Document:

Exhibit 10.2

    
      

    

     

    EXHIBIT
      10.2

    SECOND
      AMENDMENT

    TO
      THE

    PNM
      RESOURCES, INC.

    EXECUTIVE
      SAVINGS PLAN II

     

     

    Effective
      as of December 15, 2004, PNM Resources, Inc. (the “Company”) adopted the PNM
      Resources, Inc. Executive Savings Plan II (the “Plan”). The Plan was
      subsequently amended on one occasion. Section 409A of the Internal Revenue
      Code
      of 1986, as amended, (“Section 409A”) imposes a number of requirements on
      non-qualified deferred compensation plans such as the ESP II. The transitional
      rules governing the implementation of Section 409A allow for amendment of any
      non-qualified deferred compensation plan to allow participants to make new
      payment elections with respect to both the time and form of payment of amounts
      due under such plan without such election being treated as a change in the
      timing and form of payment under Section 409A(a)(4) or an acceleration of a
      payment under Section 490A(a)(3), provided that such amendment is adopted and
      the participants make any applicable elections on or before December 31, 2006.
      By this instrument, the Company now desires to amend the Plan to allow
      participants to make such a change to their elections on or before December
      31,
      2006.

     

    1. This
      Second Amendment shall be effective as of September 26, 2006.

     

    2. This
      Second Amendment amends only the provisions of the Plan as set forth herein,
      and
      those provisions not expressly amended hereby shall be considered in full force
      and effect. Notwithstanding the foregoing, this Second Amendment shall supersede
      the provisions of the Plan to the extent those provisions are inconsistent
      with
      the provisions and intent of this Second Amendment.

     

    3. Section
      6.3 (Form
      of Distribution)
      of the
      Plan is hereby amended by adding the following new paragraph (e) to the end
      thereof: 

     

    (e) Changes
      to Distribution Elections Prior to December 31, 2006.
      Notwithstanding any provision herein to the contrary, a Participant may file
      a
      new Distribution Election Form on or before December 31, 2006 in which the
      Participant elects to change the time of a payment elected by the Participant
      or
      the form of payment elected by the Participant, provided that such change in
      election may apply only to amounts payable in 2007 or later and provided further
      that such change in election does not cause an amount to be paid in 2006 that
      would not otherwise be payable in 2006. Any change in election made pursuant
      to
      this Section 6.3(e) will not be subject to the restrictions set forth in Section
      6.3(d) (Changes
      in Time and Form of Distribution).
      

    
      
        
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    EXHIBIT
      10.2

     

    
 

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

     

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

            
	 	Its:
              SVP, Chief Administrative Officer 

    

     

    
2Prepared and filed by St Ives Financial

Exhibit 4.1

FORMS OF LETTERS SENT TO LIMITED PARTNERS

CONFIRMING THEIR INVESTMENT

Exhibit 4.1

Investor Acknowledgement Letter

Sent After Escrow Break

LEAF EQUIPMENT LEASING INCOME FUND III, L.P.

110 S. Poplar Street, Suite 101

Wilmington, DE  19801

(800) 819-5556

Date

Name of Investor

Address

City, State, Zip

	

RE:
 	

LEAF Equipment Leasing Income Fund III, L.P.
 

(“The Program”)

Dear (Name of Investor):

Welcome!

The Program has accepted your subscription for XX units in the amount of $XX,XXX on (Date). A copy of your executed subscription agreement is enclosed for your files.

Your monthly cash distributions will be sent to the designee stated on your subscription agreement. [If the use of distributions to purchase additional units during the offering period option was chosen: However, during the remainder of the offering period we will follow the instructions on your subscription agreement and your cash distributions will be applied to the purchase of additional units or fractions thereof.] [If subscription was received prior to escrow break: You will be separately receiving a check from the program for the amount of interest earned on your subscription funds during the escrow period.] 

If you have any questions or are in need of additional information please contact us at the above address or your broker.

Very truly yours, 

Name of Signatory

Title 

Cc: Registered Rep 

Bcc: Sample one unit letter to B/D Contact 

Investor Acknowledgement Letter

Sent After Final Close

LEAF EQUIPMENT LEASING INCOME FUND III, L.P.

110 S. Poplar Street, Suite 101

Wilmington, DE  19801

(800) 819-5556

Date

Name of Investor

Address

City, State, Zip

	

RE:
 	

LEAF Equipment Leasing Income Fund III, L.P. 
 

(“The Program”)

Dear (Name of Investor):

The Program has completed its offering of Units.

This letter will confirm your total participation in the Program. You have subscribed for a total of XX Units at $100 per unit for a total of $XX,XXX investment. [This includes the reinvestment of your monthly distributions to purchase additional units during the offering period. As you instructed us, your future monthly distributions will now be sent to the designee on your subscription agreement.] 

Thank you for investing along with us in LEAF Equipment Leasing Income Fund III, L.P.

Should have any questions or comments please contact us at the above address or contact your broker. 

Very truly yours, 

Name of Signatory,

Title 

Cc: Registered Rep 

Bcc: Sample one unit letter to B/D ContactPrepared and filed by St Ives Financial

Exhibit 10.1

FORM OF ORIGINATION AND SERVICING AGREEMENT

Exhibit 10.1

ORIGINATION AND SERVICING AGREEMENT

ORIGINATION
    AND SERVICING AGREEMENT, dated as of the __ day of __________, 200___ (the “Agreement”)
    by and between LEAF EQUIPMENT LEASING INCOME FUND III, L.P. (“LEAF III”),
    a Delaware limited partnership, 1818 Market Street, 9th Floor, Philadelphia,
    PA 19103, LEAF FINANCIAL CORPORATION (“LEAF Financial”), a Delaware
    corporation, 1818 Market
    Street, 9th Floor, Philadelphia, PA 19103 [110
    S. Poplar Street, Suite 101, Wilmington, DE 19801], and
    LEAF FUNDING, INC. (“LEAF Funding”), a Delaware corporation, 1818
Market Street, 9th Floor, Philadelphia, PA 19103.

WHEREAS, LEAF III is engaged in the business of acquiring a diversified portfolio of equipment that it leases to third-parties (“Equipment Leases”), and to a limited extent financing the acquisition of equipment by end users(“Secured Loans”);

WHEREAS, LEAF III desires to retain LEAF Funding (the “Originator”) as the originator of the Equipment Leases and the Secured Loans;

WHEREAS, LEAF III desires to retain LEAF Financial (the “Servicer”) as the servicer of the Equipment Leases and the Secured Loans; and

WHEREAS, LEAF Funding and LEAF Financial are willing to originate and service all of the Equipment Leases and Secured Loans;

NOW THEREFORE, in consideration of the covenants set forth in this Agreement and other good and valuable consideration, receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement agree as follows:

	

1.
 	

APPOINTMENT; STANDARD OF CARE; DUTIES OF THE ORIGINATOR AND THE SERVICER 
 

A. The Originator and the Servicer are each hereby authorized to act as an agent for LEAF III and in that capacity shall originate, manage, service, administer and make collections on the Equipment Leases and Secured Loans and perform any other reasonable actions that may be required by LEAF III under this Agreement. The Servicer agrees that its servicing of the Equipment Leases and Secured Loans shall be carried out in accordance with customary and usual procedures of institutions which service equipment leases and Secured Loans, unless there is a specific requirement dictated by LEAF III.

	

 
 	

(a)
 	

        The
          Originator’s duties shall include, without limitation, the following:

      

1. Origination
          of Equipment Leases and Secured Loans

Originate Equipment Leases and Secured Loans through direct and indirect origination strategies. Direct originations will involve marketing to direct vendors and resellers, which will offer leasing as a financing option as part of the vendors’ and resellers’ overall equipment package. The indirect strategy will involve acquiring Equipment Leases from 

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other equipment lessors, including captives of manufacturers, banks and other financial services companies. 

	

 
 	

(b)
 	

The Servicer’s duties shall include, without limitation, the following:
 

1. Underwriting

Development and ongoing updates of credit evaluation systems, including automatic extraction of credit information from online databases; credit scoring and credit analyst review.

2. Receivables Management

Monthly invoicing including detailed breakdown of Equipment Lease payments and misc. items and collection of Equipment Lease revenues. The Servicer will have the authority to manage the Equipment Lease receivables as well as write-off Equipment Leases.

3. Syndicate Transactions

Syndicate Equipment Lease transactions and/or portions of Equipment Lease portfolios to third-parties, or other additional related parties, where applicable to enhance income and/or manage risk.

4. System Development and Integration

Develop and integrate systems to provide fully automated processing of Equipment Leases, including:

	

 
 	

•
 	

a management system establishing Equipment Leasing program relationships with direct sales organizations;
 

	

 
 	

•
 	

sales and marketing database management systems that provide vendor sales relationship development and tracking tools;
 

	

 
 	

•
 	

application management system;
 

	

 
 	

•
 	

credit scoring system that automates the task of evaluating high volumes of small ticket Equipment Lease applications;
 

	

 
 	

•
 	

contract management system that provides electronic invoice generation, payment posting technologies and collections and customer service screens;
 

	

 
 	

•
 	

accounting and financial management system that will provide financial management of portfolio from securitization reporting to financial pro forma generating tools and investor reporting.
 

5. Set Residuals and Manage Residual Realization

Establish and monitor residual value assessments of equipment subject to Equipment Leases using information from any one or more of a number of sources, including management’s prior experience, secondary market publications, interviews with manufacturers and used equipment dealers, auction sales guides, historical sales data, industry organizations and valuation companies.

Manage residual realization by: re-leasing equipment to existing lessees; automatically extending Equipment Leases on a month to month basis; selling equipment to lessees at the end of the Equipment Lease or at the end of any extension of the Equipment Lease; 

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and selling equipment that is returned at the end of the Equipment Lease either to the original vendor or to used equipment dealers.

6. Ongoing Portfolio Integrity

Evaluate the Equipment Lease portfolio on an ongoing basis, including review for completeness and accuracy of documentation; review and verify lessee and user payment histories; evaluate underlying equipment or other collateral and verify values; obtain credit reports and/or credit scores for a representative number of Equipment Leases and perform UCC lien searches.

7. Development and Documentation of Marketing Materials

Develop marketing material specific to each program, including:

	

 
 	

•
 	

a sales kit, which shall include a sales jacket along with lease agreements, a rate card, and specific lease products of a vendor; and
 

	

 
 	

•
 	

a lease program and a benefit flyer to assist vendor sales forces in presenting the lease option to customers.
 

8. Secured Loans

To the extent applicable, the Servicer’s duties described above in this Section 1.A.(b) shall include the Secured Loans.

	

2.
 	

TERM AND TERMINATION
 

	

 
 	

A.
 	

This Agreement shall be deemed effective on execution by LEAF III, LEAF Funding and LEAF Financial. The term of this Agreement shall continue from that effective date for three (3) years and shall automatically renew for additional one-year periods unless earlier terminated by LEAF III. LEAF III may terminate this Agreement at any time by giving the other parties at least thirty (30) days written notice of termination. At the termination date specified in LEAF III’s notice, the obligations of the other parties with respect to the origination and servicing of the Equipment Leases and Secured Loans shall terminate to the extent they have not yet been performed or are not required by this Agreement to have been performed before that termination date.
 

	

3.
 	

FEES AND EXPENSES
 

In consideration of the above described services, the Originator and the Servicer shall receive certain fees and be reimbursed for expenses as set forth in the Amended and Restated Agreement of Limited Partnership of LEAF Equipment Leasing Income Fund III, L.P. 

	

4.
 	

MISCELLANEOUS PROVISIONS
 

(a) Assignability. The rights and obligations of LEAF Funding and LEAF Financial may only be assigned if the proposed assignee(s) meets LEAF III’s requirements and receives LEAF III’s written approval prior to the assignment.

(b) Delegation
      of Duties.
    Notwithstanding anything to the contrary in this Agreement, the Originator
      and/or the Servicer may, from time to time and in its sole discretion,
      subcontract all or any part of its duties under this Agreement to any entity
      chosen by it, including any entity affiliated with it, with respect to
      one or more of LEAF III’s Equipment Leases or Secured Loans. The subcontract,
      however, shall not relieve the Originator or the Servicer, as the case
      may be, of its responsibilities to LEAF III under this Agreement with respect
    to any Equipment Lease or Secured Loan that is subject to the subcontract.

(c) Notices.
    Notices under this Agreement shall be deemed to have been given if mailed,
    postage prepaid, by registered or certified mail, return receipt required,
    or delivered by courier service to the other parties at each party’s
    address stated above or at any other address as a party may have provided
    by written notice to the other parties.

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(d) Choice
      of Law; Venue; Waiver of Trial by Jury. This Agreement
      shall be governed by the internal laws (as opposed to the conflict of laws
      provisions) and decisions of the Commonwealth of Pennsylvania. The parties
      to this Agreement consent to the jurisdiction of any local, state, or federal
      court located within Pennsylvania, and waive any objection relating to
      improper venue or forum non conveniens to the conduct of any proceeding
      in any such court and further waive any right to have any claim or dispute
      arising from or related to this Agreement by parties to this Agreement
      against one or more parties to this Agreement, whether or not there are
      any additional third-parties to the action or proceeding, heard by a jury.

IN
  WITNESS WHEREOF, the parties to this Agreement have executed this Agreement
  by their duly authorized officers as of the ________ day of ,_________ 200___.

 

  	
         

      	
        LEAF
          Equipment Leasing Income Fund III, L.P.

      
	
         

      	
        By:

      	
        LEAF
          Asset Management, LLC,

          its General Partner

      
	 	 
	
         

      	
        By: 

      
	
         

      	
         

      	
        
        

      
	
         

      	
        Name: 

      	
        Crit
          DeMent

      
	
         

      	
        Title: 

      	
        CEO

      

 

  	
         

      	
        LEAF
          Funding, Inc.

      
	
         

      	
        By: 

      	
         

      
	
         

      	
         

      	
        
        

      
	
         

      	
        Name: 

      	
        Miles
          Herman

      
	
         

      	
        Title: 

      	
        President
          and COO

      

 

  	
         

      	
        LEAF
          Financial Corporation

      
	
         

      	
        By: 

      
	
         

      	
         

      	
        
        

      
	 	 
	
         

      	
        Name: 

      	
        Miles
          Herman

      
	
         

      	
        Title: 

      	
        President
          and COO

      

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