Document:

2012.08.09 S-3 Exh 4.1

                                                                                                                                Exhibit 4.1
THIRD AMENDED AND RESTATED PNM RESOURCES, INC. DIRECT PLAN

This Third Amended and Restated PNM Resources, Inc. Direct Plan (the “Plan”) becomes effective on August 9, 2012.  The Plan is an amendment and restatement of the Second Amended and Restated PNM Resources, Inc. PNM Resources Direct Plan that became effective on August 31, 2006 (the “Prior Plan”).  The Prior Plan was an amendment and restatement of the Amended and Restated PNM Resources, Inc. PNM Direct Plan effective on March 7, 2003, as amended by the First Amendment to the Amended and Restated PNM Resources, Inc. PNM Direct Plan dated August 31. 2006, which replaced the PNM Resources, Inc. PNM Direct Plan that became effective on December 21, 2001 to replace and assume the Public Service Company of New Mexico PNM Direct Plan originally established on August 28, 1996.

The Plan amends the definitions of “Initial Cash Investment” and “Optional Cash Investment” contained in the Prior Plan by increasing the minimum investment amount from $50 to $250, decreasing the maximum per transaction investment amount from $100,000 to $10,000 (while retaining the cumulative calendar year maximum of $100,000 per Participant), eliminating the employee payroll deduction investment option, and eliminating the automatic enrollment of Shareholders owning less than 100 shares in the full reinvestment portion of the Plan.
 
1.    Definitions

The following terms when used herein shall have the following meanings: 

“Broker” shall mean one or more securities broker-dealers selected from time to time by the Plan Administrator to act as independent agents for the Participants in the purchase and sale of shares of the Company's Common Stock under the Plan. 

“Common Stock” shall mean the Company's common stock, no par value.

“Company” shall mean PNM Resources, Inc., a New Mexico corporation. 

“Dividend Payment Date” shall mean each date on which dividends are paid on the Company's Common Stock.  These dates are usually on or about February 15, May 15, August 15, and November 15 of each year. 

“Enrollment Form” shall mean such enrollment form as the Plan Administrator or the Company may from time to time, or upon request, furnish to Shareholders or new investors who are not Shareholders and which shall be returned to the Plan Administrator together with the Initial Cash Investment to indicate their election to participate in the Plan. 

“Exchange” shall mean the New York Stock Exchange.

“Initial Cash Investment” shall mean any initial cash investment made by a new investor for the purchase of their first shares of the Company's Common Stock under the Plan.  An Initial Cash Investment may not (a) equal less than $250 or (b) total more than $10,000.

“Optional Cash Investment” shall mean any additional cash payment made by a Participant for the purchase of shares of the Company's Common Stock under the Plan.  Optional Cash Investments may not (a) equal less than $250 each or (b) total more than $10,000 per transaction, nor exceed $100,000 per Participant in any calendar year.

“Participant” shall mean any Shareholder or new investor who is not a Shareholder who has enrolled in the Plan on-line over the Internet or has returned an Enrollment Form to the Plan Administrator indicating election to participate in the Plan. 

“Plan” shall mean the Third Amended and Restated PNM Resources, Inc. Direct Plan also known as the “PNM Resources, Inc. Direct Plan” or “PNM Resources Direct Plan” or “PNM Resources Direct”. 

“Plan Administrator” shall mean Computershare Trust Company, N.A. through its designated affiliates or other agent duly appointed by the Company to administer the Plan. 

“Pricing Period” shall have the meaning set forth below in Section 9.

“Shareholder” shall mean any holder of record of the Company's Common Stock. 

“Threshold Price” shall have the meaning set forth below in Section 10.

“Trading Day” shall have the meaning set forth below in Section 9.

“Waiver Investment Date” shall have the meaning set forth below in Section 9.

2.    Purpose 

The purpose of this Plan is to provide Shareholders and interested new investors with a convenient and economical method of investing cash dividends and making cash investments in shares of the Company's Common Stock.  The shares of the Company's Common Stock purchased under this Plan with reinvested cash dividends and Initial and Optional Cash Investments will, at the election of the Company, be newly issued shares purchased directly from the Company, treasury shares purchased directly from the Company, shares purchased on the open market by the Broker or a combination thereof. 

3.    Eligibility for Participation 

Existing Shareholders and interested new investors who are not Shareholders are eligible to participate in the Plan and may do so by enrolling on-line over the Internet through Investor ServiceDirect® at www.cpushareownerservices.com or by completing the Enrollment Form and returning it to the Plan Administrator, together with an Initial Cash Investment or an Optional Cash Investment, as the case may be.  Instructions for enrollment on-line over the Internet are provided by the Plan Administrator.  

4.    Administration 

The Plan Administrator shall maintain records and perform such other duties as may be required.  In addition, the Plan Administrator shall send to each Participant (a) annual or quarterly (annual if the Participant holds less than 100 shares and participates only in the dividend reinvestment portion of the Plan) statements of the Participant's Plan account, and (b) annual and quarterly reports to Shareholders, proxy statements and income tax information for reporting dividends.  Shares purchased by a Participant through the Plan shall be held by the Plan Administrator in book-entry form.  Unless instructed otherwise, the dividends on such shares shall be automatically reinvested on each Dividend Payment Date. 

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The Company shall pay all costs of administering the Plan, except as provided in this paragraph of this Section 4.  Participants will pay the trading fees for any shares purchased on the open market and a fee for plan histories.  No commission will be paid on any newly issued shares purchased directly from the Company under the Plan.  A Participant will incur trading and transaction fees upon the sale of shares in the Participant's Plan account in connection with the withdrawal of a Participant from this Plan as described in Section 12.  Additional fees are set forth in the fee schedule attached as Appendix A.  The fee schedule in Appendix A may be amended from time to time by the Company.

5.    Reinvestment of Dividends 

A.    Full Dividend Reinvestment.  Shareholders may elect to have their cash dividends automatically reinvested by enrolling on-line over the Internet through Investor ServiceDirect® at www.cpushareownerservices.com or completing the Enrollment Form to that effect and returning it to the Plan Administrator.  In such cases, cash dividends on shares held in a Participant's Plan account will be automatically reinvested until such shares are withdrawn from the Participant's Plan account or until the Participant changes his or her dividend reinvestment election by notifying the Plan Administrator.  Cash dividends will be reinvested as promptly as practicable (normally within 5 business days of the Dividend Payment Date).  Reinvestment of cash dividends shall commence with dividends paid on the next Dividend Payment Date following the Plan Administrator's receipt of the Enrollment Form or the processing of enrollment on-line provided the enrollment request is received on or before the record date established for payment of the dividends.  If the Plan Administrator receives the enrollment request after such record date, then the reinvestment of dividends shall commence with the Dividend Payment Date following the next established record date. 

B.    Partial Dividend Reinvestment.  A Participant may elect to have cash dividends on a designated number of shares held in the Participant's Plan account paid directly to the Participant, with the balance being reinvested in shares of Common Stock, except that Participants owning less than 100 shares of Common Stock may not elect this partial dividend reinvestment option.  

C.    Cash Investment Only.  A Participant may elect to have cash dividends on all shares held in the Participant's Plan account paid directly to the Participant in lieu of being reinvested.  

D.    No Option Chosen.  If a Participant does not elect a cash dividend participation option as described above in Subsections 5A, 5B or 5C, then such Participant will be deemed to have elected the full dividend reinvestment option described in Subsection 5A above. 

E.    Return of Uninvested Cash Dividends.  Any cash dividends to be reinvested under the Plan that are not reinvested in shares of Common Stock within 30 days of the applicable Dividend Payment Date shall be promptly paid, without interest, to the Participant at his or her address of record by First Class Mail.

6.    Initial and Optional Cash Investments 

Shareholders or interested new investors may elect to make an Initial Cash Investment by enrolling on-line over the Internet through Investor ServiceDirect® at www.cpushareownerservices.com  or by completing the Enrollment Form for that purpose and returning it to the Plan Administrator.  Participants are eligible to make Optional Cash Investments at any time.  Initial and/or Optional Cash Investments, or any portion thereof, may be accepted or rejected by the Plan Administrator or Company in their sole discretion.  Any Initial or Optional Cash Investment, or portion thereof, that is rejected by the Plan Administrator or the Company will be returned to the Participant as promptly as practical after the Plan Administrator or the Company elects to reject such investments.  Initial Cash Investments and 

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Optional Cash Investments shall be used to purchase shares of the Company's Common Stock as promptly as practical (normally, at least once every five business days) after the Plan Administrator receives the Participant's Initial Cash Investment or Optional Cash Investment in the form of an electronic bank transfer, check or money order payable to PNM Resources Direct Plan.  No Participant's Initial Cash Investment may (a) equal less than $250 or (b) total more than $10,000.  No Participant's Optional Cash Investments may (a) equal less than $250 each or (b) total more than $10,000 per transaction, nor exceed $100,000 in any calendar year.  Any Initial Cash Investments and Optional Cash Investments that are not invested within 35 days of receipt by the Plan Administrator or the Company shall be promptly returned, without interest, to the Participant at his or her address of record by First Class Mail.

7.    Cash Investments Over the Maximum Annual Amount 

Interested new investors may make an Initial Cash Investment and/or Participants may make an Optional Cash Investment in excess of $100,000 per calendar year with the Company's prior written approval.  Approval is obtained by submitting a “Request for Waiver” form, which may be obtained by contacting the Plan Administrator's Waiver Department at 1-201-680-5300 (or such other number as the Plan Administrator or the Company may establish from time to time).  Completed Request For Waiver forms must be sent to the Plan Administrator's Waiver Department via facsimile no later than three business days prior to the start date of the applicable Pricing Period as determined by the Plan Administrator and an authorized officer of the Company.  If a Request for Waiver is approved, then the Participant must send to the Plan Administrator its Optional Cash Investment of greater than $100,000. 

The Plan Administrator must receive the Initial or Optional Cash Investment in excess of the $100,000 yearly maximum in good funds pursuant to a Request For Waiver form by the close of business on the last day before the first day of the applicable Pricing Period.  Funds received after this date will be returned to the Participant without interest. 

The Company has the sole discretion whether to approve any request to make an Initial or Optional Cash Investment in excess of the $100,000 yearly maximum.  In deciding whether to approve a Request for Waiver, the Company may consider, among other things, the following factors:  

		
	•
	whether, at the time of such request, the Plan Administrator is acquiring shares of Common Stock for the Plan directly from the Company or in the open market or in privately negotiated transactions with third parties;

		
	•
	the Company's need for additional funds; 

		
	•
	the Company's desire to obtain additional funds through the sale of Common Stock as compared to other sources of funds; 

		
	•
	the purchase price likely to apply to any sale of Common Stock;

		
	•
	the extent and nature of a Participant's prior participation in the Plan; 

		
	•
	the number of shares of Common Stock a Participant holds of record; and 

		
	•
	the total amount of Initial and Optional Cash Investments in excess of $100,000 per year for which Requests for Waiver have been submitted. 

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If Requests for Waivers are submitted for any Pricing Period for an aggregate amount in excess of the amount the Company is then willing to accept, the Company may honor such requests in order of receipt, pro rata or by any other method that the Company determines, in its sole discretion, to be appropriate.  

8.    Purchase of Shares 

Shares of the Common Stock purchased under the Plan will, at the Company's election, be newly issued shares purchased directly from the Company, treasury shares purchased directly from the Company, shares purchased by a Broker in the open market, or a combination thereof.  The Company has full discretion as to whether the Common Stock purchased under the Plan will be purchased on the open market or purchased directly from the Company. 

		
	•
	Common Stock purchased in the open market.  The investment price of the Common Stock purchased in the open market with reinvested dividends, Initial Cash Investments or with Optional Cash Investments will be the weighted average price, including applicable brokerage trading fees, incurred in connection with the purchase of such shares for the relevant investment date.  No interest will be paid on funds held by the Plan Administrator pending investment.  The Plan Administrator will normally invest cash dividends within 5 business days of the Dividend Payment Date and will normally invest Initial and Optional Cash Investments at least once every 5 business days.  

		
	•
	Common Stock purchased directly from the Company.  The price of the Common Stock purchased directly from the Company with reinvested dividends, Initial Cash Investments or Optional Cash Investments will be the average of the high and low sale prices of shares of the Common Stock reported on the Exchange for the Dividend Payment Date, Initial Cash Investment date or Optional Cash Investment date, as the case may be.  No interest will be paid on funds held by the Plan Administrator pending investment.  The Plan Administrator will normally invest Initial and Optional Cash investments at least once every 5 business days. 

The Participants will be credited with that number of shares, including fractional shares computed to 4 decimal places, equal to the amount invested with respect to his, her or its Plan account, divided by the price per share of such shares for all purchases for all Participants during the applicable period.  

9.    Purchase of Shares Upon a Request for Waiver 

Shares purchased pursuant to a granted Request for Waiver are purchased directly from the Company.  If a Request for Waiver is approved, the price of shares purchased directly from the Company pursuant to a Request for Waiver will be determined using a “Pricing Period” of not less than one but more than 10 “Trading Days” as determined by the Company commencing on a date set by the Company.  Initial and Optional Cash Investments made pursuant to a Request for Waiver will be applied to the purchase of shares of Common Stock as soon as practicable on or after the business day following the last Trading Day of the Pricing Period, which date is referred to as the “Waiver Investment Date”.

Initial and Optional Cash Investments made pursuant to a Request for Waiver are acquired at a price equal to the average of the daily high and low sales prices computed up to seven decimal places, if necessary, of the Common Stock as reported on the Exchange, only, and not a Composite Average, for the applicable Trading Days (as defined below) immediately preceding the applicable Waiver Investment Date (assuming that the Company does not set a Threshold Price or offer a discount from the purchase price as discussed further below).  A “Trading Day” means a day on which trades in the Common Stock 

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are reported on the Exchange.  The Plan Administrator will apply all Initial and Optional Cash Investments for which good funds are received on or before the first business day before the first Trading Day of the Pricing Period to the purchase of shares of Common Stock as soon as practicable on or after the corresponding Waiver Investment Date.  Setting a particular 1-10 Trading Day Pricing Period for a particular Waiver Investment Date will not affect the setting of a pricing period for any other particular Waiver Investment Date.

A discount of up to 3% from the purchase price may be offered, in the Company's sole discretion, with respect to a particular Waiver Investment Date to Participants on purchases of the Company's common stock through Initial or Optional Cash Investments in excess of $100,000 per calendar year. 

Setting a discount from the purchase price for Initial or Optional Cash Investments in excess of $100,000 per calendar year for a particular Pricing Period will not affect the setting of a discount for any other Pricing Period.  The Company may increase, decrease, or waive its right to set a discount from the purchase price for any particular Pricing Period.  Neither the Company nor the Plan Administrator is required to give a new investor or Participant notice of the discount for any Pricing Period.  When setting the discount, if any, the Company will consider, among other things, capital needs, whether the Company wants to issue equity to meet capital needs and how quickly the Company desires to close the investment.  

10.    Threshold Price 

The Company may set a minimum purchase price per share (the “Threshold Price”) for Initial or Optional Cash Investments in excess of $100,000 per calendar year made pursuant to a granted Request for Waiver for any Pricing Period.  The determination of whether to set a Threshold Price will be made at least three business days before the first day of the Pricing Period. 

The Company will notify the Plan Administrator of the Threshold Price, if any.  In deciding whether to set a Threshold Price, the Company will consider current market conditions, the level of participation in the Plan and the current and projected capital needs.  Participants and potential new investors may ascertain whether a Threshold Price has been set or waived for any given Pricing Period by calling the Plan Administrator's Waiver Department at 1‐201‐680-5300 (or such other number as the Plan Administrator or the Company may establish from time to time). 

The Company will fix the Threshold Price for a Pricing Period as a dollar amount that the average of the high and low sales prices as reported by the Exchange for each Trading Day of that Pricing Period (not adjusted for discounts, if any) must equal or exceed.  The Company will exclude from the Pricing Period and from the determination of the purchase price any Trading Day within the Pricing Period that does not meet the Threshold Price.  The Company also will exclude from the Pricing Period and from the determination of the purchase price any day in which no trades of Common Stock are made on the Exchange.  Thus, for example, if the Company chooses to use a 10 Trading Day Pricing Period and the Threshold Price is not met or no sales of Common Stock are reported for 2 of the 10 Trading Days in a Pricing Period, then the Company will base the purchase price upon the remaining 8 Trading Days in which the Threshold Price was met.

In addition, the Company will return a pro rata portion of each Initial or Optional Cash Investment made pursuant to an approved Request for Waiver for each Trading Day of a Pricing Period for which the Threshold Price is not met or for each day in which no trades of common stock are reported on the Exchange as soon as reasonably practical after the Pricing Period, without interest. 

The returned amount will be a percentage of the cash investment corresponding to the percentage of Trading Days that the Threshold Price is not met or sales are not reported.  Thus, for example, if the 

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Company chooses a 10 Trading Day Pricing Period and the Threshold Price is not met or no sales of Company Common Stock are reported for 2 of the 10 Trading Days in a Pricing Period, then the Company will return two-tenths (2/10th or 20%) of the Initial or Optional Cash Investment to the investor without interest after conclusion of the Pricing Period.  This does not constitute a discount to the purchase price; however, it does reduce the amount of the offering. 

The establishment of the Threshold Price and the possible return of a portion of the payment apply only to Initial and/or Optional Cash Investments exceeding $100,000 per year made pursuant to a granted Request for Waiver.  Setting a Threshold Price for a Pricing Period will not affect the setting of a Threshold Price for any other Pricing Period.  The Company may waive its right to set a Threshold Price for any particular Pricing Period.  Neither the Company nor the Plan Administrator is required to give an interested new investor or Participant notice of the Threshold Price for any Pricing Period.  The Company may alter or amend at its sole discretion these Pricing Periods at any time and from time to time, prior to the commencement of any Pricing Period and prior to the granting of any waiver with respect to such period. 

11.    Amendment of Investment Option 

A Participant may change the investment option elected under this Plan by notifying the Plan Administrator in writing, by telephone or on-line over the Internet.  With respect to the dividend reinvestment portion of the Plan, notices received by the Plan Administrator not later than the record date established for any Dividend Payment Date shall be effective as of such Dividend Payment Date and thereafter. 

12.    Withdrawal of Purchased Shares and Termination of Account 

A Participant who has purchased shares of the Company's Common Stock under this Plan may withdraw all or a portion of such shares by notifying the Plan Administrator, specifying in the notice the number of shares to be withdrawn.  If requested, certificates for whole shares withdrawn shall be issued to the Participant or transferred to a Participant's brokerage account.  In no case shall certificates or transfers for fractional shares be issued.  Any fractional share withdrawn shall be liquidated as soon as practicable after receipt of withdrawal notice by the Plan Administrator.  The liquidated amount for any fractional share and certificate(s) for whole shares shall be mailed directly to the withdrawing Participant by the Plan Administrator. 

If the Participant is terminating participation in this Plan, the Participant may withdraw all shares and request that a certificate be issued, that whole shares be transferred to a Participant's brokerage account or that shares be sold and the cash proceeds be forwarded to the Participant.  Such sale shall be made by the Broker.  The Broker will have full discretion as to all matters relating to sales by the Broker, including the date of any sales and the prices received for such shares.  The proceeds of such sale by the Broker, less trading and transaction fees, shall be paid to such Participant.  Shares that are to be sold by the Broker may be aggregated with those of other terminating Participants, in which case the proceeds to each terminating Participant will be based on the average sales price, less trading and transaction fees.

13.    Common Stock Rights Offering, Stock Split, Stock Dividend 

Participation in any Common Stock rights offering shall be based upon both the shares registered in the Participant's name and the shares (including fractional shares) credited to the Participant's Plan account in book-entry form.  Any stock dividend or share resulting from any stock split with respect to shares credited to the Participant's Plan account shall be added to such account. 

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14.    Voting 

All shares credited to a Participant's Plan account in book-entry form shall be voted as the Participant directs.  If on the record date for a meeting of Shareholders there are shares credited to the Participant's Plan account, the Participant (whether or not any shares are registered in the Participant's own name) shall be sent the proxy materials for such meeting.  If the Participant returns an executed proxy, all shares credited to the Participant (including any fractional shares) shall be voted in accordance with such proxy; otherwise, the Participant may vote such shares in person at such meeting. 

15.    Liability 

In administering this Plan, neither the Company nor the Plan Administrator nor any Broker shall be liable for any good faith acts or omissions, including, without limitation, any failure to terminate a Participant's Plan account upon such Participant's death or adjudicated incompetence, prior to receiving notice in writing of such death or adjudicated incompetence, or with respect to the prices at which shares are purchased or sold for a Participant's account and the times when such purchases and sales are made, or with respect to any loss or fluctuation in the market value after the purchase or sale of such shares.    

16.    Termination, Suspension or Modification 

The Company reserves the right to modify, suspend or terminate this Plan at any time.  The Company also reserves the right to change the administrative procedures of the Plan, together with the Plan Administrator.  The Company reserves the right to modify, suspend or terminate participation in the Plan by otherwise eligible persons to eliminate practices that are inconsistent with the purpose of the Plan.  In such event, the Plan Administrator will notify the Participant in writing and will continue to keep safe shares of Common Stock allocated to the Participant, but will no longer accept optional cash investments or reinvest dividends.

17.    Direct Registration System 

Shares purchased under the Plan (unless requested otherwise by the Participant) will be in book-entry-form through the use of the Direct Registration System.  Shares may be transferred from the Participant's Plan account to a Participant's brokerage account and vice versa.  

18.    Compliance With Applicable Laws and Regulations 

The Company's obligation to offer, issue or sell shares of the Company's Common Stock under this Plan shall be subject to (a) the Company's obtaining any necessary approval, authorization or consent from any regulatory authority having jurisdiction and from any stock exchange on which shares of the Company's Common Stock may then be listed and (b) the condition that, at the time of the offer, issuance or sale, the price at which such shares are being offered, issued or sold shall be at least equal to the then stated value of such shares. 

19.    Selection of Broker   

Any Broker serving in such capacity pursuant to the Plan shall be selected by the Plan Administrator.  The Plan Administrator and the Company, or either of them, shall, subject to the provisions hereof, make such arrangements and enter into such agreements with the Broker in connection with the activities contemplated by the Plan as the Plan Administrator and the Company, or either of them, deem reasonable and appropriate.

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20.    Source of Shares of Common Stock

The Company shall not change the source of Common Stock purchased by Participants in the Plan (i.e., either (i) newly issued shares of Common Stock or shares of Common Stock held in the Company's treasury (not reserved for any other purpose) purchased from the Company, or (ii) shares of Common Stock purchased in the open market) more often than every 3 months.  The Company shall not exercise its right to change the source of shares absent a recorded determination by the Company's Board of Directors, Chief Financial Officer or Treasurer that the Company's need to raise additional capital has changed or there is another valid reason for a change. 

21.    Plan of Distribution  

Subject to the discussion below, the Company will distribute newly issued shares of its Common Stock sold under the Plan.  A registered broker/dealer, selected by the Plan Administrator, will assist in the identification of investors and other related services, but will not be acting as an underwriter with respect to shares of Common Stock sold under the Plan.  There are no brokerage commissions or service charges allocated to Participants in the Plan in connection with their purchases of such newly issued shares of Common Stock. 

In connection with the administration of the Plan, the Company may be requested to approve investments made pursuant to Requests for Waiver by or on behalf of Participants or other investors who may be engaged in the securities business.  Persons who acquire shares of the Company's Common Stock through the Plan and resell them shortly after acquiring them, including coverage of short positions, under certain circumstances, may be participating in a distribution of securities that would require compliance with Regulation M under the Securities Exchange Act of 1934, as amended, and may be considered to be underwriters within the meaning of the Securities Act of 1933, as amended.  The Company will not extend to any such person any rights or privileges other than those to which it would be entitled as a Participant, nor will the Company enter into any agreement with any such person regarding the resale or distribution by any such person of the shares of our Common Stock so purchased.  The Company  may, however, accept investments made pursuant to Requests for Waiver by such persons.  From time to time, financial intermediaries, including brokers and dealers, and other persons may engage in positioning transactions in order to benefit from any waiver discounts applicable to investments made pursuant to Requests for Waiver under the Plan.  Those transactions may cause fluctuations in the trading volume of the Common Stock.  Financial intermediaries and such other persons who engage in positioning transactions may be deemed to be underwriters.  The Company has no arrangements or understandings, formal or informal, with any person relating to the sale of shares of our Common Stock to be received under the Plan. 
22.    Controlling Law
This Plan shall be construed, regulated and administered under the laws of the State of New Mexico.

		
	23.
	Uncollectible Funds

If a check or automatic debit submitted for investment is returned unpaid or rejected for any reason, the Plan Administrator will consider the request for investment of such funds null and void and will charge the Participant the applicable fees set forth in Appendix A, as revised from time to time.  Any shares purchased upon the prior credit of such funds will be immediately removed from the Participant's account.  The Plan Administrator will be entitled to sell those shares to satisfy any uncollected amounts.  If the net proceeds of the sale of such shares are not sufficient to satisfy the balance of such uncollected 

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amounts, the Plan Administrator may sell additional shares from the Participant's account to satisfy the uncollected balance.

24.Acceptance of Terms and Conditions of Plan by Participants
Each Participant, by completing an Enrollment Form and as a condition of participation herein, for himself or herself, his or her heirs, executors, administrators, legal representatives and assigns, approves and agrees to be bound by the provisions of this Plan and any subsequent amendments hereto, and all actions of the Company and the Plan Administrator hereunder.

IN WITNESS WHEREOF, the Company has caused this Third Amended and Restated PNM Resources, Inc. Direct Plan to be executed as of August 7, 2012 and to become effective as of August 9, 2012.  

PNM RESOURCES, INC.

By /s/ Charles N. Eldred        
     Charles N. Eldred 
     Executive Vice President and Chief Financial Officer

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APPENDIX A
FEE SCHEDULE

	
		
	Enrollment fee for new investors
	No charge

	Initial purchase of shares
	Trading fee included in share price (currently $0.06 per share), applicable when shares are acquired by the Plan Administrator through its broker

	Reinvestment of dividends
	No charge.  We will pay the applicable trading fee when shares are acquired by the Plan Administrator through its broker

	Optional cash investments
	Trading fee included in share price (currently $0.06 per share), applicable when shares are acquired by the Plan Administrator through its broker

	Sale of shares (partial or full):
	 

	Batch Order
	$15.00 per transaction plus $0.06 per share sold

	Market Order
	$25.00 per transaction plus $0.12 per share sold

	Day Limit Order
	$30.00 per transaction plus $0.12 per share sold

	GTC Limit Order
	$30.00 per transaction plus $0.12 per share sold

	 
	 

	Alternative Currency Disbursement Fees
	 

	U.S.$ or Foreign Currency Wire
	$50.00 per transaction

	Foreign Check
	$15.00 per transaction

	EFT (Direct Deposit - U.S.$ only)
	$10.00 per transaction

	 
	 

	Convenience Fees
	 

	CSR Assisted Sale
	$15.00 per transaction

	 
	 

	Gift or transfer of shares
	No charge

	Safekeeping of stock certificates
	No charge

	Certificate issuance
	No charge 

	Returned checks or rejected automatic debit
	$35.00 per check or transaction

	Duplicate statements:
	 

	Current year
	No charge

	Prior year(s)
	No charge

	Duplicate Form 1099-DIV or 1099-B
	No charge

PLAN FEES ARE AT THE DISCRETION OF PNM RESOURCES, INC.  INVESTORS SHOULD NOT RELY SOLELY ON THE ABOVE SCHEDULE AS FEES ARE SUBJECT TO CHANGE.  FOR MORE INFORMATION, PLEASE CONTACT THE PLAN ADMINISTRATOR AT 1-877-663-7775.MDCO EX 10.1 06.30.2012

	
					
	 
	 
	 
	 
	Exhibit 10.1

	 
	 
	 
	 
	 

	 
	Confidential Materials omitted and filed separately with the
Securities and Exchange Commission.  Asterisks denote omissions.

	 

	 
	 

	 
	 

	 
	 

	 
	 
	 
	 
	 

SEVERANCE AGREEMENT AND
FULL AND FINAL MUTUAL GENERAL RELEASE OF CLAIMS
This Severance Agreement and Full and Final Mutual General Release of Claims (“Agreement”) is made and entered into by and between LESLIE C. ROHRBACKER (“ROHRBACKER”) and THE MEDICINES COMPANY (“MDCO”).
WHEREAS, ROHRBACKER and MDCO wish to enter into a full and final compromise related to ROHRBACKER's cessation of employment at MDCO; and
WHEREAS, ROHRBACKER and MDCO wish to enter into a full and final mutual release of all claims or potential claims.
NOW, THEREFORE, in consideration of the mutual promises contained herein, and intending to be legally bound, ROHRBACKER and MDCO agree as follows:
1.Waiver and Release of Claims.  As used in this Agreement, the terms “MDCO” and “MDCO Releasees” means: MDCO; any subsidiaries, affiliates, divisions, predecessors, successors and/or assigns of MDCO; any benefit plans and/or committees of each such entity, members of the Board of Directors of each such entity; and any past, present and future officers, directors, shareholders, agents, representatives, plan administrators, attorneys and employees of each such entity.

a.ROHRBACKER releases and gives up any and all claims and rights she may have against MDCO Releasees, except for the right to the payments and benefits provided for in this Agreement.  This Agreement applies to claims resulting from anything that has happened up to the Effective Date (as defined in paragraph 15 of this Agreement).  ROHRBACKER releases and gives up any and all claims and rights against MDCO Releasees of any nature whatsoever arising under any federal, state, local or foreign law, including, but not limited to, those not mentioned in this Agreement, those of which she is not aware, and any claims for or rights to attorneys' fees or costs.  ROHRBACKER specifically releases any and all claims and rights in any way relating to or arising out of her employment with MDCO or the cessation of such employment.

ROHRBACKER also specifically releases any and all claims of unlawful discrimination, including, but not limited to, hiring, suspension or separation from employment, compensation, and promotion or failure to promote, based on their race, color, religion, national origin, citizenship, age, sex, gender, veteran status, sexual orientation, gender orientation, disability, or any other status protected by applicable law.  These include any and all claims ROHRBACKER may have under Title VII of the Civil Rights Act of 1964, 42 U.S.C. §2000e et seq. (“Title VII”); the Civil Rights Act of 1866, 42 U.S.C. §1981; the New Jersey Law Against Discrimination (“NJLAD”), N.J.S.A. 10:5-1 et seq.; the Conscientious Employee Protection Act, N.J.S.A. 34:19-1 et seq. (“CEPA”); the Age Discrimination in Employment Act of 1967, 29 U.S.C. §621 et seq. (“ADEA”); the Americans with Disabilities Act, 42 U.S.C. §12101, et seq. (“ADA”); the Sarbanes-Oxley Act of 2002; the federal Family and Medical Leave Act, 29 U.S.C. §2611 et seq. (“FMLA”); the New 

1

Jersey Family Leave Act, N.J.S.A. 34:11B-1 et seq. (“NJELA”); the Employee Retirement Income Security Act of 1974, 29 U.S.C. §1001 et seq. (“ERISA”); the Worker Adjustment and Retraining Notification Act (“WARN”), 29 U.S.C. §2101, et seq.; Executive Order 11246; and any other applicable federal, state, foreign or local provision, statute, regulation or ordinance prohibiting discrimination, or Federal or State Constitution. 
 ROHRBACKER is also releasing any and all other claims and rights she may have against MDCO Releasees, including, but not limited to, claims for retaliation, whistle-blowing, wrongful discharge, breach of contract (express or implied), breach of promise, unjust dismissal, unfair competition, breach of fiduciary duty, breach of the implied covenant of good faith and fair dealing, invasion of privacy, defamation, slander, libel, wrongful denial of benefits, intentional and/or negligent infliction of emotional distress, intentional and negligent misrepresentation, fraud, negligence, any intentional torts and any other claims or actions of any type; provided, however, that ROHRBACKER does not release any claims, if any, for vested benefits or under workers' compensation law.
ROHRBACKER specifically releases any claim against MDCO Releasees for the recovery or award of attorneys' fees, costs, or other expenses, under any of the statutes identified in the prior paragraph or under any other statute, regulation, rule, or other grounds.
ROHRBACKER also releases and give up any claims and rights she may have to severance benefits, or any form of severance or separation pay, except as provided in this Agreement.
ROHRBACKER also releases any and all claims she has for pay, benefits or anything else under the Letter Agreement dated November 11, 2008, as may have been amended, or any other contractual arrangement; provided, however, that she retains her right to exercise stock options within three months of her Resignation Date, as set forth in the applicable stock option agreement.  MDCO will make the required Company contribution on ROHRBACKER's behalf to the 401k plan for 2011, if it has not already been made.  ROHRBACKER is not entitled to a 401k Company contribution for 2012.
ROHRBACKER is releasing all claims described above arising through the Effective Date, including those for any alleged injuries or damages suffered at any time after the date she signs this Agreement by reason of the continued effects of alleged discriminatory acts or other conduct that occurred prior to the date she signs this Agreement.
ROHRBACKER further releases and waives any claim or right to recover any money in any lawsuit or other legal action in which any claim or right to recovery would be within the scope of this Agreement if asserted by any plaintiff or ROHRBACKER herself.
ROHRBACKER agrees that this Agreement provides her with payments she otherwise would not be entitled to receive, which constitute full and adequate consideration for this release.
This release does not apply to rights of ROHRBACKER that may arise after the execution of this Agreement, except that, as stated above, she is releasing all claims for any injuries or damages suffered at any time after the date she signs this Agreement by reason of the continued effects of alleged discriminatory acts or other conduct that occurred prior to the date she signs this Agreement.
b.MDCO releases ROHRBACKER from any and all claims it may have against ROHRBACKER.  This release does not apply to rights of MDCO that may arise after the date of execution of this Agreement.  This Agreement applies to claims resulting from anything that has happened up to the Effective Date (as defined in paragraph 15 of this Agreement).  MDCO releases and gives up any and all claims of any nature whatsoever arising under any federal, state, local or foreign law, including, but not 

2

limited to, those not mentioned in this Agreement, those of which it is not aware, and any claims for or rights to attorneys' fees and costs.  MDCO specifically releases any and all claims and rights in any way relating to or arising out of ROHRBACKER's employment with MDCO.

c.The releases in this paragraph 1 are intended by the parties to be construed to release any and all claims and rights arising on or before the Effective Date to the fullest extent permitted by law.  This paragraph 1 is not intended to limit the parties from instituting legal action for the sole purpose of enforcing this Agreement.

d.MDCO agrees to indemnify ROHRBACKER to the fullest extent permitted by the Delaware Corporation Law and MDCO's Bylaws and/or Certificate of Incorporation from and against any claim, loss or expense, including attorneys' fees and costs, arising out of or relating to any claims, actions or other legal proceedings which in any way relate to her employment by, or position with MDCO.

2.Consideration.  Within thirty (30) days after the Effective Date, in total and complete compromise related to ROHRBACKER's cessation of employment at MDCO and all claims within the release in paragraph 1 (including any claim for attorneys' fees), provided that the properly executed Agreement by ROHRBACKER, as well as properly executed Tax Forms W-4 and/or W-9, are received by MDCO's attorneys, MDCO will make, and ROHRBACKER will be entitled to receive, the following:

a.payment by check made payable to the order of “Leslie C. Rohrbacker” in the total gross sum of Nine Hundred Eighty Four Thousand, Nine Hundred Sixty Two Dollars and No Cents ($984,962.00), less deductions and withholdings required by law, and further deductions of Eight Thousand, Nine Hundred Thirty Dollars and No Cents ($8,930.00) for expenses advanced on ROHRBACKER's behalf.  ROHRBACKER specifically acknowledges that this payment constitutes consideration not otherwise owed to her but for this Agreement.  ROHRBACKER agrees that she will not seek anything further, including any other payment, from MDCO Releasees;

b.payment by check made payable to the order of “Wilentz, Goldman & Spitzer P.A.” in the total gross sum of Sixty Five Thousand Dollars and No Cents ($65,000.00), for attorneys' fees and costs incurred by ROHRBACKER;

c.MDCO will reimburse ROHRBACKER for twelve (12) months of payments under the Consolidated Omnibus Budget Reconciliation Act (COBRA), on a month-by-month basis commencing effective as of the Resignation Date (as defined in paragraph 8 of this Agreement).

d.accelerated vesting of ROHRBACKER's outstanding stock options under Grants 3855, 4033, 4360 and 00003317 effective on the Effective Date, which would have vested within twelve (12) months of the Resignation Date.

It is understood and agreed that IRS Form W-2s will be issued to ROHRBACKER for the payments referenced in paragraph 2(a).  It is also understood and agreed that an IRS Form 1099 will be issued to Wilentz, Goldman & Spitzer, P.A. and ROHRBACKER for the payments referenced in paragraph 2(b).
ROHRBACKER understands and agrees that MDCO Releasees have not made any representations to them concerning the taxability of the payments in this paragraph 2.  ROHRBACKER further understands and agrees that, in the event the Internal Revenue Service, or any other governmental entity, including but not limited to the IRS or State of New Jersey, or any court or other tribunal of competent jurisdiction, alleges that any or all of the payments in this paragraph 2 constitutes income for which any taxes remain due and 

3

owing, she shall be solely responsible for the payment of such taxes, and shall make no claim against MDCO Releasees for payment of any such taxes, or for the payment of any applicable interest or penalties.  In the event it is ultimately determined that any monies are due and owing with respect to the payments, the validity of this Agreement shall not be affected in any way.
3.Consideration.  ROHRBACKER specifically acknowledges that the payments provided under paragraph 2 constitute consideration not otherwise owed to her but for this Agreement and is fully adequate for this Agreement.

4.Waiver of Attorneys' Fees, Costs and Expenses.  ROHRBACKER waives any and all claims for attorneys' fees, costs, and expenses, notwithstanding any statutory or contractual rights that ROHRBACKER might have or have, and notwithstanding any contractual rights in any retainer agreement between ROHRBACKER and her counsel.  ROHRBACKER acknowledges that she will not seek any sum for attorneys' fees, costs, or expenses (except as provided under paragraph 2 above) from MDCO Releasees.

5.No Actions or Proceedings.  ROHRBACKER represents and warrants that she has no pending lawsuits, charges, administrative proceedings, or other claims of any nature whatsoever against MDCO Releasees in any state or federal court, or before any agency or other administrative body.

6.Agreement Not to Sue.  Except as otherwise provided by law, the parties agree, represent and warrant that they will not assert any claims, charges or other legal proceedings against each other in any forum, based on any events, whether known or unknown, occurring prior to the date of the execution of this Agreement.  This paragraph is not intended to limit the parties from instituting legal action for the sole purpose of enforcing this Agreement.

7.Non-Admission of Liability.  This Agreement shall not be construed as an admission by MDCO of any of the acts or omissions alleged by ROHRBACKER, such being expressly denied.  MDCO specifically denies any liability whatsoever for any damages, injuries or other claims by ROHRBACKER, or which could be claimed by ROHRBACKER.

8.No Reinstatement, Future Employment or Contractual Relationship.  ROHRBACKER waives any and all rights or claims which she may have to reinstatement, employment, reemployment or contractual relationship with MDCO or any of its affiliated companies.  She agrees, represents and warrants that she will not knowingly apply for or accept employment, reemployment, reinstatement or contractual relationship with any of said entities at any time in the future; nor will she seek to be assigned or reassigned to any of said entities as an independent contractor or consultant, at any time in the future.  ROHRBACKER hereby resigns from MDCO's employment, effective April 16, 2012 (the “Resignation Date”).

9.Return of Property.  Within ten (10) days after the Effective Date, ROHRBACKER will return to MDCO all equipment, laptop, Blackberry or other equipment, credit cards, and MDCO identification and represents that she does not have any proprietary documents. Within ten (10) days after the Effective Date, MDCO will return to ROHRBACKER any and all personal effects contained in her office or on her computer, as follows:  All photos, the digital photo frame, a leather portfolio that has her 40IK info in it, the decorative wire inbox on her desk, her Certificate from Wharton and personal documents from her desktop that relate to St. Vincent Martyr Vacation Bible School.

10.Confidentiality.  Except as may be necessary to enforce this Agreement, ROHRBACKER agrees to keep confidential the nature and terms of this Agreement, the amount and fact of payment to ROHRBACKER, and any and all discussions, communications and correspondence leading to this 

4

Agreement.  ROHRBACKER also agrees that, in the future, she will keep confidential any and all events, conduct, statements, and/or communications giving rise to or forming the basis for the claims asserted or alleged by ROHRBACKER.  ROHRBACKER shall not disclose any such information in any way to any person or persons, except that she may make such disclosures to her spouse, attorneys, accountants, and/or tax advisors, who shall be obligated to keep this information confidential.  It is the parties' understanding, agreement and expectation that this confidentiality provision shall apply to the fullest extent permissible by law and shall preclude ROHRBACKER from voluntarily or otherwise testifying at or participating in any meeting, proceeding, hearing, trial or preparation for hearing or trial concerning the matters covered by this confidentiality provision, unless compelled to do so by judicial subpoena or other applicable law.  If ROHRBACKER is compelled to testify by a subpoena in any legal proceeding or by a governmental agency, she agrees that she will testify truthfully as to all matters relating to her employment with MDCO or any of its affiliated companies. Prior to making any disclosure authorized by this paragraph, ROHRBACKER shall give MDCO five days' prior written notice, or, if five days' notice is not possible, as much advance notice as is possible, of her intent to make such a disclosure.  MDCO's disclosure regarding this Agreement, as necessary under the rules of the Securities and Exchange Commission, shall not operate as a waiver of the obligations set forth in this paragraph 10.

ROHRBACKER understands and agrees that the confidentiality provisions of this paragraph are a material element of this Agreement, that any breach of the confidentiality provisions would cause irreparable injury, and that injunctive relief is an appropriate remedy in the event of any such breach, in addition to any other claim for damages which MDCO may have against her.  In such event, in all other respects this Agreement shall remain in full force and effect.
11.Non-Disparagement.  

a.ROHRBACKER agrees that she will not disparage or criticize any MDCO Releasee, or issue any communication, written or otherwise, that reflects adversely on or encourages any adverse action against any MDCO Releasee, except if testifying truthfully under oath pursuant to any lawful court order or subpoena or otherwise responding to or providing disclosures required by law.

b.It is also agreed that [**] and all members of the MDCO Board of Directors will not disparage or criticize ROHRBACKER or issue any communication, written or otherwise, that reflects adversely on or encourages any adverse action against ROHRBACKER, except if testifying truthfully under oath pursuant to any lawful court order or subpoena or otherwise responding to or providing disclosures required by law.

c.Attached as Exhibit A is the text of the Current Report on Form 8-K that MDCO will file with the SEC with respect to this Agreement.  MDCO's internal communication regarding the cessation of ROHRBACKER's employment will be limited to a statement that ROHRBACKER has resigned to pursue other interests.

12.Agreement Not to Be Considered or Used as Evidence.  ROHRBACKER agrees that this Agreement shall not be offered, used or considered as evidence in any proceeding of any type against or involving any MDCO Releasee, except to the extent necessary to enforce the terms of this Agreement and except to the extent required by law.

13.Who is Bound.  MDCO Releasees, and ROHRBACKER are bound by this Agreement.  Those who succeed to her rights and responsibilities, such as their heirs, the executors of their estate, or their personal or legal representatives, are also bound.  This Agreement is made for the benefit of the MDCO Releasees 

5

and ROHRBACKER and all who succeed to their rights and responsibilities, such as any successors and/or assigns.

14.Severability.  If any provision of this Agreement, or the application of such provision to any person or circumstance, shall be held invalid or unenforceable, the remaining provisions, or the application of such provisions to persons or circumstances other than those to which it is held invalid or unenforceable, shall not be affected.  However, if the Release by ROHRBACKER contained in this Agreement is found by a court of competent jurisdiction to be invalid or unenforceable, ROHRBACKER agrees, promptly upon the request of MDCO, to execute a new release that is valid and enforceable.

15.Execution.  By signing this Agreement, ROHRBACKER understands that:

a.She has up to 21 days, which she and her attorneys consider a reasonable period of time, to consider this Agreement before executing it;

b.She may revoke this Agreement by delivering a written notice to MDCO' s counsel, Francis X. Dee, Esq., at any time within 7 days after the date this Agreement is executed by her; and 

c.The effective date of this Agreement shall be the date that the revocation period in paragraph 15(b) has expired without ROHRBACKER revoking the Agreement (the “Effective Date”).

16.Entire Agreement.  This Agreement, and any employee noncompete, secrecy or confidentiality agreements ROHRBACKER has signed (which are incorporated into this Agreement by reference), contain the sole and the entire agreement between ROHRBACKER and MDCO, and fully supersede any and all prior agreements and understandings between ROHRBACKER and MDCO pertaining to the subject matter of the Agreement.  This Agreement may be modified only by a writing signed by all parties.  ROHRBACKER represents, warrants, and acknowledges that she has not relied upon any representation or statement by MDCO, or its counsel or representatives, with regard to the subject matter of this Agreement, which is not set forth in this Agreement.  No other promises or agreements shall be binding unless in writing, signed by MDCO, and expressly stated to be a modification of this Agreement.

BY SIGNING THIS SEVERANCE AGREEMENT AND FULL AND FINAL MUTUAL GENERAL RELEASE OF CLAIMS, ROHRBACKER STATES THAT:
A.    SHE HAS READ IT;
B.    SHE UNDERSTANDS IT AND KNOWS THAT SHE IS GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE STATUTES LISTED IN PARAGRAPH ONE (1) ABOVE, AND SHE UNDERSTANDS THAT SHE IS GIVING UP ANY SUCH RIGHTS OR CLAIMS IN EXCHANGE FOR A PAYMENT TO WHICH SHE WAS NOT ALREADY ENTITLED;
C.    SHE AGREES WITH EVERYTHING IN IT;
D.    HER ATTORNEY, WILENTZ, GOLDMAN & SPITZER, P.A., NEGOTIATED THIS SEVERANCE AGREEMENT AND FULL AND FINAL MUTUAL GENERAL RELEASE OF CLAIMS WITH HER KNOWLEDGE AND CONSENT AND HAS FULLY AND SUFFICIENTLY EXPLAINED IT TO HER;
E.    SHE HAS BEEN ADVISED TO CONSULT WITH AN ATTORNEY PRIOR TO 

6

EXECUTING THIS SEVERANCE AGREEMENT AND FULL AND FINAL MUTUAL GENERAL RELEASE OF CLAIMS, AND HAS IN FACT FULLY AND CAREFULLY DONE SO;
E    SHE HAS BEEN GIVEN TWENTY-ONE (21) DAYS - WHICH SHE AND HER ATTORNEY CONSIDER TO BE A REASONABLE PERIOD OF TIME - TO REVIEW AND CONSIDER THIS SEVERANCE AGREEMENT AND FULL AND FINAL MUTUAL GENERAL RELEASE OF CLAIMS PRIOR TO SIGNING IT;
G.    SHE UNDERSTANDS THAT FOR A PERIOD OF SEVEN (7) DAYS FOLLOWING THE EXECUTION OF THIS SEVERANCE AGREEMENT AND FULL AND FINAL MUTUAL GENERAL RELEASE OF CLAIMS, SHE MAY REVOKE THE PROVISIONS OF THIS AGREEMENT BY DELIVERING WRITTEN NOTIFICATION TO MDCO'S COUNSEL;
H.    THIS SEVERANCE AGREEMENT AND FULL AND FINAL MUTUAL GENERAL RELEASE OF CLAIMS DOES NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE SEVEN (7) DAY REVOCATION PERIOD HAS EXPIRED; AND
I.    ROHRBACKER HAS SIGNED THIS SEVERANCE AGREEMENT AND FULL AND FINAL MUTUAL GENERAL RELEASE OF CLAIMS KNOWINGLY AND VOLUNTARILY.
	
		
	LESLIE C. ROHRBACKER
	STATE OF New Jersey
ss.:

	 
	COUNTY OF Middlesex

	/s/ Leslie C. Rohrbacker
Dated:  April 16, 2012
	I hereby state that Leslie C. Rohrbacker personally came before me and executed the within Severance Agreement and Full and Final Mutual General Release of Claims in my presence.

	 
	/s/ Christine Lunsden
Notary Public

	 
	Dated:  Christine Lunsden
Notary Public of New Jersey
My Commission Expires Dec. 2, 2016

	THE MEDICINES COMPANY
	 

	By: /s/ Paul M. Antinori
Title:  Senior Vice President & General Counsel
Authorized Representative
Dated:  April 16, 2012
	 

7

Wilentz, Goldman & Spitzer, P.A. agrees to keep this Severance Agreement and Full and Final Mutual General Release confidential and not to disclose it to anyone. It also agrees to keep confidential any non-public documents involving MDCO.
	
		
	 
	WILENTZ, GOLDMAN & SPITZER, P.A.
90 Woodbridge Center Drive
Suite 900, Box 10
Woodbridge, New Jersey 07095
732-636-8000

	 
	By:  /s/ Maureen Binetti
Maureen Binetti

	 
	Dated:  4/16/12

8

Exhibit A
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549 
--------------------------------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):  April 16,2012
The Medicines Company
(Exact Name of Registrant as Specified in Charter)
	
						
	Delaware
	000-31191
	04-3324394
	 
	 

	(State or Other Jurisdiction
of Incorporation)
	(Commission
File Number)
	(irs Employer
Identification No.)
	 

	8 Sylvan Way
Parsippany, New Jersey 
	7,054

	(Address of Principal Executive Offices)
	(Zip Code)

Registrant's telephone number, including area code:  (973) 290-6000
Not applicable.
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
		
	•
	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

		
	•
	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

		
	•
	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

		
	•
	Pre-commencement communications pursuant to Rule I3e-4(c) under the Exchange Act 07 CFR 240.13e-4(c))

9

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
On April 16, 2012, Leslie C. Rohrbacker resigned as Chief Human Strategy Officer of The Medicines Company (the “Company”) to pursue other interests, effective immediately.  Ms. Rohrbacker had been on leave of absence from the Company since December 6, 2011.  Ms. Rohrbacker was a “named executive officer” in the Company's Proxy Statement related to the Company's 2011 Annual Meeting of Stockholders.
On April 16, 2012, we entered into a severance agreement(the “Severance Agreement”) with Ms. Rohrbacker, pursuant to which Ms. Rohrbacker is entitled to receive the following severance benefits:
		
	•
	a lump sum payment equal to $976,032, less all applicable statutory tax withholdings and deductions;

		
	•
	for a period of twelve months after the resignation date, reimbursement of COBRA health insurance premiums actually paid by Ms. Rohrbacker; and

		
	•
	accelerated vesting of all stock options that Ms. Rohrbacker held immediately prior to her resignation which would have vested within one year after the resignation date.

As part of the Severance Agreement, the Company and Mr. Rohrbacker also entered into mutual releases for all claims through the effective date of the Severance Agreement.  Ms. Rohrbacker remains subject to the non-compete non-solicitation confidentiality and related provisions of her invention and non-disclosure agreement and noncompetition and non-solicitation agreement with the Company.

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
THE MEDICINES COMPANY
	
		
	Date: April 16, 2012
	By: /s/ Paul M. Antinori
Name: Paul M. Antinori
Title:  Senior Vice President and General Counsel

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