Document:

Employment Agreement

 Exhibit 10.2 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (this
“Agreement”) between Vermillion, Inc., a Delaware corporation (the “Company”), and William Creech (“Executive,” and together with the Company, the “Parties”) is effective as of April 4, 2012 (the
“Effective Date”). 
 WHEREAS, the Company and Executive desire to enter into a Employment Agreement; 

NOW, THEREFORE, the Parties agree as follows: 
 1. Position. The Company will continue to employ Executive as its Vice President, Sales and Marketing. In this position, Executive will be expected to devote Executive’s full business time,
attention and energies to the performance of Executive’s duties with the Company. Executive may devote time to outside Board or advisory positions as pre-approved by the Company’s Board of Directors. Executive will render such business and
professional services in the performance of such duties, consistent with Executive’s position within the Company, as shall be reasonably assigned to Executive by the Company’s CEO or Board of Directors. 

2. Compensation. The Company will pay Executive a base salary of at least $225,000 on an annualized basis, payable in accordance with the
Company’s standard payroll policies, including compliance with applicable tax withholding requirements. In addition, Executive will be eligible for a bonus of up to 40% of Executive’s base salary for achievement of reasonable
performance-related goals to be defined by the Company’s CEO or Board of Directors. The exact payment terms of a bonus, if any, are to be set by the Compensation Committee of the Board of Directors, in its sole discretion. Any such bonus will
be payable to Executive within 30 days of receipt by the Compensation Committee of the Board of Directors of the Company’s final year-end financial statements. 
 3. Benefits. During the term of Executive’s employment, Executive will be entitled to the Company’s standard benefits covering employees at Executive’s level, including the
Company’s group medical, dental, vision and term life insurance plans, section 125 plan, employee stock purchase plan and 401(k) plan, as such plans maybe in effect from time to time, subject to the Company’s right to cancel or change the
benefit plans and program it offers to its employees at any time. 
 4. At-Will Employment. Executive’s employment with the Company
is for an unspecified duration and constitutes “at will” employment. This employment relationship may be terminated at any time, with or without good cause or for any or no cause, at the option either of the Company or Executive, with or
without notice. 
 5. Termination without Cause or for Good Reason. In the event the Company terminates Executive’s employment for
reasons other than for Cause (as defined below) or Executive terminates his employment for Good Reason (as defined below) and provided that Executive signs and does not revoke a standard separation agreement release of all claims against the
Company, in a form reasonably satisfactory to the Company, does not breach any provision of 

 
this Agreement (including but not limited to Section 10 and Section 11 hereof), and continues to comply with the PIIA, as hereinafter defined, Executive shall be entitled to receive,
subject to Section 13 below: 
 (a) continued payment of Executive’s base salary as then in effect for a period of
nine (9) months following the date of termination (the “Severance Period”), to be paid periodically in accordance with the Company’s standard payroll practices, provided that you shall immediately repay to the Company any amounts
that you receive hereunder if within sixty days following termination of your employment you either have failed to execute the standard release described above or have revoked the general release after you execute it; 

(b) immediate, accelerated vesting of fifty percent (50%) of any then-unvested options previously granted by the Company to
Executive; additionally, Executive will have a twenty-four (24) month period following the date of termination of employment to exercise any or all of his vested options, subject for each option to earlier expiration at the end of the
option’s original term; and 
 (c) continuation of Company health and dental benefits through COBRA premiums paid by the
Company directly to the COBRA administrator during the Severance Period; provided, however, that such premium payments shall cease prior to the end of the Severance Period if Executive commences other employment with reasonably comparable or greater
health and dental benefits. 
 Executive will not be eligible for any bonus or other benefits not described above after
termination, except as may be required by law. 
 6. Termination after Change of Control. If Executive’s employment is terminated by
the Company for reasons other than for Cause (as defined below) or by Executive for Good Reason (as defined below) within the twelve (12) month period following a Change of Control (as defined below), then, in addition to the severance
obligations due to Executive under Section 5 above, fifty percent (50%) of any then-unvested shares under Company stock options then held by Executive will vest upon the date of such termination and the period of time for their exercise
will be at the discretion of the Company, provided that no option shall be exercisable after expiration of its original term. It may very well be necessary for the Executive to exercise such shares on the day of Change in Control, and the Company
shall use its best efforts to provide Executive with a reasonable period of advance written notice in such event. 

  
 2 

 7. Definitions. For purposes of this Agreement: 

(a) “Cause” means termination of employment by reason of Executive’s: 

(i) material breach of this Agreement, the Proprietary Information and Inventions Agreement entered into between Executive and the
Company (the “PIIA”) or any other confidentiality, invention assignment or similar agreement with the Company; 

(ii) repeated negligence in the performance of duties or nonperformance or misperformance of such duties that in the good faith judgment
of the Board of Directors of the Company adversely affects the operations or reputation of the Company; 
 (iii) refusal to
abide by or comply with the good faith directives of the Company’s CEO or Board of Directors or the Company’s standard policies and procedures, which actions continue for a period of at least ten (10) days after written notice from
the Company; 
 (iv) violation or breach of the Company’s Code of Ethics, Financial Information Integrity Policy, Insider
Trading Compliance Program, or any other similar code or policy adopted by the Company and generally applicable to the Company’s employees, as then in effect; 
 (v) willful dishonesty, fraud, or misappropriation of funds or property with respect to the business or affairs of the Company; 
 (vi) conviction by or entry of a plea of guilty or nolo contendere, in a court of competent and final jurisdiction, for any crime which constitutes a felony in the jurisdiction involved; or 

(vii) abuse of alcohol or drugs (legal or illegal) that, in the Board of Director’s reasonable judgment, materially impairs
Executive’s ability to perform Executive’s duties. 
 (b) “Change of Control” means: 

(i) after the date hereof, any “person.” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”)) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting power
represented by the Company’s then outstanding voting securities; or 
 (ii) the date of the consummation of a merger or
consolidation of the Company with any other corporation or entity that has been approved by the stockholders of the Company, other than a merger or consolidation that would result in the voting securities of the Company outstanding immediately prior
thereto continuing to represent more than fifty percent 

  
 3 

 
(50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or 

(iii) the date of the consummation of the sale or disposition of all or substantially all of the Company’s assets. 

(c) “Good Reason” means, the occurrence of any one or more of the following events, without Executive’s consent,
which continues uncured for a period of not less than thirty (30) days following written notice given by Executive to the Company within thirty (30) days following the occurrence of a material and adverse change in Executive’s title
or duties (excluding any changes in such duties resulting from the Company becoming part of a larger entity pursuant to a Change of Control) or in Executive’s base salary. 

In addition, Executive must actually terminate Executive’s employment with the Company within six months following the initial
existence of the condition described above giving rise to Good Reason. 
 (d) “Separation from Service” or
“Separates from Service” shall mean Executive’s termination of employment, as determined in accordance with Treas. Reg. § 1.409A-1(h). Executive shall be considered to have experienced a termination of employment when the
facts and circumstances indicate that Executive and the Company reasonably anticipate that either (i) no further services will be performed for the Company after a certain date, or (ii) that the level of bona fide services Executive will
perform for the Company after such date (whether as an employee or as an independent contractor) will permanently decrease to no more than 20% of the average level of bona fide services performed by Executive (whether as an employee or independent
contractor) over the immediately preceding 36-month period (or the full period of services to the Company if Executive has been providing services to the Company for less than 36 months). If Executive is on military leave, sick leave, or other bona
fide leave of absence, the employment relationship between Executive and the Company shall be treated as continuing intact, provided that the period of such leave does not exceed six months, or if longer, so long as Executive retains a right to
reemployment with the Company under an applicable statute or by contract. If the period of a military leave, sick leave, or other bona fide leave of absence exceeds six months and Executive does not retain a right to reemployment under an applicable
statute or by contract, the employment relationship shall be considered to be terminated for purposes of this Agreement as of the first day immediately following the end of such six-month period. In applying the provisions of this paragraph, a leave
of absence shall be considered a bona fide leave of absence only if there is a reasonable expectation that Executive will return to perform services for the Company. 
 8. Employment, Confidential Information and Invention Assignment Agreement. As a condition of Executive’s employment, Executive shall complete, sign and return the Company’s standard form
of Proprietary Information and Inventions Agreement. 

  
 4 

 9. Non Contravention. Executive represents to the Company that Executive’s signing of this
Agreement, the PIIA, the issuance of stock options to Executive, and Executive’s commencement of employment with the Company does not violate any agreement Executive has with Executive’s previous employer and Executive’s signature
confirms this representation. 
 10. Conflicting Employment. Executive agrees that, during the term of Executive’s employment with
the Company and during the Severance Period, Executive will not engage in any other employment, occupation, consulting or other business activity competitive with or directly related to the business in which the Company is now involved or becomes
involved during the term of Executive’s employment, nor will Executive engage in any other activities that conflict with Executive’s obligations to the Company. Executive acknowledges that compliance with the obligations of this paragraph
is a condition to Executive’s right to receive the severance payments set forth in paragraph 5 above. 
 11. Nonsolicitation. From
the date of this Agreement until 12 months after the termination of this Agreement (the “Restricted Period”), Executive will not, directly or indirectly, solicit or encourage any employee or contractor of the Company or its affiliates to
terminate employment with, or cease providing services to, the Company or its affiliates. During the Restricted Period, Executive will not, whether for Executive’s own account or for the account of any other person, firm, corporation or other
business organization, solicit or interfere with any person who is or during the period of Executive’s engagement by the Company was a collaborator, partner, licensor, licensee, vendor, supplier, customer or client of the Company or its
affiliates to the Company’s detriment. Executive acknowledges that compliance with the obligations of this paragraph is a condition to Executive’s right to receive the severance payments set forth in paragraph 5 above. 

12. Arbitration and Equitable Relief. 
 (a) In consideration of Executive’s employment with the Company, its promise to arbitrate all employment related disputes and Executive’s receipt of the compensation and other benefits paid to
Executive by the Company, at present and in the future, EXECUTIVE AGREES THAT ANY AND ALL CONTROVERSIES, CLAIMS, OR DISPUTES WITH ANYONE (INCLUDING THE COMPANY AND ANY EMPLOYEE, OFFICER, DIRECTOR, STOCKHOLDER OR. BENEFIT PLAN OF THE COMPANY IN THEIR
CAPACITY AS SUCH OR OTHERWISE) ARISING OUT OF, RELATING TO, OR RESULTING FROM EXECUTIVE’S EMPLOYMENT WITH THE COMPANY OR THE TERMINATION OF EXECUTIVE’S EMPLOYMENT WITH THE COMPANY, INCLUDING ANY BREACH OF THIS AGREEMENT, SHALL BE SUBJECT
TO BINDING ARBITRATION UNDER THE ARBITRATION RULES SET FORTH IN TEXAS CIVIL PRACTICE AND REMEDY CODE SECTION 171.001 THROUGH SECTION 171.098 (THE “RULES”) AND PURSUANT TO TEXAS LAW. Disputes which Executive agrees to arbitrate, and thereby
agree to waive any right to a trial by jury, include any statutory claims under state or federal law, including, but not limited to, claims under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Age
Discrimination in Employment Act of 1967, the Older Workers 

  
 5 

 
Benefit Protection Act, the California Fair Employment and Housing Act, the California Labor Code, claims of harassment, discrimination or wrongful termination and any statutory claims. Executive
further understands that this agreement to arbitrate also applies to any disputes that the Company may have with Executive, 

(b) Executive agrees that any arbitration will be administered by the American Arbitration Association (“AAA”) and that the
neutral arbitrator will be selected in a manner consistent with its National Rules for the Resolution of Employment Disputes. Executive agrees that the arbitrator shall have the power to decide any motions brought by any party to the arbitration,
including motions for summary judgment and/or adjudication and motions to dismiss and demurrers, prior to any arbitration hearing. Executive also agrees that the arbitrator shall have the power to award any remedies, including attorneys’ fees
and costs, available under applicable law. Executive understands the Company will pay for any administrative or hearing fees charged by the arbitrator or AAA except that Executive shall pay the first $125.00 of any filing fees associated with any
arbitration Executive initiates. Executive agrees that the arbitrator shall administer and conduct any arbitration in a mariner consistent with the Rules and that to the extent that the AAA’s National Rules for the Resolution of Employment
Disputes conflict with the Rules, the Rules shall take precedence. Executive agrees that the decision of the arbitrator shall be in writing. 
 (c) Except as provided by the Rules and this Agreement, arbitration shall be the sole, exclusive and final remedy for any dispute between Executive and the Company. Accordingly, except as provided for by
the Rules and this Agreement, neither Executive nor the Company will be permitted to pursue court action regarding claims that are subject to arbitration. Notwithstanding, the arbitrator will not have the authority to disregard or refuse to enforce
any lawful company policy, and the arbitrator shall not order or require the Company to adopt a policy not otherwise required by law which the Company has not adopted. 
 (d) In addition to the right under the Rules to petition the court for provisional relief, Executive agrees that any party may also petition the court for injunctive relief where either party alleges or
claims a violation of the PIIA between Executive and the Company or any other agreement regarding trade secrets, confidential information, nonsolicitation or Labor Code §2870. Executive understands that any breach or threatened breach of such
an agreement will cause irreparable injury and that money damages will not provide an adequate remedy therefor and both parties hereby consent to the issuance of an injunction. In the event either party seeks injunctive relief, the prevailing party
shall be entitled to recover reasonable costs and attorneys fees. 
 (e) Executive understands that this Agreement does not
prohibit Executive from pursuing an administrative claim with a local, state or federal administrative body such as the Department of Fair Employment and Housing, the Equal Employment Opportunity Commission or the Workers’ Compensation Board.
This Agreement does, however, preclude Executive from pursuing court action regarding any such claim. 

  
 6 

 (f) Executive acknowledges and agrees that Executive is executing this Agreement
voluntarily and without any duress or undue influence by the Company or anyone else. Executive further acknowledges and agrees that Executive has carefully read this Agreement and that Executive has asked any questions needed for Executive to
understand the terms, consequences and binding effect of this Agreement and fully understand it, including that Executive is waiving Executive’s right to a jury trial. Finally, Executive agrees that Executive has been provided an opportunity to
seek the advice of an attorney of Executive’s choice before signing this Agreement. 
 13. Taxes. All payments made pursuant to this
Agreement will be subject to withholding of applicable taxes. Notwithstanding the foregoing, Executive is solely responsible and liable for the satisfaction of any federal, state, province or local taxes that may arise with respect to this Agreement
(including any taxes arising under Section 409A of the Internal Revenue Code (the “IRC”). Neither the Company nor any of its employees, officers, directors, or service providers shall have any obligation whatsoever to pay such taxes,
to prevent Executive from incurring them, or to mitigate or protect Executive from any such tax liabilities. Notwithstanding anything in this Agreement to the contrary, if any amounts that become due under this Agreement on account of
Executive’s termination of employment constitute “nonqualified deferred compensation” within the meaning of IRC Section 409A, payment of such amounts shall not commence until Executive incurs a Separation from Service. If, at the
time of Executive’s termination of employment under this Agreement, Executive is a “specified employee” (within the meaning of IRC Section 409A), any amounts that constitute “nonqualified deferred compensation” within
the meaning of IRC Section 409A that become payable to Executive on account of Executive’s Separation from Service (including any amounts payable pursuant to the preceding sentence) will not be paid until after the end of the sixth
calendar month beginning after Executive’s Separation from Service (the “409A Suspension Period”). Within 14 calendar days after the end of the 409A Suspension Period, Executive shall be paid a lump sum payment in cash equal to any
payments delayed because of the preceding sentence. Thereafter, Executive shall receive any remaining benefits as if there had not been an earlier delay. Each payment due under this Agreement is treated as a separate payment for purposes of Treasury
Regulations Sections 1.409A-1((b)(4)(F) and 1.409A-2(b)(2). 
 14. Successors of the Company. The rights and obligations of the Company
under this Agreement shall inure to the benefit of, and shall be binding upon, the successors and assigns of the Company. This Agreement shall be assignable by the Company in the event of a merger or similar transaction in which the Company is not
the surviving entity, or of a sale of all or substantially all of the Company’s assets. 
 15. Enforceability; Severability. If any
provision of this Agreement shall be invalid or unenforceable, in whole or in part, such provision shall be deemed to be modified or restricted to the extent and in the manner necessary to render the same valid and enforceable, or shall be deemed
excised from this Agreement, as the case may require, and this Agreement shall be construed and enforced to the maximum extent permitted by law as if such provision had been 

  
 7 

 
originally incorporated herein as so modified or restricted, or as if such provision had not been originally incorporated herein, as the case may be. 

16. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Texas without giving effect to Texas
choice of law rules. This Agreement is deemed to be entered into entirely in the State of Texas. This Agreement shall not be strictly construed for or against either party. 
 17. No Waiver. No waiver of any term of this Agreement constitutes a waiver of any other term of this Agreement. 
 18. Amendment To This Agreement. This Agreement may be amended only in writing by an agreement specifically referencing this Agreement, which is signed by both Executive and an executive officer or
member of the Board of Directors of the Company authorized to do so by the Board by resolution. 
 19. Headings. Section headings in this
Agreement are for convenience only and shall be given no effect in the construction or interpretation of this Agreement. 
 20. Notice.
All notices made pursuant to this Agreement, shall be given in writing, delivered by a generally recognized overnight express delivery service, and shall be made to the following addresses, or such other addresses as the Parties may later designate
in writing: 
 If to the Company: 
 Vermillion, Inc. 
 12117 Bee Caves Road, Building Three, Suite 100 

Austin, Texas, 78738 
 If to Executive: 
 [Redacted] 

21. Expense Reimbursement. The Company shall promptly reimburse Executive reasonable business expenses incurred by Executive in furtherance of or
in connection with the performance of Executive’s duties hereunder, including expenditures for travel, in accordance with the Company’s expense reimbursement policy as in effect from time to time; provided that any and all reimbursements
hereunder shall be requested and made within one year after being incurred. 
 22. General; Conflict. This Agreement and the PIIA, when
signed by Executive, set forth the terms of Executive’s employment with the Company and supersede any and all prior representations and agreements, whether written or oral. 

[Signature Page Follows] 

  
 8 

 
			
	VERMILLION, INC.
	a Delaware corporation
		
	By:	 	 /s/ Gail S. Page

	Name:	 	Gail S. Page
	Title:	 	Chief Executive Officer

  

	
	ACCEPTED AND AGREED TO this
	4th day of April, 2012.
	
	 /s/ William Creech

	William Creech

  
 9EX-10.72

 Exhibit 10.72 
 EXECUTION COPY 
  

 
 NORTHEAST
OHIO NATURAL GAS CORP. 
 ORWELL NATURAL
GAS COMPANY 
 BRAINARD GAS CORP. 

SECOND AMENDMENT AND WAIVER TO NOTE
PURCHASE AGREEMENT 
 Dated as of April 9, 2012 

Re: 
 Note
Purchase Agreement dated as of November 1, 2010, as heretofore amended 
 and 

Senior Secured Guaranteed Notes due June 1, 2017 
  

 
  

 TABLE OF CONTENTS 

(Not a part of this Second Amendment and Waiver to Note Purchase Agreement) 

 

							
	SECTION	  	HEADING	  	PAGE	 
	 SECTION 1.
	  	AMENDMENTS TO CURRENT NOTE PURCHASE AGREEMENT.	  	 	2	  
	 SECTION 2.
	  	LIMITED WAIVER	  	 	5	  
	 SECTION 3.
	  	CONDITIONS PRECEDENT	  	 	6	  
	 SECTION 4.
	  	REPRESENTATIONS AND WARRANTIES	  	 	7	  
	 SECTION 5.
	  	MISCELLANEOUS	  	 	8	  

  
 - i -

 NORTHEAST OHIO NATURAL GAS
CORP. 
 ORWELL NATURAL GAS COMPANY 

BRAINARD GAS CORP. 
 8500 STATION STREET, SUITE 100 

MENTOR, OHIO 44060 
 SECOND AMENDMENT AND WAIVER TO NOTE PURCHASE AGREEMENT 

Dated as of April 9, 2012 
 Re: Note Purchase Agreement dated as of November 1, 2010, as heretofore amended 

and 
 Senior
Secured Guaranteed Notes due June 1, 2017 
 To Sun Life Assurance Company of Canada 

Ladies and Gentlemen: 
 This
Second Amendment and Waiver to Note Purchase Agreement (this “Amendment”) is made as of April 9, 2012, by and among Northeast Ohio Natural Gas Corp., an Ohio corporation (“NEO”), Orwell Natural Gas Company, an
Ohio corporation (“Orwell”), Brainard Gas Corp., an Ohio corporation (“Brainard”; Brainard, NEO and Orwell are referred to herein, collectively, as the “Issuers” and, individually, as an
“Issuer”), Great Plains Natural Gas Company, an Ohio corporation (“Great Plains”), Lightning Pipeline Company, Inc., an Ohio corporation (“Lightning”), Spelman Pipeline Holdings, LLC, an Ohio
limited liability company (“Spelman”), Kidron Pipeline, LLC, an Ohio limited liability company (“Kidron”), Gas Natural Service Company, LLC, an Ohio limited liability company (“Service Company”),
and Gas Natural Inc., an Ohio corporation (the “Parent”; the Parent, Great Plains, Lightning, Spelman, Kidron and Service Company are referred to herein, collectively, as the “Guarantors” and, individually, as a
“Guarantor”), and Sun Life Assurance Company of Canada (the “Purchaser”). 
 Reference is made
to the Note Purchase Agreement dated as of November 1, 2010, by and among the Issuers, Great Plains, Lightning, the Parent and the Purchaser, as amended by that certain First Amendment and Joinder to Note Purchase Agreement dated as of
May 3, 2011, by and among the Issuers, the Guarantors and the Purchaser (as so amended, the “Current Note Purchase Agreement”), pursuant to which, among other things, (i) the Issuers sold to the Purchaser their 5.38%
Senior Secured Guaranteed Notes due June 1, 2017 in the original aggregate principal amount of $15,334,000 (the “Notes”) and (ii) each of the Guarantors agreed to jointly and severally guarantee the Guaranteed Obligations
(as defined therein). Capitalized terms used in this Amendment without definition shall have the meanings given such terms in the Current Note Purchase Agreement, as amended by this Amendment (as so amended, and as from time to time further amended,
restated, supplemented or otherwise modified, the “Note Purchase Agreement”). 

			
	Northeast Ohio Natural Gas Corp., et. al.	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Obligors request the amendment and
waiver of certain provisions of the Current Note Purchase Agreement as hereinafter provided. 
 Upon your acceptance hereof in
the manner hereinafter provided and upon satisfaction of all conditions to the effectiveness hereof and receipt by the Obligors of similar acceptances from the Purchaser, this Amendment shall be effective, but only in the respects hereinafter set
forth: 
 SECTION 1. AMENDMENTS TO CURRENT NOTE
PURCHASE AGREEMENT. 
 Section 1.1. Additional Obligors. Section 9.8 of the
Current Note Purchase Agreement is hereby amended by adding the following sentence to the end thereof: 

Notwithstanding the requirement to promptly comply with this Section 9.8, solely with respect to Gas Natural Energy
Solutions, LLC, an Ohio limited liability company (“Solutions”), and Independence Oil, LLC, an Ohio limited liability company (“Independence” and together with Solutions, the “New Subsidiaries”),
the Obligors shall be deemed to have timely complied with this Section 9.8 if, on or prior to May 31, 2012, such New Subsidiaries either (i) accede to this Agreement and the Collateral Documents in accordance with the first sentence
of this Section 9.8 or (ii) provide evidence detailing such Subsidiary’s inability to accede to this Agreement and the Collateral Documents in accordance with the second and third sentences of this Section 9.8. 

Section 1.2. Restricted Payments LC. Section 9 of the Current Note Purchase Agreement is hereby amended by adding a new
Section 9.11 at the end thereof as follows: 
 Section 9.11. Restricted Payments
LC. On or prior to May 15, 2012, the Purchaser shall have received delivery of an original irrevocable standby letter of credit (the “LC”) from PNC Bank, National Association or another bank reasonably acceptable to the
Purchaser (the “LC Issuer”), along with duly executed copies of any reimbursement agreement and any other documentation between any Obligor and the LC Issuer with respect to the LC, which LC shall include the following
terms: (i) shall be in favor of Sun Life Assurance Company of Canada; (ii) shall be in a face amount of $750,000; (iii) may be drawn upon by Sun Life Assurance Company of Canada if and when any Event of Default has occurred and is
continuing; (iv) shall remain outstanding until the earlier to occur of (x) the date on which (A) the aggregate amount of all Restricted Payments, determined as of the end of each fiscal quarter of the Parent for the four fiscal
quarters then ending, is less than 70% of the Obligor Net Income 

			
	Northeast Ohio Natural Gas Corp., et. al.	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

for the four fiscal quarters then ending, and (B) no Default or Event of Default then exists, each of which shall be confirmed in an Officer’s Certificate of a Senior Financial Officer
delivered to the Purchaser, or (y) the indefeasible payment in full of the Notes and all other Obligations under the Financing Agreements (the earlier of (x) and (y) shall be hereinafter referred to as the “LC Termination
Date”); and (v) shall otherwise be in form and substance reasonably acceptable to the Purchaser. Following the LC Termination Date, the LC shall terminate and the Purchaser shall return the LC to the LC Issuer within ten (10)
Business Days with instructions to cancel the undrawn portion of the LC. 
 Section 1.3. Restrictions on Dividends and
Distributions. Section 10.5 of the Current Note Purchase Agreement is hereby amended and restated in its entirety to read as follows: 
 Section 10.5. Restrictions on Dividends and Distributions. The Obligors shall not, and shall not permit any Restricted Subsidiary to, make any dividend, distribution, redemption or repurchase
(collectively, a “Restricted Payment”) with respect to the shares of capital stock or pursuant to any option, or put agreement (other than dividends and distributions which, in each case, consist solely of shares of capital stock)
if, (i) at the time of such Restricted Payment, an Event of Default or Default has occurred and is continuing or would be caused by such Restricted Payment, or (ii) with respect to the Obligors (other than the Parent), the Restricted
Payment would cause the aggregate amount of all Restricted Payments, determined as of the end of each fiscal quarter of the Parent for the four fiscal quarters then ending, to exceed seventy percent (70%) of the Obligor Net Income for the four
fiscal quarters then ending. 
 For the avoidance of doubt, the Obligors shall not, and shall
not permit any Restricted Subsidiary to, make any Restricted Payment at any time prior to the LC Termination Date. 

Section 1.4. Events of Default. Section 11(c) of the Current Note Purchase Agreement is hereby amended by deleting the
phrase “an Issuer” therein and adding the phrase “an Obligor” in lieu thereof. 
 Section 1.5.
Amendment to the defined term “Consolidated Coverage Ratio”. The definition of “Consolidated Coverage Ratio” set forth in Schedule B of the Current Note Purchase Agreement is hereby amended effective October 1,
2011 by deleting the term “Consolidated EBIT” therein and adding the term “Consolidated EBITDA” in lieu thereof. 

			
	Northeast Ohio Natural Gas Corp., et. al.	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

Section 1.6. Amendment to the defined term “Consolidated EBIT”. The definition of “Consolidated
EBIT” set forth in Schedule B of the Current Note Purchase Agreement is hereby amended effective October 1, 2011 by (i) renaming the term “Consolidated EBITDA” and (ii) amending and restating the definition
thereof in its entirety to read as follows: 
 “Consolidated EBITDA” means,
for any period, the sum of Consolidated Net Income, plus (to the extent deducted in computing Consolidated Net Income) the sum of (i) interest expense, (ii) any provision for federal, state and local income taxes,
(iii) depreciation and (iv) amortization, each of the foregoing determined on a consolidated basis for the Parent and its Subsidiaries in accordance with GAAP, but excluding from such calculation any extraordinary non-operating income or
loss and any gain or loss from any non-recurring transactions. 
 Section 1.7. Amendment to the defined term
“Consolidated Net Income”. The definition of “Consolidated Net Income” set forth in Schedule B of the Current Note Purchase Agreement is hereby amended effective October 1, 2011 by adding the following sentence at
the end thereof: 
 To the extent determined in the calculation thereof, all legal fees and expenses in
connection with the Obligors’ audit disagreement with the Public Utilities Commission of Ohio that were incurred by the Obligors during the fiscal year ended December 31, 2011 in an aggregate amount of up to $329,518, shall be excluded
from the determination of Consolidated Net Income for purposes of calculating the Obligors’ compliance with Section 10.4(b) for each testing period ending during such fiscal year. 

Section 1.8. Amendment to the defined term “Obligor Coverage Ratio”. The definition of “Obligor Coverage
Ratio” set forth in Schedule B of the Current Note Purchase Agreement is hereby amended effective October 1, 2011 by deleting the term “Obligor EBIT” therein and adding the term “Obligor EBITDA” in lieu thereof.

 Section 1.9. Amendment to the defined term “Obligor EBIT”. The definition of “Obligor
EBIT” set forth in Schedule B of the Current Note Purchase Agreement is hereby amended effective October 1, 2011 by (i) renaming the term “Obligor EBITDA” and (ii) amending and restating the definition
thereof in its entirety to read as follows: 
 “Obligor EBITDA” means, for any
period, the sum of Obligor Net Income, plus (to the extent deducted in computing Obligor Net Income) the sum of (i) interest expense, (ii) any provision for federal, state and local income taxes, (iii) depreciation and
(iv) amortization, each of the foregoing determined on a consolidated basis for the Obligors in accordance with GAAP, but excluding from such calculation any extraordinary non-operating income or loss and any gain or loss from any non-recurring
transactions. 

			
	Northeast Ohio Natural Gas Corp., et. al.	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

Section 1.10. Amendment to the defined term “Obligor Net Income”. The definition of “Obligor Net
Income” set forth in Schedule B of the Current Note Purchase Agreement is hereby amended effective October 1, 2011 by adding the following sentence at the end thereof: 

To the extent determined in the calculation thereof, all legal fees and expenses in connection with the Obligors’
audit disagreement with the Public Utilities Commission of Ohio that were incurred by the Obligors during the fiscal year ended December 31, 2011 in an aggregate amount of up to $329,518, shall be excluded from the determination of Obligor Net
Income for purposes of calculating the Obligors’ compliance with Section 10.4(a) for each testing period ending during such fiscal year. 
 Section 1.11. Amendment to add the new defined term “LC Termination Date”. Schedule B to the Current Note Purchase Agreement is hereby further amended by adding the following new
definition thereto in proper alphabetical order: 
 “LC Termination Date” is defined in Section 9.11.

 SECTION 2. LIMITED WAIVER . 

Section 2.1. Specified Defaults. 
 (a) Restrictions on Dividends and Distributions. The Obligors have advised the Purchaser that (i) an Event of Default has occurred and is continuing under Section 11(c) of the Current
Note Purchase Agreement for the fiscal year ending December 31, 2011 by reason of the Obligors making certain Restricted Payments during such fiscal year in the aggregate amount of $1,630,704.96 (the “2011 Payments”) that
exceeded 60% of Obligor Net Income for the fiscal year 2011 in violation of Section 10.5(ii) of the Current Note Purchase Agreement and (ii) a separate Event of Default has occurred and is continuing under Section 11(c) of the Current
Note Purchase Agreement by reason of the Obligors making certain additional Restricted Payments on January 31, 2012 in the aggregate amount of $135,892.08 (the “2012 Payments”, and together with the 2011 Payments, the
“Specified Payments”) at a time when an Event of Default was in existence in violation of Section 10.5(i) of the Note Purchase Agreement (the Events of Default described in the foregoing clauses (i) and (ii) are
collectively referred to as the “Section 10.5 Defaults”). 
 (b) Additional Obligors. The Obligors have
advised the Purchaser that an Event of Default has occurred and is continuing under Section 11(d) of the Current Note Purchase Agreement by reason of the Obligors’ failing to cause Independence and Solutions to timely accede to (or
demonstrate why such Subsidiaries cannot accede to) the Current Note Purchase Agreement and the Collateral Documents in violation of Section 9.8 of the Current Note Purchase Agreement (the “Section 9.8 Default” and together
with the Section 10.5 Defaults, the “Specified Defaults”). 
 Section 2.2. Waiver of Specified
Defaults. 

			
	Northeast Ohio Natural Gas Corp., et. al.	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

(a) Restrictions on Dividends and Distributions. Upon the effectiveness of this Amendment, the Purchaser hereby waives the
Section 10.5 Defaults. Upon the effectiveness of this Amendment, the Purchaser also hereby waives any Event of Default that may occur under Section 10.5(ii) of the Note Purchase Agreement for any of the fiscal quarters ending
March 31, 2012, June 30, 2012, September 30, 2012 and December 31, 2012 solely as a result of the Specified Payments (but no other Restricted Payments). For the avoidance of doubt, the Specified Payments shall be
included as “Restricted Payments” for all purposes under the Note Purchase Agreement, including, without limitation, (i) determining the aggregate amount of Restricted Payments as of March 31, 2012, June 30,
2012, September 30, 2012 and December 31, 2012 for the period of four fiscal quarters ending on each such date, that are permitted to be made under Section 10.5(ii) of the Note Purchase Agreement, and (ii) determining the LC
Termination Date. 
 (b) Additional Obligors. Upon the effectiveness of this Amendment, the Purchaser hereby waives the
Section 9.8 Default and, in exchange therefore, the Obligors hereby agree to timely comply with Section 9.8 of the Note Purchase Agreement. 
 Section 2.3. Limitation on Waiver. The foregoing waivers shall not constitute a waiver of any other existing or future Default, Event of Default, or other breach or violation of any term of
the Current Note Purchase Agreement, the Note Purchase Agreement or any of the Financing Agreements. Without limiting the foregoing, the Obligors hereby acknowledge and agree that the Purchaser’s execution of this Amendment shall not be
construed as a release, waiver, or modification of any of the terms, conditions, representations, warranties, covenants, rights, or remedies set forth in the Current Note Purchase Agreement or the other Financing Agreements, except as provided
herein. The foregoing waivers are not intended to, nor shall they, establish any course of dealing among the Obligors and the Purchaser and shall not constitute a continuing waiver of any kind. 

SECTION 3. CONDITIONS PRECEDENT . 

This Amendment shall not become effective until, and shall become effective on, the Business Day when each of the following conditions
shall have been satisfied (the “Effective Date”): 
 (a) The Purchaser shall have received this
Amendment, duly executed by each Obligor. 
 (b) The Purchaser shall have consented to this Amendment as
evidenced by its execution hereof. 
 (c) The representations and warranties of the Obligors set forth in
Section 4 hereof shall be true and correct as of the date of the execution and delivery of this Amendment and as of the Effective Date. 

			
	Northeast Ohio Natural Gas Corp., et. al.	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

(d) Any consents from any holder or holders of any outstanding security or indebtedness of the Obligors and any amendments
of agreements pursuant to which any securities or indebtedness may have been issued which shall be necessary to permit the consummation of the transactions contemplated hereby shall have been obtained and all such consents or amendments shall be
reasonably satisfactory in form and substance to the Purchaser and its special counsel. 
 (e) The Purchaser
shall have received all reasonable and necessary final, non-appealable regulatory and other approvals in respect of the transactions contemplated by this Amendment and evidence that in respect of the transactions contemplated by this Amendment, the
Obligors are in compliance with all applicable regulatory and statutory requirements. 
 (f) All corporate and
other proceedings in connection with the transactions contemplated by this Amendment and all documents and instruments incident to such transactions shall be satisfactory to the Purchaser and its special counsel, and the Purchaser and its special
counsel shall have received all such counterpart originals or certified or other copies of such documents as the Purchaser or its special counsel may reasonably request. 

(g) The Purchaser shall have received such certificates of officers of the Obligors as it may reasonably request with
respect to this Amendment and the transactions contemplated hereby. 
 (h) The Obligors shall have paid the fees
and disbursements of the Purchaser’s special counsel, Chapman and Cutler LLP, incurred in connection with (i) the negotiation, preparation, execution and delivery of this Amendment and the transactions contemplated hereby and (ii) the
negotiation and preparation of certain documents and agreements in connection with the potential issuance and sale to the Purchaser of additional senior secured guaranteed notes of the Issuers and the transactions contemplated thereby (which fees
and disbursements shall be reflected in the statement of such special counsel delivered to the Obligors at least one Business Day prior to the proposed Effective Date). 

(i) The Purchaser shall have received by wire transfer to its account specified in Schedule A to the Note Purchase
Agreement (or otherwise specified to the Obligors in a separate writing) a non-refundable amendment fee equal to $5,000. 

SECTION 4. REPRESENTATIONS AND WARRANTIES . 

The Obligors hereby, jointly and severally, represent and warrant to the Purchaser that as of the date of execution and delivery of this
Amendment and as of the Effective Date: 
 (a) Each Obligor is duly organized, validly existing and in good
standing under the laws of its jurisdiction of organization. 
 (b) Each Obligor has the requisite power to own
its property and to carry on its business as now being conducted. 

			
	Northeast Ohio Natural Gas Corp., et. al.	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

(c) Each Obligor is duly qualified and in good standing as a foreign corporation or limited liability company, as
applicable, authorized to do business in each jurisdiction in which the failure to do so would, individually or in the aggregate, have a Material Adverse Effect. 

(d) This Amendment, the Note Purchase Agreement and the transactions contemplated hereby are within the requisite powers
of each Obligor, have been duly authorized by all necessary corporate or limited liability company action, as applicable, on the part of each Obligor, and this Amendment and the Note Purchase Agreement have been duly executed and delivered by each
Obligor and constitute legal, valid and binding obligations of each Obligor enforceable in accordance with their respective terms. 
 (e) After giving effect to this Amendment, there are no Defaults or Events of Default under the Note Purchase Agreement. 

(f) The execution, delivery and performance of this Amendment and the Note Purchase Agreement do not and will not result
in a violation of or default under (i) the organizational documents of any Obligor, (ii) any agreement to which any Obligor is a party or by which any Obligor is bound or to which any Obligor or any of its properties is subject,
(iii) any order, writ, injunction or decree binding on any Obligor, or (iv) any statute, regulation, rule or other law applicable to any Obligor. 
 (g) No consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by the Obligors
of this Amendment. 
 (h) All of the representations and warranties of the Obligors set forth in Section 5
of the Current Note Purchase Agreement, other than those contained in Sections 5.3, 5.4, 5.5, 5.13, 5.14, 5.15 and the last sentence of Section 5.22, are true and correct in all respects. 

SECTION 5. MISCELLANEOUS . 
 Section 5.1. Ratification of the Current Note Purchase Agreement. Except as amended herein, all terms and provisions of the Current Note Purchase Agreement and related agreements and
instruments are hereby ratified, confirmed and approved in all respects. If and to the extent that any of the terms or provisions of the Current Note Purchase Agreement are in conflict or inconsistent with any of the terms or provisions of this
Amendment, this Amendment shall govern. 
 Section 5.2. References to the Note Purchase Agreement. Each
reference in the Current Note Purchase Agreement to “this Agreement,” “hereunder,” “hereof,” or words of similar import in instruments or documents provided for in the Current Note Purchase Agreement or delivered or to
be delivered thereunder or in connection therewith, shall, except where the context otherwise requires, be deemed a reference to the Note Purchase Agreement. 

			
	Northeast Ohio Natural Gas Corp., et. al.	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

Section 5.3. Governing Law. This Amendment shall be construed and enforced in accordance with, and the rights of the parties
shall be governed by, the law of the State of Ohio excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State. 

Section 5.4. Survival. All warranties, representations, and covenants made by the Obligors herein will be considered to have
been relied upon by the Purchaser and will survive the execution and delivery of this Amendment. 
 Section 5.5.
Successors and Assigns. This Amendment will inure to the benefit of and be binding upon the successors and assigns of each of the parties. The provisions of this Amendment for the benefit of the Purchaser are intended in all cases, whether
explicitly so stated or not, to be for the benefit of all holders, from time to time, of the Notes, and will be enforceable by any such holder, whether or not an express assignment to such holder of rights under this Amendment has been made by the
Purchaser or its successors or assigns. 
 Section 5.6. Counterparts. This Amendment may be executed in any number
of counterparts, each of which shall be deemed to be an original and all of which, taken together, shall constitute but one and the same Amendment. Delivery of an executed counterpart of this Amendment by facsimile or email shall be as effective as
delivery of a manually executed counterpart of this Amendment. 
 Section 5.7. Severability. Whenever possible, each
provision of this Amendment will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Amendment is held to be prohibited by or invalid under applicable law, such provision will be ineffective
only to the extent of such prohibition or invalidity, without invalidating the remainder of this Amendment unless the consummation of the transactions contemplated hereby is materially adversely affected thereby. 

Section 5.8. No Novation. This Amendment shall, in no way, be deemed as a novation of the terms of the Current Note Purchase
Agreement. 
 Section 5.9. Further Assurances. At the Obligors’ expense, the parties hereto shall execute and
deliver such additional documents and take such further action as may be necessary or desirable to effectuate the provisions and purposes of this Amendment. 
 [REMAINDER OF PAGE INTENTIONALLY BLANK] 

			
	Northeast Ohio Natural Gas Corp., et. al.	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

The execution hereof by the Purchaser shall constitute a contract among the Obligors and the Purchaser for the uses and purposes
hereinabove set forth. This Amendment may be executed in any number of counterparts, each executed counterpart constituting an original but all together only one agreement. 

 

			
	NORTHEAST OHIO NATURAL GAS CORP., as
an
    Issuer
		
	By	 	/s/ Thomas J. Smith
		 	  

		 	Name: Thomas J. Smith
		 	Title:   Chief Financial Officer

  

			
	ORWELL NATURAL GAS COMPANY, as an Issuer
		
	By	 	/s/ Thomas J. Smith
		 	  

		 	Name: Thomas J. Smith
		 	Title:   Chief Financial Officer

  

			
	BRAINARD GAS CORP., as an Issuer
		
	By	 	/s/ Thomas J. Smith
		 	  

		 	Name: Thomas J. Smith
		 	Title:   Chief Financial Officer

  

			
	GREAT PLAINS NATURAL GAS COMPANY, as
a
    Guarantor
		
	By	 	/s/ Thomas J. Smith
		 	  

		 	Name: Thomas J. Smith
		 	Title:   Chief Financial Officer

			
	Northeast Ohio Natural Gas Corp., et. al.	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

 

			
	LIGHTNING PIPELINE COMPANY, INC., as a
    Guarantor
		
	 By
	 	/s/ Thomas J. Smith
		 	  

		 	Name: Thomas J. Smith
		 	Title:   Chief Financial Officer

  

			
	KIDRON PIPELINE, LLC, as a Guarantor
	
	BY NORTHEAST OHIO NATURAL GAS CORP.,
    Sole
Member
		
	 By
	 	/s/ Thomas J. Smith
		 	  

		 	Name: Thomas J. Smith
		 	Title:   Chief Financial Officer

  

			
	SPELMAN PIPELINE HOLDINGS, LLC, as a
    Guarantor
	
	BY LIGHTNING PIPELINE COMPANY, INC., Sole
    Member
		
	By	 	/s/ Thomas J. Smith
		 	  

		 	Name: Thomas J. Smith
		 	Title:   Chief Financial Officer

  

			
	GAS NATURAL SERVICE COMPANY, LLC, as a
    Guarantor
		
	By	 	/s/ Richard M. Osborne
		 	  

		 	Name: Richard M. Osborne
		 	Title:   Manager

			
	Northeast Ohio Natural Gas Corp., et. al.	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

 

			
	GAS NATURAL INC., as a Guarantor
		
	By	 	/s/ Thomas J. Smith
		 	  

		 	Name: Thomas J. Smith
		 	Title:   Chief Financial Officer

			
	Northeast Ohio Natural Gas Corp., et. al.	  	Second Amendment and Waiver
		  	to Note Purchase Agreement

  

This Amendment is hereby accepted and agreed to as of the date aforesaid. 

 

			
	SUN LIFE ASSURANCE COMPANY OF CANADA
		
	 By
	 	/s/ Paul Sinclair
		 	  

		 	Name: Paul Sinclair
		 	Title:   Managing Director
		 	Head of Private Debt
		 	Private Fixed Income

  

			
	 By
	 	/s/ John Chamberlain
		 	  

		 	Name: John Chamberlain
		 	Title:   Senior Director
		 	Private Fixed Income

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00202-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00202-of-00352.parquet"}]]