Document:

Exhibit 10.1

    
      

    

    Exhibit
      10.1

    FIRST
      AMENDMENT

    TO
      THE

    PNM
      RESOURCES, INC.

    AMENDED
      AND RESTATED

    OMNIBUS
      PERFORMANCE EQUITY PLAN

    

    PNM
      Resources, Inc. (the “Company”) previously established the “PNM Resources, Inc.
      Omnibus Performance Equity Plan” (the “Plan”). The Plan was amended and
      restated, effective as of May 17, 2005, by the adoption of the PNM Resources,
      Inc. Amended and Restated Omnibus Performance Equity Plan. By this instrument,
      the Company wishes to amend the Plan to clearly provide that a transfer to
      an
“Affiliate” will not be considered a termination of employment and to add a
      definition of “Affiliate.”

    1. This
      First Amendment shall be effective as of January 1, 2007.

    2. This
      First Amendment amends only the provisions of the Plan as set forth herein,
      and
      those provisions not expressly amended hereby shall be considered in full force
      and effect. Notwithstanding the foregoing, this First Amendment shall supersede
      the provisions of the Plan to the extent those provisions are inconsistent
      with
      the provisions and intent of this First Amendment.

    3. Section
      2.1 (Definitions)
      of the
      Plan is hereby amended by adding the following new paragraph (ff) to the end
      thereof: 

     

    (ff) “Affiliate”
      means
      any member a “controlled group of corporations” (within the meaning of
      Section 414(b) of the Code as modified by Section 415(h) of the Code)
      that includes the Company as a member of the group; and any member of a group
      of
      trades or businesses under common control (within the meaning of
      Section 414(c) of the Code as modified by Section 415(h) of the Code)
      that includes the Company as a member of the group. In applying Section
      1563(a)(1), (2) and (3) of the Code for purposes of determining the members
      of a
      controlled group of corporations under Section 414(b) of the Code, the language
      “at least 50 percent” shall be used instead of “at least 80 percent” each place
      it appears in Section 1563(a)(1), (2) and (3) and in applying Treas. Reg.
§ 1.414(c)-2 for purposes of determining the members of a group of trades
      or businesses (whether or not incorporated) that are under common control for
      purposes of Section 414(c) of the Code, the language “at least 50 percent” shall
      be used instead of “at least 80 percent” each place it appears in Treas. Reg. §
1.414(c)-2. 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3. Section
      13 (Termination
      of Employment)
      of the
      Plan is hereby amended by adding the following new paragraph 13.6 to the end
      thereof: 

    13.6 Transfer
      to Affiliate.

    (a) Transfer
      of Employer to Affiliate.
      If
      a
      Participant is employed by an Employer and ownership of the Employer is
      transferred to an Affiliate, the Participant will not be treated as having
      incurred a termination of employment for purposes of the Plan, regardless of
      whether the Affiliate has adopted the Plan.

     

    (b) Transfer
      of Participant to Non-adopting Affiliate. If
      a
      Participant leaves the employ of an Employer to become employed by an Affiliate,
      the Participant will not be treated as having incurred a termination of
      employment for purposes of the Plan, regardless of whether the Affiliate has
      adopted the Plan.

     

    IN
      WITNESS WHEREOF, PNM Resources, Inc. has caused this First Amendment to be
      executed as of this 14th
      day of
      February, 2007.

    PNM
      RESOURCES, INC.

     

    By: /s/
      Alice A. Cobb   

    Its:
      Senior
      Vice President & CAO 

    
2Exhibit 10.2

    
      

    

    Exhibit
      10.2

    STOCK
      OPTION AWARD AGREEMENT

    PNM
      RESOURCES, INC. 

    OMNIBUS
      PERFORMANCE EQUITY PLAN

     

    PNM
      Resources, Inc., a New Mexico corporation (“PNM” or the “Company”), hereby
      awards to «First» «Last»
      (the
“Optionee”), an employee of the Company and a Participant in the PNM Resources,
      Inc. Omnibus Performance Equity Plan (the “Plan”), as it may be amended, a
      non-qualified stock option (“Option” or “Options”) to purchase up to, but not to
      exceed in the aggregate «Stock_Options_»
      shares
      of Common Stock of the Company (“Stock”), at an Exercise Price of
      ______
      per share,
      subject
      to the following terms and conditions. The grant is given effective as of the
      ___ day of _______, 2007 (the “Grant Date”).

     

    Capitalized
      terms used in this Stock Option Award Agreement (the “Agreement”) and not
      otherwise defined herein shall have the meanings given to such terms in the
      Plan.

     

    1.  Grant.
      This
      Option is granted pursuant to the Plan, the terms of which are hereby
      incorporated by reference.

     

    2.  Vesting.

     

    (a) Except
      as
      set forth herein below, these Options shall vest in the following manner: (i)
      at
      the end of the first anniversary of the Grant Date, 33%; (ii) at the end of
      the
      second anniversary of the Grant Date, 67%; and (iii) at the end of the third
      anniversary of the Grant Date, 100%.

     

    (b) Upon
      (i)
      the death, Disability, Retirement or Impaction of the Optionee, (ii) a Change
      in
      Control of the Company, or (iii) events resulting in full vesting as otherwise
      described in Section 13.1 of the Plan, all nonvested Options shall be 100%
      vested.

     

    (c) Upon
      the
      involuntary or voluntary termination of employment of an Optionee for reasons
      other than those set forth in Subparagraph (b) above, the Option, if not
      previously vested, shall be canceled.

     

    (d) Upon
      termination of employment with the Company for Cause, all Options (vested and
      nonvested) shall be terminated and forfeited immediately.

     

    3.  Exercise
      of Options.

     

    (a) Timing
      of Exercise.
      Generally, the vested Options shall be exercisable at any time following the
      vesting thereof, on or before the earlier of (i) three (3) months following
      an
      Optionee’s voluntary termination or involuntary termination of employment with
      the Company for reasons other than Impaction or Cause; (ii) three (3) years
      following an Optionee’s termination due to Death, Disability, Retirement,
      Impaction or Change In Control of the Company; or (iii) the tenth anniversary
      date of the Grant Date of the Options. The time period during which Optionee
      may
      exercise any Option will not be extended for any reason. The Company does not
      represent or guarantee that the Options granted hereunder will actually be
      exercisable throughout the exercise period. Factors that could affect the
      exercisability of the Options or the Optionee’s desire to exercise the Options
      include, but are not limited to, the price of Company Stock remaining below
      the
      exercise price for any Option, black-out periods that preclude the sale of
      Stock
      acquired through the exercise of any Option, lock-up agreements, or lapse of
      the
      exercise period.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Optionee
      is responsible for ascertaining the times and conditions applicable to the
      exercise of each Grant of Options awarded under the Plan.

     

    (b) Time
      and Method of Payment.
      The
      Options shall be exercised by the Optionee giving written notice to the Company
      of his or her intent to exercise the Options, along with the tendering of cash
      in full payment of the Exercise Price of the Options being exercised, times
      the
      number of such Options being exercised. Alternatively, in lieu of cash, the
      Exercise Price may be paid, in full or in part by the Optionee, by delivery
      to
      the Company (through actual tender or by attestation), of Stock of the Company
      owned by the Optionee for more than six months. The amount credited against
      the
      Exercise Price for Stock being assigned and delivered to the Company shall
      equal
      the Fair Market Value of the Stock on the date of transfer times the number
      of
      shares being assigned and delivered. In addition, the Exercise Price for any
      Option may be paid through a broker-assisted “cashless exercise” arrangement by
      the Optionee’s delivery of written notice to the Company of his or her intent to
      exercise the Options together with irrevocable instructions to the broker to
      promptly deliver to the Company the amount of the sale or loan proceeds that
      is
      equal to the Exercise Price. For
      Optionees subject to Section 16 of the Exchange Act and key employees as
      specified in the Insider Trading Policy, pre-clearance for sales of stock
      (including a broker-assisted “cashless exercise”) shall be obtained from the
      Senior Vice President and General Counsel at PNM Resources, Inc., Alvarado
      Square, Albuquerque, New Mexico 87158, or his/her
      successor.

     

    (c) Exercise
      Following Optionee’s Death.
      If an
      Optionee dies, whether or not the Optionee is an employee of the Company at
      the
      date of such death, without having fully exercised his or her vested Options,
      the personal representative or the person receiving such Options from the
      Optionee or his or her estate shall have the right to exercise the Options
      pursuant to the timing and methods set forth in Subparagraphs (a) and (b)
      above.

     

    (d) Delivery
      of Shares.
      Within
      an administratively reasonable period of time after the exercise of an Option
      and the payment of the full Exercise Price, and after satisfaction of all
      applicable withholding requirements, the Optionee shall receive a Stock
      certificate evidencing his or her ownership of such Stock. An Optionee shall
      have none of the rights of a shareholder with respect to Options until the
      date
      a Stock certificate is issued in the Optionee’s name. No adjustment will be made
      for dividends or other rights for which the record date is prior to the date
      such Stock certificate is dated.

     

    (e) Holding
      Period.
      The
      shares of Stock obtained upon the exercise of any Option granted hereunder
      may
      not, if necessary to meet Rule 16b-3 requirements, be sold by an Optionee
      subject to Section 16 of the Exchange Act until six (6) months after the
      delivery to the Participant of the Stock Option Award Agreement.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    4.  Adjustments.
      Neither
      the existence of the Plan nor this Option shall affect, in any way, the right
      or
      power of the Company to make or authorize: any or all adjustments,
      recapitalizations, reorganizations, or other changes in the Company’s capital
      structure or its business; or any merger or consolidation of the Company; or
      the
      dissolution or liquidation of the Company; or any sale or transfer of all or
      any
      part of its assets or business; or any corporate act or proceeding, whether
      of a
      similar character or otherwise; all of which, and the resulting adjustments
      in,
      or impact on, the Option are more fully defined in Section 5.3 of the
      Plan.

     

    5.  Withholding
      and Deductions.
      The
      Company shall have the right to deduct from any payments made by the Company
      to
      the Optionee any federal, state or local taxes of any kind as are required
      by
      law to be withheld with respect to the exercise of Options granted hereunder.
      The Company also shall have the right to take such other actions as may be
      necessary in the opinion of the Company to satisfy all obligations for
      withholding and payment of such taxes, including, in its sole discretion, and
      subject to the provisions of applicable law and to any conditions the Committee
      may determine to be necessary in order to comply with all applicable conditions
      of Rule 16b-3 or its successors under the Exchange Act, to permit the Optionee,
      at the Optionee’s election, to satisfy, in whole or in part, any tax withholding
      obligation which may arise in connection with the exercise of Options by
      requesting that the Company withhold shares of Stock having a Fair Market Value
      of the Stock equal to the amount of the income tax withholding. Any shares
      of
      Stock deliverable to the Optionee under the terms of this Agreement also are
      subject to offset by the Company, and the Optionee hereby authorizes such
      offset, to liquidate and reduce any outstanding debt or unpaid sums owed by
      the
      Optionee to the Company or its successor.

     

    6.  Compliance
      with Exchange Act.
      With
      respect to Optionees subject to Section 16 of the Exchange Act, Options granted
      or exercised pursuant to this Award are intended to comply with all applicable
      conditions of Rule 16b-3 or its successors under the Exchange Act. 

     

    7.  Dividend
      Equivalents.
      The
      Optionee will not be entitled to receive a dividend equivalent for any of the
      shares of Stock subject to the Options granted hereunder.

     

    8.  Non-Assignability.
      Options
      shall not be transferable other than by will or by the laws of descent and
      distribution, and during Optionee’s lifetime shall be exercisable only by the
      Optionee. The Options are otherwise non-assignable. (See Section 14 of the
      Plan). 

     

    9.  Optionee
      Representation.
      As a
      condition to the exercise of any Option, the Company may require a
      representation from the person exercising the Option that the Stock is being
      acquired only for investment purposes and without any present intention to
      sell
      or distribute such shares. 

     

    10.  Employment
      Agreement.
      Notwithstanding anything to the contrary herein contained in this Agreement,
      (a)
      neither the Plan nor this Agreement is intended to create an express or implied
      contract of employment for a specified term between the Optionee and the Company
      and (b) unless otherwise expressed or provided, in writing, by an authorized
      officer, the employment relationship between the Optionee and the Company shall
      be defined as “employment at will” wherein either party, without prior notice,
      may terminate the relationship with or without cause.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    11.  Regulatory
      Approvals and Listing.
      The
      Company shall not be required to issue any certificate for shares of Stock
      upon
      the exercise of an Option granted under the Agreement prior to satisfying any
      regulatory or registration approval, qualification or ruling from the Securities
      and Exchange Commission, the Internal Revenue Service or any other governmental
      agency which the Committee, in its sole discretion, shall determine to be
      necessary or advisable. (See Section 20.1 of the Plan). 

     

    12.  Nonstatutory
      Stock Option.
      The
      Options granted hereunder are nonstatutory (non-qualified) stock options, and
      are not “incentive stock options” pursuant to the Code. 

     

    13.  Administration.
      This
      Agreement shall at all times be subject to the terms and conditions of the
      Plan
      and the Plan shall in all respects be administered by the Committee in
      accordance with the terms of and as provided in the Plan. The Committee shall
      have the sole and complete discretion with respect to the interpretation of
      this
      Agreement and the Plan, and all matters reserved to it by the Plan. The
      decisions of the majority of the Committee with respect thereto and to this
      Agreement shall be final and binding upon Optionee and the Company. In the
      event
      of any conflict between the terms and conditions of this Agreement and the
      Plan,
      the provisions of the Plan shall control

     

    14.  Waiver
      and Modification.
      The
      provisions of this Agreement may not be waived or modified unless such waiver
      or
      modification is in writing signed by the Company. 

     

    15.  Validity
      and Construction.
      The
      validity and construction of this Option shall be governed by the laws of the
      state of New Mexico.

     

    MANY
      OF THE PROVISIONS OF THIS AWARD AGREEMENT ARE SUMMARIES OF SIMILAR PERTINENT
      PROVISIONS OF THE PLAN. TO THE EXTENT THIS AGREEMENT IS SILENT
ON
      AN ISSUE OR THERE IS A CONFLICT BETWEEN THE PLAN AND THIS AGREEMENT, THE PLAN
      PROVISIONS SHALL CONTROL.

     

    IN
      WITNESS WHEREOF, the Company has caused this Stock Option Award Agreement to
      be
      executed, effective as of ____________________. 

     

    
      
         

        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    PNM
      RESOURCES, INC. 

    

    

    

    By
      :
      __________________________

    JEFFRY
      E. STERBA

    Chairman,
      President and Chief Executive

    Officer

    
      
         

        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    ACKNOWLEDGEMENT
      BY OPTIONEE

    

    By
      signing below, the Optionee acknowledges receipt of a copy of the Stock Option
      Award Agreement dated ___________ ___, 2007 and the Plan and further
      acknowledges that the Options granted under the terms of the Award Agreement
      are
      governed by the terms and conditions of the Plan and the Award
      Agreement.

    

    

    

    _________________________________________

    (Name
      of
      Optionee)

    

    _________________________________________

    (Signature
      of Optionee)

     

     

    6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]