Document:

EX-10.3

 Exhibit 10.3 

COMMON STOCK OPTION AGREEMENT 
 This COMMON STOCK OPTION AGREEMENT (the “Agreement”), dated March 30, 2012 (the “Effective Date”), is by and between VICIS CAPITAL MASTER FUND, a sub-trust of
Vicis Capital Series Master Trust, a unit trust organized and existing under the laws of the Cayman Islands (“Vicis”), with a mailing address care of Vicis Capital, LLC, 445 Park Avenue, Suite 1901, New York, New York 10022, and
DEER VALLEY CORPORATION, a Florida corporation maintaining a mailing address at 3111 West Dr. MLK Blvd, Suite 100, Tampa, Florida 33607 (the “Optionee”). 

BACKGROUND INFORMATION 
 On even date herewith, Vicis and the Optionee have entered into that certain Securities Redemption and Purchase Agreement (the “Redemption Agreement”). This Common Stock Option Agreement is
being issued pursuant to the Redemption Agreement. Accordingly, the parties, in consideration of the covenants herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
agree as follows: 
 OPERATIVE PROVISIONS 
 1. Definition of Securities. The term “Option Shares” as used in this Agreement shall mean 12,310,359 shares of Deer Valley Corporation’s common stock owned by Vicis,
together with, in each case, all securities issued in substitution of or exchange for, or on account of, any such common stock, including, but not limited to, securities issued upon a conversion, stock dividend, stock split, reverse stock
split, recapitalization, reclassification, merger, consolidation, combination of shares, spinoff or otherwise. 
 2. Grant
and Vesting of Option. Vicis hereby grants to the Optionee an option (the “Option”) to purchase the Option Shares from Vicis. The Option to acquire the Option Shares shall become immediately exercisable upon the execution of
this Agreement. The Option may be exercised in whole, but not in part. 
 3. Option Purchase Price. The purchase
price for this Option is one hundred dollars ($100), and other good and valuable consideration, including consideration paid pursuant to the Redemption Agreement, the receipt and sufficiency of which are hereby acknowledged. 

4. Purchase Price Upon Exercise of Option. Upon exercise of the Option, the purchase price payable for the Option Shares
(the “Purchase Price”) shall be as follows: 
 [a] If the Option is exercised on or before
June 1, 2012, the aggregate exercise price for all the Option Shares will be $5,300,000; 
 [b] If the
Option is exercised after June 1, 2012, but on or before August 1, 2012, the aggregate exercise price for all the Option Shares will be $6,300,000; 
 [c] If the Option is exercised after August 1, 2012, but on or before December 1, 2012, the aggregate exercise price for all the Option Shares will be $6,800,000; or 

[d] If the Option is exercised after December 1, 2012, but on or before June 1, 2013, the aggregate exercise
price for all the Option Shares will be $7,300,000. 

 5. Exercise Procedure; Closing; Payment of Purchase Price.
The Optionee may exercise the Option by delivering written notice to Vicis, at any time prior to the Termination Date (as defined below), of the Optionee’s intent to exercise the Option (the “Exercise Notice”). The closing of
the sale and purchase of the Securities shall take place at a time and date mutually agreeable to Vicis and the Optionee, which shall be no later than twenty (20) days after the date that the Exercise Notice is given to Vicis (the
“Closing”), which, it being understood that there shall be no price adjustment or Termination Date (as defined below) during such twenty (20) day period. The Exercise Price is payable, in cash, in full, at the Closing. The
Closing shall occur at the offices of legal counsel for Vicis, or at such other location (which may include the waiver of any physical closing and the exchange of executed documentation by facsimile or electronic transmission or otherwise), as may
be agreed to by Vicis and the Optionee. If the parties do not mutually agree to a time and date for the Closing, the Closing shall occur at 10:00 a.m., Eastern Prevailing Time, on the twentieth (20th) day after the date that the Exercise Notice is given to Vicis.
At the Closing, (a) Vicis and the Optionee shall execute a redemption or purchase agreement in substantially similar form to the Redemption Agreement, provided, however, such redemption or purchase agreement shall provide for the
purchase of the Option Shares at the Purchase Price under the terms of this Option, (b) Vicis shall deliver to Optionee the certificates or instruments evidencing the Option Shares in negotiable form or accompanied by an executed stock power or
instrument of transfer in a form acceptable to Optionee, and (c) Optionee shall deliver to Vicis payment of the Purchase Price. 
 6. Term; Termination. The term of the Option shall be for a period that commences on the Effective Date and expires at 11:59 p.m., Eastern Prevailing Time, on June 1, 2013, unless
sooner terminated by mutual written agreement of Vicis and the Optionee (the “Termination Date”). The Option is not intended to be an “incentive stock option” within the meaning of Section 422 of the Code. 

7. Representations and Warranties of Vicis. In order to induce the Optionee to enter into this Agreement and to consummate
the transactions contemplated hereby, Vicis represents and warrants to Optionee that: 
 (a)
Authorization. Seller has duly executed and delivered this Agreement. When executed and delivered by Vicis, this Agreement will constitute the valid and binding obligation of Vicis, enforceable in accordance with its terms except as
the enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws generally affecting the rights of creditors and subject to general equity principles. 

(b) Consent. No consent, approval or authorization of or registration, qualification, designation,
declaration or filing with any governmental authority or private person or entity on the part of Vicis is required in connection with the execution and delivery of this Agreement or the consummation of any other transaction contemplated hereby.

 (c) No Contractual Violation. Neither the execution, delivery nor performance of this Agreement
by Vicis, including the consummation by Vicis of the transactions contemplated hereby, will constitute a violation of or a default under, or conflict with, any term or provision of any contract, commitment, indenture or other agreement, or of any
other private restriction of any kind, to which Vicis is a party or by which it is otherwise bound. 
 (d)
Title to Option Shares. Vicis has good and marketable title to the Option Shares free and clear of all liens, claims, encumbrances and restrictions, legal or equitable, of every kind, except for certain restrictions on transfer imposed
by federal and state securities laws. Vicis has full and unrestricted legal right, power and authority to sell, assign and transfer such Option Shares to the Optionee without obtaining the consent or approval of any other person or governmental
authority. 

  
 Page 2

 8. Representations and Warranties of the Optionee. The Optionee represents and
warrants to Vicis that: 
 (a) Authorization. Seller has duly executed and delivered this
Agreement. When executed and delivered by the Optionee, this Agreement will constitute the valid and binding obligation of the Optionee, enforceable in accordance with its terms, except as the enforcement thereof may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws generally affecting the rights of creditors and subject to general equity principles. 
 (b) Consent. No consent, approval or authorization of or registration, qualification, designation, declaration or filing with any governmental authority or private person or entity on the
part of the Optionee is required in connection with the execution and delivery of this Agreement or the consummation of any other transaction contemplated hereby, except as shall have been duly taken or effected prior to the Closing. 

(c) No Contractual Violation. Neither the execution, delivery nor performance of this Agreement by the
Optionee, including the consummation by the Optionee of the transactions contemplated hereby, will constitute a violation of or a default under, or conflict with, any term or provision of any contract, commitment, indenture or other agreement, or of
any other private restriction of any kind, to which the Optionee is a party or by which it is otherwise bound. 
 9.
Covenants of Vicis. Vicis covenants that, as long as this Option remains outstanding, Vicis shall not sell, convey, transfer, exchange or otherwise dispose of any of the Option Shares or any interest therein, or create, incur, or permit
to exist any pledge, mortgage, lien, charge, encumbrance or any security interest whatsoever with respect to any of the Option Shares or the products and proceeds thereof, unless all of the Option Shares are sold, conveyed, transferred,
exchanged or otherwised disposed of in a single transaction, and such transferee or pledgee has agreed in writing to be bound by this Option. Upon request of Optionee and subject to this Agreement, place a legend on the back of the certificates for
the Securities referencing this Option, such legend being in form and substance reasonably acceptable to Optionee. 
 10.
No Rights as a Shareholder. Nothing in this Agreement shall convey upon the Optionee any rights of a shareholder of the Company prior to the exercise of the Option and the transfer of the Option Shares pursuant to the terms and conditions
set forth herein. 
 11. Investment Purpose. This Agreement is executed on the express condition that the purchase
of the Option Shares shall be made for investment purposes only and not with a view to their resale or further distribution unless (a) such Option Shares, at the time of their issuance and delivery, are registered under the Securities Act of
1933, as amended (the “Act”), or (b) after the date of such issuance the resale of such Option Shares is determined by counsel for the Company to be exempt from the registration requirements of the Act and of any other
applicable law, regulation or ruling. 
 12. Assignability. Each of the provisions and agreements herein contained
shall be binding upon and enure to the benefit of the respective parties hereto, as well as their successors and transferees, as applicable, but no statement contained herein is intended to confer upon any person or entity, other than the parties
hereto and their successors in interest and permitted assignees, any rights or remedies under or by reason of this Agreement. The Optionee may assign this Agreement at any time prior to the Termination Date upon prior written notice to Vicis

  
 Page 3

 13. Miscellaneous Provisions. All notices required to be given pursuant to
this Agreement shall be in writing and shall be hand delivered or sent via overnight delivery services to the applicable address set forth in the preamble of this Agreement, or to such other address as any such party may have designated by like
notice forwarded to the other party hereto. This Agreement, and any other document referenced herein, constitute the entire understanding of the parties hereto with respect to the subject matter hereof, and no amendment, modification or alteration
of the terms hereof shall be binding unless the same be in writing, dated subsequent to the date hereof and duly approved and executed by each of the parties hereto. Vicis hereby covenants and agrees with Optionee that at any time and from time to
time it will promptly execute and deliver to Optionee such further assurances, instruments and documents and take such further action as Optionee may reasonably request in order to carry out the full intent and purpose of this Agreement. This
Agreement, and the application or interpretation thereof, shall be governed exclusively by its terms and by the laws of the State of New York. Venue for all purposes shall be deemed to lie within New York, New York. The parties agree that,
irrespective of any wording that might be construed to be in conflict with this paragraph, this Agreement is one for performance in New York. The parties to this Agreement agree that they waive any objection, constitutional, statutory or otherwise,
to a New York court’s taking jurisdiction of any dispute between them. By entering into this Agreement, the parties, and each of them understand that they might be called upon to answer a claim asserted in a New York court. If a legal action is
initiated by any party to this Agreement against another, arising out of or relating to the alleged performance or non-performance of any right or obligation established hereunder, or any dispute concerning the same, any and all fees, costs and
expenses reasonably incurred by each successful party or its legal counsel in investigating, preparing for, prosecuting, defending against, or providing evidence, producing documents or taking any other action in respect of, such action shall be the
joint and several obligation of and shall be paid or reimbursed by the unsuccessful party or parties. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY IN ANY SUCH LEGAL PROCEEDING. All
representations and warranties contained in this Agreement shall survive the closing and the consummation of the transactions contemplated hereby. This Agreement may be executed in any one or more counterparts, all of which shall be considered one
and the same agreement. The headings in this Agreement are inserted for convenience only and shall not constitute a part of this Agreement. 
 IN WITNESS WHEREOF, this Agreement has been executed as of the date first above written. 
  

			
	VICIS:
	
	VICIS CAPITAL MASTER FUND
		
	By:	 	Vicis Capital, LLC
		
	By:	 	         s/ Shad Stastney

		 	Shadron L. Stastney, Manager
	
	OPTIONEE:
	
	DEER VALLEY CORPORATION
		
	By:	 	         s/ Charlie Masters

		 	Charles G. Masters, President & Chief Executive Officer

  
 Page 4Executive Service Agreement entered into on April 1, 2012

 Exhibit 10.1 
 Executive Service Agreement 
 Peabody Energy Australia Coal Pty Limited 

Eric Ford 

 Executive Service Agreement 

 

							
	 Details
	  	 	4	  
		
	 Agreed terms
	  	 	5	  
			
	1.	 	 Defined terms & interpretation
	  	 	5	  
			
	1.1	 	 Defined terms
	  	 	5	  
	1.2	 	 Interpretation
	  	 	6	  
			
	2.	 	 Employer
	  	 	6	  
			
	3.	 	 Commencement Date and Termination of PEC Agreement
	  	 	6	  
			
	4.	 	 Term
	  	 	7	  
			
	5.	 	 Reporting
	  	 	7	  
			
	6.	 	 External Activities
	  	 	7	  
			
	7.	 	 Application of Australian minimum standards of employment
	  	 	7	  
			
	8.	 	 Continuity of service
	  	 	7	  
			
	9.	 	 Principal place of work
	  	 	8	  
			
	10.	 	 Remuneration
	  	 	8	  
			
	10.1	 	 Base Salary
	  	 	8	  
	10.2	 	 Superannuation
	  	 	8	  
	10.3	 	 Annual Bonus
	  	 	8	  
	10.4	 	 Long-Term Incentive Plan:
	  	 	9	  
			
	11.	 	 Intellectual Property Rights
	  	 	9	  
			
	12.	 	 Privacy Statement
	  	 	9	  
			
	13.	 	 Termination of Employment
	  	 	10	  
			
	13.1	 	 Notice of Termination
	  	 	10	  
	13.2	 	 Payment of Accrued Obligations
	  	 	10	  
	13.3	 	 Additional payment of benefits upon Retirement
	  	 	10	  
	13.4	 	 Additional payment of Benefits in the case of Termination by the Company without Cause or Termination by you for Good
Reason
	  	 	11	  
	13.5	 	 Voluntary Termination by You and Termination for Cause
	  	 	12	  
	13.6	 	 Termination for Disability
	  	 	12	  
	13.7	 	 Benefits payable upon Death
	  	 	13	  
	13.8	 	 No Further Notice or Compensation or Damages
	  	 	13	  
	13.9	 	 Your Duty to Provide Materials
	  	 	13	  
			
	14.	 	 Expenses Reimbursement
	  	 	13	  
			
	15.	 	 Deduction from Employee’s Payments
	  	 	13	  
			
	16.	 	 Tax Return Preparation
	  	 	14	  
			
	17.	 	 Nondisclosure of Confidential Information; Non-Competition; Non-Solicitation
	  	 	14	  
			
	17.1	 	 Definition of Confidential Information
	  	 	14	  
	17.2	 	 Requirement of nondisclosure
	  	 	14	  

  
 Executive
Service Agreement | page 2 

							
	17.3	 	 Consideration for nondisclosure; Non-competition; Non-solicitation
	  	 	14	  
	17.4	 	 An entity in competition with the Company
	  	 	14	  
	17.5	 	 Agreement of Executive
	  	 	15	  
			
	18.	 	 Dispute Resolution
	  	 	15	  
			
	19.	 	 Governing Law
	  	 	16	  
			
	20.	 	 Notices
	  	 	16	  
			
	21.	 	 Severability
	  	 	16	  
			
	22.	 	 Assignment
	  	 	16	  
			
	23.	 	 Amendment
	  	 	17	  
			
	24.	 	 Beneficiaries; References
	  	 	17	  
			
	25.	 	 Effect on Prior Agreements
	  	 	17	  
			
	26.	 	 Withholding
	  	 	17	  
			
	27.	 	 Survival
	  	 	17	  
			
	28.	 	 Counterparts
	  	 	17	  
		
	Appendix A – Benefits and entitlements	  	 	18	  
			
	1.	 	 Annual Leave
	  	 	18	  
			
	2.	 	 Long Service Leave
	  	 	18	  
			
	3.	 	 Personal/Carer’s Leave
	  	 	18	  
			
	4.	 	 Novated Vehicle
	  	 	18	  
			
	5.	 	 Company Issued Equipment
	  	 	18	  
			
	6.	 	 Compassionate Leave
	  	 	19	  
			
	7.	 	 Jury Service Leave
	  	 	19	  
			
	8.	 	 Parental Leave
	  	 	19	  
			
	9.	 	 Public Holidays
	  	 	19	  
			
	10.	 	 Employee Benefit Programs, Plans and Practices; Perquisites
	  	 	19	  
			
	11.	 	 Medical
	  	 	19	  
			
	12.	 	 Life Insurance
	  	 	19	  
		
	The Company will endeavour to provide you with life insurance coverage procured in Australia in the amount of $1,000,000.	  	 	19	  
			
	13.	 	 Working Arrangements
	  	 	20	  
			
	14.	 	 Safety
	  	 	20	  
			
	15.	 	 Consent to Drug and Alcohol Testing
	  	 	20	  
			
	16.	 	 Performance Reviews
	  	 	20	  
		
	Signing page	  	 	21	  

  
 Executive
Service Agreement | page 3 

 Details 
  

			
	 Date
	  	1 April 2012

 Parties 
  

			
	 Name
	  	Peabody Energy Australia Coal Pty Limited
	 ACN
	  	001 401 663
	 Short form name
	  	the Company

  

			
	 Name
	  	Eric Ford
	 Short form name
	  	You

 Background 
  

	A	You are currently employed by Peabody Energy Corporation (PEC) as Executive Vice President and Chief Operating Officer pursuant to a Restated Employment
Agreement dated 31 December 2008. 

  

	B	You have agreed to relocate to Australia and to be employed by the Company in the role of President—Australia and Managing Director. 

 

	C	Because you are relocating within the Peabody Energy Group you will have continuity of service for all purposes (including entitlements you have under the Australian
National Employment Standards), on the basis of your entire history within the Peabody Energy Group. Furthermore your relocation will not trigger any payment of benefits under that certain Restated Employment Agreement between you and PEC dated
31 December 2008. 

  

	D	The Company acknowledges you will continue to serve as an officer of PEC. 

  
 Executive
Service Agreement | page 4 

 Agreed terms 
  

	1.	Defined terms & interpretation 

  

	1.1	Defined terms 

 In this
agreement: 
 Cause means: 
  

	 	(a)	any material breach by you of the terms of this agreement; 

  

	 	(b)	any wilful fraud or dishonesty by you involving the property or business of the Peabody Energy Group; 

 

	 	(c)	a deliberate or wilful refusal or failure by you to comply with any major corporate policy of the Peabody Energy Group which is communicated to you in writing; or

  

	 	(d)	your conviction of any crime or offence if such conviction results in your imprisonment. 

Good Reason means: 
  

	 	(a)	a reduction by the Company in your Base Salary from that in effect immediately prior to the reduction (in which event the Severance Payment shall be calculated based on
your Base Salary in effect immediately prior to any such reduction); 

  

	 	(b)	a material reduction in your target Bonus opportunity, maximum Bonus opportunity or Long-Term Incentive Award grant date value (including the maximum potential payout
level for Performance Units to be determined in accordance with the performance matrix set forth in the Performance Units Agreement) used to establish Bonus or Long-Term Incentive Awards, respectively, from time to time, from those in effect
immediately prior to any such reduction (in which event any portion of your entitlement to a severance benefit that relates to Bonus or Long-Term Incentive Awards shall be calculated based on the Bonus opportunity or Long-Term Incentive Award grant
date value, as applicable, in effect immediately prior to any such reduction); 

  

	 	(c)	a material reduction in the aggregate program of employee benefits and perquisites to which you are entitled (other than a reduction that generally affects all
executives); 

  

	 	(d)	relocation of your primary office by more than 80 kilometres from the location of your primary office in Brisbane, Australia; 

 

	 	(e)	any material diminution or material adverse change in your duties, responsibilities or reporting relationships; 

 

	 	(f)	a breach by the Company of a material provision of this agreement; or 

  

	 	(g)	a failure on the part of the Company to obtain a written assumption of its obligations under this agreement by a successor owner of substantially all of the
Company’s assets in connection with a merger, consolidation, asset sale, liquidation, combination or other similar transaction. 

 Peabody Energy Group means PEC and its Related Bodies Corporate. 

Restated Employment Agreement means your Restated Employment Agreement with PEC dated 31 December 2008. 

Related Body Corporate and Associated Entity have the meanings given to those terms by the Corporations Act 2001
(Cth). 

  
 Executive
Service Agreement | page 5 

 Retirement means your resignation in circumstances where you have made a decision to
retire substantially from the Peabody Energy Group Workforce, and you have advised the Company in writing of that intention at least 30 days in advance of the effective retirement date. 

Termination Date means the date your employment ends in any of the circumstances contemplated by clause 13 of this agreement.

  

	1.2	Interpretation 

 In this
agreement, unless the contrary intention appears: 
  

	 	(a)	if a word or phrase is defined, its other grammatical forms have a corresponding meaning; 

 

	 	(b)	a reference to includes or including must be construed without limitation; 

 

	 	(c)	a reference to a person, corporation, trust, partnership, unincorporated body or other entity includes any of them; 

 

	 	(d)	a reference to legislation or to a provision of legislation includes a modification or re-enactment of it, a legislative provision substituted for it and a regulation
or statutory instrument issued under it; 

  

	 	(e)	a reference to conduct includes, without limitation, an omission, statement or undertaking, whether or not in writing; 

 

	 	(f)	a reference to any thing is a reference to the whole or any part of that thing; 

 

	 	(g)	the singular includes the plural and vice versa; 

  

	 	(h)	a reference to a clause or schedule is a reference to a clause or schedule to this agreement and a reference to this agreement includes any schedules;

  

	 	(i)	a reference to an instrument, a document or agreement, including this agreement, includes a reference to that instrument, document or agreement as novated, altered or
replaced from time to time; 

  

	 	(j)	a reference to $ is a reference to Australian currency; 

  

	 	(k)	a reference to writing includes typewriting, printing, photocopying and any other method of representing words, figures or symbols in a permanent visible form; and

  

	 	(l)	no provision of this agreement will be construed adversely against a party because that party was responsible for drafting the provision. 

 

	2.	Employer 

 You will be employed
by the Company as President – Australia and Managing Director. 
  

	3.	Commencement Date and Termination of PEC Agreement 

 The commencement date of this agreement will be 1 April 2012. Simultaneously with the commencement of your employment with the Company, your Restated Employment Agreement and employment with PEC will
terminate. You acknowledge and agree that because you are relocating and continuing employment within the Peabody Energy Group that the termination of your Restated Employment Agreement and your employment with PEC will not entitle you to any
payment of benefits under the Restated Employment Agreement. 

  
 Executive
Service Agreement | page 6 

	4.	Term 

  

	 	(a)	Unless terminated in accordance with this agreement, your employment will be for a term of two years commencing on the commencement date (Term).

  

	 	(b)	On each day of the Term, the Term will be extended by one additional day unless your employment has been terminated in accordance with this agreement.

  

	5.	Reporting 

  

	 	(a)	You will report to the Chairman and CEO of PEC in relation to all aspects of your role. 

 

	 	(b)	The Chairman and CEO of PEC may give you direction in relation to any aspect of your role. 

 

	 	(c)	You are expected to carry out the requirements of your role competently, diligently and in the best interests of the Peabody Energy Group and to devote your full
business time and efforts to the performance of services, duties and responsibilities in connection with your role. 

  

	6.	External Activities 

  

	 	(a)	As long as you comply with PEC’s Code of Business Conduct and Ethics and other policies, you may engage in external activities which are not inconsistent with your
employment. This may include charitable work, community affairs, the delivering of lectures, fulfilling speaking engagements or teaching at educational institutions. You may also maintain the management of investments made by you or your immediate
family (provided that you are not substantially involved with the management or operation of the investment entity and provided also that you do not have investment in a publicly traded equity security of more than 5% of the equity of the entity
without the prior written approval of the Chairman and CEO of PEC). 

  

	 	(b)	With the prior written approval of the Chairman and CEO of PEC, you may serve as a member of a Board of Directors or Trustee of any corporation or entity.

  

	 	(c)	Approvals required from the Chairman and CEO of PEC pursuant to this clause must not be unreasonably withheld. 

 

	 	(d)	In all cases, your external activities must not materially interfere with the performance of your duties under this agreement. 

 

	7.	Application of Australian minimum standards of employment 

 As an Australian employee, you will be entitled to the minimum employment benefits applicable to your position under the Fair Work Act 2009. This includes leave entitlements and minimum notice and
severance entitlements. 
 More detail about the standard benefits applicable to your position is set out in Appendix A, which
forms part of this Agreement. 
  

	8.	Continuity of service 

 (a) You
will have continuity of service for all purposes (including entitlements you have under the Australian National Employment Standards), on the basis of your entire history within the Peabody Energy Group. 

  
 Executive
Service Agreement | page 7 

	 	(b)	Your relocation to Australia and employment with the Company does not and shall not trigger an obligation for PEC to provide you with a notice of termination or to
provide you with any of the termination benefits in your Restated Employment Agreement. 

  

	9.	Principal place of work 

  

	 	(a)	Your principal place of work will be in the Company’s offices in Brisbane. You will be required to relocate your residence to Brisbane. The Company will be
responsible for your reasonable relocation costs. 

  

	 	(b)	You acknowledge and agree that your relocation to Brisbane does not trigger the operation of clause 6.2(d)(iv) of your Restated Employment Agreement.

  

	 	(c)	You will be required to undertake interstate and international travel as required to carry out your duties. 

10. Remuneration 
  

	10.1	Base Salary 

  

	 	(a)	Your Base Salary is A$820,000 per annum. 

  

	 	(b)	Your salary will be paid in equal monthly instalments into your nominated bank account on approximately the 15th day of each month. 

 

	 	(c)	Your salary has been structured to include all factors associated with this appointment, including but not limited to hours of work and other allowances and conditions.

  

	 	(d)	During your employment, your Base Salary will be reviewed in good faith, at least annually, in accordance with the Company’s customary procedures and practices
regarding the salaries of senior executives, and your Base Salary may increase following such review. 

  

	 	(e)	“Base Salary” for all purposes in this agreement is a reference to the Base Salary in effect at the relevant time. 

 

	10.2	Superannuation 

  

	 	(a)	The Company will make monthly contributions at the rate of 9% of your Base Salary into a complying superannuation fund for your benefit. This percentage includes any
statutory amounts payable. 

  

	 	(b)	You may elect in writing to reduce your superannuation contribution and receive the amount of the reduction as additional cash compensation, as long as at all times you
continue to receive at least the minimum contribution required to avoid the imposition of a superannuation guarantee charge under the Superannuation Guarantee Administration Act 1992. Normal PAYG tax will apply to additional cash compensation
received in this way. The additional cash compensation will not be regarded as part of your Base Salary for the purpose of your Bonus or LTI, or, unless required by law, any other purpose. 

 

	10.3	Annual Bonus 

  

	 	(a)	You shall be eligible to receive an annual cash bonus (Bonus) in accordance with a program developed by PEC’s Board of Directors, based on achievement of
performance targets established by the Compensation Committee and/or the Chairman and CEO of PEC as soon as practicable at or after the beginning of the calendar year to which the performance targets relate. Your target bonus opportunity for the
2012 fiscal year is 80% of your Base Salary. Your maximum Bonus opportunity for the 2012 fiscal year is 160%. 

  
 Executive
Service Agreement | page 8 

	 	(b)	Your bonus opportunity will be reviewed in good faith from time to time in accordance with the Company’s customary procedures and practices regarding the bonus
opportunities of senior executives, and may be adjusted following such review. 

  

	 	(c)	A Bonus award for any calendar year shall be payable at the time bonuses are paid to executive officers for such calendar year in accordance with the Company’s
policies and practices, but in no event later than March 15 of the calendar year following the calendar year in which the Bonus is earned. 

  

	 	(d)	“Bonus” and “Bonus opportunity” for all purposes in this agreement is a reference to the bonus and bonus opportunity at the relevant time.

 10.4 Long-Term Incentive Plan: 
  

	 	(a)	You will be eligible for participation in our Long-Term Incentive Plan (LTI Plan). The grant date value for your Long-Term Incentive Awards for the 2012 fiscal year is
275% of your Base Salary, which at the Company’s discretion may be delivered in Performance Units, other equity vehicles or some combination thereof. 

  

	 	(b)	Each annual grant will be governed by a separate grant agreement. In all cases the award of shares is subject to approval of the CEO and Chairman of PEC under a scheme
approved by the Board of Directors of PEC, so the arrangements are subject to review. 

  

	 	(c)	The grant date value of your Long-Term Incentive Awards will be reviewed under this agreement in good faith from time to time in accordance with the Company’s
customary procedures and practices regarding the long-term incentive awards of senior executives, and may be adjusted following such review. 

  

	 	(d)	All existing grants that you have under the LTI Plan as of the date of this agreement referable to your prior employment with PEC shall remain in full force and effect
in accordance with their terms and shall not be affected by this agreement. 

  

	 	(e)	The LTI Plan sets out additional terms that are applicable to your participation in the LTI Plan. The LTI Plan is subject to variation. 

 

	 	(f)	“Long-Term Incentive Award” and “LTI Plan” for all purposes in this agreement is a reference to your grant date Long-Term Incentive Award value and
the LTI Plan in effect at the relevant date. 

 11. Intellectual Property Rights 

 

	 	(a)	You agree that upon making any work, invention, discovery, or creating any copyright or intellectual property within the scope of your role, the rights associated with
or comprised in such an invention, discovery or intellectual property are the property of the Company. 

  

	 	(b)	You will not, during your employment under this agreement or at any time after your employment is terminated, convey either directly or indirectly to any other person,
firm or corporation without previous written consent of the Company any information relating to any work invention, discovery or intellectual property of which you become possessed in the course of your employment. 

12. Privacy Statement 
  

	 	(a)	 Certain personal information is collected by the Company about you that is necessary for the Company to effectively manage your employment. This
information may be disclosed to third parties where reasonably required for reasons directly related to your employment. 

  
 Executive
Service Agreement | page 9 

 
All your personal information may be shared within the Peabody Energy Group where the use is reasonably related to your employment. 

 

	 	(b)	The information that you provide will not be disclosed to any other organisations or individuals unless required or authorised by law to do so, or unless you consent to
this disclosure. 

  

	 	(c)	During the course of your employment, photographs of you may be taken and used for advertising/promotional purposes. 

13. Termination of Employment 

13.1 Notice of Termination 

Except as otherwise specifically provided in this agreement, your employment may be terminated by you or by the Company for any reason at
any time during the Term by written notice to the other party of at least thirty (30) days in advance of the date of termination of your employment. If the Company terminates your employment by giving written notice, it may elect to pay you in
lieu of part or all of the notice period, in which case, unless otherwise agreed, the Termination Date will be the date that payment is made. The Company may also require you to take paid leave or to relieve you of some or all of your
responsibilities during all or part of your notice period. 
 13.2 Payment of Accrued Obligations 

If your employment is terminated for any reason during the Employment Term, then at a minimum the Company shall pay to you the following
(Accrued Obligations): 
 (a) within five (5) business days following the Termination Date, a lump sum that includes:

  

	 	(i)	your Base Salary payable up to the Termination Date but not yet paid to you. 

 

	 	(ii)	payment in respect of accrued but unused annual leave and long service leave entitlements as at the Termination Date. 

 

	 	(iii)	any benefits accrued under any of the Company’s employee benefit programs, plans and practices (other than LTI or Bonus Entitlements) on or prior to the
Termination Date. 

  

	 	(b)	within 5 business days of an appropriate claim from you, any business expenses properly incurred by you and properly submitted for reimbursement before or within 90
days after the Termination Date. 

  

	 	(c)	on the first business day following the day which is 6 months from the Termination Date an amount of US$800,000 as a an Additional Lump Sum payment already accrued to
you for services previously performed in the United States because you have remained employed within the Peabody Energy Group until age 55. 

 13.3 Additional payment of benefits upon Retirement 
  

	 	(a)	If your employment terminates due to your Retirement then, in addition to the Accrued Obligations you will be entitled to payment of the following (Bonus
Entitlements): 

  

	 	(i)	if the employment termination date precedes the payment date for the Bonus earned during the calendar year immediately prior to the calendar year of employment
termination, the Bonus you earned during the calendar year immediately prior to the calendar year of employment termination (Bonus); and 

  
 Executive
Service Agreement | page 10 

	 	(ii)	a prorated bonus for the calendar year of termination of your employment, calculated as the Bonus you would have received in such year based on actual performance
multiplied by a fraction, the numerator of which is the number of business days that you were employed during the calendar year of termination and the denominator of which is the total number of business days during the calendar year of termination
(Prorated Bonus). 

  

	 	(b)	Any Bonus Entitlements due under sub-paragraphs 13.3 (a)(i) or (ii) shall be payable when annual bonuses are paid to other senior executives of the Company, but in
no event later than March 15 of the calendar year following the calendar year in which the bonus is earned. 

  

	13.4	Additional payment of Benefits in the case of Termination by the Company without Cause or Termination by you for Good Reason 

 

	 	(a)	Any amounts due to you in connection with a termination of employment pursuant to this clause shall be computed without giving effect to any changes that give rise to
Good Reason. 

  

	 	(b)	You will be deemed to have terminated your employment for Good Reason on the Termination Date only in the following circumstances: 

 

	 	(i)	circumstances have arisen which amount to a “Good Reason” within the meaning of the definition in Clause 1.1 (Good Reason Circumstances); and

  

	 	(ii)	within 90 days of you becoming aware of Good Reason Circumstances, you have provided written notice to the Company of the following: 

 

	 	(A)	a description of the Good Reason Circumstances; 

  

	 	(B)	a statement that, unless Company cures the Good Reason Circumstances within 30 days of the date the notice is given, your employment with Company will cease on the date
which is 45 days after the notice is given (Termination Date); and 

  

	 	(iii)	the company fails within the period of 30 days of receiving the notice to cure the Good Reason Circumstances. 

 

	 	(c)	Your right to give a notice pursuant to clause13.4(b)(ii) will be deemed to have been waived in relation to particular Good Reason Circumstances if:

  

	 	(i)	you agree to accept the Good Reason Circumstances; or 

  

	 	(ii)	you fail to give a notice under clause 13.4(b)(ii)within 90 days of becoming aware of the Good Reason Circumstances. 

 

	 	(d)	If your employment is terminated by you for Good Reason (as defined in Clause 1.1) or by the Company for a reason other than Cause (as defined in this agreement) or
Disability (as defined in this agreement) or Death, the Company shall pay you an amount equal to the total of: 

  

	 	(i)	the Accrued Obligations; 

  

	 	(ii)	a severance payment (Severance Payment) being the sum of the following: 

 

	 	(A)	an amount equivalent to two (2) times your Base Salary; 

  

	 	(B)	an additional amount equal to two (2) times the annual average of the actual Bonus awards paid to you by the Company or by a related Company (including PEC) for
the three (3) calendar years preceding the date of the termination; and 

  
 Executive
Service Agreement | page 11 

	 	(C)	an amount equal to two (2) times nine percent (9%) of your Base Salary (to compensate you for superannuation contributions you otherwise might have received);
and 

  

	 	(iii)	your Bonus Entitlements. 

  

	 	(e)	These benefits will be paid to you as follows: 

  

	 	(i)	as to the Accrued Benefits – within 5 business days of the Termination Date; 

 

	 	(ii)	as to the Severance Payment, as follows: 

  

	 	(A)	one half of the Severance Payment will be paid in a lump sum on the earlier to occur of your death or the first business day immediately following the date which is 6
months from the Termination Date; 

  

	 	(B)	the balance will be paid in 6 equal monthly payments beginning on the 1st day of the month next following the initial payment; 

 

	 	(iii)	as to your Bonus Entitlements, on the date when such bonuses are paid to other senior executives of the Company, but in no event later than March 15 of the
calendar year following the calendar year in which the bonus is earned; 

  

	 	(iv)	in relation to all payments, with the deduction of applicable tax. 

  

	 	(f)	Notwithstanding the foregoing, if at the time you breach any provision of clause 18 hereof (whether or not the breached obligation is enforced or enforceable at law),
the remaining balances of the Severance Payment and your Prorated Bonus shall be forfeited. 

 13.5 Voluntary Termination by
You and Termination for Cause 
  

	 	(a)	If your employment is terminated: 

  

	 	(i)	by the Company for Cause, as defined in this agreement, in which event no advance written notice is required; or 

 

	 	(ii)	by you for a reason other than Good Reason, Retirement, Disability or Death, 

the Company shall pay to you only your Accrued Obligations. 

 

	 	(b)	Your employment may be terminated for Cause on the Termination Date only in the following circumstance: 

 

	 	(i)	Circumstances giving rise to Cause (Cause Circumstances) have arisen and have come to the attention of the Chairman and CEO of PEC; 

 

	 	(ii)	the Company has provided you with written notice of the Cause Circumstances and has advised you, that unless the circumstances are cured within 10 days of the date the
notice is given (Termination Date), your employment is terminated for Cause; and 

  

	 	(iii)	you fail, by the Termination Date, to cure the Cause Circumstances. 

  

	 	(c)	For the avoidance of doubt, a termination of employment for a failure to meet performance goals in the absence of Cause is deemed to be a termination without Cause for
the purpose of this agreement. 

 13.6 Termination for Disability 

 

	 	(a)	The term “Disability,” for purposes of this agreement, shall mean your absence from the full-time performance of your duties as a result of your incapacity
due to physical or mental illness that lasts, or is reasonably expected to last, for at least six (6) months. 

  
 Executive
Service Agreement | page 12 

	 	(b)	In the event of your Disability during your employment, the Company may terminate your employment upon written notice to you (or your personal representative, if
applicable) effective upon the date of receipt thereof (Termination Date). 

  

	 	(c)	If your employment is terminated for Disability, the Company shall pay you: 

 

	 	(i)	the Accrued Obligations; and 

  

	 	(ii)	your Bonus Entitlements, 

 with
such Bonus Entitlements to be paid when annual bonuses are paid to other senior executives of the Company, but in no event later than March 15 of the calendar year following the calendar year in which your employment is terminated. 

13.7 Benefits payable upon Death 
 In the event of your death during your employment or at any time thereafter while payments are still owing to you under the terms of this agreement, the Company shall pay to your beneficiary(ies) (to the
extent lawfully and effectively designated by you) or your estate (to the extent that no such beneficiary has been lawfully and effectively designated) to the extent they remain unpaid at the date of your Death: 

 

	 	(a)	your Accrued Obligations; 

  

	 	(b)	your Bonus Entitlements; 

  

	 	(c)	any other benefits (including a Severance Payment if you have accrued an entitlement to it) to which you are entitled at the time of your death,

 with such Bonus Entitlements to be paid when annual bonuses are paid to other senior executives of the Company,
but in no event later than March 15 of the calendar year following the calendar year in which your employment is terminated. 
 13.8 No
Further Notice or Compensation or Damages 
 You will not be entitled to any further notice, compensation or damages upon
termination of employment under this agreement, other than amounts specified in this agreement. 
  

	13.9	Your Duty to Provide Materials 

 Upon the termination of your employment for any reason, you or your estate shall surrender to the Company all correspondence, letters, files, contracts, mailing lists, customer lists, advertising
materials, ledgers, supplies, equipment, checks, and all other materials and records of any kind that are the property of the Company or any of its Related Bodies Corporate or Associated Entities, that may be in your possession or under your
control, including, without limitation, any “soft” copies or computerized or electronic versions thereof. 
  

	14.	Expenses Reimbursement 

You will be entitled to reimbursement of reasonable costs incurred in regard to work-related expenses, subject to the provision of
suitable supporting evidence. 
  

	15.	Deduction from Employee’s Payments 

 The Company, after advising you, may make deductions from your pay or leave entitlement in the event of: 
  

	 	(a)	overpayment by the Company, or 

  

	 	(b)	any unauthorised absence or default, or 

  
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Service Agreement | page 13 

	 	(c)	you owing any debt to the Company, including any unauthorised expenditure incurred by yourself on behalf of the Company, or 

 

	 	(d)	agreement between the Company and yourself over specific deduction(s). 

 16. Tax Return Preparation 
 The Company will cover the expense for the
preparation of your annual income tax return during the Term, subject to prevailing Company policy regarding documentation of such expense, provided that reimbursement of such expenses shall be made promptly and in no event later than
December 31 of the year following the year in which such expenses were incurred, the amount of such expenses eligible for reimbursement in any year shall not affect the amount of such expenses eligible for reimbursement in any other year and no
such right to reimbursement shall be subject to liquidation or exchange for another benefit. 
  

	17.	Nondisclosure of Confidential Information; Non-Competition; Non-Solicitation 

 

	17.1	Definition of Confidential Information 

 For the purpose of this agreement, Confidential Information means any information of which you become aware or which comes into your possession or control in the course of carrying out your duties under
this agreement or in the course of any other activity or role which you undertake as an executive or officer within the Peabody Energy Group which is confidential to the Peabody Energy Group or any member of it, including information which relates
to the business affairs of members of the Peabody Energy Group, or their customers, suppliers, joint venture partners or business associates anywhere in the world. 
  

	17.2	Requirement of nondisclosure 

 During the Term and thereafter, you will not, directly or indirectly, use for yourself or use for, or disclose to, any party other than the Company (other than in the ordinary course of your duties for
the benefit of the Company or any Related Body Corporate or Associated Entity), any Confidential Information. At the termination of your employment or at any other time the Company may request, you shall promptly deliver to the Company all
memoranda, notes, records, plats, sketches, plans or other documents (including, without limitation, any “soft” copies or computerized or electronic versions thereof) made by, compiled by, delivered to, or otherwise acquired by you which
are the property of a member of the Peabody Energy Group or which contain or refer to Confidential Information. 
  

	17.3	Consideration for nondisclosure; Non-competition; Non-solicitation 

 In consideration of your benefits and entitlements under this agreement, you agree that during the Term and (i) for a period of one (1) year thereafter, without the prior written consent of the
Chairman and CEO of PEC, you will not, directly or indirectly, as principal, manager, agent, consultant, officer, stockholder, partner, investor, lender or employee or in any other capacity, carry on, be engaged in or have any financial interest in,
any entity which is in competition with the business of Peabody Energy Group and (ii) for a period of two (2) years thereafter, without the prior written consent of the Chairman and CEO of PEC, you shall not, on your own behalf or on
behalf of any person, firm or company, directly or indirectly, solicit or offer employment to any person who is or has been employed by the Company or its Related Bodies Corporate at any time during the twelve (12) months immediately preceding
such solicitation. 
  

	17.4	An entity in competition with the Company 

 For purposes of this clause, an entity shall be deemed to be in competition with the Peabody Energy Group if it is principally involved in the winning, exploration, purchase, sale or other

  
 Executive
Service Agreement | page 14 

 
dealing in any commodity or property or the rendering of any service purchased, sold, dealt in or rendered by the Peabody Energy Group as a part of the business of the Peabody Energy Group within
the same geographic area in which the Peabody Energy Group carries out such activity. Notwithstanding this clause, nothing herein shall be construed so as to preclude you from investing in any publicly or privately held company, provided your
beneficial ownership of any class of securities of an entity in competition with the Company does not exceed five percent (5%) (or such higher percentage approved in writing by the Chairman and CEO) of the outstanding securities of such class.

  

	17.5	Agreement of Executive 

You agree that the covenant not to compete and the covenant not to solicit are reasonable under the circumstances and will not
unreasonably interfere with your ability to earn a living or otherwise to meet your financial obligations. You and the Company agree that if in the opinion of any court of competent jurisdiction such restraint is not reasonable in any respect, such
court shall have the right, power and authority to excise or modify such provision or provisions of this covenant which appear unreasonable and to enforce the remainder of the covenant as so amended. You agree that any breach of the covenants
contained in this clause would irreparably injure the Company. Accordingly, you agree that, in the event that a court enjoins you from any activity prohibited by this clause, the Company may, in addition to pursuing any other remedies it may have in
law or in equity, cease making any payments otherwise required by this agreement to be made to you. 
  

	18.	Dispute Resolution 

  

	 	(a)	If a dispute arises between you and the Company in relation to any aspect of your employment, the following steps must be followed before either party commences legal
proceedings in any forum or takes any other step, which might place any information in relation to the dispute in the public domain: 

  

	 	(i)	One party must notify the other party in writing of the nature of the dispute, stating that the processes required by this clause are invoked. 

 

	 	(ii)	You and the Chairman and CEO of PEC or, if you agree, a delegate appointed by the Chairman and CEO must discuss the dispute and attempt in good faith to resolve it.
Both parties must co-operate to ensure that this step is completed within 14 days of the initial notification unless there are genuine reasons why this is impossible. 

 

	 	(iii)	If this step does not lead to a resolution of the dispute, you and the Chairman and CEO of PEC, or if, you agree, a delegate appointed by the Chairman and CEO of PEC,
must agree to formal, confidential mediation, with an independent mediator to be appointed by mutual agreement or, failing agreement, by the President of the Queensland Law Society at the relevant time. Both parties must co-operate to ensure that
this step is completed within 28 days of completion of the previous step unless there are genuine reasons by this is impossible. 

  

	 	(b)	If it is not possible to complete a step required by this clause within the required timeframe because one party does not co-operate reasonably to ensure that it occurs
within the required timeframe, the other party may treat compliance with this clause as having been waived. 

  

	 	(c)	The steps set out in this clause are not required to be followed prior to an application by either party for an urgent interlocutory injunction to restrain a threatened
breach of any provision on this agreement, however must be followed as far as possible before any further step in the proceedings is taken by either party. 

  
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Service Agreement | page 15 

	19.	Governing Law 

 The governing law
of this agreement is the law of Queensland, Australia. 
  

	20.	Notices 

 All notices or
communications hereunder shall be in writing, addressed as follows: 
 To the Company: 

Vice President and Chief Legal Officer Australia 
 Peabody Energy Australia Coal Pty Ltd 
 13/259 Queen Street, Brisbane 4000

 Australia 
 With a copy to: 
 Chairman and Chief Executive Officer 

Peabody Energy Corporation 
 701 Market Street, Suite 900 
 St. Louis, Missouri 63101-1826 

To you at the most recent address set forth in the Company’s personnel records. 

Any such notice or communication shall be delivered by hand or by courier or sent certified or registered mail, return receipt requested,
postage prepaid, addressed as above (or to such other address as such party may designate in a notice duly delivered as described above), and the third business day after the actual date of sending shall constitute the time at which notice was
given. 
  

	21.	Severability 

 If any provision
of this agreement is declared to be invalid or unenforceable, in whole or in part, such invalidity or unenforceability shall not affect the remaining provisions hereof, which shall remain in full force and effect. 

 

	22.	Assignment 

 Neither this
agreement nor any rights or obligations hereunder shall be assignable or otherwise subject to hypothecation by you (except by will or by operation of the laws of intestate succession) or by the Company, except that the Company may assign this
agreement, in writing, to any successor (whether by merger, purchase, spin-off or otherwise) to all or substantially all of the stock, assets or businesses of the Company. This agreement shall be binding upon, inure to the benefit of and be
enforceable by your heirs and representatives and the permitted assigns and successors of the Company to the extent it provides for payments to you or the protection or return of Confidential Information as Company property, including Intellectual
Property. 

  
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Service Agreement | page 16 

	23.	Amendment 

 This agreement may be
amended only by written agreement of the parties hereto. PEC shall be required to consent in writing to any amendment of this agreement. 
  

	24.	Beneficiaries; References 

 To
the extent permitted by law, you shall be entitled to select (and change, to the extent permitted under any applicable law) a beneficiary or beneficiaries to receive any compensation or benefit payable hereunder following your death, and may change
such election, in either case by giving the Company written notice thereof. In the event of your death or a judicial determination of your incompetence, reference in this agreement to you shall be deemed, where appropriate, to refer to your
beneficiary, estate or other legal representative. 
 Nothing in this clause requires the Company to give effect to a direction
which might cause the Company to breach any law or which might cause the Company to incur an additional liability, including a liability to pay or remit tax. 
  

	25.	Effect on Prior Agreements 

 This
agreement and any ancillary documents referred to this agreement contains the entire agreement understanding between the parties hereto with respect to the subject matter hereof. 

 

	26.	Withholding 

 The Company shall
be entitled to withhold from payments to or on your behalf any amount of tax withholding required by law. 
  

	27.	Survival 

 The rights and
obligations in clauses 11, 12, 13 and 18—28 will survive the termination of your employment or this agreement in any circumstances. 
  

	28.	Counterparts 

 This agreement may
be executed in two counterparts, each of which will be deemed an original. 

  
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Service Agreement | page 17 

 Appendix A – Benefits and entitlements 

 

	1.	Annual Leave 

  

	 	(a)	You will be entitled to five (5) weeks’ annual leave for each twelve months of continuous service, which will accrue pro rata. 

 

	 	(b)	Annual leave will be paid at your Base Salary. You may apply for and take annual leave at any time, provided the leave is taken at a time convenient and approved by the
Company, taking into account Company staffing requirements. 

  

	 	(c)	It is Company Policy that annual leave entitlements should not accrue beyond 10 weeks accumulated entitlement. On termination you will be paid any accrued untaken
annual leave entitlements. 

  

	 	(d)	You are entitled to cash out a portion of your accrued annual leave, provided the cashing out would result in your remaining accrual being 4 weeks or more.

  

	2.	Long Service Leave 

 Employees
accrue long service leave at the rate of 8.6667 weeks for each ten years of continuous service. 
  

	3.	Personal/Carer’s Leave 

  

	 	(a)	In the event that you are unable to attend for work for reasons of genuine sickness or injury, your salary will be unaffected for a period of up to six months.

  

	 	(b)	Up to 10 days per year may be taken as Carer’s leave to care for an immediate family member. 

 

	 	(c)	Payment for personal leave or Carer’s leave is conditional upon you informing the Company, wherever practicable prior to the commencement of such absence of the
inability to attend work, the nature of the illness and the estimated duration of the absence. You may also be required to co-operate in the gaining of independent medical advice in relation to the nature and expected duration of your medical
condition. 

  

	4.	Novated Vehicle 

 The Company
will provide a facility, using our nominated lease provider, under which you can novate a motor vehicle of your choice under a lease arrangement. The vehicle will be registered, insured, serviced, repaired and fuelled under lease arrangements during
the term of your employment. If you elect to enter into this arrangement your Base Salary may be reduced by an appropriate ‘salary sacrifice’ amount. 
  

	5.	Company Issued Equipment 

 In
your role, the Company will provide you with certain Company issued equipment, such as an iPad, mobile phone or laptop. Company issued equipment is for business and prudent personal use only. It will be expected that at all times you will be able to
be contacted for Company business. 

  
 Executive
Service Agreement | page 18 

	6.	Compassionate Leave 

 You will be
entitled to two days’ paid leave payable at your Base Annualised Salary for each occasion when a member of your immediate family or household: 
  

	 	(a)	contracts or develops a personal illness that poses a serious threat to their life; 

 

	 	(b)	sustains a personal injury that poses a serious threat to their life; or 

  

	 	(c)	dies. 

  

	7.	Jury Service Leave 

 In the event
you are required to attend for Jury Service, you shall be paid your Base Salary less the total of your jury service pay for the first 10 days of your absence. 
  

	8.	Parental Leave 

 “Parental
Leave” means adoption leave, maternity leave, paternity leave, and is a combination of paid and unpaid leave for a maximum period of up to 52 weeks. Parental Leave is governed by the Fair Work Act 2009 and Company’s Parental Leave
policy. 
  

	9.	Public Holidays 

 Public Holidays
as provided for in relevant legislation and gazetted for the local government area will be observed. 
  

	10.	Employee Benefit Programs, Plans and Practices; Perquisites 

 The Company shall provide you with employee benefits and perquisites at a level (a) commensurate with your position in the Company and (b) at least as favourable to you as the arrangements the
Company provides to its other senior executives that are in effect and open to new participants on the Commencement Date. You will be entitled to the Company’s standard directors and officers insurance and/or an indemnification agreement that
covers claims arising out of actions or inactions occurring during the Term. 
  

	11.	Medical 

 Your ongoing employment
will be subject to maintaining your health and fitness at a level relevant to your role and work requirements. You may be required to undergo periodic medical examinations to monitor your fitness in addition to any requirements under the
legislation. 
  

	12.	Life Insurance 

 The Company will
endeavour to provide you with life insurance coverage procured in Australia in the amount of $1,000,000. 

  
 Executive
Service Agreement | page 19 

	13.	Working Arrangements 

  

	 	(a)	Your normal work days will be Monday to Friday. 

  

	 	(b)	From time to time circumstances will require you to work outside normal hours to ensure the full requirements of your position are met. Your remuneration package has
been developed to account for this and is inclusive of all amounts payable for all hours worked. The Company reserves the right to vary these work arrangements as business requirements dictate. 

 

	14.	Safety 

 The Company will provide
equipment and facilities it considers necessary for you to perform your duties. In performing your duties you are required to work in a manner that will not injure or put at risk yourself, fellow employees or any other person on site. You may be
required to attend an induction course prior to commencing work on a site. You are required to wear and use accident prevention equipment and protective clothing supplied by the company for the purpose for which it is supplied, at all times whilst
on site. Should you be required to drive motor vehicles to execute your duties, you must maintain a current licence appropriate for the class of vehicle. 
  

	15.	Consent to Drug and Alcohol Testing 

 You agree to undergo drug, alcohol and substance abuse testing as required by the Company in accordance with its policies and procedures. 

 

	16.	Performance Reviews 

 You are
required to actively participate in regular Performance Reviews (both for yourself and subordinate employees as required) in accordance with the Peabody Energy Group’s usual procedures. 

  
 Executive
Service Agreement | page 20 

 Signing page 
 EXECUTED as an agreement. 
  

							
	 Signed for PEABODY ENERGY
 AUSTRALIA COAL PTY LIMITED by an
 authorised officer in the presence
of
	  	/s/ Michael C. Crews	  	f
	  	Signature of officer	  	
			
		  	Michael C. Crews	  	
		  	  
	  		  	
		  	Name of officer	  	
			
		  	Director	  	
		  	  
	  		  	
		  	Office held	  	
			
	Signed by ERIC FORD in the presence of	  		  	
		  	/s/ Eric Ford	  	f
		  	Eric Ford	  	
		  	April 1, 2012	  	

  
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Service Agreement | page 21

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