SUPPLEMENTAL EMPLOYEE RETIREMENT AGREEMENT FOR JEFFRY E. STERBASupplemental Employee Retirement Agreement • March 2nd, 2009 • Public Service Co of New Mexico • Electric & other services combined • New Mexico
Effective as of March 22, 2000, Public Service Company of New Mexico (“PNM”) and Jeffry E. Sterba (“Employee”) entered into the Supplemental Employee Retirement Agreement for Jeffry E. Sterba (the “Agreement”). Effective as of approximately December 31, 2001, PNM Resources, Inc. (“PNM Resources” or “Company”) became the corporate parent of PNM. Employee became employed by PNM Resources on or about December 31, 2001. Effective January 1, 2005, Employee became employed by PNMR Services Company (“Services”), which also is a subsidiary of PNM Resources. PNM Resources and Services assumed the obligations to pay any benefits accruing to Employee during periods while Employee was employed by PNM Resources or Services and PNM Resources assumed all of the administrative responsibilities imposed upon the “Company” pursuant to this Agreement.
December 8, 2008Retention Bonus Agreement • March 2nd, 2009 • Public Service Co of New Mexico • Electric & other services combined
The Internal Revenue Service has issued informal guidance with respect to payments on a termination of employment due to disability such as the payment pursuant to Section 5 of the Agreement. The Company has determined it is necessary to amend Section 5 of the Agreement to address the issues raised in the Internal Revenue Service guidance and to minimize the risk of a Section 409A violation. In light of the foregoing, the Company proposes to amend the Agreement as follows effective as of January 1, 2009:
