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Exhibit 10.3

AMENDMENT NO. 4 TO COAL SUPPLY AGREEMENT

THIS AMENDMENT NO. 4 TO COAL SUPPLY AGREEMENT (“Amendment No. 4”), dated as of January 1, 2020 (“Effective Date”), is by and between WESTMORELAND SAN JUAN MINING LLC, a Delaware limited liability company ("WSJM") and PUBLIC SERVICE COMPANY OF NEW MEXICO, a New Mexico corporation (“Utility”). WSJM and Utility may be referred to herein individually as a “Party” and collectively as the “Parties”.

RECITALS
WHEREAS,  during the 2019 AOP process, Utility submitted a burn plan as required under CSA §7.2(C) and which included a schedule to consume all of the San Juan Station coal inventory during the remaining Term of the CSA, including coal known as “Force Majeure Coal” that is stored in static storage piles at San Juan Station; 

WHEREAS, the 2019 Annual Operating Plan for San Juan Station includes Utility’s planned consumption of the total San Juan Station coal inventory;

WHEREAS, a dispute has arisen over Utility’s contractual right, during the Term of the CSA, to consume the Force Majeure Coal and whether consumption of the Force Majeure Coal would financially harm WSJM;

 WHEREAS, Utility has additional, non-Force Majeure Coal inventory located at the San Juan Station site, as more fully described herein, that it desires to transport and consume;

WHEREAS, the Parties have agreed on terms of settlement to resolve the dispute and wish to incorporate such terms into the CSA and make other related revisions to the CSA as set forth in this Amendment No. 4.
AGREEMENT
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
1.Amendments: Articles 1, 2 and 8 of the CSA are amended as follows:

1.1Article 1 is amended by adding the following definitions:

        1.4(a) Force Majeure Coal

“Force Majeure Coal” shall mean coal contained in the isolated coal pile, located on San Juan Station property, shown on attached Exhibit R and identified as “Force Majeure”.

         1.4(b) A-B Stackout Coal

Page 1   Amendment 4 to Coal Sales Agreement

“A-B Stackout Coal” shall mean the coal contained under and around the A-B Coal Stackout structures as shown in Exhibit R and identified as “A” and “B,” respectively.”

1.2Section 1.9 is amended by adding the following sentences to the end of Section 1.9: 
        
“Utility shall make Force Majeure Coal and A-B Stackout Coal available to WSJM as a direct physical substitute for a like amount of Preexisting Stockpile Coal. The Force Majeure Coal and A-B Stackout Coal shall be treated as Preexisting Stockpile Coal for purposes of billing.”

1.3Section 1.21 is deleted in its entirety and replaced with the following:

“Section 1.21 Tier 1 Price
The Tier 1 Price shall be $35.30 per ton as adjusted by the Quarterly Price Adjustment.  Effective January 1, 2020, the Tier 1 Price shall be $35.30 per ton as adjusted by the Quarterly Price Adjustment, then reduced by $0.75/ton. The $0.75/ton reduction shall be subjected to a one-time true up at the end of the Term. The $0.75/ton reduction shall be increased or decreased based on the number of Force Majeure and A-B Stackout Coal tons delivered above or below 496,427 tons, respectively.”

1.4Section 1.29 is amended by adding the following definition:

“(DDD) “End of Term True-Up”, defined in Section 8.7(C)”

1.5Section 2.1 is hereby amended by deleting “and” from the end of Section 2.1(I), deleting the period and adding “, and” to the end of Section 2.1(J), and adding the following new paragraph (K):
“(K) To economically and efficiently integrate the Force Majeure Coal and A-B Stackout Coal into WSJM’s coal delivery system by blending and/or evenly distributing it with Processed Coal and delivering it to the Delivery Points.”
1.6Section 2.2 is hereby amended by deleting “and” at the end of subsection (A), renumbering current subsection (B) to (C) and inserting the following as subsection (B):

“(B) To provide WSJM an estimated 550,000 tons of Force Majeure Coal and A-B Stackout Coal as a substitute for a like amount of Preexisting Stockpile Coal on a schedule to be determined by the Parties; and” 

1.7Section 8.1 is amended by adding the following sentence at the end of Section 8.1(C):
“For clarity, any coal that SJCC re-delivers to San Juan Station and that belongs exclusively to Tucson Electric Power Company is excluded from the calculations in this Section 8.1(C).” 
Page 2   Amendment 4 to Coal Sales Agreement

1.8Section 8.7 is amended as follows:

        A. Section 8.7(A) is amended by adding the following sentence after the first sentence in the second paragraph:

        “The Monthly Report shall include a breakdown of the number of Force Majeure Coal Tons and A-B Stackout Tons delivered; the number of tons of redelivered coal delivered belonging exclusively to Tucson Electric Power in addition to Processed Coal delivered.”

        B. Section 8.7 is amended by inserting the following as new Subsection 8.7(C) and renumbering the remaining sections:

        “(C) End of Term True-Up

        At the end of the Term, the $0.75/ton reduction in the Tier 1 Price that became effective on January 1, 2020 shall be adjusted proportionately by the actual number of Force Majeure and A-B Stackout Coal tons provided by the Utility and a one-time true up payment calculated and paid. The End of Term True-Up shall be paid by WSJM to the Utility in the event the Utility supplies more than 496,427 combined tons of Force Majeure and A-B Stackout Coal, and the End of Term True-Up shall be paid by Utility to WSJM in the event the Utility provides less than 496,427 of Force Majeure and A-B Stackout Coal to WSJM. An example follows:

Actual Force Majeure and A-B Stackout Coal tons provided 496,427  $0.75 = adjusted inventory price” (rounded to two decimal places)

Adjusted inventory price - $0.75 = Tier 1 price adjustment

An example of calculating the End of Term True-Up is as follows:

Total Force Majeure and A-B Stackout Coal delivered = 550,000 tons 

Adjusted inventory price = 550,000496,427  $0.75 = $.83

Thus, the end of contract adjustment would be as follows:

Tier 1 price adjustment = $0.83 - $0.75 = $.08

End of Term True Up = $0.08 4.9M Tier 1 Tons = $392,000.00”

1.9Exhibit R, SJGS Coal Stockpiles, shall be added to the CSA in the form of Attachment A to this Amendment No. 4.
Page 3   Amendment 4 to Coal Sales Agreement

1.10The list of Exhibits and Attachments to the CSA is amended by adding the following:  

         “Exhibit R SJGS Coal Stockpiles” 

2. Other Terms and Conditions.
2.1 Defined Terms.  All capitalized terms used in this Amendment No. 4 and not otherwise defined or modified herein shall have the meanings set forth in the CSA.

2.2 Full Force and Effect.  Except as expressly amended by this Amendment No. 4, all other terms of the CSA and its amendments remain in full force and effect.

2.3 Counterparts.  This Amendment No. 4 may be executed in one or more counterparts, including by facsimile or electronic signature, but each such counterpart shall be deemed an original and all such counterparts shall be deemed one and the same instrument.

2.4 Entire Amendment; Successors and Assigns.  This Amendment No. 4 contains the entire understanding of the Parties and supersedes all prior agreements and understandings between the Parties relating to the subject matter herein.  This Amendment No. 4 shall be binding upon and inure to the benefit of the Parties’ respective successors and permitted assigns.

[Signatures are on following pages]

Page 4   Amendment 4 to Coal Sales Agreement

IN WITNESS WHEREOF, the Parties have executed this Amendment No. 4 as of the Effective Date.
						
	PUBLIC SERVICE COMPANY OF NEW MEXICO

By: /s/ Thomas Fallgren 

Name:  Thomas Fallgren 

Title:  VP PNM Generation 

	WESTMORELAND SAN JUAN MINING

By:  /s/ Jeremy D. Cottrell 

Name:  Jeremy D. Cottrell 

Title:  Secretary 

Page 5   Amendment 4 to Coal Sales Agreement

Attachment A to CSA Amendment No. 4
Exhibit R to be added to the CSADocument

Exhibit 10.8

			
	
	PNM RESOURCES, INC.
	2020 OFFICER ANNUAL INCENTIVE PLAN
	

Introduction
PNM Resources, Inc. (the “Company” or “PNMR”) has adopted this 2020 Officer Annual Incentive Plan (the “Plan”) for the purpose of providing annual cash-based incentive awards (each an “Award”) to eligible Officers (as defined below).  The Awards payable to Officers under the Plan are intended to qualify as Performance Cash Awards granted pursuant to Section 7.2 of the PNM Resources, Inc. 2014 Performance Equity Plan (the “PEP”).  For the avoidance of doubt, the Awards are not intended to qualify as Performance-Based Awards granted pursuant to Section 10 of the PEP.
Capitalized terms used in the PEP and not otherwise defined in this Plan document have the meanings given to them in the PEP.
Eligibility
All Officers of the Company are eligible to participate in the Plan.  For purposes of the Plan, the term “Officer” means any employee who: (1) has the title of Chief Executive Officer, Executive Vice President, Senior Vice President or Vice President; and (2) who is in salary grade H18 or higher.
Award Determinations in General
Awards are based on: (1) the Incentive Earnings Per Share (“Incentive EPS”) levels (as described below and as set forth in Table 1 of Attachment A) for the Performance Period; (2) the weighting between Corporate and Business Area Goals (as set forth in Table 2 of Attachment A); and (3) Award levels (as set forth in Table 3 of Attachment A) achieved during the Performance Period.  The Performance Period began on January 1, 2020 and will end on December 31, 2020. 
An Officer’s Award will equal the Officer’s share of the Incentive EPS Award Pool as described below.  If, however, the Officer’s share of the appropriate Performance Award Pool as described below is less than the Officer’s share of the Incentive EPS Award Pool, the Officer will receive the smaller amount.
An Officer’s share of the Incentive EPS Award Pool or the Performance Award Pool (each, an “Award Pool”), as applicable, will be based upon the amount potentially payable to the Officer for the attained level of performance (Threshold, Target or Maximum, as determined in accordance with Table 3 of Attachment A), as compared to the aggregate amounts potentially payable for the attained level of performance to all of the Officers who are entitled to share in that Award Pool.  In determining the amount potentially payable to an Officer, the Officer’s base salary will be determined as of December 31, 2020.  In no event will the amount payable to an Officer exceed the indicated percentage of the Officer’s base salary for the attained performance level set forth in 

Table 3 of Attachment A.  In addition, in no event will the amount payable to one Officer be increased due to a decrease in the amount payable to any other Officer.
Incentive EPS Award Pool
In order for any Awards to be payable to eligible Officers, the Company must achieve the Threshold Incentive EPS level set forth in Table 1 of Attachment A.  If the Company does not achieve the Threshold Incentive EPS level (calculated before any charges for amounts due pursuant to this Plan), no Awards are payable under the Plan to any Officer.  If the Company achieves the Threshold Incentive EPS level (calculated before any charges for amounts due pursuant to this Plan), but the charges for amounts due pursuant to this Plan reduce the Incentive EPS to an amount below the Threshold Incentive EPS level, the Threshold level Incentive EPS Award Pool shall be reduced by the amount necessary to assure that the Incentive EPS is equal to the Threshold Incentive EPS level, unless the Committee, in the exercise of its discretion concludes that no Awards should be payable.
If the Threshold, Target or Maximum Incentive EPS levels set forth in Table 1 of Attachment A are achieved, the aggregate potential Awards payable to the Officers at that level of performance (e.g., the aggregate level of Awards payable at Threshold, Target or Maximum set forth in Table 3 of Attachment A) will make up the “Incentive EPS Award Pool.”  If the actual Incentive EPS exceeds the minimum level for a performance level by at least $0.01, but is less than the maximum level for that performance level (e.g., if the actual Incentive EPS exceeds $2.16 but is less than $2.20), the Incentive EPS Award Pool will be increased by using straight-line interpolation between the size of the Incentive EPS Award Pool based on the attained level (e.g., Threshold) and the size of the Incentive EPS Award Pool at the next higher level (e.g., Target).  The Committee has the discretion to increase the Incentive EPS Award Pool by a lesser amount than would otherwise apply under straight-line interpolation.  The Incentive EPS Award Pool is capped by the aggregate Maximum Awards set forth in Table 3 of Attachment A for all eligible Officers.
Performance Award Pool
A Corporate Goals Scorecard and Business Area Goals Scorecard listing each performance measure established by the Committee will be maintained by the PNMR Services Company Human Resources Department.  As set forth in Table 2 of Attachment A, the performance of the Chief Executive Officer and the Senior Officers (the Executive Vice President and the Senior Vice Presidents) are measured 100% on the Corporate Goals Scorecard.  Vice Presidents are measured 60% on the Corporate Goals Scorecard and 40% on the Business Area Goals Scorecard.
The “Performance Award Pool” for each Business Area is the amount that could be paid in the aggregate to the Vice Presidents assigned to that Business Area based on performance alone, determined by using the following multi-step process:
a)Select the scorecard results from the appropriate Corporate Goals Scorecard and Business Area Goals Scorecard;
b)Then multiply each result by the appropriate weighting for the scorecard as set forth in Table 2 of Attachment A;
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c)Then multiply the total Vice President salaries for that Business Area by the Target Award Level as set forth in Table 3 of Attachment A;
d)Then multiply the result of each scorecard (Step b), expressed as a percentage of Target, by the aggregate base salaries of the Vice Presidents included in that Business Area (Step c); and
e)Sum the results for the Vice President participants.
The Performance Award Pool for the Chief Executive Officer and the Senior Officers will be constructed by using the same process but will be based solely upon the Corporate Goals Scorecard.
Award Approval and Payout Timing
In early 2021, management will review the level of Awards, if any, and will provide the final Awards calculation to the Committee.  The Committee will review the level of Awards and the Awards calculation and will approve the Awards for all Officers, other than the Chief Executive Officer.  The independent directors of the Board will approve the Chief Executive Officer’s Award.  To the extent Awards are payable under the Plan, the Company will make the payment on or before March 15, 2021 in a single lump sum cash payment, subject to applicable withholding.
The Committee shall retain the authority to adjust the Incentive EPS Award Pool and the Performance Award Pool, to adjust the level of attainment of the Incentive EPS or Corporate Goals and Business Area Goals Scorecards or to otherwise increase or decrease the amount payable with respect to any Award made pursuant to this Plan.  
Provisions for a Change in Control
If a Change in Control occurs during the Performance Period and the Officer remains employed by the Company or an Affiliate at the end of the Performance Period, the Officer may be entitled to receive an Award for the Performance Period as determined in accordance with the provisions of this Plan.  If the Plan is modified after the occurrence of a Change in Control in a manner that has the effect of reducing the amounts otherwise payable under the Plan, an Officer who remains employed by the Company or an Affiliate at the end of the Performance Period will receive, at a minimum, an Award equal to 50% of the Maximum Award available under this Plan for the Performance Period.
If an Officer terminates employment with the Company or an Affiliate during the Performance Period due to a Qualifying Change in Control Termination, the Officer may be entitled to receive a special payment pursuant to the PNM Resources, Inc. Officer Retention Plan in lieu of any payments under this Plan.
Pro-rata Awards for Partial Service Periods
In certain circumstances (as set forth below) Officers may or may not be eligible for a pro-rata Award under the Plan.

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The following Officers are not eligible for any Award, including a pro-rata Award:
–Officers who terminate employment with the Company or an Affiliate on or before the date on which Awards are distributed for the Performance Period for any reason other than death, Impaction (as defined in the PNM Resources, Inc. Non-Union Severance Pay Plan), Retirement or Disability.  As noted above, Officers who terminate employment with the Company or an Affiliate during the Performance Period due to a Qualifying Change in Control Termination may be entitled to receive a special payment pursuant to the PNM Resources, Inc. Officer Retention Plan in lieu of any payments under this Plan.
–Officers who elect voluntary separation or Retirement in lieu of termination for performance or misconduct.
The following Officers may be eligible for a pro-rata Award:
–Officers who are newly hired during the Performance Period and are employed by the Company or an Affiliate on the day on which Awards are distributed for the Performance Period.
–Employees or Officers who are promoted, transferred or demoted during the Performance Period and are employed by the Company or an Affiliate on the day on which Awards are distributed for the Performance Period.  An employee or Officer who is promoted, transferred or demoted during the Performance Period and subsequently terminates employment due to death, Impaction, Retirement or Disability during the Performance Period will remain eligible for a pro-rata Award. 
–Officers who are on leave of absence for any full month(s) during the Performance Period and are employed by the Company or an Affiliate on the day on which Awards are distributed for the Performance Period.
–Officers who terminate employment with the Company or an Affiliate during the Performance Period due to Impaction (as defined in the PNM Resources, Inc. Non-Union Severance Pay Plan), Retirement or Disability.
–Officers who die during the Performance Period, in which case the Award will be paid to the spouse of a married Officer or the estate of an unmarried Officer.
If an Officer is eligible for a pro-rata Award, it will be calculated based on the number of full month(s) that the Officer was actively employed at each eligibility level during the Performance Period compared to the number of full months included in the Performance Period.  (Note:  Only months in which the Officer is actively employed on the payroll on the first and last day of the month will count as a full month.)  If an Officer who is eligible for a pro-rata Award is not employed on December 31, 2020, the pro-rata Award for the eligible Officer will be calculated using the Officer’s base salary on the date of his termination of employment.  Any pro-rata Award to which an Officer becomes eligible pursuant to this paragraph will be paid to the Officer in a single lump sum cash payment subject to applicable withholding, on or before March 15, 2021.

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Ethics
The purpose of the Plan is to fairly reward performance achievement.  Any Officer who manipulates or attempts to manipulate the Plan for personal gain at the expense of customers, shareholders, other employees or the Company or its Affiliates will be subject to disciplinary action, up to and including termination of employment, and will forfeit and be ineligible to receive any Award under the Plan.
Continuation of Employment
This Plan does not confer upon any Officer any right to continue in the employment of the Company or any Affiliate and does not limit the right of the Company or any Affiliate, in its sole discretion, to terminate the employment of any Officer at any time.  This Plan also does not limit any right that the Company or any Affiliate has to terminate the employment of any Officer in accordance with any written employment agreement the Company and Officer may have.
Clawbacks
All Awards issued under this Plan are subject to potential forfeiture or recovery to the fullest extent called for by the Company’s Clawback Policy.  By accepting an Award, an Officer consents to the Clawback Policy and agrees to be bound by and comply with the Clawback Policy and to return the full amount required by the Clawback Policy.  
Amendments
The Committee, in its sole discretion, reserves the right to adjust, amend or suspend the Plan during the Performance Period.  The Senior Vice President and General Counsel is hereby authorized to correct any typographical or similar errors in the Plan and any other documents issued in connection with the Plan.

   /s/ Patrick Apodaca   
Patrick V. Apodaca
SVP and General Counsel

Dated:  March  30 , 2020

5

ATTACHMENT A

Incentive EPS Table 
(Table 1)
						
		Incentive EPS1

	No Award	Less than $2.16
	Threshold	Greater than or equal to $2.16 and less than $2.20
	Target	Greater than or equal to $2.20 and less than $2.26
	Maximum	Greater than or equal to $2.26

Scorecard Weighting Table 
(Table 2)
									
	Scorecard Results		
	Scorecard Level	Corporate Weighting	Business Area Weighting
	CEO & Senior Officers	100%	0%
	Vice Presidents	60%	40%

Award Levels Table 
(Table 3)
												
	Award Levels	Threshold	Target	Maximum
	CEO	57.5%	115%	230%
				
	EVP	37.5%	75%	150%
	SVP	27.5%	55%	110%
				
	Vice-Presidents	20%	40%	80%

_______________________________
1 Equals PNMR's diluted EPS for the fiscal years ending December 31, 2020 calculated in accordance with Generally Accepted Accounting Principles and reported in the Company's Form 10-K for PNMR adjusted to exclude the following items: (1) mark-to-market impact of economic hedges, (2) regulatory disallowances, (3) net change in unrealized gains and losses on investment securities, (4) gains or losses on reacquired debt, (5) goodwill or other asset impairments, (6) impacts of acquisition and disposition activities, including but not limited to pension expense or income associated with Public Service Company of New Mexico's ("PNM") former gas utility operations, (7) impact of the Company's adoption of an accounting pronouncement or the Company's adoption of a change in accounting pronouncement on or after February 21, 2020, (8) the loss, impairment, or write-up of any deferred tax asset or liability that was earned and recognized in a prior tax year, but that must be revalued in the current year, (9) judgments entered or settlements reached in litigation or other regulatory proceedings, (10) increases or decreases in the liabilities associated with PNM's retired generating stations, including but not limited to expenses incurred in demolition or environmental work of such generating stations, (11) costs associated with process improvement initiatives, (12) expected credit loss allowances or reversals, and (13) changes to the liabilities associated with mine reclamation costs including but not limited to (a) changes in the discount rate used to measure those liabilities, (b) an early retirement of generating stations or (c) actions taken by the New Mexico Public Regulation Commission.

A-1

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