Document:

Exhibit

Exhibit 10.1
EXECUTION VERSION

TERMINATION AGREEMENT 
AND 
RELEASE OF ZURICH AMERICAN INSURANCE COMPANY

THIS TERMINATION AGREEMENT AND RELEASE OF ZURICH AMERICAN INSURANCE COMPANY (“Agreement”) is dated as of August 3, 2016, by and among PNM RESOURCES, INC., a New Mexico corporation (“PNM Resources”), WESTMORELAND COAL COMPANY, a Delaware corporation (“Westmoreland”), SAN JUAN COAL COMPANY, a Delaware corporation (“SJCC”) and ZURICH AMERICAN INSURANCE COMPANY, a New York corporation (“Zurich”).  PNM Resources, Westmoreland, SJCC and Zurich are sometimes referred to herein individually as a “Party” and collectively as the “Parties.”
Background
A.    The Parties are parties to a Reclamation Bond Agreement dated January 31, 2016 (the “Reclamation Bond Agreement”).
B.    The Parties are entering into this Agreement to acknowledge and agree to the discharge of the Reclamation Bond, the termination of the Reclamation Bond Agreement, the release of Zurich and the other matters described herein.
Agreement
Accordingly, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:
1.    Defined Terms.  Capitalized terms used in this Agreement which are not defined herein will have the meanings assigned to them in the Reclamation Bond Agreement.
2.    Discharge of Reclamation Bond and Release of Zurich.  The Parties acknowledge that, pursuant to and as permitted by Section 4 of the Reclamation Bond Agreement, SJCC has replaced the Reclamation Bond, the Reclamation Bond has been discharged and the original Reclamation Bond has been returned to Zurich by the NMEMNRD. It is further agreed that Zurich has been fully released from and against any and all claims that could have been asserted and any and all liability, known and/or unknown under the Reclamation Bond.
3.    Release of Collateral.  Zurich and the other Parties acknowledge and agree that, the original Reclamation Bond having been returned to Zurich, the Initial Letter of Credit will be immediately cancelled and terminated, such cancellation and termination is pending, and that none of PNM Resources, Westmoreland or SJCC shall have any further obligation to provide any Additional Collateral to Zurich under the Reclamation Bond Agreement.
4.    Termination of Reclamation Bond Agreement.  As a result of the discharge, release and return to Zurich of the original Reclamation Bond, the Parties acknowledge and agree that the Reclamation Bond Agreement is hereby terminated and that the Parties thereto shall have no further liabilities or obligations to and among each other under the Reclamation Bond Agreement.

5.     Reservation of Rights. Nothing in this Agreement shall be construed or intended to waive or limit any of Zurich’s rights, claims and/or remedies that it may be entitled to enforce under its General Agreement of Indemnity with Westmoreland or SJCC.
6.    Miscellaneous.
(a)    This Agreement will be governed by and construed and interpreted in accordance with the laws of the State of New York (including Sections 5-1401 and 5-1402 of the New York General Obligation Law), but excluding all other choice of law and conflicts of law rules.
(b)    This Agreement may be executed in any number of counterparts and by each Party hereto in a separate counterpart, each of which when so executed and delivered will be deemed to be an original and all of which taken together will constitute but one and the same agreement.  Electronic or pdf signatures have the same effect as an original signature.
(c)    Each Party agrees to execute such documents and take such other actions as any Party may reasonably request to effect the release and replacement of the Reclamation Bond, the cancellation and termination of the Initial Letter of Credit and the termination of the Reclamation Bond Agreement or otherwise to implement the terms hereof.
(d)    This Agreement constitutes the entire agreement among PNM Resources, Westmoreland, SJCC and Zurich with respect to the subject matter hereto.
[Signatures appear on next page.]

2

IN WITNESS WHEREOF, PNM Resources, Westmoreland, SJCC and Zurich have caused this Agreement to be duly executed by their duly authorized officers.

PNM RESOURCES, INC.

By:    /s/ Charles N. Eldred            
		
	Its: 
	Executive Vice President and

            Chief Financial Officer        

WESTMORELAND COAL COMPANY

By:     /s/ Joseph E. Micheletti            
Its:     EVP                    

SAN JUAN COAL COMPANY

By:     /s/ Joseph E. Micheletti            
Its:     Vice President                

ZURICH AMERICAN INSURANCE COMPANY

By:     /s/ Brian M. Hodges            
Its:     Senior Vice President            

3Exhibit 4.1

 

DELIVERY OPTIONS FOR SUBSCRIPTION RIGHTS CERTIFICATE

 

Delivery other than in the manner or to the address listed below will not constitute valid delivery.

	
If delivering by mail, hand or overnight courier:

American Stock Transfer & Trust Company, LLC

Operations Center

Attn: Reorganization Department

6201 15th Avenue

Brooklyn, New York 11219

 

PLEASE PRINT ALL INFORMATION CLEARLY AND LEGIBLY.

 

FORM 1-EXERCISE OF SUBSCRIPTION RIGHTS

 

To subscribe for shares pursuant to your Basic Subscription Right, please complete lines (a) and (c) and sign under Form 4 below.  To subscribe for shares pursuant to your Over-Subscription Right, please also complete line (b) and sign under Form 4 below.  To the extent you subscribe for more Shares than you are entitled under either the Basic Subscription Right or the Over-Subscription Right, you will be deemed to have elected to purchase the maximum number of shares for which you are entitled to subscribe under the Basic Subscription Right or Over-Subscription Right, as applicable.

 

(a) EXERCISE OF BASIC SUBSCRIPTION RIGHT:

 

I apply for ______________ shares x $[___]                  =   $_______________

   (no. of new shares)               (subscription price)    (amount enclosed)

 

(b) EXERCISE OF OVER-SUBSCRIPTION RIGHT

 

If you have exercised your Basic Subscription Right in full and wish

 to subscribe for additional shares pursuant to your Over-Subscription Right:

 

I apply for ______________ shares x $ [__]                    =   $_______________

   (no. of new shares)               (subscription price)    (amount enclosed)

 

(c) Total Amount of Payment Enclosed   =   $__________________

 

METHOD OF PAYMENT (CHECK ONE)

 

		☐	Check or bank draft payable to “American Stock Transfer & Trust Company, LLC as Subscription Agent.”

 

		☐	Wire transfer of immediately available funds directly to the account maintained by American Stock Transfer & Trust Company, LLC, as Subscription Agent, for purposes of accepting subscriptions in this Rights Offering at JPMorgan Chase Bank, 55 Water Street, New York, New York 10005, ABA #021000021, Account # 530-354616 American Stock Transfer FBO Magal security Systems Ltd., with reference to the rights holder's name.

 

FORM  2-RESERVED

 

FORM 3-RESERVED

 

FORM 4-SIGNATURE

 

TO SUBSCRIBE: I acknowledge that I have received the Prospectus for this Rights Offering and I hereby irrevocably subscribe for the number of shares indicated above on the terms and conditions specified in the Prospectus.

 

Signature(s): ______________________________________________________

 

IMPORTANT: The signature(s) must correspond with the name(s) as printed on the reverse of this Subscription Rights Certificate in every particular, without alteration or enlargement, or any other change whatsoever.

 

FORM 5-RESERVED

 

FOR INSTRUCTIONS ON THE USE OF GILAT SATELLITE NETWORKS LTD. SUBSCRIPTION RIGHTS CERTIFICATES, CONSULT [                   ], THE INFORMATION AGENT, AT [   ].

 

 

	
RIGHTS CERTIFICATE #:

	
NUMBER OF RIGHTS

                                                                                                                                                                                                                

THE TERMS AND CONDITIONS OF THE RIGHTS OFFERING ARE SET FORTH IN THE COMPANY'S PROSPECTUS

DATED [               ], 2016 (THE "PROSPECTUS") AND ARE

INCORPORATED HEREIN BY REFERENCE. COPIES OF THE PROSPECTUS ARE AVAILABLE UPON REQUEST

FROM [           ], THE INFORMATION AGENT.

 

Magal Security Systems Ltd.

Incorporated under the laws of the State of Israel 

 

NON - TRANSFERABLE SUBSCRIPTION RIGHTS CERTIFICATE

 

Evidencing Non - Transferable Subscription Rights to Purchase Ordinary Shares of Magal Security Systems Ltd.

 

Subscription Price:          $[          ]

 

THE SUBSCRIPTION RIGHTS WILL EXPIRE ON 5:00 P.M., NEW YORK CITY TIME, ON [          ], 2016

 

REGISTERED OWNER:

	
THIS CERTIFIES THAT the registered owner whose name is inscribed hereon is the owner of the number of non-transferable subscription rights (“Rights”) set forth above. Each whole Right entitles the holder thereof to subscribe for and purchase one Ordinary Share, with a par value of  NIS1.00 per share, of Magal Security Systems Ltd., an Israeli company, at a subscription price  of $[   ]  (the  “Basic  Subscription  Privilege”),  pursuant  to  a  rights  offering  (the “Rights Offering”), on the terms and subject to the conditions set forth in the Prospectus and the “Instructions as to Use of Magal Security Systems Ltd. Subscription Rights Certificates” accompanying this Subscription Rights Certificate.

	 	
If any Ordinary Shares available for purchase in the Rights Offering are not purchased by other holders of Rights pursuant to the exercise of their Basic Subscription Privilege (the “Excess Shares”), any Rights holder that exercises its Basic Subscription Privilege in full may subscribe for a number of Excess Shares pursuant to the terms and conditions of the Rights Offering, subject to proration, as described in the Prospectus (the “Over- Subscription Privilege”).  The Rights   represented by this Subscription Rights Certificate may be exercised by completing Form 1 and any other appropriate forms on the reverse side hereof and by retuning the full payment of the subscription price in accordance with the “Instructions as to Use of Magal Security Systems Ltd.  Subscription Rights Certificates” that accompany this Subscription Rights Certificate.

 This Subscription Rights Certificate is not valid unless countersigned by the subscription agent and registered by the registrar.

 

Witness the seal of Magal Security Systems Ltd. and the signatures of its duly authorized officers.

 

Dated:

 

	
Chief Executive Officer 

and Principal Executive Officer  

	 	
Vice President, 

General Counsel and Secretary

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