Document:

The Form of Supplemental Indenture to the Mortgage

 Exhibit 4.1 
  

 AVISTA CORPORATION 
 TO 
 CITIBANK, N.A. 
 As Successor Trustee under 
 Mortgage and Deed of Trust, 
 dated as of June 1, 1939 
  

 Forty-first Supplemental Indenture 
 Providing among other things for a Series of Bonds designated 
 “First Mortgage Bonds, 5.70%
Series due 2037” 
 Due July 1, 2037 
  

 Dated as of December 1, 2006

  

 FORTY-FIRST SUPPLEMENTAL INDENTURE 
 THIS INDENTURE, dated as of the 1st day of December, 2006, between AVISTA CORPORATION (formerly known as The Washington Water Power Company), a
corporation of the State of Washington, whose post office address is 1411 East Mission Avenue, Spokane, Washington 99202 (the “Company”), and CITIBANK, N.A., formerly First National City Bank (successor by merger to First National
City Trust Company, formerly City Bank Farmers Trust Company), a national banking association incorporated and existing under the laws of the United States of America, whose post office address is 388 Greenwich Street – 14th Floor, New York, New York 10013 (the “Trustee”), as Trustee under the Mortgage and Deed of Trust, dated as of
June 1, 1939 (the “Original Mortgage”), executed and delivered by the Company to secure the payment of Bonds issued or to be issued under and in accordance with the provisions thereof, this indenture (the “Forty-first
Supplemental Indenture”) being supplemental to the Original Mortgage, as heretofore supplemented and amended. 
 WHEREAS pursuant to a
written request of the Company made in accordance with Section 103 of the Original Mortgage, Francis M. Pitt (then Individual Trustee under the Mortgage, as supplemented) ceased to be a trustee thereunder on July 23, 1969, and all of
his powers as Individual Trustee have devolved upon the Trustee and its successors alone; and 
 WHEREAS by the Original Mortgage the Company
covenanted that it would execute and deliver such further instruments and do such further acts as might be necessary or proper to carry out more effectually the purposes of the Original Mortgage and to make subject to the lien of the Original
Mortgage any property thereafter acquired intended to be subject to the lien thereof; and 
 WHEREAS the Company has heretofore executed and
delivered, in addition to the Original Mortgage, the indentures supplemental thereto, and has issued the series of Bonds, set forth in Exhibit A hereto (the Mortgage, as supplemented and amended by the First through Fortieth Supplemental
Indentures being herein sometimes called the “Mortgage”); and 
 WHEREAS the Original Mortgage and the First through Thirty-ninth
Supplemental Indentures have been appropriately filed or recorded in various official records in the States of Washington, Idaho, Montana and Oregon, as set forth in the First through Fortieth Supplemental Indentures and the Instrument of Further
Assurance, dated December 15, 2001, hereinafter referred to; and 
 WHEREAS the Fortieth Supplemental Indenture, dated as of
April 1, 2006 has been appropriately filed or recorded in the various official records in the States of Washington, Idaho, Montana and Oregon set forth in Exhibit B hereto; and 
 WHEREAS for the purpose of confirming or perfecting the lien of the Mortgage on certain of its properties, the Company has heretofore executed and
delivered a Short Form Mortgage and Security Agreement, in multiple counterparts dated as of various dates in 1992, and such instrument has been appropriately filed or recorded in the various official records in the States of Montana and Oregon; and

 WHEREAS for the purpose of confirming or perfecting the lien of the Mortgage on certain of its
properties, the Company has heretofore executed and delivered an Instrument of Further Assurance dated as of December 15, 2001, and such instrument has been appropriately filed or recorded in the various official records in the States of
Washington, Idaho, Montana and Oregon; and 
 WHEREAS in addition to the property described in the Mortgage the Company has acquired certain
other property, rights and interests in property; and 
 WHEREAS Section 8 of the Original Mortgage provides that the form of each
series of Bonds (other than the First Series) issued thereunder and of the coupons to be attached to coupon Bonds of such series shall be established by Resolution of the Board of Directors of the Company; that the form of such series, as
established by said Board of Directors, shall specify the descriptive title of the Bonds and various other terms thereof; and that such series may also contain such provisions not inconsistent with the provisions of the Mortgage as the Board of
Directors may, in its discretion, cause to be inserted therein expressing or referring to the terms and conditions upon which such Bonds are to be issued and/or secured under the Mortgage; and 
 WHEREAS Section 120 of the Original Mortgage provides, among other things, that any power, privilege or right expressly or impliedly reserved to or
in any way conferred upon the Company by any provision of the Mortgage, whether such power, privilege or right is in any way restricted or is unrestricted, may be in whole or in part waived or surrendered or subjected to any restriction if at the
time unrestricted or to additional restriction if already restricted, and the Company may enter into any further covenants, limitations or restrictions for the benefit of any one or more series of Bonds issued thereunder, or the Company may cure any
ambiguity contained therein, or in any supplemental indenture, by an instrument in writing executed and acknowledged by the Company in such manner as would be necessary to entitle a conveyance of real estate to record in all of the states in which
any property at the time subject to the lien of the Mortgage shall be situated; and 
 WHEREAS the Company now desires to create a new series
of Bonds; and 
 WHEREAS, as contemplated in Sections 113 and 116 of the Original Mortgage, as amended by the Twenty-ninth Supplemental
Indenture, dated as of December 1, 2001, the Mortgage may be modified or altered with the consent of the owners of sixty per centum (60%) or more in principal amount of bonds outstanding under the Mortgage; and 
  

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 WHEREAS, as set forth in the respective supplemental indentures referred to below, the owners of the
bonds of the respective series referred to below, which series were established in such respective supplemental indentures, are deemed to have consented to the proposed amendment to Section 28 of the Original Mortgage set forth in such
supplemental indentures: 
  

			
	 Supplemental Indenture
	  	Series (No.)
		
	 Thirty-second, dated as of September 1, 2003
	  	6.125% Series due 2013 (30)
	 Thirty-fourth, dated as of November 1, 2004
	  	5.45% Series due 2019 (32)
	 Thirty-fifth, dated as of December 1, 2004
	  	Collateral Series 2004A (33)
	 Thirty-eighth, dated as of May 1, 2005
	  	Collateral Series 2005B (37)
Collateral Series 2005C (38)
	 Thirty-ninth, dated as of November 1, 2005
	  	6.25% Series due 2035 (39)
	 Fortieth, dated as of April 1, 2006
	  	Collateral Series due 2011 (40)

 (the bonds of such series being hereinafter called the “Consenting Bonds”); and 
 WHEREAS, as shown on Exhibit A hereto, the aggregate principal amount of the Consenting Bonds outstanding under the Mortgage is $777,550,000 which
represents seventy-seven and seven tenths per centum (77.7%) of the aggregate principal amount of all bonds outstanding under the Mortgage; and 
 WHEREAS, the Company now desires to make the foregoing amendment to the Original Mortgage, as evidenced by the adoption by the Board of Directors of Resolutions approving such amendment and authorizing the execution
and delivery of this Forty-first Supplemental Indenture in order, among other things, to evidence the same; 
 WHEREAS the execution and
delivery by the Company of this Forty-first Supplemental Indenture and the terms of the Bonds of the Forty-first Series, hereinafter referred to, and the amendment to the Mortgage referred to above, 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 Forty-first 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 

  

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

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 THE COMPANY HEREBY CONFIRMS that, subject to the provisions of Section 87 of the Original Mortgage,
all the property, rights, and franchises acquired by the Company after the date thereof (except any hereinbefore or hereinafter or in the Mortgage expressly excepted) are and shall be as fully embraced within the lien of the Mortgage as if such
property, rights and franchises had been owned by the Company at the date of the Original Mortgage and had been specifically described therein. 
 PROVIDED THAT the following were not and were not intended to be then or now or hereafter granted, bargained, sold, released, conveyed, assigned, transferred, mortgaged, pledged, set over or confirmed under the Mortgage and were, are and
shall be expressly excepted from the lien and operation namely: (l) cash, shares of stock and obligations (including Bonds, notes and other securities) not hereafter specifically pledged, paid, deposited or delivered under the Mortgage or
covenanted so to be; (2) merchandise, equipment, materials or supplies held for the purpose of sale in the usual course of business or for consumption in the operation of any properties of the Company; (3) bills, notes and accounts
receivable, and all contracts, leases and operating agreements not specifically pledged under the Mortgage or covenanted so to be; (4) electric energy and other materials or products generated, manufactured, produced or purchased by the Company
for sale, distribution or use in the ordinary course of its business; and (5) any property heretofore released pursuant to any provisions of the Mortgage and not heretofore disposed of by the Company; provided, however, that the property and
rights expressly excepted from the lien and operation of the Mortgage in the above subdivisions (2) and (3) shall (to the extent permitted by law) cease to be so excepted in the event that the Trustee or a receiver or trustee shall enter
upon and take possession of the Mortgaged and Pledged Property in the manner provided in Article XII of the Original Mortgage by reason of the occurrence of a Completed Default as defined in said Article XII. 
 TO HAVE AND TO HOLD all such properties, real, personal and mixed, granted, bargained, sold, released, conveyed, assigned, transferred, mortgaged,
pledged, set over or confirmed by the Company in the Mortgage as aforesaid, or intended so to be, unto the Trustee, and its successors, heirs and assigns forever. 
 IN TRUST NEVERTHELESS, for the same purposes and upon the same terms, trusts and conditions and subject to and with the same provisos and covenants as set forth in the Mortgage, this Forty-first 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. 
  

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 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 
 Forty-first Series of Bonds 
 SECTION 1. (I) There shall be a Series of Bonds designated “First
Mortgage Bonds, 5.70% Series due 2037” (herein sometimes referred to as the “Bonds of the Forty-first Series”), each of which shall also bear the descriptive title First Mortgage Bond and the form thereof, which has been established
by Resolution of the Board of Directors of the Company, is set forth on Exhibit D hereto. The Bonds of the Forty-first 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. 
 The Bonds of the Forty-first Series shall mature, shall bear interest and shall be payable as set forth below: 
 (a) the principal of Bonds of the Forty-first Series shall (unless theretofore paid) be payable on the Stated Maturity Date (as
hereinafter defined); 
 (b) the Bonds of the Forty-first Series shall bear interest at the rate of five and seventy
one-hundredths percentum (5.70%) per annum; interest on such Bonds shall accrue from and including the date of the initial authentication and delivery thereof, except as otherwise provided in the form of bond attached hereto as Exhibit D;
interest on such Bonds shall be payable on each Interest Payment Date and at Maturity (as each of such terms is hereafter defined); and interest on such Bonds during any period for which payment is made shall be computed on the basis of a 360-day
year consisting of twelve 30-days months; 
 (c) the principal of and premium, if any, and interest on each Bond of the
Forty-first Series payable at Maturity shall be payable upon presentation thereof at the office or agency of the Company in the Borough of Manhattan, The City of New York, in such coin or currency as at the time of payment is legal tender for public
and private debts. The interest on each Bond of the Forty-first Series (other than interest payable at Maturity) shall be payable by check, in similar coin or currency, mailed to the registered owner thereof as of the close of business on the Record
Date next preceding each Interest Payment Date; provided, however, that if such registered owner shall be a securities depositary, such payment may be made by such other means in lieu of check as shall be agreed upon by the Company, the Trustee and
such registered owner. 
 (d) The Bonds of the Forty-first 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 
 (i) 100% of the principal amount
of the Bonds being redeemed, and 
  

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 (ii) the sum of the present values of the remaining scheduled payments of principal of
and interest (not including any portion of any scheduled payment of interest which accrued prior to the redemption date) on the Bonds being redeemed discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of
twelve 30-day months) at a discount rate equal to the Treasury Yield (as hereinafter defined) plus 20 basis points, 
 plus, in the
case of either (i) or (ii) above, whichever is applicable, accrued interest on such Bonds to the date of redemption. 
 (e) (i) “Treasury Yield” means, with respect to any redemption of Bonds of the Forty-first Series, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the
Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price. The Treasury Yield shall be calculated as of the third business day preceding the redemption date or, if the Bonds to be redeemed
are to be caused to be deemed to have been paid within the meaning of Section 106 of the Original Mortgage, as amended, prior to the redemption date, then as of the third business day prior to the earlier of (x) the date notice of such
redemption is mailed to bondholders pursuant to Section 52 of the Original Mortgage, as amended, 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”). 
 (ii) “Comparable Treasury Issue” means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Bonds of the Forty-first Series that would be utilized, at the time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Bonds. 
 (iii)
“Comparable Treasury Price” means, (A) the average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) on the third business day preceding the Calculation
Date, as set forth in the H.15 Daily Update of the Federal Reserve Bank of New York or (B) if such release (or any successor release) is not published or does not contain such prices on such business day, the Reference Treasury Dealer Quotation
for the Calculation Date. 
 (iv) “H.15(519)” means the weekly statistical release entitled “Statistical
Release H.15 (519)”, or any successor publication, published by the Board of Governors of the Federal Reserve System. 
  

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 (v) “H.15 Daily Update” means the daily update of H.15(519) available through
the worldwide website of the Board of Governors of the Federal Reserve System or any successor site or publication. 
 (vi)
“Independent Investment Banker” means Goldman, Sachs & Co. or BNY Capital Markets, Inc. or, if so determined by the Company, any other independent investment banking institution of national standing appointed by the Company and
reasonably acceptable to the Trustee. 
 (vii) “Reference Treasury Dealer Quotation” means, with respect to the
Reference Treasury Dealer, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount and quoted in writing to the Trustee by such
Reference Treasury Dealer at 5:00 p.m. on the third business day preceding the Calculation Date). 
 (viii) “Reference
Treasury Dealer” means a primary U.S. Government securities dealer in New York City appointed by the Company and reasonably acceptable to the Trustee. 
 (II) (a) At the option of the registered owner, any Bonds of the Forty-first 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 Forty-first 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
Forty-first 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 Forty-first Series; provided, however, that the Company shall not be required to make any transfer or exchange of any Bonds of the Forty-first Series for a period of 10 days next
preceding any selection of such Bonds for redemption, nor shall it be required to make transfers or exchange of any Bonds of the Forty-first Series which shall have been selected for redemption in whole or in part. 
 The Bonds of the Forty-first Series are initially to be issued in global form, registered in the name of Cede & Co., as nominee for The
Depository Trust Company (the “Depositary”). Notwithstanding the provisions of subdivision (a) above, such Bonds shall not be transferable, nor shall any purported transfer be registered, except as follows: 
 (i) such Bonds may be transferred in whole, and appropriate registration of transfer effected, to the Depositary, or by the Depositary to
another nominee thereof, or by any nominee of the Depositary to any other nominee thereof, or by the Depositary or any nominee thereof to any successor securities depositary or any nominee thereof; 
  

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 (ii) such Bonds may be transferred in whole, and appropriate registration of transfer
effected, to the beneficial holders thereof, and thereafter shall be transferable, if: 
 (A) The Depositary, or any successor
securities depositary, shall have notified the Company and the Trustee that (I) it is unwilling or unable to continue to act as securities depositary with respect to such Bonds or (II) it is no longer a clearing agency registered under the
Securities Exchange Act of 1934, as amended, and, in either case, the Trustee shall not have been notified by the Company within one hundred twenty (120) days of the identity of a successor securities depositary with respect to such Bonds; or

 (B) the Company shall have delivered to the Trustee a written order to the effect that such Bonds shall be so transferable
on and after a date specified therein. 
 The Bonds of the Forty-first Series, when in global form, shall bear a legend as to such global
form and the foregoing restrictions on transfer substantially as set forth below: 
 This global bond is held by Cede & Co., as
nominee for The Depository Trust Company (the “Depositary”) for the benefit of the beneficial owners hereof. This bond may not be transferred, nor may any purported transfer be registered, except that (i) this bond may be transferred
in whole, and appropriate registration of transfer effected, if such transfer is by Cede & Co., as nominee for the Depositary, to the Depositary, or by the Depositary to another nominee thereof, or by any nominee of the Depositary to any
other nominee thereof, or by the Depositary or any nominee thereof to any successor Bonds depositary or any nominee thereof; and (ii) this bond may be transferred, and appropriate registration of transfer effected, to the beneficial holders
hereof, and thereafter shall be transferable without restrictions (except as provided in the preceding paragraph) if: (A) the Depositary, or any successor securities depositary, shall have notified the Company and the Trustee that (I) it
is unwilling or unable to continue to act as securities depositary with respect to the Bonds or (II) it is no longer a clearing agency registered under the Securities Exchange Act of 1934, as amended, and, in either case, the Trustee shall not have
been notified by the Company within one hundred twenty (120) days of the identity of a successor securities depositary with respect to the Bonds; or (B) the Company shall have delivered to the Trustee a written order to the effect that the
Bonds shall be so transferable on and after a date specified therein. 
  

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 (III) For all purposes of this Forty-first Supplemental Indenture, except as otherwise expressly provided
or unless the context otherwise requires, the terms listed below, when used with respect to the Bonds of the Forty-first Series, shall have the meanings specified below: 
 “Interest Payment Date” means January 1 and July 1 in each year, commencing July 1, 2007. 
 “Maturity” means the date on which the principal of the Bonds of the Forty-first 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 December 15 or June 15, as the case may be, next preceding such Interest Payment Date. 
 “Stated Maturity Date” means July 1, 2037. 
 (IV) Notwithstanding the provisions of
Section 106 of the Original Mortgage, as amended, the Company shall not cause any Bonds of the Forty-first 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 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. 
 (V) The Bonds of the Forty-first 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.

  

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 (VI) Upon the delivery of this Forty-first Supplemental Indenture, Bonds of the Forty-first Series in an
aggregate principal amount of $150,000,000 are to be authenticated and delivered, upon the basis of retired bonds, and will be Outstanding, in addition to $1,000,550,000 aggregate principal amount of Bonds of prior Series Outstanding at the date of
delivery of this Forty-first Supplemental Indenture; it being understood that, subject to the provisions of the Mortgage, there shall be no limit under the Mortgage upon the aggregate principal amount of Bonds of the Forty-first Series which may be
authenticated and delivered hereunder. 
 ARTICLE II 
 Amendment of Original Mortgage 
 SECTION 1. Section 28 of the Original Mortgage is hereby
amended to add at the end thereof a new paragraph reading as follows: 
 Notwithstanding the foregoing, any Opinion of Counsel
delivered pursuant to subdivision (7) of this Section 28, or pursuant to any other provision of this Indenture by reference to this Section 28, may, at the election of the Company, omit any or all of the statements contained in clause
(a) of subdivision (7) if there shall have been delivered to the Trustee a policy of title insurance (or endorsement thereto) issued by a nationally recognized title insurance company, in an amount not less than twenty-eight percent
(28%) of the cost or fair value to the Company (whichever is less) of the Property Additions made the basis of such application, insuring, in customary terms, against risk of loss sustained or incurred by the Trustee by reason of any
circumstances or conditions by virtue of which the statements omitted from clause (a) of such Opinion of Counsel would not have been accurate if made. 
 SECTION 2. The Trustee hereby assents to the foregoing amendment to the Original Mortgage (to the extent, if any, that such assent is necessary under the provisions of Section 114 of the Original Mortgage).

 ARTICLE III 
 Bond
Insurance 
 SECTION 1. The Company shall deliver to the Trustee, concurrently with its application for the authentication and delivery
of the Bonds of the Forty-first Series, a financial guaranty insurance policy (the “Policy”) with respect to such bonds issued by XL Capital Assurance, Inc. (“XLCA”). 
 SECTION 2. To the extent permitted by law and so long as XLCA is not in default under the Policy and is not subject to any bankruptcy, insolvency or
similar proceedings: 
 (a) notwithstanding any other provision of the Indenture, the holders of the Bonds of the Forty-first
Series shall be deemed to have agreed, by their purchase 

  

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and acceptance thereof, that XLCA shall be entitled to exercise all rights and remedies of the holders of the Bonds which arise upon the occurrence and
continuance of a Completed Default (as defined in Section 65 of the Original Mortgage) (including but not limited to the right to vote to direct the Trustee to accelerate the maturity of all bonds then outstanding under the Mortgage and the
right to vote for the approval or disapproval of any plan or reorganization or liquidation) to the same extent as if XLCA were the holder of all the Bonds of the Forty-first Series; 
 (b) the Company shall not enter into any amendment or modification of the Mortgage that would require the consent of holders of Bonds of
the Forty-first Series without the prior written consent of XLCA.; 
 (c) Anything herein to the contrary notwithstanding, in
the event that XLCA shall make a payment in respect of an amount of principal or interest due on such Bonds of the Forty-first Series, pursuant to the Policy, the Bonds and each such amount due on the Bonds shall remain outstanding for all purposes,
shall not be defeased or otherwise satisfied and shall not be considered paid by the Company, and the lien of the Mortgage and all covenants, agreements and other obligations of the Company to the holders of such Bonds, shall continue to exist and,
to the extent of such payment by XLCA, shall run to the benefit of XLCA, and XLCA shall be subrogated to the rights of such holders in respect of such payment; and 
 (d) Anything herein to the contrary notwithstanding, in determining whether the rights of the holders of the Bonds of the Forty-first
Series will be adversely affected by any action taken pursuant to the terms and provisions hereof, the effect on such holders shall be considered as if there were no Policy. 
 SECTION 3. (a) At least two (2) business days prior to any Interest Payment Date or the Stated Maturity Date (any such date being hereinafter called
a “Payment Date”), the Company shall advise the Trustee as to whether or not there will be sufficient funds in the funds on account with the Trustee to pay the principal of or interest on the Bonds of the Forty-first Series on such Payment
Date. If the Company has advised the Trustee that there will be insufficient funds to make such payment, the Trustee shall so notify XLCA by 10 a.m. New York City time on the business day before the Payment Date. Such notice shall specify the amount
of the anticipated deficiency and whether such Bonds will be deficient as to principal or interest, or both. The Policy will require XLCA to make payments of principal or interest due on the Bonds on the later of (a) one (1) Business Day
following receipt by XLCA of a notice of nonpayment from the Trustee of (b) the Business Day on which such scheduled payment is due. 
 For the purposes of the preceding paragraph, “Notice” means telephonic or telecopied notice, subsequently confirmed in a signed writing, or written notice by registered or certified mail, from the Trustee to XLCA, which notice
shall specify (a) the name of the Trustee, (b) the number of the Policy, (c) the claimed amount and (d) the Payment Date on which the claimed amount will become due. 
  

 12 

 (b) in the event that the Trustee has actual notice that any payment of principal of or interest on a
Bond of the Forty-first Series which has become due and which is made to a holder by or on behalf of the Company has been deemed a preferential transfer and theretofore recovered from its registered owner pursuant to the United States Bankruptcy
Code by a trustee in bankruptcy in accordance with the final, nonappealable order of a court having competent jurisdiction, the Trustee shall notify XLCA of such court order and shall notify all holders of the Bonds that in the event that any
holder’s payment is so recovered, such holder will be entitled to payment from XLCA to the extent of such recovery if sufficient funds are not otherwise available; and the Trustee shall furnish to XLCA its records evidencing the payments of
principal of and interest on the Bonds which have been made by the Trustee and subsequently recovered from holders and the dates on which such payments were made; and 
 (c) XLCA shall, to the extent it makes any payment in respect of principal of or interest on the Bonds, become subrogated to the rights of the recipients of such payment in accordance with the terms of the Policy, and
to evidence such subrogation (i) in the case of subrogation as to claims for past due interest, the Trustee shall note XLCA’s rights as subrogee on the registration books of the Company maintained by the Trustee with respect to the related
Bonds upon receipt from XLCA of proof, reasonably satisfactory to the Trustee, of the payment of amounts in respect of such interest to the holders of such Bonds and (ii) in the case of subrogation as to claims for past due principal, the
Trustee shall note XLCA’s rights as subrogee on the registration books of the Company maintained by the Trustee with respect to the related Bonds upon surrender of such Bonds by the holders thereof together with proof reasonably satisfactory to
the Trustee, of the payment by XCLA of amounts in respect of the principal thereof. 
 (d) Upon payment of a claim under the Policy, the
Trustee shall establish a separate special purpose trust account for the benefit of holders of Bonds of the Forty-first Series (the “Policy Payments Account”) over which the Trustee shall have exclusive control and sole right of
withdrawal. The Trustee shall receive any amount paid under the Policy in trust on behalf of holders of the Bonds of the Forty-first Series and shall deposit any such amount in the Policy Payments Account and distribute such amount only for purposes
of making the payments for which a claim was made. Such amounts shall be disbursed by the Trustee to holders of Bonds of the Forty-first Series in the same manner as principal and interest payments are to be made with respect to such Bonds under the
Mortgage. It shall not be necessary for such payments to be made by checks or wire transfers separate from the check or wire transfer used to pay debt service with other funds available to make such payments. 
 The Trustee shall keep a complete and accurate record of all funds deposited by XLCA into the Policy Payments Account and the allocation of such funds to
payment of principal of and interest on any Bond of the Forty-first Series. XLCA shall have the right to inspect such records at reasonable times upon reasonable notice to the Trustee. 
 Funds held in the Policy Payments Account shall not be invested by the Trustee and may not be applied to satisfy any costs, expenses or liabilities of
the Trustee. The funds held in the Policy Payments Account shall not be part of the Mortgaged and Pledged Property (as defined in the Original Mortgage). 
  

 13 

 Any funds remaining in the Policy Payments Account following a Payment Date shall promptly be remitted to
XLCA. 
 ARTICLE IV 
 Miscellaneous Provisions 
 SECTION 1. The terms defined in the Original Mortgage shall, for all purposes of this Forty-first
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 Forty-first 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 Forty-first
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 Forty-first
Supplemental Indenture. 
 SECTION 3. Whenever in this Forty-first 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 Forty-first 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 Forty-first Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon,
or to give to, any person, firm or corporation, other than the parties hereto, the holders of the Bonds and coupons Outstanding under the Mortgage and XLCA, any right, remedy or claim under or by reason of this Forty-first Supplemental Indenture or
any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Forty-first Supplemental Indenture contained by or on behalf of the Company shall be for the sole and
exclusive benefit of the parties hereto, and of the holders of the Bonds and of the coupons Outstanding under the Mortgage and XLCA. XLCA shall be deemed to be a third-party beneficiary of all rights and remedies granted to it in this Forty-first
Supplemental Indenture. 
 SECTION 5. This Forty-first 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
Forty-first Supplemental Indenture shall not be deemed to be any part thereof. 
  

 14 

 IN WITNESS WHEREOF, on the 12th day of December, 2006, 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 12th day of December, 2006, 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	 	  
		 	 Name: Christy M. Burmeister-Smith
 Title: Vice
President and Treasurer

  

	
	Attest:
	
	   
	 Name: Susan Y. Miner
 Title: Assistant Corporate
Secretary

	
	Executed, sealed and delivered by AVISTA CORPORATION in the presence of:
	
	  
	Name: Diane C. Thoren
	
	  
	Name: Ryan L. Krasselt

  

 15 

			
	CITIBANK, N.A., AS TRUSTEE
		
	By	 	  
		 	 Name:
 Title:

  

	
	Attest:
	
	   
	 Name:
 Title:

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

  

 16 

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

 On the 12th day of December, 2006, before me personally appeared Christy M. Burmeister-Smith, to
me known to be a Vice President 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 she was authorized to execute said instrument and that the seal affixed is the corporate seal of said Corporation. 
 On the 12th day of December, 2006, before me, a Notary Public in and for the State and County aforesaid, personally appeared Christy M. Burmeister-Smith,
known to me to be a Vice President 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. 
  

	
	
	   
	Notary Public

  

 17 

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

 On the          day of December, 2006 before me
personally appeared                     , to me known to be a          of CITIBANK, N.A., one
of the corporations that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said Corporation for the uses and purposes therein mentioned and on oath stated that [he] [she] was
authorized to execute said instrument and that the seal affixed is the corporate seal of said Corporation. 
 On the
         day of December, 2006, before me, a Notary Public in and for the State and County aforesaid, personally appeared
                    , known to me to be a
                     of CITIBANK, N.A., one of the corporations that executed the within and foregoing instrument and acknowledged to me that
such Corporation executed the same. 
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first
above written. 
  

	
	
	   
	Notary Public

  

 18 

 EXHIBIT A 
 MORTGAGE, SUPPLEMENTAL INDENTURES 
 AND SERIES OF BONDS 
  

												
	 	  	 DATED AS OF
	  	SERIES	  	 PRINCIPAL
 AMOUNT
 ISSUED
	  	 PRINCIPAL
 AMOUNT
 OUTSTANDING

	 MORTGAGE OR
 SUPPLEMENTAL
 INDENTURE
	  	  	NO.	  	 DESIGNATION
	  	  
	 Original
	  	June 1, 1939	  	1	  	3-1/2% Series due 1964	  	$	22,000,000	  	None
	 First
	  	October 1, 1952	  	2	  	3-3/4% Series due 1982	  	 	30,000,000	  	None
	 Second
	  	May 1, 1953	  	3	  	3-7/8% Series due 1983	  	 	10,000,000	  	None
	 Third
	  	December 1, 1955	  		  	None	  			  	
	 Fourth
	  	March 15, 1957	  		  	None	  			  	
	 Fifth
	  	July 1, 1957	  	4	  	4-7/8% Series due 1987	  	 	30,000,000	  	None
	 Sixth
	  	January 1, 1958	  	5	  	4-1/8% Series due 1988	  	 	20,000,000	  	None
	 Seventh
	  	August 1, 1958	  	6	  	4-3/8% Series due 1988	  	 	15,000,000	  	None
	 Eighth
	  	January 1, 1959	  	7	  	4-3/4% Series due 1989	  	 	15,000,000	  	None
	 Ninth
	  	January 1, 1960	  	8	  	5-3/8% Series due 1990	  	 	10,000,000	  	None
	 Tenth
	  	April 1, 1964	  	9	  	4-5/8% Series due 1994	  	 	30,000,000	  	None
	 Eleventh
	  	March 1,1965	  	10	  	4-5/8% Series due 1995	  	 	10,000,000	  	None
	 Twelfth
	  	May 1, 1966	  		  	None	  			  	
	 Thirteenth
	  	August 1, 1966	  	11	  	6 % Series due 1996	  	 	20,000,000	  	None
	 Fourteenth
	  	April 1, 1970	  	12	  	9-1/4% Series due 2000	  	 	20,000,000	  	None
	 Fifteenth
	  	May 1, 1973	  	13	  	7-7/8% Series due 2003	  	 	20,000,000	  	None
	 Sixteenth
	  	February 1, 1975	  	14	  	9-3/8% Series due 2005	  	 	25,000,000	  	None
	 Seventeenth
	  	November 1, 1976	  	15	  	8-3/4% Series due 2006	  	 	30,000,000	  	None
	 Eighteenth
	  	June 1, 1980	  		  	None	  			  	
	 Nineteenth
	  	January 1, 1981	  	16	  	14-1/8% Series due 1991	  	 	40,000,000	  	None
	 Twentieth
	  	August 1, 1982	  	17	  	15-3/4% Series due 1990-1992	  	 	60,000,000	  	None

											
	 Twenty-First
	  	September 1, 1983	  	18	  	13-1/2% Series due 2013	  	60,000,000	  	None
	 Twenty-Second
	  	March 1, 1984	  	19	  	13-1/4% Series due 1994	  	60,000,000	  	None
	 Twenty-Third
	  	December 1, 1986	  	20	  	9-1/4% Series due 2016	  	80,000,000	  	None
	 Twenty-Fourth
	  	January 1, 1988	  	21	  	10-3/8% Series due 2018	  	50,000,000	  	None
	 Twenty-Fifth
	  	October 1, 1989	  	22
23	  	 7-1/8% Series due 2013
 7-2/5% Series due 2016
	  	66,700,000
17,000,000	  	None
None
	 Twenty-Sixth
	  	April 1, 1993	  	24	  	Secured Medium-Term Notes, Series A ($250,000,000 authorized)	  	250,000,000	  	68,000,000
	 Twenty-Seventh
	  	January 1, 1994	  	25	  	Secured Medium-Term Notes, Series B ($250,000,000 authorized)	  	161,000,000	  	5,000,000
	 Twenty-Eighth
	  	September 1, 2001	  	26	  	Collateral Series due 2002	  	220,000,000	  	None
	 Twenty-Ninth
	  	December 1, 2001	  	27	  	7.75% Series due 2007	  	150,000,000	  	150,000,000
	 Thirtieth
	  	May 1, 2002	  	28	  	Collateral Series due 2003	  	225,000,000	  	None
	 Thirty-first
	  	May 1, 2003	  	29	  	Collateral Series due 2004	  	245,000,000	  	None
	 Thirty-second
	  	September 1, 2003	  	30	  	6.125% Series due 2013	  	45,000,000	  	45,000,000
	 Thirty-third
	  	May 1, 2004	  	31	  	Collateral Series due 2005	  	350,000,000	  	None
	 Thirty-fourth
	  	November 1, 2004	  	32	  	5.45% Series due 2019	  	90,000,000	  	90,000,000
	 Thirty-fifth
	  	December 1, 2004	  	33	  	Collateral Series 2004A	  	88,850,000	  	88,850,000
	 Thirty-sixth
	  	December 1, 2004	  	34
35	  	 Collateral Series 2004B
 Collateral Series 2004C
	  	66,700,000
17,000,000	  	None
None
	 Thirty-seventh
	  	December 1, 2004	  	36	  	Collateral Series 2004D	  	350,000,000	  	None
	 Thirty-eighth
	  	May 1, 2005	  	37
38	  	 Collateral Series 2005B
 Collateral Series 2005C
	  	66,700,000
17,000,000	  	66,700,000
17,000,000
	 Thirty-ninth
	  	November 1, 2005	  	39	  	6.25% Series due 2035	  	100,000,000
50,000,000	  	100,000,000
50,000,000
	 Fortieth
	  	April 1, 2006	  	40	  	Collateral Series due 2011	  	320,000,000	  	320,000,000

  

 A-2 

 EXHIBIT B 
 FILING AND RECORDING OF 
 FORTIETH SUPPLEMENTAL INDENTURE 
 FILING IN STATE OFFICES 
  

							
	 State
	  	Office of	  	Date	  	 Financing Statement
 Document Number

	 Washington
	  	Secretary of State	  	8/21/06	  	2006-235-2968-5
	 Idaho
	  	Secretary of State	  	8/21/06	  	B2006 - 1011221 -5
	 Montana
	  	Secretary of State	  	8/22/06	  	88795421
	 Oregon
	  	Secretary of State	  	8/21/06	  	7367732

 RECORDING IN COUNTY OFFICES 
  

													
	 	  	Real Estate Mortgage Records
	 County
	  	Office of	  	Date	  	Document
Number	  	Book	  	page	  	Financing
Statement
Document
Number
	Washington	  		  		  		  		  		  	
	 Adams
	  	Auditor	  	8/21/06	  	282531	  	N/A	  	N/A	  	N/A
	 Asotin
	  	Auditor	  	8/21/06	  	293433	  	N/A	  	N/A	  	N/A
	 Benton
	  	Auditor	  	8/21/06	  	2006-027482	  	N/A	  	N/A	  	N/A
	 Douglas
	  	Auditor	  	8/21/06	  	3101332	  	N/A	  	N/A	  	N/A
	 Ferry
	  	Auditor	  	8/21/06	  	266301	  	N/A	  	N/A	  	N/A
	 Franklin
	  	Auditor	  	8/21/06	  	1688257	  	N/A	  	N/A	  	N/A
	 Garfield
	  	Auditor	  	8/22/06	  	20060522	  	N/A	  	N/A	  	N/A
	 Grant
	  	Auditor	  	8/21/06	  	1198076	  	N/A	  	N/A	  	N/A
	 Klickitat
	  	Auditor	  	8/21/06	  	1064711	  	N/A	  	N/A	  	N/A
	 Lewis
	  	Auditor	  	8/21/06	  	3259833	  	N/A	  	N/A	  	N/A
	 Lincoln
	  	Auditor	  	8/21/06	  	20060441846	  	91	  	2417	  	N/A
	 Pend Oreille
	  	Auditor	  	8/22/06	  	20060288518	  	N/A	  	N/A	  	N/A
	 Skamania
	  	Auditor	  	8/21/06	  	2006162711	  	N/A	  	N/A	  	N/A
	 Spokane
	  	Auditor	  	8/21/06	  	5423768	  	N/A	  	N/A	  	N/A
	 Stevens
	  	Auditor	  	8/21/06	  	2006-0010041	  	351	  	883	  	N/A
	 Thurston
	  	Auditor	  	8/23/06	  	3859580	  	N/A	  	N/A	  	N/A
	 Whitman
	  	Auditor	  	8/21/06	  	673654	  	N/A	  	N/A	  	N/A
	Idaho	  		  		  		  		  		  	
	 Benewah
	  	Recorder	  	8/21/06	  	243737	  	N/A	  	N/A	  	N/A
	 Bonner
	  	Recorder	  	8/29/06	  	711884	  	N/A	  	N/A	  	N/A
	 Boundary
	  	Recorder	  	8/21/06	  	228005	  	N/A	  	N/A	  	N/A
	 Clearwater
	  	Recorder	  	8/21/06	  	203489	  	N/A	  	N/A	  	N/A
	 Idaho
	  	Recorder	  	8/21/06	  	450398	  	N/A	  	N/A	  	N/A
	 Kootenai
	  	Recorder	  	8/21/06	  	2050857000	  	N/A	  	N/A	  	N/A
	 Latah
	  	Recorder	  	8/21/06	  	507773	  	N/A	  	N/A	  	N/A
	 Lewis
	  	Recorder	  	9/1/06	  	133900	  	N/A	  	N/A	  	N/A

 RECORDING IN COUNTY OFFICES 
  

													
	 	  	Real Estate Mortgage Records
	 County
	  	Office of	  	Date	  	Document
Number	  	Book	  	page	  	Financing
Statement
Document
Number
	 Nez Perce
	  	Recorder	  	8/21/06	  	734576	  	N/A	  	N/A	  	N/A
	 Shoshone
	  	Recorder	  	8/21/06	  	432588	  	N/A	  	N/A	  	N/A
	Montana	  		  		  		  		  		  	
	 Big Horn
	  	Clerk & Recorder	  	8/28/06	  	335528	  	88	  	812	  	N/A
	 Broadwater
	  	Clerk & Recorder	  	8/21/06	  	154023	  	97	  	61	  	N/A
	 Golden Valley
	  	Clerk & Recorder	  	8/21/06	  	78850	  	M	  	12673	  	N/A
	 Meagher
	  	Clerk & Recorder	  	8/21/06	  	134087	  	F65	  	511	  	N/A
	 Mineral
	  	Clerk & Recorder	  	8/21/06	  	100080	  	N/A	  	N/A	  	N/A
	 Rosebud
	  	Clerk & Recorder	  	8/22/06	  	99967	  	115	  	639	  	N/A
	 Sanders
	  	Clerk & Recorder	  	8/21/06	  	55342	  	N/A	  	N/A	  	N/A
	 Stillwater
	  	Clerk & Recorder	  	8/21/06	  	327925	  	N/A	  	N/A	  	N/A
	 Treasure
	  	Clerk & Recorder	  	8/21/06	  	79696	  	17	  	814	  	N/A
	 Wheatland
	  	Clerk & Recorder	  	8/21/06	  	103927	  	M	  	17624	  	N/A
	 Yellowstone
	  	Clerk & Recorder	  	8/21/06	  	3391785	  	N/A	  	N/A	  	N/A
	Oregon	  		  		  		  		  		  	
	 Douglas
	  	Recorder	  	8/21/06	  	2006-020415	  	N/A	  	N/A	  	N/A
	 Jackson
	  	Recorder	  	8/29/06	  	2006-043895	  	N/A	  	N/A	  	N/A
	 Josephine
	  	Recorder	  	8/21/06	  	2006-016743	  	N/A	  	N/A	  	N/A
	 Klamath
	  	Recorder	  	8/22/06	  	2006-016894	  	N/A	  	N/A	  	N/A
	 Morrow
	  	Recorder	  	8/21/06	  	2006-17470	  	N/A	  	N/A	  	N/A
	 Union
	  	Recorder	  	8/21/06	  	20064311	  	N/A	  	N/A	  	N/A
	 Wallowa
	  	Recorder	  	8/21/06	  	06-56175	  	N/A	  	N/A	  	N/A

  

 B-2 

 EXHIBIT C 
 PROPERTY ADDITIONS 
 THE ADDITIONAL ELECTRIC SUBSTATIONS AND SUBSTATION SITES OF THE COMPANY, in the
States of Washington and Idaho, including all buildings, structures, towers, poles, equipment, appliances and devices for transforming, converting and distributing electric energy, and the lands of the company on which the same are situated and all
of the company’s real estate and interests therein, machinery, equipment, appliances, devices, appurtenances and supplies, franchises, permits and other rights and other property forming a part of said substations or any of them, or used or
enjoyed or capable of being used or enjoyed in connection with any thereof, including, but not limited to, the following situated in the States of Washington and Idaho, to wit: 
 1) Spokane County, Washington: “Downtown East 115kV Substation”; Property No. WA-32-035; Grantor: S&C Enterprises, LLC; Ptn of Block 1,
Block 2 and Lots 2-7, Block 3, 1st Addition to 3rd Addition to Railroad Addition, with vacated streets, situate in SW/4 of Section 17, Township 25 North, Range 43 East, W.M. 
 2) Spokane County, Washington: “Indian Trail 115kV Substation”: Property No. WA-32-033; Grantor: W & M, LLC; Ptn of SE/4 in Sec. 9 and Ptn
of SW/4 in Sec. 10, all in Township 26 North, Range 42 East, W.M. 
 3) Spokane County, Washington: “Northeast 115kV Substation”;
Property No. WA-32-072; Grantor: Spokane County; Ptn of NW/4 SW/4 of Section 22, Township 26 North, Range 43 East, W.M. 
 4) Nez Perce
County, Idaho: “Sweetwater 115kV Substation”; Property No. ID-N-035; Grantor: Heitstuman Ranch Co.; Ptn. Craig Donation Land Claim in NW/4 of Section 20, Township 35 North, Range 3 West, B.M. 
 5) Bonner County, Idaho: “Pine Street 115kV Substation”; Property No. ID-7B-035; Grantor: City of Sandpoint; South Half of 16’ wide
alleyway (vacated by Ordinance #509635) adjacent to Block 1, Lots 1 and 2 of Law’s Third Addition to Sandpoint, Idaho, located in the NE/4 of Sec 22, Township 57 North, Range 2 West, B.M. 

 EXHIBIT D 
 (Form of Bond) 
 This bond is subject to restrictions on transfer, 
 as hereinafter set forth 
 CUSIP 05379B
AM 9 
 AVISTA CORPORATION 
 First Mortgage Bond, 
 5.70% Series due 2037 
  

				
	 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 July 1, 2037, 
 DOLLARS 
 and to pay the registered owner hereof interest
thereon semi-annually in arrears on January 1 and July 1 in each year (each such date being hereinafter called an “Interest Payment Date”), commencing July 1, 2007 and at Maturity (as hereinafter defined), at the rate of
five and seventy one-hundredths percentum (5.70%) per annum computed on the basis of a 360-day year consisting of twelve 30-day months, until the Company’s obligation with respect to the payment of such principal shall have been
discharged. This bond shall bear interest from December 15, 2006 or, if the date of this bond shall be July 1, 2007 or thereafter, from the most recent Interest Payment Date on or prior to the date of this bond to which interest has been
paid; provided, however, that if the date of the bond shall be after a Record Date (as hereinafter defined) and prior to the corresponding Interest Payment Date, this bond shall bear interest from such Interest Payment Date. The principal of and
premium, if any, and interest on this bond payable at Maturity shall be payable upon presentation hereof at the office or agency of the Company in the Borough of Manhattan, The City of New York, in such coin or currency of the United States of
America as at the time of payment is legal tender for public and private debts. The interest on this bond (other than interest payable at Maturity) shall be paid by check, in the similar coin or currency, mailed to the registered owner hereof as of
the close of business on the December 15 or June 15, as the case may be, next preceding each Interest Payment Date (each such date being herein called a “Record Date”); provided, however, that if such registered owner shall be a
securities depositary, such payment shall be made by such other means in lieu of check as shall 

 
be agreed upon by the Company, the Trustee and such registered owner. Interest payable at Maturity shall be paid to the person to whom principal shall be
paid. As used herein, the term “Maturity” shall mean the date on which the principal of this bond becomes due and payable, whether at stated maturity, upon redemption or acceleration, or otherwise. 
 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, 5.70% Series due 2037,
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 Forty-first Supplemental Indenture, dated as of
December 1, 2006, and, as so amended and supplemented, is herein called the “Mortgage”. Reference is made to the Mortgage for a description of the property mortgaged and pledged, the nature and extent of the security, the rights of
the holders of the bonds and of the Trustee in respect thereof, the duties and immunities of the Trustee and the terms and conditions upon which the bonds are and are to be secured and the circumstances under which additional bonds may be issued. If
there shall be a conflict between the terms of this bond and the provisions of the Mortgage, the provisions of the Mortgage shall control to the extent permitted by law. The holder of this bond, by its acceptance hereof, shall be deemed to have
consented and agreed to all of the terms and provisions of the Mortgage and, further, in the event that such holder shall not be the sole beneficial owner of this bond, shall be deemed to have agreed to use all commercially reasonable efforts to
cause all direct and indirect beneficial owners of this bond to have knowledge of the terms and provisions of the Mortgage and of this bond and to comply therewith, including particularly, but without limitation, any provisions or restrictions in
the Mortgage regarding the transfer or exchange of such beneficial interests and any legend set forth on this bond. 
 The Mortgage may be
modified or altered by affirmative vote of the holders of at least 60% in principal amount of the bonds outstanding under the Mortgage, considered as one class, or, if the rights of one or more, but less than all, series of bonds then outstanding
are to be affected, then such modification or alteration may be effected with the affirmative vote only of 60% in principal amount of the bonds outstanding of the series so to be affected, considered as one class, and, furthermore, for limited
purposes, the Mortgage may be modified or altered without any consent or other action of holders of any series of bonds. No modification or alteration shall, however, permit an extension of the Maturity of the principal of, or interest on, this bond
or a reduction in such principal or the rate of interest hereon or any other modification in the terms of payment of such principal or interest or the creation of any lien equal or prior to the lien of the Mortgage or deprive the holder of a lien on
the mortgaged and pledged property without the consent of the holder hereof. 
 The principal hereof may be declared or may become due prior
to the stated maturity date on the conditions, in the manner and at the time set forth in the Mortgage, upon the occurrence of a completed default as in the Mortgage provided. 
  

 D-2 

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

The Mortgage contains terms, provisions and conditions relating to the consolidation or merger of the Company with or into, and the conveyance or
other transfer, or lease, of assets to, another Corporation and to the assumption by such other Corporation, in certain circumstances, of all of the obligations of the Company under the Mortgage and on the Bonds secured thereby. 
 In the manner prescribed in the Mortgage, this bond is transferable by the registered owner hereof in person, or by his duly authorized attorney, at the
office or agency of the Company in the Borough of Manhattan, The City of New York, upon surrender and cancellation of this bond, together with a written instrument of transfer whenever required by the Company duly executed by the registered owner or
by its duly authorized attorney, and, thereupon, a new fully registered bond of the same Series for a like principal amount will be issued to the transferee in exchange herefor as provided in the Mortgage. The Company and the Trustee may deem and
treat the person in whose name this bond is registered as the absolute owner hereof for the purpose of receiving payment and for all other purposes. 
 In the manner prescribed in the Mortgage, any bonds of this series, upon surrender thereof for cancellation at the office or agency of the Company in the Borough of Manhattan, The City of New York, are exchangeable
for a like aggregate principal amount of bonds of the same series of other authorized denominations. 
 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 the option of the Company at a redemption price equal to the greater of 
 (a) 100% of the principal amount of the bonds being redeemed, and 
 (b) the sum of the present values of the remaining scheduled payments of principal of and interest (not including any portion of any
scheduled payment of interest which accrued prior to the redemption date) on the bonds being redeemed discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at a discount rate equal to
the Treasury Yield (as hereinafter defined) plus 20 basis points, 
 plus, in the case of either (i) or (ii) above, whichever is applicable,
accrued interest on such Bonds to the date of redemption. 
 “Treasury Yield” means, with respect to any redemption of the bonds of
this series, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable 

  

 D-3 

 
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury
Price. The Treasury Yield shall be calculated as of the third business day preceding the redemption date or, if the bonds to be redeemed are to be caused to be deemed to have been paid within the meaning of Section 106 of the Original Mortgage,
as amended, prior to the redemption date, then as of the third business day prior to the earlier of (x) the date notice of such redemption is mailed to bondholders pursuant to Section 52 of the Original Mortgage, as amended, 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”). 
 “Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Bonds of the Forty-first Series
that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the bonds. 
 “Comparable Treasury Price” means, (A) the average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case
as a percentage of its principal amount) on the third business day preceding the Calculation Date, as set forth in the H.15 Daily Update of the Federal Reserve Bank of New York or (B) if such release (or any successor release) is not published
or does not contain such prices on such business day, the Reference Treasury Dealer Quotation for the Calculation Date. 
 “H.15(519)” means the weekly statistical release entitled “Statistical Release H.15 (519)”, or any successor publication, published by the Board of Governors of the Federal Reserve System. 
 “H.15 Daily Update” means the daily update of H.15(519) available through the worldwide website of the Board of Governors of the Federal
Reserve System or any successor site or publication. 
 “Independent Investment Banker” means Goldman, Sachs & Co. or BNY
Capital Markets, Inc. or, if so determined by the Company, any other independent investment banking institution of national standing appointed by the Company and reasonably acceptable to the Trustee. 
 “Reference Treasury Dealer Quotation” means, with respect to the Reference Treasury Dealer, the average, as determined by the Trustee, of the
bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount and quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m. on the third business day preceding the
Calculation Date). 
 “Reference Treasury Dealer” means a primary U.S. Government securities dealer in New York City appointed by
the Company and reasonably acceptable to the Trustee. 
 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 

  

 D-4 

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

									
	Dated:	 		 	AVISTA CORPORATION
					
		 		 		 	By:	 	  
		 		 		 		 	

 ATTEST:___________________ 
  

 D-5 

 TRUSTEE’S CERTIFICATE 
 This bond is one of the bonds of the Series herein designated, described or provided for in the within-mentioned Mortgage. 
  

			
	CITIBANK, N.A.
	        Trustee
		
	By	 	  
		 	Authorized Officer

  

 D-6 

 DEPOSITARY LEGEND 
 This global bond is held by Cede & Co., as nominee for The Depository Trust Company (The “Depositary”) for the benefit of the beneficial owners hereof. This bond may not be transferred, nor may
any purported transfer be registered, except that (i) this bond may be transferred in whole, and appropriate registration of transfer effected, if such transfer is by Cede & Co., as nominee for the Depositary, to the Depositary, or by
the Depositary to another nominee thereof, or by any nominee of the Depositary to any other nominee thereof, or by the Depositary or any nominee thereof to any successor Bonds depositary or any nominee thereof; and (ii) this bond may be
transferred, and appropriate registration of transfer effected, to the beneficial holders hereof, and thereafter shall be transferable without restrictions (except as provided in the preceding paragraph) if: (A) the Depositary, or any successor
securities depositary, shall have notified the Company and the Trustee that (I) it is unwilling or unable to continue to act as securities depositary with respect to the Bonds or (II) it is no longer a clearing agency registered under the
Securities Exchange Act of 1934, as amended, and, in either case, the Trustee shall not have been notified by the Company within one hundred twenty (120) days of the identity of a successor securities depositary with respect to the Bonds; or
(B) the Company shall have delivered to the Trustee a written order to the effect that the Bonds shall be so transferable on and after a date specified therein. 
  

 D-7 

 STATEMENT OF INSURANCE 
 XL Capital Assurance, Inc. (“XLCA”), New York, New York has delivered its financial guaranty insurance policy (the “Policy”) with respect to the scheduled payments of principal of and
interest on this bond, as and to the extent set forth in the Policy, to Citibank, N.A., as trustee (the “Trustee”) under the Mortgage and Deed of Trust, dated as of June 1, 1939, of Avista Corporation, as amended and supplemented.
The Policy is on file and available for inspection at the principal office of the Trustee and a copy thereof may be obtained from XLCA or the Trustee. 
  

 D-8 

 ASSIGNMENT CERTIFICATE 
 FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto 
 ___________________________________________________ 
 [please insert social security or other identifying
number of assignee] 
 ___________________________________________________ 
 [please print or typewrite name and address of assignee] 
 ___________________________________________________ 

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

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

  

 D-9Employment Agreement between BankUnited and Alfred R. Camner

 EXHIBIT 10.29 
 THIRD AMENDED AND RESTATED 
 EMPLOYMENT AGREEMENT 
 This THIRD AMENDED AND RESTATED EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into effective as of July 28, 2006, by and
between BANKUNITED FINANCIAL CORPORATION, a publicly held business corporation organized and operating under the laws of the State of Florida and having its principal executive offices at 255 Alhambra Circle, Coral Gables, Florida 33134
(“Company”), and ALFRED R. CAMNER, an individual residing in Miami-Dade County, Florida (“Executive”). Any reference to the “Bank” herein shall mean BankUnited, FSB, a wholly-owned subsidiary of the Company.

 WITNESSETH: 
 WHEREAS, the Company, the Bank and the Executive entered into an Employment Agreement dated as of November 14, 1997, which was amended and restated as of April 1, 2002 (“Second Agreement”), and further amended by
amendments dated October 23, 2002, April 1, 2003, September 29, 2003, December 29, 2003, April 21, 2006 and June 7, 2006 (collectively, the “Amendments”), pursuant to which the Executive
has served as Chairman of the Board and Chief Executive Officer of the Company and the Bank; and 
 WHEREAS, the Compensation
Committee of the Board of Directors (the “Committee”) has reviewed the Second Agreement and the Amendments with the assistance of executive compensation consultants and counsel; and 
 WHEREAS, based on this review, the Committee and the Executive have agreed to amend and restate the Second Agreement; and 
 WHEREAS, the third amended and restated agreement will, among other changes, (i) revise the provisions for salary and performance-based
compensation, (ii) delete the provision, which has expired, restricting the CEO’s exercise of options; (iii) extend the office relocation distance which may be deemed to trigger an “involuntary resignation” following a
change in control of the Company; (iv) modify or delete certain items in the calculation of the termination payment that may be payable by the Company to the Executive in specified circumstances; (v) expand the definition of
“cause,” (vi) revise the definition of a change in control; (vii) require that a change of control be consummated, rather than merely approved by shareholders, to constitute a change in control that triggers payment to the
Executive; (viii) limit the period during which the Executive may leave and receive a termination payment following a change in control; (ix) provide that the period following the Executive’s death or disability during which a change
in control that triggers payment to the Executive’s estate must occur, is automatically extended as necessary for required regulatory and shareholder approvals to be obtained; and (x) add confidentiality and non-disparagement provisions.

 NOW, THEREFORE, in consideration of the premises and the mutual covenants and conditions hereinafter set forth, the Company
and the Executive hereby agree as follows: 

 Third Amended and Restated 
 Employment Agreement 
 BankUnited Financial Corporation 
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 Section 1. Employment. 
 The Company agrees to continue to employ the Executive, and the Executive hereby agrees to such continued employment, during the period and upon the terms
and conditions set forth in this Agreement. 
 Section 2. Employment Period; Remaining Unexpired Employment
Period. 
 (a) The terms and conditions of this Agreement shall be and remain in effect during the period of employment established
under this Section 2 (“Employment Period”). The Employment Period shall be for a term of five years beginning on the date of this Agreement and ending on the fifth anniversary date of this Agreement (each, an “Anniversary
Date”), plus such extensions, if any, as are provided by the Board of Directors of the Company (“Board”) pursuant to Section 2(b). 
 (b) Except as provided in Section 2(c), beginning on the date of this Agreement, the Employment Period shall automatically be extended for one (1) additional day each day, unless either the Company or the
Executive elects not to extend the Agreement further by giving written notice to the other party, in which case the Employment Period shall end on the fifth anniversary of the date on which such written notice is given. For all purposes of this
Agreement, the term “Remaining Unexpired Employment Period” as of any date shall mean the period beginning on such date and ending on: (i) if a notice of non-extension has been given in accordance with this Section 2(b), the
fifth anniversary of the date on which such notice is given; and (ii) in all other cases, the fifth anniversary of the date as of which the Remaining Unexpired Employment Period is being determined. Upon termination of the Executive’s
employment with the Company for any reason whatsoever, any daily extensions provided pursuant to this Section 2(b), if not therefore discontinued, shall automatically cease. 
 (c) Nothing in this Agreement shall be deemed to prohibit the Company at any time from terminating the Executive’s employment during the Employment
Period with or without notice for any reason; provided, however, that the relative rights and obligations of the Company and the Executive in the event of any such termination shall be determined under this Agreement. 
 Section 3. Duties. 
 The Executive shall serve as the Chairman of the Board and Chief Executive Officer of the Company, having such power, authority and responsibility, and performing such duties as are prescribed by or under the Bylaws
of the Company and as are customarily associated with such position. Except as provided in Section 7 hereof, the Executive shall devote his full business time and attention (other than during weekends, holidays, approved vacation periods, and
periods of illness or approved leaves of absence) to the business and affairs of the Company and shall use his best efforts to advance the interests of the Company. 

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 Employment Agreement 
 BankUnited Financial Corporation 
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 Section 4. Salary. 
 In consideration for the services to be rendered by the Executive hereunder, commencing on the effective date of this Agreement and as in effect prior
thereto, the Company shall pay to the Executive a salary at an annual rate of Four Hundred and Seventy-Five Thousand and 00/100 Dollars ($475,000), payable in approximately equal installments in accordance with the Company’s customary payroll
practices for senior officers. In addition, as in effect prior thereto and continuing thereafter, the Company shall provide the Executive with the opportunity to earn cash in an amount up to between One Million Dollars and 00/100 Dollars
($1,000,000) and One Million Three Hundred Thousand and 00/100 Dollars ($1,300,000) per fiscal year, dependent upon the satisfaction of short-term compensation goals set by the Compensation Committee (the “Committee”) of the Company’s
Board of Directors, in a manner that would result in the payment of any compensation upon the achievement of such goals as qualifying as performance-based under section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”).
The Committee shall set such performance goals for each quarter or other designated short-term period at the beginning of each fiscal year, and shall evaluate whether the goals have been achieved after the end of each such quarter or period.
The amount, if any, determined by the Committee to have been earned based upon such evaluation shall be paid as soon as practicable. Prior to each Anniversary Date occurring during the Employment Period, the Committee shall review the
Executive’s annual rate of salary and short-term performance-based compensation, and may, in its discretion, approve an increase therein. For purposes of Section 9(b)(iv), the term “Salary” shall mean the annual cash
salary earned by the Executive pursuant to this Section 4. In addition to Salary, the Executive may receive other cash or stock compensation from the Company for services rendered hereunder at such times, including cash bonuses, in such amounts
and on such terms and conditions as the Committee, in its discretion, may determine from time to time, but such additional compensation shall not be considered to be Salary. 
 Section 5. Additional Employee Benefit Plans and Programs. 
 (a) During the Employment Period, the Executive shall be treated as an employee of the Company and shall be entitled to participate in and receive
benefits under any and all qualified or non-qualified retirement, pension, savings, profit-sharing or stock bonus plans, any and all group life, health (including hospitalization, medical and major medical), dental, accident and long term disability
insurance plans, and any other employee benefit and compensation plans (including, but not limited to, any incentive compensation plans or programs, stock option and appreciation rights plans and restricted stock plans) as may from time to time be
maintained by, or cover similarly situated executives of, the Company, in accordance with the terms and conditions of such employee benefit plans and programs and compensation plans and programs and consistent with the Company’s customary
practices. The Executive’s estate or his designee shall be the beneficiary of life insurance policies on the life of the Executive having a face amount of at least $6,000,000. In the event that the Executive has or obtains a substitute policy
or policies for the life insurance policies which were originally purchased by the Company to provide coverage of $6,000,000, and cancels or has canceled the 

 Third Amended and Restated 
 Employment Agreement 
 BankUnited Financial Corporation 
  Page
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 of 23 
  

 
original policies, the Company shall reimburse the Executive for the costs of such substitute policy or policies to the extent of the amount that the premium
on the cancelled policies would have been, had such cancelled policies continued in force. 
 (b) Executive hereby agrees that, during the
term of this Agreement, he shall not convert any of the shares of Noncumulative Convertible Preferred Stock, Series B (the “Series B Preferred”), which he now owns or may own in the future into shares of Class B Common Stock, if such
conversion would cause the total number of shares of Class B Common Stock issued to exceed the number of shares of Class B Common Stock authorized for issuance, unless the Executive first converts to Class A Common Stock, a number of shares of
Class B Common Stock that is at least equal to the number of shares that would be issuable upon conversion of the Series B Preferred shares. 
 Section 6. Indemnification and Insurance. 
 (a) During the Employment Period and for a
period of six (6) years thereafter, the Company shall cause the Executive to be covered by and named as an insured under any policy or contract of insurance obtained by it to insure its directors and officers against personal liability for acts
or omissions in connection with service as an officer or director of the Company or service in other capacities at the request of the Company. The coverage provided to the Executive pursuant to this Section 6 shall be of the same scope and on
the same terms and conditions as the coverage (if any) provided to other officers or directors of the Company. 
 (b) To the maximum extent
permitted under applicable law, during the Employment Period and for a period of six (6) years thereafter, the Company shall indemnify the Executive against and hold him harmless from any costs, liabilities, losses and exposures to the fullest
extent and on the most favorable terms and conditions that similar indemnification is offered to any director or officer of the Company or any subsidiary or affiliate thereof. 
 Section 7. Outside Activities. 
 During the Employment Period, it shall not be a violation of this Agreement and shall not permit the Company to terminate the Executive’s employment for Cause if the Executive engages in the activities described
below or any activities similar in nature and scope, as long as such activities do not significantly interfere with the performance of the Executive’s responsibilities in accordance with this Agreement and do not constitute a violation of any
applicable law, rule, regulation or code of conduct or policy established by the Company and applicable to similarly situated executives: (i) engaging in the practice of law, including, without limitation, as a member of the firm of Camner,
Lipsitz and Poller, Professional Association, (ii) serving on industry, corporate, civic or charitable boards or committees, (iii) managing personal investments (including, without limitation, family controlled enterprises), or
(iv) investing in, advising or serving as an officer or director of other corporations or business entities. It is expressly understood and agreed that, to the extent any such activities have been conducted by the Executive prior to the date of
this Agreement, the continued conduct of such activities (or the conduct of activities similar in nature and scope) shall not thereafter be deemed to interfere with 

 Third Amended and Restated 
 Employment Agreement 
 BankUnited Financial Corporation 
  Page
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 of 23 
  

 
the performance of the Executive’s responsibilities to the Company. The Executive may also serve as an officer or director of the Bank on such terms and
conditions as the Executive and the Bank may mutually agree upon, and such service shall not be deemed to materially interfere with the Executive’s performance of his duties hereunder or otherwise result in a material breach of this
Agreement. If the Executive is discharged or suspended, or is subject to any regulatory prohibition or restriction with respect to participation in the affairs of the Bank, he shall continue to perform services for the Company in accordance with
this Agreement, subject to the provisions of Section 10 hereof, but shall not directly or indirectly provide services to or participate in the affairs of the Bank in a manner inconsistent with the terms of such discharge or suspension or any
applicable regulatory order. 
 Section 8. Working Facilities and Expenses. 
 The Executive’s principal place of employment shall be at the Company’s executive offices at the address first above written, or at such other
location within Coral Gables at which the Company shall maintain its principal executive offices, or at such other location as the Company and the Executive may mutually agree upon. The Company shall provide the Executive at his principal place of
employment with a private office, secretarial services and other support services and facilities including, but not limited to, Internet and Bloomberg Financial Market Commodities and News Access Subscriptions, cellular telephones, pagers and a lap
top computer, suitable to his position with the Company and necessary or appropriate in connection with the performance of his assigned duties under this Agreement. The Company shall provide to the Executive for his exclusive use an automobile owned
or leased by the Company, or leased by the Executive with reimbursement by the Company, which shall be a Ford Expedition (or an automobile of similar stature and caliber), to be used in the performance of his duties hereunder, including commuting to
and from his personal residence. The Company shall reimburse the Executive for his ordinary and necessary business expenses, including, without limitation, all expenses associated with his business use of the aforementioned automobile, fees for
memberships in such clubs and organizations as the Executive and the Company shall mutually agree are necessary and appropriate for business purposes, and his travel and entertainment expenses incurred in connection with the performance of his
duties under this Agreement, in each case upon presentation to the Company of an itemized account of such expenses in such form as the Company may reasonably require. 
 Section 9. Termination of Employment with Severance Benefits. 
 (a)
The Executive shall be entitled to and the Company shall pay the severance benefits and amounts described in Section 9(b) herein in the event that his employment with the Company terminates during the Employment Period under any of the
following circumstances: 
 (i) The Executive’s voluntary resignation from employment with the Company within ninety
(90) days of the following: 

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 Employment Agreement 
 BankUnited Financial Corporation 
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 (A) the failure of the Board to appoint or reappoint or elect or re-elect the
Executive to the office of Chairman of the Board or Chief Executive Officer; or 
 (B) the failure of the stockholders of the
Company to elect or re-elect the Executive or the failure of the Board (or the nominating committee thereof) to nominate the Executive for such election or re-election; or 
 (C) the expiration of a thirty (30) day period following the date on which the Executive gives written notice to the Company of its
material failure, whether by amendment of the Company’s Charter or Bylaws, action of the Board or the Company’s stockholders or otherwise, to vest in the Executive the functions, duties, or responsibilities prescribed in Section 3 of
this Agreement, unless, during such thirty (30) day period, the Company cures such failure in a manner determined by the Executive, in his discretion, to be satisfactory; or 
 (D) the expiration of a thirty (30) day period following the date on which the Executive gives written notice to the Company of its
material breach of any term, condition or covenant contained in this Agreement (including, without limitation, any reduction of the Executive’s rate of base salary in effect from time to time and any change in the terms and conditions of any
compensation or benefit program in which the Executive participates which, either individually or together with other changes, has a material adverse effect on the aggregate value of his total compensation package), unless, during such thirty
(30) day period, the Company cures such failure in a manner determined by the Executive, in his discretion, to be satisfactory; or 
 (E) the relocation of the executive offices of the Company, a distance of more than fifteen (15) miles from its current Coral Gables, Florida location or of more than twenty-five (25) miles from the current
address of the Executive’s residence as shown in the records of the Company; or 
 (ii) subject to the provisions of
Section 10, the termination of the Executive’s employment by the Company for any other reason. 
 (b) Upon the termination of the
Executive’s employment with the Company under circumstances described in Section 9(a) of this Agreement, the Company shall pay and provide to the Executive (or, in the event of his death following such termination of employment, provide to
his estate): 
 (i) his earned but unpaid Salary and other compensation (including, without limitation, all items which
constitute wages under applicable state law and the payment of which is not otherwise provided for under this Section 9(b)) as of the date of the termination of his employment with the Company, such payment to be made at the 

 Third Amended and Restated 
 Employment Agreement 
 BankUnited Financial Corporation 
  Page
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 of 23 
  

 
time and in the manner prescribed by law applicable to the payment of wages but in no event later than thirty (30) days after termination of employment;
plus 
 (ii) the benefits, if any, to which he is entitled as a former employee under the employee benefit plans and programs
and compensation plans and programs maintained for the benefit of the officers and employees of the Company; plus 
 (iii)
continued group life, health (including hospitalization, medical, major medical and any supplemental insurance coverages), dental, accident and long term disability insurance benefits, in addition to that provided pursuant to Section 9(b)(ii),
and after taking into account the coverage provided by any subsequent employer, if and to the extent necessary to provide for the Executive and his dependents, for the Remaining Unexpired Employment Period or to age 65, whichever is later, coverage
equivalent to the coverage to which he would have been entitled under such plans (as in effect on the date of his termination of employment, or, if his termination of employment occurs after a Change in Control, on the date of such Change in
Control, whichever benefits are greater), if he had continued working for the Company during the Remaining Unexpired Employment Period at the highest annual rate of Salary achieved during that portion of the Employment Period which is prior
to the Executive’s termination of employment with the Company, subject to the maximum insurance amounts specified under the Company’s policies, and with such continued coverages to be provided to the Executive at the Company’s expense
through COBRA or in any other manner determined by the Committee, to be appropriate including, but not limited to, through the purchase of an individual policy or policies; plus 
 (iv) within thirty (30) days following his termination of employment with the Company, a lump sum payment, in an amount equal to the
greater of (A) or (B) where: 
 (A) is five times the following: the sum of (1) the highest Salary
awarded to the Executive for any of the five fiscal years 2002 through 2006, (2) the highest cash bonuses awarded to the Executive for any of the five fiscal years 2002 through 2006, and (3) the highest cash value of
restricted stock grants awarded to the Executive for any one of the five fiscal years 2002 through 2006 (provided, however, that the cash value of the restricted stock grants (determined as of the date of each such grant) included in the calculation
will be included only up to an amount which equals fifty percent (50%) of the total of the highest Salary and highest cash bonuses awarded to the Executive in any of the fiscal years 2002 through 2006), and 
 (B) three times the following: the sum of (1) the highest Salary awarded to the Executive for any of the five fiscal years preceding
the Executive’s termination of employment with the Company, (2) the highest cash bonuses awarded to the Executive for any of the five fiscal years preceding the 

 Third Amended and Restated 
 Employment Agreement 
 BankUnited Financial Corporation 
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 of 23 
  

 
Executive’s termination of employment with the Company, and (3) the highest cash value of restricted stock grants awarded to the Executive for any
one of the five fiscal years preceding the Executive’s termination of employment with the Company (provided that the cash value of the restricted stock grants shall be determined as of the date of each such grant); plus 
 (v) within thirty (30) days following his termination of employment with the Company, a lump sum payment in an amount equal to the
present value of the additional employer contributions to which he would have been entitled under any and all qualified and non-qualified defined contribution plans maintained by, or covering employees of, the Company, if he were 100% vested
thereunder and had continued working for the Company during the Remaining Unexpired Employment Period at the highest annual rate of compensation achieved during that portion of the Employment Period which is prior to the Executive’s termination
of employment with the Company, and making the maximum amount of employee contributions, if any, required under such plan or plans, such present value to be determined on the basis of a discount rate, compounded using the compounding period that
corresponds to the frequency with which employer contributions are made to the relevant plan, equal to a discount rate, compounded monthly equal to the annualized rate of interest prescribed by the Pension Benefit Guaranty Corporation for the
valuation of immediate annuities payable under a terminating single-employer defined benefit plan for the month in which the Executive’s termination of employment occurs; plus 
 (vi) at the election of the Company made within thirty (30) days following the Executive’s termination of employment with the
Company, subject to the consent of the Executive, which shall not be unreasonably withheld, upon the surrender of options or appreciation rights issued to the Executive under any stock option and appreciation rights plan or program maintained by, or
covering employees of, the Company a lump sum payment in an amount equal to the product of: 
 (A) the excess of (I) the
fair market value of a share of stock of the same class as the stock subject to the option or appreciation right, determined as of the date of termination of employment, over (II) the exercise price per share for such option or appreciation right,
as specified in or under the relevant plan or program; multiplied by 
 (B) the number of shares with respect to which options
or appreciation rights are being surrendered. 
 For purposes of this Section 9(b)(vi) and for purposes of determining the Executive’s right
following his termination of employment with the Company to exercise any options or appreciation rights not surrendered pursuant hereto, the Executive shall be deemed fully vested in all options and appreciation rights under any stock option or
appreciation rights plan or program maintained by, or covering employees of, the Company, even if he is not vested under such plan or program; plus 

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 BankUnited Financial Corporation 
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 (vii) at the election of the Company made within thirty (30) days following the
Executive’s termination of employment with the Company, subject to the consent of the Executive, which shall not be unreasonably withheld, upon the surrender of any shares awarded to the Executive under any restricted stock plan maintained by,
or covering employees of, the Company a lump sum payment in an amount equal to the product of: 
 (A) the fair market value of
a share of stock of the same class of stock granted under such plan, determined as of the date of the Executive’s termination of employment; multiplied by 
 (B) the number of shares which are being surrendered. 
 For purposes of this Section 9(b)(vii) and for purposes of determining the Executive’s right following his termination of employment with the Company to any stock not surrendered pursuant hereto, the
Executive shall be deemed fully vested in all shares awarded under any restricted stock plan maintained by, or covering employees of, the Company, even if the shares are not vested or earned under such plan; plus 
 (viii) with the following: (A) the personal use, at the Company’s expense for the Remaining Unexpired Employment Period, of a
late model automobile comparable to that used by the Executive prior to his termination of employment; (B) the right of the Executive to purchase, at book value, the membership in up to two country clubs which the Company has maintained for the
benefit of the Executive; (C) the transfer to the Executive of the life insurance policies that the Company maintains on the life of the Executive as part of his benefits in accordance with Section 5; (D) the continued use, at the
Company’s expense for the Remaining Unexpired Employment Period, of the secretarial services, Internet and Bloomberg Financial Market Commodities and News Access Subscriptions, cellular telephones, pagers and the lap-top computer which had been
provided to the Executive immediately prior to his termination of employment; and (E) the right of the Executive to purchase, at book value as shown or calculated in the records of the Company, the furnishings of his office at the Company; and
plus 
 (ix) any and all deferred compensation, including Deferred Option Shares, shall be released and paid to the Executive,
except to the extent that such acceleration would result in an excise tax under Section 409A of the Code. 
 The Company and the Executive hereby
stipulate that the damages which may be incurred by the Executive following any such termination of employment are not capable of accurate measurement as of the date first above written and that the payments and benefits contemplated by this
Section 9(b) constitute reasonable damages under the circumstances and shall be payable 

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without any requirement of proof of actual damage and without regard to the Executive’s efforts, if any, to mitigate damages. In no event shall any of
the foregoing provisions of this Section 9(b) entitle the Executive to additional grants of statutory or non-statutory options to purchase shares of common stock of the Company pursuant to any incentive stock option plan then in effect.

 (c) The Company and the Executive further agree that the Company may condition the payments and benefits (if any) due under Sections
9(b)(iii), (iv), (v) and (viii) on 
 (i) the receipt of the Executive’s resignation from any and all positions
which he holds as an officer of the Company, the Bank or any subsidiary or affiliate of either of them; provided that the Executive may elect to remain as a non-chairman director on the Board of Directors, notwithstanding his resignation as Chairman
of the Board; 
 (ii) the Executive’s making an offer to the Board of Directors to resign as a director of the Company or
a member of a committee of the Board; provided, however, that the Executive’s resignation shall only be final if all of the members of the Board, not including Family Members, as defined in Rule 4200(a)(14) of the Nasdaq Stock Market, vote to
accept the offer, at the time the offer is made; and 
 (iii) if termination occurs other than as specified in Section 11
for termination upon or following a change in control, the execution by the Executive of covenants not to compete with the business of the Company or its affiliates or solicit business customers or employees of the Company or its affiliates for a
period of twelve (12) months following the date of such payment, such covenants to contain substantially the terms attached as Exhibit C to this Agreement. 
 (d) Notwithstanding any provision of this Agreement to the contrary, no payment or benefit will be made to the Executive under this Section 9 prior to the expiration of six months from the date of his termination
of employment if such payment or benefit will result in the imposition of an excise tax under Code section 409A. 
 (i) with
respect to the benefits described in Section 9(b)(viii)(A) and (D), if necessary for compliance with section 409A of the Code, the Executive will, for the six-month period commencing with his termination of employment, pay the Company its cost
of providing such benefits. Such payment shall be made on the first business day of each month during this period for the prior month. At the end of the six-month period following Executive’s termination of employment, the Company will
reimburse him for the payments made during the six-month period. 
 (ii) with respect to the benefits described in
Section 9(b)(viii)(A) and (D), during the Remaining Unexpired Employment Period after the first six-month period, the Company shall make the payments for such benefits within 30 days of the annual billing for such benefits. 

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 Sectin 10. Termination Without Additional Company Liability. 
 (a) In the event that the Executive’s employment with the Company shall terminate during the Employment Period on account of: 
 (i) the discharge of the Executive for “cause,” which, for purposes of this Agreement shall mean: (A) the Executive
intentionally engages in dishonest conduct in connection with his performance of services for the Company resulting in his conviction of a felony; (B) the Executive is convicted of, or pleads guilty or nolo contendere to, a criminal act
which is a felony; (C) the Executive willfully and materially breaches his fiduciary duties to the Company for personal profit; (D) the Executive’s willful and material breach or violation of any law, rule or regulation (other than
traffic violations or similar offenses), or receipt of a final cease and desist order in connection with his performance of services for the Company; or (E) the Executive’s willful and material breach of this Agreement or the
Company’s Code of Conduct or Insider Trading Policy, in the forms attached as Exhibits A and B to this Agreement, if, in the opinion of the Company’s Board, such breach is so material in nature that it causes an extraordinary disruption
adverse to the Company, and no exception or waiver applying to the breach is granted by the Company’s Board or an authorized committee thereof; or 
 (ii) the Executive’s voluntary resignation from employment with the Company for reasons other than those specified in Section 9(a); 
 then, except as provided in Sections 10(b) and (c), the Company shall have no further obligations under this Agreement, other than the payment to the Executive (or, in the event of his death, to his estate) of his
earned but unpaid Salary and any and all deferred compensation, including Deferred Option Shares, as of the date of the termination of his employment, and the provision of such other benefits, if any, to which he is entitled as a former
employee under the employee benefit plans and programs and compensation plans and programs maintained by, or covering employees of, the Company. 
 (b) For purposes of Section 10(a)(i)(C) or (D), no act or failure to act, on the part of the Executive, shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without
reasonable belief that the Executive’s action or omission was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the written advice of
counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company. The cessation of employment of the Executive shall not be deemed to be for
“cause” within the meaning of Section 10(a)(i) unless and until: 
 (i) the Board first holds a meeting, as to
which the Executive was provided thirty (30) days advance written notice and an opportunity to be heard, and such notice specifies in detail the action or inaction alleged to constitute cause and demanding that he remedy such action or
inaction; and 

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 (ii) the Executive shall not have remedied such action or inaction allegedly
constituting cause within sixty (60) days after his receipt of such written notice; and 
 (iii) after such sixty-day
period there shall have been delivered to the Executive a Notice of Termination and a certified copy of a resolution duly adopted by the affirmative vote of at least three-fourths of the non-employee members of the Board at a special meeting of the
Board at which he was given an opportunity to appear with legal counsel of his choosing to refute any allegations of cause, which meeting was called and held for the purpose of finding that, in the good faith opinion of the Board, the
Executive’s action or inaction constituted cause and he did not remedy such action or inaction after demand by the Board. 
 (c) Nothing
in Section 10(b) shall, prior to delivery of a Notice of Termination as provided herein, be deemed to suspend or extinguish the Executive’s entitlement to receive the compensation and other benefits provided under this Agreement. In
addition, the Company shall pay reasonable costs and attorneys’ fees incurred by the Executive in connection with any Board action pursuant to Section 10(b) in the event that the Board does not determine that cause exists in accordance
with the procedures in said section. In the event that the Company terminates the Executive for cause and, within 30 days after receipt of the Notice of Termination, the Executive notifies the Company that he disputes such termination, the Executive
shall still be subject to the duties set forth in Section 3 and entitled to receive the compensation provided under this Agreement until a final and binding judgment is rendered by a court of competent jurisdiction finding that the termination
was properly for cause, or until the expiration of a period not to exceed twenty-four (24) months, whichever occurs first. In the event that the termination is found to be properly for cause, all payments subsequent to termination to which the
Executive would not otherwise be entitled shall be recoverable by the Company, except to the extent such payments constitute reasonable compensation for services rendered. During such contest period, all insurance benefits shall be maintained and
shall not be recoverable if the termination is sustained for cause. 
 Section 11. Termination Upon or
Following a Change in Control. 
 (a) A Change in Control of the Company (“Change in Control”) shall be deemed to have
occurred upon the happening of any of the following events: 
 (i) the consummation of a transaction that effects the
reorganization, merger or consolidation of the Company, respectively, with one or more other persons, other than a transaction following which: 
 (A) at least 51% of the equity ownership interests of the entity resulting from such transaction are beneficially owned (within the meaning of Rule 13d-3 promulgated under the Exchange Act) in substantially the same
relative proportions by persons who, immediately prior to such transaction, beneficially owned (within the meaning of Rule 13d-3 promulgated under the Exchange Act) at least 51 % of the outstanding equity ownership interests in the Company; and

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 (B) securities representing at least 51% of the votes entitled to be cast by
securities entitled to vote generally in the election of directors of the entity resulting from such transaction are beneficially owned (within the meaning of Rule 13d-3 promulgated under the Exchange Act) in substantially the same relative
proportions by persons who, immediately prior to such transaction, beneficially owned (within the meaning of Rule 13d-3 promulgated under the Exchange Act) securities representing at least 51% of the votes entitled to be cast by securities entitled
to vote generally in the election of directors of the Company; 
 (ii) the acquisition of all or substantially all of the
assets of the Company or beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of outstanding securities of the Company representing 20% or more of the votes entitled to be cast by securities entitled to vote
generally in the election of directors, by any person or by any persons acting in concert (other than the Executive or any member of his family or an entity, person, or group acting in concert with him or his family or on his behalf), or approval by
the stockholders of the Company of any transaction which would result in such an acquisition; 
 (iii) a complete liquidation
or dissolution of the Company, or approval by the stockholders of the Company of a plan for such liquidation or dissolution; 
 (iv) the occurrence of any event if, immediately following such event, at least 50% of the members of the board of directors of the Company do not belong to any of the following groups: 
 (A) individuals who were members of the Board of the Company on the date of this Agreement; or 
 (B) individuals who first became members of the Board of the Company after the date of this Agreement either: 
 (I) upon election to serve as a member of the Board of the Company by the affirmative vote of a majority of the members of such Board, or
of a nominating committee thereof, in office at the time of such first election; or 
 (II) upon election by the stockholders
to serve as a member of the Board, but only if nominated for election by the affirmative vote of a majority of the members of the Board, or of a nominating committee thereof, in office at the time of such first nomination; 

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 provided, however, that such individual’s election or nomination did not result from an actual or
threatened election contest (within the meaning of Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents (within the meaning of Rule 14a-11 of Regulation 14A promulgated
under the Exchange Act) other than by or on behalf of the Board of the Company; or 
 (v) any event which would be described
in Section 11 (a)(i), (ii), (iii) or (iv) if the term “Bank” were substituted for the term “Company” therein. 
 In no
event, however, shall a Change in Control be deemed to have occurred as a result of any acquisition of securities or assets of the Company, the Bank, or a subsidiary of either of them, by the Company, the Bank, or a subsidiary of either of them, or
by any employee benefit plan maintained by any of them. For purposes of this Section 11 (a), the term “person” shall have the meaning assigned to it under sections 13(d)(3) or 14(d)(2) of the Exchange Act. 
 (b) In the event of a Change in Control, the Executive shall be entitled to the payments and benefits contemplated by Section 9(b) in the event of
his termination of service with the Company under any of the circumstances described in Section 9(a) of this Agreement or under any of the following circumstances: 
 (i) resignation, voluntary or otherwise, by the Executive at any time during the Employment Period following his demotion, loss of title,
office or significant authority or responsibility, or following any reduction in any element of his package of compensation and benefits; 
 (ii) resignation, voluntary or otherwise, by the Executive at any time during the Employment Period following any relocation of his principal place of employment or any change in working conditions at such principal
place of employment which the Executive, in his reasonable discretion, determines to be embarrassing, derogatory or otherwise adverse; 
 (iii) resignation, voluntary or otherwise, by the Executive at any time during the Employment Period following the failure of any successor to the Company in the Change in Control to include the Executive in any
compensation or benefit program maintained by it or covering any of its executive officers, unless the Executive is already covered by a substantially similar plan of the Company which is at least as favorable to him; or 
 (iv) resignation, voluntary or otherwise, for any reason whatsoever following the effective date of the Change in Control, but within 36
months of such date. 
 (c) Payments and benefits under Section 11(b) are subject to the provisions of Section 9(d). 

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 Section 12. Termination of Employment Due to Death or Disability.

 (a) In the event that the Executive’s employment with the Company shall terminate during the Employment Period on account of:

 (i) the Executive’s death; or 
 (ii) a determination that the Executive is eligible for long-term disability benefits under the Company’s long-term disability
insurance program or, if there is no such program, under the federal Social Security Act; 
 then, subject to the provisions of subsection 12(b) and the next
immediately succeeding sentence, to be applicable in the event of the Executive’s death, the Company shall have no further obligations under this Agreement, other than the payment to the Executive (or, in the event of his death, to his estate)
of his earned but unpaid Salary and any other compensation and any and all deferred compensation, including Deferred Option Shares, as of the date of the termination of his employment, and the provision of such other benefits, if any, to
which he is entitled as a former employee under the employee benefit plans and programs and compensation plans and programs maintained by, or covering employees of, the Company. Such benefits shall include, without limitation, all stock options and
restricted stock granted to the Executive prior to his death, which, as provided under the terms of the stock option agreements and restricted stock agreements, shall become fully vested in the event of the Executive’s death. In the event of
the Executive’s death, the payments and benefits described in Sections 9(b)(ii), 9(b)(iii) and 9(b) (viii)(A), (B) and (C) hereof shall be provided to the Executive’s surviving spouse, provided the Company’s
obligation to provide the Executive’s surviving spouse with continued health coverage under Section 9(b)(iii) shall continue until she becomes eligible for Medicare, and further provided that after her attainment of Medicare eligibility,
the Company shall provide the Executive’s surviving spouse with a monthly payment equivalent to the premium payable at such time for a Medicare supplemental health insurance policy that is sufficient to ensure that her Medicare coverage is at
least equivalent or substantially similar to her prior health insurance coverage with the Company. 
 (b) Notwithstanding the
provisions of subsection 12(a) hereof, in the event a Change in Control (as defined in Section 11 of this Agreement) occurs within eighteen (18) months following the effective date of the Executive’s termination of employment with the
Company due to his death or disability, the Executive (or his estate, in the event of his death) shall be entitled to receive the payments and benefits that would have been paid to the Executive pursuant to Section 9(b) of this Agreement
assuming the Executive’s employment with the Company had terminated following the date such Change in Control occurs; provided, however, the Company’s obligations under this Section 12(b) shall be offset by any compensation,
benefits or perquisites previously provided to the Executive’s surviving spouse pursuant to Section 12(a) hereof as a result of the Executive’s death during the Employment Period. In the event that an agreement for a transaction that
would constitute a Change in Control has been executed within the eighteen (18) month period after the Executive’s termination of employment with the 

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Company due to his death or disability, but final regulatory or shareholder approval of such transaction has not been obtained within the eighteen
(18) month period, the provisions of this subsection 12(b) shall extend beyond the eighteen (18) month period until the time such regulatory and shareholder approval is obtained. For purposes of the compensation, benefits or perquisites to
be provided to the Executive pursuant to Section 9(b) of this Agreement, the Executive’s “employment termination date” shall be the date immediately following the date such Change in Control occurs and any elections permitted to
be made by the Executive pursuant to Section 9(b) may be made by the Executive or his legally appointed representative, whatever the case may be. 
 Section 13. Tax Indemnification. 
 (a) This Section 13 shall
apply if Executive’s employment is terminated upon or following (i) a Change in Control (as defined in Section 11 of this Agreement); or (ii) a change “in the ownership or effective control” of the Company or the Bank
or “in the ownership of a substantial portion of the assets” of the Company or the Bank within the meaning of section 280G of the Code. If this Section 13 applies, then, if for any taxable year, the Executive shall be liable for the
payment of an excise tax under section 4999 of the Code with respect to any payment in the nature of compensation made by the Company, the Bank or any direct or indirect subsidiary or affiliate of the Company or the Bank to (or for the benefit of)
the Executive, the Company shall pay to the Executive an amount equal to X determined under the following formula: 
  

							
	X	  	=	  	ExP	  	
		  		  	1 - [(F1 x (1 - SLI)) + SLI + E + M]	  	

 where 
  

	E=	the rate at which the excise tax is assessed under section 4999 of the Code; 

  

	P=	the amount with respect to which such excise tax is assessed, determined without regard to this Section 13; 

  

	FI=	the highest marginal rate of income -tax applicable to the Executive under the Code for the taxable year in question; 

  

	SI=	the sum of the highest marginal rates of income tax applicable to the Executive under all applicable state and local laws for the taxable year in question; and

  

	M=	the highest marginal rate of Medicare tax applicable to the Executive under the Code for the taxable year in question. 

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 With respect to any payment in the nature of compensation that is made to (or for the benefit of) the Executive under
the terms of this Agreement, or otherwise, and on which an excise tax under section 4999 of the Code will be assessed, the payment determined under this Section 13(a) shall be made to the Executive on the first day of the seventh month
following the end of the year in which occurs the Executive’s termination of employment. 
 (b) Notwithstanding anything in this
Section 13 to the contrary, in the event that the Executive’s liability for the excise tax under section 4999 of the Code for a taxable year is subsequently determined to be different than the amount determined by the formula (X + P) x E,
where X, P and E have the meanings provided in Section 13 (a), the Executive or the Company, as the case may be, shall pay to the other party at the time that the amount of such excise tax is finally determined, an appropriate amount, plus
interest, such that the payment made under Section 13(a), when increased by the amount of the payment made to the Executive under this Section 13(b) by the Company, or when reduced by the amount of the payment made to the Company under
this Section l3(b) by the Executive, equals the amount that should have properly been paid to the Executive under Section 13(a). The interest paid under this Section l3(b) shall be determined at the rate provided under section 1274(b)(2)(B) of
the Code. To confirm that the proper amount, if any, was paid to the Executive under this Section 13, the Executive shall furnish to the Company a copy of each tax return which reflects a liability for an excise tax payment made by the Company,
at least 20 days before the date on which such return is required to be filed with the Internal Revenue Service. 
 (c) Notwithstanding the
provisions of Sections 13(a) and (b) above, in the event that the Executive shall be required to pay any additional amount of excise tax under section 4999 of the Code, or any successor to such section, or under any similar federal, State or
local tax provision in connection with his receipt of payment in the nature of compensation from the Company, the Bank or any direct or indirect subsidiary or affiliate of the Company or the Bank to (or for the benefit of) the Executive, the
Executive shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that, after payment by the Executive of all taxes (and any interest or penalties imposed with respect to such taxes) and the excise tax
under the Code and/or State and local tax provision imposed upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the excise tax imposed by the Code or any State or local tax provision upon such compensation.
For purposes of this paragraph 13(c), the term “taxes” shall include, but not be limited to, income taxes and the Executive’s share of any employment taxes. 
 Section 14. No Effect on Employee Benefit Plans or Programs. 
 The termination of the Executive’s employment during the term of this Agreement or thereafter, whether by the Company or by the Executive, shall have
no effect on the rights and obligations of the parties hereto under the Company’s qualified or non-qualified retirement, pension, savings, thrift, profit-sharing or stock bonus plans, group life, health (including hospitalization, medical and
major medical), dental, accident and long term disability 

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insurance plans or such other employee benefit plans or programs, or compensation plans or programs, as may be maintained by, or cover employees of, the
Company from time to time. 
 Section 15. Successors and Assigns. 
 This Agreement will inure to the benefit of and be binding upon the Executive, his legal representatives and testate or intestate distributees, and the
Company and its successors and assigns, including any successor by merger or consolidation or a statutory receiver or any other person or firm or corporation to which all or substantially all of the assets and business of the Company may be sold or
otherwise transferred. Failure of the Company to obtain from any successor its express written assumption of the Company’s obligations hereunder at least sixty (60) days in advance of the scheduled effective date of any such succession
shall be deemed a material breach of this Agreement. 
 Section 16. Notices. 
 Any communication required or permitted to be given under this Agreement, including any notice, direction, designation, consent, instruction, objection or
waiver, shall be in writing and shall be deemed to have been given at such time as it is delivered personally, or five (5) days after mailing if mailed, postage prepaid, by registered or certified mail, return receipt requested, addressed to
such party at the address listed below or at such other address as one such party may by written notice specify to the other party: 
 If to
the Executive: 
 Mr. Alfred R. Camner 
 c/o Camner, Lipsitz and Poller, P .A. 
 255 Alhambra Circle 
 Suite 1210 
 Coral Gables, Florida 33134

 with a copy to: 
 Camner, Lipsitz and Poller, P.A. 
 255 Alhambra Circle 
 Suite 1210 
 Coral Gables, Florida 33134 
 Attention: 
 Managing Director 
 If to the Company: 
 BankUnited Financial
Corporation 
 255 Alhambra Circle 
 Coral Gables, Florida 33134 

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 BankUnited Financial Corporation 
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 Attention: 
 Compensation Committee of the Board of Directors 
 with a copy to 
 Morgan, Lewis & Bockius LLP 
 1111
Pennsylvania Avenue, N.W. 
 Washington, DC 20004 
 Attention: 
 Linda L. Griggs, Esq. 
 Section 17. Indemnification for Attorneys’ Fees. 
 The Company shall indemnify, hold harmless and defend the Executive against reasonable costs, including legal fees, incurred by him in connection with or
arising out of any action, suit or proceeding in which he may be involved, as a result of his efforts, in good faith, to defend or enforce the terms of this Agreement; provided, however, that the Executive shall have substantially prevailed
on the merits pursuant to a judgment, decree or order of a court of competent jurisdiction or of an arbitrator in an arbitration proceeding, or in a settlement. For purposes of this Agreement, any settlement agreement which provides for payment of
any amounts in settlement of the Company’s obligations hereunder shall be conclusive evidence of the Executive’s entitlement to indemnification hereunder, and any such indemnification payments shall be in addition to amounts payable
pursuant to such settlement agreement, unless such settlement agreement expressly provides otherwise. 
 Section 18.
Severability. 
 A determination that any provision of this Agreement is invalid or unenforceable shall not affect the
validity or enforceability of any other provision hereof. 
 Section 19. Waiver. 
 Failure to insist upon strict compliance with any of the terms, covenants or conditions hereof shall not be deemed a waiver of such term, covenant, or
condition. A waiver of any provision of this Agreement must be made in writing, designated as a waiver, and signed by the party against whom its enforcement is sought. Any waiver or relinquishment of any right or power hereunder at anyone or more
times shall not be deemed a waiver or relinquishment of such right or power at any other time or times. 
 Section 20.
Counterparts. 
 This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, and
all of which shall constitute one and the same Agreement. 

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 Section 21. Governing Law. 
 This Agreement shall be governed by and construed and enforced in accordance with the federal laws of the United States and, to the extent that federal
law is inapplicable, in accordance with the laws of the State of Florida applicable to contracts entered into and to be performed entirely within the State of Florida. 
 Section 22. Headings and Construction. 
 The headings of sections in
this Agreement are for convenience of reference only and are not intended to qualify the meaning of any section. Any reference to a section number shall refer to a section of this Agreement, unless otherwise stated. 
 Section 23. Entire Agreement; Modifications. 
 This instrument contains the entire agreement of the parties relating to the subject matter hereof, and supersedes in its entirety any and all prior
agreements, understandings or representations relating to the subject matter hereof. No modifications of this Agreement shall be valid unless made in writing and signed by the parties hereto. Executive acknowledges that the Committee may direct the
Company’s management to investigate the feasibility of establishing a plan under which the Executive may become eligible to receive retirement benefits, in the event of his retirement from service with the Company and its affiliates. Executive
acknowledges and agrees that, in the event that the Committee determines to approve and adopt such a plan, the Committee may condition such approval and adoption of the plan upon such revisions to the severance benefits, and amounts described in
Section 9(b) of this Agreement as the Committee deems necessary or appropriate in consideration of the Executive’s total compensation package, including projected retirement benefits. 
 Section 24. Guarantee. 
 The Company hereby agrees to guarantee the payment by the Bank of any benefits and compensation to which the Executive is or may be entitled to under the terms and conditions of the employment agreement dated
effective as of July 28, 2006 between the Bank and the Executive, a copy of which is attached hereto as Exhibit D (“Bank Agreement”). 
 Section 25. Non-duplication. 
 In the event that the Executive shall
perform services for the Bank or any other direct or indirect subsidiary of the Company, any compensation, benefits or perquisites provided to the Executive by such other employer shall be applied to offset the obligations of the Company hereunder,
it being intended that this Agreement set forth the aggregate compensation, benefits and perquisites payable to the Executive for all services to the Company and all of its direct or indirect subsidiaries. 

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 Section 26. Required Regulatory Provisions. 
 Notwithstanding anything herein contained to the contrary, any payments to the Executive by the Company, whether pursuant to this Agreement or otherwise,
are subject to and conditioned upon their compliance with section l8(k) of the Federal Deposit Insurance Act, 12 U.S.C. § l828(k), and any regulations promulgated thereunder. 
 Section 27. Confidentiality and Non-Disparagement 
 (a) The Executive acknowledges that, during the Term of this Agreement, he will learn or be privy to valuable confidential business information, and he will develop and cultivate on behalf of the Company substantial
relationships with past, present and prospective business customers of the Company. During the term of this Agreement with the Company, and thereafter, Executive will not, directly or indirectly, use or disclose to anyone, or authorize disclosure of
any confidential information or trade secrets except for the benefit of the Company. 
 (b) The Executive acknowledges that the
confidentiality of the protected information with which the Executive has been or may become privy is essential and proprietary to the Company and is owned and shall continue to be owned by the Company. The Executive agrees that at the termination
of his employment, for whatever reason, he will return to the Company immediately any and all documents in whatever form that are in his possession or control and that contain, reflect or refer to confidential information or trade secrets.

 (c) The Executive and the Company warrant that it is their intention to agree to restrictions on disclosure of confidential information
that are as broad as permitted by Florida law and hereby agree to subscribe to any expansion of the recited agreements as may be authorized by any subsequent amendment to, or interpretation of, Florida law. 
 (d) The parties further agree that they shall not say, write or otherwise communicate in any manner to any person or entity anything derogatory about the
other party, regardless of the truth or falsity of such information, subject, however, to such disclosures as may be required for legal or regulatory purposes. 
 (e) The Executive acknowledges that this Section 27 is reasonably necessary to protect the business interest of the Company and agrees that, if he engages in activities prohibited by Section 27, irreparable
harm to the Company will likely result, for which is a remedy in the form of damages may not be ascertainable. Under such circumstances, the Executive acknowledges that the Company may seek temporary, preliminary or permanent injunctive relief
against him in any court of competent jurisdiction upon three days written notice provided to the address listed in Section 16. This Section shall not limit any other legal or equitable remedies that the Company or its successors may have
against the Executive for violation of this Agreement. The prevailing party in any action to enforce this Section 27 of this Agreement shall be entitled to attorney’s fees and costs. 

 Third Amended and Restated 
 Employment Agreement 
 BankUnited Financial Corporation 
  Page
 22
 of 23 
  

 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed and the Executive has
hereunto set his hand, all as of the day and year first above written. 
  

									
	ATTEST	 		 	BANKUNITED FINANCIAL CORPORATION
					
	By:	 	/s/ Lawrence Blum	 		 	By:	 	/s/ Ramiro A. Ortiz
		 	Secretary	 		 	Name:	 	Ramiro A. Ortiz
		 		 		 	Title:	 	President and Chief Operating Officer
			
	[seal]	 		 	EXECUTIVE
				
		 		 		 	/s/ Alfred R. Camner
		 		 		 	ALFRED R. CAMNER
		 		 		 	Chairman of the Board and Chief Executive Officer

 Third Amended and Restated 
 Employment Agreement 
 BankUnited Financial Corporation 
  Page
 23
 of 23 
  

 Exhibit List 
 Exhibit A
– Code of Conduct 
 Exhibit B – Insider Trading Policy 
 Exhibit C – Terms of Covenant Not to Compete 
 Exhibit D – Bank Agreement

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