each Lender directly affected thereby; or

  
 (v) impose restrictions on assignments and
participations that are more restrictive than, or additional to, those set forth in Section 9.6 without the consent of each Lender directly affected thereby. 
  
 Any such waiver and any such amendment, supplement or modification shall apply equally to each of the Lenders and shall be binding upon the Loan Parties, the Lenders, the
Agents and all 

  

 52 

 
future holders of the Loans. In the case of any waiver, the Loan Parties, the Lenders and the Agents shall be restored to their former position and rights
hereunder and under the other Loan Documents, and any Default or Event of Default waived shall be deemed to be cured and not continuing; but no such waiver shall extend to any subsequent or other Default or Event of Default, or impair any right
consequent thereon. Any such waiver, amendment, supplement or modification shall be effected by a written instrument signed by the parties required to sign pursuant to the foregoing provisions of this Section; provided, that delivery of an
executed signature page of any such instrument by facsimile transmission shall be effective as delivery of a manually executed counterpart thereof. 
  
 9.2 Notices. All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by
telecopy), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered, or three Business Days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when received,
addressed (a) in the case of the Borrower and the Agents, as follows and (b) in the case of the Lenders, as set forth in an administrative questionnaire delivered to the Administrative Agent or on Schedule I to the Lender Addendum to which such
Lender is a party or, in the case of a Lender which becomes a party to this Agreement pursuant to an Assignment and Acceptance, in such Assignment and Acceptance or (c) in the case of any party, to such other address as such party may hereafter
notify to the other parties hereto: 
  

			
	The Borrower:	  	Inergy Holdings, LLC
	 	  	Two Brush Creek Blvd.
	 	  	Suite 200
	 	  	Kansas City, Missouri 64112
	 	  	Attention:     Brooks Sherman
	 	  	                     Chief Financial Officer
	 	  	Telecopy:     816-471-3854
	 	  	Telephone:   816-842-8181
		
	The Administrative Agent:	  	Lehman Commercial Paper Inc.
	 	  	745 Seventh Avenue, 19th floor
	 	  	New York, New York 10019
	 	  	Attention:     Frank P. Turner
	 	  	Telecopy:     646-758-1986
	 	  	Telephone:   212-526-1463

  
 Notices and other
communications to the Lenders hereunder may be delivered or furnished by electronic communications pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to Section 2
unless otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications. 
  

 53 

 9.3 No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on
the part of any Agent or any Lender, any right, remedy, power or privilege hereunder or under the other Loan Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and
privileges provided by law. 
  
 9.4 Survival of
Representations and Warranties. All representations and warranties made herein, in the other Loan Documents and in any document, certificate or statement delivered pursuant hereto or in connection herewith shall survive the execution and
delivery of this Agreement and the making of the Loans and other extensions of credit hereunder. 
  
 9.5 Payment of Expenses. The Borrower agrees (a) to pay or reimburse the Arranger and the Agents for all their reasonable out-of-pocket
costs and expenses incurred in connection with the syndication of the Facility (other than fees payable to syndicate members) and the development, preparation and execution of, and any amendment, supplement or modification to, this Agreement and the
other Loan Documents and any other documents prepared in connection herewith or therewith, and the consummation of the transactions contemplated hereby and thereby, including the reasonable fees and disbursements and other charges of counsel to the
Administrative Agent, the charges of IntraLinks and filing and recording fees and expenses, (b) to pay or reimburse each Lender and the Agents for all their reasonable out-of-pocket costs and expenses incurred in connection with the enforcement or
preservation of any rights under this Agreement, the other Loan Documents and any other documents prepared in connection herewith or therewith, including the reasonable fees and disbursements of counsel to each Lender and of counsel to the Agents,
(c) to pay, indemnify, or reimburse each Lender and the Agents for, and hold each Lender and the Agents harmless from, any and all recording and filing fees and any and all liabilities with respect to, or resulting from any delay in paying, stamp,
excise and other taxes, if any, which may be payable or determined to be payable in connection with the execution and delivery of, or consummation or administration of any of the transactions contemplated by, or any amendment, supplement or
modification of, or any waiver or consent under or in respect of, this Agreement, the other Loan Documents and any such other documents, and (d) to pay, indemnify or reimburse each Lender, each Agent, the Arranger, their respective affiliates, and
their respective officers, directors, employees, agents and controlling persons (each, an “Indemnitee”) for, and hold each Indemnitee harmless from and against any and all other liabilities, obligations, losses, damages, penalties,
actions, judgments or suits, and reasonable costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery, enforcement, performance and administration of this Agreement, the other Loan Documents and any
such other documents, including any of the foregoing relating to the use of proceeds of the Loans or the violation of, noncompliance with or liability under, any Environmental Law applicable to the operations of the Borrower or any of its
Subsidiaries or any of the Properties and the reasonable fees and disbursements and other charges of legal counsel in connection with claims, actions or proceedings by any Indemnitee against the Borrower or any other Loan Party under any Loan
Document (all the foregoing in this clause (d), collectively, the “Indemnified Liabilities”), provided, that the Borrower shall have no obligation hereunder to any Indemnitee with respect to Indemnified Liabilities to the
extent such Indemnified Liabilities are found by a final and 

  

 54 

 
nonappealable decision of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of such Indemnitee. No
Indemnitee shall be liable for any damages arising from the use by unauthorized persons of Information or other materials sent through electronic, telecommunications or other information transmission systems that are intercepted by such persons. No
Loan Party nor any Indemnitee shall be liable for any special, indirect, consequential or punitive damages in connection with the Facility. All amounts due under this Section shall be payable not later than 30 days after written demand therefor.
Statements payable by the Borrower pursuant to this Section shall be submitted to the Chief Financial Officer (Telephone No (816) 842-8181) (Fax No. (816) 531-3684), at the address of the Borrower set forth in Section 9.2, or to such other Person or
address as may be hereafter designated by the Borrower in a notice to the Administrative Agent. The agreements in this Section shall survive repayment of the Loans and all other amounts payable hereunder. 
  
 9.6 Successors and Assigns; Participations and Assignments. (a)
This Agreement shall be binding upon and inure to the benefit of the Borrower, the Lenders, the Agents, all future holders of the Loans and their respective successors and permitted assigns, except that the Borrower may not assign or transfer any of
its rights or obligations under this Agreement without the prior written consent of the Agents and each Lender. 
  
 (b) Any Lender may, without the consent of the Borrower, in accordance with applicable law, at any time sell to one or more banks, financial institutions
or other entities (each, a “Participant”) participating interests in any Loan owing to such Lender, or any other interest of such Lender hereunder and under the other Loan Documents. In the event of any such sale by a Lender of a
participating interest to a Participant, such Lender’s obligations under this Agreement to the other parties to this Agreement shall remain unchanged, such Lender shall remain solely responsible for the performance thereof, such Lender shall
remain the holder of any such Loan for all purposes under this Agreement and the other Loan Documents, and the Borrower and the Agents shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement and the other Loan Documents. In no event shall any Participant under any such participation have any right to approve any amendment or waiver of any provision of any Loan Document, or any consent to any departure by
any Loan Party therefrom, except to the extent that such amendment, waiver or consent would require the consent of all Lenders pursuant to Section 9.1. The Borrower agrees that if amounts outstanding under this Agreement and the Loans are due or
unpaid, or shall have been declared or shall have become due and payable upon the occurrence of an Event of Default, each Participant shall, to the maximum extent permitted by applicable law, be deemed to have the right of setoff in respect of its
participating interest in amounts owing under this Agreement to the same extent as if the amount of its participating interest were owing directly to it as a Lender under this Agreement, provided that, in purchasing such participating
interest, such Participant shall be deemed to have agreed to share with the Lenders the proceeds thereof as provided in Section 9.7(a) as fully as if such Participant were a Lender hereunder. The Borrower also agrees that each Participant shall be
entitled to the benefits of Sections 2.14, 2.15 and 2.16 with respect to the Loans outstanding from time to time as if such Participant were a Lender; provided that, in the case of Section 2.15, such Participant shall have complied with the
requirements of said Section, and provided, further, that no Participant shall be entitled to receive any greater amount pursuant to any such Section than the transferor Lender would have been entitled to receive in respect of the
amount of the participation transferred by such transferor 

  

 55 

 
Lender to such Participant had no such transfer occurred. A Participant that would be a Non-U.S. Lender if it were a Lender shall not be entitled to the
benefits of Section 2.15 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 2.15(e) as though it were a Lender. 
  
 (c) Any Lender (an “Assignor”) may, in accordance with
applicable law and upon written notice to the Administrative Agent, at any time and from time to time assign to any Lender or any affiliate, any Agent or any affiliate, Related Fund or Control Investment Affiliate thereof or, with the consent of the
Borrower and the Administrative Agent (which consents shall not be unreasonably withheld or delayed), to an additional bank, financial institution or other entity (an “Assignee”) all or any part of its rights and obligations under
this Agreement pursuant to an Assignment and Acceptance, substantially in the form of Exhibit D, executed by such Assignee and such Assignor (and, where the consent of the Borrower or Administrative Agent is required pursuant to the foregoing
provisions, by the Borrower and the Administrative Agent) and delivered to the Administrative Agent for its acceptance and recording in the Register; provided that no such assignment to an Assignee (other than to any Lender or any affiliate,
any Agent or any affiliate, Related Fund or Control Investment Affiliate thereof) shall be in an aggregate principal amount of less than $1,000,000 (other than in the case of an assignment of all of a Lender’s interests under this Agreement),
in each case, unless otherwise agreed by the Borrower and the Administrative Agent. Upon such execution, delivery, acceptance and recording, from and after the effective date determined pursuant to such Assignment and Acceptance, (x) the Assignee
thereunder shall be a party hereto and, to the extent provided in such Assignment and Acceptance, have the rights and obligations of a Lender hereunder with Loans as set forth therein, and (y) the Assignor thereunder shall, to the extent provided in
such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all of an Assignor’s rights and obligations under this Agreement, such Assignor shall cease to be a
party hereto, except as to Section 2.14, 2.15 and 9.5 in respect of the period prior to such effective date). For purposes of the minimum assignment amounts set forth in this paragraph, multiple assignments by two or more Related Funds shall be
aggregated. Notwithstanding any provision of this Section, the consent of the Borrower shall not be required for any assignment that occurs at any time when any Event of Default shall have occurred and be continuing. 
  
 (d) The Administrative Agent shall, on behalf of the Borrower, maintain at
its address referred to in Section 9.2 a copy of each Assignment and Acceptance delivered to it and a register (the “Register”) for the recordation of the names and addresses of the Lenders and the principal amount of the Loans
owing to, each Lender from time to time. The entries in the Register shall be conclusive, in the absence of manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register as
the owner of the Loans and any Notes evidencing such Loans recorded therein for all purposes of this Agreement. Any assignment of any Loan, whether or not evidenced by a Note, shall be effective only upon appropriate entries with respect thereto
being made in the Register (and each Note shall expressly so provide). Any assignment or transfer of all or part of a Loan evidenced by a Note shall be registered on the Register only upon surrender for registration of assignment or transfer of the
Note evidencing such Loan, accompanied by a duly executed Assignment and Acceptance; thereupon one or more new Notes in the same aggregate principal 

  

 56 

 
amount shall be issued to the designated Assignee, and the old Notes shall be returned by the Administrative Agent to the Borrower marked
“canceled”. The Register shall be available for inspection by the Borrower or any Lender (with respect to any entry relating to such Lender’s Loans) at any reasonable time and from time to time upon reasonable prior notice.

  
 (e) Upon its receipt of a duly completed Assignment and
Acceptance executed by an Assignor and an Assignee (and, in any case where the consent of any other Person is required by Section 9.6(c), by each such other Person) together with payment to the Administrative Agent of a registration and processing
fee of $3,500 (treating multiple, simultaneous assignments by or to two or more Related Funds as a single assignment) (except that no such registration and processing fee shall be payable (y) in connection with an assignment by or to a Lehman Entity
or (z) in the case of an Assignee which is already a Lender or is an affiliate or Related Fund of a Lender or a Person under common management with a Lender), the Administrative Agent shall (i) promptly accept such Assignment and Acceptance and (ii)
on the effective date determined pursuant thereto record the information contained therein in the Register and give notice of such acceptance and recordation to the Borrower. On or prior to such effective date, the Borrower, at its own expense, upon
request, shall execute and deliver to the Administrative Agent (in exchange for the Note of the assigning Lender) a new Note to the order of such Assignee in an amount equal to the Loan assumed or acquired by it pursuant to such Assignment and
Acceptance and, if the Assignor has retained a Loan upon request, a new Note to the order of the Assignor in an amount equal to the Loan retained by it hereunder. Such new Note or Notes shall be dated the Closing Date and shall otherwise be in the
form of the Note or Notes replaced thereby. 
  
 (f) For avoidance
of doubt, the parties to this Agreement acknowledge that the provisions of this Section concerning assignments of Loans and Notes relate only to absolute assignments and that such provisions do not prohibit assignments creating security interests in
Loans and Notes, including, without limitation, any pledge or assignment by a Lender of any Loan or Note to any Federal Reserve Bank in accordance with applicable law. 
  
 (g) Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”) may grant
to a special purpose funding vehicle (an “SPC”), identified as such in writing from time to time by the Granting Lender to the Administrative Agent and the Borrower, the option to provide to the Borrower all or any part of any Loan
that such Granting Lender would otherwise be obligated to make to the Borrower pursuant to this Agreement; provided that (i) nothing herein shall constitute a commitment by any SPC to make any Loan and (ii) if an SPC elects not to exercise
such option or otherwise fails to provide all or any part of such Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof. The making of a Loan by an SPC hereunder shall utilize the Commitment of the Granting
Lender to the same extent, and as if, such Loan were made by such Granting Lender. Each party hereto hereby agrees that no SPC shall be liable for any indemnity or similar payment obligation under this Agreement (all liability for which shall remain
with the Granting Lender). In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after the payment in full of all
outstanding commercial paper or other indebtedness of any SPC, it will not institute against, or join any other person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws
of the United 

  

 57 

 
States or any state thereof. In addition, notwithstanding anything to the contrary in this Section 9.6(g), any SPC may (A) with notice to, but without the
prior written consent of, the Borrower and the Administrative Agent and without paying any processing fee therefor, assign all or a portion of its interests in any Loans to the Granting Lender, or with the prior written consent of the Borrower and
the Administrative Agent (which consent shall not be unreasonably withheld) to any financial institutions providing liquidity and/or credit support to or for the account of such SPC to support the funding or maintenance of Loans, and (B) disclose on
a confidential basis any non-public information relating to its Loans to any rating agency, commercial paper dealer or provider of any surety, guarantee or credit or liquidity enhancement to such SPC; provided that non-public information with
respect to the Borrower may be disclosed only with the Borrower’s consent which will not be unreasonably withheld. In the event that the consent of all or any portion of the Lenders is required pursuant to any provision of any Loan Document at
a time when any Loan is held by any SPC, such SPC and the Granting Lender that would otherwise have been obligated to make such Loan shall agree between themselves as to which of them shall be entitled to grant or withhold any consent applicable to
such Loan, and the other parties to the Loan Documents shall be entitled to rely conclusively on the advice of such Granting Lender as to which of such Granting Lender or such SPC is entitled to grant or withhold such consent. This paragraph (g) may
not be amended without the written consent of any SPC with Loans outstanding at the time of such proposed amendment. 
  
 9.7 Adjustments; Set-off. (a) Except to the extent that this Agreement provides for payments to be allocated to a particular Lender, if any
Lender (a “Benefitted Lender”) shall at any time receive any payment of all or part of the Obligations owing to it, or receive any collateral in respect thereof (whether voluntarily or involuntarily, by set-off, pursuant to events
or proceedings of the nature referred to in Section 7(f), or otherwise), in a greater proportion than any such payment to or collateral received by any other Lender, if any, in respect of such other Lender’s Obligations, such Benefitted Lender
shall purchase for cash from the other Lenders a participating interest in such portion of each such other Lender’s Obligations, or shall provide such other Lenders with the benefits of any such collateral, as shall be necessary to cause such
Benefitted Lender to share the excess payment or benefits of such collateral ratably with each of the Lenders; provided, however, that if all or any portion of such excess payment or benefits is thereafter recovered from such
Benefitted Lender, such purchase shall be rescinded, and the purchase price and benefits returned, to the extent of such recovery, but without interest. 
  
 (b) In addition to any rights and remedies of the Lenders provided by law, each Lender shall have the right, without prior notice to the Borrower, any
such notice being expressly waived by the Borrower to the extent permitted by applicable law, upon any amount becoming due and payable by the Borrower hereunder (whether at the stated maturity, by acceleration or otherwise), to set off and
appropriate and apply against such amount any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect,
absolute or contingent, matured or unmatured, at any time held or owing by such Lender or any branch or agency thereof to or for the credit or the account of the Borrower. Each Lender agrees promptly to notify the Borrower and the Administrative
Agent after any such setoff and application made by such Lender, provided that the failure to give such notice shall not affect the validity of such setoff and application. 
  

 58 

 9.8 Counterparts. This Agreement may be executed by one or more of the parties to this
Agreement on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed signature page of this Agreement or of a Lender Addendum by facsimile
transmission shall be effective as delivery of a manually executed counterpart hereof. A set of the copies of this Agreement signed by all the parties shall be lodged with the Borrower and the Administrative Agent. 
  
 9.9 Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  
 9.10 Integration. This Agreement and the other Loan Documents represent the entire agreement of the Borrower, the Agents, the Arranger and
the Lenders with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Arranger, any Agent or any Lender relative to subject matter hereof not expressly set forth or referred
to herein or in the other Loan Documents. 
  
 9.11
GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 
  
 9.12 Submission To Jurisdiction; Waivers. The Borrower hereby
irrevocably and unconditionally: 
  
 (a) submits for itself and
its Property in any legal action or proceeding relating to this Agreement and the other Loan Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the
courts of the State of New York in the Borough of Manhattan, the courts of the United States of America for the Southern District of New York, and appellate courts from any thereof; 
  
 (b) consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or
hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 
  
 (c) agrees that service of process in any such action or proceeding may be
effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to the Borrower at its address set forth in Section 9.2 or at such other address of which the Administrative Agent shall
have been notified pursuant thereto; 
  
 (d) agrees that nothing
herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction; and 
  

 59 

 (e) waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any
legal action or proceeding referred to in this Section any special, exemplary, punitive or consequential damages. 
  
 9.13 Acknowledgments. The Borrower hereby acknowledges that: 
  
 (a) each Loan Party has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other
Loan Documents and such Loan Party is not relying on the advice of the Arranger, any Agent, any Lender or any of their affiliates and related entities for legal or tax matters, and that such Loan Party has sought and will continue to rely solely on
the advice of its own professionals and advisors for such matters, and has made an independent analysis and decision regarding the Facility based on such advice; 
  
 (b) neither the Arranger, any Agent nor any Lender has any fiduciary relationship with or duty to any Loan Party arising out
of or in connection with this Agreement or any of the other Loan Documents, and the relationship between the Arranger, the Agents and the Lenders, on one hand, and the Loan Parties, on the other hand, in connection herewith or therewith is solely
that of debtor and creditor; and 
  
 (c) no joint venture is
created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the Arranger, the Agents and the Lenders or among the Loan Parties, the Arranger, the Agents and the Lenders. 
  
 9.14 Confidentiality. Each of the Agents and the Lenders agrees
to keep confidential all non-public Information (as defined below); provided that nothing herein shall prevent any Agent or any Lender from disclosing any such Information (a) to the Arranger, any Agent, any other Lender or any affiliate of
any thereof (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to any Participant or Assignee (each, a
“Transferee”) or prospective Transferee that agrees to comply with the provisions of this Section or substantially equivalent provisions, (c) to any of its Affiliates, employees, directors, agents, attorneys, accountants and other
professional advisors that have been made aware of the confidential nature of such Information and instructed to keep such Information confidential, (d) to any financial institution that is a direct or indirect contractual counterparty in swap
agreements or such contractual counterparty’s professional advisor (so long as such contractual counterparty or professional advisor to such contractual counterparty agrees to be bound by the provisions of this Section), (e) upon the request or
demand of any Governmental Authority having jurisdiction over it, (f) in response to any order of any court or other Governmental Authority or as may otherwise be required pursuant to any Requirement of Law, (g) to the extent required by any legal
process, (h) that has been publicly disclosed other than in breach of this Section, (i) to the National Association of Insurance Commissioners or any similar organization or any nationally recognized rating agency that requires access to information
about a Lender’s investment portfolio in connection with ratings issued with respect to such Lender or (j) in connection with the exercise of any remedy hereunder or under any other Loan Document. As used in this Section 9.15,
“Information” means all information received from the Borrower relating to the Borrower or its business, other than any such information that is available to the Administrative Agent, any Issuing Bank or any Lender on a
nonconfidential basis prior to disclosure by the Borrower. 
  

 60 

 9.15 Release of Collateral. 
  
 (a) Notwithstanding anything to the contrary contained herein or in any other Loan Document, upon request of the Borrower in
connection with any Disposition of Property permitted by the Loan Documents, the Administrative Agent shall (without notice to, or vote or consent of, any Lender, or any Qualified Counterparty to any Specified Hedge Agreement) take such actions as
shall be required to release its security interest in any Collateral being Disposed of in such Disposition, to the extent necessary to permit consummation of such Disposition in accordance with the Loan Documents. 
  
 (b) Notwithstanding anything to the contrary contained herein or any other
Loan Document, when all Obligations (other than obligations in respect of any Specified Hedge Agreement) have been paid in full, upon request of the Borrower, the Administrative Agent shall (without notice to, or vote or consent of, any Lender, or
Qualified Counterparty to any Specified Hedge Agreement) take such actions as shall be required to release its security interest in all Collateral, and to release all guarantee obligations under any Loan Document, whether or not on the date of such
release there may be outstanding Obligations in respect of Specified Hedge Agreements. Any such release of guarantee obligations shall be deemed subject to the provision that such guarantee obligations shall be reinstated if after such release any
portion of any payment in respect of the Obligations guaranteed thereby shall be rescinded or must otherwise be restored or returned upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Borrower or any Guarantor, or
upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower or any Guarantor or any substantial part of its property, or otherwise, all as though such payment had not been made.

  
 9.16 Accounting Changes. In the event that any
“Accounting Change” (as defined below) shall occur and such change results in a change in the method of calculation of financial covenants, standards or terms in this Agreement, then the Borrower and the Administrative Agent agree to enter
into negotiations in order to amend such provisions of this Agreement so as to equitably reflect such Accounting Change with the desired result that the criteria for evaluating the Borrower’s financial condition shall be the same after such
Accounting Change as if such Accounting Change had not been made. Until such time as such an amendment shall have been executed and delivered by the Borrower, the Administrative Agent and the Required Lenders, all financial covenants, standards and
terms in this Agreement shall continue to be calculated or construed as if such Accounting Change had not occurred. “Accounting Change” refers to any change in accounting principles required by the promulgation of any rule, regulation,
pronouncement or opinion by the Financial Accounting Standards Board of the American Institute of Certified Public Accountants or, if applicable, the SEC. 
  
 9.17 Delivery of Lender Addenda. Each initial Lender shall become a party to this Agreement by delivering to the Administrative Agent a
Lender Addendum duly executed by such Lender, the Borrower and the Administrative Agent. 
  
 9.18 Intentionally Omitted. 
  

 61 

 9.19 WAIVERS OF JURY TRIAL. THE BORROWER, THE AGENTS AND THE LENDERS HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN. 
  
 9.20 Separateness. The Lenders acknowledge (i) the separateness of the Borrower and ILP from each other and from other Persons, (ii) that
the lenders under the ILP Credit Agreement, the ILP Senior Notes and the ILP Senior Note Indenture have advanced funds thereunder in reliance upon the separateness of the Borrower and ILP from each other and from other Persons, (iii) that each of
the Borrower and ILP have assets and liabilities that are separate from those of each other and from those of other Persons, (iv) that the Obligations owing under the Loan Documents are obligations and liabilities of the Loan Parties only and are
not the obligations or liabilities of ILP or any of ILP’s Subsidiaries, and have not been guaranteed by ILP or any of its Subsidiaries, and (v) that none of ILP or any of its Subsidiaries shall be liable to the Lenders for any amounts payable
or any liability under the Loan Documents. 
  
 9.21 USA
Patriot Act. Each Lender hereby notifies the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and
record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Act. 
  
 [Signature Pages Follow] 
  

 62 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by
their proper and duly authorized officers as of the day and year first above written. 
  

					
	INERGY HOLDINGS, LLC
		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

					
	LEHMAN BROTHERS INC., as Arranger
		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	Authorized Signatory

  

					
	LEHMAN COMMERCIAL PAPER INC.,
as Syndication Agent
		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	Authorized Signatory

  

					
	LEHMAN COMMERCIAL PAPER INC.,
as Administrative Agent
		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	Authorized Signatory

  
 Signature Page to
Credit Agreement 
 Inergy Holdings, LLC 
 April 2005 
  

					
	LEHMAN COMMERCIAL PAPER INC.,
as a Lender
		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  
 Signature Page to
Credit Agreement 
 Inergy Holdings, LLC 
 April 2005 
  

					
	SOUTHWEST BANK OF ST. LOUIS,
as a Lender
		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 
		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  
 Signature Page to
Credit Agreement 
 Inergy Holdings, LLC 
 April 2005

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