Australian Employee Share Purchase Plan Power Your Future with BTU

Australian Employee Share Purchase Plan Power Your Future with BTU

Power Your Future with BTU This brochure is intended to provide general information in relation to the Australian Employee Share Purchase Plan. You should consider obtaining your own financial advice from an independent person who is licensed by the Australian Securities and Investments Commission. This brochure is accompanied by a Supplement which contains important additional information which you should read in conjunction with this brochure. This document constitutes part of a prospectus covering securities that have been registered under the United States Securities Act of 1933. 1

Contents The Australian Employee Share Purchase Plan...3 How Will the Plan Work?...5 Selling or Transferring Your Peabody Energy Shares...8 Risk and Return of Owning Shares...9 Here s What You Need To Do...11 Australian Tax Summary...13 Example 1 Tax At Purchase & Sale ($1,000 concession applies)...17 Example 2 Tax At Purchase & Sale ($1,000 concession does not apply)...18 2

The Australian Employee Share Purchase Plan: Power Your Future with BTU Peabody Energy Corporation is the world's largest private-sector coal company - and an innovative, growing, low-cost energy provider. When you join the Peabody Energy Corporation Australian Employee Share Purchase Plan, you can buy shares in Peabody Energy, and share in our financial future. Read this brochure to learn how you can realise your future by being a Peabody Energy shareholder. This brochure describes the highlights of the Australian Employee Share Purchase Plan and how you can purchase shares through the plan. WHY AN AUSTRALIAN EMPLOYEE SHARE PURCHASE PLAN? The Australian Employee Share Purchase Plan is possible because Peabody Energy, our US parent company, is a publicly owned company. Peabody Energy common shares are traded on the New York Share Exchange under the symbol BTU. We can design our compensation programs to include share ownership. WHAT IS A COMMON SHARE? A common share represents basic ownership of a company (and is the same as an ordinary share). When you own common shares, you have the right to vote on important company issues and attend shareholders' meetings. You also share in any dividends that may be paid on the shares you hold in the future. Common shareholders share directly in the future of the business. If the company succeeds, the common share may increase in value. If the company doesn't prosper, the common share may decrease in value. PLUG IN TO THE POWER Through the Australian Employee Share Purchase Plan, you have the opportunity to purchase Peabody Energy shares at a price that is 15% less than the closing share market price on the first or last day of an offering period, whichever is lower. You're eligible to join the Australian Employee Share Purchase Plan if, at the beginning of any offering period, you are a regular full-time employee or a part-time employee who works more than 20 hours per week and five months in any calendar year; you are employed by a participating subsidiary and you meet certain other eligibility tests described in the accompanying Supplement under "Eligibility to Participate in the Plan." Newly hired employees are eligible if they were hired 15 days before the start of an offering period and meet these tests. Otherwise, eligible new employees may participate during the next offering period. 3

The plan has two offering periods during a calendar year - 1 January through 30 June and 1 July through 31 December. You can join the plan by completing the enrolment process no later than 15 days before the offering date of 1 January or 1 July. If you don't join the plan during any offering period, you can still join the plan for the next offering period. The money you use to buy shares will come from payroll deductions. You can choose to contribute from 1% to 15% of your compensation in whole percentages, but in no event more than an amount which (together with any other plan purchases) would result in the purchase of Peabody Energy shares worth the lesser of US$25,000 or A$25,000 in any calendar year. The value is based on the closing price on the first day of the offering period. Compensation is defined as your base salary or wages but excluding bonuses, incentive pay, overtime, commissions, shift premiums and all other forms of compensation. Your contribution to the plan will be calculated based on your compensation before tax (although the amount will be deducted from your compensation after you have paid tax). If your compensation changes, the amount you contribute to the plan will automatically change in proportion. 4

How will the Plan Work? You contribute money to the Australian Employee Share Purchase Plan during the offering periods (1 July to 31 December and 1 January to 30 June) through payroll deductions. Once enrolled, you are automatically enrolled for the next offering period at the same contribution rate until you file a timely withdrawal notice or you become ineligible. You may contribute not less than 1% of compensation per payroll period and not more than the lesser of (i) 15% of compensation per payroll period or (ii) a percentage of compensation that ensures that you would not purchase Peabody Energy share which (together with any other plan purchases) would be worth the lesser of US$25,000 or A$25,000 in any calendar year, based on the closing price on the first day of the offering period. Your contributions to the Plan will be deducted from your salary on a post tax basis. The money deducted from your pay will be held by Peabody Pacific in an Australian bank account on trust on your behalf until the end of the offering period. You will not receive any interest on the amounts deducted from your compensation. At the end of the offering period, shares are purchased in your name with the money deducted from your pay. Any monies contributed that exceed the exercise price of shares available for purchase will be rolled over for the next offering period (except to the extent the excess, together with any additional contributions, would result in the purchase of Peabody Energy shares worth more than US$25,000 or A$25,000 or more in any calendar year, based on the closing price on the first day of the offering period, in which case such amounts will be refunded). In order to calculate the number of Peabody Energy shares you are allocated, the total amount you contributed via payroll deductions during the offering period will be converted to USD using the prevailing exchange rate published by the Reserve Bank of Australia at the time the shares are purchased. The price you pay for a share will be 85% of the lower of the: - closing market price of the share on the first day of the offering period (1 July or 1 January) OR - closing market price of the share on the last business day of the offering period (30 June or 31 December). The difference between the price you pay for the share and the market value of the share at the time of purchase is known as "the discount." 5

Example Assume the closing market value of Peabody Energy shares on 31 December (the end of the offering period) is $70 per share. The closing market value of Peabody Energy shares on the first day of the offering period 1 July was $60. Shares would be purchased for you at 85% of the lower price ($60 on the first day of the offering period) being $51. In this example, this means you purchased Peabody Energy shares trading at $70 per share for $51 per share - an actual discount of $19 per share which is a discount of more than 27% of the current market value. All shares purchased for you will be registered in the name of a nominee and deposited in an account established for you with the share plan administrator, currently Link Market Services Limited. You will be required to hold your shares for a minimum of 3 years from the date of purchase, i.e., 3 years from the end of the offering period. After 3 years, you may sell your shares whenever you wish through the share plan administrator. You may also choose to receive share certificates or transfer your shares to another brokerage account at the end of the 3 years. However, in the event of a change in control (as defined in the accompanying Supplement under "Offerings under the Plan"), you may request distribution of shares credited to your account. Any cash dividends payable with respect to shares credited to your account will be used to purchase additional shares in the open market as soon as possible. Your participation in the Australian Employee Share Purchase Plan is non-transferable. This means that only you can purchase shares through the plan - you cannot give your right to purchase shares at a discount to another person. 6

CHANGING YOUR CONTRIBUTIONS If you want to change your contributions or stop participating in the plan, you can increase, decrease or discontinue making contributions to the plan once during each offering period, as long as the change is made at least 15 days prior to the end of the offering period. The change will generally be effective at the beginning of the next payroll period. If you elect to discontinue contributions, you may not resume them during that offering period. If you discontinue contributions, you may receive a refund of all contributions made during the current offering period which have not been used to purchase shares. In order to discontinue contributions and to receive a refund of those contributions, you must make this request at least 15 days before the end of the applicable offering period (either 30 June or 31 December). THE MOST SHARES YOU CAN BUY You may buy up to the lesser of US$25,000 or A$25,000 worth of shares during any 12 month period. For the Australian Employee Share Purchase Plan, the 12 month period begins with the January offering period and continues for the next 12 months. The US$25,000 or A$25,000 limitation is calculated using 100% of the fair market value of Peabody Energy's share on the first day of the offering period. For example, if a share on the first day of an offering period is A$20, the maximum number of shares you could purchase in that offering period using the A$25,000 test would be 1,250 (1,250 x A$20 = A$25,000). To determine the maximum number of shares that can be purchased in the second offering period of any 12 month period, the value of the shares purchased in the previous period will be included. Any monies contributed that exceed the number of shares available for purchase will be rolled over for the next offering period (except to the extent the excess, together with any additional contributions, would result in the purchase of Peabody Energy shares worth US$25,000 or more in any calendar year, based on the closing price on the first day of the offering period, in which case such amounts will be refunded). 7

Selling or Transferring Your Peabody Energy Shares FEES TO SELL OR TRANSFER SHARES There is no fee to maintain your account at Link Market Services Limited. Fees and/or commissions will apply to the sale of shares held in your account if the shares are sold through Link Market Services Limited. You can transfer the shares to a broker of your choice, at no charge, at the end of the restricted period. The plan requires that you hold your shares for a minimum of 3 years from the purchase date - the end of the offering period. After that time, you may sell your shares whenever you wish through the share plan administrator of the plan. At that time, you may also choose to receive share certificates or transfer your shares to another brokerage account. INSIDERS There are additional restrictions if you are deemed to be an "insider". All insiders have received a copy of the company insider trading policy or can obtain a copy from Peabody Energy. AUSTRALIAN TAX IMPLICATIONS Where you decide to participate in the Australian Employee Share Purchase Plan, there will be Australian Tax implications. You should seek the advice of a qualified tax advisor for specific information. Please refer to the section of this booklet on Australian Tax Implications (page 13 onwards) for some generic advice. Peabody Energy's share symbol is BTU. There are plenty of places to check how your shares are doing on a regular basis. As a shareholder, you will receive a statement at the end of each offering period showing the activity in your account. You can find Peabody Energy share information, including the current share price in Australian dollars, on the internet site www.linkmarketservices.com.au or by contacting the share plan administrator. IF YOU CEASE EMPLOYMENT WITH PEABODY ENERGY If you cease employment with Peabody, any contributions to the plan that have not been used to purchase shares will be refunded to you. If you have purchased shares under the plan, you are free to sell the shares, receive share certificates or transfer the shares to another brokerage account after the 3 year restriction period is met. IN CASE OF YOUR DEATH In case of your death, any contributions to the plan that have not been used to purchase shares will be refunded to your estate. Any shares purchased under the plan will not be subject to the 3 year restriction period, and your designated beneficiary will be free to sell or transfer all of your shares. 8

Risk and Return of Owning Shares Contributions to the Australian Employee Share Purchase Plan are an investment for the future. As with any investment, you hope to make more money than you invest. This is called your return. However there is a chance that the value of your original investment may decrease. This is called risk. Investors earn value from their shares through a combination of increases in share price and the dividends a company may pay. Dividends are amounts paid to shareholders based on the earnings of the company. Dividends are not guaranteed and are subject to change from time to time. Even if a company doesn't pay dividends, you can earn a return by purchasing shares at a price and then later selling them at a higher price. For example, let's say you purchase shares at $25 and five years later sell them at $50. You've doubled your investment of $25 during those five years. There is also a risk that the value of the shares could decrease below the $25 you paid for them. Because the Australian Employee Share Purchase Plan involves solely Peabody Energy shares, it has a higher potential for risk and reward than a fund offering diversified investments (investments in different shares). Share prices go up and down. The reasons for the changes in price vary, but often are the result of general economic conditions that can affect a particular company or type of business. Keep in mind the more shares you purchase the more risk you take. Your potential return may also be greater. Only you can decide how much risk you are willing to accept. Also remember that you can sell the shares you purchase only after you have owned them for 3 years. For additional information regarding risks associated with investing in Peabody Energy shares, please see "Risk Factors" in the item 1A of Peabody Energy's latest annual report on form 10-k filed with the U.S. Securities and Exchange Commission. In addition to the normal risks associated with share ownership, you will also be exposed to currency exchange risks as the shares you are purchasing are US shares. Your investment will be impacted by US currency exchange rate movements. YOUR SHAREHOLDER RIGHTS When you purchase Peabody Energy shares, you become a shareholder in our business and you have the same rights as any other shareholder. These include voting on important corporate issues such as electing the Board of Directors. Any cash dividends payable with respect to shares credited to your account will be used to purchase additional Peabody Energy shares in the open market as soon as possible. 9

This brochure is a summary of the plan. If there is any discrepancy between this brochure and the official plan document, the plan document governs and controls the operation of the plan. This plan is subject to amendment including termination at any time at the complete discretion of the company. You may obtain a copy of the official plan document on the internet site www.linkmarketservices.com.au or by contacting the plan administrator. 10

Here s What You Need To Do Approximately a month before the beginning of each offering period, you will receive instructions about how to enroll for the next offering period. You have the option to participate in the plan at the beginning of each offering period. To enroll, you must submit your election information to Link Market Services Limited, the share plan administrator of the Australian Employee Share Purchase Plan. You may also enroll on-line at www.linkmarketservices.com.au. After you enroll, you will continue to participate in the plan for the following offering periods at the same contribution percentage. If you wish to change your contribution percentage from the previous enrolment period, you must submit the new percentage to Link Market Services Limited at least 15 days before the next offering period. Remember, if you take no action, your contribution percentage from the previous offering period will carry over to the next offering period. You can choose to participate in the plan at any rate between 1% and 15% of pay (in whole increments) subject to the limitation described on page 5. Payroll deductions will generally begin with the first pay you receive after the beginning of the offering period (1 January or 1 July). You must complete the enrolment process by the deadline included with your enrolment instructions; if you decline to participate at the beginning of any offering period, you cannot enroll during that offering period. You can choose to participate again at the beginning of the next offering period. DURING EACH OFFERING PERIOD Once you have made the election to participate during the offering period, you can increase, decrease or discontinue making contributions to the plan once during each offering period as of the first day of the first payroll period in the next offering period. You must give notice at least 15 days before the beginning of the next offering period. AT THE END OF EACH OFFERING PERIOD The accumulated payroll deductions for each offering period will be used to purchase shares of Peabody Energy. During the first offering period that you participate, you will receive forms from Link Market Services Limited, the share plan administrator of the Australian Employee Share Purchase Plan, to establish an account. Once your account is established, shares from other offering periods will be deposited in that same account. 11

You will receive a statement from Link Market Services Limited as soon as administratively possible after the shares are purchased, or you can view your share purchase via the internet at www.linkmarketservices.com.au. You will also receive an account statement from Link Market Services Limited reflecting receipt of your shares. You may also call for information, or you can access your account via the internet at www.linkmarketservices.com.au. If you have purchased shares and your address changes, it is your responsibility to provide Link Market Services Limited with your new address. You will receive an annual report of your contributions under the plan for each plan year and the Peabody shares purchased with such contributions. 12

Australian Tax Implications This summary only addresses the Australian tax implications of participation in the plan post 1 July 2009. If you participated in the plan prior to 1 July 2009, please refer to the tax summary previously provided. This summary is general in nature and has been prepared based on Australian income tax laws that apply to employee share scheme interests ( ESS interests ) granted on or after 1 July 2009. It is based on Australian tax law as at 15 April 2011. As the taxation of employee share schemes is complex and each employee s circumstances will be different, it is strongly recommended you seek professional advice in relation to your specific personal circumstances. The summary below assumes the following: Immediately after the shares are purchased, you do not hold a beneficial interest in more than 5% of the stock in Peabody Energy and you are not in a position to cast or control the casting of more than 5% of the votes that may be cast at a general meeting of Peabody Energy. At the time you purchase shares, at least 75% of the Australian tax resident permanent employees of Peabody Energy who have completed at least 3 years of service (whether continuous or non-continuous) with Peabody Energy are, or at some earlier time have been, entitled to acquire shares under the Peabody Australian Employee Share Purchase Plan or shares under another employee share scheme operated by Peabody Energy. You are, and remain, an Australian resident for taxation purposes and you are not a temporary resident. There are special rules in connection with individuals who are temporary residents of Australia or whose residency status changes and these are not addressed in this summary. BACKGROUND For Australian taxation purposes, ESS interests acquired on or after 1 July 2009 are subject to income tax at grant or purchase, unless certain circumstances are satisfied which provide for a deferred taxing point. The Peabody Australian Employee Share Purchase Plan does not qualify for a deferred taxing point (and accordingly shares acquired are subject to tax in the year of purchase). In certain circumstances, you may be eligible for a tax concession which will enable you to not be subject to income tax on up to A$1,000 of discount of shares purchased. SUMMARY The Australian income tax treatment of the shares purchased by you is summarised in the next table. Please see Additional Information for further detail. 13

EVENT You purchase the shares Restrictions lift on shares Sale of shares TAX IMPLICATIONS You will be subject to income tax on the taxable discount (see Additional Information) on the shares at purchase. Up to A$1,000 of taxable discount will not be subject to income tax if your Adjustable Taxable Income 1 for the year in which you purchase the shares does not exceed A$180,000. The taxable discount, less the A$1,000 tax concession (if applicable), will be subject to income tax in the tax year in which the shares are purchased and payable on assessment of your Australian income tax return. None. At sale, you will be subject to Capital Gains Tax ( CGT ) on the sale proceeds less the market value of the shares at purchase. ADDITIONAL INFORMATION Purchase of shares At the time of purchase of the shares, you will be subject to income tax on the taxable discount. The taxable discount will equal the market value of the shares on the date of purchase, less the amount paid to purchase the shares. A tax concession of up to A$1,000 worth of discount on the shares purchased, per tax year, will be available to Peabody Energy employees who have an Adjusted Taxable Income ( ATI ) of less than A$180,000 for the year in which shares are purchased. If you have an ATI that does not exceed A$180,000 and purchase shares with a discount of less than A$1,000 for a tax year, you will not pay any income tax on the shares in the year of purchase. However, if you have an ATI that does not exceed A$180,000 but you purchase shares at a total discount of more than A$1,000 for a tax year, you will be subject to income tax on the taxable discount of your shares which exceeds A$1,000. If you have an ATI of more than A$180,000, the A$1,000 tax concession will not be available to you and you will be subject to income tax on the entire taxable discount of your purchased shares. The taxable discount, less the A$1,000 tax concession (if applicable), will be subject to income tax at your marginal rate of tax (plus Medicare levy) in the tax year in which the shares are purchased. 1 Adjusted Taxable Income (ATI) is calculated by starting with taxable income and adding reportable fringe benefits, reportable superannuation contributions and total net investment losses for the year. 14

Sale of shares The sale of shares will give rise to a CGT event and will result in either a capital gain or a capital loss. The capital gain or loss will be calculated as the sale proceeds received for the shares less the cost base of the shares. The cost base of the shares will be the market value of the shares at purchase. The sale proceeds and cost base amounts will be translated into Australian dollars at the date of sale and the date of purchase respectively. If you realise a capital gain, the gain (after first offsetting any available capital losses) will be subject to tax at your marginal rate of tax (plus Medicare Levy). A 50% discount is available where you have held the shares for more than 12 months since purchase. If the sale proceeds are less than the reduced cost base then you will make a capital loss which can be offset first against any current year capital gains and then carried forward for offset against capital gains in future years. You will need to disclose the capital gain or capital loss in your tax return for the year in which you sell your shares. OTHER CONSIDERATIONS Withholding Tax Peabody Energy will not withhold Australian income tax or the Medicare Levy at purchase on the basis that you have provided Peabody Energy with your Tax File Number ( TFN ) or Australian Business Number ( ABN ). Reporting When completing your tax return, you must report the taxable discount (less the A$1,000 tax concession, if applicable) on your shares in your tax return for the year in which the shares are purchased on your behalf. You should also report any capital gain or capital loss in your tax return for the year in which you sell the shares. Peabody will provide you with an Employee Share Scheme ( ESS ) statement relating to your shares by 14 July following the end of the income year in which the shares are purchased by you. This ESS statement will include an estimate of the taxable discount relating to your shares for the relevant Australian income tax year. The amount reported by Peabody will not include the reduction of A$1,000 under the tax concession discussed at Purchase of shares. This information should then be considered on preparation of your Australian income tax return. Peabody Energy will also be obligated to report this same information to the Australian Taxation Office by 14 August following the end of the income year. 15

Your tax return is due by 31 October following the end of the tax year on 30 June (unless the return is prepared by a registered tax agent, in which case an extended filing date may apply). Any tax due will generally be payable within 21 days of receiving a notice of assessment from the Australian Taxation Office which is issued after your return has been assessed, or 21 days after your due date for lodgement whichever is the earlier. Dividends Dividends on the shares you acquire are subject to income tax at your marginal tax rate. You may be able to claim a foreign income tax offset for foreign taxes withheld from your dividends. As a shareholder, you are entitled to receive dividends based on Peabody Energy s profits. Whilst you are participating in the scheme, any dividends you receive will be reinvested to purchase more scheme shares. These reinvested dividends will form part of your assessable income for Australian tax purposes in the year that the dividends are reinvested, and should be included in your Australian income tax return for that year. This is the case irrespective of the fact that you have not received a cash distribution of the dividend amount, and that it has instead been automatically reinvested. Australian income tax will be payable at your marginal rate of tax, although the amount of Australian tax you pay will depend on all of your individual facts and circumstances. You will be entitled to claim a foreign income tax offset for the US withholding tax that has been withheld at source (typically at 15%). The amount of US withholding tax that you have paid will be shown on your semi-annual statement of account. When you sell the shares that have been acquired through the reinvestment of dividends, Australian capital gains tax (CGT) will apply. The CGT payable will be calculated based on your sales proceeds, less your cost base, which will be the amount of dividends reinvested on your behalf to acquire the shares. Where you have held the shares for more than 12 months, a 50% CGT discount may apply, meaning that only half of any gain will be subject to tax. 16

Example 1 Tax at Purchase & Sale (A$1,000 Tax Concession Applies) You elect to contribute 5% of your annual salary into the Australian Employee Share Purchase Plan. Over the offering period, 1 July 2011 to 31 December 2011, you have contributed AUD $2,500 into the Plan. Assume the following: Market value of Peabody Energy shares on 1 July 2011 is AUD 60 Market value of Peabody Energy shares on 31 December 2011 is AUD 70 The shares are subject to a 3 year restriction period and the restrictions lift on 1 January 2015. You dispose of the Peabody Energy shares on 1 August 2015 when the market value of the Peabody Energy shares is AUD 80. Your Adjusted Taxable Income 2 for the year is less than $180,000. You will therefore be entitled to the upfront tax concession of A$1,000. TAX AT GRANT AUD Contribution 2,500 Purchase price of shares (85% of Lowest Market Value) AUD 60 x 85% 51 Number of shares acquired AUD 2,500/ AUD 51 49 Taxable discount (market value of shares at purchase less what you paid) AUD 70 x 49 shares less AUD 51 x 49 shares Less AUD 1,000 tax concession -1,000 Taxable discount nil Income tax payable @ 46.5%* (upon assessment of 2012 tax return) nil CAPITAL GAINS TAX ON SALE Capital Proceeds 49 shares @ AUD 80 Less Cost Base (Market value on purchase date) 49 shares @ AUD 70 931 3,920 3,430 Gain 490 Taxable Gain (50% discount) 245 Capital Gains Tax payable @ 46.5%* (upon assessment of 2016 tax return) 114 TOTAL TAX PAID 114 * This will be your marginal rate of tax for the relevant tax year. For illustrative purposes the example uses the top marginal tax rate (in relation to the year ending 30 June 2011) and therefore may differ from your actual tax rate. 2 Taxable income is adjusted by adding reportable fringe benefits, reportable superannuation contributions and total net investment losses for the year. 17

Example 2 Tax at Purchase & Sale (A$1,000 Tax Concession Does Not Apply) You elect to participate in the Australian Employee Share Purchase Plan. Over the offering period, 1 July 2011 to 31 December 2011, you have contributed AUD $2,500 into the Plan. Assume the following: Market value of Peabody Energy shares on 1 July 2011 is AUD 60 Market value of Peabody Energy shares on 31 December 2011 is AUD 70 The shares are subject to a 3 year restriction period and the restrictions lift on 1 January 2015. You dispose of the Peabody Energy shares on 1 August 2015 when the market value of the Peabody Energy shares is AUD 80. Your Adjusted Taxable Income 3 for the year is more than $180,000. You will therefore not be entitled to the upfront tax concession of A$1,000. TAX AT GRANT AUD Contribution 2,500 Purchase price of shares (85% of Lowest Market Value) 51 AUD 60 x 85% Number of shares acquired AUD 2,500/ AUD 51 49 Taxable discount (market value of shares at purchase less what you paid) AUD 70 x 49 shares less AUD 51 x 49 shares Income tax payable @ 46.5%* (upon assessment of 2012 tax return) 433 CAPITAL GAINS TAX ON SALE Capital Proceeds 3,920 49 shares @ AUD 80 931 Less Cost Base (Market value on purchase date) 49 shares @AUD 70 3,430 Gain 490 Taxable Gain (50% discount) 245 Capital Gains Tax payable @ 46.5%* (upon assessment of 2014 tax 114 return) TOTAL TAX PAID 547 * This will be your marginal rate of tax for the relevant tax year. For illustrative purposes the example uses the top marginal tax rate (in relation to the year ending 30 June 2011) and therefore may differ from your actual tax rate. 3 Taxable income is adjusted by adding reportable fringe benefits, reportable superannuation contributions and total net investment losses for the year. 18

Note: These examples assume all amounts are in Australian dollars (AUD). However, the shares will be acquired and sold in US dollars. Accordingly, the number of shares acquired and proceeds received for the sale of the shares will be subject to exchange rate fluctuations. Excess amount of contributions are to be held over to next offering period or refunded. Any dividends reinvested during the restriction period will be subject to income tax in Australia in the year the dividends are reinvested. These reinvested dividends will also impact your cost base when you sell the shares. 19

Disclaimer Whilst every effort has been made to ensure accuracy neither PricewaterhouseCoopers nor any partner or employee of PricewaterhouseCoopers shall be liable on any ground whatsoever to any party in respect of decisions or actions they may take as a result of using this taxation summary. The information contained in the taxation summary should not be treated as a substitute for advice concerning individual situations or circumstances. The information contained in this document does not constitute "financial product advice" within the meaning of the Corporations Act 2001 (Cth) ( Corporations Act ). The PricewaterhouseCoopers partnership which is providing this advice is not licensed to provide financial product advice under the Corporations Act. To the extent that this document contains any information about a "financial product" within the meaning of the Corporations Act, taxation is only one of the matters that must be considered when making a decision about the relevant financial product. This material has been prepared for general circulation and does not take into account the objectives, financial situation or needs of any recipient. Accordingly, any recipient should, before acting on this material, consider taking advice from a person who is licensed to provide financial product advice under the Corporations Act. Any recipient should, before acting on this material, also consider the appropriateness of this material having regard to their objectives, financial situation and needs and consider obtaining independent financial advice. 20