Document:

Exhibit 10.1

 

VOTING AGREEMENT

This VOTING AGREEMENT (this “Agreement”), is made and entered into as of December 21, 2014, by and between Uroplasty, Inc., a Minnesota corporation (“Uroplasty”), and the undersigned stockholders (each a “Stockholder” and, collectively, the “Stockholders”) of Vision-Sciences, Inc., a Delaware corporation (“Vision-Sciences”) as identified on Schedule A hereto.

A.            Concurrently with the execution and delivery of this Agreement, Uroplasty, Vision-Sciences, and Visor Merger Sub LLC, a Delaware limited liability company and a wholly-owned subsidiary of Vision-Sciences (“Merger Sub”) are entering into an Agreement and Plan of Merger (the “Merger Agreement”), dated as of the date hereof, which provides for, among other things, upon the terms and subject to the conditions set forth therein, a business combination between Uroplasty and Vision-Sciences, by means of a merger of Uroplasty with and into Merger Sub (the “Merger”);

B.            As of the date hereof, each Stockholder is the Beneficial Owner (as defined below) of, and has the sole right to vote and dispose of, that number of shares of Common Stock, par value $0.01 per share (the “Vision-Sciences Shares”) of Vision-Sciences set forth opposite such Stockholder’s name on Schedule A hereto; and

C.            In connection with the Merger and concurrently with the entry by Uroplasty, Vision-Sciences and Merger Sub into the Merger Agreement, and as a condition and inducement to the willingness of Uroplasty to enter into the Merger Agreement and incur the obligations set forth therein, each of the Stockholders has agreed to grant Uroplasty an irrevocable proxy to vote the Stockholder’s Vision-Sciences Shares in favor of the adoption of the Merger Agreement and the approval of the terms thereof and other transactions contemplated by the Merger Agreement.

Accordingly, and in consideration of the foregoing and the mutual representations, warranties, covenants and agreements contained herein, the parties hereto, intending to be legally bound, hereby agree as follows:

ARTICLE I.

Definitions

Capitalized terms used but not defined in this Agreement are used in this Agreement with the meanings given to such terms in the Merger Agreement. In addition, for purposes of this Agreement:

“Affiliate” means, with respect to any specified person, a person who, at the time of determination, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, such specified person. For purposes of this Agreement, with respect to a Stockholder, “Affiliate” does not include Vision-Sciences or the persons that directly, or indirectly through one or more intermediaries, are controlled by Vision-Sciences. For the avoidance of doubt, no officer or director of Vision-Sciences will be deemed an Affiliate of another officer or director of Vision-Sciences by virtue of his or her status as an officer or director of Vision-Sciences.

 

“Beneficially Owned” or “Beneficial Ownership” with respect to any securities means having beneficial ownership of such securities (as determined pursuant to Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), disregarding the phrase “within 60 days” in paragraph (d)(1)(i) thereof), including pursuant to any agreement, arrangement or understanding, whether or not in writing. Without duplicative counting of the same securities, securities Beneficially Owned by a person include securities Beneficially Owned by (i) all Affiliates of such person, and (ii) all other persons with whom such person would constitute a “group” within the meaning of Section 13(d) of the Exchange Act and the rules promulgated thereunder.

“Beneficial Owner” with respect to any securities means a person that has Beneficial Ownership of such securities.

“Person or person” has the meaning ascribed thereto in the Merger Agreement.

“Subject Shares” means, with respect to a Stockholder, without duplication, (i) the Vision-Sciences Shares owned by such Stockholder on the date hereof as described on Schedule A, and (ii) any additional Vision-Sciences Shares acquired by such Stockholder or over which such Stockholder acquires Beneficial Ownership from and after the date hereof, whether pursuant to existing stock option agreements, warrants, convertible notes, any other security exercisable for or convertible into Vision-Sciences Shares or otherwise. Without limiting the other provisions of this Agreement, in the event that Vision-Sciences changes the number of Vision-Sciences Shares issued and outstanding prior to the Expiration Date as a result of a reclassification, stock split (including a reverse stock split), stock dividend or distribution, recapitalization, merger, subdivision, issuer tender or exchange offer, or other similar transaction, the number of Subject Shares subject to this Agreement will be equitably adjusted to reflect such change.

“Transfer” means, with respect to a security, the sale, transfer, pledge, hypothecation, encumbrance, assignment or disposition of such security or the Beneficial Ownership thereof, and each option, agreement, arrangement or understanding, whether or not in writing, to effect any of the foregoing. As a verb, “Transfer” has a correlative meaning.

ARTICLE II.

Covenants of Stockholder

2.1           Irrevocable Proxy. Concurrently with the execution of this Agreement, each Stockholder agrees to deliver to Uroplasty a proxy in the form attached hereto as Exhibit A (the “Proxy”), which will be irrevocable during the period prior to the Effective Time to the extent provided in Section 212 of the Delaware General Corporation Law (the “DGCL”), with respect to the Subject Shares referred to therein.

2.2           Agreement to Vote.

(a)           At any meeting of the stockholders of Vision-Sciences held prior to the Expiration Date, however called, and at every adjournment or postponement thereof prior to the Expiration Date, or in connection with any written consent of, or any other action by, the stockholders of Vision-Sciences given or solicited prior to the Expiration Date, each Stockholder will vote, or provide a consent with respect to, all of the Subject Shares entitled to vote or to consent thereon (i) to approve the issuance of Vision-Sciences Shares in connection with the Merger pursuant to the existing designation of the Vision-Sciences Board to issue Vision-Sciences Shares; (ii) if and to the extent specified in the Merger Agreement, to increase the number of Vision-Sciences Shares available for issuance pursuant to equity-based awards under the Vision-Sciences Plans; (iii) to adopt the proposal of the Vision-Sciences Board to amend and restate Vision-Sciences’ certificate of incorporation, including increasing the number of authorized shares and any name change contemplated thereby; (iv) in favor of the adoption of the Merger Agreement, and any actions required in furtherance thereof; (v) to appoint the nominees for the Vision-Sciences Board as set forth in Schedule 2.15 of the Merger Agreement; and (vi) against any Acquisition Proposal (other than the Merger), including any Superior Proposal, against any amendment of Vision-Sciences’ certificate of incorporation or bylaws or any other proposal or transaction involving Vision-Sciences, the purpose of which amendment or other proposal or transaction is to delay, prevent or nullify the Merger or the transactions contemplated by the Merger Agreement or change in any manner the voting rights of any capital stock of Vision-Sciences, and against any other action or agreement that would result in a breach in any material respect of any covenant, representation or warranty or any other obligation or agreement of Vision-Sciences under the Merger Agreement.

 

(b)           Each Stockholder will not enter into any agreement with any person (other than Uroplasty) prior to the Expiration Date (with respect to periods prior to or after the Expiration Date) directly or indirectly to vote, grant any proxy or give instructions with respect to the voting of, the Subject Shares in respect of the matters described in Section 2.2 hereof, or the effect of which would be inconsistent with or violate any provision contained in this Section 2.2. Any vote or consent (or withholding of consent) by such Stockholder that is not in accordance with this Section 2.2 will be considered null and void, and the provisions of the Proxy will be deemed to take immediate effect.

2.3           Revocation of Proxies; Cooperation. Each Stockholder agrees as follows:

(a)           Each Stockholder hereby represents and warrants that any proxies heretofore given in respect of the Subject Shares with respect to the matters described in Section 2.2(a) hereof are not irrevocable, and each Stockholder hereby revokes any and all prior proxies with respect to such Subject Shares as they relate to such matters. Prior to the Expiration Date, each Stockholder will not directly or indirectly grant any proxies or powers of attorney with respect to the matters set forth in Section 2.2(a) hereof (other than to Uroplasty), deposit any of the Subject Shares or enter into a voting agreement (other than this Agreement) with respect to any of the Subject Shares relating to any matter described in Section 2.2(a).

(b)           Each Stockholder will (i) use all reasonable efforts to cooperate with Uroplasty and Vision-Sciences in connection with the transactions contemplated by the Merger Agreement, and (ii) provide any information reasonably requested by Uroplasty or Vision-Sciences for any regulatory application or filing sought for such transactions.

 

2.4           No Solicitation. Each Stockholder acknowledges that Vision-Sciences is subject to the non-solicitation prohibitions set forth in Section 6.04 of the Merger Agreement and that the Stockholder has read and understands the terms thereof. Between the date hereof and the Expiration Date, each Shareholder shall not, and shall not authorize or permit, any director, officer, agent, representative, employee affiliate, advisor, attorney, accountant or associate of the Shareholder or those of its subsidiaries to, directly or indirectly, take any action, in its or their capacity as a shareholder of Vision-Sciences, that Vision-Sciences is prohibited from taking pursuant to Section 6.04 of the Merger Agreement.

2.5           No Transfer of Subject Shares; Publicity. Each Stockholder agrees that:

(a)           Each Stockholder (i) will not Transfer or agree to Transfer (other than Transfer to Vision-Sciences) any of the Subject Shares or, with respect to any matter described in Section 2.2(a), grant any proxy or power-of-attorney with respect to any of the Subject Shares, (ii) will take all action reasonably necessary to prevent creditors in respect of any pledge of the Subject Shares from exercising their rights under such pledge, and (iii) will not take any action that would make in a material respect any of its representations or warranties contained herein untrue or incorrect or would have the effect of preventing or disabling the Stockholder from performing any of its material obligations hereunder. Notwithstanding the foregoing, each Stockholder may Transfer and agree to Transfer any of the Subject Shares; provided that each person to which any such Subject Shares are Transferred has (x) executed a counterpart of this Agreement and a Proxy in the form attached hereto as Exhibit A (with such modifications as Uroplasty may reasonably request), and (y) agreed in writing to hold such Subject Shares subject to all of the terms and conditions set forth in this Agreement.

(b)           Unless required by applicable Law or permitted by the Merger Agreement, each Stockholder will not, and will not authorize or direct any of its Affiliates or Representatives to, make any press release or public announcement with respect to this Agreement or the Merger Agreement or the transactions contemplated hereby or thereby, without the prior written consent of Uroplasty in each instance.

2.6           Waiver of Appraisal and Dissenters’ Rights. Each Shareholder hereby waives, and agrees not to assert or perfect, any rights of appraisal or rights to dissent from the Merger by virtue of ownership of the Vision-Sciences Shares.

ARTICLE III.

Representations, Warranties and Additional Covenants of Stockholder

Each Stockholder represents, warrants and covenants to Uroplasty that:

3.1           Ownership. Each Stockholder is the sole Beneficial Owner and the record and legal owner of the Subject Shares identified on Schedule A and such shares constitute all of the capital stock of Vision-Sciences Beneficially Owned by such Stockholder. Each Stockholder has good and valid title to all of the Subject Shares, free and clear of all Liens, claims, options, proxies, voting agreements and security interests and has the sole right to such Subject Shares and there are no restrictions on rights of disposition or other Liens pertaining to such Subject Shares. None of the Subject Shares is subject to any voting trust or other contract with respect to the voting thereof, and no proxy, power of attorney or other authorization has been granted with respect to any of such Subject Shares.

 

3.2           Authority and Non-Contravention.

(a)           Each Stockholder is an individual, and not a corporation, limited liability company, partnership, trust or other such entity. Each Stockholder has all necessary legal capacity to execute and deliver this Agreement and to perform its obligations hereunder and to consummate the transactions contemplated hereby. Each Stockholder has all necessary power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby.

(b)           Assuming due authorization, execution and delivery of this Agreement by Uroplasty, this Agreement has been duly and validly executed and delivered by each Stockholder and constitutes the legal, valid and binding obligation of such Stockholder, enforceable against such Stockholder in accordance with its terms except (i) to the extent limited by applicable bankruptcy, insolvency or similar laws affecting creditors’ rights and (ii) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.

(c)           Each Stockholder is not nor will it be required to make any filing with or give any notice to, or to obtain any consent from, any person in connection with the execution, delivery or performance of this Agreement or obtain any permit or approval from any Governmental Body for any of the transactions contemplated hereby, except to the extent required by Section 13 or Section 16 of the Exchange Act and the rules promulgated thereunder. No consent of each Shareholder’s spouse is necessary under any “community property” or other Laws in order for the Shareholder to enter into and perform the Shareholder’s obligations under this Agreement.

(d)           Neither the execution and delivery of this Agreement by each Stockholder nor the consummation of the transactions contemplated hereby will directly or indirectly (whether with notice or lapse of time or both) (i) conflict with, result in any violation of or constitute a default by such Stockholder under any mortgage, bond, indenture, agreement, instrument or obligation to which such Stockholder is a party or by which it or any of the Subject Shares are bound, or violate any permit of any Governmental Body, or any applicable Law or order to which such Stockholder, or any of the Subject Shares, may be subject, or (ii) result in the imposition or creation of any Lien upon or with respect to any of the Subject Shares; except, in each case, for conflicts, violations, defaults or Liens that would not individually or in the aggregate be reasonably expected to prevent or materially impair or delay the performance by the Stockholder of its obligations hereunder.

 

(e)           Each Stockholder has sole voting power and sole power to issue instructions with respect to the matters set forth in Article II hereof and sole power to agree to all of the matters set forth in this Agreement, in each case with respect to all of the Subject Shares, with no limitations, qualifications or restrictions on such rights.

3.3           Total Shares. Except as set forth on Schedule A, each Stockholder is not the Beneficial Owner of, and does not have (whether currently, upon lapse of time, following the satisfaction of any conditions, upon the occurrence of any event or any combination of the foregoing) any right to acquire, and has no other interest in or voting rights with respect to, any Vision-Sciences Shares or any securities convertible into or exchangeable or exercisable for Vision-Sciences Shares.

3.4           Reliance. Each Stockholder understands and acknowledges that Uroplasty is entering into the Merger Agreement in reliance upon such Stockholder’s execution, delivery and performance of this Agreement.

ARTICLE IV.

Representations, Warranties and Covenants of Uroplasty

Uroplasty represents, warrants and covenants to each Stockholder that, assuming due authorization, execution and delivery of this Agreement by such Stockholder, this Agreement constitutes the legal, valid and binding obligation of Uroplasty, enforceable against Uroplasty in accordance with its terms, except (i) to the extent limited by applicable bankruptcy, insolvency or similar laws affecting creditors’ rights and (ii) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought. Uroplasty has the corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. The execution and delivery by Uroplasty of this Agreement and the consummation by Uroplasty of the transactions contemplated hereby have been duly and validly authorized by Uroplasty and no other corporate proceedings on the part of Uroplasty are necessary to authorize this Agreement or to consummate the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by Uroplasty.

ARTICLE V.

Term and Termination

This Agreement will become effective upon its execution by the Stockholders and Uroplasty. This Agreement and each Proxy will terminate upon the earliest of (a) the Effective Time (as defined in the Merger Agreement), (b) the termination of the Merger Agreement in accordance with Article 8 thereof, or (c) written notice by Uroplasty to the Stockholders of the termination of this Agreement (the date of the earliest of the events described in clauses (a), (b), and (c), the “Expiration Date”). The termination of this Agreement will relieve each Stockholder from any liability for any inaccuracy in or breach of any representation, warranty or covenant contained in this Agreement. Notwithstanding the foregoing, Article VI of this Agreement shall survive any termination hereof.

 

ARTICLE VI.

General Provisions

6.1           Action in Stockholder Capacity Only. Each Stockholder is entering into this Agreement solely in such Stockholder’s capacity as a record holder and beneficial owner, as applicable, of the Subject Shares and not in such Stockholder’s capacity as a director or officer of Vision-Sciences. Nothing herein will limit or affect each Stockholder’s ability to act as an officer or director of Vision-Sciences.

6.2           No Ownership Interest. Nothing contained in this Agreement will be deemed to vest in Uroplasty or any of its Affiliates any direct or indirect ownership or incidents of ownership of or with respect to the Subject Shares. All rights, ownership and economic benefits of and relating to the Subject Shares will remain and belong to each Stockholder, and neither Uroplasty nor any of its Affiliates will have any authority to manage, direct, superintend, restrict, regulate, govern or administer any of the policies or operations of Vision-Sciences or exercise any power or authority to direct any Stockholder in the voting of any of the Subject Shares, except as otherwise expressly provided herein or in the Merger Agreement.

6.3           Notices. All notices, consents, waivers and other communications under this Agreement must be in writing (including facsimile or similar writing) and must be given:

If to Uroplasty, to:

5420 Feltl Road

Minnetonka, MN 55343

		Facsimile:	(952) 426-6152

		Attention:	Brett Reynolds

		Email:	Brett.Reynolds@uroplasty.com

with copies (which shall not constitute notice) to:

Oppenheimer Wolff & Donnelly LLP

Campbell Mithun Tower – Suite 2000

222 South Ninth Street

Minneapolis, MN 55402

		Facsimile:	(612) 607-7100

		Attention:	William E. McDonald, Esq.

Brett R. Hanson, Esq.

		Email:	wmcdonald@oppenheimer.com

bhanson@oppenheimer.com

If to a Stockholder, to such Stockholder’s address set forth on Schedule A,

or such other address or facsimile number as a party may hereafter specify for the purpose by notice to the other parties hereto. Each notice, consent, waiver or other communication under this Agreement shall be deemed to have been given (a) when personally delivered, (b) the day following the day (except if not a Business Day then the next Business Day) on which the same has been delivered prepaid to a reputable national overnight air courier service, (c) the third (3rd) Business Day following the day on which the same is sent by certified or registered mail, postage prepaid or (d) when sent by electronic mail; provided the notice, consent, waiver or communication shall be confirmed by the same being sent by certified or registered mail.

 

6.4           Further Actions. Upon the request of any party to this Agreement, the other party will (a) furnish to the requesting party any additional information, (b) execute and deliver, at their own expense, any other documents and (c) take any other actions as the requesting party may reasonably require to more effectively carry out the intent of this Agreement. Each Stockholder hereby agrees that Uroplasty and Vision-Sciences may publish and disclose in the Registration Statement and Joint Proxy Statement (including all documents and schedules filed with the SEC) such Stockholder’s identity and ownership of Subject Shares and the nature of such Stockholder’s commitments, arrangements, and understandings under this Agreement and may further file this Agreement as an exhibit to the Registration Statement or in any other filing made by Uroplasty and/or Vision-Sciences with the SEC relating to the Merger Agreement or the transactions contemplated thereby. Each Stockholder agrees to notify Uroplasty promptly of any additional shares of capital stock of Vision-Sciences of which such Stockholder becomes the record or beneficial owner after the date of this Agreement.

6.5           Entire Agreement and Modification. This Agreement, the Proxy and any other documents delivered by the parties in connection herewith constitute the entire agreement among the parties hereto and supersede all other prior agreements and understandings, both written and oral, among or between any of the parties hereto with respect to the subject matter hereof and constitute (along with the documents delivered pursuant to this Agreement) a complete and exclusive statement of the terms of the agreement between the parties with respect to its subject matter. This Agreement may not be amended, supplemented or otherwise modified except by a written document executed by the party against whose interest the modification will operate. The parties will not enter into any other agreement inconsistent with the terms and conditions of this Agreement and the Proxy, or that addresses any of the subject matters addressed in this Agreement and the Proxy.

6.6           Drafting and Representation. The parties agree that the terms and language of this Agreement were the result of negotiations between the parties and, as a result, there will be no presumption that any ambiguities in this Agreement will be resolved against any party. Any controversy over construction of this Agreement will be decided without regard to events of authorship or negotiation.

6.7           Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction will, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without affecting the validity or enforceability of the remaining provisions hereof. Any such prohibition or unenforceability in any jurisdiction will not invalidate or render unenforceable such provision in any other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable, the provision will be interpreted to be only so broad as is enforceable.

6.8           No Third-Party Rights. Each Stockholder may not assign any of his or her rights or delegate any of its obligations under this Agreement without the prior written consent of Uroplasty, except as permitted pursuant to Section 2.5(a) hereof. Uroplasty may not assign any of its rights or delegate any of its obligations under this Agreement with respect to each Stockholder without the prior written consent of such Stockholder. This Agreement will apply to, be binding in all respects upon, and inure to the benefit of each of the respective successors, personal or legal representatives, heirs, distributes, devisees, legatees, executors, administrators and permitted assigns of each Stockholder and the successors and permitted assigns of Uroplasty. Nothing expressed or referred to in this Agreement will be construed to give any person, other than the parties to this Agreement, any legal or equitable right, remedy or claim under or with respect to this Agreement or any provision of this Agreement except such rights as may inure to a successor or permitted assignee under this Section.

 

6.9           Enforcement of Agreement. Each Stockholder acknowledges and agrees that Uroplasty could be damaged irreparably if any of the provisions of this Agreement are not performed in accordance with their specific terms and that any breach of this Agreement by such Stockholder could not be adequately compensated by monetary damages. Accordingly, each Stockholder agrees that, (a) he or she will waive, in any action for specific performance, the defense of adequacy of a remedy at law, and (b) in addition to any other right or remedy to which Uroplasty may be entitled, at law or in equity, Uroplasty will be entitled to enforce any provision of this Agreement by a decree of specific performance and to temporary, preliminary and permanent injunctive relief to prevent breaches or threatened breaches of any of the provisions of this Agreement, without posting any bond or other undertaking.

6.10         Waiver. The rights and remedies of the parties to this Agreement are cumulative and not alternative. Neither any failure nor any delay by a party in exercising any right, power or privilege under this Agreement, the Proxy or any of the documents referred to in this Agreement will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege will preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege. To the maximum extent permitted by applicable Law, (a) no claim or right arising out of this Agreement, the Proxy or any of the documents referred to in this Agreement can be discharged by one party, in whole or in part, by a waiver or renunciation of the claim or right unless in a written document signed by the other party, (b) no waiver that may be given by a party will be applicable except in the specific instance for which it is given, and (c) no notice to or demand on one party will be deemed to be a waiver of any obligation of that party or of the right of the party giving such notice or demand to take further action without notice or demand as provided in this Agreement, the Proxy or the documents referred to in this Agreement.

6.11         Governing Law. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto will be governed by, construed under and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts or choice of law.

6.12         Consent to Jurisdiction. Any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement, the Proxy or the transactions contemplated hereby or thereby will be brought exclusively in the United States District Court for the District of Delaware or, if such court does not have jurisdiction over the subject matter of such proceeding or if such jurisdiction is not available, in the Court of Chancery of the State of Delaware, County of New Castle, and each of the parties hereby consents to the exclusive jurisdiction of those courts (and of the appropriate appellate courts therefrom) in any suit, action or proceeding and irrevocably waives, to the fullest extent permitted by Applicable Law, any objection which it may now or hereafter have to the laying of the venue of any suit, action or proceeding in any of those courts or that any suit, action or proceeding which is brought in any of those courts has been brought in an inconvenient forum. Process in any suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any of the named courts. Without limiting the foregoing, each party agrees that service of process on it by notice as provided in Section 6.3 will be deemed effective service of process. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.

 

6.13         Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original, but all of which, taken together, will constitute one and the same instrument. This Agreement may be executed by facsimile signature (including signatures in Adobe PDF or similar format).

6.14         Expenses. Except as otherwise provided in this Agreement, all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby will be paid by the party incurring such expenses.

6.15         Headings; Construction. The headings contained in this Agreement are for reference purposes only and will not affect in any way the meaning or interpretation of this Agreement. In this Agreement (a) words denoting the singular include the plural and vice versa, (b) ”it” or “its” or words denoting any gender include all genders and (c) the word “including” means “including without limitation,” whether or not expressed.

[Signature page follows]

 

IN WITNESS WHEREOF, the parties hereto have caused this Voting Agreement to be duly executed as of the day and year first above written.

	
UROPLASTY:

	
UROPLASTY, INC. 

	 	 	 
	
 

	By:	
/s/ Robert Kill

	 	 	
Name: Robert Kill

	 	 	
Title: President, Chief Executive Officer and

	 	 	
Chairman of the Board

	 	 	 
	
STOCKHOLDERS:

	 	 
	 	 	 
	 	
/s/ David W. Anderson

	 	
Name: David W. Anderson

	 	 	 
	 	
Additional Signature (if held jointly):

	 	 	 
	 	
   

	
   

	 	
(If held jointly)

	 	 	 
	 	
   

	
   

	 	
(Printed Full Name)

	 	 	 
	 	
/s/ Mark Landman

	 	
Name: Mark Landman

	 	 	 
	 	
Additional Signature (if held jointly):

	 	 	 
	 	
   

	
   

	 	
(If held jointly)

	 	 	 
	 	
   

	
   

	 	
(Printed Full Name)

 

STOCKHOLDERS:

	 	
/s/ Katsumi Oneda

	 	
Name: Katsumi Oneda

	 	 
	 	
Additional Signature (if held jointly):

	 	 
	 	
   

	 	
(If held jointly)

	 	 
	 	
   

	 	
(Printed Full Name)

	 	 
	 	
/s/ Jitendra Patel

	 	
Name: Jitendra Patel

	 	 
	 	
Additional Signature (if held jointly):

	 	 
	 	    
	 	
(If held jointly)

	 	 
	 	    
	 	
(Printed Full Name)

	 	 
	 	
/s/ Cheryl Pegus

	 	
Name: Cheryl Pegus

	 	 
	 	
Additional Signature (if held jointly):

	 	 
	 	
   

	 	
(If held jointly)

	 	 
	 	
   

	 	
(Printed Full Name)

 

STOCKHOLDERS:

	 	
/s/ Lewis C. Pell

	 	
Name: Lewis C. Pell

	 	 
	 	
Additional Signature (if held jointly):

	 	 
	 	
   

	 	
(If held jointly)

	 	 
	 	
   

	 	
(Printed Full Name)

	 	 
	 	
/s/ John Rydzewski

	 	
Name: John Rydzewski

	 	 
	 	
Additional Signature (if held jointly):

	 	 
	 	    
	 	
(If held jointly)

	 	 
	 	    
	 	
(Printed Full Name)

	 	 
	 	
/s/ Gary Siegel

	 	
Name: Gary Siegel

	 	 
	 	
Additional Signature (if held jointly):

	 	 
	 	
   

	 	
(If held jointly)

	 	 
	 	
   

	 	
(Printed Full Name)

 

STOCKHOLDERS:

	 	
/s/ Howard Zauberman

	 	
Name: Howard Zauberman

	 	 
	 	
Additional Signature (if held jointly):

	 	 
	 	
   

	 	
(If held jointly)

	 	 
	 	
   

	 	
(Printed Full Name)

 

SCHEDULE A

	
NAME AND

ADDRESS OF STOCKHOLDER

	
VISION-SCIENCES SHARES

BENEFICIALLY OWNED

 

EXHIBIT A

IRREVOCABLE PROXY

From and after the date hereof and until the Expiration Date (as defined below), the undersigned stockholder (“Stockholder”) of Vision-Sciences, Inc., a Delaware corporation (“Vision-Sciences”), hereby irrevocably (to the full extent permitted by Section 212 of the Delaware General Corporation Law) grants to, and appoints, Uroplasty, Inc., a Minnesota corporation (“Uroplasty”), and any designee of Uroplasty, and each of them individually, as the sole and exclusive attorney and proxy of the undersigned, with full power of substitution and resubstitution, to vote the Subject Shares (as defined in the Voting Agreement) of the Stockholder, or grant a consent or approval in respect of the Subject Shares of the Stockholder, in a manner consistent with Section 2.2 of the Voting Agreement (as defined below). Upon the undersigned’s execution of this Proxy, any and all prior proxies given by the undersigned with respect to any Subject Shares relating to the voting rights expressly provided herein are hereby revoked and the undersigned agrees not to grant any subsequent proxies with respect to the Subject Shares relating to such voting rights at any time prior to the Expiration Date.

This Proxy is irrevocable, is coupled with an interest and is granted pursuant to that certain Voting Agreement (as amended from time to time, the “Voting Agreement”) of even date herewith, by and among Uroplasty and the Stockholders, and is granted in consideration of Uroplasty entering into the Merger Agreement (as defined in the Voting Agreement). As used herein, the term “Expiration Date,” and all capitalized terms used herein and not otherwise defined, will have the meanings set forth in the Voting Agreement. The Stockholder agrees that this proxy will be irrevocable until the Expiration Date and is coupled with an interest sufficient at law to support an irrevocable proxy and given to Uroplasty as an inducement to enter into the Merger Agreement and, to the extent permitted under applicable Law, will be valid and binding on any person to whom the Stockholder may transfer any of his, her or its Subject Shares in breach of the Voting Agreement. The Stockholder hereby ratifies and confirms all that such irrevocable proxy may lawfully do or cause to be done by virtue hereof.

The attorneys and proxies named above, and each of them, are hereby authorized and empowered by the undersigned, at any time prior to the Expiration Date, to act as the undersigned’s attorney and proxy to vote the Subject Shares, and to exercise all voting and other rights of the undersigned with respect to the Subject Shares (including, without limitation, the power to execute and deliver written consents pursuant to Section 228 of the Delaware General Corporation Law), at every annual, special or adjourned meeting of the stockholders of Vision-Sciences and in every written consent in lieu of such meeting in a manner consistent with Section 2.2 of the Voting Agreement.

This Proxy will be binding upon the heirs, estate, executors, personal representatives, successors and assigns of the Stockholder (including any transferee of any of the Subject Shares), and all authority herein conferred or agreed to be conferred will survive the death or incapacity of the Stockholder.

If any provision of this Proxy or any part of any such provision is held under any circumstances to be invalid or unenforceable in any jurisdiction, then (a) such provision or part thereof will, with respect to such circumstances and in such jurisdiction, be deemed amended to conform to applicable laws so as to be valid and enforceable to the fullest possible extent, (b) the invalidity or unenforceability of such provision or part thereof under such circumstances and in such jurisdiction will not affect the validity or enforceability of such provision or part thereof under any other circumstances or in any other jurisdiction, and (c) the invalidity or unenforceability of such provision or part thereof will not affect the validity or enforceability of the remainder of such provision or the validity or enforceability of any other provision of this Proxy. Each provision of this Proxy is separable from every other provision of this Proxy, and each part of each provision of this Proxy is separable from every other part of such provision.

 

Dated: December __, 2014

	 	
   

	 	
(Signature of Stockholder)

	 	 
	 	
   

	 	
(Print Name of Stockholder)

	 	 
	 	
Number of Subject Shares owned of record or Beneficially Owned as of the date of this Proxy:Ex 4.1 Fifty-Seventh Supplemental Indenture

Exhibit 4.1

AVISTA CORPORATION
TO
CITIBANK, N.A.
As Successor Trustee under
Mortgage and Deed of Trust,
dated as of June 1, 1939
________________________
Fifty-seventh Supplemental Indenture
Providing among other things for a series of bonds designated  
“First Mortgage Bonds, 4.11% Series due 2044” 
Due December 1, 2044
________________________
Dated as of December 1, 2014

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FIFTY-SEVENTH SUPPLEMENTAL INDENTURE
THIS INDENTURE, dated as of the 1st day of December, 2014, 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 388 Greenwich Street, 14th Floor, New York, New York  10013 (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 “Fifty-seventh 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 Original Mortgage, as theretofore supplemented and amended) 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 amendatory thereof, and has issued the series of bonds, set forth in Exhibit A hereto (the Original Mortgage, as supplemented and amended by the First through Fifty-sixth Supplemental Indentures and, if the context shall so require, as to be supplemented by this Fifty-seventh Supplemental Indenture, being herein sometimes called the “Mortgage”); and
WHEREAS the Original Mortgage and the First through Fifty-fifth Supplemental Indentures have been appropriately filed or recorded in various official records in the States of Washington, Idaho, Montana and Oregon, as set forth in the First through Fifty-sixth Supplemental Indentures and the Instrument of Further Assurance, dated December 15, 2001, hereinafter referred to; and
WHEREAS the Fifty-sixth Supplemental Indenture, dated as of April 1, 2014, has been appropriately filed or recorded in the various official records in the States of Washington, Idaho, Montana and Oregon, as set forth in Exhibit B hereto; and

501458568v6

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 Montana and Oregon; 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 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, 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 120 of the Original Mortgage, as heretofore amended, provides that, without the consent of any holders of bonds, the Company and the Trustee, at any time and from time to time, may enter into indentures supplemental to the Original Mortgage for various purposes set forth therein, including, without limitation, to cure ambiguities or correct defective or inconsistent provisions or to make other changes therein that shall not adversely affect the interests of the holders of bonds of any series in any material respect or to establish the form or terms of bonds of any series as contemplated by Article II; and
WHEREAS the Company now desires to create a new series of bonds; and
WHEREAS Section 8 of the Original Mortgage, as heretofore amended, 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 or by Treasurer’s Certificate, or shall be set forth in an indenture supplemental to the Original Mortgage; that the form of such series, as so established, 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 Company 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 the execution and delivery by the Company of this Fifty-seventh Supplemental Indenture and the terms of the Bonds of the Fifty-eighth 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 Fifty-seventh 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, 

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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 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 Original 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 Company hereby acknowledges that, as of the date of this Fifty-seventh Supplemental Indenture, the real property located in the State of Washington, taken as a whole, that is so conveyed or intended to be so 

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conveyed under the Mortgage is not used principally for agricultural purposes.
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.
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 of the Original Mortgage (except any 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 of the Mortgage 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 

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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 Fifty-seventh 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:

 ARTICLE I
Fifty-eighth Series of Bonds
SECTION 1.    (I)    There shall be a series of bonds designated “First Mortgage Bonds, 4.11% Series due 2044” (herein sometimes referred to as the “Bonds of the Fifty-eighth Series”), each of which shall also bear the descriptive title First Mortgage Bond and the form thereof is set forth on Exhibit D hereto.  The Bonds of the Fifty-eighth 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 Original Mortgage provided.
(II)    The Bonds of the Fifty-eighth Series shall have the following terms and characteristics:
(a)    the Bonds of the Fifty-eighth Series shall be limited in aggregate principal amount to $60,000,000 (except for Bonds of such series authenticated and delivered upon transfer of or in exchange for, or in lieu of, other Bonds of such series);
(b)    the principal of Bonds of the Fifty-eighth Series shall (unless theretofore paid) be payable on the Stated Maturity Date (as hereinafter defined);

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(c)    the Bonds of the Fifty-eighth Series shall bear interest at the rate of four and eleven one hundredths percentum (4.11%) per annum; interest on such Bonds shall accrue from and including December 18, 2014, 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 hereinafter 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;
(d)    the principal of and premium, if any, and interest on each Bond of the Fifty-eighth 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 Fifty-eighth 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 (as hereinafter defined) 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; and, provided, further, that, so long as any Bond of the Fifty-eighth Series shall be held by (i) the original purchaser thereof under the Bond Purchase Agreement (as hereinafter defined) or (ii) any other Institutional Investor (as hereinafter defined) that (A) is the direct or indirect transferee of such Bond from such original purchaser and (B) has made the same agreement relating to such Bond as such original purchaser made in Section 8.2 of the Bond Purchase Agreement, payment of principal of and premium, if any, and interest on such Bond of the Fifty-eighth Series shall be payable in the manner specified in the Bond Purchase Agreement.
(e)    (i)    Prior to June 1, 2044, the Bonds of the Fifty-eighth Series shall be redeemable in whole at any time, or in part from time to time, at the option of the Company at a redemption price equal to the greater of
(A)    100% of the principal amount of the Bonds being redeemed, and
(B)    the sum of the present values of the remaining scheduled payments of principal of and interest (not including any portion of any scheduled payment of interest which accrued prior to the redemption date) on the Bonds being redeemed discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at a discount rate equal to the Treasury Yield (as hereinafter defined) plus 50 basis points,
plus, in the case of either (A) or (B) above, whichever is applicable, accrued interest on such Bonds to the date of redemption.

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(ii)    On or after June 1, 2044, the Bonds of the Fifty-eighth Series shall be redeemable in whole at any time, or in part from time to time, at the option of the Company at a redemption price equal to 100% of the principal amount of the Bonds being redeemed plus accrued interest on such Bonds to the date of redemption.
(f)    (i)    “Treasury Yield” means, with respect to any redemption of Bonds of the Fifty-eighth Series, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price.  The Treasury Yield shall be calculated as of the third business day preceding the earlier of (A) the date notice of redemption is mailed to holders of Bonds of the Fifty-eighth Series and (B) the date irrevocable arrangements with the Trustee for the mailing of such notice shall have been made, as the case may be (the “Calculation Date”).
(ii)    “Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Bonds of the Fifty-eighth Series that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Bonds.
(iii)    “Comparable Treasury Price” means (A) the average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) on the Calculation Date, as set forth in the H.15 Daily Update of the Federal Reserve Bank of New York or (B) if such release (or any successor release) is not published or does not contain such prices on such business day, the Reference Treasury Dealer Quotation for the Calculation Date.
(iv)    “H.15(519)” means the weekly statistical release entitled “Statistical Release H.15 (519)”, or any successor publication, published by the Board of Governors of the Federal Reserve System.
(v)    “H.15 Daily Update” means the daily update of H.15(519) available through the worldwide website of the Board of Governors of the Federal Reserve System or any successor site or publication.
(vi)    “Independent Investment Banker” means any independent investment banking institution of national standing appointed by the Company and reasonably acceptable to the Trustee.
(vii)    “Reference Treasury Dealer Quotation” means, with respect to the Reference Treasury Dealer, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each 

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case as a percentage of its principal amount and quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m. on the Calculation Date).
(viii)    “Reference Treasury Dealer” means a primary U.S. Government securities dealer in New York City appointed by the Company and reasonably acceptable to the Trustee.
(g)    If less than all of the outstanding Bonds of the Fifty-eighth Series are to be redeemed, the principal amount to be redeemed shall be prorated among all of the holders of such Bonds in the proportion that their respective holdings bear to the aggregate principal amount of such Bonds outstanding on the date of selection.  The portion of any Bond to be redeemed shall be in the principal amount of $1,000 or an integral multiple thereof and such rounding allocations as may be requisite for this purpose shall be made by the Trustee in its uncontrolled discretion.  The Trustee shall promptly notify the Company in writing of the distinctive numbers of the Bond and the portions thereof so selected for redemption.
(h)    Except as provided in this subsection (II) of Section 1, the Bonds of the Fifty-eighth Series shall not be redeemable prior to the Stated Maturity Date.
(III)    (a)    At the option of the registered owner, any Bonds of the Fifty-eighth 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 Fifty-eighth Series shall be transferable, upon the surrender thereof for cancellation, together with a written instrument of transfer in form approved by the 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 Fifty-eighth 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 Original Mortgage, but the Company hereby waives any right to make a charge in addition thereto or any exchange or transfer of Bonds of the Fifty-eighth Series; provided, however, that the Company shall not be required to make any transfer or exchange of any Bonds of the Fifty-eighth 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 Fifty-eighth Series which shall have been selected for redemption in whole or in part.

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Unless and until the Company shall have delivered to the Trustee a written order to the contrary, the Bonds of the Fifty-eighth Series shall bear a legend as to restrictions on transfer substantially as set forth below:
The Bonds evidenced hereby have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered, sold, pledged or otherwise transferred in contravention of the Securities Act.
(IV)    For all purposes of this Fifty-seventh Supplemental Indenture, except as otherwise expressly provided or unless the context otherwise requires, the terms listed below, when used with respect to the Bonds of the Fifty-eighth Series, shall have the meanings specified below:
“Bond Purchase Agreement” means the Bond Purchase Agreement, dated October 22, 2014, between the Company and the purchasers listed on Schedule A thereto.
“Business Day” means any day, other than a Saturday or Sunday, which is not a day on which banking institutions or trust companies in The City of New York, New York are generally authorized or required by law, regulation or executive order to remain closed.
“Institutional Investor” means (a) any original purchaser of a Bond of the Fifty-eighth Series, (b) any holder of a Bond of the Fifty-eighth Series holding (together with one or more of its affiliates) more than $1,000,000 in aggregate principal amount of the Bonds of the Fifty-eighth Series, and (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form.
“Interest Payment Date” means June 1 and December 1 in each year, commencing June 1, 2015.
“Maturity” means the date on which the principal of the Bonds of the Fifty-eighth 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 close of business on the seventh Business Day preceding such Interest Payment Date.
“Stated Maturity Date” means December 1, 2044.
(V)    Notwithstanding the provisions of Section 106 of the Original Mortgage, as amended, the Company shall not cause any Bonds of the Fifty-eighth Series, or any portion of the principal amount thereof, to be deemed to have been paid as provided 

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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, as amended, 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 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.
(VI)    Anything in this Fifty-seventh Supplemental Indenture or the Bonds of the Fifty-eighth Series to the contrary notwithstanding, any payment of principal of or premium, if any, or interest on any Bond of the Fifty-eighth Series that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; provided, however, that if the Maturity date of any Bond is a date other than a Business Day, the payment otherwise due at Maturity shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.
(VII)    The Bonds of the Fifty-eighth 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.
ARTICLE II
Outstanding Bonds

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Upon the delivery of this Fifty-seventh Supplemental Indenture, Bonds of the Fifty-eighth Series in an aggregate principal amount of $60,000,000 are to be issued and will be Outstanding, in addition to $1,776,700,000 aggregate principal amount of bonds of prior series Outstanding at the date of delivery of this Fifty-seventh Supplemental Indenture.
ARTICLE III
Miscellaneous Provisions
SECTION 1.    The terms defined in the Original Mortgage shall, for all purposes of this Fifty-seventh 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 Fifty-seventh 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 Fifty-seventh 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 Fifty-seventh Supplemental Indenture.
SECTION 3.    Whenever in this Fifty-seventh 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 Fifty-seventh 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 Fifty-seventh 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, the holders of the Bonds Outstanding under the Mortgage, any right, remedy or claim under or by reason of this Fifty-seventh Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Fifty-seventh 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 Outstanding under the Mortgage.

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SECTION 5.    This Fifty-seventh 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.
SECTION 6.    The titles of the several Articles of this Fifty-seventh Supplemental Indenture shall not be deemed to be any part thereof.
________________________

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IN WITNESS WHEREOF, on the 18th day of December, 2014, 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 18th day of December, 2014, 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:
	/s/ MARK T. THIES

	 
	Name:
	Mark T. Thies

	 
	Title:
	Senior Vice President, Chief Financial Officer and Treasurer

Attest:
 
	
		
	/s/ SUSAN Y. FLEMING

	Name:
	Susan Y. Fleming

	Title:
	Assistant Corporate Secretary

Executed, sealed and delivered 
by AVISTA CORPORATION 
in the presence of:
	
		
	/s/ RICHARD STEVENS

	Name:
	Richard Stevens

	 
	 

	 
	 

	/s/ DANIEL LOUTZENHISER

	Name:
	Daniel Loutzenhiser

13
501458568v6

	
			
	CITIBANK, N.A., AS TRUSTEE

	 
	 
	 

	By:
	/s/ WAFAA ORFY

	 
	Name:
	Wafaa Orfy

	 
	Title:
	Vice President

Attest:
 
	
		
	/s/ LOUIS PISCITELLI

	Name:
	Louis Piscitelli

	Title:
	Vice President

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

	Name:
	John Hannon

	 
	 

	 
	 

	/s/ KAREN SCHLUTER

	Name:
	Karen Schluter

14
501458568v6

STATE OF WASHINGTON )
) ss.:
COUNTY OF SPOKANE    )
On the 18th day of December, 2014, before me personally appeared Mark T. Thies, to me known to be a Senior Vice President and the Chief Financial Officer 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 18th day of December, 2014, before me, a Notary Public in and for the State and County aforesaid, personally appeared Mark T. Thies, 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.
	
	
	/s/ DEBBIE DEUBEL

	Notary Public

	 

	 

	DEBBIE DEUBEL

	Notary Public

	State of Washington

	Commission Expires May 9, 2017

15
501458568v6

STATE OF NEW YORK    )
) ss.:
COUNTY OF NEW YORK    )
On the 15th day of December, 2014 before me personally appeared Wafaa Orfy, 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 she was authorized to execute said instrument and that the seal affixed is the corporate seal of said Corporation.
On the 15th day of December, 2014, before me, a Notary Public in and for the State and County aforesaid, personally appeared Wafaa Orfy, 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.
	
	
	/s/ NOREEN SANTOS

	Notary Public

	 

	 

	NOREEN IRIS SANTOS

	Notary Public

	State of Washington

	Commission Expires September 27, 2018

16
501458568v6

EXHIBIT A
MORTGAGE, SUPPLEMENTAL INDENTURES 
AND SERIES OF BONDS
	
							
	MORTGAGE OR SUPPLEMENTAL INDENTURE
	DATED AS OF
	SERIES
	PRINCIPAL AMOUNT ISSUED
	PRINCIPAL AMOUNT OUTSTANDING

	NO.
	DESIGNATION

	Original
	June 1, 1939
	1
	3-1/2% Series due 1964
	$22,000,000
	None

	First
	October 1, 1952
	2
	3-1/2% Series due 1982
(changed to 3-3/4% in Twelfth Supplemental Indenture)
	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 1990-1992
	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

A-1
501458568v6

	
							
	MORTGAGE OR SUPPLEMENTAL INDENTURE
	DATED AS OF
	SERIES
	PRINCIPAL AMOUNT ISSUED
	PRINCIPAL AMOUNT OUTSTANDING

	NO.
	DESIGNATION

	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 
 
23
	7-1/8% Series due 2013 
 
7-2/5% Series due 2016
	66,700,000 
 
17,000,000
	None 
 
None

	Twenty-Sixth
	April 1, 1993
	24
	Secured Medium-Term Notes, Series A ($250,000,000 authorized)
	250,000,000
	36,000,000

	Twenty-Seventh
	January 1, 1994
	25
	Secured Medium-Term Notes, Series B ($250,000,000 authorized)
	161,000,000
	None

	Twenty-Eighth
	September 1, 2001
	26
	Collateral Series due 2002
	220,000,000
	None

	Twenty-Ninth
	December 1, 2001
	27
	7.75% Series due 2007
	150,000,000
	None

	Thirtieth
	May 1, 2002
	28
	Collateral Series due 2003
	225,000,000
	None

	Thirty-first
	May 1, 2003
	29
	Collateral Series due 2004
	245,000,000
	None

	Thirty-second
	September 1, 2003
	30
	6.125% Series due 2013
	45,000,000
	None

	Thirty-third
	May 1, 2004
	31
	Collateral Series due 2005
	350,000,000
	None

	Thirty-fourth
	November 1, 2004
	32
	5.45% Series due 2019
	90,000,000
	90,000,000

	Thirty-fifth
	December 1, 2004
	33
	Collateral Series 2004A
	88,850,000
	25,000,000

	Thirty-sixth
	December 1, 2004
	34 
 
35
	Collateral Series 2004B 
 
Collateral Series 2004C
	66,700,000 
 
17,000,000
	None 
 
None

	Thirty-seventh
	December 1, 2004
	36
	Collateral Series 2004D
	350,000,000
	None

	Thirty-eighth
	May 1, 2005
	37
	Collateral Series 2005B
	66,700,000
	None

	 
	 
	38
	Collateral Series 2005C
	17,000,000
	None

	Thirty-ninth
	November 1, 2005
	39
	6.25% Series due 2035
	100,000,000 
 
50,000,000
	100,000,000 
 
50,000,000

	Fortieth
	April 1, 2006
	40
	Collateral Series due 2011
	320,000,000
	None

	Forty-first
	December 1, 2006
	41
	5.70% Series due 2037
	150,000,000
	None

	Forty-second
	April 1, 2008
	42
	5.95% Series due 2018
	250,000,000
	250,000,000

	Forty-third
	November 1, 2008
	43
	Collateral Series 2008A
	200,000,000
	None

	Forty-fourth
	December 1, 2008
	44
	7.25% Series due 2013
	30,000,000
	None

	Forty-fifth
	December 1, 2008
	45
	Collateral Series 2008B
	17,000,000
	None

A-2
501458568v6

	
							
	MORTGAGE OR SUPPLEMENTAL INDENTURE
	DATED AS OF
	SERIES
	PRINCIPAL AMOUNT ISSUED
	PRINCIPAL AMOUNT OUTSTANDING

	NO.
	DESIGNATION

	Forty-sixth
	September 1, 2009
	46
	5.125% Series due 2022
	250,000,000
	250,000,000

	Forty-seventh
	November 1, 2009
	47
	Collateral Series 2009A
	75,000,000
	None

	Forty-eighth
	December 1, 2010
	48
49
	Collateral Series 2010A
Collateral Series 2010B
	66,700,000
17,000,000
	66,700,000
17,000,000

	Forty-ninth
	December 1, 2010
	50
51
	3.89% Series due 2020
5.55% Series due 2040
	52,000,000
35,000,000
	52,000,000
35,000,000

	Fiftieth
	December 1, 2010
	52
	1.68% Series due 2013
	50,000,000
	None

	Fifty-first
	February 1, 2011
	53
	Collateral Series 2011A
	400,000,000
	None

	Fifty-second
	August 1, 2011
	 
	None
	 
	 

	Fifty-third
	December 1, 2011
	54
	4.45% Series due 2041
	85,000,000
	85,000,000

	Fifty-fourth
	November 1, 2012
	55
	4.23% Series due 2047
	80,000,000
	80,000,000

	Fifty-fifth
	August 1, 2013
	56
	Collateral Series 2013A
	90,000,000
	90,000,000

	Fifty-sixth
	April 1, 2014
	57
	Collateral Series 2014A
	400,000,000
	400,000,000

	TOTAL OUTSTANDING
	$1,776,700,000

A-3
501458568v6

EXHIBIT B
FILING AND RECORDING OF 
FIFTY-SIXTH SUPPLEMENTAL INDENTURE

	
											
	FILING IN STATE OFFICES

	 

	 
	 
	 
	Financing Statement

	State
	Office of
	Date
	Document Number

	Washington
	Secretary of State
	6/4/14
	2014-156-9944-9

	Idaho
	Secretary of State
	6/2/14
	B 2014-1140828-0

	Montana
	Secretary of State
	6/3/14
	140603409373

	Oregon
	Secretary of State
	6/4/14
	90138460

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	RECORDING IN COUNTY OFFICES

	 
	 
	 
	 

	 
	 
	Real Estate Mortgage Records
	Financing

	 
	 
	 
	Statement

	 
	 
	 
	Document
	 
	 
	Document

	County
	Office of
	Date
	Number
	Book
	Page
	Number

	Washington
	 
	 
	 
	 
	 
	 

	Adams
	Auditor
	5/5/14
	307048
	N/A
	N/A
	N/A

	Asotin
	Auditor
	5/5/14
	340484
	N/A
	N/A
	N/A

	Benton
	Auditor
	5/5/14
	2014-010426
	N/A
	N/A
	N/A

	Douglas
	Auditor
	5/5/14
	3177909
	N/A
	N/A
	N/A

	Ferry
	Auditor
	5/5/14
	0283355
	N/A
	N/A
	N/A

	Franklin
	Auditor
	5/5/14
	1814300
	N/A
	N/A
	N/A

	Garfield
	Auditor
	5/5/14
	20140168
	N/A
	N/A
	N/A

	Grant
	Auditor
	5/5/14
	133260
	N/A
	N/A
	N/A

	Klickitat
	Auditor
	5/5/14
	1107993
	N/A
	N/A
	N/A

	Lewis
	Auditor
	5/5/14
	3414208
	N/A
	N/A
	N/A

	Lincoln
	Auditor
	5/5/14
	2014 0466887
	110
	1610
	N/A

	Pend Oreille
	Auditor
	5/5/14
	20140318371
	N/A
	N/A
	N/A

	Skamania
	Auditor
	5/5/14
	2014000699
	N/A
	N/A
	N/A

	Spokane
	Auditor
	5/5/14
	6302485
	N/A
	N/A
	N/A

	Stevens
	Auditor
	5/5/14
	2014 0002739
	N/A
	N/A
	N/A

	Thurston
	Auditor
	5/20/14
	4392273
	N/A
	N/A
	N/A

	Whitman
	Auditor
	5/5/15
	723780
	N/A
	N/A
	N/A

	 
	 
	 
	 
	 
	 
	 

	Idaho
	 
	 
	 
	 
	 
	 

	Benewah
	Recorder
	5/5/14
	268472
	N/A
	N/A
	N/A

	Bonner
	Recorder
	5/5/14
	858998
	N/A
	N/A
	N/A

	Boundary
	Recorder
	5/5/14
	260676
	N/A
	N/A
	N/A

	Clearwater
	Recorder
	5/5/14
	224318
	N/A
	N/A
	N/A

	Idaho
	Recorder
	5/5/14
	494509
	N/A
	N/A
	N/A

	Kootenai
	Recorder
	5/5/14
	2454914000
	N/A
	N/A
	N/A

	Latah
	Recorder
	5/5/14
	565351
	N/A
	N/A
	N/A

B-1
501458568v6

	
											
	 
	 
	 
	 
	 
	 
	 
	 
	 

	RECORDING IN COUNTY OFFICES

	 
	 
	 
	 

	 
	 
	Real Estate Mortgage Records
	Financing

	 
	 
	 
	Statement

	 
	 
	 
	Document
	 
	 
	Document

	County
	Office of
	Date
	Number
	Book
	Page
	Number

	Idaho (cont.)
	 
	 
	 
	 
	 
	 

	Lewis
	Recorder
	5/5/14
	142361
	N/A
	N/A
	N/A

	Nez Perce
	Recorder
	5/5/14
	821423
	N/A
	N/A
	N/A

	Shoshone
	Recorder
	5/5/14
	477168
	N/A
	N/A
	N/A

	 
	 
	 
	 
	 
	 
	 

	Montana
	 
	 
	 
	 
	 
	 

	Big Horn
	Clerk & Recorder
	5/6/14
	348686
	130
	554-583
	N/A

	Broadwater
	Clerk & Recorder
	5/6/14
	171115
	156
	188
	N/A

	Golden Valley
	Clerk & Recorder
	5/5/14
	81805
	M
	17144
	N/A

	Meagher
	Clerk & Recorder
	5/6/14
	141239
	N/A
	N/A
	N/A

	Mineral
	Clerk & Recorder
	5/5/14
	112162
	N/A
	N/A
	N/A

	Rosebud
	Clerk & Recorder
	5/6/14
	113122
	143MG
	1-30
	N/A

	Sanders
	Clerk & Recorder
	5/5/14
	296858
	N/A
	N/A
	N/A

	Stillwater
	Clerk & Recorder
	5/5/14
	358594
	N/A
	N/A
	N/A

	Treasure
	Clerk & Recorder
	5/5/14
	82492
	21
	162
	N/A

	Wheatland
	Clerk & Recorder
	5/5/14
	108180
	M
	25288-25317
	N/A

	Yellowstone
	Clerk & Recorder
	9/24/14
	3718829
	N/A
	N/A
	N/A

	 
	 
	 
	 
	 
	 
	 

	Oregon
	 
	 
	 
	 
	 
	 

	Douglas
	Recorder
	5/5/14
	2014-006402
	N/A
	N/A
	N/A

	Jackson
	Recorder
	5/21/14
	2014-012388
	N/A
	N/A
	N/A

	Josephine
	Recorder
	5/19/14
	2014-004995
	N/A
	N/A
	N/A

	Klamath
	Recorder
	5/7/14
	2014-004605
	N/A
	N/A
	N/A

	Morrow
	Recorder
	7/8/14
	2014-34487
	N/A
	N/A
	N/A

	Union
	Recorder
	5/16/14
	20141246
	N/A
	N/A
	N/A

	Wallowa
	Recorder
	5/6/14
	00071107
	N/A
	N/A
	N/A

B-2

EXHIBIT C
PROPERTY ADDITIONS
First
THE ADDITIONAL ELECTRIC SUBSTATIONS AND SUBSTATION SITES OF THE COMPANY, in the State of Washington, including all buildings, structures, towers, poles, equipment, appliances and devices for transforming, converting and distributing electric energy, and the lands of the Company on which the same are situated and all of the Company’s real estate and interests therein, machinery, equipment, appliances, devices, appurtenances and supplies, franchises, permits and other rights and other property forming a part of said substations or any of them, or used or enjoyed or capable of being used or enjoyed in connection with any thereof, including, but not limited to, the following situated in the State of Washington, to wit:
		
	(1)
	Spokane County, Washington: “Irvin Substation”; Property No. WA-32.082; Grantor: Hanson Industries, Inc; A parcel of land located within a portion of Section 3, Township 25 North, Range 44 East.

		
	(2)
	Spokane County, Washington: “Opportunity Substation”; Property No. WA-32-049; Grantor; Modern Electric; A tract of land being in the Northwest Quarter of Section 15, Township 25 North, Range 44 East, Spokane County, Washington.

		
	(3)
	Lincoln County, Washington: “Harrington Substation”; Property No. WA-22-038; Grantor: City of Harrington; A portion of Section 22, Township 23 North, Range 36 East, Situate in Lincoln County, Washington.

Second
ADDITIONAL PROTECTION, MITIGATION AND ENHANCEMENT PROPERTY of the Company, in the State of Idaho, real, personal, or mixed, acquired, constructed and/or installed in, on, under and/or proximate to the Company’s Clark Fork hydroelectric development (including, without limitation, the Cabinet Gorge Hydroelectric Generating Station and the Noxon Rapids Hydroelectric generating Station) for the purpose of protecting and/or enhancing wildlife (including fish and aquatic life), botanical life and/or wetlands, and/or mitigating any harm or damage thereto, and all other property, real, personal or mixed, used or enjoyed or capable of being used or enjoyed in conjunction therewith, including, but not limited to, the following in the State of Idaho to wit:
		
	(4)
	Bonner County, Idaho: “Granite Creek Mitigation Property”; Property No. ID-7B-251; Grantor: Barbara Merryman; Lot 1, Block 14, Unit 2, GRANITE CREEK PROPERTIES, according to the plat recorded in Book 2, Page 84, Bonner County, Idaho.

		
	(5)
	Bonner County, Idaho: “Trestle Creek Mitigation Property”; Property No. ID-7B-251.1; Grantor: Tom Dilatush and Debi S. Dilatush; A Tract of land lying in the S1/2 of Section 11, Township 57 North, Range 1 East, Bonner County, Idaho.

C-1
501458568v6

Third
BUSINESS OFFICE/S AND, OR REAL ESTATE, in the State of Washington, to wit:
		
	(6)
	Spokane County, Washington: “Ross Park Expansion”; Property No. WA-32-004; Grantor: Michael Jay Allen Revocable Living Trust; Lot 11, Hole’s Subdivision of Block 13,Ross Park, According to plat recorded in Volume “D” of plats, Page 78, Situate in the City of Spokane, County of Spokane, State of Washington.

		
	(7)
	Spokane County, Washington: “Ross Park Expansion”; Property No. WA-32-004; Grantor: Michael J. Allen, custodian for Justin A. Allen, and the Michael Jay Allen Revocable Living Trust; Lot 5 and the Easterly 12 feet of Lot 6, Block 13, Hole’s Subdivision of Block 13, Ross Park, According to plat recorded in Volume “B” of plats, Page 78, Spokane County, Washington.

		
	(8)
	Spokane County, Washington: “Ross Park Expansion”; Property No. WA-32-004; Grantor: Michael J. Allen; Lot 9, Hole’s Subdivision of Block 13, Ross Park, According to plat recorded in Volume “D” of plats, Page 78, Spokane County, Washington.

		
	(9)
	Spokane County, Washington: “Ross Park Expansion”; Property No. WA-32-004; Grantor: Timothy M. Taggart; Lot 2, Hole’s Subdivision of Block 13, Ross Park,  as per plat recorded in Volume “D” of Plats, Page 78, Spokane County, Washington.

C-2
501458568v6

EXHIBIT D
(Form of Bond)
PPN: 05379B C*6
AVISTA CORPORATION
First Mortgage Bond, 4.11% Series due 2044
	
		
	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 December 1, 2044
DOLLARS
and to pay the registered owner hereof interest thereon semi-annually in arrears on June 1 and December 1 in each year (each such date being hereinafter called an “Interest Payment Date”), commencing June 1, 2015, and at Maturity (as hereinafter defined), at the rate of four and eleven one hundredths percentum (4.11%) 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.  This bond shall bear interest from December 18, 2014 or from the most recent Interest Payment Date on or prior to the date of this bond to which interest on the bonds of this series has been paid.
	
			
	Dated:
	AVISTA CORPORATION

	 
	 
	 

	 
	By:
	 

	 
	Name:
	 

	 
	Title:
	 

	
		
	Attest:
	 

	Name:
	 

	Title:
	 

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 Signatory

D-1
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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 seventh Business Day 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; and provided further that, so long as this Bond shall be held by (a) the original purchaser hereof under the Bond Purchase Agreement (as defined in the Fifty-seventh Supplemental Indenture referred to below) or (b) any other Institutional Investor (as defined in such Supplemental Indenture) that (i) is the direct or indirect transferee of this bond from such original purchaser and (ii) has made the same agreement relating to this bond as such original purchaser made in Section 8.2 of the Bond Purchase Agreement, payment of principal of and premium, if any, and interest on this Bond shall be payable in the manner specified in the Bond Purchase Agreement.  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.
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, 4.11% Series due 2044, 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 (the “Original Mortgage”), 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).  The Original Mortgage has been amended and supplemented by various supplemental indentures, including the Fifty-seventh Supplemental Indenture, dated as of December 1, 2014 (the “Fifty-seventh 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 

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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.
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 

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Manhattan, The City of New York, are exchangeable for a like aggregate principal amount of bonds of the same series of other authorized denominations.
Prior to June 1, 2044, the bonds of this series shall be redeemable in whole at any time or in part from time to time, at the option of the Company, upon notice mailed as provided in Section 52 of the Mortgage, at a redemption price equal to the greater of
(a)    100% of the principal amount of the bonds being redeemed, and
(b)    the sum of the present values of the remaining scheduled payments of principal of and interest (not including any portion of any scheduled payment of interest which accrued prior to the redemption date) on the bonds being redeemed discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at a discount rate equal to the Treasury Yield (as hereinafter defined) plus 50 basis points,
plus, in the case of either (a) or (b) above, whichever is applicable, accrued interest on such Bonds to the date of redemption.
On or after June 1, 2044, the Bonds of this series shall be redeemable in whole at any time, or in part from time to time, at the option of the Company, upon notice mailed as aforesaid, at a redemption price equal to 100% of the principal amount of the Bonds being redeemed plus accrued interest on such Bonds to the date of redemption.
“Treasury Yield” means, with respect to any redemption of the bonds of this series, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price.  The Treasury Yield shall be calculated as of the third business day preceding the earlier of (a) the date notice of redemption is mailed to holders of bonds of this series and (b) the date irrevocable arrangements with the Trustee for the mailing of such notice shall have been made, as the case may be, (the “Calculation Date”).
“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the bonds of this series that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the bonds.
“Comparable Treasury Price” means (A) the average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) on the Calculation Date, as set forth in the H.15 Daily Update of the Federal Reserve Bank of New York or (B) if such release (or any successor release) is not published or does not contain such prices on such business day, the Reference Treasury Dealer Quotation for the Calculation Date.

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“H.15(519)” means the weekly statistical release entitled “Statistical Release H.15 (519)”, or any successor publication, published by the Board of Governors of the Federal Reserve System.
“H.15 Daily Update” means the daily update of H.15(519) available through the worldwide website of the Board of Governors of the Federal Reserve System or any successor site or publication.
“Independent Investment Banker” means any independent investment banking institution of national standing appointed by the Company and reasonably acceptable to the Trustee.
“Reference Treasury Dealer Quotation” means, with respect to the Reference Treasury Dealer, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount and quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m. on the Calculation Date).
“Reference Treasury Dealer” means a primary U.S. Government securities dealer in New York City appointed by the Company and reasonably acceptable to the Trustee.
Except as provided above, the bonds of this series are not redeemable prior to their stated maturity date.
No recourse shall be had for the payment of the principal of or premium, if any, 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.

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ASSIGNMENT FORM
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, with full power of substitution in the premises. 
Dated: _________________
__________________________ 
[signature of assignor]
Notice: The signature to this assignment must correspond with the name as written upon the face of the bond in every particular without alternation or enlargement or any change whatsoever.

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