Amendment to Non-Qualified Stock Option Agreement between Peabody Energy Corporation and Optionee

Summary

Peabody Energy Corporation and the Optionee are amending their existing Non-Qualified Stock Option Agreement, originally dated May 19, 1998. This amendment changes the vesting terms for certain stock options, specifying that if an IPO is completed by July 31, 2001, at least 50% of the relevant options will vest, with the remainder vesting according to a set schedule. The amendment is made in connection with changes to a related Stockholders Agreement and reflects new terms agreed upon by the parties.

EX-10.30 12 dex1030.txt AMENDMENT TO THE NON-QUALIFIED STOCK OPTION Exhibit 10.30 Peabody Energy Corporation Amendment to the Non-Qualified Stock Option Agreement ("Amendment") ------------------------------------------------------------------- WHEREAS, Peabody Energy Corporation (the "Company", formerly known as P&L Coal Holdings Corporation) and ______________ (the "Optionee") previously entered into that certain Non-Qualified Stock Option Agreement dated as of May 19, 1998, as previously amended (the "Option Agreement"); WHEREAS, pursuant to Section 5.7 of the Option Agreement, the Company and the Optionee have the power to amend the Option Agreement if they deem it appropriate; WHEREAS, concomitantly herewith, that certain Stockholders Agreement dated as of May 19, 1998, among the Company, the Optionee and other parties thereto (the "Stockholders Agreement") is amended to clarify certain rights granted thereunder to Management Investors and their Permitted Transferees (as such terms are defined in the Stockholders Agreement); and WHEREAS, the Company and the Optionee desire to amend the Option Agreement to reflect certain additional changes agreed upon by the parties to the Stockholders Agreement; NOW, THEREFORE, the Option Agreement is hereby amended as follows: I. Section 3.4(c) of the Option Agreement, as previously amended, is further amended by deleting subsection 3.4(c)(i) in its entirety and replacing it with the following: "(i) upon completion of an IPO on or before July 31, 2001, at least 50% of the shares subject to the Superperformance Option I shall vest and the balance shall vest in accordance with the IRR chart set forth in Section 3.3 above". IN WITNESS WHEREOF, this Amendment has been executed and delivered by the parties hereto as of this _____ day of ____________, 2001. PEABODY ENERGY CORPORATION By: ------------------------------------- Name: ------------------------------------- Title: ------------------------------------- [NAME OF EXECUTIVE] -------------------------------------