Document:

exh10-1_031609.htm

    Exhibit
10.1

    

    THIRD
AMENDMENT TO CREDIT AGREEMENT

    

    

    THIS THIRD AMENDMENT TO CREDIT
AGREEMENT (this "Amendment") is
entered into as of March __, 2009 among PNM RESOURCES, INC., a New Mexico
corporation (the "Company"), FIRST
CHOICE POWER, L.P., a Texas limited partnership ("FCP", collectively
with the Company, the "Borrowers"), the
Lenders party hereto, and BANK OF AMERICA, N.A., as Administrative Agent for the
Lenders (in such capacity, the "Administrative
Agent").  Capitalized terms used herein and not otherwise
defined shall have the meanings ascribed thereto in the Credit Agreement (as
defined below).

    

    

    R E C I T A L
S

    

    WHEREAS, the Borrowers, the Lenders
party thereto and the Administrative Agent are parties to that certain Amended
and Restated Credit Agreement, dated as of August  15, 2005 (as amended or
modified from time to time, the "Credit
Agreement");

    

    WHEREAS, Texas-New Mexico Power Company
("TNMP"), a
Subsidiary of the Company, wishes to incur certain secured Indebtedness;
and

    

    WHEREAS, the Borrowers have requested
that the Administrative Agent and Lenders agree to certain changes to the Credit
Agreement to accommodate the incurrence of such secured
Indebtedness.

    

    NOW, THEREFORE, in consideration of the
premises and the mutual covenants contained herein, and for other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

    

    A G R E E M E N
T

    

    1.           Amendments.

    

    (a)           Section
1.1.  The following new definition "TNMP First Mortgage
Bonds" is hereby added to Section 1.1 of the Credit Agreement in the
appropriate alphabetical order:

    

    "TNMP First Mortgage
Bonds" means those certain first mortgage bonds issued pursuant to the
First Mortgage Indenture substantially in the form of the draft dated March 4,
2009 and dated on or before April 1, 2009, between TNMP and The Bank of New York
Mellon Trust Company, N.A., as trustee thereunder, as it may be
supplemented and
amended from time
to time so long as such supplements or amendments do not cause a Default under
this Agreement.

    

    (b)           Section
8.5.  Section 8.5 of the Credit Agreement is hereby amended and
restated in its entirety to read as follows:

    

         8.5      Liens.

    

    Such Borrower will not (nor will it
permit its Subsidiaries to) contract, create, incur, assume or permit to exist
any Lien with respect to any of its property or assets of any kind (whether real
or personal, tangible or intangible), whether now owned or 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    hereafter
acquired, securing any Indebtedness other than the following: (a) Liens securing
Borrower Obligations, (b) Liens for taxes not yet due or Liens for taxes
being contested in good faith by appropriate proceedings for which adequate
reserves determined in accordance with GAAP have been established (and as to
which the property subject to any such Lien is not yet subject to foreclosure,
sale or loss on account thereof), (c) Liens in respect of property imposed
by law arising in the ordinary course of business such as materialmen's,
mechanics', warehousemen's, carrier's, landlords' and other nonconsensual
statutory Liens which are not yet due and payable, which have been in existence
less than 90 days or which are being contested in good faith by appropriate
proceedings for which adequate reserves determined in accordance with GAAP have
been established (and as to which the property subject to any such Lien is not
yet subject to foreclosure, sale or loss on account thereof), (d) pledges
or deposits made in the ordinary course of business to secure payment of
worker's compensation insurance, unemployment insurance, pensions or social
security programs, (e) Liens arising from good faith deposits in connection
with or to secure performance of tenders, bids, leases, government contracts,
performance and return-of-money bonds and other similar obligations incurred in
the ordinary course of business (other than obligations in respect of the
payment of borrowed money), (f) Liens arising from good faith deposits in
connection with or to secure performance of statutory obligations and surety and
appeal bonds, (g) easements, rights-of-way, restrictions (including zoning
restrictions), minor defects or irregularities in title and other similar
charges or encumbrances not, in any material respect, impairing the use of the
encumbered property for its intended purposes, (h) judgment Liens that
would not constitute an Event of Default, (i) Liens arising by virtue of
any statutory or common law provision relating to banker's liens, rights of
setoff or similar rights as to deposit accounts or other funds maintained with a
creditor depository institution, (j) any Lien created or arising over any
property which is acquired, constructed or created by such Borrower or its
Subsidiaries, but only if (i) such Lien secures only principal amounts (not
exceeding the cost of such acquisition, construction or creation) raised for the
purposes of such acquisition, construction or creation, together with any costs,
expenses, interest and fees incurred in relation thereto or a guarantee given in
respect thereof, (ii) such Lien is created or arises on or before 180 days
after the completion of such acquisition, construction or creation,
(iii) such Lien is confined solely to the property so acquired, constructed
or created and any improvements thereto and (iv) the aggregate principal amount
of all Indebtedness at any one time outstanding that is secured by such Liens
shall not exceed (A) in the case of the Company and its Subsidiaries,
$50,000,000 and (B) in the case of any other Borrower and its Subsidiaries,
$25,000,000, (k) any Lien on Margin Stock, (l)  Liens with respect to
the Indebtedness evidenced by the FMB Indenture, but only to the extent of the
Insured Series First Mortgage Bonds, and the "permitted encumbrances" under
the FMB Indenture, (m) with respect to the Company and PSNM, the assignment
of, or Liens on, accounts receivable in connection with PSNM Accounts Receivable
Securitization and the filing of related financing statements under the Uniform
Commercial Code of the applicable jurisdictions, (n) with respect to First
Choice, (i) the assignment of, or Liens on, accounts receivable in connection
with First Choice Securitization and the filing of related financing statements
under the Uniform Commercial Code of the applicable jurisdictions and (ii) other
Liens in connection with the Constellation Agreement, (o) the assignment
of, or Liens on, demand, energy or wheeling revenues, or on capacity reservation
or option fees, payable to such Borrower or any of its Subsidiaries with respect
to any wholesale electric service or transmission agreements, the assignment of,
or Liens on, revenues from energy services contracts, and the assignment of, or
Liens on, 

     

    
      
         

      

      
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    capacity
reservation or option fees payable to such Borrower or such Subsidiary with
respect to asset sales permitted herein, (p) Liens on assets of TNMP securing
the TNMP First Mortgage Bonds in an aggregate principal amount not to exceed
$400,000,000 at any
one time, (q) any extension, renewal or replacement (or successive
extensions, renewals or replacements), as a whole or in part, of any Liens
referred to in the foregoing clauses (a) through (p), for amounts not
exceeding the principal amount of the Indebtedness secured by the Lien so
extended, renewed or replaced, provided that such extension, renewal or
replacement Lien is limited to all or a part of the same property or assets that
were covered by the Lien extended, renewed or replaced (plus improvements on
such property or assets), (r) Liens on Property that is subject to a Material
Lease that is classified as an operating lease as of the Closing Date but which
is subsequently converted into a capital lease, (s) Liens securing obligations
under Hedging Agreements entered into in the ordinary course of business and not
for speculative purposes, (t) Liens granted by bankruptcy-remote special purpose
Subsidiaries to secure stranded cost securitization bonds, and (u) Liens on
Property, in addition to those otherwise permitted by clauses (a) through
(t) above, securing, directly or indirectly, Indebtedness or obligations of such
Borrower and its Subsidiaries arising pursuant to other agreements entered into
in the ordinary course of business which do not exceed, in the aggregate at any
one time outstanding, (i) in the case of the Company and its Subsidiaries,
$50,000,000 and (ii) in the case of any other Borrower and its Subsidiaries,
$25,000,000.

    

    2.           Conditions
Precedent.  This Amendment shall be effective upon satisfaction
of the following conditions precedent:

    

    (a)           Receipt
by the Administrative Agent of documentation evidencing the TNMP First Mortgage
Bonds on terms satisfactory to the Administrative Agent;

    

    (b)           Receipt
by the Administrative Agent of copies of this Amendment duly executed by each
Borrower and the Required Lenders; and

    

    (c)           Payment
to each Lender (other than a Defaulting Lender) executing this Amendment on or
prior to March 3, 2009 of an amendment fee equal to .10% of such Lender's
Commitment.

    

    3.           Ratification of Credit
Agreement.  The term "Credit Agreement" as used in each of the
Credit Documents shall hereafter mean the Credit Agreement as amended by this
Amendment.  Except as herein specifically agreed, the Credit Agreement
is hereby ratified and confirmed and shall remain in full force and effect
according to its terms.

    

    4.           Authority/Enforceability.  Each
Borrower represents and warrants as follows:

    

    (a)           It
has taken all necessary action to authorize (i) the execution, delivery and
performance of this Amendment and (ii) the incurrence of the Indebtedness
evidenced by the TNMP First Mortgage Bonds.

    

    (b)           This
Amendment has been duly executed and delivered by such Person and constitutes
such Person's legal, valid and binding obligations, enforceable in accordance
with its terms, except as such enforceability may be subject to (i) bankruptcy,
insolvency, reorganization, fraudulent conveyance or transfer, moratorium or
similar laws affecting creditors' rights 

     

    
      
         

      

      
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    generally
and (ii) general principles of equity (regardless of whether such enforceability
is considered in a proceeding at law or in equity).

    

    (c)           No
consent, approval, authorization or order of, or filing, registration or
qualification with, any court or governmental authority or third party is
required in connection with the execution, delivery or performance by such
Person of this Amendment.

    

    5.           Representations and
Warranties.  Each Borrower represents and warrants to the
Lenders that (a) the representations and warranties of such Borrower set
forth in Section 6 of the Credit Agreement are true and correct as of the
date hereof, unless they specifically refer to an earlier date, (b) no
event has occurred and is continuing which constitutes a Default or an Event of
Default, and (c) it has no claims, counterclaims, offsets, credits or
defenses to its obligations under the Credit Documents or to the extent it has
any they are hereby released in consideration of the Lenders entering into this
Amendment.

    

    6.           No
Conflicts.  Neither the execution and delivery of this
Amendment, nor the consummation of the transactions contemplated herein, nor
performance of and compliance with the terms and provisions hereof by any
Borrower will (a) violate, contravene or conflict with any provision of its
respective articles or certificate of incorporation, bylaws or other
organizational or governing document, (b) violate, contravene or conflict
with any law, rule, regulation, order, writ, judgment, injunction, decree or
permit applicable to a Borrower, (c) violate, contravene or conflict with
contractual provisions of, or cause an event of default under, any indenture,
loan agreement, mortgage, deed of trust, contract or other agreement or
instrument to which a Borrower is a party or by which it or its properties may
be bound or (d) result in or require the creation of any Lien upon or with
respect to a Borrower's properties.

    

    7.           Counterparts/Telecopy.  This
Amendment may be executed in any number of counterparts, each of which when so
executed and delivered shall be an original, but all of which shall constitute
one and the same instrument.  Delivery of executed counterparts by
telecopy shall be effective as an original.

    

    8.           GOVERNING
LAW.  THIS
AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.

    

    

    

    

    

    

    [remainder
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    Each of
the parties hereto has caused a counterpart of this Amendment to be duly
executed and delivered as of the date first above written.

    

    

    BORROWERS:                                                      
    PNM RESOURCES, INC.,

    a New
Mexico corporation

    

    

    By:           /s/ Terry R.
Horn                                                                

    Name:      Terry R.
Horn                                                                

    Title:        Vice President and
Treasurer

    

    

    FIRST CHOICE POWER,
L.P.,

    a Texas
limited partnership

    By: First
Choice Power GP, LLC,

    its
general partner

    

    

    By:           /s/ Terry R.
Horn                                                                

    Name:      Terry R.
Horn                                                                

    Title:        Vice President and
Treasurer

    

    

    

    

    ADMINISTRATIVE

    AGENT:                                                                   
     BANK OF AMERICA,
N.A.,

    as
Administrative Agent

    

    

    By:           /s/ Richard L.
Stein                                                                

    Name:      Richard L.
Stein                                                                

    Title:        Senior Vice
President                                                                

    
      
        
           

          PNM
RESOURCES, INC.

          THIRD
AMENDMENT TO CREDIT AGREEMENT

        

         

      

      
         

        
          

        

      

      
         

      

    

    LENDERS:                                                                 
   BANK OF
AMERICA, N.A.,

    as a
Lender and L/C Issuer

    

    

    By:           /s/ Richard L.
Stein                                                                

    Name:      Richard L.
Stein                                                                

    Title:        Senior Vice
President                                                                

    

    

    WACHOVIA BANK, NATIONAL
ASSOCIATION,

    as a
Lender and L/C Issuer

    

    

    By:           /s/ Frederick W.
Price                                                                

    Name:      Frederick W.
Price                                                                

    Title:        Managing
Director                                                                

    

    

    UNION
BANK OF CALIFORNIA, N.A.

    

    

    By:           /s/ Efrain
Soto                                                                

    Name:      Efrain
Soto                                                                

    Title:        Vice
President                                                                

    

    

    JPMORGAN
CHASE BANK, N.A.

    

    

    By:           /s/ Helen D.
Davis                                                                

    Name:      Helen D.
Davis                                                                

    Title:        Vice
President                                                                

    

    

    CITIBANK,
N.A.

    

    

    By:           /s/ Todd C.
Davis                                                                

    Name:      Todd C.
Davis                                                                

    Title:        Director, Global
Power

    

    

    WELLS
FARGO BANK, N.A.

    

    

    By:           /s/ Yann
Blindert                                                                           

    Name:      Yann
Blindert                                                                

    Title:        Assistant Vice
President

    

    

    
      
        
           

          PNM
RESOURCES, INC.

          THIRD
AMENDMENT TO CREDIT AGREEMENT

        

      

      
         

        
          

        

      

      
         

      

    

    MERRILL
LYNCH BANK USA

    

    

    By:           /s/ Louis
Adler                                                                

    Name:      Louis
Adler                                                                

    Title:        First Vice
President                                                                

    

    

    MORGAN
STANLEY BANK

    

    

    By:           /s/ Melissa
James                                                                

    Name:      Melissa
James                                                                

    Title:        Authorized
Signatory                                                                

    

    

    UBS
LOAN FINANCE LLC

    

    

    By:           /s/ Irja R.
Otsa               /s/
Mary E.
Evans                                                                           

    Name:      Irja R. Otsa                     Mary E.
Evans      

    Title:       
Associate
Director      Associate
Director

    

    

    LEHMAN
BROTHERS BANK, FSB

    

    

    By:          ________________________________                                                      

    Name:     ________________________________                                                                      

    Title:       ________________________________                                                                   

    

    

    WILLIAM
STREET COMMITMENT CORPORATION

    

    

    By:           /s/ Mark
Walton                                                                

    Name:      Mark
Walton                                                                

    Title:        Assistant Vice
President

    

    

    CREDIT
SUISSE, CAYMAN ISLANDS BRANCH

    

    

    By:           /s/ James
Moran          /s/ Nupur
Kumar                                                                           

    Name:      James
Moran            
   Nupur Kumar      

    Title:       
Managing
Director      Vice President   

    

    

    

    
      
        
           

          PNM
RESOURCES, INC.

          THIRD
AMENDMENT TO CREDIT AGREEMENT

        

      

      
         

        
          

        

      

      
         

      

    

    

    

    U
S BANK NATIONAL ASSOCIATION

    

    

    By:          ______________________________                                                      

    Name:     ______________________________                                                                      

    Title:       ______________________________                                                                    

    

    

    HSBC
BANK USA, NATIONAL ASSOCIATION

    

    

    By:          ______________________________                                                      

    Name:     ______________________________                                                                     

    Title:       ______________________________                                                                    

    

    

    THE
BANK OF NEW YORK MELLON

    

    

    By:           /s/ Mark W.
Rogers                                                                

    Name:      Mark  W.
Rogers                                                                

    Title:        Vice
President                                                                

    

    

    ROYAL
BANK OF CANADA

    

    

    By:         ______________________________                                                       

    Name:    ______________________________                                                                       

    Title:      ______________________________                                                                     

    

    

    COMPASS
BANK

    

    

    By:     
   ______________________________                                                        

    Name:    ______________________________                                                                       

    Title:      ______________________________                                                                     

    

    

    SOUTHWEST
SECURITIES BANK

    

    

    By:           /s/ Lonnie
Warren                                                                

    Name:      Lonnie
Warren                                                                

    Title:        Regional
President                                                                

    
      
        
           

          PNM
RESOURCES, INC.

          THIRD
AMENDMENT TO CREDIT AGREEMENT

        

         

      

      
         

        
          

        

      

      
         

      

    

    BANK
OF ALBUQUERQUE, N.A.

    

    

    By:       
 _____________________________                                                           

    Name:  
 _____________________________                                                                         

    Title:     
_____________________________                                                                       

    

    BANK
HAPOALIM BM

    

    By:        ______________________________                                                        

    Name:   ______________________________                                                                        

    Title:     ______________________________                                                                      

    

    

    

    

    

    

    
      
        
           

          PNM
RESOURCES, INC.

          THIRD
AMENDMENT TO CREDIT AGREEMENTexh10-2_031609.htm

    

     

    Exhibit
10.2

     

     

    AMENDMENT
NO. 2

    to

    CREDIT
AGREEMENT

     

    THIS
AMENDMENT NO. 2 TO CREDIT AGREEMENT (the “Amendment”) is made
as of March 10, 2009 by and among TEXAS-NEW MEXICO POWER COMPANY (the “Borrower”), the
institutions from time to time parties thereto as Lenders (the “Lenders”), and
JPMORGAN CHASE BANK, N.A., in its capacity as Administrative Agent for itself
and the other Lenders (the “Administrative
Agent”) under that certain Credit Agreement dated as of May 15, 2008 by
and among the Borrower, the financial institutions party thereto, and the
Administrative Agent (as the same may be amended, restated, supplemented or
otherwise modified from time to time, the “Credit
Agreement”).  Defined terms used herein and not otherwise
defined herein shall have the meaning given to them in the Credit
Agreement.

     

    WITNESSETH

     

    WHEREAS,
the Borrower, the Lenders, and the Administrative Agent are parties to the
Credit Agreement; and

     

    WHEREAS,
the Borrower has requested that the Administrative Agent and the requisite
number of Lenders under Section 11.6 of the
Credit Agreement amend the Credit Agreement on the terms and conditions set
forth herein; and

     

    WHEREAS,
the Borrower, the requisite number of Lenders under Section 11.6 of the
Credit Agreement and the Administrative Agent have agreed to amend the Credit
Agreement on the terms and conditions set forth herein;

     

    NOW,
THEREFORE, in consideration of the premises set forth above, the terms and
conditions contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
have agreed to the following amendments to the Credit Agreement:

     

    1.    
Amendments to the Credit
Agreement.  Effective as of March 10, 2009 (the “Effective Date”) and
subject to the satisfaction of the condition precedent set forth in Section 2 below, the
Credit Agreement is hereby amended as follows:

     

    
      	
              1.1.  

            	
              Section 1.1 to
      the Credit Agreement is amended to insert the following definitions in
      alphabetical order:

            

    

     

    “First Mortgage Bond
Trustee” has the meaning set forth in the definition of “Note Facilities
Documentation”.

     

    “1999 Indenture” has
the meaning set forth in the definition of “Note Facilities
Documentation”.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “2009 Term Loan Credit
Agreement” means a term loan credit agreement to be dated on or before
April 1, 2009, between the Borrower and one or more lenders parties thereto,
including Union Bank, N.A. or any of its affiliates, individually and/or as
agent on behalf of such lenders, as it may be amended, supplemented, extended or
otherwise modified form time to time; provided that the Administrative Agent and
the Lenders shall have received satisfactory evidence that all of the
obligations outstanding under the 2008 Term Loan Credit Agreement shall have
been paid in full in cash, and the 2008 Term Loan Credit Agreement shall have
been terminated, prior to or substantially concurrently with the initial
incurrence of Indebtedness pursuant to the 2009 Term Loan Credit
Agreement.

     

    
      	
              1.2.  

            	
              Section 1.1 to
      the Credit Agreement is hereby amended to delete the definition of “Note Facilities
      Documentation” in its entirety, and to substitute the following
      therefor:

            

    

     

    “Note Facilities
Documentation” means (1) the First Mortgage Indenture dated on or before
April 1, 2009, between the Borrower and The Bank of New York Mellon Trust
Company, N.A., as Trustee (together with its permitted successors and assigns in
such capacity, the “First Mortgage Bond
Trustee”), the First Supplemental Indenture dated on or before April 1,
2009 issued pursuant thereto and any other supplemental indentures, notes or
other securities issued pursuant thereto or in connection therewith, as the same
may be amended, supplemented, extended or otherwise modified from time to time,
and/or (2) the Indenture dated as of January 1, 1999, between the Borrower and
The Bank of New York Trust Company, N.A. (as successor to JPMorgan Chase Bank,
N.A., formerly JPMorgan Chase Bank, as successor to Chase Bank of Texas, N.A.),
as Trustee (the “1999
Indenture”), the Third Supplemental Indenture issued pursuant thereto and
any other supplemental indentures, notes or other securities issued pursuant
thereto or in connection therewith, as the same may be amended, supplemented,
extended or otherwise modified from time to time; provided that the
Administrative Agent and the Lenders shall have received satisfactory evidence
that all of the obligations outstanding under the 2008 Term Loan Credit
Agreement shall have been paid in full in cash, and the 2008 Term Loan Credit
Agreement shall have been terminated, prior to or substantially concurrently
with the initial incurrence of Indebtedness pursuant to the Note Facilities
Documentation.

     

    
      	
              1.3.  

            	
              Section 8.5 to
      the Credit Agreement is hereby amended to delete subclause (q)
      thereof in its entirety, and to substitute the following
      therefor:

            

    

     

    (q)
Liens upon any property in favor of the First Mortgage Bond Trustee securing
Indebtedness under the Note Facilities Documentation and/or the 2009 Term Loan
Credit Agreement; provided that in the event that the aggregate principal amount
of Indebtedness secured by such Liens shall exceed $318,000,000 (i) the Borrower
Obligations shall concurrently be secured equally and ratably with (or prior to)
such Indebtedness so long as such other Indebtedness shall be secured and (ii)
the Borrower, the First Mortgage Bond Trustee and the Administrative Agent, for
the benefit of the Lenders, shall have entered into such supplemental indentures
and other documentation deemed necessary by the Administrative Agent in respect
of such Lien on terms and 

     

    
      
        
        

      

      
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    conditions
acceptable to the Administrative Agent (including, without limitation, with
respect to the voting of claims and release or modification of any such Lien on
all or any portion of the collateral thereunder), and

     

    
      	
              1.4.  

            	
              Section 8.7 to
      the Credit Agreement is hereby amended to delete the current Section 8.7 in
      its entirety and to substitute the following new Section 8.7
      therefor:

            

    

     

    The
Borrower will not (nor will it permit any of its Subsidiaries to) enter into any
contractual obligation that limits the ability (a) of any Subsidiary of the
Borrower to make Restricted Payments to the Borrower or to otherwise transfer
property to the Borrower or (b) of the Borrower to create, incur, assume or
suffer to exist Liens on its property in favor of the Administrative Agent, for
the benefit of the Lenders, other than (i) any such contractual obligation
contained in the Credit Documents; (ii) any such contractual obligation
contained in the “Credit Documents” as defined in the 2008 Term Loan Credit
Agreement (as such contractual obligations in such “Credit Documents” exist as
of the date hereof without giving effect to any subsequent amendment or other
modification to such contractual obligations); (iii) any such contractual
obligation contained in the “Credit Documents” (or any similar term) defined in
the 2009 Term Loan Credit Agreement to the extent such contractual obligations
in such “Credit Documents” (or any similar term) shall be no less favorable to
the Administrative Agent and the Lenders than such contractual obligations set
forth in the 2008 Term Loan Credit Agreement as of the date hereof without
giving effect to any subsequent amendment or other modification to such
contractual obligations; and (iv) any such contractual obligation contained in
the Note Facilities Documentation (which contractual obligation shall be on
terms no less favorable to the Administrative Agent and the Lenders than such
contractual obligations set forth in the 1999 Indenture, the draft Third
Supplemental Indenture thereto (draft stamp:  “Draft of 2/13/2009
61544.5”) as provided to the Administrative Agent and the lenders on February
18, 2008, and the draft First Mortgage Indenture (draft stamp:  “TS
Draft 03/04/09” and “2018235 v.9”) as provided to the Administrative Agent and
the Lenders on March 4, 2009, without giving effect to any amendment or other
modification to such contractual obligations).

     

    2.    
Conditions of
Effectiveness.  The effectiveness of this Amendment is subject
to the conditions precedent that the Administrative Agent shall have received
the following:

     

    
      	
              (A)  

            	
              duly
      executed originals of this Amendment from the Borrower, the requisite
      number of Lenders under Section 11.6 of
      the Credit Agreement and the Administrative
  Agent;

            

    

     

    
      	
              (B)  

            	
              the
      Amendment Fee (as defined below) payable for the account of each Lender
      executing this Amendment; and

            

    

     

    
      	
              (C)  

            	
              such
      other documents, instruments and agreements as the Administrative Agent
      may reasonably request.

            

    

     

    3.    
Amendment
Fee.  Each Lender that delivers a duly executed signature page
to this Amendment to the Administrative Agent’s counsel, Sidley Austin LLP,
Attention:  Praju Tuladhar, by facsimile or e-mail PDF copy
(fax:  312-853-7036; e-mail:  ptuladhar 

     

    
      
        
        

      

      
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    @sidley.com)
by such time as requested by the Administrative Agent, shall be entitled to an
amendment fee (the “Amendment Fee”) equal
to 0.10% (10 basis points) multiplied by such consenting Lender’s Commitment
(calculated after giving effect to the reductions set forth in Section 4
below).

     

    4.    
Reductions of
Commitments.  The Borrower has notified the Administrative
Agent and the Lenders of its desire to permanently reduce the Revolving
Committed Amount to $75,000,000 in accordance with Section 2.1(d) of the
Credit Agreement.  On the terms set forth herein, effective as of the
date of, and substantially concurrently with, the initial incurrence of
Indebtedness pursuant to the Note Facilities Documentation (as such term is
defined after giving effect to this Amendment), Schedule 1.1(a) of
the Credit Agreement is hereby amended and restated in its entirety as set forth
on Attachment A attached hereto.

     

    5.    
Representations and
Warranties of the Borrower.

     

    
      	
              (A)  

            	
              The
      Borrower hereby represents and warrants that (i) this Amendment and the
      Credit Agreement, as previously executed and as amended hereby, constitute
      legal, valid and binding obligations of the Borrower and are enforceable
      against the Borrower in accordance with their terms (except as
      enforceability may be limited by bankruptcy, insolvency, or similar laws
      affecting the enforcement of creditors’ rights generally) and (ii) no
      Default or Event of Default has occurred and is
  continuing.

            

    

     

    
      	
              (B)  

            	
              Upon
      the effectiveness of this Amendment and after giving effect hereto, the
      Borrower hereby reaffirms all covenants, representations and warranties
      made in the Credit Agreement as amended hereby, and agrees that all such
      covenants, representations and warranties shall be true and correct as of
      the effective date of this Amendment (unless such representation and
      warranty is made as of a specific date, in which case such representation
      and warranty shall be true and correct as of such
  date).

            

    

     

    6.    
References to the Credit
Agreement.

     

    
      	
              (A)  

            	
              Upon
      the effectiveness of Section 1
      hereof, on and after the date hereof, each reference in the Credit
      Agreement (including any reference therein to “this Credit Agreement,”
      “hereunder,” “hereof,” “herein” or words of like import referring thereto)
      or in any other Credit Document shall mean and be a reference to the
      Credit Agreement as amended hereby.

            

    

     

    
      	
              (B)  

            	
              Except
      as specifically amended above, the Credit Agreement and all other
      documents, instruments and agreements executed and/or delivered in
      connection therewith, shall remain in full force and effect, and are
      hereby ratified and confirmed.

            

    

     

    
      	
              (C)  

            	
              The
      execution, delivery and effectiveness of this Amendment shall not, except
      as expressly provided herein, operate as a waiver of any right, power or
      remedy of the Administrative Agent or the Lenders, nor constitute a waiver
      of any provision of the Credit Agreement or any other documents,
      instruments and agreements executed and/or delivered in connection
      therewith.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    7.    
GOVERNING
LAW.  THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.

     

    8.    
Headings.  Section
headings in this Amendment are included herein for convenience of reference only
and shall not constitute a part of this Amendment for any other
purpose.

     

    9.    
Counterparts.  This
Amendment may be executed by one or more of the parties to this Amendment on any
number of separate counterparts and all of said counterparts taken together
shall be deemed to constitute one and the same instrument.

     

    [REMAINDER OF PAGE
INTENTIONALLY BLANK]

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, this Amendment has been duly executed as of the day and year
first above written.

    

    

    

    BORROWER:

    

    TEXAS-NEW
MEXICO POWER COMPANY

    a Texas
corporation

    

    

    By:           /s/ Terry R.
Horn                                                                

    Name:      Terry R.
Horn                                                                

    Title:        Vice President &
Treasurer                                                                

    

    

    

    

    
      
        
          Signature
Page to Amendment No. 2

        

         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              LENDERS:

            

    

    

    JPMORGAN CHASE BANK,
N.A.,

    individually
in its capacity as a Lender and in

    its
capacity as Administrative Agent and L/C Issuer

    

    

    By:           /s/ Helen D.
Davis                                                                

    Name:     
Helen D.
Davis                                                                

    Title:        Vice
President                                                                

    

    

    

    UNION BANK OF CALIFORNIA,
N.A.,

    individually
in its capacity as a Lender and in its capacity as Syndication
Agent

    

    

    By:           /s/ Efrain
Soto                                                                

    Name:      Efrain
Soto                                                                

    Title:        Vice
President                                                                

    

    

    
      
        
          

          Signature
Page to Amendment No. 2

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    SUNTRUST BANK,

    individually
in its capacity as a Lender

    

    

    By:           /s/ Andrew
Johnson                                                                

    Name:      Andrew
Johnson                                                      

    Title:        Director                                                                

    

    

    
      
        
          

          Signature
Page to Amendment No. 2

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    WELLS FARGO BANK,
N.A.,

    individually
in its capacity as a Lender

    

    

    By:           /s/ Yann
Blindert                                                                

    Name:      Yann
Blindert                                                                

    Title:        Assistant Vice
President

    

    

    
      
        
          

          Signature
Page to Amendment No. 2

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    KEYBANK NATIONAL
ASSOCIATION,

    individually
in its capacity as a Lender

    

    

    By:           /s/ Keven D.
Smith                                                                

    Name:      Keven D.
Smith                                                                

    Title:        Senior Vice
President                                                                

    

    

    
      
        
          

          Signature
Page to Amendment No. 2

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    COMPASS BANK,

    individually
in its capacity as a Lender

    

    

    By:         
_________________________                                                           

    Name:     _________________________                                                                      

    Title:       _________________________                                                                    

    

    

    
      
        
          

          Signature
Page to Amendment No. 2

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    SOUTHWEST SECURITIES,
FSB,

    individually
in its capacity as a Lender

    

    

    By:          _________________________                                                      

    Name:     _________________________                                                                      

    Title:       _________________________                                                                    

    

    
      
        
          

          Signature
Page to Amendment No. 2

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    UNITED WESTERN
BANK,

    individually
in its capacity as a Lender

    

    

    By:           /s/ Michael
Saun                                                                

    Name:      Michael
Saun                                                                

    Title:        Senior Vice
President                                                                

    

    

    

    

    

    
      
        
          

          Signature
Page to Amendment No. 2

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    ATTACHMENT
A

    

    

    SCHEDULE
1.1(a)

     

     

    PRO RATA
SHARES

     

    

    
      	
              Lender

            	
              Commitment

            	
              Pro Rata Share

            
	 
      	 
      	 
      
	
              JPMorgan
      Chase Bank, N.A.

            	
              $15,000,000

            	
              20.000000%

            
	
              Union
      Bank of California, N.A.

            	
              $15,000,000

            	
              20.000000%

            
	
              SunTrust
      Bank

            	
              $13,500,000

            	
              18.000000%

            
	
              Wells
      Fargo Bank, N.A.

            	
              $13,125,000

            	
              17.500000%

            
	
              KeyBank
      National Association

            	
              $11,250,000

            	
              15.000000%

            
	
              United
      Western Bank

            	
              $3,375,000

            	
              4.500000%

            
	
              Compass
      Bank

            	
              $1,875,000

            	
              2.500000%

            
	
              Southwest
      Securities, FSB

            	
              $1,875,000

            	
              2.500000%

            
	
              Total

            	
              $75,000,000

            	
              100.000000%

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}]]