Document:

Avista Corp Performance Award Plan Summary

 Exhibit 10.23 
 Avista Corp. 
 Performance Award Plan Summary 

Introductory Note 

The following Performance Award Plan Summary is governed by the May 13, 2010 amended and restated Avista Corp. Long-Term Incentive Plan (the
“Plan”). The summary description provided herein provides the specific terms and conditions covering eligibility, performance measures, grant cycles and other key factors not described in the Plan. Each individual participant will also
receive a Performance Award Agreement (the “Agreement”) which defines the individual terms for participation in a particular Performance Cycle. 
 Purpose 
 The purpose of the Performance Award Plan is to provide a means for rewarding
executive officers and other key contributors for their success in driving long-term performance results, which increase shareholder value. It also promotes a closer identity of interests between Participants and shareholders, rewards high
performance levels and attracts and retains outstanding leadership. 
 Eligibility 

All Avista Corp. executive officers are eligible to participate. Other key contributors approved by Avista Corp. Compensation and Organization Committee
(the “Plan Administrator”) may also be eligible. 
 Performance Cycle 
 The Performance Cycle will begin on January 1 of the first year and continue to December 31, three years hence. 
 Performance Award 
 Each participant is eligible to be granted a Performance Award for the
Performance Cycle. The grant amount is approved by the Plan Administrator and established using competitive equity compensation data for comparable positions within the Energy industry. Awards granted to non-officer positions may be considered above
market compensation for comparable positions. 
 Performance Goals 
 The Award payment is determined at the end of the Performance Cycle based upon achieving Avista Corp. financial, operational and/or shareholder return performance goals or other indicators determined by
the Plan Administrator. The Performance Goals established for the Performance Cycle will be set forth in the Performance Award Agreement. 

  
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 Dividend Equivalent Rights 
 For every share/unit the participant earns after the Performance Cycle, a cash dividend value is calculated and distributed. The value is based on the total number of shares/units earned and the cash
distributions that would have been paid on the shares of Common Stock over the Performance Cycle as if the shares had been issued and outstanding on the dividend record dates. 

 

									
	 Final Performance

Award Payout

(Avista shares/units)
	  	×	  	 Total Dividends Paid Per
 Share over Performance
 Cycle
	  	=	  	 Dividend
 Equivalent

 Performance Award Payout Formula 

The Performance Award Payout Formula is provided in each Performance Award Agreement. Participants are limited to a maximum 150% of the Performance Award
opportunity. Final awards may be distributed in whole shares of Avista Corp. Common Stock, cash or a combination thereof. 
 Settlement of
Performance Award 
 If earned, Awards will be paid as soon as practical following the completion of the Performance Cycle and approval by
the Plan Administrator. Performance Awards and Dividend Equivalents may be paid in the form of whole shares of Avista Corp. Common Stock, cash or any combination thereof. The Participant may no longer elect to defer part or all of the payment
consistent with the provisions of the Avista Corp. Executive Deferral Plan. All awards, dividend equivalents or incentives are subject to the provisions of the Avista Recoupment Policy. 
 Audit and Approval of Awards 
 The financial calculations necessary to determine the
Corporation’s financial performance, as well as other steps in determining the award settlement for each individual, will be reviewed by Corporate Finance before awards are made. The Plan Administrator will approve all awards prior to payout.

 Tax Withholding 
 The full
value of the Performance Award and the Dividend Equivalents are considered ordinary income and are subject to applicable taxes at the time of distribution. To satisfy the taxes on income, the Company will withhold whole shares sufficient to cover
the taxes for the performance shares issued. Any residual monies from the withholding of shares will be paid as additional federal income tax. To satisfy the taxes on the dividend equivalents, the Company will withhold funds sufficient to cover the
taxes. 

  
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 Termination 
 Voluntary termination or termination for cause results in forfeiture of all outstanding Performance Awards. Participation in less than the full Performance Cycle due to retirement, disability or death of
a participant will result in a prorated award after the Performance Cycle. In general, the prorated award, if earned after the Performance Cycle, will be calculated using the ratio of the number of months the Participant was actively employed during
the Cycle to the total number of months in the Performance Cycle. The Plan Administrator, in its full discretion, reserves the right to authorize changes to this clause. 
 Change in Control 
 In the event of a qualifying Change in Control (as defined in section
2.4 of the Plan), outstanding Performance Awards will be paid as if the performance goals were met at 100% of target; then prorated for the portion of the Performance Cycle completed at the time of the Change in Control. Payments maybe paid in cash
lump sum rather than stock. 
 Transferability 
 No Performance Award or Dividend Equivalent Right granted or awarded may be assigned or transferred other than by will or by the applicable laws of descent and distribution. Settlements of Awards may be
payable only to the Participant or a designated beneficiary. All assigned or transferees are subject to the same terms and conditions contained in the Agreement. 
 Continued Employment or Services, Rights in Awards 
 Nothing contained in the Agreement, the
Plan, or any action of the Plan Administrator taken under the Plan or the Agreement shall be construed as giving any Participant any right to be retained in the employ of Avista or limit Avista’s right to terminate the employment or services of
the Participant. 
 No Rights as a Shareholder 
 No Performance Award entitles the Participant to any dividends (except in an award of Dividend Equivalent Rights), voting or any other right as a shareholder until the shares are earned and free of all
applicable restrictions. 
 Administration of the Performance Award Plan 
 The Plan Administrator has complete authority to manage and control the operation and administration of the Performance Award Plan. Any interpretation of the Agreement and any decision made by the Plan
Administrator are final and binding. 
 Governing Law 
 The State of Washington shall be the governing law and any litigation arising under the Agreement shall be conducted in the courts of Spokane County, the State of Washington or the federal courts of the
United States. 

  
 Page 3 of 3Avista Corporation Performance Award Agreement

 Exhibit 10.24 
 AVISTA CORPORATION 
 PERFORMANCE AWARD AGREEMENT 

This Performance Award Agreement (the “Agreement”) is made by and between Avista Corporation, a Washington Corporation (the
“Company”) and the individual named in section 1 (the “Participant”) and selected by the Avista Corporation Organization and Compensation Committee (the “Plan Administrator”). 

WHEREAS, Performance Awards are granted under the May 13, 2010 amended and restated Avista Corporation Long-Term Incentive Plan (the
“Plan”). The terms and conditions of the Performance Awards are set forth below and in the Plan, which is incorporated into this Agreement by reference. 
 NOW, THEREFORE, in consideration of the premises contained herein and in the Plan, it is agreed as follows: 
 1. Terms of Performance Awards. The terms of the Performance Awards are set forth as follows: 
  

	 	(a)	The “Participant” is . 

  

	 	(b)	The “Grant Date” is February 11, 2010. 

  

	 	(c)	The number of eligible “Performance Awards” shall be units. “Performance Awards” granted under this Agreement are units that will be reflected in a
book account maintained by the Company during the Performance Cycle, and that will be settled in cash or shares of Avista Corporation Common Stock (“Common Stock”) to the extent provided in this Agreement and the Plan.

  

	 	(d)	The “Performance Cycle” is the period beginning on January 1, 2010 and ending on December 31, 2012. 

2. Grant. Subject to the terms of this Agreement and the Plan, the Participant is hereby granted the number of Performance Awards as set forth in
section 1. 
 3. Settlement of Performance Awards. The Company shall deliver to the Participant one share of Common Stock (or cash
equal to the Fair Market Value of one share of Common Stock) for each Performance Award earned by the Participant, as determined in accordance with the provisions of Exhibit 1, which is attached to and forms a part of this Agreement. The earned
Performance Award payable to the Participant shall be paid in shares of Common Stock or in cash (based on the Fair Market Value of the Common Stock as determined as of the first business day next following the last day of the Performance Cycle), or
in a combination of the two, as determined by the Plan Administrator in its sole discretion, except that cash shall be distributed in lieu of any fractional share of Common Stock.  
 All Performance Awards and any Dividend Equivalents (as described in Section 5 below) earned by a Participant under this Agreement are subject to the Recoupment Policy adopted by the
Company’s Board of Directors as amended from time to time (“Recoupment Policy”). If a Participant becomes subject to the Recoupment Policy any Performance Award and associated Dividend Equivalent may be forfeited in whole or in part
and all or part of any distribution payable to a Participant or his or her beneficiary under this Agreement may be recovered by the Company pursuant to the Recoupment Policy. 

  
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 4. Time of Payment. Except as otherwise provided in this Agreement, payment of Performance Awards
earned will be delivered as soon as feasible after the end of the Performance Cycle. 
 5. Dividend Equivalent Rights. Any Performance
Awards may, in the Plan Administrator’s discretion, earn Dividend Equivalent Rights. In respect of any Performance Award that is outstanding on the dividend record date for Common Stock, the Participant may be credited with an amount equal to
the cash distributions that would have been paid on the shares of Common Stock covered by such Award had such covered shares been issued and outstanding on such dividend record date. Dividend Equivalent Rights are to be paid in cash based on the
total number of Performance Awards earned at the end of the Performance Cycle and delivered as soon as feasible after the Performance Cycle. Dividend Equivalent Rights are subject to all applicable taxes, which are the responsibility of the
Participant. 
 6. Termination of Employment during Performance Cycle. Except as otherwise provided in section 7, this section 6 shall
apply if the Participant’s employment terminates during a Performance Cycle. If the Participant’s employment with the Company and/or Subsidiaries terminates during the Performance Cycle because of Retirement, Disability, or death, the
Participant shall be entitled to a prorated value of the Performance Award earned in accordance with Exhibit 1, determined at the end of the Performance Cycle, and based on the ratio of the number of whole months the Participant is employed during
the Performance Cycle to the total number of months in the Performance Cycle (36). If a Participant’s employment or services with the Company terminate on or as of the last day of a performance period, such Participant will be deemed to have
terminated after the end of such performance period. If the Participant’s employment with the Company and/or Subsidiaries terminates during the Performance Cycle for any reason other than Retirement, Disability, or death, the Performance
Award granted under this Agreement will be forfeited on the Date of Termination (as defined in section 9(b)); provided, however, that in such circumstances, the Plan Administrator, in its sole discretion, may determine that the Participant will be
entitled to receive a prorated or other portion of the Performance Award. In case of termination for Cause, the Performance Award granted shall automatically terminate upon first notification to the Participant of such termination, unless the Plan
Administrator determines otherwise. If a Participant’s employment with the Company is suspended pending an investigation of whether the Participant shall be terminated for Cause, all the Participant’s rights under any Award likewise shall
be suspended during the period of investigation. The effect of a Company-approved leave of absence on the terms and conditions of an Award shall be determined by the Plan Administrator, in its sole discretion. 

7. Change in Control. If a Change in Control occurs during the Performance Cycle, and the Participant’s Date of Termination (as defined in
section 9(b)) does not occur before the Change in Control date, the Participant shall be entitled to a prorated value of the Performance Award that would have been earned by the Participant in accordance with Exhibit 1, determined as of the date of
the Change in Control, prorated based on the ratio of the number of whole months the Participant is employed during the Performance Cycle through the date of the Change in Control, to the total number of months in the Performance Cycle; provided,
however, that a Payout Factor of at least 100% as set forth in Exhibit 1 for the Performance Cycle shall be deemed to have been achieved as of the date of the Change in Control. Notwithstanding the provisions of sections 3 (with the exception of the
application of the Recoupment Policy), 4, and 5, the value of the Performance Award, and any Dividend Equivalent Right, earned in accordance with the foregoing provisions of this section shall be delivered to the Participant in a

  
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lump sum cash payment as soon as feasible after the occurrence of a Change in Control, with the value of a Performance Award equal to the Fair Market Value of a share of Common Stock determined
under the provision of section 3 as of the date of the Change in Control. Distributions to the Participant under sections 3 and 5 shall not be affected by payments under this section, except that the number of Performance Awards and Dividend
Equivalent Rights earned by and payable to the Participant shall be reduced by the number of Performance Awards and Dividend Equivalent Rights with respect to which payment was made to the Participant under this section. 

8. Taxes. The Participant is liable for any and all taxes, including withholding taxes, arising out of the grant, vesting, payment or settlement
of any Performance Awards and Dividend Equivalent Rights. The Company shall have the right to require the Participant to remit to the Company, or to withhold awarded shares of Common Stock, or from any Dividend Equivalent Rights or other amounts due
to the Participant, as compensation or otherwise, an amount sufficient to satisfy all federal, state and local withholding tax requirements. 

9. Definitions. For purposes of this Agreement, the terms used in this Agreement shall be subject to the following: 

 

	 	(a)	Change in Control. The term “Change in Control” is defined in section 2.4 of the November 9, 2006 amended and restated Avista Corp. Long Term
Incentive Plan. 

  

	 	(b)	Date of Termination. The Participant’s “Date of Termination” shall be the first day occurring on or after the Grant Date on which the Participant
is not employed by the Company or any Subsidiary, regardless of the reason for the termination of employment; provided that a termination of employment shall not be deemed to occur by reason of a transfer of the Participant between the Company and a
Subsidiary or between two Subsidiaries; and further provided that the Participant’s employment shall not be considered terminated while the Participant is on a leave of absence from the Company or a Subsidiary approved by the Participant’s
employer. If, as a result of a sale or other transaction, the Participant’s employer ceases to be a Subsidiary (and the Participant’s employer is or becomes an entity that is separate from the Company), and the Participant is not, at the
end of the 30-day period following the transaction, employed by the Company or an entity that is then a Subsidiary, then the occurrence of such transaction shall be treated as the Participant’s Date of Termination caused by the Participant
being discharged by the employer. 

  

	 	(c)	Disability. “Disability” means “disability” as that term is defined for purposes of the Company’s Long Term Disability Plan or other
similar successor plan applicable to employees. 

  

	 	(d)	Retirement. “Retirement” of the Participant shall mean retirement as of the individual’s retirement date under the Retirement Plan for Employees
of Avista Corporation or other similar successor plan applicable to employees. 

 10. Assignability. No Performance Award
or Dividend Equivalent Right granted or awarded under the Plan may be assigned or transferred by the Participant other than by will or by the applicable laws of descent and distribution, and, during the Participant’s lifetime, settlements of
such Awards may be payable only to the Participant or a permitted assignee or transferee of the Participant (as provided below). Notwithstanding the foregoing, the Plan Administrator, in its 

  
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sole discretion, may permit such assignment or transfer and may permit a Participant of such Performance Awards or Dividend Equivalent Rights to designate a beneficiary who may receive
compensation settlement under the Award after the Participant’s death; provided, however, that any amount so assigned or transferred shall be subject to all the same terms and conditions contained in this Agreement. 

11. General. 
 11.1
Award Agreements. Performance Awards granted under the Plan shall be evidenced by a written agreement that shall contain such terms, conditions, limitations and restrictions as the Plan Administrator shall deem advisable and that are not
inconsistent with the Plan. 
 11.2 Continued Employment or Services; Rights in Awards. Nothing contained in this
Agreement, the Plan, or any action of the Plan Administrator taken under the Plan or this Agreement shall be construed as giving any Participant or employee of the Company any right to be retained in the employ of the Company or to limit the
Company’s right to terminate the employment or services of the Participant. 
 11.3 Registration. At the present
time, the Company has an effective registration statement with respect to the shares. The Company intends to maintain this registration but has no obligation to do so. In the event that such registration ceases to be effective, you will not receive
a Performance Award settlement or payment unless exemptions from registration under federal and state securities laws are available; such exemptions from registration are very limited and might be unavailable. By accepting the Agreement, you
hereby acknowledge that you have read Section entitled Registration of the Plan. 
 11.4 No Rights as a Shareholder.
No Performance Award shall entitle the Participant to any dividends (except to the extent provided in an award of Dividend Equivalent Rights), voting or any other right of a shareholder unless and until the date of issuance under the Plan of the
shares that are the subject of such Performance Award, free of all applicable restrictions. 
 11.5 Compliance with Laws and
Regulations. Notwithstanding anything in the Plan to the contrary, the Board, in its sole discretion, may bifurcate the Plan so as to restrict, limit or condition the use of any provision of the Plan to Participants who are officers or directors
subject to Section 16 of the Exchange Act without so restricting, limiting or conditioning the Plan with respect to other Participants. 
 11.6 Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity and enforceability of any other provision of this Agreement. If any provision
of the Agreement is determined to be invalid, illegal or unenforceable in any jurisdiction, or as to any person, or would disqualify any Performance Award under any law deemed applicable by the Plan Administrator, such provision shall be construed
or deemed amended by the Plan Administrator to conform to applicable laws, or, if the Plan Administrator determines that the provision cannot be so construed or deemed amended without materially altering the intent of the Plan or the Performance
Award, such provision shall be stricken as to such jurisdiction, person or Performance Award, and the remainder of the Agreement and any such Performance Award shall remain in full force and effect. 

12. Administration. The authority to manage and control the operation and administration of this Agreement shall be vested in the Plan
Administrator, and the Plan Administrator shall have all powers with respect to this Agreement as it has with respect to the Plan. Any interpretation of the Agreement by the Plan Administrator and any decision made by it with respect to the
Agreement are final and binding. 

  
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 13. Construction. This Agreement is subject to and shall be construed in accordance with the Plan,
the terms of which are explicitly made applicable hereto. Unless otherwise defined herein, capitalized terms in this Agreement shall have the same definitions as set forth in the Plan. In the event of any conflict between the provisions hereof and
those of the Plan, the provisions of the Plan shall govern. 
 14. Amendment. This Agreement may be amended by written agreement of the
Participant and the Company, without the consent of any other person. 
 15. Governing Law. The validity, construction, interpretation
and enforceability of this agreement shall be determined and governed by the laws of the State of Washington without giving effect to the principles of conflicts of laws. For the purpose of litigating any dispute that arises under this Agreement,
the parties hereby consent to exclusive jurisdiction in Washington State and agree that such litigation shall be conducted in the courts of Spokane County, Washington or the federal courts of the United States. 

16. Successors. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to agree in writing to assume the Company’s obligations under this Agreement and to perform such obligations in the same manner and to the same extent that the Company is required
to perform them. As used in this Agreement, “Company” shall mean the Company and any successor to its business and/or assets that assumes and agrees to perform the Company’s obligations under the Agreement by operation of law or
otherwise. 
 IN WITNESS WHEREOF, the Participant has executed this Agreement, and the Company has caused these presents to be executed in its
name and on its behalf, all as of the Grant Date. 
 AVISTA CORPORATION 

 

	By:	Scott L. Morris 

	    	Chairman of the Board, President and Chief Executive Officer 

  
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 EXHIBIT 1 
 Performance Award Plan 
 Performance Measures and Goals 

2010-2012 Performance Cycle 
 The following graph and table present the relationship between the Company’s relative three-year total shareholder return (TSR) commencing January 1, 2010 and ending December 31, 2012 and
the award opportunity. The number of shares delivered at the end of the three-year cycle will range from zero to 150% of the grant. The actual payment depends on Avista’s three-year total shareholder return compared to the returns reported in
the S&P 400 Utilities Index. To receive 100% of the Award, Avista must perform at the 55th percentile among the S&P 400 Utilities Index. To receive 150% of the Award, Avista must perform at or above the 85th percentile ranking. If Avista performs below the 45th percentile ranking, no awards or dividend equivalents will be
received. Dividend Equivalent Rights are calculated and paid out in cash when and to the extent the performance shares are paid. Awards are interpolated for performance results between the figures shown. 

 

 

  

			
	 Three-year Relative

Total Shareholder Return
	 	 Payout Factor

(% of Target)

	3 85th	 	150%
	   70th	 	125%
	   55th	 	100%
	   50th	 	  75%
	   45th	 	  50%
	£ 45th	 	    0%

 Total
shareholder return reflects stock price appreciation and dividend reinvestment over the three-year period. The calculation assumes that dividends are reinvested on a daily basis. The source for stock price and dividend data is Standard and
Poor’s Research Insight. 
 From one year to the next, if S&P drops a company out of the index and adds another, the new company will
be included in the ranking and the dropped company will be excluded. When a new company is added, they will be added to the ranking as if they had been in the ranking from the beginning – provided that there is pricing and dividend data at the
beginning of the cycle. When a company is dropped everything related to that company will be excluded from the ranking as if the company was never part of the ranking. 
 Example Formula: 
 Assuming that the Shares granted were 3,000 and the
Total Shareholder Return is ranked at the 50th percentile
after the three-year Performance Cycle, then the Participant’s final award is 2,250 Shares of Stock plus Dividend Equivalents Rights. 
  

									
	 Payout Factor
 (% of Target)
	  	×	  	# of Performance Shares Granted to Participant	  	=	  	Final # of Performance Shares Awarded to Participant
	75%	  	×	  	3,000 shares	  	=	  	2,250 shares plus Dividends

  
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 Percentile Ranking Methodology: 
 The percentile rank is calculated using the PERCENTRANK function in MS Excel, excluding Avista from the list and rounding all results to the nearest whole percentile. 

The calculation can be replicated by arranging the TSR data from highest to lowest for all peers except Avista. A percentile ranking is calculated for
each data point assuming 100.0th %ile for the highest data point, 0.0 %ile for the lowest data point, and the corresponding percentile for every other data point with an equal difference in percentile ranking for each data point. The TSR for Avista
is calculated by determining Avista’s rank in the list and interpolating between the percentile rankings for the companies immediately above and below based on the differences in TSR. 
 An example, based on sample data is as follows: 
  

					
	 Company Ranking
	 	 TSR
	 	 Percentile

Rank

	1	 	201.6%	 	100.0%
	2	 	135.9%	 	98.2%
	47 (ABC Corp)	 	20.3%	 	17.8%
	48 (XYZ Corp)	 	16.0%	 	16.0%
	56	 	-3.3%	 	1.7%
	57	 	-10.5%	 	0.0%

 If a company’s TSR is 18.9%, the
resulting percentile ranking would be 17%, calculated as follows: 
 17% = 16.0% + [(18.9% - 16.0%) / (20.3% - 16.0%) * (17.8% - 16.0%)]

 Total Shareholder Return (TSR) Methodology: 
 For purposes of this agreement, a methodology for calculating a total return to shareholder with dividend reinvestment was established. Returns are calculated daily based on stock price changes and
dividend payments and then accumulated over the measurement period. Below are additional assumptions used in Avista’s calculation. 

General Assumptions: 
  

	 	1.	The starting and ending prices are determined by averaging closing price on the last trading day of November and the last trading day of December. For example, the
stock price for the start of the performance period for Avista is $21.46, the average of $21.54 (12/31/2007) and $21.38 (11/30/2007). 

  

	 	2.	Reinvest dividends on a daily basis. 

  

	 	3.	Use ex-date dividends per share. 

  

	 	4.	Returns will be calculated over the applicable performance period. 

 Example: 
  

							
	 Date
	 	 Closing

Price
	 	 Dividend
	 	 Daily TSR

	11/23/2007	 	21.08	 	0	 	NA
	11/26/2007	 	20.90	 	0	 	(0.8539%)
	11/27/2007	 	21.09	 	0.15	 	1.6268%*
	11/28/2007	 	21.54	 	0	 	2.1337%
	11/29/2007	 	21.38	 	0	 	(.7428%)
	11/30/2007	 	21.38	 	0	 	0.00%

  

			
	 Cumulative TSR 11/23/2007 to 11/30/2007
	  	2.1347%

  

	*	[(21.09 + 0.15) / 20.90] -1 

  
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 ACCEPTANCE AND ACKNOWLEDGMENT 
 I, a resident of the state of
                                    , accept the Performance
Award described in this Agreement and in the Plan, and acknowledge that I have received a copy of this Agreement and the Plan. I have read and understand the Plan, and I hereby make the representations, warranties and acknowledgments, and undertake
the indemnity and other obligations, therein specified. 
  

							
	Dated:                            
     	 		 		 	
				
	  
 Social Security
Number
	 		 		 	  

Signature of Employee

				
		 		 		 	  
 Printed
Name

  
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