Document:

exv10w2

 

EXHIBIT 10.2

SECOND AMENDMENT TO THE

1998 STOCK PURCHASE AND OPTION PLAN FOR KEY EMPLOYEES OF

P&L COAL HOLDINGS CORPORATION

     WHEREAS, Peabody Energy Corporation (the “Company”) maintains the 1998 Stock Purchase and
Option Plan for Key Employees of P&L Coal Holdings Corporation (the “Plan”), and all capitalized
terms used but not defined herein are defined in the Plan;

     WHEREAS, pursuant to Section 10 of the Plan, (i) the Board of Directors of the Company (the
“Board”) has the right to amend the Plan and (ii) the Compensation Committee of the Company may
amend the terms and conditions of outstanding grants under the Plan if such amendment does not
adversely affect the Participant’s rights without his or her consent; and

     WHEREAS, the Company spun off a portion of its business effective October 31, 2007 to Patriot
Coal Corporation (“Patriot”), resulting in the transfer of certain Company employees to employment
with Patriot and constituting a termination of employment for such employees for purposes of their
outstanding grants under the Plan;

     WHEREAS, the Board previously approved the Amendment to the Plan (the “First Amendment”) to
allow for accelerated vesting and the deemed exercise of the Accelerated Options held by Patriot
Senior Management Employees on the Spin-Off Date;

     WHEREAS, the Board intended to pay full value for such Accelerated Options upon their exercise
by adjusting the shares of Common Stock (“Peabody Stock”) subject to such Accelerated Options to
reflect the spin-off of Patriot, as is the case for all options outstanding under the Plan
immediately after the Spin-Off Date;

     WHEREAS, the Board has determined that the Peabody Stock subject to the Accelerated Options
will not be entitled to receive the distribution of Patriot common stock on the Spin-Off Date,
because the Accelerated Options were not exercised and, thus the Peabody Stock was not owned, as of
the applicable record date preceding the Spin-Off Date,

     WHEREAS, the Board has further determined that the First Amendment mistakenly specifies the
deemed exercise date as the Spin-Off Date, which is the day prior to the date that such Accelerated
Options could be adjusted to reflect the spin-off of Patriot, as such adjustment requires the use
of the opening sales price of Peabody Stock on the day immediately following the Spin-Off Date;

     WHEREAS, the Board desires to amend the Plan to correct this unintended result and to have the
Accelerated Options be deemed to be exercised on the day immediately following the Spin-Off Date,
and to use the opening sales price of Peabody Stock on such date in order to accurately reflect the
adjustment intended to be made to the Accelerated Options with respect to the spin-off of Patriot.

 

 

          NOW, THEREFORE, the Plan is hereby amended effective as of October 31, 2007 as follows:

     1. The seventh full paragraph of Section 5(a)(ii) of the Plan is hereby deleted in its
entirety, and for the avoidance of doubt, such paragraph prior to this amendment read as
follows:

     Notwithstanding anything in the Plan or any Grant Agreement to the contrary,
each Accelerated Option (as defined below) shall vest and be deemed to be
exercised on the effective date of the spin-off of Patriot (“Spin-Off Date”).
The exercise price and tax withholding with respect to such exercise shall be
paid by the withholding by the Company of such number of Shares acquired by
the Participant upon such exercise of an aggregate Fair Market Value equal to
the exercise price plus the amount of any such tax withholding.

and such paragraph of Section 5(a)(ii) of the Plan is hereby replaced with the
following:

     Notwithstanding anything in the Plan or any Grant Agreement to the contrary,
each Accelerated Option (as defined below) shall vest on the effective date of
the spin-off of Patriot (the “Spin-Off Date”) and be deemed to be exercised on
the day immediately following the Spin-Off Date. The exercise price and tax
withholding with respect to such exercise shall be paid by the withholding by
the Company of such number of Shares acquired by the Participant upon such
exercise of an aggregate fair market value equal to the exercise price plus
the amount of any such tax withholding. For purposes of this paragraph and
notwithstanding Section 2(k) of the Plan, the fair market value of a Share
shall equal the opening sales price of one Share as reported on the New York
Stock Exchange on the day immediately following the Spin-Off Date.

     2. In all other respects, the Plan shall remain unchanged and in full force and effect.

	 	 	 	 	 
	 	 	PEABODY ENERGY CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Sharon Fiehler
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Executive Vice President — Human Resources and Administration
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date:
	 	December 7, 2007
	 

	 	 	 	 

2exv10w1

 

Exhibit 10.1

Zimmer Holdings, Inc.

2006 STOCK INCENTIVE PLAN

RESTRICTED STOCK UNIT AWARD GRANTED TO

AWARD RECIPIENT: o

RESTRICTED STOCK UNIT AWARD SHARES: o

AWARD DATE: o

Compensation and Management Development Committee:

Gentlemen:

     You have advised me that I have been granted the above restricted stock unit (“RSU”) award
subject to the terms, restrictions and conditions set forth in this agreement, including the
provision that receipt of the shares of the stock award is contingent upon my remaining in the
continuous employ of Zimmer Holdings, Inc. or a subsidiary for a period of two years from the Award
Date. I understand that some or all of such RSUs may be forfeited if I leave the Company prior to
that time, and it is expected that I will retain the stock I receive upon the lapse of the
restrictions consistent with the Company’s retention guidelines in effect at the time the
restrictions lapse.

     My signature below indicates my agreement to all the terms, restrictions and conditions herein
set forth.

	 	 	 	 	 	 	 
	 

Date
	 	 	 	 

Signature
	 	 

ZIMMER HOLDINGS, INC.

2006 STOCK INCENTIVE PLAN

RESTRICTED STOCK UNIT AWARD

     1. RSU AWARD

     Under the terms of the Zimmer Holdings, Inc. 2006 Stock Incentive Plan (the “Plan”), the
Compensation and Management Development Committee of the Board of Directors of Zimmer Holdings,
Inc. (the “Committee”) has granted to the Award Recipient on the Award Date an award of RSUs over
Zimmer Holdings, Inc. Common Stock, par value $0.01 per share (“Common Stock”), as designated
herein subject to the terms, conditions, and restrictions set forth in this agreement (this “RSU
Award”). The purposes of such RSU Award are to motivate and retain the Award Recipient as an
employee of Zimmer Holdings, Inc. (the “Company”) or a subsidiary of the Company, to encourage the
Award Recipient to continue to give best efforts for the Company’s future success, and to further
the opportunity for stock ownership by the Award Recipient in order to increase the Award
Recipient’s proprietary interest in the Company. Each RSU represents an unfunded, unsecured
promise by the Company to deliver one share of Common Stock, subject to certain restrictions and
the terms and conditions contained in this agreement. Except as may be required by law, the Award
Recipient is not required to make any payment (other than payments for taxes pursuant to Section 7
hereof) or provide any consideration other than the rendering of future services to the Company or
a subsidiary of the Company.

 

 

     2. NO SHAREHOLDER RIGHTS

     The grant of RSUs does not entitle the Award Recipient to any rights of a shareholder of
Common Stock, including dividends or voting rights. The rights of the Award Recipient with respect
to an RSU shall remain forfeitable at all times prior to the lapse of the Restriction Period for
that RSU, as defined in Section 4 below.

     3. TRANSFER RESTRICTIONS

     Neither the RSUs nor any interest therein may be sold, assigned, transferred, pledged,
hypothecated or otherwise disposed of, except by will or the laws of descent and distribution, and
any such purported sale, assignment, transfer, pledge, hypothecation or other disposition shall be
void and unenforceable against the Company.

     4. RESTRICTIONS AND FORFEITURES

     Except as otherwise provided in this Section 4, an RSU granted in this RSU Award shall be
subject to the restrictions and conditions set forth herein during the period from the Award Date
until such RSU becomes vested and nonforfeitable (the “Restriction Period”).

     (a) Except as otherwise set forth in this Section 4, 50% of the RSUs granted in this RSU Award
shall become vested and nonforfeitable on the first anniversary of the Award Date provided the
Award Recipient has been continuously employed by the Company or a subsidiary of the Company since
the Award Date; and the final 50% of the RSUs granted in this RSU Award shall become vested and
nonforfeitable on the second anniversary of the Award Date provided the Award Recipient has been
continuously employed by the Company or a subsidiary of the Company since the Award Date.

     (b) Except
as set forth in the following sentence, if the Award Recipient terminates employment with the Company
or a subsidiary for any reason before all of the RSUs
have become vested, the RSUs that are not already vested as of the termination date shall be
forfeited. In the event of special circumstances as determined by the
Committee, the Committee may, in its sole discretion where it finds that a waiver would be in the
best interests of the Company, waive any restrictions then remaining with respect to all or part of
this RSU Award and accelerate the vesting with regard to such RSU Award or part thereof.

     (c) In the event that the Award Recipient fails promptly to pay or make satisfactory
arrangements as to the Withholding Tax Obligation as provided in Section 7, all unvested RSUs shall
be forfeited by the Award Recipient.

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     (d) (i) A transfer of an Award Recipient’s employment from the Company to a subsidiary, or
vice versa, or from one subsidiary to another, (ii) a leave of absence, duly authorized in writing
by the Company, for military service or sickness or for any other purpose approved by the Company
if the period of such leave does not exceed ninety (90) days, and (iii) a leave of absence in
excess of ninety (90) days, duly authorized in writing, by the Company, provided the Award
Recipient’s right to reemployment is guaranteed either by a statute or by contract, shall not be
deemed a termination of employment. However, failure of the Award Recipient to return to the
employ of the Company at the end of an approved leave of absence shall be deemed a termination.
During a leave of absence as defined in (ii) or (iii), the Award Recipient will be considered to
have been continuously employed by the Company.

     (e) (i) The Award Recipient agrees that, during the Restriction Period and for the
Non-Competition Period set forth below, except with the prior written consent of the Company, the
Award Recipient shall not in any way, directly or indirectly, own, manage, operate, control, accept
employment or a consulting position with or otherwise advise or assist or be actively connected
with or have any financial interest in, directly or indirectly, any enterprise which engages in, or
otherwise carries on, any business activity in competition with the business of the Company in any
geographic area (including, without limitation, the United States and each county in the State of
California in which the Company from time to time sells or offers its products for sale) in which
it engages in such business. The Award Recipient recognizes that the Company’s business is
worldwide in scope in that it directly advertises and solicits business from customers wherever
they may be found. Wherever “Company” is used in this sub-section (e), it shall include all
subsidiaries and affiliates of the Company. The Award Recipient further agrees that during the
periods referenced above the Award Recipient shall not take any action which might divert from the
Company or any of its affiliates, successors or assigns any opportunity which would be within the
scope of its or their respective present or future operations or business. It is understood that
ownership of not more than one percent (1%) of the equity securities of a public company shall in
no way be prohibited pursuant to the foregoing provisions.

          (ii) For purposes of this sub-section (e), the Non-Competition Period shall be a period of
one year commencing on the date of the Award Recipient’s termination of employment for any reason.

     5. ISSUANCE OF SHARES

     The stock certificate(s), if any, evidencing the shares issued upon vesting of RSUs shall be
registered on the Company’s books in the name of the Award Recipient within 60 days after the lapse
of the Restriction Period for those RSUs.

     The Company shall not be required to issue or deliver any certificate or certificates for
shares of its Common Stock upon the end of the Restriction Period prior to (i) the admission of
such shares to listing on any stock exchange on which the stock may then be listed, (ii) the
completion of any registration or other qualification of such shares under any state or federal law
or rulings or regulations of any governmental regulatory body, or (iii) the obtaining of any
consent or approval or other clearance from any governmental agency, which the Company shall, in
its sole discretion, determine to be necessary or advisable.

     6. DEATH OF AWARD RECIPIENT

     In the event of the Award Recipient’s death prior to the delivery of shares issuable pursuant
to vested RSUs, such shares shall be delivered to the Award Recipient’s estate, upon presentation
to the Committee of letters testamentary or other documentation satisfactory to the Committee.

     7. TAXES

     At such time as the Company is required to withhold taxes with respect to this RSU Award, or
at an earlier date as determined by the Company, the Award Recipient shall make remittance to the
Company of an amount sufficient to cover the Company’s withholding obligation, if any, with respect
to federal, state or local income or FICA or earnings tax or any other applicable tax assessment
(plus interest or penalties thereon, if any, caused by a delay in making such payment) incurred
with respect to such RSU Award (the “Withholding Tax Obligation”). The Company and its
subsidiaries shall, to the extent permitted by law, have the right to deduct such Withholding Tax
Obligation from any payment or distribution of any kind otherwise payable or distributable to the
Award Recipient, including Common Stock subject to this RSU Award; provided, in the case of Common
Stock, that the market value of the shares withheld may not exceed the Company’s minimum required
Withholding Tax Obligation with respect to this RSU Award.

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     8. CHANGES IN CAPITALIZATION

     If prior to the expiration of the Restriction Period changes occur in the outstanding Common
Stock by reason of stock dividends, recapitalization, mergers, consolidations, stock splits,
combinations or exchanges of shares and the like, the number and class of shares subject to this
RSU Award shall be appropriately adjusted by the Committee, whose determination shall be
conclusive. If as a result of any adjustment under this paragraph any Award Recipient should
become entitled to a fractional share of stock, the Award Recipient shall have the right only to
the adjusted number of full shares and no payment or other adjustment will be made with respect to
the fractional share so disregarded.

     9. NOTICE

     Until the Award Recipient is advised otherwise by the Committee, all notices and other
correspondence with respect to this RSU Award will be effective upon receipt at the following
address:

Compensation and Management Development Committee of the Board of Directors of Zimmer Holdings, Inc.

Zimmer Holdings, Inc.

345 East Main Street

Post Office Box 708

Warsaw, Indiana 46581-0708

     10. NO ADDITIONAL RIGHTS

     Except as explicitly provided in this agreement, this agreement will not confer any rights
upon the Award Recipient, including any right with respect to continuation of employment by the
Company or any of its subsidiaries or any right to future awards under the Plan. In no event shall
the value, at any time, of this agreement, the Common Stock covered by this agreement or any other
benefit provided under this agreement be included as compensation or earnings for purposes of any
other compensation, retirement, or benefit plan offered to employees of the Company or its
subsidiaries unless otherwise specifically provided for in such plan.

     11. BREACH OF RESTRICTIVE COVENANTS

     The Award Recipient understands and agrees that if he or she violates the covenant not to
compete contained in Section 4(e) of this agreement or any other restrictive covenant in favor of
the Company that he or she is a party to, the Committee may require the Award Recipient to forfeit
his or her right to any unvested portion of the RSU Award and, to the extent that any portion of
the RSU Award has previously vested, the Committee may require the Award Recipient to return to the
Company the shares covered by the RSU Award or any cash proceeds received by the Award Recipient
upon the sale of such shares.

     12. CONSENT TO ELECTRONIC DELIVERY

     The Company may, in its sole discretion, decide to deliver any documents related to the RSU
Award granted under and participation in the Plan or future stock awards that may be granted under
the Plan by electronic means or to request the Award Recipient’s consent to participate in the Plan
by electronic means. The Award Recipient hereby consents to receive such documents by electronic
delivery and, if requested, to agree to participate in the Plan through an on-line or electronic
system established and maintained by the Company or a third party designated by the Company.

     13. CODE SECTION 409A COMPLIANCE

     To the extent applicable, it is intended that the Plan and this agreement comply with the
requirements of Section 409A of the U.S. Internal Revenue Code of 1986, as amended (the “Code”),
and any related regulations or other guidance promulgated with respect to such Section by the U.S.
Department of the Treasury or the Internal Revenue Service. The RSUs granted in this RSU Award are
intended to be short-term deferrals exempt from Code Section 409A, but in the event that any
portion of this RSU Award constitutes deferred compensation within the meaning of Code Section
409A, then the issuance of Common Stock covered by an RSU award shall conform to the Code Section
409A standards, including, without limitation, the requirement that no payment on account of
separation from service will be made to any specified employee (within the meaning of Code Section
409A) until six months after the separation from service occurs, and the requirement that no
payment will be made on account of any disability condition unless that condition constitutes a
disability within the meaning of Code Section 409A. Any provision of the Plan or this agreement
that would cause this RSU Award to fail to satisfy any applicable requirement of Code Section 409A
shall have no force or effect until amended to comply with Code Section 409A, which amendment may
be retroactive to the extent permitted by Code Section 409A.

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     14. CONSTRUCTION AND INTERPRETATION

     The Board of Directors of the Company (the “Board”) and the Committee shall have full
authority and discretion, subject only to the express terms of the Plan, to decide all matters
relating to the administration and interpretation of the Plan and this agreement and all such Board
and Committee determinations shall be final, conclusive, and binding upon the Award Recipient and
all interested parties. The terms and conditions set forth in this agreement are subject in all
respects to the terms and conditions of the Plan, as amended from time to time, which shall be
controlling. This agreement contains the entire understanding of the parties and may not be
modified or amended except in writing duly signed by the parties. The waiver of, or failure to
enforce, any provision of this agreement or the Plan by the Company will not constitute a waiver by
the Company of the same provision or right at any other time or a waiver of any other provision or
right. The various provisions of this agreement are severable and any determination of invalidity
or unenforceability of any provision shall have no effect on the remaining provisions. This
agreement will be binding upon and inure to the benefit of the successors, assigns, and heirs of
the respective parties. The validity and construction of this agreement shall be governed by the
laws of the State of Indiana.

     15. SEVERABILITY

     In the event any provision of this agreement shall be held illegal or invalid for any reason,
the illegality or invalidity shall not affect the remaining provisions of this agreement, and this
agreement shall be construed and enforced as if such illegal or invalid provision had not been
included.

ZIMMER HOLDINGS, INC.

By                                                            

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