Document:

exv10w7

 

Exhibit
10.7

DEAN FOODS COMPANY

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

(As Revised and Restated Effective January 1, 2005)

 

 

DEAN FOODS COMPANY

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

(As Revised and Restated Effective January 1, 2005)

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I

	 	DEFINITIONS
	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE II

	 	ELIGIBILITY
	 	 	2	 
	 
	 	 	 	 	 	 
	ARTICLE III

	 	CREDITS TO ACCOUNT
	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE IV

	 	BENEFITS
	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE V

	 	ADMINISTRATION OF THE PLAN
	 	 	4	 
	 
	 	 	 	 	 	 
	ARTICLE VI

	 	CLAIMS REVIEW PROCEDURE
	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE VII

	 	LIMITATION OF RIGHTS
	 	 	6	 
	 
	 	 	 	 	 	 
	ARTICLE VIII

	 	LIMITATION OF ASSIGNMENT AND PAYMENTS TO

LEGALLY INCOMPETENT DISTRIBUTEE
	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE IX

	 	AMENDMENT TO OR TERMINATION OF THE PLAN
	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE X

	 	GENERAL AND MISCELLANEOUS
	 	 	7	 

 

 

DEAN FOODS COMPANY

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

PREAMBLE

     WHEREAS, Dean Foods Company (the “Company”) adopted the Dean Foods Company Supplemental
Executive Retirement Plan (the “Plan”) on March 18, 2005 to provide additional benefits in a
nonqualified deferred compensation arrangement for employees who earn compensation in excess of the
compensation that can be taken into account under the Dean Foods 401(k) Plan (the “401(k) Plan”) so
that such employees will receive retirement benefits from the Company that are equivalent, as a
percentage of total compensation, to the benefits provided to other employees;

     WHEREAS, in the process of implementing the Plan, the Company has identified certain
provisions that should be revised to promote the efficient administration of the Plan;

     NOW, THEREFORE, the Company hereby amends and restates the Plan to read as follows:

ARTICLE I

DEFINITIONS

     1.1 “Account” shall mean the individual bookkeeping record established by the Committee
showing the monetary value of the interest in the Plan of each Participant or Beneficiary.

     1.2 “Affiliate” shall mean a member of a controlled group of corporations (as defined in
Section 414(b) of the Code), a group of trades or businesses (whether or not incorporated) which
are under common control (as defined in Section 414(c) of the Code), or an affiliated service group
(as defined in Section 414(m) of the Code) of which the Company is a member; and any entity
otherwise required to be aggregated with the Company pursuant to Section 414(o) of the Code or the
regulations issued thereunder; and any other entity in which the Company has an ownership interest
and to which the Company elects to make participation in the Plan available.

     1.3 “Beneficiary” shall mean the Beneficiary designated by each Participant under the 401(k)
Plan; provided, however, that a Participant may designate a different Beneficiary hereunder by
delivering to the Committee a written beneficiary designation, in the form provided by the
Committee, and executed specifically with respect to this Plan.

     1.4 “Board” shall mean the Board of Directors of the Company.

     1.5 “Code” shall mean the Internal Revenue Code of 1986, as it may be amended from time to
time, and the rules and regulations promulgated thereunder.

     1.6 “Committee” shall mean the Compensation Committee of the Board.

 

 

     1.7 “Company” shall mean Dean Foods Company or its successor or successors.

     1.8 “Covered Compensation” shall mean the total salary and bonuses paid by the Company or an
Affiliate to an employee during each Plan Year, as reported on the employee’s federal income tax
withholding statement or statements (IRS Form W-2 or its subsequent equivalent), together with any
amounts not includable in such employee’s gross income pursuant to Sections 125 or 402(g) of the
Code, any amounts deferred by such employee from such salary or bonuses payable during the Plan
Year pursuant to the Dean Foods Company Post-2004 Executive Deferred Compensation Plan, and any
amounts withheld from such salary or bonuses pursuant to a court order.

     1.9 “Disability” shall mean the Participant either (a) is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less than 12
months, or (b) is, by reason of any medically determinable physical or mental impairment which can
be expected to result in death or can be expected to last for a continuous period of not less than
12 months, receiving income replacement benefits for a period of not less than 3 months under an
accident and health plan covering employees of the Company.

     1.10 “Effective Date” shall mean January 1, 2005.

     1.11 “Excess Compensation” shall mean that portion of the Participant’s Covered Compensation
which is in excess of the limitation found in Section 401(a)(17) of the Code, or its successor, for
the Plan Year.

     1.12 “Participant” shall mean an individual who has Excess Compensation during a Plan Year or
who has an Account as a result of having Excess Compensation in a prior Plan Year on or after
January 1, 2005.

     1.13 “Plan” shall mean the Dean Foods Company Supplemental Executive Retirement Plan set forth
in this document, as it may be amended from time to time.

     1.14 “Plan Year” shall mean the twelve-month period beginning each January 1 and ending each
December 31.

     1.15 “Trust” shall mean the Dean Foods Company Supplemental Executive Retirement Trust.

     1.16 “Valuation Date” shall mean each June 30th, and any other date established by
the Committee.

ARTICLE II

ELIGIBILITY

     A Participant shall participate in the Plan each Plan Year, commencing in 2005, in which he or
she has Excess Compensation. A Participant who has Excess Compensation for a Plan

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Year shall be entitled to continue to participate in the Plan until his or her Account is paid
in full even though the Participant may not be entitled to credits to his or her Account during one
or more Plan Years because such Participant does not have Excess Compensation.

ARTICLE III

CREDITS TO ACCOUNT

     3.1 As of each Valuation Date, and before the credit made to the Participants’ Accounts
pursuant to Section 3.2, the Committee shall credit to each Participant’s Account an amount equal
to the interest that would have been earned by the Account since the immediately preceding
Valuation Date, if the balance of the Account (reduced by any distributions made since the
immediately preceding Valuation Date) had been invested at the mid-term applicable federal rate
(AFR) set by the Internal Revenue Service for the month which includes the Valuation Date, plus one
percent (1%).

     3.2 As of each Valuation Date, commencing June 30, 2006, and after the earnings credit made to
the Participant’s Account pursuant to Section 3.1, the Committee shall credit to each Participant’s
Account an amount equal to 4% of such Participant’s Excess Compensation for the immediately
preceding Plan Year. The Company shall transfer to the Trust, within two weeks after such
Valuation Date, an amount sufficient to cause the Trust to have assets with a value at least equal
to the value of all Participants’ Accounts.

ARTICLE IV

BENEFITS

     4.1 After the credits are made to the Accounts of all Participants as of a Valuation Date, and
not later than two weeks after such Valuation Date, an amount equal to the value of the
Participant’s Account shall be paid in a lump sum to the Beneficiary of any Participant who has
died since the immediately preceding Valuation Date.

     4.2 After the credits are made to the Accounts of all Participants as of a Valuation Date, and
not later than two weeks after such Valuation Date, an amount equal to the value of the
Participant’s Account shall be paid in a lump sum to any Participant who has been determined by the
Committee to have a Disability.

     4.3 After the credits are made to the Accounts of all Participants as of a Valuation Date, and
not later than two weeks after such Valuation Date, an amount equal to the value of the
Participant’s Account shall be paid in a lump sum to any Participant whose employment has
terminated for any reason other than death or Disability since the immediately preceding Valuation
Date.

     4.4 If there is a change in the ownership or effective control of the employer of the
Participant (or the employer’s parent) or in the ownership of a substantial portion of the assets
of the employer of the Participant (hereinafter collectively called a “Change in Control”), the
Plan shall distribute the Accounts of all Participants employed by such employer or its
subsidiaries

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impacted by such Change in Control, in a single lump sum within 30 days after such Change in
Control or at such later date as is required by such regulations. In the event of a Change in
Control, the Committee shall determine an appropriate Valuation Date to be used in connection with
the distributions to be made, which Valuation Date shall not be more then 90 days prior to the date
of distribution. The determination of whether a Change in Control has occurred and whether a
distribution may be made to the Participants shall be made based on the definition of a Change in
Control that is found in the regulations issued by the U.S. Department of the Treasury under
Section 409A of the Code, which regulations are incorporated herein by reference.

ARTICLE V

ADMINISTRATION OF THE PLAN

     5.1 The Plan shall be administered by the Committee. The members of the Committee shall not
receive compensation with respect to their services for the Committee. The members of the
Committee shall serve without bond or security for the performance of their duties hereunder unless
applicable law makes the furnishing of such bond or security mandatory or unless required by the
Company.

     5.2 The Committee shall perform any act which the Plan authorizes expressed by a vote at a
meeting or in a writing signed by a majority of its members without a meeting. The Committee may,
by a writing signed by a majority of its members, appoint any member of the Committee to act on
behalf of the Committee. Any person who is a member of the Committee shall not vote or decide upon
any matter relating solely to such member or vote in any case in which the individual right or
claim of such member to any benefit under the Plan is particularly involved. If, in any matter or
case in which a person is so disqualified to act, the remaining persons constituting the Committee
cannot resolve such matter or case, the Board will appoint a temporary substitute to exercise all
the powers of the disqualified person concerning the matter or case in which such person is
disqualified.

     5.3 The Committee may designate in writing other persons to carry out its responsibilities
under the Plan, and may remove any person designated to carry out its responsibilities under the
Plan by notice in writing to that person. The Committee may employ persons to render advice with
regard to any of its responsibilities. All usual and reasonable expenses of the Committee shall be
paid by the Company. The Company shall indemnify and hold harmless each member of the Committee
from and against any and all claims and expenses (including, without limitation, attorneys’ fees
and related costs), in connection with the performance by such member of duties in that capacity,
other than any of the foregoing arising in connection with the willful neglect or willful
misconduct of the person so acting.

     5.4 The Committee shall establish rules and procedures, not contrary to the provisions of the
Plan, for the administration of the Plan and the transaction of its business. The Committee shall
determine the eligibility of any individual to participate in the Plan, shall interpret the Plan in
its sole and absolute discretion, and shall determine all questions arising in the administration,
interpretation and application of the Plan. All determinations of the Committee shall be
conclusive and binding on all employees, Participants and Beneficiaries.

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     5.5 Any action to be taken hereunder by the Company shall be taken by resolution adopted by
the Board or by a committee thereof; provided, however, that by resolution, the Board or a
committee thereof may delegate to any officer of the Company the authority to take any such actions
hereunder.

ARTICLE VI

CLAIMS REVIEW PROCEDURE

     6.1 In the event that a Participant or Beneficiary is denied a claim for benefits under this
Plan (the “Claimant”), the Committee shall provide to the Claimant written notice of the denial
within 90 days after the claim is filed (45 days in the case of a Disability claim) unless an
extension of time for processing the claim is necessary because more information is needed (or, in
the case of a Disability claim, an extension is necessary for reasons beyond the control of the
Committee), in which case a decision will be rendered not later than 180 days (75 days in the case
of a Disability claim which may be further extended to 105 days if the additional extension is
necessary due to reasons beyond the control of the Committee) after the initial receipt of the
claim. If such an extension of time for processing the claim is required, written notice of the
extension and additional information that is necessary to process the claim will be furnished to
the Claimant prior to the expiration of the initial 90-day (or 45-day) period and will indicate the
special circumstances requiring an extension of time for processing the claim and will indicate the
date the Committee expects to render its decision. In no event will such extension exceed a period
of 90 days from the end of the initial period. The notice shall set forth:

	 	(a)	 	the specific reason or reasons for the denial;
	 
	 	(b)	 	specific references to pertinent Plan provisions on which the Committee based
its denial;
	 
	 	(c)	 	a description of any additional material or information needed for the Claimant
to perfect the claim and an explanation of why the material or information is needed;
	 
	 	(d)	 	if the claim is a claim for a Disability benefit, the Participant will be
notified if an internal rule, guideline, protocol or other similar criterion was relied
on by the Committee and the Participant will be provided with a copy of such rule,
guideline, protocol, or other criterion free of charge on the Participant’s request.
If the claim is a claim for a Disability benefit and the denial is based on a medical
necessity or other similar exclusion or limit, the Participant will be provided, free
of charge at his or her request, an explanation of how that exclusion or limit and any
clinical judgments apply to the Participant’s medical circumstances.
	 
	 	(e)	 	a statement that the Claimant may:

	 	(i)	 	request a review upon written application to the Committee;
	 
	 	(ii)	 	review pertinent Plan documents; and

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	 	(iii)	 	submit issues and comments in writing; and

	 	(f)	 	that any appeal the Claimant wishes to make of the adverse determination must
be in writing and received by the Committee within 60 days (180 days in the case of a
Disability claim) after receipt of the Committee’s notice of denial of benefits. The
Committee’s notice must further advise the Claimant that failure to appeal the action
to the Committee in writing within the 60-day (or 180-day) period will render the
Committee’s determination final, binding, and conclusive.

     6.2 If the Claimant should appeal to the Committee, the Claimant, or the duly authorized
representative of such Claimant, may submit, in writing, whatever issues and comments such
Claimant, or the duly authorized representative of such Claimant, feels are pertinent. The
Committee shall re-examine all facts related to the appeal and make a final determination as to
whether the denial of benefits is justified under the circumstances. The Committee shall advise
the Claimant in writing of its decision on the appeal, the specific reasons for the decision, and
the specific Plan provisions on which the decision is based. The notice of the decision shall be
given within 60 days (45 days in the case of a Disability claim) of the Claimant’s written request
for review, unless special circumstances (such as a hearing) would make the rendering of a decision
within the 60-day (or 45-day) period infeasible, but in no event shall the Committee render a
decision regarding the denial of a claim for benefits later than 120 days (90 days in the case of a
Disability claim) after its receipt of a request for review. If an extension of time for review is
required because of special circumstances, written notice of the extension shall be furnished to
the Claimant prior to the date the extension period commences. The Claimant will also be entitled
to receive, on request and free of charge, access to and copies of all documents, records, and
other information relevant to the claim. In addition, if the claim is a claim for a Disability
benefit, the Participant will be notified if an internal rule, guideline, protocol or other similar
criterion was relied on by the Committee and will be provided with a copy of such rule, guideline,
protocol, or other criterion free of charge at your request. If the claim is a claim for a
Disability benefit and the denial is based on a medical necessity or other similar exclusion or
limit, the Participant will be provided, free of charge at his or her request, an explanation of
how that exclusion or limit and any clinical judgments apply to the Participant’s medical
circumstances. In the case of a Disability claim, the review on appeal must be made by a different
decision-maker from the Committee and that decision-maker cannot give procedural deference to the
original decision. If the Claimant is dissatisfied with the Committee’s (or other independent
fiduciary’s) review decision, the Claimant has the right to file suit in a federal or state court.

ARTICLE VII

LIMITATION OF RIGHTS

     The establishment of this Plan shall not be construed as giving to any Participant, employee
of the Company or any person whomsoever, any legal, equitable or other rights against the Company,
or its officers, directors, agents or shareholders, or as giving to any Participant or Beneficiary
any equity or other interest in the assets or business of the Company or shares of Company stock or
as giving any employee the right to be retained in the employment of the

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Company. All employees of the Company and Participants shall be subject to discharge to the
same extent they would have been if this Plan had never been adopted.

ARTICLE VIII

LIMITATION OF ASSIGNMENT AND PAYMENTS

TO LEGALLY INCOMPETENT DISTRIBUTEE

     8.1 No benefits which shall be payable under the Plan to any person shall be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and
any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge or otherwise
dispose of the same shall be void. No benefit shall in any manner be subject to the debts,
contracts, liabilities, engagements or torts of any person, nor shall it be subject to attachment
or legal process for or against any person, except to the extent required by law.

     8.2 Whenever any benefit which shall be payable under the Plan is to be paid to or for the
benefit of any person who is then a minor or determined by the Committee, on the basis of qualified
medical advice, to be incompetent, the Committee need not require the appointment of a guardian or
custodian, but shall be authorized to cause the same to be paid over to the person having custody
of the minor or incompetent, or to cause the same to be paid to the minor or incompetent without
the intervention of a guardian or custodian, or to cause the same to be paid to a legal guardian or
custodian of the minor or incompetent, if one has been appointed, or to cause the same to be used
for the benefit of the minor or incompetent.

ARTICLE IX

AMENDMENT TO OR TERMINATION OF THE PLAN

     The Board and the Committee, or either of them acting independently, reserve the right at any
time to amend or terminate the Plan in whole or in part. No amendment shall have the effect of
retroactively depriving Participants or Beneficiaries of rights already accrued under the Plan.
Any amendment to the Plan shall be executed by an officer of the Company. Upon termination of the
Plan, the Committee may, in its sole and absolute discretion, and notwithstanding any other
provision hereunder to the contrary, direct that all benefits hereunder will be paid as soon as
administratively practicable thereafter.

ARTICLE X

GENERAL AND MISCELLANEOUS

     10.1 In the event that any provision of this Plan shall be declared illegal or invalid for any
reason, said illegality or invalidity shall not affect the remaining provisions of this Plan but
shall be fully severable and this Plan shall be construed and enforced as if said illegal or
invalid provision had never been inserted herein.

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     10.2 The Article headings and numbers are included only for convenience of reference and are
not to be taken as limiting or extending the meaning of any of the terms and provisions of this
Plan. Whenever appropriate, words used in the singular shall include the plural or the plural may
be read as the singular.

     10.3 The validity and effect of this Plan and the rights and obligations of all persons
affected hereby shall be construed and determined in accordance with the laws of the State of Texas
unless superseded by federal law.

     10.4 A Participant shall have no security interest in any amounts credited hereunder on such
Participant’s behalf. It is the Company’s intention that this Plan be construed as a plan which is
unfunded and maintained primarily for the purpose of providing deferred compensation for a select
group of highly compensated employees.

     10.5 All amounts payable hereunder shall be reduced by any and all federal, state and local
taxes imposed upon the Participant or a Beneficiary which are required to be paid or withheld by
the Company.

     IN WITNESS WHEREOF, Dean Foods Company, the Company, has caused this document to be executed
on this on this ___ day of November, 2005, but effective as of the first day of January 2005.

	 	 	 	 	 	 	 
	 	 	DEAN FOODS COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

-8-exv10w8

 

Exhibit
10.8

AMENDMENT NO. 1

TO THE

DEAN FOODS COMPANY SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

(As Amended and Restated Effective as of January 1, 2005)

     This Amendment No. 1 is executed by Dean Foods Company (the “Company”).

     WHEREAS, Dean Foods Company (the “Company”) established the Dean Foods Company Supplemental
Executive Retirement Plan (the “Plan”) for the benefit of employees of the Company or its
subsidiaries who receive salaries and bonuses in excess of the amount which may be taken into
account under the Dean Foods Company 401(k) Plan (the “401(k) Plan”);

     WHEREAS, former Dean Foods Company (“Legacy Dean”) established the Dean Foods Company
Supplemental Benefit Plan (the “Supplemental Plan”) to provide supplemental benefits to a select
group of management and highly compensated employees;

     WHEREAS, Legacy Dean was merged into Dean Holding Company (“Dean Holding”) on December 21,
2001, pursuant to an agreement and plan of merger dated April 4, 2001, and as a result of such
merger, Dean Holding became the sponsor of the Supplemental Plan;

     WHEREAS, the Supplemental Plan was designed to provide benefits relating to matching and
profit sharing contributions that could not be made to the Dean Foods Company Savings & Investment
Plan (the “Savings Plan”) and to supplement benefits under the Dean Foods Company Salaried
Employees Pension Plan, which was subsequently merged into the Dean Foods Company Retirement Plan
(the “Retirement Plan”);

     WHEREAS, effective December 21, 2001, eligibility under the Retirement Plan was frozen and
effective December 31, 2002, the age and service credits taken into account under the Retirement
Plan were frozen;

     WHEREAS, the Retirement Plan subsequently merged into the Dean Foods Consolidated Pension Plan
(the “Pension Plan”) and the benefits previously provided under the Retirement Plan are now
reflected in the Supplement F to the Pension Plan;

     WHEREAS, the Savings Plan was merged into the Dean Foods 401(k) Plan effective April 1, 2002,
and thereafter the provisions of the Supplemental Plan designed to complement the Savings Plan
ceased to be applicable;

     WHEREAS, Dean Holding merged the Supplemental Plan into the Plan, effective February 28, 2006;

     WHEREAS, the Company desires to amend the Plan to ensure compliance with Section 409A of the
Code and to add provisions to address the merger of the Supplemental Plan into the Plan;

1

 

     NOW, THEREFORE, the Plan is hereby amended, generally effective January 1, 2005, unless
otherwise indicated, (1) to ensure the Plan complies with Section 409A of the Code, and (2) to add
Supplement A, along with Certificate 1 thereto, to the Plan, in the form set forth on the attached
pages, to add provisions applicable to the former Supplemental Plan participants.

     1. Section 4.4 is hereby amended in its entirety to read as follows:

     4.4 If there is a Change in Control of an employer or its direct or ultimate
parent, the Plan shall distribute the Accounts of all Participants employed by such
entity or its subsidiaries impacted by such Change in Control, in a single lump sum
within 30 days after such Change in Control. The Committee shall determine an
appropriate Valuation Date to be used in connection with the distributions to be
made, which Valuation Date shall not be more than one month prior to the date of
distribution. A “Change in Control” means (1) any “person” (as such term is used in
Section 13(d) of the Securities Exchange Act of 1934, as amended [the “Exchange
Act"], but specifically excluding the employer, the direct or ultimate parent or any
wholly-owned subsidiary of the employer, and/or any employee benefit plan maintained
by the employer, or the direct or ultimate parent or any wholly-owned subsidiary of
the employer) acquires (or has acquired during the 12-month period ending on the
date of the most recent acquisition by such person) as “beneficial owner” (as
determined pursuant to Rule 13d-3 of the Exchange Act), directly or indirectly,
securities of the employer (or its direct or ultimate parent) representing at least
thirty-five percent (35%) of the total voting power of the employer’s (or its direct
or ultimate parent’s) then outstanding securities; or (2) individuals who currently
serve on the board of directors of the employer or its direct or ultimate parent, or
whose election to the board of directors or nomination for election to the board of
directors was approved by a vote of at least two-thirds (2/3) of the directors who
either currently serve on the board of directors, or whose election or nomination
for election was previously so approved, who represent a majority of the board of
directors, are replaced during any 12-month period by directors who constitute a
majority of the board of directors and who were not approved by a vote of at least
two-thirds (2/3) of the directors prior to the date of appointment or election; or
(3) the employer or its direct or ultimate parent shall merge with or consolidate
into any other corporation, other than a merger or consolidation which would result
in the holders of the voting securities of the employer or its direct or ultimate
parent outstanding immediately prior thereto holding immediately thereafter
securities representing more than sixty percent (60%) of the total voting power of
the voting securities of the employer, its direct or ultimate parent, or such
surviving entity (or its direct or ultimate parent, if applicable) outstanding
immediately after such merger or consolidation; or (4) the sale or disposition of
all or substantially all of the assets of the employer to an unrelated person.

     2. Section 4.5 is hereby added to read as follows:

     4.5 Notwithstanding anything in Section 4.3 to the contrary, no payments shall
be made before the date that is six months after the date a

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Participant terminates employment with the Company and all of its subsidiaries
if that Participant is, on the date of termination, a “specified employee,” as
defined in the regulations issued by the U.S. Department of the Treasury under
Section 409A of the Code, which regulations are incorporated herein by reference.

     3. Article IX is hereby amended to read as follows:

ARTICLE IX

AMENDMENT TO OR TERMINATION OF THE PLAN

     The Board and the Committee, or either of them acting independently, reserve
the right at any time to amend or terminate the Plan in whole or in part or to add a
supplement to the Plan to provide benefits for specified Participants. No amendment
shall have the effect of retroactively depriving Participants or Beneficiaries of
rights already accrued under the Plan. Any amendment to the Plan shall be executed
by an officer of the Company. Upon termination of the Plan, the Committee may, in
its sole and absolute discretion, and notwithstanding any other provision hereunder
to the contrary, direct that all benefits hereunder will be paid as soon as
administratively practicable thereafter.

     4. Supplement A, along with Certificate 1 thereto, is hereby added to read in the form
attached hereto, effective February 28, 2006.

     This Amendment No. 1 has been executed on behalf of the Company by a duly authorized officer
effective as indicated above, this 5th day of September, 2006.

	 	 	 	 	 
	 	DEAN FOODS COMPANY

 	 
	 	By:  	 	 
	 	 	Vice President, HR Administrative Services 	 
	 	 	 	 

3

 

	 	 	 	 	 

SUPPLEMENT A

TO THE

DEAN FOODS COMPANY SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

     A-1. Purpose. The purpose of this Supplement A is to provide for the merger of the
Dean Foods Company Supplemental Benefits Plan (the “Supplemental Plan”) into the Plan. The
Supplemental Plan is a restated version of the Amended and Restated Dean Foods Company Supplemental
Benefit Plan (the “Prior Plan”) sponsored by the prior Dean Foods Company (“Legacy Dean”) that
merged into Dean Holding Company. This Supplement A is specifically intended to provide for the
benefits that would have been provided to participants under the Supplemental Plan but for the
merger of the Supplemental Plan into the Plan. Certain of these benefits are described in
certificates to this Supplement A.

     A-2. Eligibility. Each person who had a benefit under the Supplemental Plan and whose
benefit was not paid in full prior to February 28, 2006, shall, by virtue of the merger of the
Supplemental Plan into the Plan, be entitled to a benefit pursuant to this Supplement A and shall
be called a “Supplement A Participant.” Such person shall no longer be entitled to a benefit
pursuant to the Supplemental Plan. No employee was designated as eligible to become a participant
in the Supplemental Plan after December 21, 2001 and no other employee shall be entitled to
benefits pursuant to this Supplement A or any certificate thereto.

     A-3. Supplement A Benefits for Participants Who Terminated Employment Prior to Plan
Merger. The benefits provided hereunder with respect to any individual who retired or whose
employment with the Legacy Dean otherwise terminated prior to October 1, 1996, will, except as
otherwise provided herein, be governed in all respects by the terms of the Prior Plan as in effect
on the date of such individual’s retirement or other termination of employment. Further, any
Supplement A Participant who was receiving payments pursuant to the Supplemental Plan as of
February 28, 2006, shall continue to receive benefits from the Plan in the same form and amount as
such benefits were being paid pursuant to the Supplemental Plan as of such date until otherwise
provided by Section 4.4 or Article IX.

     A-4. Amount, Method and Timing of Benefit Distribution.

     (a) Savings Plan Excess Benefit. If a Supplement A Participant’s employment
with the Company and all of its subsidiaries is terminated as a result of the Supplement A
Participant’s death or after the Supplement A Participant is credited with at least one year
of vesting service (as determined under the terms of the Savings Plan) the Supplement A
Participant or his or her beneficiary, as the case may be, shall be entitled to receive a
benefit in an amount equal to the vested portion of the balance which would have accumulated
from an annual contribution equal to the difference between (i) the amount of the matching
contribution and profit sharing contributions that would have been made under the Savings
Plan with respect to such Supplement A Participant for each calendar year prior to 2003 if
the limitations of Sections 401(a)(17) and 415 of the Code had been disregarded (and
assuming that the Supplement A Participant had made the maximum salary reduction
contribution that is subject to matching under the Savings Plan), and (ii) the actual
amounts of such matching contributions and profit sharing contributions that were made under
the Savings Plan with respect to such Supplement A Participant;

4

 

provided, that such matching contribution shall only be credited with respect
to such calendar years prior to January 1, 2003, for which the Supplement A Participant
contributed to the Savings Plan the maximum salary reduction contribution that was subject
to matching under the Savings Plan (or such lesser amount as may have been allowed by
applicable law). No amount (other than interest as provided below) shall be credited to the
account of the Supplement A Participant after December 31, 2002. In addition, the
Supplement A Participant’s account shall be credited with interest on the Savings Plan
excess benefit provided pursuant to this Paragraph A-4(a) at a rate of 8% per annum through
January 31, 2006, and thereafter at a rate equal to the annual mid-term applicable federal
rate (AFR) set by the Internal Revenue Service determined as provided in the next sentences,
plus 1%. For the period of February 1, 2006 to June 30, 2006, the AFR to be used shall be
the annual mid-term rate for June 2006, prorated for the number of days from February 1,
2006 to June 30, 2006. For each subsequent 12-month period ending on June 30, the AFR to be
used shall be the annual mid-term AFR set by the Internal Revenue Service for the month of
June which ends such period. After the credits are made as of June 30th
following the calendar year in which the termination of the Supplement A Participant’s
service with the Company and all of its affiliates occurs, and not later than two weeks
after such June 30th (unless payment must be postponed to comply with Section 4.5
of the Plan), the benefit payable pursuant to this Paragraph A-4(a) shall be paid in a lump
sum amount to the Supplement A Participant (or in the event of his or her death, to his or
her beneficiary).

     (b) Pension Plan Excess Benefit. If a Supplement A Participant’s employment
with the Company and all of its subsidiaries is terminated as a result of the Supplement A
Participant’s death or after the Supplement A Participant is credited with at least five
years of vesting service (as determined under the terms of Supplement F to the Pension
Plan), the Supplement A Participant or his or her beneficiary, as the case may be, shall be
entitled to receive the actuarial equivalent of a monthly benefit in an amount equal to the
excess, if any, of his or her monthly benefit that would have accrued under the Pension Plan
calculated without regard to the limitations of Sections 401(a)(17) and 415 of the Code,
over his or her monthly benefit that actually accrued under the terms of the Pension Plan.
Notwithstanding the foregoing, no additional benefits shall accrue to any Supplement A
Participant pursuant to this Supplement A after January 31, 2006. Further, no age and
service credits after December 31, 2002, and no compensation increases after January 31,
2006, are taken into account under the Plan in calculating the benefit to be paid pursuant
to this Paragraph A-4(b). The benefit payable pursuant to this Paragraph A-4(b) shall be
actuarially reduced for early commencement using the factors and assumptions set forth in
the Pension Plan as applicable for participants covered by Supplement F to the Pension Plan,
and the benefit shall be payable in a lump-sum amount to the Supplement A Participant (or in
the event of his or her death, to his or her beneficiary) within two weeks after the June
30th following the calendar year in which the termination of the Supplement A
Participant’s service with the Company and all of its affiliates occurs (or such later date
as required under Section 4.5 of the Plan). Unless otherwise provided in a certificate
attached hereto, the actuarial equivalent factors to be used to determine the value of the
lump sum to be paid shall be as follows:

5

 

          (i) Applicable mortality table: The 1983 GAM table with a fixed blend of 50%
male and 50% female mortality rates, or such other table as may be prescribed by the
Commissioner of Internal Revenue for pension plans designed to be qualified under
section 401(a) of the Code in revenue rulings, notices or other guidance published
in the Internal Revenue Bulletin.

          (ii) Applicable interest rate: The average annual rate of interest on 30-year
Treasury securities for the month of August preceding the Plan Year containing the
annuity commencement date.

     (c) Designation of Beneficiaries. A Supplement A Participant may designate a
beneficiary to receive a payment of any death benefit payable pursuant to the terms of this
Supplement A by delivering to the Committee a written beneficiary designation, in the form
provided by the Committee, and executed specifically with respect to this Supplement A. If
a Supplement A Participant fails to designate a beneficiary for the Supplement A benefit,
then the beneficiary designated by the Supplement A Participant under the Dean Foods 401(k)
Plan or if none, the beneficiary determined pursuant to the terms of the Dean Foods 401(k)
Plan, shall be the beneficiary of the Supplement A Participant.

     A-5. Separate Individual Sub-Accounts for Savings Plan Excess Benefits. Each
Supplement A Participant shall be provided an individual book-keeping account record showing the
amount of that Supplement A Participant’s Savings Plan excess benefit.

6

 

CERTIFICATE 1

TO SUPPLEMENT A

TO THE

DEAN FOODS COMPANY SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

     1-1 Purpose. The purpose of this Certificate 1 is to set forth certain provisions
applicable to certain participants in the Prior Plan who subsequently became Supplemental Plan
Participants and whose benefit liability was then transferred to the Plan as of February 28, 2006.
The Prior Plan was amended and restated effective as of October 1, 1996; this Certificate 1 is
intended to preserve certain features of the Prior Plan for the benefit of participants in this
Certificate 1.

     1-2 Conflicts between the Plan, Supplement A and Certificate 1. The terms of this
Certificate 1, the terms of Supplement A and the terms of the Plan constitute the sole provisions
applicable to participants in this Certificate 1 for purposes of Supplement A and the Plan.
However, in the event of any conflict between the provisions of Supplement A and the Plan, and the
provisions of this Certificate 1, the terms and provisions of this Certificate 1 shall be
controlling to the extent necessary to resolve or eliminate such conflict.

     1-3 Certificate 1 Participants. This Certificate 1 shall be applicable to each
Supplement A Participant who was an officer of Legacy Dean on October 1, 1996, and was a
participant in the Prior Plan on or before October 1, 1996 (“Prior Plan Participants”).

     1-4 Amount of Benefit. If the employment with the Company and all of its subsidiaries
of a Prior Plan Participant terminates as a result of the Prior Plan Participant’s death or after
the Prior Plan Participant has attained the age of 60 years (such date of termination of employment
referred to herein as the “Benefit Entitlement Date”), the Prior Plan Participant or his
beneficiary, as the case may be, shall be entitled to receive the benefit payable under Paragraph
A-4(a) plus a benefit in an amount that is the greater of:

	 	(i)	 	the amount of the benefit that is payable as determined under
the provisions of Paragraph A-4(b); or
	 
	 	(ii)	 	(A) the amount that is the actuarial equivalent of a monthly
installment payment in the amount of 20% of the Prior Plan Participant’s
“Compensation Base” (as defined in Paragraph 1-5 below, plus (B) the amount of
the benefit that would be determined under the provisions of Paragraph A-4(b)
using the definition of “compensation” set forth in the Pension Plan prior to
January 1, 1995. Notwithstanding the terms of Section A-4(b), the lump-sum
payment of the amount payable pursuant to subparagraph 1-4(ii)(A) above for any
Prior Plan Participant who had attained the age of 60 as of October 1, 1996,
shall be computed using the actuarial assumptions set forth in the Prior Plan.

     1-5 Compensation Base. For purposes of this Certificate 1, a Prior Plan Participant’s
“Compensation Base” shall be the greater of (i) his “Final Compensation,” and (ii) his “Highest
Five-Year Average Compensation.” A Prior Plan Participant’s “Final Compensation” shall be

7

 

one-twelfth of the sum of the Prior Plan Participant’s “compensation” for the 12 consecutive
full calendar months of employment prior to the earlier of (1) his Benefit Entitlement Date, or (2)
January 31, 2006. A Prior Plan Participant’s “Highest Five-Year Average Compensation” shall be
one-sixtieth of the sum of his “compensation” for the 60 consecutive full calendar months of
employment out of the last 180 full calendar months of employment prior to the earlier of (1) his
Benefit Entitlement Date, or (2) January 31, 2006, which produces the highest sum, or, if the Prior
Plan Participant has less than 60 consecutive full calendar months of employment prior to the
earlier of (1) his Benefit Entitlement Date, or (2) January 31, 2006, the quotient derived from
dividing (A) the sum of the Prior Plan Participant’s “compensation” for his last consecutive full
calendar months of employment as of such date by (B) the number of such months. For purposes of
this Paragraph A-5, a Prior Plan Participant’s “compensation” for a calendar month shall be
comprised of such of the following amounts as are applicable to the Prior Plan Participant: (a)
base salary paid; (b) cash bonus paid; (c) stock bonuses paid in lieu of cash bonuses at the
election of the Prior Plan Participant, but excluding any portion of the value of such stock
bonuses at the time their issuance in excess of the amount of such cash bonuses and further
excluding any amount paid under the Performance Share Plan; (d) commissions paid; and (e) amounts
(other than interest) the Prior Plan Participant has deferred under any deterred compensation plan
or agreement with the Company (other than this Plan). For purposes of this Paragraph 1-5, the
Benefit Entitlement Date for a Prior Plan Participant shall be deemed to occur no later than the
date on which such Prior Plan Participant attains age 65. The term “compensation” shall not
include any amounts paid to a Prior Plan Participant solely as a result of a Change in Control.

     1-6 Timing of Benefit Distribution. Any amounts payable pursuant to the provisions of
Paragraph 1-4 above shall be payable at such time as are set forth in Paragraph A-4(b) (or such
later date as required under Section 2.3 of the Plan).

     1-7 Cessation of Benefit Accruals. Notwithstanding the foregoing provisions of
this Certificate 1, the benefit which may be payable to a Prior Plan Participant under Supplement A
and this Certificate 1 shall be frozen as of January 31, 2006.

8

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