Document:

exv10w8

 

Exhibit 10.8

DEAN FOODS COMPANY

NONQUALIFIED STOCK OPTION AGREEMENT

SPECIAL INDUCEMENT GRANT

     THIS AGREEMENT (the “Agreement”), effective as of the date indicated on the Notice of
Grant delivered herewith (the “Notice of Grant”), is made and entered into by and between
Dean Foods Company, a Delaware corporation (the “Company”), and Joseph E. Scalzo (the
“Grantee”).

WITNESSETH:

     WHEREAS, the Company has engaged the Grantee to serve as President of WhiteWave Foods Company,
a wholly-owned subsidiary of the Company (“WhiteWave”), and as an inducement, the Company
agreed to grant certain stock options to the Grantee; and

     WHEREAS, the award hereby granted is intended to be an inducement grant, as defined by the New
York Stock Exchange, which grant shall be a grant of unregistered stock options not under a
shareholder-approved equity award plan.

     NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
herein contained, and as an inducement to the Grantee to accept the position of President of
WhiteWave, and to promote the success of the business of WhiteWave, the parties hereby agree as
follows:

     1. Definitions. As used herein, the following definitions shall apply:

          “Cause” shall mean: (a) conviction of any crime deemed by the Company to make the Grantee’s
continued employment untenable; (b) any act of gross negligence or willful misconduct in the
conduct of the Grantee’s employment; (c) committing any act of dishonesty whether relating to the
Company or any of its Subsidiaries, their respective employees, agents or otherwise; or (d) the
Grantee’s 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 of the Company.

          “Change in Control” means (1) any “person” (as such term is used in Section 13(d) of 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) during any
period of two (2) consecutive years (not including any period prior to the effective date of this
amendment and restatement), individuals who at the beginning of such period constitute the members
of the Board of Directors and any new director, whose election to the Board of Directors or
nomination for election to the Board of Directors by the Company’s stockholders was approved by a
vote of at least two-thirds (?) of the directors then still in office who either were directors at
the beginning of the period or

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whose election or nomination for election was previously so approved, cease for any reason to
constitute a majority of the Board of Directors; or (3) the Company or any Subsidiary shall merge
with or consolidate into any other company, 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.

          “Common Stock” means the common stock, $.01 par value per share, of the Company. Except as
otherwise provided herein, all Common Stock issued pursuant to the exercise of this Option shall
have the same rights as all other issued and outstanding shares of Common Stock, including but not
limited to voting rights, the right to dividends, if declared and paid, and the right to pro rata
distributions of the Company’s assets in the event of liquidation.

          “Company” means Dean Foods Company, a Delaware corporation, formerly known as Suiza Foods
Corporation.

          “Date of Grant” shall have the meaning set forth in section 2 hereof.

          “Exercise Price” shall have the meaning set forth in section 2 hereof.

          “Grantee” shall mean Joseph E. Scalzo.

          “Immediate Family Members” shall have the meaning set forth in section 7 hereof.

          “Notice of Grant” shall have the meaning set forth in the preamble hereto.

          “Option” shall have the meaning set forth in section 2 hereof .

          “Qualifying Retirement” means retirement by Grantee from employment or other service to the
Company or any Subsidiary after Grantee reaches the age of 65.

          “Subsidiary” means any now existing or hereinafter organized or acquired company of which more
than fifty percent (50%) of the issued and outstanding voting interests are owned or controlled
directly or indirectly by the Company or through one or more Subsidiaries of the Company.

          “WhiteWave” shall have the meaning set forth in the recitals herein.

     2. Grant of Option. The Company hereby grants to the Grantee, effective as of the
date shown on the Notice of Grant (the “Date of Grant”), and on the terms and subject to
the conditions, limitations and restrictions set forth in this Agreement, an option (the
“Option”) to purchase all or any portion of the number of shares shown on the Notice of
Grant for the per

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share price shown on the Notice of Grant (the “Exercise Price”). The Grantee hereby
accepts the Option from the Company.

     3. Vesting. The shares of Common Stock subject to the Option shall vest ratably in
three equal annual increments commencing on the first anniversary of the Date of Grant. In
addition to the vesting provisions contained in the foregoing sentence, the shares of Common Stock
subject to the Option shall also be subject to the following vesting provisions:

          (a) Each unvested share of Common Stock subject to the Option shall immediately vest in full
upon the death of the Grantee;

          (b) Each share of Common Stock subject to the Option shall immediately vest in full upon a
Change in Control;

          (c) Each unvested share subject to this Option shall immediately vest in full upon the
permanent and total disability (as defined within the meaning of Section 22(e)(3) of the Internal
Revenue Code of 1986) of the Grantee; and

          (d) In the event of the Qualifying Retirement of the Grantee, all unvested shares subject to
this Option shall automatically vest in full as of the effective date of the Grantee’s Qualifying
Retirement.

     4. Exercise. In order to exercise the Option with respect to any vested portion, the
Grantee shall notify the Company in writing, either sent to the Corporate Secretary’s attention at
the Company’s principal office or via the internet through E*Trade (the Company’s plan broker) at
www.etrade.com. At the time of exercise, the Grantee shall pay to the Company the Exercise Price
times the number of vested shares as to which the Option is being exercised. The Option will not
be deemed to be exercised and shares will not be issued until the applicable Exercise Price is
received by the Company. The Grantee shall make such payment in cash, check or wire transfer or,
at the discretion of the Committee, in shares of Common Stock already owned by the Grantee.

          If the shares to be purchased are covered by an effective registration statement under the
Securities Act of 1933, as amended, the Option may be exercised by a broker-dealer acting on behalf
of the Grantee if (a) the broker-dealer has received from the Company confirmation of the existence
and validity of the Option to be exercised, and the Company has received instructions from the
Grantee requesting the Company to deliver the shares of Common Stock subject to such option to the
broker-dealer on behalf of the Grantee and specifying the account into which such shares should be
deposited, (b) adequate provision has been made with respect to the payment of any withholding
taxes due upon such exercise, and (c) the broker-dealer and the Grantee have otherwise complied
with Section 220.3(e)(4) of Regulation T, 12 CFR Part 220, or any successor provision, and any
other applicable regulations.

     5. Expiration of Option. The Option shall expire, and shall not be exercisable with
respect to any vested portion as to which the Option has not been exercised, on the first to occur
of: (a) the tenth anniversary of the Date of Grant; (b) 60 days after any termination of the
Grantee’s employment with the Company or any Subsidiary for any reason other than death,

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Qualifying Retirement or permanent and total disability, or (c) 12 months following the date the
Grantee ceases to be an employee of the Company or a Subsidiary, if such cessation of service is
due to the death or permanent and total disability of the Grantee. Options held by Grantee upon his
Qualifying Retirement will remain exercisable until the earlier of (i) the tenth anniversary of the
Date of Grant, and (ii) the first anniversary of the Grantee’s death. Upon the death of Grantee,
any vested Option exercisable on the date of death may be exercised by the Grantee’s estate or by a
person who acquires the right to exercise such Option by bequest or inheritance or by reason of the
death of Grantee, provided that such exercise occurs within the shorter of the remaining option
term of the Option and twelve months after the date of the Grantee’s death. Notwithstanding any
provision of this Agreement to the contrary, Grantee may not, under any circumstances, exercise a
vested Option following termination of employment if Grantee is discharged for Cause.

     6. Tax Withholding. Any provision of this Agreement to the contrary notwithstanding,
the Company may take such steps as it deems necessary or desirable for the withholding of any taxes
that it is required by law or regulation of any governmental authority, federal, state or local,
domestic or foreign, to withhold in connection with any of the shares of Common Stock subject
hereto.

     7. Transfer of Option. The Option shall be transferable only by will or the laws of
descent and distribution and the Option shall be exercisable during the Grantee’s lifetime only by
such Grantee; provided, however, that the Grantee may transfer his Option without consideration, to
(i) the spouse, children or grandchildren of the Grantee (“Immediate Family Members”), (ii)
a trust or trusts, or to a guardian under the Uniform Gift to Minors Act, for the exclusive benefit
of such Immediate Family Members, or (iii) a partnership or other entity in which such Immediate
Family Members are the only partners, provided that subsequent transfers of the transferred Option
shall be prohibited except by will or the laws of descent and distribution. Following transfer,
the Option shall continue to be subject to the same terms and conditions as were applicable
immediately prior to transfer, provided that, for purposes of this Agreement and the vesting and
expiration provisions hereof, the term “Grantee” shall be deemed to refer to the transferee
(however, the events of termination of employment, if any, set forth in this Agreement and the
obligation to pay withholding taxes shall continue to apply to the transferor).

     8. Certain Legal Restrictions. The Company shall not be obligated to sell or issue
any shares of Common Stock upon the exercise of the Option or otherwise unless the issuance and
delivery of such shares shall comply with all relevant provisions of law and other legal
requirements including, without limitation, any applicable federal or state securities laws and the
requirements of any stock exchange upon which shares of the Common Stock may then be listed. As a
condition to the exercise of the Option or the sale by the Company of any additional shares of
Common Stock to the Grantee, the Company may require the Grantee to make such representations and
warranties as may be necessary to assure the availability of an exemption from the registration
requirements of applicable federal or state securities laws. The Company shall not be liable for
refusing to sell or issue any shares if the Company cannot obtain authority from the appropriate
regulatory bodies deemed by the Company to be necessary to lawfully sell or issue such shares. In
addition, the Company shall have no obligation to the Grantee, express or implied, to list,
register or otherwise qualify any of the Grantee’s shares of Common Stock.

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     9. Modification of Award. At any time and from time to time, the Board of Directors
or the Compensation Committee of the Board of Directors may execute an instrument providing for
modification, extension or renewal of this award, provided that no such modification, extension or
renewal shall (a) impair the award without the consent of the Grantee, or (b) decrease the Exercise
Price without the consent of the stockholders of the Company. In the event that each of the
outstanding shares of Common Stock (other than shares held by dissenting stockholders) shall be
changed into or exchanged for a different number or kind of shares of stock of the Company or of
another company (whether by reason of merger, consolidation, recapitalization, reclassification,
split-up, combination of shares or otherwise), or in the event a stock split or stock dividend or
similar transaction occurs, then there shall be substituted for each share of Common Stock then
subject to this Option, the number and kind of shares of stock into which each outstanding share of
Common Stock (other than shares held by dissenting stockholders) shall be so changed or exchanged,
or the number of shares of Common Stock as is equitably required in the event of a stock split or
stock dividend or similar transaction, together with an appropriate adjustment of the Exercise
Price. The Board of Directors of the Company may, but shall not be required to, provide additional
anti-dilution protection to the Grantee.

     10. Miscellaneous.

          (a) No ISO Treatment. The Option is intended to be a non-qualified stock option under
applicable tax laws, and it is not to be characterized or treated as an incentive stock option
under such laws.

          (b) No Guaranteed Employment. The granting of the Option shall impose no obligation
upon the Grantee to exercise the Option or any part thereof. Nothing contained in this Agreement
shall affect the right of the Company to terminate the Grantee at any time, with or without Cause,
or shall be deemed to create any rights to employment on the part of the Grantee. The rights and
obligations arising under this Agreement are not intended to and do not affect the employment
relationship that otherwise exists between the Company and the Grantee, whether such employment
relationship is at will or defined by an employment contract. Moreover, this Agreement is not
intended to and does not amend any existing employment contract between the Company and the
Grantee; to the extent there is a conflict between this Agreement and such an employment contract,
the employment contract shall govern and take priority.

          (c) No Stockholder Rights. Neither the Grantee nor any person claiming under or
through the Grantee shall be or shall have any of the rights or privileges of a stockholder of the
Company in respect of any of the shares issuable upon the exercise of the Option herein unless and
until certificates representing such shares shall have been issued and delivered to the Grantee or
such Grantee’s agent.

          (d) Notices. Any notice to be given to the Company under the terms of this Agreement
or any delivery of the Option to the Company shall be addressed to the Company at its principal
executive offices, and any notice to be given to the Grantee shall be addressed to the Grantee at
the address set forth on the attached Notice of Grant, or at such other address for a

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 party as such party may hereafter designate in writing to the other. Any such notice shall be
deemed to have been duly given if mailed, postage prepaid, addressed as aforesaid.

          (e) Binding Agreement. Subject to the limitations in this Agreement on the
transferability by the Grantee of the Option and any shares of Common Stock, this Agreement shall
be binding upon and inure to the benefit of the representatives, executors, successors or
beneficiaries of the parties hereto.

          (f)Governing Law. The interpretation, performance and enforcement of this Agreement
shall be governed by the laws of the State of Delaware and the United States, as applicable,
without reference to the conflict of laws provisions thereof.

          (g) Severability. If any provision of this Agreement is declared or found to be
illegal, unenforceable or void, in whole or in part, then the parties shall be relieved of all
obligations arising under such provision, but only to the extent that it is illegal, unenforceable
or void, it being the intent and agreement of the parties that this Agreement shall be deemed
amended by modifying such provision to the extent necessary to make it legal and enforceable while
preserving its intent or, if that is not possible, by substituting therefor another provision that
is legal and enforceable and achieves the same objectives.

          (h) Interpretation. All section titles and captions in this Agreement are for
convenience only, shall not be deemed part of this Agreement, and in no way shall define, limit,
extend or describe the scope or intent of any provisions of this Agreement.

          (i) Entire Agreement. This Agreement constitutes the entire agreement among the
parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and
understandings pertaining thereto.

          (j) No Waiver. No failure by any party to insist upon the strict performance of any
covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy
consequent upon a breach thereof shall constitute waiver of any such breach or any other covenant,
duty, agreement or condition.

          (k) Counterparts. This Agreement may be executed in counterparts, all of which
together shall constitute one agreement binding on all the parties hereto, notwithstanding that all
such parties are not signatories to the original or the same counterpart.

          (l) Relief. In addition to all other rights or remedies available at law or in
equity, the Company shall be entitled to injunctive and other equitable relief to prevent or enjoin
any violation of the provisions of this Agreement.

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Exhibit 10.9

EMPLOYMENT AND RELEASE AGREEMENT

     Effective this 7th day of November, 2005, (the “Effective Date”), Dean Foods
Company, together with each of its subsidiaries and affiliates, (hereinafter collectively referred
to as the “Company”) and Barry Fromberg (the “Executive”) agree and represent as follows:

     WHEREAS, the Executive has decided to retire, and the Executive and the Company desire a
smooth transition;

     WHEREAS, the Company and the Executive have agreed on a transition plan to allow the Executive
to complete certain projects and responsibilities for the Company and to allow the Company to begin
searching for Executive’s replacement and the Executive has agreed to remain employed to facilitate
this transition;

     WHEREAS, the Executive has agreed to remain in his position until his successor is selected
and until the Company’s 2005 financial statements are finalized, but in no event later than April
1, 2006.

     WHEREAS, the parties agree and wish to ensure that they have amicably resolved and settled all
possible differences, claims, or matters pertaining to, arising from, or associated with
Executive’s employment with the Company and subsequent retirement;

     THEREFORE, the parties mutually agree to enter into this Employment and Release Agreement (the
“Agreement”) and agree as follows:

     1. Employment

            (a) Employment Term. Subject to the terms and conditions of this Agreement, the
Company agrees to continue to employ the Executive as its Chief Financial Officer, and the
Executive agrees to continue to perform the duties associated with that position diligently and to
the reasonable satisfaction of the Company’s Chief Executive Officer from the Effective Date until
April 1, 2006 (the “Employment Term”). The Executive will devote his full business time, attention
and energies to the business of the Company during the Employment Term. The Executive will report
to the Chief Executive Officer of the Company and will comply with the policies and guidelines
established by the Company from time to time.

            (b) Compensation. During the Employment Term, the Company will pay the Executive at
his current base salary rate of $435,000 per year, payable biweekly or semi-monthly in accordance
with the payroll practices of the Company in effect from time to time. The Executive shall also,
during the Employment Term be eligible to participate in the bonus program the Company makes
available to similarly situated executives from time to time. The Executive’s Target Bonus
percentage under the program shall continue to be 65%. All of the Executive’s compensation under
this Agreement will be subject to deduction and withholding authorized or required by applicable
law. The Executive and the Company agree that, during the Employment

 

 

Term, the Executive will not be eligible for any further equity grants or other new incentive
benefits other than those he currently has a right to receive.

            (c) Executive Benefits. Beginning on the Effective Date and thereafter during the
Employment Term, the Company will provide to the Executive such fringe benefits, perquisites, paid
time off and other benefits that the Company provides to its similarly situated executives. The
Company will reimburse the Executive for reasonable out-of-pocket business expenses incurred and
documented in accordance with the policies of the Company in effect from time to time.

            (d) Termination. During the Employment Term, the Company may terminate this
Agreement only with Cause (as defined below) by giving 15 days written notice of termination to the
Executive. If the Executive voluntarily terminates his employment before April 1, 2006, or the
Company terminates the Executive’s employment with Cause, the Company will have no obligation to
pay the Executive the compensation described in section 4 or any other compensation except as
required by state or federal law.

            (e) “Cause.” “Cause” means the Executive’s (i) willful and intentional material
breach of this Agreement, which results in material injury (monetary or otherwise) to the Company
(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, (iii) material violation of the Company’s Code of Ethics, or (iv) conviction of, or plea
of nolo contendere to, a felony; provided, however, that no act or omission shall be grounds for a
determination of “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 prior to a final decision by the Board.

     2. Retirement. The parties acknowledge that the Executive will resign his employment and any
officer or director position he holds with the Company or any of its affiliates, effective April 1,
2006 (the “Retirement Date”). After the Retirement Date, the Executive agrees to make himself
available to assist the Company concerning any transition issues that may arise and/or to answer
any questions his successor may have regarding the Company’s financial statements or financial
accounting practices and procedures. As set forth more fully below and in consideration for the
execution of this Agreement, including but not limited to the Executive’s agreement to continue in
his position until the Retirement Date, the Executive’s agreement to assist with transitional
issues after the Retirement Date, the mutual release and waiver of all claims described more fully
in section 9 hereof and the Executive’s agreement to comply with the terms of sections 6 and 7 of
this Agreement, the Executive shall receive payments and consideration described in section 4

     3. Final Paycheck and Paid Time Off and/or Vacation Pay. The Company and the Executive agree
that the Executive shall receive all earned but unpaid salary
and unused paid time off (which includes vacation pay) through the Retirement Date as required
by state law.

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     4. Payments and Other Consideration.

            (a) The Company shall pay and provide the Executive the following amounts and items:

                        (1) Cash Payments. Provided the Executive delivers to the Company a Release and Waiver
in substantially the same form as section 9 below, this Agreement has not been terminated
for Cause by the Company and the Executive has not revoked the Agreement, the Company agrees
to pay and provide the following cash, less applicable taxes required to be withheld and any
authorized deductions, and other consideration, which the Executive acknowledges he is not
otherwise entitled to receive, as follows:

                                    a. October 15, 2006 (2 Years Base Salary) — $870,000

                                    b. October 15, 2006 (2 Years Target Bonus) — $565,500

                                    c. October 15, 2006 (Benefit Advance) — $24,000

                                    d. April 15, 2006 (Payment for Unvested Equity) — All options and stock units
previously granted to the Executive and not yet vested as of April 1, 2006 will be cancelled
on that date. On or before April 15, 2006, the Company will make a cash payment to the
Executive that is intended to compensate the Executive for the value of the stock options
and stock units (“SUs”) that were previously granted and were scheduled to vest at any time
after April 1, 2006 through 2008 (“Unvested SUs”), all as summarized on Schedule A attached
hereto. For unvested options, the amount of such payment will be calculated by multiplying
the difference between the Market Price (as defined below) of the Company’s stock and the
strike price of the associated option, times the number of shares underlying such options.
If the strike price is above the Market Price, no payment will be made for those “under
water” options. For the Unvested SUs scheduled to vest during the period after April 1,
2006 through 2008, the amount of such payment will be equal to the Market Price of the
Company’s stock times the numbers of such Unvested SUs. For purposes of this Agreement, the
Market Price will be the highest closing price of the Company’s common stock during the
thirty (30) trading days through and including March 31, 2006. The parties hereby agree
that for purposes of determining which SUs are scheduled to vest during the period after
April 1, 2006 through 2008, in the event that on or before April 1, 2006, the Stock
Performance Target is achieved under Section 2(b) of the Restricted Stock Unit Award
Agreement for any SU grant, then such all SUs for such grant that are unvested shall be
deemed to vest during the period after April 1, 2006 through 2008.

                                    e. On October 15, 2006, the Company will make a cash payment to the Executive in an
amount equal to three (3) times the amount of the
matching contribution that the Company paid or will pay into the Executive’s 401(k)
account for calendar year 2005.

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                                    f. March 15, 2007 (Pro-rated 2006 Bonus) — The Executive’s pro-rated target bonus for
the 3 months of his employment in 2006 based on the Company’s existing incentive bonus
program. The bonus will be calculated as follows: 2006 Base Salary x Target Bonus
Percentage x Payout Factor x 3/12. The parties understand and acknowledge that the
Executive’s pro-rated 2006 Bonus, if any, will be calculated and paid in the same manner and
fashion as for other similarly situated executive vice presidents of the Company.

                                    g. The Executive will also be eligible to receive payments under the Company’s
Supplemental Executive Retirement Plan for all compensation earned or paid through the
Retirement Date, including all payments to be made in 2007 for compensation earned in 2006.
The Executive will receive supplemental payments in the same manner, and amount and at the
same time as other similarly situated executives.

                        (2)
Equity. The Executive and the Company acknowledge that the options to purchase shares of common stock of the Company and SUs of the Company previously granted to Executive
will continue to vest in accordance with their terms until April 1, 2006. All such options
which are currently vested or which are scheduled to vest before April 1, 2006 may be
exercised in accordance with their terms at any time after such vesting and on or before the
sixtieth (60th) day following the April 1, 2006. The terms of the stock plans and award
agreements will continue to be in effect and are incorporated into this Agreement by
reference. The Company, on behalf of the Executive, will file a Form 4 — Statement of
Changes in Beneficial Ownership of Securities pursuant to Section 16 of the Securities
Exchange Act of 1934, as amended (“Exchange Act”) within two (2) business days of the
cancellation of Executive’s stock options and SUs pursuant to this paragraph 4(a)(1)(d).
The Company, on behalf of the Executive, will also file a Form 4 when appropriate to
indicate that the Executive is no longer a reporting person or “insider” subject to the
obligations of Section 16 of the Exchange Act.

                        (3) Employee Benefits.

                                    a. Health, Vision and Dental Benefits. The Executive’s current health, dental and
vision coverage will terminate effective on the Retirement Date. The Executive may elect
COBRA continuation coverage pursuant to the COBRA materials that have been or will be
provided to Executive by the Company through a third-party service provider under separate
cover.

                                    b. Other Welfare Benefits. The Executive may elect, at the Executive’s own expense,
conversion of any other welfare benefits to the extent such conversion is available to
similarly situated employees of the Company. Executive acknowledges that, following the
Retirement Date, the Executive has no right to continued participation as an employee of the
Company in any Company-sponsored benefit plans, other than as set forth in this Agreement.

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                                    c. Retirement Plans. The Executive shall be deemed fully vested in all Company
sponsored retirement plans as of the Retirement Date. The Executive may make any additional
contributions into any Company-sponsored retirement plan, including any 401(k) plan, prior
to April 1, 2006, and the Company will contribute to any Company-sponsored retirement plan
on Executive’s behalf with respect to any amounts paid to Executive for services performed
on or before the Retirement Date according to the terms of the applicable plan. Executive
understands and agrees that Executive may not make any additional contributions into any
Company-sponsored retirement plan, including any 401(k) plan, nor will the Company
contribute to any Company-sponsored retirement plan on Executive’s behalf with respect to
any amounts paid to Executive other than for services performed on or before the Retirement
Date. Executive acknowledges that Executive’s rights to distributions of funds held on
Executive’s behalf in any Company-sponsored retirement plan, including any non-qualified
deferred compensation plan, will continue to be governed by such plan, with the terms of
such plan or plans incorporated into this Agreement by reference.

                                    d. Executive Stock Purchase Participation. Prior to the Retirement Date, Executive
will be eligible to purchase Company stock through the Company’s Employee Stock Purchase
Plan (“ESPP”). The Executive shall be deemed fully vested in all shares purchased under the
ESPP as of the Retirement Date, including the discounted portion of the purchase price. The
Executive understands and agrees that after the Retirement Date, Executive will not be
eligible to purchase Company stock through the Company’s Employee Stock Purchase Plan
(“ESPP”). Executive acknowledges that Executive’s rights to distribution of any stock
previously purchased under the ESPP will continue to be governed by such plan, with the
terms of such plans incorporated into this Agreement by reference.

                                    e. Annual Physical. The Company will provide Executive with an annual physical
conducted by the Cooper Clinic in 2006 and 2007, such physical to be of the same type and
extent as for other similarly situated executive vice presidents of the Company and at the
Company’s expense.

                                    f. Other Benefits. Executive acknowledges that Executive is waiving Executive’s
rights, if any, to continued participation in any other Company-sponsored benefit plans,
other than as stated in this Agreement. For the avoidance of doubt, through March 31, 2006,
the Executive shall continue to participate in the Company’s Post-2004 Executive Deferred
Compensation Plan and shall receive all contributions under such plan with respect to that
period.

            (b) Executive acknowledges that the cash payments to be paid by the Company pursuant to
subsections 4(a)(1) and 4(a)(2) will be reported to the Internal Revenue Service and other
appropriate taxing authorities as income and will be subject to withholding to the extent required
by law.

            (c) Executive hereby acknowledges that the payments under subsection 4(a)(1) and 4(a)(2) do
not entitle Executive to, and Executive specifically

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waives any rights to, any and all Company vacation, paid-time off, and bonuses including, but
not limited to, holiday, merit, or performance bonuses after the Retirement Date, except as
otherwise provided herein.

            (d) The Executive consents to and agrees that the Company may offset from the payments under
subsections 4(a)(1) and 4(a)(2) any business expenses or other debts owed by the Executive to the
Company that have not been reconciled to the Company’s satisfaction, and the cost of any Company
property that has not been returned by Executive to the Company, as of the date of execution of
this Agreement.

     5. Property of the Company. The Executive hereby agrees to return and will certify that he
has returned any and all computer programs and/or data disks, files, records, or information of any
sort with regard to such confidential information, trade secrets, or any other business of the
Company. The Executive further agrees to return and will certify that Executive has returned all
other property of the Company to the Company, including vehicles or all keys, security passes or
other means of access to the Company’s plants or other facilities. Notwithstanding the foregoing,
the Executive shall be entitled to retain his personal computer, cell phone, Blackberry wireless
device and related equipment.

     6. Nondisparagement. The Company and the Executive agree that neither party will make or
cause to be made any statements, observations or opinions, or communicate any information (whether
oral or written) that disparages or is likely in any way to harm the reputation of the other party.

     7. Restrictive Covenants.

            (a) No solicitation of employees. The Executive agrees that during the term of this Agreement
and for a period of twenty four (24) months following the Retirement Date, the Executive will not,
either directly or indirectly, induce or encourage any employees of Company to terminate their
relationship with Company in order to join any company or enterprise with which the Executive is
affiliated, whether as an employee, consultant, stockholder, director or otherwise, without prior
written consent of the Company’s Chief Executive Officer.

            (b) No solicitation of customers. The Executive agrees that during the term of this Agreement
and for a period of twenty four (24) months following the Retirement Date, the Executive will not:
approach, consult, solicit business from, or contact or otherwise communicate, directly or
indirectly, in any way, with any customer or broker of the Company to convince such customer or
broker to change or alter the customer’s or broker’s existing or prospective contractual terms and
conditions with the Company. The Executive may request that the Company waive this restriction;
however, the Company will have sole discretion as to whether this restrictive covenant will be
waived.

            (c) Nondisclosure and Confidentiality. The Executive covenants not to use or impart to any
other person, corporation, or entity any trade secrets or confidential information that he has
acquired while an employee of the Company, except as may be required by law or judicial process.
The Executive agrees and acknowledges that such matters include, but are not limited to certain
personnel, business, financial, technical and other proprietary information and materials, as well
as

6

 

any sales, marketing, financial data, or strategic planning information that relates to any
business activities of the Company, its subsidiaries and affiliates. The Executive further agrees
that, in the event it appears that he will be compelled by law or judicial process to disclose any
such confidential information to avoid potential liability, he will notify the Company in writing
immediately upon his receipt of a subpoena or other legal process.

     8. Remedies. The Executive acknowledges that the Company is engaged in a highly competitive
business and that the trade secrets and confidential information referred to in section 7 above are
of great significance in the various markets in which it is active. The Executive further agrees
that the restrictions contained in section 7 above are reasonable and necessary in order to protect
the good will and legitimate business interests of the Company and that any violation thereof would
result in irreparable injury to the Company. The Executive further acknowledges and agrees that,
in the event of any violation thereof, the Company shall be authorized and entitled to obtain from
any court of competent jurisdiction temporary, preliminary, and/or permanent injunctive relief as
well as an equitable accounting of all profits and benefits arising out of such violation, which
rights and remedies shall be cumulative and in addition to any other rights or remedies to which
the Company may be entitled. Additionally, in the event that the Executive breaches any of the
covenants and restrictions contained in section 7 of this Agreement, the Company shall have the
right to immediately cease making further payments provided for by this Agreement and shall have
the right to collect the amounts previously paid to the Executive. The Executive agrees that the
exercise of such rights by Company shall not make this Agreement or any release contained herein
void or voidable. In any action to enforce this Agreement, the prevailing party shall be awarded
all reasonable attorney’s fees and costs.

     9. Mutual Release and Waiver of All Claims. The Executive, and for his heirs, executors, and
assigns, does hereby discharge and release the Company, its predecessors and affiliates, including
but not limited to Dean Foods Company, its shareholders, representatives, agents, associates,
servants, employees, attorneys, officers, directors, trustees, successors and assigns, from any and
all liability or responsibility for all grievances, disputes, actions, and claims at law or equity,
sounding in contract or tort, whether under any state or federal statutory or common law, arising
out of or related in any way to the Executive’s employment with and termination from employment
with the Company, including but not limited to claims for wrongful discharge, unlawful
discrimination, retaliation, breach of contract (express or implied), intentional or negligent
infliction of emotional distress, negligence, defamation, duress, fraud, or misrepresentation, any
violation of the Age Discrimination in Employment Act of 1967, Title VII of the Civil Rights Act of
1964, the Employee Retirement Income Security Act of 1974, the Equal Pay Act of 1963, the Family
and Medical Leave Act of 1993, the Fair Labor Standards Act, the Americans with Disabilities Act,
the National Labor Relations Act, the Texas Labor Code, any claim based upon the Dean Foods 401(k)
Plan or deferred compensation plan maintained on behalf of the Company’s employees, the laws of any
state, and all claims under related common law, statutes, and executive orders at the federal,
state and local levels of government, and any claims to any benefits from employment with the
Company, other than those benefits enumerated herein or those benefits to which Executive is
entitled by law. In addition, the Executive represents that no incident has occurred during his
employment with the Company that could form the basis for any claim by his against the Company
for any work-related injury.

7

 

     The Company, for itself, its predecessors, successors and assigns, does hereby discharge and
release the Executive from any and all liability or responsibility for all grievances, disputes,
actions, and claims at law or equity, sounding in contract or tort, and whether under any state or
federal statutory or common law, arising out of or related in any way to the Executive’s employment
with and termination from employment with the Company, including but not limited to claims for
breach of contract (express or implied), intentional or negligent infliction of emotional distress,
negligence, defamation, duress, fraud, or misrepresentation, the laws of any state, and all claims
under related common law, statutes, and executive orders at the federal, state and local levels of
government.

     10. Effect of Release and Waiver. The effect of this Agreement is to waive and release any
and all claims, demands, actions, or causes of action that the Executive and the Company may now or
hereafter have against the other for any liability, whether known or unknown, vicarious,
derivative, or direct. The Executive’s and the Company’s waivers and releases include but are not
limited to any claims for damages (actual or punitive), back wages, future wages, commission
payments, bonuses, reinstatement, accrued vacation leave benefits, past and future employee
benefits (except to which there is vested entitlement or as provided for herein) including
contributions to the Company’s employee benefit plans, compensatory damages, penalties, equitable
relief, attorneys’ fees, costs of court, interest, and any and all other loss, expense, or
detriment of whatever kind resulting from, growing out of, connected with, or related in any way to
the Executive’s employment by the Company or the termination of such employment. This release does
not apply to any claims that may arise after the date the Executive and the Company execute this
Agreement.

     11. Agreement as to Section 409A. Although the Company and the Executive believe that the
payments made and benefits provided pursuant to sections 4(a)(1) and 4(a)(2) of this Agreement will
not be considered to be subject to Section 409A of the Internal Code of 1986, as amended (the
“Code”), the parties agree to cooperate to revise and amend this Agreement in order to satisfy the
Code in order to prevent the imposition of any excise taxes.

     12. No Duplication. There shall be no duplication of severance pay in any manner. In this
regard, the Executive shall not be entitled to benefits or payments hereunder for more than one
position with the Company. If the Executive is entitled to any benefit for termination under any
other plan or policy of the Company or 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 and in lieu of any such payment due under any such plan or policy of the Company.

8

 

     13. Notice. The Executive understands and agrees that he:

            (a) Has had a full twenty-one (21) days within which to consider this Agreement before
executing it.

            (b) Has carefully read and fully understands all of the provisions of this Agreement.

            (c) Is, through this Agreement, releasing the Company from any and all claims Executive may
have against the Company, including claims under the Age Discrimination in Employment Act of 1967.

            (d) Knowingly and voluntarily agrees to all of the terms set forth in this Agreement.

            (e) Knowingly and voluntarily intends to be legally bound by the same.

            (f) Was advised and hereby is advised in writing to consider the terms of this Agreement and
consult with an attorney of Executive’s choice prior to executing this Agreement.

            (g) Has a full seven (7) days following the execution of this Agreement to revoke this
Agreement and has been and hereby is advised in writing that this Agreement shall not become
effective or enforceable until the revocation period has expired.

            (h) Understands that rights or claims under the Age Discrimination in Employment Act of 1967
(29 U.S.C. § 621, et seq.) that may arise after the date this Agreement is executed are not waived.

     14. Notice. Company understands and agrees that it:

            (a) Has carefully read and fully understands all of the provisions of this Agreement.

            (b) Is, through this Agreement, releasing the Executive from any and all claims Company may
have against the Executive;

            (c) Knowingly and voluntarily agrees to all of the terms set forth in this Agreement.

            (d) Knowingly and voluntarily intends to be legally bound by the same.

            (e) Has consulted with an attorney of Company’s choice prior to executing this Agreement.

     15. Miscellaneous.

            (a) This writing represents the entire agreement and understanding of the parties with respect
to the subject matter hereof and supersedes all prior agreements and understandings of the parties
in connection therewith; it may not be altered or

9

 

amended except by mutual agreement evidenced by a writing signed by both parties and
specifically identified as an amendment to this Agreement. The parties shall continue to be bound
by the Indemnity Agreement, dated as of February 21, 2003, between them, which agreement is hereby
ratified and confirmed.

            (b) Except as specifically provided above, this Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective heirs, executors, administrators, personal
representatives, successors, and assigns [whether such succession is, in the case of the Company,
direct or indirect by purchase, merger, consolidation, change in control or otherwise].

            (c) The parties, by signing this Agreement, acknowledge that they each have been afforded an
opportunity to review this Agreement with an attorney or other advisers of their choice, that they
have read and understand this Agreement, and that they have signed this Agreement knowingly,
voluntarily, and without any form of duress or coercion.

            (d) By signing below, the parties acknowledge that they have the authority to do so, and such
authority has not been delegated or assigned.

            (e) This Agreement is made pursuant to and shall be governed, construed, and enforced in all
respects and for all purposes in accordance with the laws of the state of Texas without regard to
the law of conflicts.

     16. Signatures and Counterparts. To signify their agreement to the terms of this Agreement,
the parties have executed this Agreement on the dates set forth opposite their signatures. This
Agreement may be executed in counterparts. A facsimile of this Agreement and signatures shall be
as effective as an original.

	 	 	 	 	 
	Executive	 	 
	/s/ Barry Fromberg 
	 	 
	 	 	 
	Barry Fromberg	 	 
	 
	 	 	 	 
	Date:
	 	November 7, 2005 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Company	 	 
	/s/
Robert Dunn 
	 	 
	 	 	 
	Title: 
	 	Senior Vice President-Human
Resources 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Date:
	 	November 7, 2005 	 	 
	 

	 	 	 	 

10

 

ACKNOWLEDGMENT

     I, Barry Fromberg, hereby acknowledge that on November 7, 2005, I received the Release
Agreement (the “Agreement”) for my review and consideration.

     I also acknowledge that the Company has advised me to consult with an attorney before
executing the Agreement, which is a legal document. I understand that I have twenty-one (21) days
from the date above to execute the Agreement. Further, I understand that, should I decide to
execute the Agreement, I may revoke my acceptance of this Agreement within seven (7) days following
the execution and that the release provision and all other provisions of the Agreement will not
become effective or enforceable until the revocation period has expired.

     Finally, I understand that I will be receiving from the Company a notice regarding the
continuation of health, vision, and dental benefits (COBRA notice) and that I must elect
continuation coverage and return my election form to the Company in order to continue such
benefits.

      

      

	 	 	 
	
/s/ Barry Fromberg 

	 	November 7,
2005 
	Barry Fromberg

	 	Date

11

 

ACKNOWLEDGMENT AND WAIVER

     I, Barry Fromberg, as evidenced by my signature below, acknowledge and understand that by
signing the Release Agreement (the “Agreement”) with the Company, sooner than twenty-one (21) days
following my receipt of the Agreement, I am knowingly and voluntarily waiving my right to consider
the Agreement for twenty-one (21) days and accept such lesser time as I utilized. I promise and
guarantee that neither the Company, nor its parent corporation, nor any of its subsidiaries,
affiliates, employees, agents or representatives, induced this waiver of the full twenty-one (21)
day period by fraud, misrepresentation or a threat to withdraw or alter the Agreement before the
expiration of the twenty-one (21) day period.

     I understand that I have until seven (7) days following the date of my signing of the
Agreement to revoke the Agreement by delivering a signed, written revocation to a representative of
the Company’s Human Resources Department.

      

      

	 	 	 
	/s/ Barry Fromberg

	 	November 7, 2005
	 

	 	 
	Barry Fromberg

	 	Date

12

 

Unvested Options

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Shares Vesting	 	 	 	 	 	 	 	 
	Grant Date	 	Type	 	 	2007	 	 	2008	 	 	Total	 	 	Strike Price	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1/13/2004
	 	ISO	 	 	1,069	 	 	 	 	 	 	 	1,069	 	 	$	26.3199	 	 	 	 	 
	1/13/2004
	 	NQ	 	 	15,597	 	 	 	 	 	 	 	15,597	 	 	$	26.3199	 	 	 	 	 
	1/13/2004
	 	NQ	 	 	2,874	 	 	 	 	 	 	 	2,874	 	 	$	26.3199	 	 	 	 	 
	1/13/2004
	 	ISO	 	 	197	 	 	 	 	 	 	 	197	 	 	$	26.3199	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sub-total 2004 Grant	 	 	19,737	 	 	 	—	 	 	 	19,737	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1/7/2005
	 	ISO	 	 	2,093	 	 	 	3,139	 	 	 	5,232	 	 	$	26.8941	 	 	 	 	 
	1/7/2005
	 	NQ	 	 	16,574	 	 	 	15,527	 	 	 	32,101	 	 	$	26.8941	 	 	 	 	 
	1/7/2005
	 	NQ	 	 	3,118	 	 	 	3,119	 	 	 	6,237	 	 	$	26.8941	 	 	 	 	 
	1/7/2005
	 	ISO	 	 	321	 	 	 	322	 	 	 	643	 	 	$	26.8941	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sub-total 2005 Grant	 	 	22,106	 	 	 	22,107	 	 	 	44,213	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Unvested Options	 	 	41,843	 	 	 	22,107	 	 	 	63,950	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Unvested SU’s	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1/13/2004
	 	SU	 	 	3,200	 	 	 	3,200	 	 	 	6,400	 	 	$	—	 	 	 	 	 
	1/13/2004
	 	SU	 	 	590	 	 	 	590	 	 	 	1,180	 	 	$	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1/7/2005
	 	SU	 	 	4,100	 	 	 	4,100	 	 	 	8,200	 	 	$	—	 	 	 	 	 
	1/7/2005
	 	SU	 	 	756	 	 	 	756	 	 	 	1,512	 	 	$	—	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Unvested SU’s	 	 	8,646	 	 	 	8,646	 	 	 	17,292	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

SU’s Subject to Acceleration

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Accelerated Vesting	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Acceleration	 
	Grant Date	 	Type	 	 	2006	 	 	2007	 	 	Total	 	 	Strike Price	 	 	Target Price	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1/13/2004
	 	SU	 	 	3,200	 	 	 	 	 	 	 	3,200	 	 	$	—	 	 	$	37.85	 
	1/13/2004
	 	SU	 	 	589	 	 	 	 	 	 	 	589	 	 	$	—	 	 	$	37.85	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1/7/2005
	 	SU	 	 	 	 	 	 	8,200	 	 	 	8,200	 	 	$	—	 	 	$	38.89	 
	1/7/2005
	 	SU	 	 	 	 	 	 	1,510	 	 	 	1,510	 	 	$	—	 	 	$	38.89	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total SU’s Subject to Acceleration	 	 	 	 	3,789	 	 	 	9,710	 	 	 	13,499

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