Document:

exv10w2

 

EXHIBIT 10.2

Mr. Gregg Tanner

3080 South 99th Avenue

Omaha, NE 68124

Dear Gregg:

I am pleased to offer you the position of Executive Vice President, Supply Chain for Dean Foods
Company. This position will report to me. We look forward to having you join our team as soon as
possible.

Here are the specifics of your offer:

Base Salary

You will be paid $21,875 on a semi-monthly basis, which equates to an annual salary of $525,000.
Your salary will be reviewed annually by our Compensation Committee.

Signing Bonus

You will receive a one-time signing bonus of $400,000, less payroll taxes, within 30 days after
January 1, 2008. If you voluntarily leave Dean Foods without good reason during your first year of
employment, you will be responsible for reimbursing Dean Foods on a prorated basis (based on number
of months worked) for this one-time signing bonus.

You will also receive an additional one-time signing bonus of $175,000, less payroll taxes, within
30 days of December 31, 2008. You must be employed on December 31, 2008 to be eligible for this
bonus.

Annual Bonus Opportunity

As Executive Vice President, you will be eligible to earn an annual bonus with a target amount
equal to 70% of your annualized base salary, subject to the achievement of certain operating
targets for the group and certain individual targets. You can earn up to 200% of your targeted
bonus if operating targets are exceeded. For 2007, your bonus payment will be prorated based on
your actual start date and guaranteed to the greater of the actual calculated award or 100% of
target amount.

Annual Long Term Incentive Compensation

Upon commencement of your employment, and subject to Compensation Committee approval, you will be
granted options to purchase 60,000 shares of Dean Foods common stock. The exercise price of the
options will be the closing price of a share of Dean Foods stock on your date of hire. The options
will vest in equal installments over a period of three years, beginning on the first anniversary of
the date of the grant. You will also be awarded 24,000 restricted shares. These restricted shares
will vest in equal installments over a five-year period, beginning on the first anniversary of the
date of grant, or earlier if certain financial performance targets are met. You will be eligible
for future equity grants under the Dean Foods Long Term Incentive Program in the future, commencing
in January 2009. The amount and nature of future long-term incentive awards will be determined by
the Board of Directors.

 

 

Replacement Long Term Incentive Awards

Upon commencement of your employment, and subject to Compensation Committee approval, you will be
granted an additional number of options to purchase shares of Dean Foods common stock having a
Black Scholes value, as determined by Mercer Consulting, of $1,100,000 (representing approximately
110,000 options based on current valuation). These options will have the same terms and conditions
as your annual stock option awards referenced above. In addition, you will be granted restricted
shares having a value of $600,000 (representing approximately 24,000 restricted shares based on
current valuation). These shares will vest in equal installments over a five year period beginning
on the first anniversary of the date of grant.

Additional Long Term Incentives

In addition to your annual long term incentive eligibility, you will also receive 5 annual grants
of 5,000 restricted shares per year until November 1, 2011 (for a total of 25,000 restricted
shares). The first of these annual grants will be within 30 days of your employment date. The
remaining 4 grants will be on the first of the month following the anniversary of your hire date
(the first day of employment with Dean Foods). Each of these 5 grants will vest on November 1,
2012.

You will also receive 5 annual grants of 5,000 restricted shares each year from 2012 through 2016
(for a total of 25,000 restricted shares). You will receive these grants each year on the first of
the month following the anniversary of your employment date. Each of these grants will vest one
year after date of issue.

You must be employed by Dean Foods on the date of issue in order to receive these restricted stock
grants.

Executive Deferred Compensation Plan

You will be eligible to participate in the Executive Deferred Compensation Plan. The plan provides
eligible executives with the opportunity to save on a tax-deferred basis. You will receive general
information and enrollment materials at your home address approximately 30 — 45 days after your
start date.

Paid Time Off (PTO)

You will be granted five (5) weeks of PTO. Unused PTO is not carried forward from year to year.

COBRA Support

Should you elect COBRA (health insurance) coverage from your previous employer, Dean Foods will pay
your COBRA premiums (minus your normal Dean Foods contribution) until you become eligible for Dean
Foods benefits (approximately 60 days following hire).

Benefits Plan Reference

Attached to this letter is an overview of Dean Foods’ Health Benefits, savings and 401k programs,
and all other benefits. Additionally, you are eligible for executive benefits that include a
Supplemental Executive Retirement Plan (SERP), a supplemental executive LTD program, and company
paid annual physical. If you have questions regarding these programs or eligibility, please call
Fanny Sheumaker at 214-721-3657.

 

 

Home Office

Dean Foods will provide you with the equipment for a home office in Omaha until you and your family
relocate to the Dallas area.

Relocation Benefits

Dean Foods wants your move to Dallas to be a positive one. The relocation benefits provided to you
include: household goods move; temporary housing; home visits; in-transit expenses; home sale
assistance; duplicate housing costs; and, new home closing assistance. The policy describing these
benefits is enclosed. If you have questions regarding these programs or eligibility, please call
Doug Johnson at 214-721-1258.

Insider Trading

As an executive officer, you will have access to sensitive business and financial information.
Accordingly, you will be prohibited from trading Dean Foods securities (or, in some circumstances,
the securities of companies doing business with Dean Foods) from time to time in accordance with
the company’s Insider Trading Policy.

Severance

As a corporate officer, you will also be eligible for benefits under the Dean Foods Company
Executive Severance Plan (“Severance Plan”). In summary, according to the Severance Plan, if your
employment is terminated at any time as a result of a “qualifying termination,” meaning any
termination as a result your voluntary termination for good reason, or your involuntary termination
without cause, all as defined in the Severance Plan, you will receive payment of all base salary
accrued through the date of termination, prior year’s bonus to the extent earned but not paid,
target bonus through the date of termination and all unused vacation/PTO. In addition, you will be
eligible to receive a severance payment equivalent to two years of your base salary and target
bonuses, less lawful deductions. You will be required to execute a release of all claims and such
other agreements as the company may deem necessary or appropriate in order to receive such
severance pay. The actual terms of the Severance Plan will govern your rights to severance and not
this letter.

Change-In-Control Provisions

You will be provided a Change in Control agreement comparable to that currently provided to other
Dean Foods executive officers. In general, this agreement provides benefits of three times your
annual salary and target bonus, plus vesting of all equity awards and continued health coverage for
a two-year period in certain circumstances following a Change in Control. As stated in the Change
in Control Agreement, in order to receive these benefits, your employment must be terminated,
either by the company within two years after a Change in Control, or by you for good reason within
such two-year period, or by you for any reason during the 13th month after a Change in
Control. The details of these provisions are set forth more fully in the enclosed Change of
Control Agreement.

New Hire Processes

You are required to comply with the Dean Foods Code of Ethics, drug screen, and background check as
a condition of employment. You are required to sign the Compliance Certificate contained within
the Code of Ethics at the time your employment begins and periodically thereafter.

Your position also requires that you sign a Non-Compete Agreement (enclosed).

 

 

Conclusion

Gregg, I am very excited about the opportunities at Dean Foods and very excited to have you be a
part of our team. I am confident that with your experience, skills, vision and standards, you will
make significant contributions to our company in the years to come.

	 	 	 	 	 
	 	Best regards,

/s/ Gregg Engles

Gregg Engles

Chairman & CEO

 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 	 	 
	Agreed and accepted:	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Gregg Tanner
	 	 	 	 
	Gregg Tanner	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Date	 	 	 	 
	 
	 	 	 	 	 	 
	cc:

	 	Paul Moskowitz	 	 	 	 
	 

	 	Doug Johnson	 	 	 	 
	 

	 	Fanny Sheumakerexv10w3

 

EXHIBIT 10.3

CHANGE IN CONTROL AGREEMENT

     THIS CHANGE IN CONTROL AGREEMENT (this “Agreement”) is entered into effective as of
November 5, 2007, by and between DEAN FOODS COMPANY, a Delaware corporation (together with its
subsidiaries, the “Company”), and GREGG TANNER (the “Executive”).

RECITALS

     A. The Board of Directors of the Company (the “Board”) has determined that the
interests of the Company will be advanced by providing the key executives of the Company with
certain benefits in the event of the termination of employment of any such executive in connection
with or following a Change in Control (as hereinafter defined).

     B. The Board believes that such benefits will enable the Company to continue to attract and
retain competent and qualified executives, will assure continuity and cooperation of management and
will encourage such executives to diligently perform their duties without personal financial
concerns, thereby enhancing shareholder value and ensuring a smooth transition.

     C. The Executive is a key executive of the Company.

AGREEMENTS

     NOW, THEREFORE, for good and valuable consideration, including the mutual covenants set forth
herein, the parties hereto agree as follows:

     1. Definitions. The following terms shall have the following meanings for purposes of this
Agreement.

     “Affiliate” means any entity controlled by, controlling or under common control with, a person
or entity.

     “Annual Pay” means the sum of (i) an amount equal to the annual base salary rate payable to
the Executive by the Company at the time of termination of his or her employment plus (ii)
an amount equal to the target bonus established for the Executive for the Company’s fiscal year in
which his or her termination of employment occurs.

     “Cause” means the Executive’s (i) willful and intentional material breach of this Agreement,
(ii) willful and intentional misconduct or gross negligence in the performance of, or willful
neglect of, the Executive’s duties, which has caused material injury (monetary or otherwise) to the
Company, or (iii) conviction of, or plea of nolo contendere to, a felony; provided, however, that
no act or omission shall constitute “Cause” for purposes of this Agreement unless the Board or the
Chairman of the Board provides to the Executive (a) written notice clearly and fully describing the
particular acts or omissions which the Board or the

 

 

Chairman of the Board reasonably believes in good faith constitutes “Cause” and (b) an
opportunity, within thirty (30) days following his or her receipt of such notice, to meet in person
with the Board or the Chairman of the Board to explain or defend the alleged acts or omissions
relied upon by the Board and, to the extent practicable, to cure such acts or omissions. Further,
no act or omission shall be considered as “willful” or “intentional” if the Executive reasonably
believed such acts or omissions were in the best interests of the Company.

     “Change in Control” means (1) any “person” (as such term is used in Section 13(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), but specifically
excluding the Company, any wholly-owned subsidiary of the Company and/or any employee benefit plan
maintained by the Company or any wholly-owned subsidiary of the Company) becomes the “beneficial
owner” (as determined pursuant to Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing thirty percent (30%) or more of the combined voting power of
the Company’s then outstanding securities; or (2) individuals who currently serve on the Board, or
whose election to the Board or nomination for election to the Board was approved by a vote of at
least two-thirds (2/3) of the directors who either currently serve on the Board, or whose election
or nomination for election was previously so approved, cease for any reason to constitute a
majority of the Board; or (3) the Company or any subsidiary of the Company shall merge with or
consolidate into any other corporation, other than a merger or consolidation which would result in
the holders of the voting securities of the Company outstanding immediately prior thereto holding
immediately thereafter securities representing more than sixty percent (60%) of the combined voting
power of the voting securities of the Company or such surviving entity (or its ultimate parent, if
applicable) outstanding immediately after such merger or consolidation; or (4) the stockholders of
the Company approve a plan of complete liquidation of the Company or an agreement for the sale or
disposition by the Company of all or substantially all of the Company’s assets, or such a plan is
commenced.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Confidential Information” means all information, whether oral or written, previously or
hereafter developed, acquired or used by the Company or its subsidiaries and relating to the
business of the Company and its subsidiaries that is not generally known to others in the Company’s
area of business, including without limitation trade secrets, methods or practices developed by the
Company or any of its subsidiaries, financial results or plans, customer or client lists, personnel
information, information relating to negotiations with clients or prospective clients, proprietary
software, databases, programming or data transmission methods, or copyrighted materials (including
without limitation, brochures, layouts, letters, art work, copy, photographs or illustrations). It
is expressly understood that the foregoing list shall be illustrative only and is not intended to
be an exclusive or exhaustive list of “Confidential Information.”

     “Good Reason” means any of the following events occurring, without the Executive’s prior
written consent specifically referring to this Agreement, within two (2) years following a Change
in Control:

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     (1) (A) Any material reduction in the amount of the Executive’s Annual Pay, (B) any
material reduction in the amount of Executive’s other incentive compensation opportunities,
or (C) any material reduction in the aggregate value of the Executive’s benefits as in
effect from time to time (unless in the case of either B or C, such reduction is pursuant to
a general change in compensation or benefits applicable to all similarly situated employees
of the Company and its Affiliates);

     (2) (A) the removal of the Executive from the Executive’s position as Executive Vice
President of the ultimate parent of the business of the Company or (B) any other significant
reduction in the nature or status of the Executive’s duties or responsibilities;

     (3) transfer of the Executive’s principal place of employment to a metropolitan area
other than that of the Executive’s place of employment immediately prior to the Change in
Control; or

     (4) failure by the Company to obtain the assumption agreement referred to in Section 7
of this Agreement prior to the effectiveness of any succession referred to therein, unless
the purchaser, successor or assignee referred to therein is bound to perform this Agreement
by operation of law.

     “Termination Pay” means a payment made by the Company to the Executive pursuant to Section
2(a)(ii) or Section 2(b)(ii) hereof.

     2. Benefits.

          (a) Involuntary or Constructive Termination. In the event that the Executive’s
employment with the Company or its successor is terminated by the Company or its successor without
Cause or by the Executive for Good Reason in connection with or within two years after a Change in
Control, the Executive shall be entitled to the following payments and other benefits:

               (i) The Company shall pay to the Executive a cash payment in an amount equal to the sum
of (A) the Executive’s accrued and unpaid salary as of his or her date of termination of
employment, plus (B) his or her accrued and unpaid bonus, if any, for the Company’s prior
fiscal year, plus (C) an amount equal to the greater of the following, paid on a pro rata
basis for the portion of the year between January 1 and the date of the Executive’s
termination of employment: (x) Executive’s target bonus for the year of termination, or (y)
the actual bonus to which the Executive would be entitled in the year of termination, plus
(D) reimbursement for all expenses reasonably and necessarily incurred by the Executive (in
accordance with Company policy) prior to termination in connection with the business of the
Company. This amount shall be paid on the date of the Executive’s termination of
employment.

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               (ii) The Company shall pay to the Executive a cash payment in an amount equal to three
(3) times the Executive’s Annual Pay. This amount shall be paid by the Company in
accordance with Section 2(e) hereof.

               (iii) The Company shall pay to the Executive a cash payment in an amount equal to the
sum of (A) the Executive’s unvested account balance under the Company’s 401(k) plan, and (B)
three (3) times the amount of the most recent matching contribution that the Company paid
into the Executive’s 401(k) account. This amount shall be paid as soon as administratively
practicable after the date of the Executive’s termination of employment.

               (iv) The Executive and his or her eligible dependents shall be entitled for a period of
two (2) years following his or her date of termination of employment to continued coverage,
on the same basis as similarly situated active employees, under the Company’s group health,
dental, long-term disability and life insurance plans as in effect from time to time (but
not any other welfare benefit plans or any retirement plans); provided that coverage under
any particular benefit plan shall expire with respect to the period after the Executive
becomes covered under another employer’s plan providing for a similar type of benefit. In
the event the Company is unable to provide such coverage on account of any limitations under
the terms of any applicable contract with an insurance carrier or third party administrator,
the Company shall pay the Executive an amount equal to the cost of such coverage.

               (v) The Company shall pay all costs and expenses, up to a maximum of $50,000, related
to outplacement services for the Executive, the provider of which shall be selected by the
Executive in his or her sole discretion. This amount shall be paid directly to the provider
of such services.

          (b) Voluntary Termination. If, at any time during the 13th month after a
Change in Control, the Executive voluntarily terminates his or her employment with the Company for
any reason, the Executive shall be entitled to receive the same payments and benefits as set forth
in Sections 2(a)(i) through 2(a)(v) hereof.

          (c) Accelerated Vesting. All of the Executive’s unvested awards under the Company’s
stock award plans shall automatically and immediately vest in full upon the occurrence of a Change
in Control.

          (d) No Duplication; Other Severance Pay. There shall be no duplication of severance
pay in any manner. In this regard, the Executive shall not be entitled to Termination Pay
hereunder for more than one position with the Company and its Affiliates. If the Executive is
entitled to any notice or payment in lieu of any notice of termination of employment required by
Federal, state or local law, including but not limited to the Worker Adjustment and Retraining
Notification Act, the severance compensation to which the Executive would otherwise be entitled
under this Agreement shall be reduced by the amount of any such payment in lieu of notice. If
Executive is entitled to any severance or termination payments under any employment or other
agreement (other than stock award agreements) with the Company or any of its

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Affiliates, the severance compensation to which Executive would otherwise be entitled under
this Agreement shall be reduced by the amount of such payment. Except as set forth above, the
foregoing payments and benefits shall be in addition to and not in lieu of any payments or benefits
to which the Executive and his or her dependents may otherwise be entitled to under the Company’s
compensation and employee benefit plans. Nothing herein shall be deemed to restrict the right of
the Company from amending or terminating any such plan in a manner generally applicable to
similarly situated active employees of the Company and its Affiliates, in which event the Executive
shall be entitled to participate on the same basis (including payment of applicable contributions)
as similarly situated active executives of the Company and its Affiliates.

          (e) Mutual Release. Termination Pay shall be conditioned upon the execution by the
Executive and the Company of a valid mutual release to be prepared by the Company pursuant to which
the Executive and the Company shall each mutually release each other, to the maximum extent
permitted by law, from any and all claims either party may have against the other that relate to or
arise out of the employment or termination of employment of the Executive, except such claims
arising under this Agreement, any employee benefit plan, or any other written plan or agreement (a
“Mutual Release”). The full amount of Termination Pay shall be paid in a lump sum in cash
to the Executive within ten (10) days following receipt by the Company of a Mutual Release which is
properly executed by the Executive; provided, however, that in the event applicable law allows the
Executive to revoke the Mutual Release for a period of time, and the Mutual Release is not revoked
during such period, the full amount of Termination Pay shall be paid to the Executive following the
expiration of such period.

     3. Excise Taxes.

          (a) Gross-Up Payment. Anything in this Agreement to the contrary notwithstanding and
except as set forth below, if it is determined that any payment or distribution (a
“Payment”) by the Company to or for the benefit of the Executive (whether paid or payable
or distributed or distributable pursuant to the terms of this Agreement or otherwise, but
determined without regard to any additional payments required under this Section 3) including,
without limitation, vesting of options, would be subject to the excise tax imposed by Section 4999
of the Code, or if any interest or penalties are incurred by the Executive with respect to such
excise tax (such excise tax, together with any such interest and penalties, being hereinafter
collectively referred to as the “Excise Tax”), then the Executive shall be entitled to
receive an additional payment (a “Gross-Up Payment”) in an amount sufficient to pay all
taxes (including any interest or penalties imposed with respect to such taxes), including, without
limitation, any income taxes (and any interest and penalties imposed with respect thereto) and
Excise Tax imposed upon the Gross-Up Payment.

          (b) Calculation of Gross-Up Payment. Subject to the provisions of paragraph (c) of
this Section 3, all determinations required to be made under this Section 3, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to
be used in arriving at such determination, shall be made by a certified public accounting firm
selected by the Company and reasonably acceptable to the Executive (the “Accounting Firm”),
which shall be retained to provide detailed supporting calculations both to

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the Company and the Executive. If the Accounting Firm is serving as accountant or auditor for
the individual, entity or group effecting the Change in Control, the Executive shall have the right
to 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 paid solely by the Company. Any Gross-Up
Payment, as determined pursuant to this Section 3, shall be paid by the Company to the Executive
within five (5) days of the receipt of the Accounting Firm’s determination. Any determination by
the Accounting Firm shall be binding upon the Company and the Executive. As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the initial determination
by the Accounting Firm hereunder, it is possible that Gross-Up Payments which should have been made
will not have been made by the Company (“Underpayment”), consistent with the calculations
required to be made hereunder. If the Company exhausts its remedies pursuant to paragraph (c) of
this Section 3 and the Executive thereafter is required to pay an Excise Tax in an amount that
exceeds the Gross-Up Payment received by the Executive the Accounting Firm shall determine the
amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by
the Company to or for the benefit of the Executive.

          (c) Contested Taxes. The Executive shall notify the Company in writing of any claim
by the Internal Revenue Service that, if successful, would result in an Underpayment. Such
notification shall be given as soon as practicable but no later than ten (10) business days after
the Executive is informed in writing of such claim and shall apprise the Company of the nature of
such claim and the date on which such claim is requested to be paid or appealed. The Executive
shall not pay such claim prior to the expiration of the 30-day period following the date on which
it gives such notice to the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due). If the Company notifies the Executive in writing prior
to the expiration of such period that it desires to contest such claim, the Executive shall:

               (i) give the Company any information reasonably requested by the Company relating to
such claim,

               (ii) take such action in connection with contesting such claims as the Company shall
reasonably request in writing from time to time, including, without limitation, accepting
legal representation with respect to such claim by an attorney reasonably selected by the
Company,

               (iii) cooperate with the Company in good faith in order to effectively contest such
claim, and

               (iv) permit the Company to participate in any proceedings relating to such claim;

     provided, however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such contest and shall
indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income

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tax (including interest and penalties with respect thereto) imposed as a result of such
representation and payment of costs and expenses. Without limitation on the foregoing provisions
of this paragraph (c), the Company shall control all proceedings taken in connection with such
contest and, at its sole option, may pursue or forego any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect of such claim and may,
at its sole option, either direct the Executive to pay the tax claimed and sue for a refund or to
contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to
a determination before any administrative tribunal, in a court of initial jurisdiction and in one
or more appellate courts, as the Company shall determine; provided, however, that if the Company
directs the Executive to pay such claim and sue for a refund, the Company shall advance the amount
of such payment to the Executive, on an interest-free basis, and shall indemnify and hold the
Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or
penalties with respect thereto) imposed with respect to such advance or with respect to any imputed
income with respect to such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive with respect to
which such contested amount is claimed to be due is limited solely to such contested amount.
Furthermore, the Company’s control of the contest shall be limited to issues with respect to the
amount of the Gross-Up Payment, and the Executive shall be entitled to settle or contest, as the
case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.

          (d) Refunds. If, after the receipt by the Executive of an amount advanced by the
Company pursuant to this Section 3, the Executive becomes entitled to receive any refund with
respect to such claim, the Executive shall promptly pay to the Company the amount of such refund
(together with any interest paid or credited thereon after taxes applicable thereto).

     4. Certain Covenants by the Executive.

          (a) Covenant Not to Compete or Solicit. In consideration of the payments made to the
Executive pursuant to this Agreement, the Executive hereby agrees that, during the term of his or
her employment with the Company or any of its Affiliates and for a period of two years thereafter,
he or she will not, directly or indirectly, individually or on behalf of any person or entity other
than the Company or any of its Affiliates:

               (i) Become associated with (as defined below) any company or business (other than the Company
or any Affiliate of the Company) engaged primarily in the manufacture, distribution, sale or
marketing of any of the Relevant Products (as defined below) in any geographical area in which the
Company or any of its Affiliates operates;

               (ii) Approach, consult, solicit business from, or contact or otherwise communicate, directly
or indirectly, in any way with any Customer (as defined below) in an attempt to (1) divert business
from, or interfere with any business relationship of the Company or any of its Affiliates, or (2)
convince any Customer to change or alter any of such Customer’s existing or prospective contractual
terms and conditions with the Company or any of its Affiliates; or

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               (iii) Solicit, induce, recruit or encourage, either directly or indirectly, any employee of
the Company or any of its Affiliates to leave his or her employment with the Company or any of its
Affiliates, or employ or offer to employ any employee of the Company or any Subsidiary. For the
purposes of this section, an employee of the Company or any Subsidiary shall be deemed to be an
employee of the Company or any Subsidiary while employed by the Company and for a period of 60 days
thereafter.

          (b) Protection of Confidential Information. The Executive agrees that he or she will
not at any time during or following his or her employment by the Company, without the Company’s
prior written consent, divulge any Confidential Information to any other person or entity or use
any Confidential Information for his or her own benefit. Upon termination of employment, for any
reason whatsoever, regardless of whether either party may be at fault, the Executive will return to
the Company all physical Confidential Information in the Executive’s possession.

          (c) Nondisclosure of Agreement. The Executive agrees, at all times during his or her
employment by the Company, not to disclose or discuss in any manner (whether to individuals inside
or outside the Company), the existence or terms of, this Agreement without the prior written
consent of the Company, except to the extent required by law.

          (d) Nondisparagement. The Executive and the Company agree that, for so long as the
Executive remains employed by the Company, and for a period of two years following the termination
of the Executive’s employment, neither the Executive nor the Company will make or authorize any
public statement, whether orally or in writing, that disparages the other party hereto with respect
to such other party’s business interests or practices; provided, that neither party shall be
restricted in connection with statements made in context of any litigation, arbitration or similar
proceeding involving the other party hereto.

          (e) Extent of Restrictions. The Executive acknowledges that the restrictions
contained in this Section 4 correctly set forth the understanding of the parties at the time this
Agreement is entered into, are reasonable and necessary to protect the legitimate interests of the
Company, and that any violation will cause substantial injury to the Company. In the event of any
such violation, the Company shall be entitled, in addition to any other remedy, to preliminary or
permanent injunctive relief. If any court having jurisdiction shall find that any part of the
restrictions set forth in this Agreement are unreasonable in any respect, it is the intent of the
parties that the restrictions set forth herein shall not be terminated, but that this Agreement
shall remain in full force and effect to the extent (as to time periods and other relevant factors)
that the court shall find reasonable.

     5. Tax Withholding. All payments to the Executive under this Agreement will be subject to the
withholding of all applicable employment and income taxes.

     6. Severability. In the event that any provision or portion of this Agreement shall be
determined to be invalid or unenforceable for any reason, the remaining provisions of this
Agreement shall be unaffected thereby and shall remain in full force and effect.

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     7. Successors. This Agreement shall be binding upon and inure to the benefit of the Company
and any successor of the Company. The Company will require any successor to all or substantially
all of the business and/or assets of the Company to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be required to perform
if no succession had taken place.

     8. Entire Agreement. By executing this Agreement, the Executive agrees that any and all
agreements executed between the Company (or any subsidiary of the Company or any predecessor of the
Company or any subsidiary of the Company) and the Executive prior to the date hereof regarding
benefits resulting from a Change in Control are hereby nullified and cancelled in their entirety,
and this Agreement shall substitute for and fully replace any such prior agreements. This
Agreement shall constitute the entire agreement between the parties hereto with respect to the
subject matter hereof. This Agreement may not be modified in any manner except by a written
instrument signed by both the Company and the Executive.

     9. Notices. Any notice required under this Agreement shall be in writing and shall be
delivered by certified mail return receipt requested to each of the parties as follows:

To the Executive:

GREGG TANNER

3080 South 99th Avenue

Omaha, Nebraska 68124

To the Company:

DEAN FOODS COMPANY

2515 McKinney Avenue, Suite 1200, LB 30

Dallas, Texas 75201

Attn.: General Counsel

Tel.: 214-303-3400

Fax: 214-303-3499

     10. Governing Law. The provisions of this Agreement shall be construed in accordance of the
laws of the State of Delaware, except to the extent preempted by ERISA or other federal laws, as
applicable, without reference to the conflicts of laws provisions thereof.

9

 

     IN WITNESS WHEREOF, the Executive and the Company have executed this Agreement as of the date
and year first above written.

	 	 	 	 	 
	 

	 	DEAN FOODS COMPANY	 	 
	 
	 	 	 	 
	 

	 	/s/ Paul Moskowitz
 

Name: Paul Moskowitz

Title: Executive Vice President – Human Resources
	 	 
	 
	 	 	 	 
	 

	 	/s/ Gregg Tanner	 	 
	 

	 	 	 	 
	 

	 	GREGG TANNER	 	 

10

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