Exhibit 10.52.1
FIRST AMENDMENT
TO THE
PNM RESOURCES, INC.
EXECUTIVE SPENDING ACCOUNT PLAN
Effective as of January 1, 1980, Public Service Company of New Mexico
("PNM") adopted the Amended and Restated Medical Reimbursement Plan of Public
Service Company of New Mexico (the "MERP"). Sponsorship of the MERP was
subsequently transferred from PNM to PNM Resources, Inc. (the "Company") on
November 30, 2002. Effective January 1, 2002, the Company established the
Executive Spending Account (the "ESA"). Effective December 1, 2002, the Company
merged the MERP with and into the ESA and named the combined program the "PNM
Resources, Inc. Executive Spending Account Plan" (the "Plan"). The Plan has been
amended and restated on two occasions, with the most recent restatement being
effective, generally, as of January 1, 2004. By this instrument, the Company now
desires to modify the definition of "Covered Expense" to include the cost of
title insurance and the cost of reasonable transportation and lodging expenses
incurred in connection with financial planning and real estate management.
1. This First Amendment shall be effective as of January 1, 2004.
2. This First Amendment amends only the provisions of the Plan as set forth
herein, and those provisions not expressly amended by this First Amendment shall
continue in full force and effect.
3. Article 2 (Covered Expense) of the Plan is hereby amended and restated
in its entirety to read as follows:
Expenses incurred by the Participant or a Dependent during the
current or preceding Paycheck Year, while covered by the Plan,
for any of the following: (1) medical care as defined in
Section 213(d) of the Code to the extent that no benefits are
payable for such medical care under the Participant's Medical
Insurance (by way of example, and not limitation, medical
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care, dental care, vision care, premiums for medical care and
qualified long-term care (whether paid on a pre-tax or
after-tax basis), transportation primarily for and essential
to medical care, and amounts paid for lodging (not lavish or
extraordinary under the circumstances) while away from home
primarily for and essential to medical care would all be
treated as Covered Expenses under this item (1)); (2) income
tax preparation; (3) estate planning (including preparation of
wills and trusts); (4) financial counseling, but excluding
brokerage fees or commissions; (5) financial management
services (this would include, for example, the services
provided by a management firm that manages your real estate
investments); (6) premiums covering the Participant and his or
her Dependents for accident, disability, life, dependent life,
and/or supplemental insurance (similar to AFLAC), whether paid
for by the Participant as a private party or deducted from the
Participant's salary under a PNM Resources benefit program;
(7) premiums for home, auto, title or personal liability
umbrella insurance; (8) premiums covering the Participant or
Family Members for long-term care insurance, whether paid for
by the Participant as a private party or deducted from the
Participant's salary under a PNM Resources benefit program; or
(9) reasonable transportation and lodging expenses in
connection with the Participant's financial planning and real
estate management, including estate planning, financial
counseling and financial management services as described in
items (3), (4) and (5). An expense that qualifies as a Covered
Expense pursuant to item (1) above, is "incurred" when the
underlying medical care is provided, regardless of when you
are billed or pay for such medical care, unless the medical
care for which you are seeking reimbursement is for insurance
premiums covering medical care or qualified long-term care, in
which case such expense is "incurred" on the date on which you
are billed for the premium. An expense that qualifies as a
Covered Expense pursuant to items (2), (3), (4), (5), (6),
(7), (8) or (9) above, is "incurred" as of the date on which
you are billed for the expense or premium.
IN WITNESS WHEREOF, the Company has caused this First Amendment to be
executed as of this 28 day of April, 2004.
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PNM RESOURCES, INC.
By: /s/ Alice A. Cobb
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Its: Senior Vice President, People Services & Development
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