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Exhibit 10.1    
  

EMPLOYMENT AGREEMENT  

        EMPLOYMENT AGREEMENT made and entered into as of the 1st day of October, 2002, by and between Aquila, Inc. (the "Company"), a Delaware corporation, and
Richard C. Green, Jr. (the "Executive") (certain capitalized terms used herein being defined in Section 12). 

        WHEREAS,
the Executive is currently serving as Chairman of the Company, and the Company desires to secure the continued employment of the Executive as Chairman, Chief Executive Officer
of the Company in accordance herewith; 

        WHEREAS,
the Executive is willing to commit himself to be employed by the Company on the terms and conditions herein set forth and thus to forego opportunities elsewhere; and 

        WHEREAS,
the parties desire to enter into this Agreement, as of the Effective Date, setting forth the terms and conditions for the employment relationship of the Executive with the
Company during the Employment Period. 

        NOW,
THEREFORE, IN CONSIDERATION of the mutual premises, covenants and agreements set forth below, it is hereby agreed as follows: 

	1.
	Employment and Term. 

        (a)    Employment. The Company agrees to employ the Executive, and the Executive agrees to be employed by the Company, in
accordance with the terms and provisions of this Agreement during the Employment Period. 

        (b)    Term. The term of this Agreement shall commence as of the date hereof (the "Effective Date") and, subject to earlier
termination pursuant to Section 4, shall continue until the date that is the third anniversary of the Effective Date (the "Initial Term"); provided, however, that on each anniversary of the
Effective Date the term of this Agreement shall automatically be extended by one year (the Initial Term and each such three-year period commencing after each such anniversary, subject to
such earlier termination, the "Employment Period"), unless at least sixty days prior to such anniversary the Company or the Executive shall have given written notice that this Agreement shall not be
extended, in which case the Employment Period shall terminate on the date that is two years following such anniversary. 

	2.
	Duties and Powers of Executive. 

        (a)    Position; Location. During the Employment Period, the Board shall use its best efforts to elect the Executive as Chairman
of the Board and the Executive shall serve as Chairman of the Board (if so elected) and as Chief Executive Officer and President of the Company and perform such duties and services appertaining to
such positions as reasonably directed by the Board. The Executive's services shall be performed primarily at the Company's headquarters which shall be located in the Kansas City metropolitan area. 

        (b)    Board Membership. The Executive is currently a member of the Board, and the Board shall propose the Executive for
re-election to the Board throughout the Employment Period. 

        (c)    Attention. During the Employment Period, and excluding any periods of vacation and sick leave to which the Executive is
entitled, the Executive shall devote reasonable attention and time during normal business hours to the business and affairs of the Company and, to the extent necessary to discharge the
responsibilities assigned to the Executive under this Agreement, shall use his reasonable best efforts to carry out such responsibilities faithfully and efficiently. It shall not be considered a
violation of the foregoing for the Executive to serve on corporate, industry, civic or charitable boards or committees, so long as such activities do not significantly interfere 

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with the performance of the Executive's responsibilities as an employee of the Company in accordance with this Agreement. 

	3.
	Compensation. The Executive shall receive the following compensation for his services hereunder to the Company: 

        (a)    Salary. Executive's annual base salary ("Annual Base Salary") will initially be his annual base salary as in effect
immediately prior to the Effective Date, payable in accordance with the Company's general payroll practices in effect from time to time. During the Employment Term the Committee shall review the
Annual Base Salary at least annually for possible discretionary adjustment. Any increase or decrease in the Annual Base Salary shall not serve to limit or reduce, or to increase, any other obligation
of the Company under this Agreement. 

        (b)    Incentive Compensation. During the Employment Period, the Executive shall participate in the Company's
short-term incentive compensation plans and long-term incentive compensation plans in accordance with the terms thereof and on the same basis as other senior executive officers
of the Company. 

        (c)    Retirement and Welfare Benefit Plans. In addition to the benefits available under Section 3(b), during the
Employment Period the Executive shall be eligible to participate in all other savings, retirement and welfare plans, practices, policies and programs applicable generally to employees and/or senior
executive officers of the Company and its subsidiaries in accordance with the terms thereof, except with respect to any benefits under any plan, practice, policy or program to which the Executive has
waived his rights in writing. 

        (d)    Insurance. During the Employment Period, the Company shall provide the Executive with life insurance coverage providing a
death benefit to such beneficiary or beneficiaries as the Executive may designate of three times his Annual Base Salary. 

        (e)    Expenses. The Company shall reimburse the Executive for all documented expenses, including those for travel and
entertainment, properly incurred by him in the performance of his duties hereunder, subject to any reasonable policies established from time to time by the Board. 

        (f)    Fringe Benefits. During the Employment Period and so long as the Executive is employed by the Company, he shall be
entitled to receive fringe benefits in accordance with the plans, practices, programs and policies of the Company from time to time in effect, commensurate with his position and in accordance with the
terms thereof, on the same basis as other senior executive officers of the Company. 

	4.
	Termination of Employment. 

        (a)    Death. The Executive's employment shall terminate automatically upon the Executive's death during the Employment Period. 

        (b)    By the Company for Cause. The Company may terminate the Executive's employment during the Employment Period for Cause. 

        (c)    By the Company without Cause. Notwithstanding any other provision of this Agreement, the Company may terminate the
Executive's employment for any reason other than for Cause during the Employment Period, but only upon the affirmative vote of two-thirds of the membership of the Board. 

        (d)    By the Executive for Good Reason. The Executive may terminate his employment during the Employment Period for Good
Reason. 

        (e)    By the Executive without Good Reason. The Executive may terminate his employment for any reason other than Good Reason
during the Employment Period. 

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        (f)    Notice of Termination. Any termination of Executive's employment during the Employment Period by the Company for any
reason, or by the Executive for Good Reason, shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 13(b) of this Agreement. For purposes of
this Agreement, a "Notice of Termination" means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets
forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive's employment under the provision so indicated, and (iii) if the Date of
Termination is other than the date of receipt of such notice, specifies the termination date (which date shall not be more than 30 days after the giving of such notice). The failure by the
Executive or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive or the
Company hereunder or preclude the Executive or the Company from asserting such fact or circumstance in enforcing the Executive's or the Company's rights hereunder. 

	5.
	Obligations of the Company Upon Certain Events. 

        (a)    Right to Certain Awards. (i) In the event that a Change Separation Event, a Separation Event or other termination
of employment occurs during the Employment Period, Executive shall be entitled to receive from the Company the relevant benefits as described in Section 5(b), (c) or (d), as the case may
be. 

        (ii)    (A)
In the event that a Change in Control occurs during the Employment Period all stock options, stock appreciation rights, restricted stock, or other awards
(collectively, "Awards") then held by Executive pursuant to the provisions of any of the Company's stock or option plans or any successor plans (each, a "Stock Plan") shall become immediately vested,
nonforfeitable and exercisable as of the date of the Change in Control and remain exercisable until the expiration date of such award, any termination of employment notwithstanding. 

        (B)    In
the event that a Separation Event occurs during the Employment Period all Awards held by Executive shall continue to vest as if Executive continued to be employed and
may be exercised, to the extent exercisable, through, and shall terminate on the earlier of (x) the expiration date of such Award, any termination of employment notwithstanding, and
(y) if applicable, the third anniversary of the last day of the Employment Period.

        (b)    Benefits upon a Change Separation Event. Executive shall be entitled to the following benefits upon a Change Separation
Event: 

        (i)    the
Accrued Benefits; 

        (ii)    the
Accrued Compensation; 

        (iii)    the
Severance Benefits, payable in a lump sum within 30 days of the Date of Termination; 

        (iv)    the
Basic Bonus Amount; 

        (v)    the
Long-Term Incentive Amount; 

        (vi)    except
to the extent provided in Section 7(b), the Additional Benefits; and 

        (vii)    the
Outplacement Services. 

        (c)    Benefits upon a Separation Event. Executive shall be entitled to the following benefits upon a Constructive or Separation
Event: 

        (i)    the
Accrued Benefits; 

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        (ii)  the
Accrued Compensation; 

        (iii)  the
Severance Benefits, payable in equal installments over the Payment Period in accordance with the Company's general payroll practices; 

        (iv)  the
Basic Bonus Amount; 

        (v)  the
Long-Term Incentive Amount; 

        (vi)  except
to the extent provided in Section 7(b), the Additional Benefits; and 

	(vii)
	the
Outplacement Services. 

        (d)    Upon
Executive's voluntary termination of employment other than for Good Reason, or upon termination of the Executive's employment for Cause, death or Disability,
Executive shall be entitled to: 

        (i)    the
Accrued Compensation; and 

        (ii)    the
Accrued Benefits. 

        6.    Nonexclusivity of Rights. Nothing in this Agreement shall prevent or limit the Executive's continuing or future
participation in any benefit, plan, program, policy or practice provided by the Company and for
which the Executive may qualify (except with respect to any benefit to which the Executive has waived his rights in writing), nor shall anything herein limit or otherwise affect such rights as the
Executive may have under any other contract or agreement entered into after the Effective Date with the Company. Amounts which are vested benefits or which the Executive is otherwise entitled to
receive under any benefit, plan, policy, practice or program of, or any contract or agreement entered into with, the Company shall be payable in accordance with such benefit, plan, policy, practice or
program or contract or agreement except as explicitly modified by this Agreement. 

        7.    Full Settlement; Mitigation; Legal Fees; Arbitration. The Company's obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may
have against the Executive or others. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts (including amounts for damages
for breach) payable to the Executive under any of the provisions of this Agreement and, except as provided in Section 7(b) hereof, such amounts shall not be reduced whether or not the Executive
obtains other employment. 

        (b)    In
the event that following the Employment Period the Executive becomes eligible for health and welfare plan benefits under the plans of another employer, the Company
health and welfare benefits provided as Additional Benefits under Section 5 hereof shall be secondary. 

        (c)    In
the event of a Change Separation Event, the Company shall pay all legal fees, costs of litigation, prejudgment interest, and other expenses which are reasonably
incurred by the Executive as a result of the Company's refusal to provide any benefits or other amounts payable in accordance herewith, unless Executive's claim has been determined by a court of
competent jurisdiction to have been frivolous. In addition to the foregoing, the Company shall reimburse Executive for his legal fees reasonably incurred in the negotiation of this Agreement in an
amount not to exceed $8,000. 

        (d)    Executive
and the Company agree that if a dispute arises out of or is related to this Agreement or Executive's employment by the Company, other than a dispute regarding
the obligations under Sections 8 or 9, such dispute shall, if not earlier resolved by negotiations of the parties, be submitted to binding arbitration under the Employment Section Rules of the
American Arbitration Association, or the mutually agreed equivalent. Either party may provide written notice 

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to the other party that the dispute is not able to be resolved by negotiation and such notifying party shall then contact the American Arbitration Association for appointment of an arbitrator to
resolve such dispute. Any arbitration hearing shall take place in Kansas City, Missouri. In addition to all other remedies otherwise available to the Company or Executive, the Company and Executive
shall have the right to injunctive relief to restrain and enjoin any actual or threatened breach by the other party of any provisions of Sections 7(d), 8 or 9. 

        8.    Confidential Information. The Executive shall hold in a fiduciary capacity for the benefit of the Company all secret,
confidential information, knowledge or data relating to the Company or any of its affiliated companies, and their respective businesses, which shall have been obtained by the Executive during the
Executive's employment by the Company or any of its affiliated companies and that shall not have been or now or hereafter have become public knowledge (other than by acts by the Executive or
representatives of the Executive in violation of this Agreement). During the Employment Period and thereafter, the Executive shall not, without the prior written consent of the Company or as may
otherwise be required by law or legal process, communicate or divulge any such information, knowledge or data to anyone other than the Company and those designated by it. 

        9.    Non-Competition and Non-Solicitation. Executive acknowledges that he will forfeit all rights under
this Agreement if, during the Employment Period, and for a period of three years thereafter: (x) Executive directly or indirectly, owns, manages, operates, controls, is employed by, performs
services for, consults with, solicits business for, participates in, or is connected with the ownership, management, operation, or control of any business that is either directly or indirectly
competitive with the products or services of the Company; or (y) Executive, directly or indirectly, for himself or for any other person, firm, corporation, partnership, association or other
entity, induce employees, customers or suppliers of the Company or any affiliate thereof, to terminate their relationships with the Company or attempt to enter into any contractual arrangement with
any employee, former employee, customer or former customer of the Company or any affiliate thereof. 

        10.  Successors. 

        (a)    Assignment by Executive. This Agreement is personal to the Executive and without the prior written consent of the Company
shall not be assignable by the Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive's legal
representatives. 

        (b)    Successors and Assigns of Company. This Agreement shall inure to the benefit of and be binding upon the Company, its
successors and assigns. 

        (c)    Assumption. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company
would be required to perform it if no such succession had taken place. As used in this Agreement, "Company" shall mean the Company as hereinbefore defined and any successor to its businesses and/or
assets as aforesaid that assumes and agrees to perform this Agreement by operation of law, or otherwise. 

        11.    Certain Tax Reimbursement Payments. (a) Gross-Up
Payment. Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment or distribution to or for the benefit of the Executive
whether paid or payable or distributed or distributable pursuant to the
terms of this Agreement (other than any payment under this Section 11) or otherwise would be subject to the excise tax imposed by Section 4999 of the Code or a similar section (such
payment, a "Change in Control Payment" and such excise tax on all such Change in Control Payments, together with any interest and penalties thereon, collectively the "Excise Tax"), then the Executive
shall be entitled to receive an additional payment (a "Gross-Up Payment") in an amount determined by the Accounting 

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Firm such that after payment by the Executive of any tax thereon the Executive retains an amount of the Gross-Up Payment equal to the amount of the Excise Tax; provided, however, that if
the aggregate value (as determined under Section 280G of the Code) of Change in Control Payments is less than 110% of the product of "3 times" the Executive's "base amount" (as defined in
Section 280G(b)(3) of the Code) (such product, the "Golden Parachute Threshold"), then the Executive shall not be entitled to any Gross-Up Payment and, instead, the Change in
Control Payments shall be reduced so that their aggregate value (as so determined) is equal to $1.00 less than the Golden Parachute Threshold. 

        For
purposes of this Section 11(a), Executive's applicable Federal, state and local taxes shall be computed at the maximum marginal rates, taking into account the effect of any
loss of personal exemptions resulting from receipt of the Gross-Up Payment. 

        (b)    Determinations. All determinations required to be made under this Section 11, including whether a
Gross-Up Payment is required under Section 11(a), and the assumptions to be used in determining the Gross-Up Payment, shall be made by KPMG LLP, or such other firm as
the Company may designate in writing prior to a Change in Control (the "Accounting Firm"), which shall provide detailed supporting calculations both to the Company and Executive within twenty business
days of the receipt of notice from Executive that there has been a Change in Control, or such earlier time as is requested by the Company. In the event that the Accounting Firm is serving as
accountant or auditor for the Person effecting the Change in Control or is otherwise unavailable, Executive may appoint another nationally recognized accounting firm to make the determinations
required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the Company. 

        (c)    Subsequent Redeterminations. Executive agrees (unless requested otherwise by the Company) to use reasonable efforts to
contest in good faith any subsequent determination by the Internal Revenue Service that Executive owes an amount of Excise Tax greater than the amount determined pursuant to Section 11(b)
provided, that Executive shall be entitled to reimbursement by the Company of all fees and expenses reasonably incurred by Executive in contesting such determination. In the event the Internal Revenue
Service or any court of competent jurisdiction determines that Executive owes an amount of Excise Tax that is either greater or less than the amount previously taken into account and paid under this
Section 11, the Company shall promptly reimburse Executive, or Executive shall promptly reimburse the Company, as the case may be, the amount of such excess or shortfall. In the case of any
payment that the Company is required to make to Executive pursuant to the preceding sentence (a "Later Payment"), the Company shall also reimburse Executive an additional amount such that after
payment by Executive of all of Executive's applicable Federal, state and local taxes, including any interest and penalties assessed by any taxing authority, on such additional amount, Executive will
retain an amount equal to the total of Executive's applicable Federal, state and local taxes, including any interest and penalties assessed by any taxing authority, arising due to the Later Payment.
In the case of any reimbursement of Excise Tax that Executive is required to make to the Company pursuant
to the second sentence of this Section 11(c), Executive shall also reimburse the Company the amount of any additional payment received by Executive from the Company in respect of applicable
Federal, state and local taxes on such repaid Excise Tax, to the extent Executive is entitled to a refund of (or has not yet paid) such Federal, state or local taxes. 

        12.    Certain Definitions.

        "Accounting Firm" has the meaning accorded such term in Section 11 hereof. 

        "Accrued Benefits" means any benefits earned or accrued by Executive for the period through and including the Date of Termination under
any employee benefit plans and arrangements maintained by the Company, in accordance with the terms of such plans and arrangements, except as modified herein, including, without limitation, his
accrued and vested benefits under the Company's qualified and non-qualified pension and retirement plans. 

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        "Accrued Compensation" means a lump sum in cash payable within 30 days after the Date of Termination in an amount equal to
Executive's earned but unpaid Annual Base Salary and other earned but unpaid cash entitlements for the period through and including the Date of Termination, including any previously deferred cash
compensation, unused earned and accrued vacation pay and unreimbursed documented business expenses. 

        "Additional Benefits" means continued participation in the Company's Medical Plans for three years following the Date of Termination on
the terms and conditions in effect immediately prior to such Date. 

        "Affiliate" and "Associate" have the respective meanings accorded to such terms in
Rule 12b-2 under the Exchange Act as in effect on the Effective Date. 

        "Annual Base Salary" has the meaning accorded such term in Section 3 hereof. 

        "Awards" has the meaning accorded such term in Section 5 hereof. 

        "Award Termination Date" has the meaning accorded such term in Section 5 hereof. 

        "Basic Bonus Amount" means an amount payable within 30 days after the Date of Termination, equal to Executive's target annual bonus
opportunity for the year in which Executive's employment terminates times a fraction, the numerator of which is the number of days in such year ending on the Date of Termination and the denominator of
which is 365. 

        "Beneficial Ownership". A Person shall be deemed the "Beneficial Owner" of, and shall be deemed to "beneficially own" securities pursuant
to Rule 13d-3 under the Exchange Act as in effect on the Effective Date. 

        "Board" means the Board of Directors of the Company. 

        "Cause" means Executive's: 

        (i)    conviction
of a (x) felony or (y) crime involving, fraud or dishonesty; 

        (ii)    material
failure to perform substantially all of his duties; 

        (iii)  willful
misconduct in the performance of his duties; or any 

        (iv)  material
breach of the Employment Agreement by the executive; 

provided,
however, in the case of (ii)-(iv) Executive shall be entitled to prior written notice of any such breach and the opportunity to cure or rebut any such breach during the 30 days
following such notice. 

        "Change in Control" means, and shall be deemed to have occurred upon any occurrence of any of the following events: 

        (a)    Any
Person (other than an Excluded Person) acquires, together with all Affiliates and Associates of such Person, Beneficial Ownership of securities representing 20% or
more of the combined voting power of the Securities of the Company entitled to vote for members of the Board the Voting Stock
then outstanding, unless such Person acquires Beneficial Ownership of 20% or more of the combined voting power of the Voting Stock then outstanding solely as a result of an acquisition of Voting Stock
by the Company which, by reducing the Voting Stock outstanding, increases the proportionate Voting Stock beneficially owned by such Person (together with all Affiliates and Associates of such Person)
to 20% or more of the combined voting power of the Voting Stock then outstanding; provided, that if a Person shall become the Beneficial Owner of 20% or
more of the combined voting power of the Voting Stock then outstanding by reason of such Voting Stock acquisition by the Company and shall thereafter become the Beneficial Owner of any additional
Voting Stock which causes the proportionate voting power of Voting Stock beneficially owned by such Person to increase to 20% or more of the combined voting power of 

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the Voting Stock then outstanding, such Person shall, upon becoming the Beneficial Owner of such additional Voting Stock, be deemed to have become the Beneficial Owner of 20% or more of the combined
voting power of the Voting Stock then outstanding other than solely as a result of such Voting Stock acquisition by the Company; 

        (b)    During
any period of 36 consecutive months (not including any period prior to the Effective Date), individuals who at the beginning of such period constitute the Board
(and any new Director, whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the Directors then still in
office who either were Directors at the beginning of the period or whose election or nomination for election was so approved), cease for any reason to constitute a majority of Directors then
constituting the Board; 

        (c)    A
reorganization, merger or consolidation of the Company is consummated, in each case, unless, immediately following such reorganization, merger or consolidation,
(i) more than 50% of, respectively, the then outstanding shares of common stock of the corporation resulting from such reorganization, merger or consolidation and the combined voting power of
the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of
the individuals and entities who were the beneficial owners of the Voting Stock outstanding immediately prior to such reorganization, merger or consolidation, (ii) no Person (but excluding for
this purpose any Excluded Person and any Person beneficially owning, immediately prior to such reorganization, merger or consolidation, directly or indirectly, 20% or more of the voting power of the
outstanding Voting Stock) beneficially owns, directly or indirectly, 20% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such reorganization,
merger or consolidation or the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors and (iii) at least a
majority of the members of the board of directors of the corporation resulting from such reorganization, merger or consolidation were members of the Board at the time of the execution of the initial
agreement providing for such reorganization, merger or consolidation; or 

        (d)    The
shareholders of the Company approve (i) a complete liquidation or dissolution of the Company or (ii) the sale or other disposition of more than 50% of
all of the assets of the Company, other than to any corporation with respect to which, immediately following such sale or other disposition, (A) more than 50% of, respectively, the then
outstanding shares of common stock of such corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of
directors is then beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial owners of the Voting Stock outstanding immediately prior to such sale or other disposition of assets, (B) no Person
(but excluding for this purpose any Excluded Person and any Person beneficially owning, immediately prior to such sale or other disposition, directly or indirectly, 20% or more of the voting power of
the outstanding Voting Stock) beneficially owns, directly or indirectly, 20% or more of, respectively, the then outstanding shares of common stock of such corporation or the combined voting power of
the then outstanding voting securities of such corporation entitled to vote generally in the election of directors and (C) at least a majority of the members of the board of directors of such
corporation were members of the Board at the time of the execution of the initial agreement or action of the Board providing for such sale or other disposition of assets of the Company. 

Notwithstanding
the foregoing, in no event shall a "Change in Control" be deemed to have occurred (i) as a result of the formation of a Holding Company, or (ii) with respect to
Executive, if Executive is part of a "group," within the meaning of Section 13(d)(3) of the Exchange Act as in effect on the Effective Date, which consummates the Change in Control transaction.
In addition, for purposes of the definition of "Change in Control" a Person engaged in business as an underwriter of securities shall 

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not be deemed to be the "Beneficial Owner" of, or to "beneficially own," any securities acquired through such Person's participation in good faith in a firm commitment underwriting until the
expiration of forty days after the date of such acquisition. 

        "Change in Control Payment" has the meaning accorded such term in Section 11 hereof. 

        "Change Separation Event" means any of the following events: 

        (A)    The
involuntary termination of Executive's employment by the Company during the 24-month period following a Change in Control other than (x) for
Cause, or (y) by reason of Executive's death or Disability; or 

        (B)    Executive's
voluntary termination of employment for Good Reason during the 24-month period following a Change in Control provided that Executive's
termination occurs within 90 days after the occurrence of the event constituting Good Reason. 

        "Code" means the Internal Revenue Code of 1986, as amended. 

        "Committee" means the Compensation Committee of the Board. 

        "Company" has the meaning accorded such term in the introductory clause hereof. 

        "Date of Termination" means (i) if the Executive's employment is terminated by the Company for Cause, or by the Executive for Good
Reason, the date specified in the Notice of Termination in accordance with the requirements of the applicable reason for such termination, (ii) if the Executive's employment is terminated by
the Company other than for Cause, the Date of Termination shall be the date on which the Company notifies the Executive of such termination, (iii) if the Executive's termination is voluntary
and without Good Reason, the Date of Termination shall be the date on which the Executive notifies the Company of such termination, and (iv) if the Executive's employment is terminated by
reason of death, the Date of Termination shall be the date of death. 

        "Disability" means the Executive's long-term disability as determined under the Disability Plan. 

        "Disability Plan" means the long-term disability plan (or any successor disability and/or survivorship plan adopted by the
Company) in which Executive participates, as in effect immediately prior to the relevant event (subject to changes in coverage levels applicable to all employees generally covered by such Plan). 

        "Effective Date" has the meaning accorded such term in Section 1 hereof. 

        "Employment Period" has the meaning accorded such term in Section 1 hereof. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        "Excise Tax" has the meaning accorded such term in Section 11 hereof. 

        "Excluded Person" means (i) the Company; (ii) any of the Company's Subsidiaries; (iii) any Holding Company;
(iv) any employee benefit plan of the Company, any of its Subsidiaries or a Holding Company; or (v) any Person organized, appointed or established by the Company, any of its Subsidiaries
or a Holding Company or pursuant to the terms of any plan described in clause (iv). 

        "Executive" has the meaning accorded such term in Section 1 hereof. 

        "Golden Parachute Threshold" has the meaning accorded such term in Section 11 hereof. 

        "Good Reason" means, without the Executive's written consent: 

        (i)    a
material, adverse reduction in the nature or scope of the Executive's office, position, duties, functions, responsibilities or authority from those offices, positions,
duties, functions, responsibilities or authority he occupies and enjoys as of the Effective Date; 

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        (ii)    a
material reduction of the executive's Annual Base Salary, incentive compensation opportunities or aggregate benefits unless such reduction is part of a policy,
program or arrangement applicable to other senior executives; 

        (iii)    a
relocation of more than 35 miles of the Company's by principal offices; provided such new location is farther from Executive's residence than the prior location; 

        (iv)    the
failure of a successor to assume, whether by operation of law or otherwise, the Company's obligations hereunder; 

provided,
however, that Good Reason shall not occur until the Executive shall have given the Company written notice of any claimed Good Reason and the Company shall have failed to cure the same during
the 30 days following such notice. 

        "Gross-Up Payment" has the meaning accorded such term in Section 11 hereof. 

        "Holding Company" means an entity that becomes a holding company for the Company or its businesses as a part of any reorganization,
merger, consolidation or other transaction, provided that the outstanding shares of common stock of such entity and the combined voting power of the then outstanding voting securities of such entity
entitled to vote generally in the election of directors is, immediately after such reorganization, merger, consolidation or other transaction, beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial owners, respectively, of the Voting Stock outstanding immediately prior to such reorganization, merger, consolidation or other
transaction in substantially the same proportions as their ownership, immediately prior to such reorganization, merger, consolidation or other transaction, of such outstanding Voting Stock. 

        "Initial Term" has the meaning accorded such term in Section 1 hereof. 

        "Later Payment" shall have the meaning accorded such term in Section 11 hereof. 

        "Long Term Incentive Amount" means an amount payable within 30 days after the Date of Termination equal to Executive's target
long-term incentive opportunity for the incentive or performance period in which Executive's employment terminates times a fraction, the numerator of which is the number of days in such
period ending on the Date of Termination, and the denominator of which is the total number of days in such period. 

        "Medical Plans" means the medical care plans (or any successor medical plans adopted by the Company) in which Executive participates, as
in effect immediately prior to the relevant event (subject to changes in coverage levels applicable to all employees generally covered by such Plans). 

        "Notice of Termination" has the meaning accorded such term in Section 4 hereof. 

        "Outplacement Services" means the services of a national executive outplacement service firm, the aggregate cost to the Company of which
shall not exceed $50,000 

        "Payment Period" means the 36 month period commencing on the Date of Termination. 

        "Pension Benefits" means benefits attributable to 3 years of additional credit for both age and service under the Company's
tax-qualified and non-qualified pension plans; provided that if applicable provisions of the Code prevent payments in respect of such credit under the Company's
tax-qualified pension plan, such payments shall be made under the Company's non-qualified pension plan. 

        "Person" means any individual, corporation, partnership, association, trust or any other entity or organization. 

        "Previous Contract" means the Employment Agreement between UtiliCorp United, Inc. dated November 6, 1996 and amended
September 11, 1998. 

10

 

        "Separation Event" means, other than during the 24-month period following a Change in Control, (A) the involuntary
termination of Executive's employment by the Company other than (x) for Cause or (y) by reason of Executive's death or Disability or (B) Executive's voluntary termination of
employment for Good Reason within 90 days after the occurrence of an event constituting Good Reason. 

        "Severance Benefits" means cash compensation equal to three (3) times the sum of the amounts set forth in clauses (A) and
(B) below: 

        (A)    Executive's
Base Salary as in effect immediately prior to a Change Separation Event or Separation Event, as the case may be; and 

        (B)    the
Executive's target annual bonus opportunity for the calendar year in which such Change Separation Event or Separation Event occurs, as the case may be. 

        "Stock Plan" has the meaning accorded such term in Section 5 hereof. 

        "Total Payments" has the meaning accorded such term in Section 11 hereof. 

        "Voting Stock" means the combined voting power of the securities of the Company entitled to vote for members of the Board. 

        13.    Miscellaneous. 

        (a)    Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Missouri,
without reference to its principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended,
modified, repealed, waived, extended or discharged except by an agreement in writing signed by the party against whom enforcement of such amendment, modification, repeal, waiver, extension or
discharge is sought. No person, other than pursuant to a resolution of the Board or a committee thereof, shall have authority on behalf of the Company to agree to amend, modify, repeal, waive, extend
or discharge any provision of this Agreement or anything in reference thereto. 

        (b)    Notices. All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the
other party or by registered or certified mail, return-receipt requested, postage prepaid, addressed, in either case, at the Company's headquarters or to such other address as either party shall have
furnished to the other in writing in accordance herewith. Notices and communications shall be effective when actually received by the addressee. 

        (c)    Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement. 

        (d)    Withholding. The Company may withhold from any amounts payable under this Agreement such federal, state or local taxes as
shall be required to be withheld pursuant to any applicable law or regulation. 

        (e)    No Waiver. The Executive's or the Company's failure to insist upon strict compliance with any provision hereof or any
other provision of this Agreement or the failure to assert any right the Executive or the Company may have hereunder, including, without limitation, the right of the Executive to terminate employment
for Good Reason pursuant to Section 4(d) of this Agreement, or the right of the Company to terminate the Executive's employment for Cause pursuant to Section 4(b) of this Agreement shall
not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement. 

        (f)    Equitable Remedies. Executive agrees that it would be impossible or inadequate to measure and calculate the Company's
damages from any breach of the covenants set forth in 

11

 

Sections 8 and 9. Accordingly, Executive agrees that if he breaches or threatens to breach any of such covenants, the Company will have available, in addition to any other right or remedy available,
the right to obtain an injunction from any court of competent jurisdiction restraining such breach or threatened breach and to specific performance of any such provision of this Agreement. Executive
further agrees that no bond or other security will be required in obtaining such equitable relief, and hereby consents to the issuance of such injunction and to the ordering of specific performance.
Executive hereby acknowledges that any breach of any of such covenants shall entitle the Company to cease (i) the payment to him of any amounts otherwise required to be paid and (ii) the
vesting of any equity interest that Executive may have in the Company. 

        (g)    Entire Agreement. This instrument contains the entire agreement of the Executive, the Company or any predecessor or
subsidiary thereof with respect to the subject matter hereof, and may be modified only by a writing signed by the parties hereto. Except to the extent provided by Section 6, all promises,
representations, understandings, arrangements and prior agreements including, without limitation, the Previous Contracts between the Executive and the Company, are merged herein and superseded hereby. 

        IN
WITNESS WHEREOF, the Executive and, pursuant to due authorization from its Board of Directors, the Company have caused this Agreement to be executed as of the day and year first above
written. 

	 	 	AQUILA, INC.
	

 	
 	

By:	

 
	 	 	 	/s/  HERMAN CAIN      
 Name: Herman Cain

Title: Chairman of Compensation Committee
	

 	
 	

 	

 
	 	 	/s/  RICHARD C. GREEN, JR.      
 Richard C. Green, Jr.

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QuickLinks

Exhibit 10.1QuickLinks
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Exhibit 10.2    
  

AGREEMENT  

        This AGREEMENT (the "Agreement") is entered into as of the
1st day of October, 2002 by and between Aquila, Inc., a Delaware corporation ("Aquila"; unless otherwise specifically indicated to
the contrary, the term "Aquila" shall be deemed to include each of Aquila's subsidiaries, other Affiliates (as the term "Affiliates" is defined by Rule 12b-2 under the Securities
Exchange Act of 1934, as amended, and any other entity in which Aquila has a direct or indirect ownership interest); the execution of this Agreement by Aquila shall be deemed to be legally binding
upon Aquila and each of Aquila's subsidiaries and other Affiliates)) and Robert K. Green ("You") (Aquila and You are sometimes referred to herein individually as a "Party" and collectively as the
"Parties"). 

Recitals  

        WHEREAS, major changes have taken place in the operating environment in which Aquila conducts its business that were not caused by Aquila or You but which
nevertheless required Aquila to exit the wholesale energy marketing and trading business, sell significant assets and make other fundamental changes in its business in order to enhance its liquidity,
improve its access to capital resources and stabilize and improve its results of operations through, among other actions, taking steps to reduce costs, streamline the organizational structure and
obtain efficiencies in its operations generally; 

        WHEREAS,
You became Aquila's Chief Executive Officer on January 1, 2002, and You have been willing to continue to be employed by Aquila as an officer through the Resignation Date
(as hereinafter defined) in order to guide Aquila through these difficult changes and have been instrumental in preserving the highest credit rating realistically available to Aquila while undergoing
these changes and conducting its business in the present highly challenging operating environment; 

        WHEREAS,
there has been a mutual recognition by You and Aquila of the need to reorganize and streamline Aquila's executive management structure to address the changes to Aquila's
business and achieve a significant reduction in operating expenses and, in consideration of this Agreement, You will resign Your positions with Aquila as provided in Section 1 hereof and forego
your rights under Your existing employment agreement with Aquila, dated November 6, 1996 and amended on September 4, 1998 (the "Prior Agreement"), in order to assist Aquila in realizing
these goals; 

        WHEREAS,
Aquila desires to retain the benefit of Your knowledge of Aquila's business and industry and Your management and other skills for a period of eighteen months following the
Resignation Date (as hereafter defined) by establishing the arrangement set forth in this Agreement in order to facilitate a successful transition to the new management structure, assist with various
initiatives, special projects and challenges, in each case, upon the terms and conditions of this Agreement; 

        WHEREAS,
Section 9 of Your Employment Agreement provides for a forfeiture of benefits thereunder if you engage in certain competitive activities and you are willing to extend the
length of your non-competition covenant for an additional three years; 

        WHEREAS,
in consideration for the respective benefits to be received by the Parties under this Agreement, (i) You desire to release Aquila from any and all current or potential
liability arising out of or in connection with Your employment with Aquila and Your Prior Agreement and the termination of your employment as provided herein, and (ii) Aquila desires to release
You from any and all current or potential liability to Aquila arising out of or in connection with Your service as an officer and director of Aquila, Your ownership of Aquila securities, Your
employment with Aquila and the termination 

1

 

thereof and of Your Prior Employment Agreement, in each case upon the terms and subject to the conditions set forth in this Agreement. 

        NOW
THEREFORE, in consideration of the foregoing premises and the legally binding obligations hereinafter set forth, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties represent, warrant and agree as follows: 

        1.    Resignation. You agree to resign as a director, member of board committees, and officer of Aquila effective
October 1, 2002 (the "Resignation Date") and to resign your employment with Aquila effective April 1, 2004. You further agree to execute all documents that are reasonably necessary to
implement Your resignations, provided that all such documents are consistent with the terms and conditions of this Agreement and do not impose any greater duties or obligations on You than those
contemplated by this Agreement. 

        2.    Consideration. As consideration for Your execution of this Agreement, Aquila agrees to make the payments and provide the
benefits set forth in Exhibit A (whenever any reference to Exhibit A is made in
this Agreement such Exhibit A shall be deemed to have been incorporated by reference therein and made a part of the provision in which such
reference is made), provide the release and waiver in Section 5 of this Agreement and the other rights and obligations set forth in this Agreement. 

        3.    Employee Benefits. Subject to the terms hereof, the benefits provided under any Aquila-sponsored employee benefit plan
(each an "Aquila Benefit Plan") shall be in accordance with all terms and conditions set forth therein. In the event of any inconsistency between any Aquila Benefit Plan and this Agreement, then this
Agreement shall control. No amendment shall be made to any Aquila Benefit Plan after the date first set forth above ("Execution Date") that shall have any material adverse effect on You unless,
notwithstanding any such amendment, You shall be entitled to receive at least the same benefits either thereunder or pursuant to any other plan established to provide such benefits. 

        4.    Services and Cooperation. 

	(a)
	Services and Cooperation By You. For a period of eighteen months following the Resignation Date (the
"Services Period"), You agree to provide services to Aquila that are consistent with the scope of services You have historically provided to Aquila, which may include special projects and other
management initiatives, all as requested and determined by the Aquila Board of Directors or a designated member thereof (collectively referred to herein as "Continued Services"). You also agree to
provide such reasonable cooperation and assistance as may be requested in good faith from time to time during the Services Period (collectively referred to herein as "Legal Support Services") by
Aquila with respect to the investigation and handling of any threatened, pending or future litigation, regulatory proceeding, investigation, administrative or other hearing, trial or proceeding,
initiated by Aquila or any other person, entity or governmental body against Aquila (collectively referred to herein as a "Legal Proceeding"). The time devoted by You for Continued Services and Legal
Support Services shall not exceed an average of ten hours per week or forty hours in any one week during the Services Period without Your written consent, which You may withhold in Your sole
discretion. Aquila will give You reasonable advance notice under the applicable circumstances of the Continued Services or Legal Support Services. Aquila will use its reasonable best efforts to enable
You to provide the Continued Services and Legal Support Services during Aquila's normal business hours. Where practically feasible under the applicable circumstances, You may provide the Continued
Services and the Legal Support Services at any location you desire, which may be outside of Kansas City, Missouri, and which may be provided through telephone, e-mail or other means of
remote communications. Aquila agrees to reimburse You for all reasonable out-of-pocket expenses incurred by You in connection with providing the Continued Services and Legal
Support Services, including, without limitation, reasonable 

2

 

attorney's
fees incurred by you in connection with the Legal Support Services, travel expenses (including food and lodging), phone bills, and delivery charges. 

	(b)
	Cooperation by Aquila. Subject to terms hereof, Aquila agrees to provide reasonable cooperation to You in
obtaining other employment, including, without limitation, by providing any information within its possession that is not confidential that You request regarding your past activities on behalf of
Aquila and various actions and transactions by Aquila while You were employed by Aquila. 

        5.    Release and Waiver of Claims. In exchange for this Agreement, You (on behalf of You and anyone claiming through or on
behalf of You), release Aquila and each of Aquila's subsidiaries and other Affiliates (as the term "Affiliates" is defined by Rule 12b-2 under the Securities Exchange Act of 1934,
as amended), its successors and assigns, and all of their past and present employees, officers, directors, attorneys, stockholders, and agents from any and all claims and potential claims, whether
known or unknown and whether or not matured or contingent, demands and causes of action You have or may have had against any of them arising out of Your service or employment with, Aquila and the
termination thereof, as well as all future employment-related claims, including claims not currently known to or contemplated by the Parties, to the maximum extent permitted by law. This release
includes, but is not limited to, any and all claims, demands and causes of action which are related to or concern: Your Prior Agreement; service as a director and officer of Aquila, Your ownership of
Aquila securities, Your employment and the termination thereof; attorneys' fees or costs; the Aquila Workforce Transition Program; discrimination under local, state or federal law; the Missouri
Service Letter Statute; the Age Discrimination in Employment Act; Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Americans With Disabilities Act; the Employee Retirement
Income Security Act; the Family and Medical Leave Act; severance pay; tort claims including invasion or privacy, defamation, fraud and infliction of emotional distress; disputed wage claims; and all
other claims, demands, and causes of action, whether they arise in the United States of America or elsewhere, to the maximum extent permitted by law. This Release does not include (a) any
rights or benefits as set forth in this Agreement (including Exhibit A) or (b) any rights to indemnification under Aquila's Certificate of Incorporation, Bylaws or any agreement relating
to indemnification or any policy of Directors and Officers Insurance. In exchange for this Agreement, Aquila, its successors and assigns (on behalf of Aquila and Aquila's subsidiaries and other
Affiliates, their successors and assigns and anyone claiming through or on behalf of Aquila or any of Aquila's subsidiaries or other Affiliates, their successors and assigns), release You, Your heirs,
executors, personal representatives, attorneys, agents, successors and assigns, from any and all claims and potential claims, known or unknown and whether or not matured or contingent, demands and
causes of action which they have or may have against You or them, including claims, demands and causes of action not currently known or contemplated by the parties, in each case, to the maximum extent
permitted by law. This release includes, but is not limited to, any and all claims, demands and causes of action which are related to or concern: Your service as a director or officer of Aquila, Your
ownership of Aquila securities, Your Prior Agreement, and Your employment and the termination thereof, except that this Release does not release You of the obligation to perform the Continued Services
and Legal Support Services and to comply with Your other obligations under this Agreement. 

        6.    No Admission of Wrongdoing. This Agreement is not an admission of wrongdoing or liability by You, Aquila, or any of the
individuals or entities referenced in Section 5, above and any and all such wrongdoing or liability is expressly denied. Neither of the Parties nor any of the individuals or entities referenced
in Section 5 are currently aware of any wrongdoing in liability by the other Party and, instead, this Agreement reflects current business and industry conditions which are unrelated to Your
performance prior to entering into this Agreement. 

        7.    Return of Company Property. Except as otherwise provided by a specific agreement between you and Aquila, You represent
that You will have returned all of Aquila's and Aquila's affiliates' files, 

3

 

records, documents, plans, drawings, specifications, equipment, software, pictures, videotapes, or any property or other items of Aquila or Aquila's affiliates in Your possession or concerning the
business of Aquila, whether prepared by You or otherwise coming into Your possession or control as of the date you sign this Agreement. This section does not apply to data or information that is in
the public domain, or to property, data or information that You and Aquila agree is immaterial. 

        8.    Proprietary Information. You agree that You shall not at any time, except as authorized by the Chairman of Aquila or his
authorized designee, communicate, divulge or use, for Your own benefit or for the benefit of any other person, firm, or corporation, any confidential or proprietary information concerning Aquila's
business, including but not limited to Aquila's operations, services, materials, policies, and the manner in which they are developed, marketed, priced or provided, and such other information regarded
as trade secrets or confidential or proprietary information under any applicable law, including without limitation information that is attorney work product or attorney-client privileged. These
provisions do not apply to data or information that are compelled to be released by law or judicial process, or to data or information that are in the public domain other than as a result of a breach
by You of the terms hereof, or are subsequently released by Aquila to the public domain. 

        9.    Non-disparagement. Aquila (on behalf of itself and its subsidiaries, other Affiliates and their respective
officers, directors, employees and agents) and You each agree not to disparage each other in any way. Further, Aquila (on behalf of itself and its subsidiaries and other Affiliates, officers,
directors, employees and agents) and You each agree not to make nor solicit any comments, statements, or the like to the media or to third parties that may be considered defamatory, derogatory or
detrimental to the good name or business reputation of the other. 

        10.    Indemnification. Aquila agrees, to the maximum extent permitted by applicable law, to defend and indemnify You (including
Your heirs, executors, personal representatives, successors and assigns) and pay all costs and expenses as they become due (including, without limitation, any reasonable attorneys' fees and other
legal costs) in any action, suit or proceeding threatened or pending against You as of the Resignation Date or asserted thereafter, and to further defend and indemnify You and pay all costs and
expenses as they become due (including, without limitation, any reasonable attorneys' fees and other legal costs) in any action, suit or proceeding threatened or pending in the future, so long as in
each case Your actions which are or may be the subject of such action, suit or proceeding were taken: (i) within the course and scope of Your employment with Aquila or as a director, member of
board committees, or officer of Aquila (or pursuant to this Agreement, including, but not limited to, the Continued Services and Legal Support Services); (ii) in good faith and in a manner You
reasonably believed to be in or not opposed to the best interests of Aquila; and (iii) with respect to any criminal action or proceeding, without any reasonable cause by You to believe Your
actions were unlawful; provided, however, that the standard referenced in clause (ii) or (iii) of this provision shall be deemed to have been satisfied if you shall have acted or
refrained from acting in accordance with advice provided to You by inside or outside legal counsel to Aquila, or any other employee or agent of Aquila reasonably believed by You to be competent to
give such advice. As a condition to the foregoing, You agree to notify Aquila of any written claims made against You within fifteen (15) calendar days after You receive personal service by hand
delivery of such claims and agree to otherwise reasonably cooperate and assist Aquila and its agents in any defense. In accordance with Section 145(e) of the Delaware Corporation Law, You agree
to promptly repay to Aquila any expenses advanced by Aquila in connection with all indemnified matters if it shall ultimately be determined that You are not entitled to be indemnified against such
expenses. In addition, to the same extent provided to other officers and directors, Aquila shall maintain, at its cost and expense, officers' and directors' liability insurance
covering You with respect to the time period that you served as an officer or director of Aquila or any subsidiary or other Affiliate of Aquila, (i) with a scope of coverage (including any
exclusions of coverage) at least equivalent to that in effect on the date of this Agreement, and (ii) with a dollar 

4

 

amount of coverage at least equivalent to that in effect on the date of this Agreement (including no greater deductibles or retention amounts). 

        11.    Confidentiality. The content of this Agreement, and Your discussions with Aquila pertaining to it, are confidential.
Until such time as Aquila files this Agreement with the Securities and Exchange Commission, You agree not to communicate or allow communication in any manner with respect to the content of this
Agreement, and the discussions pertaining to it, except that this Agreement, and the discussions pertaining to it, may be disclosed by You to Your immediate family members, to Your attorneys and
accountants, tax consultants, financial planners, governmental taxing authorities or regulatory agencies, and in any litigation, arbitration, or other proceeding relating to this Agreement or any of
the provisions hereof, or as may otherwise be required by law or judicial process or arbitration. Aquila (on behalf of itself and its Affiliates), agrees that the contents of this Agreement will not
be disclosed to anyone other than those persons and entities with a need to know for legitimate business purposes, unless otherwise required by a regulatory agency or by law. Any publication or
disclosure by You, or by Aquila or its Affiliates, officers, directors, employees or agents, of this Agreement, other than as allowed by this Section, shall be considered a material breach of this
Agreement. 

        12.    Remedies for Breach of this Agreement. If either You or Aquila believes that the other Party to this Agreement has
breached its obligations under this Agreement, then the Party claiming a breach will provide notice to the other Party, in writing, including a statement of the specific manner in which the Party
believes that this Agreement has been breached. If the breach is not cured, or cannot reasonably be cured, within thirty (30) days following notice, then the Parties, subject to
Section 15, and at their respective options, will be entitled to proceed as follows: 

	(a)
	If
Aquila materially breaches any provision of this Agreement, payment of any remaining compensation or other benefits described in  Exhibit A may at Your option be accelerated and not be recoverable
by Aquila as long as You have not also materially breached this Agreement. You
may also pursue any other available remedies for such breach, including but not limited to recovery of Your reasonable costs and attorneys' fees.

	(b)
	If
You materially breach any provision of this Agreement, and Aquila has not also materially breached this Agreement, then Aquila will be entitled to
immediately cease all remaining payments and benefits under this Agreement and, in the event of Your breach of Section 8, 9 or 16 of this Agreement, any actual damages (excluding consequential,
incidental or punitive damages) suffered by Aquila as a result thereof. Aquila may also pursue any other available remedies for such breach, including but not limited to recovery of its reasonable
costs and attorneys' fees. 

        13.    Tax Considerations. You acknowledge that no representations have been made to You by Aquila, Aquila's Affiliates, or
other agents or legal counsel regarding the tax implications of any payments made pursuant to this Agreement. All liability for the employee's share of federal, state, and local taxes (including FICA)
remains with You, unless otherwise agreed to in writing by Aquila, and Aquila shall deduct withholdings in the minimum amount required under applicable tax laws, rules or regulations from the
consideration payable under this Agreement. 

        14.    Choice of Law. This Agreement shall be construed in accordance with the laws of the State of Missouri without regard to
the choice of law principles thereof. 

        15.    Knowing Execution/Binding Arbitration. You acknowledge that You knowingly and voluntarily executed this Agreement. You
have had the opportunity to review the Agreement and consult with an attorney. Aquila has made no other promise, inducement or agreement not expressed in this Agreement. You and Aquila agree that if a
dispute arises out of or is related to this Agreement or Your employment by Aquila, other than a dispute regarding the obligations under Sections 8, 9 or 11, such dispute shall, if not earlier
resolved by negotiations of the parties or in accordance with 

5

 

Paragraph 12, be submitted to binding arbitration under the Employment Section Rules of the American Arbitration Association, or the mutually agreed equivalent. Following the
30-day period described in Section 12, above, either party may provide written notice to the other party that the dispute is not able to be resolved by negotiation and such
notifying party shall then contact the American Arbitration Association for appointment of an arbitrator to resolve such dispute. Any arbitration hearing shall take place in Kansas City, Missouri. In
addition to all other remedies otherwise available to Aquila or to You, Aquila and You shall have the right to injunctive relief to restrain and enjoin any actual or threatened breach by the other
party of any provisions of Sections 8, 9 or 16. 

        16.    Non-Competition. You agree to forfeit all rights to compensation and benefits payable under Sections 2 and 3
of this Agreement if, during the period commencing on the Resignation Date and ending five years thereafter ("Non-Compete Period"), You directly or indirectly, own, manage, operate,
control, become employed by, perform services for, consult with, solicit business for, participate in, or become connected with the ownership, management, operation, or control of any business that is
either directly or indirectly competitive with the products or services of Aquila. 

        17.    Entire Agreement. This Agreement, including Exhibit A, contains the entire agreement of the parties with respect
to the matters contemplated by this Agreement, and supersedes, cancels and replaces the Prior Agreement. 

        18.    Authorship. This Agreement will not be construed against either party due to authorship. 

        19.    Severability. If any provision of this Agreement or the application thereof to any party or circumstance shall be invalid
or unenforceable to any extent, the remainder of this Agreement and the application of such provisions to other persons or circumstances shall not be affected thereby and shall be enforced to the
greatest extent permitted by law. 

        20.    Successors and Assigns. This Agreement is binding on and inures to the benefit of Aquila and its subsidiaries and other
Affiliates and their successors and assigns and You and Your heirs, executors, personal representatives, and assigns, except that any services to be provided by You under this Agreement shall only be
performed by You. 

        21.  Notice. Any notice required by this Agreement shall be duly given if delivered, in writing, in person or by certified,
first-class mail (a) if to Aquila, Inc., to the Chief Administrative Officer at 20 West 9th Street, Kansas City, Missouri 64105, and (b) if to You, at Your current
residence address. Either party shall give notice to the other party of any change of address for purposes of notices to such party under this Agreement. 

        22.    Amendment and Waivers. Except as otherwise expressly set forth in this Agreement, (a) any term of this Agreement
may be amended only with the written consent of each Party, and (b) a Party's observance of any term of this Agreement may be waived (either generally or in a particular instance and whether
retroactively or prospectively) only by written consent of all the other parties. No waivers of or exceptions to any term, condition, or provision of this Agreement, in any one or more instances,
shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition, or provision. 

        23.    Press Releases and Other Public Disclosures. Aquila agrees to provide you with a draft of any press release, report or
other disclosure to be filed or furnished to the Securities and Exchange Commission or any other governmental authority, or any other public disclosure to be made by Aquila, any subsidiary or other
Affiliate of Aquila or any of their respective directors, officers, employees or agents which addresses, directly or directly, this Agreement, the subject matter thereof, the background leading
thereto and any matter related to any of the foregoing Public Disclosure in order to enable You to review and comment on the form and content thereof. 

6

 

        24.    No Mitigation. You shall not be required to mitigate the amount of any payment provided for pursuant to this Agreement by
seeking or obtaining other employment, consulting work or other work of any type, and You shall not be required to pay Aquila any amounts You may receive from such alternative employment, consulting
or other work. 

        25.    Due Authorization. The execution, delivery and performance of this Agreement have been duly authorized by all necessary
corporate action. This agreement has been duly executed and delivered by Aquila and its subsidiaries and other Affiliates and constitutes a binding obligation of Aquila and its subsidiaries and other
Affiliates enforceable against Aquila and its subsidiaries and other Affiliates in accordance with its terms. 

        THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION THAT MAY BE ENFORCED BY THE PARTIES.

* * * * * *

Remainder of Page Left Intentionally Blank  

7

 

        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed as of the day and year first above written. 

	Robert K. Green	 	Aquila, Inc. (for itself and on behalf of its subsidiaries and other Affiliates)
	

Signature:	

/s/  ROBERT K. GREEN      
	
 	

By:	

/s/  HERMAN CAIN      
 Name: Herman Cain

Title: Chairman of Compensation
	

Date:	

October 1, 2002	
 	

Date:	

October 1, 2002

8

 
 
 

EXHIBIT A    
  

	Comp. / Benefit
	 	Action

	Compensation	 	A lump sum payment of $6,639,869 shall be paid in cash to You on the eighth day following the Resignation Date, provided that you have not revoked this Agreement as provided in Section 25. In addition, an amount equal to
$25,952.08 shall be paid to You on a biweekly basis for a period of 18 months following the Resignation Date, with the first such payment due on October 25, 2002 (includes 39 pay periods).
	

Stock Options	
 	

Vest all unvested options for the purchase of a total of 303,154 shares of Aquila common stock. All options, regardless of their terms under the individual award agreements or relevant plan documents, shall remain exercisable and not expire until the
sixth (6th) anniversary of Your Resignation Date, as defined in this Agreement. You may choose to exercise options at any time prior to such options' expiration date.
	

Restricted Stock	
 	

Restrictions lifted. Full Release of all shares of Restricted stock granted pursuant to Award Numbers: R00040, R00153, R00183, R01313 and R01351. A total of 356,734 shares.
	

Capital Accumulation Plan	
 	

Plan provisions apply, subject to the provisions of Sections 3 of this Agreement.
	

Pension	
 	

Plan provisions apply, subject to the provisions of Sections 3 of this Agreement.
	

SERP	
 	

Plan provisions apply, subject to the provisions of Sections 3 of this Agreement. Three years age and service added to coincide with the above three years of compensation. SERP payment of $24,681.35/month commencing 1/1/2024
	

401(k)/ESCP	
 	

Plan provisions apply, subject to the provisions of Sections 3 of this Agreement. May maintain account until age 701/2 or rollover to IRA.
	

ESPP	
 	

Plan provisions apply, subject to the provisions of Sections 3 of this Agreement.
	

Medical, Dental and Vision	
 	

Aquila will provide continuing coverage for five years or until covered by a plan with at least equivalent benefits provided by another employer for which You are a Full-Time Employee. The term "Full-Time Employee" means that You are an employee, and
not an "independent contractor," of an employer other than Aquila, are working for that same employer at least 40 hours per week, and have been so working for that same employer for a period of at least 12 consecutive months. Coverage will be
equivalent to the current plan.
	

Accidental Death and Dismemberment Insurance	
 	

Continued coverage for five years or until covered by a policy with at least equivalent benefits provided by another employer for which you are a Full-Time Employee (as defined above).
	

Long Term Disability	
 	

Continued coverage for five years or until covered by another employer of a plan with a least equivalent benefits provided by another employer for which You are a Full-Time Employee (as defined above).
	
 	
 	

 

9

 

	

Annual Detailed Health Examination	
 	

Continued support by Aquila (including one annual physical examination at Aquila's expense) for five years or until covered by a policy with at least equivalent benefits provided by another employer for which You are a Full-Time Employee (as defined
above).
	

Life Insurance Policy	
 	

Aquila will take the steps necessary to fully pay and release outright to You a universal life insurance policy with the same amount of death benefit at the time of release that You currently have (i.e. $2 Million).
	

Office Space and Support	
 	

Aquila will make available to You office space and support through October 1, 2005 or until provided by another employer for which You are a Full-Time Employee (as defined above).

10

QuickLinks

Exhibit 10.2

EXHIBIT A

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