Document:

exv10w4

 

Exhibit 10.4

PROPRIETARY INFORMATION, INVENTIONS

AND NON-COMPETE AGREEMENT

     THIS PROPRIETARY INFORMATION, INVENTIONS AND NON-COMPETE AGREEMENT (this “Agreement”), dated
as of the _7th___day of September, 2005, between Dean Foods Company, a Delaware corporation,
having its principal place of business at 2515 McKinney Avenue, Suite 1200, Dallas TX 75201, and
Alan Bernon (“Employee”).

     WHEREAS, the Dean Foods Company, or one or more of its affiliates or subsidiaries (the
“Company”) has offered Employee employment as President of Dean Foods Dairy Group; a position which
will result in Employee acquiring substantial knowledge of the operations and practices of the
business of Company;

     WHEREAS, the Company desires to prevent any competitive business from securing or utilizing
the services of Employee, to the extent and for the period of Employee’s employment and for a
reasonable period thereafter; and

     WHEREAS, as a condition to the employment of Employee, the Company has required that Employee
enter into this Agreement.

     NOW, THEREFORE, it is agreed as follows:

     1. Acknowledgments. Employee acknowledges that (i) Company is engaged in a continuous
program of research, development, and production respecting its business throughout the United
States (the foregoing, together with any other businesses in which Company engages, from the date
hereof to the date of the termination of Employee’s employment with Company, is hereinafter
referred to as the “Company Business”); (ii) Employee’s work for Company allows Employee access to
trade secrets of, and confidential information concerning, Company; (iii) the Company Business is
national and international in scope; (iv) Company would not have agreed to employ Employee but for
the agreements and covenants contained in this Agreement; and (v) the agreements and covenants
contained in this Agreement are necessary and essential to protect the business, goodwill, and
customer relationships that Company has expended significant resources to develop.

     2. Inventions. If Employee individually or jointly makes, conceives of, or reduces to
practice any invention, technique, recipe, process, improvement, modification, development,
documentation, data, design, idea, discovery, trademark, trade secret, formula, process, or other
know-how, whether patentable or not, in the course of performing services for Company, that
directly relates to the Company Business (collectively, “Inventions”), Employee will and hereby
does assign to Company Employee’s entire right, title and interest in and to such Inventions.
Employee agrees that all Inventions shall be the sole property of Company and its assigns, and
Company and its assigns shall be the sole owner of all patents, copyrights, and other rights in
connection therewith. Employee will disclose any such Inventions (to the extent Employee knows such
inventions are “Inventions” as defined herein) to an officer of Company and will, upon request,
promptly sign a specific assignment of title to Company and do anything else reasonably necessary
without additional compensation to enable Company to secure patent, trade secret, or any other
proprietary rights in the United States or foreign countries. Employee agrees to execute any
documents deemed necessary or advisable by Company to effect the terms of this paragraph. Employee
agrees that after

1

 

termination of employment with Company Employee shall not use any Inventions, except in
furtherance of the Company Business and except to the extent such Inventions are in the public
domain through no fault of Employee.

     3. Non-Disclosure. Employee recognizes that Company competes in a highly competitive
field and that Company possesses and will continue to possess information of commercial value that
relates to the Company Business, including but not limited to trade secrets, technical and
scientific information, financial business information, processes, recipes, formulas, data,
know-how, improvements, inventions, product concepts, discoveries, developments, designs,
inventions, techniques, marketing plans, strategies, forecasts, new products, blueprints,
specifications, programs, ideas, customer lists, vendor lists, pricing and other structures,
marketing and business strategies, budgets, projections, licenses, costs, financial data, and
plans, proposals and information about Company’s employees and/or consultants (collectively,
“Proprietary Information”). Notwithstanding the foregoing, Proprietary Information shall not
include information that is publicly available when received, or thereafter becomes publicly
available through no fault of Employee or is otherwise disclosed by the Company to another party
without obligation of confidentiality. Employee agrees that the Proprietary Information constitutes
a unique and valuable asset which is essential to Company’s business success, and that any release
of Proprietary Information would be harmful to Company and/or its customers. To protect Company’s
Proprietary Information, Employee agrees that at all times, including during and after the term of
Employee’s employment, Employee will not disclose to any person, firm, company, or corporation or
use for Employee’s own benefit or for the benefit of any third party (except in furtherance of
Company Business or affairs of Company) any and all Proprietary Information that Employee may have
acquired in the course of or as an incident to Employee’s employment with Company. Employee
further agrees to take all reasonable precautions to protect against the intentional, negligent, or
inadvertent disclosure by Employee of Company’s Proprietary Information to any other person or
business entity, except in furtherance of the Company Business.

     4. Non-Competition. Employee understands and agrees that during Employee’s employment
with Company, Employee will be provided access to specialized information related to Company
Business and trade secrets, as well as Company’s customers and their confidential information.
Employee further agrees that if this information were used in competition against Company, Company
would experience serious harm and the competitor would have a unique advantage against Company.
Employee hereby covenants and agrees that (A) at no time during Employee’s employment with Company
and (B) at no time until the two years from the date of Employee’s termination (the “Non-Compete
Period”), will Employee (i) develop, own, manage, operate, or otherwise engage in, participate in,
represent in any way or be connected with, as officer, director, partner, owner, employee, agent,
independent contractor, consultant, proprietor, stockholder (except for the ownership of a less
than five percent equity interest in a publicly traded company), or otherwise, any company or
business engaged primarily, or as a substantial part of its business, in the manufacture,
distribution, sale or marketing of any Relevant Products in any geographic territory (within or
outside the United States) in which Company does business; or (ii) act in any way, directly or
indirectly, with the purpose or effect of soliciting, diverting or taking away any business,
customer, client, supplier, or good will of Company. Employee acknowledges that this covenant has a
unique, substantial, and immeasurable value to Company.

2

 

As used herein, “Relevant Products” means (i) milk and milk based beverages, (ii) creams and
creamers, (iii) ice cream and ice cream novelties, (iv) ice cream mix, and (v) cultured dairy
products.

Notwithstanding the foregoing, the restrictions of this Section 4 shall terminate immediately if
Employee’s employment with the Company is involuntarily terminated by the Company without “Cause.”
“Cause” shall mean: (a) conviction of Employee of any crime deemed by the Company to make continued
employment untenable; (b) any act of gross negligence or willful misconduct in connection with your
employment with the Company; (c) any act of dishonesty on the part of Employee whether relating to
the Company or any of its affiliates, employees, agents or representatives; (d) failure by Employee
to comply with the Dean Foods Code of Ethics, or any similar conduct of Employee which brings the
Company or any of its affiliates into disrepute. In each case, any termination for cause will not
be effective unless the Board of Directors of the Company has provided you with (i) written notice
of the Board’s intention to terminate you for cause, and (ii) an opportunity for you to appear
before the Board to discuss any such termination. No act or omission shall constitute the basis of
a termination for cause if such act or omission is taken or omitted at the request of the Board or
another senior officer of the Company, or is based upon the advice of counsel to the Company.

     5. Non-Solicitation. Employee hereby covenants and agrees that at no time during
Employee’s employment with the Company and during the Non-Compete Period, will Employee (i)
recruit, hire, assist or solicit, directly or indirectly, any of Company’s employees to leave the
employ of Company or (ii) solicit any customer or prospective customer of Company for the purpose
of (1) inducing or otherwise intending to cause such customer or prospective customer to alter or
end its business relationship with Company or (2) interfering with Company’s business relationship
with such customer or prospective customer or (3) causing such customer or prospective customer to
purchase products and/or services competitive with those of Company. For the purposes of this
Agreement, “customer” shall mean any company that was a customer of Company at any time during the
term of Employee’s employment with Company, and “prospective customer” shall mean any company that,
to Employee’s knowledge, was actively solicited by Company at any time during the term of
Employee’s employment with Company.

     6. Remedies. Employee acknowledges, understands, and agrees that the restrictions
contained in Paragraphs 2, 3, 4 and 5 of this Agreement are reasonable, fair, and equitable in
scope, terms, geographic area and duration, are necessary to protect the legitimate business
interests and good will of Company, and are a material inducement to Company to employ Employee and
to enter into this Agreement, and that any breach or threatened breach of such restrictions would
cause Company substantial and irreparable harm for which there is no adequate remedy at law.
Therefore, Employee agrees that in the event of any such breach or threatened breach, any unvested
stock options, restricted stock awards or other equity grants shall be immediately canceled and all
of Employee’s rights thereunder shall be immediately terminated. In addition, if Company deems
such action warranted by the particular circumstances, Company shall be entitled to equitable
relief including, but not limited to, temporary, preliminary, and permanent injunctive relief,
including the issuance of a temporary restraining order, in order to secure the specific
performance of this Agreement without the necessity of posting bond or security, which Employee
expressly waives. Employee agrees that

3

 

the rights of Company to obtain injunctive relief shall not be considered a waiver of
Company’s rights to seek any other remedies it may have at law or in equity.

     The restrictions set forth herein shall be construed as a series of separate and severable
covenants. Employee agrees that if in any proceeding, the tribunal refuses to enforce fully any
covenants contained herein because such covenants cover too extensive a geographic area or too long
a period of time or for any other reason whatsoever, any such covenant shall be considered
divisible both as to duration and geographic area so that each month of a specified period shall be
deemed a separate period of time and each county in each particular state (or such other geographic
subdivision as the tribunal determines is reasonable) a separate geographic area, resulting in an
intended requirement that the longest lesser period of time or the largest lesser geographic area
found by such tribunal to be a reasonable restriction shall remain an effective restrictive
covenant specifically enforceable against Employee. Further, the covenants contained in Paragraphs
2, 3, 4 and 5 shall be construed as agreements independent of any other provision of this
Agreement, and the existence of any claim or cause of action of Employee against Company or any of
its employees, agents, shareholders, directors, or officers, whether predicated on this Agreement
or otherwise, shall not constitute a defense to enforcement by Company of any of these covenants.

     7. Return of Records. Upon termination of employment, Employee agrees to return to
Company all documents (whether electronic or written), notes, drawings, data, records, materials
and other property of whatever nature received from or created for Company, and any and all copies
thereof including, but not limited to, those documents, records, and materials containing or
relating to Proprietary Information. Employee agrees that all such documents that are currently in
Employee’s possession or control or which may come into Employee’s possession or control in the
future shall be the property of Company.

     8. Miscellaneous.

          (a) Severability. Nothing in this Agreement shall be construed so as to require the
commission of any act contrary to law and wherever there is any conflict between any provision of
this Agreement and any law, statute, ordinance, order or regulation, the latter shall prevail, but
in the event of any conflict, any provision of this Agreement shall be curtailed and limited only
to the extent necessary to bring it within applicable legal requirements. If any provision of this
Agreement should be held invalid or unenforceable, the remaining provisions shall be unaffected by
the holding.

          (b) Complete Agreement. This Agreement contains the entire agreement and understanding
between the parties relating to the subject matter hereof, and supersedes any prior understandings,
agreements, or representations by or between the parties, written or oral, relating to the subject
matter hereof. It may not be modified, except in a written document executed by both parties to
this Agreement.

          (c) Other Agreements. Employee represents and warrants that Employee is not a party to
or bound by the provisions of any other agreement which would prevent or impair Employee’s ability
to render services to Company and that Employee’s entering into this Agreement. The parties hereto
each represent and warrant to the other party that the performance of any obligations hereunder by
such party will not violate the provisions of, or cause such party

4

 

to be in default under, any other agreement or contract to which such party is a party or by
which such party is bound.

          (d) Paragraph Headings. The paragraph headings used in this Agreement are included
solely for convenience and shall not affect, or be used in connection with, the interpretation of
this Agreement.

          (e) Governing Law. This Agreement shall be governed by and this Agreement and any
disputes or controversies related hereto shall be construed in accordance with the laws of the
State of Delaware, excluding any choice of law provisions that would apply the laws of any other
jurisdiction.

          (f) Waiver. No delay on the part of either party in exercising any right, power, or
privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of either
party of any right, power, or privilege hereunder, preclude any other or further exercise thereof
or the exercise of any other right, power, or privilege hereunder.

          (g) Assignment. This Agreement and Employee’s rights and obligations hereunder may not
be assigned by Employee. Company may, without Employee’s consent, assign its rights, together with
its obligations, under this Agreement.

          (h) Period of Employment. As used herein, the period of employment includes any time
in which Employee is retained by Company as an employee, director, or consultant.

          (i) Counterparts. This Agreement may be entered into in two or more counterparts, each
of which shall be deemed an original, and together shall be deemed to be one and the same
instrument.

     IN WITNESS WHEREOF, the parties have executed and delivered this Proprietary Information,
Inventions and Non-Compete Agreement as of the date first set forth above.

	 	 	 	 
	 

	 	DEAN FOODS COMPANY	
	 

	 	/s/ Michelle P. Gooslby	
	 

	 	 	
	 

	 	Name:Michelle P. Gooslby	
	 

	 	Title: EVP & General
Counsel	
	 			
	 

	 	/s/ Alan J. Bernon	
	 

	 	 	
	 

	 	Alan Bernon	

5exv10w5

 

Exhibit 10.5

October 7, 2005

Mr. Joseph E. Scalzo

397 Fox Hill Road

Westwood, MA 02090

Dear Joe:

I am pleased to offer you the position of President and Chief Executive Officer of WhiteWave Foods.
This position will report directly to me. We are delighted that you share our passion for this
organization and its tremendous potential. I look forward to having you join our team as soon as
possible after you complete your existing commitments.

Here are the specifics of your offer:

Base
Salary

You will be paid $23,076.92 on a bi-weekly basis, which equates to an annual salary of $600,000.
Your salary will be reviewed annually by our Compensation Committee.

Signing
Bonus

You will receive a one-time signing bonus of $200,000.00, less payroll taxes, within 30 days of
employment. Please note, should you voluntarily leave WhiteWave Foods without good reason during
your first year of employment, you will be responsible for reimbursing WhiteWave Foods on a
pro-rata gross share (n/12 based on number of months worked) of the one-time signing bonus you
receive.

Annual
Bonus Opportunity

As President of WhiteWave Foods, you will be eligible to earn an annual bonus with a target amount
equal to 80% of your annualized salary, subject to the achievement of certain operating targets for
the group. You can earn up to 200% of your targeted bonus if operating targets are exceeded. For
2005, this bonus will be paid on a pro-rata basis for the number of months employed.

Stock Options

At hire, you will be granted options to purchase 245,000 shares of Dean Foods common stock, subject
to approval by the Compensation Committee of the Board of Directors. The exercise price of the
options will be the closing price of a share of Dean Foods stock on the date preceding the date of
grant. The options will vest in equal installments over a period of three (3) years, beginning on
the first anniversary date of the grant. You will be eligible for future equity grants under the
Dean Foods Long Term Incentive Program in the future, commencing in January 2007. The amount and
nature of future long term incentive awards will be determined by the Board of Directors.

 

 

Mr. Joseph Scalzo

October 7, 2005

Page 2 of 4

Management Deferred Compensation Plan

You will be eligible to participate in the 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.

Vacation Benefits

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

COBRA Support

Should you elect COBRA (health insurance) coverage from your previous employer, WhiteWave Foods
will pay your COBRA premiums (minus your normal WhiteWave Foods contribution) until you become
eligible for WhiteWave 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. If you have questions regarding these programs or eligibility, please call
Robby Dunn at 214-303-3557.

Relocation Benefits

WhiteWave Foods wants your move to Colorado 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. In addition, we will arrange for the purchase of your home through our
relocation agency if your home is not sold within 6 months. The specifics of this arrangement are
as follows:

If you select the Quantum Home Sale Program, you will need to choose two independent appraisers
from a designated list that is provided to you by Quantum Relocation. The average of the two (2)
appraisals will determine the appraised value of your home. If the two appraisals vary by more
than 10%, a third appraisal will be required and all three appraisals will be averaged to determine
the appraised value. Once the average has been determined, Quantum Relocation Services will
present you with an offer. You may take up to 60 days to accept or reject the offer, while
marketing the property for sale.

A general home inspection of your home is required. Should your home need repairs, it will be your
responsibility to have all necessary repairs corrected before Quantum Relocation Services will
acquire the home. If the necessary repairs are not corrected, the cost of the repairs will be
deducted from your equity payment.

Once your home has passed necessary inspections and the appraised value offer has been accepted,
your home will be placed into the Quantum Relocation Service inventory. Closing on your home
buy-out will be agreed upon and your equity funded within 48 hours after closing.

 

 

Mr. Joseph Scalzo

October 7, 2005

Page 3 of 4

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

If your employment is terminated at any time as a result of a “qualifying termination,” meaning any
termination as a result of death, disability, your voluntary termination for good reason, or your
involuntary termination without cause (as defined below), 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. In addition, you will
receive a lump sum 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 term “cause” shall mean: (a) your conviction of any crime deemed by the company to make your
continued employment untenable; (b) any act of gross negligence or willful misconduct in the
conduct of your employment; (c) your committing any act of dishonesty whether relating to the
company or any of its affiliates, its employees, agents or otherwise; or (d) your failure to comply
with the Company’s Code of Ethics, or any conduct which brings the Company or any of its affiliates
into disrepute, in each case as determined by the Board of Directors.

The term “good reason” shall have the meaning given such term under the Change in Control Agreement
referenced below.

Non Qualifying Termination

In the event that your employment with WhiteWave Foods is terminated either for cause or by you
voluntarily and without good reason, no severance payment will be made. If your employment is
terminated either for cause or by you voluntarily and without good reason, all unvested stock
option and other equity grants made to you and your rights thereunder will be automatically
terminated.

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. Enclosed are two copies for your signature.

 

 

Mr. Joseph Scalzo

October 7, 2005

Page 4 of 4

In addition, if it is necessary for you to obtain legal representation or to bring any legal
proceeding in order to enforce your rights under the Change in Control Agreement, the Company will
pay all legal fees incurred by you in connection with such action.

New Hire Processes

You are required to comply with the Dean Foods Code of Ethics 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-Competition Agreement. Enclosed are two copies for
your signature.

Conclusion

Joe, I am delighted at the prospect of you joining WhiteWave Foods. I am confident that you share
our vision and standards, embody our values and beliefs, and will make a profound contribution to
our company. We are very eager for you to begin to exert your leadership.

	 	 	 	 	 
	 	Best regards,

Gregg L. Engles

 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 
	Agreed and accepted:

	 

	/s/ Joseph E. Scalzo

	Joseph E. Scalzo

	 

	/s/
October 7, 2005

	Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}]]