Document:

Exhibit
10.73

 

A request for confidential treatment has been made with
respect to portions of the following document that are marked with
[*CONFIDENTIAL*].  The redacted portions have been filed separately with
the SEC.

 

Second Amendment to the Agreement
for Distribution of Products

 

The
Agreement for Distribution of Products dated September 26, 2006 between
Whole Foods Market Distribution, Inc., a Delaware corporation and United
Natural Foods, Inc., a Delaware corporation (the “Agreement”)
is hereby amended effective October 11, 2010 (the “Amendment
Date”).

 

All
terms not defined herein shall have the meaning set forth in the Agreement. The
parties agree as follows:

 

1.             Section 3(a) is
hereby deleted in its entirety and replaced with the following:

 

“(a)         The pricing terms set forth
in this Agreement will remain in effect as long as WFM uses UNFI as its “Primary Distributor.” WFM is deemed to have used UNFI as its
Primary Distributor if the following two conditions are met: (i) each WFM
Region (excluding all WFM Stores outside the continental United States)
purchases [*CONFIDENTIAL*] in Products per “WFM Fiscal
Year” (as identified on Exhibit A) as were purchased in
[*CONFIDENTIAL*]; and (ii) if [*CONFIDENTIAL*] of the aggregate dollar
amount of Product purchases by all WFM Stores (excluding WFM Stores outside the
continental United States) from wholesale natural grocery distributors during a
WFM Fiscal Year are made from UNFI Parties. Orders submitted to the UNFI
Parties for Products that are out of stock (“OOS”)
will be included in the calculation as purchases from UNFI Parties for
determining whether both (a)(i) and (a)(ii) have been satisfied. The
following purchases by WFM Stores are not considered to be purchases from a
wholesale natural grocery distributor and therefore will not be included in
determining the dollar amount of WFM Store product purchases for purposes of
this Section 3(a)(ii): (A) purchases by WFM Stores from WFM or any of
its affiliates or subsidiaries (collectively, the “WFM Parties”),
including, but not limited to, purchases from a WFM distribution center, (B) purchases
by WFM Store from the manufacturer of a product, (C) purchases by WFM
Stores from non natural grocery distributors including, but not limited to,
broad-line food service distributors, non-food distributors and specialty
distributors such as but not limited to cheese, produce, meat, seafood, or
alcoholic beverage distributors. If at any time UNFI believes that WFM has not
satisfied the conditions set forth in Section 3(a)(i) or 3(a)(ii),
UNFI will notify WFM in writing. WFM will have 3 WFM Periods from receipt of
such notice to adjust purchases to meet the requirements. If WFM fails to cure
the noncompliance in 3 WFM Periods (calculated on a consecutive 13 WFM Period
basis) from the receipt of notice, UNFI’s sole remedy will be to renegotiate
the “Gross Profit Margin Percent” identified
on Exhibit B.”

 

 

2.             Section 3 is amended to
add the following as Section 3(f):

 

“(f)          UNFI shall provide
distribution services for the WFM Stores located in Tulsa, Oklahoma, Little
Rock, Arkansas and Louisiana out of their Dallas distribution center by the end
of February 2011.”

 

3.             This Amendment may be
executed in any number of counterparts, each of which will be deemed an
original and all of which together will constitute one and the same instrument.
Fax, email and other electronic transmissions are considered originals for all
purposes.

 

4.             All other terms of the
Agreement shall remain in full force and effect.

 

[Signature page follows]

 

2

 

The
parties have entered into this Second Amendment as of the date set forth in the
opening paragraph.

 

Whole Foods Market Distribution, Inc.,

a
Delaware corporation

 

 

	
  By:

  	
  /s/
  Michael Besancon

  	
   

  
	
   

  	
  Michael
  Besancon, President

  	
   

  
	
   

  
	
  United Natural Food Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Mark E. Shamber

  	
   

  
	
   

  	
  Mark E. Shamber

  	
   

  
	
   

  	
  SVP, CFO & Treasurer

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  

 

3EXHIBIT 10.1

 

RETIREMENT AGREEMENT

 

This
Retirement Agreement (the “Agreement”), dated as of December 9, 2010, is
entered into by and between, James L. Turner (the “Executive”) and Duke Energy
Business Services LLC (the “Company”), with the mutual exchange of promises as
consideration (collectively, the “Parties”).

 

Recitals

 

WHEREAS, the Executive will retire effective as of December 31,
2010 (the “Retirement Date”);

 

WHEREAS, in connection with the Executive’s
retirement, the Company is willing to provide certain compensation to the
Executive, provided that the Executive executes and does not timely revoke this
Agreement and a waiver and release, substantially in the form attached to this
Agreement as Exhibit A (the “Waiver and Release”) of all claims that
the Executive might assert against the Company, Duke Energy Corporation, any of
their subsidiaries and/or affiliated entities, and any predecessors, successors
or assigns to the foregoing (individually and collectively, “Duke”) and certain
other entities and individuals as set forth herein; and

 

WHEREAS, the Parties have agreed to enter into this
Agreement, which has been specifically negotiated between the Executive and the
Company.

 

NOW, THEREFORE, the Company and the Executive enter
into the following Agreement:

 

Agreement

 

1.                                       Retirement.

 

a.                                       Retirement.  The Executive’s employment with Duke will
terminate effective as of the Retirement Date. 
The Parties hereby acknowledge and agree that the Executive will be
deemed to have resigned his positions, if any, as a director and/or officer of
Duke, effective as of the Retirement Date or such earlier date requested by
Duke.

 

b.                                      Effect on Other Agreements.  Except as otherwise provided herein, this
Agreement replaces and supersedes any and all prior employment, separation and
retirement agreements between Duke and the Executive, if any; provided,
however, that nothing in this Agreement or the Waiver and Release will affect
the obligations, if any, of Duke to indemnify the Executive respecting acts or
omissions in connection with his service as director, officer or employee of
Duke, obligations with respect to insurance 

 

1

 

coverage under any of Duke’s
(or any successors) directors’ and officers’ liability insurance policies
or any right Executive may have to obtain contribution in the event of the
entry of judgment against Executive as a result of any act or failure to act
for which both Executive and Duke are jointly responsible.

 

2.                           Compensation.

 

a.                                       In exchange for
entering into this Agreement and the Waiver and Release, and satisfying any
additional conditions set forth in this Agreement, including but not limited to
the requirement to comply with Sections 7, 8, 9 and 12, and in lieu of any
other compensation or benefits that might be payable to the Executive under any
and all employment agreements, separation agreements, severance plans or
severance agreements between Duke and the Executive, including, but not limited
to, the Duke Energy Corporation Severance Opportunity Plan (No. 567) and
the Amended and Restated Change in Control Agreement by and among Duke Energy
Corporation and the Executive dated August 26, 2008, Duke Energy
Corporation agrees to modify the phantom and performance share awards that were
granted to the Executive under the LTIP (as defined below) on February 26,
2008, February 19, 2009 and February 22, 2010 such that the Executive
will be deemed to be employed with Duke, solely for purposes of such awards,
during the entirety of the performance periods applicable under each such
phantom and performance share award.  The
consideration described in this Section 2(a) of this Agreement will
only be provided to the Executive if, within 21 days after presentation to the
Executive, which presentation will occur within 30 days after the Retirement
Date, the Executive timely executes and does not timely revoke the Waiver and
Release.  Notwithstanding anything herein
to the contrary, the Company may withhold from any amounts payable under this
Agreement such federal, state, local or other taxes as it reasonably determines
are required to be withheld pursuant to any applicable law or regulation.

 

b.                                      The Executive
acknowledges and agrees that he will be entitled to no other benefits or
compensation from Duke or any of its benefit plans or arrangements, other than
as described in Section 2(a) of this Agreement and the following
paragraphs of this Section 2(b):

 

i.                                          2010 Short-Term Incentive.  The Executive will be entitled to an award
under the Cash Incentive Plan for 2010, with (i) the amount of such award
being determined pursuant to the terms of the Cash Incentive Plan and any
applicable administrative guidelines based on actual performance, and (ii) such
award being paid no later than March 15, 2011.

 

ii.                                       Accrued Vacation.  The Executive will receive the accrued
vacation to which he is entitled under the applicable Duke vacation policy.

 

iii.                                    Equity Awards.  Except as described in Section 2(a) of
this Agreement, the Executive’s rights with respect to the equity awards
granted to him pursuant to the Cinergy Corp. 1996 Long-Term Incentive
Compensation Plan and the Duke Energy Corporation 2006 Long-Term Incentive Plan
(individually and collectively,

 

2

 

the “LTIP”) will be
determined pursuant to the terms of the LTIP and any applicable equity award
agreements, including any post-employment non-competition/confidentiality
restrictions contained therein.   Duke
acknowledges and agrees that the Executive will be treated, for purposes of the
LTIP, as having terminated employment after becoming eligible for retirement.

 

iv.                                   Retirement Benefits.  The Executive’s rights with respect to
retirement benefits will be determined and paid (subject to any 6-month delay
in payment required by Section 409A of the Internal Revenue Code of 1986,
as amended (the “Code”)) pursuant to the terms of the Duke Energy Retirement
Savings Plan, the Cinergy Corp. Non-Union Employees’ Pension Plan, the Duke
Energy Corporation Executive Savings Plan and the Duke Energy Corporation
Executive Cash Balance Plan, each as amended from time to time.

 

v.                                      Welfare Benefits.  The Executive’s rights with respect to
welfare benefits will be determined pursuant to the terms of the Duke Energy
Health & Welfare Benefit Plans and the Duke Energy Health &
Welfare Benefit (Financed) Plans, each as amended from time to time.

 

3.                                       Basis for
Entitlement.  The
Executive acknowledges that he would not be entitled to the consideration
described in Section 2(a) of this Agreement absent his termination of
employment and his execution of this Agreement and the Waiver and Release.

 

4.                                       Adequate
Consideration.   The
Executive agrees that the benefits described in this Agreement constitute good,
valuable and sufficient consideration for the obligations the Executive assumes
in Sections 5 through 12 and the Waiver and Release.  The consideration offered in exchange for the
Executive’s execution of this Agreement exceed in kind and scope that to which
the Executive would have otherwise been legally entitled.

 

5.                                       Future
Employment.  The
Executive waives any right to assert any claim or demand for reemployment with
Duke.  The Executive, however, may accept
an offer of reemployment with Duke in the event such an offer is made.

 

6.                                       Acknowledgement.  The Executive acknowledges and agrees that it
is the policy of the Company and Duke to comply with all applicable federal,
state and local laws and regulations. 
The Executive affirms that he has reported all compliance issues and
violations of federal, state and local law or regulation or Duke policy of
which he had knowledge during the term of his employment, if any.  The Executive represents and acknowledges
that he has no further or additional knowledge or information regarding
compliance issues or possible violations of federal, state or local law or
regulations or Duke policy other than what the Executive may have previously
raised, if any, including, but not limited to, any and all outstanding nuclear
safety concerns the Executive has involving any nuclear power plant owned or
operated by Duke.  This Agreement further
does  not prohibit Executive from
participating in any way in any state or federal administrative, judicial, or
legislative proceeding or investigation.

 

3

 

7.                                   Restrictive
Covenants.

 

a.                                       In General.  The Executive acknowledges that in the course
of his employment with Duke he has been exposed to and become familiar with
trade secrets, customer lists, and other proprietary and confidential
information  concerning Duke, and that
his services have been of special, unique and extraordinary value to Duke.

 

b.                                      Non-Solicitation.  The Executive
further agrees that, during the 24-month period following the Retirement Date,
he will not in any manner, directly or indirectly, without the advance written
consent of Duke, induce or attempt to induce any employee of Duke to quit or
abandon his or her employ, or, for competitive purposes, call on, service, or
solicit business from customers of Duke.

 

c.                                       Non Competition.  The Executive agrees that at no time during
the 24-month period following the Retirement Date will he, without the prior
written consent of Duke, (i) become employed by, or otherwise associated
with, and work in or provide advice to a Competitor, (ii) acquire an
ownership interest in a Competitor, provided that the Executive may, for
investment purposes, own not more than 3% of the outstanding stock of any class
of a Competitor that is publicly traded, or (iii) solicit any customers of
Duke on behalf of or for the benefit of a Competitor.  For purposes of this Agreement, the term “Competitor”
means any person or entity that is engaged in any business in which Duke is
engaged as of the Retirement Date. 
Notwithstanding the foregoing, the Executive will be permitted to
continue in his capacity as a director serving on the board of directors of any
entity to the extent the Executive holds such position as of the date of this
Agreement.

 

d.                                      Non-Disparagement.  Except as required by subpoena  or other  legal  process (in which  event  the  Executive  will give the Chief Legal Officer of Duke Energy Corporation prompt notice of such subpoena or other legal process in order to permit Duke or any affected individual to seek appropriate protective orders), the Executive further agrees that he will refrain from publishing or
providing any oral or written statements about Duke, any of Duke’s current or
former officers, executives, directors, employees, agents or representatives or
any initiative, program or policy of Duke relating to any matter whatsoever
that are disparaging, slanderous, libelous or defamatory, or that disclose
private or confidential information about their business affairs, or that
constitute an intrusion into their private lives, or that give rise to
unreasonable publicity about their private lives, or that place them in a false
light before the public, or that constitute a misappropriation of their name or
likeness.  Except as required by subpoena
or other legal process (in which event Duke will give the Executive prompt
notice of such subpoena or other legal process in order to permit the Executive
to seek appropriate protective orders), Duke further agrees to refrain from
publishing or providing any oral or written statements about the Executive that
are disparaging, slanderous, libelous or defamatory, or that disclose private
or confidential information about his business affairs, or that constitute an
intrusion into his private life, or that give rise to unreasonable publicity
about his private life, or that place him in a false light before the public,
or that constitute a misappropriation of his name or likeness.

 

4

 

e.                                       Revision.  If, at the time of enforcement of this
Section, a court holds that the restrictions stated herein are unreasonable
under circumstances then existing, the Parties hereto agree that the maximum
period or scope reasonable under such circumstances will be substituted for the
stated period or scope and that the court will be allowed to revise the
restrictions contained herein to cover the maximum period or scope permitted by
law.  The Parties acknowledge that any
alleged breach of this Section 7 could result in a claim for legal and/or
equitable damages by the aggrieved party.

 

8.               Nondisclosure
of Confidential Information.  The Executive acknowledges that the
information, observations and data obtained by him while employed by Duke
concerning the business or affairs of Duke (unless and except to the extent the
foregoing become generally known to and available for use by the public other
than as a result of the Executive’s acts or omissions to act) (hereinafter
defined as “Confidential Information”) are the property of Duke and he was and
is prohibited from using, disclosing or misappropriating (on behalf of himself
or any other person or entity) such Confidential Information during his
employment with Duke and following the separation of his employment from
Duke.  For purposes of clarity, the fact
of, or any information regarding any investigation undertaken by Duke or
completed on Duke’s behalf regarding Duke’s business or the conduct of Duke’s
business relating to legal, compliance, or risk management issues will be
deemed Confidential Information unless and except to the extent the foregoing
become generally known to and available for use, in its entirety, by the public
other than as a result of the Executive’s acts or omissions to act.  Therefore, the Executive agrees that he will
not disclose any Confidential Information without the prior written consent of
the Chief Legal Officer or the Chief Executive Officer of Duke Energy
Corporation (which may be withheld for any reason or no reason) unless and
except to the extent that such disclosure is required by any subpoena or other
legal process (in which event the Executive will give the Chief Legal Officer
of Duke Energy Corporation prompt notice of such subpoena or other legal
process in order to permit Duke to seek appropriate protective orders), and
that he will not use any Confidential Information for his own account without
the prior written consent of the Chief Legal Officer or the Chief Executive
Officer of Duke Energy Corporation (which may be withheld for any reason or no
reason).  As soon as practicable after
the Retirement Date, Executive will deliver to the Company all memoranda,
notes, plans, records, reports, computer tapes and software and other documents
and data (and copies thereof), whether in writing or any other form, relating
to the Confidential Information, or to the work product or the business of Duke
which he may possess or have under his control. 
The Executive’s obligations under this Section 8 are in addition
to, and not in limitation of or preemption of, all other obligations of
confidentiality which the Executive may have to Duke under general legal or
equitable principles, and federal, state or local law.  The Parties acknowledge and agree that,
notwithstanding any other provision of this Agreement, Executive remains free
to report or otherwise communicate any nuclear safety concern, any work place
safety concern, or any public safety concern to the Nuclear Regulatory
Commission, United States Department of Labor or any other appropriate federal
or state government agency.

 

5

 

9.                                       Intellectual
Property.  The
Executive acknowledges that any and all writings, documents, financial
materials, inventions (whether or not patentable), discoveries, trade secrets,
computer programs or instructions (whether in source code, object code, or any
other form), algorithms, formulae, plans, customer lists, memoranda, tests,
research, designs, specifications, models, data, diagrams, flow charts, and/or
techniques (whether reduced to written form or otherwise) that the Executive
made, makes, conceived, conceives, discovered, discovers, developed or
develops, either solely or jointly with any other person, at any time during
the term of his employment, whether during working hours or at Duke’s
facilities or at any other time or location, and whether upon the request or
suggestion of Duke or otherwise, that relate to or are useful in any way in
connection with any business carried on by Duke 
(collectively, “Intellectual Work Product”) are and will be the sole and
exclusive property of Duke.  The
Executive will promptly and fully disclose all Intellectual Work Product to
Duke.  Any Intellectual Work Product not
generally known to and available for use, in its entirety, by the public will
be considered to be Confidential Information as defined herein.  The Executive acknowledges that all
Intellectual Work Product that is copyrightable will be considered a work made
for hire under United States Copyright Law. 
To the extent that any copyrightable Intellectual Work Product may not
be considered a work made for hire under the applicable provisions of the
Copyright Law, or to the extent that, notwithstanding the foregoing provisions,
the Executive may retain an interest in any Intellectual Work Product that is
not copyrightable, the Executive hereby irrevocably assigns and transfers to
Duke any and all right, title, or interest that the Executive may have in the
Intellectual Work Product under copyright, patent, trade secret and trademark
law, in perpetuity or for the longest period otherwise permitted by law,
without the necessity of further consideration. 
Duke will be entitled to obtain and hold in its own name all copyrights,
patents, trade secrets and trademarks with respect thereto.  At the sole request and expense of Duke, the
Executive will assist Duke in acquiring and maintaining copyright, patent,
trade secret and trademark protection upon, and confirming its title to, such
Intellectual Work Product.  The Executive’s
assistance will include signing all applications for copyright and patent
applications and other papers, cooperating in legal proceedings and taking any
other steps considered desirable by Duke.

 

10.                                 Breach of this
Agreement.  The Parties
agree that the other would be damaged irreparably in the event any of the provisions
of Sections 7, 8, 9, or 12 were not performed in accordance with their specific
terms or were otherwise breached and that money damages would be an inadequate
remedy for any such non-performance or breach. 
The Parties acknowledge and agree that, in the event either party
breaches or threatens to breach any provision of this Agreement or the Waiver
and Release, the non-breaching party will be entitled to seek any and all
equitable and legal relief provided by law, specifically including immediate and
permanent injunctive relief to prevent any breach or threatened breach of any
of such provisions and to enforce such provisions specifically (without posting
a bond or other security).  The Parties
hereby waive any claim that the other has an adequate remedy at law.  In addition, and to the extent not prohibited
by law, the Parties agree that the non-breaching party will be entitled to an
award of all costs and attorneys’ fees reasonably incurred by the non-

 

6

 

breaching
party in any successful effort to enforce the terms of this Agreement.  The Parties agree that the foregoing relief
will not be construed to limit or otherwise restrict their ability to pursue
any other remedy provided by law, including the recovery of any actual,
compensatory or punitive damages. 
Moreover, if the Executive pursues any claims that he has waived in the
Waiver and Release or otherwise materially breaches this Agreement, (i) the
Executive agrees to immediately reimburse the Company for all amounts received
by the Executive pursuant to Section 2(a) to the fullest extent
permitted by law, and (ii) the Company will be relieved of any and all
obligations to make future payments to the Executive pursuant to this
Agreement.

 

11.                                 Continuing
Obligations. The Executive hereby affirms and acknowledges the
Executive’s continuing obligations to comply with the post-termination
covenants contained in this Agreement, including, but not limited to, the
provisions of Sections 7, 8, 9 and 12 of this Agreement and the Waiver and
Release.  The Executive acknowledges that
the restrictions contained therein are valid and reasonable in every respect,
are necessary to protect Duke’s legitimate business interests and hereby
affirmatively waives any claim or defense to the contrary.

 

12.                                 Return of
Company Property.  The
Executive agrees to return to the Company all keys, identification badges,
electronic passes, computers, computer programs, cell phones, blackberries and
any other Duke property as soon as practicable after the Retirement Date.

 

13.                                 Arbitration.

 

a.                                       Any dispute
between the Parties regarding this Agreement, the breach thereof, the Executive’s
employment with Duke, or the termination thereof, will be resolved (except as
provided below) through informal arbitration by an arbitrator selected under
the rules of the American Arbitration Association (located in Charlotte,
North Carolina) and the arbitration will be conducted in that location under
the rules of said Association, to the extent they do not conflict with
this Agreement.

 

b.                                      Within thirty
(30) days of the notice of a demand for arbitration, both Parties will exchange
with one another documents in their respective possession that are relevant to
the dispute.  There will be no
interrogatories or depositions taken in preparation for the arbitration; provided,
however, that the arbitrator may permit limited deposition discovery in
extraordinary circumstances and if necessary to avoid manifest injustice.  The grieving party will file a written statement
explaining his or its claim, including relevant documentation, within
forty-five (45) days of the notice for arbitration; the opposing party will
respond within thirty (30) days thereafter; and the grieving party may reply
within fifteen (15) days of the response. 
After this period of limited discovery, a live hearing before the
arbitrator will occur. The arbitrator will have the right only to interpret and
apply the provisions of this Agreement and may not change any of its
provisions.  The determination of the
arbitrator will be conclusive and binding upon the Parties and judgment upon
the same may be entered in any court having jurisdiction thereof.  The arbitrator will give written notice to
the Parties stating his or their determination, and will furnish to each party
a signed copy of such determination.

 

7

 

 

c.             The expenses of arbitration will be borne equally by the
Executive and the Company, and each party will bear its own costs, including
attorneys’ fees; provided, however, that the arbitrator will have the power to
award such expenses and costs, including attorneys’ fees, to the prevailing
party in accordance with applicable law and to require Duke at the beginning of
the proceedings to fully or partially reimburse (or provide an advance to) the
Executive for expenses (but not for costs, including attorneys’ fees) in the
event the Executive can demonstrate that the amount of the expenses is an
unreasonable impediment to adjudication of his claims in arbitration.  If the arbitrator awards a monetary amount to
either party in excess of $1,000,000, the party against whom the award was made
may seek judicial resolution of the dispute under a de novo standard before any
court with appropriate jurisdiction over the matter.

 

d.             Notwithstanding the foregoing, Duke will not be required
to seek or participate in arbitration regarding any breach by the Executive of
his agreements in Sections 7, 8 or 9 hereof, but may pursue its remedies for
such breach in a court of competent jurisdiction in Charlotte, North
Carolina.  Any arbitration or action
pursuant to this Section 13 will be governed by and construed in
accordance with the substantive laws of the State of North Carolina, without
regard to any applicable state’s choice of law provisions.

 

14.           Governing Law.  This Agreement will be interpreted, enforced
and governed under the laws of the State of North Carolina, without regard to
any applicable state’s choice of law provisions.

 

15.           Consultation
With Attorney Advised.  The Executive
is advised to consult with an attorney prior to executing this Agreement.  The Executive acknowledges being given that
advice.  The Executive represents that he
has read and fully understands all of the provisions of this Agreement. The
Executive represents that he is voluntarily signing this Agreement.

 

16.           Binding
Effect of Agreement.   This
Agreement, once signed by each of (i) the Executive and (ii) the
Senior Vice President and Chief Human Resources Officer, will be binding upon
and will operate for the benefit of the heirs, executors, administrators,
assigns, and successors in interest of the Executive and Duke.  Duke agrees that in the event of a sale,
merger, acquisition, or other change in structure (including the cessation or
restructuring of any part of Duke’s business) and/or ownership, Duke will
ensure that the contract language pertaining to the transaction confirms the
continuing liability of Duke (and its assigns and successors in interest) to
the Executive under this Agreement.  The
Executive agrees that Duke Energy Business Services LLC or its successors
(and/or any of its authorized officers and/or employees) is authorized to act
for Duke with respect to all aspects pertaining to the administration and
interpretation of this Agreement.

 

17.           Severability.  The Parties agree that each and every
paragraph, sentence, clause, term and provision of this Agreement is severable
and that, if any portion of this Agreement should be deemed not enforceable for
any reason, such portion will be

 

8

 

stricken
and the remaining portion or portions thereof should continue to be enforced to
the fullest extent permitted by applicable law.

 

18.           No
Admission of Liability.  The Parties
acknowledge that this Agreement is entered into solely for the purpose of
ending their employment relationship on an amicable basis and will not be
construed as an admission of liability or wrongdoing by any Party and that each
Party expressly denies any such liability or wrongdoing.

 

19.           No
Reliance.  The Executive does not
rely, and has not relied, upon any representation or statement made by Duke or
by any of Duke’s employees, officers, agents, stockholders, directors or
attorneys with regard to the subject matter, basis or effect of this Agreement
other than those specifically contained herein.

 

20.           Complete
Agreement.  Except as specifically
provided herein, the terms of this Agreement and the Waiver and Release
constitute the entire agreement between the Parties and supersede all previous
communications, representations, and agreements, oral or written, between the Parties
with respect to the subject matter of this Agreement.  No agreement or understanding modifying this
Agreement will be binding on either Party unless it is in writing and signed by
an authorized representative of the Party sought to be bound.  If any part of this Agreement is adjudged by
a court of competent jurisdiction (or the arbitrator(s) pursuant to Section 13)
to be contrary to law, then this Agreement will, in all other respects, remain
effective and binding to the full extent permitted by law.

 

21.           Compliance with Code Section 409A.  To the extent applicable, the Parties intend
that this Agreement comply with the provisions of Section 409A of the
Code.  This Agreement will be construed,
administered, and governed in a manner consistent with this intent.  Any provision that would cause any amount
payable or benefit provided under this Agreement to be includable in the gross
income of the Executive or his 
beneficiary under Section 409A(a)(1) of the Code will have no
force and effect unless and until amended to cause such amount or benefit to
not be so includable (which amendment will be made without the consent of the
Executive or his  beneficiaries and will
maintain, to the maximum extent practicable, the original intent of the
applicable provision without violating the requirements of Section 409A of
the Code).  To the extent that the
Executive is entitled to a reimbursement of legal fees or other expenses, then,
unless the entitlement qualifies for any exception to Section 409A, the
following additional provisions will apply: (a) any expense eligible for
reimbursement must be incurred, or any entitlement to a benefit must be used,
during the six-month period commencing on the Retirement Date; (b) the
amount of expenses eligible for reimbursement, or in-kind benefits provided,
during a calendar year may not affect the expenses eligible for reimbursement,
or in-kind benefits to be provided in any other calendar year; (c) the
reimbursement of the eligible expense must be made no later than  the last day of the calendar year
following the calendar year in which the expense was incurred, provided that
all required documentation is timely submitted; and (d) the right to
reimbursement or in-kind benefits is not subject to liquidation or exchange for
another benefit.  The payment rules set forth above will apply to the
reimbursement of legal fees or expenses even if the right to reimbursement is
otherwise

 

9

 

contingent
upon the Executive being the prevailing party; provided that, to the extent
permitted by law, the Executive will be required to return (within 10 days
following receipt of demand) all reimbursed fees and expenses if the Executive
does not prevail in respect of at least one material claim (whether the
Executive is prosecuting or defending such claim) in the dispute.  If the
Executive is entitled to reasonable compensation in exchange for providing
assistance in connection with litigation matters or investigations, the
compensation must be paid within 60 days following the end of the calendar
month in which the Executive performs the services to which the compensation
relates, provided that all required documentation is timely submitted. 
The tax treatment of the Agreement is not warranted or guaranteed, and neither
the Company and its affiliates nor their directors, officers, employees or
advisers will be held liable for any taxes, interest, penalties or other
monetary amounts owed by the Executive or other taxpayer under Section 409A
as a result of the Agreement.

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed, effective as of the date first written above.

 

 

	
  DUKE ENERGY BUSINESS SERVICES LLC

  	
  EXECUTIVE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Jennifer
  L. Weber

  	
   

  	
  /s/ James L. Turner

  
	
   

  	
  Jennifer L. Weber

  	
   

  	
  James L. Turner

  
	
   

  	
  Senior Vice President and Chief

  Human Resources Officer

  	
   

  	
   

  

 

10

 

Exhibit A

 

WAIVER AND RELEASE OF CLAIMS

 

This
WAIVER AND RELEASE OF CLAIMS (the “Release”) is executed and delivered by James
L. Turner (the “Executive”) to Duke Energy Corporation (together with its
affiliates, subsidiaries and any successors thereto, the “Company”).

 

In
consideration of the agreement by the Company to provide certain benefits to
the Executive as set forth in the agreement between Executive and Duke Energy
Business Services LLC dated December 9, 2010 (the “Retirement Agreement”)
and other good and valuable consideration, which the Executive acknowledges is
consideration to which he would not otherwise be entitled, the Executive hereby
agrees as follows:

 

Section 1.  Release and Covenant.  The Executive, of his own free will,
voluntarily and unconditionally releases and forever discharges the Company,
its subsidiaries, parents, affiliates, their directors, officers, employees,
agents, stockholders, successors and assigns (both individually and in their
official capacities with the Company) (the “Company Releasees”) from any and
all past or present causes of action, suits, agreements or other claims which
the Executive, his dependents, relatives, heirs, executors, administrators,
successors and assigns have or may hereafter have from the beginning of time to
the date hereof against the Company or the Company Releasees upon or by reason
of any matter, cause or thing whatsoever, including, but not limited to, any
matters arising out of his employment with the Company and/or his  separation from employment, and including,
but not limited to, any alleged violation of the Civil Rights Acts of 1964 and
1991, the Equal Pay Act of 1963, the Employee Retirement Income Security Act of
1974, as amended, the Age Discrimination in Employment Act of 1967, the
Rehabilitation Act of 1973, the Older Workers Benefit Protection Act of 1990,
the Americans with Disabilities Act of 1990, the Genetic Information
Nondiscrimination Act of 2008, the Indiana Civil Rights Statute, the Kentucky
Civil Rights Statute, the Ohio Civil Rights Statute, the North Carolina Human
Relations Law, the South Carolina Human Affairs Law, the Texas Labor Code 21,
and any other federal, state or local law, regulation or ordinance, or public
policy, contract or tort law.  This
Release will not, however, constitute a waiver of any of the Executive’s rights
under the Retirement Agreement nor a waiver of any claims that might arise
after the date the Release is signed. Executive acknowledges and agrees that
execution of this Release constitutes a waiver of his right to recover not only
in a lawsuit, claim or other action brought by him as described herein, but also
in any lawsuit, claim or other action brought on his behalf.  Notwithstanding the foregoing, this Release
does not waive and release:  (a) workers’
compensation claims filed prior to the date of execution of this Release; or (b) claims
against the Company arising out of possible exposure to asbestos during
Executive’s employment with the Company at a facility or facilities owned by
the Company.

 

Section 2.  Due Care.  The Executive acknowledges that he has
received a copy of this Release prior to its execution and has been advised
hereby of his opportunity to review and consider this Release for 21 days prior
to its execution.  The Executive 

 

A-1

 

further
acknowledges that he has been advised hereby to consult with an attorney prior
to executing this Release.  The Executive
enters into this Release having freely and knowingly elected, after due
consideration, to execute this Release and to fulfill the promises set forth
herein.  Executive acknowledges that if
Executive has signed this Agreement it is because Executive freely chose to do
so.  This Release will be revocable by
the Executive during the 7-day period following its execution, and will not
become effective or enforceable until the expiration of such 7-day period.  In the event of such a revocation, the
Executive will not be entitled to the consideration for this Release set forth
above.  To enter into this Release,
Executive must execute it by signing, dating and returning it to:  Attention: Frank A. Ramundo, Associate
General Counsel, 139 East Fourth Street, 1212-Main, Cincinnati, Ohio
45202.  Executive may revoke this Release
by mailing a written revocation of the Release post-marked no later than the
seventh day after its execution to Frank A. Ramundo at the address hereinabove.

 

Section 3.  Nonassignment of Claims; Proceedings.  The Executive represents and warrants that
there has been no assignment or other transfer of any interest in any claim
which the Executive may have against the Company or any of the Company
Releasees.   The Executive represents
that he has not commenced or joined in any claim, charge, action or proceeding
whatsoever against the Company or any of the Company Releasees arising out of
or relating to any of the matters set forth in this Release.

 

Section 4.  Reliance by Executive.  The Executive acknowledges that, in his
decision to enter into this Release, he has not relied on any representations,
promises or agreements of any kind, including oral statements by
representatives of the Company or any of the Company Releasees, except as set
forth in this Release and the Retirement Agreement.

 

Section 5.  Nonadmission.   Nothing contained in this Release will be
deemed or construed as an admission of wrongdoing or liability on the part of
the Company or any of the Company Releasees.

 

Section 6.  Communication of Safety Concerns.  Notwithstanding any other provision of this
Release and the Retirement Agreement, the Executive remains free to report any
suspected instance of illegal activity of any nature, any nuclear safety
concern, any workplace safety concern, or any public safety concern to the
United States Nuclear Regulatory Commission, the United States Department of
Labor, or any other federal or state governmental agency. Further, nothing in
this Release or the Retirement Agreement prohibits the Executive from
participating in any way in any state or federal administrative, judicial or
legislative proceeding or investigation or filing a charge of discrimination
with an administrative agency, provided, however, that should an
agency pursue any claims on the Executive’s behalf, by signing and not revoking
this Release, the Executive has waived his right to any recovery, monetary or
otherwise.  Should the Executive receive
a subpoena in connection with any federal or state administrative, judicial, or
legislative proceeding involving the Company, the Executive will, if permitted
by law, provide the Company with notice of the subpoena, including a 

 

A-2

 

copy
of the subpoena, within twenty-four (24) hours of receipt of the subpoena.  The notice will be provided to Duke Energy
Corporation’s Chief Legal Officer.  For
purposes of clarity, nothing in this Release, the Retirement Agreement or otherwise
will operate to prohibit Executive from providing truthful testimony in any
regulatory or judicial proceeding

 

Section 7.  Governing Law.  This Release will be interpreted, construed
and governed according to the laws of the State of North Carolina, without
reference to conflicts of law principles thereof.

 

Section 8.  Severability.  It is understood by Executive and the Company
that if any part of this Release is held by a court to be invalid, the
remaining portions will not be affected.

 

This
RELEASE is executed by the Executive and delivered to the Company on December 9,
2010.

 

	
   

  	
  /s/
  James L. Turner

  
	
   

  	
  James
  L. Turner

  

 

A-3

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