Txnm Energy Inc PREM14A, filed Dec 18, 2020

Very truly yours,

EVERCORE GROUP L.L.C.

/s/ Sesh Raghavan

Sesh Raghavan, Managing Director

Txnm Energy Inc (TXNM)

PREM14A 2020-12-18 For: 2020-12-18

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Added on October 19, 2026

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Payment of Filing Fee (Check the appropriate box):

	☐ No fee required.

	☒ Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.

	(1)	Title of each class of securities to which transaction applies: Common Stock, no par value

	(2)	Aggregate number of securities to which transaction applies: 86,417,407 shares of common stock, which consist of (a) 85,834,874 shares of outstanding common stock issued and outstanding as of December 15, 2020, (b) 168,061 shares of common stock issuable on the vesting of restricted stock rights outstanding as of December 15, 2020, (c) 322,795 shares of common stock issuable on the vesting of performance shares as of December 15, 2020 (calculated assuming current above target level of performance is achieved) and (d) 91,677 shares of common stock that participants in the PNM Resources, Inc. Executive Savings Plan II have a right to acquire through this plan as of November 30, 2020.

	(3)	Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): In accordance with Exchange Act Rule 0-11(c), the filing fee of $474,235.40 was determined by multiplying .0001091 by the underlying value of the transaction of $4,346,795,572.10, which has been calculated as the sum of: (a) 85,834,874 shares of outstanding common stock issued and outstanding as of December 15, 2020, multiplied by the merger consideration of $50.30 per share, (b) 168,061 shares of common stock issuable on the vesting of restricted stock rights outstanding as of December 15, 2020, multiplied by the merger consideration of $50.30 per share, (c) 322,795 shares of common stock issuable on the vesting of performance shares as of December 15, 2020 (calculated assuming current above target level of performance is achieved), multiplied by the merger consideration of $50.30 per share and (d) 91,677 shares of common stock that participants in the PNM Resources, Inc. Executive Savings Plan II have a right to acquire through this plan as of November 30, 2020, multiplied by the merger consideration of $50.30 per share.

	(4)	Proposed maximum aggregate value of transaction: $4,346,795,572.10

	(5)	Total fee paid: $474,235.40

	☐ Fee paid previously with preliminary materials.

	☐ Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.

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	(4)	Date Filed:

DATE AND TIME:	, , 2021 at 9:00 a.m. Mountain Time
PLACE:	Due to the public health impact of the ongoing coronavirus (COVID-19) pandemic and in accordance with Executive Order 2020-081 issued by the Governor of the State of New Mexico and to support the health and well-being of our shareholders, the special meeting will be held only through a remote communication in a virtual meeting format and will not be held at a physical location. Therefore, you will not be able to attend the special meeting in-person. To be admitted electronically to the special meeting, you must go to the meeting website at www.virtualshareholdermeeting.com/PNM2021 and enter the 16-digit control number found on your proxy card or your voting instruction form. We encourage you to access the special meeting prior to its start time.
WHO CAN VOTE:	You may vote if you were a shareholder of record as of the close of business on , 2020.
ITEMS OF BUSINESS:	(1)	Approve the Agreement and Plan of Merger, dated as of October 20, 2020, or the merger agreement, by and among PNMR, Avangrid and NM Green Holdings, Inc. A copy of the merger agreement is attached as Annex A to the accompanying proxy statement;
	(2)	Approve, by non-binding, advisory vote, certain existing compensation arrangements for PNMR’s named executive officers in connection with the merger contemplated by the merger agreement; and
	(3)	Approve one or more adjournments of the special meeting, if necessary or appropriate, to solicit additional proxies if there are insufficient votes at the time of the special meeting to approve the merger agreement.
VOTING:	On , 2021, we began mailing to our shareholders our proxy materials.
	After reading the proxy statement, please promptly vote by telephone or Internet or by signing and returning the proxy card so that we can be assured of having a quorum present at the meeting and your shares may be voted in accordance with your wishes. See the questions and answers beginning on page 14 of this proxy statement about the meeting (including how to participate in the meeting by webcast as described in Question 3), voting your shares, how to revoke a proxy and how to vote shares via the Internet.

SUMMARY			1
Information About The Companies (Page 26)			1
Recommendation of the PNMR Board (Page 51)			9
The PNMR Special Meeting (Page 27)			9
Opinion of PNMR’s Financial Advisor (Page 53)			11
Interests of PNMR’s Directors and Executive Officers in the Merger (Page 66)			12
Dissenter’s Rights of PNMR Shareholders (Page 62)			12
Delisting and Deregistration of PNMR Common Stock (Page 65)			12
Regulatory Approvals Required for the Merger (Page 60)			12
Material U.S. Federal Income Tax Consequences (Page 72)			13
QUESTIONS AND ANSWERS			14
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS			25
INFORMATION ABOUT THE COMPANIES			26
THE PNMR SPECIAL MEETING			27
Time, Place and Means of Remote Communication			27
Purpose of the Special Meeting			27
Record Date and Quorum			27
Attendance			27
Vote Required			28
Proxies and Revocations			29
Technical Difficulties or Issues Accessing the Virtual Meeting Website			30
Adjournments and Postponements			30
Anticipated Date of Completion of the Merger			31
Solicitation of Proxies; Payment of Solicitation Expenses			31
Questions and Additional Information			31
ADVISORY VOTE ON MERGER-RELATED COMPENSATION FOR PNMR’S NAMED EXECUTIVE OFFICERS			32
ADJOURNMENT OF THE SPECIAL MEETING TO SOLICIT ADDITIONAL PROXIES			33
THE MERGER			34
Background of the Merger			34
PNMR’s Reasons for the Merger			49
Recommendation of the PNMR Board			51
Certain Unaudited Financial Forecasts Prepared by the Management of PNMR			51
Opinion of PNMR’s Financial Advisor			53
Regulatory Approvals Required for the Merger			60
Dissenter’s Rights			62
Financing of the Merger			64
Delisting and Deregistration of PNMR Common Stock			65
INTERESTS OF PNMR’S DIRECTORS AND EXECUTIVE OFFICERS IN THE MERGER			66
Equity Compensation Awards			66
Payments Upon Termination Upon or Following the Closing of the Merger			68
Golden Parachute Compensation			69
Retention			71
Executive Officer Positions with PNMR Following the Merger			71
Director Positions with Avangrid Following the Merger			71
Indemnification; Directors’ and Officers’ Insurance			71
MATERIAL UNITED STATES FEDERAL INCOME TAX CONSEQUENCES			72
THE MERGER AGREEMENT			77
The Merger			77
Effects of the Merger			77

Merger Consideration			78
Dissenting Shares			78
Surrender of PNMR Shares			78
Other Covenants and Agreements			80
Treatment of PNMR Restricted Stock Rights, Performance Shares, Direct Plan, and Directors Deferred Plan			81
Representations and Warranties			82
Material Adverse Effect			84
Covenants Regarding Conduct of Business by PNMR Pending the Merger			85
Covenants Regarding Conduct of Business by Avangrid and Merger Sub Pending the Merger			89
No Solicitation by PNMR			90
No Solicitation by Avangrid			92
PNMR Board Recommendation			93
Efforts to Obtain PNMR Shareholder Approval			94
Employee Benefits and Service Credit			94
PNMR Indebtedness			96
Regulatory Approvals and Other Consents			97
Conditions That Must Be Satisfied or Waived for the Merger to Occur			98
Termination of the Merger Agreement			100
Expenses			103
Modification, Amendment or Waiver			103
Governing Law			103
Specific Performance			103
MARKET PRICES AND DIVIDEND DATA			104
Dividends			104
BENEFICIAL OWNERSHIP OF SECURITIES			105
Security Ownership of Certain Beneficial Owners and Management of PNMR			105
FUTURE SHAREHOLDER PROPOSALS			107
WHERE YOU CAN FIND ADDITIONAL INFORMATION			107
OTHER MATTERS			108
GLOSSARY OF TERMS AND ABBREVIATIONS			109

	Description of Proposal	Proposal discussed on following pages:	Board Recommendation
PROPOSAL 1	Approval of the merger agreement	77	FOR

			See the section entitled “The Merger—PNMR’s Reasons for the Merger” beginning on page 49 of this proxy statement.

PROPOSAL 2	Approval, by non-binding, advisory vote, of certain existing compensation arrangements for PNMR’s named executive officers in connection with the merger	32	FOR

PROPOSAL 3	Approval of one or more adjournments of the special meeting, if necessary or appropriate, to solicit additional proxies if there are insufficient votes at the time of the special meeting to approve the merger agreement	33	FOR

			By Order of the Board of Directors,

			Patricia K. Collawn
			Chairman, President and Chief Executive Officer

Proposal	Affirmative Vote Requirement	Effect of Abstentions
PROPOSAL 1 - Approve the merger agreement	Majority of shares of PNMR common stock outstanding as of , 2020, the record date for the special meeting.	Because the affirmative vote required to approve the merger agreement is based upon the total number of outstanding shares of PNMR common stock, if you fail to submit a proxy or vote via the Internet during the special meeting, or abstain, or if your shares of PNMR common stock are held through a bank, broker or other nominee and you do not provide your bank, broker or other nominee with instructions, as applicable, this will have the same effect as a vote “AGAINST” the proposal to approve the merger agreement.

	2020E	2021E	2022E	2023E	2024E
	(in millions except per share data)
Operating Income Excluding Regulatory Disallowances⁽¹⁾	$286	$298	$346	$384	$408
Depreciation and Amortization	$276	$298	$324	$354	$380
Ongoing Net Income	$177	$198	$220	$240	$251
Ongoing EPS	$2.21⁽²⁾	$2.30	$2.56	$2.79	$2.90
If Converted Ongoing EPS⁽³⁾	$2.22	$2.30	$2.49	$2.71	$2.82
Capital Expenditures	$806	$976	$760	$753	$649

Method			Implied Per Share Equity Value Reference Ranges
Perpetuity Growth Rate Method			$30.44 - $40.77
Terminal Multiple Method (P/E Multiple)			$39.85 - $50.26
Terminal Multiple Method (EV/EBITDA Multiple)			$36.38 - $54.53

Metric			Implied Equity Value Range Per Share
2021 P/E			$36.20 - $43.10
2022 P/E			$36.72 - $44.19
2021 EV/EBITDA			$29.86 - $43.80
2022 EV/EBITDA			$34.09 - $49.74

Metric			Implied Equity Value Range Per Share
FY1 Price / Earnings			$46.52 - $55.39
FY2 Price / Earnings			$45.97 - $54.02
FY1 Enterprise Value / EBITDA			$29.30 - $42.44
FY2 Enterprise Value / EBITDA			$26.37 - $43.80

Name	Restricted Stock Rights (not deferred) (#)	Restricted Stock Rights (deferred) (#)	Total Value of Restricted Stock Rights⁽¹⁾ ($)
Vicky A. Bailey	3,124	—	157,137.20
Norman P. Becker	—	7,686	386,605.80
Renae E. Conley	—	3,124	157,137.20
Alan J. Fohrer	—	7,686	386,605.80
Sidney M. Gutierrez	3,124	—	157,137.20
James A. Hughes	—	5,342	268,702.60
Maureen T. Mullarkey	—	7,686	386,605.80
Donald K. Schwantz	3,124	—	157,137.20
Bruce W. Wilkinson	3,124	—	157,137.20

Name			Restricted Stock Rights (#)
Patricia K. Collawn			26,521
Charles N. Eldred			7,321
Joseph D. Tarry			2,175
Patrick V. Apodaca			4,030
Chis M. Olson			3,107
Ronald N. Darnell			3,052

Executive Officer	Target Performance Shares (#)	Maximum Performance Shares (#)
Patricia K. Collawn	114,656	229,314
Charles N. Eldred	34,094	68,190
Joseph D. Tarry	11,161	22,326
Patrick V. Apodaca	14,797	29,594
Chis M. Olson	12,101	24,206
Ronald N. Darnell	11,891	23,785

Name	Cash⁽¹⁾ ($)	Equity⁽²⁾ ($)	Perquisites/ Benefits⁽³⁾ ($)	Other⁽⁴⁾ ($)	Total($)
Patricia K. Collawn	9,918,213	9,904,875	49,377	20,000	19,892,465
Charles N. Eldred	4,395,484	2,906,938	31,757	20,000	7,354,179
Joseph D. Tarry	2,166,068	944,030	39,421	20,000	3,169,519
Patrick V. Apodaca	2,481,921	1,310,214	39,578	20,000	3,851,713
Ronald N. Darnell	1,871,375	1,043,272	52,201	20,000	2,986,848
Chris M. Olson	2,023,751	1,059,620	38,868	20,000	3,142,239

Date			Common Stock Closing Price
October 20, 2020			$45.74
December 15, 2020			$49.15

Name and Address	Voting Authority			Dispositive Authority
Name and Address	Sole	Shared	None	Sole	Shared	Total Amount	Percentage of Class
BlackRock, Inc.⁽¹⁾ 55 East 52nd Street New York, NY 10022	9,513,953	—	—	9,703,374	—	9,703,374	11.30%
The Vanguard Group⁽²⁾ 100 Vanguard Blvd. Malvern, PA 192355	97,686	29,692	—	9,235,028	96,338	9,331,366	10.87%

Name	Amount and Nature of Shares Beneficially Owned^(a)
Name	Shares Held	Right to Acquire within 60 Days^(b)	Total Shares Beneficially Owned	Percent of Shares Beneficially Owned	Deferred RSAs^(c)
Non-Employee Directors:
Vicky A. Bailey	2,218	3,124	5,342	*	—
Norman P. Becker	8,541	—	8,541	*	7,686
E. Renae Conley	19,972	—	19,972	*	3,124
Alan J. Fohrer	18,838	—	18,838	*	7,686
Sidney M. Gutierrez	12,136	3,124	15,260	*	—
James A. Hughes	—	—	—	*	5,342
Maureen T. Mullarkey	9,926	—	9,926	*	7,686
Donald K. Schwanz	38,368	3,124	41,492	*	—
Bruce W. Wilkinson	48,955	3,124	52,079	*	—
NEOs:
Patricia K. Collawn	558,518	109,113	667,631	*	—
Charles N. Eldred	114,717	14,834	129,551	*	—
Joseph T. Tarry	13,852	2,175	16,027	*	—
Patrick V. Apodaca	71,662	4,030	75,692	*	—
Ronald N. Darnell	28,425	3,052	31,477	*	—
Chris M. Olson	12,831	3,107	15,938	*	—
Directors and Executive Officers as a Group (15 persons)	958,959	148,807	1,107,766	1.29%	31,524

Avangrid			Avangrid, Inc., a New York Corporation
Broadridge			Broadridge Investor Communication Solutions, Inc.
CFIUS			Committee on Foreign Investment in the United States
DOJ			Department of Justice
EBITDA			Earnings before interest, taxes, depreciation and amortization
ESG			Environmental, Social and Governance
Exchange Act			The Securities Exchange Act of 1934, as amended
FCC			Federal Communications Commission
FERC			Federal Energy Regulatory Commission
FPA			Federal Power Act
FTC			Federal Trade Commission
GAAP			Generally Accepted Accounting Principles
Georgeson			Georgeson, Inc.
HSR			Hart-Scott-Rodino Antitrust Improvements Act of 1976
IRS			Internal Revenue Service
KPMG LLP			KPMG LLP
NYSE			New York Stock Exchange
NMBCA			New Mexico Business Corporation Act
NMPRC			New Mexico Public Regulation Commission
PNM			Public Service Company of New Mexico, a New Mexico corporation
PNMR			PNM Resources, Inc., a New Mexico Corporation
PUCT			Public Utility Commission of Texas
PUHCA 2005			Public Utility Holding Company Act of 2005
SEC			United States Securities and Exchange Commission
TNMP			Texas-New Mexico Power Company, a Texas corporation
USRPHC			United States real property holding corporation

		Page
Article I THE MERGER		A-1
SECTION 1.1	Definitions	A-1
SECTION 1.2	The Merger	A-5
SECTION 1.3	Closing	A-5
SECTION 1.4	Effective Time	A-5
SECTION 1.5	Articles of Incorporation; Bylaws	A-5
SECTION 1.6	Directors and Officers	A-6

Article II EFFECT OF THE MERGER ON THE CAPITAL STOCK OF THE CONSTITUENT CORPORATIONS		A-6
SECTION 2.1	Effect on Capital Stock	A-6
SECTION 2.2	Treatment of Company Restricted Stock Rights, Performance Shares, Direct Plan, and Directors Deferred Plan	A-6
SECTION 2.3	Dissenting Shares	A-9
SECTION 2.4	Surrender of Company Shares	A-9
SECTION 2.5	Adjustments	A-12

Article III REPRESENTATIONS AND WARRANTIES OF THE COMPANY		A-12
SECTION 3.1	Organization and Qualification; Subsidiaries	A-13
SECTION 3.2	Articles of Incorporation and Bylaws	A-13
SECTION 3.3	Capitalization	A-13
SECTION 3.4	Authority	A-14
SECTION 3.5	No Conflict; Required Filings and Consents	A-15
SECTION 3.6	Compliance	A-15
SECTION 3.7	SEC Filings; Financial Statements; Undisclosed Liabilities	A-15
SECTION 3.8	Contracts	A-17
SECTION 3.9	Absence of Certain Changes or Events	A-18
SECTION 3.10	Absence of Litigation	A-19
SECTION 3.11	Employee Benefit Plans	A-19
SECTION 3.12	Labor and Employment Matters	A-20
SECTION 3.13	Insurance	A-21
SECTION 3.14	Properties	A-21
SECTION 3.15	Tax Matters	A-22
SECTION 3.16	Intellectual Property	A-24
SECTION 3.17	Environmental Matters	A-24
SECTION 3.18	Opinion of Financial Advisor	A-25
SECTION 3.19	Regulatory Matters	A-25
SECTION 3.20	Brokers	A-26
SECTION 3.21	Takeover Statutes	A-26
SECTION 3.22	Energy Price Risk Management	A-26
SECTION 3.23	Anti-Corruption; Anti-Money Laundering	A-26
SECTION 3.24	No Other Representations or Warranties	A-27
SECTION 3.25	Access to Information; Disclaimer	A-27

Article IV REPRESENTATIONS AND WARRANTIES REGARDING PARENT AND MERGER SUB		A-27
SECTION 4.1	Organization and Qualification	A-27
SECTION 4.2	Operations and Ownership of Merger Sub	A-28
SECTION 4.3	Authority	A-28

		Page
SECTION 4.4	No Conflict; Required Filings and Consents	A-28
SECTION 4.5	Compliance	A-29
SECTION 4.6	No Parent Material Adverse Effect	A-29
SECTION 4.7	Absence of Litigation	A-29
SECTION 4.8	Brokers	A-29
SECTION 4.9	Ownership of Shares of Company Common Stock	A-29
SECTION 4.10	Vote/Approval Required	A-29
SECTION 4.11	Available Funds	A-29
SECTION 4.12	No Other Representations or Warranties	A-30
SECTION 4.13	Access to Information; Disclaimer	A-30

Article V CONDUCT OF BUSINESS PENDING THE MERGER		A-30
SECTION 5.1	Conduct of Business of the Company Pending the Merger	A-30
SECTION 5.2	Conduct of Business of Parent and Merger Sub Pending the Merger	A-34
SECTION 5.3	No Control of Other Party’s Business	A-34

Article VI ADDITIONAL AGREEMENTS		A-35
SECTION 6.1	Company No Solicitation	A-35
SECTION 6.2	Parent No Solicitation	A-38
SECTION 6.3	Proxy Statement	A-39
SECTION 6.4	Company Shareholders Meeting	A-40
SECTION 6.5	Regulatory Approvals; Reasonable Best Efforts	A-40
SECTION 6.6	Notification of Certain Matters	A-42
SECTION 6.7	Access to Information; Confidentiality	A-43
SECTION 6.8	Stock Exchange Delisting	A-44
SECTION 6.9	Publicity	A-44
SECTION 6.10	Employee Benefits	A-44
SECTION 6.11	Directors’ and Officers’ Indemnification and Insurance	A-47
SECTION 6.12	Transaction Litigation	A-49
SECTION 6.13	Obligations of Merger Sub	A-49
SECTION 6.14	Rule 16b-3	A-49
SECTION 6.15	Dividend	A-49
SECTION 6.16	Further Assistance	A-49
SECTION 6.17	State Anti-Takeover Statutes	A-50
SECTION 6.18	Platinum Indebtedness	A-50
SECTION 6.19	Four Corners Divestiture	A-50
SECTION 6.20	Commitment Letter; Financing Cooperation	A-51

Article VII CONDITIONS OF MERGER		A-51
SECTION 7.1	Conditions to Obligation of Each Party to Effect the Merger	A-51
SECTION 7.2	Conditions to Obligations of Parent and Merger Sub	A-52
SECTION 7.3	Conditions to Obligations of the Company	A-53

Article VIII TERMINATION, AMENDMENT AND WAIVER		A-53
SECTION 8.1	Termination	A-53
SECTION 8.2	Effect of Termination	A-54
SECTION 8.3	Expenses	A-56

		Page
Article IX GENERAL PROVISIONS		A-56
SECTION 9.1	Non-Survival of Representations, Warranties, Covenants and Agreements	A-56
SECTION 9.2	Modification or Amendment	A-57
SECTION 9.3	Waiver	A-57
SECTION 9.4	Notices	A-57
SECTION 9.5	Certain Definitions	A-58
SECTION 9.6	Severability	A-63
SECTION 9.7	Entire Agreement; Assignment	A-63
SECTION 9.8	Parties in Interest	A-63
SECTION 9.9	Governing Law	A-64
SECTION 9.10	Headings	A-64
SECTION 9.11	Counterparts	A-64
SECTION 9.12	Specific Performance	A-64
SECTION 9.13	Jurisdiction	A-65
SECTION 9.14	WAIVER OF JURY TRIAL	A-65
SECTION 9.15	Transfer Taxes	A-65
SECTION 9.16	Interpretation	A-65

Acceptable Confidentiality Agreement			Section 9.5(a)
Acquisition Proposal			Section 6.1(f)(i)
Affiliate			Section 9.5(b)

Agreement			Preamble
Anti-Corruption Law			Section 9.5(c)
Antitrust Authorities			Section 6.5(c)(i)
Applicable Date			Section 3.6
Articles of Merger			Section 1.4
Average Parent Stock Price			Section 9.5(d)
Bankruptcy and Equity Exception			Section 3.4(a)
Book-Entry Share			Section 2.1(a)
Burdensome Effect			Section 6.5(d)
Business Day			Section 9.5(e)
Cancelled Shares			Section 2.1(a)
Certificate			Section 2.1(a)
CFIUS			Section 9.5(f)
CFIUS Approval			Section 7.1(d)
Charter Documents			Section 9.5(g)
Closing			Section 1.3
Closing Date			Section 1.3
Code			Recitals
Company			Preamble
Company Articles of Incorporation			Section 3.2
Company Board of Directors			Recitals
Company Bylaws			Section 3.2
Company Capitalization Date			Section 3.3(a)
Company Change of Recommendation			Section 6.1(c)
Company Collective Bargaining Agreement			Section 9.5(h)
Company Common Stock			Section 3.3
Company Contacts			Section 6.16(b)
Company Cure Period			Section 8.1(e)(i)
Company Disclosure Schedule			Article III
Company Employees			Section 3.11(a)
Company Financial Advisor			Section 3.18
Company Material Contract			Section 3.8(a)(viii)
Company Material Easement Real Property			Section 3.14(a)
Company Material Leased Real Property			Section 3.14(a)
Company Material Owned Real Property			Section 3.14(a)
Company Material Real Property			Section 3.14(a)
Company Notice			Section 6.1(d)
Company Parties			Section 9.5(i)
Company Plan			Section 3.11(a)
Company Preferred Stock			Section 3.3
Company Recommendation			Section 3.4(b)
Company Regulatory Approvals			Section 7.1(c)
Company Requisite Vote			Section 3.4(a)
Company Restricted Stock Rights			Section 2.2(a)
Company Risk Management Guidelines			Section 3.22(a)
Company SEC Reports			Section 3.7(a)
Company Securities			Section 3.3(b)
Company Share			Section 2.1(a)
Company Shareholders Meeting			Section 6.4
Company Stock Awards			Section 2.2(b)
Company Stock Plan			Section 3.3(a)(iii)

Company Termination Fee			Section 8.2(b)(i)
Confidentiality Agreement			Section 6.7(b)
Consent			Section 3.5(b)
Continuing Employee			Section 6.10(a)
Contract			Section 9.5(j)
Control			Section 9.5(k)
Controlled Group Liability			Section 3.11(d)
COVID Actions			Section 9.5(l)
COVID Company Exception			Section 5.1
COVID Parent Exception			Section 5.2
Credit Facilities			Section 9.5(m)
Derivative Product			Section 9.5(n)
Direct Plan			Section 2.2(c)
Directors Deferred Plan			Section 2.2(d)
Dissenting Shares			Section 2.3
DPA			Section 6.5(c)(ii)
D&O Insurance			Section 6.11(d)
Earned Performance Shares			Section 2.2(b)
Easement			Section 3.14(c)
Effective Time			Section 1.4
End Date			Section 8.1(c)
Environmental Law			Section 3.17(f)
Equity Conversion Factor			Section 9.5(o)
Equity Securities			Section 9.5(p)
ERISA			Section 3.11(a)
ERISA Affiliate			Section 9.5(q)
Exchange Act			Section 9.5(r)
Exchange Agent			Section 2.4(a)
Exchange Fund			Section 2.4(a)
Existing Lenders			Section 6.18
Existing Loan Consent			Section 6.18
Existing Loan Notice			Section 6.18
Expenses			Section 8.3
FERC			Section 9.5(s)
Filing			Section 3.5(b)
Final Exercise Date			Section 2.2(c)
Final Order			Section 9.5(t)
Final Quarterly Dividend			Section 6.15
Four Corners Divestiture Agreements			Section 6.19
FPA			Section 9.5(u)
GAAP			Section 9.5(v)
Government Official			Section 9.5(w)
Governmental Entity			Section 9.5(x)
Hazardous Substance			Section 3.17(f)
HSR Act			Section 9.5(y)
Indemnified Party			Section 6.11(a)
Intellectual Property			Section 9.5(z)
Interim Period			Section 9.5(aa)
Intervening Event			Section 9.5(bb)
Iridium			Recitals
IRS			Section 3.11(b)

Joint Venture			Section 9.5(cc)
knowledge			Section 9.5(dd)
Law			Section 9.5(ee)
Liability			Section 9.5(ff)
Legal Restraint			Section 7.1(b)
Licenses			Section 3.6
Liens			Section 3.14(a)
Material Adverse Effect			Section 9.5(gg)
Merger			Recitals
Merger Sub			Preamble
Merger Sub Common Stock			Section 2.1(c)
New Mexico Secretary of State			Section 1.4
NMBCA			Section 9.5(ii)
NMPRC			Section 6.7(a)
Notice Period			Section 6.1(d)
NYSE			Section 9.5(kk)
Parent			Preamble
Parent Board of Directors			Recitals
Parent Business Combination			Section 6.2
Parent Contacts			Section 6.16(b)
Parent Cure Period			Section 8.1(d)(i)
Parent Disclosure Schedule			Article IV
Parent Parties			Section 9.5(mm)
Parent Regulatory Approvals			Section 7.1(c)
Parent Regulatory Covenant Breach			Section 8.2(c)
Parent Restricted Stock Rights			Section 2.2(a)
Parent Termination Fee			Section 9.5(nn)
Parties			Preamble
Party			Preamble
Per Share Merger Consideration			Section 2.1(a)
Performance Shares			Section 2.2(b)
Permitted Liens			Section 3.14(a)
Person			Section 9.5(oo)
Personal Information			Section 9.5(pp)
PNM			Section 3.7(a)
President			Section 7.1(d)
Privacy Rules and Policies			Section 9.5(rr)
Proceeding			Section 6.11(a)
Proxy Statement			Section 6.3(b)
PUCT			Section 6.7(a)
PUHCA			Section 9.5(qq)
Regulatory Condition			Section 9.5(ss)
Regulated Operating Subsidiaries			Section 3.19(a)
Representatives			Section 6.1(a)
Required Regulatory Approvals			Section 7.1(c)
Restricted Stock Cash Payouts			Section 2.2(a)
Retention Program			Section 6.10(e)
Sarbanes Oxley Act			Section 3.7(a)
Satisfaction Notice			Section 8.1(d)(iii)
SEC			Section 3.7(a)
Section 53-15-4			Section 2.3

Securities Act			Section 3.7(a)
Series A Preferred Stock			Section 3.3
Significant Subsidiary			Section 9.5(tt)
subsidiary			Section 9.5(vv)
Superior Proposal			Section 6.1(f)(ii)
Surviving Corporation			Section 1.2
Surviving Corporation Bylaws			Section 1.5(c)
Surviving Corporation Charter			Section 1.5(b)
Tax Return			Section 9.5(ww)
Taxes			Section 9.5(xx)
Taxing Authority			Section 9.5(yy)
TNMP			Section 3.7(a)
Trademark			Section 9.5(zz)
Transaction Litigation			Section 6.12
Transition Committee			Section 6.16(b)
Treasury Regulations			Section 9.5(aaa)
Unsatisfied Conditions			Section 8.2(c)
WARN Act			Section 6.10(f)
Willful Breach			Section 9.5(bbb)

			(a)			if to Parent or Merger Sub:

						Avangrid, Inc.
						180 Marsh Hill Road
						Orange, Connecticut 06477
						Attention: R. Scott Mahoney, SVP - General Counsel & Corporate Secretary
						E-Mail: Scott.Mahoney@avangrid.com

						with an additional copy (which shall not constitute notice) to:

						Latham & Watkins LLP
						885 Third Avenue
						New York, New York 10022-4834
						Attention: David Kurzweil
						E-Mail: david.kurzweil@lw.com

			(b)			if to the Company:

						PNM Resources, Inc.
						414 Silver Ave. SW
						Albuquerque, New Mexico 87102-3289
						Attention: Patrick V. Apodaca
						E-Mail: patrick.apodaca@pnmresources.com

						with an additional copy (which shall not constitute notice) to:

						Troutman Pepper Hamilton Sanders LLP
						1001 Haxall Point
						Richmond, Virginia 23219
						Attention: R. Mason Bayler, Jr.
						E-Mail: mason.bayler@troutman.com

			COMPANY:

			PNM RESOURCES, INC.

			By:			/s/ Patricia K. Collawn
						Patricia K. Collawn
						Chairman, President and Chief Executive Officer

			PARENT:

			AVANGRID, INC.

			By:			/s/ Dennis V. Arriola
						Name: Dennis V. Arriola
						Title: Chief Executive Officer

			MERGER SUB:

			NM GREEN HOLDINGS, INC.

			By:			/s/ Dennis V. Arriola
						Name: Dennis V. Arriola
						Title: President and Treasurer