Exhibit 10.2
SECOND AMENDMENT TO AMENDED AND RESTATED
RECEIVABLES PURCHASE AGREEMENT
     THIS SECOND AMENDMENT TO AMENDED AND RESTATED RECEIVABLES PURCHASE
AGREEMENT (this “Amendment”), dated as of May 15, 2007, is entered into among
P&L RECEIVABLES COMPANY, LLC, (the “Seller”), PEABODY ENERGY CORPORATION, (the
“Servicer”), the various Sub-Servicers listed on the signature pages hereto (the
“Sub-Servicers”), Market Street Funding LLC (as successor to Market Street
Funding Corporation, the “Issuer”), the financial institutions party to the
Agreement (as defined below) as LC Participants (the “LC Participants”), and PNC
BANK, NATIONAL ASSOCIATION, as Administrator (the “Administrator”) and as LC
Bank (the “LC Bank”).
RECITALS
     1. The parties hereto are parties to the Amended and Restated Receivables
Purchase Agreement, dated as of September 30, 2005 (as amended, amended and
restated, supplemented or otherwise modified through the date hereof, the
“Agreement”); and
     2. The parties hereto desire to amend the Agreement as hereinafter set
forth.
     NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:
     SECTION 1. Certain Defined Terms. Capitalized terms that are used but not
defined herein shall have the meanings set forth in the Agreement.
     SECTION 2. Amendments to the Agreement.
     (a) Clause (a) of the definition of “Defaulted Receivable” set forth in
Exhibit I to the Agreement is hereby amended and restated in its entirety as
follows:
(a) as to which any payment, or part thereof, remains unpaid for more than
60 days from the due date for such payment (which shall be determined without
regard to any credit memos or credit balances available to the Obligor);
provided, that, any Receivable the related Obligor of which is TVA that would
otherwise have become a Defaulted Receivable pursuant to this clause (a) during
the calendar month of March 2007 shall not be deemed a Defaulted Receivable, or
     (b) The definition of “Purchase Limit” set forth in Exhibit I to the
Agreement is hereby amended by deleting the amount “$225,000,000” therein and
substituting the amount “$275,000,000” therefor.
     (c) The percentage set forth in clause (g)(ii)(C) of Exhibit V to the
Agreement is hereby amended by deleting the percentage “1.50%” therein and
substituting the percentage “2.50%” therefor.

 

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     (d) The “Commitment” amount set forth below the LC Bank/LC Participant’s
signature to the Agreement is hereby amended to be the amount set forth below
the LC Bank/LC Participant’s signature hereto.
     SECTION 3. Representations and Warranties. Each of the Seller, Servicer and
the Sub-Servicers hereby represents and warrants to the Administrator and the
Purchasers as follows:
     (a) Representations and Warranties. The representations and warranties made
by it in the Transaction Documents are true and correct as of the date hereof
(unless stated to relate solely to an earlier date, in which case such
representations or warranties were true and correct as of such earlier date).
     (b) Enforceability. The execution and delivery by such Person of this
Amendment, and the performance of each of its obligations under this Amendment
and the Agreement, as amended hereby, are within each of its corporate powers
and have been duly authorized by all necessary corporate action on its part.
This Amendment and the Agreement, as amended hereby, are such Person’s valid and
legally binding obligations, enforceable in accordance with its terms.
     (c) No Default. Both before and immediately after giving effect to this
Amendment and the transactions contemplated hereby, no Termination Event or
Unmatured Termination Event exists or shall exist.
     SECTION 4. Effect of Amendment. All provisions of the Agreement, as
expressly amended and modified by this Amendment, shall remain in full force and
effect. After this Amendment becomes effective, all references in the Agreement
(or in any other Transaction Document) to “this Agreement”, “hereof”, “herein”
or words of similar effect referring to the Agreement shall be deemed to be
references to the Agreement as amended by this Amendment. This Amendment shall
not be deemed, either expressly or impliedly, to waive, amend or supplement any
provision of the Agreement other than as set forth herein.
     SECTION 5. Effectiveness. This Amendment shall become effective as of the
date hereof upon receipt by the Administrator of:
     (a) counterparts of this Amendment (whether by facsimile or otherwise)
executed by each of the other parties hereto;
     (b) counterparts of that certain amended and restated fee letter, dated as
of the date hereof, executed by the Administrator, the Issuer, the Seller and
the Servicer and evidence that the full amount of the “Amendment Fee” referred
to therein has been received by the party entitled thereto; and
     (c) such other documents and instruments as the Administrator may
reasonably request.
     SECTION 6. Counterparts. This Amendment may be executed in any number of
counterparts and by different parties on separate counterparts, each of which
when so executed shall be deemed to be an original and all of which when taken
together shall constitute but one and the same instrument.

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     SECTION 7. Governing Law. This Amendment shall be governed by, and
construed in accordance with, the internal laws of the State of Illinois.
     SECTION 8. Section Headings. The various headings of this Amendment are
included for convenience only and shall not affect the meaning or interpretation
of this Amendment, the Agreement or any provision hereof or thereof.
[Signatures begin on next page]

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     IN WITNESS WHEREOF, the parties have executed this Amendment as of the date
first written above.

              P&L RECEIVABLES COMPANY, LLC, as Seller
 
       
 
  By:   /s/ Walter L. Hawkins, Jr.
 
       
 
  Name:   Walter L. Hawkins, Jr.
 
  Title:   Treasurer and Vice President
 
            PEABODY ENERGY CORPORATION, as Servicer
 
       
 
  By:   /s/ Walter L. Hawkins, Jr.
 
       
 
  Name:   Walter L. Hawkins, Jr.
 
  Title:   Treasurer and Vice President

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              ARCLAR COMPANY, LLC,
as Sub-Servicer
 
       
 
  By:   /s/ Walter L. Hawkins, Jr.
 
       
 
  Name:   Walter L. Hawkins, Jr.
 
  Title:   Treasurer and Vice President
 
            BLACK BEAUTY COAL COMPANY, LLC
as Sub-Servicer
 
       
 
  By:   /s/ Walter L. Hawkins, Jr.
 
       
 
  Name:   Walter L. Hawkins, Jr.
 
  Title:   Treasurer and Vice President
 
            CABALLO COAL COMPANY,
as Sub-Servicer
 
       
 
  By:   /s/ Walter L. Hawkins, Jr.
 
       
 
  Name:   Walter L. Hawkins, Jr.
 
  Title:   Treasurer and Vice President

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              COALSALES, LLC,
as Sub-Servicer
 
       
 
  By:   /s/ Walter L. Hawkins, Jr.
 
       
 
  Name:   Walter L. Hawkins, Jr.
 
  Title:   Treasurer and Vice President
 
            COALSALES II, LLC,
as Sub-Servicer
 
       
 
  By:   /s/ Walter L. Hawkins, Jr.
 
       
 
  Name:   Walter L. Hawkins, Jr.
 
  Title:   Treasurer and Vice President
 
            COALTRADE, LLC,
as Sub-Servicer
 
       
 
  By:   /s/ Walter L. Hawkins, Jr.
 
       
 
  Name:   Walter L. Hawkins, Jr.
 
  Title:   Treasurer and Vice President
 
            COALTRADE INTERNATIONAL, LLC,
as Sub-Servicer
 
       
 
  By:   /s/ Walter L. Hawkins, Jr.
 
       
 
  Name:   Walter L. Hawkins, Jr.
 
  Title:   Treasurer and Vice President

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              PEABODY HOLDING COMPANY, LLC,
as Sub-Servicer
 
       
 
  By:   /s/ Walter L. Hawkins, Jr.
 
       
 
  Name:   Walter L. Hawkins, Jr.
 
  Title:   Treasurer and Vice President
 
            PEABODY WESTERN COAL COMPANY,
as Sub-Servicer
 
       
 
  By:   /s/ Walter L. Hawkins, Jr.
 
       
 
  Name:   Walter L. Hawkins, Jr.
 
  Title:   Treasurer and Vice President
 
            POWDER RIVER COAL, LLC
as Sub-Servicer
 
       
 
  By:   /s/ Walter L. Hawkins, Jr.
 
       
 
  Name:   Walter L. Hawkins, Jr.
 
  Title:   Treasurer and Vice President
 
            TWENTYMILE COAL COMPANY,
as Sub-Servicer
 
       
 
  By:   /s/ Walter L. Hawkins, Jr.
 
       
 
  Name:   Walter L. Hawkins, Jr.
 
  Title:   Treasurer and Vice President

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              MARKET STREET FUNDING LLC, as Issuer
 
       
 
  By:   /s/ Doris J. Hearn
 
       
 
  Name:   Doris J. Hearn
 
  Title:   Vice President
 
            PNC BANK, NATIONAL ASSOCIATION,
as Administrator
 
       
 
  By:   /s/ William P. Falcon
 
       
 
  Name:   William P. Falcon
 
  Title:   Vice President
 
            PNC BANK, NATIONAL ASSOCIATION,
as the LC Bank and as an LC Participant
 
       
 
  By:   /s/ Richard C. Munsick
 
       
 
  Name:   Richard C. Munsick
 
  Title:   S.V.P
 
       
 
  Commitment: $275,000,000

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