Document:

PNM 12.31.2014 EX 10.4.4

Exhibit 10.4.4

EMPLOYEE RETENTION AGREEMENT
THIS AGREEMENT is entered into by and between PNMR Services Company (the “Company”) and Thomas G. Sategna (the “Employee”) (collectively, the “Parties”).
RECITALS:
The Employee has provided notice to the Company that he wants to voluntarily retire.  The Company wishes to have Employee continue providing his services and continue his employment through December 31, 2015.  The parties agree that Employee may step down from his position of Vice President and Corporate Controller as of March 31, 2015 but will continue his employment through December 31, 2015.
To incentivize Employee to continue through the Retention Date, meet certain performance measures, and ensure that Employee will not provide services for a competing business in accordance with the terms hereof, Employee will be eligible for a “Retention Bonus” and a “Performance Bonus” as specified by this Agreement.
TERMS AND CONDITIONS:
1.Effective Date of Agreement.
This Agreement shall be effective on January 1, 2015 (the “Effective Date”).
2.    Scope of Agreement; At Will Employment.
Other than expressly set forth in this Agreement, all terms and conditions of the Employee’s employment are unchanged and are determined pursuant to Company’s employment policies and practices unless otherwise specifically modified by this Agreement.
During the term of this Agreement, Employee will continue to devote substantially all of Employee’s undivided working time, attention, knowledge, and skills to Employee’s current job assignment, or as may be assigned from time to time.
Employee acknowledges that Employee’s employment by the Company remains “at-will” and that Employee or the Company may terminate the employment relationship at any time for any reason.  If the employment relationship between the parties ends during the term of this Agreement, this Agreement will only govern the terms of the payment of the Retention Bonus and the Performance Bonus.
3.    Retention Bonus and Performance Bonus.
Employee shall be entitled to a Retention Bonus of $222,000, if: (1) Employee remains employed by the Company through the Retention Date, (2) Employee continues to devote substantially all of Employee’s undivided working time, attention, knowledge, and skills to Employee’s job assignment as determined by management in its discretion, (3) Employee executes and does not revoke the release called for by Section 11 (Release) and (4) Employee complies with the terms of the Restrictive Covenant Agreement described in Section 12 (Supplemental Restrictive Covenant Agreement) and Appendix B.

Employee also shall be entitled to a Performance Bonus if (1) Employee remains employed by the Company through the Retention Date, (2) Employee continues to devote substantially all of Employee’s undivided working time, attention, knowledge, and skills to Employee’s job assignment as determined by management in its discretion, (3) Employee completes the Performance Deliverables listed on Appendix A prior to the Retention Date, (4) Employee executes and does not revoke the release in accordance with Section 11 (Release) and (5) Employee complies with the terms of the Supplemental Restrictive Covenant Agreement described in Section 12 (Supplemental Restrictive Covenant Agreement) and Appendix B.  
If, in the discretion of the Company’s Chief Financial Officer, the Performance Deliverables are achieved at an exceptional level as determined by the Chief Financial Officer, the Performance Bonus shall be in an amount equal to $125,000.  If, in the discretion of the Company’s Chief Financial Officer, the Performance Deliverables are achieved at an acceptable level as determined by the Chief Financial Officer, the Performance Bonus shall be in an amount equal to $75,000.  If, in the discretion of the Chief Financial Officer, the Performance Deliverables are achieved, but at a less than acceptable level as determined by the Chief Financial Officer, the Chief Financial Officer has the full discretion and authority to reduce the Performance Bonus to an amount between $0 and $75,000.
The Retention Bonus and the Performance Bonus payments made pursuant to this Agreement shall be subject to withholding of applicable income and employment taxes.  The Retention Bonus and the Performance Bonus will be classified for payroll and other purposes as Employee Recognition Awards (“ERA”).  
4.    Termination of Employment.
(a)    Termination by Company without Cause.  Company may terminate Employee’s employment without “Cause” prior to the Retention Date (including following a Change in Control), by providing Employee with 30 days advance written notice of termination.  The notice of termination shall be accompanied by the release required by Section 11 (Release).  Company may prohibit or restrict Employee’s access to Company premises during the 30-day notice period and may place Employee on a paid leave of absence during all or any portion of the notice period.  Employee’s termination of employment will be effective on the last day of the notice period.  If Company terminates Employee’s employment without Cause pursuant to this Section, Employee will receive a Pro Rata Bonus (as defined below) which shall be payable on Employee’s last day of employment, provided Employee executes and does not revoke the release required by Section 11 (Release) at the time specified in Section 11 (Release).  In such instance, Employee will not be entitled to receive benefits pursuant to the PNM Resources, Inc. Non-Union Severance Pay Plan.
(b)    Termination by Company for Cause.  If the Company terminates Employee’s employment for “Cause” prior to the Retention Date, Employee will not be entitled to receive the Retention Bonus or the Performance Bonus.  
(c)    Termination by Employee.  If Employee terminates employment for any reason prior to the Retention Date, the Employee will not be entitled to receive the Retention Bonus or the Performance Bonus.

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5.    Disability.
If Employee becomes Disabled prior to the Retention Date, Employee will receive a Pro Rata Bonus.  As a condition to receiving the Pro Rata Bonus, Employee must execute and not revoke the release required by Section 11 (Release) at the time specified in Section 11 (Release).  If Employee becomes Disabled and entitled to a payment pursuant to this Section, the Company will not terminate Employee’s employment until at least 30 days following the effective date of Employee’s Disability.
6.    Death.
If Employee dies prior to the Retention Date, Employee shall receive a Pro Rata Bonus.  In such instance, the Pro Rata Bonus will not be deferred into the ESP II pursuant to Section 7 (Deferral into Executive Savings Plan II) and instead will be paid in a single lump sum within thirty (30) days of the date of the Employee’s death.
7.    Deferral into Executive Savings Plan II 
If Employee receives the Retention Bonus and Performance Bonus, or a Pro Rata Bonus, due to the events listed in Sections 3 (Retention Bonus and Performance Bonus), 4(a) (Termination of Employment – Termination by Company without Cause) or 5 (Disability), Employee hereby elects to defer 100% of the Retention Bonus and 100% of the Performance Bonus into the PNM Resources, Inc. Executive Savings Plan II (the “ESP II”) as a Supplemental Deferral.  This Supplemental Deferral shall be referred to as Employee’s “Retention Bonus Supplemental Deferral.”  Employee hereby elects to have his Retention Bonus Supplemental Deferral paid in the form of annual installments over five (5) years in accordance with the terms of the ESP II.  If Employee dies before the expiration of the installment period, the remaining installment distributions will be paid in a single lump sum payment to Employee’s designated beneficiary.  Distribution of Employee’s Retention Bonus Supplemental Deferral will begin on the earliest of Employee’s Separation from Service (as defined in ESP II), death or Disability (as defined in ESP II).  If Employee is a Specified Employee (as defined in ESP II), distributions due to Separation from Service will begin on the date which is six months after Employee’s Separation from Service.  Employee hereby agrees to the terms and provisions of the ESP II.  Employee understands that his elections are irrevocable.
8.    Participation in Incentive Plans.
Notwithstanding anything in any incentive plan to the contrary, Employee acknowledges that he will not be eligible to participate in the PNM Resources, Inc. 2015 Annual Incentive Plan, the PNM Resources, Inc. 2015 Officer Annual Incentive Plan or the PNM Resources, Inc. 2015 Long-Term Incentive Plan.  Employee also acknowledges that pursuant to the terms of the PNM Resources, Inc. 2014 Long-Term Incentive Plan (“2014 LTIP”), he is not eligible to receive any awards under the 2014 LTIP.  
For the avoidance of doubt, Employee also acknowledges that he is not eligible under the terms of the PNM Resources, Inc. 2013 Long-Term Incentive Plan (the “2013 LTIP”) to receive a grant of time vested Restricted Stock Rights pursuant to the 2013 LTIP.  

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Employee shall be eligible to receive a grant of time vested Restricted Stock Rights pursuant to the PNM Resources, Inc. 2012 Long-Term Incentive Plan (the “2012 LTIP”), subject to the terms and conditions of the 2012 LTIP.
Employee shall be eligible to receive a Performance Share Award pursuant to the 2013 LTIP and the 2012 LTIP, subject to the terms and conditions of the 2013 LTIP and 2012 LTIP.
9.    Definitions.
The following words and phrases shall have the meanings set forth in this Section 9, unless a clearly different meaning is required by the context in which the word or phrase is used in this Agreement:  
(a)    “Cause.”  For purposes of this Agreement, “Cause” shall have the meaning set forth in the PNM Resources, Inc. Officer Retention Plan.
(b)    “Change in Control.”  For purposes of this Agreement, “Change in Control” has the meaning ascribed to that term in the Retention Plan in which the Employee participates (i.e., the Officer Retention Plan or the Employee Retention Plan) at the time of the closing of a transaction or the occurrence of an event that results in the Change in Control.
(c)    “Disability.”  For purposes of this Agreement, “Disability” or “Disabled” shall have the meaning set forth in the ESP II.  
(d)    “Effective Date.”  The “Effective Date” of this Agreement is January 1, 2015.  
(e)    “Pro Rata Bonus.”  A Pro Rata Bonus will be paid to the Employee if he is terminated without Cause or the Employee dies or becomes Disabled.  The amount of the “Pro Rata Bonus” will equal $297,000 multiplied by a fraction.  The numerator of the fraction is the number of days that elapse between the April 1, 2015 and the date on which the Employee is terminated by the Company without Cause, dies or becomes Disabled.  The denominator of the fraction is 275.  If Employee terminates employment for any reason prior to April 1, 2015, Employee shall not be entitled to a Pro Rata Bonus.
(f)    “Retention Date.”  The “Retention Date” for purposes of this Agreement is December 23, 2015.
10.    Confidentiality.
Employee understands and agrees that the terms of this Agreement are to remain confidential and are to be made known only to his immediate family, attorneys, tax authorities upon request, and tax advisors and accountants for purposes of any tax preparation or reporting that may be required.  Employee will not divulge or discuss, directly or indirectly, in any newspaper, electronic media, or other public or private forum, or with any third parties (including current or former employees of the Company or its affiliates) the terms of this Agreement unless specifically ordered to do so by a court of competent jurisdiction (in which case the Company will be first notified and given a reasonable opportunity to challenge the order or proposed court order).  Furthermore, Employee will use all reasonable efforts to ensure that 

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his agents, other family members, friends, co-workers, former co-workers and acquaintances do not discover or publicize the terms of this Agreement.  Employee understands and agrees that this confidentiality provision is a material term of this Agreement.
11.    Release.  
As a condition to receiving the Retention Bonus and the Performance Bonus or a Pro Rata Bonus, Employee must execute and not revoke a full and general release, releasing all claims that Employee may have against the Company and any affiliate of the Company arising out of and related to Employee’s employment or termination of employment with the Company or its affiliates.  Such release shall be prepared by the Company.  In no event will a payment be made pursuant to this Agreement after March 31, 2016.
(a)    Voluntary Termination at the End of the Retention Period.  If Employee remains employed through the Retention Date, Employee will receive the Release no later than November 23, 2015 and must sign the Release and return it to the Company on December 14, 2015.  Employee shall have until 9:00 a.m. MST on December 22, 2015 to revoke the Release after execution.  If Employee does not revoke the Release, Employee shall be eligible to “receive” the Retention Bonus and the Performance Bonus on December 23, 2015, but such Retention Bonus and Performance Bonus shall be deferred into the ESP II pursuant to Section 7 (Deferral into Executive Savings Plan II).  
(b)    Termination by Company without Cause.  If Employee’s employment is terminated by the Company without Cause prior to the Retention Date, Employee shall receive the Release at the time the notice of termination is provided to Employee.  Employee shall have 21 calendar days to review the Release and sign it and return it to the Company.  Employee shall have seven (7) calendar days to revoke the Release.  If Employee does not revoke the Release, Employee shall be eligible to “receive” the Pro Rata Bonus on his last day of employment, but such Pro Rata Bonus shall be deferred into the ESP II pursuant to Section 7 (Deferral into Executive Savings Plan II).
(c)    Disability.  If Employee becomes Disabled, Employee will receive the Release on the effective date of his Disability.  Employee will have twenty-one (21) calendar days to consider the Release and return it to the Company.  Employee shall have seven (7) calendar days to revoke the Release after execution.  If Employee does not revoke the Release, Employee shall be eligible to “receive” the Pro Rata Bonus on the expiration of the Release revocation period, but such Pro Rata Bonus shall be deferred into the ESP II pursuant to Section 7 (Deferral into Executive Savings Plan II).
12.    Supplemental Restrictive Covenant Agreement.
In addition to satisfying the requirements of Section 3 (Retention Bonus and Performance Bonus), in order to be eligible for both the Retention Bonus and the Performance Bonus or a Pro Rata Bonus, Employee must comply with the terms and conditions of the Supplemental Restrictive Covenant Agreement, which is attached as Appendix B.  If Employee violates the terms and conditions of the Supplemental Restrictive Covenant Agreement, a total of $50,000 of the Retention Bonus, the Performance Bonus, and/or the Pro Rata Bonus not yet paid to Employee will be forfeited and will be deemed to compensate the Company for some, but not all, 

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of the damages sustained by the Company.  The parties acknowledge and agree that in the event Employee breaches the Supplemental Restrictive Covenant Agreement, the Company will sustain no less than $50,000 in damages.  The parties further acknowledge and agree that this $50,000 is not intended to be, and is not to be construed as, liquidated damages and that, if Employee breaches the Supplemental Restrictive Covenant Agreement, the Company will also suffer irreparable harm that can only be remedied by injunctive relief prohibiting Employee from engaging in activities that would continue to breach the Supplemental Restrictive Covenant Agreement.  The parties further acknowledge and agree that nothing herein is intended to restrict or otherwise modify the Company’s right to seek injunctive relief and/or additional monetary damages for a violation of the Supplemental Restrictive Covenant Agreement.
13.    Clawback.
The Retention Bonus and the Performance Bonus are subject to potential forfeiture or “clawback” to the fullest extent called for by applicable federal or state law or Company policy.  The Employee hereby agrees to return the full amount required by applicable law or Company policy.
14.    Binding Nature of Agreement.
This Agreement will be binding upon and inure to the benefit of Employee and Company, but neither this Agreement nor any rights arising hereunder may be assigned or pledged by Employee.
15.    Severability.
If any provision of this Agreement as applied to either party or to any circumstances is adjudged by a court of competent jurisdiction to be void or unenforceable for any reason, the same will in no way affect any other provision of this Agreement or the validity or enforceability of this Agreement.
16.    Amendment or Waiver.
No provision of this Agreement may be modified, waived or discharged unless such modification, waiver or discharge is agreed to in a writing signed by Employee and an authorized officer of Company.  No waiver by either party hereto at any time of any breach by the other party hereto of any condition or provision of this Agreement to be performed by such other party will be deemed a waiver of any other condition or provision at any time.
17.    Governing Law.
This Agreement will be governed in all respects, whether as to validity, construction, capacity, performance, or otherwise, by the laws of the State of New Mexico.
18.    Entire Agreement.
This Agreement embodies the entire agreement of the Parties respecting the payment of a Retention Bonus and a Performance Bonus to Employee, and the other terms expressly set forth in this Agreement.

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19.    Further Assurances.
Each party agrees to cooperate fully with the other party and to execute such further instruments, documents and agreements, and to give such further written assurances, as may be reasonably requested by the other party to evidence and reflect the transactions described herein and contemplated hereby and to carry into effect the intent and purposes of this Agreement.
20.    Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.
21.    Dispute Resolution.
Any dispute over this Agreement must first be submitted in writing to the Vice President, Human Resources of the Company, within ten (10) days of the Employee becoming aware of the dispute.  The Vice President, Human Resources will issue a written decision on the dispute within ten (10) days of receipt.  If the Employee disagrees with the decision, the Employee may appeal to the PNM Resources, Inc. Benefits Governance Committee within ten (10) days of receipt of the decision.  The Benefits Governance Committee will issue its decision on the appeal within ten (10) business days of receipt of the appeal.  The decision of the PNM Resources, Inc. Benefits Governance Committee shall be final and binding on all parties to this Agreement.
22.    Section 409A Compliance.
(a)    Ban on Acceleration or Deferral.  Under no circumstances may the time or schedule of any payment made or benefit provided pursuant to this Agreement be accelerated or subject to a further deferral except as otherwise permitted or required pursuant to regulations and other guidance issued pursuant to Section 409A of the Code.
(b)    No Elections.  Employee does not have any right to make any election regarding the time or form of any payment due under this Agreement other than the elections made in Section 7 (Deferral into Executive Savings Plan II), which elections are irrevocable.
(c)    Compliant Operation and Interpretation.  This Agreement shall be administered in accordance with Section 409A or an exception thereto, and each provision of this Agreement shall be interpreted, to the extent possible, to comply with Section 409A or to qualify for an exception thereto.  Although this Agreement has been designed to comply with Section 409A or to fit within an exception to the requirements of Section 409A of the Code, the Company specifically does not warrant such compliance.  Employee remains solely responsible for any adverse tax consequences imposed upon him by Section 409A.

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IN WITNESS WHEREOF, the Company and Employee have caused this Agreement to be executed as of the date set forth below.
PNMR SERVICES COMPANY
By:    /s/ CN Eldred    
     Its:  Chief Financial Officer and Executive VP
            12-9-2014    
Date
  Thomas G. Sategna    
Employee’s Name (printed)
  /s/ Tom Sategna    
Employee’s Signature
            12/9/2014    
Date

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Appendix A
	
	
	Performance Deliverable

	1.   Mentor named VP and Corporate Controller throughout Retention period and provide guidance as needed.

	2.   Review and discuss monthly financial statements with named VP and Corporate Controller, including variance analysis and write-up for CEO and CFO on results of operation.

	3.   Review quarterly results and attend quarterly variance meetings for income statement and balance sheet reviews in preparation for filing 1st, 2nd and 3rd quarter 10-Q filings with the SEC.

	4.   Attend quarterly due diligence meetings in connection with 1st, 2nd, and 3rd quarter 10-Q filings.

	5.   Review and provide comments to the 1st, 2nd, and 3rd quarter 10-Q filings.

	6.   Work on year-end reporting issues/requirements with named VP and Corporate Controller in anticipation of 2015 year-end close and filing of the 2015 10-K.

	7.   Leverage regulatory experience in assisting with any of PNM’s regulatory filings, including reviewing testimony, participating in strategic decisions for filings, etc.

	8.   Leverage staff and intervener relationships regarding settlements of any regulatory proceedings before the NMPRC, as requested.

	9.   Work on special assignments from CFO as requested.

	10.   Attend and participate in VP and all officer meetings as appropriate.

	11.   Other duties as requested.

The Chief Financial Officer has the full discretion and authority to determine if each Performance Deliverable has been met by Employee.  The Chief Financial Officer has the full discretion to increase or reduce the Performance Bonus based on the level of attainment of the Performance Deliverables, within the parameters described in Section 3 (Retention Bonus and Performance Bonus) of the Agreement.  

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Appendix B
SUPPLEMENTAL RESTRICTIVE COVENANT AGREEMENT
This Supplemental Restrictive Covenant Agreement (this “Agreement”), is entered into effective as of January 1, 2015 by and between PNMR Services Company (the “Company”) and Thomas G. Sategna (“Employee”).
RECITALS
In exchange for the Performance Bonus and the Retention Bonus or a Pro Rata Bonus described in the attached Agreement and other good and valuable consideration, the sufficiency of which is hereby acknowledged, Employee understands and agrees to the terms set forth in this Agreement.
The purpose of this Agreement is to supplement the existing Restrictive Covenant Agreement dated May 15, 2012.  
AGREEMENT
NOW, THEREFORE, Company and Employee agree as follows:
1.NON-COMPETITION.  Employee agrees that for the duration of the “Restricted Period” (as defined below) Employee will not, without the prior written consent of Company:  (1) engage in a “Competing Business” (as defined below) in the “Restricted Territory” (as defined below).  
For purposes of this Agreement, Employee shall be deemed to be engaged in a Competing Business if, in any capacity, including but not limited to, proprietor, shareholder, partner, officer, lender, guarantor of debts or obligations, director, employee, or agent, Employee engages or participates directly or indirectly in the operation, ownership or management of any proprietorship, partnership, corporation, limited liability company, or other business entity that engages in any Competing Business within the Restricted Territory.  A “Competing Business” is any person or entity that has negotiated or will negotiate with PNM Resources, Inc. (“PNMR”), or otherwise has engaged or will engage in efforts, to acquire all or part of PNMR or any of its Affiliates, including but not limited to acquisition through the purchase of stock, assets, or any other type of direct or indirect acquisition of PNMR or any of its Affiliates, whether or not such acquisition is successful.  
2.RESTRICTED TERRITORY DEFINED.  For purposes of Section 1, Section 2, and Section 3 (collectively, the “Restrictive Covenants”), the term “Restricted Territory” shall mean the continent of North America.
3.RESTRICTED PERIOD DEFINED.  For purposes of the Restrictive Covenants, the term “Restricted Period” shall mean the period during Employee’s employment with the Company and continuing for the 24-month period following the termination of such employment.  In the event that a court of competent jurisdiction determines that the Restricted Period described in the preceding sentence is excessive, the parties agree that the Restricted 

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Period shall mean the period during Employee’s employment with the Company and continuing for the 18-month period following the termination of such employment.  In the event that a court of competent jurisdiction determines that the Restricted Period as modified in the preceding sentence is still excessive, the parties agree that the Restricted Period shall mean the period during Employee’s employment with the Company and continuing for the 12-month period following the termination of such employment.
4.REMEDIES; REASONABLENESS.  Employee acknowledges and agrees that a breach by Employee of the Restrictive Covenants of this Agreement will constitute irreparable damage to Company, the exact amount of which will be impossible to ascertain and, for that reason, agrees that Company will be entitled to an injunction to be issued by any court of competent jurisdiction restraining and enjoining Employee from violating the provisions of the Restrictive Covenants.  If Employee violates the terms and conditions of this Agreement, a total of $50,000 of the Retention Bonus, the Performance Bonus, and/or the Pro Rata Bonus (pursuant to the Employee Retention Agreement) not yet paid to Employee will be forfeited and will be deemed to compensate the Company for some, but not all, of the damages sustained by the Company.  The parties acknowledge and agree that in the event Employee breaches this Agreement, the Company will sustain no less than $50,000 in damages.  The parties further acknowledge and agree that this $50,000 is not intended to be, and is not to be construed as, liquidated damages and that, if Employee breaches this Agreement, the Company will also suffer irreparable harm that can only be remedied by injunctive relief prohibiting Employee from engaging in activities that would continue to breach this Agreement.  The parties further acknowledge and agree that nothing herein is intended to restrict or otherwise modify the Company’s right to seek injunctive relief and/or additional monetary damages for a violation of this Agreement.
Employee expressly acknowledges and agrees that: (1) the provisions of the Restrictive Covenants contained herein are reasonable as to time and geographical area and do not place an unreasonable burden upon Employee, (2) Employee will be able to continue earning a livelihood while still complying with the Restrictive Covenants, (3) the public will not be harmed as a result of enforcement of these Restrictive Covenants, and (4) Employee understands and hereby agrees to each and every term and condition of the Restrictive Covenants set forth in this Agreement.
5.CONFIDENTIAL INFORMATION.
(a)Proprietary Information.  Employee and Company hereby acknowledge and agree that in connection with the performance of Employee’s services, Employee shall be provided with or shall otherwise be exposed to or receive certain proprietary information of Company.  Such proprietary information shall include, without limitation, any written, oral, electronic or any other form of information including the following:  (1) past, present and future customer lists, consultant lists, and customer information as compiled by Company, including proposals for services, pricing, customer contact information, customer lists, sale and contract terms and conditions, contract expirations, and other compiled customer information; (2) Company’s own internal practices, procedures, and strategies; (3) Company’s financial condition and financial results of operation; (4) credit information and technical environments concerning Company or Company’s clients; (5) supply of material information, including sources and costs; (6) information in any form relating to Trade Secrets (as defined below), Intellectual Property (as defined below), confidential information, ideas, designs, products, descriptions, parts, test data, reports, recommendations, the Company’s research 

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and development, strategic planning, finance, marketing, and promotional activities and strategies, whether now existing, or planned, developed, or made available anytime in the future to the Company; (7) acquisition plans and other strategic plans; (8) all information which is designated as confidential, which the Employee has a reasonable basis to consider confidential or which is treated by the Company as confidential, including confidential or proprietary information from third parties, Company Customers, or Company Vendors; and (9) any and all information that has independent economic value to the Company, that is not generally known to and not readily ascertainable by proper means by an individual or entity who can obtain economic value from its disclosure or use (all of the foregoing shall be deemed “Proprietary Information” for purposes of this Agreement).  The term “Proprietary Information” does not include information which (1) becomes generally available to the public other than as a result of a disclosure by Employee contrary to the terms of this Agreement, (2) was available on a non-confidential basis prior to its disclosure, or (3) becomes available on a non-confidential basis from a source other than Employee, provided that such source is not contractually obligated to keep such information confidential.  Employee hereby agrees that, without the prior written consent of Company, any and all Proprietary Information shall be and shall forever remain the property of Company, and that during and after the Employee’s employment with Company, Employee shall not in any way disclose or reveal the Proprietary Information other than to Company’s Employees, officers and other employees and agents in the normal course of Employee’s employment, or as required pursuant to an order issued by a court of competent jurisdiction or other governmental agency.
(b)Trade Secrets.  Employee, prior to and during this Agreement, has had and will have access to and become acquainted with various trade secrets which are owned by Company and are regularly used in the operation of its business and which may give Company an opportunity to obtain an advantage over competitors who do not know or use such trade secrets.  Employee agrees and acknowledges that Employee has been granted access to these valuable trade secrets only by virtue of the confidential relationship created by Employee’s employment with Company.  Employee shall not disclose any of the aforesaid trade secrets, directly or indirectly, or use them in any way, either during the Employee’s employment with Company or at any time thereafter, except as required in the course of employment by Company and for its benefit, or as required pursuant to an order issued by a court of competent jurisdiction or other governmental agency.
(c)Intellectual Property.  “Intellectual Property” shall include inventions (whether or not patentable), patents, copyrights, trademarks (together with the good will of the business symbolized by said trademarks), domain names, trade secrets, rights of publicity, database rights, works of authorship, mask works, moral rights, designs, discoveries, know-how, show-how, ideas and information made or conceived or reduced to practice and all related or other intellectual and industrial property rights of any sort throughout the world, including all improvements and/or derivative works growing out of or relating to the foregoing, in whole or in part, conceived, created, developed, discovered or reduced to practice during the term of employment with Company and, to the extent allowed by law, during the Restricted Period, so far as it (1) relates, directly or indirectly, to Company’s Business, (2) results from or are suggested by any work assigned to or performed by Employee for Company, or (3) is used to develop or improve any Company equipment, supplies, facility, product, software, service, or trade secret, whether or not such Intellectual Property is developed entirely on Employee’s own time and with or without use of Company property.

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Employee acknowledges and agrees that all Intellectual Property, whether the same is derived from the use of Proprietary Information or otherwise developed or conceived of by Employee, shall be and shall remain the exclusive property of Company.  Employee further agrees that for a period of 12 months after the employment period, there shall be an irrebuttable presumption that all Intellectual Property that relates to services rendered hereunder developed, formulated, created, or conceived by Employee were derived from the use of Proprietary Information or were otherwise developed, formulated, created, or conceived of by Employee during the Employee’s employment with Company, and, as such, the same shall be and shall remain the exclusive property of Company.  Employee shall promptly disclose to Company all written and graphic materials, computer software, inventions, discoveries and improvements authored, prepared, conceived or made by, for or at the direction of Employee during the Employee’s employment with Company and which are related to the Intellectual Property or the business of Company, and shall execute all such documents and instruments, including but not limited to any assignments and invention disclosure documents, as Company may reasonably determine are necessary or desirable in order to give effect to the preceding sentence or to preserve, protect or enforce Company’s rights with respect to any such work and any Intellectual Property therein.
(d)Ownership of Documents.  Company shall own all papers, records, books, drawings, documents, manuals, and anything of a similar nature (collectively, the “Documents”) prepared by Employee in connection with the Employee’s employment.  The Documents shall be the property of Company and are not to be used on other projects except upon Company’s prior written consent.  Upon termination of the Employee’s employment, or as may be requested earlier by the Company, Employee shall surrender to Company any and all Documents or other property of whatsoever kind now or hereafter in Employee’s possession, custody, or control which contain or reflect in any manner whatsoever Proprietary Information or information which in any way relates to Company’s business.
6.GENERAL PROVISIONS.
(a)    No Conflicting Agreements.  Employee acknowledges that he has no commitments or obligations inconsistent with this Agreement and hereby agrees to indemnify and hold the Company harmless against any and all loss, damage, liability, or expense arising from any claim based upon circumstances alleged to be inconsistent with such acknowledgement.
(b)    Severability.  In the event that a court of competent jurisdiction determines that any portion of this Agreement is in violation of any statute or public policy, then only the portions of this Agreement which violate such statute or public policy shall be stricken.  All portions of this Agreement which do not violate any statute or public policy shall continue in full force and effect.  Further, any court order striking any portion of this Agreement shall modify the stricken terms to give as much effect as possible to the intentions of the parties under this Agreement.
(c)    At-Will Employment.  Nothing herein shall affect the “at-will” nature of Employee’s relationship with Company.  As such, Employee may leave the Employee’s employment with Company at any time with or without notice or cause.  In addition, Employee’s employment may be terminated by Company at any time with or without notice or cause.

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(d)    Governing Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of New Mexico.
(e)    Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.
(f)    Survival of Terms.  The terms and conditions set forth in this Agreement shall survive this Agreement and continue to be binding upon Employee after the expiration or termination of this Agreement, whether by passage of time or otherwise.
(g)    Entire Agreement.  This Agreement embodies the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof.  No statement, representation, warranty, covenant or agreement of any kind not expressly set forth in this Agreement shall affect, or be used to interpret, change or restrict, the express terms and provisions of the Agreement.
(h)    Interpretative Matters.  No provision of this Agreement will be interpreted in favor of, or against, any of the parties hereto by reason of the extent to which any such party or its counsel participated in the drafting thereof or by reason of the extent to which any such provision is inconsistent with any prior draft hereof or thereof.
7.“COMPANY” INCLUDES AFFILIATES.  For purposes of this Agreement, the term “Company” shall mean PNM Resources, Inc. and any Affiliate of PNM Resources, Inc.  The term “Affiliate” shall be given the meaning ascribed to it in the PNM Resources, Inc. Executive Savings Plan II.
8.IMPACT ON PRIOR AGREEMENT.  Employee previously executed a Restrictive Covenant Agreement dated May 15, 2012.  This Agreement supplements and does not supersede the terms of the Restrictive Covenant Agreement dated May 15, 2012.
IN WITNESS WHEREOF, the parties have executed and sealed this Supplemental Restrictive Covenant Agreement to be signed by its duly authorized representative and Employee as of the   9th   day of    December            , 2014.
PNMR SERVICES COMPANY
By   /s/ CN Eldred                    
  Its: CFO and Executive Vice President
EMPLOYEE
Signature    /s/ Tom Sategna                
 Thomas G. Sategna                    
Printed Name

B-5Amended and Restated Commercial Paper Dealer Agreement

 Exhibit 10.27 

Amended and Restated 
 Commercial
Paper Dealer Agreement 
 4(a)(2) Program 

Between: 
 BlackRock, Inc.,
as Issuer  
 and 

Barclays Capital Inc., as Dealer 

Concerning Notes to be issued pursuant to an Issuing and Paying Agency Agreement dated as of December 23, 2014 between the Issuer and
Citibank, N.A., as Issuing and Paying Agent. 
 Dated as of December 23, 2014 

 This agreement (as amended, supplemented or otherwise modified and in effect from time to time, this
“Agreement”), which amends and restates the Commercial Paper Dealer Agreement, dated as of October 14, 2009, sets forth the understandings between the Issuer and the Dealer, each named on the cover page hereof, in connection with the
issuance and sale by the Issuer of its short-term promissory notes in substantially the form of Exhibit D hereto (the “Notes”) through the Dealer. 

Certain terms used in this Agreement are defined in Section 6 hereof. 

The Addendum to this Agreement, and any Annexes or Exhibits described in this Agreement or such Addendum, are hereby incorporated into this Agreement and made
fully a part hereof. 
  

	1.	Offers, Sales and Resales of Notes. 

  

	 	1.1	While (i) the Issuer has and shall have no obligation to sell the Notes to the Dealer or to permit the Dealer to arrange any sale of the Notes for the account of the Issuer, and (ii) the Dealer has and shall
have no obligation to purchase the Notes from the Issuer or to arrange any sale of the Notes for the account of the Issuer, the parties hereto agree that in any case where the Dealer purchases Notes from the Issuer, or arranges for the sale of Notes
by the Issuer, such Notes will be purchased or sold by the Dealer in reliance on the representations, warranties, covenants and agreements of the Issuer contained herein or made pursuant hereto and on the terms and conditions and in the manner
provided herein. 

  

	 	1.2	So long as this Agreement shall remain in effect, and in addition to the limitations contained in Section 1.7 hereof, the Issuer shall not, without the consent of the Dealer, offer, solicit or accept offers to
purchase, or sell, any Notes except (a) in transactions with one or more dealers which may from time to time after the date hereof become dealers with respect to the Notes by executing with the Issuer one or more agreements which contain
provisions substantially identical to those contained in Section 1 of this Agreement, of which the Issuer hereby undertakes to provide the Dealer prompt notice or (b) in transactions with the other dealers listed on the Addendum hereto,
which are executing agreements with the Issuer which contain provisions substantially identical to Section 1 of this Agreement contemporaneously herewith. In no event shall the Issuer offer, solicit or accept offers to purchase, or sell, any
Notes directly on its own behalf in transactions with persons other than broker-dealers as specifically permitted in this Section 1.2. 

  

	 	1.3	The Notes shall be in a minimum denomination of $250,000 or integral multiples of $1,000 in excess thereof, will bear such interest rates, if interest bearing, or will be sold at such discount from their face amounts,
as shall be agreed upon by the Dealer and the Issuer, shall have a maturity not exceeding 397 days from the date of issuance and may have such terms as are specified in Exhibit C hereto or the Private Placement Memorandum, a pricing supplement or as
otherwise agreed upon by the applicable purchaser and the Issuer. The Notes shall not contain any provision for extension, renewal or automatic “rollover.” 

  
 1 

	 	1.4	The authentication and issuance of, and payment for, the Notes shall be effected in accordance with the Issuing and Paying Agency Agreement, and the Notes shall be either individual physical certificates or book-entry
notes evidenced by one or more master notes (each, a “Master Note”) registered in the name of The Depository Trust Company (“DTC”) or its nominee, in the form or forms annexed hereto as Exhibit D. 

 

	 	1.5	If the Issuer and the Dealer shall agree on the terms of the purchase of any Note by the Dealer or the sale of any Note arranged by the Dealer (including, but not limited to, agreement with respect to the date of issue,
purchase price, principal amount, maturity and interest rate or interest rate index and margin (in the case of interest-bearing Notes) or discount thereof (in the case of Notes issued on a discount basis), and appropriate compensation for the
Dealer’s services hereunder) pursuant to this Agreement, the Issuer shall cause such Note to be issued and delivered in accordance with the terms of the Issuing and Paying Agency Agreement and payment for such Note shall be made by the
purchaser thereof, either directly or through the Dealer, to the Issuing and Paying Agent, for the account of the Issuer. Except as otherwise agreed, in the event that the Dealer is acting as an agent and a purchaser shall either fail to accept
delivery of or make payment for a Note on the date fixed for settlement, the Dealer shall promptly notify the Issuer, and if the Dealer has theretofore paid the Issuer for the Note, the Issuer will promptly return such funds to the Dealer against
its return of the Note to the Issuer, in the case of a certificated Note, and upon notice of such failure in the case of a book-entry Note. If such failure occurred for any reason other than default by the Dealer, the Issuer shall reimburse the
Dealer on an equitable basis for the Dealer’s loss of the use of such funds for the period such funds were credited to the Issuer’s account. 

  

	 	1.6	The Dealer and the Issuer hereby establish and agree to observe the following procedures in connection with offers, sales and subsequent resales or other transfers of the Notes: 

 

	 	(a)	Offers and sales of the Notes by or through the Dealer shall be made only to: (i) investors reasonably believed by the Dealer to be Qualified Institutional Buyers or Institutional Accredited Investors and
(ii) non-bank fiduciaries or agents that will be purchasing Notes for one or more accounts, each of which is reasonably believed by the Dealer to be an Institutional Accredited Investor. 

 

	 	(b)	Resales and other transfers of the Notes by the holders thereof shall be made only in accordance with the restrictions in the legend described in clause (e) below. 

 

	 	(c)	No general solicitation or general advertising shall be used in connection with the offering of the Notes. Without limiting the generality of the foregoing, without the prior written approval of the Dealer (which shall
not be unreasonably withheld or delayed), the Issuer shall not issue any press release or place or publish any “tombstone” or other advertisement relating to the Notes. 

  
 2 

	 	(d)	No sale of Notes to any one purchaser shall be for less than $250,000 principal or face amount, and no Note shall be issued in a smaller principal or face amount. If the purchaser is a non-bank fiduciary acting on
behalf of others, each person for whom such purchaser is acting must purchase at least $250,000 principal or face amount of Notes. 

  

	 	(e)	Offers and sales of the Notes shall be subject to the restrictions described in the legend appearing on Exhibit A hereto. A legend substantially to the effect of such Exhibit A shall appear as part of the Private
Placement Memorandum used in connection with offers and sales of Notes hereunder, as well as on each individual certificate representing a Note and each Master Note representing book-entry Notes offered and sold pursuant to this Agreement.

  

	 	(f)	To insure that potential purchasers of Notes have received the then-current Private Placement Memorandum prior to purchasing Notes, the Dealer shall furnish or shall have furnished to each purchaser of Notes for which
it has acted as the Dealer a copy of the then-current Private Placement Memorandum unless such purchaser has previously received a copy of the Private Placement Memorandum as then in effect. The Private Placement Memorandum shall expressly state
that any person to whom Notes are offered shall have an opportunity to ask questions of, and receive information from, the Issuer and the Dealer and shall provide the names, addresses and telephone numbers of the persons from whom information
regarding the Issuer may be obtained. 

  

	 	(g)	The Issuer agrees, for the benefit of the Dealer and each of the holders and prospective purchasers from time to time of the Notes that, if at any time the Issuer shall not be subject to Section 13 or 15(d) of the
Exchange Act, the Issuer will furnish, upon request and at its expense, to the Dealer and to holders and prospective purchasers of Notes information required by Rule 144A(d)(4)(i) in compliance with Rule 144A(d). 

 

	 	(h)	In the event that any Note offered or to be offered by the Dealer would be ineligible for resale under Rule 144A, the Issuer shall immediately notify the Dealer (by telephone, confirmed in writing) of such fact and
shall promptly prepare and deliver to the Dealer an amendment or supplement to the Private Placement Memorandum describing the Notes that are ineligible, the reason for such ineligibility and any other relevant information relating thereto.

  

	 	(i)	The Issuer represents that it is not currently issuing commercial paper in the United States market in reliance upon the exemption provided by Section 3(a)(3) of the Securities Act. The Issuer agrees that, if it
shall issue commercial paper after the date hereof in reliance upon such exemption (a) the proceeds from the sale of the Notes will be segregated from the proceeds of the sale of any such commercial paper by being placed in a separate account;
(b) the Issuer will institute appropriate corporate procedures to ensure that the offers and sales of notes issued by the Issuer pursuant to the Section 3(a)(3) exemption are not integrated with offerings and sales of Notes hereunder; and
(c) the Issuer will comply with each of the requirements of Section 3(a)(3) of the Securities Act in selling commercial paper or other short-term debt securities other than the Notes in the United States. 

  
 3 

	 	1.7	The Issuer hereby represents and warrants to the Dealer, in connection with offers, sales and resales of Notes by the Issuer, as follows: 

 

	 	(a)	The Issuer hereby confirms to the Dealer that (except as permitted by Section 1.6(i)) within the preceding six months neither the Issuer nor any person other than the Dealer or the other dealers referred to in
Section 1.2 hereof acting on behalf of the Issuer has offered or sold any Notes, or any substantially similar security of the Issuer (including, without limitation, medium-term notes issued by the Issuer), to, or solicited offers to buy any
such security from, any person other than the Dealer or the other dealers referred to in Section 1.2 hereof. The Issuer also agrees that (except as permitted by Section 1.6(i)), as long as the Notes are being offered for sale by the Dealer
and the other dealers referred to in Section 1.2 hereof as contemplated hereby and until at least six months after the offer of Notes hereunder has been terminated, neither the Issuer nor any person other than the Dealer or the other dealers
referred to in Section 1.2 hereof (except as contemplated by Section 1.2 hereof) will offer the Notes or any substantially similar security of the Issuer for sale to, or solicit offers to buy any such security from, any person other than
the Dealer or the other dealers referred to in Section 1.2 hereof, it being understood that such agreement is made with a view to bringing the offer and sale of the Notes within the exemption provided by Section 4(a)(2) of the Securities
Act and shall survive any termination of this Agreement. The Issuer hereby represents and warrants that it has not taken or omitted to take, and will not take or omit to take, any action that would cause the offering and sale of Notes hereunder to
be integrated with any other offering of securities, whether such offering is made by the Issuer or some other party or parties. 

  

	 	(b)	The Issuer represents and agrees that the proceeds of the sale of the Notes are not currently contemplated to be used for the purpose of buying, carrying or trading securities within the meaning of Regulation T and the
interpretations thereunder by the Board of Governors of the Federal Reserve System. In the event that the Issuer determines to use such proceeds for the purpose of buying, carrying or trading securities, whether in connection with an acquisition of
another company or otherwise, the Issuer shall give the Dealer at least five business days’ prior written notice to that effect. The Issuer shall also give the Dealer prompt notice of the actual date that it commences to purchase securities
with the proceeds of the Notes. Thereafter, in the event that the Dealer purchases Notes as principal and does not resell such Notes on the day of such purchase, to the extent necessary to comply with Regulation T and the interpretations thereunder,
the Dealer will sell such Notes either (i) only to offerees it reasonably believes to be Qualified Institutional Buyers or to Qualified Institutional Buyers it reasonably believes are acting for other Qualified Institutional Buyers, in each
case in accordance with Rule 144A or (ii) in a manner which would not cause a violation of Regulation T and the interpretations thereunder. 

  
 4 

	2.	Representations and Warranties of Issuer. 

 The Issuer represents and warrants that: 

 

	 	2.1	The Issuer is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, has the power and authority to own its properties and to carry on its business as
now being and hereafter proposed to be conducted and is duly qualified and authorized to do business in each jurisdiction in which the character of its properties or the nature of its business requires such qualification and authorization, except
where the failure to be so qualified or in good standing could not be reasonably expected to result in a Material Adverse Effect. The Issuer has all the requisite power and authority to execute, deliver and perform its obligations under the Notes,
this Agreement and the Issuing and Paying Agency Agreement. 

  

	 	2.2	This Agreement and the Issuing and Paying Agency Agreement have been duly authorized, executed and delivered by the Issuer and constitute legal, valid and binding obligations of the Issuer enforceable against the Issuer
in accordance with their terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar state or federal debtor relief laws from time to time in effect which affect the enforcement of
creditors’ rights in general and the availability of equitable remedies (regardless of whether enforcement is sought in a proceeding in equity or at law). 

  

	 	2.3	The Notes have been duly authorized, and when issued as provided in the Issuing and Paying Agency Agreement, will be duly and validly issued and will constitute legal, valid and binding obligations of the Issuer
enforceable against the Issuer in accordance with their terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar state or federal debtor relief laws from time to time in effect which affect
the enforcement of creditors’ rights in general and the availability of equitable remedies (regardless of whether enforcement is sought in a proceeding in equity or at law). 

 

	 	2.4	The offer and sale of the Notes by the Issuer in the manner contemplated hereby do not require registration of the Notes under the Securities Act, pursuant to the exemption from registration contained in
Section 4(a)(2) thereof, and no indenture in respect of the Notes is required to be qualified under the Trust Indenture Act of 1939, as amended. 

  

	 	2.5	The Notes will rank at least pari passu with all other unsecured and unsubordinated indebtedness of the Issuer. 

 

	 	2.6	No consent or action of, or filing or registration with, any governmental or public regulatory body or authority, including the SEC, is required to authorize, or is otherwise required in connection with the execution,
delivery or performance of, this Agreement, the Notes or the Issuing and Paying Agency Agreement, except as may be required by the securities or Blue Sky laws of the various states in connection with the offer and sale of the Notes.

  
 5 

	 	2.7	The execution, delivery and performance by the Issuer of this Agreement and the Issuing and Paying Agency Agreement, and the issuance of the Notes in accordance with the Issuing and Paying Agency Agreement, each in
accordance with its respective terms, and the transactions contemplated hereby and thereby do not and will not, by the passage of time, the giving of notice or otherwise, (i) require any Governmental Approval relating to the Issuer where the
failure to obtain such Governmental Approval could reasonably be expected to have a Material Adverse Effect, (ii) violate any Applicable Law relating to the Issuer except where such violation could not reasonably be expected to have a Material
Adverse Effect, (iii) conflict with, result in a breach of or constitute a default under the articles of incorporation or bylaws of the Issuer, (iv) conflict with, result in a breach of or constitute a default under any indenture,
agreement or other instrument to which the Issuer is a party or by which any of its properties may be bound or any Governmental Approval relating to the Issuer, which could reasonably be expected to have a Material Adverse Effect, (v) result in
or require the creation or imposition of any Lien upon or with respect to any property now owned or hereafter acquired by the Issuer or (vi) require any consent or authorization of, filing with, or other act in respect of, an arbitrator or
Governmental Authority and no consent of any other Person is required in connection with the execution, delivery, performance, validity or enforceability of this Agreement, the Notes or the Issuing and Paying Agency Agreement other than consents,
authorizations, filings or other acts or consents which have been obtained or made and are in full force and effect or for which the failure to obtain or make could not reasonably be expected to have a Material Adverse Effect. 

 

	 	2.8	Except for matters disclosed in any filings made by the Issuer with the SEC, there are no actions, suits or proceedings pending nor, to the knowledge of the Issuer, threatened against or in any other way relating
adversely to or affecting the Issuer or any of its properties in any court or before any arbitrator of any kind or before or by any Governmental Authority that has had or could reasonably be expected to have a Material Adverse Effect.

  

	 	2.9	The Issuer is not an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 

  

	 	2.10	Neither the Private Placement Memorandum nor the Company Information contains any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading. 

  

	 	2.11	 Each (a) issuance of Notes by the Issuer hereunder and (b) amendment or supplement of the Private Placement Memorandum shall be deemed a
representation and warranty by the Issuer to the Dealer, as of the date thereof, that, both before and after giving effect to such issuance and after giving effect to such amendment or supplement, (i) the representations and warranties given by
the Issuer set forth in this Section 2 remain true and correct on and as of such date as if made on and as of such date, (ii) in the case of an issuance of Notes, the Notes being issued on such date have been duly and validly issued and
constitute legal, valid and binding obligations of the Issuer, enforceable against the Issuer in 

  
 6 

	 	
accordance with their terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar state or federal debtor relief laws from time to time in
effect which affect the enforcement of creditors’ rights in general and the availability of equitable remedies (regardless of whether enforcement is sought in a proceeding in equity or at law), (iii) in the case of an issuance of Notes,
since the date of the most recent Private Placement Memorandum, there has been no material adverse change in the financial condition or operations of the Issuer which, if not publicly available, has not been disclosed to the Dealer in writing and
(iv) the Issuer is not in default under any of its obligations hereunder, under the Issuing and Paying Agency Agreement or the Notes that is reasonably likely to result in a Material Adverse Effect. 

 

	3.	Covenants and Agreements of Issuer. 

 The Issuer covenants and agrees that: 

 

	 	3.1	The Issuer will give the Dealer prompt notice (but in any event prior to any subsequent issuance of Notes hereunder) of any amendment to, modification of or waiver with respect to, the Notes or the Issuing and Paying
Agency Agreement, including a complete copy of any such amendment, modification or waiver. 

  

	 	3.2	The Issuer shall, whenever there shall occur any change, development or occurrence in relation to the Issuer that would have a Material Adverse Effect (including any receipt by the Issuer, from any nationally recognized
statistical rating organization that has provided a rating to the Notes, of any notice of a downgrading in such rating that is publicly available), promptly, and in any event prior to any subsequent issuance of Notes hereunder, notify the Dealer (by
telephone, confirmed in writing) of such change, development or occurrence. 

  

	 	3.3	The Issuer shall from time to time furnish to the Dealer such non-public information as the Dealer may reasonably request, regarding (i) the Issuer’s operations and financial condition, (ii) the due
authorization and execution of the Notes and (iii) the Issuer’s ability to pay the Notes as they mature; provided that the disclosure of such information shall not be reasonably likely to cause the Issuer to be in violation of any
Applicable Law or otherwise violate the terms of any confidentiality agreement to which the Issuer is subject. 

  

	 	3.4	The Issuer will take all such action as the Dealer may reasonably request to ensure that each offer and each sale of the Notes will comply with any applicable state Blue Sky laws; provided, however, that the Issuer
shall not be obligated to file any general consent to service of process or to qualify as a foreign corporation in any jurisdiction in which it is not so qualified or subject itself to taxation in respect of doing business in any jurisdiction in
which it is not otherwise so subject. 

  

	 	3.5	The Issuer will not be in default of any of its obligations hereunder, under the Notes or under the Issuing and Paying Agency Agreement, at any time that any of the Notes are outstanding. 

 

	 	3.6	 The Issuer shall not issue Notes hereunder until the Dealer shall have received (a) one or more opinions of counsel to the Issuer, addressed to
the Dealer, 

  
 7 

	 	
satisfactory in form and substance to the Dealer, (b) a copy of the executed Issuing and Paying Agency Agreement as then in effect, (c) a copy of resolutions adopted by the Board of
Directors of the Issuer, satisfactory in form and substance to the Dealer and certified by the Secretary or similar officer of the Issuer, authorizing execution and delivery by the Issuer of this Agreement, the Issuing and Paying Agency Agreement
and the Notes and consummation by the Issuer of the transactions contemplated hereby and thereby, (d) prior to the issuance of any book-entry Notes represented by a master note registered in the name of DTC or its nominee, a copy of the
executed Letter of Representations among the Issuer, the Issuing and Paying Agent and DTC and of the executed master note, (e) prior to the issuance of any Notes in physical form, a copy of such form (unless attached to this Agreement or the
Issuing and Paying Agency Agreement), (f) confirmation of the then current ratings assigned to the Notes by each nationally recognized statistical rating organization then rating the Notes and (g) such other certificates, opinions, letters
and documents as the Dealer shall have reasonably requested. 

  

	 	3.7	The Issuer shall reimburse the Dealer for all of the Dealer’s reasonable out-of-pocket expenses related to this Agreement, including reasonable expenses incurred in connection with its preparation and negotiation,
and the transactions contemplated hereby (including, but not limited to, the printing and distribution of the Private Placement Memorandum), and, if applicable, for the reasonable fees and out-of-pocket expenses of the Dealer’s counsel.

  

	4.	Disclosure. 

  

					
	4.1	  	The Private Placement Memorandum and its contents (other than the Dealer Information) shall be the sole responsibility of the Issuer. The Private Placement Memorandum shall contain a statement expressly offering an
opportunity for each prospective purchaser to ask questions of, and receive answers from, the Issuer concerning the offering of Notes and to obtain relevant additional information which the Issuer possesses or can acquire without unreasonable effort
or expense.
		
	4.2	  	The Issuer agrees to promptly furnish the Dealer the Company Information as it becomes available.
			
	4.3	  	(a)	    	The Issuer further agrees to notify the Dealer promptly upon the occurrence of any event relating to or affecting the Issuer that would cause the Company Information then in existence to include an untrue statement of a material
fact or to omit to state a material fact necessary in order to make the statements contained therein, in light of the circumstances under which they are made, not misleading.
			
		  	(b)	    	In the event that the Issuer gives the Dealer notice pursuant to Section 4.3(a) and the Dealer notifies the Issuer that it then has Notes it is holding in inventory, (i) the Issuer agrees promptly to supplement or amend
the Private Placement Memorandum so that the Private Placement Memorandum, as amended or supplemented, shall not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in
light of the circumstances under which they were made, not

  
 8 

					
		  		    	misleading, and the Issuer shall make such supplement or amendment available to the Dealer prior to any further sale or resale of Notes or (ii) the Issuer shall repurchase any such Note held in inventory at a price equal to the
face amount thereof discounted on a ratable basis based on the Issuer’s market rate reflecting the remaining period to maturity in relation to the original term.
			
		  	(c)	    	In the event that (i) the Issuer gives the Dealer notice pursuant to Section 4.3(a), (ii) the Dealer does not notify the Issuer that it is then holding Notes in inventory and (iii) the Issuer chooses not to
promptly amend or supplement the Private Placement Memorandum in the manner described in clause (b) above, then all solicitations and sales of Notes shall be suspended until such time as the Issuer has so amended or supplemented the Private
Placement Memorandum, and made such amendment or supplement available to the Dealer.
			
		  	(d)	    	Without limiting the generality of Section 4.3(a), the Issuer shall review, amend and supplement the Private Placement Memorandum on a periodic basis, but no less than at least once annually, to incorporate current financial
information of the Issuer to the extent necessary to ensure that the information provided in the Private Placement Memorandum is accurate and complete.

  

	5.	Indemnification and Contribution. 

  

	 	5.1	The Issuer will indemnify and hold harmless the Dealer, each individual, corporation, partnership, trust, association or other entity controlling the Dealer, any affiliate of the Dealer or any such controlling entity
and their respective directors, officers, employees, partners, incorporators, shareholders, servants, trustees and agents (hereinafter the “Indemnitees”) against any and all liabilities, penalties, suits, causes of action, losses, damages,
claims, costs and expenses (including, without limitation, fees and disbursements of counsel) or judgments of whatever kind or nature (each a “Claim”), imposed upon, incurred by or asserted against the Indemnitees arising out of or based
upon (i) any allegation that the Private Placement Memorandum, the Company Information or any information provided by the Issuer to the Dealer included (as of any relevant time) or includes an untrue statement of a material fact or omitted (as
of any relevant time) or omits to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading or (ii) arising out of or based upon the breach by the Issuer of any
agreement, covenant or representation made in or pursuant to this Agreement. This indemnification shall not apply to the extent that the Claim arises out of or is based upon Dealer Information or is determined to have resulted from an
Indemnitee’s gross negligence or willful misconduct. 

  

	 	5.2	Provisions relating to claims made for indemnification under this Section 5 are set forth on Exhibit B to this Agreement. 

  

	 	5.3	 In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in this Section 5 is held to
be unavailable or insufficient to hold harmless the Indemnitees, although applicable in accordance with the terms of this Section 5, the Issuer shall contribute to the aggregate costs

  
 9 

	 	
incurred by the Dealer in connection with any Claim in the proportion of the respective economic interests of the Issuer and the Dealer; provided, however, that such contribution by the Issuer
shall be in an amount such that the aggregate costs incurred by the Dealer do not exceed the aggregate of the commissions and fees earned by the Dealer hereunder with respect to the issue or issues of Notes to which such Claim relates. The
respective economic interests shall be calculated by reference to the aggregate proceeds to the Issuer of the Notes issued hereunder and the aggregate commissions and fees earned by the Dealer hereunder. 

 

	6.	Definitions. 

  

	 	6.1	“Claim” shall have the meaning set forth in Section 5.1. 

  

	 	6.2	“Company Information” at any given time shall mean the Private Placement Memorandum and information incorporated by reference therein together with, to the extent applicable, (i) the Issuer’s most
recent report on Form 10-K filed with the SEC and each report on Form 10-Q or 8-K filed by the Issuer with the SEC since the most recent Form 10-K, (ii) the Issuer’s most recent annual audited financial statements and each interim
financial statement or report prepared subsequent thereto, if not included in item (i) above, (iii) the Issuer’s and its affiliates’ other publicly available recent reports, including, but not limited to, any publicly available
filings or reports provided to their respective shareholders, (iv) any other information or disclosure prepared pursuant to Section 4.3 hereof and (v) any information prepared or approved by the Issuer for dissemination to investors
or potential investors in the Notes. 

  

	 	6.3	“Dealer Information” shall mean material concerning the Dealer provided by the Dealer in writing expressly for inclusion in the Private Placement Memorandum. 

 

	 	6.4	“Exchange Act” shall mean the U.S. Securities Exchange Act of 1934, as amended. 

  

	 	6.5	“Governmental Approval” shall mean all authorizations, consents, approvals, permits, licenses and exemptions of, registrations and filings with, and reports to, all Governmental Authorities. 

 

	 	6.6	“Governmental Authority” shall mean the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union
or the European Central Bank). 

  

	 	6.7	“Indemnitee” shall have the meaning set forth in Section 5.1. 

  

	 	6.8	“Institutional Accredited Investor” shall mean an institutional investor that is an accredited investor within the meaning of Rule 501 under the Securities Act and that has such knowledge and experience in
financial and business matters that it is capable of evaluating and bearing the economic risk of an investment in the Notes, including, but not limited to, a bank, as defined in Section 3(a)(2) of the Securities Act, or a savings and loan
association or other institution, as defined in Section 3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary capacity. 

  
 10 

	 	6.9	“Issuing and Paying Agency Agreement” shall mean the issuing and paying agency agreement described on the cover page of this Agreement, as such agreement may be amended or supplemented from time to time.

  

	 	6.10	“Issuing and Paying Agent” shall mean the party designated as such on the cover page of this Agreement, as issuing and paying agent under the Issuing and Paying Agency Agreement, or any successor thereto in
accordance with the Issuing and Paying Agency Agreement. 

  

	 	6.11	“Material Adverse Effect” shall mean a material adverse effect on (a) the business, operations or financial condition of the Issuer and its subsidiaries taken as a whole or (b) the ability of the
Issuer to perform its obligations under this Agreement, the Notes and the Issuing and Paying Agency Agreement. 

  

	 	6.12	“Non-bank fiduciary or agent” shall mean a fiduciary or agent other than (a) a bank, as defined in Section 3(a)(2) of the Securities Act, or (b) a savings and loan association, as defined in
Section 3(a)(5)(A) of the Securities Act. 

  

	 	6.13	“Person” shall mean any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, governmental authority or other entity. 

 

	 	6.14	“Private Placement Memorandum” shall mean offering materials prepared in accordance with Section 4 (including materials referred to therein or incorporated by reference therein, if any) provided to
purchasers and prospective purchasers of the Notes, and shall include amendments and supplements thereto which may be prepared from time to time in accordance with this Agreement (other than any amendment or supplement that has been completely
superseded by a later amendment or supplement). 

  

	 	6.15	“Qualified Institutional Buyer” shall have the meaning assigned to that term in Rule 144A under the Securities Act. 

  

	 	6.16	“Rule 144A” shall mean Rule 144A under the Securities Act. 

  

	 	6.17	“SEC” shall mean the U.S. Securities and Exchange Commission. 

  

	 	6.18	“Securities Act” shall mean the U.S. Securities Act of 1933, as amended. 

  

	7.	General 

  

	 	7.1	Unless otherwise expressly provided herein, all notices under this Agreement to parties hereto shall be in writing and shall be effective when received at the address of the respective party set forth in the Addendum to
this Agreement. 

  

	 	7.2	This Agreement shall be governed by and construed in accordance with the laws of the State of New York. 

  

	 	7.3	 The Issuer agrees that any suit, action or proceeding brought by the Issuer against the Dealer in connection with or arising out of this Agreement or
the Notes or the offer and sale of the Notes shall be brought solely in the United States federal 

  
 11 

	 	
courts located in the Borough of Manhattan or the courts of the State of New York located in the Borough of Manhattan. EACH OF THE DEALER AND THE ISSUER WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY
SUIT, ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

  

	 	7.4	This Agreement may be terminated, at any time, by the Issuer, upon one business day’s prior notice to such effect to the Dealer, or by the Dealer upon one business day’s prior notice to such effect to the
Issuer. Any such termination, however, shall not affect the obligations of the Issuer under Sections 3.7, 5 and 7.3 hereof or the respective representations, warranties, agreements, covenants, rights or responsibilities of the parties made or
arising prior to the termination of this Agreement. 

  

	 	7.5	This Agreement is not assignable by either party hereto without the written consent of the other party; provided, however, with reasonably prompt notice to the Issuer, the Dealer may assign its rights and obligations
under this Agreement to any affiliate of the Dealer. 

  

	 	7.6	This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 

 

	 	7.7	This Agreement is for the exclusive benefit of the parties hereto, and their respective permitted successors and assigns hereunder, and shall not be deemed to give any legal or equitable right, remedy or claim to any
other person whatsoever. 

  

	 	7.8	The parties hereto agree that the Issuer may, in accordance with the terms of this Section 7.8, from time to time replace the party which is then acting as Issuing and Paying Agent (the “Current Issuing and
Paying Agent”) with another party (such other party, the “Replacement Issuing and Paying Agent”), and enter into an agreement with the Replacement Issuing and Paying Agent covering the provision of issuing and paying agency functions
in respect of the Notes by the Replacement Issuing and Paying Agent (the “Replacement Issuing and Paying Agency Agreement”) (any such replacement, a “Replacement”). 

Notwithstanding anything to the contrary herein, including without limitation Sections 6.9 and 6.10 hereof, from and after the effective date
of any Replacement, except to the extent that the Issuing and Paying Agency Agreement provides that the Current Issuing and Paying Agent will continue to act in respect of Notes outstanding as of the effective date of such Replacement, the
“Issuing and Paying Agent” for the Notes shall be deemed to be the Replacement Issuing and Paying Agent, all references to the “Issuing and Paying Agent” hereunder shall be deemed to refer to the Replacement Issuing and Paying
Agent, and all references to the “Issuing and Paying Agency Agreement” hereunder shall be deemed to refer to the Replacement Issuing and Paying Agency Agreement. 

From and after the effective date of any Replacement, the Issuer shall not issue any Notes hereunder unless and until the Dealer shall have
received: (i) a copy of the executed Replacement Issuing and Paying Agency Agreement, (ii) a copy of 

  
 12 

 
the executed Letter of Representations among the Issuer, the Replacement Issuing and Paying Agent and DTC, (iii) a copy of the executed Master Note authenticated by the Replacement Issuing
and Paying Agent and registered in the name of DTC or its nominee, (iv) an amendment or supplement to the Private Placement Memorandum describing the Replacement Issuing and Paying Agent as the Issuing and Paying Agent for the Notes, and
reflecting any other changes thereto necessary in light of the Replacement so that the Private Placement Memorandum, as amended or supplemented, satisfies the requirements of this Agreement, and (v) a legal opinion of counsel to the Issuer,
addressed to the Dealer, satisfactory in form and substance reasonably satisfactory to the Dealer, as to (a) the due authorization, delivery, validity and enforceability of Notes issued pursuant to the Replacement Issuing and Paying Agency
Agreement, and (b) such other matters as the Dealer may reasonably request. 
 [Signature Page Follows] 

  
 13 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date
and year first above written. 
  

									
	BLACKROCK, INC., as Issuer	 		 	BARCLAYS CAPITAL INC., as Dealer
					
	By:	 	 /s/ Philippe Matsumoto
	 		 	By:	 	 /s/ Christopher R. Conetta

					
	Name:	 	Philippe Matsumoto	 		 	Name:	 	Christopher R. Conetta
					
	Title:	 	Treasurer and Managing Director	 		 	Title:	 	Managing Director

 Amended and Restated 

Commercial Paper Dealer Agreement 

 Addendum 

The following additional clauses shall apply to the Agreement and be deemed a part thereof. 

 

	1.	The other dealers referred to in clause (b) of Section 1.2 of the Agreement are Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Merrill Lynch, Pierce, Fenner & Smith
Incorporated. 

  

	2.	The addresses of the respective parties for purposes of notices under Section 7.1 are as follows: 

 For
the Issuer: 
 Address: 40 East 52nd Street, New York, New York 10022 

Attention: Philippe Matsumoto 
 Email address:
Philippe.Matsumoto@blackrock.com 
 Telephone number: (212) 810-3767 

Fax number: (212) 810-3144 
 with a copy to

 Attention: Armando Gochuico 
 Email address:
Armando.Gochuico@blackrock.com 
 Fax number: 212-810-3144 

For the Dealer: 
 Address: 745 Seventh Avenue, 4th Floor, New
York, NY 10019 
 Attention: Commercial Paper Product Management 

Telephone number: (212) 412-2112 
 Fax number:
(212) 520-0593 

  
 2 

 Exhibit A 

Form of Legend for Private Placement Memorandum and Notes 

THE NOTES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY OTHER APPLICABLE SECURITIES LAW, AND OFFERS AND
SALES THEREOF MAY BE MADE ONLY IN COMPLIANCE WITH AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS. BY ITS ACCEPTANCE OF A NOTE, THE PURCHASER WILL BE DEEMED TO REPRESENT THAT (I) IT
HAS BEEN AFFORDED AN OPPORTUNITY TO INVESTIGATE MATTERS RELATING TO THE ISSUER AND THE NOTES, (II) IT IS NOT ACQUIRING SUCH NOTE WITH A VIEW TO ANY DISTRIBUTION THEREOF AND (III) IT IS EITHER (A) AN INSTITUTIONAL INVESTOR THAT IS (1) AN
ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501(a) UNDER THE ACT (AN “INSTITUTIONAL ACCREDITED INVESTOR”) AND (2) PURCHASING NOTES FOR (i) ITS OWN ACCOUNT, (ii) A BANK (AS DEFINED IN SECTION 3(a)(2) OF THE ACT) OR A
SAVINGS AND LOAN ASSOCIATION OR OTHER INSTITUTION (AS DEFINED IN SECTION 3(a)(5)(A) OF THE ACT) ACTING IN ITS INDIVIDUAL OR FIDUCIARY CAPACITY OR (iii) A FIDUCIARY OR AGENT (OTHER THAN A U.S. BANK OR SAVINGS AND LOAN ASSOCIATION) PURCHASING
NOTES FOR ONE OR MORE ACCOUNTS EACH OF WHICH ACCOUNTS IS SUCH AN INSTITUTIONAL ACCREDITED INVESTOR; OR (B) A QUALIFIED INSTITUTIONAL BUYER (“QIB”) WITHIN THE MEANING OF RULE 144A UNDER THE ACT THAT IS ACQUIRING NOTES FOR ITS OWN
ACCOUNT OR FOR ONE OR MORE ACCOUNTS, EACH OF WHICH ACCOUNTS IS A QIB; AND THE PURCHASER ACKNOWLEDGES THAT IT IS AWARE THAT THE SELLER MAY RELY UPON THE EXEMPTION FROM THE REGISTRATION PROVISIONS OF SECTION 5 OF THE ACT PROVIDED BY RULE 144A. BY ITS
ACCEPTANCE OF A NOTE, THE PURCHASER THEREOF SHALL ALSO BE DEEMED TO AGREE THAT ANY RESALE OR OTHER TRANSFER THEREOF WILL BE MADE ONLY (A) IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE ACT, EITHER (1) TO THE ISSUER OR TO A PLACEMENT
AGENT DESIGNATED BY THE ISSUER AS A PLACEMENT AGENT FOR THE NOTES (COLLECTIVELY, THE “PLACEMENT AGENTS”), NONE OF WHICH SHALL HAVE ANY OBLIGATION TO ACQUIRE SUCH NOTE, (2) THROUGH A PLACEMENT AGENT TO AN INSTITUTIONAL ACCREDITED
INVESTOR OR A QIB, OR (3) TO A QIB IN A TRANSACTION THAT MEETS THE REQUIREMENTS OF RULE 144A AND (B) IN MINIMUM AMOUNTS OF $250,000. 

  
 Ex. A-1 

 Exhibit B 

Further Provisions Relating to Indemnification 
  

	(a)	The Issuer agrees to reimburse each Indemnitee for all expenses (including reasonable fees and disbursements of internal and external counsel) as they are incurred by it in connection with investigating or defending any
loss, claim, damage, liability or action in respect of which indemnification may be sought under Section 5 of the Agreement (whether or not it is a party to any such proceedings). 

 

	(b)	 Promptly after receipt by an Indemnitee of notice of the existence of a Claim, such Indemnitee will, if a claim in respect thereof is to be made
against the Issuer, notify the Issuer in writing of the existence thereof; provided that (i) the omission so to notify the Issuer will not relieve the Issuer from any liability which it may have hereunder unless and except to the extent it did
not otherwise learn of such Claim and such failure results in the forfeiture by the Issuer of substantial rights and defenses, and (ii) the omission so to notify the Issuer will not relieve it from liability which it may have to an Indemnitee
otherwise than on account of this indemnity agreement. In case any such Claim is made against any Indemnitee and it notifies the Issuer of the existence thereof, the Issuer will be entitled to participate therein, and to the extent that it may elect
by written notice delivered to the Indemnitee, to assume the defense thereof, with counsel reasonably satisfactory to such Indemnitee; provided that if the defendants in any such Claim include both the Indemnitee and the Issuer, and the Indemnitee
shall have concluded that there may be legal defenses available to it which are different from or additional to those available to the Issuer, the Issuer shall not have the right to direct the defense of such Claim on behalf of such Indemnitee, and
the Indemnitee shall have the right to select separate counsel to assert such legal defenses on behalf of such Indemnitee. Upon receipt of notice from the Issuer to such Indemnitee of the Issuer’s election so to assume the defense of such Claim
and approval by the Indemnitee of counsel, the Issuer will not be liable to such Indemnitee for expenses incurred thereafter by the Indemnitee in connection with the defense thereof (other than reasonable costs of investigation) unless (i) the
Indemnitee shall have employed separate counsel in connection with the assertion of legal defenses in accordance with the proviso to the next preceding sentence (it being understood, however, that the Issuer shall not be liable for the expenses of
more than one separate counsel (in addition to any local counsel in the jurisdiction in which any Claim is brought), approved by the Dealer, representing the Indemnitee who is party to such Claim), (ii) the Issuer shall not have employed
counsel reasonably satisfactory to the Indemnitee to represent the Indemnitee within a reasonable time after notice of existence of the Claim or (iii) the Issuer has authorized in writing the employment of counsel for the Indemnitee. The
indemnity, reimbursement and contribution obligations of the Issuer hereunder shall be in addition to any other liability the Issuer may otherwise have to an Indemnitee and shall be binding upon and inure to the benefit of any successors, assigns,
heirs and personal representatives of the Issuer and any Indemnitee. The Issuer agrees that without the Dealer’s prior written consent, it will not settle, compromise or consent to the entry of any judgment in any Claim in respect of which
indemnification may be sought under the indemnification provision of the Agreement (whether or not the Dealer 

  
 Ex. B-1 

	 	
or any other Indemnitee is an actual or potential party to such Claim), unless such settlement, compromise or consent (i) includes an unconditional release of each Indemnitee from all
liability arising out of such Claim and (ii) does not include a statement as to or an admission of fault, culpability or failure to act, by or on behalf of any Indemnitee. 

  
 Ex. B-2 

 Exhibit C 

Statement of Terms for Interest – Bearing Commercial Paper Notes of [Name of Issuer] 

THE PROVISIONS SET FORTH BELOW ARE QUALIFIED TO THE EXTENT APPLICABLE BY THE TRANSACTION SPECIFIC [PRICING] [PRIVATE PLACEMENT MEMORANDUM] SUPPLEMENT (THE
“SUPPLEMENT”) (IF ANY) SENT TO EACH PURCHASER AT THE TIME OF THE TRANSACTION. 
 1. General. (a) The obligations of
the Issuer to which these terms apply (each a “Note”) are represented by one or more Master Notes (each, a “Master Note”) issued in the name of (or of a nominee for) The Depository Trust Company (“DTC”), which Master
Note includes the terms and provisions for the Issuer’s Interest-Bearing Commercial Paper Notes that are set forth in this Statement of Terms, since this Statement of Terms constitutes an integral part of the Underlying Records as defined and
referred to in the Master Note. 
 (b) “Business Day” means any day other than a Saturday or Sunday that is neither a legal holiday
nor a day on which banking institutions are authorized or required by law, executive order or regulation to be closed in New York City and, with respect to LIBOR Notes (as defined below) is also a London Business Day. “London Business Day”
means, a day, other than a Saturday or Sunday, on which dealings in deposits in U.S. dollars are transacted in the London interbank market. 

2. Interest. (a) Each Note will bear interest at a fixed rate (a “Fixed Rate Note”) or at a floating rate (a
“Floating Rate Note”). 
 (b) The Supplement sent to each holder of such Note will describe the following terms: (i) whether
such Note is a Fixed Rate Note or a Floating Rate Note and whether such Note is an Original Issue Discount Note (as defined below); (ii) the date on which such Note will be issued (the “Issue Date”); (iii) the Stated Maturity
Date (as defined below); (iv) if such Note is a Fixed Rate Note, the rate per annum at which such Note will bear interest, if any, and the Interest Payment Dates; (v) if such Note is a Floating Rate Note, the Base Rate, the Index Maturity,
the Interest Reset Dates, the Interest Payment Dates and the Spread and/or Spread Multiplier, if any (all as defined below), and any other terms relating to the particular method of calculating the interest rate for such Note; and (vi) any
other terms applicable specifically to such Note. “Original Issue Discount Note” means a Note which has a stated redemption price at the Stated Maturity Date that exceeds its Issue Price by more than a specified de minimis amount and which
the Supplement indicates will be an “Original Issue Discount Note”. 
 (c) Each Fixed Rate Note will bear interest from its Issue
Date at the rate per annum specified in the Supplement until the principal amount thereof is paid or made available for payment. Interest on each Fixed Rate Note will be payable on the dates specified in the Supplement (each an “Interest
Payment Date” for a Fixed Rate Note) and on the Maturity Date (as defined below). Interest on Fixed Rate Notes will be computed on the basis of a 360-day year of twelve 30-day months. 

If any Interest Payment Date or the Maturity Date of a Fixed Rate Note falls on a day that is not a Business Day, the required payment of
principal, premium, if any, and/or interest will be payable on the next succeeding Business Day, and no additional interest will accrue in respect of the payment made on that next succeeding Business Day. 

  
 Ex. C-1 

 (d) The interest rate on each Floating Rate Note for each Interest Reset Period (as defined
below) will be determined by reference to an interest rate basis (a “Base Rate”) plus or minus a number of basis points (one basis point equals one-hundredth of a percentage point) (the “Spread”), if any, and/or multiplied by a
certain percentage (the “Spread Multiplier”), if any, until the principal thereof is paid or made available for payment. The Supplement will designate which of the following Base Rates is applicable to the related Floating Rate Note:
(a) the CD Rate (a “CD Rate Note”), (b) the Commercial Paper Rate (a “Commercial Paper Rate Note”), (c) the Federal Funds Rate (a “Federal Funds Rate Note”), (d) LIBOR (a “LIBOR Note”),
(e) the Prime Rate (a “Prime Rate Note”), (f) the Treasury Rate (a “Treasury Rate Note”) or (g) such other Base Rate as may be specified in such Supplement. 

The rate of interest on each Floating Rate Note will be reset daily, weekly, monthly, quarterly or semi-annually (the “Interest Reset
Period”). The date or dates on which interest will be reset (each an “Interest Reset Date”) will be, unless otherwise specified in the Supplement, in the case of Floating Rate Notes which reset daily, each Business Day, in the case of
Floating Rate Notes (other than Treasury Rate Notes) that reset weekly, the Wednesday of each week; in the case of Treasury Rate Notes that reset weekly, the Tuesday of each week; in the case of Floating Rate Notes that reset monthly, the third
Wednesday of each month; in the case of Floating Rate Notes that reset quarterly, the third Wednesday of March, June, September and December; and in the case of Floating Rate Notes that reset semiannually, the third Wednesday of the two months
specified in the Supplement. If any Interest Reset Date for any Floating Rate Note is not a Business Day, such Interest Reset Date will be postponed to the next day that is a Business Day, except that in the case of a LIBOR Note, if such Business
Day is in the next succeeding calendar month, such Interest Reset Date shall be the immediately preceding Business Day. Interest on each Floating Rate Note will be payable monthly, quarterly or semiannually (the “Interest Payment Period”)
and on the Maturity Date. Unless otherwise specified in the Supplement, and except as provided below, the date or dates on which interest will be payable (each an “Interest Payment Date” for a Floating Rate Note) will be, in the case of
Floating Rate Notes with a monthly Interest Payment Period, on the third Wednesday of each month; in the case of Floating Rate Notes with a quarterly Interest Payment Period, on the third Wednesday of March, June, September and December; and in the
case of Floating Rate Notes with a semiannual Interest Payment Period, on the third Wednesday of the two months specified in the Supplement. In addition, the Maturity Date will also be an Interest Payment Date. 

If any Interest Payment Date for any Floating Rate Note (other than an Interest Payment Date occurring on the Maturity Date) would otherwise be
a day that is not a Business Day, such Interest Payment Date shall be postponed to the next day that is a Business Day, except that in the case of a LIBOR Note, if such Business Day is in the next succeeding calendar month, such Interest Payment
Date shall be the immediately preceding Business Day. If the Maturity Date of a Floating Rate Note falls on a day that is not a Business Day, the payment of principal and interest will be made on the next succeeding Business Day, and no interest on
such payment shall accrue for the period from and after such maturity. 

  
 Ex. C-2 

 Interest payments on each Interest Payment Date for Floating Rate Notes will include accrued
interest from and including the Issue Date or from and including the last date in respect of which interest has been paid, as the case may be, to, but excluding, such Interest Payment Date. On the Maturity Date, the interest payable on a Floating
Rate Note will include interest accrued to, but excluding, the Maturity Date. Accrued interest will be calculated by multiplying the principal amount of a Floating Rate Note by an accrued interest factor. This accrued interest factor will be
computed by adding the interest factors calculated for each day in the period for which accrued interest is being calculated. The interest factor (expressed as a decimal) for each such day will be computed by dividing the interest rate applicable to
such day by 360, in the cases where the Base Rate is the CD Rate, Commercial Paper Rate, Federal Funds Rate, LIBOR or Prime Rate, or by the actual number of days in the year, in the case where the Base Rate is the Treasury Rate. The interest rate in
effect on each day will be (i) if such day is an Interest Reset Date, the interest rate with respect to the Interest Determination Date (as defined below) pertaining to such Interest Reset Date, or (ii) if such day is not an Interest Reset
Date, the interest rate with respect to the Interest Determination Date pertaining to the next preceding Interest Reset Date, subject in either case to any adjustment by a Spread and/or a Spread Multiplier. 

The “Interest Determination Date” where the Base Rate is the CD Rate or the Commercial Paper Rate will be the second Business Day
next preceding an Interest Reset Date. The Interest Determination Date where the Base Rate is the Federal Funds Rate or the Prime Rate will be the Business Day next preceding an Interest Reset Date. The Interest Determination Date where the Base
Rate is LIBOR will be the second London Business Day next preceding an Interest Reset Date. The Interest Determination Date where the Base Rate is the Treasury Rate will be the day of the week in which such Interest Reset Date falls when Treasury
Bills are normally auctioned. Treasury Bills are normally sold at auction on Monday of each week, unless that day is a legal holiday, in which case the auction is held on the following Tuesday or the preceding Friday. If an auction is so held on the
preceding Friday, such Friday will be the Interest Determination Date pertaining to the Interest Reset Date occurring in the next succeeding week. 

The “Index Maturity” is the period to maturity of the instrument or obligation from which the applicable Base Rate is calculated.

 The “Calculation Date,” where applicable, shall be the earlier of (i) the tenth calendar day following the applicable
Interest Determination Date or (ii) the Business Day preceding the applicable Interest Payment Date or Maturity Date. 
 All times
referred to herein reflect New York City time, unless otherwise specified. 
 The Issuer shall specify in writing to the Issuing and Paying
Agent which party will be the calculation agent (the “Calculation Agent”) with respect to the Floating Rate Notes. The Calculation Agent will provide the interest rate then in effect and, if determined, the interest rate which will become
effective on the next Interest Reset Date with respect to such Floating Rate Note to the Issuing and Paying Agent as soon as the interest rate with respect to such Floating Rate Note has been determined and as soon as practicable after any change in
such interest rate. 

  
 Ex. C-3 

 All percentages resulting from any calculation on Floating Rate Notes will be rounded to the
nearest one hundred-thousandth of a percentage point, with five-one millionths of a percentage point rounded upwards. For example, 9.876545% (or .09876545) would be rounded to 9.87655% (or .0987655). All dollar amounts used in or resulting from any
calculation on Floating Rate Notes will be rounded, in the case of U.S. dollars, to the nearest cent or, in the case of a foreign currency, to the nearest unit (with one-half cent or unit being rounded upwards). 

CD Rate Notes 
 “CD Rate” means
the rate on any Interest Determination Date for negotiable U.S. dollar certificates of deposit having the Index Maturity as published in the source specified in the Supplement. 

If the above rate is not published by 3:00 p.m., New York City time, on the Calculation Date, the CD Rate will be the rate on such Interest
Determination Date published under the caption specified in the Supplement in another recognized electronic source used for the purpose of displaying the applicable rate. 

If such rate is not published in either the source specified on the Supplement or another recognized electronic source by 3:00 p.m., New York
City time, on the Calculation Date, the Calculation Agent will determine the CD Rate to be the arithmetic mean of the secondary market offered rates as of 10:00 a.m., New York City time, on such Interest Determination Date of three leading nonbank
dealers1 in negotiable U.S. dollar certificates of deposit in New York City selected by the Calculation Agent for negotiable U.S. dollar certificates of deposit of major United States money center
banks of the highest credit standing in the market for negotiable certificates of deposit with a remaining maturity closest to the Index Maturity in the denomination of $5,000,000. 

If fewer than the three dealers selected by the Calculation Agent are quoting as set forth above, the CD Rate will remain the CD Rate then in
effect on such Interest Determination Date. 
 Commercial Paper Rate Notes 

“Commercial Paper Rate” means the Money Market Yield (calculated as described below) of the rate on any Interest Determination Date
for commercial paper having the Index Maturity, as published by the Board of Governors of the Federal Reserve System (“FRB”) in “Statistical Release H.15(519), Selected Interest Rates” or any successor publication of the FRB
(“H.15(519)”) under the heading “Commercial Paper-[Financial][Nonfinancial]”. 
 If the above rate is not published in
H.15(519) by 3:00 p.m., New York City time, on the Calculation Date, then the Commercial Paper Rate will be the Money Market Yield of the rate on such Interest Determination Date for commercial paper of the Index Maturity published in the daily
update of H.15(519), available through the world wide website of the FRB at http://www.federalreserve.gov/releases/h15/Update, or any successor site or publication or other recognized electronic source used for the purpose of displaying the
applicable rate (“H.15 Daily Update”) under the heading “Commercial Paper-[Financial][Nonfinancial]”. 
  

	1 	 Such nonbank dealers referred to in this Statement of Terms may include affiliates of the Dealer.

  
 Ex. C-4 

 If by 3:00 p.m. on such Calculation Date such rate is not published in either H.15(519) or H.15
Daily Update, then the Calculation Agent will determine the Commercial Paper Rate to be the Money Market Yield of the arithmetic mean of the offered rates as of 11:00 a.m. on such Interest Determination Date of three leading dealers of U.S. dollar
commercial paper in New York City selected by the Calculation Agent for commercial paper of the Index Maturity placed for an industrial issuer whose bond rating is “AA,” or the equivalent, from a nationally recognized statistical rating
organization. 
 If the dealers selected by the Calculation Agent are not quoting as mentioned above, the Commercial Paper Rate with respect
to such Interest Determination Date will remain the Commercial Paper Rate then in effect on such Interest Determination Date. 
 “Money
Market Yield” will be a yield calculated in accordance with the following formula: 
  

							
			D x 360		  
 x 100

 
		
	Money Market Yield =		  
			
			  
 360 - (D x M)
			

 where “D” refers to the applicable per annum rate for commercial paper quoted on a bank discount
basis and expressed as a decimal and “M” refers to the actual number of days in the interest period for which interest is being calculated. 

Federal Funds Rate Notes 
 “Federal
Funds Rate” means the rate on any Interest Determination Date for federal funds as published in H.15(519) under the heading “Federal Funds (Effective)” and displayed on Reuters Page (as defined below) FEDFUNDS1 (or any other page as
may replace the specified page on that service) (“Reuters Page FEDFUNDS1”) under the heading EFFECT. 
 If the above rate does not
appear on Reuters Page FEDFUNDS1or is not so published by 3:00 p.m. on the Calculation Date, the Federal Funds Rate will be the rate on such Interest Determination Date as published in H.15 Daily Update under the heading “Federal
Funds/(Effective)”. 
 If such rate is not published as described above by 3:00 p.m. on the Calculation Date, the Calculation Agent will
determine the Federal Funds Rate to be the arithmetic mean of the rates for the last transaction in overnight U.S. dollar federal funds arranged by each of three leading brokers of Federal Funds transactions in New York City selected by the
Calculation Agent prior to 9:00 a.m. on such Interest Determination Date. 

  
 Ex. C-5 

 If the brokers selected by the Calculation Agent are not quoting as mentioned above, the Federal
Funds Rate will remain the Federal Funds Rate then in effect on such Interest Determination Date. 
 “Reuters Page” means the
display on the Reuters 3000 Xtra Service, or any successor service, on the page or pages specified in this Statement of Terms or the Supplement, or any replacement page on that service. 

LIBOR Notes 
 The London Interbank offered
rate (“LIBOR”) means, with respect to any Interest Determination Date, the rate for deposits in U.S. dollars having the Index Maturity that appears on the Designated LIBOR Page as of 11:00 a.m., London time, on such Interest Determination
Date. 
 If no rate appears, LIBOR will be determined on the basis of the rates at approximately 11:00 a.m., London time, on such Interest
Determination Date at which deposits in U.S. dollars are offered to prime banks in the London interbank market by four major banks in such market selected by the Calculation Agent for a term equal to the Index Maturity and in principal amount equal
to an amount that in the Calculation Agent’s judgment is representative for a single transaction in U.S. dollars in such market at such time (a “Representative Amount”). The Calculation Agent will request the principal London office
of each of such banks to provide a quotation of its rate. If at least two such quotations are provided, LIBOR will be the arithmetic mean of such quotations. If fewer than two quotations are provided, LIBOR for such interest period will be the
arithmetic mean of the rates quoted at approximately 11:00 a.m., in New York City, on such Interest Determination Date by three major banks in New York City, selected by the Calculation Agent, for loans in U.S. dollars to leading European banks, for
a term equal to the Index Maturity and in a Representative Amount; provided, however, that if fewer than three banks so selected by the Calculation Agent are providing such quotations, the then existing LIBOR rate will remain in effect for such
Interest Payment Period. 
 “Designated LIBOR Page” means the display on the Reuters 3000 Xtra Service (or any successor service)
on the “LIBOR01” page (or any other page as may replace such page on such service) for the purpose of displaying the London interbank rates of major banks. 

Prime Rate Notes 
 “Prime Rate”
means the rate on any Interest Determination Date as published in H.15(519) under the heading “Bank Prime Loan”. 
 If the above
rate is not published in H.15(519) prior to 3:00 p.m. on the Calculation Date, then the Prime Rate will be the rate on such Interest Determination Date as published in H.15 Daily Update opposite the caption “Bank Prime Loan”. 

If the rate is not published prior to 3:00 p.m. on the Calculation Date in either H.15(519) or H.15 Daily Update, then the Calculation Agent
will determine the Prime Rate to be the arithmetic mean of the rates of interest publicly announced by each bank that appears on the Reuters Screen US PRIME1 Page (as defined below) as such bank’s prime rate or base lending rate as of 11:00
a.m., on that Interest Determination Date. 

  
 Ex. C-6 

 If fewer than four such rates referred to above are so published by 3:00 p.m. on the Calculation
Date, the Calculation Agent will determine the Prime Rate to be the arithmetic mean of the prime rates or base lending rates quoted on the basis of the actual number of days in the year divided by 360 as of the close of business on such Interest
Determination Date by three major banks in New York City selected by the Calculation Agent. 
 If the banks selected are not quoting as
mentioned above, the Prime Rate will remain the Prime Rate in effect on such Interest Determination Date. 
 “Reuters Screen US PRIME1
Page” means the display designated as page “US PRIME1” on the Reuters Monitor Money Rates Service (or such other page as may replace the US PRIME1 page on that service for the purpose of displaying prime rates or base lending rates of
major United States banks). 
 Treasury Rate Notes 

“Treasury Rate” means: 

(1) the rate from the auction held on the Interest Determination Date (the “Auction”) of direct obligations of the United States
(“Treasury Bills”) having the Index Maturity specified in the Supplement under the caption “INVEST RATE” on the display on the Reuters Page designated as USAUCTION10 (or any other page as may replace that page on that service) or
the Reuters Page designated as USAUCTION11 (or any other page as may replace that page on that service), or 
 (2) if the rate referred to in
clause (1) is not so published by 3:00 p.m. on the related Calculation Date, the Bond Equivalent Yield (as defined below) of the rate for the applicable Treasury Bills as published in H.15 Daily Update, under the caption “U.S. Government
Securities/Treasury Bills/Auction High”, or 
 (3) if the rate referred to in clause (2) is not so published by 3:00 p.m. on the
related Calculation Date, the Bond Equivalent Yield of the auction rate of the applicable Treasury Bills as announced by the United States Department of the Treasury, or 

(4) if the rate referred to in clause (3) is not so announced by the United States Department of the Treasury, or if the Auction is not
held, the Bond Equivalent Yield of the rate on the particular Interest Determination Date of the applicable Treasury Bills as published in H.15(519) under the caption “U.S. Government Securities/Treasury Bills/Secondary Market”, or 

(5) if the rate referred to in clause (4) not so published by 3:00 p.m. on the related Calculation Date, the rate on the particular
Interest Determination Date of the applicable Treasury Bills as published in H.15 Daily Update, under the caption “U.S. Government Securities/Treasury Bills/Secondary Market”, or 

(6) if the rate referred to in clause (5) is not so published by 3:00 p.m. on the related Calculation Date, the rate on the particular
Interest Determination Date calculated by the Calculation Agent as the Bond Equivalent Yield of the arithmetic mean of the secondary market bid rates, as of approximately 3:30 p.m. on that Interest Determination Date, of three primary United States
government securities dealers selected by the Calculation Agent, for the issue of Treasury Bills with a remaining maturity closest to the Index Maturity specified in the Supplement, or 

  
 Ex. C-7 

 (7) if the dealers so selected by the Calculation Agent are not quoting as mentioned in clause
(6), the Treasury Rate in effect on the particular Interest Determination Date. 
 “Bond Equivalent Yield” means a yield (expressed as a
percentage) calculated in accordance with the following formula: 
  

							
		 	D x N	 	  
 x 100

 
	 	
	Bond Equivalent Yield =	 	  
	 	 	
		 	  
 360 - (D x M)
	 	 	

 where “D” refers to the applicable per annum rate for Treasury Bills quoted on a bank discount basis
and expressed as a decimal, “N” refers to 365 or 366, as the case may be, and “M” refers to the actual number of days in the applicable Interest Reset Period. 

 

	3.	Final Maturity. The Stated Maturity Date for any Note will be the date so specified in the Supplement, which shall be no later than 397 days from the date of issuance. On its Stated Maturity Date, or any date
prior to the Stated Maturity Date on which the particular Note becomes due and payable by the declaration of acceleration, each such date being referred to as a Maturity Date, the principal amount of such Note, together with accrued and unpaid
interest thereon, will be immediately due and payable. 

  

	4.	Events of Default. The occurrence of any of the following shall constitute an “Event of Default” with respect to a Note: (i) default in any payment of principal of or interest on such Note
(including on a redemption thereof); (ii) the Issuer makes any compromise arrangement with its creditors generally including the entering into any form of moratorium with its creditors generally; (iii) a court having jurisdiction shall
enter a decree or order for relief in respect of the Issuer in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or there shall be appointed a receiver, administrator, liquidator,
custodian, trustee or sequestrator (or similar officer) with respect to the whole or substantially the whole of the assets of the Issuer and any such decree, order or appointment is not removed, discharged or withdrawn within 60 days thereafter; or
(iv) the Issuer shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consent to the entry of an order for relief in an involuntary case under any such law, or consent to
the appointment of or taking possession by a receiver, administrator, liquidator, assignee, custodian, trustee or sequestrator (or similar official), with respect to the whole or substantially the whole of the assets of the Issuer or make any
general assignment for the benefit of creditors. Upon the occurrence of an Event of Default, the principal of such Note (together with interest accrued and unpaid thereon) shall become, without any notice or demand, immediately due and payable.2 

  

	5.	Obligation Absolute. No provision of the Issuing and Paying Agency Agreement under which the Notes are issued shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on each Note at the times, place and rate, and in the coin or currency, herein prescribed. 

  

	6.	Supplement. Any term contained in the Supplement shall supersede any conflicting term contained herein. 

 

	2 	Unlike single payment notes, where a default arises only at the stated maturity, interest-bearing notes with multiple payment dates should contain a default provision permitting acceleration of the maturity if the
Issuer defaults on an interest payment. 

  
 Ex. C-8 

 Exhibit D 

Note 
 [See attached]

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