Exhibit 10(a)

Maker
DELTA NATURAL GAS COMPANY, INC.
               
BB&T
 
9580219605
 
Address
3617 LEXINGTON ROAD
   
Customer Number
   
WINCHESTER, KY 40391
               
00003
   
                                NOTE MODIFICATION AGREEMENT
Note Number
 

$ 40,000,000.00
 
10/31/2002
 
$40,000,000.00
 
6/30/2011
Original Amount of Note
 
Original Date
 
Modification Amount
 
Modification Date
             

This Note Modification Agreement (hereinafter “Agreement”) is made and entered
into this 30th day of JUNE 2011, by and between DELTA NATURAL GAS
COMPANY,  INC., maker(s), co-maker(s), endorser(s), or other obligor(s) on the
Promissory Note (as defined below), hereinafter also referred to jointly and
severally as Borrower(s); Branch Banking and Trust Company of North Carolina, a
banking corporation, hereinafter referred to as Bank and
_____________________________________________________________________________________________
owners other than Borrower(s) (if any) of any property pledged to secure
performance of Borrower(s)’s obligations to Bank, hereinafter referred to
jointly and severally as Debtor(s)/Grantor(s).

Witnesseth: Whereas, Borrower(s) has previously executed a Promissory Note
payable to Bank, which Promissory Note includes the original Promissory Note and
all renewals, extensions and modifications thereof, collectively “Promissory
Note”, and Promissory Note being more particularly identified by description of
the original note above; and Borrower(s) and Bank agree that said Promissory
Note be modified only to the limited extent as is hereinafter set forth; that
all other terms, conditions, and covenants of said Promissory Note remain in
full force and effect, and that all other obligations and covenants of
Borrower(s), except as herein modified, shall remain in full force and effect,
and binding between Borrower(s) and Bank; and Whereas Debtor(s)/Grantor(s), if
different from Borrower(s), has agreed to the terms of this modification; NOW
THEREFORE, in mutual consideration of the premises, the sum of Ten Dollars ($10)
and other good and valuable consideration, each to the other parties paid, the
parties hereto agree that said Promissory Note is amended as hereinafter
described:

* Borrower shall pay a prepayment fee as set forth in the Prepayment Fee
Addendum attached hereto.

INTEREST RATE, PRINCIPAL AND INTEREST PAYMENT TERM MODIFICATIONS (To the extent
no change is made, existing terms continue.  Sections not completed are
deleted.)

Interest shall accrue from the date hereof on the unpaid principal balance
outstanding from time to time at the:

*
Fixed Rate of ________% per annum.
       
*
Variable rate of the Bank’s Prime Rate plus ____% per annum to be adjusted
__________________as the Bank’s Prime Rate Changes.
       
*
As of the Modification Date, any fixed, floating, or average maximum rate and
fixed minimum rate in effect by virtue of the Promissory Note are hereby
deleted.  If checked here  *, the interest rate will not exceed a(n) * fixed  *
average maximum rate of _________% or a * floating maximum rate of the greater
of ______% or the Bank’s Prime Rate; and the interest rate will not decrease
below a fixed minimum rate of _____%.  If an average maximum rate is specified,
a determination of any required reimbursement of interest by Bank will be
made:  * when the Note is repaid in fully by Borrower * annually beginning on
__________________.
        x
THE ADJUSTED LIBOR RATE AS DEFINED IN THE ATTACHED ADDENDUM TO PROMISSORY NOTE.
         
Principal and interest are payable as follows:
   
   
 
 
x
Principal (plus any accrued interest not otherwise scheduled
herein          }            is due in full at maturity on JUNE 30, 2013.
 
*
Principal plus accrued interest
 
 
*
 
Payable in consecutive _____ installments
of             * Principal                                                      commencing
on ________________
                                                                                             * Principal
and interest   }
 
and continuing on the same day of each calendar period thereafter, in ____ equal
payments of $______, with one final payment of all remaining principal and
accrued interest due on _____________.
 
       
*
ChoiceLine Payment Option:  2% of outstanding balance is payable monthly
commencing on ____________ and continuing on the same day of each month
thereafter, with one final payment of all remaining principal and accrued
interest due on _______________________
        x
Accrued interest is payable MONTHLY  commencing on  JULY 31, 2011 and continuing
on the same day of each calendar period thereafter, with one final payment of
all remaining interest due on JUNE 30, 2013.
       
*
Bank reserves the right in its sole discretion to adjust the fixed payment due
hereunder _______ on ________ and continuing on the same day of each calendar
period thereafter, in order to maintain an amortization period of no more than
______ months from the date of the initial principal payment due
hereunder.  Borrower understands the payment may increase if interest rates
increase.
       
*
At the Borrower’s request, the Bank has agreed to readvance the principal amount
of $____________.  The outstanding principal balance under the Promissory Note
prior to the readvance is $________________, making the total outstanding
principal balance now due hereunder to be $_____________ (“Modification
Amount”).
       
*
______________________________________________________________________________________________________________
       
*
______________________________________________________________________________________________________________
       
*
Borrower hereby authorizes Bank to automatically draft from its demand deposit
or savings account(s) with Bank or other bank, any payment(s) due on the date(s)
due.  Borrower shall provide appropriate account number(s) for account(s) at
Bank or other bank.
         
The following scheduled payment(s) is (are) deferred:
   
 
 
*
$___________ principal
   
                                                                   }                  payment(s)
due on _________________________
 
*
$___________ interest
         
is (are) hereby deferred.  Payments will resume on ___________________________
according to the schedule contained herein or to the existing schedule (if no
other changes are made herein).
         
ACCOUNTS/NOTES
   
Page 1 of 4
 

 
 

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 Exhibit 10(a)

The Borrower(s) promises to pay Bank, or order, a late fee in the amount of five
percent (5%) of any installment past due for ten (10) or more days.  Where any
installment payment is past due for ten (10) or more days, subsequent payments
shall first be applied to the past due balance.  In addition, the undersigned
shall pay to Bank a returned payment fee if the undersigned or any other obligor
hereon makes any payment at any time by check or other instrument, or by any
electronic means, which is returned to Bank because of nonpayment due to
nonsufficient funds.

COLLATERAL:  * The Promissory Note, as modified, and the performance of the
terms of any agreement or instrument relating to, evidencing, or securing the
Promissory Note, as modified, shall be additionally secured by collateral
hereinafter described, a new security instrument shall be executed by
Borrower(s), and/or Debtor(s)/Grantor(s), and all other steps necessary to
perfect or record the Bank’s lien with priority acceptable to Bank shall be
taken.  In addition to Bank’s right of off-set and to any liens and security
interests granted to Bank in the Agreements, the undersigned hereby grants to
Bank a security interest in all of its depository accounts with and investment
property held by Bank, which shall serve as collateral for the indebtedness and
obligations evidenced by the Promissory Note, as modified.

Deed(s) of Trust / Mortgage(s) granted in favor of Bank as beneficiary /
mortgagee:

*
dated ___________________ in the maximum principal amount of
$_______________________________________________________
granted by
__________________________________________________________________________________
   
*
dated ___________________ in the maximum principal amount of
$________________________________________________________
granted by
__________________________________________________________________________________
   

Security Agreement(s) granting a security interest to Bank:

*
dated __________________ given by
____________________________________________________________________________
 ___________________________________________________________________________________________
   
*
dated __________________ given by
____________________________________________________________________________
___________________________________________________________________________________________
   
*
Securities Account Pledge and Security Agreement dated
__________________________________________________,
executed by
_________________________________________________________________________________
   
*
Control Agreement(s) dated ___________________, covering * Deposit
Account(s)              *Investment Property
                                                                                                    *
Letter of Credit Rights         * Electronic Chattel Paper
   
*
Assignment of Certificate of Deposit, Security Agreement, and Power of Attorney
(for Certificated Certificates of Deposit) dated
________________________________________________, executed by
__________________________________________________
   
*
Pledge and Security Agreement for Publicly Traded Certificated Securities dated
_________________________________________,
executed by ____________________________________________________________________
   
*
Assignment of Life Insurance Policy as Collateral dated
_______________________________________________________________,
executed by
_____________________________________________________________________
    x
AMENDMENT TO Loan Agreement dated 6/30/2011,executed by Borrower and *
Guarantor(s)
   
*
______________________________________________________________________________________________________________
   
*
______________________________________________________________________________________________________________
   
*
The collateral hereinafter described shall be and hereby is deleted as security
interest for payment of the Promissory Note.
     
______________________________________________________________________________________________________________
     
______________________________________________________________________________________________________________
     
OTHER:   ______________________________________________________________________________________________________

If the Promissory Note being modified by this Agreement is signed by more than
one person or entity, the modified Promissory Note shall be the joint and
several obligation of all signers and the property and liability of each and all
of them.  It is expressly understood and agreed that this Agreement is a
modification only and not a novation.  The original obligation of the
Borrower(s) evidenced by the Promissory Note is not extinguished hereby.  It is
agreed that except for the modification(s) contained herein, the Promissory
Note, and any other Loan Documents or Agreements evidencing, securing or
relating to the Promissory Note and all singular terms and conditions thereof,
shall be and remain in full force and effect.  This Agreement shall not release
or affect the liability of any co-makers, obligors, endorsers or guarantors of
said Promissory Note.  Borrower and Debtor(s)/Grantor(s), if any, jointly and
severally consent to the terms of this Agreement, waive any objection thereto,
affirm any and all obligations to Bank and certify that there are no defenses or
offsets against said obligations or the Bank, including without limitation the
Promissory Note.  Bank expressly reserves all rights as to any party with right
of recourse on the Promissory Note.

In the event periodic accruals of interest shall exceed any periodic fixed
payment amount described above, the fixed payment amount shall be immediately
increased or supplemental interest payments required on the same periodic basis
as specified above (increased fixed payments or supplemental payments to be
determined in the Bank’s sole discretion), in such amounts and at such times as
shall be necessary to pay all accruals of interest for the period and all
accruals of unpaid interest from previous periods.  Such adjustments to the
fixed payment amount or supplemental payments shall remain in effect for so long
as any interest accruals shall exceed the original fixed payment amount and
shall be further adjusted upward or downward to reflect changes in any variable
interest rate based on an index such as the Bank’s Prime Rate; provided that
unless elected otherwise above, the fixed payment amount shall not be reduced
below the original fixed payment amount.  However, Bank shall have the right, in
its sole discretion, to lower the fixed payment amount below the original
payment amount.  Notwithstanding any other provision contained in this
agreement, in no event shall the provisions of this paragraph be applicable to
any Promissory Note which requires disclosures pursuant to the Consumer
Protection Act (Truth-in-Lending Act, 15 USC § 1601, et seq., as implemented by
Regulation Z.

Borrower agrees that the only interest charge is the interest actually stated in
the Promissory Note, as modified hereby, and that any loan or origination fee
shall be deemed charges rather than interest, which charges are fully earned and
non-refundable.  It is further agreed that any late charges are not a charge for
the use of money but are imposed to compensate Bank for some of the
administrative services, costs and losses associated with any delinquency or
default under the Promissory Note, and said charges shall be fully earned and
non-refundable when accrued.  All other charges imposed by Bank upon Borrower in
connection with the Promissory Note and the loan including, without limitation,
any commitment fees, loan fees, facility fees, origination fees, discount
points, default and late charges, prepayment fees, statutory attorneys' fees and
reimbursements for costs and expenses paid by Bank to third parties or for
damages incurred by Bank are and shall be deemed to be charges made to
compensate Bank for underwriting and administrative services and costs, other
services, and costs or losses incurred and to be incurred by Bank in connection
with the Promissory Note and the loan and shall under no circumstances be deemed
to be charges for the use of money.  All such charges shall be fully earned and
non-refundable when due.
Page 2 of 4

 
 

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 Exhibit 10(a)

The Bank may, at its option, charge any fees for the modification, renewal,
extension, or amendment of any of the terms of the Promissory Note as permitted
by applicable law.

In the words "Prime Rate", "Bank Prime Rate", "BB&T Prime Rate", "Bank's Prime
Rate" or "BB&T's Prime Rate" are used in this Agreement, they shall refer to the
rate announced by the Bank from time to time as its Prime Rate.  The Bank makes
loans both above and below the Prime Rate and uses indexes other than the Prime
Rate.  Prime Rate is the name given a rate index used by the Bank and does not
in itself constitute a representation of any preferred rate or treatment.

Unless otherwise provided herein, it is expressly understood and agreed by and
between Borrower(s), Debtor(s)/Grantor(s) and Bank that any and all collateral
(including but not limited to real property, personal property, fixtures,
inventory, accounts, instruments, general intangibles, documents, chattel paper,
and equipment) given as security to insure faithful performance by Borrower(s)
and any other third party of any and all obligations to Bank, however created,
whether now existing or hereafter arising, shall remain as security for the
Promissory Note as modified hereby.

It is understood and agreed that if Bank has released collateral herein, it
shall not be required or obligated to take any further steps to release said
collateral from any lien or security interest unless Bank determines, in its
sole discretion, that it may do so without consequence to its secured position
and relative priority in other collateral; and unless Borrower(s) bears the
reasonable cost of such action. No delay or omission on the part of the Bank in
exercising any right hereunder shall operate as a waiver of such right or of any
other right of the Bank, nor shall any delay, omission or waiver on any one
occasion be deemed a bar to or waiver of the same, or of any other right on any
further occasion. Each of the parties signing this Agreement regardless of the
time, order or place of signing waives presentment, demand, protest, and notices
of every kind, and assents to any one or more extensions or postponements of the
time of payment or any other indulgences, to any substitutions, exchanges or
releases of collateral if at any time there is available to the Bank collateral
for the Promissory Note, as amended, and to the additions or releases of any
other parties or persons primarily or secondarily liable. Whenever possible the
provisions of this Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Agreement
is prohibited by or invalid under such law, such provisions shall be ineffective
to the extent of any such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement. All
rights and obligations arising hereunder shall be governed by and construed in
accordance with the laws of the same state which governs the interpretation and
enforcement of the Promissory Note.

From and after any event of default under the Promissory Note, as modified
hereby, or any related deed of trust, security agreement or loan agreement,
interest shall accrue on the sum of the principal balance and accrued interest
then outstanding at the variable rate equal to the Bank's Prime Rate plus 5% per
annum ("Default Rate"), provided that such rate shall not exceed at any time the
highest rate of interest permitted by the laws of the State of Kentucky; and
further that such rate shall apply after judgement. In the event of any default,
the then remaining unpaid principal amount and accrued but unpaid interest then
outstanding shall bear interest at the Default Rate until such principal and
interest have been paid in full.  Bank shall not be obligated to accept any
check, money order, or other payment instrument marked "payment in full" on any
disputed amount due hereunder, and Bank expressly reserves the right to reject
all such payment instruments. Borrower agrees that tender of its check or other
payment instrument so marked will not satisfy or discharge its obligation under
the Promissory Note, disputed or otherwise, even if such check or payment
instrument is inadvertently processed by Bank unless in fact such payment is in
fact sufficient to pay the amount due hereunder.

WAIVER OF TRIAL BY JURY.  UNLESS EXPRESSLY PROHIBITED BY APPLICABLE LAW, THE
UNDERSIGNED HEREBY WAIVE THE RIGHT TO TRIAL BY JURY OF ANY MATTERS OR CLAIMS
ARISING OUT OF THIS AGREEMENT, THE PROMISSORY NOTE OR ANY LOAN DOCUMENT EXECUTED
IN CONNECTION HEREWITH OR OUT OF THE CONDUCT OF THE RELATIONSHIP BETWEEN THE
UNDERSIGNED AND BANK.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR BANK TO MAKE
THE LOAN EVIDENCED BY THE PROMISSORY NOTE AND THIS AGREEMENT.  FURTHER, THE
UNDERSIGNED HEREBY CERTIFY THAT NO REPRESENTATIVE OR AGENT OF BANK, NOR BANK’S
COUNSEL, HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT BANK WOULD NOT SEEK TO
ENFORCE THIS WAIVER OR RIGHT TO JURY TRIAL PROVISION IN THE EVENT OF
LITIGATION.  NO REPRESENTATIVE OR AGENT OF BANK, NOR BANK’S COUNSEL, HAS THE
AUTHORITY TO WAIVE, CONDITION OR MODIFY THIS PROVISION.

Unless otherwise required under a Loan Agreement, if applicable, and as long as
any indebtedness evidenced by the Promissory Note, as modified by this Agreement
remains outstanding or as long as Bank remains obligated to make advances, the
undersigned shall furnish annually an updated financial statement in a form
satisfactory to Bank, which, when delivered shall be the property of the
Bank.  Further, the undersigned agree to provide any and all documentation
requested by the Bank in order to verify the identity of the undersigned in
accordance with the USA Patriot Act.

(SIGNATURES ON FOLLOWING PAGE)

 

Page 3 of 4

 
 

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 Exhibit 10(a)

 
BB&T

NOTE MODIFICATION SIGNATURE PAGE

Borrower:  DELTA NATURAL GAS COMPANY, INC.
     
Account Number:    9580219605
Note Number:    00003
   
Modification Amount:    $40,000,000.00
Modification Date:     JUNE 30, 2011

IN WITNESS WHEREOF, the undersigned, on the day and year first written above,
has caused this instrument to be executed

If Borrower is a Corporation:

WITNESS:
DELTA NATURAL GAS COMPANY, INC.
 
(Name of Corporation)
   
___/s/W. Harvey Coggin____________________________________
By:  ____/s/Glenn R. Jennings_________________________________
     
Title:  Glenn R. Jennings, President
   
_______________________________________________________
By:  _____________________________________________________
     
Title:  ____________________________________________________
   

If Borrower is a Partnership, Limited Liability Company, Limited Liability
Partnership,
Or Limited Liability Limited Partnership:

WITNESS:
________________________________________________________
 
NAME OF PARTNERSHIP, LLC, LLP OR LLLP
   
_______________________________________________________
By:  _____________________________________________________
     
Title: ____________________________________________________
   
_______________________________________________________
By:  _____________________________________________________
     
Title: ____________________________________________________
   
_______________________________________________________
By:  _____________________________________________________
     
Title:  ____________________________________________________

If Borrower is an Individual:

WITNESS:
         
_______________________________________________________
 _______________________________________________________
       

Additional Borrowers and Debtors/Grantors/Guarantors:

WITNESS:
         
_______________________________________________________
 _______________________________________________________
       
_______________________________________________________
________________________________________________________
       
_______________________________________________________
________________________________________________________
       
_______________________________________________________
________________________________________________________
       
_______________________________________________________
________________________________________________________
   

 
Page 4 of 4

 
 

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 Exhibit 10(a)

BB&T
ADDENDUM TO PROMISSORY NOTE

THIS ADDENDUM TO PROMISSORY NOTE (“Addendum”) is hereby made a part of the
Promissory Note dated 10/31/2002 from DELTA NATURAL GAS COMPANY, INC.
(“Borrower”) payable to the order of Branch Banking and Trust Company (“Bank”)
in the principal amount of $40,000,000.00 (including all renewals, extensions,
modifications and substitutions therefore, the “Note”).  This Addendum amends,
restates and replaces in its entirety that certain Addendum to Promissory Note
executed by Borrower on or about 6/30/2009, as modified, amended or extended.

I.  
DEFINITIONS.

1.1  Adjusted LIBOR Rate means a rate of interest per annum equal to the sum
obtained (rounded upwards, if necessary, to the next higher 1/16th of 1.0%) by
adding (i) the One Month LIBOR plus (ii) 1.15% per annum, which shall be
adjusted monthly on the first day of each LIBOR Interest Period.  The Adjusted
LIBOR Rate shall be adjusted for any change in the LIBOR Reserve Percentage so
that Bank shall receive the same yield.  The interest rate will in no instance
exceed the maximum rate permitted by applicable law and if checked here * the
interest rate will not decrease below a fixed minimum rate of _____%.  If
checked here * the interest rate will not exceed * a fixed maximum rate of
________________% or * an average maximum rate of _____%.  If an average maximum
rate is specified, a determination of any required reimbursement of interest by
Bank will be made:  * when Note is repaid in full by Borrower * annually
beginning __________________.  If the loan has been repaid prior to this date,
no reimbursement will be made.

1.2  Business Day means a day other than a Saturday, Sunday, legal holiday or
any other day when the Bank is authorized or required by applicable law to be
closed.

1.3  LIBOR Advance means the advances made by Bank to Borrower evidenced by this
Note upon which the Adjusted LIBOR Rate of Interest shall apply.

1.4  LIBOR Interest Period means the period, as may be elected by the Borrower
applicable to any LIBOR Advance, commencing on the date the Note is first made
(or the date of any subsequent LIOR addendum to the Note) and ending on the day
that is immediately prior to the numerically corresponding day of each month
thereafter; provided that:

(a)  any LIBOR Interest Period which would otherwise end on a day which is not a
Business Day shall be extended to the next succeeding Business Day unless such
Business Day falls in another calendar month, in which case such LIBOR Interest
Period shall end on the next preceding Business Day; and

(b)  any LIBOR Interest Period which begins on a day for which there is no
numerically corresponding day in the subsequent month shall end on the last
Business Day of each subsequent month.

1.5  LIBOR Reserve Percentage means the maximum aggregate rate at which reserves
(including, without limitation, any marginal supplemental or emergency reserves)
are required to be maintained under Regulation D by member banks of the Federal
Reserve System with respect to dollar funding in the London interbank
market.  Without limiting the effect of the foregoing, the LIBOR Reserve
Percentage shall reflect any other reserves required to be maintained by such
member banks by reason of any applicable regulatory change against (i) any
category of liability which includes deposits by reference to which the Adjusted
LIBOR Rate is to be determined or (ii) any category of extensions of credit or
other assets related to LIBOR.

1.6  One Month LIBOR means the average rate quoted on Reuters Screen LIBOR01
Page (or such replacement page) on the determination date for deposits in U.S.
Dollars offered in the London interbank market for one month determined as of
11:00 a.m. London time two (2) Business Days prior to the commencement of the
applicable LIBOR Interest Period; provided that if the above method for
determining one-month LIBOR shall not be available, the rate quoted in The Wall
Street Journal, or a rate determined by a substitute method of determination
agreed on by Borrower and Bank; provided further that if such agreement is not
reached within a reasonable period of time (in Bank’s sole judgment), a rate
reasonably determined by Bank in its sole discretion as a rate being paid, as of
the determination date, by first class banking organizations (as determined by
Bank) in the London interbank market for U.S. Dollar deposits.

1.7  Standard Rate means, for any day, a rate per annum equal to the Bank’s
announced Prime Rate minus ______% per annum, and each change in the Standard
Rate shall be effective on the date any change in the Prime Rate is publicly
announced as being effective.

II.  
LOAN BEARING ADJUSTED LIBOR RATE

2.1  Application of Adjusted LIBOR Rate.  The Adjusted LIBOR Rate shall apply to
the entire principal balance outstanding of a LIBOR Advance for any LIBOR
Interest period.

2.2  Adjusted LIBOR Based Rate Protections.

(a)  Inability to Determine Rate.  In the event that Bank shall have determined,
which determination shall be final, conclusive and binding, that by reason of
circumstances occurring after the date of this Note affecting the London
interbank market, adequate and fair means do not exist for ascertaining the One
Month LIBOR on the basis provided for in this Note, Bank shall give notice (by
telephone confirmed in writing or by telecopy) to Borrower of such
determination, whereupon (i) no LIBOR Advance shall be made until Bank notifies
Borrower that the circumstances giving rise to such notice no longer exist, and
(ii) any request by Borrower for a LIBOR Advance shall be deemed to be a request
for an advance at the Standard Rate.

(b)  Illegality; Impracticability.  In the event that Bank shall determine,
which determination shall be final, conclusive and binding, that the making,
maintaining or continuance of any portion of a LIBOR Advance (i) has become
unlawful as a result of compliance by Bank with any law, treaty, governmental
rule, regulation, guideline or order (or would conflict with any of the same not
having the force of law even though the failure to comply therewith would not be
unlawful) or (ii) has become impracticable, or would cause Bank material
hardship, as a result tof contingencies occurring after the date of this Note
materially and adversely affect the London interbank market or Bank’s ability to
make LIBOR Advances generally, then, and in any such event, Bank shall give
notice (by telephone confirmed in writing or by telecopy) to Borrower of such
determination.  Thereafter, (x) the obligation of Bank to make any LIBOR
Advances or to convert any portion of the loan to a LIBOR Advance shall be
suspended until such notice shall be withdrawn by Bank and (y) any request by
Borrower for a LIBOR Advance shall be deemed to be a request for an advance at
the Standard Rate.

This Addendum shall operate as a sealed instrument.

 

 
Page 1 of 2

 
 

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 Exhibit 10(a)

If Borrower Is a Corporation:

WITNESS:
DELTA NATURAL GAS COMPANY, INC.
 
(Name of Corporation)
   
/s/W. Harvey
Coggin                                                                                       
 
By:/s/ Glenn R.
Jennings                                                                    
(SEAL)
       
W. Harvey
Coggin                                                                                            
 
Glenn R.
Jennings                                                                                  
(Print Name)
(Print Name)
     
Title:  President
   
_______________________________________________________
By:  _______________________________________________ (SEAL)
 
      (Print Name)
   
_______________________________________________________
Title:  ______________________________________________
(Print Name)
 

If Borrower is a Partnership, Limited Liability Company, Limited Liability
Partnership,
Or Limited Liability Limited Partnership
                                                          

   ______________________________________________________    Name of
Partnership, LLC, LLP, or LLLP
WITNESS:
     
_______________________________________________________
By:  _______________________________________________ (SEAL)
       
_______________________________________________________
_________________________________________________________
(Print Name)
(Print Name)
     
Title:  ____________________________________________________
       
_______________________________________________________
By:  _______________________________________________ (SEAL)
       
_______________________________________________________
_________________________________________________________
(Print Name)
(Print Name)
     
Title:  ____________________________________________________
       
_______________________________________________________
By:  _______________________________________________ (SEAL)
       
_______________________________________________________
_________________________________________________________
(Print Name)
(Print Name)
     
Title:  ____________________________________________________
   

If Borrower is an Individual:

WITNESS:
     
_______________________________________________________
___________________________________________________ (SEAL)
       
_______________________________________________________
 
(Print Name)
 

Additional Co-makers:

WITNESS:
     
_______________________________________________________
___________________________________________________ (SEAL)
       
_______________________________________________________
 
(Print Name)
         
_______________________________________________________
___________________________________________________ (SEAL)
       
_______________________________________________________
 
(Print Name)
         
_______________________________________________________
___________________________________________________ (SEAL)
       
_______________________________________________________
 
(Print Name)
   
Page 2 of 2

 
 

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 Exhibit 10(a)

9580219605
                                                               Account Number

SIXTH AMENDMENT TO LOAN AGREEMENT

THIS SIXTH AMENDMENT TO LOAN AGREEMENT ("Sixth Amendment") is made this 30th day
of June, 2011, by and among Delta Natural Gas Company, Inc., a Kentucky
Corporation ("Borrower") and BRANCH BANKING AND TRUST COMPANY, a North Carolina
banking corporation ("Bank"), having a branch office in Lexington,
Kentucky.  This Sixth Amendment amends and supplements that Loan Agreement dated
October 31, 2002 (as amended, the "Loan Agreement"), among the Borrower and the
Bank, and unless otherwise defined in this Sixth Amendment, capitalized terms
shall have the definitions given them in the Loan Agreement. The Loan Agreement
has been previously amended and such amendments include, but are not limited to,
that certain Modification Agreement by and between Borrower and Bank, dated on
or about (i) October 31, 2003, (ii) October 31, 2004, and (iii) August 12, 2005,
and (iv) October 31, 2007 and (v) June 30, 2009.

RECITALS
A.           Pursuant to the terms and conditions of the Loan Agreement, the
Bank made a Line of Credit in the original principal amount of $40,000,000 (the
"Line of Credit"), evidenced by the Borrower's Promissory Note dated October 31,
2002 (the "Note"), payable to the order of the Bank and bearing interest as set
forth therein, each as amended, restated, replaced, modified or extended.

B.           At the request of the Borrower, the Bank has agreed to extend the
maturity of the Note until June 30, 2013, subject to the provisions of the Loan
Agreement, as amended by this Sixth Amendment, and as evidenced by the
Borrower’s Note Modification Agreement and Addendum to Promissory Note dated of
even date herewith in the form of Exhibit A hereto (including any and all
renewals, extensions, modifications and substitutions thereof, the “Restated
Note”).

THEREFORE, in consideration of the foregoing recitals and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

I.   AMENDMENTS TO LOAN AGREEMENT

The Loan Agreement is amended as hereinafter described:

1.01  
In the paragraph on page 1 of the Loan Agreement, titled “Line of Credit”, the
date “October 31, 2003” is hereby deleted and the date “June 30, 2013” is
inserted in lieu thereof.

1.02.1.  
In Section 5 “Remedies Upon Default” on page 2 of the Loan Agreement, “Section
5.02” shall be amended as follows:

5.02.  Require the Borrower to pledge collateral, equally and ratably, to the
Bank and to the holders of the Long-Term Debt (defined below) from the
Borrower's assets and properties, the acceptability and sufficiency of such
collateral to be determined in the Bank's sole discretion.  The Borrower has 
 issued its 7.00% Debentures Due February 1, 2023 and its 5.75% Insured
Quarterly Notes due April 1, 2021 (collectively, the "Long-Term Debt"), which
require the Borrower to secure the Long-Term Debt with the same collateral it
pledges in favor of the Bank.

1.02.2.  
In Section 6 “Negative Covenants” on page 3 of the Loan Agreement, “Section
6.05” shall be added as follows:

6.05.  Defaults.  Pursuant to Section 4.04 herein, suffer an Event of Default
under any of the Borrower's Long-Term Debt (as defined in Section 5.02) (a
"Cross Default").   In the event of a Cross Default, and pursuant to Section
5.02 herein, Bank, at its option, may require Borrower to provide security for
the Loan.

 
 

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 Exhibit 10(a)

II. REPRESENTATIONS AND WARRANTIES

The Borrower represents and warrants (which representations and warranties shall
survive the execution hereof) to the Bank that:

2.1.   The representations and warranties made by the Borrower in Section 2 of
the Loan Agreement and the other Loan Documents are true and correct on and as
of the date hereof as though made on the date hereof.

2.2.   All financial statements, reports and information delivered to the Bank
by the Borrower fairly represented the financial condition of the Borrower as of
the dates thereof, and no material adverse change has occurred in its financial
condition, business or operations since the most recently delivered of such
financial statements and information.

2.3.   It is in full compliance with the covenants and agreements contained in
the Loan Agreement and the other Loan Documents, and no event of default exists
and remains unremedied thereunder as of the date hereof.

2.4.   When duly executed and delivered by Borrower, the Loan Agreement, as
amended hereby, the Restated Note and all other Loan Documents, all constitute
its legal, valid and binding obligations, enforceable against it in accordance
with their terms, and the Borrower hereby ratifies and affirms the Loan
Agreement, as amended hereby, and the other Loan Documents described above.

III.   CONDITIONS PRECEDENT

The obligation of the Bank to make advances under the Line to the Borrower
pursuant to the Loan Agreement, as amended hereby, is subject to the condition
that the Bank first shall have received in a form and substance satisfactory to
the Bank and its counsel the following:

3.1.   Delivery of Sixth Amendment and Restated Note.  Duly executed copies of
this Sixth Amendment, the Note Modification Agreement and the Addendum to
Promissory Note (Exhibit A).

3.2.   Other Assurances.   Other assurances and documents as may be required by
the Bank.

IV.   MISCELLANEOUS COVENANTS

4.1.   Governing Law.  This Amendment and the Loan Documents shall all be deemed
to be contracts made under and shall be construed in accordance with the laws of
the Commonwealth of Kentucky.

4.2.   Continuing Effect.  Other than as expressly amended and supplemented
hereby, the Loan Agreement shall remain unchanged in full force and effect.

IN WITNESS WHEREOF, the Borrower and the Bank have caused this instrument to be
executed by their duly authorized officers as of the day and year first above
written.

Borrower:

DELTA NATURAL GAS COMPANY, INC.

/s/W. Harvey
Coggin                                                  By    /s/Glenn R.
Jennings                                                       
Witness                                                                        
Name/Title: Glenn R. Jennings, President
 
 
Bank:

BRANCH BANKING AND TRUST COMPANY

/s/Karol Mattmiller                                 
                             By   /s/W. Harvey
Coggin                                                                   
Witness                                                                       
Name/Title: W. Harvey Coggin, Senior Vice President