Document:

Form of Convertible Note Term Sheet

 Exhibit 10.7 
 PROJECT KITKAT 
 Convertible Bond 

€500 Million Zero-Coupon Senior Unsecured Convertible Bond Due 2013 

Summary of Indicative Principal Terms of the Bond 
  

			
	Bond	  	€500,000,000 Zero-Coupon Senior Unsecured Convertible Bond due 2013 (the Bond).
		
	Issuer	  	Molson Coors Holdco, Inc., a Delaware corporation (the Issuer).
		
	Guarantor	  	Molson Coors Brewing Company, a Delaware corporation (the Parent).
		
	Holder	  	Starbev L.P., a Jersey Limited Partnership (the Holder).
		
	Issue Date	  	The Bond will be issued on the closing date of the Transaction (the Closing Date).
		
	 Final Maturity

Date
	  	Unless previously redeemed or purchased and cancelled, the Bond will be redeemed by the issuer on December 31, 2013 (the Final Maturity Date), for the greater of
(i) the principal amount of the Bond and (ii) the Notional Share Value Amount (as defined below) on the Final Maturity Date.
		
	 Notional Share

Value Amount
	  	The aggregate Notional Cash Value of the Notional Initial Number of Shares.
		
	 Notional Initial

Number of Shares
	  	Shall be 12,894,044 shares of Parent Class B Common Stock (adjusted for the conversion price adjustment provisions as per the Parent’s convertible bond issue issued pursuant
to a prospectus dated June 11, 2007 (the Parent’s Convertible)).
		
	 Notional Cash

Value
	  	On any given date, means the average volume weighted market price per share of the Parent’s Class B Common Stock for the 5 Trading Days ending on the date prior
thereto.
		
	Exchange Rate	  	Except as provided below, at any time the Bond calls for a conversion between US dollars and Euros, the exchange rate shall be the average of the closing exchange rates quoted by
Bloomberg on each of the previous 5 Trading Days prior to the day such calculation is made.
		
	 Redemption

Exchange Rate
	  	The closing exchange rates quoted by Bloomberg for each Trading Day used to calculate the Redemption Parity Value (as defined below) at any given time.
		
	 Parent Class B

Common Stock
	  	The Parent’s Class B Common Stock listed on the NYSE.
		
	Signing Date	  	The execution date of the Share Purchase Agreement.
		
	Trading Day	  	A day the New York Stock Exchange is open for trading.

			
	 Conversion

Premium
	  	115%
		
	 Initial Conversion

Price
	  	US$51.6789
		
	 Parent’s Canadian
 Bonds
	  	CAD$500 million 3.95% Series A Notes due 2017.
		
	 First Redemption

Date
	  	The earlier of (i) the date 30 days after the Parent announcing its 2012 annual financial results and (ii) March 31, 2013. The Bond may not be redeemed or prepaid prior to the
First Redemption Date.
		
	Conversion Period	  	From and including the First Redemption Date to and including December 19, 2013.
		
	 Form and

Denomination
	  	The Bond will be a definitive bond registered in the name of the Holder.
		
	Interest	  	The Bond will be a zero coupon bond and will not pay interest.
		
	Status of the Bond	  	The Bond will be a senior, direct, unconditional, unsubordinated and unsecured obligation of the Issuer and amounts owed under it shall rank pari passu and rateably without any
preference among themselves and equally with all other existing and future unsecured and unsubordinated obligations of the Issuer but, in the event of a bankruptcy or winding-up, save for such obligations that may be preferred by provisions of law
that are mandatory and of general application.
		
	 Status of the

Guarantee
	  	The Guarantee will be a direct, unconditional, unsubordinated and unsecured obligation of the Parent and amounts owed under it shall rank pari passu and rateably without any
preference among themselves and equally with all other existing and future unsecured and unsubordinated obligations of the Parent but, in the event of a bankruptcy or winding-up, save for such obligations that may be preferred by provisions of law
that are mandatory and of general application.
		
	Holder Put Right	  	The Bond shall entitle the Holder, subject to the Payment Reduction section below, by delivering a notice of exercise (the Put Notice) of its Put Right to require
the Issuer to redeem the Bond during the Conversion Period (the Put Right) for cash in euro in an amount equal to the greater of (i) the principal amount of the Bond and (ii) the Notional Share Value Amount (calculated and using the
Exchange Rate as at the date of the Put Notice (the Put Exercise Date)). Notwithstanding the Final Maturity Date, amounts payable in cash shall only be due 20 days following receipt of the Put Notice and any Parent Class B Common Stock
issued pursuant to the Partial Share Settlement (as defined below) shall be settled on the fifth Trading Day following the Put Exercise Date.

  
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	 Partial Share

Settlement Option
	  	Upon receipt by the Issuer of a Put Notice or at the Final Maturity Date, the Issuer shall have the right to deliver to the Holder in lieu of a portion of the cash otherwise
deliverable on exercise of the Put Right or on the Final Maturity Date that number of shares of Parent Class B Common Stock equal to the Partial Share Settlement Amount (a Partial Share Settlement). The Partial Share Settlement
Amount shall be determined by dividing the Upside Amount by the Notional Cash Value. The Upside Amount means the positive difference, if any, of (i) the Notional Share Value Amount (as calculated above) over (ii) the principal
amount of the Bond.
		
	 Parent Class B

Common Stock
	  	Parent Class B Common Stock issued pursuant to a Partial Share Settlement will rank pari passu with the fully paid and non-assessable Parent Class B Common Stock in issue on the Put
Notice Date, save for any right excluded by mandatory provisions of applicable law and except that they will not rank for (or, as the case may be, the Holder will not be entitled to receive) any rights, distributions or payments where the record
date or other due date for the establishment of entitlement falls prior to the date of issuance of such Parent Class B Common Stock to the Holder.
		
	 Optional

Redemption by the

Issuer
	  	The Issuer may redeem all but not only some of the Bond at the principal amount at any time on or after the First Redemption Date, if the parity value of the Notional Initial Number
of Shares on each of not less than 20 Trading Days in any period of 30 consecutive Trading Days ending not earlier than 15 days prior to the giving of the relevant optional redemption notice (the Redemption Parity Value), calculated
using the Redemption Exchange Rate exceeds 140 percent of the Principal Amount of the Bond on such Trading Day. Where the Issuer exercises this option, the Issuer shall pay the principal amount of the Bond in cash in euro with the remainder paid, at
the Issuer’s option, either in (i) Parent Class B Common Stock, the number of Parent Class B Common Stock calculated pursuant to the Notional Cash Value the day prior to the exercise of the Issuer’s optional redemption, or (ii) cash in
euro.
		
	 Cross Acceleration

or Cross Default
	  	The Bond shall contain a cross acceleration provision if the repayment of any indebtedness for borrowed money owing by the Parent, the Issuer or any of the Parent’s significant
subsidiaries (as defined in Regulation S-X) is accelerated by reason of the failure to perform any covenant or agreement

  
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		  	applicable to such indebtedness which acceleration has not been rescinded or annulled, and a cross default provision if the Parent, the Issuer or any of the Parent’s
significant subsidiaries (as defined in Regulation S-X) defaults in respect of any payment of any indebtedness for borrowed money (subject to the lapse of any applicable grace period), in each case where the principal amount of such indebtedness
exceeds the equivalent in the relevant currency of US$50,000,000.
		
	 Other Events of

Default and
 adjustment

provisions
	  	The Bond shall contain the events of default substantially consistent with the type set forth in the Parent’s Canadian Bonds and conversion price adjustment provisions
substantially consistent with the type set forth in the Parent’s Convertible.
		
	 Registration Rights
 Agreement
	  	The Issuer and the Holder shall enter into a customary registration rights agreement for the registration and re-sale of any Parent Class B Common Stock issued in connection with
a Partial Shares Settlement or Optional Redemption by the Issuer.
		
	Governing Law	  	The Bond and the Registration Rights Agreement shall be governed by New York law.
		
	Listing	  	None.
		
	Transferability	  	The Holder shall not be entitled to transfer the Bond.
		
	Payment Reduction	  	Offset to be consistent with Set-Off provision in the share purchase agreement dated 3 April 2012 between Starbev L.P., Molson Coors Holdco – 2 Inc. and Molson Coors Brewing
Company relating to the sale and purchase of the entire issued share capital of Starbev Holdings S.à r.l. (the Share Purchase Agreement) and the Management Warranty Deed (as such term is defined in the Share Purchase Agreement).
The Issuer may withhold an amount of Principal up to the amount of the damages claimed by the Purchaser (the Reduction Amount) in accordance with the Set-Off provision. Any Reduction Amount shall become payable promptly only after
final resolution in accordance with the terms and conditions of the Share Purchase Agreement or the Management Warranty Deed, as applicable.
		
	 Dividend Threshold

Amount
	  	Means $0.32 per share of Parent Class B Common Stock per Quarter, subject to adjustment provisions substantially consistent with the type set forth in the Parent’s
Convertible.

  
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	 Conversion rate

adjustment table
	  	The conversion rate adjustment table set out in the Appendix sets forth the number of additional Parent Class B Common Stock to be received by the Holder for conversions in
connection with a qualifying fundamental change, as defined in the Parent’s Convertible.
		
	 Additional

Provisions
	  	The Bond shall also contain a guaranty and a merger and consolidation covenant with respect to the Parent based on the merger and consolidation covenant included in the
Parent’s Convertible.

  
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 Appendix 
 Make Whole Table (Number of Additional Parent Class B Common Stock Delivered) 
 Stock Price of Parent Class B Common Stock on a qualifying fundamental change 
  

																																																									
	 Qualifying

Fundamental
 Change

Date
	 	€33.72	 	 	€35.64	 	 	€37.52	 	 	€39.39	 	 	€41.27	 	 	€43.15	 	 	€45.02	 	 	€46.90	 	 	€48.77	 	 	€50.65	 	 	€52.52	 	 	€54.29	 	 	€56.28	 	 	€58.15	 
	 06/30/2012
	 	 	1,934,105	  	 	 	1,511,411	  	 	 	989,710	  	 	 	652,303	  	 	 	405,545	  	 	 	234,147	  	 	 	122,970	  	 	 	58,047	  	 	 	25,393	  	 	 	10,994	  	 	 	3,845	  	 	 	903	  	 	 	16	  	 	 	4	  
	 09/30/2012
	 	 	1,934,105	  	 	 	1,422,986	  	 	 	967,602	  	 	 	625,161	  	 	 	378,597	  	 	 	211,458	  	 	 	106,064	  	 	 	47,085	  	 	 	19,504	  	 	 	7,742	  	 	 	2,317	  	 	 	336	  	 	 	2	  	 	 	0	  
	 12/31/2012
	 	 	1,934,105	  	 	 	1,398,765	  	 	 	930,362	  	 	 	584,246	  	 	 	341,155	  	 	 	181,217	  	 	 	84,853	  	 	 	34,392	  	 	 	13,348	  	 	 	4,592	  	 	 	1,018	  	 	 	0	  	 	 	0	  	 	 	0	  
	 03/31/2013
	 	 	1,934,105	  	 	 	1,355,700	  	 	 	876,074	  	 	 	529,438	  	 	 	293,415	  	 	 	145,226	  	 	 	61,909	  	 	 	22,423	  	 	 	8,037	  	 	 	2,223	  	 	 	251	  	 	 	0	  	 	 	0	  	 	 	0	  
	 06/30/2013
	 	 	1,934,105	  	 	 	1,294,603	  	 	 	800,299	  	 	 	453,473	  	 	 	229,903	  	 	 	100,494	  	 	 	35,874	  	 	 	11,100	  	 	 	3,163	  	 	 	446	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  
	 09/30/2013
	 	 	1,934,105	  	 	 	1,208,343	  	 	 	681,135	  	 	 	333,296	  	 	 	136,110	  	 	 	43,056	  	 	 	9,833	  	 	 	2,112	  	 	 	123	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  
	 12/31/2013
	 	 	1,934,105	  	 	 	1,134,385	  	 	 	432,964	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  

 The exact stock prices and effective dates may not be set forth in the table above, in which case if the stock price is:

 (i) between two stock price amounts in the table or the effective date is between two effective dates in the table, the number of additional
shares will be determined by a straight-line interpolation between the number of additional shares set forth for the higher and lower stock price amounts and the two dates, as applicable, based on a 365-day year; 

(ii) in excess of €58.15 per share (subject to adjustment), no increase in the conversion rate will be made; and 

(iii) less than €33.72 per share (subject to adjustment), no increase in the conversion rate will be made.EX-10.1

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT  
 This AGREEMENT (the
“Agreement”) is entered into as of March 28, 2012, by and between Peabody Energy Corporation, a Delaware corporation (the “Company”), and Christopher J. Hagedorn (“Executive”). 

RECITALS  
 To induce Executive to serve as the Company’s President Asia and Trading, the Company desires to provide Executive with compensation and other benefits on the terms and subject to the conditions set
forth in this Agreement. 
 Executive is willing to accept such employment and perform services for the Company, on the terms
and subject to the conditions hereinafter set forth. 
 It is therefore hereby agreed by and between the parties as follows:

 1. Employment. 
 1.1 Subject to the terms and conditions of this Agreement, the Company agrees to employ Executive during the term hereof as President Asia and Trading. In such capacity, Executive shall report to the
Chairman and Chief Executive Officer of the Company (the “Chairman and CEO”) or another designated senior executive of the Company, and shall have the customary powers, responsibilities and authority of executives holding such
positions in corporations of the size, type and nature of the Company, as it exists from time to time, and as are assigned by the Chairman and CEO or other senior executive of the Company. 

1.2 Subject to the terms and conditions of this Agreement, Executive hereby accepts employment as President Asia and Trading commencing as
of March 15, 2012 (the “Commencement Date”) and agrees, subject to any period of vacation or other approved leave, to devote his or her full business time and efforts to the performance of services, duties and responsibilities
in connection therewith, subject at all times to review and control of the Chairman and CEO or another designated senior executive of the Company. 
 1.3 Subject to Executive’s compliance with all of the provisions of the Company’s code of conduct and other policies, nothing in this Agreement shall preclude Executive from engaging in
charitable work and community affairs, from delivering lectures, fulfilling speaking engagements or teaching at educational institutions, from managing any investment made by him or her or his or her immediate family with respect to which Executive
is not substantially involved with the management or operation of the entity in which Executive has invested (provided that no such investment in publicly traded equity securities may exceed five percent (5%) of the equity of any entity without
the prior written approval of the Chairman and CEO) or from serving, subject to the prior written approval of the Chairman and CEO, as a member of boards of directors or as a trustee of any other corporation, association or entity, to the extent
that any of the above activities do not materially interfere with the performance of his duties hereunder. For purposes of the preceding sentence, any approval by the Chairman and CEO required therein shall not be unreasonably withheld. 

 2. Term of Employment. Executive’s term of employment under this Agreement
shall commence on the Commencement Date and continue for three (3) years from the Commencement Date, subject to earlier termination as provided in the Agreement (the “Term of Employment”). The Agreement automatically will renew
for a one (1)-year period (a “Renewal Period”) at the end of the initial Term of Employment and then annually on the Renewal Period date unless either the Company or Executive notifies the other party of the intention not to renew
the Agreement in writing at least ninety (90) days before the end of the initial Term of Employment or any Renewal Period. 

3. Compensation. 
 3.1 Salary. During the Term of Employment, the Company shall pay Executive a base salary (“Base Salary”) at the initial rate of $400,000. Such Base Salary shall be payable in
accordance with the ordinary payroll practices of the Company. During the Term of Employment and any Renewal Period, the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) and/or the
Chairman and CEO shall review Executive’s Base Salary in good faith, at least annually, in accordance with the Company’s customary procedures and practices regarding the salaries of senior executives, and may adjust Executive’s Base
Salary following such review. “Base Salary” for all purposes herein shall be deemed to be a reference to the Base Salary in effect as of any date that requires the determination of Executive’s Base Salary hereunder. 

3.2 Annual Bonus. 
 (a) In addition to Base Salary, Executive shall, commencing in 2012 and continuing for each calendar year thereafter during the Term of Employment and any Renewal Period, be eligible to receive an annual
cash bonus (the “Bonus”) in accordance with a program developed by the Compensation Committee and/or the Chairman and CEO, based on achievement of performance targets established by the Compensation Committee and/or the Chairman and
CEO as soon as practicable at or after the beginning of the calendar year to which the performance targets relate. The performance targets for the 2012 Bonus shall be determined before or as soon as practicable after the Commencement Date.
Executive’s Bonus opportunity for the 2012 fiscal year is 80% of his or her Base Salary. Executive’s maximum Bonus opportunity for the 2012 fiscal year is 150% of his or her Base Salary. The Compensation Committee and/or the Chairman and
CEO shall review Executive’s Bonus opportunity 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 adjust Executive’s
Bonus opportunity following such review. “Bonus” for all purposes herein, except as otherwise specifically stated, shall be deemed to be a reference to the Bonus opportunity in effect as of any date that requires the determination
of Executive’s Bonus hereunder. 
 (b) A Bonus award for any calendar year shall be payable to Executive 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 later of (i) the calendar year in
which the Bonus is earned or (ii) the calendar year in which the Bonus is no longer subject to a substantial risk of forfeiture within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”), and the Treasury regulations and other guidance in effect thereunder (collectively, “Section 409A”).  

  
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 3.3 Equity-Based Compensation. Executive shall be eligible to receive, from time to
time during the Term of Employment and any Renewal Period, equity-based compensation awards under the Company’s equity incentive plan(s) (the “Long-Term Incentive Awards”). Any such Long-Term Incentive Awards shall be governed
by separate grant agreements. Beginning in 2013, the grant date value for Executive’s Long-Term Incentive Awards for the 2013 fiscal year is 100% of his or her Base Salary. The Compensation Committee and/or the Chairman and CEO shall review the
grant date value of Executive’s Long-Term Incentive Awards 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 adjust
the grant date value of future Long-Term Incentive Awards to Executive following such review. “Long-Term Incentive Award” for all purposes herein, except as otherwise specifically stated, shall be deemed to be a reference to the
grant date Long-Term Incentive Award value in effect as of any date that requires the determination of Executive’s Long-Term Incentive Award value hereunder or under any grant agreement. 

4. Employee Benefits. 
 4.1 Employee Benefit Programs, Plans and Practices; Perquisites. The Company shall provide Executive with employee benefits and perquisites at a level (a) commensurate with his or her position
in the Company and (b) at least as favorable to Executive as the arrangements the Company provides to its other senior executives that are in effect and open to new participants on the Commencement Date, including retirement benefits, health
and welfare benefits, the Continuation Benefits (as defined in Section 6.2(b)(ii)(B)(II)), directors and officers insurance and/or an indemnification agreement that covers claims arising out of actions or inactions occurring during the Term of
Employment or any Renewal Period, and other employee benefits and perquisites which the Company may make available to its senior executives from time to time in its discretion on and after the Commencement Date. Executive’s rights, if any,
under any employee benefit plans or programs of the Company as of the Commencement Date shall continue in accordance with plan or program terms as in effect at any given time. 
 4.2 Vacation. Executive shall be entitled to the number of business days paid vacation in each calendar year as determined in accordance with the Company’s applicable vacation policies, which
shall be taken at such times as are consistent with Executive’s responsibilities hereunder. 
 5. Expenses.
Subject to prevailing Company policy or guidelines, the Company will reimburse Executive for all reasonable expenses incurred by Executive in carrying out his or her duties on behalf of the Company, provided that payment or reimbursement of 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 payment or reimbursement in any year shall not affect the amount of such
expenses eligible for payment or reimbursement in any other year and no such right to payment or reimbursement shall be subject to liquidation or exchange for another benefit. 

  
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 6. Termination of Employment. 

6.1 Termination of Employment for Any Reason. Except as otherwise specifically provided in this Agreement, the Company or Executive
may terminate Executive’s Term of Employment or any Renewal Period at any time for any reason by written notice to the other party at least thirty (30) days in advance of the date of termination of Executive’s employment. In the event
of a termination of Executive’s employment for any reason during the Term of Employment or any Renewal Period, the Company shall pay to Executive: 
 (a) within five (5) business days following the date of termination of Executive’s employment, a lump sum that includes: (i) Executive’s Base Salary earned on or prior to the date of
such termination but not yet paid to Executive in accordance with the Company’s customary procedures and practices for the payment of executive salaries; (ii) any business expenses incurred by Executive and properly submitted for
reimbursement, but not yet reimbursed by the Company under Section 5 above as of the date of such termination; and (iii) any vacation time accrued but unused as of the date of such termination; 

(b) any benefits accrued and vested under any of the Company’s employee benefit programs, plans and practices on or
prior to the date of termination of Executive’s employment; and 
 (c) if Executive’s employment
terminates due to retirement (as defined for the applicable plan): 
 (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 Executive earned during the calendar year immediately prior to the calendar year of employment
termination; and 
 (ii) a prorated bonus for the calendar year of termination of Executive’s employment,
calculated as the Bonus Executive would have received in such year based on actual performance multiplied by a fraction, the numerator of which is the number of business days during the calendar year of termination that Executive was employed and
the denominator of which is the total number of business days during the calendar year of termination. 
 Any bonus due under
paragraph (i) or (ii) above 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 later of (A) the calendar year in which
the Bonus is earned or (B) the calendar year in which the bonus is no longer subject to a substantial risk of forfeiture within the meaning of Section 409A. 

  
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 The amounts described in (a) and (b) above are collectively referred to herein as the
“Accrued Obligations” and shall be paid in accordance with the terms of such Company programs, plans and practices. The Accrued Obligations shall be paid in addition to any amounts payable under any other provision of this
Section 6 due to the termination of Executive’s employment. Any business expenses incurred by Executive before his or her employment termination date and properly submitted for reimbursement before or within ninety (90) days after the
employment termination date shall be processed and paid in accordance with Section 5. 
 6.2 Termination by the Company
without Cause or Termination by Executive for Good Reason. 
 (a) Notice Requirements.

 (i) General. Except as otherwise provided in paragraph (ii) below with respect to a Good Reason
termination, the Company or Executive may terminate Executive’s Term of Employment or any Renewal Period at any time for any reason by written notice to the other party at least thirty (30) days in advance of the date of termination of
Executive’s employment. 
 (ii) Good Reason Notice Requirements and Cure Period. If Executive
terminates his or her employment during the Term of Employment or any Renewal Period for Good Reason (as defined in Section 6.2(d) hereof), Executive shall provide written notice to the Company at least forty-five (45) days in advance of
the date of termination, such notice shall describe the conduct Executive believes to constitute Good Reason and the Company shall have the opportunity to cure the Good Reason within thirty (30) days after receiving such notice. If the Company
cures the conduct that is the basis for the potential termination for Good Reason within such thirty (30)-day period, Executive’s notice of termination shall be deemed withdrawn. If Executive does not give notice to the Company as described in
this Section 6.2(a)(ii) within ninety (90) days after an event giving rise to Good Reason, Executive’s right to claim Good Reason termination on the basis of such event shall be deemed waived. 

(b) Severance Benefits. 
 (i) Severance Payment. If Executive’s employment is terminated during the Term of Employment or any Renewal Period (for the avoidance of doubt, the term “terminated” does not include
non-renewal of this Agreement): 
 (A) by the Company for a reason other than Cause (as defined in
Section 6.3(b) hereof), Disability (as defined in Section 6.4 hereof) or death, or 
 (B) by Executive
for Good Reason (as defined in Section 6.2(d) hereof), 
 and such termination constitutes a Separation from Service (as
defined in Section 6.2(c) hereof), the Company, as severance, shall pay to Executive an amount (the “Severance Payment”) equal to the total of: 

  
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 (I) one (1) times Executive’s Base Salary; plus 

(II) an additional amount equal to one (1) times the annual average of the actual Bonus awards paid to Executive by
the Company for the three (3) calendar years preceding the date of Executive’s employment termination (or, if Executive has not been employed by the Company for three (3) full calendar years as of the date his or her employment is
terminated for the two (2) calendar years or one (1) calendar year, as applicable, for which he or she has been so employed and eligible to receive a Bonus); plus 

(III) six percent (6%) of Executive’s Base Salary (to compensate Executive for Company contributions he or she
otherwise might have received under the Company’s retirement plan). 
 The Company shall pay to
Executive (x) one-half ( 1/2) of such Severance
Payment in a lump sum payment on the earlier to occur of Executive’s death or the first business day immediately following the six (6)-month anniversary of Executive’s Separation from Service and (y) the remaining one-half ( 1/2) of the Severance Payment in six
(6) substantially equal monthly payments beginning on the first day of the month next following the initial lump sum payment. 
 (ii) Unpaid Bonus, Prorated Bonus and Continuation Benefits. In addition, if Executive’s employment is terminated: 

(A) by the Company for a reason other than Cause (as defined in Section 6.3(b) hereof), Disability (as defined in
Section 6.4 hereof) or death, or 
 (B) by Executive for Good Reason (as defined in Section 6.2(d)
hereof), 
 and such termination constitutes a Separation from Service, the following provisions shall apply: 

(I) Unpaid Bonus and Prorated Bonus. The Company shall pay to Executive (aa) any unpaid Bonus earned by
Executive with respect to the year immediately preceding the year of termination, if any, and (bb) a prorated bonus (the “Prorated Bonus”) for the calendar year of termination of Executive’s employment, calculated as the
Bonus Executive would have received in such year based on actual performance multiplied by a fraction, the numerator of which is the number of business days during the calendar year of termination that Executive was employed and the denominator of
which is the total number of business days during the calendar year of termination. The unpaid Bonus and the Prorated Bonus shall be payable when annual 

  
 6 

 
bonuses are paid to other senior executives of the Company, but in no event later than March 15 of the calendar year following the later of (1) the calendar year in which the Bonus is
earned or (2) the calendar year in which the Bonus is no longer subject to a substantial risk of forfeiture within the meaning of Section 409A. 
 (II) Continuation Benefits. Executive shall be entitled to continuation of group health coverage (including medical, dental, and vision benefits, to the extent permitted under the applicable plan),
and the health care flexible spending account (to the extent required to comply with COBRA continuation coverage requirements) (collectively, the “Continuation Benefits”) in accordance with the applicable plan terms for a period of
up to eighteen (18) months following the date of Executive’s Separation from Service (the “Benefit Continuation Period”); provided, however, that Executive pays the full cost of his or her coverage under such
plans, except that Executive shall pay only the required contributions for any health care continuation coverage required to be provided to or on behalf of Executive under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
(“COBRA”), on the same basis as any other plan participant electing similar COBRA continuation coverage under the Company health plan; and provided, further, that any such coverage shall terminate to the extent that
Executive is offered or obtains comparable benefits from any other employer during the Benefit Continuation Period. Executive shall be reimbursed by the Company, on an after-tax basis, for his or her cost of the Continuation Benefits (except that
the reimbursement for his or her required contributions for COBRA health care continuation coverage shall be reduced by an amount equal to the cost paid by an active employee for similar coverage under the Company health plan). The amount of
expenses eligible for reimbursement or Continuation Benefits provided during one calendar year shall not affect the expenses eligible for reimbursement or amount of Continuation Benefits provided during a subsequent calendar year (except with
respect to health plan maximums imposed on the reimbursement of expenses referred to in Code Section 105(b)), the right to reimbursement or Continuation Benefits may not be exchanged or substituted for other forms of compensation to Executive,
and any reimbursement or payment under the Continuation Benefits arrangements will be paid in accordance with applicable plan terms and no later than the last day of the calendar year following the calendar year in which Executive incurred the
expense giving rise to such reimbursement or payment.  

  
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 (iii) Forfeiture. Notwithstanding the foregoing, if Executive
breaches any provision of Section 12 hereof, the remaining balances of the Severance Payment, the Prorated Bonus, and any Continuation Benefits shall be forfeited. 

(c) Separation from Service. For purposes of this Agreement, the term “Separation from Service”
means a “separation from service” as such term is defined under Section 409A. The terms “terminate,” “termination,” “termination of employment,” and variations thereof, when used in this Agreement in
connection with Executive’s employment, are intended to mean a termination of employment that constitutes a Separation from Service. For purposes of the determination of whether Executive has had a “separation from service” as
described under Section 409A, the terms “Company,” “employer” and “service recipient” mean Peabody Energy Corporation and any affiliate with which Peabody Energy Corporation would be considered a single employer
under Code Section 414(b) or (c), provided that, in applying Code Section 1563(a)(1), (2), and (3) for purposes of determining a controlled group of corporations under Code Section 414(b), the language “at least
50 percent” is used instead of “at least 80 percent” each place it appears in Code Section 1563(a)(1), (2), and (3), and in applying Treasury Regulation Section 1.414(c)-2 for purposes of determining trades or
businesses (whether or not incorporated) that are under common control for purposes of Code Section 414(c), “at least 50 percent” is used instead of “at least 80 percent” each place it appears in Treasury
Regulation Section 1.414(c)-2. In addition, where the use of a definition of “Company,” “employer” or “service recipient” for purposes of determining a “separation from service” is based upon
legitimate business criteria, in applying Code Section 1563(a)(1), (2), and (3) for purposes of determining a controlled group of corporations under Code Section 414(b), the language “at least 20 percent” is used
instead of “at least 80 percent” each place it appears in Code Section 1563(a)(1), (2), and (3), and in applying Treasury Regulation Section 1.414(c)-2 for purposes of determining trades or businesses (whether or not
incorporated) that are under common control for purposes of Code Section 414(c), the language “at least 20 percent” is used instead of “at least 80 percent” each place it appears in Treasury
Regulation Section 1.414(c)-2. 
 (d) Good Reason. For purposes of this Agreement, the term
“Good Reason” means: 
 (i) a reduction, other than a reduction that generally affects all
similarly-situated executives and does not exceed ten percent (10%) in one year or fifteen percent (15%) in the aggregate over three (3) consecutive years, by the Company in Executive’s Base Salary from that in effect immediately
prior to the reduction (in which event the Severance Payment shall be calculated based on Executive’s Base Salary in effect immediately prior to any such reduction); 

(ii) a reduction, other than a reduction that generally affects all similarly-situated executives, by the Company in
Executive’s Bonus opportunity, maximum Bonus opportunity and Long-Term Incentive Award grant date value 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 

  
 8 

 
event any portion of the Severance Payment that relates to Bonus or Long-Term Incentive Awards shall be calculated based on the Bonus or Long-Term Incentive Award grant date value, as applicable,
in effect immediately prior to any such reduction); 
 (iii) a material reduction in the aggregate program of
employee benefits and perquisites to which Executive is entitled (other than a reduction that generally affects all executives); 
 (iv) relocation of Executive’s primary office by more than 50 miles from the location of Executive’s primary office as of the date of this Agreement; 

(v) any material diminution or material adverse change in Executive’s duties or responsibilities; 

(vi) a breach by the Company of a material provision of this Agreement; or 

(vii) 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. 

Any amounts due to Executive in connection with a termination of employment shall be computed without giving effect to any
changes that give rise to Good Reason. 
 6.3 Voluntary Termination by Executive; Discharge for Cause. 

(a) In the event that Executive’s employment is terminated (i) by the Company for Cause, as hereinafter defined,
in which event no advance written notice is required, or (ii) by Executive for a reason other than Good Reason, Disability or death, the Company shall pay to Executive only the Accrued Obligations. 

(b) As used herein, the term “Cause” means: 

(i) any material and uncorrected breach by Executive of the terms of this Agreement, including, but not limited to,
engaging in action in violation of Section 12 hereof; 
 (ii) any willful fraud or dishonesty of Executive
that has a material detrimental effect on (A) the reputation or business of the Company or any of its subsidiaries or affiliates or (B) Executive’s reputation or performance of his or her duties to the Company or any of its
subsidiaries or affiliates; 
 (iii) a deliberate or willful refusal or failure of Executive to comply with any
major corporate policy of the Company which is communicated to Executive in writing; or 

  
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 (iv) Executive’s conviction of, or plea of nolo contendere to,
any felony if such conviction results in his or her imprisonment or has a material detrimental effect on the reputation or business of the Company or any of its subsidiaries or affiliates; 

provided that with respect to clause (i) or (iii) above, Executive shall have ten (10) days following written notice
of the conduct which is the basis for the potential termination for Cause within which to cure such conduct to prevent termination for Cause by the Company. If Executive cures the conduct that is the basis for the potential termination for Cause
within such ten (10)-day period, the Company’s notice of termination shall be deemed withdrawn. Except for violations of Section 12 hereof or termination under Section 6.3(b)(iv) above, only actions, conduct and events occurring
during the Term of Employment or any Renewal Period with the Company shall be the subject of a termination for Cause. In the event that Executive is terminated for failure to meet performance goals, such termination shall be considered a termination
without Cause for purposes of his or her right to receive the Severance Payment, the Prorated Bonus and the Continuation Benefits. 
 6.4 Disability. 
 (a) In the event of the Disability (as
defined in (b) below) of Executive during the Term of Employment or any Renewal Period, the Company may terminate Executive’s employment upon written notice to Executive (or Executive’s personal representative, if applicable)
effective upon the date of receipt thereof (the “Disability Commencement Date”). The Company shall pay to Executive (i) the Accrued Obligations as provided in Section 6.1 hereof and (ii) any unpaid Bonus earned by the
Executive with respect to the year immediately preceding the year of termination and the Prorated Bonus, with such bonuses 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 Executive’s employment terminated. 
 (b) The term
“Disability,” for purposes of this Agreement, generally shall mean Executive’s absence from the full-time performance of Executive’s duties pursuant to a reasonable determination made in accordance with the Company’s
long-term disability plan that Executive is disabled and entitled to long-term disability benefits as a result of incapacity due to physical or mental illness that lasts, or is reasonably expected to last, for at least six (6) months.

 6.5 Death. In the event of Executive’s death during the Term of Employment or any Renewal Period or at any time
thereafter while payments are still owing to Executive under the terms of this Agreement, the Company shall pay to Executive’s beneficiary(ies) (to the extent so designated by Executive) or his estate (to the extent that no such beneficiary has
been designated) (a) the Accrued Obligations as provided in Section 6.1 hereof and (b) any unpaid Bonus earned by the Executive with respect to the year immediately preceding the year of termination and the Prorated Bonus, with such
bonuses 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 Executive’s employment terminated. 

  
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 6.6 No Further Notice or Compensation or Damages. Executive understands and agrees
that he or she shall not be entitled to any further notice, compensation or damages upon termination of employment under this Agreement, other than amounts specified in Section 4, this Section 6, any ancillary documents or any plan,
program or arrangement of the Company. 
 6.7 Executive’s Duty to Provide Materials. Upon the termination of
Executive’s employment for any reason, Executive or his or her 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 subsidiaries or affiliates, that may be in Executive’s possession or under his or her control, including, without limitation, any “soft”
copies or computerized or electronic versions thereof. 
 7. Notices. All notices or communications hereunder shall
be in writing, addressed as follows: 
 To the Company: 
 Chairman and Chief Executive Officer 
 Peabody Energy Corporation 

701 Market Street, Suite 900 
 St. Louis, Missouri 63101-1826 
 To Executive 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. 
 8. 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. 

9. Assignment. Neither this Agreement nor any rights or obligations hereunder shall be assignable or otherwise subject to
hypothecation by Executive (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 the heirs and representatives of Executive and the permitted assigns and successors of
the Company. 
 10. Amendment. This Agreement may be amended only by written agreement of the parties hereto.

  
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 11. Code Section 409A Compliance. 

11.1 This Agreement is intended to comply with Section 409A and shall, to the extent practicable, be construed in accordance
therewith. Accordingly, notwithstanding anything in this Agreement to the contrary, if the Company determines that Executive is a “specified employee” (as defined in Code Section 409A(a)(2)(B)(i)) at the time of his or her Separation
from Service and any amount payable to Executive under this Agreement is a deferral of compensation subject to the additional tax described in Code Section 409A(a)(1)(B) and would be considered a payment upon Executive’s Separation from
Service, then such amount shall not be paid before the date that is the earlier of (a) six (6) months and one (1) day after Executive’s Separation from Service or (b) Executive’s death (the “Delay
Period”). Upon the expiration of the Delay Period, the initial payment following the Delay Period shall include a lump sum payment equal to those payments that otherwise would have been paid if the delay had not applied, and any remaining
payments due shall be payable in accordance with their original payment schedule. 
 11.2 If either party to this Agreement
reasonably determines that any amount payable pursuant to this Agreement would result in adverse tax consequences under Section 409A (including, but not limited to, the additional tax described in Code Section 409A(a)(1)(B)), then such
party shall deliver written notice of such determination to the other party, and the parties hereby agree to work in good faith to amend this Agreement so it (i) is exempt from, or compliant with, the requirements of Section 409A and
(ii) preserves as nearly as possible the original intent and economic effect of the affected provisions. 

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

12.1 Executive, during the Term of Employment or any Renewal Period and thereafter, will not, directly or indirectly, use for himself or
herself or use for, or disclose to, any party other than the Company, or any subsidiary of the Company (other than in the ordinary course of Executive’s duties for the benefit of the Company or any subsidiary of the Company), any secret or
confidential information regarding the business or property of the Company or its subsidiaries or regarding any secret or confidential apparatus, process, system, or other method at any time used, developed, acquired, discovered or investigated by
or for the Company or its subsidiaries, whether or not developed, acquired, discovered or investigated by Executive. At the termination of Executive’s employment or at any other time the Company or any of its subsidiaries may request, Executive
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 Executive concerning the business or properties of the Company or its subsidiaries or any secret or confidential product, apparatus or process used developed, acquired or investigated by the Company or its
subsidiaries. 
 12.2 In consideration of the Company’s obligations under this Agreement, Executive agrees that during the
Term of Employment or any Renewal Period and (a) for a period of one (1) year thereafter, without the prior written consent of the Chairman and CEO, he or she shall 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 

  
 12 

 
in or have any financial interest in, any entity which is in competition with the business of the Company or its subsidiaries; provided, however, that this clause (a) shall not apply if the
Company does not renew this Agreement and terminates Executive’s employment and Executive does not receive severance benefits from the Company; and (b) for a period of two (2) years thereafter, without the prior written consent of the
Chairman and CEO, he or she shall not, on his or her 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 subsidiaries at any time
during the twelve (12) months immediately preceding such solicitation. 
 12.3 For purposes of this Section 12, an
entity shall be deemed to be in competition with the Company if it is principally involved in the purchase, sale or other dealing in any property or the rendering of any service purchased, sold, dealt in or rendered by the Company as a part of the
business of the Company within the same geographic area in which the Company effects such sales or dealings or renders such services. Notwithstanding this Section 12.3 or Section 12.2, nothing herein shall be construed so as to preclude
Executive from investing in any publicly or privately held company, provided that Executive’s 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. 
 12.4 Executive agrees
that the covenant not to compete and the covenant not to solicit are reasonable under the circumstances and will not interfere with his or her ability to earn a living or otherwise to meet his or her financial obligations. Executive 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. Executive agrees that any breach of the covenants contained in this Section 12 would irreparably injure the Company. Accordingly, Executive agrees that, in the event that
a court enjoins Executive from any activity prohibited by this Section 12, 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 and obtain an
injunction against Executive from any court having jurisdiction over the matter restraining any further violation of this Agreement by Executive. 
 13. Beneficiaries; References. Executive 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 Executive’s death, and may change such election, in either case by giving the Company written notice thereof. In the event of Executive’s death or a judicial determination of his or her incompetence,
reference in this Agreement to Executive shall be deemed, where appropriate, to refer to his or her beneficiary, estate or other legal representative. Any reference to the masculine gender in this Agreement shall include, where appropriate, the
feminine. 
 14. Dispute Resolution. Any dispute or controversy arising under or in connection with this Agreement
(other than an action to enforce the covenants in Section 12 hereof) or any ancillary documents shall be resolved by arbitration in St. Louis, Missouri. Three arbitrators shall be selected, and arbitration shall be conducted, in accordance with
the rules of the American 

  
 13 

 
Arbitration Association. The arbitrators shall have the discretion to award the cost of arbitration, arbitrators’ fees and the respective attorneys’ fees of each party between the
parties as they see fit. Notwithstanding anything in this Section 15 to the contrary, payments made under this Section 15 that are provided during one calendar year shall not affect the amount of such payments provided during a subsequent
calendar year, payments under this Section 15 may not be exchanged or substituted for other forms of compensation to Executive, and any such payment will be paid within sixty (60) days after Executive prevails, but in no event later than
the last day of Executive’s taxable year following the taxable year in which he or she incurred the expense giving rise to such payment.  
 15. Governing Law. This Agreement shall be construed, interpreted and governed in accordance with the laws of the State of Missouri, without reference to rules relating to conflicts of law.

 16. Effect on Prior Agreements. This Agreement and any ancillary documents contain the entire understanding
between the parties hereto and this Agreement, except as provided in an ancillary document, supersedes in all respects any prior or other agreement or understanding, written or oral, between the Company, any affiliate of the Company or any
predecessor of the Company or affiliate of the Company and Executive. 
 17. Withholding. The Company shall be
entitled to withhold from payments to or on behalf of Executive any amount of tax withholding required by law. 

18. Currency. All dollar amounts or references contained in this Agreement and any ancillary document refer to the United
States dollar. 
 19. Survival. Notwithstanding the expiration of the term of this Agreement, the applicable
provisions of this Agreement (such as Sections 5 through 20) shall remain in effect as long as is reasonably necessary to give effect thereto in accordance with the terms hereof. 

20. Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed an original.

 [SIGNATURE PAGE FOLLOWS] 

  
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	PEABODY ENERGY CORPORATION
		
	By:	 	/s/ Sharon D. Fiehler
	 Name:  Sharon D. Fiehler

	 Title:    Executive Vice President and Chief    Administrative
Officer

	
	EXECUTIVE
	
	/s/ Christopher J. Hagedorn
	Christopher J. Hagedorn

  
 15

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