Document:

BTU_8-K_2013.0930_G2

EXHIBIT 10.2

Dated September 24 2013

BETWEEN

PEABODY HOLDINGS (GIBRALTAR) LIMITED 

as Grantor

-and-

CITIBANK, N.A.

as Administrative Agent

                                         

SHARE CHARGE

relating to shares in
PEABODY INVESTMENTS (GIBRALTAR) LIMITED
                                                  __

INDEX

Clause     Heading    Page No.

1.    INTERPRETATION    1
2.    PAYMENTS      4
3.    SECURITY    4
4.    REPRESENTATIONS AND WARRANTIES    4
5.    UNDERTAKINGS    6
6.    EVENTS OF DEFAULT    7
7.    DIVIDENDS AND VOTING    8
8.    WHEN SECURITY BECOMES ENFORCEABLE    9
9.    ENFORCEMENT OF SECURITY    9
10.    RECEIVER    11
11.    POWERS OF RECEIVER    12
12.    APPLICATION OF PROCEEDS    13
13.    DELEGATION    14
14.    FURTHER ASSURANCES    14
15.    POWER OF ATTORNEY    15
16.    PRESERVATION OF SECURITY    15
17.    RELEASE    17
18.    ADMINISTRATIVE AGENT    18
19.    ASSIGNMENTS AND TRANSFERS    18
20.    ADDITIONAL PROVISIONS    18
21.    NOTICES    18
22.    GOVERNING LAW    18
23.     JURISDICTION    20
24.    COUNTERPARTS    21

EXHIBIT 10.2

THIS DEED is dated September 24 2013 (this “Deed”)

BETWEEN:

		
	(1)
	PEABODY HOLDINGS (GIBRALTAR) LIMITED, incorporated in Gibraltar on the 22nd August 2006 under the Companies Act, and is a company limited by shares with Registration Number 96950 with registered offices at 10/8 International Commercial Centre, Casemates Square, Gibraltar (the “Grantor”); and

		
	(2)
	CITIBANK, N.A., as administrative agent for the Secured Creditors (as defined below) (together with its successors and assigns, in such capacity, the “Administrative Agent”, which expression includes any person which is for the time being the Administrative Agent (or a co-trustee of the Administrative Agent) for the Secured Creditors).

BACKGROUND:

		
	(1)
	Reference is made to the Amended and Restated Credit Agreement dated as of the date hereof (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Peabody Energy Corporation, as borrower (the “Borrower”), the Administrative Agent as Administrative Agent, Swing Line, L/C Issuer and Lender, the other Lenders and the other parties party thereto.

		
	(2)
	It is a condition precedent under the Credit Agreement that the Shares (as defined below) be charged in favour of the Administrative Agent.  

		
	(3)
	The Security created by or pursuant to this Deed is to be administered by the Administrative Agent in accordance with the terms of the Credit Agreement and this Deed.

IT IS AGREED as follows:

1.    INTERPRETATION

1.1    Definitions

In this Deed:

“Act” means the Conveyancing and Law of Property Act 1881 as amended by the Land Law and Conveyancing Act of Gibraltar.

“Cash Management Obligations” shall have the meaning given to such term in the Credit Agreement.

“Company” shall mean Peabody Investments (Gibraltar) Limited, a company incorporated in Gibraltar with registered number 96951 and registered office situate at 10/8 International Commercial Centre, Casemates Square, Gibraltar.

“Credit Agreement” shall have the meaning provided in the recitals of this Deed.

“Discharge of the Secured Obligations” means (a) Payment in Full and (b) with respect to any Cash Management Obligations and Swap Obligations guaranteed under Section 2.1(a) of the Guaranty, (i) payment in full of such obligations (other than in respect of contingent obligations, indemnities and expenses related thereto that are not then payable or in existence), (ii) the entry by the Guarantors into an amendment, amendment and restatement or replacement of this Guaranty in connection with a refinancing or replacement of the Obligations that guarantees such Cash Management Obligations and Swap Obligations on substantially the same terms as the refinanced or replaced Obligations or in substantially the same manner as this Guaranty or (iii) the guarantee by the Borrower of such Cash Management Obligations and Swap Obligations or the provision by the Borrower of other credit support arrangements for the benefit of the Qualified Counterparties with respect to such obligations that are reasonably satisfactory to them (it is understood that the Administrative Agent may rely, without further inquiry, on a certificate of a Responsible Officer of the Borrower to establish that the requirements of this clause (b) have been satisfied).

“Dividends”means all dividends, interest and other income paid or payable in respect of the Shares or any Security Assets.

“Event of Default” shall have the meaning given to such term in the Credit Agreement and shall also include the event listed in Clause 6.2.
“Guarantors”  shall have the meaning given to such term in the Credit Agreement.

“Guaranty”  shall have the meaning given to such term in the Credit Agreement.

“Obligations” shall have the meaning given to such term in the Credit Agreement. 

“Payment in Full” shall have the meaning given to such term in the Credit Agreement.

“Permitted Liens” means the Liens permitted under Section 7.01 of the Credit Agreement.

“Receiver” means a receiver and manager or (if the Administrative Agent so specifies in the relevant appointment) a receiver, in either case appointed under this Deed.

“Related Rights” means any dividend, interest or other distribution paid or payable in relation to any Share and any rights, money or property accruing or offered at any time in relation to such Shares by way of redemption, substitution, exchange, bonus or preference, under option rights or otherwise.

“Qualified Counterparty” means any Person who is a counterparty to a Specified Cash Management Agreement or Secured Hedge Agreement.

“Requirement of Law” shall have the meaning given to such term in the Credit Agreement.
“Secured Creditors” shall mean the Lenders, L/C Issuers, Swing Line Lender and Administrative Agent and each Qualified Counterparty.
“Secured Hedge Agreement” means any Swap Contract evidencing Swap Obligations.

“Secured Obligations” shall have the meaning given to such term in the Credit Agreement.

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“Security” means the security created by this Deed.

“Security Assets” means the Shares and the Related Rights.

“Security Interest” means any mortgage, charge, pledge, lien, encumbrance, right of set off or any security interest howsoever created or arising.

“Shares” means 130 ordinary shares with a par value of US$1.00 in the Company legally and beneficially owned by the Grantor and 195 Redeemable Preference Shares with a par value of US$1.00 in the Company legally and/or beneficially owned by the Grantor.  For avoidance of doubt, it is understood that such shares shall at all times represent no more than 65% of the Equity Interests of the Company.

“Specified Cash Management Agreement” shall have the meaning given to such term in the Credit Agreement.

“Swap Obligations” shall have the meaning given to such term in the Credit Agreement.

1.2    Construction

		
	(a)
	Capitalised terms defined in the Credit Agreement have, unless expressly defined in this Deed, the same meaning in this Deed.

		
	(b)
	The charge granted by the Grantor under this Deed is given by the Grantor as beneficial owner.

		
	(c)
	A reference in this Deed to any assets includes, unless the context otherwise requires, present and future assets.

		
	(d)
	Words importing the masculine gender shall include females.

		
	(e)
	The headings and sub-headings to this Deed are inserted only for reference to the provisions hereof and shall not affect the construction of such provisions.

		
	(f)
	Unless a contradictory indication appears, any reference in this deed to a “person” shall be construed as a reference to any Person as defined in the Credit Agreement.

		
	(g) 
	Unless a contradictory indication appears, any reference in this deed to the “winding‐up”, “dissolution” or “administration” of a company or corporation shall be construed so as to include any equivalent or analogous proceedings under the law of the jurisdiction in which such company or corporation is incorporated or any material jurisdiction in which such company or corporation carries on business, including the seeking of liquidation, winding‐up, reorganisation, dissolution, administration, arrangement, adjustment, protection from creditors or relief of debtors.

		
	(h)
	Unless otherwise stated, any reference in this Deed to any agreement or document (including any reference to this Deed) shall be construed as a reference to such agreement or document as amended, supplemented or otherwise modified from time to time.

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	(i) 
	A certificate of the Administrative Agent as to the amount of any Obligation owed shall be prima facie evidence (absent manifest error) of the existence and amount of such Obligation.

		
	(j)
	Any reference in this Deed to a statute or statutory provision shall, unless the contrary is indicated, be construed as a reference to such statute or statutory provision as the same shall have been or may be amended or re-enacted.

		
	(k)
	If the Administrative Agent requires the Shares or any other asset to be registered in the name of a nominee for the Administrative Agent, any reference in this Deed to the Administrative Agent shall, if the context so permits or requires, be construed as a reference to each of the Administrative Agent and such nominee.

		
	(l)
	Any references in this Deed to the Grantor shall include its respective successors and assignees to the extent permitted under the Credit Agreement and this Deed.

		
	(m)
	This Deed is a Loan Document. 

		
	(n)
	It is intended that this document takes effect as a deed notwithstanding the fact that a party may only execute this document under hand.

2.    PAYMENTS

2.1    Payments

Any payment made by the Grantor under this Deed shall be made free and clear of and without any deduction for, or on account of, any set-off or counterclaim.

3.    SECURITY

The Grantor, as continuing security for the payment, performance and discharge of all the Secured Obligations, charges by way of fixed charge in favour of the Administrative Agent, to hold the same on trust for the Secured Creditors on the terms set out in this Deed and the Credit Agreement, all the Security Assets.  Notwithstanding anything to the contrary, in no event shall more than 65% of the Equity Interests of the Company be subject to a Security Interest in favour of the Administrative Agent.

4.    REPRESENTATIONS AND WARRANTIES

4.1     Representations and Warranties

The Grantor makes the representations and warranties set out in this Clause 4 to the Administrative Agent.

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4.2    Legal validity

This Deed constitutes, or when executed in accordance with its terms will constitute, the legal, valid and binding obligations of the Grantor, enforceable in accordance with its terms except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganisation, moratorium or similar laws generally affecting creditor’s rights and by equitable principles (regardless of whether enforcement is sought in equity or law) and a valid lien on the Shares and no limit on the Grantor’s powers will be exceeded as a result of the grant of the Security or the performance of its obligations hereunder.

4.3    Non‐conflict

Neither the execution, delivery or performance by the Grantor under this Deed, nor compliance by it with the terms and provisions thereof, nor the consummation of the transactions contemplated herein or therein, will:
		
	(i)
	except as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, contravene any applicable law, statute, rule or regulation, or any order, writ, injunction or decree of any Governmental Authority binding on the Grantor;

		
	(ii)
	except as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, conflict with or result in any breach or contravention of, or the creation of, any Lien (except for any Liens that may arise under the Loan Documents) under, or require any payment to be made under any Contractual Obligation to which the Grantor is a party or affecting the Grantor or the properties of the Grantor or any of its Subsidiaries; or

		
	(iii)
	violate any provision of the constitutional documents, statutes or Memorandum and Articles of Association of the Grantor.

4.4    Authorisations

No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority and subject to the registration of this Deed at Companies House in Gibraltar, no material approval, consent, exemption, authorization, or other action by, or notice to, or filing with any other Person, in each case, is necessary or required in connection with the execution, delivery or performance by, or enforcement against, the Grantor of this Deed, except for those approvals, consents, exemptions, authorizations or other actions which have already been obtained, taken, given or made and are in full force and effect.

4.5    The Shares

As of the date hereof:

(a)    The Grantor is the sole legal and beneficial owner of the Shares;

		
	(b)
	The Shares and, to the extent applicable, the other Security Assets, are fully paid up and constitute 65% of the entire issued share capital in the Company; and

		
	(c)
	The Shares are duly issued and non-assessable.

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4.6    Other Security Interest

The Security Assets are free from any Security Interest, except for non-consensual Liens arising by operation of law and pari passu or junior Permitted Liens under Sections 7.01(t) and 7.01(u) of the Credit Agreement.

4.7    Times for making representations and warranties

4.7.1    The representations and warranties set out in this Clause 4 are made:

		
	(a)
	on the date of this Deed; and

		
	(b)
	shall survive the execution of each Security Document until the Payment in Full.

		
	4.7.2
	Each representation and warranty under this Deed is deemed to be repeated by the Grantor on the date of each Credit Extension and, if required by the Credit Agreement, on each Incremental Facility Effective Date and Incremental Commitment Effective Date.

		
	4.7.3
	When a representation and warranty is deemed to be repeated, it is applied to the circumstances existing at the time of repetition.

5.    UNDERTAKINGS

5.1    Duration

The undertakings in this Clause 5 remain in force until the Payment in Full.

5.2    Deposit of Shares

The Grantor shall:

		
	(a)
	upon the execution of this Deed, immediately deposit with the Administrative Agent or, as the Administrative Agent may direct, all original certificates and other documents of title or evidence of ownership in relation to the Security Assets in the name of the Grantor;

		
	(b)
	upon the execution of this Deed, immediately deposit with the Administrative Agent or, as the Administrative Agent may direct, undated stock transfer forms of the Security Assets duly executed by the Grantor in blank; 

		
	(c)
	upon the execution of this Deed, immediately deposit an executed and undated letter of resignation from each director of the Company in the form set out in Schedule 1; 

		
	(d)
	upon the execution of this Deed, a signed, undated shareholder proxy in favour of the Administrative Agent in the form set out in Schedule 2; and

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	(e)
	on the Security constituted by this Deed becoming enforceable forthwith procure that the Administrative Agent (or the Administrative Agent’s nominee) is registered as the holder of the Shares in the register of members of the Company and is issued certificates in respect of such Shares.

5.3    Calls and other obligations

		
	(a)
	The Administrative Agent shall not be required to perform or fulfil any obligations of the Grantor in respect of the Security Assets or to make any payment, or to make any enquiry as to the nature or sufficiency of any payment received by it or the Grantor, or to present or file any claim or take any other action to collect or enforce the payment of any amount to which it may have been or to which it may be entitled under this Deed at any time or times.

		
	(b)
	After the Security becomes enforceable, if the Administrative Agent (or the Administrative Agent’s nominee) in its capacity as registered holder of the Shares receives an offer of rights to subscribe for Shares it shall notify the Grantor and the Grantor shall be entitled to sell (or allow to be sold) such rights nil paid and apply the proceeds in accordance with Clause 13, provided that if the Grantor put the Administrative Agent in sufficient funds within the period allowed for the acceptance of such rights the Administrative Agent (or the Administrative Agent’s nominee) shall take up such rights and the shares so subscribed shall form part of the Security Assets provided that at all times no more than 65% of the issued share capital of the Company shall be charged to the Administrative Agent.

		
	(c)
	The Grantor must promptly deposit an executed and undated letter of resignation from each newly appointed director of the Company in the form set out in Schedule 1.

		
	(d)
	The Grantor must on each occasion on which the Company issues and/or allots further shares to the Grantor: 

		
	(i)
	promptly deposit with the Administrative Agent or, as the Administrative Agent may direct, all original certificates and other documents of title or evidence of ownership in relation to the Security Assets in the name of the Grantor; 

		
	(ii)
	promptly deposit with the Administrative Agent or, as the Administrative Agent may direct, undated stock transfer forms of the Security Assets duly executed by the Grantor in blank.

		
	(e)
	The Administrative Agent is not obliged to: 

		
	(i)
	perform any obligation of the Chargor;

		
	(ii)
	make any payment; or

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	(iii)
	make any enquiry as to the nature or sufficiency of any payment received by it or the Chargor,

in respect of any Security Assets. 

5.4    Grantor to be brought back to Good-Standing

The Grantor undertakes that it will procure that it shall, no later than 16 July 2014, deliver all annual returns to the Registrar of Companies in Gibraltar and pay all filing fees (including penalties) for all calendar years which are due. 

6.    EVENT OF DEFAULT 

		
	6.1
	Without prejudice to the Events of Default set out in the Credit Agreement, the event of circumstances set out in Clause 6.2 is an immediate Event of Default for all purposes under the Credit Agreement. 

		
	6.2
	The Grantor by no later than 16 July 2014, fails to deliver all annual returns to the Registrar of Companies in Gibraltar and pay all filing fees (including penalties), for all calendar years which are due . 

		
	6.3
	For the avoidance of doubt, the Event of Default set out in Clause 6.2 becomes an Event of Default under the Credit Agreement immediately on its occurrence without any cure period, notwithstanding any cure period provided in Section 8.01(c) of the Credit Agreement.

7.    DIVIDENDS AND VOTING 

7.1    Prior to an Event of Default

		
	(a)
	Unless and until there shall have occurred and be continuing an Event of Default and the Administrative Agent shall have notified the Grantor of the exercise of its rights under this Clause 7, the Grantor shall be entitled to exercise all voting and other rights in relation to the Shares.

		
	(b)
	Unless and until there shall have occurred and be continuing an Event of Default and the Administrative Agent shall have notified the Grantor of the exercise of its rights under this Clause 7, the Grantor shall be entitled to receive and retain all Dividends.

		
	7.2
	While an Event of Default has Occurred and is Continuing

At any time while there shall have occurred and be continuing an Event of Default and the Administrative Agent shall have notified the Grantor of the exercise of its rights under this Clause 7, the Administrative Agent shall be entitled to cause the Shares to be registered in its name and may (in the name of the Grantor and otherwise without further consent or authority from the Grantor) take any of the following actions in its sole discretion:

		
	(a)
	exercise or refrain from exercising any voting rights in respect of the Shares and revoke, or cause to be revoked, any proxies given pursuant to Clause 7.1.

8

		
	(b)
	apply all dividends, interest and other monies arising from the Shares in accordance with Section 8.04 of the Credit Agreement as if they were proceeds of sale under this Deed.

		
	(c)
	exercise or refrain from exercising the rights of a legal owner of the Shares, including the right, in relation to the Company, to participate in:

		
	(i)
	the reconstruction, amalgamation, sale or other disposal of the Shares (including the exchange, conversion or reissue of any Shares as a consequence thereof),

		
	(ii)
	the realisation, modification or variation of any rights or liabilities attaching to any such Shares, 

		
	(iii)
	the exercise, renunciation or assignment of any right to subscribe for any such Shares, and

		
	(iv)
	exercise (or enable its nominee or nominees to exercise) any other rights or powers attaching to the Security Assets,

in each case in such manner and on such terms as the Administrative Agent may be so directed by the Required Lenders, and all rights resulting from any such action shall form part of the Security Assets, without any further consent or authority on the part of the Grantor and irrespective of any direction given by the Grantor.

At any time while there shall have occurred and be continuing an Event of Default and the Administrative Agent shall have notified the Grantor of the exercise of its rights under Clause 6, if any Security Asset remains registered in the name of the Grantor, the Grantor irrevocably appoints the Administrative Agent or its nominee as its proxy to exercise all voting rights in respect of those Security Assets at any time after this Deed has become enforceable.

8.    WHEN SECURITY BECOMES ENFORCEABLE

		
	(a)
	The Security constituted by this Deed shall become immediately enforceable and the power of sale and other powers conferred by Section 19 of the Act, as varied or amended by this Deed, shall be immediately exercisable, in each case, upon the occurrence of an Event of Default and for so long as such Event of Default is continuing.

		
	(b)
	After the Security constituted by this Deed has become enforceable, the Administrative Agent may enforce all or any part of the Security in any manner as directed in accordance with the Credit Agreement.

9.    ENFORCEMENT OF SECURITY

9.1    General

		
	(a)
	For the purposes of all powers implied by statute, the Secured Obligations are deemed to have become due on the date of this Deed.  For the avoidance of doubt nothing in this Clause creates an Event of Default (including the Secured Obligations being deemed to have become due).

9

		
	(b)
	Section 20 of the Act (restricting the power of sale) and Section 17 of the Act (restricting the right of consolidation) do not apply to the Security constituted by this Deed.

9.2    Shares

After the security constituted by this Deed has become enforceable, the Administrative Agent may exercise (in the name of the Grantor and without any further consent or authority on the part of the Grantor) any powers or rights which may be exercised by the person or persons in whose name any Share are registered or who is the holder of any of them or otherwise (including all the powers given to trustees by the Trustees Act of Gibraltar in respect of securities or property subject to a trust) including (without limitation):

		
	(a)
	to sell, transfer, assign, exchange or otherwise dispose of all or any of the Security Assets in any manner permitted by law upon such terms as the Administrative  Agent shall in the exercise of its reasonable discretion determine in accordance with the Credit Agreement;

		
	(b)
	collect, recover or compromise and give a good discharge for any moneys payable to the Grantor in respect of the Security Assets or in connection with them; and

		
	(c)
	act generally in relation to the Security Assets in such manner as the Administrative Agent is directed in accordance with the Credit Agreement.

9.3    No liability as mortgagee in possession

Neither the Administrative Agent nor any Receiver will be liable, by reason of entering into possession of a Security Asset, to account as mortgagee in possession or for any loss on realisation or for any default or omission for which a mortgagee in possession might be liable for any reason other than for their own bad faith, gross negligence or wilful misconduct.

9.4    Agent of the Grantor

Each Receiver is deemed to be the agent of the Grantor for all purposes and accordingly is deemed to be in the same position as a Receiver duly appointed by a mortgagee under the Act.  The Grantor alone shall be responsible for his contracts, engagements, acts, omissions, defaults and losses and for liabilities incurred by him and the Administrative Agent shall not incur any liability (either to the Grantor or to any other person) by reason of the Administrative Agent making his appointment as a Receiver or for any other reason other than for their own bad faith, gross negligence or wilful misconduct.

9.5    Privileges

At any time while there shall have occurred and be continuing an Event of Default, each Receiver and the Administrative Agent is entitled to all the rights, powers, privileges and immunities conferred by the Act on mortgagees and receivers when such receivers have been duly appointed under the Act, except that Section 20 of the Act does not apply.

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9.6    Protection of third parties

Save for the Grantor, no person (including a purchaser) dealing with the Administrative Agent or a Receiver or its or his agents will be concerned to enquire:

		
	(a)
	whether the Secured Obligations have become payable; or

		
	(b)
	whether any power which the Administrative Agent or the Receiver is purporting to exercise has become exercisable or is being properly exercised; or

		
	(c)
	whether any money remains due under the Credit Agreement; or

		
	(d)
	how any money paid to the Administrative Agent or to the Receiver is to be applied.

9.7    Other powers

At any time while there shall have occurred and be continuing an Event of Default and the Administrative Agent shall have notified the Grantor of the exercise of its rights under Clause 7, to the extent not prohibited by the Credit Agreement, the Administrative Agent may: 

		
	(a) 
	do all other acts and things which it may reasonably consider desirable or necessary for realising any Security Asset or incidental or conducive to any of the rights, powers or discretions conferred upon it under or by virtue of this Deed; 

		
	(b) 
	exercise in relation to any Security Asset all the powers, authorities and things which it would be capable of exercising if it were the absolute beneficial owner of that Security Asset; and 

(c)    use the name of the Grantor for any of the above purposes.

10.    RECEIVER

10.1    Appointment of Receiver

At any time after the security constituted by this Deed becomes enforceable, the Administrative Agent may without further notice appoint under seal or in writing under its hand any one or more persons to be a Receiver of all or any part of the Security Assets in like manner in every respect as if the Administrative Agent had become entitled under the Act to exercise the power of sale conferred under the Act.

10.2    Removal

The Administrative Agent may by writing under its hand (subject to any requirement for an order of the court in the case of a Collateral receiver or similar appointment in Gibraltar):

		
	(a)
	remove any Receiver appointed by it; and

11

		
	(b)
	whenever it deems it expedient, appoint a new Receiver in the place of any Receiver whose appointment may for any reason have terminated.

10.3    Remuneration

The Administrative Agent may fix any reasonable and documented remuneration of any Receiver appointed by it.

10.4    Relationship with Administrative Agent

To the fullest extent permitted by law, any right, power or discretion conferred by this Deed (either expressly or impliedly) upon a Receiver of the Security Assets may after the security created by this Deed becomes enforceable be exercised by the Administrative Agent in relation to any Security Asset without first appointing a Receiver or notwithstanding the appointment of a Receiver.

10.5    Limitation of Liability

The Administrative Agent shall not be in any way liable or responsible to the Grantor or any third party for any loss or liability arising from any act, default, omission or misconduct on the part of the Receiver for any reason other than its own bad faith, gross negligence or wilful misconduct.

11.    POWERS OF RECEIVER

11.1    General

		
	(a)
	Each Receiver has, and is entitled to exercise, all of the rights, powers and discretions set out below in this Clause 11 in addition to those conferred by the Act on any receiver appointed under the Act.

		
	(b)
	If there is more than one Receiver holding office at the same time, each Receiver may (unless the document appointing him states otherwise) exercise all of the powers conferred on a Receiver under this Deed individually and to the exclusion of any other Receivers.

11.2    Receiver’s Powers

At any time while there shall have occurred and be continuing an Event of Default and the Administrative Agent shall have appointed and not removed a Receiver, a Receiver may:

(a)    Take immediate possession of, get in and collect any Security Assets.

		
	(b)
	Carry on the business of the Grantor as it relates to the Security Assets as he thinks fit.

		
	(c)
	Appoint and discharge managers, officers, agents, accountants, servants, workmen and others for the purposes of this Deed upon reasonable and documented terms as to remuneration or otherwise and discharge any such persons appointed by the Grantor.

12

		
	(d)
	Sell, exchange, convert into money and realise any Security Asset by public auction or private contract and generally in any manner and on any terms which he thinks proper.  The consideration for any such transaction may consist of cash, debentures or other obligations, shares, stock or other valuable consideration and any such consideration may be payable in a lump sum or by instalments spread over such period as he thinks fit.

		
	(e)
	Settle, adjust, refer to arbitration, compromise and arrange any claims, accounts, disputes, questions and demands with or by any person who is or claims to be a creditor of the Grantor or relating in any way to any Security Asset.

		
	(f)
	Bring, prosecute, enforce, defend and abandon all actions, suits and proceedings in relation to any Security Asset which may seem to him to be expedient.

		
	(g)
	Give valid receipts for all moneys and execute all assurances and things which may be proper or desirable for realising any Security Asset.

		
	(h)
	Delegate his powers in accordance with Clause 14.

		
	(i)
	Do all other acts and things which he may consider desirable or necessary for realising any Security Asset or incidental or conducive to any of the rights, powers or discretions conferred on a Receiver under or by virtue of this Deed, and

		
	(j)
	exercise in relation to any Security Asset all the powers, authorities and things which he would be capable of exercising if he were the absolute beneficial owner of the same,

and may use the name of the Grantor for any of the above purposes.

12.    EXPENSES AND INDEMNITY

The Grantor must: 

		
	(a) 
	to the extent that the Borrower is required to make payment thereof pursuant to Section 10.04(a) of the Credit Agreement, pay all costs and expenses (including legal fees) incurred in connection with this Deed by the Administrative Agent, attorney, manager, agent or other person appointed by the Administrative Agent under this Deed including any arising from any actual or alleged breach by any person of any law or regulation, whether relating to the environment or otherwise but excluding any costs and expenses incurred as a result of the fraud, gross negligence or wilful default of the Administrative Agent, attorney, manager or other person; and 

		
	(b) 
	to the extent that the Borrower is required pursuant to Section 10.04(b) of the Credit Agreement to indemnify the parties listed in Section 12(a), keep each of them indemnified against any loss or liability incurred by it in connection with any litigation, arbitration or administrative proceedings concerning this Security.

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13.    APPLICATION OF PROCEEDS

The proceeds received by the Administrative Agent or any Receiver in respect of any sale of, collection from or other realization upon all or any part of the Security Assets pursuant to the exercise by the Administrative Agent of its remedies shall be applied, together with any other sums then held by the Administrative Agent pursuant to this Deed, in accordance with Section 8.04 of the Credit Agreement.

14.    DELEGATION

The Administrative Agent and any Receiver may delegate by power of attorney or in any other manner to any person any right, power or discretion exercisable by the Administrative Agent under this Deed.  Any such delegation may be made upon the terms (including power to sub‐delegate) and subject to any regulations which the Administrative Agent or such Receiver (as the case may be) may think fit.  Neither the Administrative Agent nor any Receiver will be in any way liable or responsible to the Grantor for any loss or liability arising from any act, default, omission or misconduct on the part of any such delegate or sub‐delegate save in the case of fraud or bad faith, wilful misconduct or gross negligence by the Administrative Agent or the Receiver.

15.    FURTHER ASSURANCES

The Grantor shall, at its own expense, take whatever action may be required under applicable law or that the Administrative Agent or a Receiver may reasonably require and request in writing for:

		
	(a)
	creating, perfecting or protecting the Security intended to be created by this Deed over any Security Asset; 

		
	(b)
	if the Security becomes enforceable, facilitating the realisation of any Security Asset or the exercise of any right, power or discretion exercisable, by the Administrative Agent or any Receiver or any of its or their delegates or sub‐delegates in respect of any Security Asset,

including after the Security becomes enforceable, the execution of any transfer, conveyance, assignment or assurance of any Security Asset whether to the Administrative Agent or to its nominees, and the giving of any notice, order or direction and the making of any registration, which in any such case, the Administrative Agent may think expedient (at the reasonable and documented expense of the Grantor); and

		
	(c)
	creating and perfecting security in favour of the Administrative Agent (equivalent to the security intended to be created by this Deed) over all present and future shares and any related rights relating to the Company that are required to be subjected to this Deed pursuant to the Credit Agreement, 

including the re-execution of this Deed and the giving of any notice and the making of any filing or registration which, in any such case, the Administrative Agent may think expedient in the exercise of its reasonable discretion. 

14

16.    POWER OF ATTORNEY

The Grantor, by way of security, irrevocably appoints the Administrative Agent, each Receiver and any of their delegates or sub‐delegates to be their respective attorneys to take any action during the continuance of the Event of Default which the Grantor is obliged to take under this Deed, including without limitation under Clause 14, and to take such other action  and to execute any other document as the Administrative Agent may deem necessary in its sole discretion to exercise its rights under this Deed.  The Grantor ratifies and confirms whatever any attorney does or purports to do pursuant to its appointment under this Clause.

17.    PRESERVATION OF SECURITY

17.1    Continuing security

The Security constituted by this Deed shall be a continuing security and will extend to the ultimate balance of the Secured Obligations regardless of any intermediate payment or satisfaction of the whole or any part of the Secured Obligations (other than a Discharge of the Secured Obligations).

		
	17.2
	Reinstatement

		
	(a) 
	If any discharge (whether in respect of the obligations of any or all of the Loan Parties or any security for those obligations or otherwise) or arrangement is made in whole or in part on the faith of any payment, security or other disposition which is avoided or must be restored on insolvency, liquidation or otherwise without limitation, the liability of the Grantor under this Deed will continue as if the discharge or arrangement had not occurred. 

		
	(b)
	 Each Lender may concede or compromise any claim that any payment, security or other disposition is liable to avoidance or restoration.

17.3    Waiver of defences

Subject to Clause 18 and any act expressly releasing or otherwise exonerating the Grantor from its obligations under this Deed or affecting such obligations, the obligations of the Grantor under this Deed and this security shall not be affected by any act, omission or circumstances which, but for this provision, might operate to release or otherwise exonerate the Grantor from its obligations under this Deed or affect such obligations in whole or in part, including but not limited to (whether or not known to the Lenders or the Administrative Agent):

		
	(a)
	any time or waiver granted to, or composition with, any or all of the Loan Parties or other person (other than one granted by the Administrative Agent);

		
	(b)
	the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets of, any or all of the Loan Parties or other person or any non‐presentment or non‐observance of any formality or other requirement in respect of any instruments or any failure to realise the full value of any security;

15

		
	(c)
	any incapacity or lack of powers, authority or legal personality of or dissolution or change in the members or status of, any or all of the Loan Parties or any other person;

		
	(d)
	any amendment, supplement or other modification of the Credit Agreement (other than to the extent expressly contemplated by the terms of any such amendment, supplement or other modification);

		
	(e)
	any unenforceability, illegality, frustration or invalidity of any obligation of any person under the Credit Agreement as if there were no unenforceability, illegality or invalidity; and

		
	(f)
	any postponement, discharge, reduction, non‐provability or other similar circumstance affecting any obligation of any or all of the Loan Parties resulting from any insolvency, liquidation or dissolution proceedings or from any law, regulation or order so that each such obligation shall for the purposes of the Grantor’s obligations under this Deed be construed as if there were no such circumstance.

17.4    Immediate recourse

The Grantor waives any rights it may have of first requiring the Administrative Agent (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any person before claiming from the Grantor under this Deed.

17.5    Appropriations

Until Discharge of the Secured Obligations, the Administrative Agent (or any trustee or nominee on its behalf) may:

		
	(a)
	refrain from applying or enforcing any other moneys, security or rights held or received by the Administrative Agent (or any trustee or agent on its behalf) in respect of those amounts, or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and the Grantor shall not be entitled to the benefit of the same; and

		
	(b)
	hold in a suspense account any moneys received from the Grantor or on account of the liability of the Grantor under this Deed.

It is understood, for avoidance of doubt, that the Administrative Agent shall not have any of the foregoing rights unless there shall have occurred and be continuing an Event of Default and the Administrative Agent shall have notified the Grantor of the exercise of its rights under Clause 7.

17.6    Non-competition

Until a Discharge of the Secured Obligations, the Grantor shall not, during an Event of Default and after a claim has been made or by virtue of any payment or performance by it under this Deed: 

16

(a) be subrogated to any rights, security or moneys held, received or receivable by any Lender (or any trustee or agent on its behalf) or be entitled to any right of contribution or indemnity in respect of any payment made or moneys received on account of the Grantor’s liability under this Deed; 

(b) claim, rank, prove or vote as a creditor of any or all of the Loan Parties in competition with any Lender (or any trustee or agent on its behalf); or 

(c) receive, claim or have the benefit of any payment, distribution or security from or on account of any or all of the Loan Parties, or exercise any right of set-off as against any or all of the Loan Parties. 

If an Event of Default shall have occurred and be continuing, the Grantor shall hold in trust for and forthwith pay or transfer to the Administrative Agent any payment or distribution or benefit of security received by it contrary to this Deed.

17.7    Additional security

The security granted by this Deed is in addition to and is not in any way prejudiced by any other security now or subsequently held by the Administrative Agent for any of the Secured Obligations; provided that in no event shall more than 65% of the Equity Interests of the Company be subject to a Security Interest.

18.    RELEASE

		
	(a)
	This Deed shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon the Grantor and the successors and assigns thereof and shall inure to the benefit of the Administrative Agent and the other Secured Creditors and their respective successors, endorsees, transferees and assigns until the Discharge of the Secured Obligations.

		
	(b)
	If any of the Shares shall be Disposed of by the Grantor in a transaction expressly permitted by the Credit Agreement, then, the Administrative Agent, at the request and sole expense of the Grantor shall execute and deliver to the Grantor all releases or other documents reasonably necessary or desirable for the release of the Liens created hereby on such Shares provided that the Grantor shall have delivered to the Administrative Agent, at least ten (10) Business Days prior to the date of the proposed release, a written request for release identifying the Grantor and Shares to be released, together with a certification by the Borrower stating that such transaction is in compliance with the Credit Agreement and the other Loan Documents and that the proceeds of such Disposition will be applied in accordance therewith.

		
	(c)
	In connection with the foregoing, the Administrative Agent shall execute and deliver to the Grantor, at the Grantor’s expense, all documents that the Grantor shall reasonably request (without recourse and without representation and warranty of any kind (either express or implied)), in writing, to evidence the foregoing.  Any execution and delivery of documents pursuant to this Clause 18 shall be without recourse to or warranty by the Administrative Agent.

17

19.    ADMINISTRATIVE AGENT

19.1    Declaration of Trust

The Administrative Agent declares itself trustee of the Security created or purported to be created pursuant to this Deed to hold the same on trust for the Secured Creditors on the terms and subject to the conditions set out in this Deed and the Credit Agreement.

19.2    Rights of Administrative Agent

In this Clause any reference to the Administrative Agent’s Rights is a reference to the rights, powers, authorities, discretions, privileges and immunities (a) which a gratuitous trustees have or may have in Gibraltar (referred to below as the Administrative Agent’s “Rights”) and (b) which (by way of supplement to the Trustee Act) are set out below.

		
	(a)  
	The Administrative Agent may exercise any of its Rights and perform any of its duties, obligations and responsibilities under this Deed to the extent provided in Section 9.05 of the Credit Agreement.

		
	(b) 
	The Administrative Agent will hold in accordance with this Deed all items of the Security Assets at any time received under this Deed for the benefit of the Secured Creditors. It is expressly understood, acknowledged and agreed by each Secured Party that by accepting the benefits of this Deed each such Secured Party acknowledges and agrees that the obligations of the Administrative Agent as holder of the Security Assets and interests therein and with respect to the disposition thereof, and otherwise under this Deed, are only those expressly set forth in this Deed and in the Credit Agreement.

		
	(c)
	Notwithstanding anything to the contrary in this Deed, the Credit Agreement shall govern the exercise of rights and the enforcement of remedies hereunder by the Administrative Agent and the Secured Creditors. In the event of any conflict between the terms of this Deed and the Credit Agreement, the Credit Agreement shall govern.

20.    ASSIGNMENTS AND TRANSFERS

Except as permitted by the Credit Agreement, the rights of the Grantor and Administrative Agent under this Deed are not assignable or transferable and each such party agrees that it will not purport to assign or transfer all or any of such rights except as permitted by the Credit Agreement.

21.    ADDITIONAL PROVISIONS

21.1     Partial Invalidity

If at any time any provision of this Deed is or becomes illegal, invalid or unenforceable in any respect or any or all of the Security is or becomes ineffective in any respect under the law of any jurisdiction, such illegality, invalidity, unenforceability or ineffectiveness shall not affect:

18

		
	(a)
	the legality, validity or enforceability of the remaining provisions of this Deed or the effectiveness in any other respect of such Security; or

		
	(b) 
	the legality, validity or enforceability of such provision or the effectiveness of such Security under the laws of any other jurisdiction.

21.2    Avoided Payments

If any amount paid to any Secured Party under the Credit Agreement is avoided or otherwise set aside on the liquidation or administration of the person by whom such amount was paid, then for the purposes of this Deed, such amount shall be regarded as not having been paid.  No interest shall accrue on any such amount unless such amount is so avoided or set aside.

21.3    Currency Conversion and Currency Indemnity

If the Administrative Agent so notifies a Grantor in writing, at the Administrative Agent’s sole and absolute discretion, payments under this Deed shall be the Dollar Equivalent of such payments or any portion thereof which are denominated in an Alternative Currency, determined as of the date payment is made.  If any claim arising under or related to this Deed is reduced to judgment and the amount of such judgment is denominated in a currency (the “Judgment Currency”) other than the currencies in which the Obligations are denominated (collectively the “Obligations Currency”), for purposes hereof the amount of the judgment shall be the Obligations Currency equivalent of the judgment in the Judgment Currency, determined as of the date of judgment and calculated at the spot rate for the purchase of the Obligations Currency with the Judgment Currency quoted by the Administrative Agent in the place of the Administrative Agent’s choice at or about 8:00 a.m. in the jurisdiction of the Obligations Currency on the date for determination specified above. The Grantor shall indemnify the Credit Parties and hold the Credit Parties harmless from and against all loss or damage resulting from any change in exchange rates between the date any claim is reduced to judgment and the date of payment thereof by the Grantor and, if the amount of the Obligations Currency so purchased is greater than the amount of the judgment in the Obligations Currency on the date the claim is reduced to judgment (calculated as set forth in the above sentence) as a result of any change in exchange rates between the date of payment of any claim by the Grantor and the date such claim is reduced to judgment, the Credit Parties agree to return the amount of any excess to the Grantor (or to any other Person who may be entitled thereto under applicable law).

21.4    Rights Cumulative

The rights and remedies provided by this Deed are cumulative and not exclusive of any rights or remedies provided by law.

21.5    Amendments

None of the terms and conditions of this Deed may be changed, waived, modified or varied in any manner whatsoever except in accordance with the Credit Agreement.

19

21.6    Indemnity

The Grantor agrees to indemnify and hold harmless the Administrative Agent and its successors and assigns in the same manner as the Borrower indemnifies such parties under Section 10.04(b) of the Credit Agreement.

22.    NOTICES

All communications and notices to the Administrative Agent and the Grantor hereunder shall (except as otherwise expressly permitted herein) be given as provided in the Credit Agreement and in the case of the Grantor, notice shall be sent to the registered office of the Grantor with a copy to: Suite 1, Burns House, 19 Town Range, Gibraltar and Peabody Investments Corporation, 701 Market St. MO 63101 Attn: Kenneth L. Wagner Fax: (314) 342-3419 / James A. Tichenor Fax: (314) 342-3419  (or such other address as to which the Grantor shall notify the Administrative Agent).

23.    GOVERNING LAW

This Deed is governed by, and construed in accordance with the laws of Gibraltar. 

24.    JURISDICTION

24.1    Courts of Gibraltar

The Grantor and the Administrative Agent irrevocably agree that the courts of Gibraltar shall have jurisdiction to hear and determine any suit, action or proceedings, and to settle any disputes, which may arise out of or in connection with this Deed (respectively “Proceedings” and “Disputes”) and, for such purposes, irrevocably submits to the jurisdiction of such courts.

24.2    Appropriate Forum

The Grantor irrevocably waives any objection which they might now or thereafter have to Proceedings being brought or Disputes settled in the courts of Gibraltar and agrees not to claim that any such court is not a convenient or appropriate forum.

24.3    Service of Process

The Grantor agrees that the process by which Proceedings are begun may be served on it by being delivered in connection with any Proceedings in Gibraltar to the Grantor c/o Triay Stagnetto Neish, Burns House, 19 Town Range, Gibraltar.  If the appointment of the person mentioned in this Clause ceases to be effective, the Grantor shall promptly appoint another person in Gibraltar to accept service of process on its behalf in Gibraltar and if it fails to do so within 15 days the Administrative Agent shall be entitled to appoint such a person by notice to the Grantor.  

24.4    Proceedings in Other Jurisdictions

Nothing in Clause 24.1 (Courts of Gibraltar) shall (and nor shall it be construed so as to) limit the right of the Administrative Agent to take Proceedings against the Grantor in any other court of competent jurisdiction nor shall the taking of Proceedings in any one or more jurisdictions

20

preclude the taking of Proceedings in any other jurisdiction (whether concurrently or not) if not to the extent permitted by applicable law. This Clause 24.4 is for the benefit of the Administrative Agent only. 

24.5    General Consent

The consents generally in respect of any Proceedings to the giving of any relief or the issue of any process in connection with such Proceedings including the making, enforcement or execution against any property whatsoever (irrespective of its use or intended use) of any order or judgement which may be made or given in such Proceedings.

25.    COUNTERPARTS 

This Deed may be executed in counterparts and both such counterparts taken together shall be deemed to constitute one and the same instrument.

This Deed has been entered into as a deed on the date stated at the beginning of this Deed.

21

SIGNATORIES

EXECUTED as a DEED by    
PEABODY HOLDINGS (GIBRALTAR) LIMITED 
acting by:    

Director               /s/ Michael Mahtani                          

Director/Secretary           /s/ Paul Bowling                           

22

EXECUTED as a DEED by    
THE ADMINISTRATIVE AGENT
as Administrative Agent

By:           /s/ Christopher Wood                    
Name:        Christopher Wood
Title:        Managing Director & Vice President
Address:    1st Floor, 390 Greenwich 10013
New York, NY  10013

Fax Number:    (212) 723-8590
Attention:    Christopher Wood

23

SCHEDULE 1
FORM OF DIRECTOR'S LETTER OF RESIGNATION

To: The Directors 
Peabody Investments (Gibraltar) Limited
10/8 International Commercial Centre
Casemates Square
Gibraltar

Dated: ________________ 

Dear Sirs 

Letter of Resignation as a Director 
I am writing to resign as a director of the Company. I irrevocably confirm that I have no claims (whether under common law, contract, equity, statute or otherwise and whether present, future, actual, contingent or otherwise) against the Company, or its directors, officers, employees or shareholders in respect of loss of office as a director of the Company or to any claim for compensation for arrears of pay. To the extent that any such claim(s) may exist, I irrevocably and unconditionally waive it or them and release the Company and its directors, officers, employees and shareholders from any liability in respect thereof. 
I also confirm that there is no outstanding agreement under which the Company has or could have any debt, liability or other obligation to me. 
This resignation is to be effective as at the date hereof. You are hereby authorised to complete and date this letter by dating the same at any time after you are notified by CITIBANK, N.A.
that an Event of Default (as defined in the Credit Agreement in turn defined in the Share Charge between  PEABODY HOLDINGS (GIBRALTAR) LIMITED as Grantor and CITIBANK, N.A. as Administrative Agent dated the ____ day of September 2013) has occurred. 
Yours faithfully 
_______________________________ 

SIGNED, SEALED and DELIVERED AS A DEED 
by 
[Director] 
In the presence of: 
_______________________________ 

SIGNATURE OF WITNESS 
Name: 
Address: 
Occupation:

24

SCHEDULE 2

IRREVOCABLE PROXY AND POWER OF ATTORNEY

We, PEABODY HOLDINGS (GIBRALTAR) LIMITED, a company incorporated with limited liability in  Gibraltar whose registered office is at 10/8 International Commercial Centre, Casemates Square, Gibraltar, being the owner and registered holder of 130 ordinary shares with a par value of US$1.00 and 195 Redeemable Preference Shares with a par value of US$1.00 in Peabody Investments (Gibraltar) Limited of 10/8 International Commercial Centre, Casemates Square, Gibraltar (“the Company”) which shares have been pledged to CITIBANK, N.A. of [ADDRESS] (the “Administrative Agent”) pursuant to the Share Charge dated ____ September 2013 hereby make, constitute and appoint CITIBANK, N.A., to be our true and lawful Proxy and Attorney with full power to appoint a nominee or nominees to act hereunder from time to time, to waive due notice of all or any annual and extraordinary general meetings of the Company, to requisition, convene and attend such Meetings and to vote in respect of our said shares in the Company, either at all such Meetings or by signing or ratifying resolutions in writing of the shareholders of the Company, with the same force and effect as we, as the said owner and registered holder of the said shares, and we undertake to ratify and agree to everything which the said Proxy and Attorney or its nominee or nominees shall do or cause to be done by virtue hereof.

This Proxy and Power of Attorney shall be irrevocable save with the consent of CITIBANK, N.A. and is given by way of security to secure the performance of obligations owed by PEABODY HOLDINGS (GIBRALTAR) LIMITED to CITIBANK, N.A. under the Share Charge between PEABODY HOLDINGS (GIBRALTAR) LIMITED as Grantor and CITIBANK, N.A. as Administrative  Agent dated the ____ day of September 2013. 

This Proxy and Power of Attorney shall be governed by Gibraltar law and is irrevocable and shall remain irrevocable as long as the aforesaid Share Charge is in force. 

	
			
	IN WITNESS whereof this Instrument has been duly executed as a deed this ____ day of September 2013. 

SIGNED as a DEED by 
PEABODY HOLDINGS (GIBRALTAR) LIMITED acting by a director and secretary or two directors 
	) 
) 
) 
) 
) 
) 
) 
) 
) 
	

....................................... 
Name: 
Position: 

....................................... 
Name: 
Position: 

25BTU_8-K_2013.0930_G1

Exhibit 10.3

PLEDGE AGREEMENT
among
PEABODY INVESTMENTS CORP.
and
CITIBANK N.A.,
as Administrative Agent
Dated as of September 24, 2013

TABLE OF CONTENTS
      Page
		
	SECTION 1.
	DEFINED TERMS    1

		
	1.1
	Definitions    1

		
	1.2
	Other Definitional Provisions    3

		
	SECTION 2.
	GRANT OF SECURITY INTEREST    3

		
	SECTION 3.
	REPRESENTATIONS AND WARRANTIES    4

		
	3.1
	Representations in Credit Agreement    4

		
	3.2
	Title; No Other Liens    4

		
	3.3
	Valid, Perfected First Priority Liens    4

		
	3.4
	Name; Jurisdiction of Organization, Etc.    5

		
	3.5
	Pledged Stock    5

		
	SECTION 4.
	COVENANTS    5

		
	4.1
	Covenants in Credit Agreement    5

		
	4.2
	Delivery and Control of Pledged Stock    5

		
	4.3
	Maintenance of Perfected Security Interest    6

		
	4.4
	Pledged Stock    6

		
	4.5
	Voting and Other Rights with Respect to Pledged Stock    6

		
	SECTION 5.
	REMEDIAL PROVISIONS    7

		
	5.1
	Proceeds to be Turned Over To Agent    7

		
	5.2
	Application of Proceeds    7

		
	5.3
	Code and Other Remedies    8

		
	5.4
	Effect of Securities Laws    9

		
	SECTION 6.
	POWER OF ATTORNEY AND FURTHER ASSURANCES    9

		
	6.1
	Administrative Agent’s Appointment as Attorney-in-Fact, Etc.    9

		
	6.2
	Authorization of Financing Statements    11

		
	SECTION 7.
	ACKNOWLEDGEMENT OF GUARANTEE ABSOLUTE AND

UNCONDITIONAL    11
		
	7.1
	Acknowledgement    11

		
	SECTION 8.
	THE ADMINISTRATIVE AGENT    11

		
	8.1
	Authority of Agent    11

		
	8.2
	Duty of Agent    12

		
	8.3
	Exculpation of the Administrative Agent    13

i

      Page
		
	8.4
	No Individual Foreclosure, Etc    14

		
	8.5
	Qualified Counterparties    14

		
	SECTION 9.
	MISCELLANEOUS    15

		
	9.1
	Amendments in Writing    15

		
	9.2
	Notices    15

		
	9.3
	No Waiver by Course of Conduct; Cumulative Remedies    15

		
	9.4
	Enforcement Expenses; Indemnification    15

		
	9.5
	Successors and Assigns    16

		
	9.6
	Set-Off    16

		
	9.7
	Counterparts    16

		
	9.8
	Severability    16

		
	9.9
	Section Headings    17

		
	9.10
	Integration    17

		
	9.11
	GOVERNING LAW    17

		
	9.12
	Submission to Jurisdiction; Waivers    17

		
	9.13
	Acknowledgments    18

		
	9.14
	WAIVER OF JURY TRIAL    18

		
	9.15
	Release.    18

SCHEDULE 1    Description of Pledged Stock    1-1
SCHEDULE 2    Filings and Other Actions Required to Perfect Security Interests    2-1
SCHEDULE 3    Exact Legal Name, Location of Jurisdiction of Organization and 
Chief Executive Office    3-1
SCHEDULE 4    Notice Address of Pledgors    4-1
EXHIBIT A    Form of Uncertificated Securities Control Agreement    A-1

ii

PLEDGE AGREEMENT, dated as of September 24, 2013, among Peabody Investments Corp., a Delaware corporation (the “Pledgor”), and Citibank, N.A., as administrative agent (in such capacity, the “Administrative Agent”) for (a) the banks and other financial institutions or entities (the “Lenders”) from time to time parties to the Amended and Restated Credit Agreement, dated as of the date hereof (the “Credit Agreement”), among Peabody Energy Corporation, a Delaware corporation (the “Borrower”), the Lenders, Citibank N.A., as Administrative Agent, Swing Line Lender and L/C Issuer and the other parties party thereto and (b) the other Secured Parties (as hereinafter defined).  The Lenders, L/C Issuers, Swing Line Lender and Administrative Agent shall be referred to collectively herein as the “Credit Parties”.
W I T N E S S E T H:
WHEREAS, pursuant to the Credit Agreement, the Lenders have severally agreed to make extensions of credit to the Borrower upon the terms and subject to the conditions set forth therein;
WHEREAS, the Borrower is a member of an affiliated group of companies that includes the Pledgor;
WHEREAS, the proceeds of the extensions of credit under the Credit Agreement will be used in part to enable the Borrower to make valuable transfers to the Pledgor in connection with the operation of their businesses; 
WHEREAS, the Borrower and the Pledgor are engaged in related businesses, and the Pledgor will derive substantial direct and indirect benefit from the making of the extensions of credit under the Credit Agreement; and
WHEREAS, it is a condition precedent to the obligation of the Lenders to make their respective extensions of credit to the Borrower under Article IV of the Credit Agreement that the Pledgor shall have executed and delivered this Agreement to the Administrative Agent for the benefit of the Secured Parties.
NOW, THEREFORE, in consideration of the premises and to induce the Administrative Agent and the Lenders to enter into the Credit Agreement and to induce the Lenders and the L/C Issuers to make their respective extensions of credit to the Borrower thereunder and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Pledgor hereby agrees with the Administrative Agent, for the benefit of the Secured Parties, as follows:

SECTION 1.  DEFINED TERMS
1.1    Definitions.  (a)  Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement, and the following terms which are defined in the UCC are used herein as so defined (and if defined in more than one article of the UCC shall have the meaning specified in Article 9 thereof): Certificated Security, Securities Account and Uncertificated Security.

1

(b)    The following terms shall have the following meanings:
“Additional Pledged Stock”:  all Equity Interests in the Issuer acquired by the Pledgor after the date hereof.
“Agreement”:  this Pledge Agreement, as the same may be amended, restated, supplemented or otherwise modified from time to time.
“Collateral”:  as set forth in Section 2.
“Collateral Account”:  any collateral account established by the Administrative Agent as provided in Section 5.1.
“Controlling Parties” shall mean, prior to Payment In Full, the Required Lenders, and, thereafter, the Majority Holders.
“Credit Agreement”:  as set forth in the preamble hereto.
“Discharge of the Secured Obligations”:  (a) Payment in Full and (b) with respect to any Cash Management Obligations and Swap Obligations guaranteed under Section 2.1(a) of the Guaranty, (i) payment in full of such obligations (other than in respect of contingent obligations, indemnities and expenses related thereto that are not then payable or in existence), (ii) the entry by the Guarantors into an amendment, amendment and restatement or replacement of this Guaranty in connection with a refinancing or replacement of the Obligations that guarantees such Cash Management Obligations and Swap Obligations on substantially the same terms as the refinanced or replaced Obligations or in substantially the same manner as this Guaranty or (iii) the guarantee by the Borrower of such Cash Management Obligations and Swap Obligations or the provision by the Borrower of other credit support arrangements for the benefit of the Qualified Counterparties with respect to such obligations that is reasonably satisfactory to them (it is understood that the Administrative Agent may rely, without further inquiry, on a certificate of a Responsible Officer of the Borrower to establish that the requirements of this clause (b) have been satisfied). 
“Initial Pledged Stock”:  all Equity Interests in the Issuer owned by the Pledgor on the date hereof, including the Equity Interests listed on Schedule 1 hereto. 
“Issuer”:  Peabody IC Funding Corp., a Delaware corporation.
“Majority Holders”:  as set forth in Section 8.1(b).
“Permitted Liens”:  the Liens permitted under Section 7.01 of the Credit Agreement.
“Pledged Stock”:  the Initial Pledged Stock and the Additional Pledged Stock.
“Proceeds”:  all “proceeds” as such term is defined in Section 9-102(a)(64) of the UCC and, in any event, shall include, without limitation, all dividends or other income

2

from the Pledged Stock, collections thereon and distributions or payments with respect thereto.
“Qualified Counterparty”:  any Person who is a counterparty to a Specified Cash Management Agreement or Secured Hedge Agreement.
“Secured Hedge Agreement”:  any Swap Contract evidencing Swap Obligations.
“Secured Parties”:  the Credit Parties and each Qualified Counterparty.
“Securities Act”:  the Securities Act of 1933, as amended.
“UCC”:  the Uniform Commercial Code as in effect from time to time in the State of New York; provided, however, that in the event that, by reason of mandatory provisions of law, any or all of the perfection or priority of, or remedies with respect to, any Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions hereof relating to such perfection, priority or remedies.
1.2    Other Definitional Provisions
.  (a)  Where the context requires, terms relating to the Collateral or any part thereof, when used in relation to the Pledgor, shall refer to the Pledgor’s Collateral or the relevant part thereof.
(b)    The interpretative provisions of Section 1.02 of the Credit Agreement shall be incorporated herein mutatis mutandis.
(c)    All references herein to provisions of the UCC shall include all successor provisions under any subsequent version or amendment to any Article of the UCC.
SECTION 2.  GRANT OF SECURITY INTEREST
The Pledgor hereby assigns and transfers to the Administrative Agent, and hereby grants to the Administrative Agent, for the benefit of the Secured Parties, a security interest in, all of the following property, in each case, wherever located and now owned or at any time hereafter acquired by the Pledgor or in which the Pledgor now has or at any time in the future may acquire any right, title or interest (collectively, the “Collateral”), as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of the Secured Obligations:
(a)    all Pledged Stock; 
(b)    all Collateral Accounts; and
(c)    to the extent not otherwise included all Proceeds, products, accessions, rents and profits of any and all of the foregoing.

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         SECTION 3.  REPRESENTATIONS AND WARRANTIES
To induce the Administrative Agent and the Lenders to enter into the Credit Agreement and to induce the Lenders and the L/C Issuers to make their respective extensions of credit to the Borrower thereunder, the Pledgor hereby represents and warrants to each Credit Parties that:
3.1    Representations in Credit Agreement.  The representations and warranties set forth in Article V of the Credit Agreement as they relate to the Pledgor or to the Loan Documents to which the Pledgor is a party, each of which is hereby incorporated herein by reference mutatis mutandis, are true and correct, in all material respects, except to the extent that such representations and warranties specifically refer to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date, and the Credit Parties shall be entitled to rely on each of such representations and warranties as if they were fully set forth herein, provided that each reference in each such representation and warranty to any Borrower’s knowledge shall, for the purposes of this Section 3.l, be deemed to be a reference to the Pledgor’s knowledge.
3.2    Title; No Other Liens.  The Pledgor owns each item of the Collateral free and clear of any and all Liens or claims, including, without limitation, liens arising as a result of the Pledgor becoming bound (as a result of merger or otherwise) as Pledgor under a security agreement or pledge agreement entered into by another Person, except for non-consensual Liens arising by operation of law and pari passu or junior Permitted Liens under Sections 7.01(t) and 7.01(u) of the Credit Agreement.  No financing statement or other public notice with respect to all or any part of the Collateral is on file or of record in any public office, except such as have been filed in favor of the Administrative Agent, for the  benefit of the Secured Parties, pursuant to this Agreement or as are permitted by the Credit Agreement.
3.3    Valid, Perfected First Priority Liens.  The security interests granted pursuant to this Agreement constitute a legal and valid security interest in favor of the Administrative Agent, for the benefit of the Secured Parties, securing the payment and performance of the Pledgor’s Secured Obligations and upon completion of the filings and other actions specified on Schedule 2 (all of which, in the case of all filings and other documents referred to on said Schedule, have been delivered to the Administrative Agent in duly completed and duly executed form, as applicable, and may be filed by the Administrative Agent at any time) and payment of all filing fees, will constitute fully perfected security interests in all of the Collateral prior to all other Liens on the Collateral except for non-consensual Liens arising by operation of law and pari passu Permitted Liens under Sections 7.01(t) and 7.01(u) of the Credit Agreement.  To the extent requested by the Administrative Agent, the Pledgor has taken all actions necessary, including without limitation those specified in Section 4.2 to establish the Administrative Agent’s “control” (within the meanings of Sections 8-106 and 9-106 of the UCC) over any portion of the Collateral constituting Certificated Securities or Uncertificated Securities.
3.4    Name; Jurisdiction of Organization, Etc.  As of the Closing Date, (a) the Pledgor’s exact legal name (as indicated on the public record of the Pledgor’s jurisdiction of formation or organization), jurisdiction of organization and the location of the Pledgor’s chief executive office or sole place of business are specified on Schedule 3; (b) the Pledgor is organized solely under the law of the jurisdiction so specified and has not filed any certificates

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of domestication, transfer or continuance in any other jurisdiction; (c) except as otherwise indicated on Schedule 3, the jurisdiction of the Pledgor’s organization or formation is required to maintain a public record showing the Pledgor to have been organized or formed; (d) except as specified on Schedule 3, it has not changed its name, jurisdiction of organization, chief executive office or sole place of business (if applicable) or its corporate structure in any way (e.g. by merger, consolidation, change in corporate form or otherwise) within the past five years and has not within the last five years become bound (whether as a result of merger or otherwise) as Pledgor under a security agreement entered into by another Person, which has not heretofore been terminated; and (e) unless otherwise stated on Schedule 3, the Pledgor is not a transmitting utility as defined in UCC § 9-102(a)(80).
3.5    Pledged Stock.  (a)  Schedule 1 hereto sets forth all of the Initial Pledged Stock owned by the Pledgor and such Pledged Stock constitutes 100% of the issued and outstanding Equity Interests of the Issuer.  
(b)    All of the shares of the Pledged Stock have been duly and validly issued and are fully paid and nonassessable.
(b)    None of the Pledged Stock is credited to any Securities Account.
(c)    There are no outstanding warrants, options or other rights to purchase, or shareholder, voting trust or similar agreements outstanding with respect to, or property that is convertible into, or that requires the issuance or sale of, any Pledged Stock.
SECTION 4.  COVENANTS
The Pledgor covenants and agrees with the Credit Parties that, from and after the date of this Agreement until the Payment in Full:
4.1    Covenants in Credit Agreement.  The Pledgor shall take, or shall refrain from taking, as the case may be, each action that is necessary to be taken or not taken, as the case may be, so that no Default or Event of Default is caused by the failure to take such action or to refrain from taking such action by the Pledgor. 
4.2    Delivery and Control of Pledged Stock.  If any of the Collateral becomes evidenced or represented by any Certificated Security, such Certificated Security shall be promptly delivered to the Administrative Agent, duly endorsed in a manner satisfactory to the Administrative Agent, to be held as Collateral pursuant to this Agreement.  If any of the Collateral becomes evidenced or represented by an Uncertificated Security, the Pledgor shall promptly cause the Issuer either (a) to register the Administrative Agent as the registered owner of such Uncertificated Security, upon original issue or registration of transfer, or (b) to agree in writing with the Pledgor and the Administrative Agent that the Issuer will, upon an Event of Default, comply with instructions with respect to such Uncertificated Security originated by the Administrative Agent without further consent of the Pledgor, such agreement to be in substantially the form of Exhibit A or in form and substance reasonably satisfactory to the Administrative Agent.
4.3    Maintenance of Perfected Security Interest.  The Pledgor shall maintain the security interest created by this Agreement as a perfected security interest having at least the priority described in Section 3.3 and shall take all reasonable actions to defend such security 

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interest against the claims and demands of all Persons whomsoever (subject to Liens permitted to exist on the Collateral under Section 3.3).
4.4    Pledged Stock.  (a)  If the Pledgor shall become entitled to receive or shall receive any stock or other ownership certificate (including, without limitation, any certificate representing a stock dividend or a distribution in connection with any reclassification, increase or reduction of capital or any certificate issued in connection with any reorganization), or option or rights in respect of the Pledged Stock of the Issuer, whether in addition to, in substitution of, as a conversion of, or in exchange for, any shares of or other ownership interests in the Pledged Stock, or otherwise in respect thereof, the Pledgor shall accept the same as the agent of the Secured Parties, hold the same in trust for the Secured Parties and deliver the same forthwith to the Administrative Agent in the exact form received, duly endorsed by the Pledgor to the Administrative Agent, if required, together with an undated stock power covering such certificate duly executed in blank by the Pledgor to be held by the Administrative Agent, subject to the terms hereof, as additional collateral security for the Secured Obligations.  If an Event of Default shall have occurred and be continuing and any sums of money or property so paid or distributed in respect of the Pledged Stock shall be received by the Pledgor, the Pledgor shall, until such money or property is paid or delivered to the Administrative Agent, hold such money or property in trust for the Secured Parties, segregated from other funds of the Pledgor, as additional collateral security for the Secured Obligations.  Without the prior written consent of the Administrative Agent, the Pledgor will not enter into any material agreement or undertaking restricting the right or ability of the Pledgor or, in connection with an exercise of remedies hereunder, the Administrative Agent to sell, assign or transfer any of the Pledged Stock or Proceeds thereof or any interest therein (other than any intercreditor agreement which the Pledgor is required to execute, including any Junior Lien Intercreditor Agreement or Pari-Passu Intercreditor Agreement or security agreement contemplated thereby or any debt document in respect of Indebtedness permitted to be incurred under the Credit Agreement which such document permits the Lien of the Administrative Agent on the Pledged Stock).
4.5    Voting and Other Rights with Respect to Pledged Stock.  Unless an Event of Default shall have occurred and be continuing and the Pledgor shall have received notice from the Administrative Agent, the Pledgor shall be permitted to receive all dividends and distributions paid in respect of the Pledged Stock, to the extent permitted by the Credit Agreement, and to exercise all voting and corporate rights with respect to the Pledged Stock.  If an Event of Default shall occur and be continuing and the Pledgor shall have received notice from the Administrative Agent:  (i) all rights of the Pledgor to exercise or refrain from exercising the voting and other consensual rights with respect to Pledged Stock which it would otherwise be entitled to exercise shall cease and all such rights shall thereupon become vested in the Administrative Agent who shall thereupon have the sole right, but shall be under no obligation, to exercise or refrain from exercising such voting and other consensual rights, (ii) the Administrative Agent shall have the right to transfer all or any portion of the Pledged Stock to its name or the name of its nominee or agent, (iii) the Administrative Agent shall have the right at any time, without notice to the Pledgor, to exchange any certificates or instruments representing any Pledged Stock for certificates or instruments of smaller or larger denominations and (iv) in order to permit the Administrative Agent to exercise the voting and other consensual rights which it may be entitled to exercise pursuant hereto and to receive all dividends and other distributions which it may be entitled to receive hereunder, the Pledgor

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shall promptly execute and deliver (or cause to be executed and delivered) to the Administrative Agent all proxies, dividend payment orders and other instruments as the Administrative Agent may from time to time reasonably request and the Pledgor acknowledges that the Administrative Agent may utilize the power of attorney set forth herein.  The Pledgor hereby authorizes and instructs the Issuer to (i) comply with any instruction received by it from the Administrative Agent in writing that (x) states that an Event of Default has occurred and is continuing and (y) is otherwise in accordance with the terms of this Agreement, without any other or further instructions from the Pledgor, and the Pledgor agrees that the Issuer shall be fully protected in so complying, and (ii) if an Event of Default shall have occurred and be continuing and the Issuer shall have received notice from the Administrative Agent, pay any dividends or other payments with respect to the Pledged Stock directly to the Administrative Agent.
REMEDIAL PROVISIONS
5.1    Proceeds to be Turned Over To Agent.  If an Event of Default shall occur and be continuing, all Proceeds received by the Pledgor consisting of cash, cash equivalents, checks and other near-cash items shall be held by the Pledgor in trust for the Secured Parties, segregated from other funds of the Pledgor, and shall, forthwith upon request by the Administrative Agent, be turned over to the Administrative Agent in the exact form received by the Pledgor (duly endorsed by the Pledgor to the Administrative Agent, if required).  All Proceeds received by the Administrative Agent hereunder shall be held by the Administrative Agent in a Collateral Account maintained under its sole dominion and control.  All Proceeds while held by the Administrative Agent in a Collateral Account (or by the Pledgor in trust for the Secured Parties) shall continue to be held as collateral security for all the Secured Obligations and shall not constitute payment thereof until applied as provided in Section 5.2.
5.2    Application of Proceeds.  If an Event of Default shall have occurred and be continuing, at any time at the Administrative Agent’s election, the Administrative Agent may (and, if directed by the Required Lenders, shall), notwithstanding the provisions of Section 2.05(c), (d) and (e) and Section 2.06 of the Credit Agreement, apply all or any part of the Collateral and/or net Proceeds thereof (after deducting fees and expenses as provided in Section 5.3) realized through the exercise by the Administrative Agent of its remedies hereunder, whether or not held in any Collateral Account, and any proceeds of the guarantee set forth in Section 5.1 of the Guaranty (all references in this Section 5.2 to Proceeds shall include proceeds of such guarantee), in payment of the Secured Obligations in accordance with and pursuant to Section 8.4 of the Credit Agreement.  Any Proceeds not applied shall be held by the Administrative Agent as Collateral.
5.3    Code and Other Remedies.  (a)  If an Event of Default shall occur and be continuing, the Administrative Agent, on behalf of the Secured Parties, may exercise, in addition to all other rights and remedies granted to them in this Agreement and in any other instrument or agreement securing, evidencing or relating to the Secured Obligations, all rights and remedies of a secured party under the UCC (whether or not the UCC applies to the affected Collateral) and all rights under any other applicable law or in equity.  Without limiting the generality of the foregoing, the Administrative Agent, without demand of performance or other demand, defense, presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below) to or upon the Pledgor or any other Person (all and each of

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which demands, presentments, protests, defenses, advertisements and notices are hereby waived), may in such circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, and/or may forthwith sell, lease, license, assign, give option or options to purchase, or otherwise dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale or sales, at any exchange, broker’s board or office of any Secured Party, on the internet or elsewhere upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit or for future delivery without assumption of any credit risk.  Each Secured Party shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold or to become the licensor of all or any such Collateral, free of any right or equity of redemption in the Pledgor, which right or equity is hereby waived and released.  For purposes of bidding and making settlement or payment of the purchase price for all or a portion of the Collateral sold at any such sale made in accordance with the UCC or other applicable laws, including, without limitation, the Bankruptcy Code of the United States, the Administrative Agent, as agent for and representative of the Secured Parties (but not any Secured Party or Secured Parties in its or their respective individual capacities unless the Controlling Parties shall otherwise agree in writing), shall be entitled to credit bid and use and apply the Secured Obligations (or any portion thereof) as a credit on account of the purchase price for any Collateral payable by the Administrative Agent at such sale, such amount to be apportioned ratably to the Secured Obligations of the Secured Parties in accordance with their pro rata share of such Secured Obligations.  Each purchaser at any such sale shall hold the property sold absolutely free from any claim or right on the part of the Pledgor, and the Pledgor hereby waives (to the extent permitted by applicable law) all rights of redemption, stay and/or appraisal which it now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted.  The Pledgor agrees that, to the extent notice of sale shall be required by law, at least ten (10) days’ notice to the Pledgor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.  The Administrative Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given.  The Administrative Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.  The Administrative Agent may sell the Collateral without giving any warranties as to the Collateral.  The Administrative Agent may specifically disclaim or modify any warranties of title or the like.  The foregoing will not be considered to adversely affect the commercial reasonableness of any sale of the Collateral.  The Pledgor agrees that it would not be commercially unreasonable for the Administrative Agent to dispose of the Collateral or any portion thereof by using Internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets.  The Pledgor hereby waives any claims against the Administrative Agent arising by reason of the fact that the price at which any Collateral may have been sold at such a private sale was less than the price which might have been obtained at a public sale, even if the Administrative Agent accepts the first offer received and does not offer such Collateral to more than one offeree.  The Administrative Agent shall have no obligation to marshal any of the Collateral.
(b)    The Administrative Agent shall deduct from such Proceeds all reasonable costs and expenses of every kind incurred in connection with the exercise of its rights and remedies

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against the Collateral or incidental to the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of the Secured Parties hereunder, including, without limitation, reasonable and documented attorneys’ fees and disbursements.  Any net Proceeds remaining after such deductions shall be applied in accordance with Section 5.2.  If the Administrative Agent sells any of the Collateral upon credit, the Pledgor will be credited only with payments actually made by the purchaser and received by the Administrative Agent.  In the event the purchaser fails to pay for the Collateral, the Administrative Agent may resell the Collateral and the Pledgor shall be credited with proceeds of the sale.  To the extent permitted by applicable law, the Pledgor waives all claims, damages and demands it may acquire against any Secured Party arising out of the exercise by it or them of any rights hereunder.
5.4    Effect of Securities Laws.  The Pledgor recognizes that the Administrative Agent may be unable to effect a public sale of any or all of the Pledged Stock by reason of certain prohibitions contained in the Securities Act and applicable state securities laws or otherwise, and may be compelled to resort to one or more private sales thereof to a restricted group of purchasers which will be obliged to agree, among other things, to acquire such securities for their own account for investment and not with a view to the distribution or resale thereof.  The Pledgor acknowledges and agrees that any such private sale may result in prices and other terms less favorable than if such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been made in a commercially reasonable manner.  The Administrative Agent shall be under no obligation to delay a sale of any of the Pledged Stock for the period of time necessary to permit the Issuer thereof to register such securities for public sale under the Securities Act, or under applicable state securities laws, even if the Issuer would agree to do so.
5.5    Deficiency.  The Pledgor shall remain liable for any deficiency if the proceeds of any sale or other disposition of the Collateral are insufficient to pay its Secured Obligations and the reasonable and documented fees and disbursements of any attorneys employed by any Secured Party to collect such deficiency.
SECTION 6.  POWER OF ATTORNEY AND FURTHER ASSURANCES
6.1    Administrative Agent’s Appointment as Attorney-in-Fact, Etc.  (a)  The Pledgor hereby irrevocably constitutes and appoints the Administrative Agent and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of the Pledgor and in the name of the Pledgor or in its own name, for the purpose of carrying out the terms of this Agreement, to take any and all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to accomplish the purposes of this Agreement, and, without limiting the generality of the foregoing, the Pledgor hereby gives the Administrative Agent the power and right, on behalf of the Pledgor, without notice to or assent by the Pledgor, to do any or all of the following:
in the name of the Pledgor or its own name, or otherwise, take possession of and endorse and collect any checks, drafts, notes, acceptances or other instruments for the payment of moneys with respect to any Collateral and file any claim or take any other action or proceeding in any court of law or equity or otherwise deemed appropriate by

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the Administrative Agent for the purpose of collecting any and all such moneys due with respect to any other Collateral whenever payable;
(ii)    pay or discharge taxes and Liens levied or placed on or threatened against the Collateral, effect any repairs or purchase any insurance called for by the terms of the Loan Documents and pay all or any part of the premiums therefor and the costs thereof;
(iii)    execute, in connection with any sale provided for in Section 5.3 or 5.4, any endorsements, assignments or other instruments of conveyance or transfer with respect to the Collateral; and
(iv)    (1) ask or demand for, collect, and receive payment of and receipt for, any and all moneys, claims and other amounts due or to become due at any time in respect of or arising out of any Collateral; (2) sign and endorse any assignments, verifications, notices and other documents in connection with any of the Collateral; (3) commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Collateral or any portion thereof and to enforce any other right in respect of any Collateral; (4) defend any suit, action or proceeding brought against the Pledgor with respect to any Collateral; (5) settle, compromise or adjust any such suit, action or proceeding and, in connection therewith, give such discharges or releases as the Administrative Agent may deem appropriate; and (6) generally, sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though the Administrative Agent were the absolute owner thereof for all purposes, and do, at the Administrative Agent’s option and the Pledgor’s expense, at any time, or from time to time, all acts and things which the Administrative Agent deems necessary to protect, preserve or realize upon the Collateral and the Secured Parties’ security interests therein and to effect the intent of this Agreement, all as fully and effectively as the Pledgor might do.
Anything in this Section 6.1(a) to the contrary notwithstanding, the Administrative Agent agrees that, except as provided in Section 6.1(b), it will not exercise any rights under the power of attorney provided for in this Section 6.1(a) unless an Event of Default shall have occurred and be continuing.
(b)    If the Pledgor fails to perform or comply with any of its agreements in this Agreement, the Administrative Agent, at its option, but without any obligation so to do, may perform or comply, or otherwise cause performance or compliance, with such agreements; provided, however, that unless an Event of Default has occurred and is continuing, the Administrative Agent shall not exercise this power without first making demand on the Pledgor and the Pledgor failing to promptly comply therewith.
(c)    The expenses of the Administrative Agent incurred in connection with actions undertaken as provided in this Section 6.1 shall be payable by the Pledgor to the extent that they would be payable by the Borrower pursuant to Section 10.04(a) of the Credit Agreement.

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(d)    The Pledgor hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof.  All powers, authorizations and agencies contained in this Agreement are coupled with an interest and are irrevocable until a Discharge of the Secured Obligations.
6.2    Authorization of Financing Statements.  The Pledgor acknowledges that pursuant to Section 9-509(b) of the UCC and any other applicable law, the Administrative Agent is authorized to file or record financing or continuation statements, and amendments thereto, and other filing or recording documents or instruments with respect to the Collateral in such form and in such offices as the Administrative Agent reasonably determines appropriate to perfect or maintain the perfection of the security interests of the Administrative Agent under this Agreement.  The Pledgor agrees that such financing statements may describe the collateral in the same manner as described in this Agreement or such other description as the Administrative Agent, in its reasonable judgment, determines is necessary or advisable.  A photographic or other reproduction of this Agreement shall be sufficient as a financing statement or other filing or recording document or instrument for filing or recording in any jurisdiction.
SECTION 7.  LIEN ABSOLUTE
7.1    Security Interest Absolute.  All rights of the Administrative Agent and all obligations of the Pledgor hereunder shall be absolute and unconditional irrespective of, and Pledgor hereby waives all rights, claims, and defenses that it might otherwise have (now or in the future) (other than related to payment and performance) with respect to, in each case: (a) any lack of validity or enforceability of the Credit Agreement, any other Loan Document, any of the Secured Obligations or any other agreement or instrument relating to any of the foregoing, (b) any renewal or extension of, or any increase in the amount of the Secured Obligations, any change in the time, manner or place of payment of, or in any other term of, all or any of the Secured Obligations, or any other amendment, supplement, modification or waiver of or any consent to any departure from the Credit Agreement or any other Loan Document (other than this Agreement) or any Secured Hedge Agreement or Secured Cash Management Agreement, (c) any defense, set-off or counterclaim which may at any time be available to or be asserted by the Borrower or any other Person against any Credit Party, (d) any exchange, release or nonperfection of any Lien on other collateral, or any release or amendment or waiver of or consent under or departure from any guarantee, securing or guaranteeing all or any of the Secured Obligations or (e) any other circumstance that might otherwise constitute a defense available to, or a discharge of, the Pledgor in respect of the Secured Obligations or this Agreement.
7.2    Continuing Rights.  When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against the Pledgor, the Administrative Agent may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as it may have against Borrower, the Pledgor or any other Person or against any collateral security or guarantee for the Secured Obligations or any right of offset with respect thereto, and any failure by the Administrative Agent to make any such demand, to pursue such other rights or remedies or to collect any payments from Borrower, the Pledgor or any other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of Borrower, the Pledgor or any other Person or any such collateral security, guarantee or right of offset, shall not relieve the Pledgor of any obligation or liability

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hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of Secured Party against the Pledgor.  For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings.
SECTION 8.  THE ADMINISTRATIVE AGENT
8.1    Authority of Agent.   (a)  The Pledgor acknowledges that the rights and responsibilities of the Administrative Agent under this Agreement with respect to any action taken by the Administrative Agent or the exercise or non-exercise by the Administrative Agent of any option, voting right, request, judgment or other right or remedy provided for herein or resulting or arising out of this Agreement shall, as between the Administrative Agent and the other Secured Parties, be governed by the Credit Agreement and by such other agreements with respect thereto as may exist from time to time among them, but, as between the Administrative Agent and the Pledgor, the Administrative Agent shall be conclusively presumed to be acting as agent for the Secured Parties with full and valid authority so to act or refrain from acting, and the Pledgor shall not be under any obligation, or entitlement, to make any inquiry respecting such authority.
(b)    The Administrative Agent has been appointed to act as the Administrative Agent hereunder by the Lenders and, by their acceptance of the benefits hereof, the other Secured Parties.  The Administrative Agent shall be obligated, and shall have the right hereunder, to make demands, to give notices, to exercise or refrain from exercising any rights, and to take or refrain from taking any action (including, without limitation, the release or substitution of Collateral), solely in accordance with this Agreement and the Credit Agreement; provided that the Administrative Agent shall, after Payment in Full, exercise, or refrain from exercising, any remedies provided for herein and otherwise act in accordance with the instructions of the holders of a majority (the “Majority Holders”) of the sum of (x) the aggregate settlement or termination amount (exclusive of expenses and similar payments but including any early termination payments then due) under all Secured Hedge Agreements and (y) all amounts payable under Secured Cash Management Agreements (exclusive of expenses and similar payments).  For purposes of the foregoing sentence, the settlement or termination value for any hedge that has not been terminated or closed out at the time of the relevant determination shall be a termination, close-out unwind or equivalent value as calculated by the appropriate swap counterparties and reported to the Administrative Agent upon request or, if any such counterparty does not provide such calculation, such value as shall be determined by the Administrative Agent in its sole discretion; provided that any Secured Hedge Agreement with a termination or close-out amount that is a negative number shall be disregarded for purposes of determining the Majority Holders.  The provisions of the Credit Agreement relating to the Administrative Agent, including without limitation, the provisions relating to resignation or removal of the Administrative Agent, subject to Section 8.3(e) hereof) and the powers and duties and immunities of the Administrative Agent, are incorporated herein by this reference and shall survive any termination of the Credit Agreement.
8.2    Duty of Agent.  The Administrative Agent’s sole duty with respect to the custody, safekeeping and physical preservation of the Collateral in its possession, under Section 9-207 of the UCC or otherwise, shall be to deal with it in the same manner as the Administrative Agent deals with similar property for its own account.  Neither the Administrative Agent nor any other

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Secured Party nor any of their respective officers, directors, partners, employees, agents, attorneys or other advisors, attorneys-in-fact or affiliates shall be liable for failure to demand, collect or realize upon any of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of the Pledgor or any other Person or to take any other action whatsoever with regard to the Collateral or any part thereof.  The powers conferred on the Secured Parties hereunder are solely to protect the Secured Parties’ interests in the Collateral and shall not impose any duty upon any Secured Party to exercise any such powers.  The Secured Parties shall be accountable only for amounts that they actually receive as a result of the exercise of such powers, and neither they nor any of their officers, directors, partners, employees, agents, attorneys and other advisors, attorneys-in-fact or affiliates shall be responsible to the Pledgor for any act or failure to act hereunder, except to the extent that any such act or failure to act is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from their own bad faith, gross negligence or willful misconduct.
8.3    Exculpation of the Administrative Agent.  (a)  The Administrative Agent shall not be responsible to any Secured Party for the execution, effectiveness, genuineness, validity, enforceability, collectability or sufficiency hereof or of any Security Document or the validity or perfection of any security interest or for any representations, warranties, recitals or statements made herein or therein or made in any written or oral statements or in any financial or other statements, instruments, reports or certificates or any other documents furnished or made by the Administrative Agent to the Secured Parties or by or on behalf of any Secured Party to the Administrative Agent or any Secured Party in connection with the Security Documents and the transactions contemplated thereby or for the financial condition or business affairs of any Loan Party or any other Person liable for the payment of any Secured Obligations, nor shall the Administrative Agent be required to ascertain or inquire as to the performance or observance of any of the terms, conditions, provisions, covenants or agreements contained in any of the Security Documents or as to the existence or possible existence of any Event of Default or Default or to make any disclosures with respect to the foregoing.
(b)    Neither the Administrative Agent nor any of its officers, partners, directors, employees or agents shall be liable to the Secured Parties for any action taken or omitted by the Administrative Agent under or in connection with any of the Security Documents except to the extent caused solely and proximately by the Administrative Agent’s gross negligence or willful misconduct, as determined by a final, non-appealable judgment of a court of competent jurisdiction.  The Administrative Agent shall be entitled to refrain from any act or the taking of any action in connection herewith or any of the Security Documents or from the exercise of any power, discretion or authority vested in it hereunder or thereunder unless and until the Administrative Agent shall have been instructed in respect thereof by the Controlling Parties and, upon such instruction, the Administrative Agent shall be entitled to act or (where so instructed) refrain from acting, or to exercise such power, discretion or authority, in accordance with such written instructions.  Without prejudice to the generality of the foregoing, (i) the Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any communication, instrument or document believed by it to be genuine and correct and to have been signed or sent by the proper Person or Persons, and shall be entitled to rely and shall be protected in relying on opinions and judgments of attorneys (who may be attorneys for the Pledgor and their Subsidiaries), accountants, experts and other professional advisors selected by it; and (ii) no Secured Party shall have any right of action whatsoever against the Administrative

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Agent as a result of the Administrative Agent acting or refraining from acting hereunder or under any of the Security Documents in accordance with the Credit Agreement or, in the limited circumstances specified in Section 8.1(b) hereof, the instructions of the Majority Holders.
(c)    Without limiting the indemnification provisions of the Credit Agreement, each of the Secured Parties not party to the Credit Agreement severally agrees to indemnify the Administrative Agent, to the extent that the Administrative Agent shall not have been reimbursed by any Loan Party, for and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including counsel fees and disbursements) or disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against the Administrative Agent in exercising its powers, rights and remedies or performing its duties hereunder or under the Security Documents or otherwise in its capacity as the Administrative Agent in any way relating to or arising out of this Agreement or the Security Documents; provided, no such Secured Party shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting solely and proximately from the Administrative Agent’s gross negligence or willful misconduct, as determined by a final, non-appealable judgment of a court of competent jurisdiction.  If any indemnity furnished to the Administrative Agent for any purpose shall, in the opinion of the Administrative Agent, be insufficient or become impaired, the Administrative Agent may call for additional indemnity and cease, or not commence, to do the acts insufficiently indemnified against until such additional indemnity is furnished.
(d)    No direction given to the Administrative Agent by the Secured Parties which imposes, or purports to impose, upon the Administrative Agent any obligation not set forth in or arising under this Agreement or any Security Document accepted or entered into by the Administrative Agent shall be binding upon the Administrative Agent.
(e)    Prior to Payment in Full, the Administrative Agent may resign at any time in accordance with Section 9.06 of the Credit Agreement.  After the Administrative Agent’s resignation in accordance with Section 9.06 of the Credit Agreement, the provisions of Section 8 hereof and of Section 9.06 of the Credit Agreement shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while it was acting as the Administrative Agent.  Upon the acceptance of any appointment as the Administrative Agent by a successor Administrative Agent in accordance with Section 9.06 of the Credit Agreement, the retiring Administrative Agent shall promptly transfer all Collateral within its possession or control to the possession or control of the successor Administrative Agent and shall execute and deliver such notices, instructions and assignments as may be necessary or desirable to transfer the rights of the Administrative Agent in respect of the Collateral to the successor Administrative Agent.  From and after Payment in Full, the Majority Holders shall be entitled to appoint the successor agent upon the resignation of the Administrative Agent.
8.4    No Individual Foreclosure, Etc.  No Secured Party shall have any right individually to realize upon any of the Collateral except to the extent expressly contemplated by this Agreement or the other Loan Documents, it being understood and agreed that all powers, rights and remedies under the Loan Documents may be exercised solely by the Administrative Agent on behalf of the Secured Parties in accordance with the terms thereof.  Each Secured Party, whether or not a party hereto, will be deemed, by its acceptance of the benefits of the Collateral provided under the Pledge Agreements, to have agreed to the foregoing provisions and the other provisions of this Agreement.  Without limiting the generality of the foregoing, 

14

each Secured Party authorizes the Administrative Agent to credit bid all or any part of the Secured Obligations held by it.
8.5    Qualified Counterparties.  No Qualified Counterparty that obtains the benefits of the Security Documents or any Collateral by virtue of the provisions of the Credit Agreement or of the Security Documents (other than as a Majority Holder pursuant to the provisions of Section 8.1(b)), shall have any right to notice of any action or to consent to, direct or object to any action under any Loan Document or otherwise in respect of the Collateral (including the release or impairment of any Collateral) other than in its capacity as a Lender and, in such case, only to the extent expressly provided in the Loan Documents.  Notwithstanding any other provision of this Agreement to the contrary, the Administrative Agent shall not be required to verify the payment of, or that other satisfactory arrangements have been made with respect to, Secured Obligations arising under Secured Hedge Agreements and Secured Cash Management Agreements unless the Administrative Agent has received written notice of such Secured Obligations, together with such supporting documentation as the Administrative Agent may request, from the applicable Qualified Counterparty.
SECTION 9.  MISCELLANEOUS
9.1    Amendments in Writing.  None of the terms or provisions of this Agreement may be waived, amended, supplemented or otherwise modified except in accordance with Section 10.01 of the Credit Agreement.  After the Payment in Full, the provisions of this Agreement may be waived, amended, supplemented or otherwise modified by a written instrument executed by the Pledgor and the Majority Holders.
9.2    Notices.  All notices, requests and demands to or upon the Administrative Agent or the Pledgor hereunder shall be effected in the manner provided for in Section 10.02 of the Credit Agreement; provided that any such notice, request or demand to or upon the Pledgor shall be addressed to the Pledgor at its notice address set forth on Schedule 4.
9.3    No Waiver by Course of Conduct; Cumulative Remedies.  No Secured Party shall by any act (except by a written instrument pursuant to Section 9.1), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced to any Default or Event of Default.  No failure to exercise, nor any delay in exercising, on the part of any Secured Party, any right, power or privilege hereunder shall operate as a waiver thereof.  No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  A waiver by any Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which such Secured Party would otherwise have on any future occasion.  The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law.
9.4    Enforcement Expenses; Indemnification.  (a)  The Pledgor agrees to pay or reimburse each Credit Party for all its reasonable and documented out-of-pocket costs and

15

expenses incurred in collecting against the Pledgor under this Agreement or otherwise enforcing or preserving any rights under this Agreement and the other Loan Documents to which the Pledgor is a party, including, without limitation, the reasonable and documented fees and disbursements of counsel to each Credit Party and of counsel to the Administrative Agent to the extent the Borrower would be required to do so pursuant to Section 10.04 of the Credit Agreement.
(b)    The Pledgor agrees to pay, and to save the Credit Parties, harmless from, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery, enforcement, performance and administration of this Agreement to the extent the Borrower would be required to do so pursuant to Section 10.04(b) of the Credit Agreement.
(c)    The agreements in this Section 9.4 shall survive Payment in Full.
9.5    Successors and Assigns.  This Agreement shall be binding upon the successors and assigns of each Pledgor and shall inure to the benefit of the Secured Parties and their successors and assigns; provided that the Pledgor may not assign, transfer or delegate any of its rights or obligations under this Agreement, except as expressly contemplated by the Credit Agreement, without the prior written consent of the Administrative Agent and any such assignment, transfer or delegation without such consent shall be null and void.
9.6    Set-Off.  The Pledgor hereby irrevocably authorizes each Credit Party at any time and from time to time pursuant to, and to the extent set forth in, Section 10.08 of the Credit Agreement, upon any amount becoming due and payable hereunder, without notice to the Pledgor, any such notice being expressly waived by the Pledgor, to set-off and appropriate and apply any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by such party to or for the credit or the account of the Pledgor, or any part thereof in such amounts as such Credit Party may elect, against and on account of the obligations and liabilities of the Pledgor to such Credit Party hereunder and claims of every nature and description of such Credit Party against the Pledgor, in any currency, arising hereunder, under the Credit Agreement or any other Loan Document, as such Credit Party may elect, whether or not such Credit Party has made any demand for payment and although such obligations, liabilities and claims may be contingent or unmatured.  Each Credit Party exercising any right of set-off shall notify the Pledgor promptly of any such set-off and the application made by such Credit Party of the proceeds thereof, provided that the failure to give such notice shall not affect the validity of such set-off and application.  The rights of each Credit Party under this Section 9.6 are in addition to other rights and remedies (including, without limitation, other rights of set-off) which such Credit Party may have.
9.7    Counterparts.  This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed counterpart of a signature of this Agreement by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Agreement.

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9.8    Severability.  Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction with respect to the Pledgor shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof with respect to the Pledgor, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction with respect to such Pledgor.  The parties hereto shall endeavor in good-faith negotiations to replace any invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.
9.9    Section Headings.  The Section headings used in this Agreement are for convenience of reference only and are not to affect the construction hereof or be taken into consideration in the interpretation hereof.
9.10    Integration.  This Agreement and the other Loan Documents represent the agreement of the Pledgor, the Administrative Agent and the Secured Parties with respect to the subject matter hereof and thereof, and supersedes any and all previous agreements and understandings, oral or written, relating to the subject matter hereof and thereof.  There are no promises, undertakings, representations or warranties by any Secured Party relative to the subject matter hereof and thereof not expressly set forth or referred to herein or therein. 
9.11    GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 
9.12    Submission to Jurisdiction; Waivers.  Each party hereto hereby irrevocably and unconditionally:
(a)    submits for itself in any legal action or proceeding relating to this Agreement and the other Loan Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the exclusive general jurisdiction of the courts of the State of New York sitting in New York County, the courts of the United States of America for the Southern District of New York, and appellate courts from any thereof;
(b)    consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same;
(c)    agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to the Pledgor at its address referred to in Section 9.2 or at such other address of which the Administrative Agent shall have been notified pursuant thereto;
(d)    agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction; and

17

(e)    waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section any special, exemplary, punitive or consequential damages; provided that this waiver shall not limit the reimbursement and indemnification obligations of the Pledgor under Section 9.4(b).
9.13    Acknowledgments.  The Pledgor hereby acknowledges that:
(a)    it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Loan Documents to which it is a party;
(b)    no Credit Party has any fiduciary relationship with or duty to the Pledgor arising out of or in connection with this Agreement or any of the other Loan Documents, and the relationship between the Pledgor, on the one hand, and the Secured Parties, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and
(c)    no joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the Secured Parties or among the Pledgor and the Secured Parties.
9.14    WAIVER OF JURY TRIAL.  THE PLEDGOR AND, BY ACCEPTANCE OF THE BENEFITS HEREOF, EACH OF THE SECURED PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.
9.15    Release.  (a)  Upon a Discharge of the Secured Obligations, the Collateral shall be automatically released from the Liens created hereby, and this Agreement and all obligations (other than those expressly stated to survive such termination) of the Administrative Agent and the Pledgor hereunder shall terminate, all without delivery of any instrument or performance of any act by any party, and all rights to the Collateral shall revert to the Pledgor.  At the request and sole expense of the Pledgor following any such termination, the Administrative Agent shall deliver to the Pledgor any Collateral held by the Administrative Agent hereunder, and execute and deliver to the Pledgor such documents as the Pledgor shall reasonably request to evidence such termination.
(b)    If any of the Collateral shall be Disposed of by the Pledgor in a transaction expressly permitted by the Credit Agreement, then, the Administrative Agent, at the request and sole expense of the Pledgor, shall execute and deliver to the Pledgor all releases or other documents reasonably necessary or desirable for the release of the Liens created hereby on such Collateral provided that the Pledgor shall have delivered to the Administrative Agent, at least ten (10) Business Days prior to the date of the proposed release, a written request for release identifying the Pledgor and Collateral to be released, together with a certification by the Borrower stating that such transaction is in compliance with the Credit Agreement and the other Loan Documents and that the Proceeds of such Disposition will be applied in accordance therewith. 
(c)    Until Discharge of the Secured Obligations, the Pledgor acknowledges that it is not authorized to file any financing statement amendment or termination statement with respect

18

to any financing statement originally filed in connection herewith without the prior written consent of the Administrative Agent, subject to the Pledgor’s rights under Section 9-509(d) of the UCC.

19

IN WITNESS WHEREOF, each of the undersigned has caused this Pledge Agreement to be duly executed and delivered as of the date first above written.
PLEDGOR:

PEABODY INVESTMENTS CORP.

By:   /s/ James Tichenor                                   
Name:  James Tichenor
Title:     Vice President and Treasurer

ADMINISTRATIVE AGENT:

CITIBANK, N.A.
as Administrative Agent

By:    /s/ Justin Tichauer                               
Name:  Justin Tichauer
Title:    Vice President

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Schedule 1
DESCRIPTION OF PLEDGED STOCK
	
							
	Pledgor
	Issuer
	Issuer’s Jurisdiction
Under New York UCC Section 9-305(a)(2)
	Class of Stock
	Stock Certificate No.
	Percentage of Shares
	No. of Shares

	Peabody Investments Corp.
	Peabody IC Funding Corp.
	Delaware
	N/A
	No.1
	100%
	100

	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 

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Schedule 2
FILINGS AND OTHER ACTIONS
REQUIRED TO PERFECT SECURITY INTERESTS
Uniform Commercial Code Filings
Secretary of State of the State of Delaware
Actions with respect to Pledged Stock
Delivery of all share certificates of Pledged Stock to the Administrative Agent
Other Actions
Delivery of undated stock power

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Schedule 3
PLEDGOR’S EXACT LEGAL NAME, LOCATION OF JURISDICTION OF
ORGANIZATION AND CHIEF EXECUTIVE OFFICE
	
			
	Exact Legal Name
	Jurisdiction of Organization
	Chief Executive Office

	 
	 
	 

	Peabody Investments Corp.
	Delaware
	701 Market Street
St. Louis, MO 63101

	 
	 
	 

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Schedule 4
NOTICE ADDRESS OF THE PLEDGOR

Peabody Investments Corporation
701 Market St.
St. Louis, MO 63101
Attn: 
Kenneth L. Wagner
Fax:        (314) 342-3419    
E-Mail:     kwagner@peabodyenergy.com

James A. Tichenor
Fax:        (314) 342-3419    
E-Mail:    jtichenor@peabodyenergy.com 
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| NY

5929604.13||

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Exhibit A to
Pledge Agreement
FORM OF UNCERTIFICATED SECURITIES CONTROL AGREEMENT
This CONTROL AGREEMENT (as amended, supplemented or otherwise modified from time to time, the “Control Agreement”) dated as of _______ ___, ____, is made by and among _______________, a __________ corporation (the “Pledgor”), [NAME OF AGENT], as agent (in such capacity, the “Agent”) for the Secured Parties (as defined in the Pledge Agreement referred to below), and ____________, a ____________ corporation (the “Issuer”).
WHEREAS, the Pledgor has granted to the Agent for the benefit of the Secured Parties a security interest in the uncertificated securities of the Issuer owned by the Pledgor from time to time (collectively, the “Pledged Securities”), and all additions thereto and substitutions and proceeds thereof (collectively, with the Pledged Securities, the “Collateral”) pursuant to a Pledge Agreement, dated as of ___________ __, ____ (as amended, restated, supplemented, or otherwise modified from time to time, the “Pledge Agreement”), among the Pledgor and the other persons party thereto as grantors in favor of the Agent.
WHEREAS, the following terms which are defined in Articles 8 and 9 of the Uniform Commercial Code in effect in the State of New York on the date hereof (the “UCC”) are used herein as so defined:  Adverse Claim, Control, Instruction, Proceeds and Uncertificated Security.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
SECTION 1.  Notice of Security Interest.  The Pledgor, the Agent and the Issuer are entering into this Control Agreement to perfect the Agent’s security interest in the Collateral.  The Issuer acknowledges that this Control Agreement constitutes written notification to the Issuer of the Agent’s security interest in the Collateral.  The Issuer agrees to promptly make all necessary entries or notations in its books and records to reflect the Agent’s security interest in the Collateral and, upon request by the Agent if an Event of Default has occurred and is continuing, to register the Agent as the registered owner of any or all of the Pledged Securities.  The Issuer acknowledges that the Agent has control over the Collateral.
SECTION 2.  Collateral.  The Issuer hereby represents and warrants to, and agrees with the Pledgor and the Agent that (i) the terms of any limited liability company interests or partnership interests included in the Collateral from time to time shall expressly provide that they are securities governed by Article 8 of the Uniform Commercial Code in effect from time to time in the State of [__________], (ii) the Pledged Securities are uncertificated securities, (iii) the issuer’s jurisdiction is the State of [____________] or such other state of which the Issuer has notified the Agent and (iv) Schedule 1 contains a true and complete description of the Pledged Securities as of the date hereof.
SECTION 3.  Control.  If an Event of Default has occurred and is continuing, the Issuer hereby agrees, upon written direction from the Agent and without further consent from the Pledgor, (a) to comply with all instructions and directions of any kind originated by the Agent concerning the Collateral, to liquidate or otherwise dispose of the Collateral as and to the extent

A-1

directed by the Agent and to pay over to the Agent all proceeds without any set-off or deduction, and (b) except as otherwise directed by the Agent, not to comply with the instructions or directions of any kind originated by the Pledgor or any other person.
SECTION 4.  Other Agreements.  In the event of any conflict between the provisions of this Control Agreement and any other agreement governing the Pledged Securities or the Collateral, the provisions of this Control Agreement shall control.
SECTION 5.  Protection of Issuer.  The Issuer may rely and shall be protected in acting upon any notice, instruction or other communication that it reasonably believes to be genuine and authorized.
SECTION 6.  Termination.  This Control Agreement shall terminate automatically upon receipt by the Issuer of written notice executed by the Agent that (i)  the Discharge of the Secured Obligations has occurred, (ii) all of the Collateral has been released or (iii) the Pledged Securities cease to be Uncertificated Securities, whichever is sooner, and the Issuer shall thereafter be relieved of all duties and obligations hereunder.
SECTION 7.  Notices.  All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by telecopy), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered, or three (3) days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when received, to the Pledgor’s and the Agent’s addresses as set forth in the Pledge Agreement, and to the Issuer’s address as set forth below, or to such other address as any party may give to the others in writing for such purpose:
[Name of Issuer]
[Address of Issuer]
Attention:___________________
Telephone: (     )      -__________
Telecopy:  (     )      -___________    

SECTION 8.  Amendments in Writing.  None of the terms or provisions of this Control Agreement may be waived, amended, supplemented or otherwise modified except by a written instrument executed by the parties hereto.
SECTION 9.  Entire Agreement.  This Control Agreement and the Pledge Agreement constitute the entire agreement and supersede all other prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof.
SECTION 10.  Execution in Counterparts.  This Control Agreement may be executed in any number of counterparts by one or more parties to this Control Agreement and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed signature page of this Control Agreement by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart hereof.

A-2

SECTION 11.  Successors and Assigns.  This Control Agreement shall be binding upon the successors and assigns of each of the parties hereto and shall inure to the benefit of the parties hereto and their respective successors and assigns, provided that neither the Pledgor nor the Issuer may assign, transfer or delegate any of its rights or obligations under this Control Agreement, except as expressly contemplated by the Credit Agreement, without the prior written consent of the Agent and any such assignment, transfer or delegation without such consent shall be null and void.
SECTION 12.  Severability.  Any provision of this Control Agreement which is prohibited or unenforceable in any jurisdiction with respect to the Pledgor and Issuer shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof with respect to the Pledgor and Issuer, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.
SECTION 13.  Section Headings.  The Section headings used in this Control Agreement are for convenience of reference only and are not to affect the construction hereof or be taken into consideration in the interpretation hereof.
SECTION 14.  Submission to Jurisdiction; Waivers.  Each party hereto hereby irrevocably and unconditionally:  
(a)    submits for itself in any legal action or proceeding relating to this Control Agreement, or for recognition and enforcement of any judgment in respect thereof, to the exclusive general jurisdiction of the courts of the State of New York sitting in New York County the Courts of the United States for the Southern District of New York, and appellate courts from any thereof;
(b)    consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same;
(c)    agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to the Pledgor at its address referred to in Section 9.2 of the Pledge Agreement or the Issuer at the address referred to in Section 7 or at such other address of which the Agent shall have been notified pursuant thereto;
(d)    agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction; and
(e)    waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section any special,

A-3

exemplary, punitive or consequential damages; provided that this waiver shall not limit the reimbursement and indemnification obligations of the Pledgor under Section 9.4(b) of the Pledge Agreement.
SECTION 15.  SECTION 15.    GOVERNING LAW AND JURISDICTION.  THIS CONTROL AGREEMENT HAS BEEN DELIVERED TO AND ACCEPTED BY THE AGENT AND WILL BE DEEMED TO BE MADE IN THE STATE OF NEW YORK.  THIS CONTROL AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
SECTION 16.  WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

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IN WITNESS WHEREOF, each of the undersigned has caused this Control Agreement to be duly executed and delivered as of the date first above written.
[NAME OF PLEDGOR]
By:____________________________________
Name:
Title:

[NAME OF AGENT], as Agent
By:___________________________________
Name:
Title:

[NAME OF ISSUER]
By:__________________________________
Name:
Title:

A-5

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