Document:

exv10w4

Exhibit 10.4

FIRST AMENDED INDEPENDENT CONTRACTOR

AND NONCOMPETITION AGREEMENT

THIS FIRST AMENDED INDEPENDENT CONTRACTOR AND NONCOMPETITION AGREEMENT (the “First Amended
Agreement”), dated as of the 4th day of April 2008, between Dean Foods Company (“Dean Foods” or
“the Company”), a Delaware Corporation, having its principal place of business at 2515 McKinney
Avenue, Suite 1200, Dallas, Texas 75201, and Pete Schenkel (“Mr. Schenkel”) provides as follows:

WHEREAS, the parties entered into an original Independent Contractor and Noncompetition Agreement
dated December 1, 2005, (the “Original Agreement”)that provided for Mr. Schenkel to provide Senior
Advisory Services, as defined in the Original Agreement, to the Chief Executive Officer, Chairman
of the Board, and the Dairy Group President;

WHEREAS, the Original Agreement provided that Mr. Schenkel would cease providing Senior Advisory
Services on December 31, 2009, if the Original Agreement was not terminated before December 31,
2009 pursuant to its terms;

WHEREAS, the Original Agreement contemplated an Employment Agreement between the Company and Mr.
Schenkel that, as of the date of this First Amended Agreement, has been terminated on its own terms
based on the passage of time, and the parties have performed all that was required of them under
the Employment Agreement;

WHEREAS, the Company wishes to retain access to Mr. Schenkel’s knowledge and experience as a senior
advisor for an additional two years above what was agreed upon in the Original Agreement;

WHEREAS, Section 11(b) of the Original Agreement provides that the Original Agreement may not be
modified except in a written document executed by both parties to the Original Agreement;

WHEREAS, the Company still desires to ensure that, to the extent and for the period of Mr.
Schenkel’s service to the Company and for a reasonable period thereafter, it may maintain the
confidentiality of its trade secrets and proprietary information, goodwill and other legitimate
business interests, each of which could be compromised; and

WHEREAS, the parties wish to memorialize this modification to the Original Agreement through this
First Amended Agreement;

NOW, THEREFORE, it is agreed that the Original Agreement is amended as follows;

     1. The first sentence of Section 1 of the Original Agreement (“Services”) is amended to the
following:

 

 

During the period from your Resignation Date, as defined in the Employment
Agreement, to December 31, 2011 (the “Senior Advisory Services Period”), your
responsibilities under this Agreement will be to provide general advice and
consultation to the Chief Executive Officer, Chairman of the Board, and the Dairy
Group President on matters of strategy and execution, as well as to provide
assistance with respect to such specific operating initiatives as may be requested
from time to time (“Senior Advisory Services”).

     2. The entirety of Section 2 of the Original Agreement (“Senior Advisory Service Fees”) is
amended to following:

For your Senior Advisory Services you will be paid a Senior Advisory Services fee
at the annual rate of $200,000.00 (the “Senior Advisory Services Fee”). Such
Senior Advisory Services Fee will be paid in approximately equal monthly
installments, in arrears. In addition, during the Senior Advisory Services Period,
you will be eligible to receive an additional payment. Your target payment will be
50% of the Senior Advisory Services Fee. Payment of any annual additional payment
will be subject to the achievement of certain financial/operating targets which are
consistent with those targets established by the Company’s Compensation Committee
for the payment of incentive bonuses to the Company’s corporate executive officers.
Each year, you will have the opportunity to earn up to 200% of your targeted bonus
if financial/operating targets are exceeded by specified amounts or percentages.
Furthermore, during the Senior Advisory Services period, the Company will continue
to pay for the perquisites and benefits currently provided to you by the Company,
which include but are not limited to club membership, payment of business expenses,
car allowance, office and secretarial assistance, long term disability, executive
long term disability, life insurance, exec-u-care, medical insurance, dental
insurance, and a prescription drug benefit. Notwithstanding the foregoing, as
referenced in Section 11(b) of the Original Agreement, the provisions of this
section will not in any way modify, limit, alter, impair or supersede the Executive
Medical Agreement, executed on March 19, 1999 and amended on July 1, 2000, between
Mr. Schenkel and Southern Foods Group, L.P. In addition, in the event that the
Senior Advisory Period is ended by the Company prior to December 31, 2011 and, in
any such case, you have not theretofore breached any of your obligations in
Sections 4, 5, or 6, the Company shall pay you a single lump sum payment, six
months and one day after the termination of your services, equal to the aggregate
amount of the Senior Advisory Services Fees that would have been payable during the
remainder of the Senior Advisory Services Period.

     3. The entirety of Section 7 of the Original Agreement (“Payments”) is amended to the
following:

2

 

In consideration for the covenants provided by you in Sections 4, 5, and 6 hereof,
and subject to your continued compliance with the covenants set forth therein, the
Company shall pay you four hundred and twenty-five thousand dollars on each of
January 2, 2009, January 2, 2010, January 2, 2011, January 2, 2012, January 2,
2013, and January 2, 2014. Notwithstanding the foregoing, in the event of your
death prior to the expiration of the Non-Compete Period, and so long as you have
not heretofore breached any of your obligations in Sections 4, 5, or 6, any
payments remaining to be paid under the Agreement shall be paid in a single lump
sum within 30 days of your death. Notwithstanding the foregoing, if the covenants
in Section 5 and 6 of this Agreement are held to be unenforceable (other than
because they have been automatically terminated pursuant to the terms of this
Agreement), the Company will not have received the consideration for which it
bargained, and it shall have no further obligation to make any further payments
under this Section 7.

     4. No other sections of the Original Agreement are to be amended and will remain in full force
and effect.

IN WITNESS THEREOF, the parties have executed and delivered this First Amended Independent Contract
and Noncompetition Agreement as of the date first set forth above.

	 	 	 	 	 
	 	DEAN FOODS COMPANY

 	 
	 	/s/ Gregg L. Engles
 	 
	 	Name:  	Gregg L. Engles 	 
	 	Title:  	Chairman and Chief Executive Officer 	 
	 
	 	 	 
	 	     /s/ Pete Schenkel
 	 
	 	Pete Schenkel 	 
	 	 	 
	 

3exv10w6

Exhibit 10.6

Revised

July 8, 2008

Mr. Steve Kemps

2515 McKinney Avenue

Suite 1200

Dallas, TX 75201

Dear Steve:

Congratulations on your promotion to Executive Vice President, General Counsel and Corporate
Secretary. This position will report to Gregg Engles.

Here are the specifics of your offer:

Effective Date

The effective date of your new position is August 1, 2008.

Base Salary

You will be paid $16,667.67 on a semi-monthly basis, which equates to an annual salary of $400,000
(+23.1%). Your salary will be reviewed annually by the Compensation Committee (next in March,
2009).

Annual Incentive Opportunity

You will continue to be eligible to earn an annual incentive as a participant in the 2008 Dean
Corporate Short-term Incentive Plan. Effective August 1, 2008, your new target equals 60% of your
annualized base salary, subject to the achievement of certain financial targets for Dean Corporate
and specific individual objectives. For 2008, your incentive will be prorated based on the amount
of time you were in each position.

Annual Long Term Incentive

You will continue to be eligible for future equity grants under the Dean Foods Long Term Incentive
Program beginning in February 2009. The amount and nature of future long-term awards will be
determined by the Dean Foods Board of Directors.

One Time Long Term Incentive Promotion Grant

On the date of the next meeting of the Compensation Committee of the Board of Directors, you will
be granted options to purchase 18,000 shares of Dean Foods common stock. Additionally,

 

 

you will be granted 6,000 Dean Foods Restricted Stock Units. The options will vest in equal
installments over a period of three years, beginning on the first anniversary date of the date of
the grant. Restricted shares will vest over a period of five years, beginning on the first
anniversary date of the date of grant, or earlier if certain financial performance targets are met.

Executive Deferred Compensation

You will continue to 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.

Paid Time Off

You will now be eligible for twenty-five (25) days of PTO. Unused PTO is not carried forward from
year to year unless state law requires.

Benefits

You will continue to be eligible for FlexSelect benefits (medical, dental, vision), 401k, and more.
You are also eligible to participate in the Supplemental Executive Retirement Plan (SERP),
Executive LTD program, and company paid annual physical.

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.

Indemnity Agreement

The Director and Officer Indemnity Agreement between you and the Company, dated March 9, 2006,
shall remain in full force and effect.

Severance

As an Executive 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

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.

Conclusion

Steve, I am very excited about your new opportunity, and I continue to look forward to your future
contributions to Dean Foods.

	 	 	 	 	 
	 	Best regards,

 	 
	 	/s/ Paul Moskowitz
 	 

	 
	 	Paul Moskowitz 	 
	 	Executive Vice President, Human Resources 	 
	 

	 	 	 
	Agreed and accepted:
	 	 
	 
	 	 
	/s/ Steve Kemps
	 	 
	 

Steve Kemps

	 	 
	July 8, 2008
	 	 
	Date

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