Document:

EX-10.7

 Exhibit 10.7 

FORM OF FUEL DISTRIBUTION AGREEMENT 

THIS FUEL DISTRIBUTION AGREEMENT (this “Agreement”) made and entered into on
            , 2015 (the “Effective Date”) between GPM PETROLEUM, LLC, a Delaware limited liability company (“Supplier”), having its principal place of business at 8565
Magellan Parkway, Suite 400, Richmond, Virginia 23227 and VILLAGE PANTRY, LLC, a Delaware limited liability company, and COLONIAL PANTRY HOLDINGS, LLC, a Delaware limited liability company (jointly and severally, “Purchaser”), having its
principal place of business at 8565 Magellan Parkway, Suite 400, Richmond, Virginia 23227. 
 WITNESSETH 

Supplier is engaged in the sale and distribution of branded and unbranded gasoline (all grades), diesel fuel, ethanol, biodiesel and kerosene
(the “Product”). Purchaser desires Supplier to be the exclusive supplier of the Product for (i) the one hundred twenty-six (126) VPS Midwest convenience stores and gasoline facilities operated by Purchaser and its subsidiaries on
the date hereof (the “Stations”). Purchaser desires to purchase the Product from Supplier, and Supplier desires to sell the Product to Purchaser, subject to the terms and provisions of this Agreement. 

Supplier and GPM Investments, LLC, a Delaware limited liability company (“GPM”), have entered into a fuel distribution agreement of
even date herewith (the “GPM Distribution Contract”) in which Supplier and GPM agree, among other things, that Supplier shall supply Product to GPM pursuant to the terms and conditions therein. 

Supplier and GPM Midwest, LLC, a Delaware limited liability company (“Road Ranger”), have entered into a fuel distribution agreement
of even date herewith (the “GPM RR Distribution Contract,” and, together with this Agreement and the GPM Distribution Contract, the “GPM Distribution Contracts”) in which Supplier and Road Ranger agree, among other things, that
Supplier shall supply Product to Road Ranger pursuant to the terms and conditions therein. 
 In consideration of the mutual promises herein
contained, Supplier agrees to sell and Purchaser agrees to purchase, receive and pay for Product of the kind and in the quantities and under the terms and conditions specifically set forth below. 

1. Exclusive Supplier. 
 (a) During the
term of this Agreement, Supplier shall be the exclusive supplier of the Product to be sold from the Stations, and Purchaser and those individuals or entities approved by Supplier in Supplier’s reasonable discretion who will operate the Stations
(if any) (“Dealers”) shall sell from the Stations only the Product supplied by Supplier, subject to Section 2(c). Supplier hereby agrees to supply Purchaser with such grades and quantities of the Product as Purchaser shall
order, excepting interruptions covered in Section 11. 
 (b) Purchaser expressly covenants and agrees that, during the term of
this Agreement and except as otherwise provided herein, neither Purchaser nor its Dealers will obtain Product for the Stations from any source other than Supplier and will not deliver Product purchased hereunder to any location other than the
Stations. In the event of a breach of the foregoing 

 
covenant, in addition to any other right or remedy afforded to Supplier under this Agreement or under any applicable law, statute or regulation, (i) Supplier and Purchaser acknowledge and
agree that it would be extremely difficult to accurately determine the amount of damages suffered by Supplier as a result of such breach and (ii) Purchaser further agrees that money damages may not be a sufficient remedy for any breach of the
foregoing covenant, and that Supplier also shall be entitled to seek specific performance, injunctive relief or other equitable relief as a remedy for any such breach without the necessity of posting a bond or other security, except as may be
expressly mandated under any applicable federal or state statute. Each of the foregoing remedies shall be in addition to and not in lieu of or at the exclusion of any and all other remedies available to Supplier under this Agreement or at law or
equity. 
 (c) A Station shall be automatically removed from this Agreement in the event that (i) Purchaser closes such Station,
(ii) Purchaser’s lease for such Station terminates or expires for any reason or (iii) Purchaser sells such location to a third party who is not an affiliate of Purchaser and Purchaser has not entered into an agreement to supply
Product to such Station; provided that, in the case of this Section 1(c)(iii), consent of the Supplier is required to remove such Station from this Agreement unless (x) Purchaser has agreed to substitute one or more locations as
Stations(s) which will require the supply of no less than equivalent volume of Product within [●] months of such sale or (y) such sale does not cause the decrease in the aggregate volume of Product sold at Stations under the GPM
Distribution Contracts (such volume of Product with respect to each sold Station to be calculated as of the prior full 12 month period preceding such sale) to exceed 10% of the aggregate volume of Product sold by Supplier under the GPM
Distribution Contracts during the full 12 month period preceding the sale in question. 
 2. Volume Commitments. 

(a) Commencing with the full month following the Effective Date and during the term of this Agreement, unless terminated by Purchaser per
Section 10, the quantity of Product covered by this Agreement shall be all of Purchaser’s requirements for the Stations. 

(b) Notwithstanding the foregoing, during any period of this Agreement for which the amount of any such Product that Supplier is required to
supply to Purchaser is prescribed by government rules, regulations or orders, the quantity of such Product to be supplied by Supplier to Purchaser covered hereby shall be the quantity so prescribed instead of the quantity described in
Section 2(a) above. 
 (c) In the event that Supplier is unable to distribute all motor fuel volumes that Purchaser desires to
purchase from the Supplier, Purchaser may purchase from third parties its requirements of any motor fuel volumes in excess of the amounts of such motor fuel supplied by the Supplier. 

3. Delivery and Risk of Loss. Deliveries of Product shall be made at Purchaser’s sole expense f.o.b. at the terminals or other delivery points
selected by Purchaser. If any of the Stations are operated by Dealers on a non-consignment basis, Purchaser shall arrange for transportation of Product and title to, and risk of loss of, all Product delivered at a terminal shall pass from Supplier
to Purchaser when such Product is loaded on the transport trucks of Purchaser 

  
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or Purchaser’s common carrier. If the Product is being delivered by Supplier to Purchaser directly or through Supplier’s hired common carrier, which shall occur in all cases in which
Purchaser operates a Station or sells Product at such Station on a consignment basis, then title to, and risk of loss of, all Product delivered at the Stations shall pass from Supplier to Purchaser when such Product is placed in the tank at the
Stations. Additionally, if Products are delivered through Supplier’s common carrier, in addition to the Product costs set forth in Section 4 below, Purchaser shall pay to Supplier the actual cost of freight to the Stations after all
discounts and rebates are applied, with such payment due to Supplier in accordance with Section 5. Purchaser shall strictly comply with all applicable rules and regulations of terminals and facilities at which Purchaser receives Product
from Supplier. 
 4. Product Cost. Purchaser shall pay Supplier the Rack Price, as hereinafter defined, for its purchases of the Product, plus
(i) all applicable taxes, fees and governmental surcharges, and (ii) four and one-half cents ($0.045) per gallon. The term “Rack Price” shall mean the posted rack price of the branded fuel supplier or unbranded seller of such
Product, as applicable, in effect at the terminal of origin for its wholesalers as of the time and date of delivery to Purchaser. Purchaser shall retain and be entitled to (x) any prompt payment discounts and (y) all other discounts or
rebates for all Stations, as offered by the branded fuel supplier (or any unbranded supplier) and earned by Supplier or any other discounts allowed by law and Supplier shall make its payments to its suppliers in a manner that maximizes such
discounts and rebates; it being understood that Purchaser’s ability to receive such discounts and rebates was material in Purchaser’s agreement to agree to the payment terms herein. All prices charged by Supplier are subject to the
provisions of applicable law. It is agreed that any duty, tax, fee or other charge which Supplier may be required to collect or pay under any municipal, state, federal or other laws now in effect or hereafter enacted with respect to the production,
manufacture, inspection, transportation, storage, sale, delivery or use of the Product covered by this Agreement shall be added to the prices to be paid by Purchaser for Product purchased hereunder. 

5. Credit, Payment and Credit Cards. 
 (a)
With respect to all amounts owed to Supplier hereunder, Purchaser shall pay Supplier via electronic funds transfers (“EFT”), which EFTs shall be activated by Supplier in accordance with this Section 5(a): 

(i) Except as provided in Section 5(a)(ii), Purchaser shall pay all amounts due to Supplier nine (9) days from the date of
the applicable invoice from Supplier, including the amounts due in accordance with Sections 3 and 4. Any EFT will be activated by Supplier on the bank and account designated by Purchaser. The amount drafted will be the total charges
due and payable by Purchaser for the Product and the applicable freight. 
 (ii) Purchaser shall also pay for taxes and any other charges
and fees associated with the sales of the Product, with such payment to be made by EFT at such times as to be concurrent with Supplier’s applicable payment due date for such taxes (which the parties agree may be on a deferred payment date if
permitted by the applicable jurisdiction) or other charges and fees. 

  
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 (iii) Any money owed by Purchaser to Supplier after the due date shall bear interest at the rate
of the lesser of 1% per month (12% annual percentage rate) or the maximum interest rate permitted by law. 
 (b) All bills
and statements rendered to Purchaser by Supplier during any month shall conclusively be presumed to be true and correct after sixty (60) days following the end of any such month, unless within such sixty (60) day period Purchaser delivers
to Supplier written exception thereto setting forth the item or items questioned and the basis therefor. Time is of the essence in Purchaser’s complying with this provision. Notwithstanding the foregoing, Purchaser hereby acknowledges and
agrees that, with respect to deliveries made at any terminal to Purchaser’s transport trucks or common carrier, the amount of Product purchased as stated by the terminal shall be deemed to be accurate. 

(c) Unless restricted by a Product brand, Purchaser may arrange for its own credit card processing. If any of the Product sold at a Station is
branded, Purchaser shall be bound by all of the terms and conditions of any branded fuel supplier’s credit card guide, as amended from time to time, including but not limited to the requirement to accept and honor for processing all credit
cards identified in such credit card guide. To the extent Supplier receives credit card receipts for the Stations, Supplier shall, subject to Section 5(e), remit such receipts to Purchaser via EFT on a daily basis; provided that,
Purchaser shall be solely responsible for credit sales tickets not evidencing deliveries of products or services authorized by the credit card guide, those which are not completed in accordance with the requirements thereof and other chargebacks and
in such event, the value of such credit sales tickets shall immediately become due and owing to Supplier and may be deducted from subsequent EFTs of credit card receipts from Supplier to Purchaser. Purchaser and Supplier agree that all credit card
sales at the Stations shall be made pursuant to the branded fuel supplier’s required point of sale system for processing credit cards and Purchaser shall bear the expense of the credit card fees for such sales. 

(d) Purchaser hereby represents and warrants to Supplier that the sale of petroleum and other products at the Stations is and will be in
compliance with the Payment Card Industry (“PCI”) data security standards, as such standards are in effect from time to time. Purchaser hereby agrees to indemnify and hold harmless Supplier from any breach of such PCI standards by
Purchaser during the term of this Agreement. 
 (e) Supplier shall have the right, but not the obligation, to offset any indebtedness owed
by Supplier to Purchaser against any indebtedness owed by Purchaser to Supplier, whether arising from the receipt of credit card proceeds or otherwise. 

6. Marketing and Advertising; Handling of the Product; Maintenance. 

(a) Purchaser agrees to market the Product under the brands, trade names and trademarks established for the Product, and not to sell the
petroleum products of other branded fuel suppliers during the term of this Agreement, except as permitted hereby. Purchaser agrees that Purchaser shall maintain the Stations in strict compliance with each applicable brand’s image standards, as
such standards are changed from time to time during the term of this Agreement. Purchaser acknowledges that such trademarks are owned by or used by the applicable branded fuel supplier, which retains the right, subject to requirements of law, to

  
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withdraw these from Purchaser at any time notwithstanding any request or demand by Supplier to the contrary. Subject to the approval of the applicable branded fuel suppliers, Supplier grants to
Purchaser the non-exclusive right to use such Supplier’s proprietary marks in connection with the advertising, marketing, and resale of the branded Product purchased from Supplier under this Agreement. Purchaser agrees that, with respect to any
Station where it sells branded Product, petroleum products of other branded suppliers or unbranded products will not be sold by Purchaser at such Station under the applicable branded supplier’s proprietary marks. 

(b) Purchaser shall be responsible for the handling and marketing, including all point of sale materials, of the Product, including charges
therefor, and shall comply with all requirements of any governmental agency and the branded fuel supplier with respect thereto. Purchaser shall not allow or permit any Product sold hereunder to be mislabeled, misbranded or contaminated by mixture or
adulteration with any other motor fuel, if applicable, or with any other material. This includes contamination by water. Supplier shall not be liable, nor shall Supplier reimburse any customer of Purchaser for any damages, repairs or losses that
result from contaminated gasoline dispensed into a vehicle by Purchaser or Purchaser’s agents, representatives, or employees. Purchaser covenants and agrees that all petroleum products to be sold at the Stations will be provided by Supplier
hereunder, and no petroleum products to be sold at the Stations will be provided by any other supplier. 
 (c) Purchaser is solely
responsible for all exterior maintenance and all interior maintenance at the Stations, including, without limitation, the maintenance and replacement of the underground storage tanks, subsurface systems, dispensing equipment and consoles and all
other equipment associated with the sale of the Product at the Stations, the maintenance of the lights on the canopy and identification sign effect. 
 7.
Branding; Rebranding; Amortization of Costs of Improvements. 
 (a) Subject to Purchaser’s approval, Supplier shall have the
right to substitute the current branded fuel supplier trademarks for trademarks owned or controlled by any other major fuel supplier. In the event of such substitution at the request of Supplier, Supplier undertakes to arrange for and bear the cost,
if any, of the replacement of such signs, symbols, and similar indicia which must be replaced as a consequence of such substitution and any other cost or expense related to such substitution and Supplier shall bear any penalties or costs, including,
but not limited to, image repayment or recapture obligation as the result of debranding such Station (all of the foregoing, collectively “Supplier-Initiated Rebranding Costs”). 

(b) Purchaser may at any time request to substitute the current branded fuel supplier trademarks for trademarks owned or controlled by any
other major fuel supplier or to become unbranded at any Station. In the event of such substitution at the request of Purchaser, Purchaser undertakes to arrange for and bear the cost, if any, of the replacement of such signs, symbols, and similar
indicia which must be replaced as a consequence of such substitution and any other cost or expense related to such substitution and Purchaser shall bear any penalties or costs, including, but not limited to, image repayment or recapture obligation
as the result of debranding such Station. 

  
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 (c) Upon termination, nonrenewal, or expiration of this Agreement or prior thereto upon demand by
a branded supplier, Purchaser’s right to use the proprietary marks of such branded fuel supplier will terminate, and Purchaser shall discontinue the posting, mounting, display or other use of such branded fuel supplier’s proprietary marks.
In the event that Purchaser fails to do so to the satisfaction of such branded supplier or Supplier, subject to applicable law, the branded fuel supplier and Supplier (i) shall have the right to cause any and all signage, placards, and other
displays bearing the proprietary marks to be removed from the Stations; and (ii) shall have the right to use any means necessary to remove, cover or obliterate the proprietary marks, including entry to the Stations to do so. In the event the
branded fuel supplier or Supplier take any such action hereunder, Purchaser shall bear all costs and expenses thereof, including without limitation the costs of removing, obliterating, or covering the proprietary marks. 

(d) Purchaser shall be entitled to all rebranding and image enhancement incentives, including, but not limited to, incentives related to
(i) the conversion of retail sites into branded sites, (ii) the demolition of retail sites and (iii) the construction of branded sites (collectively with clauses (i) and (ii), “Branding Costs”) offered by any branded
fuel supplier. Purchaser shall repay to Supplier, upon written demand of Supplier, (i) any unamortized Branding Costs, (ii) any unamortized renewal incentive reimbursements, including, but not limited to, payments made pursuant to
(x) any promissory notes issued by Supplier to a branded fuel supplier, (iii) any penalties pertaining to the failure to meet image requirements and guidelines, including, but not limited to, attorney’s fees and (iv) any costs
related to signage removal and site de-branding other than Supplier-Initiated Rebranding Costs, including, but not limited to, attorney’s fees. Supplier shall maintain records indicating the total amount due and owing from Purchaser with
respect hereto and shall, upon written request by Purchaser, provide Purchaser with copies of such records. 
 8. Environmental Matters. 

(a) Purchaser hereby represents and warrants that it is and its Dealers are and will at all times be in compliance with all requirements
imposed by any law, rule, regulation, or order of any federal, state or local executive, legislative, judicial, regulatory or administrative agency, board or authority in effect and applicable to the Stations and the operation of Purchaser’s
and Dealer’s business at the Stations which relate to (i) pollution or protection of the air, surface water, ground water or land; (ii) solid, gaseous or liquid waste generation, treatment, storage, disposal or transportation;
(iii) exposure to hazardous or toxic substances; and (iv) regulation of the manufacture, processing, distribution in commerce, use, or storage of chemical substances. 

(b) If any Product spill, leak or release occurs at the Stations in connection with Purchaser’s or Dealer’s operation thereof or
otherwise, or if any representation and warranty in Section 8(a) should cease to become true at any time during the term of the Contract, Purchaser shall immediately (i) notify the appropriate governmental authorities,
(ii) take such action as required by the governmental authority having jurisdiction, to clean up the spill, leak or release or other contamination and prevent further damage and (iii) notify Supplier of such actions. If Supplier incurs any
loss due to the environmental condition of the Stations or the environmental damage caused by Purchaser or any Dealer in the operation of their business (including natural resources damages, penalties for noncompliance or costs incurred in complying
with 

  
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environmental laws), Purchaser shall pay Supplier on demand the amount of any such losses and costs. This remedy is in addition to Supplier’s other remedies and indemnities under this
Agreement or at law. 
 (c) Purchaser shall be responsible for compliance with all regulations relating to inventory controls maintenance of
all underground storage tanks, and Purchaser shall measure the inventory of all underground storage tanks daily by tank sticking (on a per grade basis) or other industry-accepted measurement technique, and reconcile the measured inventory with meter
readings daily. Purchaser shall keep a daily log of all underground storage tank inventory readings at the Stations and all other government mandated environmental records. All such records and logs shall be available for inspection by Supplier at
any reasonable time. 
 9. Indemnification. Purchaser hereby covenants and agrees to indemnify, hold harmless, save and defend Supplier and its
officers, directors, shareholders, employees, agents, representatives, affiliates and their respective successors and assigns from and against any claim, cause of action, loss, damage, liability, cost or expense, including, without limitation,
reasonable attorney’s fees and expenses, made against or incurred by Supplier as a result of (i) the negligent or willful misconduct of Purchaser, Dealers, or any of their respective employees or agents, in connection with the handling,
storage or sale of the Product on or from the Stations, (ii) any violation by Purchaser, Dealers, or any of their respective employees or agents, of any law, rule, regulation or ordinance now existing or hereinafter enacted, promulgated or
modified with respect to the hauling, handling, storage or sale of the Product, including any environmental contamination, (iii) any defects in the equipment used by Purchaser or Dealers with respect to the transporting, storage, handling or
dispensing of the Product, or (iv) any breach, default, violation, misrepresentation or breach of warranty by Purchaser in or under this Agreement or any other agreement or instrument executed by Purchaser in connection with this Agreement or
the transactions contemplated herein. 
 10. Term. This Agreement shall be in effect for a term beginning on the Effective Date and ending on the
tenth (10th) anniversary thereof, unless otherwise terminated by Purchaser as provided herein. 
 11. Force Majeure. 

(a) Notwithstanding anything to the contrary in this Agreement, in the event that either party hereto is hindered, delayed or prevented by
“force majeure” in the performance of this Agreement, the obligation of the party so affected shall be suspended and proportionally abated during the continuance of the force majeure condition and the party so affected shall not be liable
in damages or otherwise for its failure to perform. The term “force majeure” as used herein shall mean any cause whatsoever beyond the control of either party hereto, including, but not limited to (i) act of God, flood, fire,
explosion, war, riot, strike and other labor disturbance; (ii) failure in, or inability to obtain on reasonable terms, raw materials, finished products, transportation facilities, storage facilities and/or manufacturing facilities;
(iii) diminution, nonexistence or redirection of supplies as a result of compliance by the branded fuel supplier, voluntary or otherwise, with any request, order, requisition or necessity of the government or any governmental officer, agent or
representative purporting to act under authority, or with any governmental or industry rationing, allocation or supply program; and (iv) the branded fuel 

  
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supplier’s inability to meet the demand for its products at the branded fuel supplier’s normal and usual source points for supplying Supplier, regardless of the branded fuel
supplier’s reasoning for its inability to meet the demand for its products, including whether the branded fuel supplier may have been forced to divert certain supplies from such source points in order to alleviate shortages at other
distribution points. 
 (b) Notwithstanding anything to the contrary in this Agreement, if, for any reason, any branded fuel supplier is
unable to supply the requirements of all of its customers of any Product and such supply constriction affects Supplier, Supplier’s obligation while such condition exists shall, at its option, be reduced to the extent necessary in its sole
judgment and discretion to apportion fairly and reasonably among Supplier’s customers the amount of product which it is able to supply. Purchaser shall not hold Supplier responsible in any manner for any losses or damages which either party may
claim as a result of any such apportionment. Supplier shall not be required to make up any deficiency in any Product not delivered as a result of any such apportionment. 

(c) Nothing in this Section 11 shall excuse Purchaser from making payment when due for purchases made under the Agreement. 

12. Inspection of Records; Audit. Purchaser acknowledges that Supplier shall have a right to inspect Purchaser’s operation of its business and the
operation of each Station’s motor fuel dispensing business, and in particular shall have a right to verify that Purchaser is complying with all its contractual obligations contained in this Agreement and is complying with all federal, state and
local laws and regulations pertaining to environmental protection and trademark use. In order to verify that Purchaser is complying with all its contractual obligations and all environmental laws and trademark laws, Purchaser hereby agrees, and
shall cause each Dealer to agree, that Supplier may enter Purchaser’s and Dealers’ places of business, including the Stations, for purposes of conducting an inspection and audit. As part of any inspection and audit, Supplier shall be
allowed to review all records including, but not limited to, all records of purchases, deliveries, sales and inventory reconciliation. Supplier may, at any reasonable time and without prior notice, conduct a walk through and visual inspection of the
Stations. 
 13. Relationship of the Parties. Purchaser is an independent organization with the exclusive right to direct and control its business
operations, including the establishment of the prices at which products and merchandise are sold at the Stations, subject to applicable laws and regulations. 

14. Waiver; Jurisdiction; etc. The failure of either party to require strict performance by the other party hereunder, or any course of dealing between
the parties hereto, shall not be deemed a waiver of any of the terms or conditions of this Agreement or of any right or remedy available to either party at law or in equity. Purchaser and Supplier covenant and agree that this Agreement shall be
interpreted and enforced in accordance with the laws of the Commonwealth of Virginia, without regard to its choice of law rules. This Agreement shall not be amended or modified, and no waiver of any provision hereof shall be effective, unless set
forth in a written instrument duly executed by the parties hereto. This Agreement contains the entire agreement between the parties relating to the matters addressed herein and the transactions contemplated hereunder and supersedes all prior and
contemporaneous negotiations, undertakings and agreements, whether 

  
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written or oral, between the parties. It is hereby agreed to and understood by the parties to this Agreement that if Supplier obtains a judgment against Purchaser for breach of any provisions
hereof, Supplier’s contract damages include all attorney’s fees and other litigation expenses incurred by Supplier in obtaining such judgment. This Agreement shall be binding upon, and inure to the benefit of, Supplier and Purchaser and
their respective successors, assigns and legal representatives. THE PARTIES HERETO SHALL AND THEY HEREBY DO WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER ON ANY MATTERS
WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT, AS WELL AS THE PRIOR AGREEMENT. 
 15. Laws. Purchaser recognizes that it is
handling hazardous substances and agrees that in receiving, storing, handling, offering for sale, selling, delivering for use, exchanging in trade or using itself Product purchased from Supplier, Purchaser and its Dealers will in all respects
exercise the strictest care required by law and that it will comply with any and all applicable federal, state and local laws, ordinances, as exist now or hereinafter come into force, including, but not limited to, those governing dispensing
equipment, pollution, the maximum sulfur content of fuel, the maximum reid vapor pressure of motor fuel, the oxygen content of motor fuel, the dying requirements for diesel fuel, the maximum lead content of motor fuel and the labeling of pump stands
and dispensers of motor fuel, the use and labeling of product containers, the use, maintenance and labeling of product storage tanks, the prevention of spills, leaks, venting or other improper escape from product containers or storage tanks, and the
method of cleanup or disposal of product which has leaked, spilled, vented or otherwise improperly escaped from containers or storage tanks. PURCHASER WILL DEFEND, INDEMNIFY AND HOLD SELLER, ITS SUCCESSORS AND ASSIGNS, HARMLESS AGAINST ALL LOSSES,
CLAIMS, CAUSES OF ACTION, PENALTIES, FINES, LIABILITIES, ATTORNEYS’ FEES AND INTEREST ARISING OUT OF PURCHASER’S FAILURE TO COMPLY WITH THE PRECEDING SENTENCE, and such failure by Purchaser shall entitle Supplier to cancel this Agreement
immediately as it applies to the Product affected by such failure or other products which require the same standard of care. 
 16. Price Regulation.
Notwithstanding any other provision of this Agreement, if any state or local law, rule, regulation, or order (a) regulating the price at which Product to be sold hereunder may be sold or (b) limiting the discretion of Supplier to determine
to whom it will sell such Product, becomes effective during the term of this Agreement in any state in which such Product is to be sold hereunder, Supplier shall have the right to terminate this Agreement immediately. 

17. Notices. Any notice required hereunder shall be in writing and shall be hand delivered, sent by registered or certified mail or sent by overnight
delivery service. The notice addresses of Supplier and Purchaser shall be their respective principal place of business as specified herein, or such other place as a party shall specify in writing to the other. Any such notices shall take effect upon
hand delivery, delivery by overnight delivery service or three (3) days after the mailing thereof, as applicable. 

  
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 18. Termination. 

(a) This Agreement shall be terminated upon expiration of the term stated in Section 10 or as otherwise provided herein; 

(b) This Agreement may be terminated by Supplier: 

(i) if Purchaser becomes insolvent or commits an act of bankruptcy or takes advantage of any law for the benefit of debtors or
Purchaser’s creditors, or if a receiver is appointed for Purchaser; 
 (ii) if Purchaser fails to perform, satisfy or discharge any
term, covenant, agreement, condition, warranty, obligation or duty set forth in this Agreement and such failure continues for thirty (30) days after written notice is provided by Supplier; 

(iii) under the circumstances described as causes for termination by Supplier in Section 16; 

(iv) if Purchaser engages in fraud or criminal misconduct relevant to the operation of the business of the Purchaser; 

(v) if possession of the Stations by Purchaser is interrupted by act of any government or agency thereof; or 

(vi) if there occurs any other circumstance under which termination of a franchise is permitted under the provisions of the Petroleum
Marketing Practices Act (P.L. 95-297). 
 (c) This Agreement may be terminated by Purchaser: 

(i) if Supplier becomes insolvent or commits an act of bankruptcy or takes advantage of any law for the benefit of debtors or Supplier’s
creditors, or if a receiver is appointed for Purchaser; 
 (ii) if Supplier fails to perform, satisfy or discharge any term, covenant,
agreement, condition, warranty, obligation or duty set forth in this Agreement and such failure continues for thirty (30) days after written notice is provided by Purchaser; 

(iii) if Supplier engages in fraud or criminal misconduct relevant to the operation of the business of the Supplier; or 

(iv) if Purchaser and its affiliates no longer own or supply fuel to any of the Stations. 

(d) Any termination of this Agreement by Supplier shall be accompanied by such notice from Supplier as may be required by law. 

  
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 (e) Termination of this Agreement by either party for any reason shall not relieve the parties of
any obligation theretofore accrued under this Agreement. 
 19. Sale or Assignment. Neither party shall assign their rights or delegate their duties
under this Agreement, in whole or in part, without first receiving written consent from the other party hereto, which consent shall not be unreasonably withheld. Notwithstanding the foregoing, Supplier shall be entitled to assign this Agreement in
full to GPM Petroleum LP or any wholly-owned subsidiary of GPM Petroleum LP without the prior written consent of Purchaser by providing notice to Purchaser. 

20. Compliance with Laws; Severability of Provisions. Both parties expressly agree that it is the intention of neither party to violate statutory or
common law and that if any section, sentence, paragraph, clause or combination of same is in violation of any law, such sections, sentences, paragraphs, clauses or combination of same shall be inoperative and the remainder of this Agreement shall
remain binding upon the parties hereto unless in the judgment of either party hereto, the remaining portions hereof are inadequate to properly define the rights and obligations of the parties, in which event such party shall have the right, upon
making such determination, to thereafter terminate this Agreement upon written notice to the other. 
 21. Warranties; Limitation of Liability. 

(a) Supplier warrants that the Product supplied hereunder will conform to the promises and affirmations of fact made in its supplier’s
current technical literature and printed advertisements, if any, related specifically to such product(s) and that it will convey good title to the product(s) supplied hereunder, free of all liens. THE FOREGOING WARRANTIES ARE EXCLUSIVE AND ARE IN
LIEU OF ALL OTHER WARRANTIES, WHETHER WRITTEN, ORAL OR IMPLIED. THE WARRANTY OF MERCHANTABILITY AND WARRANTY OF FITNESS FOR PARTICULAR PURPOSE ARE EXPRESSLY EXCLUDED AND DISCLAIMED. 

(b) SUPPLIER SHALL NOT BE LIABLE FOR ANY, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES INCLUDING ANY LOSS OF PROFIT, EVEN IF SUPPLIER IS
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
 22. Entire Agreement. This writing is intended by the parties to be a final, complete and exclusive
statement of their agreement about the matters covered herein. THERE ARE NO ORAL UNDERSTANDINGS, REPRESENTATIONS OR WARRANTIES AFFECTING IT. No amendment or alterations to this Agreement shall have any effect unless made in writing and signed by an
authorized representative of Supplier and by an authorized representative of Purchaser. 
 23. Operating Standards. Purchaser shall conduct the
operation of its business described hereunder in a clean and safe manner and shall otherwise conduct no business which could interfere with Supplier’s sale or supply of Product or damage the goodwill of Supplier. Without limiting the foregoing,
Purchaser shall fully comply with the standards of any branded fuel supplier at any Station which bears such brand. 

  
 11 

 24. Waivers. This Agreement or any modification thereof shall not be binding upon Supplier until signed on
its behalf by an authorized representative of Supplier. Commencement of performance hereunder prior to signing as above stipulated in no case shall be construed as a waiver by Supplier of this requirement. 

25. Attorney’s Fees. It is hereby agreed to and understood by the parties to this Agreement that if either party obtains a judgment against the
other party for breach of any provisions hereof, the judgment holder’s contract damages include all attorney’s fees and other litigation expenses incurred by such judgment holder in obtaining such judgment. For the avoidance of doubt, in
the event that both parties are determined to be prevailing parties as to different claims comprising the same cause of action, each party shall be entitled to recover its respective attorneys’ fees that relate to the specific claim or claims
as to which such party was the prevailing party. 
 26. Nature of Agreement/No Third-Party Beneficiary. 

(a) In consideration of the granting and execution of this Agreement, it is agreed that there shall be no contractual obligation to extend or
renew the period or terms of this Agreement in any way, and the parties agree that this Agreement shall not be considered or deemed to be any form of “joint venture” or “partnership” at the Stations of Purchaser or elsewhere.
This Agreement shall bind the executors, administrators, personal representatives, assigns, and successors of the respective parties. 
 (b)
This Agreement is personal to the Purchaser and is intended for the sole use and benefit of Supplier and Purchaser. Nothing contained herein shall be deemed, interpreted, or construed to create, or express any intent to create, third-party
beneficiary rights in favor of any person or entity, except for any indemnified party (or other person entitled to be indemnified pursuant to this Agreement), and Supplier and Purchaser specifically state and agree that no such intent exists. 

27. Insurance. Purchaser shall obtain comprehensive general liability insurance covering operations and premises, complete operations and products
liability and contractual liability, all with limits reasonably required by Supplier and consistent with past practice. The insurance will name Supplier, its officers, members, managers, and successors, assignees, subsidiaries and affiliates as an
additional insured, and Purchaser shall furnish Supplier with certificates of such insurance which provide that coverage will not be canceled or materially changed prior to thirty (30) days’ advance written notice to Supplier. 

28. Non-Exclusive Territory. Nothing in this Agreement grants Purchaser an exclusive territory to market and resell any petroleum products. Supplier
reserves the right to market and sell, and authorize others to market and sell, petroleum products in any manner Supplier chooses, including through its own retail outlets or through designated wholesalers or other retailers. 

29. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original hereof, but all of which,
together, shall constitute a single agreement. 
 30. Successors and Assigns. This Agreement binds and benefits Purchaser and Supplier and their
respective permitted successors and assigns. 

  
 12 

 31. Accord. The parties have discussed the provisions of this Agreement and find them fair and mutually
satisfactory and further agree that in all respects the provisions are reasonable and of material significance to the relationship of the parties hereunder. 

[signature page follows] 

  
 13 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date. 

GPM PETROLEUM, LLC 
  

									
	By:		  
				By:		  

	Name:		Arie Kotler				Name:		Don Bassell
	Title:		President and CEO				Title:		CFO
				
	VILLAGE PANTRY, LLC						
					
	By:		  
				By:		  

	Name:		Arie Kotler				Name:		Don Bassell
	Title:		President and CEO				Title:		CFO
				
	COLONIAL PANTRY HOLDINGS, LLC						
					
	By:		  
				By:		  

	Name:		Arie Kotler				Name:		Don Bassell
	Title:		President and CEO				Title:		CFO

 [Signature Page to Fuel Distribution Agreement]NOTE MODIFICATION 2015

Exhibit 10(a)

	
				
	Maker
	DELTA NATURAL GAS COMPANY, INC.
	 
	 

	 
	 
	BB&T
	9580219605

	Address
	3617 LEXINGTON ROAD
	Customer Number

	 
	WINCHESTER, KY 40391
	 

	 
	 
	3

	 
	NOTE MODIFICATION AGREEMENT
	Note Number

	
							
	$40,000,000.00
	 
	10/31/2002
	 
	$40,000,000.00
	 
	6/30/2015

	Original Amount of Note
	 
	Original Date
	 
	Modification Amount
	 
	Modification Date

This Note Modification Agreement (hereinafter “Agreement”) is made and entered into this 30th day of June, 2015, by and between DELTA NATURAL GAS COMPANY,  INC., maker(s), co-maker(s), endorser(s), or other obligor(s) on the Promissory Note (as defined below), hereinafter also referred to jointly and severally as Borrower(s); Branch Banking and Trust Company of North Carolina, a banking corporation, hereinafter referred to as Bank and ______________________________________ _______________________________________________________________________ owners other than Borrower(s) (if any) of any property pledged to secure performance of Borrower(s)’s obligations to Bank, hereinafter referred to jointly and severally as Debtor(s)/Grantor(s).

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

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

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

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

Exhibit 10(a)

	
		
	o
	Fixed Rate of ________% per annum.

	 
	 

	o
	Variable rate of the Bank’s Prime Rate plus ____% per annum to be adjusted __________________as the Bank’s Prime Rate Changes.

	 
	 

	o
	As of the Modification Date, any fixed, floating, or average maximum rate and fixed minimum rate in effect by virtue of the Promissory Note are hereby deleted.  The interest rate will in no instance exceed the maximum rate permitted by applicable law and if checked here o, the interest rate will not decrease below a fixed minimum rate of ______%.  If checked here  o the interest rate will not exceed o a fixed maximum rate of _____%,  o an average maximum rate of _________%,  or o a floating maximum rate of the greater of ______% or the Bank’s Prime Rate.  If an average maximum rate is specified, a determination of any required reimbursement of interest by Bank will be made:  o when the Promissory Note is repaid in full by Borrower o annually beginning on __________________.

	 
	 

	ý
	THE ADJUSTED LIBOR RATE, AS DEFINED IN THE ATTACHED ADDENDUM TO PROMISSORY NOTE.

	 
	 

	 
	Principal and interest are payable as follows:

	 
	 

	 
ý
	Principal (plus any accrued interest not otherwise scheduled herein  }  is due in full at maturity on JUNE 30, 2017.

	o
	Principal plus accrued interest

	o
	Payable in consecutive _____ installments of o Principal                    
                                                                         o    Principal and interest   } commencing on ________
 
and continuing on the same day of each calendar period thereafter, in ____ equal payments of  $______, with one final payment of all remaining principal and accrued interest due on _____________.

	 
	 

	o
	ChoiceLine Payment Option:  2% of outstanding balance is payable monthly commencing on ____________ and continuing on the same day of each month thereafter, with one final payment of all remaining principal and accrued interest due on _______________________

	 
	 

	ý
	Accrued interest is payable monthly  commencing on  July 31, 2015 and continuing on the same day of each calendar period thereafter, with one final payment of all remaining interest due on June 30, 2017.

	 
	 

	o
	Bank reserves the right in its sole discretion to adjust the fixed payment due hereunder _______ on ________ and continuing on the same day of each calendar period thereafter, in order to maintain an amortization period of no more than ______ months from the date of the initial principal payment due hereunder.  Borrower understands the payment may increase if interest rates increase.

	 
	 

	o
	At the Borrower’s request, the Bank has agreed to readvance the principal amount of  $____________.  The outstanding principal balance under the Promissory Note prior to the readvance is $________________, making the total outstanding principal balance now due hereunder to be $_____________ (“Modification Amount”).

	 
	 

	o
	____________________________________________________________________________________________

	 
	 

	o
	___________________________________________________________________________________________

	 
	 

	o
	Borrower hereby authorizes Bank to automatically draft from its demand deposit or savings account(s) with Bank or other bank, any payment(s) due on the date(s) due.  Borrower shall provide appropriate account number(s) for account(s) at Bank or other bank.

	 
	 

	 
	The following scheduled payment(s) is (are) deferred:

	 
	 

	o
	$___________ principal

	 
	                                                                   }        payment(s) due on _________________________

	o
	$___________ interest

	 
	 

	 
	is (are) hereby deferred.  Payments will resume on ___________________________ according to the schedule contained herein or to the existing schedule (if no other changes are made herein).

	 
	 

	 
	 

	 
	 

Exhibit 10(a)

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

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

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

	
		
	o
	dated _______________________________ in the maximum principal amount of $_____________________________
granted by _________________________________________

	 
	 

	o
	dated _______________________________ in the maximum principal amount of $_____________________________
granted by _________________________________________

	 
	 

Exhibit 10(a)

Security Agreement(s) granting a security interest to Bank:
	
		
	o
	dated __________________ given by ______________________________________________________________
 ___________________________________________________________________________________________

	 
	 

	o
	dated __________________ given by ______________________________________________________________
___________________________________________________________________________________________

	 
	 

	o
	Securities Account Pledge and Security Agreement dated _________________,
executed by ________________________________________________________

	 
	 

	o
	Control Agreement(s) dated ___________________, covering * Deposit Account(s)           * Investment Property
                                                                                                     * Letter of Credit Rights     *    Electronic Chattel Paper

	 
	 

	o
	Assignment of Certificate of Deposit, Security Agreement, and Power of Attorney (for Certificated Certificates of Deposit) dated ____________________________________, executed by _____________________________________

	 
	 

	o
	Pledge and Security Agreement for Publicly Traded Certificated Securities dated _________________________, executed by ______________________________________________

	 
	 

	o
	Assignment of Life Insurance Policy dated ______________________________ for policy #____________________,
executed by  _____________________________________________________________

	 
	 

	o
	Loan Agreement dated _______________________, executed by Borrower and * Guarantor(s)

	 
	 

	o
	_____________________________________________________________________________________________

	 
	 

	o
	_____________________________________________________________________________________________

	 
	 

	o
	The collateral hereinafter described shall be and hereby is deleted as security interest for payment of the Promissory Note:

	 
	 

	 
	______________________________________________________________________________________________

	 
	______________________________________________________________________________________________

	 
	 

	 
	OTHER:   ______________________________________________________________________________________

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

In the event periodic accruals of interest shall exceed any periodic fixed payment amount described above, the fixed payment amount shall be immediately increased or supplemental interest payments required on the same periodic basis as specified above (increased fixed payments or supplemental payments to be determined in the Bank’s sole discretion), in such amounts and at such times as shall be necessary to pay all accruals of interest for the period and all accruals of unpaid interest from previous periods.  Such adjustments to the fixed payment amount or supplemental payments shall remain in effect for so long as any interest accruals shall 

Exhibit 10(a)

exceed the original fixed payment amount and shall be further adjusted upward or downward to reflect changes in any variable interest rate based on an index such as the Bank’s Prime Rate; provided that unless elected otherwise above, the fixed payment amount shall not be reduced below the original fixed payment amount.  However, Bank shall have the right, in its sole discretion, to lower the fixed payment amount below the original payment amount.  Notwithstanding any other provision contained in this agreement, in no event shall the provisions of this paragraph be applicable to any Promissory Note which requires disclosures pursuant to the Consumer Protection Act (Truth-in-Lending Act) 15 USC § 1601, et seq., as implemented by Regulation Z.

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

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

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

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

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

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

Exhibit 10(a)

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

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

(SIGNATURES ON FOLLOWING PAGE)

Exhibit 10(a)

BB&T

NOTE MODIFICATION SIGNATURE PAGE

	
		
	Borrower:  DELTA NATURAL GAS COMPANY, INC.
	 

	 
	 

	Account Number:    9580219605
	Note Number:    00003

	 
	 

	Modification Amount:    $40,000,000.00
	Modification Date:     June 30, 2015

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

If Borrower is a Corporation:
	
		
	WITNESS:
	DELTA NATURAL GAS COMPANY, INC.

	 
	(Name of Corporation)

	 
	 

	      /s/Ryan T. Hamilton_________________________
	By:     /s/John B. Brown ______________________

	 
	 

	 
	Title:  Chief Financial Officer, Treasurer & Secretary

	 
	 

	___/s/Ryan T. Hamilton_________________________
	By:    /s/Glenn R. Jennings____________________

	 
	 

	 
	Title:  President & Chief Executive Officer

	 
	 

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

	 
	NAME OF PARTNERSHIP, LLC, LLP OR LLLP

	 
	 

	____________________________________________
	By:  ________________________________________

	 
	 

	 
	Title: _________________________________________

	 
	 

	____________________________________________
	By:  _________________________________________

	 
	 

	 
	Title: ________________________________________

	 
	 

	___________________________________________
	By:  _________________________________________

	 
	 

	 
	Title:  _______________________________________

If Borrower is an Individual:
	
		
	WITNESS:
	 

	 
	 

	____________________________________________
	___________________________________________

Additional Borrowers and Debtors/Grantors/Guarantors:

	
		
	WITNESS:
	 

	 
	 

	___________________________________________
	____________________________________________

	___________________________________________
	____________________________________________

	___________________________________________
	____________________________________________

	___________________________________________
	____________________________________________

	___________________________________________
	____________________________________________

	___________________________________________
	____________________________________________

	___________________________________________
	____________________________________________

Exhibit 10(a)

BB&T
ADDENDUM TO PROMISSORY NOTE

THIS ADDENDUM TO PROMISSORY NOTE (“Addendum”) is hereby made a part of the Promissory Note dated 10/31/2002 from DELTA NATURAL GAS COMPANY, INC. (“Borrower”) payable to the order of Branch Banking and Trust Company (“Bank”) in the principal amount of $40,000,000.00 (including all renewals, extensions, modifications and substitutions therefore, the “Note”).  

	
		
	I.  
	DEFINITIONS.

1.1  Adjusted LIBOR Rate means a rate of interest per annum equal to the sum obtained (rounded upwards, if necessary, to the next higher 1/100th of 1.0%) by adding (i) the One Month LIBOR plus (ii) 1.075% per annum, which shall be adjusted monthly on the first day of each LIBOR Interest Period.  The Adjusted LIBOR Rate shall be adjusted for any change in the LIBOR Reserve Percentage so that Bank shall receive the same yield.  The interest rate will in no instance exceed the maximum rate permitted by applicable law and if checked here ý the interest rate will not decrease below a fixed minimum rate of 0.0%.  If checked here ý the interest rate will not exceed ý a fixed maximum rate of 30.00% or o an average maximum rate of _____%.  If an average maximum rate is specified, a determination of any required reimbursement of interest by Bank will be made:  o when Note is repaid in full by Borrower o annually beginning on __________________.  If the loan has been repaid prior to this date, no reimbursement will be made.

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

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

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

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

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

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

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

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

Exhibit 10(a)

	
		
	II.  
	LOAN BEARING ADJUSTED LIBOR RATE

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

2.2  Adjusted LIBOR Based Rate Protections.

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

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

This Addendum shall operate as a sealed instrument.

Exhibit 10(a)

If Borrower Is a Corporation:
	
		
	WITNESS:
	DELTA NATURAL GAS COMPANY, INC.

	 
	(Name of Corporation)

	 
	 

	/s/Ryan T. Hamilton                                           
	By:/s/ John B. Brown                                     (SEAL)

	 
	 

	    Ryan T. Hamilton                                           
	          John B. Brown                                             

	(Print Name)
	(Print Name)

	 
	 

	 
	Title:  Chief Financial Officer, Treasurer and Secretary

	 
	 

	______________________________________
	By:/s/ Glenn R. Jennings                              (SEAL)

	 
	   Glenn R. Jennings

	 
	(Print Name)

	 
	 

	______________________________________
	Title:  President

	(Print Name)
	 

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

	 
	Name of Partnership, LLC, LLP, or LLLP

	WITNESS:
	 

	 
	 

	_____________________________________________
	By:  _______________________________________ (SEAL)

	 
	 

	______________________________________________
	________________________________________________

	(Print Name)
	(Print Name)

	 
	 

	 
	Title:  ___________________________________________

	 
	 

	______________________________________________
	By:  _______________________________________ (SEAL)

	 
	 

	______________________________________________
	________________________________________________

	(Print Name)
	(Print Name)

	 
	 

	 
	Title:  __________________________________________

	 
	 

	______________________________________________
	By:  ______________________________________ (SEAL)

	 
	 

	_______________________________________________
	________________________________________________

	(Print Name)
	(Print Name)

	 
	 

	 
	Title:  ___________________________________________

If Borrower is an Individual:
	
		
	WITNESS:
	 

	 
	 

	______________________________________________
	__________________________________________ (SEAL)

	_____________________________________________
	 

	(Print Name)
	 

Additional Co-makers:	
		
	WITNESS:
	 

	 
	 

	_______________________________________________
	___________________________________________ (SEAL)

	 
	 

	______________________________________________
	 

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Exhibit 10(a)

EIGHTH AMENDMENT TO LOAN AGREEMENT 
BB&T Account Number: 9580219605

THIS EIGHTH AMENDMENT TO LOAN AGREEMENT (“Amendment”) is effective as of June 30, 2015, and is by and among DELTA NATURAL GAS COMPANY, INC., a Kentucky corporation (whether one or more, the “Borrower”), and Branch Banking and Trust Company, a North Carolina banking corporation (“Bank”), having a branch office in Lexington, Kentucky. This Eighth Amendment amends, modifies and supplements that Loan Agreement dated October 31, 2002, by and between Borrower and Bank (including any amendments or modifications thereof, the “Loan Agreement”). Unless otherwise defined in this Amendment, capitalized terms used herein shall have the definitions given them in the Loan Agreement.
RECITALS
A.   Pursuant to the terms and conditions of the Loan Agreement, the Bank established a line of credit in the original maximum amount of $40,000,000 (the “Line of Credit”), evidenced by Borrower’s Promissory Note dated October 31, 2002 (including all renewals, extensions, modifications, restatements and substitutions thereof, collectively, the "Note") payable to the order of the Bank and bearing interest as set forth therein.
B.     Borrower has requested, and Bank has agreed to, an extension of the maturity date of the Line of Credit.  In connection therewith, Bank has required the amendments reflected herein. 
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto agree as follows:
ARTICLE 1:      AMENDMENTS TO LOAN AGREEMENT
 1.1    Amendments to Loan Agreement.   
(a)    The maturity date of the Line of Credit is hereby amended and extended to June 30, 2017;
(b)    The interest rate on the Line of Credit has been modified as more fully set forth in that certain Note Modification Agreement, made by and between the parties and dated of even date herewith; 
(c)    Section 5.02 is hereby deleted and replaced in its entirety with the following:
5.02.  Require the Borrower to pledge collateral, equally and ratably, to the Bank and to the holders of the Long-Term Debt (defined below) from the Borrower’s assets and properties, the acceptability and sufficiency of such collateral to be determined in the Bank’s sole discretion.  The Borrower has issued its 4.26% Senior Notes, Series A due December 20, 2031 (“Long Term Debt”) pursuant to the terms of that certain Note Purchase and Private Shelf Agreement dated December 8, 2011 (“LT Debt Agreement”), which LT Debt Agreement, Section 9.2, requires the Borrower to secure the Long Term Debt with the same collateral it pledges in favor of the Bank.     
(d)    The following Section 6.05 is hereby added to the Loan Agreement:
6.05 Liens. and will not permit any of its Subsidiaries to, directly or indirectly create, incur, assume or permit to exist (upon the happening of a contingency 

Exhibit 10(a)

or otherwise) any Lien on or with respect to any property or asset (including, without limitation, any document or instrument in respect of goods or accounts receivable) of the Borrower or any such Subsidiary, whether now owned or held or hereafter acquired, or any income or profits therefrom, or assign or otherwise convey any right to receive income or profits, except:
(i)    Liens for taxes, assessments or other governmental levies or charges which are not yet due or which are being contested in good faith by the Borrower or any Subsidiary for which adequate reserves have been taken in accordance with GAAP;

(ii)    statutory Liens of landlords and Liens of carriers, contractors, warehousemen, mechanics and materialmen incurred in the ordinary course of business for sums not yet due or are being contested in good faith by the Borrower or any Subsidiary and for which adequate reserves have been taken in accordance with GAAP;

(iii)    Liens (other than any Lien imposed by ERISA) incurred, or deposits made, in the ordinary course of business (a) in connection with workers’ compensation, unemployment insurance, old age benefit and other types of social security, (b) to secure (or to obtain letters of credit that secure) the performance of tenders, statutory obligations, surety bonds, appeal bonds (not in excess of $5,000,000), bids, leases (other than Capital Leases), performance bonds, purchase, construction or sales contracts and other similar obligations or (c) otherwise to satisfy statutory or legal obligations; provided, that (1) in each such case such Liens were not incurred or made in connection with the incurrence or maintenance of Indebtedness, the borrowing of money or the obtaining of advances or credit, and (2) in the case of any such Liens of the type described in the preceding clause (b), such Liens do not, in the aggregate, materially detract from the value of the Borrower’s and its subsidiaries’ properties and assets taken as a whole or materially impair the use of the assets encumbered by such Lien in the operation of the business of the Borrower or such Subsidiary;

(iv)    (a) attachment or judgment Liens that do not secure, in the aggregate, obligations in excess of $1,000,000 at any time, and (b) any other attachment or judgment Lien, provided that, within 30 days after the entry thereof, such Lien is discharged or execution thereof stayed pending appeal, and, if stayed, such Lien is discharged within 30 days after the expiration of any such stay;

(v)    easements, rights-of-way, restrictions and other similar charges or encumbrances, in each case incidental to, and not interfering with, the ordinary conduct of the business of the Borrower or any of its Subsidiaries, provided that such Liens do not, in the aggregate, materially detract from the value of the property or assets so encumbered or materially impair the use thereof in the operation of the business of the Borrower or such Subsidiary;

(vi)    Liens on property or assets of a Subsidiary to secure obligations of such Subsidiary to the Borrower or any Wholly Owned Subsidiary; and

Exhibit 10(a)

(vii)    Liens other those described in clauses (i) - (vi) above that secure Priority Debt; provided that (a) Priority Debt shall at no time exceed 10% of Tangible Net Worth; (b) in no event shall the Borrower or any subsidiary permit any Lien to exist at any time on any of their respective inventory or receivables, (c) no Default or Event of Default shall exist and be continuing or shall result therefrom and (d) the Borrower will not, and will not permit any subsidiary to, grant Liens on its respective properties to secure obligations under the LT Debt Agreement or the Long Term Debt.

For purposes of this Section 6.05, the following terms are defined as follows:

“Capital Lease” means, at any time, a lease with respect to which the lessee is required concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with GAAP.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.

“GAAP” means generally accepted accounting principles as in effect from time to time in the United States of America.

“Governmental Authority” means 

(a) the government of (i) the United States of America or any state or other political subdivision thereof, or (ii) any other jurisdiction in which the Borrower or any Subsidiary conducts all or any part of its business, or which asserts jurisdiction over any properties of the Borrower or any Subsidiary, or

(b) any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government.

“Guaranty” means, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any indebtedness, dividend or other obligation of any other Person in any manner, whether directly or indirectly, including (without limitation) obligations incurred through an agreement, contingent or otherwise, by such Person:

(a)    to purchase such indebtedness or obligation or any property constituting security therefor;

(b)    to advance or supply funds (i) for the purchase or payment of such indebtedness or obligation, or (ii) to maintain any working capital or other balance sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase or payment of such indebtedness or obligation;

Exhibit 10(a)

(c)    to lease properties or to purchase properties or services primarily for the purpose of assuring the owner of such indebtedness or obligation of the ability of any other Person to make payment of the indebtedness or obligation; or

(d)    otherwise to assure the owner of such indebtedness or obligation against loss in respect thereof.

In any computation of the indebtedness or other liabilities of the obligor under any Guaranty, the indebtedness or other obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor.

“Indebtedness” with respect to any Person means, at any time, without duplication,

(a)    its liabilities for borrowed money and its redemption obligations in respect of mandatorily redeemable Preferred Stock;

(b)    its liabilities for the deferred purchase price of property acquired by such Person (excluding accounts payable arising in the ordinary course of business but including all liabilities created or arising under any conditional sale or other title retention agreement with respect to any such property);

(c)    (i) all liabilities appearing on its balance sheet in accordance with GAAP in respect of Capital Leases and (ii) all liabilities which would appear on its balance sheet in accordance with GAAP in respect of Synthetic Leases assuming such Synthetic Leases were accounted for as Capital Leases;

(d)    all liabilities for borrowed money secured by any Lien with respect to any property owned by such Person (whether or not it has assumed or otherwise become liable for such liabilities);

(e)    all its liabilities in respect of letters of credit or instruments serving a similar function issued or accepted for its account by banks and other financial institutions (whether or not representing obligations for borrowed money);

(f)    the aggregate Swap Termination Value of all Swap Contracts of such Person; and

(g)    any Guaranty of such Person with respect to liabilities of a type described in any of clauses (a) through (f) hereof.

Indebtedness of any Person shall include all obligations of such Person of the character described in clauses (a) through (g) to the extent such Person remains legally liable in respect thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP.

“Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title of any 

Exhibit 10(a)

vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement or Capital Lease, upon or with respect to any property or asset of such Person (including in the case of stock, stockholder agreements, voting trust agreements and all similar arrangements).

“Minority Interests” means any shares of capital stock of a Subsidiary (other than directors’ qualifying shares as required by law) that are not owned by the Borrower or a Wholly Owned Subsidiary.

“Net Worth” means, as at any time of determination thereof, the consolidated stockholders’ equity of the Borrower and its Subsidiaries.

“Person” means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, business entity or Governmental Authority.

“Preferred Stock” means any class of capital stock of a Person that is preferred over any other class of capital stock (or similar equity interests) of such Person as to the payment of dividends or the payment of any amount upon liquidation or dissolution of such Person.

“Priority Debt” means, without duplication and as at any time of determination thereof, the sum of the following items:  (i) Indebtedness or other obligations of the Borrower secured by Liens (other than Liens described in clauses (i) through (vi) of Section 6.05); (ii) Indebtedness of any Subsidiary owing to any Person other than the Borrower or a Wholly Owned Subsidiary; and (iii) Preferred Stock of any Subsidiary held by any Person other than the Borrower or a Wholly Owned Subsidiary.

“Subsidiary” means, as to any Person, any other Person in which such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions) of such second Person, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries (unless such partnership can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries).  Unless the context otherwise clearly requires, any reference to a “Subsidiary” is a reference to a Subsidiary of the Borrower.

"Swap Contract” means (a) any and all interest rate swap transactions, basis swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward foreign exchange transactions, cap transactions, floor transactions, currency options, spot contracts or any other similar transactions or any of the foregoing (including, but without limitation, any options to enter into any of the foregoing), and (b) any and all transactions 

Exhibit 10(a)

of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc. or any International Foreign Exchange Master Agreement.

“Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amounts(s) determined as the mark-to-market values(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts.

“Synthetic Lease” means, at any time, any lease (including leases that may be terminated by the lessee at any time) of any property (a) that is accounted for as an operating lease under GAAP and (b) in respect of which the lessee retains or obtains ownership of the property so leased for U.S. federal income tax purposes, other than any such lease under which such Person is the lessor.

“Tangible Net Worth” means, as at any time of determination thereof, Net Worth less, without duplication, (i) the book value of all intangible items, including, without limitation, goodwill, mineral rights, licenses, organizational expense, unamortized debt discount and expense carried as an asset and any write-up in the book value of assets, (ii) any net gains or losses attributed to cumulative translation adjustments and (iii) Minority Interests.  For the avoidance of doubt, any assets of the Borrower and its Subsidiaries classified as regulatory assets in accordance with GAAP or included in rate base for rate recovery purposes will not be considered intangible.

“Wholly-Owned Subsidiary” means, at any time, any Subsidiary one hundred percent of all of the equity interests (except a de minimus number of directors’ qualifying shares) and voting interests of which are owned by any one or more of the Borrower and the Borrower’s other Wholly-Owned Subsidiaries at such time, and which has outstanding no options, warrants, rights or other securities entitling the holder thereof (other than the Borrower or a Wholly Owned Subsidiary) to acquire shares of capital stock or other equity interests of such Subsidiary.

(e)    Section 3.08 (Reporting Requirements) of the Loan Agreement is hereby amended by deleting in its entirety the sub-section titled “Notice of Default” and replacing such section with the following:
Notice of Default:  Promptly upon discovery or knowledge thereof, notice of the existence of any event of default under this Agreement or any other Loan Document or under the LT Debt Agreement or any other documents executed in connection with the Long Term Debt.

(f)    Section 7.14 (Fees), as amended per the terms of the Modification Agreement dated August 12, 2005, shall remain in effect as follows:

Exhibit 10(a)

Fees.  Payment quarterly of an unused availability fee equal to one eighth of one percent (0.0125%) of unused availability of the Line of Credit.  Unused availability is calculated by subtracting the average outstanding principal balance for the previous ninety (90) days from the Committed Line Amount.  In addition, Borrower shall pay all attorneys’ and related legal fees and other costs, if any, incurred by Bank in connection with the making, documenting and closing of the Line.

ARTICLE II.  REPRESENTATIONS AND WARRANTIES

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

(a)    The representations and warranties made by the Borrower in the Loan Agreement and the other Loan Documents are true and correct on and as of the date hereof as though made on the date hereof.

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

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

(d)    When duly executed and delivered by Borrower, this Amendment shall constitute its legal, valid and binding obligation, enforceable against it in accordance with its terms, and the Borrower hereby ratifies and affirms the Loan Agreement, as amended hereby, and the other Loan Documents.

ARTICLE III:  CONDITIONS PRECEDENT

3.1    This Amendment shall become effective as of the date on which Bank first shall have received in a form and substance satisfactory to Bank and its counsel the following: 

(a)    Counterparts of this Amendment executed by each of the parties hereto.

(b)    Copies, certified by the Secretary or Assistant Secretary of Borrower, of all corporate action taken by Borrower’s board of directors to authorize the execution, delivery, and performance of this Amendment.

(c)    Bank shall have received such other documents, agreements and instruments as Bank may reasonably request.

ARTICLE IV:  MISCELLANEOUS

4.1    Governing Law.  The validity, construction and performance of this Amendment will in all respects be governed by the laws of the Commonwealth of Kentucky.

Exhibit 10(a)

4.2    Successors and Assigns. All the terms and provisions of this Amendment shall inure to the benefit of the parties hereto and their respective heirs, personal representatives, executors, administrators, successors and permitted assigns.

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

4.4    Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which shall together constitute one and the same instrument.

4.5    No Novation.  All the parties hereto agree that the execution of this Amendment or any documents as contemplated by this Amendment or the consummation of any transaction contemplated by this Amendment shall constitute a modification of the Loan Agreement and shall not be construed as a novation.
                
[SIGNATURES ON FOLLOWING PAGE]
    

Exhibit 10(a)

IN WITNESS WHEREOF, the undersigned parties have executed this Amendment as of the date set forth above.  

Borrower:

DELTA NATURAL GAS COMPANY, INC.

/s/Ryan Hamilton                                                   By    /s/John B. Brown                                           _____           
Witness                                                                          Name/Title: /s/John B. Brown
         Chief Financial Officer, Treasurer & Secretary

Bank:

BRANCH BANKING AND TRUST COMPANY

/s/Brian Blomeke_______                                             By   /s/Ryan T. Hamilton                                        _                           
Witness                                                                           Name/Title: Ryan T. Hamilton
 Senior Vice President

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