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EXHIBIT 10.2

SECOND AMENDMENT
TO THE
PNM RESOURCES, INC.
EXECUTIVE SAVINGS PLAN II
 
 
Effective as of December 15, 2004, PNM Resources, Inc. (the “Company”) adopted
the PNM Resources, Inc. Executive Savings Plan II (the “Plan”). The Plan was
subsequently amended on one occasion. Section 409A of the Internal Revenue Code
of 1986, as amended, (“Section 409A”) imposes a number of requirements on
non-qualified deferred compensation plans such as the ESP II. The transitional
rules governing the implementation of Section 409A allow for amendment of any
non-qualified deferred compensation plan to allow participants to make new
payment elections with respect to both the time and form of payment of amounts
due under such plan without such election being treated as a change in the
timing and form of payment under Section 409A(a)(4) or an acceleration of a
payment under Section 490A(a)(3), provided that such amendment is adopted and
the participants make any applicable elections on or before December 31, 2006.
By this instrument, the Company now desires to amend the Plan to allow
participants to make such a change to their elections on or before December 31,
2006.
 
1. This Second Amendment shall be effective as of September 26, 2006.
 
2. This Second Amendment amends only the provisions of the Plan as set forth
herein, and those provisions not expressly amended hereby shall be considered in
full force and effect. Notwithstanding the foregoing, this Second Amendment
shall supersede the provisions of the Plan to the extent those provisions are
inconsistent with the provisions and intent of this Second Amendment.
 
3. Section 6.3 (Form of Distribution) of the Plan is hereby amended by adding
the following new paragraph (e) to the end thereof:
 
(e) Changes to Distribution Elections Prior to December 31, 2006.
Notwithstanding any provision herein to the contrary, a Participant may file a
new Distribution Election Form on or before December 31, 2006 in which the
Participant elects to change the time of a payment elected by the Participant or
the form of payment elected by the Participant, provided that such change in
election may apply only to amounts payable in 2007 or later and provided further
that such change in election does not cause an amount to be paid in 2006 that
would not otherwise be payable in 2006. Any change in election made pursuant to
this Section 6.3(e) will not be subject to the restrictions set forth in Section
6.3(d) (Changes in Time and Form of Distribution).

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EXHIBIT 10.2
 

 
IN WITNESS WHEREOF, PNM Resources, Inc. has caused this Second Amendment to be
executed as of this 29th day of September 2006.
 

        PNM RESOURCES, INC.  
   
   
    By:   /s/  Alice A. Cobb  

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  Its: SVP, Chief Administrative Officer 

 

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