Document:

Amndmt No. 1, dated April 6, 2006, to the Credit Agreement, dated Dec. 17, 2004

 Exhibit 10.1 
 DEFINTIVE AGREEMENT 
  

 AMENDMENT NO. 1 
 Dated as of April 6, 2006 
 to and under the 
 CREDIT AGREEMENT

 dated as of December 17, 2004 
 among 
 AVISTA CORPORATION, 
 THE BANKS PARTY THERETO, 
 BANK OF AMERICA, N.A., 
 as Managing Agent, 
 KEYBANK NATIONAL ASSOCIATION and U.S. BANK, NATIONAL ASSOCIATION, 
 as Documentation Agents, 
 WELLS FARGO BANK,

 as Documentation Agent and an Issuing Bank, 
 UNION BANK OF CALIFORNIA, N.A., 
 as Syndication Agent and an Issuing Bank, 
 and 
 THE BANK OF NEW YORK, 
 as Administrative Agent and an Issuing Bank 
  

 BNY CAPITAL MARKETS, INC. and UNION BANK OF CALIFORNIA, N.A. 
 Co-Lead Arrangers and Co-Book Managers 
  

 AMENDMENT NO. 1 
 Dated as of April 6, 2006 
 to 
 CREDIT AGREEMENT 
 Dated as of December 17, 2004 
 AVISTA CORPORATION, a Washington corporation, the Banks listed on the signature pages hereof, BANK OF AMERICA, N.A., as Managing Agent, KEYBANK NATIONAL
ASSOCIATION, as Documentation Agent, U.S. BANK, NATIONAL ASSOCIATION, as Documentation Agent, WELLS FARGO BANK, as Documentation Agent and an Issuing Bank, UNION BANK OF CALIFORNIA, N.A., as Syndication Agent and an Issuing Bank, and THE BANK OF NEW
YORK, as Administrative Agent and an Issuing Bank, agree as follows: 
 1. Credit Agreement. Reference is made to the Credit
Agreement, dated as of December 17, 2004, among Avista Corporation, a Washington corporation, the Banks party thereto, Bank of America, N.A., as Managing Agent, KeyBank National Association and U.S. Bank, National Association, as Documentation
Agents, Wells Fargo Bank, as Documentation Agent and an Issuing Bank, Union Bank of California, N.A., as Syndication Agent and an Issuing Bank, and The Bank of New York, as Administrative Agent and an Issuing Bank (the “Credit
Agreement”). Definitions of terms in the Credit Agreement apply to terms that are used and not otherwise defined herein. As used herein, the terms “Bond Delivery Agreement”, “First Mortgage Bond”, and “Supplemental
Indenture” have the meanings ascribed to such terms in Section 2 hereof and the term “Amendment Documents” means this Amendment, the Bond Delivery Agreement, the First Mortgage Bond and the Supplemental Indenture. 
 2. Amendments. Subject to satisfaction of the conditions precedent set forth in Section 4 below, effective as of April 6, 2006 (the
“Effective Date”), the Credit Agreement shall be amended as follows: 
 (a) The first paragraph of the Credit Agreement
immediately following the preamble is hereby amended by replacing the first sentence thereof with the following: 
 “The
Borrower has requested that the Banks agree to make loans and buy participations in letters of credit issued by the Issuing Banks on a revolving credit basis during the period commencing with the date hereof and ending on the Expiration Date (as
defined herein) in an aggregate principal amount not in excess of $320,000,000 at any time outstanding (subject to increase at the election of the Borrower by an aggregate amount not to exceed $100,000,000, upon satisfaction of certain conditions as
hereinafter provided).” 
 (b) The definition of “Commitment Fee” contained in Section 1.01 of the Credit Agreement shall
be deleted. 
 (c) The following new definitions shall be inserted in proper alphabetical order in Section 1.01 of the Credit Agreement.

  

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 ““Agreement” shall mean this Agreement, including all exhibits and
schedules hereto, as amended by the First Amendment.” 
 ““Facility Fee” shall have the meaning
assigned to such term in Section 2.06(a).” 
 ““First Amendment” shall mean Amendment
No. 1 to this Agreement, dated as of April 6, 2006.” 
 ““First Amendment Effective
Date” shall mean the “Effective Date” as defined in the First Amendment.” 
 ““Plan of
Exchange” shall mean the Plan of Share Exchange, dated as of February 13, 2006, between the Borrower and AVA Formation Corp., a Washington corporation.” 
 ““Reorganization Transactions” shall mean the reorganization transactions described in the AVA Formation Corp.
Registration Statement under the Securities Act of 1933 on Form S-4, filed on February 15, 2006, Registration No. 333-131872, under the heading “Holding Company Proposal”, including the Share Exchange and the Avista Capital
Dividend, in each case as defined in said Registration Statement, as amended by Amendment No. 1 thereto filed on March 23, 2006.” 
 (d) The definition of “Applicable Rate” contained in Section 1.01 of the Credit Agreement shall be amended to read as follows: 
 ““Applicable Rate” shall mean on any date with respect to the Facility Fee, Eurodollar Loans, ABR Loans or the LC Participation Fee, the rate per annum set forth in the following table in the
“Facility Fee”, “Eurodollar Margin”, “ABR Margin” or “LC Participation Fee” column, as applicable, for the Pricing Level in effect for such date. 
  

													
	 Pricing Levels
	  	 Facility
 Fee
	 	 	Eurodollar
Margin	 	 	ABR
Margin	 	 	LC
Participation
Fee	 
	 I
	  	0.100	%	 	0.300	%	 	0.000	%	 	0.300	%
	 II
	  	0.125	%	 	0.375	%	 	0.000	%	 	0.375	%
	 III
	  	0.150	%	 	0.500	%	 	0.000	%	 	0.500	%
	 IV
	  	0.200	%	 	0.675	%	 	0.000	%	 	0.675	%
	 V
	  	0.250	%	 	0.750	%	 	0.000	%	 	0.750	%

 For purposes of determining which Pricing Level is applicable in the foregoing table the following
rules will apply: 
 “Pricing Level I” will be applicable at any date if, at such date, the Senior Debt Rating is Third Lowest
Investment Grade or higher; 
 “Pricing Level II” will be applicable at any date if, at such date, the Senior Debt Rating is Second
Lowest Investment Grade and Pricing Level I is not applicable; 
  

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 “Pricing Level III” will be applicable at any date if, at such date, the Senior Debt Rating is
Lowest Investment Grade and neither Pricing Level I nor Pricing Level II are applicable; 
 “Pricing Level IV” will be applicable at
any date if, at such date, the Senior Debt Rating is Highest Non-Investment Grade and none of Pricing Level I, Pricing Level II or Pricing Level III are applicable; and 
 “Pricing Level V” will be applicable at any date if, at such date, the Senior Debt Rating is Second Highest Non-Investment Grade or lower. 
 In the event that the Company’s Senior Debt Ratings are split by one level, the higher rating will apply. In the event the ratings are split by more
than one level, the level that is one level below the higher rating will apply.” 
 (e) The definition of “Avista Utilities”
contained in Section 1.01 of the Credit Agreement shall be amended to read as follows: 
 ““Avista
Utilities” means (a) prior to the consummation of the Reorganization Transactions, the operating division of the Borrower which represents all the regulated utility operations of the Borrower that are responsible for retail electric
and natural gas distribution, electric transmission services and electric generation and production, and (b) from and after the consummation of the Reorganization Transactions, the Borrower.” 
 (f) The definition of “Bond Delivery Agreement” contained in Section 1.01 of the Credit Agreement shall be amended to read as follows:

 ““Bond Delivery Agreement” shall mean the Bond Delivery Agreement, dated as of
April 6, 2006, between the Borrower and the Administrative Agent.” 
 (g) The definition of “Expiration Date”
contained in Section 1.01 of the Credit Agreement shall be amended by replacing the date “December 16, 2009” with the date “April 5, 2011”. 
 (h) The definition of “Fees” contained in Section 1.01 of the Credit Agreement shall be amended to read as follows: 
 ““Fees” shall mean the Facility Fee and the other fees referred to in Section 2.06.” 
 (i) The definition of “First Mortgage Bond” contained in Section 1.01 of the Credit Agreement shall be amended to read as follows:

 ““First Mortgage Bond” shall mean a first mortgage bond of the Fortieth Series issued to the
Administrative Agent on the First Amendment Effective Date under a Supplemental Indenture, in a principal amount equal to the total Commitments on the date of execution and delivery of this Agreement, or any first mortgage bond issued under a
Supplemental Indenture to the First Mortgage in substitution for a First Mortgage 

  

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Bond, in each case in connection with a reduction or increase in the total Commitments pursuant to Section 2.10(b) or (c).” 
 (j) The definition of “Supplemental Indenture” contained in Section 1.01 of the Credit Agreement shall be amended to read as follows:

 ““Supplemental Indenture” shall mean the Fortieth Supplemental Indenture, dated as of April 1,
2006, between the Borrower and Citibank, N.A., as trustee under the First Mortgage, and any supplemental indenture to the First Mortgage, in form and substance satisfactory to the Administrative Agent, pursuant to which a First Mortgage Bond is
issued in substitution for a First Mortgage Bond, in connection with a reduction or increase in the total Commitments pursuant to Section 2.10(b) or (c).” 
 (k) Section 2.05(b) of the Credit Agreement is hereby amended by replacing the last sentence thereof with the following sentence: 
 “A Letter of Credit shall be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of each Letter of Credit the Borrower shall be deemed to represent and warrant that),
after giving effect to such issuance, amendment, renewal or extension, the total Revolving Credit Exposures shall not exceed the total Commitments.” 
 (l) Section 2.06(a) of the Credit Agreement shall be amended to read as follows: 
 “Section 2.06 Fees. (a) The Borrower agrees to pay to each Bank, through the Administrative Agent, on the first Business Day of January, April, July and October of each year and on the date on which the Commitment of such
Bank shall be reduced or terminated as provided herein, a facility fee at the Applicable Rate (a “Facility Fee”) on the daily amount of the Commitment of such Bank during the preceding quarter (or shorter period commencing with the date
hereof or ending with the Expiration Date or the date on which the Commitment of such Bank shall be reduced or terminated). The Facility Fees shall accrue on each day at a rate per annum equal to the Applicable Rate in effect on such day. All
Facility Fees shall be computed on the basis of a year of 365 or 366 days, as the case may be, and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). The Facility Fee due to each Bank shall
commence to accrue on the date of this Agreement and shall cease to accrue on the date on which the Commitment of such Bank shall be terminated as provided herein.” 
 (m) Section 2.06(b) of the Credit Agreement shall be amended by replacing clause (ii) therof with the following: 
 “(ii) to each Issuing Bank (directly) a fronting fee for Letters of Credit issued by such Issuing Bank, which shall accrue at the rate per annum of 0.075% on the average daily amount of such Issuing Bank’s
LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements of such Issuing Bank) during the period from and including the date of this Agreement to but excluding the later of the date of termination of the Commitments
and the date on which there ceases to be any LC Exposure (with the 

  

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calculation and payment of such fee to be determined by such Issuing Bank and the Borrower).” 
 (n) Section 3.06 of the Credit Agreement is hereby replaced with the following: 
 “Section 3.06 No Material Adverse Change. Except as disclosed in the Borrower’s Annual Report on Form 10-K for the fiscal
year ended December 31, 2005 and in any document filed after December 31, 2005, but prior to the First Amendment Effective Date, pursuant to Sections 13(a), 14 or 15(d) of the Securities Exchange Act of 1934, there has been no change in
the business, assets, operations or financial condition of the Borrower and the Subsidiaries, taken as a whole, since December 31, 2005, which could reasonably be expected to have a material adverse effect on the creditworthiness of the
Borrower. For the avoidance of doubt, the representation set forth in this Section 3.06 will be made solely at and as of the First Amendment Effective Date.” 
 (o) Section 4.01(b) of the Credit Agreement is hereby amended by replacing the parenthetical expression contained therein with the following: 
 “(excluding, in the case of a refinancing of Loans or the issuance, amendment, renewal or extension of a Letter of Credit or the refinancing of an LC
Disbursement that does not increase the Revolving Credit Exposure of any Bank, the representations set forth in Section 3.07, and, in the case of any Borrowing (including each Borrowing in which Loans are refinanced with new Loans) or any
issuances, amendments, renewals or extensions of a Letter of Credit after the First Amendment Effective Date, the representation set forth in Section 3.06)” 
 (p) Section 6.03 of the Credit Agreement is hereby amended by deleting the period (“.”) at the end thereof and adding there the following: 
 “; and, provided further that the Borrower and its Affiliates may consummate the Reorganization Transactions if the following conditions are
satisfied: (v) at all times before and after giving effect to the Reorganization Transactions, Avista Corporation (provided that its name may be changed in connection with the Reorganization Transactions so long as the Borrower provides to the
Administrative Agent not less than thirty (30) days prior written notice of such name change) will continue to be the Borrower under this Credit Agreement, and the Borrower will continue to operate its utility business subject to regulation by
the applicable state public utility commissions and the U.S. Federal Energy Regulatory Commission; (w) both before and after giving effect to the Reorganization Transactions no Default or Event of Default shall have occurred and be continuing;
(x) not less than five Business Days prior to consummation of the Reorganization Transactions, the Borrower shall have delivered to the Administrative Agent (for prompt delivery to the Banks) consolidated and consolidating statements of income
and statements of cash flow of the Borrower and its consolidated Subsidiaries, as of the date of those statements most recently delivered to the Administrative Agent and the Banks pursuant to Section 5.04 of the Credit Agreement, reflecting on
a pro forma basis the transfer by the Borrower of the capital stock of Avista Capital to AVA Formation Corp., certified by one of the Borrower’s Financial Officers, 

  

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and a copy of the Plan of Exchange, certified by one of the Borrower’s Responsible Officers; (y) concurrently with the delivery of financial
statements under the immediately preceding clause (x), the Borrower shall have delivered to the Administrative Agent (i) a certificate of the relevant accounting firm opining on or certifying such statements or Financial Officer (which
certificate, when furnished by an accounting firm, may be limited to accounting matters and disclaim responsibility for legal interpretations) certifying that to the knowledge of the accounting firm or the Financial Officer, as the case may be, no
Event of Default or Default has occurred, and (ii) a certificate of a Financial Officer setting forth in reasonable detail such calculations as are required to establish whether the Borrower was in compliance with Sections 6.05 and 6.06 on a
pro forma basis on the date of such financial statements, and (z) a certificate of a Responsible Officer, in form and substance satisfactory to the Administrative Agent, stating that the Reorganization Transactions have been effected in
accordance with the Plan of Exchange, without amendment, modification or waiver of any kind not consented to by the Administrative Agent and that the conditions of this Section 6.03 have been satisfied.” 
 (q) Section 6.04 of the Credit Agreement is hereby amended by deleting the period (“.”) at the end thereof and adding there the following:

 “; and, provided further that the Borrower and its Affiliates may consummate the Reorganization Transactions.” 

(r) Section 6.05 of the Credit Agreement is hereby replaced with the following: 
 “Section 6.05 Consolidated Total Debt to Consolidated Total Capitalization Ratio. The Borrower shall not permit the ratio of
Consolidated Total Debt to Consolidated Total Capitalization to be greater than (a) at any time prior to consummation of the Reorganization Transactions, 70.0%, (b) at any time during the period from and after consummation of the
Reorganization Transactions to and including December 31, 2007, 75.0%, and (c) at any time on and after January 1, 2008, 70.0%.” 
 (s) Article VII of the Credit Agreement is hereby amended by replacing paragraph (l) thereof with the following: 
 “(l) a Change in Control other than as a direct and proximate result of the consummation of the Reorganization Transactions in strict compliance with Section 6.03 shall occur;” 
 (t) Schedule 2.01 to the Credit Agreement shall be replaced by Schedule 2.01 attached hereto. 
 3. Representations and Warranties. In order to induce the Banks and the Issuing Banks to enter into this Amendment, the Borrower represents and
warrants as follows: 
 (a) The Borrower has the corporate power and authority (i) to execute and deliver the Amendment Documents,
(ii) to perform its obligations under the Amendment Documents and the Loan Documents as amended thereby, and (iii) to borrow Loans and have Letters of 

  

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Credit issued in the maximum amount available under the Credit Agreement as amended hereby. 
 (b) The execution and delivery by the Borrower of the Amendment Documents, the performance by the Borrower of its obligations under the Amendment
Documents and the Loan Documents as amended thereby, and the borrowing of Loans and procurement of Letters of Credit in the maximum amount available under the Credit Agreement as amended hereby (collectively, the “Transactions”)
(i) have been duly authorized by all requisite corporate and, if required, stockholder action, and (ii) will not (A) violate (I) any provision of law, statute, rule or regulation the violation of which could reasonably be
expected to impair the validity and enforceability of any Amendment Document or any Loan Document as amended thereby or materially impair the rights of or benefits available to the Administrative Agent, the Banks or the Issuing Banks under the
Amendment Documents or the Loan Documents as amended thereby, or of the certificate or articles of incorporation or other constitutive documents or by laws of the Borrower or any Significant Subsidiary, (II) any order of any Governmental Authority
the violation of which could reasonably be expected to impair the validity or enforceability of any Amendment Document or any Loan Document as amended thereby, or materially impair the rights of or benefits available to the Administrative Agent, the
Banks or the Issuing Banks under the Amendment Documents or the Loan Documents as amended thereby, or (III) any provision of any indenture or other material agreement or instrument evidencing or relating to borrowed money to which the Borrower or
any Significant Subsidiary is a party or by which any of them or any of their property is or may be bound in a manner which could reasonably be expected to impair the validity and enforceability of any Amendment Document or any Loan Document as
amended thereby or materially impair the rights of or benefits available to the Administrative Agent, the Banks or the Issuing Banks under any Amendment Document or any Loan Document as amended thereby, (B) be in conflict with, result in a
breach of or constitute (alone or with notice or lapse of time or both) a default under any such indenture, agreement or other instrument in a manner which could reasonably be expected to impair the validity and enforceability of any Amendment
Document or any Loan Document as amended thereby or materially impair the rights of or benefits available to the Administrative Agents, the Banks or the Issuing Banks under any Amendment Document or any Loan Document as amended thereby or
(C) result in the creation or imposition under any such indenture, agreement or other instrument of any Lien upon or with respect to any property or assets now owned or hereafter acquired by the Borrower. 
 (c) This Amendment has been duly executed and delivered by the Borrower and constitutes, and each other Amendment Document when executed and delivered by
the Borrower, and the Loan Documents as amended thereby, will constitute, legal, valid and binding obligations of the Borrower enforceable against the Borrower in accordance with its terms. 
 (d) No action, consent or approval of, registration or filing with or any other action by any Governmental Authority is or will be required in connection
with the Transactions, except such as have been made or obtained and are in full force and effect. 
  

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 (e) Each representation and warranty made in the Loan Documents is true and correct at and as of the date
hereof after giving effect to the Amendment Documents, except to the extent such representations and warranties expressly relate to an earlier date. 
 (f) No Default or Event of Default has occurred and is continuing after giving effect to the Amendment Documents. 
 4. Conditions to Effectiveness. The amendments provided for in Section 2 above shall become effective as of the Effective Date, but shall not become effective as of such date unless and until each of the following conditions
precedent shall have been satisfied: 
 (a) The Administrative Agent shall have received each of the following, in form and substance
satisfactory to it: 
 (i) This Amendment duly executed by the Borrower and all of the Banks. 
 (ii) Opinion of Heller Ehrman LLP, counsel to the Borrower, dated the date of this Amendment and addressed to the Administrative Agent,
the Banks and the Issuing Banks, with respect to such matters relating to the Borrower, the Amendment Documents and the Loan Documents as amended thereby, as the Administrative Agent, any Bank or any Issuing Bank may reasonably request. The Borrower
hereby instructs such counsel to deliver such opinion to the Administrative Agent. 
 (iii) Evidence satisfactory to the
Administrative Agent that the Borrower shall have obtained all consents and approvals of, and shall have made all filings and registrations with, any Governmental Authority required in order to consummate the Transactions, in each case without the
imposition of any condition which, in the judgment of the Banks or the Issuing Banks, could adversely affect their rights or interests under the Amendment Documents or the Loan Documents as amended thereby. 
 (iv) A copy of the certificate or articles of incorporation, including all amendments thereto, of the Borrower, certified as of a recent
date by the Secretary of State of the state of its organization, and a certificate as to the good standing of the Borrower as of a recent date, from such Secretary of State. 
 (v) A certificate of the Secretary or Assistant Secretary of the Borrower dated the date of this Amendment and certifying (A) that
attached thereto is a true and complete copy of the by-laws of the Borrower as in effect on the date of this Amendment and at all times since a date prior to the date of the resolutions described in clause (B) below, (B) that attached
thereto is a true and complete copy of resolutions duly adopted by the board of directors of the Borrower authorizing the Transactions, and that such resolutions have not been modified, rescinded or amended and are in full force and effect,
(C) that the certificate or articles of incorporation of the Borrower have not been amended since the date of the last amendment thereto shown on the certificate of good standing furnished pursuant to clause (iv) above, and (D) as to
the incumbency and specimen signature of each officer executing any Amendment Document or any other document delivered in connection therewith on behalf of the Borrower. 
  

 8 

 (vi) A certificate of another officer as to the incumbency and specimen signature of the
Secretary or Assistant Secretary executing the certificate pursuant to clause (iv) above. 
 (vii) A certificate, dated
the date of this Amendment and signed by a Financial Officer of the Borrower, confirming compliance with the conditions precedent set forth in paragraphs (e) and (f) of Section 3 hereof. 
 (viii) Evidence satisfactory to the Administrative Agent that the Amendment Documents have been executed and delivered by all parties
thereto. 
 (ix) A certificate, dated the date of this Amendment and signed by the Secretary or an Assistant Secretary of the
Borrower, certifying that (A) the First Mortgage has not been amended or supplemented since the certified copy thereof delivered by the Borrower pursuant to Section 4.02(a)(viii) of the Credit Agreement, except as supplemented by the
Thirty-Eighth Supplemental Indenture dated as of May 1, 2005, and the Thirty-Ninth Supplemental Indenture dated as of November 1, 2005 and the Supplemental Indenture, and (B) attached thereto is a true and complete copy of the
Thirty-Eighth Supplemental Indenture dated as of May 1, 2005 and the Thirty-Ninth Supplemental Indenture dated as of November 1, 2005. 
 (x) A copy of title insurance policy No. NSL 31426-SEA issued by First American Title Insurance Company, together with copies of all endorsements thereto, naming the trustee under the First Mortgage as the insured,
insuring the Borrower’s title to the real property subject to Lien of the First Mortgage, and the validity and first priority of the Lien of the First Mortgage (subject to Liens permitted to exist by the terms of the First Mortgage), in an
amount not less than the principal amount of the First Mortgage Bond, certified by a Responsible Officer of the Borrower. 
 (xi) Such other documents as the Administrative Agent, the Banks, the Issuing Banks or their respective legal counsel may reasonably request. 
 (b) All fees payable by the Borrower to the Administrative Agent, the Issuing Banks, the Banks or any of their Affiliates on or prior to the date of this Amendment with respect to this Amendment, and all amounts
payable by the Borrower pursuant to Section 9.05 of the Credit Agreement for which invoices have been delivered to the Borrower on or prior to such date, shall have been paid in full or arrangements satisfactory to the Administrative Agent
shall have been made to cause them to be paid in full concurrently with the disbursement of the proceeds of any Borrowing to be made on such date. 
 (c) All legal matters incident to the Amendment Documents and the Loan Documents as amended thereby and the transactions contemplated thereby shall be reasonably satisfactory to the Administrative Agent, the Banks, the Issuing Banks and
their respective legal counsel. 
 5. Assignment of Loans, LC Disbursements and LC Participations to Reflect Amended Commitments. On
the Effective Date, the Banks whose Pro Rata Shares after giving effect to this Amendment are greater than their Pro Rata Shares prior to giving effect to this 

  

 9 

 
Amendment (each an “Increasing Bank”) shall purchase, as an assignment from the Banks whose Pro Rata Shares after giving effect to this
Amendment are less than their Pro Rata Shares prior to giving effect to this Amendment (each a “Decreasing Bank”), such portions of the Decreasing Banks’ Loans, unreimbursed LC Disbursements and participations in Letters of
Credit outstanding at such time such that, after giving effect to such assignments, the respective aggregate amount of Loans, unreimbursed LC Disbursements and participations in Letters of Credit of each Bank shall be equal to such Bank’s Pro
Rata Share of the aggregate Loans, unreimbursed LC Disbursements and participations in Letters of Credit outstanding. The purchase price for the Loans, unreimbursed LC Disbursements and participations in Letters of Credit so assigned shall be the
sum of (i) the principal amount of the Loans and unreimbursed LC Disbursements so assigned plus the amount of accrued and unpaid interest thereon as of the date of assignment and (ii) the amount of accrued and unpaid LC Participation Fees
as of the date of assignment on the participations in Letters of Credit so assigned. Each Increasing Bank shall pay the aggregate purchase price payable by it to the Administrative Agent on the Effective Date and the Administrative Agent shall
promptly forward to each Decreasing Bank the portion thereof payable to it. Upon payment by an Increasing Bank of the purchase price payable by it to a Decreasing Bank, such Decreasing Bank shall be automatically deemed to have sold and made the
applicable assignments to such Increasing Bank and shall, to the extent of the interest assigned, be released from its obligations under the Loan Documents, and such Increasing Bank shall be automatically deemed to have purchased and assumed such
assignments from such Decreasing Bank and, if not already a Bank hereunder, shall be a party hereto and, to the extent of the interest assigned, have the rights and obligations of a Bank under the Loan Documents. Without in any way limiting the
foregoing, each Decreasing Bank whose Pro Rata Share after giving effect to this Amendment is zero, shall, by executing its signature page hereto, be deemed on the Effective Date to consent to this Amendment and, simultaneously with the
effectiveness hereof, without any further action on its part, to assign all of its Commitments, Loans and LC Disbursements, with the effect that it shall be discharged from its Commitments and other obligations (other than the return of its Notes)
and shall no longer be a Bank under the Credit Agreement. The Borrower and the Administrative Agent shall be deemed to have consented to the assignments effected pursuant to this Section 5. The Administrative Agent shall record the Commitments,
Loans and LC Disbursements of each Bank as provided in Section 10.04(c) of the Credit Agreement to reflect such assignments. 
 6.
Effect of Interest and Fee Rate Amendments. Any changes in interest or fees rates effected by this Amendment shall apply with respect to interest and fees accruing for the Effective Date and periods thereafter, while interest and fees rates
in effect prior to the effectiveness of such amendments shall continue to be applicable for accruals for periods prior to the Effective Date. 
 7. Confirmation of Amended Agreement. The Credit Agreement as amended by this Amendment is and shall continue to be in full force and effect and is hereby in all respects confirmed, approved and ratified. 
 8. Governing Law. This Amendment shall be construed in accordance with and governed by the law of the State of New York. 
  

 10 

 9. Counterparts. This Amendment may be signed in any number of counterparts, each of which shall
be an original, with the same effect as if the signatures thereto were upon the same instrument. 
 10. Headings. Section headings in
this Amendment are included herein for convenience and reference only and shall not constitute a part of this Amendment for any other purpose. 
 [The next page is the signature page] 
  

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 WITNESS the due execution hereof as of the date first above written. 
  

			
	 AVISTA CORPORATION

		
	 By:
	 	 /s/ Malyn K. Malquist

	 Name: Malyn K. Malquist

	 Title: Sr VP & CFO

 Amendment No. 1 to and under Credit Agreement dated as of December 17, 2004 

 WITNESS the due execution hereof as of the date first above written. 
  

			
	 THE BANK OF NEW YORK,

	 as Administrative Agent, an Issuing Bank and a
 Bank

		
	 By:
	 	 /s/ Raymond J. Palmer

	 Name: Raymond J. Palmer

	 Title: Vice President

 Amendment No. 1 to and under Credit Agreement dated as of December 17, 2004 

 WITNESS the due execution hereof as of the date first above written. 
  

			
	 UNION BANK OF CALIFORNIA, N.A.,

	 as Syndication Agent, an Issuing Bank and a
 Bank

		
	 By:
	 	 /s/ Bryan Read

	 Name: Bryan Read

	 Title: Vice President

 Amendment No. 1 to and under Credit Agreement dated as of December 17, 2004 

 WITNESS the due execution hereof as of the date first above written. 
  

			
	 WELLS FARGO BANK,

	 as Documentation Agent, an Issuing Bank and a Bank

		
	 By:
	 	 /s/ Tom Beil

	 Name: Tom Beil

	 Title: Vice President

 Amendment No. 1 to and under Credit Agreement dated as of December 17, 2004 

 WITNESS the due execution hereof as of the date first above written. 
  

			
	 BANK HAPOALIM B.M.

	 NEW YORK BRANCH,

	 as a Bank

		
	 By:
	 	 /s/ Marc Bosc

	 Name: Marc Bosc

	 Title: Vice President

		
	 By:
	 	 /s/ Lenroy Hackett

	 Name: Lenroy Hackett

	 Title: First Vice President

 Amendment No. 1 to and under Credit Agreement dated as of December 17, 2004 

 WITNESS the due execution hereof as of the date first above written. 
  

			
	 BANK OF AMERICA, N.A.,

	 as Managing Agent and a Bank

		
	 By:
	 	 /s/ James J. Teichman

	 Name: James J. Teichman

	 Title: Vice President

 Amendment No. 1 to and under Credit Agreement dated as of December 17, 2004 

 WITNESS the due execution hereof as of the date first above written. 
  

			
	 COMERICA WEST INCORPORATED,

	 as a Bank

		
	 By:
	 	 /s/ Don R. Carruth

	 Name: Don R Carruth

	 Title: Corporate Banking Officer

 Amendment No. 1 to and under Credit Agreement dated as of December 17, 2004 

 WITNESS the due execution hereof as of the date first above written. 
  

			
	 FIRST COMMERCIAL BANK, NEW YORK
 AGENCY,

	 as a Bank

		
	 By:
	 	 /s/ Bruce M. J. Ju

	 Name: Bruce M. J Ju

	 Title: Vice President & General Manager

 Amendment No. 1 to and under Credit Agreement dated as of December 17, 2004 

 WITNESS the due execution hereof as of the date first above written. 
  

			
	 GOLDMAN SACHS CREDIT PARTNERS L.P.,

	 as a Bank

		
	 By:
	 	 /s/ William W. Archer

	 Name: William W. Archer

	 Title: Managing Director

 Amendment No. 1 to and under Credit Agreement dated as of December 17, 2004 

 WITNESS the due execution hereof as of the date first above written. 
  

			
	 KEYBANK NATIONAL ASSOCIATION,

	 as Documentation Agent and a Bank

		
	 By:
	 	 /s/ Keven D. Smith

	 Name: Keven D. Smith

	 Title: Senior Vice President

 Amendment No. 1 to and under Credit Agreement dated as of December 17, 2004 

 WITNESS the due execution hereof as of the date first above written. 
  

			
	 MIZUHO CORPORATE BANK, LTD.,

	 as a Bank

		
	 By:
	 	 /s/ Raymond Ventura

	 Name: Raymond Ventura

	 Title: Deputy General Manager

 Amendment No. 1 to and under Credit Agreement dated as of December 17, 2004 

 WITNESS the due execution hereof as of the date first above written. 
  

			
	 SOCIÉTÉ GÉNÉRALE

	 as a Bank

		
	 By:
	 	 /s/ Nigel Elvey

	 Name: Nigel Elvey

	 Title: Vice President

 Amendment No. 1 to and under Credit Agreement dated as of December 17, 2004 

 WITNESS the due execution hereof as of the date first above written. 
  

			
	 U.S. BANK, NATIONAL ASSOCIATION,

	 as Documentation Agent and a Bank

		
	 By:
	 	 /s/ Kurbanali H. Merchant

	 Name: Kurbanali H. Merchant

	 Title: Vice President

 Amendment No. 1 to and under Credit Agreement dated as of December 17, 2004 

 THE UNDERSIGNED BANK HEREBY CONSENTS TO THE AMENDMENT TO WHICH THIS SIGNATURE PAGE IS ATTACHED AND AGREES THAT
IMMEDIATELY UPON THE EFFECTIVENESS HEREOF IT SHALL ASSIGN AND BE DEEMED TO ASSIGN, WITHOUT ANY FURTHER ACTION ON ITS PART, ALL OF ITS LOANS AND COMMITMENTS AS PROVIDED IN PARAGRAPH 5 HEREOF AND THAT IT SHALL NO LONGER BE A BANK UNDER THE CREDIT
AGREEMENT. 
  

			
	 ALLIED IRISH BANKS, p.l.c.,

	 as a Bank

		
	 By:
	 	 /s/ Aidan Lanigan

	 Name: Aidan Lanigan

	 Title: Vice President

		
	 By:
	 	 /s/ Mark K. Connelly

	 Name: Mark K. Connelly

	 Title: Vice President

 Amendment No. 1 to and under Credit Agreement dated as of December 17, 2004 

 THE UNDERSIGNED BANK HEREBY CONSENTS TO THE AMENDMENT TO WHICH THIS SIGNATURE PAGE IS ATTACHED AND AGREES THAT
IMMEDIATELY UPON THE EFFECTIVENESS HEREOF IT SHALL ASSIGN AND BE DEEMED TO ASSIGN, WITHOUT ANY FURTHER ACTION ON ITS PART, ALL OF ITS LOANS AND COMMITMENTS AS PROVIDED IN PARAGRAPH 5 HEREOF AND THAT IT SHALL NO LONGER BE A BANK UNDER THE CREDIT
AGREEMENT. 
  

			
	 STERLING SAVINGS BANK,

	 as a Bank

		
	 By:
	 	 /s/ Jill Scheuermann

	 Name: Jill Scheuermann

	 Title: Vice President

 Amendment No. 1 to and under Credit Agreement dated as of December 17, 2004 

 SCHEDULE 2.01 
 Names, Commitments, Addresses for Banks on First Amendment Effective Date 
  

				
	 Bank
	  	Commitment
	 The Bank of New York
 One Wall Street, 19th Floor
 New York, New York 10286
 Attention: Ray Palmer
 Telecopy: 212-635-7923
	  	$	45,000,000
		
	 Bank Hapoalim B.M.
 New York Branch
 1177 Avenue of the Americas
 New York, NY 10036
 Attention: Marc Bosc
 Telecopy: (212) 782-2382
	  	$	10,000,000
		
	 Bank of America, N.A.
 800 5th Avenue, Floor 35
 Seattle, WA 98104
 WA1-501-35-01
 Attention: Gordon Gray
 Telecopy: 206-585-5641
	  	$	30,000,000
		
	 Comerica West Incorporated
 Fourth Floor / MC 4465
 611 Anton Blvd
 Costa Mesa, CA 92626
 Attention: Don R. Carruth
 Telecopy: 714-433-3236
	  	$	20,000,000
		
	 First Commercial Bank, New York Agency
 750 Third Avenue, 34th Floor
 New York, NY 10017
 Attention: Carol Chou
 Telecopy: 212-599-6133
	  	$	10,000,000
		
	 Goldman Sachs Credit Partners L.P.
 1 New York Plaza, 42nd Floor
 New York, NY 10004
 Attention: Philip Green
 Telecopy: 212-357-4597
	  	$	15,000,000

				
	 Bank
	  	Commitment
	 KeyBank National Association
 127 Public Square
 Cleveland, OH 10286
 Attention: Sherrie Manson
 Telecopy: (216) 689-4981
	  	$	35,000,000
		
	 Mizuho Corporate Bank, Ltd.
 1251 Avenue of the Americas
 New York, NY 10020-1104
 Attention: Nelson Chang
 Telecopy: 212-282-4488
	  	$	25,000,000
		
	 Société Générale
 1221 Avenue of the Americas
 New York, NY 10020
 Attention: Wayne Hutton
 Telecopy: 212-278-6203
	  	$	15,000,000
		
	 Union Bank of California, N.A.
 445 S. Figueroa Street
 Los Angeles, CA 90071
 Attention: Karen Elliott
 Telecopy: (213) 236-4096
	  	$	45,000,000
		
	 U.S. Bank, National Association
 1420 Fifth Avenue, 1lth Floor
 Seattle, WA 98101
 Attention: Kurban Merchant
 Telecopy: (206) 344-3654
	  	$	35,000,000
		
	 Wells Fargo Bank
 221 N. Wall Street, Suite 310
 Spokane, WA 99201
 Attention: Tom Beil
 Telecopy: (509) 363-6875
	  	$	35,000,000
		
	 TOTAL:
	  	$	320,000,000Stock Plan and Agreement

 Exhibit 10.1 
 STOCK OPTION AND RESTRICTED STOCK 
 PLAN AND AGREEMENT WITH HAKAN AKBAS 
 This Stock Option and Restricted Stock Plan and Agreement (this “Agreement”), is made effective as of April 6, 2006 (the “Effective
Date”), by and between Document Sciences Corporation, a Delaware corporation (the “Company”), and Hakan Akbas (“Grantee”). 
 RECITALS 
 WHEREAS, the Company has agreed to employ Grantee starting on March 13, 2006 under terms and conditions set
forth in that certain employment agreement dated of February 24, 2006 (the “Executive Employment Agreement”), by and between the Company and Grantee. 
 WHEREAS, for the purpose of encouraging and rewarding Grantee’s contributions to the performance of the Company and aligning Grantee’s interests with the interests of the Company’s stockholders, and as
inducement material to Grantee entering into the Executive Employment Agreement with the Company, the Company, in the Executive Employment Agreement, has agreed to grant to Grantee options to purchase 25,000 shares of Company common stock, $0.01 par
value per share (the “Common Stock”) and a restricted stock award of 25,000 shares of Common Stock as of the Effective Date. 
 AGREEMENT 
 NOW, THEREFORE, to evidence the grant of options and awarding of restricted stock by the Company and to set forth
the terms and conditions of the grant of options and the restricted stock award, the Company and Grantee hereby agree as follows: 
 1.
Grant of Options. The Company hereby grants to Grantee, effective as of the Effective Date, non-qualified options to purchase up to 25,000 shares of Common Stock on the terms and subject to the conditions set forth herein (the
“Options”). 
 2. Exercisability and Exercise Price. The Options will become exercisable according to the following
schedule: 30% of the Options will vest on and as of March 13, 2007, and the remaining 70% will vest ratably on a monthly basis on and as of the last day of each calendar month over the 24 calendar months following March 13, 2007, at an
option exercise price equal to $7.07 per share (the “Exercise Price”), which represents 100% of the Fair Market Value (as defined below) per share of Common Stock as of the Effective Date. Unless otherwise provided in this Agreement, no
Option may be exercised unless Grantee is then employed by the Company and unless Grantee has remained continuously employed by the Company since the Effective Date. 
 As used in this Agreement, “Fair Market Value” per share at any date shall mean (a) if the Common Stock is listed on an exchange or exchanges, the last reported sales price per share on such date on the
principal exchange on which it is traded; or (b) if the Common Stock is traded on the Nasdaq Stock Market, the last reported sales price per share for the Common Stock; or (c) if the Common Stock is not listed on an exchange or traded on
the Nasdaq Stock Market, an amount determined in good faith by the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”), taking into account the price at which securities of reasonably comparable
corporations are being traded, 

 
adjusted for any dissimilarities, and the earnings history, book value and prospects of the Company in light of then existing general market conditions.

 3. Termination of Options. 
 (a) Unless an earlier termination date occurs as specified in this Section 3, the Options will expire and become unexercisable (whether or not then exercisable) on the tenth (10th) anniversary of the
Effective Date (the “Expiration Date”). 
 (b) If Grantee’s employment with the Company is terminated by the
Company for Cause (as such term is defined in the Executive Employment Agreement) prior to the Expiration Date, all Options shall terminate immediately as of the date of Grantee’s termination of employment. 
 (c) If Grantee’s employment with the Company is terminated for any reason other than as set forth in Section 3(b) hereof
(including if due to death, disability or retirement), all outstanding Options may be exercised by Grantee until the earlier of (i) three months after the date of such termination and (ii) the Expiration Date. 
 4. Manner of Exercise of Options; Medium and Time of Payment. 
 (a) To the extent that the Options have become and remain exercisable as provided in Sections 2 and 3, and subject to such reasonable
administrative regulations as the Compensation Committee may adopt, the Options may be exercised, by (i) giving written notice of such exercise to the Compensation Committee, specifying the number of Exercise Shares and the date on which the
Grantee intends to exercise the Options (the “Exercise Date”), (ii) delivering to the Compensation Committee proof of assignment (if the holder of the Options is not the Grantee) and (iii) making adequate arrangements to take
care of the required withholding obligations. 
 (b) The Exercise Price shall be paid in full, at the time of exercise, in
cash or cash equivalents or, with the approval of the Compensation Committee, in shares of Common Stock which have been held by Grantee for a period of at least six calendar months preceding the date of surrender and which have an aggregate Fair
Market Value equal to the Exercise Price, or in a combination of cash and such shares, and may be effected in whole or in part (i) with monies received from the Company at the time of exercise as a compensatory cash payment; or
(ii) through a sale and remittance procedure pursuant to which Grantee shall concurrently provide irrevocable instructions to (A) a brokerage firm to effect the immediate sale of the purchased shares and remit to the Company, out of the
sale proceeds available on the settlement date, sufficient funds to cover the aggregate Exercise Price payable for the purchased shares plus all applicable income and employment taxes required to be withheld by the Company by reason of such exercise
and (B) the Company to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale. Any shares of Common Stock or other non-cash consideration assigned and delivered to the Company in payment
or partial payment of the Exercise Price will be valued at Fair Market Value per share on the exercise date. 
 (c) The
Compensation Committee may require Grantee to furnish or execute such other documents as the Compensation Committee reasonably deems necessary: (i) to evidence such exercise and (ii) to comply with or satisfy the requirements of the
Securities Act of 1933, as amended, applicable state securities laws or any other law. 
 5. Restricted Stock Award. The Company
hereby grants to Grantee, effective as of the Effective Date, a restricted Stock award of 25,000 shares of Common Stock on the terms and subject to the conditions set forth herein (the “Restricted Stock”). 

 6. Vesting of Restricted Stock. 
 (a) The Restricted Stock will vest as follows according to the following schedule: 30% of the Restricted Stock will vest at and as of
March 13, 2007, the next 30% of the Restricted Stock will vest at and as of March 13, 2008, and the final 40% of the Restricted Stock will vest at and as of March 13, 2009, provided that as of each such date, Grantee is then employed
by the Company and has remained continuously employed by the Company since the Effective Date. 
 (b) Any new, substituted or
additional securities or other property (including money paid other than as a regular cash dividend) which Grantee may have the right to receive with respect to Grantee’s unvested shares of Restricted Stock by reason of any stock dividend,
stock split, reverse stock split, recapitalization, combination of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without the Company’s receipt of consideration shall be issued subject to
(i) the same vesting requirements applicable to such unvested shares of Restricted Stock and shall be treated as if they had been acquired on the same date as such shares and (ii) such escrow arrangements as the Compensation Committee
shall deem appropriate. 
 7. Repurchase Right With Respect to Restricted Stock. Should Grantee cease to be employed by the Company
while one or more shares of Restricted Stock issued pursuant to this Agreement are unvested, then the Company shall have the right to repurchase all such unvested shares of Restricted Stock at the Fair Market Value per share of such Restricted
Stock. The Repurchase Right may be exercised by the Company only within ninety days of the date of Grantee’s termination of employment by written notice to Grantee. Any repurchases must be done in compliance with applicable state corporate law.

 8. Restrictions on Exercise or Issuance of Restricted Stock. Notwithstanding anything to the contrary in this Agreement, no shares
of Restricted Stock and no shares of Common Stock issuable upon exercise of the Options (the “Exercise Shares”) shall be deemed issued unless and until: (i) any then applicable requirements of state or federal laws and regulatory
agencies shall have been fully complied with to the satisfaction of the Company and its counsel and (ii) all approvals and permits required by regulatory authorities have been obtained. The Company shall use commercially reasonable efforts to
obtain the consents and approvals referred to in this Section 8 so as to permit the Options to be exercised and the Restricted Stock to be issued. 
 9. Non-Transferability of Options. The Options and the Restricted Stock shall not be transferable otherwise than by will or by the laws of descent and distribution, and the Options may be exercised only during
the lifetime of Grantee and only by Grantee or by his guardian or legal representative. 
 10. Withholding. 
 (a) Disqualifying Disposition. If Grantee makes a “disposition” (as defined in the Internal Revenue Code of 1986, as
amended) of all or any of the shares purchased upon exercise of an Option within two years from the Effective Date or within one year after the issuance of such shares, he shall immediately advise the Company in writing as to the occurrence of the
sale and the price upon the sale of such shares. 
 (b) Withholding Required. Grantee shall, no later than the date as
of which the value derived from an Option or share of Restricted Stock first becomes includable in the gross income of Grantee for income tax purposes, pay to the Company, or make arrangements satisfactory to the Compensation Committee regarding
payment of, any federal, state or local taxes of any kind required by 

 
law to be withheld with respect to the Option, its exercise or the share of Restricted Stock. The obligations of the Company under this Agreement shall be
conditioned upon such payment or arrangements and Grantee shall, to the extent permitted by law, have the right to request that the Company deduct any such taxes from any payment of any kind otherwise due to Grantee. 
 (c) Withholding Right. The Compensation Committee may, in its discretion, grant to Grantee the right (a “Withholding
Right”) to elect to make such payment by irrevocably requiring the Company to withhold from shares issuable upon exercise of an Option that number of full shares of Common Stock having an aggregate Fair Market Value on the Tax Date (as defined
below) equal to the amount (or portion of the amount) required to be withheld. The Withholding Right may be granted with respect to all or any portion of the Options. 
 (d) Exercise of Withholding Right. To exercise a Withholding Right, Grantee must follow the election procedures set forth below,
together with such additional procedures otherwise adopted by the Compensation Committee. 
 (1) Grantee must deliver to the
Company his written notice of election (the “Election”) to have the Withholding Right apply to all (or a designated portion) of the Options. 
 (2) Unless disapproved by the Compensation Committee as provided in subsection (3) below, the Election once made will be irrevocable. 
 (3) No election is valid unless the Compensation Committee consents to the Election; the Compensation Committee has the right and power,
in its sole discretion, with or without cause or reason therefore, to consent to the Election, to refuse to consent to the Election, or to disapprove the Election; and if the Compensation Committee has not consented to the Election on or prior to
the date that the amount of tax to be withheld is, under applicable federal income tax laws, fixed and determined by the Company (the “Tax Date”), the Election will be deemed approved. 
 (e) Effect. If the Compensation Committee consents to an Election of a Withholding Right, upon the exercise of any Option to which
the Withholding Right relates, the Company shall withhold from the shares otherwise issuable that number of full shares of Common Stock having an actual aggregate Fair Market Value equal to the amount (or portion of the amount, as applicable)
required to be withheld under applicable federal and/or state income tax laws as a result of the exercise. 
 11. No Other Rights; No
Rights as Stockholder. 
 (a) Except as expressly provided in Section 12 below, Grantee shall have not any rights by
reason of any subdivision or consolidation of shares of Common Stock or the payment of any dividend or any other increase or decrease in the number of shares of Common Stock of any class or by reason of any Liquidating Event (as defined in
Section 12 below), merger, or consolidation of assets or stock of another corporation, or any other issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class; and except as provided in
Section 12 below, none of the foregoing events shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to Options. 
 (b) No Rights as Stockholder. Except as specifically provided in Section 12 below, Grantee shall have no rights as a
stockholder of the Company with respect to any shares of Restricted Stock or shares covered by the Options until the date of the issuance of a Common Stock certificate to him for such shares, and no adjustment shall be made for dividends (ordinary
or extraordinary, whether in 

 
cash, securities or other property) or distributions of other rights for which the record date is prior to the date such Common Stock certificate is issued,
except as provided in Section 12(a)(2) or 12(a)(3). 
 12. Adjustments. 
 (a) Effect of Certain Changes. 
 (1) Stock Dividends, Splits, Etc. If there is any change made to the Common Stock through the declaration of stock dividends or through a recapitalization resulting in stock splits, or combinations or exchanges
of the outstanding shares or other change affecting the Common Stock as a class without the Company’s receipt of consideration, (i) the class and the number of shares covered by outstanding Options and Restricted Stock, and (ii) the
Exercise Price or purchase price of any Option or Restricted Stock, as applicable, in effect prior to such change, shall be proportionately adjusted by the Compensation Committee. Such adjustments are to be affected in a manner that shall preclude
the enlargement or dilution of rights and benefits under the Options and the Restricted Stock. Any fractional shares resulting from the adjustment shall be eliminated. 
 (2) Liquidating Event. In the event of a proposed dissolution or liquidation of the Company , or in the event of any corporate
separation or division, including, but not limited to, a split-up, split-off or spin-off (each such event, a “Liquidating Event”), the Compensation Committee may provide that the Grantee shall have the right to exercise an exercisable
Option at its Exercise Price subsequent to the Liquidating Event, and for the balance of its term, solely for the kind and amount of shares of Common Stock and other securities, property, cash or any combination thereof receivable upon such
Liquidating Event by a holder of the number of shares of Common Stock for or with respect to which such Option might have been exercised immediately prior to such Liquidating Event; or the Compensation Committee may provide, in the alternative, that
each Option granted hereunder shall terminate as of a date to be fixed by the Board; provided, however, that not less than 30 days written notice of the date so fixed shall be given to Grantee and if such notice is given, Grantee shall have the
right, during the period of 30 days preceding such termination, to exercise the Option as to all or any part of the shares of Common Stock covered thereby, to the extent that such Option is then exercisable, on the condition, however, that the
Liquidating Event actually occurs; and if the Liquidating Event actually occurs, such exercise shall be deemed effective (and, if applicable, the Grantee shall be deemed a stockholder with respect to the Options exercised) immediately preceding the
occurrence of the Liquidating Event, or the date of record for stockholders entitled to share in such Liquidating Event, if a record date is set. 
 (3) Where Company Survives. In case of any consolidation or merger of another corporation into the Company in which the Company is the surviving corporation and in which there is a reclassification or change
(including a change to the right to receive an amount of money payable by cash or cash equivalent or other property) of the shares of Common Stock (other than a change in par value, or from par value to no par value, or as a result of a subdivision
or combination, but including any change in such shares into two or more classes or series of shares), the Compensation Committee may provide that for each Option then exercisable, the Grantee shall have the right to exercise such Option solely for
the kind and amount of shares of Common Stock and other securities (including those of any new direct or indirect parent of the Company), property, cash or any combination thereof receivable upon such reclassification change, consolidation or merger
by the holder of the number of shares of Common Stock for which such Option might have been exercised. 

 (4) Surviving Company Defined. The determination as to which party to a merger or
consolidation is the “surviving corporation” shall be made on the basis of the relative equity interests of the stockholders in the corporation existing after the merger or consolidation, as follows: if immediately following any merger or
consolidation the holders of outstanding voting securities of the Company immediately prior to the merger or consolidation own equity securities possessing more than 50% of the voting power of the corporation existing following the merger or
consolidation, then for purposes of this Agreement, the Company shall be the surviving corporation. In all other cases, the Company shall not be the surviving corporation. In making the determination of ownership by the stockholders of a corporation
immediately after the merger or consolidation, of equity securities pursuant to this Section 12(a)(4), equity securities which the stockholders owned immediately before the merger or consolidation as stockholders of another party to the
transaction shall be disregarded. Further, for purposes of this Section 10.1(d) only, outstanding voting securities of a corporation shall be calculated by assuming the conversion of all equity securities convertible (immediately or at some
future time) into shares entitled to vote. 
 (5) Par Value Changes. In the event of a change, with respect to the
Common Stock of the Company as presently constituted, of all of the Company’s authorized shares with par value, into the same number of shares without par value, or a change in the par value, the shares resulting from any such change shall be
“Common Stock” within the meaning set forth in this Agreement. 
 (6) Change of Control. As used in this
Agreement, the term “Change of Control” shall mean the occurrence of any of the following events: (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) becoming the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting power represented by the
Company’s then outstanding voting securities; (ii) the approval by stockholders of the Company of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least 50% of the total voting power represented by the
voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or (iii) the approval by the stockholders of the Company of a plan of complete liquidation of the Company or an agreement for
the sale or disposition by the Company of at least 50% or more of the Company’s assets determined at their fair market value. 
 In the event of a Change of Control, notwithstanding anything to the contrary in this Agreement, all outstanding Options and Restricted Stock shall be fully vested and exercisable immediately prior to the Change of Control. The Company
shall notify Grantee (5) days prior to the Change of Control either in writing or electronically that the Options and Restricted Stock shall be fully vested and exercisable. The Options and Restricted Stock shall terminate in accordance with
its term, or if earlier, upon the Change of Control if the Right is not assumed or substituted for. 
 (b) Decision of
Compensation Committee Final. The Compensation Committee in its sole discretion shall determine the occurrence of a Change of Control pursuant to this section. To the extent that the foregoing adjustments relate to stock or securities of the
Company, such adjustments shall be made by the Compensation Committee, whose determination in that respect shall be final, binding and conclusive. 

 13. Market Stand-Off. In connection with any underwritten public offering by the Company of its
equity securities pursuant to an effective registration statement filed under the Securities Act of 1933, as amended, Grantee agrees not to sell, make any short sale of, loan, hypothecate, pledge, grant any option for the purchase of, or otherwise
dispose or transfer or otherwise agree to engage in any of the foregoing transactions with respect to any shares purchased by Grantee upon exercise of the Options or vesting of the Restricted Stock without the prior written consent of the Company or
its underwriters, for such period of time from and after the effective date of such registration statement as may be requested by the Company or such underwriters; provided, however, that in no event shall such period exceed 180 days. 
 14. Certain Representations and Warranties by Grantee. Grantee hereby represents and warrants to the Company that (i) by reason of
Grantee’s business or financial experience, Grantee has the capacity to protect his own interests in connection with the grant of the Options and the Restricted Stock and all other transactions contemplated by this Agreement and
(ii) Grantee is acquiring the Options, the shares of Restricted Stock and the shares of Common Stock underlying the Options for his own account and not with a view to or for sale in connection with any distribution of any such securities.

 15. Indemnification. To the maximum extent permitted by law, the Company shall indemnify each member of the Compensation Committee,
as well as any other employee of the Company with duties under this Agreement, against expenses and liabilities (including any amount paid in settlement) reasonably incurred by such individual in connection with any claims against the individual by
reason of the performance of the individual’s duties under this Agreement, unless the losses are due to the individual’s gross negligence or lack of good faith. The Company will have the right to select counsel and to control the
prosecution or defense of the suit. In the event that more than one person who is entitled to indemnification is subject to the same claim, all such persons shall be represented by a single counsel, unless such counsel advises the Company in writing
that he or she cannot represent all such persons under applicable rules of professional responsibility. The Company will not be required to indemnify any person for any amount incurred through any settlement unless the Company consents in writing to
the settlement. 
 IN WITNESS WHEREOF, the Company and Grantee have executed this Agreement as of the date first above written. 

 

	
	DOCUMENT SCIENCES CORPORATION:
	
	 /s/ John L. McGannon

	 John L. McGannon

	 Chief Executive Officer

	
	GRANTEE:
	
	 /s/ Hakan Akbas

	 Hakan Akbas

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