On December 29, 2014, Chesapeake Utilities Corporation entered into a Credit Agreement (the Credit Agreement) with Citizens Bank, National Association (the Bank). Under the terms of the Credit Agreement, the company issued an unsecured Revolving Line of Credit Promissory Note (the Promissory Note), pursuant to which the company may borrow up to $35 million. The promissory note has a termination date (the Termination Date) of December 22, 2015.

The company may borrow and repay the promissory note in multiple increments and intervals not to exceed the $35 million. Borrowings under this Credit Agreement will be used for general corporate and working capital purposes. Borrowings under this credit facility will bear interest at a rate equal to LIBOR plus 85 basis points or at the Bank's prime rate (as defined under the Credit Agreement), as selected by the company in its discretion.

All accrued but unpaid interest due under the promissory note is payable on the termination date. With the addition of the $35 million new credit facility and a $10 million increase in another existing credit facility, the company now has an aggregate of $210 million of credit available under unsecured short-term credit facilities for general corporate and working capital purposes. The short-term credit facilities bear interest at LIBOR plus applicable margins of 80 basis points to 125 basis points.