Document:

Exhibit 10.1

      

       

      

      Execution Version

       

      EMPLOYMENT AGREEMENT

       

      THIS EMPLOYMENT AGREEMENT is made and entered into effective as of September 21, 2020 (the “Effective Date”), by and among Reliant Bancorp, Inc., a Tennessee
        corporation (“Company”); Reliant Bank, a Tennessee-chartered banking corporation (“Bank”); and Mark Seaton, a resident of the
        State of Tennessee (“Employee”). Company, Bank, and Employee are sometimes referred to herein collectively as the “Parties,” and
        each is sometimes referred to herein individually as a “Party.”

       

      R E C I T A L S

       

      A.          Company and Bank desire to employ Employee as Senior Vice President, Chief Accounting Officer and Controller of Company and Bank, and Employee desires to be so employed by Company and Bank.

       

      B.          The Parties desire to enter into this Agreement to set forth in writing the terms and conditions of Employee’s employment as Senior Vice President, Chief Accounting Officer and Controller of Company and
        Bank.

       

      AGREEMENT

       

      In consideration of the premises set forth above and the mutual agreements hereinafter set forth, effective as of the Effective Date, the Parties hereby agree as follows:

       

      1.           Definitions.  Whenever used in this Agreement, the following terms and their variant forms shall have the meanings set forth below:

       

      (a)          “Affiliate” shall mean, with respect to any entity, any other entity that controls, is controlled by, or is under common control with such
        entity. For this purpose, “control” means ownership of more than 50% of the ordinary voting power of the outstanding equity securities of an entity.

       

      (b)          “Agreement” shall mean this Employment Agreement together with any amendments hereto made in the manner described in this Agreement.

       

      (c)          “Boards of Directors” shall mean, collectively, the board of directors of Company and the board of directors of Bank and, where appropriate, any
        committee or other designee thereof.

       

      (d)          “Business of Employer” shall mean any business conducted from time to time by Company or Bank or any of their respective Affiliates, including
        the business of commercial, retail, mortgage, and consumer banking.

       

      (e)          “Cause” shall mean, in the context of the termination of this Agreement by Employer:

       

      (i)          a material breach of the terms of this Agreement by Employee not cured by Employee within 10 business days after Employee’s receipt of Employer’s written notice thereof, including without limitation
        failure by Employee to perform Employee’s duties and responsibilities in the manner and to the extent required under this Agreement;

       

      (ii)         any act by Employee of fraud against, misappropriation from, or dishonesty to Company or Bank or any Affiliate of Company or Bank;

       

      
        
          

      

      
      (iii)        the conviction of Employee of, or Employee’s plea of guilty or nolo contendere to, a felony or any crime involving fraud or moral turpitude;

       

      (iv)        conduct by Employee that amounts to willful misconduct, gross neglect, or a material failure to perform Employee’s duties and responsibilities hereunder, including prolonged absences without the written
        consent of the Chief Executive Officer or President of Company; provided that the nature of such conduct shall be set forth with reasonable particularity in a written notice to Employee who shall have 10
        business days following delivery of such notice to cure such alleged conduct, provided that such conduct is, in the reasonable discretion of the Chief Executive Officer of Company, susceptible to a cure;

       

      (v)         the exhibition by Employee of a standard of behavior within the scope of or related to Employee’s employment that is in violation of any written policy, board committee charter, or code of ethics or
        business conduct (or similar code) of Company or Bank or any Affiliate of Company or Bank to which Employee is subject; provided that the nature of such behavior shall be set forth with reasonable
        particularity in a written notice to Employee who shall have 10 business days following delivery of such notice to cure such alleged behavior, provided that such behavior is, in the reasonable discretion of
        the Chief Executive Officer of Company, susceptible to a cure;

       

      (vi)        conduct or behavior by Employee, including without limitation conduct or behavior that is unethical and/or involves moral turpitude, that, in the reasonable opinion of the Chief Executive Officer or
        President of Company, has harmed or could reasonably be expected to harm, in each case in any material respect, the business or reputation of Company or Bank or any of their respective Affiliates;

       

      (vii)       receipt of any form of written notice that any regulatory agency or authority having jurisdiction over Company or Bank or any Affiliate of Company or Bank has instituted any form of regulatory action
        against Employee; or

       

      (viii)     Employee’s removal from office and/or permanent prohibition from participating in the conduct of Company’s or Bank’s affairs as a result of an order issued under Section 8(e) or Section 8(g) of the Federal
        Deposit Insurance Act (12 U.S.C. § 1818(e) and (g)).

       

      (f)          “Change in Control” shall mean:

       

      (i)          a change in the ownership of Company or Bank within the meaning of Treasury Regulations § 1.409A-3(i)(5)(v);

       

      (ii)         a change in the effective control of Company or Bank within the meaning of Treasury Regulations § 1.409A-3(i)(5)(vi); or

       

      (iii)        a change in the ownership of a substantial portion of Company’s or Bank’s assets within the meaning of Treasury Regulations § 1.409A-3(i)(5)(vii), substituting 80% for 40% under Treasury Regulations §
        1.409A-3(i)(5)(vii)(A).

       

      (g)          “Code” shall mean the Internal Revenue Code of 1986, as amended.

       

      (h)          “Competing Business” shall mean any person (other than an Affiliate of Company or Bank) that is conducting any business that is the same or
        substantially the same as the Business of Employer.

       

      
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      (i)          “Confidential Information” shall mean all information not generally available to and known by the public, whether spoken, printed, electronic, or
        in any other form or medium, relating to the business, practices, policies, plans, prospects, operations, results of operations, financial condition or results, strategies, know-how, patents, trade secrets, inventions, intellectual property,
        records, suppliers, vendors, customers, clients, products, services, employees, independent contractors, personnel, systems, or internal controls of Company or Bank or any Affiliate of Company or Bank, or of any other person that has entrusted
        information to Company or Bank or any Affiliate of Company or Bank in confidence, as well as any other information that is marked or otherwise identified as confidential or proprietary or that would otherwise appear to a reasonable person to be
        confidential or proprietary in the context and under the circumstances in which the information is known or used. The term “Confidential Information” shall include information developed by Employee in the course of Employee’s employment by Employer
        as if Employer furnished such information to Employee in the first instance. The term “Confidential Information” shall not include information that, through no fault of Employee or person(s) acting in concert with Employee or on Employee’s behalf,
        is generally available to and known by the public at the time of disclosure to Employee or thereafter becomes generally available to and known by the public.

       

      (j)          “Disability” shall mean the inability of Employee to engage in any substantial gainful activity by reason of any medically determinable physical
        or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months.

       

      (k)          “Employer” shall mean, collectively, Company and Bank.

       

      (l)          “Good Reason” shall mean, in the context of the termination of this Agreement by Employee:

       

      (i)          a material diminution in Employee’s Annual Base Salary which is not consented to by Employee in writing;

       

      (ii)         a material diminution in Employee’s authority, duties, or responsibilities, as compared to Employee’s authority, duties, and responsibilities as of the Effective Date, which is not consented to by
        Employee in writing;

       

      (iii)        a change in the location of Employee’s primary office such that Employee is required to report regularly to an office located outside of a 75-mile radius from the location of Employee’s primary office as
        of the Effective Date, which change is not consented to by Employee in writing; or

       

      (iv)        a material breach of the terms of this Agreement by Employer.

       

      (m)         “IRS” shall mean the United States Internal Revenue Service.

       

      (n)          “Post-Termination Period” shall mean a period of 12 months (subject to extension as set forth in Section 8(f)) following the effective
        date of the termination of Employee’s employment.

       

      (o)          “Separation from Service” shall have the meaning set forth in, and whether Employee has experienced a Separation from Service shall be determined
        by Employer in accordance with, Treasury Regulations § 1.409A-1(h).

       

      
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      2.           Employee Duties.

       

      (a)          Position(s); Reporting.  Employee will be employed as Senior Vice President, Chief Accounting Officer and Controller of Company and
        Bank and shall perform and discharge faithfully the duties and responsibilities which may be assigned to Employee from time to time in connection with the conduct of the business of Employer. The duties and responsibilities of Employee shall be
        commensurate with those of individuals holding similar positions at other banks and bank or financial holding companies similarly organized and of comparable size and complexity. Employee shall report directly to the Chief Financial Officer of
        Company and Bank.

       

      (b)          Full-Time Status.  In addition to the duties and responsibilities specifically assigned to Employee under Section 2(a), Employee shall:

       

      (i)          subject to Section 2(c), during regular business hours, devote substantially all of Employee’s time, energy, attention, and skill to the performance of the duties and responsibilities of
        Employee’s employment (reasonable vacations, approved leaves of absence, and reasonable absences due to illness excepted) and faithfully and industriously perform such duties and responsibilities;

       

      (ii)         diligently follow and implement all reasonable and lawful policies and decisions communicated to Employee by the Chief Executive Officer, President, or Chief Financial Officer of Company or Bank or the
        Boards of Directors; and

       

      (iii)        timely prepare and forward to the Chief Executive Officer, President, or Chief Financial Officer of Company or Bank or the Boards of Directors, as applicable, all reports and accountings as may be
        reasonably requested of Employee.

       

      (c)          Permitted Activities.  Employee shall devote substantially all of Employee’s business time, attention, and energies to the Business of
        Employer and shall not during the Term be engaged (whether or not during normal business hours) in any other significant business or professional activity, whether or not such activity is pursued for gain, profit, or other pecuniary advantage, provided that, as long as the following activities do not interfere with Employee’s obligations to Employer, this Section 2(c) shall not be construed as preventing Employee from:

       

      (i)          investing Employee’s personal assets in any manner which will not require any services on the part of Employee in the operations or affairs of the subject entity and in which Employee’s participation is
        solely that of a passive investor, provided that such investment activity following the Effective Date shall not result in Employee owning beneficially at any time 2% or more of the equity securities of any
        Competing Business; or

       

      (ii)         participating in civic and professional affairs and organizations and conferences, preparing or publishing papers or books, or teaching, so long as any such activities do not interfere with the ability of
        Employee to effectively discharge Employee’s duties and responsibilities hereunder, provided that the Chief Executive Officer or President of Company, the board of directors of Company, or the board of
        directors of Bank may direct Employee in writing to resign from any such organization and/or cease any such activities in the event it reasonably determines that continued membership in such organization and/or activities of the type identified
        would not be in the best interests of Company or Bank or any of their Affiliates.

       

      

      
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      3.           Term.  The initial term of this Agreement (the “Initial Term”) shall commence on and as of the Effective Date and, unless this Agreement
        is sooner terminated in accordance with its terms, shall end on the date which is the one-year anniversary of the Effective Date. At the end of the Initial Term (and the end of any one-year renewal term(s) herein provided for), this Agreement will
        automatically renew for an additional, successive term of one year, unless Employer, on the one hand, or Executive, on the other, gives the other Party written notice of such Party’s election to terminate this Agreement as of the end of the Initial
        Term (or then-current renewal term) at least 60 days prior to the end of the Initial Term (or then-current renewal term). The Initial Term and any and all such renewal terms are referred to together herein as the “Term.”

       

      4.           Compensation.  During the Term, Employer shall compensate Employee as follows:

       

      (a)          Annual Base Salary.  Employee shall be compensated at a base annual rate of $230,000 per year (the “Annual Base Salary”). Employee’s Annual Base Salary will be reviewed at least annually for adjustment based on an evaluation of Employee’s performance. Employee’s Annual Base Salary shall be payable in accordance with
        Employer’s normal payroll practices.

       

      (b)          Annual Cash Incentive Compensation.

       

      (i)          Employee shall be eligible to receive such annual cash incentive compensation, if any, as may be determined by, and based on performance measures established by, the board of directors of Company or the
        board of directors of Bank, or in each case an appropriate committee thereof (or its designee), consistent with the strategic plan of Company and Bank, pursuant to any incentive compensation plan or program that may be adopted from time to time by
        the board of directors of Company or the board of directors of Bank (“Incentive Compensation”).

       

      (ii)         Any Incentive Compensation earned shall be payable in cash not later than March 15th of the calendar year following the calendar year in which the Incentive Compensation is earned in accordance with
        Employer’s normal practices for the payment of short-term incentives. The payment of any Incentive Compensation shall be subject to and conditioned on Employee being employed by Employer on December 31st of the calendar year in which the Incentive
        Compensation is earned, Employee’s employment with Employer having not been terminated by Employer for Cause prior to the payment of such Incentive Compensation, and the receipt of any approvals or non-objections required from or by any regulatory
        agency or authority having jurisdiction over Company or Bank, and it is acknowledged by the Parties that it is possible that Employee may not be eligible to receive any such Incentive Compensation if Company or Bank is
        subject to restrictions imposed on Company or Bank by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Tennessee Department of Financial Institutions, or any other regulatory agency or authority,
        or if Company or Bank is otherwise restricted from making payment of such Incentive Compensation under applicable law, rule, or regulation.

       

      (c)          Cell Phone Allowance.  Employee shall receive a cell phone allowance of $100 per month, which amount shall be subject to
          applicable withholdings. Employee acknowledges that Employer makes no representation with respect to the taxability or non-taxability of the benefits provided under this Section 4(c).

       

      (d)          Business Expenses.  Subject to the reimbursement policies of Employer in effect from time to time and consistent with the annual budget
        approved for the period during which an expense is incurred, Employer will reimburse Employee for reasonable business expenses incurred by Employee in the performance of Employee’s duties hereunder; provided,
        however, that, as a condition to any such reimbursement, Employee shall submit verification of the nature and amount of such expenses in accordance with said reimbursement policies. Employee acknowledges
        that Employer makes no representation with respect to the taxability or non-taxability of the benefits provided under this Section 4(d).

       

      
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      (e)          Vacation.  On a non-cumulative basis, Employee shall be entitled to 20 days paid vacation per calendar year, prorated for any partial calendar year of service. The
        provisions of this Section 4(e) shall apply notwithstanding any less generous vacation policy then maintained by Employer, but Employee’s use of such paid vacation shall otherwise be in accordance with Employer’s vacation policy as in
        effect from time to time.

       

      (f)          Other Benefits. In addition to the benefits specifically described in this Agreement, Employee shall be entitled to such other benefits as may be available from
        time to time to employees of Bank generally, including, by way of example only, retirement plan and health, dental, life, and disability insurance benefits. All such benefits shall be awarded and administered in accordance with the written terms of
        any applicable benefit plan or, if no written terms exist, Bank’s standard policies and practices relating to such benefits.

       

      (g)          Reimbursement of Expenses; In-Kind Benefits.  All expenses described in this Agreement as eligible for reimbursement must be incurred by Employee during the Term of
        this Agreement to be eligible for reimbursement. Any in-kind benefits provided by Employer must be provided during the Term of this Agreement. The amount of reimbursable expenses incurred, and the amount of any in-kind benefits provided, in one
        taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits provided, in any other taxable year. Each category of reimbursement shall be paid as soon as administratively practicable, but in no event shall any such
        reimbursement be paid after the last day of the calendar year following the calendar year in which the expense was incurred. Neither rights to reimbursement, nor in-kind benefits, shall be subject to liquidation or exchange for other benefits.

       

      (h)          Claw Back of Compensation.  Employee agrees to repay promptly, at the written request of Employer, any compensation (including
        incentive compensation) previously paid or otherwise made available to Employee, under this Agreement or any other agreement or arrangement with Company or Bank, which is subject to recovery under any law, rule, or regulation (including any rule of
        any exchange on which any securities of Company are listed or traded). Employee agrees to repay promptly any such compensation identified by Company or Bank. If Employee fails to repay any such compensation promptly, Employee agrees that the amount
        of such compensation may be deducted from any and all other compensation owed to Employee under this Agreement or otherwise. Employee acknowledges that Employer may take appropriate disciplinary action (up to, and including, termination of
        Employee’s employment for Cause) if Employee fails to promptly repay any such compensation.

       

      5.           Termination of Employment.

       

      (a)          Termination by Employer.  During the Term, Employee’s employment may be terminated by Employer:

       

      (i)          at any time for Cause, as determined by the Chief Executive Officer of Company; or

       

      
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      (ii)         at any time without Cause (provided that Employer shall give Employee at least 30 days prior written notice of its intent to terminate), in which event Employer
        shall be required to (A) pay to Employee (or, in the event of Employee’s death, Employee’s estate, heirs, or designated beneficiaries, as the case may be) a severance benefit equal to one times Employee’s Annual Base Salary as of the date of
        termination, said benefit to be payable in equal installments over the course of the 12-month period beginning 60 days following termination in accordance with Employer’s normal payroll practices, and (B) if Employee timely and properly elects
        health continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), timely pay on behalf of Employee the monthly (or other) COBRA premium for such
        coverage for Employee and his dependents until the earliest of (1) the one-year anniversary of the date of termination of Employee’s employment, (2) the date Employee is no longer eligible to receive COBRA continuation coverage, and (3) the date on
        which Employee becomes eligible to receive substantially similar coverage from another employer (notice of which eligibility Employee shall promptly give to Employer). Notwithstanding the foregoing, if payments under clause (B) of this Section
          5(a)(ii) would cause Employer to violate the nondiscrimination rules applicable to non-grandfathered plans under the Affordable Care Act (the “ACA”), or result in the imposition of
        penalties under the ACA and the related regulations and guidance promulgated thereunder, the Parties agree to reform clause (B) of this Section 5(a)(ii) in such manner as is necessary to comply with the ACA while, to the extent reasonably
        practicable, preserving the benefit provided for in clause (B) of this Section 5(a)(ii). Notwithstanding the foregoing, Employer shall have no obligation to pay the severance benefit or the monthly (or other) COBRA premiums contemplated by
        this Section 5(a)(ii) unless within 45 days after the date of termination of Employee’s employment Employee executes and delivers to Employer a separation agreement containing a full release of claims and covenant not to sue, the same to be
        in the form provided by and otherwise reasonably satisfactory to Employer (the “Separation Agreement”), and the Separation Agreement becomes fully effective within 60 days after the date
        of termination of Employee’s employment. Additionally, Employer shall have no obligation to pay the severance benefit or the monthly (or other) COBRA premiums contemplated by this Section 5(a)(ii), and the payment of the same by Employer
        shall immediately cease, in the event of a breach by Employee of Section 7 or Section 8.

       

      (b)          Termination by Employee.  During the Term, Employee’s employment may be terminated by Employee:

       

      (i)          at any time for Good Reason, provided that (A) before terminating his employment for Good Reason, (1) Employee shall give notice to
        Employer of the existence of Good Reason for termination, which notice must be given by Employee to Employer within 60 days of the initial existence of the condition(s) giving rise to Good Reason for termination and shall state with reasonable
        detail the condition(s) giving rise to Good Reason for termination and (2) Employer shall have 30 days from the effective date of such notice to remedy the condition(s) giving rise to Good Reason for termination and (B) such termination must occur
        within 12 months of the initial existence of the condition(s) giving rise to Good Reason for termination. In the event of the termination of Employee’s employment for Good Reason, Employer shall be required to (X) pay to Employee (or, in the event
        of Employee’s death, Employee’s estate, heirs, or designated beneficiaries, as the case may be) a severance benefit equal to (1) if termination is for Good Reason as defined in Section 1(l)(ii), Section 1(l)(iii), or Section
          1(l)(iv), one times Employee’s Annual Base Salary as of the date of termination, said benefit to be payable in equal installments over the course of the 12-month period beginning 60 days following termination in accordance with Employer’s
        normal payroll practices, or (2) if termination is for Good Reason as defined in Section 1(l)(i), one times Employee’s Annual Base Salary immediately prior to the diminution in Annual Base Salary giving rise to termination, said benefit to
        be payable in equal installments over the course of the 12-month period beginning 60 days following termination in accordance with Employer’s normal payroll practices, and (Y) if Employee timely and properly elects health continuation coverage
        under COBRA, timely pay on behalf of Employee the monthly (or other) COBRA premium for such coverage for Employee and his dependents until the earliest of (1) the one-year anniversary of the date of termination of Employee’s employment, (2) the
        date Employee is no longer eligible to receive COBRA continuation coverage, and (3) the date on which Employee becomes eligible to receive substantially similar coverage from another employer, notice of which eligibility Employee shall promptly
        give to Employer (provided that, if Employer making payments under this clause (Y) would violate the nondiscrimination rules applicable to non-grandfathered plans under the ACA, or result in the imposition
        of penalties under the ACA and the related regulations and guidance promulgated thereunder, the Parties agree to reform this clause (Y) in such manner as is necessary to comply with the ACA while, to the extent reasonably practicable, preserving
        the benefit provided for in this clause (Y)). Notwithstanding the foregoing, Employer shall have no obligation to pay the severance benefit or the monthly (or other) COBRA premiums contemplated by this Section 5(b)(i) unless within 45 days
        after the date of termination of Employee’s employment Employee executes and delivers to Employer the Separation Agreement and the Separation Agreement becomes fully effective within 60 days after the date of termination of Employee’s employment.
        Additionally, Employer shall have no obligation to pay the severance benefit or the monthly (or other) COBRA premiums contemplated by this Section 5(b)(i), and the payment of the same by Employer shall immediately cease, in the event of a
        breach by Employee of Section 7 or Section 8; or

       

      
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      (ii)         at any time without Good Reason, provided that Employee shall give Employer at least 30 days prior written notice of Employee’s intent to terminate (provided further, however, that Employer may waive all or any part of such notice period for no consideration by giving written notice to Employee and, in such event,
        Employee’s employment will terminate as of the date designated by Employer).

       

      (c)          Termination Upon Disability.  During the Term, Employee’s employment may be terminated by Employer upon the Disability of Employee, provided that Employer shall give Employee at least 30 days prior written notice of its intent to terminate. For the avoidance of doubt, termination for Disability under this Section 5(c) shall not be
        considered termination without Cause.

       

      (d)          Termination Upon Death.  Employee’s employment shall terminate automatically upon the death of Employee. For the avoidance of doubt, termination of Employee’s
        employment upon the death of Employee under this Section 5(d) shall not be considered termination without Cause.

       

      (e)          Termination by Mutual Agreement.  During the Term, Employee’s employment may be terminated at any time by mutual written agreement of the Parties.

       

      (f)          Non-Renewal of Agreement.  For the avoidance of doubt, the Parties expressly acknowledge and agree that neither the election by a Party to not renew, and therefore
        to terminate, this Agreement pursuant to Section 3 nor the termination of Employee’s employment at the end of the Term in connection with any such election shall give rise to any severance or other payment or benefit to Employee under this
        Agreement.

       

      (g)          Effect of Termination; Resignation.  Upon the termination of Employee’s employment, Employer shall have no further obligations to Employee or Employee’s estate,
        heirs, beneficiaries, executors, administrators, or legal or personal representatives under or with respect to this Agreement, except for the payment of any amounts earned and owing under Sections 4(a)-(c) as of the effective date of
        the termination of Employee’s employment and any payment(s) required by Section 5(a)(ii), Section 5(b)(i), or Section 6. Further, upon the termination of Employee’s employment, (i) if Employee is a member of the board of
        directors of Company or the board of directors of Bank, or the board of directors of any Affiliate of Company or Bank, Employee shall, at the request of Employer, resign from Employee’s position(s) on such boards, and (ii) Employee shall, at the
        request of Employer, resign from any officer position(s) held by Employee at any Affiliate of Company or Bank, in each case with any and all such resignations to be effective not later than the date on which Employee’s employment is terminated
        unless a later effective date is agreed to by Employer.

       

      
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      6.           Change in Control.

       

      (a)          If, within 12 months following a Change in Control, Employer (or any successor of or to Employer) terminates Employee’s employment without Cause, Employer (or its successor) shall be required to (i) pay to
        Employee (or, in the event of Employee’s death, Employee’s estate, heirs, or designated beneficiaries, as the case may be) a severance benefit in an amount equal to one times Employee’s Annual Base Salary as of the date of termination, said benefit
        to be payable in equal installments over the course of the 12-month period beginning 60 days following termination in accordance with Employer’s (or its successor’s) normal payroll practices, and (ii) if Employee timely and properly elects health
        continuation coverage under COBRA, timely pay on behalf of Employee the monthly (or other) COBRA premium for such coverage for Employee and his dependents until the earliest of (A) the 12-month anniversary of the date of termination of Employee’s
        employment, (B) the date Employee is no longer eligible to receive COBRA continuation coverage, and (C) the date on which Employee becomes eligible to receive substantially similar coverage from another employer (notice of which eligibility
        Employee shall promptly give to Employer (or its successor)). Notwithstanding the foregoing, if payments under clause (ii) of this Section 6(a) would cause Employer (or its successor) to violate the nondiscrimination rules applicable to
        non-grandfathered plans under the ACA, or result in the imposition of penalties under the ACA and the related regulations and guidance promulgated thereunder, the Parties agree to reform clause (ii) of this Section 6(a) in such manner as is
        necessary to comply with the ACA while, to the extent reasonably practicable, preserving the benefit provided for in clause (ii) of this Section 6(a). Notwithstanding the foregoing, Employer (or its successor) shall have no obligation to
        pay the severance benefit or the monthly (or other) COBRA premiums contemplated by this Section 6(a) unless within 45 days after the date of termination of Employee’s employment Employee executes and delivers to Employer (or its successor)
        the Separation Agreement and the Separation Agreement becomes fully effective within 60 days after the date of termination of Employee’s employment. Additionally, Employer (or its successor) shall have no obligation to pay the severance benefit or
        the monthly (or other) COBRA premiums contemplated by this Section 6(a), and the payment of the same by Employer (or its successor) shall immediately cease, in the event of a breach by Employee of Section 7 or Section 8.

       

      (b)          If, within 12 months following a Change in Control, Employee terminates his employment with Employer (or its successor) for Good Reason (provided that (x) before
        terminating his employment for Good Reason, Employee shall give notice to Employer (or its successor) of the existence of Good Reason for termination, which notice must be given by Employee to Employer (or its successor) within 60 days of the
        initial existence of the condition(s) giving rise to Good Reason for termination and shall state with reasonable detail the condition(s) giving rise to Good Reason for termination, and Employer (or its successor) shall have 30 days from the
        effective date of such notice to remedy the condition(s) giving rise to Good Reason for termination and (y) such termination must occur within 12 months of the initial existence of the condition(s) giving rise to Good Reason for termination),
        Employer (or its successor) shall be required to (i) pay to Employee (or, in the event of Employee’s death, Employee’s estate, heirs, or designated beneficiaries, as the case may be) a severance benefit in an amount equal to (A) if termination is
        for Good Reason as defined in Section 1(l)(ii), Section 1(l)(iii), or Section 1(l)(iv), one times Employee’s Annual Base Salary as of the date of termination, said benefit to be payable in equal installments over the course
        of the 12-month period beginning 60 days following termination in accordance with Employer’s (or its successor’s) normal payroll practices, or (B) if termination is for Good Reason as defined in Section 1(l)(i), one times Employee’s Annual
        Base Salary immediately prior to the diminution in Annual Base Salary giving rise to termination, said benefit to be payable in equal installments over the course of the 12-month period beginning 60 days following termination in accordance with
        Employer’s (or its successor’s) normal payroll practices, and (ii) if Employee timely and properly elects health continuation coverage under COBRA, timely pay on behalf of Employee the monthly (or other) COBRA premium for such coverage for Employee
        and his dependents until the earliest of (A) the 12-month anniversary of the date of termination of Employee’s employment, (B) the date Employee is no longer eligible to receive COBRA continuation coverage, and (C) the date on which Employee
        becomes eligible to receive substantially similar coverage from another employer, notice of which eligibility Employee shall promptly give to Employer (or its successor) (provided that, if Employer (or its
        successor) making payments under this clause (ii) would violate the nondiscrimination rules applicable to non-grandfathered plans under the ACA, or result in the imposition of penalties under the ACA and the related regulations and guidance
        promulgated thereunder, the Parties agree to reform this clause (ii) in such manner as is necessary to comply with the ACA while, to the extent reasonably practicable, preserving the benefit provided for in this clause (ii)). Notwithstanding the
        foregoing, Employer (or its successor) shall have no obligation to pay the severance benefit or the monthly (or other) COBRA premiums contemplated by this Section 6(b) unless within 45 days after the date of termination of Employee’s
        employment Employee executes and delivers to Employer (or its successor) the Separation Agreement and the Separation Agreement becomes fully effective within 60 days after the date of termination of Employee’s employment. Additionally, Employer (or
        its successor) shall have no obligation to pay the severance benefit or the monthly (or other) COBRA premiums contemplated by this Section 6(b), and the payment of the same by Employer (or its successor) shall immediately cease, in the
        event of a breach by Employee of Section 7 or Section 8.

       

      
        9

        
          

      

      (c)          For the avoidance of doubt, if Employee becomes entitled to the compensation and benefits provided for in Section 6(a) or Section 6(b), Employee will not also be entitled to the
        compensation and benefits provided for in Section 5(a)(ii) or Section 5(b)(i).

       

      7.           Confidential Information.

       

      (a)          Employee understands and acknowledges that, during the course of Employee’s employment with Employer, Employee has had and will have access to and has learned and will learn of and about Confidential
        Information. Employee acknowledges and agrees that all Confidential Information of Company or Bank or their respective Affiliates that Employee accesses, receives, learns of, or develops while Employee is employed by Employer, or that Employee has
        previously accessed, received, learned of, or developed while employed by Employer, shall be and will remain the sole and exclusive property of Company and Bank and their respective Affiliates.

       

      (b)          Employee understands and acknowledges that Company and Bank and their respective Affiliates have invested, and continue to invest, substantial time, money, and specialized knowledge into developing their
        resources, creating a customer base, generating customer and potential customer lists, training their employees, and improving their offerings in the field of banking and financial services. Employee understands and acknowledges that, as a result
        of these efforts, Company and Bank and their respective Affiliates have created and continue to create and use Confidential Information, and that the Confidential Information provides Company and Bank and their respective Affiliates with a
        competitive advantage over others in the marketplace.

       

      (c)          Employee covenants and agrees (i) to treat all Confidential Information as strictly confidential; (ii) not to directly or indirectly disclose, publish, communicate, or make available Confidential
        Information, or allow it to be disclosed, published, communicated, or made available, in whole or in part, to any person whatsoever (including other employees of Company or Bank or their respective Affiliates) not having a need to know and
        authority to know and use the Confidential Information in connection with the business of Company or Bank or their respective Affiliates, and, in any event, not to anyone outside of the direct employ of Company or Bank or their respective
        Affiliates except as required in the performance of Employee’s authorized employment duties to Employer or with the prior consent of the Chief Executive Officer, President, or Chief Financial Officer of Company in each instance (in which case such
        disclosure shall be made only within the limits and to the extent of such duties or consent); and (iii) not to access or use any Confidential Information, and not to copy any documents, records, files, media, or other resources containing any
        Confidential Information, or remove any such documents, records, files, media, or other resources from the premises or control of Company or Bank or any of their respective Affiliates, except as required in the performance of Employee’s authorized
        employment duties to Employer or with the prior consent of the Chief Executive Officer, President, or Chief Financial Officer of Company in each instance (in which case such access, use, copying, or removal shall be only within the limits and to
        the extent of such duties or consent).

       

      
        10

        
          

      

      (d)          Nothing herein shall be construed to prevent disclosure of Confidential Information as may be required by applicable law, rule, or regulation or pursuant to the valid order of a court of competent
        jurisdiction or a government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, rule, regulation, or order. Employee shall promptly provide written notice of
        any such order to the Chief Executive Officer, President, or Chief Financial Officer of Company. Additionally, and without limiting the foregoing, nothing herein shall prohibit or restrict Employee (or Employee’s attorney) from initiating
        communications directly with, responding to an inquiry from, or providing testimony before the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, any other self-regulatory organization, or any other federal or
        state regulatory authority.

       

      (e)          Notwithstanding any other provision of this Agreement:

       

      (i)          Employee will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade
          secret that (A) is made (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and (2) solely for the purpose of reporting or investigating a suspected violation of law, or (B) is
          made in a complaint or other document filed under seal in a lawsuit or other proceeding; and

       

      (ii)          If Employee files a lawsuit for retaliation by Employer for reporting a suspected violation of law, Employee may disclose trade
          secrets to Employee’s attorney and use the trade secret information in the court proceeding if Employee (A) files any document containing trade secrets under seal and (B) does not disclose trade secrets, except pursuant to court order.

       

      (f)          Employee understands and acknowledges that Employee’s obligations under this Agreement with regard to any particular Confidential Information shall commence, or shall be deemed to have commenced,
        immediately upon Employee first having access to such Confidential Information (whether before or after the Effective Date) and shall continue during and after Employee’s employment by Employer until such time as such Confidential Information has
        become public knowledge other than as a result of Employee’s breach of this Agreement or a breach by any person acting in concert with or at the direction of Employee or acting on Employee’s behalf.

       

      (g)          At any time upon request by Employer, and in any event upon termination of Employee’s employment with Employer, Employee will promptly deliver to Employer all property of or belonging to Company or Bank or
        their Affiliates, including without limitation all Confidential Information, then in Employee’s possession or control.

       

      8.           Restrictive Covenants.

       

      (a)          Non-Solicitation of Customers.  Employee agrees that, during the period of Employee’s employment by Employer and, in the event of the termination of Employee’s
        employment for any reason, for the duration of the Post-Termination Period, Employee will not directly or indirectly (except on behalf of or with the prior written consent of Employer), on Employee’s own behalf or in the service of or on behalf of
        others, solicit or contact or attempt to solicit or contact (by mail, email, courier, facsimile, telephone, instant or text message, social media, or otherwise), or meet with (in person, via video conference, or otherwise), any customer of Company
        or Bank or any Affiliate of Company or Bank, or any prospective customer of Company or Bank or any Affiliate of Company or Bank known by Employee to be sought by Company or Bank or any Affiliate of Company or Bank, for purposes of selling,
        offering, or providing products or services that are competitive with those sold, offered, or provided by Company or Bank or any Affiliate of Company or Bank.

       

      
        11

        
          

      

      (b)          Non-Solicitation of Employees.  Employee agrees that, during the period of Employee’s employment by Employer and, in the event of the termination of Employee’s
        employment for any reason, for the duration of the Post-Termination Period, Employee will not directly or indirectly (except on behalf of or with the prior written consent of Employer), on Employee’s own behalf or in the service of or on behalf of
        others, solicit, recruit, or hire, or attempt to solicit, recruit, or hire, any employee of Company or Bank or any Affiliate of Company or Bank, or otherwise induce or attempt to induce any such employee to terminate his or her employment with
        Company or Bank or any Affiliate of Company or Bank, regardless of whether the employee is a full-time, part-time, or temporary employee of Company or Bank or an Affiliate of Company or Bank or the employee’s employment is pursuant to a written
        agreement, for a determined period, or at will.

       

      (c)          Affiliation with New Financial Institution.  Employee agrees that, during the period of Employee’s employment by Employer and, in the event of the termination of
        Employee’s employment for any reason, for the duration of the Post-Termination Period, Employee will not work for or with, consult for, or otherwise be affiliated with or be employed by any person or group of persons proposing to establish a new
        bank or other financial institution.

       

      (d)          Non-Disparagement.  Employee agrees that, both during the period of Employee’s employment by Employer hereunder and following the termination of Employee’s
        employment, Employee will not make any disparaging statements or remarks (written or oral) about Company or Bank or any Affiliate of Company or Bank or any of their respective officers, directors, employees, shareholders, agents, or
        representatives. Employer agrees that, following the termination of Employee’s employment, Employer will instruct its directors and senior executive officers to refrain from making any disparaging statements or remarks (written or oral) about
        Employee.

       

      (e)          Modification.  The Parties agree that the provisions of this Agreement represent a reasonable balancing of their respective interests and have attempted to limit
        the restrictions imposed on Employee to those necessary to protect Employer from inevitable disclosure of Confidential Information and unfair competition. The Parties agree that, if the scope or enforceability of this Agreement is in any way
        disputed at any time and a court or other trier of fact determines that the scope of the restrictions contained in this Agreement is overbroad, then such court or other trier of fact may modify the scope of the restrictions contained in this
        Agreement.

       

      (f)          Tolling.  Employee agrees that, in the event Employee breaches this Section 8, the Post-Termination Period shall be tolled during, and therefore extended
        by, the period of such breach.

       

      (g)          Remedies.  Employee agrees that the covenants contained in Section 7 and Section 8 are of the essence of this Agreement; that each of such covenants
        is reasonable and necessary to protect the business, interests, and properties of Company and Bank and their respective Affiliates; and that irreparable loss and damage will be suffered by Employer should Employee breach any of such covenants.
        Therefore, Employee agrees and consents that, in addition to all other remedies provided by or available at law or in equity, Employer shall be entitled to a temporary restraining order and temporary and permanent injunctions to prevent a breach or
        contemplated or threatened breach of any of the covenants contained in Section 7 or Section 8 and that, in such event, Employer shall not be required to post a bond. Employer and Employee agree that all remedies available to
        Employer shall be cumulative.

       

      
        12

        
          

      

      9.           Severability.  The Parties agree that each of the provisions included in this Agreement is separate, distinct, and severable from the other provisions of this Agreement and that the invalidity or
        unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. Further, if any provision of this Agreement is ruled invalid or unenforceable by a court of competent
        jurisdiction because of a conflict between the provision and any applicable law, rule, regulation, or public policy, the provision shall be redrawn to make the provision consistent with, and valid and enforceable under, such law, rule, regulation,
        or public policy.

       

      10.         No Set-Off by Employee.  The existence of any claim, demand, action, or cause of action by Employee against Company or Bank or any Affiliate of Company or Bank, whether predicated upon this
        Agreement or otherwise, shall not constitute a defense to the enforcement by Employer of any of its rights under this Agreement.

       

      11.         Notices.  All notices, waivers, and other communications required or permitted hereunder shall be in writing and shall be either personally delivered; sent by national overnight courier service,
        postage prepaid, next-business-day delivery guaranteed; or mailed by first class United States Mail, postage prepaid return receipt requested, to the recipient at the address below indicated:          

       

      
        	
                If to Company or Bank:

              	
                If to Employee:

              
	 	 
	
                Reliant Bancorp, Inc.

              	
                To Employee, personally, at the

              
	
                Reliant Bank

              	
                most recent mailing address for

              
	
                6100 Tower Circle, Suite 120

              	
                Employee appearing in the records of

              
	
                Franklin, Tennessee 37067

              	
                Company

              
	
                Attention: Chief Executive Officer

              	 

      

      

      

      or to such other address or to the attention of such other person as the recipient Party shall have specified by prior written notice to the sending Party. All such notices, waivers, and other communications shall be deemed to have been
        effectively given: (a) when personally delivered to the Party to be notified; (b) two business days after deposit with a national overnight courier service, postage prepaid, addressed to the Party to be notified as set forth above with
        next-business-day delivery guaranteed; or (c) four business days after deposit in the United States Mail, first class, postage prepaid with return receipt requested, at any time other than during a general discontinuance of postal service due to
        strike, lockout, or otherwise (in which case such notice, waiver, or other communication shall be effectively given upon receipt), and addressed to the Party to be notified as set forth above.

      

      

      12.         Assignment.  Each of Company and Bank may assign this Agreement and its rights hereunder and may delegate its duties and obligations under this Agreement, in each case without the consent of
        Employee. This Agreement is a personal contract, and neither this Agreement nor the rights, interest, duties, or obligations of Employee hereunder may be assigned or delegated by Employee. Subject to the preceding provisions of this Section 12,
        this Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective successors and permitted assigns.

       

      13.         Waiver.  A waiver by a Party of any provision of this Agreement or of any breach of this Agreement by any other Party shall not be effective unless in a written instrument signed by the Party
        granting such waiver, and no waiver shall operate or be construed as a waiver of the same or any other provision or breach on any other occasion.

       

      
        13

        
          

      

      14.         Mediation.  Except with respect to Section 7 and Section 8, in the event of any dispute arising out of or relating to this Agreement or a breach hereof,
        which dispute cannot be settled through direct discussions among the Parties, the Parties agree to first endeavor to settle the dispute in an amicable manner by non-binding, confidential mediation in Franklin, Williamson County, Tennessee, before
        resorting to any other process for resolving the dispute.

       

      15.         Applicable Law and Choice of Forum.  This Agreement shall be governed by and construed and enforced under and in accordance with the laws of the State of Tennessee,
        without regard to or the application of principles of conflicts of laws. The Parties agree that any litigation, suit, action, or proceeding arising out of or related to this Agreement shall be instituted exclusively in the United States District
        Court for the Middle District of Tennessee, Nashville Division, or the courts of the State of Tennessee sitting in Williamson County, Tennessee, and each Party irrevocably submits to the exclusive jurisdiction of and venue in such courts and waives
        any objection it might otherwise have to the jurisdiction of or venue in such courts.

       

      16.         Interpretation.  Words used herein denoting one gender shall include all genders. Words used herein denoting the singular shall include the plural and vice versa. When used herein, the terms
        “herein,” “hereunder,” “hereby,” “hereto,” and “hereof,” and any similar terms, refer to this Agreement. When used herein, the term “person” shall include an individual, a corporation, a limited liability company, a partnership, an association, a
        trust, and any other entity or organization, whether or not incorporated. Any captions, titles, or headings preceding the text of any section or subsection of this Agreement are solely for convenience of reference and shall not constitute part of
        this Agreement or affect its meaning, construction, or effect.

       

      17.         Entire Agreement; Amendment; No Duplication of Benefits.

       

      (a)          This Agreement embodies the entire and final, integrated agreement of the Parties on the subject matter stated in this Agreement and supersedes all prior understandings and agreements (oral and written) of
        the Parties relating to the subject matter of this Agreement.

       

      (b)          No amendment or supplement to or modification of this Agreement shall be valid or binding upon any Party unless the same is set forth in a written instrument signed by all Parties.

       

      (c)          The severance payments and benefits provided for in this Agreement shall be in lieu of any payments or benefits pursuant any general severance policy or other severance plan maintained by Employer for the
        benefit of its employees generally.

       

      18.         Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement. A signed copy of this
        Agreement delivered by facsimile, email, or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original manually signed copy of this Agreement.

       

      19.         Rights of Third Parties.  Nothing herein expressed is intended to or shall be construed to confer upon or give to any person, other than the Parties hereto and their respective successors and
        permitted assigns, any rights or remedies under or by reason of this Agreement.

       

      20.         Legal Fees.  In the event of any claim, action, suit, or proceeding arising out of or in any way relating to this Agreement, the prevailing Party or Parties shall be
        entitled to recover from the non-prevailing Party or Parties all reasonable fees, expenses, and disbursements, including without limitation reasonable attorneys’ fees and court costs, incurred by such prevailing Party or Parties in connection with
        such claim, action, suit, or proceeding, in addition to any other relief to which such prevailing Party or Parties may be entitled at law or in equity.

       

      
        14

        
          

      

      21.         Survival.  The respective rights and obligations of the Parties hereunder shall survive the termination of this Agreement to the extent and for such time as necessary to carry out fully the purposes
        and intent of this Agreement.

       

      22.         Employee Representations.  Employee represents and warrants to Employer that neither Employee’s employment with Employer nor Employee’s performance
        of Employee’s duties and responsibilities under this Agreement will conflict with or result in a breach or violation of or a default under any contract, covenant, or agreement (including without limitation any non-solicitation, non-competition, or
        other similar contract, covenant, or agreement) or order, judgment, or decree to which Employee is a party or subject or by which Employee is bound.

       

      23.         Code Section 409A.  Notwithstanding anything in this Agreement to the contrary, the following provisions shall apply to all benefits and payments provided under this
        Agreement by Employer to Employee:

       

      (a)          The payment (or commencement of a series of payments) hereunder of any non-qualified deferred compensation (within the meaning of Section 409A of the Code) upon a termination of employment shall be delayed
        until such time as Employee has also undergone a Separation from Service, at which time such non-qualified deferred compensation (calculated as of the date of Employee’s termination of employment hereunder) shall be paid (or commence to be paid) to
        Employee as set forth in this Agreement as if Employee had undergone such termination of employment (under the same circumstances) on the date of Employee’s ultimate Separation from Service.

       

      (b)          If Employee is a specified employee (as determined by Employer in accordance with Section 409A of the Code and Treasury Regulations § 1.409A-3(i)(2)) as of Employee’s Separation from Service with Employer,
        and if any payment, benefit, or entitlement provided for in this Agreement or otherwise both (i) constitutes non-qualified deferred compensation (within the meaning of Section 409A of the Code) and (ii) cannot be paid or provided in a manner
        otherwise provided herein without subjecting Employee to additional tax or interest (or both) under Section 409A of the Code, then any such payment, benefit, or entitlement that is payable during the first six months following the Separation from
        Service shall be paid or provided to Employee in a lump sum cash payment to be made on the earlier of (A) Employee’s death and (B) the first business day of the seventh month immediately following Employee’s Separation from Service.

       

      (c)          Any payment or benefit paid or provided under this Agreement due to a Separation from Service that is exempt from Section 409A of the Code pursuant to Treasury Regulations § 1.409A-1(b)(9)(v) will be paid
        or provided to Employee only to the extent that expenses are not incurred or the benefits are not provided beyond the last day of Employee’s second taxable year following Employee’s taxable year in which the Separation from Service occurs, provided that Employer reimburses such expenses no later than the last day of the third taxable year following Employee’s taxable year in which Employee’s Separation from Service occurs.

       

      (d)          It is the Parties’ intent that the payments, benefits, and entitlements to which Employee could become entitled in connection with Employee’s employment under this Agreement be exempt from or comply with
        Section 409A of the Code and the regulations and other guidance promulgated thereunder, and, accordingly, this Agreement will be interpreted to be consistent with such intent. For purposes of the limitations on non-qualified deferred compensation
        under Section 409A of the Code, each payment of compensation under this Agreement shall be treated as a separate payment of compensation for purposes of applying the exclusion under Section 409A of the Code for short-term deferral amounts, the
        separation pay exception, or any other exception or exclusion under Section 409A of the Code.

       

      
        15

        
          

      

      (e)          While the payments and benefits provided for hereunder are intended to be structured in a manner to avoid the imposition of any penalty taxes under Section 409A of the Code, in no event whatsoever will
        Company or Bank or their respective Affiliates be liable for any additional tax, interest, or penalties that may be imposed on Employee as a result of Section 409A of the Code or any damages for failing to comply with Section 409A of the Code
        (other than for withholding or other obligations applicable to employers, if any, under Section 409A of the Code).

       

      (f)          No deferred compensation payments provided for under this Agreement shall be accelerated to Employee, except as permitted by Treasury Regulations § 1.409A-3(j)(4).

       

      (g)          Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that constitutes “deferred compensation”
        for purposes of Section 409A of the Code be subject to offset by any other amount unless permitted by Section 409A of the Code.

       

      24.         Section 280G.

       

      

      (a)          In the event that any payments or benefits received or to be received by Employee (including without limitation any payments or benefits received or to be received in connection with a Change in Control or
        the termination of Employee’s employment, whether pursuant to the terms of this Agreement or any other plan, arrangement, or agreement, or otherwise) (all such payments and benefits, collectively, “Covered Payments”), constitute “parachute payments” within the meaning of Section 280G of the Code and would, but for this Section 24, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Covered Payments shall be reduced (but not below zero) in a manner determined by Employer that is consistent with the requirements of Section 409A of the Code, by the
        minimum reasonably possible amounts, until no amount received or to be received by Employee will be subject to the Excise Tax. If two economically equivalent amounts are subject to reduction but are payable at different times, the amounts shall be
        reduced (but not below zero) on a pro rata basis.

       

      (b)          All determinations and calculations required under this Section 24, including any determination of whether any payments or benefits constitute “parachute payments,” shall be made by Employer in
        good faith and shall be final and binding on Employer and Employee for all purposes. For purposes of making the determinations and calculations required by this Section 24, Employer may rely on reasonable, good faith assumptions and
        approximations concerning the application of Section 280G and Section 4999 of the Code and may engage and in good faith rely on the advice and counsel of legal, accounting, and other professional advisors. Employee shall furnish Employer with such
        information and documents as Employer may reasonably request in order for Employer to make any determinations and calculations under this Section 24.

       

      25.         Tax Withholding.  Employer may deduct and withhold from any amounts payable under this Agreement all federal, state, local, or other taxes Employer is required to deduct or withhold pursuant to
        applicable law, rule, regulation, or ruling.

       

      26.         Regulatory Restrictions.  The Parties expressly acknowledge and agree that (a) any and all payments contemplated by this Agreement are subject to and conditioned upon their compliance with 12 U.S.C.
        § 1828(k) and 12 C.F.R. Part 359, as such laws and regulations may be amended from time to time, and (b) the obligations of the Parties under this Agreement are generally subject to such conditions, restrictions, and limitations as may be imposed
        from time to time by applicable state and/or federal banking laws, rules, and regulations.

       

      
        16

        
          

      

      27.         Right to Contact.  Employee acknowledges and agrees that Employer shall have the right to contact any new or potential employer of Employee (or other business) and apprise such person of Employee’s
        responsibilities and obligations owed under this Agreement.

       

      

      

      (Signature Page Follows)

      
        17

        
          

      

      

      IN WITNESS WHEREOF, the Parties have executed and delivered this Agreement effective as of the date first written above.

       

      	

            	
              COMPANY:

            	
              RELIANT BANCORP, INC.

            
	

            	

            	

            	

            
	

            	

            	
              
                By:

              

            	
               /s/ DeVan D. Ard, Jr.

            
	

            	

            	

            	
              DeVan D. Ard, Jr.

            
	

            	

            	

            	
              Chief Executive Officer

            

      

      

      	

            	
              BANK:

            	
              RELIANT BANK

            
	

            	

            	

            	

            
	

            	

            	
              By:

            	
              /s/ DeVan D. Ard, Jr.

            
	

            	

            	

            	
              DeVan D. Ard, Jr.

            
	

            	

            	

            	
              Chief Executive Officer

            

      

      

      	

            	
              EXECUTIVE:

            	

            
	

            	

            	

            
	

            	

            	
              /s/ Mark Seaton

            
	

            	

            	
              Mark Seaton

            

      

      

      (Signature Page to Seaton Employment Agreement)ava-ex41_6.htm

Exhibit 4.1

#6150151
AVISTA CORPORATION
TO

CITIBANK, N.A.

As Successor Trustee under

Mortgage and Deed of Trust,

dated as of June 1, 1939

________________________

Sixty-fourth Supplemental Indenture

Providing among other things for a series of bonds designated 
“First Mortgage Bonds, 3.07% Series due 2050”
Due September 30, 2050

________________________

Dated as of September 1, 2020

 

 

 

SIXTY-FOURTH SUPPLEMENTAL INDENTURE

THIS INDENTURE, dated as of the 1st day of September, 2020, 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, as trustee (the “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 (this “Sixty-fourth 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 Sixty-third Supplemental Indentures and, if the context shall so require, as to be supplemented by this Sixty-fourth Supplemental Indenture, being herein sometimes called the “Mortgage”); and

WHEREAS the Original Mortgage and the First Supplemental  Indenture, dated as of October 1, 1952, through the Twenty-fifth Supplemental Indenture, dated as of October 1, 1989, were appropriately filed and recorded in the various official records in the States of Washington, Idaho and Montana, as set forth in such Supplemental Indentures and in the Twenty-sixth Supplemental Indenture, dated as of April 1, 1993; and

WHEREAS for the purpose of confirming or perfecting the lien of the Original Mortgage, as then supplemented and amended, on additional properties of the Company located in the State of Oregon and additional counties in the State of Montana, the Company executed and delivered a Short Form Mortgage and Security Agreement, in multiple counterparts dated as of various dates in 1992, in furtherance of and  supplemental to the Original Mortgage, as then supplemented and amended, and such instrument was appropriately filed and recorded in the 

1

 

various official records in Oregon and Montana, as set forth in the aforesaid Twenty-sixth Supplemental Indenture; and

WHEREAS the aforesaid Twenty-sixth Supplemental Indenture through the Twenty-ninth Supplemental Indenture, dated as of  December 1, 2001, were appropriately filed and recorded in the various official records in the States of Washington, Idaho, Montana and Oregon, as set forth in the Twenty-seventh Supplemental Indenture, dated as of January 1, 1994,  through the Thirtieth Supplemental Indenture, dated as of May 1, 2002; and 

WHEREAS for the purpose of confirming or perfecting the lien of the Original Mortgage, as then supplemented and amended, on all its properties (other than specifically excepted property), including all real properties owned in fee, which were specifically described or referred to in Exhibit B to such instrument, all easements and other interests in and rights to use real property and all equipment and fixtures, the Company executed and delivered an Instrument of Further Assurance, dated as of December 15, 2001, in furtherance of and  supplemental to the Original Mortgage, as then supplemented and amended, and such instrument was appropriately filed and recorded in the various official records in the States of Washington, Idaho, Montana and Oregon; and

WHEREAS for the purpose of confirming or perfecting the lien of the Original Mortgage, as then supplemented and amended, on additional properties of the Company located in an additional county in the State of Oregon, the Company executed and delivered a Memorandum of  Mortgage and Security Agreement, dated as of May 29, 2003, in furtherance of and supplemental to the Original Mortgage, as then supplemented and amended, and such instrument was appropriately filed and recorded in the various official records in the State of Oregon; and 

WHEREAS the aforesaid Thirtieth Supplemental Indenture through the Sixty-second  Supplemental Indenture, dated as of November 1, 2019, were appropriately filed and recorded in the various official records in the States of Washington, Idaho, Montana and Oregon, as set forth in the Thirty-first Supplemental Indenture, dated as of May 1, 2003,  through the Sixty- third Supplemental Indenture, dated as of June 1, 2020; and

WHEREAS the Sixty-third Supplemental Indenture, dated as of June 1, 2020, 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

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

2

 

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 Sixty-fourth Supplemental Indenture and the terms of the Bonds of the Sixty‐fifth 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 Sixty-fourth Supplemental Indenture a valid, binding and legal instrument have been performed;

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

3

 

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 Sixty-fourth Supplemental Indenture, the real property located in the State of Washington, taken as a whole, that is so conveyed or intended to be so 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:  (1) 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, 

4

 

produced or purchased by the Company for sale, distribution or use in the ordinary course of its business; and (5) any property heretofore released pursuant to any provisions of the Mortgage and not heretofore disposed of by the Company; provided, however, that the property and rights expressly excepted from the lien and operation of the Mortgage in the above subdivisions (2) and (3) shall (to the extent permitted by law) cease to be so excepted in the event that the Trustee or a receiver or trustee shall enter upon and take possession of the Mortgaged and Pledged Property in the manner provided in Article XII of the Original Mortgage by reason of the occurrence of a Completed Default as defined in said Article XII.

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

IN TRUST NEVERTHELESS, for the same purposes and upon the same terms, trusts and conditions and subject to and with the same provisos and covenants as set forth in the Mortgage, this Sixty-fourth 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

Sixty-fifth Series of Bonds

SECTION 1. (I)There shall be a series of bonds designated “First Mortgage Bonds, 3.07% Series due 2050” (herein sometimes referred to as the “Bonds of the Sixty-fifth Series” or the “Bonds”), 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 Sixty-fifth 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 Sixty-fifth Series shall have the following terms and characteristics:

5

 

(a)the Bonds of the Sixty-fifth Series shall be limited in aggregate principal amount to $165,000,000 (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 the Bonds of the Sixty-fifth Series shall (unless theretofore paid) be payable on the Stated Maturity Date (as hereinafter defined);

(c)the Bonds of the Sixty-fifth Series shall bear interest at the rate of three and seven one-hundredths per centum (3.07%) per annum; interest on the Bonds shall accrue from and including September 30, 2020, except as otherwise provided in the form of bond attached hereto as Exhibit D; interest on the Bonds shall be payable on each Interest Payment Date and at Maturity (as each of such terms is hereinafter defined); and interest on the Bonds during any period less than one year 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 Sixty-fifth Series payable at Maturity shall be payable to the registered owner thereof 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 of the United States of America as at the time of payment is legal tender for public and private debts.  The interest on each Bond of the Sixty-fifth 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 Sixty-fifth 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 Sixty-fifth Series 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.

(e)(i)Prior to the Par Call Date (as hereinafter defined), the Bonds of the Sixty-fifth 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 on the Bonds being redeemed (assuming, for this purpose, that the Bonds were stated to mature on the Par Call Date and excluding any portion of any scheduled payment of interest that accrued prior to the redemption date), discounted to the date of redemption on a semiannual basis 

6

 

(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 and unpaid interest on such Bonds to the date of redemption.

(ii)On or after the Par Call Date, the Bonds of the Sixty-fifth 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 and unpaid interest on such Bonds to the date of redemption.

(f)(i)“Par Call Date” means March 31, 2050.

(ii)“Treasury Yield” means, with respect to any redemption of Bonds of the Sixty-fifth Series, 

(A)the yield to maturity reported in the Statistical Release, for the latest day for which such yields have been so reported as of the Calculation Date, for the U.S. Treasury constant maturity with a term equal to the remaining term of such Bonds (assuming, for this purpose, that the Bonds were stated to mature on the Par Call Date), or

(B)if there is no such U.S. Treasury constant maturity having a term equal to such remaining term, the yield to maturity determined by linear interpolation between (I) the U.S. Treasury constant maturity reported in the Statistical Release with the term next longer than such remaining term and (II) the U.S. Treasury constant maturity so reported with the term next shorter than such remaining term.

The Treasury Yield shall be rounded to two decimal places.  The Treasury Yield shall be calculated as of the third Business Day (as hereinafter defined) preceding the earlier of (X) the date notice of redemption is mailed to holders of Bonds of the Sixty-fifth Series and (Y) 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”).

(iii)“Statistical Release” means the daily statistical release entitled “H.15 Selected Interest Rates”, or any successor publication, published by the Board of Governors of the Federal Reserve System, or any successor entity; or, if such Board of Governors no longer publishes the information contained in such statistical release, a publication containing similar information published by the U.S. Department of the Treasury, or any successor or other U.S. governmental body.

(g)If less than all of the outstanding Bonds of the Sixty‐fifth Series are to be redeemed, the principal amount to be redeemed shall be prorated among all of the holders of the Bonds in the proportion that their respective holdings bear to the aggregate principal amount of the 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 

7

 

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 Bonds and the portions thereof so selected for redemption.

(h)Except as provided in this subsection (II) of Section 1,

(i)the Bonds of the Sixty-fifth Series shall not be redeemable prior to the Stated Maturity Date; and 

(ii)no amount other than the principal of and interest on the Bonds of the Sixty-fifth Series shall be payable in respect of the Bonds.

(i)in the event of any conflict between the provisions of Section 12.2(c) of the Bond Purchase Agreement and the provisions of the Mortgage, Section 12.2(c) of the Bond Purchase Agreement shall govern.

(III)At the option of the registered owner, any Bonds of the Sixty-fifth 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 Sixty-fifth 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 Sixty-fifth 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 Sixty-fifth Series; provided, however, that the Company shall not be required to make any transfer or exchange of any Bonds of the Sixty-fifth Series for a period of 10 days next preceding any Interest Payment Date or any selection of such Bonds for redemption, nor shall it be required to make any transfer or exchange of any Bonds of the Sixty-fifth Series which shall have been selected for redemption in whole or in part.

Unless and until the Company shall have delivered to the Trustee a written order to the contrary, the Bonds of the Sixty-fifth 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 Sixty-fourth Supplemental Indenture, except as otherwise expressly provided or unless the context otherwise requires, the terms listed below, 

8

 

when used with respect to the Bonds of the Sixty-fifth Series, shall have the meanings specified below:

“Bond Purchase Agreement” means the Bond Purchase Agreement, dated August 13, 2020, 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 Sixty-fifth Series, (b) any holder of a Bond of the Sixty-fifth Series holding (together with one or more of its affiliates) more than $1,000,000 in aggregate principal amount of the Bonds of the Sixty-fifth 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 March 31 and September 30 in each year, commencing March 31, 2021.

“Maturity” means the date on which the principal of the Bonds of the Sixty-fifth 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 September 30, 2050.

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

(a)an instrument wherein the Company, notwithstanding the effect of Section 106 of the Original Mortgage, 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 

9

 

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 Sixty-fourth Supplemental Indenture or the Bonds of the Sixty-fifth Series to the contrary notwithstanding, any payment of principal of or premium, if any, or interest on any Bond of the Sixty-fifth 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 Sixty-fifth 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

Upon the delivery of this Sixty-fourth Supplemental Indenture, Bonds of the Sixty-fifth Series in an aggregate principal amount of $165,000,000 are to be issued and will be Outstanding, in addition to $2,304,200,000 aggregate principal amount of bonds of prior series Outstanding at the date of delivery of this Sixty-fourth Supplemental Indenture; it being understood that, subject to the provisions of the Mortgage, there shall be no limit on the principal amount of bonds that may be authenticated and delivered under the Mortgage.

ARTICLE III

Prospective Amendments of Original Mortgage

SECTION 1. Each initial and subsequent holder of Bonds of the Sixty-fifth Series, by virtue of its acquisition of an interest therein, shall be deemed, without further act, to have consented to the amendments of the Original Mortgage, as heretofore amended, contemplated in Article III of the Fifty-eighth Supplemental Indenture, dated as of December 1, 2015, and set forth in Exhibit E(1) thereto, as amended in Section 2 of Article III of the Sixtieth 

10

 

Supplemental Indenture, dated as of December 1, 2017, and in Exhibits E(2) and E(3) to such Fifty-eighth Supplemental Indenture.

ARTICLE IV

Miscellaneous Provisions

SECTION 1. The terms defined in the Original Mortgage shall, for all purposes of this Sixty-fourth 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 Sixty-fourth 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 Sixty-fourth 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 Sixty-fourth Supplemental Indenture.

SECTION 3. Whenever in this Sixty-fourth 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 Sixty-fourth 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 Sixty-fourth Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the holders of the bonds Outstanding under the Mortgage, any right, remedy or claim under or by reason of this Sixty-fourth Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Sixty-fourth Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto and the holders of the bonds Outstanding under the Mortgage.

SECTION 5. This Sixty-fourth 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 Sixty-fourth Supplemental Indenture shall not be deemed to be any part thereof.

________________________

 

11

 

IN WITNESS WHEREOF, on the 23rd day of September, 2020, 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 23rd day of September, 2020, 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:  Executive Vice President,
Chief Financial Officer and Treasurer

Attest:

/s/ GREGORY C. HESLER
Name:  Gregory C. Hesler
Title:  Vice President, General Counsel,

Corporate Secretary and Chief Ethics and Compliance Officer

 

 

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

 

 

 

/s/ JASON E. LANG
Name: Jason E. Lang

/s/ MEGAN A. THILO
Name:  Megan A. Thilo

 

 

12

 

CITIBANK, N.A., as Trustee

 

 

 

	
 
	
By
	
/s/ DANNY LEE
Name: Danny Lee
Title:   Senior Trust Officer

Attest:

 

 

/s/ JOHN HANNON
Name:  John Hannon
Title:   Senior Trust Officer

 

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

/s/ LOUIS A. PISCITELLI
Name:  Louis A. Piscitelli

/s/ SHELLEY LEE
Name:  Shelley Lee

 

 

 

13

 

STATE OF WASHINGTON )

) ss.:

COUNTY OF SPOKANE)

On the 23rd day of September, 2020, before me personally appeared Mark T. Thies, to me known to be a the Executive Vice President, the Chief Financial Officer and the Treasurer 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 23rd day of September, 2020, before me, a Notary Public in and for the State and County aforesaid, personally appeared Mark T. Thies, known to me to be the Executive Vice President, the Chief Financial Officer and the Treasurer 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, 2021

14

 

STATE OF NEW YORK)

) ss.:

COUNTY OF NEW YORK)

On the 14th day of September, 2020 before me personally appeared Danny Lee, to me known to be a Senior Trust Officer 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 14th day of September, 2020, before me, a Notary Public in and for the State and County aforesaid, personally appeared Danny Lee, known to me to be a Senior Trust Officer 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/ KATE MOLINA

Kate Molina
Notary Public
State of New York
No. 01MO6387127
Qualified in Richmond County
My Commission Expires February 4, 2023

 

15

 

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

	
1
	
October 1, 1952
	
2
	
3-1/2% Series due 1982

(changed to 3-3/4% in Twelfth Supplemental Indenture)
	
30,000,000
	
None

	
2
	
May 1, 1953
	
3
	
3-7/8% Series due 1983
	
10,000,000
	
None

	
3
	
December 1, 1955
	
 
	
None
	
 
	
 

	
4
	
March 15, 1957
	
 
	
None
	
 
	
 

	
5
	
July 1, 1957
	
4
	
4-7/8% Series due 1987
	
30,000,000
	
None

	
6
	
January 1, 1958
	
5
	
4-1/8% Series due 1988
	
20,000,000
	
None

	
7
	
August 1, 1958
	
6
	
4-3/8% Series due 1988
	
15,000,000
	
None

	
8
	
January 1, 1959
	
7
	
4-3/4% Series due 1989
	
15,000,000
	
None

	
9
	
January 1, 1960
	
8
	
5-3/8% Series due 1990
	
10,000,000
	
None

	
10
	
April 1, 1964
	
9
	
4-5/8% Series due 1994
	
30,000,000
	
None

	
11
	
March 1 ,1965
	
10
	
4-5/8% Series due 1995
	
10,000,000
	
None

	
12
	
May 1, 1966
	
 
	
None
	
 
	
 

	
13
	
August 1, 1966
	
11
	
6% Series due 1996
	
20,000,000
	
None

	
14
	
April 1, 1970
	
12
	
9-1/4% Series due 2000
	
20,000,000
	
None

	
15
	
May 1, 1973
	
13
	
7-7/8% Series due 2003
	
20,000,000
	
None

	
16
	
February 1, 1975
	
14
	
9-3/8% Series due 2005
	
25,000,000
	
None

	
17
	
November 1, 1976
	
15
	
8-3/4% Series due 2006
	
30,000,000
	
None

	
18
	
June 1, 1980
	
 
	
None
	
 
	
 

	
19
	
January 1, 1981
	
16
	
14-1/8% Series due 1991
	
40,000,000
	
None

	
 
	
 
	
 
	
Subtotals
	
$347,000,000
	
None

A-1

 

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

	
NO.
	
DESIGNATION

	
20
	
August 1, 1982
	
17
	
15-3/4% Series due 1990-1992
	
$60,000,000
	
None

	
21
	
September 1, 1983
	
18
	
13-1/2% Series due 2013
	
60,000,000
	
None

	
22
	
March 1, 1984
	
19
	
13-1/4% Series due 1994
	
60,000,000
	
None

	
23
	
December 1, 1986
	
20
	
9-1/4% Series due 2016
	
80,000,000
	
None

	
24
	
January 1, 1988
	
21
	
10-3/8% Series due 2018
	
50,000,000
	
None

	
25
	
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

	
26
	
April 1, 1993
	
24
	
Secured Medium-Term Notes, Series A ($250,000,000 authorized)
	
250,000,000
	
13,500,000

	
27
	
January 1, 1994
	
25
	
Secured Medium-Term Notes, Series B ($250,000,000 authorized)
	
161,000,000
	
None

	
28
	
September 1, 2001
	
26
	
Collateral Series due 2002
	
220,000,000
	
None

	
29
	
December 1, 2001
	
27
	
7.75% Series due 2007
	
150,000,000
	
None

	
30
	
May 1, 2002
	
28
	
Collateral Series due 2003
	
225,000,000
	
None

	
31
	
May 1, 2003
	
29
	
Collateral Series due 2004
	
245,000,000
	
None

	
32
	
September 1, 2003
	
30
	
6.125% Series due 2013
	
45,000,000
	
None

	
33
	
May 1, 2004
	
31
	
Collateral Series due 2005
	
350,000,000
	
None

	
34
	
November 1, 2004
	
32
	
5.45% Series due 2019
	
90,000,000
	
None

	
35
	
December 1, 2004
	
33
	
Collateral Series 2004A
	
88,850,000
	
25,000,000

	
36
	
December 1, 2004
	
34

35
	
Collateral Series 2004B

Collateral Series 2004C
	
66,700,000

17,000,000
	
None

None

	
37
	
December 1, 2004
	
36
	
Collateral Series 2004D
	
350,000,000
	
None

	
38
	
May 1, 2005
	
37

38
	
Collateral Series 2005B

Collateral Series 2005C
	
66,700,000

17,000,000
	
None

None

	
39
	
November 1, 2005
	
39
	
6.25% Series due 2035
	
100,000,000

50,000,000
	
100,000,000

50,000,000

	
 
	
 
	
 
	
Subtotals
	
$2,885,950,000
	
$188,500,000

A-2

 

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

	
NO.
	
DESIGNATION

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

	
41
	
December 1, 2006
	
41
	
5.70% Series due 2037
	
150,000,000
	
150,000,000

	
42
	
April 1, 2008
	
42
	
5.95% Series due 2018
	
250,000,000
	
 None

	
43
	
November 1, 2008
	
43
	
Collateral Series 2008A
	
200,000,000
	
None

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

	
45
	
December 1, 2008
	
45
	
Collateral Series 2008B
	
17,000,000
	
None

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

	
47
	
November 1, 2009
	
47
	
Collateral Series 2009A
	
75,000,000
	
None

	
48
	
December 1, 2010
	
48

49
	
Collateral Series 2010A

Collateral Series 2010B
	
66,700,000

17,000,000
	
66,700,000

17,000,000

	
49
	
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

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

	
51
	
February 1, 2011
	
53
	
Collateral Series 2011A
	
400,000,000
	
None

	
52
	
August 1, 2011
	
 
	
None
	
 
	
 

	
53
	
December 1, 2011
	
54
	
4.45% Series due 2041
	
85,000,000
	
85,000,000

	
54
	
November 1, 2012
	
55
	
4.23% Series due 2047
	
80,000,000
	
80,000,000

	
55
	
August 1, 2013
	
56
	
Collateral Series 2013A
	
90,000,000
	
None

	
56
	
April 1, 2014
	
57
	
Collateral Series 2014A
	
400,000,000
	
None

	
57
	
December 1, 2014
	
58
	
4.11% Series due 2044
	
60,000,000
	
60,000,000

	
58
	
December 1, 2015
	
59
	
4.37% Series due 2045
	
100,000,000
	
100,000,000

	
59
	
December 1, 2016
	
60
	
3.54% Series due 2051
	
175,000,000
	
175,000,000

	
60
	
December 1, 2017
	
61
	
3.91% Series due 2047
	
90,000,000
	
90,000,000

	
61
	
May 1, 2018
	
62
	
4.35% Series due 2048
	
375,000,000
	
375,000,000

	
62
	
November 1, 2019
	
63
	
3.43% Series due 2049
	
180,000,000
	
180,000,000

	
63
	
June 1, 2020
	
64
	
Collateral Series 2020A
	
400,000,000
	
400,000,000

	
Subtotals $3,947,700,000

Totals $7,180,650,000
	
$2,115,700,000

$2,304,200,000

 

A-3

 

EXHIBIT B

 

FILING AND RECORDING OF

SIXTY-THIRD SUPPLEMENTAL INDENTURE

							
	
FILING IN STATE OFFICES

	
 
	
 
	
 
	
Financing Statement

Document Number

	
State
	
Office of
	
Date

	
Washington
	
Secretary of State
	
7/7/20
	
1393106

	
Idaho
	
Secretary of State
	
7/27/20
	
20201092451

	
Montana
	
Secretary of State
	
7/22/20
	
20200542238

	
Oregon
	
Secretary of State
	
7/6/2020
	
92450567

	
 

RECORDING IN COUNTY OFFICES

	
County
	
Office of
	
 

Real Estate Mortgage Records

 
	
Financing

Statement

Document

Number

	
Date
	
Document

Number
	
Book
	
Page
	
 

	
Washington
	
 
	
 
	
 
	
 
	
 
	
 

	
Adams
	
Auditor
	
6/29/20
	
324821
	
N/A
	
N/A
	
N/A

	
Asotin
	
Auditor
	
6/29/20
	
366759
	
N/A
	
N/A
	
N/A

	
Benton
	
Auditor
	
6/30/20
	
2020-022748
	
N/A
	
N/A
	
N/A

	
Douglas
	
Auditor
	
6/29/20
	
3231708
	
N/A
	
N/A
	
N/A

	
Ferry
	
Auditor
	
6/29/20
	
0293981
	
N/A
	
N/A
	
N/A

	
Franklin
	
Auditor
	
6/30/20
	
1916188
	
N/A
	
N/A
	
N/A

	
Garfield
	
Auditor
	
6/30/20
	
20202306
	
N/A
	
N/A
	
N/A

	
Grant
	
Auditor
	
6/29/20
	
1428844
	
N/A
	
N/A
	
N/A

	
Klickitat
	
Auditor
	
6/29/20
	
1140562
	
N/A
	
N/A
	
N/A

	
Lewis
	
Auditor
	
6/30/20
	
3526256
	
N/A
	
N/A
	
N/A

	
Lincoln
	
Auditor
	
6/29/20
	
2020-0484415
	
N/A
	
N/A
	
N/A

	
Pend Oreille
	
Auditor
	
6/29/20
	
20200339349
	
N/A
	
N/A
	
N/A

	
Skamania
	
Auditor
	
6/29/20
	
2020-001577
	
N/A
	
N/A
	
N/A

	
Spokane
	
Auditor
	
8/6/20
	
6952690
	
N/A
	
N/A
	
N/A

	
Stevens
	
Auditor
	
6/29/20
	
2020 0004815
	
N/A
	
N/A
	
N/A

	
Thurston
	
Auditor
	
7/29/20
	
4770679
	
N/A
	
N/A
	
N/A

	
Whitman
	
Auditor
	
7/9/20
	
759431
	
N/A
	
N/A
	
N/A

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Idaho
	
 
	
 
	
 
	
 
	
 
	
 

	
Benewah
	
Recorder
	
6/30/20
	
287286
	
N/A
	
N/A
	
N/A

	
Bonner
	
Recorder
	
7/7/20
	
960347
	
N/A
	
N/A
	
N/A

	
Boundary
	
Recorder
	
6/29/20
	
282335
	
N/A
	
N/A
	
N/A

	
Clearwater
	
Recorder
	
6/29/20
	
238157
	
N/A
	
N/A
	
N/A

B-1

 

							
	
Idaho
	
Recorder
	
6/29/20
	
524429
	
N/A
	
N/A
	
N/A

	
Kootenai
	
Recorder
	
7/7/20
	
2762352000
	
N/A
	
N/A
	
N/A

	
Latah
	
Recorder
	
6/29/20
	
606638
	
N/A
	
N/A
	
N/A

	
RECORDING IN COUNTY OFFICES

	
County
	
Office of
	
Real Estate Mortgage Records

 
	
 

	
Financing

Statement

Document

Number

	
Date
	
Document

Number
	
Book
	
Page

	
Idaho (cont.)
	
 
	
 
	
 
	
 
	
 
	
 

	
Lewis
	
Recorder
	
6/29/20
	
148442
	
N/A
	
N/A
	
N/A

	
Nez Perce
	
Recorder
	
7/13/20
	
878006
	
N/A
	
N/A
	
N/A

	
Shoshone
	
Recorder
	
7/7/20
	
504097
	
N/A
	
N/A
	
N/A

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Montana
	
 
	
 
	
 
	
 
	
 
	
 

	
Big Horn
	
Clerk & Recorder
	
6/29/20
	
360222
	
N/A
	
N/A
	
N/A

	
Broadwater
	
Clerk & Recorder
	
7/6/20
	
185838
	
N/A
	
N/A
	
N/A

	
Golden Valley
	
Clerk & Recorder
	
6/29/20
	
84046
	
M
	
20464
	
N/A

	
Meagher
	
Clerk & Recorder
	
6/30/20
	
146458
	
N/A
	
N/A
	
N/A

	
Mineral
	
Clerk & Recorder
	
6/29/20
	
121584
	
N/A
	
N/A
	
 

	
Rosebud
	
Clerk & Recorder
	
6/30/20
	
0123010
	
N/A
	
N/A
	
N/A

	
Sanders
	
Clerk & Recorder
	
6/29/20
	
316839
	
N/A
	
N/A
	
N/A

	
Stillwater
	
Clerk & Recorder
	
6/29/20
	
379163
	
N/A
	
N/A
	
N/A

	
Treasure
	
Clerk & Recorder
	
6/29/20
	
84490
	
N/A
	
N/A
	
N/A

	
Wheatland
	
Clerk & Recorder
	
6/29/20
	
11478
	
M
	
31102
	
N/A

	
Yellowstone
	
Clerk & Recorder
	
6/30/20
	
3926063
	
N/A
	
N/A
	
N/A

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Oregon
	
 
	
 
	
 
	
 
	
 
	
 

	
Douglas
	
Recorder
	
7/14/20
	
2020-012013
	
N/A
	
N/A
	
N/A

	
Jackson
	
Recorder
	
7/8/20
	
2020-023354
	
N/A
	
N/A
	
N/A

	
Josephine
	
Recorder
	
6/30/20
	
2020-009205
	
N/A
	
N/A
	
N/A

	
Klamath
	
Recorder
	
6/29/20
	
2020-007927
	
N/A
	
N/A
	
N/A

	
Morrow
	
Recorder
	
6/30/20
	
2020-46720
	
N/A
	
N/A
	
N/A

	
Union
	
Recorder
	
6/29/20
	
20202002
	
N/A
	
N/A
	
N/A

	
Wallowa
	
Recorder
	
6/30/20
	
00082031
	
N/A
	
N/A
	
N/A

 

 

 

 

 

B-2

EXHIBIT C

PROPERTY ADDITIONS

First

Additional PROTECTION, MITIGATION AND ENHANCEMENT PROPERTY of the Company, real, personal, or mixed, acquired, constructed and/or installed in, on, under and/or proximate to the Company’s hydroelectric generation developments 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 Montana, to wit:

 

Sanders County, Montana: “Trout Creek Boat Ramp”, granted by Trout Creek Community Improvement Association, Inc., a Montana non-profit corporation of Thompson Falls, Sanders County, dated July 29, 2020; the following real estate, situated in the county of Sanders, State of Montana:

 

A tract of land in that portion of the SE1/4NW1/4 and the SW1/4NE1/4 of Section 17, Township 24 North, Range31 West, PMM, Sanders County, Montana, lying between Montana Highway 200 and the Avista Project Boundary on the left bank of the Noxon Rapids Reservoir as per Volume 75 of Deeds, at page 96, records of Sanders County, Montana more particularly described on Certificate of Survey No. 3513.

 

Commonly known as: Trout Creek Boat Ramp – Tax ID: 11629

 

SUBJECT TO easements, reservations, restrictions, conditions and covenants of record. 

 

Second

BUSINESS OFFICE(S) AND/OR MISCELLANEOUS REAL ESTATE, in the State of Washington, to wit:

 

Spokane County, Washington: “Hatch Beacon Transmission Corridor”, granted by Patricia  R. Hatch, a widow, aka Patricia R. Wakefield, dated June 1, 2020; the following described real estate, situated in the County of Spokane, State of Washington:

 

A strip of land 200 feet in width across the North half of the Southwest quarter of said Section 2, Township 25 North, Range 43 East, W.M., the center line of said 200 foot strip of land being more particularly described as follows, to-wit:

 

Beginning at a point on the South line of the North half of the Southwest quarter of said Section 2, 945 feet east of the Southwest corner of said North half of the Southwest quarter of said Section 2 and running thence North 55°131/2 feet East a distance of 2,067 feet, more or less, to a point on the East line of said North half of the Southwest quarter of said Section 2;

Situate in the City of Spokane, Spokane County, Washington.

Subject To: Easements, Restrictions, Reservations, Conditions, and Covenants of Record.

Tax Parcel Number(s): 35023.0014

 

C-1

 

 

EXHIBIT D

 (Form of Bond)

PPN: 05379B  D#1

AVISTA CORPORATION

First Mortgage Bond, 3.07% Series due 2050

		
	
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 September 30, 2050 (the “Stated Maturity Date”)

DOLLARS

and to pay the registered owner hereof interest thereon semi-annually in arrears on March 31 and September 30 in each year (each such date, an “Interest Payment Date”), commencing March 31, 2021, and at Maturity (as hereinafter defined), at the rate of three and seven one-hundredths per centum (3.07%) 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 September 30, 2020 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

 

The principal of and premium, if any, and interest on this bond payable at Maturity shall be payable to the registered owner hereof 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 (as defined in the Sixty-fourth Supplemental Indenture referred to below) 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 such Sixty-fourth Supplemental Indenture) 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, 3.07% Series due 2050, 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 Sixty-fourth Supplemental Indenture, dated as of September 1, 2020 (the “Sixty-fourth 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, the terms and conditions upon which the bonds are and are to be secured and the circumstances under which additional bonds may be issued.  If there shall be a conflict between the terms of this bond and the provisions of the Mortgage, the provisions of the Mortgage shall control to the extent permitted by law.  The holder of this bond, by its acceptance hereof, shall be deemed to have consented and agreed to all of the terms and provisions of the Mortgage and, further, in the event that such holder shall not be the sole beneficial owner of this bond, shall be deemed to have agreed to use all commercially reasonable efforts to cause all direct and indirect beneficial owners of this bond to have knowledge of the terms and provisions of the Mortgage and of this bond and to comply therewith, including particularly, but without limitation, any provisions or restrictions in the Mortgage regarding the transfer or exchange of such beneficial interests and any legend set forth on this bond.

D-2

 

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.  Each initial and subsequent holder of bonds of this series, by virtue of its acquisition of an interest therein, shall be deemed, without further act, to have consented to the prospective amendments to the Original Mortgage set forth or referred to in the Sixty-fourth Supplemental Indenture.

The principal hereof, together with all accrued and unpaid interest hereon, 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 

D-3

 

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 the Par Call Date (as hereinafter defined), 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 on the bonds being redeemed (assuming for this purpose, that the bonds of this series were stated to mature on the Par Call Date and excluding any portion of any scheduled payment of interest that accrued prior to the redemption date), 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 and unpaid interest on such bonds to the date of redemption.

On or after the Par Call Date, 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 and unpaid interest on such bonds to the date of redemption.

“Par Call Date” means March 31, 2050.

“Treasury Yield” means, with respect to any redemption of bonds of this series,

(a)the yield to maturity reported in the Statistical Release, for the latest day for which such yields have been so reported as of the Calculation Date, for the U.S. Treasury constant maturity with a term equal to the remaining term of such bonds (assuming, for this purpose, that the bonds of the series were stated to mature on the par Call Date), or

(b)if there is no such U.S. Treasury constant maturity having a term equal to such remaining term, the yield to maturity determined by linear interpolation between (i) the U.S. Treasury constant maturity reported in the Statistical Release with the term next longer than such remaining term and (ii) the U.S. Treasury constant maturity reported in the Statistical Release with the term next shorter than such remaining term.  

The Treasury Yield shall be rounded to two decimal places.  The Treasury Yield shall be calculated as of the third Business Day preceding the earlier of (x) the date notice of redemption is mailed to holders of bonds of this series and (y) 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”).

D-4

 

“Statistical Release” means the daily statistical release entitled “H.15 Selected Interest Rates”, or any successor publication, published by the Board of Governors of the Federal Reserve System, or any successor entity; or, if such Board of Governors no longer publishes the information contained in such statistical release, a publication containing similar information published by the U.S. Department of the Treasury, or any successor or other U.S. governmental body.

Except as provided above, (a) the bonds of this series are not redeemable prior to the Stated Maturity Date and (b) no amount other than the principal of and interest on the bonds of this series shall be payable in respect of such bonds.

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.

____________________

 

D-5

 

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 alteration or enlargement or any change whatsoever.

D-6

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