SEC Contract Filing

Filing Date: 2022-04-28

Document Content:
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>pnm3312022ex103.htm
<DESCRIPTION>EX-10.3
<TEXT>
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<title>Document</title></head><body><div id="ibff3286c543f422cad88cc6b01cb0333_1"></div><div style="min-height:63pt;width:100%"><div style="text-align:right"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:100%">Exhibit 10.3</font></div></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:14pt;font-weight:700;line-height:120%">PNM RESOURCES, INC.<br>2022 LONG-TERM INCENTIVE PLAN</font></div><div style="text-align:justify"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:100%;text-decoration:underline">Introduction</font></div><div style="padding-left:36pt;text-align:justify;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:100%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:100%;padding-left:13.8pt">The 2022 Long-Term Incentive Plan (the &#8220;Plan&#8221;) provides eligible Officers of PNM Resources, Inc. (the &#8220;Company&#8221; or &#8220;PNMR&#8221;) with the opportunity to earn Performance Share Awards (70% of the total opportunity) and time-vested Restricted Stock Rights Awards (30% of the total opportunity). For purposes of the Plan, &#8220;Officer&#8221; means any Officer of the Company who&#58; (1) has the title of Chief Executive Officer, Executive Vice President, Senior Vice President, Vice President or higher&#59; and (2) who is in salary grade H18 or higher. </font></div><div style="margin-bottom:0.06pt;text-align:justify"><font><br></font></div><div style="padding-left:36pt;text-align:justify;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:100%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:100%;padding-left:13.8pt">The number of Performance Shares earned by an Officer for the Performance Period (as described below) will depend on the Officer&#8217;s position (</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:100%">e.g.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:100%">, Chief Executive Officer, Executive Vice President, Senior Vice President or Vice President), the Officer&#8217;s base salary and the Company&#8217;s level of attainment of an Earnings Growth Goal and a FFO&#47;Debt Ratio Goal, as described below and in Attachment A.</font></div><div style="margin-bottom:0.06pt;text-align:justify"><font><br></font></div><div style="padding-left:36pt;text-align:justify;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:100%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:100%;padding-left:13.8pt">The number of time-vested Restricted Stock Rights granted to an Officer at the end of each Performance Period will depend on the Officer&#8217;s position, the Officer&#8217;s base salary and the discretion of the Committee.</font></div><div style="margin-bottom:0.06pt;text-align:justify"><font><br></font></div><div style="text-align:justify"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:100%;text-decoration:underline">Performance Period</font></div><div style="margin-bottom:0.06pt;text-align:justify"><font><br></font></div><div style="padding-left:36pt;text-align:justify;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:100%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:100%;padding-left:13.8pt">The Performance Period began on January&#160;1, 2022 and will end on December&#160;31, 2024.</font></div><div style="margin-bottom:0.06pt;text-align:justify"><font><br></font></div><div style="text-align:justify"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:100%;text-decoration:underline">Performance Goals</font></div><div style="margin-bottom:0.06pt;text-align:justify"><font><br></font></div><div style="padding-left:36pt;text-align:justify;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:100%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:100%;padding-left:13.8pt">The number of Performance Shares that an Officer will receive for the Performance Period will depend on the Company&#8217;s level of attainment of an Earnings Growth Goal and a FFO&#47;Debt Ratio Goal.</font></div><div style="margin-bottom:0.06pt;text-align:justify"><font><br></font></div><div style="padding-left:36pt;text-align:justify;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:100%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:100%;padding-left:13.8pt">These goals and the corresponding Awards are described in the Performance Goal Table (Attachment&#160;A).</font></div><div style="margin-bottom:0.06pt;text-align:justify"><font><br></font></di