Whole Foods 2010 Annual Report Download - page 61

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55
time for two years after a change of control, the management member’s employment is terminated other than for “cause” or
the management member’s death, or the management member terminates employment for “good reason” (as defined in the
agreement), then the management member will be entitled to a change of control payment. Notwithstanding the foregoing,
the retention agreements with Walter Robb, Glenda Flanagan, A.C. Gallo, and Jim Sud provide that in certain situations the
benefits described in clause (1) of the prior sentence are subject to future negotiation.
From time to time we are a party to legal proceedings including matters involving personnel and employment issues,
personal injury, intellectual property, real estate and other proceedings arising in the ordinary course of business. The
Company has established loss provisions for matters in which losses are probable and the amount of loss can be reasonably
estimated. The Company does not believe that any of these proceedings arising in the ordinary course of business, either
alone or in the aggregate, will have a material adverse effect on the Company’s results of operations, cash flows or financial
condition. Although management does not expect that the outcome in these proceedings will have a material adverse effect
on our financial condition or results of operations, litigation is inherently unpredictable. Therefore, we could incur judgments
or enter into settlements of claims that could materially impact our results.
On October 27, 2008, Whole Foods Market was served with the complaint in Kottaras v. Whole Foods Market, Inc., a
putative class action filed in the United States District Court for the District of Columbia, seeking treble damages, equitable,
injunctive, and declaratory relief and alleging that the acquisition and merger between Whole Foods Market and Wild Oats
violates various provisions of the federal antitrust laws. This case is in the preliminary stages. Whole Foods Market cannot at
this time predict the likely outcome of this judicial proceeding or estimate the amount or range of loss or possible loss that
may arise from it. The Company has not accrued any loss related to the outcome of this case as of September 26, 2010.
(21) Subsequent Events
The Company evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements
through the date the financial statements were issued.