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| PEABODY ENERGY |
| Peabody Plaza |
| 701 Market Street |
| St. Louis, MO 63101-1826 |
| 314.342.3400 |
January 27, 2015
Private and Confidential
Mr. Glenn Kellow
Dear Glenn:
Congratulations on your promotion to the position of President and Chief Executive Officer-elect effective January 22, 2015.
Base Salary - Effective February 1, 2015, your new base salary will be $950,000.
Annual Incentive - You are eligible to participate in the 2015 Corporate Annual Incentive Plan. Your target level will increase to 110% of your base salary, with an opportunity of up to 220% based upon achievement above the Company’s targeted goals. The Plan is tied to the Company meeting its annual financial goals as well as your individual performance.
Long-Term Incentive Plan - You are eligible for participation in Peabody’s Long-Term Incentive Plan with an opportunity valued at 375% of your base salary. The award is reviewed periodically and adjustments may be made as deemed appropriate by the Board of Directors.
Benefits - You remain eligible for Peabody’s National Benefit Plans.
Glenn, I believe your skills and experience will help us continue to improve our operations and will further strengthen our industry-leading operating and market positions while adding value to our business.
On behalf of the Board of Directors and Peabody’s shareholders, congratulations on this most significant appointment.
Sincerely,
/s/ William A. Coley
William A. Coley
Compensation Committee Chair
