Document:

Exhibit 10.1

                AMENDMENT TO DISTRIBUTOR AND LICENSE AGREEMENT
                             AND SUPPLY AGREEMENT

           This Amendment amends that certain Distributor and License
 Agreement, dated as of November 3, 2000, between Carrington Laboratories,
 Inc. ("Carrington") and Medline Industries, Inc. ("Medline") (the
 "Distributor Agreement") and that certain Supply Agreement, dated as of
 November 3, 2003, between Carrington and Medline (the "Supply Agreement").
 This Amendment is effective as of April 9, 2004.

           WHEREAS, the parties desire to extend the Term of the Distributor
 Agreement and the Supply Agreement and to make other amendments to such
 agreements as specified herein.

           NOW, THEREFORE, the parties agree as follows:

           1. Limited Amendment; Interpretation.  The Distributor Agreement
 and the Supply Agreement are not amended except as specified in this
 Amendment.  Capitalized terms in this Amendment shall have the same meanings
 as in the Distributor Agreement or the Supply Agreement, as the context may
 require.

           2. Extended Term.  Specifically amending Section 9 of the
 Distributor Agreement and Section 7 of the Supply Agreement, the Term of
 each such Agreement shall be extended from November 30, 2005 through and
 including November 30, 2008 (the "Extended Term").

           3. Base Royalty Payment.  Specifically amending Section 8 of
 the Distributor Agreement, in consideration of the Extended Term of the
 Distributor Agreement and the continued rights of Medline to distribute the
 Products and to use the Trademarks granted herein, Medline (a) shall pay
 Carrington the sum of $1,250,000 (the "Advance Payment") on the date hereof
 and (b) agrees to the Extended Term of the Supply Agreement.  In the event
 the Distributor Agreement is terminated between the effective date of this
 Amendment and November 30, 2005 (a) by Carrington, for any reason, or (b) by
 Medline pursuant to Section 10.1 thereof, then Carrington shall refund to
 Medline the entire $1,250,000 payment not later than 10 days after the
 effective date of termination.  After November 30, 2005, in the event that
 the Distributor Agreement is terminated by Medline pursuant to Section 10.1
 thereof, Carrington shall refund to Medline, not later than 10 days after
 the effective date of termination, the amount by which $1,250,000 exceeds
 the number obtained by multiplying $34,722.22 by the number of months from
 the commencement of the Extended Term to the effective date of such
 termination, rounded to the nearest whole month (the "Refund Amount").

           4. Security for Base Royalty Payment.  In addition to the security
 provided pursuant to the Trademark Security Agreement, dated as of November
 3, 2000, between Carrington and Medline, Carrington agrees to the following
 additional security for Carrington's  payment obligations regarding the
 Advance Payment and the Refund Amount, as stated in Section 3, above.  As
 of the effective date of this Amendment and in addition to all of the rights
 and remedies afforded under the Distributor Agreement and the Trademark
 Security Agreement, Carrington grants to Medline a exclusive license under
 Carrington's trade secret formulae, to make and have made the Products,
 provided that Medline shall not have access to such formulae and shall not
 exercise the foregoing manufacturing rights unless and until (a) Carrington
 files for or is petitioned into bankruptcy, insolvency, liquidation or
 dissolution of assets or fails generally to pay its debts and obligations in
 accordance with their terms, and (b) as a result thereof, Carrington ceases
 to sell Products to Medline or is unable to provide Products to Medline in
 accordance with the Distributor Agreement.  As such time as the foregoing
 right is exercised, the parties shall negotiate a commercially reasonably
 license fee or royalty for such license, and any disagreement on such fee
 or royalty payable to Carrington shall be resolved by binding arbitration
 conducted by the American Arbitration Association under its commercial
 arbitration rules in Chicago, Illinois with  the resolution thereof  to be
 retroactive. The Advance Payment or the Refund Amount, as the case may be,
 may be applied against the royalties first due under such license.

           5. Retail Sales.  For avoidance of doubt, the parties acknowledge
 that nothing in the Distributor Agreement restricts Carrington from
 manufacturing or selling any product (whether or not a Product) to markets
 other than the Markets as defined in Section 1.1 of the Distributor
 Agreement, namely the hospital, nursing home and home health care markets,
 and that Carrington is therefore permitted to sell any product (whether or
 not a Product) to other markets, including without limitation to pharmacies,
 pharmacy chains and other retail outlets.

           6. Contract Manufacturing.  For avoidance of doubt, the parties
 acknowledge that nothing in the Distributor Agreement restricts Carrington
 from manufacturing any product (which is not a Product (as defined in
 Section 1.1 of the Distributor Agreement) for customers having their own
 formula and regulatory approval for such product, provided, however, that
 Carrington agrees that it will not so manufacture any product that competes
 with the Products in the Markets and Territory, as defined in Section 1.1 of
 the Distributor Agreement, or with any product Carrington manufactures for
 Medline at the time under the Supply Agreement.

           7. Supply of New Medline Products.  With respect to the
 obligations of the parties under the Supply Agreement, it is agreed that
 if Carrington at its own expense develops a monographed product for sale to
 Medline under the Supply Agreement and Medline agrees to an initial price
 for such product, Medline shall purchase such product exclusively from
 Carrington at such price for a period of two years from the date of
 Medline's first order unless Medline has reimbursed Carrington for the cost
 of stability studies and analytical method development of such product.

           8. Recovery of Products.  Carrington and Medline will discuss in
 good faith at their regular meetings either removing certain  Products from
 the list of Products as defined in the Distributor Agreement or permitting
 Carrington to market them to purchasers who are not current customers of
 Medline, and the terms and conditions of such recovery.

           9. No Breaches; Release.  The parties agree and acknowledge that
 there are no uncured material breaches under the Distributor Agreement or
 the Supply Agreement as of the effective date of this Amendment.  The
 parties hereby release each other from any and all liabilities and claims
 of any kind, other than liabilities under outstanding or unpaid for
 orders, whether known or unknown, that may have arisen or accrued from the
 relationship between the parties as described in the Distributor Agreement
 or the Supply Agreement, from the effective date of the Distributor
 Agreement and the Supply Agreement to the effective date of this Amendment.
 Except as specifically set forth in this Section 8, the parties agree that
 no modification or amendment of the Distributor Agreement or the Supply
 Agreement shall be deemed to have occurred by act, failure to act or waiver
 of any right by Carrington or Medline, other than set forth in a writing
 executed by both parties.

           IN WITNESS WHEREOF, the parties hereto have caused this Amendment
 to be executed by their duly authorized representatives.

                                    CARRINGTON LABORATORIES, INC.

                                    By:   /s/ Carlton E. Turner
                                          ---------------------
                                    Name:  Carlton E. Turner
                                          ---------------------
                                    Title: Pres/CEO
                                          ---------------------

                                    MEDLINE INDUSTRIES, INC.

                                    By:   /s/ Andrew Mills
                                          ---------------------
                                    Name:  Andrew Mills
                                          ---------------------
                                    Title: President
                                          ---------------------Exhibit 4(b)

================================================================================

                               AVISTA CORPORATION

                                       TO

                                 CITIBANK, N.A.

                           AS SUCCESSOR TRUSTEE UNDER
                           MORTGAGE AND DEED OF TRUST,
                            DATED AS OF JUNE 1, 1939

                            ------------------------

                      _____________ SUPPLEMENTAL INDENTURE

          PROVIDING AMONG OTHER THINGS FOR A SERIES OF BONDS DESIGNATED
                 "FIRST MORTGAGE BONDS, _____% SERIES DUE ____"

                              DUE ___________, ____

                            ------------------------

                          Dated as of ___________, 200_

================================================================================

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                      _____________ SUPPLEMENTAL INDENTURE

                  THIS  INDENTURE,  dated as of the ___ day of  _________  ____,
between  AVISTA  CORPORATION  (formerly  known  as The  Washington  Water  Power
Company), a corporation of the State of Washington, whose post office address is
1411 East  Mission  Avenue,  Spokane,  Washington  99202  (the  "Company"),  and
CITIBANK,  N.A., formerly First National City Bank (successor by merger to First
National  City Trust  Company,  formerly  City Bank Farmers  Trust  Company),  a
national  banking  association  incorporated  and existing under the laws of the
United  States of America,  whose post office  address is 111 Wall  Street,  New
York, New York 10043 (the "Trustee"),  as Trustee under the Mortgage and Deed of
Trust,  dated  as of  June 1,  1939  (the  "Original  Mortgage"),  executed  and
delivered  by the Company to secure the payment of bonds  issued or to be issued
under  and in  accordance  with the  provisions  thereof,  this  indenture  (the
"________ Supplemental  Indenture") being supplemental to the Original Mortgage,
as heretofore supplemented and amended.

                  WHEREAS  pursuant to a written  request of the Company made in
accordance  with  Section 103 of the  Original  Mortgage,  Francis M. Pitt (then
Individual Trustee under the Mortgage,  as supplemented)  ceased to be a trustee
thereunder on July 23, 1969,  and all of his powers as  Individual  Trustee have
devolved upon the Trustee and its successors alone; and

                  WHEREAS by the Original  Mortgage the Company  covenanted that
it would execute and deliver such further  instruments  and do such further acts
as might be  necessary or proper to carry out more  effectually  the purposes of
the Original  Mortgage and to make subject to the lien of the Original  Mortgage
any property thereafter acquired intended to be subject to the lien thereof; and

                  WHEREAS the Company has heretofore executed and delivered,  in
addition to the Original Mortgage, the indentures  supplemental thereto, and has
issued the  series of bonds,  set forth in Exhibit A hereto  (the  Mortgage,  as
supplemented and amended by the First through ________  Supplemental  Indentures
being herein sometimes called collectively, the "Mortgage"); and

                  WHEREAS the Original  Mortgage and the First through  ________
Supplemental  Indentures  have been  appropriately  filed or recorded in various
official  records in the States of Washington,  California,  Idaho,  Montana and
Oregon, as set forth in the First through ________ Supplemental Indentures; and

                  WHEREAS the ____________  Supplemental Indenture,  dated as of
______,  ____ has been  appropriately  filed or recorded in the various official
records in the States of Washington,  California,  Idaho, Montana and Oregon set
forth in Exhibit B hereto; and

                  WHEREAS for the purpose of confirming  or perfecting  the lien
of the  Mortgage  on certain  of its  properties,  the  Company  has  heretofore
executed and delivered a Short Form Mortgage and Security Agreement, in multiple
counterparts  dated as of various dates in 1992,  and such  instrument  has been
appropriately filed or recorded in the various official records in the States of
California, Montana and Oregon; and

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<PAGE>

                  WHEREAS for the purpose of confirming  or perfecting  the lien
of the  Mortgage  on certain  of its  properties,  the  Company  has  heretofore
executed and delivered an Instrument of Further  Assurance  dated as of December
15, 2001, and such  instrument has been  appropriately  filed or recorded in the
various official records in the States of Washington, California, Idaho, Montana
and Oregon; and

                  WHEREAS in addition to the property  described in the Mortgage
the Company  has  acquired  certain  other  property,  rights and  interests  in
property; and

                  WHEREAS Section 8 of the Original  Mortgage  provides that the
form of each series of bonds (other than the First Series) issued thereunder and
of the  coupons  to be  attached  to  coupon  bonds  of  such  series  shall  be
established  by  Resolution  of the Board of Directors of the Company;  that the
form of such series,  as established  by said Board of Directors,  shall specify
the  descriptive  title of the bonds and various other terms  thereof;  and that
such  series  may  also  contain  such  provisions  not  inconsistent  with  the
provisions  of the  Mortgage as the Board of Directors  may, in its  discretion,
cause to be inserted therein expressing or referring to the terms and conditions
upon which such bonds are to be issued and/or secured under the Mortgage; and

                  WHEREAS Section 120 of the Original Mortgage  provides,  among
other things, that any power, privilege or right expressly or impliedly reserved
to or in any way  conferred  upon the Company by any  provision of the Mortgage,
whether  such  power,  privilege  or  right  is  in  any  way  restricted  or is
unrestricted,  may be in whole or in part waived or  surrendered or subjected to
any  restriction  if at the time  unrestricted  or to additional  restriction if
already  restricted,  and the  Company  may enter  into any  further  covenants,
limitations or  restrictions  for the benefit of any one or more series of bonds
issued thereunder,  or the Company may cure any ambiguity  contained therein, or
in  any  supplemental  indenture,  by an  instrument  in  writing  executed  and
acknowledged  by the Company in such manner as would be  necessary  to entitle a
conveyance  of real estate to record in all of the states in which any  property
at the time subject to the lien of the Mortgage shall be situated; and

                  WHEREAS  the  Company  now  desires  to create a new series of
bonds; and

                  WHEREAS  the  execution  and  delivery  by the Company of this
_____________ Supplemental Indenture and the terms of the bonds of the _________
Series,  hereinafter  referred  to,  have been duly  authorized  by the Board of
Directors of the Company by appropriate  Resolutions of said Board of Directors;
and all things  necessary to make this  _____________  Supplemental  Indenture a
valid, binding and legal instrument have been performed;

                  NOW, THEREFORE,  THIS INDENTURE WITNESSETH:  That the Company,
in consideration  of the premises and of other good and valuable  consideration,
the receipt and sufficiency whereof are hereby acknowledged, hereby confirms the
estate,  title and rights of the Trustee  (including without limitation the lien
of the Mortgage on the property of the Company  subjected  thereto,  whether now
owned or  hereafter  acquired)  held as  security  for the  payment  of both the
principal of and  interest  and premium,  if any, on the bonds from time to time
issued  under  the  Mortgage  according  to  their  tenor  and  effect  and  the
performance  of all the  provisions  of the  Mortgage  and of such  bonds,  and,
without  limiting the  generality of the foregoing,  hereby

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<PAGE>

confirms the grant, bargain, sale, release,  conveyance,  assignment,  transfer,
mortgage,  pledge, setting over and confirmation unto the Trustee,  contained in
the Mortgage, of all the following described properties of the Company,  whether
now owned or hereafter acquired, namely:

                      All of the property,  real,  personal and mixed,  of every
                  character and wheresoever  situated (except any hereinafter or
                  in the Mortgage expressly excepted) which the Company now owns
                  or,  subject to the  provisions of Section 87 of the Mortgage,
                  may hereafter  acquire prior to the satisfaction and discharge
                  of the  Mortgage,  as fully and  completely as if herein or in
                  the Mortgage specifically described, and including (without in
                  anywise  limiting or impairing by the  enumeration of the same
                  the  scope  and  intent  of the  foregoing  or of any  general
                  description  contained  in Mortgage)  all lands,  real estate,
                  easements,  servitudes,  rights of way and leasehold and other
                  interests   in  real   estate;   all  rights  to  the  use  or
                  appropriation of water,  flowage rights, water storage rights,
                  flooding rights, and other rights in respect of or relating to
                  water;  all plants for the  generation of  electricity,  power
                  houses,  dams,  dam  sites,   reservoirs,   flumes,  raceways,
                  diversion works,  head works,  waterways,  water works,  water
                  systems,  gas plants, steam heat plants, hot water plants, ice
                  or  refrigeration  plants,  stations,  substations,   offices,
                  buildings  and other works and  structures  and the  equipment
                  thereof  and  all   improvements,   extensions  and  additions
                  thereto;  all  generators,   machinery,   engines,   turbines,
                  boilers,  dynamos,  transformers,  motors,  electric machines,
                  switchboards,  regulators,  meters,  electrical and mechanical
                  appliances,  conduits,  cables, pipes and mains; all lines and
                  systems  for the  transmission  and  distribution  of electric
                  current, gas, steam heat or water for any purpose; all towers,
                  mains,  pipes,  poles, pole lines,  conduits,  cables,  wires,
                  switch racks, insulators, compressors, pumps, fittings, valves
                  and  connections;  all motor  vehicles  and  automobiles;  all
                  tools, implements,  apparatus, furniture, stores, supplies and
                  equipment;  all franchises (except the Company's  franchise to
                  be a  corporation),  licenses,  permits,  rights,  powers  and
                  privileges;  and  (except as  hereinafter  or in the  Mortgage
                  expressly  excepted) all the right,  title and interest of the
                  Company in and to all other property of any kind or nature.

The property so conveyed or intended to be so conveyed  under the Mortgage shall
include,  but shall not be  limited  to,  the  property  set forth in  Exhibit C
hereto,  the  particular  description  of which is  intended  only to aid in the
identification  thereof and shall not be construed as limiting the force, effect
and scope of the foregoing.

                  TOGETHER  WITH all and singular the  tenements,  hereditaments
and appurtenances belonging or in anywise appertaining to the aforesaid property
or any part thereof, with the reversion and reversions, remainder and remainders
and  (subject to the  provisions  of Section 57 of the  Original  Mortgage)  the
tolls, rents, revenues,  issues, earnings,  income, product and profits thereof,
and all the estate,  right,  title and interest and claim whatsoever,  at law as
well as in equity,  which the Company now has or may hereafter acquire in and to
the aforesaid property and franchises and every part and parcel thereof.

                                       4
<PAGE>

                  THE COMPANY HEREBY CONFIRMS that, subject to the provisions of
Section 87 of the Original  Mortgage,  all the property,  rights, and franchises
acquired by the Company  after the date  thereof  (except  any  hereinbefore  or
hereinafter  or in the Mortgage  expressly  excepted)  are and shall be as fully
embraced  within  the  lien of the  Mortgage  as if such  property,  rights  and
franchises  had been owned by the Company at the date of the  Original  Mortgage
and had been specifically described therein.

                  PROVIDED THAT the following  were not and were not intended to
be  then or now or  hereafter  granted,  bargained,  sold,  released,  conveyed,
assigned,  transferred,  mortgaged,  pledged,  set over or  confirmed  under the
Mortgage  and  were,  are and  shall  be  expressly  excepted  from the lien and
operation namely:  (l) cash,  shares of stock and obligations  (including bonds,
notes and other securities) not hereafter  specifically pledged, paid, deposited
or  delivered  under the  Mortgage  or  covenanted  so to be;  (2)  merchandise,
equipment,  materials  or  supplies  held for the  purpose  of sale in the usual
course of business or for  consumption in the operation of any properties of the
Company; (3) bills, notes and accounts receivable, and all contracts, leases and
operating  agreements not specifically  pledged under the Mortgage or covenanted
so to be;  (4)  electric  energy  and other  materials  or  products  generated,
manufactured, produced or purchased by the Company for sale, distribution or use
in the ordinary course of its business; and (5) any property heretofore released
pursuant to any provisions of the Mortgage and not heretofore disposed of by the
Company; provided, however, that the property and rights expressly excepted from
the lien and  operation  of the Mortgage in the above  subdivisions  (2) and (3)
shall (to the extent permitted by law) cease to be so excepted in the event that
the Trustee or a receiver or trustee shall enter upon and take possession of the
Mortgaged  and  Pledged  Property  in the manner  provided in Article XII of the
Original  Mortgage by reason of the occurrence of a Completed Default as defined
in said Article XII.

                  TO HAVE AND TO HOLD all such  properties,  real,  personal and
mixed, granted,  bargained,  sold, released,  conveyed,  assigned,  transferred,
mortgaged,  pledged,  set over or  confirmed  by the Company in the  Mortgage as
aforesaid, or intended so to be, unto the Trustee, and its successors, heirs and
assigns forever.

                  IN TRUST NEVERTHELESS, for the same purposes and upon the same
terms,  trusts and  conditions  and  subject to and with the same  provisos  and
covenants  as  set  forth  in  the  Mortgage,  this  _____________  Supplemental
Indenture being supplemental to the Mortgage.

                  AND IT IS HEREBY FURTHER CONFIRMED by the Company that all the
terms, conditions,  provisos, covenants and provisions contained in the Mortgage
shall affect and apply to the property in the Mortgage  described  and conveyed,
and to the  estates,  rights,  obligations  and  duties of the  Company  and the
Trustee and the beneficiaries of the trust with respect to said property, and to
the Trustee  and its  successors  in the trust,  in the same manner and with the
same effect as if the said property had been owned by the Company at the time of
the execution of the Original Mortgage,  and had been specifically and at length
described in and conveyed to said Trustee by the Original  Mortgage as a part of
the property therein stated to be conveyed.

                  The  Company  further  covenants  and  agrees  to and with the
Trustee and its successor or  successors  in such trust under the  Mortgage,  as
follows:

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                                   ARTICLE I

                            _________ SERIES OF BONDS

                  SECTION  1. (I) There  shall be a series  of bonds  designated
"First Mortgage Bonds,  _____% Series due ____" (herein sometimes referred to as
the "bonds of the _________ Series" or the "Bonds"), and the form thereof, which
has been established by Resolution of the Board of Directors of the Company,  is
set forth on Exhibit D hereto.  The bonds of the ________ Series shall be issued
as fully  registered  bonds in denominations of One Thousand Dollars and, at the
option of the Company, any amount in excess thereof (the exercise of such option
to be evidenced by the execution and delivery  thereof) and shall be dated as in
Section 10 of the Mortgage provided.

                  (II) The bonds of the  _________  Series shall  mature,  shall
bear interest and shall be payable as set forth below:

                       (a) the principal of bonds of the _________  Series shall
            (unless  theretofor paid) be payable on the Stated Maturity Date (as
            hereinafter defined);

                       (b) the bonds of the _________ Series shall bear interest
            at the  rate of  _______________________  per  centum  (_____%)  per
            annum;  interest on such bonds shall accrue from and  including  the
            date of the initial  authentication and delivery thereof,  except as
            otherwise provided in the form of bond attached hereto as Exhibit D;
            interest  on such bonds  shall be payable on each  Interest  Payment
            Date and at Maturity (as each of such terms is  hereafter  defined);
            and  interest on such bonds  during any period for which  payment is
            made shall be computed on the basis of a 360-day year  consisting of
            twelve 30-days months;

                       (c) the principal of and premium, if any, and interest on
            each  bond of the  ________  Series  payable  at  Maturity  shall be
            payable  upon  presentation  thereof  at the office or agency of the
            Company in the Borough of  Manhattan,  The City of New York, in such
            coin or  currency  as at the time of  payment  is legal  tender  for
            public and private debts. The interest on each bond of the _________
            Series (other than interest payable at Maturity) shall be payable by
            check, in similar coin or currency,  mailed to the registered  owner
            thereof  as of the  close  of  business  on  the  Record  Date  next
            preceding each Interest  Payment Date;  provided,  however,  that if
            such registered owner shall be a securities depositary, such payment
            may be made by such other  means in lieu of check as shall be agreed
            upon by the Company, the Trustee and such registered owner.

                  (III) [Redemption provisions, if any]

                  (IV) (a) At the option of the registered  owner,  any bonds of
the ________  Series,  upon surrender  thereof for cancellation at the office or
agency of the Company in the Borough of Manhattan,  The City of New York,  shall
be  exchangeable  for a like  aggregate  principal  amount  of bonds of the same
series of other authorized denominations.

                  The bonds of the _________Series  shall be transferable,  upon
the surrender  thereof for cancellation,  together with a written  instrument of
transfer in form approved by the

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registrar  duly  executed  by the  registered  owner or by his  duly  authorized
attorney,  at the office or agency of the Company in the  Borough of  Manhattan,
The City of New York.

                  Upon any  exchange  or  transfer  of  bonds  of the  _________
Series,  the Company may make a charge  therefor  sufficient to reimburse it for
any tax or taxes or other governmental  charge, as provided in Section 12 of the
Mortgage,  but the Company  hereby waives any right to make a charge in addition
thereto or any exchange or transfer of bonds of the _________ Series;  provided,
however, that the Company shall not be required to make any transfer or exchange
of any bonds of the _________  Series for a period of 10 days next preceding any
selection  of such  bonds  for  redemption,  nor  shall it be  required  to make
transfers or exchange of any bonds of the _________ Series which shall have been
selected  for  redemption  in whole or in part or as to which the Company  shall
have  received  a notice for the  redemption  thereof in whole or in part at the
option of the registered owner.

                    (b) The bonds of the  _________  Series are  initially to be
issued in global form,  registered in the name of Cede & Co., as nominee for The
Depository Trust Company (the  "Depositary").  Notwithstanding the provisions of
subdivision  (a) above,  such  bonds  shall not be  transferable,  nor shall any
purported transfer be registered, except as follows:

                          (i)  such  bonds  may be  transferred  in  whole,  and
                  appropriate   registration  of  transfer   effected,   to  the
                  Depositary,  or by the Depositary to another nominee  thereof,
                  or by any  nominee  of the  Depositary  to any  other  nominee
                  thereof,  or by the  Depositary or any nominee  thereof to any
                  successor securities depositary or any nominee thereof;

                          (ii) such  bonds  may be  transferred  in  whole,  and
                  appropriate   registration  of  transfer   effected,   to  the
                  beneficial   holders   thereof,   and   thereafter   shall  be
                  transferable, if:

                             (A) The  Depositary,  or any  successor  securities
                    depositary,  shall have notified the Company and the Trustee
                    that (I) it is  unwilling  or unable to  continue  to act as
                    securities  depositary with respect to such bonds or (II) it
                    is  no  longer  a  clearing  agency   registered  under  the
                    Securities Exchange Act of 1934, as amended,  and, in either
                    case,  the  Trustee  shall  not have  been  notified  by the
                    Company within one hundred twenty (120) days of the identity
                    of a successor  securities  depositary  with respect to such
                    bonds; or

                             (B) the Company shall have delivered to the Trustee
                    a written  order to the effect  that such bonds  shall be so
                    transferable on and after a date specified therein.

                  The bonds of the _________ Series,  when in global form, shall
bear a legend as to such global form and the foregoing  restrictions on transfer
substantially as set forth below:

                  This  global  bond is held by Cede & Co.,  as nominee  for The
                  Depository Trust Company (the "Depositary") for the benefit of
                  the   beneficial   owners   hereof.   This  bond  may  not  be
                  transferred,  nor may any  purported  transfer

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                  be registered, except that (i) this bond may be transferred in
                  whole, and appropriate  registration of transfer effected,  if
                  such transfer is by Cede & Co., as nominee for the Depositary,
                  to the  Depositary,  or by the  Depositary to another  nominee
                  thereof,  or by any  nominee  of the  Depositary  to any other
                  nominee  thereof,  or by the Depositary or any nominee thereof
                  to any successor bonds depositary or any nominee thereof;  and
                  (ii)   this   bond  may  be   transferred,   and   appropriate
                  registration of transfer  effected,  to the beneficial holders
                  hereof,   and  thereafter   shall  be   transferable   without
                  restrictions  (except as provided in the preceding  paragraph)
                  if:  (A)  the   Depositary,   or  any   successor   securities
                  depositary,  shall have  notified  the Company and the Trustee
                  that (I) it is  unwilling  or  unable  to  continue  to act as
                  securities  depositary with respect to the bonds or (II) it is
                  no longer a clearing  agency  registered  under the Securities
                  Exchange Act of 1934,  as amended,  and, in either  case,  the
                  Trustee shall not have been notified by the Company within one
                  hundred  twenty  (120)  days of the  identity  of a  successor
                  securities  depositary  with respect to the bonds;  or (B) the
                  Company shall have delivered to the Trustee a written order to
                  the  effect  that the bonds  shall be so  transferable  on and
                  after a date specified therein.

                  (V)  For  all  purposes  of  this  _____________  Supplemental
Indenture,  except  as  otherwise  expressly  provided  or  unless  the  context
otherwise  requires,  the terms and with  respect  to the bonds of the  ________
Series listed below shall have the meanings specified:

                  "INTEREST  PAYMENT  DATE" means  ________ and ________ in each
year, commencing _______, ____.

                  "MATURITY"  means the date on which the principal of the bonds
of the _________ Series becomes due and payable,  whether at the Stated Maturity
Date, upon redemption or acceleration, or otherwise.

                  "RECORD  DATE",  with  respect to any Interest  Payment  Date,
means the  __________  or  _________,  as the case may be, next  preceding  such
Interest Payment Date.

                  "STATED MATURITY DATE" means ____________, ____.

                  (VI)  Notwithstanding  the  provisions  of Section  106 of the
Original  Mortgage,  the  Company  shall not  cause  any bonds of the  _________
Series,  or any portion of the principal  amount  thereof,  to be deemed to have
been paid as provided in such Section and its  obligations in respect thereof to
be deemed to be satisfied and  discharged  prior to the Maturity  thereof unless
the Company shall deliver to the Trustee either:

                       (a) an  instrument  wherein the Company,  notwithstanding
            the effect of Section  106 of the  Original  Mortgage  in respect of
            such bonds, shall assume the obligation (which shall be absolute and
            unconditional)   to  irrevocably   deposit  with  the  Trustee  such
            additional  sums  of  money,   if  any,  or  additional   government
            obligations  (meeting the  requirements  of Section 106), if any, or
            any  combination  thereof,  at  such

                                       8
<PAGE>

            time or times, as shall be necessary, together with the money and/or
            government obligations theretofore so deposited, to pay when due the
            principal of and premium, if any, and interest due and to become due
            on such  bonds  or  portions  thereof,  all in  accordance  with and
            subject to the provisions of Section 106;  provided,  however,  that
            such instrument may state that the obligation of the Company to make
            additional deposits as aforesaid shall be subject to the delivery to
            the  Company by the  Trustee of a notice  asserting  the  deficiency
            accompanied by an opinion of an independent  accountant  showing the
            calculation  thereof (which opinion shall be obtained at the expense
            of the Company); or

                       (b) an Opinion of Counsel to the effect  that the holders
            of such bonds, or portions of the principal amount thereof, will not
            recognize income,  gain or loss for United States federal income tax
            purposes  as a  result  of the  satisfaction  and  discharge  of the
            Company's  indebtedness  in respect  thereof  and will be subject to
            United States  federal  income tax on the same amounts,  at the same
            times and in the same manner as if such  satisfaction  and discharge
            had not been effected.

                  (VII)  The  bonds of the  _________  Series  shall  have  such
further terms as are set forth in Exhibit D hereto. If there shall be a conflict
between the terms of the form of bond and the  provisions of the  Mortgage,  the
provisions of the Mortgage shall control to the extent permitted by law.

                  (VIII) [Provisions as to title insurance, if any]

                  (IX)  Upon the  delivery  of this  _____________  Supplemental
Indenture,  bonds of the  _________  Series  in an  aggregate  principal  amount
initially not to exceed $__________ are to be issued and will be Outstanding, in
addition to  $___________  aggregate  principal  amount of bonds of prior series
Outstanding  at  the  date  of  delivery  of  this  _____________   Supplemental
Indenture.

                                   ARTICLE II

                              PROSPECTIVE AMENDMENT

                  SECTION  1. The  owners of the bonds of the  _________  Series
shall be deemed to have consented to the amendment of Section 28 of the Original
Mortgage to add at the end thereof a new paragraph reading as follows:

                  Notwithstanding   the   foregoing,   any  Opinion  of  Counsel
delivered  pursuant to  subdivision  (7) of this  Section 28, or pursuant to any
other  provision of this  Indenture by reference to this Section 28, may, at the
election of the Company,  omit any or all of the statements  contained in clause
(a) of  subdivision  (7) if there  shall have been  delivered  to the  Trustee a
policy of title  insurance  (or  endorsement  thereto)  issued  by a  nationally
recognized  title  insurance  company,  in an amount not less than  twenty-eight
percent  (28%)(1) of the cost or fair

-----------------------
(1)  The  owners  of the  bonds of the  _______  series  shall be deemed to have
     consented  to the  amendment  contained  in this  Section 1 of Article  II,
     either with the percentage shown above or with any higher percentage.

                                       9
<PAGE>

value to the Company  (whichever  is less) of the  Property  Additions  made the
basis of such application,  insuring,  in customary terms,  against risk of loss
sustained  or  incurred  by  the  Trustee  by  reason  of any  circumstances  or
conditions  by virtue of which the  statements  omitted  from clause (a) of such
Opinion of Counsel would not have been accurate if made.

                                  ARTICLE III

                            MISCELLANEOUS PROVISIONS

                  SECTION 1. The terms defined in the Original  Mortgage  shall,
for all  purposes of this  ________  Supplemental  Indenture,  have the meanings
specified in the Original Mortgage.

                  SECTION 2. The Trustee  hereby  confirms its acceptance of the
trusts in the Original Mortgage declared,  provided, created or supplemented and
agrees  to  perform  the same  upon the terms  and  conditions  in the  Original
Mortgage set forth, including the following:

                  The Trustee shall not be responsible in any manner  whatsoever
for  or in  respect  of  the  validity  or  sufficiency  of  this  _____________
Supplemental  Indenture or for or in respect of the recitals  contained  herein,
all of which  recitals are made by the Company  solely.  Each and every term and
condition contained in Article XVI of the Original Mortgage,  shall apply to and
form part of this _____________  Supplemental  Indenture with the same force and
effect  as if the same were  herein  set  forth in full,  with  such  omissions,
variations  and  insertions,  if any,  as may be  appropriate  to make  the same
conform to the provisions of this _____________ Supplemental Indenture.

                  SECTION  3.  Whenever  in  this   _____________   Supplemental
Indenture  either of the  parties  hereto is named or  referred  to, this shall,
subject to the  provisions  of Articles XV and XVI of the  Original  Mortgage be
deemed  to  include  the  successors  and  assigns  of such  party,  and all the
covenants and agreements in this _____________  Supplemental Indenture contained
by or on behalf of the Company,  or by or on behalf of the Trustee, or either of
them, shall, subject as aforesaid,  bind and inure to the respective benefits of
the respective  successors and assigns of such parties,  whether so expressed or
not.

                  SECTION   4.   Nothing  in  this   ____________   Supplemental
Indenture,  expressed or implied, is intended, or shall be construed,  to confer
upon,  or to give to, any person,  firm or  corporation,  other than the parties
hereto and the holders of the bonds and coupons  Outstanding under the Mortgage,
any right, remedy or claim under or by reason of this _____________ Supplemental
Indenture or any covenant, condition,  stipulation, promise or agreement hereof,
and all the covenants, conditions, stipulations, promises and agreements in this
____________  Supplemental  Indenture  contained  by or on behalf of the Company
shall be for the sole and exclusive  benefit of the parties  hereto,  and of the
holders of the bonds and of the coupons Outstanding under the Mortgage.

                  SECTION 5. This _____________  Supplemental Indenture shall be
executed in several counterparts,  each of which shall be an original and all of
which shall constitute but one and the same instrument.

                                       10
<PAGE>

                  SECTION  6.  The  titles  of  the  several  Articles  of  this
_____________ Supplemental Indenture shall not be deemed to be any part thereof.

                            ------------------------

                                       11
<PAGE>

                  IN WITNESS  WHEREOF,  on the ___ day of ________ ____,  AVISTA
CORPORATION  has caused its  corporate  name to be  hereunto  affixed,  and this
instrument  to be  signed  and  sealed  by its  President  or  one  of its  Vice
Presidents,  and its corporate seal to be attested by its Corporate Secretary or
one of its Assistant  Corporate  Secretaries  for and in its behalf,  all in The
City of Spokane,  Washington, as of the day and year first above written; and on
the ____ day of _________ ____, CITIBANK, N.A., has caused its corporate name to
be  hereunto  affixed,  and this  instrument  to be  signed  and  sealed  by its
President or one of its Vice  Presidents or one of its Senior Trust  Officers or
one of its Trust  Officers and its  corporate  seal to be attested by one of its
Vice Presidents or one of its Trust  Officers,  all in The City of New York, New
York, as of the day and year first above written.

                                            AVISTA CORPORATION

                                            By
                                              ----------------------------------
                                                       Vice President

Attest:

-----------------------------------
     Corporate Secretary

Executed, sealed and delivered
 by AVISTA CORPORATION
 in the presence of:

-----------------------------------

-----------------------------------

                                       12
<PAGE>

                                            CITIBANK, N.A., AS TRUSTEE

                                            By
                                              ----------------------------------

Attest:

-----------------------------------

Executed, sealed and delivered
 by CITIBANK, N.A.
 as trustee, in the presence of:

-----------------------------------

-----------------------------------

                                       13
<PAGE>

STATE OF WASHINGTON )
                    ) ss.:
COUNTY OF SPOKANE   )

                  On the  ___  day  of  _________  ____,  before  me  personally
appeared  ______________,  to  me  known  to be a  [Vice  President]  of  AVISTA
CORPORATION,  one of the  corporations  that  executed the within and  foregoing
instrument,  and  acknowledged  said instrument to be the free and voluntary act
and deed of said Corporation for the uses and purposes therein  mentioned and on
oath stated that he was authorized to execute said  instrument and that the seal
affixed is the corporate seal of said Corporation.

                  On the ___ day of _________  ____,  before me, a Notary Public
in and for the State and County aforesaid,  personally appeared  ______________,
known  to me to  be a  [Vice  President]  of  AVISTA  CORPORATION,  one  of  the
corporations that executed the within and foregoing  instrument and acknowledged
to me that such Corporation executed the same.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year first above written.

                                                  ------------------------------
                                                           Notary Public

                                       14
<PAGE>

STATE OF NEW YORK  )
                   ) ss.:
COUNTY OF NEW YORK )

                  On  the  ____  day of  ______________,  before  me  personally
appeared __________ to me known to be a [Vice President] of CITIBANK,  N.A., one
of the  corporations  that  executed the within and  foregoing  instrument,  and
acknowledged  said  instrument to be the free and voluntary act and deed of said
Corporation for the uses and purposes therein  mentioned and on oath stated that
he was  authorized to execute said  instrument  and that the seal affixed is the
corporate seal of said Corporation.

                  On the  _____  day of  _______________,  before  me,  a Notary
Public  in  and  for  the  State  and  County  aforesaid,   personally  appeared
__________,  known to me to be a [Vice President] of CITIBANK,  N.A., one of the
corporations that executed the within and foregoing  instrument and acknowledged
to me that such Corporation executed the same.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year first above written.

                                                  ------------------------------
                                                  Notary Public

                                       15
<PAGE>

                                                                       EXHIBIT A

                        MORTGAGE, SUPPLEMENTAL INDENTURES
                               AND SERIES OF BONDS

<TABLE>
<CAPTION>

--------------------------------------------------------------------------------------------------------------------
MORTGAGE OR                DATED AS OF         SERIES                         PRINCIPAL         PRINCIPAL
SUPPLEMENTAL                                  ------------------------------  AMOUNT            AMOUNT
INDENTURE                                      NO.   DESIGNATION              ISSUED            OUTSTANDING
--------------------------------------------------------------------------------------------------------------------
<S>                        <C>                  <C>  <C>                      <C>               <C>
Original                   June 1, 1939         1    3-1/2% Series due 1964   $22,000,000              None
--------------------------------------------------------------------------------------------------------------------
First                      October 1, 1952      2    3-3/4% Series due 1982    30,000,000              None
--------------------------------------------------------------------------------------------------------------------
Second                     May 1, 1953          3    3-7/8% Series due 1983    10,000,000              None
--------------------------------------------------------------------------------------------------------------------
Third                      December 1, 1955                   None
--------------------------------------------------------------------------------------------------------------------
Fourth                     March 15, 1957                     None
--------------------------------------------------------------------------------------------------------------------
Fifth                      July 1, 1957         4    4-7/8% Series due 1987    30,000,000              None
--------------------------------------------------------------------------------------------------------------------
Sixth                      January 1, 1958      5    4-1/8% Series due 1988    20,000,000              None
--------------------------------------------------------------------------------------------------------------------
Seventh                    August 1, 1958       6    4-3/8% Series due 1988    15,000,000              None
--------------------------------------------------------------------------------------------------------------------
Eighth                     January 1, 1959      7    4-3/4% Series due 1989    15,000,000              None
--------------------------------------------------------------------------------------------------------------------
Ninth                      January 1, 1960      8    5-3/8% Series due 1990    10,000,000              None
--------------------------------------------------------------------------------------------------------------------
Tenth                      April 1, 1964        9    4-5/8% Series due 1994    30,000,000              None
--------------------------------------------------------------------------------------------------------------------
Eleventh                   March 1,1965        10    4-5/8% Series due 1995    10,000,000              None
--------------------------------------------------------------------------------------------------------------------
Twelfth                    May 1, 1966                        None
--------------------------------------------------------------------------------------------------------------------
Thirteenth                 August 1, 1966      11    6    % Series due 1996    20,000,000              None
--------------------------------------------------------------------------------------------------------------------
Fourteenth                 April 1, 1970       12    9-1/4% Series due 2000    20,000,000              None
--------------------------------------------------------------------------------------------------------------------
Fifteenth                  May 1, 1973         13    7-7/8% Series due 2003    20,000,000              None
--------------------------------------------------------------------------------------------------------------------
Sixteenth                  February 1, 1975    14    9-3/8% Series due 2005    25,000,000              None
--------------------------------------------------------------------------------------------------------------------
Seventeenth                November 1, 1976    15    8-3/4% Series due 2006    30,000,000              None
--------------------------------------------------------------------------------------------------------------------
Eighteenth                 June 1, 1980                       None
--------------------------------------------------------------------------------------------------------------------
Nineteenth                 January 1, 1981     16    14-1/8% Series due 1991   40,000,000              None
--------------------------------------------------------------------------------------------------------------------
Twentieth                  August 1, 1982      17      15-3/4% Series due      60,000,000              None
--------------------------------------------------------------------------------------------------------------------
Twenty-First               September 1, 1983   18    13-1/2% Series due 2013   60,000,000              None
--------------------------------------------------------------------------------------------------------------------
Twenty-Second              March 1, 1984       19    13-1/4% Series due 1994   60,000,000              None
--------------------------------------------------------------------------------------------------------------------
Twenty-Third               December 1, 1986    20    9-1/4% Series due 2016    80,000,000              None
--------------------------------------------------------------------------------------------------------------------
Twenty-Fourth              January 1, 1988     21    10-3/8% Series due 2018   50,000,000              None
--------------------------------------------------------------------------------------------------------------------
Twenty-Fifth               October 1, 1989     22    7-1/8% Series due 2013    66,700,000              None
--------------------------------------------------------------------------------------------------------------------
                                               23    7-2/5% Series due 2016    17,000,000              None
--------------------------------------------------------------------------------------------------------------------
Twenty-Sixth               April 1, 1993       24      Secured Medium-Term    250,000,000          $104,500,000
                                                         Notes, Series A
                                                          ($250,000,000
                                                           authorized)
--------------------------------------------------------------------------------------------------------------------
Twenty-Seventh             January 1, 1994     25      Secured Medium-Term    161,000,000           59,000,000
                                                         Notes, Series B
                                                          ($250,000,000
                                                           authorized)
--------------------------------------------------------------------------------------------------------------------
Twenty-Eighth              September 1, 2001   26     Collateral Series due   220,000,000              None
                                                              2002
--------------------------------------------------------------------------------------------------------------------
Twenty-Ninth               December 1, 2001    27     7.75% Series due 2007   150,000,000           150,000,000
--------------------------------------------------------------------------------------------------------------------
Thirtieth                  May 1, 2002         28     Collateral Series due   225,000,000              None
                                                              2003
--------------------------------------------------------------------------------------------------------------------
Thirty-First               May 1, 2003         29     Collateral Series due   245,000,000           245,000,000
                                                              2004
--------------------------------------------------------------------------------------------------------------------
Thirty-Second              September 1, 2003   30    6.125% Series due 2013   45,000,000            45,000,000
--------------------------------------------------------------------------------------------------------------------

</TABLE>

                                      A-1
<PAGE>

                                                                       EXHIBIT B

                             FILING AND RECORDING OF
                             SUPPLEMENTAL INDENTURE

                             FILING IN STATE OFFICES

<TABLE>
<CAPTION>

--------------------------------------------------------------------------------------------------------------------
                                                                                            FINANCING STATEMENT
          STATE                         OFFICE OF                      DATE                   DOCUMENT NUMBER
--------------------------------------------------------------------------------------------------------------------
        <S>                        <C>                                 <C>                            <C>
        Washington                 Secretary of State
--------------------------------------------------------------------------------------------------------------------
        Idaho                      Secretary of State
--------------------------------------------------------------------------------------------------------------------
        Montana                    Secretary of State
--------------------------------------------------------------------------------------------------------------------
        Oregon                     Secretary of State
--------------------------------------------------------------------------------------------------------------------
        California                 Secretary of State
--------------------------------------------------------------------------------------------------------------------

</TABLE>

<TABLE>
<CAPTION>

--------------------------------------------------------------------------------------------------------------------
                                            RECORDING IN COUNTY OFFICES
--------------------------------------------------------------------------------------------------------------------
                                                                                                        FINANCING
                                                         REAL ESTATE MORTGAGE RECORDS                   STATEMENT
                                                                                                         DOCUMENT
COUNTY                OFFICE OF                                                                           NUMBER
--------------------------------------------------------------------------------------------------------------------
                                              DATE         DOCUMENT        BOOK           PAGE
                                                            NUMBER
--------------------------------------------------------------------------------------------------------------------
<S>                   <C>                     <C>            <C>            <C>            <C>             <C>
WASHINGTON                                                                  N/A            N/A             N/A
 Adams                Auditor
--------------------------------------------------------------------------------------------------------------------
 Asotin               Auditor                                               N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Benton               Auditor                                               N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Douglas              Auditor                                               N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Ferry                Auditor                                               N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Franklin             Auditor                                               N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Garfield             Auditor                                               N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Grant                Auditor                                               N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Klickitat            Auditor                                               N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Lewis                Auditor                                               N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Lincoln              Auditor                                                                              N/A
--------------------------------------------------------------------------------------------------------------------
 Pend Oreille         Auditor                                               N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Skamania             Auditor                                                                              N/A
--------------------------------------------------------------------------------------------------------------------
 Spokane              Auditor                                               N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Stevens              Auditor                                                                              N/A
--------------------------------------------------------------------------------------------------------------------
 Thurston             Auditor                                               N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Whitman              Auditor                                               N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------
CALIFORNIA
 El Dorado            Recorder                                              N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------
IDAHO                                                                       N/A            N/A             N/A
 Benewah              Recorder
--------------------------------------------------------------------------------------------------------------------
 Bonner               Recorder                                              N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Boundary             Recorder                                              N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Clearwater           Recorder                                              N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Idaho                Recorder                                              N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Kootenai             Recorder                                              N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Latah                Recorder                                              N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Lewis                Recorder                                              N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Nez Perce            Recorder                                              N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Shoshone             Recorder                                              N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------

</TABLE>

                                      B-1
<PAGE>

<TABLE>
<CAPTION>

--------------------------------------------------------------------------------------------------------------------
                                            RECORDING IN COUNTY OFFICES
--------------------------------------------------------------------------------------------------------------------
                                                                                                        FINANCING
                                                         REAL ESTATE MORTGAGE RECORDS                   STATEMENT
                                                                                                         DOCUMENT
COUNTY                OFFICE OF                                                                           NUMBER
--------------------------------------------------------------------------------------------------------------------
                                              DATE         DOCUMENT        BOOK           PAGE
                                                            NUMBER
--------------------------------------------------------------------------------------------------------------------
<S>                   <C>                     <C>            <C>            <C>            <C>             <C>
MONTANA
 Big Horn             Clerk & Recorder                                                                     N/A
--------------------------------------------------------------------------------------------------------------------
 Broadwater           Clerk & Recorder                                                                     N/A
--------------------------------------------------------------------------------------------------------------------
 Golden Valley        Clerk & Recorder                                                                     N/A
--------------------------------------------------------------------------------------------------------------------
 Meagher              Clerk & Recorder                                                                     N/A
--------------------------------------------------------------------------------------------------------------------
 Mineral              Clerk & Recorder                                                                     N/A
--------------------------------------------------------------------------------------------------------------------
 Rosebud              Clerk & Recorder                                                                     N/A
--------------------------------------------------------------------------------------------------------------------
 Sanders              Clerk & Recorder                                      N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Stillwater           Clerk & Recorder                                                     N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Treasure             Clerk & Recorder                                                                     N/A
--------------------------------------------------------------------------------------------------------------------
 Wheatland            Clerk & Recorder                                                                     N/A
--------------------------------------------------------------------------------------------------------------------
 Yellowstone          Clerk & Recorder                                      N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------
OREGON
 Douglas              Recorder                                              N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Jackson              Recorder                                              N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Josephine            Recorder                                              N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Klamath              Recorder                                                                             N/A
--------------------------------------------------------------------------------------------------------------------
 Morrow               Recorder                                              N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
 Union                Recorder                                              N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------
Wallowa               Recorder                                              N/A            N/A             N/A
--------------------------------------------------------------------------------------------------------------------

</TABLE>

                                      B-2
<PAGE>

                                                                       EXHIBIT C

                               PROPERTY ADDITIONS

                                      C-1
<PAGE>

                                                                       EXHIBIT D

                                 (FORM OF BOND)

                THIS BOND IS SUBJECT TO RESTRICTIONS ON TRANSFER,
                            AS HEREINAFTER SET FORTH

                                                          CUSIP ________________

                               AVISTA CORPORATION

                              First Mortgage Bond,
                            _____% Series due ______

REGISTERED                                                            REGISTERED

NO. _________________                                       $___________________

                  AVISTA  CORPORATION,  a corporation of the State of Washington
(hereinafter called the Company), for value received, hereby promises to pay to

, or registered assigns, on _______________________,

                                                                         DOLLARS

and to pay the  registered  owner  hereof  interest  thereon  from  ____________
semi-annually in arrears on  ______________  and  ________________  in each year
(each such date being hereinafter called an "Interest Payment Date"), commencing
___________________  and at Maturity (as  hereinafter  defined),  at the rate of
________  per centum  (__%) per annum  computed  on the basis of a 360-day  year
consisting of twelve 30-day months,  until the Company's obligation with respect
to the payment of such principal  shall have been  discharged.  The principal of
and premium,  if any,  and  interest on this bond  payable at Maturity  shall be
payable upon  presentation  hereof at the office or agency of the Company in the
Borough of  Manhattan,  The City of New York,  in such coin or  currency  of the
United  States of America  as at the time of payment is legal  tender for public
and private  debts.  The interest on this bond (other than  interest  payable at
Maturity) shall be paid by check, in the similar coin or currency, mailed to the
registered  owner hereof as of the close of business on the  _______________  or
_____________,  as the case may be, next  preceding  each Interest  Payment Date
(each such date being herein called a "Record Date"); provided, however, that if
such registered  owner shall be a securities  depositary,  such payment shall be
made by such  other  means  in lieu of check  as  shall  be  agreed  upon by the
Company,  the Trustee and such registered  owner.  Interest  payable at Maturity
shall be paid to the person to whom principal shall be paid. As used herein, the
term "Maturity"  shall mean the date on which the principal of this bond becomes
due and payable, whether at stated maturity, upon redemption or acceleration, or
otherwise.

<PAGE>

                  This bond is one of an issue of bonds of the Company  issuable
in series  and is one of a series  known as its  First  Mortgage  Bonds,  _____%
Series due ____,  all bonds of all such series being  issued and issuable  under
and equally secured (except insofar as any sinking or other fund, established in
accordance with the provisions of the Mortgage hereinafter mentioned, may afford
additional  security for the bonds of any  particular  series) by a Mortgage and
Deed of Trust, dated as of June 1, 1939, executed by the Company (formerly known
as The  Washington  Water Power  Company) to City Bank Farmers Trust Company and
Ralph E. Morton,  as Trustees  (Citibank,  N.A.,  successor Trustee to both said
Trustees).  Such mortgage and deed of trust has been amended and supplemented by
various  supplemental  indentures,   including  the  _____________  Supplemental
Indenture,  dated  as of  ___________,  ____  (the  "_____________  Supplemental
Indenture")  and,  as  so  amended  and  supplemented,   is  herein  called  the
"Mortgage".  Reference is made to the Mortgage for a description of the property
mortgaged and pledged, the nature and extent of the security,  the rights of the
holders  of the bonds and of the  Trustee  in  respect  thereof,  the duties and
immunities of the Trustee and the terms and conditions  upon which the bonds are
and are to be secured and the circumstances  under which additional bonds may be
issued.  If there  shall be a  conflict  between  the terms of this bond and the
provisions of the Mortgage,  the provisions of the Mortgage shall control to the
extent  permitted by law.  The holder of this bond,  by its  acceptance  hereof,
shall be deemed to have  consented and agreed to all of the terms and provisions
of the  Mortgage  and,  further,  in the event that such holder shall not be the
sole  beneficial  owner of this bond,  shall be deemed to have agreed to use all
commercially  reasonable  efforts to cause all direct  and  indirect  beneficial
owners  of this  bond to have  knowledge  of the  terms  and  provisions  of the
Mortgage and of this bond and to comply therewith,  including particularly,  but
without limitation, any provisions or restrictions in the Mortgage regarding the
transfer or exchange of such  beneficial  interests  and any legend set forth on
this bond.

                  The Mortgage may be modified or altered by affirmative vote of
the holders of at least 60% in principal amount of the bonds  outstanding  under
the  Mortgage,  considered as one class,  or, if the rights of one or more,  but
less than all, series of bonds then  outstanding  are to be affected,  then such
modification or alteration may be effected with the affirmative vote only of 60%
in principal  amount of the bonds  outstanding  of the series so to be affected,
considered as one class, and,  furthermore,  for limited purposes,  the Mortgage
may be modified or altered without any consent or other action of holders of any
series of  bonds.  No  modification  or  alteration  shall,  however,  permit an
extension  of the Maturity of the  principal  of, or interest on, this bond or a
reduction  in  such  principal  or the  rate of  interest  hereon  or any  other
modification  in the terms of  payment  of such  principal  or  interest  or the
creation  of any lien equal or prior to the lien of the  Mortgage or deprive the
holder of a lien on the  mortgaged and pledged  property  without the consent of
the holder hereof.

                  The  principal  hereof may be declared or may become due prior
to the stated maturity date on the conditions, in the manner and at the time set
forth in the  Mortgage,  upon the  occurrence  of a completed  default as in the
Mortgage provided.

                                      D-2
<PAGE>

                  As provided in the Mortgage and subject to certain limitations
therein set forth,  this bond or any portion of the principal amount hereof will
be deemed to have been  paid if there has been  irrevocably  deposited  with the
Trustee moneys or direct obligations of or obligations  guaranteed by the United
States of America,  the principal of and interest on which when due, and without
regard to any  reinvestment  thereof,  will provide moneys which,  together with
moneys so  deposited,  will be  sufficient  to pay when due the principal of and
premium, if any, and interest on this bond when due.

                  The  Mortgage   contains  terms,   provisions  and  conditions
relating to the  consolidation  or merger of the Company  with or into,  and the
conveyance or other transfer, or lease, of assets to, another Corporation and to
the assumption by such other Corporation,  in certain  circumstances,  of all of
the  obligations  of the Company  under the  Mortgage  and on the bonds  secured
thereby.

                  In  the  manner  prescribed  in the  Mortgage,  this  bond  is
transferable by the registered owner hereof in person, or by his duly authorized
attorney,  at the office or agency of the Company in the  Borough of  Manhattan,
The City of New York,  upon surrender and  cancellation  of this bond,  together
with a written  instrument  of transfer  whenever  required by the Company  duly
executed  by the  registered  owner or by its  duly  authorized  attorney,  and,
thereupon,  a new fully  registered bond of the same series for a like principal
amount will be issued to the  transferee in exchange  herefor as provided in the
Mortgage.  The  Company  and the  Trustee may deem and treat the person in whose
name this bond is  registered  as the  absolute  owner hereof for the purpose of
receiving payment and for all other purposes.

                  In the manner  prescribed in the  Mortgage,  any bonds of this
series,  upon surrender  thereof for cancellation at the office or agency of the
Company in the Borough of Manhattan,  The City of New York, are exchangeable for
a like  aggregate  principal  amount  of  bonds  of the  same  series  of  other
authorized denominations.

                  [Redemption provisions, if any]

                  No recourse  shall be had for the payment of the  principal of
or interest on this bond against any incorporator or any past, present or future
subscriber to the capital stock, stockholder, officer or director of the Company
or of any  predecessor or successor  corporation,  as such,  either  directly or
through the Company or any predecessor or successor corporation,  under any rule
of law,  statute or  constitution  or by the  enforcement  of any  assessment or
otherwise,  all such  liability  of  incorporators,  subscribers,  stockholders,
officers  and  directors  being  released  by the holder or owner  hereof by the
acceptance of this bond and being  likewise  waived and released by the terms of
the Mortgage.

                  This bond shall not become  obligatory  until Citibank,  N.A.,
the Trustee under the Mortgage, or its successor  thereunder,  shall have signed
the form of certificate endorsed hereon.

                                      D-3
<PAGE>

                  IN WITNESS WHEREOF, AVISTA CORPORATION has caused this bond to
be signed in its corporate  name by its President or one of its Vice  Presidents
by his signature or a facsimile thereof,  and its corporate seal to be impressed
or  imprinted  hereon and  attested  by its  Corporate  Secretary  or one of its
Assistant Corporate Secretaries by his signature or a facsimile thereof.

Dated:                                         AVISTA CORPORATION

                                               By:
                                                  ------------------------------

ATTEST:
       -----------------------

                                      D-4
<PAGE>

                              TRUSTEE'S CERTIFICATE

                  This  bond  is  one  of  the  bonds,   of  the  series  herein
designated, described or provided for in the within-mentioned Mortgage.

                                     CITIBANK, N.A.
                                     Trustee

                                     By
                                        ---------------------------------
                                              Authorized Officer

                                      D-5
<PAGE>

                  THIS  GLOBAL  BOND IS HELD BY CEDE & CO.,  AS NOMINEE  FOR THE
DEPOSITORY  TRUST COMPANY (THE  "DEPOSITARY")  FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF. THIS BOND MAY NOT BE TRANSFERRED,  NOR MAY ANY PURPORTED TRANSFER
BE  REGISTERED,  EXCEPT  THAT (I) THIS BOND MAY BE  TRANSFERRED  IN  WHOLE,  AND
APPROPRIATE  REGISTRATION  OF TRANSFER  EFFECTED,  IF SUCH TRANSFER IS BY CEDE &
CO., AS NOMINEE FOR THE DEPOSITARY,  TO THE DEPOSITARY,  OR BY THE DEPOSITARY TO
ANOTHER  NOMINEE  THEREOF,  OR BY ANY  NOMINEE  OF THE  DEPOSITARY  TO ANY OTHER
NOMINEE  THEREOF,  OR BY THE DEPOSITARY OR ANY NOMINEE  THEREOF TO ANY SUCCESSOR
BONDS DEPOSITARY OR ANY NOMINEE THEREOF;  AND (II) THIS BOND MAY BE TRANSFERRED,
AND APPROPRIATE  REGISTRATION OF TRANSFER  EFFECTED,  TO THE BENEFICIAL  HOLDERS
HEREOF,  AND THEREAFTER SHALL BE TRANSFERABLE  WITHOUT  RESTRICTIONS  (EXCEPT AS
PROVIDED IN THE PRECEDING  PARAGRAPH) IF: (A) THE  DEPOSITARY,  OR ANY SUCCESSOR
SECURITIES DEPOSITARY,  SHALL HAVE NOTIFIED THE COMPANY AND THE TRUSTEE THAT (I)
IT IS  UNWILLING  OR UNABLE TO CONTINUE  TO ACT AS  SECURITIES  DEPOSITARY  WITH
RESPECT TO THE BONDS OR (II) IT IS NO LONGER A CLEARING AGENCY  REGISTERED UNDER
THE  SECURITIES  EXCHANGE  ACT OF 1934,  AS AMENDED,  AND, IN EITHER  CASE,  THE
TRUSTEE  SHALL NOT HAVE BEEN NOTIFIED BY THE COMPANY  WITHIN ONE HUNDRED  TWENTY
(120) DAYS OF THE IDENTITY OF A SUCCESSOR SECURITIES  DEPOSITARY WITH RESPECT TO
THE BONDS;  OR (B) THE  COMPANY  SHALL HAVE  DELIVERED  TO THE TRUSTEE A WRITTEN
ORDER TO THE EFFECT THAT THE BONDS SHALL BE SO  TRANSFERABLE ON AND AFTER A DATE
SPECIFIED THEREIN.

                                      D-6
<PAGE>

                  FOR VALUE RECEIVED the undersigned  hereby sells,  assigns and
transfers unto

------------------------------------------------------

     [please insert social security or other identifying number of assignee]

------------------------------------------------------

            [please print or typewrite name and address of assignee]

------------------------------------------------------

the within bond of AVISTA CORPORATION and does hereby irrevocably constitute and
appoint , Attorney,  to transfer said bond on the books of the  within-mentioned
Company, will full power of substitution in the premises.

Dated:
        ---------

        ----------------------

                                      Notice:  The signature to this  assignment
                                      must  correspond  with the name as written
                                      upon   the  face  of  the  bond  in  every
                                      particular     without    alteration    or
                                      enlargement or any change whatsoever.

                                      D-7

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