Document:

English translation of Form of Employment

 Exhibit 10.3 
 CONFIDENTIAL 
  

 Employment Contract 
  

 Party A : Xiamen Longtop System Co., Ltd. 
 Party B : 
  

 Table of Contents 
  

							
	 Chapter
	  	Page
	1	  	:	  	Definitions	  	1
				
	2	  	:	  	Term and Effective Date of the Contract	  	2
				
	3	  	:	  	Job Description and Adjustment of Job Position	  	2
				
	4	  	:	  	Occupational Health and Safety	  	2
				
	5	  	:	  	Code of Conduct	  	3
				
	6	  	:	  	Working Hours and Overtime	  	4
				
	7	  	:	  	Remuneration	  	4
				
	8	  	:	  	Social Security and Welfare	  	5
				
	9	  	:	  	Vacation and Leave	  	6
				
	10	  	:	  	Confidentiality and Non-Competition	  	7
				
	11	  	:	  	Amendments, Renewal, Early Termination and Expiration of the Contract	  	12
				
	12	  	:	  	Compensation for Early Termination of the Contract	  	15
				
	13	  	:	  	Liabilities for Breach of the Contract	  	16
				
	14	  	:	  	Resolution of Labor Disputes	  	17
				
	15	  	:	  	Governing Law	  	17
				
	16	  	:	  	Miscellaneous	  	17
		
	Appendices:	  	
				
	1	  	:	  	Record of Job Position Change	  	
	2	  	:	  	Agreement for Renewal of Employment Contract	  	
	3	  	:	  	Agreement for Amendment to Employment Contract	  	
	4	  	:	  	 Non-Compete Agreement
	  	

  
  

 [Name to be inserted] – Employment Contract

 Senior Mgt Personnel (to be used after post-closing) 

 THIS EMPLOYMENT CONTRACT (“Contract”) is made on this      day
             month          year in
                     city, People’s Republic of China (“China”) 
 by and between 
  

							
	Party A:	  	Xiamen Longtop System Co., Ltd.	  		  	
				
		  	Legal Status	  	:	  	
				
		  	Legal Representative	  	:	  	
				
		  	Address	  	:	  	
				
	 and
	  		  		  	
				
	Party B:	  	Name	  	:	  	
				
		  	Highest Level of Education	  	:	  	
				
		  	Sex	  	:	  	
				
		  	 Date of Birth
 Day/Month/Year
	  	:	  	
				
		  	ID No.	  	:	  	
				
		  	Residential Address	  	:	  	
				
		  	 Neighborhood
 Administration Office
	  	:	  	

 (respectively a “Party” and collectively the “Parties”). 
 In accordance with the Labor Law of the People’s Republic of China, other relevant Chinese laws, regulations, policies and rules, and the local labor-related
regulations of Xiamen, China (collectively, “Chinese Law”), the Parties hereby agree, based on mutual consultation and understanding, to enter into this Contract and comply with the terms hereof. 
 CHAPTER 1: DEFINITIONS 
 Unless otherwise
agreed by the Parties, the terms used in this Contract shall have the meanings set forth below: 
  

			
	“Senior Management Personnel”	  	The general manager, deputy general manager and other department managers appointed by Party A.

  

 Employment Contract – Senior Management 
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 CHAPTER 2: TERM AND EFFECTIVE DATE 
 OF THE CONTRACT 
  

	2.1	Type of Contract and Term 

  

	 	(a)	This Contract is a fixed term contract of      year(s) and      month(s), commencing on
             and expiring on              (“Term”),with      months of
probation. 

  

	 	(b)	This Contract shall expire at the end of the Term set forth in Article 2.1(a) above, unless it is renewed or terminated early in accordance with Chapter 11 below.

  

	2.2	Effective Date 

 This Contract shall come into
effect on the date of its signing by the Parties. 
 CHAPTER 3: JOB DESCRIPTION AND ADJUSTMENT OF JOB POSITION 
  

	3.1	Job Description 

  

	 	(a)	Party A shall employ Party B to assume the position of
                    . The primary job duties of Party B are
                    . 

  

	 	(b)	Party B must at all times exert his/her best efforts to fulfill her duties in accordance with the lawful requirements stipulated by Party A, and shall complete his/her work within
the specified time limits and meet the quality standards set by Party A. 

  

	3.2	Adjustment of Job Position 

  

	 	(a)	If Party B fails to perform his/her duties satisfactorily and to meet the requirements of his/her position, Party A may, depending on the specific circumstances, promptly give Party
B a written notice that his/her job performance is unsatisfactory. Party A will give Party B a chance to improve his/her performance within one (1) month after receiving such written notice. Party B shall immediately improve his/her job
performance within this one (1)-month period. 

  

	 	(b)	If, after the expiration of the one (1)-month period specified in Article 3.2(a) above, Party B’s job performance remains unsatisfactory, Party A has the right to terminate
this Contract in accordance with Article 11.5(a)(ii) hereof. 

  

	 	(c)	Where Party B is transferred to another position, he/she must hand over his/her work properly (including any stationery, office materials, tools and products) in order to ensure the
continuity of work. 

 CHAPTER 4: OCCUPATIONAL HEALTH AND SAFETY 
  

	4.1	Party A’s Obligations 

 Party A has the
following obligations: 
  

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	 	(a)	to provide Party B with a safe and hygienic working environment that meets the relevant standards stipulated by the State; 

  

	 	(b)	to provide Party B with training in professional ethics, work skills, occupational health and safety and other relevant rules and policies (which training Party B also agrees to
undergo); and 

  

	 	(c)	to formulate operating procedures and comprehensive set of working procedures, as well as standards for the implementation thereof. 

  

	4.2	Party B’s Rights 

 Party B has the following
rights: 
  

	 	(a)	to work in an environment that meets the national standards for occupational health and safety; 

  

	 	(b)	to refuse to carry out any work assignments set by Party A that are in violation of Chinese Law or endanger Party B’s health and safety; and 

  

	 	(c)	to refuse to follow any instructions from Party A that are in violation of relevant regulations. 

 CHAPTER 5: CODE OF CONDUCT 
  

	5.1	Code of Conduct 

  

	 	(a)	Party B must comply with all of Party A’s internal rules and policies for work discipline, treat Party A’s property with care, work in an ethical manner, uphold his/her
confidentiality obligations (as set forth in the Party A’s company rules and regulations, and actively attend all training courses provided by Party A. 

  

	 	(b)	Party B must obey Party A’s instructions during the course of his/her work. 

  

	 	(c)	If the occurrence of any accident at work comes to Party B’s knowledge, he/she shall report this matter to the relevant government department according to the nature and
gravity of the accident, and shall handle the matter in an efficient and proper manner in order to ensure the safety of Party A’s personnel and properties. If the accident is serious and involves the death and/or personal injury of any
personnel, Party B shall report the matter promptly to the Chairman of the board of directors of Party A. 

  

	5.2	Disciplinary Measures 

 If Party B violates any of
Party A’s internal policies, Party A may, in accordance with the provisions hereof, impose upon Party B an administrative and/or financial penalty, and may even terminate this Contract. In addition, if Party A suffers any economic losses due to
Party B’s violation, Party A has the right to claim compensation from Party B in accordance with Chinese Law. 
  

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 CHAPTER 6: WORKING HOURS AND OVERTIME 
  

	6.1	Working Hours 

 Party B shall be subject to a
non-fixed working hour system provided that Party A has obtained the necessary approval from the relevant authorities. 
  

	6.2	Overtime 

 Due to the peculiar nature of Party
B’s work, Party A will apply to the local labor administration department for approval to implement a non-fixed working hour system, pursuant to which Party A is not obligated to pay overtime salary to Party B. 
 CHAPTER 7: REMUNERATION 
  

	7.1	Salary 

  

	 	(a)	Party A shall pay Party B a monthly salary of RMB                     .

  

	 	(b)	Party B understands the salary specified in Article 7.1(a) above, including that he/she shall pay for his/her own personal income tax and social insurance contributions.

  

	7.2	Payment Method and Time 

  

	 	(a)	Party A implements a system of monthly salary payments, under which it shall pay to Party B the full amount of his/her salary in China’s legal currency during
            , providing a detailed breakdown of such salary payment or an electronic salary slip for enquiry. The amount of lateness/absence penalty or overtime salary to Party B for
the salary payment day will be deducted or remedied as of next month. If such day falls on a rest day or an official holiday, Party A shall pay Party B’s salary on the preceding working day. 

  

	 	(b)	Party B will open an account at a branch of a commercial bank specified by Party A, into which account Party A will deposit Party B’s salary after withholding the relevant
amount of individual income tax and social security contributions on his/her behalf. 

  

	 	(c)	Upon the early termination or expiration of this Contract, Party A shall pay Party B his/her salary at the same time when it processes the related paperwork. Party B’s salary
will be calculated based on the actual number of days he/she has worked for that month. 

  

	 	(d)	The standard and calculation method for overtime pay (if applicable) are set forth in the relevant rules and regulations. 

  

	7.3	Paid Leave 

 During public holidays, family leave,
paid annual leave (if applicable), marriage leave, bereavement leave and sick leave taken by Party B, Party A will pay Party B salary for the duration of such leave to which he/she is entitled in accordance with Chinese Law. However, the Company is
not required to pay any salary or subsidies for travel leave (applies to marriage leave, bereavement leave and family leave) during weekends. 
  

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	7.4	Lawful Deduction of Salary 

 Party B understands
that Party A is entitled to deduct his/her salary in accordance with Chinese Law, and that Party A shall not be deemed to be in violation of this Contract if Party B’s salary is lawfully deducted under any of the following circumstances,
namely: 
  

	 	(a)	the withholding and payment of individual income tax by Party A on behalf of Party B; 

  

	 	(b)	the withholding and payment of contributions to various social security funds that should be borne by Party B but are paid by Party A on behalf of Party B; 

 

	 	(c)	the withholding by Party A of child support payments or alimony pursuant to court awards or judgments; 

  

	 	(d)	other expenses which, according to the relevant laws and regulations, may be deducted from Party B’s salary; 

  

	 	(e)	a reduction in Party B’s salary as a result of his/her having taken casual leave in excess of the stipulated number of days or due to absenteeism; 

  

	 	(f)	a reduction in Party B’s salary as a result of Party B not having worked as normal due to sick leave; or 

  

	 	(g)	a reduction in Party B’s salary as a result of Party B’s breach of Party A’s other policies and procedures. 

 CHAPTER 8: SOCIAL SECURITY AND WELFARE 
  

	8.1	Social Insurance 

 The Parties shall pay basic
pension, medical, unemployment insurance, other social insurance and reserve fund contributions in accordance with the relevant Chinese Law. In the case of those payments for which Party B is liable, Party A shall withhold the corresponding amount
of money from Party B’s salary. 
  

	8.2	Benefits 

 Sick leave pay, illness relief payments
and medical treatment benefits due as a result of illness or non-work-related injury sustained by Party B shall be paid by Party A in accordance with the relevant Chinese Law and relevant regulations of Party A. Salary and medical treatment benefits
as a result of a work-related illness or work-related injury sustained by Party B shall also be paid in accordance with the relevant Chinese Law. 
  

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	8.3	Training 

 (a) Party B may apply to participate in
some vocational training. If agreed by Party A, all cost (including tuition fee, traveling fee and business trip allowance) shall be equally borne both by Party A and B, while Party A will pay whole amount in advance. If Party B has continued to
work for Party A for three years after the training, he/she may not be required to reimburse the expenses paid by Party A in advance for him/her; If Party B has not worked for Party A for three years after the training, he/she shall reimburse the
expenses paid by Party A in advance for him/her proportionally (calculated in months), unless it is Party A which terminates the employment of Party B. 
 (B) Party B may participate in the company internal training free of charge. 
 (C) In the case of a
separated training agreements exist between two parties, the training agreement shall prevail. 
 CHAPTER 9: VACATION AND LEAVE 

  

	9.1	Public Holidays 

  

	 	(a)	Party B will be entitled to enjoy on an annual basis those public holidays specified by Chinese Law. 

  

	 	(b)	All national public holidays that fall either on a Saturday or Sunday may be taken on the following working day. However, holidays falling on a Saturday or Sunday that are
celebrated by some but not all citizens may not be taken on the following working day. 

  

	 	 (c)
	 Female employees are entitled to a half-day’s holiday each year on Woman’s Day (March 8th). 

  

	9.2	Annual Leave 

  

	 	(a)	Party B is entitled to paid annual leave in accordance with the relevant Chinese Law and Party A’s policies. The specific provisions regarding paid annual leave should be
stated in the Employee Handbook. 

  

	 	(b)	If Party B wishes to take paid annual leave, he/she shall apply in writing at least two (2) weeks in advance to his/her supervisor, who will determine and make appropriate
arrangements for Party B’s leave based on the actual circumstances and operational requirements of such department and Party A as a whole. 

  

	 	(d)	For the purposes of calculating leave, a year shall mean a calendar year. 

  

	 	(e)	Paid annual leave is valid for two years. 

  

	 	(e)	Paid annual leave is calculated by days and not by hours. 

  

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	9.3	Additional Leave 

 Party B will be entitled to
additional leave for marriage leave, bereavement leave, casual leave, family leave and sick leave. For details, please refer to the Employee Handbook. 
 CHAPTER 10: CONFIDENTIALITY AND NON-COMPETITION 
  

	10.1	Confidentiality Obligations 

  

	 	(a)	Party B shall, during the Term hereof and after termination of this Contract, abide by the confidentiality guidelines formulated by Party A, as follows: 

  

	 	(i)	Without Party A’s prior written consent, Party B may not: 

  

	 	(A)	use any Trade Secret (as defined in Article 10.2 below) in any way that is unrelated to his/her duties; 

  

	 	(B)	divulge any Trade Secret in any form whatsoever to any third party; or 

  

	 	(C)	use or allow any third party to use any Trade Secret obtained through improper means. 

  

	 	(ii)	Party B is obliged to make every effort to prevent any third party from stealing Trade Secrets. 

  

	 	(b)	For the purpose of this Contract, the term “obtained through improper means” as referred to in Article 10.1(a)(i)(C) above shall include the acquisition of a Trade Secret
by means of theft, fraud, threat, bribery, unauthorized reproduction, violation of confidentiality obligations, enticement of others to violate confidentiality obligations or other similar means. 

  

	 	(c)	If Party B violates the provisions of Article 10.1(a) above and causes losses to Party A, Party A shall have the right to terminate this Contract immediately and Party B must
compensate Party A in accordance with Article 13.4(b) below. 

  

	10.2	Definition 

  

	 	(a)	For the purpose of this Contract, a “Trade Secret” refers to any proprietary technical information and business information owned by Party A which is unknown to the
public, is of economic benefit to Party A, has a practical application and for which reasonable protective measures have been adopted by Party A; including without limitation, any of the following information or materials owned by Party A
(regardless of the type of media on which the Trade Secret is stored or recorded): 

  

	 	(i)	Party A’s company files and documents, including, without limitation, any types of contract, agreement, letter of intent (regardless of whether it is in writing or any other
form), personnel files, administrative documents and information regarding Party A’s investors, vendors, customers or suppliers; 

  

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	 	(ii)	any information relating to Party A’s business activities and business development, such as costs, business plans (including future plans made during the Term hereof), business
strategies (including pricing strategies), marketing strategy and plans, distributors, distribution channels, sales models, quotations, client lists and other relevant information; 

  

	 	(iii)	any information regarding the financial status of Party A, such as its assets, debts, account receivables, status of commercial operations and investments; 

 

	 	(iv)	any information concerning Party A’s management models; 

  

	 	(v)	any algorithms, work flows or techniques that are developed by Party A, and materials relating to the principles underlying such algorithms, work flows or techniques;

  

	 	(vi)	any information relating to computer hardware and software improvement, including without limitation, methods for the improvement of any hardware and software and the related
drawings, testing results, operational results and manuals, reports and record materials, and software programs (including source programs, source codes, object codes, database, software installation and maintenance methods); and

  

	 	(vii)	any information relating to know-how, including, without limitation, technological methods, technological processes, data, formulae, technical specifications, quality control and
management methods as well as other relevant materials, which are not publicly available and have not been applied for registration as patents or otherwise registered for the protection of IPRs (as defined in Article 10.6(b) below).

  

	 	(b)	The obligations provided in Article 10.1 above shall not apply to the following information which has been: 

  

	 	(i)	made known to the public, but excluding any information that has been disclosed to the public due to a violation by Party B of its confidentiality obligations;

  

	 	(ii)	proven by Party B that it was given to Party B by a third party who is not obligated to maintain confidentiality; 

  

	 	(iii)	proven by Party B that it was obtained by Party B prior to the date of this Contract; or 

  

	 	(iv)	used or disclosed by Party B pursuant to a court order or other legal requirement, under which circumstances the extent of Party B’s use and disclosure of such shall be limited
solely to that information or those materials required to be disclosed pursuant to the said legal requirement, and Party B shall notify Party A in advance of such use or disclosure (in the event that Party B is unable to notify Party A in advance of
such use or disclosure, Party B must notify Party A thereof within a reasonable time period thereafter) so that Party A can adopt suitable protective measures. 

  

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	 	(c)	Party B acknowledges and agrees that, due to Party A’s business operations and the requirements of Party B’s position, Party B may, from time to time, have access to
confidential information owned by Party A’s parent company, group companies, its affiliates or subsidiaries. 

 Party B
further acknowledges and agrees that, provided that Party A has informed Party B in writing concerning the relevant confidential information and that Party A has adopted appropriate protective measures to maintain the confidentiality thereof, and
that Party B has been granted access to such information owned by Party A’s parent company, group companies, its affiliates or subsidiaries, such information shall be deemed to be Trade Secrets as defined within this Contract and shall,
therefore, fall within the scope of Party B’s confidentiality obligations as specified in this Chapter. 
  

	10.3	Confirmation 

  

	 	(a)	If Party B is uncertain as to the nature and degree of confidentiality applicable to any piece of information, he/she is obliged to seek written clarification from the General
Manager of Party A. Party B agrees to treat such information as Trade Secrets unless Party B has written verification from the General Manager of Party A that such information is neither confidential nor proprietary. 

  

	 	(b)	If Party B acts on his/her own initiative in respect of disclosing the Trade Secrets without first securing the said consent from Party A and thereby causes loss to Party A, Party B
will be liable for related compensation and any other legal liabilities pursuant to Chinese Law. 

  

	10.4	Return of Party A’s Property 

  

	 	(a)	Upon the expiration or early termination of this Contract for any reason, Party B shall immediately hand over, in good condition and in full, any property used during his/her
employment to Party A. 

  

	 	(b)	If Party B fails to return any of the above (including any photocopies thereof) and thereby causes losses to be incurred by Party A, he/she shall assume legal liability for such
losses and pay compensation to Party A accordingly. In such regard, Party A shall be entitled to make a corresponding deduction from the final settlement payable to Party B and may take any other appropriate recourse to safeguard its legal rights.

  

	10.5	Non-Competition 

 Depending on its need, Party A may
sign a separate non-compete agreement with Party B which specifies the non-compete obligations of Party B. The said non-compete agreement is attached hereto as an Appendix, which shall have the same legal effect as this Contract. In the event of any
conflict between the non-compete agreement and this Contract, the non-compete agreement shall prevail with respect to any disputes over non-compete issues. 
  

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	10.6	Intellectual Property Rights 

  

	 	(a)	Party B represents and warrants to Party A that he/she shall not, during the Term hereof and at any time following the expiration or early termination of this Contract, infringe,
obtain or use any intellectual property rights of Party A, unless they are obtained or used by Party B in the course of the performance of his/her job duties as an employee of Party A. 

  

	 	(b)	For the purpose of this Contract, the term “Intellectual Property Rights” (IPRs) shall mean: 

  

	 	(i)	copyright; 

  

	 	(ii)	trademarks (including product trademarks and service trademarks), trade names and other rights which are relevant to commercial logos, regardless whether the medium of expression is
words, numerals, three-dimensional logos, graphics, colors, or a combination of the abovementioned elements; 

  

	 	(iii)	inventions, patents, utility models and design patents (regardless of whether they are registered or under application); 

  

	 	(iv)	Trade Secrets; and 

  

	 	(v)	all other IPRs (whether or not registered or under application, including but not limited to goodwill and database rights. 

  

	 	(c)	Party B acknowledges and agrees that the following inventions or designs shall be deemed to be work-related: 

  

	 	(i)	all inventions or designs made by him/her during the execution of the duties or other tasks assigned to him/her by Party A; 

  

	 	(ii)	all inventions and designs made by him/her primarily with the use of Party A’s materials and technical resources; and 

  

	 	(iii)	all invention and designs made by him/her within one year after the expiration or termination of this Contract, which are related to the duties or other tasks assigned to him/her by
Party A. 

 The right to apply for patents of such work-related inventions or designs shall belong to Party A. Upon securing the
approval for the grant of such patent, Party A shall become the owner of such patent. If Party B has made innovative contributions to the substantive features of such work related inventions or designs, Party B may be named as the inventor or
designer of the relevant inventions or designs. 
  

	 	(d)	Party B understands and agrees that: pursuant to the Copyright Law of the People’s Republic of China, during the period of Party B’s employment with Party A, Party
B shall create copyright works pursuant to Party A’s instructions and arrangements. The creation of such works shall be sponsored by Party A and represent Party A’s will. As such, Party A shall assume the responsibility for the creation of
such works, and which works shall be deemed to be the works created by a legal person and Party A shall enjoy the copyright (and the right of attribution) thereof. 

  

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 Party B further agrees that, in any event, it will not claim the right of attribution against Party A by
any means (such as legal proceedings), unless under those circumstances where Chinese Law mandates that the right of attribution must belong to Party B, Party B will be entitled to the right of attribution; however, Party A shall enjoy all other
rights associated with the copyright. 
  

	 	(e)	In addition to the abovementioned Articles 10.6(c) and 10.6(d), Party B agrees that all other IPRs created in the course of the performance of his/her work assigned to him/her by
Party A or primarily with the use of Party A’s materials or technical resources during the period of his/her employment with Party A shall belong to Party A. Party B agrees that, in any event, it will not claim the right of attribution against
Party A by any means (such as legal proceedings), unless under the circumstances where Chinese Law mandates that the right of attribution must belong to Party B, then Party B will be entitled to the right of attribution; however, Party A shall enjoy
all other rights associated with the IPRs. 

  

	 	(f)	The Parties agree that rewards such as remuneration and welfare paid by Party A to Party B have included and taken into account the work-related inventions, work for hire and other
IPRs made by Party B in the aforementioned Articles 10.6(c), 10.6(d) and 10.6(e); however, Party A may grant Party B additional rewards for Party B’s contributions regarding IPRs and the amount of such additional rewards shall be determined by
Party A at its sole discretion. 

  

	 	(g)	Party B agrees, during the Term of this Contract and at any time after the early termination or expiration of this Contract, when requested by Party A at any time in writing and at
Party A’s reasonable expense, to assist Party A to complete the relevant application and registration procedures or other legal formalities both within the territory of PRC and abroad (including the signing of all written documents and being a
witness in lawsuits), to enable Party A to obtain benefits to be derived from the IPRs mentioned in Articles 10.6(c), 10.6(d) and 10.6(e) above, and to undertake all other matters necessary for this purpose as requested by Party A.

  

	 	(h)	Party B acknowledges that all the research, inventions or designs made by him/her before the Term hereof shall not be subject to the restrictions specified in Article 10.6 hereof.
Notwithstanding the above, Party B agrees that, at any time upon Party A’s written request, Party B shall provide Party A with the relevant materials proving that such research, inventions or designs had been made before the Term hereof.

  

	 	(i)	Party B agrees that all materials (including but not limited to text, drafts, audio or visual materials) which relate to the IPRs mentioned in this Article 10.6 shall be regarded as
Party A’s property; and upon Party A’s request at any time, Party B shall provide such materials to Party A. Party B warrants that he/she shall not, at any time during or after the Term hereof, disclose the contents of the aforementioned
materials to any person, unless it is disclosed to the person duly authorized by Party A in writing. 

  

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 CHAPTER 11: AMENDMENTS, RENEWAL, EARLY TERMINATION 
 AND EXPIRATION OF THE CONTRACT 
  

	11.1	Amendments 

  

	 	(a)	This Contract may only be amended under either of the following circumstances: 

  

	 	(i)	upon the mutual consent of the Parties; or 

  

	 	(ii)	upon a change in the laws, regulations or rules under which this Contract was entered into, pursuant to which the relevant terms and conditions of this Contract should be amended
accordingly. 

  

	 	(b)	If either Party wishes to amend this Contract for any reason, it must notify the other Party of such in writing thirty (30) days in advance. The other Party shall reply to such
notice within fifteen (15) days following the serving of such notice, failing which such Party shall be deemed not to agree to the amendment of this Contract and the Parties shall continue to perform their respective obligations hereunder,
unless otherwise required by the relevant Chinese Law. 

  

	 	(c)	Any amendments to this Contract shall only become effective if such amendments are made in accordance with the written agreement duly signed by the Parties (except for the company
rules and regulations). 

  

	11.2	Renewal 

 (a) In the case of Party B has been
assigned by Party A to work in some on-going projects, which exceed this contract’s term, the contract should be deemed as being extended automatically until the completion of the projects, unless Party B submit a written objection. 

(b) Except above 11.2(a), if either Party wishes to renew this Contract upon its expiration, that Party should issue to the other Party a written
request to this effect at least thirty (30) days prior to the expiration date. If both of the Parties so agree, this Contract may be renewed. 
  

	11.3	Termination by Mutual Consultation 

 This Contract
may be terminated early with the mutual consultation and agreement of the Parties. 
  

	11.4	Immediate Termination 

 Party A is entitled to
terminate immediately this Contract by serving a written notice to Party B under any of the following circumstances, including: 
  

	 	(a)	where Party B commits a serious violation of Party A’s prescribed code of conduct or work policies and procedures; 

  

	 	(b)	where Party B commits a serious dereliction of his/her duties or practices graft or favoritism, thereby causing serious losses to Party A; or 

  

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	 	(c)	where Party B is subject to criminal investigation in accordance with Chinese Law. 

  

	11.5	Termination with Prior Notice 

  

	 	(a)	Party A may terminate this Contract by providing Party B with thirty (30) days’ prior written notice under any of the following circumstances: 

  

	 	(i)	where, after taking a medical leave and recuperating from an illness or a non-work-related injury, Party B remains unable to return to his/her original position, and is also unfit
for reassignment to other duties; 

  

	 	(ii)	where Party B is unable to fulfill the duties of his/her position, despite undergoing training or a transfer to another position; or 

  

	 	(iii)	where there has been a substantial change in the objective circumstances under which this Contract was executed, thereby rendering the performance of this Contract impossible and,
after consultation, the Parties fail to agree on amendments hereto that would accommodate such a change. 

  

	 	(b)	If Party A fails to provide Party B with thirty (30) days’ prior written notice of termination in accordance with Article 11.5(a) above, Party A may also terminate this
Contract by paying Party B thirty (30) days’ salary in lieu of the said prior notice. 

  

	11.6	Restrictions on Party A’s Right to Early Termination 

 Party A may not terminate this Contract early pursuant to Article 11.5 hereof under any of the following circumstances (unless otherwise mutually agreed by the Parties): 
  

	 	(a)	where Party B is suffering from an illness or injury within the stipulated medical leave; 

  

	 	(b)	where Party B is suffering from an occupational disease or a work-related injury which has been classified as reaching a disability level; 

  

	 	(c)	where Party B is pregnant, on maternity leave or undergoing a nursing period, provided that Party B has not violated Party A’s employment discipline; or

  

	 	(d)	under other circumstances specified by law, administrative rules and regulations. 

  

	11.7	Early Termination by Party B 

  

	 	(a)	Party B may terminate this Contract with one hundred and twenty (120) days’ prior written notice to Party A (except under any of the circumstances described in Article
11.3 above or Article 11.7(d) below), receipt of which notice Party A shall accept; however, in this situation, Party A need not pay any economic compensation to Party B. 

  

	 	(b)	If Party B is unable to provide Party A with one hundred and twenty (120) days’ prior written notice in accordance with Article 11.7(a) above, Party B may terminate this
Contract by paying Party A the corresponding amount of the daily salary in lieu of the said notice period. 

  

 Employment Contract – Senior Management 
 - 13 - 

	 	(c)	If Party B demands the early termination of this Contract in violation of the stipulation that one hundred and twenty (120) days’ advance notice be provided in writing and
thereby causes financial losses to Party A, Party B shall be liable for compensation in accordance with Chinese law and the stipulations of this Contract. 

  

	 	(d)	Party B may terminate this Contract with immediate effect by providing written notice to Party A under any of the following circumstances: 

  

	 	(i)	where Party A forces Party B to work by means of force, threats, detention or the illegal restriction of his/her personal liberty; or 

  

	 	(ii)	where Party A fails to pay renumeration or provide appropriate working conditions in accordance with this Contract. 

  

	11.8	Expiration 

  

	 	(a)	This Contract will immediately expire under any of the following circumstances: 

  

	 	(i)	upon its expiry (unless it is renewed by the Parties in accordance with Article 11.2 above); 

  

	 	(ii)	when Party B reaches legal retirement age under Chinese Law; 

  

	 	(iii)	when Party B dies or has been declared missing or dead by the people’s court; or 

  

	 	(iv)	where Party A becomes bankrupt, is dissolved or has its business license revoked. 

  

	 	(b)	Where Party A terminates this Contract in accordance with Article 11.8(a)(i) or 11.8(a)(iv) above, Party A shall provide Party B with a written certification of termination of this
Contract and undertake the relevant procedures. 

  

	11.9	Matters Following Expiration or Termination 

  

	 	(a)	Upon the early termination or expiration of this Contract, unless otherwise agreed by the Parties, Party B shall immediately: 

  

	 	(i)	cease to engage in any activity in the name of Party A and, upon Party A’s request, complete all the outstanding works; 

  

	 	(ii)	hand over to Party A completely and in full the work undertaken by him/her in the name of Party A during the course of his/her employment; and 

  

	 	(iii)	return in good condition and in full any materials (including copies thereof) such as files, records, Trade Secrets and equipment or any other property obtained from Party A or held
by Party B during the course of his/her employment or relating to Party A’s business. Without the written consent of Party A, Party B shall not take any of the aforesaid materials or Party A away from Party A’s premises.

  

 Employment Contract – Senior Management 
 - 14 - 

	 	(b)	If Party B fails to return to Party A any documents (including photocopies thereof) or property belonging to Party A, Party A is entitled to make an appropriate deduction from the
final amount of salary payable to Party B, and may also adopt other appropriate measures for the purpose of protecting its legal interests. 

 CHAPTER 12: ECONOMIC COMPENSATION FOR EARLY TERMINATION 
 OF THE CONTRACT

  

	12.1	Payment Term 

 Following early termination of this
Contract, Party A shall pay any economic compensation due to Party B in a lump sum promptly upon the completion by Party B of any termination procedures and confirmation that Party B does not owe Party A any further expenses. 
  

	12.2	Service Period and Basis of Calculation 

  

	 	(a)	The amount of economic compensation payable by Party A to Party B will be calculated according to the length of Party B’s employment with Party A. One (1) month’s
salary shall be paid for each year of Party B’s employment. If Party B has worked for Party A for less than one (1) year, Party A shall pay economic compensation to Party B based on the standard for one (1) full year (that is, one
(1) month’s salary). 

  

	 	(b)	For the purpose of calculating the economic compensation, the term “salary” refers to the average monthly wage paid by Party A to Party B under normal working conditions
during Party B’s last twelve (12) months of employment immediately prior to termination. 

  

	12.3	Payment by Party A 

 Notwithstanding the provisions
set forth in Article 12.2(a) above, if this Contract is terminated in accordance with Article 11.3 and 11.5(a)(ii), the amount of economic compensation payable by Party A to Party B under such circumstances may not exceed twelve
(12) months’ salary. 
  

	12.4	Exemptions 

 Party A is not obliged to pay Party B
any economic compensation under any of the following circumstances: 
  

	 	(a)	expiration of this Contract; 

  

	 	(b)	termination by Party B of this Contract, except for the circumstances provided for in Article 11.7(d)(i) or 11.7(d)(ii) hereof; 

  

	 	(c)	the occurrence of those conditions agreed upon by the Parties as causing the termination of this Contract; or 

  

 Employment Contract – Senior Management 
 - 15 - 

	 	(d)	termination of this Contract by Party A in accordance with Article 11.4 hereof. 

 CHAPTER 13: LIABILITIES FOR BREACH OF THE CONTRACT 
  

	13.1	Liquidated Damages 

 Early termination of this contract by
either party will cause compensation to the other party, unless otherwise specified herein. A corresponding amount of                     
will be paid to the other party as penalty. The amount will be calculated in accordance with the remaining months of the contract (in the case of less than one month, it will be counted as one month). 
 How to calculate the liquidated damages: 
 Average month salary for the early 12 months before contract termination×3×months to be early terminated. 
  

	13.2	Party A’s Breach 

 If Party A terminates this
Contract in such a way as to constitute a breach hereof and causes losses to Party B, Party A must compensate Party B in accordance with Chinese Law. 
  

	13.3	Additional Economic Compensation 

 If, after the
termination of this Contract by Party A, Party A fails to pay Party B economic compensation in accordance with Chinese Law and the relevant stipulations hereof, in addition to the total amount of compensation payable in accordance with Chapter 12
above based on the specific circumstances, Party A shall pay additional economic compensation to Party B equivalent to fifty percent (50%) of the total amount originally payable. 
  

	13.4	Party B’s Breach of Contract 

  

	 	(a)	If Party B violates Chinese Law or the provisions of this Contract and causes Party A to suffer losses as a result, then Party A has the right to impose upon Party B an
administrative and/or financial penalty in accordance with Chinese Law. In addition, depending on the extent of losses incurred, Party A is entitled to sue Party B, by means of legal action, for losses and other legal liabilities.

  

	 	(b)	If Party B breaches the confidentiality provisions of Chapter 10 above or Party B’s non-compete obligations as agreed in the Non-Compete Agreement attached hereto as an
Appendix to this Contract, thereby causing losses to Party A, Party A shall have the right to impose a punishment on Party B, and may require Party B to compensate Party A in accordance with relevant Chinese Law. 

  

 Employment Contract – Senior Management 
 - 16 - 

	 	(c)	If Party B terminates this Contract in violation of Chinese Law or the terms hereof and thereby causes losses to Party A, Party B shall compensate Party A for the following:

  

	 	(i)	any expenses which Party A paid to recruit Party B; 

  

	 	(ii)	any expenses paid by Party A for the training of Party B. 

  

	 	(iii)	direct financial losses sustained by Party A in relation to its operations and business. 

 CHAPTER 14: RESOLUTION OF LABOR DISPUTES 
  

	14.1	Friendly Consultations 

 In the event of a dispute
arising during the performance of this Contract, the Parties agree to resolve in the first instance such dispute through friendly consultation. 
  

	14.2	Mediation and Arbitration 

  

	 	(a)	If the dispute cannot be resolved in the manner outlined in Article 14.1 above, either Party may apply to Party A’s mediation committee for mediation of the dispute (if
applicable). 

  

	 	(b)	If mediation fails or the Parties are not willing to mediate, either Party may, within sixty (60) days following the occurrence of the dispute (e.g. calculated from the date
the infringed Party should know or should have known that its rights had been infringed), submit the dispute to the labor dispute arbitration committee within the relevant jurisdiction for arbitration. Alternatively, either Party may, at any time,
apply directly to the labor dispute arbitration committee within the relevant jurisdiction for arbitration. 

  

	14.3	Litigation 

 If either Party disagrees with an
arbitral award, it may initiate action in the people’s court of relevant jurisdiction within fifteen (15) days after receiving the said arbitral award. 
 CHAPTER 15: GOVERNING LAW 
 The validity, interpretation and implementation of this Contract, as well as the
settlement of any disputes arising hereunder, is governed by Chinese Law. 
 CHAPTER 16: MISCELLANEOUS 
  

	16.1	Entire Contract 

  

	 	(a)	This Contract and the Appendices constitute the entire contract between the Parties and supersedes all prior discussions, negotiations and contracts. The Appendices are a supplement
to this Contract and have the same legal effect as this Contract. 

  

 Employment Contract – Senior Management 
 - 17 - 

	 	(b)	The Employee Handbook is Party A’s policies and procedures and may be amended from time to time to reflect changes in Chinese Law. Party A shall inform Party B of any amendment
by the means of public notice. 

  

	16.2	Severability 

 The invalidity of any Article of this
Contract will not affect the validity of any other Article. 
  

	16.3	Non-Waiver 

 Waiver by either Party of any right
under this Contract will not operate or be interpreted as a waiver of similar or other rights under this Contract. 
  

	16.4	Days 

 Any reference herein to a day is to a
calendar day. Working days refers to the days upon which commercial banks in China are open for business. 
  

	16.5	Headings 

 The headings of this Contract are
inserted for reference purposes only, have no binding effect and shall not affect the interpretation of any provision hereof. 
  

	16.6	Counterparts 

 This Contract is prepared in two.
Party A may not retain on behalf of Party B the original version that is intended for Party B. 
  

	16.7	Supplementary Agreements 

 If any other agreements
made between the Parties for the renewal (if applicable) and/or amendment of this Contract cannot be included in the available pages, additional pages may be annexed hereto, provided that all annexed pages are initialed by the Parties, failing which
the said pages shall be deemed to be invalid. 
  

	16.8	Matters Not Addressed 

 Where any matter is not
addressed herein or a newly promulgated and implemented Chinese Law renders certain provisions hereof unlawful, such matter shall be handled in accordance with the relevant stipulations of that newly promulgated and implemented Chinese Law.

 IN WITNESS WHEREOF this Contract has been signed by the Parties on the date first specified above. 
 Party A 
 Xiamen Longtop System Co., Ltd. 
  

							
	Signature of authorized representative:	 	  
	 		 	

  

 Employment Contract – Senior Management 
 - 18 - 

							
	Name of authorized representative:	 	    [·]	 		 	
				
	Title:	 		 		 	
				
	Company seal:	 		 		 	

 Party B 
                                       
  (Name in Print) 
  

									
		 	Signature:	 	  
	 		 	

  

 Employment Contract – Senior Management 
 - 19 - 

 APPENDIX 1 
 RECORD OF CHANGE OF JOB POSITION 
  

											
	 Date of Change
	 	 Original Position
	 	 New Position
	 	 Reason for Change
	 	 Party A’s signature
 and seal
	 	 Party B’s signature

  

 Employment Contract – Senior Management 
 - 20 - 

 APPENDIX 2 
 AGREEMENT FOR RENEWAL OF EMPLOYMENT CONTRACT 
 This Contract is a
                     term contract, commencing on
                     and expiring on
                    . 
  

													
	Party A (Company Seal)	 	Party B (Signed)
					
	Legal Representative         	 		 		 		 	
					
	or Authorized Agent (Signed)	 	 Date:
	 	  
	 		 	

 This Contract is a
                     term contract, commencing on
                     and expiring on
                    . 
  

													
	Party A (Company Seal)	 	Party B (Signed)
					
	Legal Representative	 		 		 		 	
					
	or Authorized Agent (Signed)	 	 Date:
	 	  
	 		 	

  

 Employment Contract – Senior Management 
 - 21 - 

 APPENDIX 3 
 AGREEMENT FOR AMENDMENT TO EMPLOYMENT CONTRACT 
 Party A and Party B agree, based on the principles of equality, free
will and mutual consent, to amend this Contract as follows: 
  

													
	Party A (Company Seal)	 	Party B (Signed)
					
	Legal Representative	 		 		 		 	
					
	or Authorized Agent (Signed)	 	 Date:
	 	  
	 		 	

  

 Employment Contract – Senior Management 
 - 22 - 

 APPENDIX 4 
 NON-COMPETE AGREEMENT 
  

 Employment Contract – Senior Management 
 - 23 -Natural Gas Asset Management Agreement

 Exhibit 10.1 
 NATURAL GAS ASSET MANAGEMENT AGREEMENT 
 BETWEEN 
 ROANOKE GAS COMPANY 
 AND 
 CONOCOPHILLIPS COMPANY 

 NATURAL GAS ASSET MANAGEMENT AGREEMENT 
 PREAMBLE 
 This Natural Gas Asset Management Agreement (the “Agreement”) is made and
entered into effective as of November 1, 2007, (the “Effective Date”) by and between Roanoke Gas Company (“Counterparty”), a Virginia corporation, and ConocoPhillips Company (“Manager”), a
Delaware corporation. Counterparty and Manager are sometimes hereinafter referred to collectively as the “Parties” and singularly as a “Party”. 
 WHEREAS, Counterparty has certain Firm natural gas transportation and storage rights and gas supply inventories and utilizes such transportation, storage rights and gas supply inventories (hereafter referred to collectively as the
“Asset Portfolio”) to provide a secure and reliable source of natural gas supply available for delivery to Counterparty; 
 WHEREAS, Counterparty
desires to optimize the use of such Asset Portfolio; 
 WHEREAS, Counterparty has chosen Manager to assist Counterparty in optimizing the use of such Asset
Portfolio, and 
 WHEREAS, in order to accomplish the results described above, Manager is prepared to provide to Counterparty services substantially the same
as those embedded in such Asset Portfolio; 
 NOW, THEREFORE, in consideration of the mutual covenants and obligations contained in this Agreement,
Counterparty and Manager agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 1.01 Defined Terms 
 The terms set forth below shall have the meaning ascribed to them below. Other terms are also defined elsewhere in this Agreement, and shall have the meanings ascribed to them therein. 
 “Agreement” shall mean this document and all attachments and exhibits hereto, as each of the same may be amended from time to time. 
 “Asset Manager” or “Manager” shall mean ConocoPhillips Company. 
 “Bankruptcy Default” shall mean, with respect to either Party, such Party (or its Guarantor, if
applicable) (i) makes an assignment or any general arrangement for the benefit of creditors; (ii) files a petition or otherwise commences, authorizes, or acquiesces in the commencement of a bankruptcy proceeding against it;
(iii) otherwise becomes bankrupt or insolvent (however evidenced); or (iv) becomes unable to pay its debts as they fall due.1 

 “Baseload Gas” shall mean a Firm, fixed volume of Gas which Counterparty commits to purchase each Day of a
given Month, and which Manager commits to deliver and sell at a price calculated according to the methodology set forth in Article IV and as shown in Exhibit G. 
 “British Thermal Unit (Btu)” shall mean the amount of heat required to raise the temperature of one (1) pound of pure water one (1) degree Fahrenheit at sixty (60) degrees Fahrenheit measured on a dry basis at
fourteen and seventy-three hundredths (14.73) pounds per square inch absolute (psia). For reporting purposes, Btu conversion factors of not less than three (3) decimal places shall be used. 
 “Business Day” shall mean a calendar day on which both Parties are open for business. 
 “Capacity Release” shall mean those contract rights released to Manager, as specifically set forth in Section 2.01 of this Agreement, and for which Manager is designated agent, as provided in
Section 3.01. 
 “Central Clock Time” and “CCT” shall mean Central Daylight Time when daylight savings time is in effect and Central
Standard Time when daylight savings time is not in effect. 
 “Counterparty City Gate” or “City Gate” shall mean any interconnection
between the facilities of a Transporter and the facilities of Counterparty. 
 “Counterparty Storage Account” shall mean the account created by
Manager, pursuant to Section 4.02, to record the initial Gas inventory assigned by agency agreement to Manager by Counterparty and all subsequent SVIVS and SVWVS. 
 “Counterparty Storage Volume” shall mean the total storage volume contractual rights of the Counterparty under the Storage Agreements. 
 “Day” or “Gas Day” shall mean a period of twenty-four (24) consecutive hours beginning and ending at nine o’clock (9:00) a.m. CCT, or such other time as may be specified in the
applicable Transporter’s Tariff. 
 “Delivery Point(s)” shall mean any point or points on a Transporter’s pipeline system at which
Counterparty has the right to receive Gas at the Citygates or at a Storage Facility, such point or points to be designated by Counterparty from time to time pursuant to the nomination process. 
 “DTH means dekatherm, which is equivalent to an MMBtu. 
 “Effective Date” shall mean the Day on which this Agreement becomes effective, as set forth in the Preamble of this Agreement. 
 “FERC” shall mean the Federal Energy Regulatory Commission or any successor regulatory agency or body which has authority to regulate the rates and/or the services of the Parties. 
 “Firm” means that either Party may only interrupt its performance to the extent caused by an applicable Force Majeure event or the non-performance of the other
Party. 

 “Force Majeure”, as employed within this Agreement, shall mean acts of God, including epidemics, landslides,
lightning, earthquakes, hurricanes, storms, fires, floods, washouts and other similar unusual and severe natural calamities; acts of the public enemy, wars, blockades, insurrections, riots, civil disturbances, arrests and any laws, orders, rules,
regulations, acts, restraints of any government or governmental body or authority, civil or military, which have the effect of prohibiting or substantially impairing performance of a Party’s obligations hereunder; strikes, lockouts, or other
labor disturbances; explosions, breakage or accidents to wells, machinery or lines of pipe; the necessity for making non-routine repairs or alterations to machinery or lines of pipe, freezing of lines of pipe; inability to obtain materials,
supplies, permits, or labor to perform or comply with any obligation or condition of this Agreement; the unavailability, interruption or curtailment of services provided by a Service Provider under any of the contract rights released to Manager
pursuant to this Agreement or under any other contract for Firm transportation or storage service engaged by Manager for delivery of Gas to Counterparty. Force Majeure shall not include the unavailability of capacity under any released contract to
the extent the unavailability is the result of Manager utilizing the capacity to deliver Gas to a third party, the inability to inject or to withdraw Gas to the extent such inability is the result of the actual storage inventory under such Storage
Agreements being inadequate for such purposes as a result of acts or omissions by Manager, or any other cause, whether of the kind herein enumerated or otherwise, not within the control of the Party claiming suspension and which by the exercise of
due diligence such Party is unable to prevent or overcome. Force Majeure shall also not include: (1) failure or loss of Counterparty’s market(s), (2) the inability of Manager to perform its obligations at a profit, (3) any
unanticipated increases in Manager’s cost of Gas, or (4) the loss of any particular source of supply, unless caused by an event of Force Majeure affecting a geographic region. 
 “Gas” or “Natural Gas” shall mean any mixture of hydrocarbons or of hydrocarbons and non-combustible gases, in a gaseous state, consisting essentially of methane, which is of pipeline quality.

 “Initial Storage Inventory” shall mean and have the definition as provided in Section 4.02(d). 
 “Intra-Day Gas” shall mean that volume of Gas which Counterparty may request for delivery during any particular Gas delivery Day after 8:00 a.m. CCT on the
last Business Day prior to the Day(s) of Gas flow. If the Parties agree to a quantity of Intra-Day Gas, the obligations of the Parties shall be Firm. The price for Intra-Day Gas shall be a negotiated price based on then-current market prices.

 “MMBtu” shall mean one million (1,000,000) British Thermal Units. 
 “Month” shall mean a period beginning at nine o’clock (9:00) a.m. CCT, on the first Day of a calendar month and shall end at the aforesaid time on the first Day of the next succeeding calendar
month, or such other period as may be agreed to by the Parties. 
 “Physical Storage Balance” shall mean the actual DTH balance of the aggregated
pipeline Storage Agreements. 

 “Service Provider(s)” shall mean either a Storage Provider or a Transporter, or both, individually or
collectively, as the context requires. 
 “Storage Agreements” shall mean those agreements for storage services as listed in Exhibit A. 

“Storage Virtual Injection Volumes” or “SVIVS” shall mean volumes of Baseload Gas which Manager is deemed to inject into Counterparty’s
Storage Accounts. SVIVS are reported volumes of Gas owed by Manager to Counterparty as set forth in Section 4.02(d) of this Agreement. 
 “Storage
Virtual Withdrawal Volumes” or “SVWVS” shall mean volumes of Baseload Gas to be delivered to and received by Counterparty on a Firm basis and deemed withdrawn from the reported volumes of Gas held in Counterparty Storage Accounts
pursuant to Section 4.02 (c). 
 “Storage Facilities” shall mean, collectively, the storage facilities covered by the Storage Agreements.

 “Storage Provider” means any provider of storage services, including, but not limited to, a provider of storage services under the Storage
Agreements. 
 “Storage Reserve” shall be the logical (contractual) position in the Counterparty Storage Account on April 1 of each year.

 “Summer Refill Quantity” shall be defined as eighty-five percent (85%) of the Counterparty Storage Volume. 
 “Swing Gas” shall mean a volume of Gas which Counterparty may nominate for delivery no later than 8:00 a.m. CCT on the last Business Day prior to the day(s) of
Gas flow. Upon a proper nomination, the Parties’ obligations to deliver and receive Swing Gas shall be Firm, and Manager shall commit to deliver and sell Swing Gas at a price using the methodology set forth in Article IV and as shown in Exhibit
G. 
 “Tariff” shall mean the applicable FERC approved tariff of any Service Provider or the applicable Public Service Commission approved tariff
of Counterparty. 
 “Term” shall have the meaning set forth in Section 9.01. 
 “Transporter” shall mean any pipeline transporter of Natural Gas. 
 “Utilization Fee” means the payment
from Manager to Counterparty pursuant to Section 7.03. 
 “Unit of Measurement” means one million (1,000,000) British Thermal Units
(MMBtus) on a dry basis. 
 “Weighted Average Storage Variable Costs” shall mean those costs identified on Exhibit H as variable cost components of
storage injections and withdrawals. 

 “Weighted Average Transportation Variable Costs” shall mean the weighted average of all applicable variable
pipeline transportation charges and surcharges, including fuel, for each transportation contract released to Manager, assuming full utilization of those assets. An example is set forth on Exhibit F. 
 “Year” shall mean a period of three hundred sixty-five (365) consecutive calendar days provided, however, that any such year that contains a date of
February 29th shall consist of three hundred sixty-six (366) consecutive calendar days. 
 ARTICLE II 
 RELEASE OF CONTRACTUAL CAPACITY 
 2.01
Capacity Release 
 Counterparty shall release to Manager the portion of Counterparty’s right, title and interest in and to those contracts and
agreements for Firm transportation and storage transportation capacity listed in Exhibit A, and any and all amendments or modifications thereto. Counterparty’s LNG facility at Daleville, VA shall be used solely by Counterparty and is not
included in the Asset Portfolio under this Agreement to be managed by Manager. The releases are on more than one pipeline and are intended to represent, in so far as operationally feasible, all of Counterparty’s transportation and storage
transportation assets. Counterparty shall not terminate or materially modify or amend any contract or agreement without prior consultation with Manager. The Parties shall negotiate appropriate and comparable adjustments if the Manager’s ability
to render service is reduced and, if unable to reach agreement, the appropriate adjustments shall be submitted to arbitration pursuant to Article XVI. 
 2.02 Term of Capacity Release 
 The Capacity Release shall be accomplished in a manner that shall provide Manager with the
appropriate capacity for a term of thirty-six (36) months. The Capacity Release shall be released at the maximum reservation rates and reservation surcharges under the applicable contracts and in accordance with the terms and conditions of the
document or documents evidencing the releases. The releases may be revoked pursuant to Article IX if there is a material breach or early termination of this Agreement. Upon revocation, Counterparty reassumes all rights and obligations that had been
released to Manager. 
 2.03 Responsibility for Payment of Charges 
 During the term of the Capacity Release, Manager shall pay to each Service Provider, as applicable, all amounts due and payable under the released agreement(s) including, without limitation, reservation charges,
reservation surcharges, commodity charges, gathering and offshore charges, fuel adjustments, overrun charges, and any other applicable charges and penalties attributable to the Capacity Release. All amounts so paid by Manager during the term of the
Capacity Release shall be paid in accordance with various applicable payment terms and 

 
provisions of the contracts released as those terms and provisions have been disclosed to Manager, and applicable Tariffs. With respect to the Capacity
Release assets, Manager shall pay directly to Counterparty all pipeline refunds or credits received (1) for periods prior to November 1, 2007, (2) for demand charges and surcharges through the term of this Agreement, and
(3) refunds or credits for commodity charges and surcharges which are related to shipments of Gas received by Counterparty during the term of this Agreement. 
 ARTICLE III 
 STORAGE INVENTORY AGENCY DESIGNATION 
 3.01 Storage Inventory 
 Counterparty shall designate Manager as agent for its storage capacity and all
gas balances in storage of October 31, 2007. The inventory of Gas in each Storage Facility is listed in Exhibit C. Manager shall provide agency service and provide for utilization of storage assets as set forth in paragraph 4.02. 
 3.02 Term of Agency Appointment 
 Manager is hereby appointed
agent for the management of the Storage Agreements for a term of thirty-six (36) months. The agency appointment may be revoked pursuant to Article IX if there is a material breach or early termination of this Agreement. Upon revocation,
Counterparty reassumes management of all rights and obligations that relate to the Storage Agreements. 
 3.03 Responsibility for Payment of
Charges 
 During the term of this Agreement, Manager shall pay to each Service Provider, as applicable, all amounts due and payable under the Storage
Agreements including, without limitation, reservation charges, reservation surcharges, commodity charges, fuel adjustments, overrun charges, and any other applicable charges and penalties attributable to the Storage Agreements. All amounts so paid
by Manager during the term of this Agreement shall be paid in accordance with various applicable payment terms and provisions of the Storage Agreements as those terms and provisions have been disclosed to Manager, and applicable Tariffs. With
respect to the Storage Facilities, Manager shall pay directly to Counterparty all pipeline refunds or credits received (1) for periods prior to November 1, 2007, (2) for demand charges and surcharges through the term of this
Agreement, and (3) refunds or credits for commodity charges and surcharges which are related to shipments of Gas received by Counterparty during the term of this Agreement. 
 ARTICLE IV 
 FIRM SALES SERVICES AND PRICING 
 4.01 Firm Sales Service 
  

	(a)	 Manager shall provide Firm Gas sales service to Counterparty at the Counterparty City Gates up to the volume and reliability of transportation capacity released to
Manager, as provided in this Agreement. Subject to this supply obligation and the constraints of the relevant Tariffs, Manager shall have the right to manage the released assets in any 

	 	 
manner it chooses. Gas sold to Counterparty shall be priced at a single delivered price for Baseload Gas, a single delivered price for Swing Gas and a single
delivered price for Intra-Day Gas. The price for Baseload Gas shall be determined monthly; the price for Swing Gas shall be determined daily, and the price for Intra-Day Gas shall be determined at the applicable day and hour of an Intra-Day request.
The price for Baseload Gas and Swing Gas shall be determined by adding (1) the Weighted Average Transportation Variable Costs on Exhibit F to (2) a gas commodity charge for each level of service. For Baseload Gas, the gas commodity charge
shall be the weighted average of the first-of-month indices as allocated on Exhibit B. For Swing Gas, the gas commodity charge shall be the weighted average of the daily indices as allocated on Exhibit B. An example of Baseload Gas and Swing Gas
price calculations are attached as Exhibit G. Any requirements for Intra-Day Gas shall be priced at market determined at the applicable day and hour of an Intra-Day Gas request. If there is no single price published for one of the locations
specified in Exhibit B on a particular Day, then the Manager and Counterparty shall promptly negotiate a price that most fairly represents then current market conditions. 

  

	(b)	With respect to Gas delivered off of Columbia Gas Transmission (“TCO”), to the extent Counterparty fails to take nominated Gas or takes Gas in excess of its nominated
volume and such amounts are within the greater of (i) 7,000 MMBtu of the nominated amount for the applicable Day of delivery or (ii) the applicable Transporter storage ratchets (the “Daily Balancing Tolerance”), the following
shall apply: 

 Manager shall allow a daily variance of 7,000 dekatherms (DTH) +/- from scheduled volumes off TCO, unless the
variance is over the maximum daily quantity (MDQ) or over the maximum daily injection quantity (MDIQ). For quantities within this tolerance, Counterparty shall be subject to the following “cash out” schedule: 
  

			
	 Balancing Situation
within Daily
Balancing Tolerance
	  	 Pricing

	 Undertakes by
 Counterparty
	  	 Lesser of
 GAS DAILY MIDPOINT Columbia Gas Appalachian (for the day of )
 MINUS three cents (-$0.03)
 Or
 GAS DAILY MIDPOINT Columbia Gas Appalachian
(for the day after)
 MINUS three cents (-$0.03)

		
	 Overtakes by
 Counterparty
	  	 Greater of
 GAS DAILY MIDPOINT Columbia Gas Appalachian (for the day of )
 PLUS three cents (+$0.03) plus variables and fuel to
Citygate
 Or
 GAS DAILY MIDPOINT
Columbia Gas Appalachian (for the day after)
 PLUS three cents (+$0.03) plus variables and fuel to Citygate

 For quantities in excess of the agreed to Daily Balancing Tolerance and still within
pipeline contracts and not on days of pipeline restrictions, Counterparty shall be subject to the following “cash out” schedule: 
  

			
	 Balancing Situation
outside
Daily
Balancing Tolerance
	  	 Pricing

	 Undertakes by
 Counterparty
	  	 Lesser of
 GAS DAILY ABSOLUTE LOW Columbia Gas Appalachian (for the day of )
 MINUS three cents (-$0.03)
 Or
 GAS DAILY ABSOLUTE LOW Columbia Gas
Appalachian (for the day after)
 MINUS three cents (-$0.03)

		
	 Overtakes by
 Counterparty
	  	 Greater of
 GAS DAILY ABSOLUTE HIGH Columbia Gas Appalachian (for the day of )
 PLUS three cents (+$0.03) plus variables and fuel to Citygate

 Or
 GAS DAILY ABSOLUTE HIGH
Columbia Gas Appalachian (for the day after)
 PLUS three cents (+$0.03) plus variables and fuel to Citygate

 Manager shall provide Counterparty with a report detailing the balancing conducted pursuant to this
Section by e-mail or facsimile upon request by the Counterparty. Such report shall be substantially in the form of Exhibit J. 
 Any TCO
balancing in excess of the daily tolerances listed in the sections above will be a negotiated price between the Manager and Counterparty. 
  

	(c)	Counterparty shall maintain control of the East Tennessee OBA and the responsibility for daily and monthly balancing of the East Tennessee OBA agreement. Any cash-out, variances
and/or penalties at the East Tennessee OBA shall be the responsibility of the Counterparty, unless attributable to the Manager’s failure to adhere to the Operational Requirements set forth in Exhibit D. 

  

	(d)	The Parties understand that component rates and pipeline charges shall change from time to time and that Exhibit F and Exhibit H are representative only. In the event the projected
daily forecast pursuant to Section 5.05 exceeds the Firm capacity available under the Capacity Release, Counterparty and Manager shall work together to review alternatives that may include additional Firm Gas sales service to Counterparty. In
the event that a Transporter determines that Counterparty’s volume entitlements at particular points are different than those shown in Exhibit A, Manager and Counterparty shall mutually agree on an alternate pricing mechanism. The Parties may,
upon mutual agreement, agree to fix the Gas prices under this Agreement, subject to the terms of the Trigger Price Addendum attached hereto as Exhibit L. 

 4.02 Utilization of Storage Assets 
  

	(a)	Manager shall maintain two (2) accounts for each Storage Facility, one the “Counterparty Storage Account” and the other the “Physical Storage Balance.” The
Counterparty Storage Account shall record the initial Gas inventory assigned by agency agreement to Manager and all subsequent SVIVS and SVWVS as set forth in subsections (c) and (d) hereof. Manager shall manage the withdrawal and
injections of Counterparty’s storage assets. 

 Storage injections (SVIVS) and withdrawals (SVWVS) are understood by the Parties to be paper transactions
that may differ from the actual physical volumes held in storage at any point in time. Manager has the right, subject to Counterparty’s right to receive SVWVS (which volumes may be supplied from other sources) and limitations contained in the
Tariffs, to actually inject, withdraw and sell Gas from the Counterparty’s Storage Facilities as it sees fit; provided, however, that Manager complies with the delivery requirements of the Firm Sales Service provided in Section 4.01.

  

	(b)	Counterparty shall retain physical ownership of all Gas in storage, and Manager shall be named as agent on Counterparty’s storage contracts. Manager shall manage
Counterparty’s total storage inventory as provided in this Section 4.02. Title to Gas physically withdrawn from storage will transfer from Counterparty to Manager upon such withdrawal at the interconnection of the Storage Facilities and
the Transporter, and Gas physically injected into storage will transfer from Manager to Counterparty upon such injection at the interconnection of the Transporter and the Storage Facilities. If the inventory level shown in Physical Storage Balances
falls below the amount necessary to fill Counterparty’s Storage Account to the required level by the first of November without incurring penalties pursuant to Tariff rules for over injection, (“Storage Shortfall”), then Manager
shall provide Counterparty with (1) adequate assurances of sufficient primary Firm pipeline transportation capacity to the Counterparty receipt points on the applicable Transporter equal to the Storage Shortfall, and (2) subject to
confidentiality restrictions, reasonable financial assurances, in the form of an investment grade credit rating, parent guaranties, firm contracts for the required volumes of Gas, or letters of credit (if Manager does not have an investment grade
credit rating) acceptable to Counterparty of its ability to provide Gas supply equal to the Storage Shortfall. Physical Storage Balance shall not fall to levels that would prohibit the Manager from meeting all operational requirements of
Counterparty or that would cause Counterparty to be outside the tariff requirements of Service Providers. Notwithstanding the above, the difference between Counterparty’s Storage Account and the Physical Storage Balance shall not exceed
twenty-five percent (25%), except without limit, the Physical Storage Balance may exceed the Counterparty’s Storage Account. In the event that the difference between Counterparty’s Storage Account and the Physical Storage Balance does
exceed twenty-five percent (25%), Manager shall make necessary physical adjustments with thirty (30) days so as to get the Physical Storage Balance back within twenty-five percent (25%). Also, at the sole discretion of Counterparty, the
Counterparty shall have the right to allow the Manager to exceed or remain outside the tolerance level, if the Manager satisfactorily demonstrates to Counterparty that such exception does not prohibit the Manager from meeting all operational
requirements of Counterparty. 

  

	(c)	Storage Withdrawals 

 The Counterparty Storage Account
shall be established and invoiced (on paper) at a withdrawal level equal to eighty-five percent (85%) of the Counterparty Storage Volume each winter. Monthly withdrawal percentages are identified in the table below. The 

 
price for the SVWVS quantity of Baseload Gas delivered to Counterparty each Month will equal the Weighted Average Storage Variable Costs for withdrawals. The
remaining inventory of ten percent (10%) will be reserved and said levels will be in place (on paper) on April 1. This reserve, hereto referred to as Storage Reserve, shall be a logical (contractual) position in the Counterparty Storage
Account. Manager shall manage all withdrawal levels within the operating guidelines of the pipeline ratchet requirements. 
 During the Months
of November through March, Manager shall invoice the Counterparty a ratable daily amount of Baseload Gas over the respective month according to the following schedule, including appropriate storage withdrawal charges as reflected in Exhibit H. For
the initial withdrawal season, the percentages in the table below shall be proportionally adjusted to reflect a physical storage volume differing from the Initial Storage Inventory. 
  

			
	 MONTH
	  	 PERCENTAGE OF COUNTERPARTY STORAGE VOLUME TO
BE
WITHDRAWN

	 November
	  	10%
	 December
	  	20%
	 January
	  	25%
	 February
	  	20%
	 March
	  	10%

  

	(d)	Storage Injections 

 Counterparty Storage Account levels
shall be at ninety-five (95%) by November 1 of each year, and is defined as “Initial Storage Inventory”. 
 The Summer
Refill Quantity shall be billed to Counterparty on a ratable monthly basis (1/7) during the period April 1 through October 31. The prices for each Month’s Gas shall be determined by the same method as for Baseload Gas, using the
prices set forth in the Inside F.E.R.C. Gas Market Report, plus applicable Weighted Average Storage Variable Costs for injections. 
  

	(e)	Counterparty will at all times hold title to and have the risk of loss for all Gas physically held in the Storage Facilities, regardless of whether such physical volume is greater
than or less than the Counterparty Storage Account. In the event of loss of physical Gas in the Storage Facilities for any reason other than the fault of Manager, Counterparty will indemnify and hold Manager harmless for the difference between the
Physical Storage Balance and any lesser Counterparty Storage Account, and Manager will indemnify and hold Counterparty harmless for the difference between the Counterparty Storage Account and any lesser Physical Storage Balance.

 ARTICLE V 
 MANAGEMENT OF CAPACITY RELEASE AGREEMENTS AND EQUIVALENT 
 NATURE OF SERVICES 
 5.01 Compliance with Agreements 
 Manager and Counterparty
shall comply with all terms and provisions of the agreements comprising the Asset Portfolio and all pertinent statutes, rules, orders, Tariffs and regulations with respect thereto. For purposes of this Agreement, Manager’s rights under the
Capacity Release shall include, without limitation, the injection of Gas into the Storage Facilities, the withdrawal of Gas from the Storage Facilities, the transportation of Gas to and from all applicable receipt and delivery points subject to the
Capacity Release, and any other use which Manager sees fit, provided such use is allowable under the applicable statutes, rules, Tariffs, orders and regulations. 
 5.02 Indemnifications 
 Subject to Section 15.05 of this Agreement and except as provided in Section 4.02(e),
Manager shall indemnify Counterparty and hold Counterparty harmless from all liability and expense on account of Manager’s use of rights released under the Capacity Release, including, without limitation, any violation or breach by Manager of
the agreements released, applicable Tariffs or pertinent statutes, rules, orders and regulations, to the extent that such liability or expense is not the result of Counterparty negligence or willful misconduct. 
 5.03 Management 
 Manager shall manage the transferred
Counterparty Storage Volume and Capacity Release in a prudent manner consistent with all applicable Tariffs and the operational requirements detailed on Exhibit D. 
 5.04 Quality of Services 
 Manager shall provide Gas delivered to the Counterparty Delivery Points on the applicable
Transporters up to the volumes and reliability of deliveries that Counterparty would have received had these agreements not been released to Manager, subject to the terms of this Agreement and constraints of applicable Transporter tariffs.

 5.05 Nominations 
 Counterparty shall provide
to Manager the daily usage forecasts for each upcoming Day, Month and/or season, as applicable by 7:30 am CCT on the previous Day, consistent with the applicable nomination deadlines. The nomination deadline for Baseload Gas is set forth in Exhibit
E, and the nomination deadlines for Swing Gas and Intra-Day Gas are set forth in Exhibit E. Based on the Counterparty forecasts, Manager shall prioritize, make and confirm all supply contract and pipeline nominations required to effect the delivery
of Gas to the applicable Delivery Point(s). All nominations shall be made by verbal agreement via telephonic means or by electronic mail. The Parties agree to the following procedures in the event the Parties reach verbal agreement regarding the
nomination of Gas by Counterparty. Any oral agreement shall be binding unless superseded by a written confirmation, which may be in the form of a telephonic facsimile transmission (“Fax”). The telephones of the Parties may be
monitored by recording equipment. The Parties hereby consent to such recordings and any such recordings shall serve as the best 

 
evidence of any oral agreement. Upon request by either party, Counterparty and/or Manager shall send a written confirmation to the other generally in the
form of Exhibit K, by Fax or other electronic transmission, reflecting the agreed-upon terms of the particular transaction. The Parties shall resolve any discrepancies in such confirmations as soon as reasonably possible, so they can agree in
writing to a confirmation. 
 ARTICLE VI 
 REPRESENTATIONS AND WARRANTIES 
 6.01 Representations and Warranties of Manager 
 As a material inducement to entering into this Agreement, Manager represents and warrants to Counterparty as of the date of the execution and delivery of this Agreement
and throughout the Term hereof as follows: 
  

	 	(a)	There are no suits, proceedings, judgments, rulings or orders by or before any court or any governmental authority to which Manager is a party that materially adversely affect
(1) its ability to perform its obligations under this Agreement, or (2) the rights of Counterparty hereunder. 

  

	 	(b)	Manager is duly organized, validly existing and in good standing under the laws of the State of Delaware, and it has the legal right, power and authority and is qualified to conduct
its business, and to execute and deliver this Agreement and perform its obligations under the same, and all regulatory authorizations have been obtained and/or maintained as necessary for it to legally perform its obligations hereunder.

  

	 	(c)	The making and performance by Manager of this Agreement is within its powers, has been duly authorized by all necessary action on its part, and does not and shall not violate any
provisions of its incorporation or other formation, as applicable, or any other of its governing documents, nor shall the making or performance of this Agreement violate (1) any agreement or instrument to which Manager is a party or is bound,
(2) any material provisions of any judgment, decree, or judicial order applicable to Manager, (3) any provision of law or any rule, regulation, or administrative order presently in effect and applicable to Manager or its governing
documents. To the best of Manager’s knowledge and belief, no consents of third parties, whether private, judicial or public, are required under any agreement or instrument to which Manager is a party or is bound; provided however, that if,
after the execution hereof, any such third party consents are deemed to be necessary in order to effectuate the purposes and intent of this Agreement, then Manager shall use its best efforts to promptly obtain such consents.

  

	 	(d)	This Agreement when entered into constitutes a legal, valid and binding act and obligation of Manager, enforceable against it in accordance with its terms, subject to principles of
equity and bankruptcy, insolvency, reorganization and other laws affecting creditors’ rights generally. 

	 	(e)	There are no bankruptcies, insolvency, reorganization, receivership or other arrangements or proceedings pending or being contemplated by Manager, or to its knowledge, threatened
against Manager. 

  

	 	(f)	It is acting for its own account, has made its own independent decision to enter into this Agreement (including any confirmation accepted in accordance with Section 5.05) and
as to whether this Agreement (including any confirmation accepted in accordance with Section 5.05) is appropriate or proper for it based upon its own judgment, is not relying upon the advice or recommendations of the other Party in so doing,
and is capable of assessing the merits of and understanding, and understands and accepts, the terms, conditions and risks of this Agreement (including any confirmation accepted in accordance with Section 5.05). 

  

	 	(g)	It is a “forward contract merchant” within the meaning of the United States Bankruptcy Code. 

  

	 	(h)	It has entered into this Agreement (including each confirmation accepted in accordance with Section 5.05) in connection with the conduct of its business, and it has the
capacity or ability to make or take delivery of all Gas referred to herein. 

  

	 	(i)	The material economic terms of this Agreement (and each confirmation accepted in accordance with Section 5.05) have been subject to individual negotiation by the Parties.

 6.02 Representations and Warranties of Counterparty 
 As a material inducement to entering into this Agreement, Counterparty represents and warrants to Manager as of the date of execution and delivery of this Agreement and throughout the Term hereof as follows:

  

	 	(a)	There are no suits, proceedings, judgments, rulings or orders by or before any court or any governmental authority to which Counterparty is a party that materially adversely affect
(1) its ability to perform its obligations under this Agreement, or (2) the rights of Manager hereunder. 

  

	 	(b)	Counterparty is duly organized, validly existing and in good standing under the laws of the State of Virginia, and it has the legal right, power and authority and is qualified to
conduct its business, and to execute and deliver this Agreement and perform its obligations under the same, and all regulatory authorizations have been obtained and/or maintained as necessary for it to legally perform its obligations hereunder.

  

	 	(c)	 The making and performance by Counterparty of this Agreement is within its powers, has been duly authorized by all necessary action on its part, and does not and
shall not violate any provisions of its incorporation, bylaws or any other of its 

	 	 
governing documents, nor shall the making or performance of this Agreement violate (1) any agreement or instrument to which Counterparty is a party or
is bound, (2) any material provisions of any judgment, decree or judicial order, statute, rule or regulation applicable to Counterparty, (3) any provision of law or any rule, regulation, or administrative order (including, without
limitation, any applicable state or federal Tariffs or service certificates), presently in effect and applicable to Counterparty or its governing documents. To the best of Counterparty’s knowledge and belief, no consents of third parties,
whether private, judicial or public, are required under any agreement or instrument to which Counterparty is a party or is bound; other than consents that may be required from the Service Providers, which consents, to the extent required,
Counterparty shall pursue the obtaining of with reasonable diligence from the appropriate parties; provided however, that if, after the execution hereof, any other third party consents are deemed to be necessary in order to effectuate the purposes
and intent of this Agreement, then Counterparty shall use its best efforts to promptly obtain such consents. 

  

	 	(d)	This Agreement when entered into constitutes a legal, valid and binding act and obligation of Counterparty, enforceable against it in accordance with its terms, subject to
principles of equity and bankruptcy, insolvency, reorganization and other laws affecting creditors’ rights generally. 

  

	 	(e)	There are no bankruptcies, insolvency, reorganization, receivership or other arrangements or proceedings pending or being contemplated by Counterparty, or to its knowledge,
threatened against Counterparty. 

  

	 	(f)	Counterparty is the contract owner of the contracts listed in Exhibit A; those contracts are in full force and effect, have the termination dated listed in Exhibit A, and
Counterparty is not aware of any claims assertable under those contracts by any party to such agreements or otherwise that would materially and adversely affect the performance of Counterparty’s obligations thereunder or hereunder or
Manager’s rights and obligations hereunder. 

  

	 	(g)	It is acting for its own account, has made its own independent decision to enter into this Agreement (including any confirmation accepted in accordance with Section 5.05) and
as to whether this Agreement (including any confirmation accepted in accordance with Section 5.05) is appropriate or proper for it based upon its own judgment, is not relying upon the advice or recommendations of the other Party in so doing,
and is capable of assessing the merits of and understanding, and understands and accepts, the terms, conditions and risks of this Agreement (including any confirmation accepted in accordance with Section 5.05). 

  

	 	(h)	It is a “forward contract merchant” within the meaning of the United States Bankruptcy Code. 

  

	 	(i)	It has entered into this Agreement (including any confirmation accepted in accordance with Section 5.05) in connection with the conduct of its business and it has the capacity
or ability to make or take delivery of all Gas referred to herein. 

	 	(j)	The material economic terms of this Agreement (and each confirmation accepted in accordance with Section 5.05) have been subject to individual negotiation by the Parties.

 ARTICLE VII 
 FEES AND OTHER CONSIDERATION 
 7.01 Reimbursement of Reservation Charges 
 Each Month during the term of this Agreement, Counterparty shall reimburse Manager, as provided herein, by payment in immediately available funds for one hundred percent
(100%) of the aggregate total of the reservation charges and reservation surcharges, attributable to the Capacity Release during the applicable Month, calculated on the basis of the contract rates paid to the Service Providers by Manager.
Manager shall remit to Counterparty any and all pipeline refunds associated with the Capacity Release as set forth in Section 2.03. 
 7.02 Supporting Documentation 
 Manager shall furnish Counterparty with copies of the pertinent invoices and statements from the Service Providers,
along with supporting documentation and calculations, setting forth the amount Counterparty is required to pay to Manager in accordance with Section 7.01 no later than four (4) Business Days prior to the applicable payment due date to the
Service Providers. Counterparty’s payment to Manager in accordance with Section 7.01 shall be deemed timely if made by wire transfer no later than two o’clock (2:00) p.m. Central Clock Time on the Business Day prior to each
payment due date or three (3) Business Days after receipt of the invoices and statements, whichever is later. 
 7.03 Utilization Fees

 Each month during the term hereof, Manager shall pay to Counterparty a Utilization Fee of the sum shown on Exhibit M. 
 7.04 Invoicing and Payments for Gas 
 Manager shall invoice
Counterparty for Gas sold to Counterparty, whether that Gas is Firm sales service pursuant to Section 4.01 or Summer Refill Quantity pursuant to Section 4.02. Invoices shall be rendered each Month for Gas delivered (or in the case of
Summer Refill Quantity, deemed to be delivered) in the preceding Month, and for any other applicable charges (such as injection fees), providing supporting documentation acceptable in industry practice to support the amount charged. If the actual
quantity is not known by the billing date, billing shall be prepared based on the quantity of Gas scheduled to be delivered. The invoice shall then be adjusted to the actual quantity on the following Month’s billing, or as soon thereafter as
actual information is available. Counterparty shall remit the invoiced amount on the later of (a) the twenty-fifth (25th ) day of the Month after delivery or (b) ten (10) days after the invoice date. If the amount of an 

 
invoice is disputed in good faith, the Counterparty shall pay the undisputed portion. Interest on late payments of undisputed amounts shall accrue at the
rate of the then effective prime rate of interest published under “Money Rate” by the Wall Street Journal, plus two percent (2%) per annum from the due date until the date of payment. Payment shall be in immediately available funds to
the bank accounts set forth in this Agreement. The Parties agree to discharge mutual debts and payment obligations due and owing to each other whether arising under this Agreement or any other agreement, but limited to natural gas transactions only,
between the Parties through netting. Therefore, all amounts owed by one Party to the other Party during any given month arising from natural gas transactions shall be netted against the amount owed by the other Party under such transactions. The
Party owing the greater amount shall pay the difference to the other Party and notify the other Party of the amount netted using the invoice and payment procedures described herein. 
 7.05 Audit 
 Counterparty and its outside accountants shall have the right, upon reasonable notice and
at reasonable times during normal business hours, to enter Manager’s offices and inspect and copy Manager’s records and books of account, but only to the extent necessary to audit any statement provided to Counterparty by Manager, and to
assure that amounts paid or billed to Counterparty are correct in all respects. Manager and its outside accountants shall have the right, upon reasonable notice and at reasonable times during normal business hours, to enter Counterparty’s
offices and inspect and copy Counterparty’s records and books of account, but only to the extent necessary to audit any statement provided to Manager by Counterparty, and to assure that amounts paid or billed to Manager are correct in all
respects. Each Party shall bear all the costs of performing its audit. Such right to audit shall be available for the terms of this Agreement and for two (2) years thereafter. All audits shall be on a confidential basis and shall require the
execution of a confidentiality agreement prior to commencement. 
 ARTICLE VIII 
 FINANCIAL RESPONSIBILITY 
 8.01 Financial Assurances 
 Prior to the commencement of performance, or at any time during the term of this Agreement, either Party may require the other to provide financial information
reasonably needed to ascertain the other Party’s ability to pay any amounts that may become due from such party under this Agreement or to meet any other obligation which may accrue, including without limitation the obligation to pay damages in
the event of failure to perform. If either Party’s creditworthiness becomes unsatisfactory in this regard, then the dissatisfied party (the “Unsecured Party”) may require assurance of the other Party’s ability to pay or
require different terms of payment. The Unsecured Party may suspend deliveries or receipts hereunder or terminate this Agreement if, in the sole opinion of the Unsecured Party, the other Party fails to deliver the requested credit information or
assurance of its ability to pay within two (2) Business Days of such request. Such assurance may, at the option of the Unsecured Party, include (i) the required posting of a letter of Credit (acceptable to the Unsecured Party and the
issuing bank); (ii) cash prepayments; (iii) corporate guaranty or (iv) other security acceptable to the Unsecured Party. 

 8.02 Counterparty Parent Guaranty 
 Counterparty will provide a parent guaranty to Manager in a form and for an amount reasonable acceptable to Manager from RGC Resources, Inc., or other guarantor reasonably acceptable to Manager, holding a credit
rating for its unsecured and senior long-term debt (not supported by third party credit enhancement) of at least BBB- from Standard & Poor’s Rating Group and at least Baa3 from Moody’s Investor Services. 
 ARTICLE IX 
 TERM, DEFAULT, CURE AND
TERMINATION 
 9.01 Term 
 This Agreement shall
be effective as of November 1, 2007 and shall continue through and including October 31, 2010 (the “Term”). This Agreement may be renewed for twelve (12) months at the end of the Term, when both Parties notify the
other in writing at least ninety (90) days before the end of the Term of its intent to renew. This Agreement shall terminate upon any date on which any federal or state statute, regulation, order or judicial decision renders this Agreement, or
the Agreements comprising the Capacity Release, illegal, null or void. This Agreement may be terminated before the expiration of the Term upon either a Manager Default or a Counterparty Default, as defined herein. Termination prior to the expiration
of the Term shall be effected by a written notice from the terminating Party, stating the reason for the termination, including, if applicable, the failure of the other Party to cure within the applicable period, and the effective date of
termination. 
 9.02 Breach and Remedies 
  

	(a)	Unless such failure is the result of Force Majeure or the failure or negligence of Counterparty, each of the following shall be deemed a Manager Default: 

 

	 	(i)	The failure of Manager to comply with the material terms and conditions of the Agreements, as disclosed and released to Manager under the Capacity Release; 

 

	 	(ii)	The failure of Manager to pay any undisputed amounts due to Counterparty or any Service Provider under the Capacity Release and such failure continues for a period of ten
(10) days after Manager receives written notice of same; 

  

	 	(iii)	A Bankruptcy Default with respect to Manager (a “Manager Bankruptcy Default”); 

  

	 	(iv)	Any material inaccuracy in any representation or warranty of Manager set forth in this Agreement, and such inaccuracy is not remedied within thirty (30) days of Manager’s
receipt of a written notice from Counterparty describing the particulars of such inaccuracy in reasonable detail; 

  

	 	(v)	The failure of Manager to perform any material covenant or obligation in this Agreement, other than those specified in clauses (i) through (iv) or (vi) through (vii),
and such failure is not remedied within ten (10) days of Manager’s receipt of a written notice from Counterparty describing the particulars of such failure in reasonable detail; 

	 	(vi)	The failure of Manager to provide Firm sales service as provided in Article IV; 

  

	 	(vii)	The failure of Manager to provide Counterparty with financial information requested pursuant to Section 8.01 or requested collateral pursuant to Section 8.02, in each
case, in an amount and form acceptable to Counterparty. 

  

	(b)	The occurrence of any of the following with respect to Counterparty or the Guarantor shall be deemed a Counterparty Default: 

  

	 	(i)	The failure to pay undisputed amounts due Manager herein, and such failure continues for a period of ten (10) days after receipt of written notice of same;

  

	 	(ii)	A Bankruptcy Default with respect to Counterparty (a “Counterparty Bankruptcy Default”); 

  

	 	(iii)	Any material inaccuracy in any representation or warranty set forth in this Agreement or the Guaranty, and such inaccuracy is not remedied within thirty (30) days of receipt of
a written notice describing the particulars of such inaccuracy in reasonable detail; 

  

	 	(iv)	The failure to perform any material covenant or obligation in this Agreement or Guaranty (other than those specified in clauses (i) through (iii) and (v) through
(ix??)), and such failure is not remedied with ten (10) days of receipt of a written notice from Manager describing the particulars of such failure in reasonable detail; or 

  

	 	(v)	The failure to obtain, within a reasonable time, the necessary consents from Service Providers specified in Section 6.02 (c). 

  

	 	(vi)	The failure to provide Manager with financial information requested pursuant to Section 8.01 or requested collateral pursuant to Section 8.02, in each case, in an amount
and form acceptable to Manager. 

  

	 	(vii)	The failure to provide Manager with the Guaranty as set forth in Section 8.02 herein. 

  

	 	(viii)	The failure of the Guaranty to be in full force and effect for purposes of this Agreement (other than in accordance with its terms) prior to the satisfaction of all obligations of
Counterparty without the written consent of Manager. 

  

	 	(ix)	The Guarantor repudiates, disaffirms, disclaims or rejects, in whole or in part, or challenges the validity of the Guaranty. 

  

	(c)	Remedies for Manager Defaults or Counterparty Defaults, as applicable, shall be as follows: 

  

	 	(i)	For a Manager Bankruptcy Default or a Counterparty Bankruptcy Default, automatic and immediate termination of this Agreement subject to and in accordance with Sections 9.02(d),
9.02(e) and 9.04; and 

  

	 	(ii)	 For all other Defaults, termination of this Agreement, termination of the Capacity 

	 	 
Release, transfers of inventory and releases set forth in Articles II and III and reversion of those transfers and releases to Counterparty on twenty-four
(24) hours notice, subject to and in accordance with Sections 9.02(d), 9.02(e) and 9.04, and 

  

	 	(iii)	If, for any reason other than Force Majeure or the fault of Counterparty, Manager fails to deliver the volume of Gas nominated by Counterparty on any Day during the Term of this
Agreement, then Manager shall pay to Counterparty an amount equal to (w) the cost, per MMBtu, of obtaining Gas or its equivalent using reasonable methods under the circumstances then prevailing, less (x) the price, per MMBtu, of Baseload
Gas or Swing Gas (whichever is less), times (y) the undelivered volume, plus (z) transportation costs and pipeline penalties if applicable. In addition, in the event of such an unexcused failure to deliver Gas to Counterparty, Manager
shall refund to Counterparty one hundred percent (100%) of the reservation charges and reservation surcharges that Counterparty pays to Manager in accordance with Section 7.01 of this Agreement to the extent, and only to the extent, that
such reservation charges and reservation surcharges are attributable to that portion of the volume of Gas that Manager fails to deliver. 

  

	 	(iv)	If, for any reason other than Force Majeure or the fault of Manager, Counterparty fails to receive delivery of the volume of Gas nominated by Counterparty on any Day during the Term
of this Agreement, then Counterparty shall pay to Manager an amount equal to (w) the price, per MMBtu, of Baseload Gas or Swing Gas (whichever is more), less (x) the proceeds, per MMBtu, received by Manager from the alternate sale of the
Gas using reasonable methods under the circumstances then prevailing, times (y) the undelivered volume, plus (z) transportation costs and pipeline penalties if applicable. 

  

	 	(v)	With respect to liquidated damages provided for in this Section, it is expressly stipulated by the Parties that the actual amount of any damages would be difficult if not impossible
to determine accurately because of the unique nature of this Agreement, the unique needs and requirements of Counterparty, the uncertainties of the Gas market and differences of opinion with respect to such matters, and that the liquidated damages
provided for herein are a fair and reasonable estimate by the Parties of such damages. The liquidated damages provided for in this Section are not intended to compensate either Party for penalties that may be imposed pursuant to Section 15.09.

  

	(d)	 In the event of a termination of this Agreement pursuant to Section 9.02(c)(i) or (ii), in addition to any other remedies available hereunder or pursuant to
applicable law, the non-defaulting Party shall have the right, exercisable in its sole discretion, to withhold or suspend deliveries or receipts hereunder or to (i) terminate all agreements between the Parties (each a “Terminated
Transaction”), and determine the Settlement Amount (as defined below) of each such Terminated Transaction and (ii) set off, at the election of the non-defaulting Party, any other amounts owed by the defaulting Party to the non-defaulting
Party so that all such amounts are netted to a single liquidated amount payable immediately by one Party to the other. Notwithstanding the foregoing, in the event the non-defaulting Party is unable to terminate the Terminated Transactions during any

	 	 
bankruptcy, insolvency or reorganization proceeding, all such Terminated Transactions shall be deemed to have automatically terminated as of the Business Day
immediately preceding the Day on which the non-defaulting Party became subject to such proceeding. “Settlement Amount” shall mean, with respect to each Terminated Transaction and the non-defaulting Party, an amount determined on the basis
of not less than one (1) nor more than the average of three (3) quotations obtained by the non-defaulting Party from dealers or other industry participants recognized in the industry as being knowledgeable in this type of transaction
(“Reference Market Makers”) for an amount, if any, that shall be payable to the non-defaulting Party by the defaulting Party (expressed hereunder as a positive number but by the Reference Market Maker as a negative number) or payable by
the non-defaulting Party to the defaulting Party (expressed hereunder as a negative number but by the Reference Market Maker as a positive number) as consideration for an agreement between the non-defaulting Party and the Reference Market Maker to
enter into a transaction that shall have the effect of preserving for the non-defaulting Party the economic equivalent of any payment or delivery (whether the underlying obligation was absolute or contingent and assuming the satisfaction of each
applicable condition precedent). Notwithstanding anything to the contrary herein, the non-defaulting Party shall not be required to enter into any transactions with any dealer(s). Further, the Parties may refer to published prices which are
representative of the economic value of this Agreement in lieu of reference to Reference Market Makers upon mutual agreement. 

  

	(e)	The remedies specifically provided for in this Section 9.02 are cumulative of, and may be exercised without prejudice to, any other remedies (whether at law or in equity) to
which either Party may be entitled for any Default hereunder, including, without limitation (i) suit(s) to enforce a Party’s right to collect amounts owed it hereunder, or (ii) the exercise of offset rights. 

9.03 No Waiver 
 Termination of this Agreement for any
reason shall not operate to waive any right or claim that either Party may have against the other under this Agreement or otherwise. 
 9.04
Winding Up Operations 
 At the end of the full term of the Agreement, physical storage gas returned to the control of the Counterparty shall be equal to the
Initial Storage Inventory. Should the Counterparty desire to have storage at a level above the Initial Storage Inventory, the Manager will work with Counterparty and provide on a best efforts basis. 
 When this Agreement terminates, whether pursuant to Sections 9.02 or 12.04 or due to the expiration of the Term, the Parties shall reconcile the Storage Accounts as
follows. If the volume of Gas physically present in inventory is less than the Counterparty Storage Account, Manager shall provide Counterparty with Gas, at no charge, sufficient to make up the difference between the Gas physically present and the
Counterparty Storage Account, either by in place transfer or injection at the maximum injection rate, but in all events, the difference shall be made up within thirty (30) days of the date of termination. If the volume of Gas physically present
is more than the Counterparty Storage Inventory, then Counterparty, at its option, may either pay 

 
for the Gas in place, at the Gas Daily price for the applicable area on the date of termination, or require Manager to remove the Gas within thirty
(30) days of the date of termination via in place transfer to a third party or withdrawal. The Parties shall work together to avoid any penalties resulting from over-injection or over-withdrawals, and Manager shall be responsible for any such
penalties. 
 ARTICLE X 
 TITLE TO
GAS 
 10.01 Passage of Title 
 Title to Gas
delivered to Counterparty under the provisions of Article IV shall pass from Manager to Counterparty at and when delivered to the Delivery Point. The Party who has title to the Gas at any time shall be deemed to be in control and possession of the
Gas, and shall be responsible for any damage or injury caused thereby, and (ii) all charges, expenses, fees, taxes, damages, injuries, and other costs incurred in connection with or attributable to the purchase and handling of Gas. 

10.02 Warranty of Title 
 At the time title to Gas passes
from one Party to the other, the Party passing title warrants to the other that it has good title to the Gas and that the Gas is free from all liens and adverse claims. 
 Each Party agrees to indemnify and hold the other Party harmless from, and with respect to, all suits, actions, debts, accounts, damages, costs, losses and expenses (including, but not limited to, reasonable
attorneys’ fees) arising from or out of any adverse claims of any and all persons with respect to title to Gas passing under this Agreement which attach before title passes to the other Party. Each Party shall give the other notice of any suit,
action, debt, account, damage, cost, loss, or expense covered by this Section 10.02, and the Party warranting title shall have the option to assume the defense or settlement, or both, of any such contingency. 
 ARTICLE XI 
 ASSIGNMENT 
 11.01 Pledge, Mortgage or Assignment 
 Either Party may
pledge or mortgage this Agreement, the Counterparty Storage Accounts or the Capacity Release as security for its indebtedness only with the prior written consent of the other Party, such consent not to be unreasonably withheld. This Agreement shall
be binding upon and inure to the benefit of the successors, assigns, personal representatives, and heirs of the respective Parties hereto, and the covenants, conditions, rights and obligations of the Agreement shall run for the full term of this
Agreement. No assignment of this Agreement, in whole or in part, shall be made without the prior written consent of the non-assigning Party, which consent shall not be unreasonably withheld, provided however, either Party may transfer its interest
to any affiliate by assignment, merger or otherwise without prior written consent of the other Party as long as such entity has a credit status which, in the non-assigning Party’s sole opinion, is at least as sound as that of the assignor. In
the event of an assignment of this Agreement, the 

 
Counterparty Storage Accounts or the Capacity Release, the assignor shall not be relieved from the performance of its obligations under this Agreement absent
a written release issued by the non-assigning Party. Any other assignment of this Agreement, the Counterparty Storage Accounts or the Capacity Release other than those specifically permitted by the foregoing parts of this Section 11.01 shall be
null and void unless the written consent of the other Party shall first have been obtained by the assigning Party. 
 ARTICLE XII 

GOVERNMENTAL AUTHORITY 
 12.01 Agreement
Subject to Valid Laws, Rules and Regulations 
 This Agreement shall be subject to all valid and applicable laws of the United States and to the applicable
valid rules, regulations or orders of any regulatory agency or governmental authority having jurisdiction over the Parties or this Agreement. The Parties shall be entitled to regard all applicable laws, rules and regulations (federal, state or
local) as valid and may act in accordance therewith until such time as the same may be declared invalid by a final, non-appealable judgment of a court of competent jurisdiction. 
 12.02 Permits, Licenses, Consents, Etc. 
 Upon execution of this Agreement, each of the Parties agree
to seek such certificates, permits, licenses, authorizations and consents (whether from governmental or regulatory agencies, or from private parties) which are deemed reasonably necessary to perform the obligations of each Party under this
Agreement. 
 12.03 Regulatory Filings 
 Upon
execution of this Agreement, and from time to time throughout its term, each of the Parties shall make all filings on its own behalf which are required by any regulatory bodies having jurisdiction over this Agreement and, upon request of the other
Party, shall promptly provide copies of such filings to the other Party. 
 12.04 Termination Due to Regulatory Changes 
 Either Party may terminate this Agreement in the event that the FERC, the public service commission regulating Counterparty, or a legislative body changes its statutes,
regulations or orders so as (1) to significantly restrict the transactions contemplated in this Agreement, (2) to require Counterparty to assign to its customers portions of the assets included in the Capacity Release, or (3) to
significantly and materially modify the nature of the services provided by the Service Providers; provided however, that the Parties shall first endeavor to mutually agree on revisions to this Agreement to comply with such regulatory changes. In the
event the Parties elect to terminate this Agreement pursuant to this Section 12.04, such termination shall be effected as set forth in Section 9.02(d). 

 ARTICLE XIII 
 FORCE MAJEURE 
 13.01 Performance Excused by Force Majeure 
 If either Party is rendered unable, wholly or in part, by Force Majeure to perform its obligations under this Agreement, other than the obligation to make payments then
or subsequently due, it is mutually agreed that performance of the respective obligations of the Parties, so far as they are affected by such Force Majeure, shall be suspended without liability from the inception of any such inability until it is
corrected, but for no longer period. In order to suspend by reason of Force Majeure, the Party claiming such inability shall promptly notify the other Party of the full particulars after the occurrence of the event relied on, and promptly correct
the inability to the extent it may be corrected through the exercise of reasonable diligence. No Party shall, however, be required against its will to settle any labor disputes. 
 ARTICLE XIV 
 CONFIDENTIALITY 
 14.01 Obligation to Maintain Confidentiality 
 Each Party agrees that the existence of this Agreement
may be considered public information and either Party may disclose the fact that it has entered into this Agreement and the general purposes of the Agreement; however, any press releases or other public announcements shall be approved by the other
Party before issuance. Furthermore, each Party shall maintain all specific parts and contents of this Agreement in strict confidence and shall not cause or permit disclosure thereof to any third party without the express written consent of the other
Party; provided, however, that no specific written consent is required if (i) such information has already become public through no act or omission on the part of either Party, (ii) such disclosure is reasonably required in order to
arrange for the Capacity Release and to effectuate the transportation of Gas, or (iii) either Party is required to make such disclosure by order or regulation of any court or agency exercising jurisdiction over the Parties or the subject matter
hereof. Counterparty reserves the right to disclose this Agreement and the terms hereof if Counterparty determines, in Counterparty’s reasonable discretion, that such disclosure to its regulatory commissions is advisable, in which case
Counterparty shall use its best efforts to have this Agreement and the terms hereof disclosed only pursuant to an agreement whereby the viewing party or parties agree to maintain the confidentiality of the Agreement and terms hereof. Each Party
hereby consents to the disclosure of this Agreement to the outside auditors of the other Party, provided that such auditors agree to maintain the confidentiality of this Agreement. In the event that this Agreement or any of the terms hereof are
required to be disclosed pursuant to the provisions of this Section 14.01, the Party who is required to make such disclosure shall as soon as reasonably possible notify the other Party hereto of the requirement of such disclosure, and the
non-disclosing Party shall be entitle to take all reasonable actions to prevent or to minimize such disclosure if, in the non-disclosing Party’s sole reasonable judgment, such disclosure would be materially detrimental to such Party.

 ARTICLE XV MISCELLANEOUS 
 15.01 Waiver 
 No waiver by either Party of any one or more defaults by the other in the performance of any provisions of this Agreement shall
operate or be construed as a waiver of any other default or defaults, whether of a like or of a different character. 

 15.02 Governing Law 
 This Agreement shall be governed by and construed in accordance with the laws of the State of Virginia without regard to principles of conflicts of law. 
 15.03 Entire Agreement 
 This Agreement constitutes the entire agreement between the Parties pertaining to the subject
matter hereof, supercedes all prior agreements and understandings, whether oral or written, which the Parties may have had in connection herewith, and may not be modified or amended except by written agreement executed by authorized representatives
of each of the Parties. 
 15.04 Provisions Found to be Invalid 
 If any provision of this Agreement is determined to be invalid, illegal or otherwise unenforceable for any reason by a governmental authority or a court of competent Jurisdiction, and in the event that the overriding
purpose of this Agreement is frustrated by such determination, then the terms and conditions of this Agreement shall remain in full force and effect to the fullest extent permitted by applicable law. In the event this Agreement remains in full force
and effect, the Parties agree to make a good faith effort to replace the affected provisions with amended provisions that comply with the governmental or judicial rulings as aforesaid. 
 15.05 Waiver of Certain Damages 
 EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED HEREIN, NEITHER PARTY SHALL
BE LIABLE TO THE OTHER FOR ANY SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES OF ANY CHARACTER, INCLUDING BUT NOT LIMITED TO LOSS OF USE, LOST PROFITS (PAST AND FUTURE), ADDITIONAL OUT OF POCKET EXPENSES INCURRED BY EITHER PARTY,
OR TORT, CONTRACT OR OTHER CLAIMS RESULTING FROM, ARISING OUT OF, IN CONNECTION WITH OR IN ANY WAY INCIDENT TO ANY ACT OR OMISSION OF EITHER PARTY RELATED TO THE PROVISIONS OF THIS AGREEMENT, IRRESPECTIVE OF WHETHER CLAIMS OR ACTIONS FOR SUCH
DAMAGES ARE BASED UPON CONTRACT, WARRANTY, NEGLIGENCE, STRICT LIABILITY OR ANY OTHER REMEDY AT LAW OR EQUITY. 
 15.06 Measurement and Quality

  

	(a)	Manager and Counterparty shall rely upon measurement by the Transporter at the Delivery Points at pressures in Transporter’s pipeline in existence from time-to-time and such
measurements shall be corrected to the Unit of Measurement. Manager’s deliveries of Gas shall be calculated from the measurements taken at the meter(s) installed, operated and maintained by Transporter at the Delivery Points, and from the
heating value determined by the instruments operated by Transporter. Measurement and determination of Gas delivered under the Agreement shall be made in accordance with standard industry practice. 

	(b)	The Gas to be delivered hereunder shall meet the applicable quality specifications required by each applicable Transporter. Either Party may refuse to accept delivery of any Gas not
meeting the quality specifications. 

 15.07 Measurement and Allocation Inaccuracies 
 Counterparty and Manager recognize the inherent inaccuracies in the measurement and allocation of Gas. Such inaccuracies may at times occur through no fault of
Counterparty or Manager such as in the case of allocations after actual deliveries that are the result of measurement inaccuracies, or unpresentable variations in rates of flow at the Delivery Points, and may result in failure to deliver or receive
the daily nominated volume (such inaccuracies are hereinafter called “Measurement and Allocation Inaccuracies”). To the extent the actual quantities delivered or received vary from the daily nominated volume due to Measurement and
Allocation Inaccuracies, the Parties agree that Counterparty’s obligations to purchase and receive and Manager’s obligation sell and deliver, insofar as liquidated damages and rights to termination of this Agreement are concerned, shall be
deemed to be fulfilled to the extent that, on a daily and monthly basis, such deliveries and receipts are within the applicable Transporter’s Tariff for tolerances regarding imbalances to the extent such tolerances do not impose a penalty or
similar charge with respect to such imbalances. 
 15.08 Transportation to Delivery Points and Downstream 
  

	(a)	Manager shall be responsible for arranging for transportation of all Gas purchased and sold to Counterparty hereunder to the Delivery Points and Counterparty shall be responsible
for transportation downstream of the Delivery Points. 

  

	(b)	In the event that any Transporter requires Manager to provide a ranking of markets to be served by Manager for use by such Transporter in allocating Manager’s Gas among such
markets in case of under delivery by Manager, or in any other instance of Transporter’s inability to deliver all quantities nominated for delivery, Manager shall place deliveries for Counterparty at a level equal to similarly-situated Firm
customers in any such ranking; provided, however, that any curtailment of Manager’s deliveries of Gas to Counterparty pursuant to such ranking shall not, in and of itself, excuse Manager’s obligations under this Agreement, unless due to a
Force Majeure event. 

 15.09 Service Provider Penalties 
  

	(a)	 It is understood that the Gas purchased and sold hereunder shall be transported and stored by third party Service Providers, and each Party hereto has agreed to
provide notice to the other Party of quantities of Gas Manager intends to deliver and Counterparty intends to purchase and receive at each Delivery Point. Both Parties shall be obligated to use their best efforts to avoid the imposition by any
Service Provider of penalties or other charges, including those for imbalances between receipts and deliveries or for imbalances or deviations from nominated or scheduled quantities. If Manager delivers, or causes to be delivered, for
Counterparty’s account, at any Delivery Point a quantity of Gas that is greater or less than that scheduled for delivery to, and transportation by, any Service Provider and such variable deliveries cause Counterparty to incur a penalty or other

	 	 
charges as levied by such Service Provider, then Manager shall bear and pay such penalties or other charges, unless such penalty or other charge was incurred
due to a specific Counterparty request to Manager. If Counterparty takes, at any Delivery Point, a quantity of Gas that is greater or less than that scheduled for delivery to and transportation by any Service Provider (or, for TCO, a quantity which
is greater or less than the Balancing Tolerance specified in Section 4.01(b) and such variable receipts cause Manager to incur a penalty or other charges as levied by such Service Provider, then Counterparty shall bear and pay such penalties or
other charges. 

  

	(b)	Either Party shall immediately notify the other Party of any notice received from any Service Provider that indicates an imbalance in deliveries exists or is occurring that may give
rise to a penalty or other charges. The Parties agree to cooperate immediately to adjust their deliveries as necessary to bring deliveries and receipts into balance with nominated quantities so that any penalties or other charges are avoided or
minimized as much as possible. 

  

	(c)	Independent of any penalty or charge under 15.09(a), if any Transporter employs a cashout mechanism to resolve imbalances under Counterparty arrangements downstream of the Delivery
Points and, despite the Parties’ efforts under 15.09(b), an imbalance is incurred and cashed out, any cash-out charges or penalties assessed against Counterparty shall be: 

  

	 	(i)	Counterparty’s responsibility where such charges or penalties are caused by Counterparty, and 

  

	 	(ii)	Manager’s responsibility where such charges or penalties are caused by Manager. 

  

	(d)	In the event that Counterparty receives a cash-out payment from any Transporter associated with over deliveries of Gas under this Agreement, and provided that Counterparty has not
previously paid Manager for such over deliveries, Counterparty shall pay Manager the amount so received. In the event that Counterparty must purchase Gas from any Transporter associated with under deliveries of Gas under the Agreement and the price
is higher than the price Counterparty would otherwise pay Manager, Manager shall pay Counterparty the positive difference, if any, between the former and latter prices. 

 15.10 Notices 
 All notices required to be sent shall be sent to the Parties at the following
addresses, telephone numbers and fax numbers: 
  

			
	To Manager:	  	ConocoPhillips
		  	600 North Dairy Ashford
		  	Houston, TX 77079
		
		  	Notices/Correspondence:
		  	Attn: Contract Administration
		  	Telephone: 281-293-5359
		  	Fax: 281-293-6303

			
		  	Invoices:
		  	Attn: Natural Gas Accounting
		  	Telephone: 281-293-5838
		  	Fax: 281-293-3940
		
	To Counterparty:	  	519 Kimball Ave., N.E.
		  	Roanoke, VA 24016
		  	Telephone: 540-777-3800
		  	Fax: 540-777-3957
		  	e-mail: gagnetm@roanokegas.com
		
		  	Notices/Correspondence:
		  	Attn: Michael Gagnet
		
		  	Invoices:
		  	Attn: Howard Lyon

 15.11 Duty to Mitigate 
 Each Party agrees that it has a duty to mitigate damages and covenants that it shall use commercially reasonable efforts to minimize any damages it may incur as a result of the other Party’s performance or
non-performance of this Agreement. 
 15.12 Taxes 
 Each Party shall use reasonable efforts to administer this Agreement and implement the provisions in accordance with the intent to minimize the imposition of taxes. 
 15.13 Waiver of Jury Trial 
 Each Party herein waives its respective right to any jury trial with
respect to any litigation arising under, or in connection with, this Agreement. 
 15.14 No Third Party Beneficiary 
 This Agreement shall not be construed to create any third party beneficiary relationship in favor of anyone not a party to this Agreement. In addition, the Parties waive
and disclaim any third party beneficiary status as to any of the contracts of the other Party. 
 15.15 Forward Contract 
 The Parties acknowledge and agree that this Agreement and each nomination documented by a confirmation notice in accordance with Section 5.05 constitutes a
“forward contract” within the meaning of the United States Bankruptcy Code. 

 ARTICLE XVI 
 ARBITRATION AND DISPUTE RESOLUTION 
 16.01 Dispute Resolution 
 In the event of a dispute involving an amount under $1,000,000 or in the event the Parties need to re-negotiate portions of this Agreement due to events described
in Section 2.01 but are unable to reach agreement, the matter shall be submitted upon the request of either Party to binding arbitration by one (1) qualified arbitrator who has not been previously employed by either Party or its
affiliates, and does not have a direct or indirect interest in either Party or the subject matter of the arbitration. Such arbitrator shall either be mutually selected by the Parties within thirty (30) days after written notice form either
Party requesting arbitration, or failing agreement, shall be selected under the expedited rules of the American Arbitration Association (“AAA”). Such arbitration shall be held in alternating location of the home offices of the
Parties, beginning with Manager’s home office, or in any other mutually agreeable location. The rules of the AAA shall apply to the extent not inconsistent with the rules herein specified. Either Party may initiate arbitration by written notice
to the other Party. The arbitration shall be conducted according to the following: (a) not later than seven (7) days prior to the hearing date set by the arbitrator, each Party shall submit a brief with a single proposal for settlement,
(b) the hearing shall be conducted on a confidential basis without continuance or adjournment, (c) the arbitrator shall be limited to selecting one (1) of the settlement proposals submitted by the Parties, (d) each Party shall
divide equally the cost of the arbitrator and the hearing, (e) each Party shall be responsible for its own costs and those of its counsel and representatives, and (f) evidence concerning the financial position or organizational make-up of
the Parties, any offer made or the details of any negotiation prior to arbitration, and the cost to the Parties of their representatives and counsel shall not be permissible. The arbitrated award shall not include any consequential or punitive
damages. 
 16.02 Binding Effect 
 Each Party
understands that this Agreement contains an agreement to arbitrate with respect to certain disputes arising under this Agreement. After signing this Agreement, each Party understands that it shall not be able to bring a lawsuit concerning any
dispute that may arise that is covered by this arbitration provision. Instead, each Party agrees to submit such dispute to an impartial arbitrator. Any monetary award of the arbitrator may be enforced by the Party in whose favor such monetary award
is made in any court of competent jurisdiction. 

 IN WITNESS WHEREOF, by execution in duplicate originals, the Parties hereto have caused this Agreement to be effective as
of the day and year first above written: 
  

			
	CONOCOPHILLIPS COMPANY
		
	By:	 	 /s/ John W. Wright

	Title:	 	President Gas & Power
	Date:	 	10/1/07
	
	ROANOKE GAS COMPANY
		
	By:	 	 /s/ John B. Williamson, III

	Title	 	President & CEO
	Date:	 	10/16/07

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