Exhibit 10.3

 

FIRST AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”) made as of the 23rd day of July, 2004, among AVISTA ENERGY, INC., a
Washington corporation, and AVISTA ENERGY CANADA LTD., a corporation of the
province of Alberta, Canada (each a “Borrower” and collectively, the
“Borrowers”), BNP PARIBAS (“BNP Paribas”), individually and as administrative
agent, collateral agent and an issuing bank, FORTIS CAPITAL CORP. (“Fortis”),
individually and as documentation agent and an issuing bank, and NATEXIS BANQUES
POPULAIRES (“Natexis”, and together with BNP Paribas and Fortis, the “Banks”).

 

WHEREAS, the Borrowers and the Banks entered into a Third Amended and Restated
Credit Agreement effective as of July 25, 2003 (the “Credit Agreement”);

 

WHEREAS, the Borrowers have requested that the Banks extend the Expiration Date
contained in the Credit Agreement, and the Banks are willing to do so subject to
the terms and conditions set forth herein;

 

NOW, THEREFORE, in consideration of the premises herein contained and other good
and valuable consideration, the sufficiency of which is hereby acknowledged, the
parties hereto, intending to be legally bound, agree as follows:

 

1. Defined Terms. All capitalized terms used but not otherwise defined in this
Amendment shall have the meaning ascribed to them in the Credit Agreement.
Unless otherwise specified, all section references herein refer to sections of
the Credit Agreement.

 

2. Amendments to Credit Agreement. The Credit Agreement is hereby amended as
follows:

 

2.1 Section 1.01 – Definition of “Expiration Date”. Clause (a) of the definition
of “Expiration Date” is amended to read as follows:

 

“(a) July 22, 2005; or”

 

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2.2 Section 1.01 – Definition of “Maturity Date”. The definition of “Maturity
Date” is amended and restated in its entirety to read as follows:

 

“‘Maturity Date’ means July 23, 2007.”

 

2.3 Schedules. Schedules 6.05, 8.01 and 8.06 to the Credit Agreement are deleted
and replaced with Schedules 6.05, 8.01, and 8.06 attached hereto.

 

3. Effectiveness of Amendment. This Amendment shall be effective upon receipt by
the Banks of:

 

(a) An executed copy of this Amendment;

 

(b) A Confirmation of Guaranty, in the form attached hereto, signed by each of
the Guarantors;

 

(c) Payment of all fees owing to the Banks, pursuant to the fee letters from
Borrowers to each of the Banks executed in connection herewith;

 

(d) Resolutions from each of the Borrowers and each of the Guarantors, in form
and substance satisfactory to the Banks, authorizing the execution and delivery
of and performance under this Amendment and any documents or agreements entered
into in connection therewith; and

 

(e) Such other documents and instruments as any Bank may reasonably request to
reflect the changes set forth in this Amendment.

 

4. Ratifications, Representations and Warranties.

 

(a) The terms and provisions set forth in this Amendment shall modify and
supersede all inconsistent terms and provisions set forth in the Credit
Agreement and, except as expressly modified and superseded by this Amendment,
the terms and provisions of the Credit Agreement are ratified and confirmed and
shall continue in full force and effect. The Borrowers and the Banks agree that
the Credit Agreement and the Loan Documents, as amended hereby, shall continue
to be legal, valid, binding and enforceable in accordance with their respective
terms.

 

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(b) To induce the Banks to enter into this Amendment, each Borrower ratifies and
confirms each representation and warranty set forth in the Credit Agreement as
if such representations and warranties were made on the even date herewith, and
further represents and warrants (i) that there has occurred since the date of
the last financial statements delivered to the Banks no event or circumstance
that has resulted or could reasonably be expected to result in a Material
Adverse Effect, (ii) that no Event of Default exists on the date hereof, and
(iii) that each Borrower is fully authorized to enter into this Amendment.

 

5. Benefits. This Amendment shall be binding upon and inure to the benefit of
each Bank and each Borrower, and their respective successors and assigns;
provided, however, that neither Borrower may, without the prior written consent
of the Banks, assign any rights, powers, duties or obligations under this
Amendment, the Credit Agreement, the Security Agreements or any of the other
Loan Documents.

 

6. Construction. This Amendment shall be governed by and construed in accordance
with the laws (without reference to principles of conflicts of laws) of the
State of New York, provided that the Banks shall retain all rights arising under
federal law.

 

7. Invalid Provisions. If any provision of this Amendment is held to be illegal,
invalid or unenforceable under present or future laws, such provision shall be
fully severable and the remaining provisions of this Amendment shall remain in
full force and effect and shall not be affected by the illegal, invalid or
unenforceable provision or by its severance.

 

8. Entire Agreement. The Credit Agreement, as amended by this Amendment, along
with the other Loan Documents, contain the entire agreement among the parties
regarding the subject matter hereof and supersede all prior written and oral
agreements and understandings among the parties hereto regarding same.

 

9. Reference to Credit Agreement. The Credit Agreement and any and all other
agreements, documents or instruments now or hereafter executed and delivered
pursuant to the terms hereof or pursuant to the terms of the Credit Agreement,
as amended hereby, are hereby amended so that any reference in the

 

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Credit Agreement or the other Loan Documents to the Credit Agreement shall mean
a reference to the Credit Agreement, as amended hereby.

 

10. Counterparts. This Amendment may be separately executed in any number of
counterparts, each of which shall be an original, but all of which, taken
together, shall be deemed to constitute one and the same agreement.

 

[remainder of page intentionally left blank; signature page follows]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered by their proper and duly authorized officers as of the
day and year first above written.

 

AVISTA ENERGY, INC.,

a Washington corporation

By:   /s/ Dennis P. Vermillion Name:   Dennis P. Vermillion Title:   President &
C.O.O.

AVISTA ENERGY CANADA LTD.,

a corporation of the province of

Alberta, Canada

By:   /s/ Dennis P. Vermillion Name:   Dennis P. Vermillion Title:   President &
C.O.O.

Borrowers’ Address:

201 W. North River Drive

Suite 610

Spokane, Washington 99201

Attention:   Dennis Vermillion Telephone:     (509) 688-6000 Facsimile:   (509)
688-6154 E-mail: dennis.vermillion@avistaenergy.com

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BNP PARIBAS,

as Administrative Agent, Collateral Agent,
an Issuing Bank, and a Bank

By:   /s/ Jordan Nenoff Name:   Jordan Nenoff Title:   Vice President       By:
  /s/ A-C. Mathiot Name:   A-C Mathiot Title:   Managing Director

787 Seventh Avenue

New York, NY 10019

Attention:   Anne-Catherine Mathiot Phone:   212-841-2575 Fax:   212-841-2536
E-mail: anne-catherine.mathiot@americas.bnpparibas.com

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FORTIS CAPITAL CORP.,

as Documentation Agent, an Issuing Bank,
and a Bank

By:   /s/ Irene C. Rummel Name:   Irene C. Rummel Title:   Senior Vice President
      By:   /s/ Cristina E. Roberts Name:   Cristina E. Roberts Title:  
Managing Director Fortis Capital Corp.

15455 North Central Parkway

Suite 1400

Addison, TX 7501

Attention:   Irene Rummel Phone:   214-953-9313 Fax:   214-969-9332 E-mail:
irene.rummel@fortiscapitalusa.com

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NATEXIS BANQUES POPULAIRES

as a Bank

By:   /s/ David Pershad Name:   David Pershad Title:   Vice President   By:  
/s/ Guillaume de Parscau Name:   Guillaume de Parscau Title:   First Vice
President & Manager Commodities Finance Group

1251 Avenue of the Americas

34th Floor

New York, NY 10020

Attention:   David Pershad Phone:   212-872-5015 Fax:   212-354-9095 E-mail:
david.pershad@nyc.nxbp.com