Document:

exv10w61

 

Exhibit 10.61

PEABODY ENERGY CORPORATION

Management Annual Incentive Compensation Plan

     1. Purpose. The purpose of the Peabody Energy Corporation Management Annual Incentive
Compensation Plan (the “Plan”) is to provide members of the senior management of Peabody Energy
Corporation (the “Company”) and its affiliates with annual incentive compensation based on the
level of achievement of financial, individual and other performance criteria. The Plan is intended
to focus the interests of key employees on the key measures of the Company’s success and to reward
such employees for achieving such key measures of the Company’s success.

     2. Definitions. As used in the Plan, the following terms shall have the meanings set forth
below:

     “Administrator” shall mean the Board of Directors of the Company or the Compensation Committee
acting in accordance with Board directives.

     “Award” shall mean a cash payment made to a Participant pursuant to this Plan (whether paid at
the end of a Performance Period or deferred).

     “Board” shall mean the Board of Directors of the Company.

     “Code” shall mean the Internal Revenue Code of 1986, as amended, or any successor thereto.

     “Compensation Committee” shall mean the Compensation Committee of the Board (or any successor
committee).

     “Participant” shall mean any employee of the Company who is eligible to participate in
accordance with Section 3 of this Plan.

     “Performance Period” shall mean any period of at least one year designated as a Performance
Period by the Administrator.

     “Performance Target” shall mean an Award target that may be paid to a Participant at the end
of the applicable Performance Period if certain defined performance goals are achieved during the
Performance Period.

     3. Eligibility. The Participants in this Plan for any Performance Period shall be key
employees of the Company who are designated individually or by class to be Participants for any
Performance Period by the Administrator.

     4. Awards.

 

 

Peabody Energy Corporation

Executive Performance Incentive Plan

     (a) The Administrator shall establish performance goals for each Performance Period prior to
or within the first 90 days of such Performance Period. The performance goals may be based on
organizational business criteria, such as stock price, sales, return on equity, return on assets,
return on investment, book value, expense management, earnings per share, cash flow, net income,
individual performance, EBITDA, safety performance, business unit and site accomplishments;
individual performance criteria; or any combination of the foregoing. The Administrator shall
define such criteria at the time it establishes the performance goals.

     (b) At the beginning of each Performance Period, the Administrator shall also establish the
Performance Target.

     (c) The payment of an Award shall be subject to achievement of the defined performance goals,
as determined by the Administrator in its sole discretion, and subject to the Participant being
employed by the Company on the last day of the Performance Period; provided,
however, that the Administrator shall be permitted to adjust or modify a Performance Target
or Award upon the occurrence or existence of extraordinary corporate events, or other circumstances
that, in the good faith determination of the Board, warrant such adjustment or modification.

     (d) An Award under this Plan is intended to be exempt from the one million dollar limit on
deductible compensation under Section 162(m) of the Code. The Administrator shall have the power
to impose any restrictions on Awards as it may deem necessary or appropriate to ensure that such
Awards satisfy all requirements for “performance-based compensation” within the meaning of Section
162(m) of the Code, the regulations promulgated thereunder, and any successors thereto, or an
exemption from such requirements.

     5. Form of Payment. An Award shall be paid in the form of cash.

     6. Time of Payment. An Award for a Performance Period normally shall be paid as soon as
administratively feasible after the Administrator certifies that the performance goals applicable
to such Award were met. However, a Participant may elect to defer receipt of such a payment in
accordance with the terms of the Peabody Energy Corporation Deferred Compensation Plan.

     7. Other Conditions.

     (a) No person shall have any claim to an Award under the Plan, and there is no obligation of
uniformity of treatment of Participants under the Plan. Awards under the Plan may not be assigned
or alienated.

     (b) The granting of a Performance Target or an Award under the Plan shall impose no obligation
on the Company or any affiliate to continue the employment of a Participant and shall not lessen or
affect the Company’s right to terminate the employment of such Participant.

 

 

Peabody Energy Corporation

Executive Performance Incentive Plan

     (c) The Company or any affiliate shall have the right to deduct from any Award to be paid
under the Plan any federal, state or local taxes required by law to be withheld with respect to
such payment.

     8. Plan Administration.

     (a) The Administrator shall have full discretionary power to administer and interpret the Plan
and to establish rules for its administration. In making any determinations under or referred to
in the Plan, the Administrator shall be entitled to rely on opinions, reports or statements of
employees of the Company and its affiliates and of counsel, public accountants and other
professional or expert persons.

     (b) The Plan shall be governed by the laws of the State of Delaware and applicable federal
law.

     9. Modification or Termination of Plan. The Board may modify or terminate the Plan at any
time, effective at such date as the Board may determine.

     10. Effectiveness. The Plan shall be effective as of the date the Board approves the Plan.

     11. Withholding Taxes. The Company shall have the right to deduct from any cash payment made
under the Plan any federal, state or local income or other taxes required by law to be withheld
with respect to such payment. Before payment of any Award may be deferred pursuant to Section 6,
the Company may require that the Participant pay or agree to withholding for any federal, state or
local income or other taxes which may be imposed on any amount deferred.

     The undersigned hereby certifies that this Plan was duly adopted by the Board at its meeting
on                     , 2001.

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:exv10wxgy

 

Exhibit 10(g)

FIRST AMENDMENT TO THE

ITW NONQUALIFIED PENSION BENEFITS PLAN

     This First Amendment to the ITW Nonqualified Pension Benefits Plan (the “Plan”) is made this
8th day of February, 2008 by the Compensation Committee of the Board of Directors of Illinois Tool
Works Inc. (the “Company”).

R E C I T A L S

     The Company is the sponsor of the Plan, as last amended and restated effective as of January
1, 2002, and intends that the Plan continue to provide additional benefits to certain employees
whose benefits under the ITW Retirement Accumulation Plan (the “Qualified Plan”) are limited by the
Internal Revenue Code and reduced due to their deferrals under the Illinois Tool Works Inc.
Executive Contributory Retirement Income Plan. All capitalized terms not defined herein shall have
the same meaning as in the Plan.

A M E N D M E N T

     The definition of Actuarial Equivalent in Section 1.1 of the Plan, as previously amended and
restated, is hereby amended and superseded in its entirety to provide as follows:

     “Actuarial Equivalent” means an equivalent form of payment of a Participant’s Supplemental
Benefit. For Purposes of converting a Supplemental Benefit to a form offered under the Qualified
Plan, Actuarial Equivalent will be determined using the Qualified Plan’s definition of Actuarial
Equivalent.exv10wxjy

 

Exhibit 10(j)

AMENDMENT TO THE ILLINOIS TOOL WORKS INC.

DIRECTORS’ DEFERRED FEE PLAN

     This Amendment to the Illinois Tool Works Inc. Directors’ Deferred Fee Plan (the “Plan”) is
made as of the 8th day of February, 2008 by the Board of Directors of Illinois Tool
Works Inc. (the “Company”).

R E C I T A L S

     The Plan, which was approved by the Board of Directors on February 9, 2007, established
effective May 5, 2006, is an amendment and restatement of, and replacement by merger for: (i) the
Company’s Outside Directors’ Deferred Fee Plan, as established effective December 12, 1980; and
(ii) the deferral provisions of the Company’s Non-Officer Directors’ Fee Conversion Plan, as
approved by the Board on February 19, 1999 and amended December 15, 2000. All capitalized terms
not defined herein shall have the same meaning as in the Plan.

A M E N D M E N T

     The Definition of “Fair Market Value” in Section 1.13 of the Plan is hereby amended and
superseded in its entirety to provide as follows:

Fair
Market Value:     The closing market price of Common Stock on the relevant date, as
reported in the New York Stock Exchange section (or any successor thereto) of The Wall
Street Journal, or, if no sales of Common Stock were reported for that date, on the
most recent preceding date on which Common Stock was traded.exv10wxoy

 

Exhibit 10(o)

ITW STOCK OPTION PLAN

TERMS OF THE OPTION GRANT

			
	(a.)	 	In the event of a stock dividend, stock split, reorganization or recapitalization,
appropriate adjustment will be made in the number of shares subject to the option and in the
option price per share.

			
	(b.)	 	The option period shall be for 10 years from the date of grant on February 8, 2008.
Accordingly, no options under this grant may be exercised after the close of business in
Chicago on February 7, 2018. No purchase of shares may be made under this option during the
first year of the option period. During the second year of the option period, you shall have
the right to purchase 25% of the total number of optioned shares, and in each of the next
three years an additional 25% of the total number of shares optioned hereunder. Such rights
to exercise shall be cumulative and may be exercised in any succeeding year of the option
period up to the extent vested but not exercised in a previous year or years. On February 7,
2018, all rights under this agreement as to any shares covered by the option shall terminate.

			
	(c.)	 	You shall have no voting, dividend or subscription rights except with respect to the shares
which have been issued to you following your exercise of part or all of the option. Your
rights under this option agreement may not be assigned or transferred, and during your
lifetime the option shall be exercisable only by you personally.

			
	(d.)	 	If prior to February 7, 2018, you terminate employment with the Company by reason of
disability, as defined by the Company’s benefit plans, your option shall be fully vested and
exercisable not later than the earlier of five years after the date of termination due to
disability, or February 7, 2018. If you die while in the employ of the Company, or
(notwithstanding the previous sentence) after terminating by reason of disability, your option
shall be fully vested and exercisable by your estate not later than the earliest of: (i.) two
years after the date of death, or (ii.) five years after the date of termination due to
disability, or (iii.) February 7, 2018.

			
	(e.)	 	If you retire (defined as term of employment with the Company after attaining age 62 and 10
years of service under the Company’s retirement plan) prior to February 7, 2018, your option
shall be fully vested and exercisable not later than the earlier of five years from the date
of your retirement or February 7, 2018. If you die after terminating employment by reason of
retirement, your option shall be exercisable by your estate not later than the earliest of:
(i.) two years after the date of death, or (ii.) five years after the date of retirement, or
(iii.) February 7, 2018.

			
	(f.)	 	If you terminate your employment for any reason other than death, retirement or disability,
your options that were vested prior to termination and not previously exercised may be
exercised by you during the 90-day period commencing on the date of your termination but not
later than February 7, 2018. If you die during this 90-day period, the exercise period will
be extended to the earlier of two years from the date of death or February 7, 2018.

			
	(g.)	 	Notwithstanding the foregoing, the Compensation Committee of the Board of Directors may, in
its sole discretion, deem this option to be immediately forfeited if you are terminated for
cause (as defined by the Committee), compete with the Company, or conduct yourself in a manner
adversely affecting the Company.

			
	(h.)	 	The option is subject to the terms of the Illinois Tool Works Inc. 2006 Stock Incentive Plan.
Any inconsistencies shall be resolved in favor of the Plan.

			
	(i.)	 	These options and the Plan should be construed in accordance with and governed by the laws of
the State of Illinois, United States of America.

The exercise of this option generally results in ordinary income being recognized for tax purposes
in an amount equal to the excess of the market price at the time of exercise over the option price.

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