Document:

exv10w42

EXHIBIT
10.42

NOTE MODIFICATION AGREEMENT

(Term Note)

          THIS NOTE MODIFICATION AGREEMENT is made and entered into as of December 31, 2009, by and
between ORWELL NATURAL GAS COMPANY, an Ohio corporation, as the borrower (the “Borrower”), and THE
HUNTINGTON NATIONAL BANK (the “Bank”).

WITNESSETH:

          WHEREAS, the Borrower heretofore executed a Promissory Note dated December 9, 2008 (the
“Note”) in favor of the Bank in the stated principal amount of Four Million Six Hundred Three
Thousand Three Hundred Twenty and 98/100 Dollars ($4,603,320.98), which Note shall be attached to
this Note Modification Agreement and held by Bank;

          WHEREAS, as of the date hereof, the outstanding principal balance of the Note is $4,333,938.83
and the Note matured on November 30, 2009, at which time the outstanding principal and accrued and
unpaid interest became due and payable; and

          WHEREAS, pursuant to an Amended and Restated Loan Agreement of even date herewith, the
Borrower and the Bank have agreed to modify the interest rate applicable under the Note and extend
the maturity date of the Note.

          NOW THEREFORE, by mutual agreement of the parties and in consideration of the premises and
intending to be legally bound hereby, the parties agree as follows:

          1. The Note is hereby amended as follows:

	 	(a)	 	The maturity date shall be extended to
November 28, 2010; and

	 	(b)	 	The interest rate shall be modified to the
Index rate for a LIBO Rate Interest Period of one month, plus 3.00
percentage points, subject to a LIBO Rate floor of 1.00 percentage
point.

          2. Except for the above modifications, the Note and all the terms and conditions thereof and
all the loan documents executed in connection therewith remain in full force and effect.

          3. The parties intend that no novation has occurred with respect to the indebtedness
evidenced by the Note.

 

 

          4. This Note Modification Agreement may be signed in any number of counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same
instrument.

          5. Power to Confess Judgment. The Borrower hereby irrevocably authorizes any
attorney-at-law, including an attorney employed by or retained and paid by the Bank, to appear in
any court of record in or of the State of Ohio, or in any other state or territory of the United
States, at any time after the loans or any of the other obligations evidenced by the Note become
due, whether by acceleration or otherwise, to waive the issuing and service of process and to
confess a judgment against the Borrower in favor of the Bank, and/or any assignee or holder hereof
for the amount of such loans and any of such other obligations then appearing due from the Borrower
under the Note and this Note Modification Agreement, together with costs of suit and thereupon to
release all errors and waive all right of appeal or stays of execution in any court of record. The
Borrower hereby expressly (i) waives any conflict of interest of the attorney(s) retained by the
Bank to confess judgment against the Borrower upon the Note and this Note Modification Agreement,
and (ii) consents to the receipt by such attorney(s) of a reasonable legal fee from the Bank for
legal services rendered for confessing judgment against the Borrower upon the Note and this Note
Modification Agreement. A copy of the Note and this Note Modification Agreement, certified by the
Bank, may be filed in each such proceeding in place of filing the original as a warrant of
attorney.

          The Borrower acknowledges that it has read and understood all the provisions of this Note
Modification Agreement, including the confession of judgment and waiver of jury trial, and has been
advised by counsel as necessary or appropriate.

[SIGNATURES APPEAR ON THE NEXT PAGE]

 

 

[SIGNATURE PAGE TO NOTE MODIFICATION AGREEMENT]

          IN WITNESS WHEREOF, the Borrower and the Bank, intending to be legally bound, have executed
this Note Modification Agreement as of the day and year first above written with the intention that
this Note Modification Agreement shall constitute a sealed instrument.

     WARNING-BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND
COURT TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE
TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A
COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU
MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY
GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT, OR ANY
OTHER CAUSE.

	 	 	 	 	 
	 	BORROWER:

ORWELL NATURAL GAS COMPANY

 	 
	 	By:  	/s/ Richard M. Osborne         
 	  (Seal)
	 	 	Name:  	Richard M. Osborne 	 
	 	 	Title:  	Chairman/CEO 	 
	 
	 	BANK:

THE HUNTINGTON NATIONAL BANK

 	 
	 	By:  	/s/ Bruce G. Shearer
 	 
	 	 	Name:  	Bruce G. Shearer 	 
	 	 	Title:  	Senior Vice-President 	 
	 

-3-exv10w43

EXHIBIT 10.43

AMENDED AND RESTATED

CONTINUING AGREEMENT OF GUARANTY AND SURETYSHIP

          THIS AMENDED AND RESTATED CONTINUING AGREEMENT OF GUARANTY AND SURETYSHIP (together with all
amendments, extensions, restatements, renewals, substitutions and replacements hereto or hereof is
hereinafter referred to as the “Guaranty”) dated as of December 31, 2009, is made by ONG
MARKETING, INC., an Ohio corporation, LIGHTNING PIPELINE COMPANY, INC., an Ohio corporation,
LIGHTNING PIPELINE COMPANY II, INC., an Ohio corporation (each of the foregoing, an “Existing
Guarantor”), RICHARD M. OSBORNE, an individual resident of Ohio (“Osborne”, and
together with each of the Existing Guarantors, each a “Guarantor” and collectively,
together with any party which hereafter joins this Guaranty, the “Guarantors”) and THE
HUNTINGTON NATIONAL BANK (the “Lender”).

RECITALS:

          WHEREAS, each Existing Guarantor executed and delivered in favor of the Lender a Commercial
Guaranty, each dated December 9, 2008 (the “Existing Guaranties”) in connection with that
certain Business Loan Agreement of even date therewith between the Orwell Natural Gas Company (the
“Borrower”), Osborne, as a co-borrower, and the Lender (the “Existing Loan
Agreement”) pursuant to which the Lender made certain loans and extensions of credit to the
Borrower; and

     WHEREAS, pursuant to that certain Amended and Restated Loan Agreement (as it may hereafter
from time to time be further restated, amended, modified or supplemented, the “Credit
Agreement”) dated as of even date herewith by and among the Lender, the Borrower, the Existing
Guarantors and Osborne, not as a co-borrower but as an additional Guarantor thereunder, parties
thereto have amended and restated the Existing Loan Agreement, pursuant to which the Lender agrees
to continue to make certain loans and other extensions of credit to the Borrower; and

     WHEREAS, the obligation of the Lender to continue to make loans and extend credit under the
Credit Agreement is subject to the condition, among others, that the Existing Guarantors amend and
restate the Existing Guaranty as set forth in this Guaranty and that Osborne join as a Guarantor
party hereto; and

          WHEREAS, the Borrower and each Guarantor are engaged in related businesses and/or have related
economic interests, and the ability of the Borrower to borrow under the Credit Agreement is
expected to be of direct and indirect material benefit to each Guarantor; and

          WHEREAS, each Guarantor has determined, reasonably and in good faith, that (a) such Guarantor
will receive a material benefit from being a guarantor and surety of the Indebtedness of the
Borrower under the Credit Agreement, (b) such Guarantor has adequate capital to conduct such
Guarantor’s business as presently conducted and as proposed to be conducted, (c) such Guarantor
will be able to meet such Guarantor’s obligations hereunder and in respect of such Guarantor’s
existing and future Indebtedness and liabilities (contingent or

 

 

otherwise) as and when the same shall become due and payable, including those under this
Guaranty, and (d) such Guarantor is otherwise Solvent; and

          WHEREAS, each Guarantor has determined that the execution and delivery of this Guaranty is in
furtherance of such Guarantor’s business purposes and in such Guarantor’s best interests, having
regard to all relevant facts and circumstances.

          NOW, THEREFORE, in consideration of the premises (each of which is incorporated herein by
reference), other good and valuable consideration, the receipt and sufficiency of which by each
Guarantor are hereby acknowledged, and with the intent of being legally bound hereby, each
Guarantor, jointly and severally, hereby agrees as follows:

ARTICLE I

DEFINITIONS

     1.1 Definitions. Capitalized terms used herein as defined terms and not defined
herein which are defined in the Credit Agreement shall have the meanings given them in the Credit
Agreement. In addition, the following terms as used herein shall have the following meanings:

          “Final Payment” shall mean the occurrence of all of the following events: (i) the
indefeasible payment in full of all of the Obligations, (ii) the absence of any obligation on the
part of the Lender to make any advances to the Borrower, and (iii) the expiration or termination of
all Letters of Credit.

          “Obligations” shall have the meaning set forth in the Credit Agreement.

ARTICLE II

GUARANTY

     2.1 Guaranty. (a) Each Guarantor, jointly and severally, hereby unconditionally,
absolutely and irrevocably guarantees to the Lender, and becomes surety for, the complete, due and
punctual payment of the Obligations, and for the complete, due and punctual performance by the
Borrower of each of the other terms and provisions of the Credit Agreement, the Notes and the other
Loan Documents as and when the same shall become due (whether at maturity, by acceleration or
otherwise) according to the terms thereof. This is a guaranty of payment and not a guaranty of
collection. In case of failure by the Borrower punctually to pay the Indebtedness guaranteed
hereby, each Guarantor, jointly and severally, hereby unconditionally agrees to cause such payment
to be made punctually as and when the same shall become due and payable, whether at maturity or by
acceleration or otherwise, and as if such payment was made by the Borrower. The Lender shall not
be required, as a condition of the liability of any Guarantor, to make any demand upon, or to
pursue any of the rights of the Lender against the Borrower, or to pursue any rights which may be
available to the Lender, with respect to any other Person who may be liable for the payment of any
Indebtedness or obligation of the Borrower to the Lender. This Guaranty shall remain in full force
and effect until Final Payment has occurred.

 

 

          (b) Each Guarantor agrees that whenever, at any time or from time to time, such Guarantor
shall make any payment to the Lender on account of the liability of such Guarantor hereunder, such
Guarantor will notify the Lender in writing that such payment is made under this Guaranty for such
purpose.

          (c) No payment or payments made by the Borrower, any Guarantor, any other guarantor or any
other Person or received or collected by the Lender from the Borrower, such Guarantor or any other
Guarantor, any other guarantor or any other Person by virtue of any action or proceeding or any
set-off or appropriation or application, at any time or from time to time, in reduction of or in
payment of the Obligations, shall be deemed to modify, reduce, release or otherwise affect the
liability of such Guarantor or any other Guarantor hereunder which shall, notwithstanding any such
payment or payments other than payments made by such Guarantor in respect of the Obligations (in
accordance with the terms and provisions hereof) or payments received or collected from such
Guarantor in respect of the Obligations, remain liable for the Obligations until Final Payment has
occurred.

     2.2 Guarantees Absolute and Unconditional. The Obligations, and any of them, shall
conclusively be deemed to have been created, contracted or incurred in reliance upon this Guaranty;
all dealings between the Borrower or any Guarantor, on the one hand, and the Lender, on the other
hand, shall likewise be conclusively presumed to have been had or consummated in reliance upon this
Guaranty; and each Guarantor waives any and all notice of and proof of reliance by the Lender, upon
this Guaranty or acceptance of this Guaranty. The obligations of each Guarantor under this
Guaranty shall be continuing, unconditional, irrevocable and absolute and shall be independent of
any obligations of the Borrower and, without limiting the generality of the foregoing, shall not be
released, discharged or otherwise affected by any of the following matters and no right or remedy
of the Lender shall be in any way prejudiced or adversely affected by any of the following matters
(whether or not the Lender shall make any reservation of rights against, give or attempt to give
any notice to, or request or obtain any further assent of any Guarantor with respect to any of the
following matters):

          (a) any extension, renewal, settlement, compromise, waiver or release in respect of any of the
Obligations or any other obligation of the Borrower under the Notes, the Credit Agreement or any
other Loan Document;

          (b) any modification or amendment of or supplement to the Notes, the Credit Agreement or any
other Loan Document;

          (c) any modification, amendment, waiver, release, compromise, non-perfection or invalidity of
any direct or indirect security, or of any guarantee or other liability of any third party, for any
of the Obligations or any other obligation of the Borrower under the Notes, the Credit Agreement or
any other Loan Document;

          (d) any change in the corporate or other existence, structure or ownership of any Guarantor or
the Borrower, or any insolvency, bankruptcy, reorganization or other similar proceeding affecting
the Borrower or its assets (irrespective of any release or deferral of the
liability of any Guarantor to pay all or any part Obligations or any of the Borrower’s other

 

 

obligations under the Notes, the Credit Agreement or any other Loan Document pursuant to any such
insolvency, bankruptcy or other similar proceeding);

          (e) the existence of any claim, set-off or other rights which any Guarantor may have at any
time against the Borrower, the Lender or any other Person, whether or not arising in connection
with this Guaranty, the Obligations, the Notes, the Credit Agreement or any other Loan Document;

          (f) any invalidity or unenforceability relating to or against the Borrower for any reason of
the Credit Agreement, the Notes or any other Loan Document, or any provision of applicable law or
regulation purporting to prohibit the payment by the Borrower of the Obligations or any other
amount payable by the Borrower under the Notes, the Credit Agreement or any other Loan Document;

          (g) any invalidity or unenforceability relating to or against the Borrower for any reason of
its obligations and liabilities under the Credit Agreement, the Notes or any other Loan Document;

          (h) any other act or failure to act or delay of any kind by the Borrower, the Lender or any
other Person or any other circumstance whatsoever that might, but for the provisions of this
paragraph, constitute a legal or equitable discharge of the obligations of any Guarantor under this
Guaranty;

          (i) the existence of, or any execution on or attachment of, or any failure by the Lender to
resort to, any other security or any other rights held or hereafter held or to be held by the
Lender to secure any or all of the Obligations or other obligations of the Borrower under the
Credit Agreement, the Notes or any other Loan Document or any judgment obtained by the Lender.

          (j) any demand for payment of any of the Obligations is rescinded by the Lender and any of the
Obligations continued; or

          (k) the refusal or failure (whether intentional, negligent or otherwise) of the Lender or any
agent of the Lender to protect, secure, perfect, continue, maintain or insure any lien at any time
held by it as security for the Obligations or any other obligations of the Borrower under the
Notes, the Credit Agreement or any other Loan Document (including this Guaranty) or any property
subject thereto.

     2.3 Discharge; Reinstatement in Certain Circumstances. Guarantors’ obligations under
this Guaranty shall remain in full force and effect until Final Payment has occurred. If at any
time any payment (or part thereof) of any of the Obligations is rescinded or must be otherwise
restored or returned upon the insolvency, bankruptcy or reorganization of the Borrower or
otherwise, the Guarantors’ obligations under this Guaranty with respect to such payment shall be
reinstated at such time as though such payment had become due but had not been made at such time.

     2.4 Right of Set-off. Upon any or all of the Obligations becoming due and payable
(whether at the stated maturity, by acceleration or otherwise), the Lender is hereby irrevocably

 

 

authorized by each Guarantor at any time and from time to time, without prior notice to such
Guarantor, any such prior notice being hereby waived by such Guarantor, to set-off and appropriate
and apply any and all deposits (general or special, time or demand, provisional or final), in any
currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at
any time held or owing by the Lender to or for the credit or the account of such Guarantor, or any
part thereof in such amounts, not to exceed the amount then due, as the Lender may elect, whether
or not the Lender has made any demand for payment and although such liabilities may be contingent
or unmatured. The Lender shall notify such Guarantor of any such set-off made by the Lender and
the application made by the Lender of the proceeds thereof; provided, however, that the failure to
give such notice shall not affect the validity of such set-off and application. The rights of the
Lender hereunder are in addition to other rights and remedies (including, without limitation, other
rights of set-off) which the Lender may have.

     2.5 No Subrogation. Notwithstanding any payment or payments made by any Guarantor
hereunder, or any set-off or application of funds of any Guarantor by the Lender, no Guarantor
shall be entitled to be subrogated to any of the rights of the Lender against the Borrower or
against any collateral security or guaranty or right of offset held by the Lender for the payment
of the Obligations, nor shall any Guarantor seek any contribution or reimbursement from the
Borrower in respect of any payments (or any parts thereof) made by such Guarantor hereunder until
Final Payment has occurred. Each Guarantor hereby irrevocably, unconditionally and absolutely
waives and agrees not to exercise or claim any rights which such Guarantor may acquire or claim by
way of subrogation, contribution, reimbursement or indemnity with respect to any payments made or
performance by such Guarantor hereunder or under any other Loan Document until Final Payment has
occurred.

     2.6 Waiver. Each Guarantor irrevocably waives acceptance hereof, presentment, demand,
protest and any notice not provided for herein, as well as any requirement that at any time any
action be taken by any Person against the Borrower or any other Person. Each Guarantor also waives
any notice of the creation, incurrence, renewal, extension or accrual of any of the Obligations or
any other Indebtedness or obligation of the Borrower to the Lender. Each Guarantor also waives
presentment and any notices with respect to any evidence of Indebtedness of the Borrower to the
Lender and, until the Lender shall have been paid in full, any right the undersigned might
otherwise have to the marshalling of any assets of the Borrower. Without limiting the generality of
the foregoing, each Guarantor waives diligence, presentment, protest, demand for payment and notice
of default or nonpayment to or upon the Borrower or such Guarantor with respect to any of the
Obligations.

     2.7 Stay of Acceleration. If acceleration of the time for payment of any amount
payable by the Borrower with respect to the Obligations is stayed upon the insolvency, bankruptcy
or reorganization of the Borrower, all such amounts otherwise subject to acceleration under the
terms of the Credit Agreement shall nonetheless be payable by the Guarantors hereunder forthwith on
written demand by the Lender.

     2.8 Assignment or Transfer; Waiver. Each Guarantor covenants and agrees that: (a)
this Guaranty shall continue to be binding and in full force and effect notwithstanding (i) any
transfer or assignment by the Borrower of the obligations under the Credit Agreement, the
Notes or the other Loan Documents to any permitted holder of the Obligations or (ii) any transfer
or

 

 

assignment of the benefit of this Guaranty to any Person; and (b) such Guarantor shall waive
each and all of such Guarantor’s rights (whether legal, equitable, statutory or otherwise) as
surety which may at any time be inconsistent with this Guaranty or in any way restrict or
prejudicially affect the rights, remedies or recourse of the Lender hereunder.

     2.9 Payments; Application of Moneys. Each Guarantor hereby agrees that all payments
hereunder will be paid to the Lender without set-off or counterclaim in Dollars at the office of
the Lender at Centre City Tower, Suite 1000, 650 Smithfield Street, Pittsburgh, Pennsylvania
15222. Any amounts received by the Lender from any Guarantor shall be deemed to reduce the
obligations of the Guarantors hereunder only as provided herein and, in any case, only to the
extent of the amounts actually received by the Lender after deduction of all costs and expenses of
and related to obtaining payment thereof.

     2.10 Manner of Dealing. The Lender, without notice to the Guarantors, shall have the
right to deal in any manner it shall see fit with any Indebtedness (including the Obligations) of
the Borrower to the Lender and with any security or guaranty for such Indebtedness, and, without
limiting the foregoing, may accept partial payments on account of any Indebtedness or obligation of
the Borrower (including the Obligations), and may grant extensions or renewals of all or any part
of any such Indebtedness, and may, at any time and from time to time, release all or any part of
the security or guaranty for, and demand or receive additional security or guaranty for, any such
Indebtedness or obligation of the Borrower.

     2.11 Release of Other Guarantors; Release of Collateral.

          (a) The Lender, may, without notice to the Guarantors, and without prejudice to this Guaranty,
release and discharge from liability any other Guarantors or other guarantor of, or surety for, the
payment of any Indebtedness or obligation of the Borrower to the Lender and each Guarantor agrees
to remain bound hereby notwithstanding.

          (b) The Lender may, without notice to the Guarantors, and without prejudice to this Guaranty,
release and discharge any collateral granted or assigned to the Lender to secure the payment of any
Indebtedness or obligation of the Borrower to the Lenders and each Guarantor agrees to remain bound
hereby notwithstanding.

     2.12 Additional Default Under Agreement. Each Guarantor hereby acknowledges and
agrees that any violation by such Guarantor of the terms, conditions, representations, warranties,
covenants and agreements herein set forth shall constitute an Event of Default under the terms of
the Credit Agreement.

     2.13 Severability; Modification to Conform to Law.

          (a) It is the intention of the parties that this Guaranty be enforceable to the fullest extent
permissible under applicable law, but that the unenforceability (or modification to conform to such
law) of any provision or provisions hereof shall not render unenforceable, or impair, the remainder
hereof. If any provision in this Guaranty shall be held invalid or unenforceable in whole or in
part, this Guaranty shall be deemed amended to modify or delete, as necessary, the offending provision or provisions and to alter the bounds thereof in order to
render

 

 

it or them valid and enforceable to the maximum extent permitted by applicable law, without
in any manner affecting the validity or enforceability of the remaining provisions hereof.

          (b) Without limitation of the preceding subsection (a), to the extent that applicable law
(including applicable laws pertaining to fraudulent conveyance or fraudulent or preferential
transfer) otherwise would render the full amount of any Guarantor’s obligations hereunder invalid,
voidable, or unenforceable on account of the amount of such Guarantor’s aggregate liability under
this Guaranty, then, notwithstanding any other provision of this Guaranty to the contrary, the
aggregate amount of such liability shall, without any further action by the Lender or any other
Person, be automatically limited and reduced to the highest amount which is valid and enforceable
as determined in such action or proceeding.

          (c) Notwithstanding anything to the contrary in this Section 2.13 or elsewhere in this
Guaranty, this Guaranty shall be presumptively valid and enforceable to its full extent in
accordance with its terms, as if this Section 2.13 (and references elsewhere in this Guaranty to
enforceability to the fullest extent permitted by law) were not a part of this Guaranty, and in any
related litigation the burden of proof shall be on the party asserting the invalidity or
unenforceability of any provision hereof or asserting any limitation on any Guarantor’s obligations
hereunder as to each element of such assertion.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

          Each Guarantor represents and warrants to the Lender as follows.

     3.1 Solvency. After giving effect to the incurrence of the Indebtedness pursuant to
this Guaranty and to the transactions contemplated by this Guaranty, the Credit Agreement, the
Notes and the other Loan Documents, and the payment of all estimated legal and other fees related
hereto and thereto, such Guarantor is Solvent as of and on the Closing Date and at all times
thereafter.

     3.2 Review of Documents. Each Guarantor hereby represents and warrants that such
Guarantor has reviewed the Credit Agreement, the Notes and the other Loan Documents and, after
consultation with legal counsel, acknowledges and consents to the terms of each.

ARTICLE IV

INDEMNIFICATION

     4.1 Indemnification by Guarantors. Each Guarantor hereby agrees to indemnify the
Lender, and any of its directors, officers, employees, attorneys, agents and Affiliates (each of
the foregoing an “Indemnified Person”) against, and hold each of them harmless from, any
loss, liabilities, damages, claims, costs and expenses (including reasonable attorneys’ fees and
disbursements) suffered or incurred by any Indemnified Person (except those caused by such
Indemnified Person’s gross negligence or willful misconduct) arising out of or resulting from (i)
any breach by such Guarantor of such Guarantor’s obligations hereunder, or (ii) any investigation
or litigation relating to the foregoing. The indemnity set forth in this Section 4.1 shall be
in

 

 

addition to any other obligations or liabilities of the Guarantors to the Lender, or at common
law or otherwise. The provisions of this Section 4.1 shall survive the payment of the Obligations
and the termination of the Credit Agreement and the other Loan Documents.

ARTICLE V

MISCELLANEOUS

     5.1 Notices. All notices, statements, requests and demands given to or made upon any
party hereto in accordance with the provisions of this Guaranty shall be given or made as provided
in Section 10.3 [Notices] of the Credit Agreement.

     5.2 No Waiver. No failure or delay by the Lender in exercising any right, power or
privilege under this Guaranty, the Credit Agreement, the Notes or any other Loan Document shall
operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or privilege. The rights and
remedies herein and therein provided shall be cumulative and not exclusive of any rights or
remedies provided by law.

     5.3 Amendments and Waivers. Any provision of this Guaranty may be amended or waived
if, and only if, such amendment or waiver is in writing and is signed by the Guarantors and Lender,
as more fully set forth in Section 10.1 [Amendments and Waivers] of the Credit Agreement. Any such
amendment or waiver which complies with the provisions of this Section 5.3 shall be limited to the
matters set forth in amendment or waiver.

     5.4 Additional Guarantors. Upon the execution and delivery by any other Person of a
joinder to this Guaranty as contemplated by the Credit agreement, such Person shall become a
“Guarantor” hereunder with the same force and effect as if such Person were originally a
party to this Guaranty and named as a “Guarantor” hereunder. The execution and delivery of
any such joiner to this Guaranty shall not require the consent of any other Guarantor hereunder,
and the rights and obligations of each Guarantor hereunder shall remain in full force and effect
notwithstanding the addition of any new Guarantor as a party to this Guaranty.

     5.5 CONSENT TO JURISDICTION AND VENUE. EACH GUARANTOR AGREES THAT ANY ACTION OR
PROCEEDING ARISING OUT OF OR IN CONNECTION WITH THIS GUARANTY SHALL BE COMMENCED IN THE COURT OF
COMMON PLEAS OF LAKE COUNTY, OHIO OR IN THE DISTRICT COURT OF THE UNITED STATES FOR THE NORTHERN
DISTRICT OF OHIO AND FURTHER AGREES THAT A SUMMONS AND COMPLAINT COMMENCING AN ACTION OR PROCEEDING
IN ANY OF SUCH COURTS SHALL BE PROPERLY SERVED AND SHALL CONFER PERSONAL JURISDICTION IF SERVED
PERSONALLY OR BY CERTIFIED MAIL TO SUCH GUARANTOR AT SUCH GUARANTOR’S ADDRESS DESIGNATED PURSUANT
HERETO, OR AS OTHERWISE PROVIDED UNDER THE LAWS OF THE STATE OF OHIO. FURTHER, EACH GUARANTOR
HEREBY SPECIFICALLY CONSENTS TO THE PERSONAL JURISDICTION OF THE COURT OF COMMON PLEAS OF LAKE
COUNTY, OHIO AND OF THE DISTRICT COURT OF THE UNITED STATES FOR THE NORTHERN DISTRICT OF OHIO, AND WAIVES AND HEREBY ACKNOWLEDGES THAT SUCH

 

 

GUARANTOR IS ESTOPPED FROM
RAISING ANY OBJECTION BASED ON FORUM NON CONVENIENS, ANY CLAIM THAT ANY SUCH COURTS LACK PROPER
VENUE OR ANY CLAIM THAT ANY SUCH COURT LACKS PERSONAL JURISDICTION OVER SUCH GUARANTOR SO AS TO
PROHIBIT ANY SUCH COURT FROM ADJUDICATING ANY ISSUES RAISED IN A COMPLAINT FILED WITH ANY SUCH
COURT AGAINST SUCH GUARANTOR BY THE LENDER CONCERNING THIS GUARANTY OR ANY PAYMENT TO THE LENDER.
EACH GUARANTOR HEREBY ACKNOWLEDGES AND AGREES THAT THE EXCLUSIVE CHOICE OF FORUM CONTAINED IN THIS
SECTION 5.5 SHALL NOT BE DEEMED TO PRECLUDE THE ENFORCEMENT OF ANY JUDGMENT OBTAINED IN SUCH FORUM
OR THE TAKING OF ANY ACTION UNDER THE LOAN DOCUMENTS TO ENFORCE THE SAME IN ANY APPROPRIATE
JURISDICTION.

     5.6 Amendment and Restatement; No Novation, Etc. This Guaranty hereby amends and
restates, in their entirety, the Existing Guaranty Agreements made in favor of the Lender by the
parties thereto, and the parties hereto agree that this Guaranty is not intended to constitute, nor
does it constitute, an interruption, suspension of continuity, satisfaction, discharge of prior
duties, novation, or termination of the indebtedness, liabilities, expenses, or obligations under
the Existing Loan Agreement, and as the Existing Loan Agreement has been amended and restated by
the Credit Agreement, or the Existing Guaranty Agreements. Each Guarantor and the Lender
acknowledge and agree that each of the Existing Guaranty Agreements has continued to guaranty the
indebtedness, loans, liabilities, expenses, and obligations under the Existing Loan Agreement, and
as the Existing Loan Agreement has been amended and restated by the Credit Agreement, since the
respective date of execution of each of the Existing Guaranty Agreements; and that this Guaranty is
entitled to all rights and benefits originally pertaining to each of the Existing Guaranty
Agreements.

     5.7 Power to Confess Judgment. Each Guarantor hereby irrevocably authorizes any
attorney-at-law, including an attorney employed by or retained and paid by the Lender, to appear in
any court of record in or of the State of Ohio, or in any other state or territory of the United
States, at any time after the Loans or any of the other Obligations become due, whether by
acceleration or otherwise, to waive the issuing and service of process and to confess a judgment
against each Guarantor in favor of the Lender, and/or any assignee or holder hereof for the amount
of the Loans and any of the Obligations then appearing due from any Guarantor under this Guaranty,
together with costs of suit and thereupon to release all errors and waive all right of appeal or
stays of execution in any court of record. Each Guarantor hereby expressly (i) waives any conflict
of interest of the attorney(s) retained by the Lender to confess judgment against each Guarantor
upon this Guaranty, and (ii) consents to the receipt by such attorney(s) of a reasonable legal fee
from the Lender for legal services rendered for confessing judgment against any Guarantor upon this
Guaranty. A copy of this Guaranty, certified by the Lender, may be filed in each such proceeding
in place of filing the original as a warrant of attorney.

Each Guarantor acknowledges that it has read and understood all the provisions of this Guaranty,
including the confession of judgment and waiver of jury trial, and has been advised by counsel as
necessary or appropriate.

 

 

     5.8 Severability. Whenever possible each provision of this Guaranty shall be
interpreted in such manner as to be effective and valid under applicable law but if any provision
of this Guaranty, or any part of such provision, shall be prohibited by or invalid under applicable
law, such provision or part thereof shall be ineffective to the extent of such prohibition or
invalidity without invalidating the remainder of such provision or the remaining provisions of this
Guaranty.

     5.9 Successors and Assigns. All of the provisions of this Guaranty shall be binding
upon the Guarantors, and their respective heirs, personal representatives, successors and assigns,
and shall inure to the benefit of the Lender, and its successors and assigns; provided however,
that no Guarantor may assign such Guarantor’s obligations under this Guaranty without the prior
written consent of the Lender.

     5.10 Gender, Number. Whenever required by the context of this Guaranty, the singular
shall include the plural, and vice versa, and the masculine and feminine genders shall include the
neuter gender and vice versa.

     5.11 Headings. The headings of the articles and sections of this Guaranty are
inserted for convenience only and shall not affect the construction hereof or be taken into
consideration in the interpretation hereof or be deemed to constitute a part hereof.

     5.12 Counterparts. This Guaranty may be executed in as many counterparts as shall be
convenient, each of which when executed by the Guarantors shall be regarded as an original. All
such counterparts shall constitute but one and the same instrument. In proving this Guaranty, it
shall not be necessary to produce or account for more than one such counterpart signed by the other
party against whom enforcement is sought. Delivery of an executed counterpart of a signature page
to this Guaranty by telecopier shall be as effective as delivery of a manually executed counterpart
of this Guaranty.

     5.13 Collection Costs. The Guarantors, jointly and severally, agrees to pay
attorneys’ fees and all other costs and expenses which may be incurred by the Lender in the
enforcement of this Guaranty.

     5.14 Integration. This Guaranty constitutes the entire agreement between the parties
relating to the guarantee of the Obligations by the Guarantors and this Guaranty supersedes all
prior understandings and agreements, whether written or oral, between the parties hereto relating
to the transactions provided for herein.

     5.15 GOVERNING LAW. THIS GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF OHIO, WITHOUT REGARD TO THE PRINCIPLES THEREOF REGARDING CONFLICT OF
LAWS, EXCEPTING APPLICABLE FEDERAL LAW AND EXCEPT ONLY TO THE EXTENT PRECLUDED BY THE MANDATORY
APPLICATION OF THE LAW OF ANOTHER JURISDICTION.

     5.16 Survival. All representations, warranties, covenants and agreements of the
Guarantor contained herein or in the other Loan Documents or made in writing in connection herewith shall survive the execution and delivery of this Guaranty and the issuance of the
Notes

 

 

and shall continue in full force and effect in until Final Payment has occurred,
notwithstanding that at any time or from time to time prior thereto the Borrower may be free from
any Obligations. The obligations of the Guarantors under Sections 2.5, 4.1, 5.13 and 5.17 shall
survive the termination of this Guaranty and the discharge of the other obligations of the
Guarantors hereunder, and any other Loan Documents to which any Guarantor is a party, and shall
also survive Final Payment.

     5.17 Taxes and Fees. The Guarantors, jointly and severally, shall pay any and all
stamp, document, transfer and recording taxes, filing fees and similar impositions payable or
hereafter determined by the Lender to be payable in connection with this Guaranty and the other
Loan Documents to which the Guarantors are a party. Each Guarantor agrees to save the Lender
harmless from and against any and all present and future claims or liabilities with respect to, or
resulting from, any delay in paying or failure to pay any such taxes or similar impositions.

     5.18 WAIVER OF JURY TRIAL. EACH GUARANTOR HEREBY WAIVES THE RIGHT TO TRIAL BY JURY IN
ANY COURT AND IN ANY ACTION OR PROCEEDING OF ANY TYPE IN WHICH SUCH GUARANTOR, THE LENDER OR ANY OF
THEIR RESPECTIVE SUCCESSORS OR ASSIGNS IS A PARTY, AS TO ALL MATTERS AND THINGS ARISING OUT OF THIS
GUARANTY.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

 

 

[SIGNATURE PAGE TO AMENDED AND RESTATED

CONTINUING AGREEMENT OF GUARANTY AND SURETYSHIP]

          IN WITNESS WHEREOF, with intent to be legally bound hereby, and with the further intention
that this Amended and Restated Continuing Agreement of Guaranty and Suretyship shall constitute a
sealed instrument, each Guarantor has caused this Continuing Agreement of Guaranty and Suretyship
to be duly executed by such Guarantor, by its authorized officer as applicable, as of the date
first above written.

     WARNING-BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND
COURT TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE
TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A
COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU
MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY
GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT, OR ANY
OTHER CAUSE.

	 	 	 	 	 
	 	ONG MARKETING, INC.

 	 
	 	By:  	/s/ Richard M. Osborne      
 	(Seal)
	 	 	Name:  	Richard M. Osborne 	 
	 	 	Title:  	Chairman 	 
	 
	 	LIGHTNING PIPELINE

COMPANY, INC.

 	 
	 	By:  	/s/ Richard M. Osborne      
 	(Seal)
	 	 	Name:  	Richard M. Osborne 	 
	 	 	Title:  	Chairman/CEO 	 
	 
	 	LIGHTNING PIPELINE

COMPANY II, INC.

 	 
	 	By:  	/s/ Richard M. Osborne      
 	(Seal)
	 	 	Name:  	Richard M. Osborne 	 
	 	 	Title:  	Chairman/CEO 	 
	 
	 	 	 
	 	 	                     /s/ Richard M. Osborne
 	 
	 	 	RICHARD M. OSBORNE 	 
	 	 	 

 

 

	 	 	 	 	 

[SIGNATURE PAGE TO AMENDED AND RESTATED

CONTINUING AGREEMENT OF GUARANTY AND SURETYSHIP]

	 	 	 	 	 
	 	THE HUNTINGTON NATIONAL BANK

 	 
	 	By:  	     /s/ Bruce G. Shearer
 	 
	 	 	Name:  	Bruce G. Shearer 	 
	 	 	Title:  	Senior Vice President

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