Document:

exv10w3

 

EXHIBIT 10.3

Summary of Compensation Arrangements

for Chief Financial Officer

     The following is a summary of the compensation arrangements for Bradley B. Rush, chief
financial officer of the Company, effective August 4, 2005:

	 	•	 	an annual base salary in the amount of $325,000;
	 
	 	•	 	eligible to receive a 2005 target bonus amount in the range of $0 to $224,000; and
	 
	 	•	 	a grant on August 4, 2005 of 25,000 shares of restricted stock, which shares
vest on the first date after August 4, 2010 that is during a window period in
which the Company’s insiders are not restricted from selling Company common stock.exv4w1

 

EXHIBIT 4.1

 

     THE CORPORATION WILL FURNISH WITHOUT CHARGE

TO EACH
STOCKHOLDER WHO SO REQUESTS A COPY OF THE POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE,
PARTICIPATING, OPTIONAL OR OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK OR SERIES THEREOF OF THE
CORPORATION, AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS ON SUCH PREFERENCES AND/OR
RIGHTS.

     The following abbreviations, when used in the

inscription on the face of this certificate,
shall be construed as though they were written out in full according to applicable laws or
regulations:

	 	 	 	 	 	 	 	 	 	 	 
	TEN COM

	 	- as tenants in common
	 	UNIF GIFT MIN ACT-
	 	 	 	Custodian	 	 
	

	 	 	 	 	 
	 	 	 
	TEN ENT

	 	- as tenants by the entireties
	 	 	 	(Cust)

	 	 	(Minor)

	JT TEN
	 	- as joint tenants with right of	 	 	 	under Uniform Gifts to Minors
	

	 	  survivorship and not as tenants
	 	 	 	Act for	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	  in common	 	 	 	 	 	(State)

Additional abbreviations may also be used though not in the above list.

For Value

Received,__________________________________________________hereby sell, assign and transfer unto

	 	 	 	 	 	 	 	 	 
	PLEASE INSERT SOCIAL SECURITY OR OTHER	 	 	 	 
	IDENTIFYING NUMBER OF ASSIGNEE	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING

ZIP CODE, OF ASSIGNEE)
	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	Shares
	 	 	 
	of the capital stock represented by the within Certificate, and do hereby irrevocably

constitute
and appoint	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	Attorney
	 	 	 
	to transfer the said stock on the books of the within named Company with full power of

substitution
in the premises.	 	 
	 
	 	 	 	 	 	 	 	 
	Dated
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 

	 	 	 
	
_____________________________________________________________________________________

	NOTICE:

	 	THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS

WRITTEN UPON THE FACE OF THE
CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.

 

	 	 	 
	SIGNATURE(S) GUARANTEED:
	 	 
	

	 	 
	

	 	THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR

INSTITUTION (BANKS, STOCKBROKERS, SAVINGS

AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION

PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15.

KEEP THIS CERTIFICATE IN A SAFE PLACE. IF IT IS LOST,

STOLEN, MUTILATED OR

DESTROYED, THE CORPORATION WILL REQUIRE A BOND OF INDEMNITY AS A CONDITION TO THE

ISSUANCE OF A REPLACEMENT CERTIFICATE.exv10w1

 

Exhibit 10.1

September 7, 2005

Mr. Alan Bernon

209 Cliff Road

Wellesley Hills MA 02481

Dear Alan:

I am pleased to offer you the position of President of Dean Foods Dairy Group (the “Dairy Group”),
effective January 1, 2006. This position will report directly to me. We are delighted that you are
willing to accept this new responsibility and I look forward to having you join our team in Dallas
in September 2005.

Here are the specifics of your offer:

Term/Base Salary

We contemplate an initial term of employment through January 31, 2009. You will be paid an annual
base salary at the rate of $600,000 for the last four months of 2005 and for all of 2006, $650,000
for 2007, and $700,000 for 2008.

Annual Bonus Opportunity

Effective September 1, 2005, your annual bonus target will be increased to 70% of your annualized
salary, subject to the achievement of pre-established operating targets for the Northeast Region.
Effective January 1, 2006, when you assume the role of President of the Dairy Group, you will be
eligible to earn an annual bonus with a target amount equal to 80% of your annualized salary,
subject to the achievement of certain operating targets for the group. You can earn up to 200% of
your targeted bonus if operating targets are exceeded.

Stock Options and Restricted Stock

In September 2005, you will be granted 20,000 restricted stock units (RSUs) as a signing bonus. In
January 2006, you will be granted (i) options to purchase 276,000 shares of Dean Foods common stock
and (ii) 75,000 RSUs. This award reflects an “upfront” three-year grant. The exercise price of
the options will be the closing price of a share of Dean Foods stock on the date preceding the date
of grant. The options and RSUs will vest in equal installments over a period of three (3) years,
beginning on the first anniversary date of the grant and fully vesting by the third anniversary of
the date of grant. Any stock options which are or which become vested on or prior to your
termination of employment shall remain exercisable for a period of no less than twelve (12) months
following your termination of employment. Commencing January 2009, your eligibility to participate
in the long term incentive program and the amount and nature of any future long term incentive
awards will be determined by the Board of Directors.

 

 

Mr. Alan Bernon

September 7, 2005

Page 2 of 4

Management
Deferred Compensation Plan

You will be eligible to participate in the Deferred Compensation Plan. The plan provides eligible
executives with the opportunity to save on a tax-deferred basis.

Vacation Benefits

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

Relocation Benefits

We want your move to Texas to be a positive one. The relocation benefits provided to you include:
household goods move; temporary housing; home visits; in-transit expenses; home sale assistance;
duplicate housing costs; and, new home closing assistance. The policy describing these benefits is
enclosed. In addition, you will be entitled to comparable relocation benefits on termination of
your employment, at any time and for any reason, other than termination by the company for cause
(as defined below).

Other Benefit Plans

You will also be eligible to participate in all employee benefit plans, programs, and arrangements
made available to our senior-level executives or our employees generally on the same terms and
conditions as other senior-level executives.

Severance

If your employment is terminated (whether during the initial term or any time thereafter) as a
result of a “qualifying termination,” meaning any termination other than a termination (i) for
cause (as defined below), or (ii) voluntarily by you without good reason (as defined below), you
will receive a lump sum severance payment equivalent to two years of your base salary and target
bonuses, less lawful deductions. If any such qualifying termination occurs prior to January 31,
2009, all unvested stock options, RSUs or other equity grants made to you will vest in full upon
such qualifying termination. You will be required to execute a release of all claims and such
other agreements as the company may deem necessary or appropriate in order to receive such
severance pay and accelerated vesting.

For purposes of this letter agreement, the term “good reason” shall have the same meaning given
such term under the Change in Control Agreement referenced below.

Termination for Cause

In the event that a termination of your employment with Dean Foods occurs for cause, no severance
payment will be made. If your employment is terminated for cause, all unvested stock option and
other equity grants made to you and your rights thereunder will be automatically terminated.

The term “cause” shall mean: (a) your conviction of any crime deemed by Dean Foods to make your
continued employment untenable; (b) you commit an act of gross negligence or willful misconduct in
connection with your employment with Dean Foods or any of its affiliates; (c) you

 

 

Mr. Alan Bernon

September 7, 2005

Page 3 of 4

commit any act of dishonesty relating to Dean Foods or any of its affiliates, its employees, agents
or other representatives; or (d) you fail to comply with the Dean Foods Code of Ethics, or engage
in any similar conduct which brings Dean Foods or any of its affiliates into disrepute. In each
case, any termination for cause will not be effective unless the Board of Directors of Dean Foods
has provided you with (i) written notice of the Board’s intention to terminate you for cause, and
(ii) an opportunity for you to appear before the Board to discuss any such termination. No act or
omission shall constitute the basis of a termination for cause if such act or omission is taken or
omitted at the request of the Board or another senior officer of Dean Foods, or is based upon the
advice of counsel to Dean Foods.

Change-In-Control Provisions

You will be provided a Change in Control agreement comparable to that currently provided to other
Dean Foods executive officers. In general, this agreement provides benefits of three times your
annual salary and target bonus, plus vesting of all equity awards and continued health coverage for
a two-year period in certain circumstances following a Change in Control. Such benefits would be
in lieu of, and not in addition to, any severance payments under this agreement. As stated in the
Change in Control Agreement, in order to receive these benefits, your employment must be
terminated, either by the company within two years after a Change in Control, or by you for good
reason within such two-year period, or by you for any reason during the 13th month after
a Change in Control. The details of these provisions are set forth more fully in the enclosed
Change of Control Agreement.

Other Matters

As you know, you are required to comply with the Dean Foods Code of Ethics as a condition of
employment. You are required to sign the Compliance Certificate contained within the Code of
Ethics at the time your employment in your new position begins and periodically thereafter.

Your new position also requires that you sign a Non-Competition Agreement. Enclosed are two
copies.

The Compensation Committee will review your base salary, bonus opportunities, and other components
of your compensation for possible upward adjustment if the Compensation Committee materially
increases the compensation levels of other senior-level executives.

In light of your new role as President of the Dairy Group, I believe it is appropriate for you to
continue to serve on the Board of Directors. Accordingly, I intend to recommend that the
Governance Committee nominate you for reelection to the Board of Directors when your current term
expires. However, all decisions as to nominations to the Board are and will continue to be made by
the Governance Committee of the Board.

 

 

Mr. Alan Bernon

September 7, 2005

Page 4 of 4

Conclusion

Alan, I am very confident you will make lasting contributions to the company. I look forward to
working with you as we continue to build for the future. We are delighted to have you join us in
Dallas and look forward to your arrival.

	 	 	 
	 

	 	Best regards,
	 
	 	 
	 

	 	/s/ Gregg L. Engles
	 
	 	 
	 

	 	Gregg L. Engles

	 	 	 
	Agreed and accepted:
	 	 
	 
	 	 
	/s/ Alan J. Bernon
	 	 
	 

	 	 
	Alan J. Bernon
	 	 
	 
	 	 
	/s/ September 7, 2005
	 	 
	 

	 	 
	Date
	 	 
	 
	 	 
	Enclosures

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