Document:

Exhibit 10.15

CODE SECTION 409A AMENDMENT

to

DEFERRED COMPENSATION AGREEMENT

between

CORNING NATURAL GAS CORPORATION AND THOMAS K. BARRY

WHEREAS,
Corning Natural Gas Corporation (the “Company”) and Thomas K. Barry (the “Employee”)
entered an Amended and Restated Survivor Benefit Deferred Compensation
Agreement (the “Agreement”) dated December 14, 2000; and

WHEREAS,
effective as of January 1, 2005, Section 409A was added to the Internal Revenue
Code of 1986 for the purpose of imposing certain requirements on non-qualified
deferred compensation plans; and

WHEREAS,
the parties have determined that certain benefits under the Agreement are
subject to Section 409A and wish to bring its terms into compliance with
Section 409A prior to the IRS’s December 31, 2006 deadline for documentary
compliance.

NOW,
THEREFORE, in consideration of the premises and the mutual
covenants contained herein the parties agree as follows:

1.            The effective date of this Amendment
is January 1, 2005, provided that any amounts that were deferred and vested as
of December 31, 2004 remain subject to the terms and conditions of the
Agreement without regard to this Amendment unless expressly provided to the
contrary herein.

2.            Article IV is amended by adding to
the end of the first paragraph the following:

Notwithstanding the normal January 5 annual payment
requirement, the portion of the Employee’s first annual payment that had not
been earned and vested on December 31, 2004 shall be withheld if six months
have not elapsed following the Employee’s termination date and paid as soon as
practicable after the six month period has elapsed.

3.            Article
XI is amended by adding to the end thereof the following:

Notwithstanding the foregoing, this Agreement may not
be terminated nor may benefits be paid following termination except in
accordance with the terms and conditions of Code Section 409A and regulations
thereunder.

 

 

4.            Article
XII is amended by deleting the current provision in its entirety and
substituting in its place the following:

If the Employee shall become disabled within the
meaning of Code Section 409A prior to his retirement, the Employee shall be
considered to be continuing in employment for as long as such disability
exists, but not after age seventy (70).

5.            The
introductory phrase in the first sentence of the second paragraph of Article
XXI is revised to read as follows:

For purposes of this Agreement, a Change in Control of
the Company shall be deemed to have occurred if (1) there is a change in
control within the meaning of Code Section 409A and (2) the change in control
satisfies the following requirements:

6.                                       The
following new Article XXII is added to the end of the Agreement:

ARTICLE
XXII

Code Section 409A

(1)         No Acceleration.  Neither the form of benefit may be changed
nor the time of commencement may be accelerated except as expressly provided in
this Agreement, including the Section 409A amendment to it, between the
parties, and neither party shall have the discretion to accelerate payments.

(2)         Intent to Comply with
Section 409A.  This Agreement
is intended to comply with Code Section 409A to the extent that its provisions
are subject thereto.  The Company has
adopted good faith amendments necessary to bring the Agreement into compliance
with the terms of this Section as interpreted by guidance issued by the
Internal Revenue Service.  To the extent
the terms of the Agreement or any amendment fail to qualify for exemption from
or satisfy the requirements of Code Section 409A, the Agreement may be operated
in compliance with Code Section 409A pending further amendment to the extent
authorized by the Internal Revenue Service. 
In such circumstances the Agreement and any amendment will be
administered in a manner which adheres as closely as possible to their existing
terms while complying with Code Section 409A.

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IN
WITNESS WHEREOF, the parties have executed this Amendment to
be effective as of January 1, 2005.

	
  Dated:

  	
  July 28, 2006

  	
   

  	
  CORNING NATURAL GAS

  CORPORATION

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth J. Robinson

  
	
   

  	
  Title:

  	
  Exec Vice President

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
  July 28, 2006

  	
   

  	
  /s/ Thomas K. Barry

  
	
   

  	
  Thomas K. Barry, Employee

  

 

 3Exhibit
10.16

CODE
SECTION 409A AMENDMENT

to

DEFERRED COMPENSATION AGREEMENT

between

CORNING NATURAL GAS CORPORATION AND KENNETH J. ROBINSON

WHEREAS,
Corning Natural Gas Corporation (the “Company”) and Kenneth J. Robinson (the “Employee”)
entered an Amended and Restated Survivor Benefit Deferred Compensation
Agreement (the “Agreement”) dated December 14, 2000; and

WHEREAS,
effective as of January 1, 2005, Section 409A was added to the Internal Revenue
Code of 1986 for the purpose of imposing certain requirements on non-qualified
deferred compensation plans; and

WHEREAS,
the parties have determined that certain benefits under the Agreement are
subject to Section 409A and wish to bring its terms into compliance with
Section 409A prior to the IRS’s December 31, 2006 deadline for documentary
compliance.

NOW,
THEREFORE, in consideration of the premises and the mutual
covenants contained herein the parties agree as follows:

1.            The effective date of this Amendment
is January 1, 2005, provided that any amounts that were deferred and vested as
of December 31, 2004 remain subject to the terms and conditions of the
Agreement without regard to this Amendment unless expressly provided to the
contrary herein.

2.            Article IV is amended by adding to
the end of the first paragraph the following:

Notwithstanding the normal January 5 annual payment
requirement, the portion of the Employee’s first annual payment that had not
been earned and vested on December 31, 2004 shall be withheld if six months
have not elapsed following the Employee’s termination date and paid as soon as
practicable after the six month period has elapsed.

3.            Article
XI is amended by adding to the end thereof the following:

Notwithstanding the foregoing, this Agreement may not
be terminated nor may benefits be paid following termination except in
accordance with the terms and conditions of Code Section 409A and regulations
thereunder.

 

 

4.            Article
XII is amended by deleting the current provision in its entirety and
substituting in its place the following:

If the Employee shall become disabled within the
meaning of Code Section 409A prior to his retirement, the Employee shall be
considered to be continuing in employment for as long as such disability
exists, but not after age seventy (70).

5.            The
introductory phrase in the first sentence of the second paragraph of Article
XXI is revised to read as follows:

For purposes of this Agreement, a Change in Control of
the Company shall be deemed to have occurred if (1) there is a change in
control within the meaning of Code Section 409A and (2) the change in control
satisfies the following requirements:

6.                                       The
following new Article XXII is added to the end of the Agreement:

ARTICLE XXII

Code Section 409A

(1)         No Acceleration.  Neither the form of benefit may be changed
nor the time of commencement may be accelerated except as expressly provided in
this Agreement, including the Section 409A amendment to it, between the
parties, and neither party shall have the discretion to accelerate payments.

(2)         Intent to Comply with
Section 409A.  This Agreement
is intended to comply with Code Section 409A to the extent that its provisions
are subject thereto.  The Company has
adopted good faith amendments necessary to bring the Agreement into compliance
with the terms of this Section as interpreted by guidance issued by the
Internal Revenue Service.  To the extent
the terms of the Agreement or any amendment fail to qualify for exemption from
or satisfy the requirements of Code Section 409A, the Agreement may be operated
in compliance with Code Section 409A pending further amendment to the extent
authorized by the Internal Revenue Service. 
In such circumstances the Agreement and any amendment will be
administered in a manner which adheres as closely as possible to their existing
terms while complying with Code Section 409A.

IN WITNESS WHEREOF,
the parties have executed this Amendment to be effective as of January 1, 2005.

 

 

	
  Dated:   July 28, 2006

  	
  CORNING NATURAL GAS CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas K. Barry

  
	
   

  	
  Title:

  	
  President & CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:   July
  28, 2006

  	
   

  	
  /s/ Kenneth J. Robinson

  
	
   

  	
   

  	
  Kenneth J. Robinson, EmployeeExhibit 10.17

AMENDED AND RESTATED

SEVERANCE AGREEMENT

BETWEEN

CORNING NATURAL GAS CORPORATION

AND

THOMAS K. BARRY

THIS AGREEMENT, effective
as of the 18th day of August, 2006, by and between Corning
Natural Gas Corporation, a New York Corporation (the “Company”) and Thomas K.
Barry (the “Executive”).

WITNESSETH:

WHEREAS, the Executive is
a valuable employee of Corning Natural Gas Corporation, an integral part of its
management, and a key participant in the decision-making process relative to
planning and policy for the Company; and

WHEREAS, the Company and
the Executive previously entered into that certain Severance Agreement on
December 17, 1999 and the Amended and Restated Severance Agreement January 14,
2000 (the “2000 Agreement” as amended by amendments dated May 2, 2006 and July
28, 2006); and

WHEREAS, the Company and
the Executive desire to amend and restate the terms and provisions of the 2000 Agreement
as amended;

NOW THEREFORE, it is hereby agreed by and between the parties hereto as
follows:

1.            Definitions.

(a)           “Board”
shall mean the Board of Directors of the Company.

(b)           “Cause”
shall have the same meaning as is provided in the Executive’s Employment
Agreement.

(c)           “Change
in Control” shall mean a change in control that is both (1) a change in control
within the meaning of Code Section 409A and (2) a change in control that
satisfies the following requirements:

(i)            any
person (as such term is used in Section 13(d) of the Securities Exchange Act of
1934 (the “1934 Act”)), excluding a corporation at least 90% of the ownership
of which after acquiring its interest is owned directly by the holder of common
shares of the Company immediately prior to such acquisition

 

(“Person”), becomes the
beneficial owner, directly or indirectly, of twenty (20) percent or more of the
outstanding common shares of the Company (other than the Savings Plan)
requiring the filing of a report with the Securities and Exchange Commission
under Section 13(d) of the 1934 Act;

(ii)           a
purchase by any Person of shares pursuant to a tender or exchange offer to
acquire any common shares of the Company (or securities convertible into common
shares) for cash, securities, or any other consideration provided that, after
consummation of the offer, such Person is the beneficial owner (as defined in
Rule l3d-3 under the 1934 Act), directly or indirectly, of twenty (20)
percent or more of the outstanding common shares of the Company (calculated as
provided in paragraph (d) of Rule 13d-3 under
the 1934 Act in the case of rights to acquire common shares);

(iii)          approval
by the shareholders of the Company of (a) any consolidation or merger of the
Company in which the Company is not the continuing or
surviving corporation or pursuant to which common shares of the Company would
be converted into cash, securities, or other property, other than a
consolidation or merger of the Company in which holders of its common shares
immediately prior to the consolidation or merger own at least 90% of the common
shares of the surviving corporation immediately after the consolidation or
merger, or (b) any consolidation or merger in which the Company is the
continuing or surviving corporation but in
which the common shareholders of the Company immediately prior to the
consolidation or merger do not hold at
least 90% of the outstanding common shares of the continuing or surviving
corporation (except where such holders of common stock hold at least 90% of the
common shares of the corporation which owns all of the common shares of the
Company), or (c) any sale, lease, exchange, or other transfer (in one
transaction or a series of related transactions) of all or substantially all
the assets of the Company, or (d) any merger or consolidation of the Company
where, after the merger or consolidation, one Person owns 100% of the common
shares of the Company (except where the common holders of the Company’s common
shares immediately prior to such merger or consolidation own at least 90% of
the outstanding common shares of such Person immediately after such merger or
consolidation) (upon the Board’s determination that the transaction subject to
shareholder approval hereunder will not be consummated, a Change in Control
shall not be deemed to

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have occurred from
such date forward and this Agreement shall continue in effect as if no Change
in Control had occurred, except to the extent termination requiring Severance
Benefits under paragraph 3 hereof has occurred prior to such Board’s
determination); or

(iv)          a
change in the majority of the members of the Board within a 24- month period
unless the election or nomination for election or nomination for election by
the Company’s common shareholders of each new director was approved by the vote
of at least two-thirds of the Directors then still in office who were in office
at the beginning of the 24-month period.

(d)           “Code”
shall mean the Internal Revenue Code of 1986, as amended.

(e)           “Compensation”
shall mean the sum of (i) the Executive’s annual rate of base salary on the
last day the Executive was an employee of the Company (or if higher, the annual
rate in effect on the date of the Change in Control), including any elective
contributions made by the Company on behalf of the Executive that are not
includible in the gross income of the Executive under Sections 125 or 402(a)(8)
of the Code or any successor provision thereto, (ii) any and all amounts to be
paid to the Executive annually for membership on the Board of Directors or any
Committee thereof, and (iii) the average of the annual incentive payments paid
to the Executive by the Company, if any, for the three consecutive calendar
years immediately preceding employment termination (or a lesser period if the
Executive was not eligible to receive annual incentive payments during such
three year period).

(f)           “Coverage
Period” means the period beginning on the Starting Date and ending on the
Ending Date.

(g)           “Disability”
shall be a disability as this term is defined in Section 409A.

(h)           “Employment
Agreement” shall mean the Amended and Restated Employment Agreement between the
Company and the Executive, entered into of even date hereof, together with any
amendments thereto.

(i)            “Ending
Date” means the earlier of (i) the date of the Board’s determination that the
transaction which was approved by the Company’s shareholders, thus constituting
a Change in Control pursuant to paragraph 1(c)(iii), will not be consummated,
or (ii) the date which is 36 full calendar months following the date on which a
Change in Control occurs or, if a Change in Control is based on shareholder
approval pursuant to paragraph 1(c)(iii) hereof, the date which is 36 full

 3
 

 

calendar months following
the date of the consummation of the transaction which was the subject of shareholder approval.

(j)             “Good
Reason” shall mean any of the following:

(i)            material
change by the Company of the Executive’s functions, duties or responsibilities
which change would cause the Executive’s position with the Company to become of
less dignity, responsibility, importance, prestige or scope, including, without
limitation, a change from being a senior officer of a publicly held company;

(ii)           assignment
or reassignment by the Company of the Executive without the Executive’s consent
to another place of employment more than 50 miles from the Executive’s current
place of employment; or

(iii)          a
reduction which is more than de minimis in the Executive’s base pay or bonus
opportunity except if such reduction is part of a reduction for all executive
officers of the Company and any parent Company thereof.

No such event described above shall constitute Good
Reason unless the Executive gives written notice to the Company, specifying the
event relied upon for such termination and given at any time within one year
after the occurrence of such event and the
Company has not remedied such within 30 days of the notice. The Company and
Executive, upon mutual written agreement may waive any of the foregoing
provisions which would otherwise constitute a Good Reason.

(k)           “Single
Trigger Period” means the eighteen month period which (i) begins on the date on
which a Change in Control occurs, or if a Change in Control is based on
shareholder approval pursuant to paragraph 1(c)(iii) hereof, the date of the
consummation of the transaction which was the subject of shareholder approval,
and (ii) ends eighteen months thereafter.

(1)           “Starting
Date” means the date on which a Change
in Control occurs.

2.             Term.
This Agreement shall be effective as of the date above written and shall
continue thereafter for 36 full calendar months following the date of an
occurrence of a Change in Control or, if
the Change in Control event is based on shareholder approval pursuant to paragraph
1(c)(iii), 36 full calendar

 4
 

 

months following
the date of the consummation of the transaction which was the subject of
shareholder approval.

3.             Severance
Benefit. If (i) at any time during the Coverage Period, the Executive’s
employment hereunder is terminated by the Company for any reason other than
Cause, death or Disability, or by the Executive for Good Reason, or (ii) during
the Single Trigger Period, the Executive terminates his employment for any
reason, then,

(a)           within
five business days after such termination, the Company shall pay to the
Executive (or, if the Executive has died before receiving all payments to which
the Executive has become entitled hereunder, to the estate of the Executive)
(i) accrued but unpaid salary and accrued but unused vacation, if any, and (ii)
severance pay in a lump sum cash amount equal to three (3) times the Executive’s
Compensation.

Notwithstanding
the five-business-days-payment requirement, if at the time of Executive’s
termination final IRS guidance on Section 409A provides that payments under
agreements of this nature are considered to be made on account of termination
of employment rather than on account of a change in control, the payments, or
the portion of them under this Agreement considered to be made on account of
termination, if lesser, shall be deferred until six months following the
Executive’s termination date; and

(b)           to
the extent not paid or payable under such plans and/or arrangements, the
Company shall pay to the Executive the present value of the benefits
(calculated assuming the Executive will begin receiving benefits at the
earliest retirement date under such plans and/or arrangements, or if later, at
the end of the term of this Agreement, based on the actuarial assumptions used
for purposes of the qualified defined benefit plan) that would have accrued,
but did not accrue, under the Company’s qualified defined benefit retirement
plan, the Corning Natural Gas Company Survivor Benefit Deferred Compensation
Agreement, and the excess pension benefit provision in the Employment Agreement
and/or any successor or similar plan(s) or arrangements in place and
operational on the date of termination and/or the Change in Control, as if (for
vesting, benefit accrual, eligibility for early retirement, subsidized early
retirement factors, actuarial equivalence, and any other purposes) the
Executive had continued to be employed and had continued to participate in such
plans and arrangements until the age of 62; it being understood by all parties
hereto that payments made under this Agreement and the deemed additional
credited service shall not be considered for purposes of determining the actual
benefit payable under the terms of such plans and arrangements and shall not be
considered

 5
 

 

part of the
relevant payroll records for purposes of such plans and arrangements; and

(c)           to
the extent not already provided under the terms of the Employment Agreement,
for a period commencing with the month in which termination of employment, as
described in paragraph 3 hereof, shall have occurred, and ending the later of
the date of the Executive’s or the Executive’s spouse’s death, the Executive,
his spouse and any dependents shall continue to be entitled to receive all
health and dental care benefits under the Company’s welfare benefit plans
(within the meaning of Section 3(l) of the Employee Retirement Income Security
Act of 1974, as amended), at no cost to the Executive and at the same level of
benefits that the Executive, his spouse and his dependents were receiving or
were entitled to receive at the time of termination of employment or, if it
would result in greater benefits, at the date of the Change in Control (if and
to the extent that such benefits shall not be payable or provided under any
Company plan, the Company shall pay or provide equivalent benefits on an
individual basis).

(d)           Any Common Shares of the Company granted
by the Company or a Company subsidiary to the Executive under the terms of any
Long-Term Incentive Plan (“Long-Term Incentive Plan”) as is in effect and as
may be amended from time to time, or any other comparable plan that may be put
into effect, subject to a risk of forfeiture, such as the satisfaction of
selected performance criteria or the Executive’s completion of a stated period
of employment, shall be fully vested and transferable by the Executive
following the Change in Control pursuant to the terms of any applicable plan.

(e)           The Company shall continue to maintain a
whole life insurance policy on the Executive until the Executive reaches the
age of 65.  The premiums for such policy
shall be paid for by the Company, however, 
the Executive (or the beneficiary designated by him) shall be the
beneficial owner of the policy.

4.              Certain
Additional Payments/Cap on Payments/Timing
of Payments.

If, and only if, the
pending acquisition of the Company by C&T Enterprises, Inc. (“C&T”) is
consummated, the procedures and payments set forth in section 4(e) below shall
apply.

(a)           If
Independent Tax Counsel shall determine that the aggregate payments made to the Executive pursuant to this Agreement and any other payments to the Executive from the
Company which constitute

 6
 

 

“parachute
payments” as defined in Section 280G of the Code (or any successor provision
thereto) (“Parachute Payments”) would be subject to the excise tax imposed by
Section 4999 of the Code (the “Excise Tax”), then the Executive shall be
entitled to receive an additional payment (a “Gross-Up Payment”) in an
amount (determined by Independent Tax Counsel) such that after payment by the
Executive of all taxes (including any Excise Tax) imposed upon the Gross-Up
Payment and any interest or penalties imposed with respect to such taxes, the
Executive retains from the Gross-Up Payment an amount equal to the Excise Tax
imposed upon the payments. For purposes of this paragraph 4(a), “Independent
Tax Counsel” shall mean a lawyer, a certified public accountant with a
nationally or regionally recognized accounting firm, or a compensation
consultant with a nationally recognized actuarial and benefits consulting firm,
with expertise in the area of executive compensation tax law, who shall be
selected by the Executive and shall be reasonably acceptable to the Company,
and whose fees and disbursements shall be paid by the Company.

(b)           If
Independent Tax Counsel shall determine that no Excise Tax is payable by the
Executive, it shall furnish the Executive with a written opinion that the
Executive has substantial authority not to report any Excise Tax on the
Executive’s Federal income tax return. 
If the Executive is subsequently required to make a payment of any
Excise Tax, then the Independent Tax Counsel shall determine the amount (the
amount of such additional payments are referred herein as “Gross-Up
Underpayment”) of such payment and any such Gross-Up Underpayment shall be
promptly paid by the Company to or for the benefit of the Employee.  The fees and disbursements of the Independent
Tax Counsel shall be paid by the Company.

(c)           The Executive shall notify the Company in
writing within 15 days of any claim by the Internal Revenue Service that, if
successful, would require the payment by the Company of a Gross-Up
Payment. If the Company notifies the Executive in writing that it desires to
contest such claim and that it will bear the costs and provide the
indemnification as required by this sentence, the Executive shall:

 (i)           give
the Company any information reasonably requested by the Company relating to
such claim,

(ii)           take
such action in connection with contesting such claim
as the Company shall reasonably request in writing from time to time,
including, without limitation, accepting legal representation with respect to
such claim by an attorney reasonably selected by the Company,

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(iii)          cooperate
with the Company in good faith in order to effectively contest such claim, and

(iv)         permit
the Company to participate in any proceedings
relating to such claim; provided, however, that the Company shall bear and pay
directly all costs and expenses (including additional interest and penalties)
incurred in connection with such contest and shall indemnify and hold the
Executive harmless, on an after-tax basis, for any Excise Tax or income
tax, including interest and penalties with respect thereto, imposed as a result
of such representation and payment of costs and expenses. The Company shall
control all proceedings taken in connection with such contest; provided,
however, that if the Company directs the Executive to pay such claim and sue
for a refund, the Company shall advance the amount of such payment to the
Executive, on an interest-free basis and shall indemnify and hold the Executive
harmless, on an after-tax basis, from any Excise Tax or income tax,
including interest or penalties with respect thereto, imposed with respect to
such advance or with respect to any imputed income with respect to such
advance.

(d)           If,
after the receipt by the Executive of an amount advanced by the Company
pursuant to paragraph 4(c)(iv), the Executive becomes entitled to receive any
refund with respect to such claim, the Executive shall, within 10 days, pay to
the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto).

(e)           Severance Payments under the Amended and
Restated Severance Agreement shall be paid, with interest at 8% per annum,
thirty (30) days after the consummation of the proposed merger with C&T
Enterprises, Inc., or an affiliate thereof (“C&T”), unless C&T obtains
a final determination of fraud having been committed by Executive with respect
to the relevant representations and warranties set forth in the said Merger
Agreement. Such determination of fraud shall be made by a court of competent
jurisdiction.

Executive’s severance
payments hereunder shall be reduced by $87,870, plus an amount sufficient, when
combined with the amount of a similar reduction in benefits by the Company’s
other executive who is entering an Amended and Restated Severance Agreement
this day, and

 8
 

 

combined with the reduction
in taxes the Company is obliged to pay pursuant to Internal Revenue Code
section 280G that results from the aforesaid reduction in severance payments,
equals the amount that Corning’s transaction costs, relating to the merger with
C&T (the “Transaction Costs”) exceed $1,075,000, but in no event shall such
Transaction Costs reduction exceed $112,500. The determination of such amount
shall be made five (5) days before the scheduled Closing for the acquisition of
the Company by C&T.

To the extent that Executive
incurs tax obligations on the severance payments that Executive has foregone,
Executive shall waive any right he has to reimubrsement thereof by the Company.

5.             No
Mitigation Required. In the event of any termination of the Executive’s
employment described in paragraph 3, the Executive shall be under no obligation
to seek other employment, and there shall be no offset against amounts due the
Executive under this Agreement on account of any remuneration attributable to
any subsequent employment; provided, however, to the extent the Executive
receives medical and health benefits from a subsequent employer, medical and
health benefits under paragraph 3(c) shall be secondary to those received from
the subsequent employer, and shall be required only to the extent not provided
by such subsequent employer.

6.             Source
of Payments. All payments provided for in this Agreement shall be paid in
cash from the general funds of the Company; provided, however, such payments
shall be reduced by the amount of any
payments made to the Executive or the Executive’s dependents, beneficiaries, or
estate from any trust or special or separate fund established by the Company to
assure such payments. The Company shall not be required to establish a special
or separate fund or other segregation of assets to assure such payments, and,
if the Company shall make any investments to aid it in meeting its obligations
hereunder, the Executive shall have no right, title, or interest whatever in or
to any such investments except as may otherwise be expressly provided in a
separate written instrument relating to such investments. Nothing contained in
this Agreement, and no action taken pursuant to its provisions, shall create or
be construed to create a trust of any kind, or a fiduciary relationship between
the Company and the Executive or any other person. To the extent that any
person acquires a right to receive payments from the Company, such right shall
be no greater than the right of an unsecured creditor of the Company.

7.             Litigation
Expenses: Arbitration.

(a)           Full
Settlement, Litigation Expenses; Arbitration. 
The Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be
affected by

 9
 

 

any set-off,
counterclaim, recoupment, defense or other claim, right or action which the
Company may have against the Executive or others. In no event shall the
Executive be obligated to seek other employment or take any other action by way
of mitigation of the amounts payable to the Executive under any of the
provisions of this Agreement. The Company agrees to pay, upon written demand
therefor by the Executive, all legal fees and expenses which the Executive may
reasonably incur as a result of any dispute or contest by or with the Company
or others regarding the validity or enforceability of, or liability under, any
provision of this Agreement (except to the extent it is determined by a court
of competent jurisdiction, mediator or arbitrator, as the case may be, that the
Executive’s material claim is, or claims are, frivolous or without merit in
which case the Executive shall bear all such fees and expenses), together with
interest on any delayed payments at the applicable Federal rate provided for in
Section 7872(f)(2) of the Code. In any such action brought by the Executive for
damages or to enforce any provisions of this Agreement, the Executive, in his
sole discretion, shall be entitled to seek both legal and equitable relief and
remedies, including, without limitation, specific performance of the Company’s
obligations hereunder. If the parties hereto so agree in writing, any disputes
under this Agreement may be settled by arbitration. The obligation of the
Company under this paragraph 7 shall survive the termination for any reason of
this Agreement (whether such termination is by the Company, by the Executive,
upon the expiration of this Agreement or otherwise).

(b)           In
the event of any dispute or difference between the Company and the Executive
with respect to the subject matter of this Agreement and the enforcement of
rights hereunder, the Executive may, in the Executive’s sole discretion by
written notice to the Company, require such dispute or difference to be
submitted to arbitration. The arbitrator or arbitrators shall be selected by
agreement of the parties or, if they cannot agree on an arbitrator or
arbitrators within 30 days after the Executive has notified the Company of
Executive’s desire to have the question settled by arbitration, then the
arbitrator or arbitrators shall be selected by the American Arbitration
Association (the “AAA”) in Rochester, New York upon the application of the
Executive. The determination reached in such arbitration shall be final and
binding on both parties without any right of appeal or further dispute.
Execution of the determination by such arbitrator may be sought in any court of
competent jurisdiction. The arbitrators shall not be bound by judicial
formalities and may abstain from following the strict rules of evidence and
shall interpret this Agreement as an honorable engagement and not merely as a
legal obligation. Unless otherwise agreed by the parties, any such arbitration

 10
 

 

shall take place
in Rochester, New York, and shall be conducted in accordance with the Rules of
the AAA.

8.             Income
Tax Withholding. The Company may withhold from any payments made under this
Agreement all federal, state, or other taxes as shall be required pursuant to
any law or governmental regulation or ruling.

9.             Entire
Understanding. This Agreement contains the entire understanding between the
Company and the Executive with respect to the subject matter hereof and
supersedes any similar agreement between the Company and the Executive, except
that this Agreement shall not affect or operate to reduce any benefit or compensation
inuring to the Executive of any kind elsewhere provided and not expressly
provided for in this Agreement including, without limitation, any benefit or
compensation under the Employment
Agreement and/or the Corning Natural Gas Company Amended and Restated Survivor
Benefit Deferred Compensation Agreement.

10.           Severability.
If, for any reason, any one or more of the provisions or part of a provision
contained in this Agreement shall be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision or part of a provision of this Agreement
not held so invalid, illegal or unenforceable, and each other provision or part
of a provision shall to the full extent consistent with law continue in full
force and effect.

11.           Consolidation,
Merger. or Sale of Assets. If the Company consolidates or merges into or
with, or transfers all or substantially all of its assets to, another entity
the term “the Company” as used herein shall mean such other entity and this
Agreement shall continue in full force and effect.

12.           Notices.
All notices, requests, demands and other communications required or permitted
hereunder shall be given in writing and shall be deemed to have been duly given
if delivered or mailed, postage prepaid, first class as follows:

a.             to
the Company;

Corning Natural Gas
Company

330 West William Street

P.O. Box 58

Corning, New York 14830

Attention: President

With a copy to:

Eric J. Krathwohl, Esq.

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Rich May, a Professional
Corporation

176 Federal Street

Boston, MA 
02110

b.            to
the Executive:

Thomas K. Barry

10958 East Lake  Road

Hammondsport,
NY  14840

or to such other address as either party shall have
previously specified in writing to the other.

13.           No
Attachment.  Except as required by
law, no right to receive payments under this Agreement shall be subject to
anticipation, commutation, alienation, sale, assignment, encumbrance, charge,
pledge or hypothecation or to execution, attachment, levy or similar process or
assignment by operation of law, and any attempt, voluntary or involuntary, to
effect any such action shall be null, void and of no effect.

14.         Binding
Agreement.  This Agreement shall be
binding upon, and shall inure to the benefit of, the Executive and the Company
and their respective permitted successors and assigns.

15.         Modification
and Waiver. Prior to the date of a Change in Control, this Agreement may be
terminated, modified, amended or terminated by action of a majority of the
members of the Board. After a Change in Control, this Agreement may not be
modified or amended except by an instrument in writing signed by the parties
hereto. No term or condition of this Agreement shall be deemed to have been
waived, nor shall there be any estoppel
against the enforcement of any provision of this Agreement, except by written
instrument signed by the party charged with such waiver or estoppel. No such
written waiver shall be deemed a continuing waiver unless specifically stated
therein, and each such waiver shall operate only as to the specific term or
condition waived and shall not constitute a waiver of such term or condition
for the future or as to any act other than that
specifically waived.

Notwithstanding
the foregoing, this Agreement may not be terminated nor may benefits be paid
following termination except in accordance with the terms and conditions of
Code Section 409A and regulations thereunder.

16.         Heading
of No Effect.  The paragraph headings
contained in this Agreement are included solely for convenience of reference
and shall not in any way affect the meaning or interpretation of any of the
provisions of this Agreement.

 12
 

 

17.         Governing
Law. This Agreement and its validity, interpretation, performance, and
enforcement shall be governed by the laws of the State of New York without
giving effect to the choice of law provisions in the State of New York.

18.         Code
Section 409A.

(1)       No Acceleration. Neither the form of benefit may be changed
nor the time of commencement may be accelerated except as expressly provided in
this Agreement, including the Section 409A amendment to it, between the
parties, and neither party shall have the discretion to accelerate payments.

(2)       Intent to Comply with Section 409A. This Agreement is
intended to comply with Code Section 409A to the extent that its provisions are
subject thereto. The Company has adopted good faith amendments necessary to
bring the Agreement into compliance with the terms of this Section as
interpreted by guidance issued by the Internal Revenue Service. To the extent the
terms of the Agreement or any amendment fail to qualify for exemption from or
satisfy the requirements of Code Section 409A, the Agreement may be operated in
compliance with Code Section 409A pending further amendment to the extent
authorized by the Internal Revenue Service. In such circumstances the Agreement
and any amendment will be administered in a manner which adheres as closely as
possible to their existing terms while complying with Code Section 409A.

19.         Company
Counsel.  The parties recognize and
agree that Rich May, a Professional Corporation is acting as counsel solely to
the Company and not to the Executive. 
Executive agrees and states that he has been specifically advised of
that fact and that he has had the opportunity to engage his own counsel for the
negotiation and drafting of this Agreement.

IN WITNESS WHEREOF, the Company has caused this
Agreement to be executed by its officers thereunto duly authorized, and the
Executive has signed this Agreement, all effective as of the date first above
written.

	
  Witness:

  	
   

  	
  Corning Natural Gas Corporation:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Stanley G. Sleve

  	
   

  	
   

  	
  By:

  	
  /s/ Kenneth J.
  Robinson

  	
   

  
	
   

  	
   

  	
  Title:

  	
     Exec. Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness:

  	
   

  	
  Executive:

  
	
   

  	
   

  	
   

  
	
  /s/ Stanley G. Sleve

  	
   

  	
   

  	
  /s/ Thomas K.
  Barry

  	
   

  
	
   

  	
   

  	
  Thomas K. Barry

  
									

 

 13

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