Document:

EX-10.1

 

Exhibit 10.1

COMMUNITY BANK, N.A.

LINE OF CREDIT AGREEMENT

March 19, 2008

Mr. Michael German, President

Corning Natural Gas Corp.

330 West William Street

Corning, NY 14830

Dear Mr. German:

This letter sets forth the governing terms of our agreement between Community Bank, N.A. (the
“Bank”) and Corning Natural Gas Corp. (the “Borrower”) concerning a revolving line of credit (the
“Revolving Line”) in the aggregate maximum amount outstanding at any one time of $7,000,000.00,
subject to the terms of this letter. This Revolving Line was committed by the provisions of a
commitment letter from the Bank to the Borrower dated March 11, 2008 (the “Commitment Letter”),
the contents of which are herein incorporated by reference.

General Terms of Revolving Line

     Proceeds of the Revolving Line shall be used for Borrower’s working capital purposes
needs. So long as no Event of Default exists under this Agreement or under the terms of any
other agreement or loan document between the Borrower or any Guarantor hereunder and the Bank,
the Borrower may borrow, repay, and reborrow under the Revolving Line from time to time so long
as the aggregate principal amount outstanding at any one time does
not exceed $7,000,000.00 and the Bank has not demanded payment in full.

     The Borrower shall execute a Demand Grid Note (the “Revolving Line Note”) evidencing
obligations related to the Revolving Line in a form acceptable to the Bank.

     All outstanding amounts under the Revolving Line shall bear interest until paid in full. The
rate of interest payable hereunder shall be a fluctuating rate per annum (the “Stated Rate”) equal
to the 30-day Libor Rate plus 1.35%, with changes to occur automatically with changes in the 30-day
Libor Rate from time to time in effect. Each change in the Stated Rate shall take effect
simultaneously with the corresponding change in such Libor Rate. The “30-day Libor Rate “ shall
mean the 30-day Libor Rate as published by the Wall Street Journal from time to time during
the period that any portion of the principal hereunder remains unpaid. Interest shall be calculated
based on actual days elapsed divided by a year of 360 days. Changes in the rate of interest
applicable to the Revolving Line Note shall become effective automatically and without notice at
the time of changes in the 30-day Libor Rate. The Bank, shall, however, provide the Borrower with
notice of changes which have occurred in the rate applicable to the Revolving Line during the
preceding billing period in its regular billing statements.

     Unless sooner demanded, payments of all accrued interest under the Revolving Line are due and
payable on the first day of each month. All remaining outstanding principal and accrued interest
under the Revolving Line shall be due and payable in full on the earlier of (i) February

 

 

28, 2009, or (ii) the date of a demand by the Bank, or (iii) the date of an Event of Default
(collectively, the “Expiration Date”) unless the Revolving Line is extended by the Bank in its
sole discretion. The Revolving Line will terminate on, and the Bank shall have no further
obligation to make credit available after, the Expiration Date.

     Any amount due not fully paid within ten (10) days after the date due shall be subject to a
late payment charge of the greater of $25.00 or five percent (5%) of the total payment due.

Fees and Expenses

     The Borrower shall pay any fees, expenses and disbursements, including reasonable legal fees,
of the Bank related to the Revolving Line and the transactions contemplated by this letter. Such
payments shall be due from time to time upon the Bank giving the Borrower notice of the amount of
such expenses.

     At the request of the Bank, the Borrower shall promptly pay any expenses, reasonable
attorney’s fees, costs, or disbursements in connection with collection of any of the obligations
related to the Revolving Line or enforcement of any of the Bank’s rights hereunder or under any
note, guaranty, or other agreement related hereto. This obligation shall survive the payment of the
Revolving Line Note. The Bank may apply any payments of any nature received by it first to the
payment of obligations under this paragraph, notwithstanding any conflicting provision contained in
this letter or any other agreement with the Borrower.

     Upon the occurrence of an Event of Default and acceleration by the Bank of the Revolving Line
Note such that it becomes immediately due and payable in full, the rate of interest on each of the
obligations related thereto shall be increased to a rate at all times equal to two percent (2%)
above the rate of interest which would be in effect absent such Event of Default, such increased
rate to remain in effect through and including payment in full of all of the Obligations, or
written waiver of such Event of Default by the Bank.

Collateral and Guarantees

     The Revolving Line obligation shall be secured by the following:

	 	•	 	Those financial assets of the Borrower now held by the Bank pursuant to a
“Collateral Assignment” dated November 28, 2005;
	 
	 	•	 	A security interest in accounts receivable, inventory and equipment arising under
a Security Agreement between the Borrower and the Bank dated August 4, 2005 and
spread to cover the credit line facility hereby renewed, accomplished by “Collateral
Security Spreader Agreement” dated November 28, 2005; and

     No Guaranty of the Revolving Line obligation is required to be furnished by the Borrower.

 

 

Affirmative Covenants

     So long as this agreement remains in effect or there exists any indebtedness owing to the
Bank by the Borrower hereunder, it is agreed that the Borrower shall:

     A. Keep proper books of account in a manner satisfactory to Bank. The Bank acknowledges that
the accounting system, procedures, and forms in use as of the date hereof are satisfactory;

     B. Permit, at Borrower’s expense, inspections and audits by Bank or by its agents of all
books, records and papers in the custody or control of the Borrower or of others relating to the
financial business condition of the Borrower, including the making of copies thereof and
abstracts therefrom, and inspection and appraisal of any of their assets, with reasonable notice
and during regular business hours;

     C. Deliver to the Bank the following financial information: (i) annual financial statement of
the Borrower audited by a Certified Public Accountant in accordance with standards established by
the American Institute of Certified Public Accountants within 90 days after the end of its fiscal
year; (ii) within 30 days following the close of each month, a monthly financial statement
prepared by the Borrower; and (iii) at all times when the outstanding principal balance owing on
the Revolving Line exceeds $4,000,000.00, a monthly report on or before the 15th day of
the month which reports the Borrower’s natural gas inventory volumes and the cost and market
values thereof.

     D. Promptly pay all taxes, assessments and other governmental charges due from the
Borrower, provided, however, that nothing herein contained shall be interpreted to require the
payment of any such tax so long as its validity is being contested in good faith.

     E. Promptly inform the Bank of the commencement of any material action, suit, proceeding or
investigation against the Borrower, or the making of any counterclaim against it in any action,
suit or proceeding, and of all liens against any property of either. An action, suit, proceeding,
investigation, or lien shall be deemed material when in the aggregate the face amount of all such
pending claims, reduced by the amounts (excluding deductibles and retained limit self-insurances)
of indemnity insurance coverages acknowledged by the insurers as applicable thereto, exceeds
$100,000.00.

     F. Borrower is to maintain a net worth of $7,000,000 as determined by reference to the audited
financial statements of the Borrower commencing with those for the fiscal year ending September 30,
2008.

     G. Borrower is to maintain a leverage ratio of less than four to one as determined by
reference to the audited financial statements of the Borrower commencing with those for the
fiscal year ending September 30, 2008.

Negative Covenants

     So long as this agreement remains in effect or there exists any indebtedness owing to the
Bank by the Borrower hereunder, it is agreed that the Borrower shall not:

     A. without the prior written consent of the Bank having first been obtained, create, incur,

 

 

assume or suffer to exist any security interest, mortgage, pledge, lien or other encumbrance upon
any of your accounts receivable and inventory, whether now owned or hereafter acquired, except in
our favor and except liens of taxes not in default or being contested in good faith; provided,
however, that if any proceeding before the United States Tax Court, Borrower is adjudged liable for
unpaid taxes and wish to appeal from such adjudication, it shall promptly take appropriate steps to
stay assessment of any lien of such taxes.

     B. sell, convey, lease or transfer any of its assets other than in the ordinary course of
business, or merge or consolidate with or into any other company or corporation;

     C. make or incur any liability to make any distributions until and while its actual
regulated capital structure has an equity to debt ratio of less than 30% equity to 70% debt, or
make any distributions which would reduce the equity percentage below 30%.

Events of Default

     All of obligations of the Bank hereunder to the Borrower may be immediately terminated and the
entire unpaid balance of all indebtedness hereunder owing to the Bank may be declared to be
immediately due and payable at the sole election of the Bank upon the happening of any one of the
following specific events of default:

     A. Nonpayment of any principal of or interest on any indebtedness created hereunder within
fifteen (15) days after its due date, or default by the Borrower in the performance of any of
other material terms or conditions of this agreement or of any other agreement of the Borrower
with the Bank, which default remains uncured fifteen (15) days after written notice thereof has
been furnished by the Bank to the Borrower;

     B. The adjudication of the Borrower as a bankrupt, or the making by the Borrower of any
general assignment for the benefit of creditors, or the institution by it of any type of insolvency
proceeding or of any proceeding for the liquidation or the winding-up of its affairs, or the
appointment of a receiver or trustee for the Borrower of its assets, or the approval as properly
filed of a petition for the reorganization of it under the Bankruptcy Act of otherwise, or its
filing of any petition for an arrangement under Chapter XI of the Bankruptcy Act or under any
similar statute;

     C. If any certificate, statement, representation, warranty or audit furnished by the Borrower
or on its behalf in connection with this arrangement (including those contained herein) or as an
inducement to the Bank to enter into this agreement shall prove to have been false in any material
respect at the time as of which the facts therein set forth were certified or stated, or to have
omitted any substantial contingent or unliquidated liability or claim against the Borrower, or if
on the date of the execution of this agreement, there shall have been any materially adverse change
in any of the facts disclosed by any such certificate, statement, representation, warranty or
audit, which change shall not have been disclosed by the Borrower to the Bank at or prior to the
time of such execution;

     D. Nonpayment by the Borrower of any other indebtedness to the Bank within fifteen (15)
days after the date when due; and

     E. There occurs any substantial change in the ownership of the Borrower, by merger with
another entity or otherwise, or operating control of the business of the Borrower, without the
prior written consent of the Lender having first been obtained.

 

 

Miscellaneous Terms

     The Bank shall have a right of set-off, in the full amount of all of Borrower’s obligations
to the Bank, against any deposits, assets held by, or other amounts owed by the Bank to or held
by the Bank for, the Borrower as well as a lien on any and all property of the Borrower which is
or may be in the Bank’s possession.

     No delay or omission by the Bank in exercising any right or remedy hereunder or with respect
to any indebtedness created hereunder shall operate as a waiver thereof or of any of other right
or remedy, and no single or partial exercise thereof shall preclude any other or further exercise
thereof of any other right or remedy.

     The parties hereto expressly waive all rights to trial by jury on any cause of action
directly or indirectly involving the terms or conditions of this Agreement, the Revolving Line
Note, or any matters whatsoever arising out of or in connection with this Agreement, the Revolving
Line Note, or any document executed or delivered in connection with this Agreement or the
Revolving Line Note. The foregoing waiver shall survive the termination or expiration of this
Agreement.

     This Agreement and the documents referred to herein embody the entire agreement and
understanding among the parties and supersede all prior agreements and understandings relating to
the subject matter hereof. This Agreement shall not be changed or amended without the written
agreement of all parties hereto.

     All
the terms and provisions of this Agreement shall inure to the benefit of and be binding upon and be enforceable by the parties and their successors and assigns and shall inure to
the benefit of and be enforceable by any holder of notes executed hereunder. No assignment of the
rights of the Borrower under this Agreement may be made without the prior written consent of the
Bank.

     This letter and the notes and agreements related hereto, together with all of the rights and
obligations of the parties hereto, shall be construed, governed and enforced in accordance with
the laws of the State of New York. It represents the joint agreement of the parties following
negotiation resulting in the issuance of the Commitment Letter, and accordingly shall not be
strictly construed against any particular party.

     Please sign the enclosed duplicate original of this letter to evidence your agreement to the
terms contained herein. We appreciate the opportunity to do business with you.

[signatures on next page]

 

 

	 	 	 
	COMMUNITY BANK, N.A.
	 	 
	 
	 	 
	/s/ Thomas F. Beers
 

by: Thomas F. Beers, Vice President

	 	 
	 
	 	 
	CORNING NATURAL GAS CORP.
	 	 
	 
	 	 
	/s/ Michael German
 

by: Michael German, PresidentEX-10.2

 

Exhibit 10.2

	 	 	 	 	 
	COMMERCIAL LINE OF CREDIT

	 	 	 	Community Bank N.A.
	AGREEMENT AND NOTE

	 	 	 	331 West Pulteney Street
	 

	 	 	 	Corning, New York 14830

	 	 	 	 	 	 	 
	LOAN NUMBER	 	AGREEMENT DATE	 	LOAN TERM	 	LINE OF CREDIT LIMIT
	C-08-03-048629
	 	March 19, 2008
	 	On Demand
	 	$7,000,000.00

LOAN PURPOSE: Working Capital

BORROWER INFORMATION

Coming
Natural Gas Corporation

330
William Street, P. O. 58 

Coming, NY 14830-0058

LINE OF CREDIT AGREEMENT AND NOTE. This Commercial Line of Credit Agreement and Note will be
referred to in this document as the “Agreement”.

LENDER. “Lender” means Community Bank N.A. whose address is 331 West Pulteney Street, Coming, New
York 14830, its successors and assigns.

BORROWER. “Borrower” means each person or legal entity who signs this Agreement.

PROMISE TO PAY. For value received, receipt of which is hereby acknowledged, the Borrower promises
to pay, on demand by Lender, the principal amount of Seven Million and 00/100 Dollars
($7,000,000.00) or such lesser amount as shall have been advanced by Lender, from time to time, to
or on behalf of Borrower under this Agreement, and all interest and any other charges, including
service charges, to the order of Lender at its office at the address noted above or at such other
place as Lender may designate in writing. The Borrower will make all payments in lawful money of
the United States of America.

PAYMENT SCHEDULE. This Agreement will be paid according to the following required payment schedule:
Beginning on April 1, 2008, monthly payments of accrued and unpaid interest. All payments received
by the Lender from the Borrower for application to the Line of Credit may be applied to the
Borrower’s obligations under the Line of Credit in such order as determined by the Lender.

ADVANCES BY LENDER. Advances of principal, repayment, and readvances may be made under this
Agreement from time to time, but Lender, in its sole discretion and subject to provisions related
to obligatory and discretionary advances, may refuse to make advances or readvances hereunder
during any period(s) this Agreement is in default. All advances made will be charged to a loan
account in Borrower’s name on Lender’s books, and the Lender shall debit such account for the
amount of each advance made to, and credit to such account the amount of each repayment made by
Borrower. If the Lender furnishes the Borrower with a statement of Borrower’s loan account, such
statement shall be deemed to be correct, accepted by, and binding upon Borrower, unless Lender
receives a written statement exception from Borrower within 10 days after such statement has been
furnished.

INTEREST RATE AND SCHEDULED PAYMENT CHANGES. The initial variable interest rate on this Agreement
will be 4.460% per annum. This interest rate may change on April 1, 2008, and on the same day of
each month thereafter. Each date on which the interest rate may change is called the “Change Date.”
Beginning with the first Change Date, Lender will calculate the new interest rate based on One
Month Libor Rate in effect on the Change Date (the “Index”) plus 1.350 percentage points (the
“Margin”). If the Index is not available at that time, Lender will choose a new Index which is
based on comparable information. The Index is used solely to establish a base from which the actual
rate of interest payable under this Agreement will be calculated, and is not a reference to any
actual rate of interest charged by any lender to any particular borrower.

Nothing contained herein shall be construed as to require the Borrower to pay interest at a greater
rate than the maximum allowed by law. If, however, from any circumstances, Borrower pays interest
at a greater rate than the maximum allowed by law, the obligation to be fulfilled will be reduced
to an amount computed at the highest rate of interest permissible under applicable law and if, for
any reason whatsoever, Lender ever receives interest in an amount which would be deemed unlawful
under applicable law, such interest shall be automatically applied to amounts owed, in Lender’s
sole discretion, or as otherwise allowed by applicable law. An increase in the interest rates will
result in a higher payment amount. Interest on this Agreement is calculated on a 365/360 day basis.
The unpaid balance of this loan shall, after an Event of Default exists under this Agreement or any
other agreement related to the loan, be subject to a Default Rate of interest equal to 2.000
percentage points over the applicable variable interest rate in effect from time to time,
calculated as described above in the section “Interest Rate.”

LATE PAYMENT CHARGE. If any required payment is more than 10 days late, then at Lender’s option,
Lender will assess a late payment charge of $25.00 or 5% of the amount past due, whichever is
greater.

LINE OF CREDIT TERMS. This is a Discretionary Agreement. The Borrower and Lender agree that the
Borrower may request an advance of all or part of the Line of Credit Limit. The Lender may, at its
sole discretion, refuse to make advances under this Agreement.

Advances. Borrower and Lender agree that Borrower may borrow up to the maximum amount of
principal more than one time. Additional principal advances thereafter will be made to the
Borrower subject to the following conditions:

			
	 	 	 
	© 2004-2006 Copyright Compliance Systems, Inc. 3681-5838 — 2006.10.191
	 	www.compliancesystems.com
	Commercial Line of Credit Agreement and Note — DL4006
	 	800-968-8522 — Fax 616-956-1868

Page 1 of 3

 

	 	•	 	Advances of principal, repayment, and readvances may be made under this Agreement from
time to time but Lender, in its sole discretion, may refuse to make advances or
readvances hereunder during any period(s) this Agreement is in default.
	 
	 	•	 	Advances under this Agreement may be requested orally or in writing by the Borrower
or by an authorized person.
	 
	 	•	 	The total of any advance requested and unpaid principal cannot exceed Seven Million
and 00/100 Dollars ($7,000,000.00).
	 
	 	•	 	All advances made will be charged to a loan account in Borrower’s name on Lender’s
books, and the Lender shall debit such account the amount of each advance made to, and
credit to such account the amount of each repayment made by Borrower. Lender shall
provide to Borrower periodic statements of Borrower’s loan account, which shall be
deemed to be correct, accepted by, and binding upon Borrower unless Lender receives a
written statement of exception from Borrower within 10 days after such statement is
furnished.

Suspension and Termination. Advances under this Agreement will be available until the Line of
Credit is cancelled by Borrower, or the date the Line of Credit is cancelled by Lender due to
an occurence of default, whichever is earlier.

Loan Type Conversion. Provided no default or event of default shall have occurred, the
Borrower may, at its option, apply for conversion of this Agreement into a Term loan 30 days
prior to the Maturity Date. However, the Lender shall have no obligation to approve the
Borrower’s application.

SECURITY TO NOTE. Security (the “Collateral”) for this Agreement is granted pursuant to the
following security document(s):

	 	•	 	Security Agreement — dated August 4, 2005.
	 
	 	•	 	Security Agreement -dated November 28, 2005.

RIGHT OF SET OFF. To the extent permitted by law, Borrower agrees that Lender has the right to set
off any amount due and payable under this Agreement, whether matured or unmatured, against any
amount owing by Lender to Borrower including any or all of Borrower’s accounts with Lender. This
shall include all accounts Borrower holds jointly with someone else and all accounts Borrower may
open in the future. Such right of setoff may be exercised by Lender against Borrower or against any
assignee for the benefit of creditors, receiver, or execution, judgment or attachment creditor of
Borrower, or against anyone else claiming through or against Borrower of such assignee for the
benefit of creditors, receiver, or execution, judgment or attachment creditor, notwithstanding the
fact that such right of setoff has not been exercised by Lender prior to the making, filing or
issuance or service upon Lender of, or of notice of, assignment for the benefit of creditors,
appointment or application for the appointment of a receiver, or issuance of execution, subpoena or
order or warrant.

PAYABLE ON DEMAND. This is a demand note. Payment is due upon Lender’s demand.

DEFAULT. Upon the occurrence of any one of the following events (each, an “Event of Default” or
“default” or “event of default”), Lender’s obligations, if any, to make any advances will, at
Lender’s option, immediately terminate and Lender, at its option, may declare all indebtedness of
Borrower to Lender under this Agreement to be immediately due and payable without further notice of
any kind notwithstanding anything to the contrary in this Agreement or any other agreement: (a)
Borrower’s failure to make any payment on time or in the amount due; (b) any default by Borrower
under the terms of this Agreement or any other agreement, security agreement executed in connection
with this Agreement (individually, a “Loan Document” and collectively, the “Loan Documents”); (c)
any default by Borrower under the terms of any other loan agreement, security agreement, mortgage
or other document in favor of Lender,; (d) the death, dissolution, or termination of existence of
Borrower or any guarantor; (e) Borrower is generally not paying Borrower’s debts as such debts
become due; (f) the commencement of any proceeding under bankruptcy or insolvency laws by or
against Borrower or any guarantor or the appointment of a receiver; (g) any default under the terms
of any other indebtedness of Borrower to any other creditor; (h) any writ of attachment,
garnishment, execution, tax lien or similar instrument is issued against any collateral securing
the loan, if any, or any of Borrower’s property or any judgment is entered against Borrower or any
guarantor; (i) any part of Borrower’s business is sold to or merged with any other business,
individual, or entity; (j) any representation or warranty made by Borrower to Lender in any of the
Loan Documents or any financial statement delivered to Lender proves to have been false in any
material respect as of the time when made or given; (k) if any guarantor, or any other party to any
agreement or instrument with or in favor of Lender entered into or delivered in connection with the
Loan terminates, attempts to terminate or defaults under any such agreement or instrument; (1)
Lender has deemed itself insecure or there has been a material adverse change of condition of the
financial prospects of Borrower or any collateral securing the obligations owing to Lender by
Borrower.

OTHER APPLICABLE AGREEMENTS. If this Agreement is secured by a security agreement, mortgage, deed
of trust, trust deed, security deed or loan agreement of even or previous date, it is subject to
all the terms thereof.

GENERAL WAIVERS. To the extent permitted by law, the Borrower severally waives any required notice
of presentment, demand, acceleration, intent to accelerate, protest and any other notice and
defense due to extensions of time or other indulgence by Lender or to any substitution or release
of collateral. No failure or delay on the part of Lender, and no course of dealing between Borrower
and Lender, shall operate as a waiver of such power or right, nor shall any single or partial
exercise of any power or right preclude other or further exercise thereof or the exercise of any
other power or right.

JOINT AND SEVERAL LIABILITY. If permitted by law, each Borrower executing this Agreement is jointly
and severally bound.

SEVERABILITY. If a court of competent jurisdiction determines any term or provision of this
Agreement is invalid or prohibited by applicable law, that term or provision will be ineffective to
the extent required. Any term or provision that has been determined to be invalid or prohibited
will be severed from the rest of this Agreement without invalidating the remainder of either the
affected provision or this Agreement.

SURVIVAL. The rights and privileges of the Lender hereunder shall inure to the benefits of its
successors and assigns, and this Agreement shall be binding on all heirs, executors,
administrators, assigns and successors of Borrower.

			
	 	 	 
	© 2004-2006 Copyright Compliance Systems, Inc. 3681-5838 — 2006.10.191
	 	www.compliancesystems.com
	Commercial Line of Credit Agreement and Note — DL4006
	 	800-968-8522 — Fax 616-956-1868

Page 2 of 3

 

ASSIGNABILITY. Lender may assign, pledge or otherwise transfer this Agreement or any of its rights
and powers under this Agreement without notice, with all or any of the obligations owing to Lender
by Borrower, and in such event the assignee shall have the same rights as if originally named
herein in place of Lender. Borrower may not assign this Agreement or any benefit accruing to it
hereunder without the express written consent of the Lender.

ORAL AGREEMENTS DISCLAIMER. This Note represents the final agreement between the parties and may
not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the
parties. There are no unwritten oral agreements between the parties.

GOVERNING LAW. This Agreement is governed by the laws of the state of New York except to the extent
that federal law controls.

HEADING AND GENDER. The headings preceding text in this Agreement are for general convenience in
identifying subject matter, but have no limiting impact on the text which follows any particular
heading. All words used in this Agreement shall be construed to be of such gender or number as the
circumstances require.

ATTORNEYS’ FEES AND OTHER COSTS. If legal proceedings are instituted to enforce the terms of this
Agreement, Borrower agrees to pay all costs of the Lender in connection therewith, including
reasonable attorneys’ fees, to the extent permitted by law.

ADDITIONAL PROVISIONS. The Commitment Letter from Lender to Borrower dated March 11, 2008, and its
terms and conditions, together with the Line of Credit Agreement dated March 19, 2008, are
incorporated by reference and made a part hereof with the same force and effect as if it were set
forth herein. In the event that any of the provisions contained in the Commitment Letter or the
Line of Credit Agreement conflict in whole or in part with the provisions contained in this
Commercial Line of Credit Agreement and Note, the provisions contained in the Commitment Letter and
Line of Credit Agreement shall control.

WAIVER OF JURY TRIAL. All parties to this Agreement hereby waive, to the fullest extent permitted
by law, any right to trial by jury with respect to any dispute, whether in contract, tort, or
otherwise, arising out of, in connection with, related to, or incidental to the relationship
established between them in this Agreement or any other instrument, document, or agreement executed
or delivered in connection herewith or the transaction related hereto.

By signing this Agreement, Borrower acknowledges reading, understanding, and agreeing to all
its provisions and receipt thereof.

	 	 	 	 	 
	Corning Natural Gas Corporation
	 	 	 	 
	 
	 	 	 	 
	/s/ Michael German

	 	March 20, 2008	 	 
	 
	 	 
	
By: Michael German	 	 Date	 	 
	Its: CEO & President
	 	 	 	 

			
	 	 	 
	© 2004-2006 Copyright Compliance Systems, Inc. 3681-5838 — 2006.10.191
	 	www.compliancesystems.com
	Commercial Line of Credit Agreement and Note — DL4006

·
	 	800-968-8522 — Fax 616-956-1868

Page 3 of 3

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