Exhibit 10.3



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|No. SARs [
 ] |  | Date of Grant [  ]

PETROHAWK ENERGY CORPORATION

STOCK APPRECIATION RIGHTS AGREEMENT

ANNUAL VESTING AWARDS

PETROHAWK ENERGY CORPORATION THIRD AMENDED

AND RESTATED 2004 EMPLOYEE INCENTIVE PLAN

A total of
 Stock Appreciation Rights (individually, and collectively, SAR(s)) are hereby granted to
(the Employee) on (Date of Grant) at the SAR Grant Value and in all
respects subject to the terms, definitions and provisions, of the Petrohawk Energy Corporation Third Amended and Restated 2004 Incentive Plan (the Plan), which Plan is incorporated herein by reference except to the extent otherwise
expressly provided in this Stock Appreciation Rights Agreement (this SAR Agreement). Capitalized terms used in this SAR Agreement which are not otherwise defined herein shall have the meanings assigned such terms in the Plan.

1. SAR Grant Value. The SAR Grant Value is $ for each
SAR, which is equal to the Fair Market Value of a Share on the Date of Grant.

2. Vesting, Exercise and Forfeiture of SAR Agreement
Shares.

(a) The SARs shall vest and become Vested SARs (but, without limitation, if unexercised
such Vested SARs will expire on date of the termination of the SAR as set out in Section 5 below) on the occurrence of the earliest of the dates set forth in (a) through (c) below:



| | (i) | SARs on the date of the 1 st Anniversary of the Date of Grant;
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| | (ii) | SARs on the date of the 2 nd Anniversary of the Date of Grant; and
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| | (iii) | SARs on the date of the 3 rd Anniversary of the Date of Grant.
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(b) The SARs may be exercised only by the Employee during the Employees lifetime while the Employee remains an employee of
the Company and will terminate and cease to be exercisable upon the Employees termination of employment with the Company for any reason, except that:



| | (i) | If the Employees employment with the Company terminates by reason of disability within the meaning of section 22(e)(3) of the Code, the SARs may be exercised in full
(whether or not the SARs have fully vested) by the Employee (or Employees estate or the person who acquires the SARs by will or the laws of descent and distribution or otherwise by reason of death of the Employee) but only within such period
of time ending on the earlier of (i) the date that is one (1) year following such termination or (ii) the expiration of the term of the SARs as set forth in this SAR Agreement.
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| | (ii) | If the Employee dies while in employ of the Company, the Employees estate, or the person who acquires the SARs by will or the laws of descent and distribution or
otherwise by reason of the death of the Employee, may exercise Employees SARs in full (whether or not the SARs are fully vested) but only within such period of time ending on the earlier of (i) the date that is one (1) year following
the Employees death or (ii) the expiration of the term of the SARs as set forth in this SAR Agreement.
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| | (iii) | If the Employee is terminated without Cause (hereafter defined), the Employee may exercise the Employees Vested SARs but only within such period of time ending on the
earlier of (i) the date that is three months following the termination of such persons employment or (ii) the expiration of the term of the SARs as set forth in this SAR Agreement. For purposes of this Agreement, Cause
shall mean the Employees gross negligence or willful misconduct in performance of the duties of Employees employment, or Employees final conviction of a felony or of a misdemeanor involving moral turpitude.
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| | (iv) | If the Employee voluntarily terminates employment with the Company, the Employee may exercise the Employees Vested SARs on the earlier of (i) the date that is
three months following termination of such persons employment or (ii) the expiration of the term of the SARs as set forth in this SAR Agreement, IF AND ONLY IF, the Company provides written consent to the Employee providing that the
Employee may exercise the Vested SARs during such period.
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| | (v) | Notwithstanding anything in this Agreement to the contrary, provided that the Employee is serving as an employee of the Company at the time of a Corporate Change, immediately
upon such Corporate Change, the SARs shall automatically vest in full and become immediately exercisable in accordance with this paragraph 2(b)(v), and after such Corporate Change and upon such full vesting, the following exercisability periods
shall apply: (i) the Employee may exercise the Employees SARs until the expiration of the term of the SARs as set forth in the Agreement, so long as the Employee remains employed by the Company; (ii) if the Employee dies while in
employ of the Company after a Corporate Change or if the Employees employment with the Company terminates by reason of disability within the meaning of section 22(e)(3) of the Code after a Corporate Change, the Employee, the Employees
estate, or the person who acquires the SARs by will or the laws of descent and distribution or otherwise by reason of the death or disability of Employee, as applicable, may exercise the Employees SARs within such period of time ending on the
earlier of (x) the date that is one (1) year following the Employees death or disability or (y) the expiration of the term of the SARs as set forth in this SAR Agreement; (iii) if the Employee is terminated without Cause
after a Corporate Change, Employee may exercise Employees SARs but only within such period of time ending on the earlier of (x) the date that is six months following the termination of such persons employment or (y) the
expiration of the term of the SARs as set forth in this SAR Agreement; (iv) if the Employee voluntarily terminates employment with the Company after a Corporate Change, the Employee may exercise the Employees SARs on the earlier of
(x) the date that is six months following termination of such persons employment or (y) the expiration of the term of the SARs as set forth in this SAR Agreement; and (v) if the Employee is terminated for Cause by the Company,
the Employee may exercise Employees SARs only within such period of time ending on the date of termination of the Employee.
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3. Amount Payable, and Form of Payment, on Exercise of SAR. Upon the exercise of one or more SARs, the Employee shall receive an amount equal to the product of (x) the excess of the Fair Market Value of one Share on the
date of exercise over the SAR Grant Value and (v) the number of shares as to which such SAR is exercised. Payment of the amount determined under the foregoing shall be made in Shares valued at their Fair Market Value on the date of exercise;
provided, however, that no fractional Shares shall be issued upon exercise of a SAR and any fractional share interest shall be settled in cash. As soon as practicable after receipt of a notification of exercise of one or more SARs, the Company shall
(i) deliver, or cause to be delivered, to or on behalf of the Employee, in the name of Employee or other appropriate recipient, Common Stock certificates for the number of shares issued as a result of such exercise or (ii) electronically
credit to a brokerage account in the name of the Employee or other appropriate recipient the number of shares issued as a result of such exercise. Such delivery shall be effected for all purposes when the Company or a stock transfer agent of the
Company shall have deposited such certificates in the United States mail, addressed to the Employee or other appropriate recipient or electronically credited the number of shares issued as a result of such exercise to a brokerage account in the name
of the Employee or other appropriate recipient.

4. Exercise of SAR Agreement. Except as provided herein, this SAR Agreement
shall not be exercisable prior to the first date on which a portion of the SARs become Vested SARs, and thereafter (and prior to the termination of this SAR Agreement), this SAR Agreement shall be exercisable, in whole or in part, with respect to
Vested SARs.

(a) Method of Exercise. Without limitation, this SAR Agreement shall be exercised by a
written or electronic notice delivered to the Administrator (or the Administrators authorized agent) which shall:



| | (i) | state the election to exercise the SAR Agreement and the number of Vested SARs in respect of which it is being exercised; and
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| | (ii) | be signed, (electronically or otherwise) by the person or persons entitled to exercise the SAR Agreement and, if the SAR Agreement is being exercised by any person or persons other
than the Employee, be accompanied by proof, satisfactory to the Administrator, of the rights of such person or persons to exercise the SAR Agreement.
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(b) Withholding. To the extent that the exercise of the SARs or the disposition of Shares acquired by exercise of the
SARs results in compensation income to the Employee for federal or state income tax purposes, the Employee shall deliver to the Company at the time of such exercise or disposition such amount of money or Shares as the Company may require to meet its
obligation under applicable tax laws or regulations, and, if the Employee fails to do so, the Company is authorized to withhold from any cash or Common Stock remuneration then or thereafter payable to the Employee any tax required to be withheld by
reason of such resulting compensation income. Upon an exercise of the SARs, the Company is further authorized in its discretion to satisfy any such withholding requirement out of any cash or Shares distributable to the Employee upon such exercise.
Except as may otherwise be permitted by the Code, in the event of a permitted transfer of a SAR hereunder, the Employee shall remain subject to withholding taxes upon exercise. In addition, the Company shall have no obligation to provide any notices
to the transferee including, for example, notice of the termination of a SAR following the Employees termination of employment.

(c) Issuance of Shares. The Employee agrees that the Shares which the Employee may acquire by exercising the SARs will not be sold or otherwise disposed of in any manner which would constitute a
violation of any applicable securities laws, whether federal or state. The Employee also agrees (i) that the certificates representing the Shares purchased pursuant to the exercise of the SARs may bear such legend or legends as the Committee
deems appropriate in order to assure compliance with applicable securities laws, and (ii) that the Company may refuse to register the transfer of such Shares purchased pursuant to the exercise of the SARs on the stock transfer records of the
Company if such proposed transfer would, in the opinion of counsel satisfactory to the Company, constitute a violation of any applicable securities laws and (iii) that the Company may give related instructions to its transfer agent, if any, to
stop registration of the transfer of the Shares purchased pursuant to the exercise of the SARs.

(d) Surrender of
SAR Agreement. Upon exercise of this SAR Agreement in part, if requested by the Administrator, the Employee shall deliver this SAR Agreement and other written agreements (if any) executed by the Company and the Employee with respect to this
SAR Agreement to the Administrator who shall endorse or cause to be endorsed thereon a notation of such exercise and return the SAR Agreement (and other agreements, if any) to the Employee.

5. Term of SAR Agreement. Without limitation, the unexercised portion of this
SAR Agreement shall automatically and without notice terminate on the tenth (10th) anniversary of the Date of
Grant.

6. No Transfers Permitted. Subject to, and except as otherwise provided in, the Plan, neither this SAR Agreement nor
the SARs are transferable or assignable by the Employee other than: (a) by will or the laws of descent and distribution; or (b) pursuant to a qualified domestic relations order (as defined in Section 414(p) of the Code).

7. No Right To Continued Employment. Neither the Plan, nor this SAR Agreement, shall confer upon Employee any right with respect to
continuation of employment by the Company, or any right to provide services to the Company, nor shall it interfere in any way Employees right to terminate employment, or the Companys right to terminate Employees employment, at any
time.

8. Law Governing. WITHOUT LIMITATION, THIS SAR AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF DELAWARE.

9. Employee Acknowledgements and Representation. The Employee hereby acknowledges the
Employees: (i) receipt of this SAR Agreement, (ii) opportunity to review the Plan, (iii) opportunity to discuss this SAR Agreement with a representative of the Company, and the Employees personal advisors, to the extent
the Employee deems necessary or appropriate, (iv) understanding of the terms and provisions of the SAR Agreement and the Plan, and (v) understanding that, by the Employees signature below, the Employee is agreeing to be bound by all
of the terms and provisions of this SAR Agreement and the Plan. Without limitation, the Employee agrees to accept as binding, conclusive and final all decisions or interpretations (including, without limitation, all interpretations of the meaning of
provisions of the Plan, or SAR Agreement, or both) of the Administrator upon any questions arising under the Plan, or this SAR Agreement, or both.



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Dated as of this
 day of 
, 200  .



EMPLOYEEEmployee


PETROHAWK ENERGY CORPORATIONPer:Larry Helm, Executive Vice President -Chief Administrative Officer