Document:

BTU_EX_CONSULTK

	
		
	 
	Consultancy agreement

	 
	Peabody Energy Australia Coal Pty Limited (Company)

	 
	 

	 
	Eric Ford (Consultant)

	 
	 

	 
	 

	
			
	 
	MinterEllison
	 

	 
	 
	L A W Y E R S

	 
	 
	 

	 
	LEVEL 22 WATERFRONT PLACE 1 EAGLE STREET BRISBANE QLD 4000

	 
	AUSTRALIA DX 102 BRISBANE
	 

	 
	T +61 7 3119 6000 F +61 7 3119 1000
	 

	 
	www.minterellison.com
	 

Consultancy agreement     

Details    4
Agreed terms    5
1.    Defined terms & interpretation    5
1.1    Defined terms    5

2.    Engagement and term    6
2.1    Engagement    6

3.    Method of providing the Services    6
3.1    Provision of information    6
3.2    Reporting    6

4.    Consultant's obligations    6
4.1    Performance of agreement    6
4.2    Consultant's obligations    6
4.3    No authority    6

5.    Insurance    7

6.    Supply of services to others    7
6.1    General    7
6.2    Restrictions    7
6.3    Conflict of interest    7
6.4    Services to others    7

7.    Invoices and payment    7
7.1    Invoices    7
7.2    Form of invoices    7
7.3    Payment    7
7.4    Deductions    8

8.    Expenses    8

9.    Relationship    8
9.1    Independent Consultant    8
9.2    Not employee, agent or partner    8
9.3    Ability to assign    8

10.    Confidential Information    8
10.1    General    8
10.2    Use of Confidential Information    8
10.3    Assistance    9

11.    Intellectual property    9
11.1    Assignment    9
11.2    Waivers    9
11.3    Consents    9
11.4    Disclosure of Intellectual Property Rights    9

MinterEllison | Ref: DCW 40-7752750                                Consultancy agreement | page 2

11.5    Further assurances    9
12.    Privacy    9
12.1    General    9
12.2    Use of personal information    9
12.3    Disclosure    9

13.    Termination of the agreement    10

14.    On and after termination    10
14.1    General    10
14.2    Accrued rights and remedies    10

Schedule 1 - Eric Ford    11

Schedule 2 Signing page    12

MinterEllison | Ref: DCW 40-7752750                                Consultancy agreement | page 3

Details     

Date

Parties

Name    Peabody Energy Australia Coal Pty Limited
ACN    001 401 663
  ABN    61 001 401 663

Short form name    Company
Notice details    100 Melbourne Street, Brisbane QLD 4101
Facsimile: +61 7 3225 5555

Name    Eric Ford

Short form name    Consultant

Background

A    The Company requires the Services to be provided.

B    The Consultant has the expertise to provide the Services.

		
	C
	The Consultant has agreed to provide, and the Company has agreed to acquire, the Services in accordance with the terms of this agreement.

MinterEllison | Ref: DCW 40-7752750                                Consultancy agreement | page 4

Agreed terms     

1.    Defined terms & interpretation

1.1    Defined terms
In this agreement:

Company Property includes:

(a)    any property of any Group Member;

		
	(b)
	any document (including any form of electronic record) which includes any Confidential Information or which relates to the business of any Group Member or a customer or supplier of any Group Member; and

(c)    any property listed in Schedule 1

Confidential Information means information concerning any Group Member's business affairs, including its financial, accounting or marketing affairs which is regarded by the Group Member as confidential, including (without limitation) marketing and technical information, customer and supplier information, know-how, technology, operating procedures and business strategy, unless the information is in the public domain.

Group means the Company and its Related Bodies Corporate and Group Member means any member of the Group.

Intellectual Property Rights means all intellectual property rights, including but not limited to:

(a)    patents, copyright, registered designs, trade marks and any right to have confidential
information kept confidential; and
(b)    any application or right to apply for registration of any rights referred to paragraph (a), created by the Consultant (whether before or after this agreement is signed), whether alone or with
a third party in the course of or in connection with providing the Services.

Moral Rights means the following rights in respect of any Intellectual Property Rights:

		
	(a)
	the right of integrity of authorship (that is, not to have a work subjected to derogatory treatment);

(b)    the right of attribution of authorship of a work; and

(c)    the right not to have authorship of a work falsely attributed

(which are rights created by the Copyright Act 1968), and any other similar right capable of protection under the laws of any applicable jurisdiction.

Related Bodies Corporate has the meaning given to related body corporate by the Corporations
Act 2001 (Cth).

Services means the services described in Schedule 1 as varied by the Company from time to time.

MinterEllison | Ref: DCW 40-7752750                                Consultancy agreement | page 5

2.    Engagement and term

2.1    Engagement
The Consultant's engagement under this agreement will commence on the date set out in Schedule 1 and, unless terminated sooner under clause 13, will conclude on the date set out in Schedule 1 (Term).

3.    Method of providing the Services

3.1    Provision of information
The Company must provide to the Consultant the information the Consultant reasonably requires to provide the Services.

3.2    Reporting
Work assignments will be initiated by the Chairman and Chief Executive Officer, the President and Chief Operating Officer or the President of Australia. The Consultant will report to the initiating officer in respect of each assignment.  In providing Services related to a particular assignment the Consultant may work with other Peabody Energy Group employees as directed by the initiating officer.

4.    Consultant's obligations

4.1    Performance of agreement
The Consultant must:

(a)    use reasonable efforts to do all things necessary to give full effect to this agreement; and
(b)    refrain from doing anything that may hinder performance of this agreement.

4.2    Consultant's obligations
The Consultant must ensure that the Services are provided:
(a)    in accordance with this agreement;
(b)    with all due skill and care and to the best of his knowledge and expertise;
(c)       in accordance with any directions given by any person nominated by the Company from time to time;
(d)    in compliance with all applicable laws; and
(e)    in a manner consistent with the Company's best interests.

4.3    No authority
The Consultant must not without the prior consent of the person nominated by the Company from time to time:

		
	(a)
	assume or create or attempt to assume or create, directly or indirectly, any obligation or liability on behalf of or in the name of any Group Member; and

(b)       accept any engagement or carry out any activity if, in the opinion of the Company, doing so will adversely affect the Consultant's ability to supply the Services to the Company in accordance with this agreement.

MinterEllison | Ref: DCW 40-7752750                                Consultancy agreement | page 6

5.    Insurance

The Consultant is responsible for obtaining and maintaining any insurances which the Consultant believes are necessary or appropriate in connection with the provision of Services. The Company does not indemnify the Consultant in relation to any liability incurred in the course of providing Services.

6.    Supply of services to others

6.1    General
Subject the remainder of this agreement, this agreement does not prevent or restrict the Consultant providing services the same or similar to the Services of any kind to any other person.

6.2    Restrictions
Despite clause 6.1, the Consultant must not provide services the same or similar to the Services to another person if in the opinion of an officer of the Company, doing so will adversely affect the Consultant's ability to provide the Services to the Company in accordance with this agreement or would be inconsistent with obligations which Mr Ford otherwise has under his prior employment contract with PEAC.

6.3    Conflict of interest
If the Consultant provides Services to a person other than the Company, and a conflict, or potential conflict, of interest arises as a result of the provision of the Services, then the Consultant must immediately disclose the conflict, or potential conflict, of interest to the Company and must resolve the conflict of interest as reasonably required by the Company.

6.4    Services to others
The Consultant must advise the Company of the nature of any arrangement under which the Consultant provides services of any kind to any other person. The Consultant must not accept any appointment to a Company Board of Directors without the approval of the Chairman and Chief Executive Officer. The Consultant's existing directorship of Compass Minerals Ltd in approved under this clause.

7.    Invoices and payment

7.1    Invoices
The Consultant must invoice the Company each month in respect of Services carried out in that month (Invoices).

7.2    Form of invoices
The Invoices must be in a form approved by the Company, and must comply with GST
requirements (if applicable).

7.3    Payment
Subject to this clause 7 and provided the Consultant complies with this agreement:
		
	(a)
	the Company will pay the Consultant a gross fee calculated in accordance with Schedule 1 (Fees); and

		
	(b)
	the Fees will be paid by electronic funds transfer within 21days after the Company receives the Invoices.

MinterEllison | Ref: DCW 40-7752750                                Consultancy agreement | page 7

7.4    Deductions
The Company will deduct from the Fees any amounts it is required by law to deduct, including tax if applicable.

8.    Expenses

The Company will pay for or reimburse the Consultant for the Consultant's reasonable travel and out-of-pocket expenses for the purposes of providing the Services, subject to:

(a)       the Company approving the incurring of these expenses in advance; and
(b)       the Consultant providing the appropriate receipts and tax invoices.
9.    Relationship

9.1    Independent Consultant
The Consultant acknowledges that he will provide the Services to the Company as an independent
Consultant.

9.2    Not employee, agent or partner
Nothing in this agreement constitutes a relationship of employer and employee, principal and agent or partnership between any Group Member and the Consultant.

9.3    Ability to assign
With the Company's consent and as long as at all times the Services continue to be carried out by the Consultant, the Consultant may assign the benefit of this Agreement to a Company controlled by him.

10.    Confidential Information

10.1    General
The Consultant must:
		
	(a)
	keep the Confidential Information confidential, except where disclosure is permitted under clause 10.2(b); and

		
	(b)
	take whatever measures are reasonably necessary to preserve such confidentiality, including:

		
	(i)
	complying with all security measures established to safeguard Confidential Information from access or unauthorised use;

(ii)    keeping Confidential Information under his control;
		
	(iii)
	not removing Confidential Information from the Company's premises without prior approval of the Company; and

		
	(iv)
	immediately notifying the Company if the Consultant suspects or is aware Confidential Information is being used, copied or disclosed without authorisation.

10.2    Use of Confidential Information
The Consultant may:
(a)       only use Confidential Information for the sole purpose of providing the Services to the Company; and

MinterEllison | Ref: DCW 40-7752750                                Consultancy agreement | page 8

		
	(b)
	disclose Confidential Information only as authorised by the Company.

10.3    Assistance
The Consultant must provide assistance reasonably requested by the Company in relation to any proceedings any Group Member may take against any person for unauthorised use, copying or disclosure of Confidential Information.

11.    Intellectual property

11.1    Assignment
During the Term of this Agreement the Consultant assigns to the Company all existing and future
Intellectual Property Rights.

11.2    Waivers
In so far as the Consultant is able, the Consultant unconditionally waives all Moral Rights that the Consultant may have in respect of any present or future works created by the Consultant, either alone or with others, in the course of or in connection with the Consultant providing the Services to the Company.

11.3    Consents
The Consultant unconditionally consents to any act or omission by the Company in relation to all works made, or to be made, by the Consultant (either alone or with others) in the course of providing the Services either on the Consultant's own account or in collaboration with others, which may otherwise be an infringement of the Consultant's Moral Rights.

11.4    Disclosure of Intellectual Property Rights
The Consultant must disclose all Intellectual Property Rights to the Company.

11.5    Further assurances
The Consultant must do all things reasonably requested by the Company to enable the Company to exploit and assure further the rights assigned, and consents given, under clause 11.

12.    Privacy

12.1    General
The Company will hold:
(a)    personal information about the Consultant; and
		
	(b)
	any personal information the Company collects about the Consultant during the time which the Consultant provides the Services,

on its relevant database(s) and files.
12.2    Use of personal information
The Company will use the personal information the Consultant has provided for the purpose of administration and management of the Company's business.

12.3    Disclosure
The Consultant acknowledges that the Company may disclose the personal information to other Group Members or other organisations for the purpose of administration and management of the Company's business.

MinterEllison | Ref: DCW 40-7752750                                Consultancy agreement | page 9

13.    Termination of the agreement

The Company may terminate this agreement:

		
	(a)
	at any time with immediate effect by paying the Consultant the balance of the fees he would have received for the Services if it had continued until the expiry of the Term on the basis of the minimum eight days per month commitment;

		
	(b)
	at any time with immediate effect and with no further payment if the Consultant:

(i)    provides Services in a way which is grossly negligent;
		
	(ii)
	does anything (whether or not in the course of providing Services) which is likely to cause any Group Member harm, including economic or reputational harm;

		
	(iii)
	engages in criminal behaviour or serious misconduct in the course of providing the Services.

14.    On and after termination

14.1    General
On and after termination of this agreement:

(a)    the Consultant must stop providing the Services;

(b)    the Company must pay the Consultant any amount due under this agreement;

		
	(c)
	the Consultant must return all Company Property (including records, files, notebooks, correspondence, and papers or documents (in machine readable form or otherwise)) in the possession or control of the Consultant;

(d)    the Consultant must not record any Confidential Information in any form; (e)    the Consultant's obligations under clauses 10 and 11 continue; and
		
	(f)
	as and when required by the Company, the Consultant must disclose any password, security access codes or other information used by the Consultant in the course of, or in connection, with the provision of the Services to the Company.

14.2    Accrued rights and remedies
Termination of this agreement will not affect any accrued rights or remedies either party may have.

MinterEllison | Ref: DCW 40-7752750                                Consultancy agreement | page 10

Schedule 1 - Eric Ford     

	
			
	Clause 1.1
	Services
	The Consultant will be required to assist in platform wide projects including but not limited to:

(b)project development;
(c)  advocacy; and
(d)organisational representation.

The Contactor will be required to perform the Services for up to 8 days per month.

The Consultant may perform the Services at a location away from the Company's offices.

	Clause 1.1
	Company Property
	The Company will provide the following Company Property to the Consultant:

(a)Mobile phone; and

(b)iPad.

The Consultant will not be allocated an office or provided with any form of administrative or other support except as agreed from time to time.

	Clause 2.1
	Commencement Date
	February 1, 2014

	Clause 2.1
	Expiry Date
	December 31, 2014

	Clause 7.3
	Fee
	The Consultant will be entitled to a gross fee of $25,000 (plus GST if applicable) per month for providing the Services (inclusive of any superannuation required to be remitted on behalf of the Consultant).

The Consultant will be entitled to the Fees irrespective of whether the Consultant is required to perform the Services for the full 8 days in any month.

If the Consultant is required in writing to perform services on more than 8 days in any month, he will receive a daily fee of $3,125 for each additional day.

MinterEllison | Ref: DCW 40-7752750                                Consultancy agreement | page 11

Schedule 2 Signing page 

EXECUTED as a agreement.

	
			
	Signed for PEABODY ENERGY
	 
	 

	AUSTRALIA COAL PTY LIMITED by an
	 
	 

	authorised officer in the presence of
	 
	/s/ Gregory H. Boyce

	 
	 
	Signature of officer

	 
	 
	 

	 
	 
	 

	/s/ Denise M. Hipp
	 
	 

	Signature of witness
	 
	Gregory H. Boyce

	 
	 
	 

	 
	 
	 

	Denise M. Hipp
	 
	 

	Name of witness (print)
	 
	Chairman and Chief Executive Officer

	 
	 
	Peabody Energy Corp.

	
			
	Signed by ERIC FORD in the presence of
	 
	 

	 
	 
	 

	/s/ Sharon Fiehler
	 
	/s/ Eric Ford

	Signature of witness
	 
	Eric Ford

	 
	 
	 

	 
	 
	 

	Sharon Fiehler
	 
	 

	Name of witness (print)
	 
	 

	 
	 
	 

MinterEllison | Ref: DCW 40-7752750                                Consultancy agreement | page 12BTU_EX_RSK

2011 Special Award
2011 Plan

RESTRICTED STOCK AGREEMENT
THIS AGREEMENT, dated October 26, 2011 (the “Grant Date”), is made by and between PEABODY ENERGY CORPORATION, a Delaware corporation (the “Company”), and the undersigned employee of the Company or a Subsidiary (as defined below) or an Affiliate (as defined below) of the Company (“Grantee”).
WHEREAS, the Company wishes to afford the Grantee the opportunity to own shares of its $.01 par value Common Stock (“Common Stock”);
WHEREAS, the Company wishes to carry out the Plan (as hereinafter defined), the terms of which are hereby incorporated by reference and made a part of this Agreement; and
WHEREAS, the Committee (as hereinafter defined) appointed to administer the Plan has determined that it would be to the advantage and best interest of the Company and its stockholders to grant the shares of Common Stock provided for herein to the Grantee, on a restricted basis, as an incentive for increased efforts during his or her term of office with the Company or its Subsidiaries or Affiliates, and has advised the Company thereof and instructed the undersigned officers to so grant;
NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows:
ARTICLE I
DEFINITIONS

Whenever the following terms are used in this Agreement, they shall have the meaning specified below.  Capitalized terms not otherwise defined in this Agreement shall have the meanings specified in the Plan.
Section 1.1 -    “Affiliate” shall mean any other Person directly or indirectly controlling, controlled by, or under common control with the Company.  For the purposes of this definition, the term “control” (including, with correlative meanings, the terms “controlling”, “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of that Person, whether through the ownership of voting securities, by contract or otherwise.

Section 1.2 -    “Board of Directors” or “Board” shall mean the Board of Directors of the Company.

Section 1.3 -    “Committee” shall mean the Compensation Committee of the Company, duly appointed by the Board as the Administrator under Section 2 of the Plan.

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Section 1.4 -    “Person” shall mean an individual, partnership, corporation, business trust, joint stock company, trust, unincorporated association, joint venture, governmental authority or other entity of whatever nature.

Section 1.5 -    “Plan” shall mean the Peabody Energy Corporation 2011 Long-Term Equity Incentive Plan, as from time to time amended.

Section 1.6 -    Pronouns ‐ The masculine pronoun shall include the feminine and neuter, and the singular the plural, where the context so indicates.

Section 1.7 -    “Subsidiary” shall mean any corporation in an unbroken chain of corporations beginning with the Company if each of the corporations, or group of commonly controlled corporations, other than the last corporation in the unbroken chain then owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

Section 1.8 -    “Termination of Employment” shall mean a termination of the Grantee’s employment with the Company, a Subsidiary or an Affiliate (regardless of the reason therefor).

ARTICLE II
GRANT OF RESTRICTED STOCK

Section 2.1 -    Grant of Restricted Stock.  For good and valuable consideration, the Company shall grant to the Grantee the number of shares set forth on the signature page hereof of its Common Stock (the “Restricted Stock”) upon the terms and subject to the conditions set forth in this Agreement.

Section 2.2 -    Transfer Restrictions.  At any time prior to vesting in accordance with Article III, the shares of Restricted Stock or any interest therein cannot be directly or indirectly transferred, sold, assigned, pledged, hypothecated or otherwise disposed of.  Upon vesting in accordance with Article III, the shares of Restricted Stock shall cease to be restricted and shall become non-forfeitable, and the Grantee shall own such shares free of all restrictions otherwise imposed by this Agreement.

Section 2.3 -    No Obligation of Employment.  Nothing in this Agreement or in the Plan shall confer upon the Grantee any right to continue in the employ of the Company or any Subsidiary or Affiliate or interfere with or restrict in any way the rights of the Company and its Subsidiaries or Affiliates, which are hereby expressly reserved, to terminate the employment of the Grantee at any time for any reason whatsoever.

Section 2.4 -     Adjustments in Restricted Shares.  In the event of the occurrence of one of the corporate transactions or other events listed in Section 12(a) of the Plan, the Committee shall make such substitution or adjustment as provided in Section 12(a) in order to equitably reflect such corporate transaction or other event.  Any such adjustment made by the Committee shall be final and binding upon the Grantee, the Company and all other interested persons.

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ARTICLE III
VESTING OF RESTRICTED STOCK

Section 3.1 -     Restricted Stock. Unless otherwise provided in this Agreement, the shares of Restricted Stock shall become vested and non-forfeitable to the nearest whole number of shares as follows: 

	
			
	Date Restricted Stock
Becomes Vested
	 
	Percentage of Restricted Stock  which Becomes Vested

	 
	 
	 

	December 31, 2013
	 
	50%

	 
	 
	 

	December 31, 2014
	 
	50%

Section 3.2 -     Acceleration Events.  Notwithstanding anything in this Article III to the contrary, the shares of Restricted Stock shall become fully vested and non-forfeitable upon (i) a Change of Control or (ii) a Termination of Employment due to the death or Disability of the Grantee.

Section 3.3 -     Effect of Termination of Employment.  Except as provided in Section 3.2, no share of Restricted Stock shall become vested and non-forfeitable following Termination of Employment, and any such non-vested and forfeitable share of Restricted Stock shall be immediately and automatically forfeited upon Termination of Employment.

ARTICLE IV
RECEIPT OF STOCK

Section 4.1 -     Conditions to Issuance of Stock Certificates.  The shares of Common Stock deliverable hereunder may be either previously authorized but unissued shares or issued shares that have been reacquired by the Company.  Such shares shall be fully paid and nonassessable.  The Company shall not be required to issue or deliver any certificate or certificates for shares of Common Stock granted hereunder prior to fulfillment of both of the following conditions:

(a)The obtaining of approval or other clearance from any state or federal governmental agency that the Committee, in its absolute discretion, determines to be necessary or advisable; and

(b)The lapse of such reasonable period of time following the grant as the Committee may establish from time to time for administrative convenience.

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Section 4.2 -     Escrow.  Upon issuance, the certificates for the shares of Restricted Stock shall be held in escrow by the Company until, and to the extent, the shares of Restricted Stock cease to be restricted and become non-forfeitable, and the Grantee shall own such shares free of all restrictions otherwise imposed by this Agreement.  Any new, substituted or additional securities or other property described in Section 2.4 shall immediately be delivered to the Company to be held in such escrow.  Shares of Restricted Stock, together with any other assets or securities held in escrow hereunder, shall be (i) surrendered to the Company for cancellation upon forfeiture, if any, of such shares of Restricted Stock by the Grantee hereunder or (ii), subject to the provisions of Section 5.1, released to the Grantee to the extent the shares of Restricted Stock are no longer subject to any of the restrictions otherwise imposed by this Agreement.

Section 4.3 -     Rights as Stockholder.  The Grantee shall not be, and shall not have any of the rights or privileges of, a stockholder of the Company in respect of any shares granted hereunder unless and until the date on which certificates representing such shares shall have been issued by the Company to such Grantee (the “Issuance Date”).  The Grantee shall be entitled to receive any dividends paid with respect to the shares of Restricted Stock that become payable on or after the Issuance Date; provided, however, that no dividends shall be payable to or for the benefit of the Grantee for shares of Restricted Stock with respect to record dates occurring prior to the Issuance Date, or with respect to record dates occurring on or after the date, if any, on which the Grantee has forfeited those shares of Restricted Stock.  The Grantee shall be entitled to vote the shares of Restricted Stock on or after the Issuance Date to the same extent as would have been applicable to the Grantee if the shares of Restricted Stock had then become fully vested and non-forfeitable; provided, however, that the Grantee shall not be entitled to vote the shares of Restricted Stock with respect to record dates for such voting rights occurring prior to the Issuance Date, or with respect to record dates occurring on or after the date, if any, on which the Grantee has forfeited those shares of Restricted Stock.

ARTICLE V
MISCELLANEOUS

Section 5.1 -     Tax Withholding.  Unless either (a) the election described in Section 5.2 hereof is made by the Grantee, or (b) the Grantee makes alternative arrangements satisfactory to the Company to personally remit required withholding amounts, then, as of the date that all or a portion of the shares of Restricted Stock become vested pursuant to Section 3.1 or 3.2 hereof, the Company shall withhold a number of shares of the then vesting shares of Restricted Stock with a fair market value as of such vesting date equal to the aggregate amount required by law to be withheld by the Company in connection with such vesting for applicable federal, state, local and foreign taxes of any kind.  For all purposes, the amount withheld by the Company pursuant to this Section 5.1 shall be deemed to have first been paid to the Grantee.

Section 5.2 -     Section 83(b) Election.  The Grantee understands that Section 83 of the Code may tax as compensation income the difference between the amount paid for the shares of Restricted Stock, if any, and the fair market value of the shares of Restricted Stock as of the date any restrictions on the shares of Restricted Stock lapse in the absence of an election under Section 83(b) of the Code.  In this context, “restriction” means the forfeitability of the shares of Restricted Stock pursuant to the terms of this Agreement.  To the extent that the Company has registered under the Securities 

4

Exchange Act of 1934, as amended (the “Exchange Act”), “restriction” with respect to officers, directors, and ten percent (10%) shareholders may also mean the six-month period after the acquisition of the shares of Restricted Stock during which sales of certain securities by such officers, directors, and ten percent (10%) shareholders would give rise to liability under Section 16(b) of the Exchange Act.  

The Grantee understands that he or she may elect to be taxed at the time he or she receives the shares of Restricted Stock and while the shares of Restricted Stock are subject to restrictions rather than waiting to be taxed on the shares of Restricted Stock when and as the restrictions lapse.  The Grantee realizes that he or she may choose this tax treatment by filing an election under Section 83(b) of the Code with the Internal Revenue Service within thirty (30) days after the Grant Date and by filing a copy of such election with his or her tax return for the tax year in which the Restricted Shares were subjected to the restrictions.  The Grantee understands that failure to make this filing in a timely manner may result in the recognition of compensation by the Grantee, as the restrictions lapse, on any difference between the purchase price, if any, and the fair market value of the shares of Restricted Stock at the time such restrictions lapse.  The Grantee acknowledges that it is the Grantee’s sole responsibility and not the Company’s to timely file the election under Section 83(b) of the Code.  The Grantee acknowledges that he or she shall consult his or her own tax advisers regarding the advisability or non-advisability of making the election under Section 83(b) of the Code and acknowledges that he or she shall not rely on the Company or its advisers for such advice.
If the Grantee makes the election under Section 83(b) of the Code, then the Company shall not be liable or responsible in any way for any tax (including withholding tax) consequences relating to the shares of Restricted Stock, and the Grantee agrees to undertake to determine, and be responsible for, any and all tax (including any withholding tax) consequence to himself or herself with respect to the shares of Restricted Stock.
Section 5.3 -     Administration.  The Committee has the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret or revoke any such rules.  All actions taken and all interpretations and determinations made by the Committee shall be final and binding upon the Grantee, the Company and all other interested persons.  No member of the Committee shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or the shares of Restricted Stock.  In its absolute discretion, the Board of Directors may at any time and from time to time exercise any and all rights and duties of the Committee under the Plan and this Agreement.

Section 5.4 -     Notices.  Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of its Secretary, and any notice to be given to the Grantee shall be addressed to him or her at the address given beneath his or her signature hereto.  By a notice given pursuant to this Section 5.4, either party may hereafter designate a different address for notices to be given to him, her or it.  Any notice which is required to be given to the Grantee shall, if the Grantee is then deceased, be given to the Grantee’s personal representative if such representative has previously informed the Company of his, her or its status and address by written notice under this Section 5.4.  Any notice shall be deemed duly given when enclosed in a 

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properly sealed envelope or wrapper addressed as aforesaid, deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service.

Section 5.5 -     Titles.  Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

Section 5.6 -     Applicability of Plan.  The shares of Common Stock issued to the Grantee hereunder shall be subject to all of the terms and provisions of the Plan, to the extent applicable to such shares.  In the event of any conflict between this Agreement and the Plan, the terms of the Plan shall control.

Section 5.7 -     Amendment.  

(a)The Administrator may amend this Agreement as it determines in good faith to be necessary or desirable to comply with applicable law, but no such amendment shall adversely affect the Grantee’s rights without his or her written consent.  To incorporate other modifications, this Agreement may be amended by a writing executed by the parties hereto.

(b)This Agreement is intended to be exempt from the application of Code Section 409A and shall, to the extent practicable, be construed accordingly.  If either party to this Agreement reasonably determines that any amount payable pursuant to this Agreement would result in adverse tax consequences under Code Section 409A, then such party shall deliver written notice of such determination to the other party, and the parties hereby agree to work in good faith to amend this Agreement so it complies with the requirements of Code Section 409A and preserves as nearly as possible the original intent and economic effect of the affected provisions.

Section 5.8 -     Dispute Resolution.  Any dispute or controversy arising under or in connection with this Agreement shall be resolved by arbitration in St. Louis, Missouri.  Arbitrators shall be selected, and arbitration shall be conducted, in accordance with the rules of the American Arbitration Association.  The Company shall pay or reimburse any legal fees in connection with such arbitration in the event that the Grantee prevails on a material element of his or her claim or defense.  Payments or reimbursements of legal fees made under this Section 5.8 that are provided during one calendar year shall not affect the amount of such payments or reimbursements provided during a subsequent calendar year, payments or reimbursements under this Section 5.8 may not be exchanged or substituted for another form of compensation to the Grantee, and any such reimbursement or payment will be paid within sixty (60) days after the Grantee prevails, but in no event later than the last day of the Grantee’s taxable year following the taxable year in which he incurred the expense giving rise to such reimbursement or payment.  This Section 5.8 shall remain in effect throughout the Grantee’s employment with the Company and for a period of five (5) years following the Grantee’s Termination of Employment.

Section 5.9 -     Governing Law.  The laws of the State of Delaware shall govern the interpretation, validity and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws.

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[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto.
	
			
	 
	 
	PEABODY ENERGY CORPORATION

	/s/ Eric Ford
	 
	/s/ Sharon Fiehler

	Eric Ford                                      Date
	 
	By:  Sharon Fiehler

	 
	 
	Its:  EVP & Chief Administrative Officer

	 
	 
	 

	 
	 
	 

	 
	 
	Award value on Grant Date:  $1,000,000

	 
	 
	 

	 
	 
	 

	 
	 
	Aggregate number of shares of Common Stock granted hereunder:  24,038

	 
	 
	 

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