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Exhibit 10.2

DEAN FOODS COMPANY

RESTRICTED STOCK UNIT (“RSU”) AWARD AGREEMENT

     This AGREEMENT (this “Agreement”), effective as of the date indicated on the Notice of
Grant of Award delivered herewith (the “Notice of Grant”), is made and entered into by and
between Dean Foods Company, a Delaware corporation (the “Company”), and the individual
named on the Notice of Grant (“you”).

WITNESSETH:

     WHEREAS, the Board of Directors of the Company has adopted and approved the Dean Foods Company
Third Amended and Restated 1989 Stock Awards Plan (the “Plan”), which Plan was approved as
required by the Company’s stockholders and provides for the grant of Options, Restricted Stock and
other stock-based Awards to certain selected Employees and Non-Employee Directors of the Company
and its Subsidiaries. Capitalized terms used and not otherwise defined in this Agreement shall
have the meanings set forth in the Plan; and

     WHEREAS, the Awards provided for under the Plan are intended to comply with the requirements
of Rule 16b-3 under the Exchange Act; and

     WHEREAS, the Committee has selected you to participate in the Plan and has awarded the
restricted stock units (“RSUs”) described in this Agreement to you.

     NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
herein contained, and as an inducement to you to continue as an employee of the Company (or its
Subsidiaries), you and the Company hereby agree as follows:

     1. Grant of Award. The Company hereby grants to you and you hereby accept, subject to
the terms and conditions set forth in the Plan and in this Agreement, the number of RSUs shown on
the Notice of Grant, effective as of the date indicated on the Notice of Grant (the “Date of
Grant”). Each RSU represents the right to receive one share of the Company’s Common Stock,
subject to the terms and conditions set forth in the Plan and in this Agreement. The shares of
Common Stock that are issuable upon vesting of the RSUs granted to you pursuant to this Agreement
are referred to in this Agreement as “the Shares.” Subject to the provisions of Sections
2(c), 3(b) and 7 hereof, this Award of RSUs is irrevocable and is intended to conform in all
respects with the Plan.

     2. Vesting.

          (a) Regular Vesting. Except as otherwise provided in the Plan or in this Section 2,
your RSUs will vest ratably in three equal annual increments commencing on the first anniversary of
the Date of Grant.

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               (b) Accelerated Vesting. In addition to the vesting provisions contained in Sections
2(a) above, your RSUs will automatically and immediately vest in full upon a Change in Control.

               (c) Forfeiture of Unvested RSUs. Notwithstanding the provisions of Sections 2(a) and
2(b) above or any provisions of the Plan to the contrary, if your employment with the Company or
any Subsidiary terminates for any reason (including, without limitation, by reason of your death,
permanent or total disability, Qualifying Retirement or other retirement) before all or any portion
of the RSUs subject to this Award have vested, the unvested RSUs will be immediately forfeited and
neither you nor your estate will have any further rights to such unvested RSUs or the Shares
represented by those forfeited RSUs.

     3. Distribution of Shares.

          (a) Distribution Upon Vesting. The Company will distribute to you (or to your estate
in the event that your death occurs after a vesting date but before distribution of the
corresponding Shares), as soon as administratively practicable after each vesting date, the Shares
of Common Stock represented by the RSUs that vested on such vesting date.

     (b) Forfeiture of Shares. Notwithstanding any provision of this Agreement or the Plan
to the contrary, if you are discharged from the employment of the Company or any of its
Subsidiaries for Cause (as defined below), your rights in your RSUs whether vested or unvested and
your right to receive any undistributed Shares will be immediately and permanently forfeited. For
purposes of this Agreement, your discharge will be deemed to be “for Cause” only if you
have (i) misappropriated funds or property of the Company or any Subsidiary to your personal use,
or (ii) willfully and without authorization disclosed Confidential Information (as defined below)
that resulted in or could reasonably result in material harm to the Company or any Subsidiary, or
(iii) been convicted of a felony, or (iv) violated the Company’s Code of Ethics. The determination
of whether you have been discharged for Cause will be determined by the Board or the Committee.
For purposes of this Agreement, “Confidential Information” shall mean all business records,
trade secrets, know-how, customer lists or compilations, terms of customer agreements, sources of
supply, pricing or cost information, financial information or personnel data and other confidential
or proprietary information used and/or obtained by you in the course of your employment with the
Company or any Subsidiary; provided that the term “Confidential Information” will not include
information which (i) is or becomes publicly available other than as a result of a disclosure by
you which is prohibited by this agreement or by any other legal, contractual or fiduciary
obligation that you may owe to the Company or any Subsidiary, or (ii) is widely known within one or
more of the industries in which the Company or any Subsidiary operates, or you can demonstrate was
otherwise known to you prior to becoming an employee of the Company or any Subsidiary, or (iii) is
or becomes available to you on a nonconfidential basis from a source (other than the Company or any
Subsidiary, including any employee thereof) that is not prohibited from disclosing such information
to you by a legal, contractual or fiduciary obligation to the Company or any Subsidiary.

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          (c) Compliance With Law. The Company shall not be obligated to issue your Shares upon
the vesting of any RSU or otherwise unless the issuance and delivery of such Shares complies 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 Company’s Common Stock may then be listed. As a condition to the distribution of
your Shares, the Company may require you 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 issue
your Shares if the Company cannot obtain authority from the appropriate regulatory bodies deemed by
the Company to be necessary to lawfully distribute your Shares. In addition, the Company shall
have no obligation to you, express or implied, to list, register or otherwise qualify any of your
Shares of Common Stock.

     4. Shareholder Rights. Except as set forth in the Plan, neither you nor any person
claiming under or through you shall be, or have any of the rights or privileges of, a stockholder
of the Company in respect of the Shares issuable pursuant to this Award unless and until your
Shares shall have been issued.

     5. 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 vesting of any RSU or issuance of any of the
Shares subject thereto.

     6. Transfer of RSUs. The RSUs granted herein are not transferable except in
accordance with the provisions of the Plan.

     7. Covenant Not to Compete or Solicit. In consideration of this Award, you hereby
agree that, during the term of your employment with the Company or any Subsidiary and for a period
of two years thereafter, you will not, directly or indirectly, individually or on behalf of any
person or entity other than the Company or any of its Subsidiaries:

          (a) Become associated with (as defined below) any company or business (other than the Company
or any Subsidiary) engaged primarily in the manufacture, distribution, sale or marketing of any of
the Relevant Products (as defined below) in any geographical area in which the Company or any of
its Subsidiaries operates;

          (b) Approach, consult, solicit business from, or contact or otherwise communicate, directly or
indirectly, in any way with any Customer (as defined below) in an attempt to (1) divert business
from, or interfere with any business relationship of the Company or any of its Subsidiaries, or (2)
convince any Customer to change or alter any of such Customer’s existing or prospective contractual
terms and conditions with the Company or any Subsidiary; or

          (c) Solicit, induce, recruit or encourage, either directly or indirectly, any employee of the
Company or any Subsidiary to leave his or her employment with the Company

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or any Subsidiary or employ or offer to employ any employee of the Company or any Subsidiary. For
the purposes of this section, an employee of the Company or any Subsidiary shall be deemed to be an
employee of the Company or any Subsidiary while employed by the Company and for a period of 60 days
thereafter.

     For purposes of this Agreement, the following terms shall have the meanings indicated:

     “associated with” means to become involved or act as an owner, partner, stockholder,
investor, joint venturer, lender, director, manager, officer, employee, consultant, independent
contractor, representative or agent.

     “Customer” means all persons or entities who purchased any Relevant Product from the
Company or any Subsidiary during the term of your employment with the Company or any Subsidiary.

     “Relevant Product(s)” means (i) milk and milk-based beverages, (ii) creams and
creamers, (iii) ice cream and ice cream novelties, (iv) ice cream mix, and (v) cultured dairy
products.

     Notwithstanding the foregoing, (1) the restrictions of this Section 7 shall terminate
immediately if your employment with the Company or any Subsidiary is involuntarily terminated by
the Company or such Subsidiary without Cause (as defined in Section 3(c) hereof), and (2) you are
not prohibited from owning, either of record or beneficially, not more than five percent (5%) of
the shares or other equity of any publicly traded company. Your obligation under this Section 7
shall survive the vesting or forfeiture of your RSUs and/or the distribution or forfeiture of the
underlying Shares. The provisions of this Section 7 are not intended to override, supercede,
reduce, modify or affect in any manner any other non-competition or non-solicitation agreement
between you and the Company or any Subsidiary. Any such covenant or agreement shall remain in full
force and effect in accordance with its terms. Any breach of any provision of this Section 7 will
result in immediate and complete forfeiture of your unvested RSUs and your undistributed Shares.
In addition, you hereby agree that if you violate any provision of this Section 7, you will return
to the Company any Shares that were previously issued to you or, if you no longer own the Shares,
an amount in cash equal to the fair market value of any such Shares on the date they were issued to
you. In addition, the Company will be entitled to injunctive and other relief to prevent or enjoin
any violation of the provisions of this Agreement.

     You acknowledge that you have given careful consideration to the restraints imposed by this
Agreement, and you fully agree that they are necessary for the reasonable and proper protection of
the business of the Company and its Subsidiaries. You agree that each and every restraint imposed
by this Agreement is reasonable with respect to subject matter, time period, and geographical area.
Except as expressly set forth herein, the restraints imposed by this Agreement shall continue
during their full time periods and throughout the geographical area set forth in this Agreement.

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     If you have violated any provision of this Section 7 and any of the provisions of subsections
(a), (b) or (c) of this Section 7 are deemed to be unenforceable, then (1) your unvested RSUs and
undistributed Shares shall be forfeited and (2) you hereby agree that you will return to the
Company any Shares that were previously issued to you or, if you no longer own the Shares, an
amount in cash equal to the fair market value of any such Shares on the date they were issued to
you. In addition, if any of the restrictions of this Section 7 are deemed unenforceable as
written, the parties expressly authorize the court to revise, delete, or add to the restrictions
contained in this Section 7 to the extent necessary to enforce the intent of the parties and to
provide the goodwill, confidential information, and other business interests of the Company and its
Subsidiaries with effective protection.

     8. Plan Incorporated. You accept the RSUs hereby granted subject to all the
provisions of the Plan, which, except as expressly contradicted by the terms hereof, are
incorporated into this Agreement, including the provisions that authorize the Committee to
administer and interpret the Plan and which provide that the Committee’s decisions, determinations
and interpretations with respect to the Plan are final and conclusive on all persons affected
thereby.

     9. Miscellaneous.

          (a) No Guaranteed Employment. Nothing contained in this Agreement shall affect the
right of the Company to terminate your employment at any time, with or without Cause, or shall be
deemed to create any rights to employment on your part. 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 you, 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 you. To the extent there is a conflict
between this Agreement and such an employment contract, the employment contract shall govern and
take priority.

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

          (c) Binding Agreement. Subject to the limitations in this Agreement on the
transferability by you of the Award granted herein, this Agreement shall be binding upon and inure
to the benefit of the representatives, executors, successors or beneficiaries of the parties
hereto.

          (d) 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.

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          (e) 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.

          (f) 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.

          (g) 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.

          (h) 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.

          (i) 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.

          (j) 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.

END OF AGREEMENT

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Exhibit 10.3

CHANGE IN CONTROL AGREEMENT

     THIS CHANGE IN CONTROL AGREEMENT (this “Agreement”) is entered into effective as of
September _7_, 2005, by and between DEAN FOODS COMPANY, a Delaware corporation (together with its
subsidiaries, the “Company”), and Alan Bernon (the “Executive”).

RECITALS

     A. The Board of Directors of the Company (the “Board”) has determined that the
interests of the Company will be advanced by providing the key executives of the Company with
certain benefits in the event of the termination of employment of any such executive in connection
with or following a Change in Control (as hereinafter defined).

     B. The Board believes that such benefits will enable the Company to continue to attract and
retain competent and qualified executives, will assure continuity and cooperation of management and
will encourage such executives to diligently perform their duties without personal financial
concerns, thereby enhancing shareholder value and ensuring a smooth transition.

     C. The Executive is a key executive of the Company.

AGREEMENTS

     NOW, THEREFORE, for good and valuable consideration, including the mutual covenants set forth
herein, the parties hereto agree as follows:

     1. Definitions. The following terms shall have the following meanings for purposes of this
Agreement.

     “Affiliate” means any entity controlled by, controlling or under common control with, a person
or entity.

     “Annual Pay” means the sum of (i) an amount equal to the annual base salary rate payable to
the Executive by the Company at the time of termination of his or her employment plus (ii)
an amount equal to the target bonus established for the Executive for the Company’s fiscal year in
which his or her termination of employment occurs.

     “Cause” means the Executive’s (i) willful and intentional material breach of this Agreement,
(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, or (iii) conviction of, or plea of nolo contendere to, a felony; provided, however, that
no act or omission shall constitute “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 and, to the extent practicable, to cure such acts or omissions. Further,
no act or omission shall be considered as “willful” or “intentional” if the Executive reasonably
believed such acts or omissions were in the best interests of the Company.

     “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 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) individuals who currently serve on the Board, or
whose election to the Board or nomination for election to the Board was approved by a vote of at
least two-thirds (2/3) of the directors who either currently serve on the Board, or whose election
or nomination for election was previously so approved, cease for any reason to constitute a
majority of the Board; or (3) the Company or any subsidiary of the Company 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 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.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Confidential Information” means all information, whether oral or written, previously or
hereafter developed, acquired or used by the Company or its subsidiaries and relating to the
business of the Company and its subsidiaries that is not generally known to others in the Company’s
area of business, including without limitation trade secrets, methods or practices developed by the
Company or any of its subsidiaries, financial results or plans, customer or client lists, personnel
information, information relating to negotiations with clients or prospective clients, proprietary
software, databases, programming or data transmission methods, or copyrighted materials (including
without limitation, brochures, layouts, letters, art work, copy, photographs or illustrations). It
is expressly understood that the foregoing list shall be illustrative only and is not intended to
be an exclusive or exhaustive list of “Confidential Information.”

     “Good Reason” means any of the following events occurring, without the Executive’s prior
written consent specifically referring to this Agreement, within two (2) years following a Change
in Control:

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     (1) (A) Any reduction in the amount of the Executive’s Annual Pay, (B) any reduction in
the amount of Executive’s other incentive compensation opportunities, or (C) any significant
reduction in the aggregate value of the Executive’s benefits as in effect from time to time
(unless in the case of either B or C, such reduction is pursuant to a general change in
compensation or benefits applicable to all similarly situated employees of the Company and
its Affiliates);

     (2) (A) the removal of the Executive from the Executive’s position as President of Dean
Foods Dairy Group of the ultimate parent of the business of the Company or (B) any other
significant reduction in the nature or status of the Executive’s duties or responsibilities;

     (3) transfer of the Executive’s principal place of employment to a metropolitan area
other than that of the Executive’s place of employment immediately prior to the Change in
Control; or

     (4) failure by the Company to obtain the assumption agreement referred to in Section 7
of this Agreement prior to the effectiveness of any succession referred to therein, unless
the purchaser, successor or assignee referred to therein is bound to perform this Agreement
by operation of law.

     “Termination Pay” means a payment made by the Company to the Executive pursuant to Section
2(a)(ii) or Section 2(b)(ii) hereof.

2. Benefits.

          (a) Involuntary or Constructive Termination. In the event that the Executive’s
employment with the Company or its successor is terminated by the Company or its successor without
Cause or by the Executive for Good Reason in connection with or within two years after a Change in
Control, the Executive shall be entitled to the following payments and other benefits:

               (i) The Company shall pay to the Executive a cash payment in an amount equal to the sum of (A)
the Executive’s accrued and unpaid salary as of his or her date of termination of employment, plus
(B) his or her accrued and unpaid bonus, if any, for the Company’s prior fiscal year, plus (C) an
amount equal to the greater of the following, paid on a pro rata basis for the portion of the year
between January 1 and the date of the Executive’s termination of employment: (x) Executive’s target
bonus for the year of termination, or (y) the actual bonus to which the Executive would be entitled
in the year of termination, plus (D) reimbursement for all expenses reasonably and necessarily
incurred by the Executive (in accordance with Company policy) prior to termination in connection
with the business of the Company. This amount shall be paid on the date of the Executive’s
termination of employment.

               (ii) The Company shall pay to the Executive a cash payment in an amount equal to three (3)
times the Executive’s Annual Pay. This amount shall be paid by the Company in accordance with
Section 2(e) hereof.

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               (iii) The Company shall pay to the Executive a cash payment in an amount equal to the sum of
(A) the Executive’s unvested account balance under the Company’s 401(k) plan, and (B) three (3)
times the amount of the most recent matching contribution that the Company paid into the
Executive’s 401(k) account. This amount shall be paid as soon as administratively practicable
after the date of the Executive’s termination of employment.

               (iv) The Executive and his or her eligible dependents shall be entitled for a period of two
(2) years following his or her date of termination of employment to continued coverage, on the same
basis as similarly situated active employees, under the Company’s group health, dental, long-term
disability and life insurance plans as in effect from time to time (but not any other welfare
benefit plans or any retirement plans); provided that coverage under any particular benefit plan
shall expire with respect to the period after the Executive becomes covered under another
employer’s plan providing for a similar type of benefit. In the event the Company is unable to
provide such coverage on account of any limitations under the terms of any applicable contract with
an insurance carrier or third party administrator, the Company shall pay the Executive an amount
equal to the cost of such coverage.

               (v) The Company shall pay all costs and expenses, up to a maximum of $50,000, related to
outplacement services for the Executive, the provider of which shall be selected by the Executive
in his or her sole discretion. This amount shall be paid directly to the provider of such
services.

          (b) Voluntary Termination. If, at any time during the 13th month after a
Change in Control, the Executive voluntarily terminates his or her employment with the Company for
any reason, the Executive shall be entitled to receive the same payments and benefits as set forth
in Sections 2(a)(i) through 2(a)(v) hereof.

          (c) Accelerated Vesting. All of the Executive’s unvested awards under the Company’s
stock award plans shall automatically and immediately vest in full upon the occurrence of a Change
in Control.

          (d) No Duplication; Other Severance Pay. There shall be no duplication of severance
pay in any manner. In this regard, the Executive shall not be entitled to Termination Pay
hereunder for more than one position with the Company and its Affiliates. If the Executive is
entitled to 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. If
Executive is entitled to any severance or termination payments under any employment or other
agreement (other than stock award agreements) with the Company or any of its Affiliates, the
severance compensation to which Executive would otherwise be entitled under this Agreement shall be
reduced by the amount of such payment. Except as set forth above, the foregoing payments and
benefits shall be in addition to and not in lieu of any payments or benefits to which the Executive
and his or her dependents may otherwise be entitled to under the Company’s

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compensation and employee benefit plans. Nothing herein shall be deemed to restrict the right
of the Company from amending or terminating any such plan in a manner generally applicable to
similarly situated active employees of the Company and its Affiliates, in which event the Executive
shall be entitled to participate on the same basis (including payment of applicable contributions)
as similarly situated active executives of the Company and its Affiliates.

          (e) Mutual Release. Termination Pay shall be conditioned upon the execution by the
Executive and the Company of a valid mutual release to be prepared by the Company pursuant to which
the Executive and the Company shall each mutually release each other, to the maximum extent
permitted by law, from any and all claims either party may have against the other that relate to or
arise out of the employment or termination of employment of the Executive, except such claims
arising under this Agreement, any employee benefit plan, or any other written plan or agreement (a
“Mutual Release”). The full amount of Termination Pay shall be paid in a lump sum in cash
to the Executive within ten (10) days following receipt by the Company of a Mutual Release which is
properly executed by the Executive; provided, however, that in the event applicable law allows the
Executive to revoke the Mutual Release for a period of time, and the Mutual Release is not revoked
during such period, the full amount of Termination Pay shall be paid to the Executive following the
expiration of such period.

3. Excise Taxes.

          (a) Gross-Up Payment. Anything in this Agreement to the contrary notwithstanding and
except as set forth below, if it is determined that any payment or distribution (a
“Payment”) by the Company to or for the benefit of the Executive (whether paid or payable
or distributed or distributable pursuant to the terms of this Agreement or otherwise, but
determined without regard to any additional payments required under this Section 3) including,
without limitation, vesting of options, would be subject to the excise tax imposed by Section 4999
of the Code, or if any interest or penalties are incurred by the Executive with respect to such
excise tax (such excise tax, together with any such interest and penalties, being hereinafter
collectively referred to as the “Excise Tax”), then the Executive shall be entitled to
receive an additional payment (a “Gross-Up Payment”) in an amount sufficient to pay all
taxes (including any interest or penalties imposed with respect to such taxes), including, without
limitation, any income taxes (and any interest and penalties imposed with respect thereto) and
Excise Tax imposed upon the Gross-Up Payment.

          (b) Calculation of Gross-Up Payment. Subject to the provisions of paragraph (c) of
this Section 3, all determinations required to be made under this Section 3, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to
be used in arriving at such determination, shall be made by a certified public accounting firm
selected by the Company and reasonably acceptable to the Executive (the “Accounting Firm”),
which shall be retained to provide detailed supporting calculations both to the Company and the
Executive. If the Accounting Firm is serving as accountant or auditor for the individual, entity
or group effecting the Change in Control, the Executive shall have the right to appoint another
nationally recognized accounting firm to make the determinations required hereunder (which
accounting firm shall then be referred to as the Accounting Firm hereunder).

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All fees and expenses of the Accounting Firm shall be paid solely by the Company. Any
Gross-Up Payment, as determined pursuant to this Section 3, shall be paid by the Company to the
Executive within five (5) days of the receipt of the Accounting Firm’s determination. Any
determination by the Accounting Firm shall be binding upon the Company and the Executive. As a
result of the uncertainty in the application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which should
have been made will not have been made by the Company (“Underpayment”), consistent with the
calculations required to be made hereunder. If the Company exhausts its remedies pursuant to
paragraph (c) of this Section 3 and the Executive thereafter is required to pay an Excise Tax in an
amount that exceeds the Gross-Up Payment received by the Executive the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such Underpayment shall be
promptly paid by the Company to or for the benefit of the Executive.

          (c) Contested Taxes. The Executive shall notify the Company in writing of any claim
by the Internal Revenue Service that, if successful, would result in an Underpayment. Such
notification shall be given as soon as practicable but no later than ten (10) business days after
the Executive is informed in writing of such claim and shall apprise the Company of the nature of
such claim and the date on which such claim is requested to be paid or appealed. The Executive
shall not pay such claim prior to the expiration of the 30-day period following the date on which
it gives such notice to the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due). If the Company notifies the Executive in writing prior
to the expiration of such period that it desires to contest such claim, the Executive shall:

               (i) give the Company any information reasonably requested by the Company relating to such
claim,

               (ii) take such action in connection with contesting such claims as the Company shall
reasonably request in writing from time to time, including, without limitation, accepting legal
representation with respect to such claim by an attorney reasonably selected by the Company,

               (iii) cooperate with the Company in good faith in order to effectively contest such claim, and

               (iv) permit the Company to participate in any proceedings relating to such claim;

     provided, however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such contest and shall
indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax
(including interest and penalties with respect thereto) imposed as a result of such representation
and payment of costs and expenses. Without limitation on the foregoing provisions of this
paragraph (c), the Company shall control all proceedings taken in connection

6

 

with such contest and,
at its sole option, may pursue or forego any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect of such claim and
may, at its sole option, either direct the Executive to pay the tax claimed and sue for a refund or
to contest the claim in any permissible manner, and the Executive agrees to prosecute such contest
to a determination before any administrative tribunal, in a court of initial jurisdiction and in
one or more appellate courts, as the Company shall determine; provided, however, that if the
Company directs the Executive to pay such claim and sue for a refund, the Company shall advance the
amount of such payment to the Executive, on an interest-free basis, and shall indemnify and hold
the Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including
interest or penalties with respect thereto) imposed with respect to such advance or with respect to
any imputed income with respect to such advance; and further provided that any extension of the
statute of limitations relating to payment of taxes for the taxable year of the Executive with
respect to which such contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company’s control of the contest shall be limited to issues with respect
to the amount of the Gross-Up Payment, and the Executive shall be entitled to settle or contest, as
the case may be, any other issue raised by the Internal Revenue Service or any other taxing
authority.

          (d) Refunds. If, after the receipt by the Executive of an amount advanced by the
Company pursuant to this Section 3, the Executive becomes entitled to receive any refund with
respect to such claim, the Executive shall promptly pay to the Company the amount of such refund
(together with any interest paid or credited thereon after taxes applicable thereto).

     4. Tax Withholding. All payments to the Executive under this Agreement will be subject to the
withholding of all applicable employment and income taxes.

     5. Severability. In the event that any provision or portion of this Agreement shall be
determined to be invalid or unenforceable for any reason, the remaining provisions of this
Agreement shall be unaffected thereby and shall remain in full force and effect.

     6. Successors. This Agreement shall be binding upon and inure to the benefit of the Company
and any successor of the Company. The Company will require any successor to all or substantially
all of the business and/or assets of the Company to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be required to perform
if no succession had taken place.

     7. Entire Agreement. By executing this Agreement, the Executive agrees that any and all
agreements executed between the Company (or any subsidiary of the Company or any predecessor of the
Company or any subsidiary of the Company) and the Executive prior to the date hereof regarding
benefits resulting from a Change in Control are hereby nullified and cancelled in their entirety,
and this Agreement shall substitute for and fully replace any such prior agreements. This
Agreement shall constitute the entire agreement between the parties hereto with respect to the
subject matter hereof. This Agreement may not be modified in any manner except by a written
instrument signed by both the Company and the Executive.

7

 

     8. Notices. Any notice required under this Agreement shall be in writing and shall be
delivered by certified mail return receipt requested to each of the parties at the following
address, or at such other address as may be communicated to the other party in writing as follows:

To the Executive:

Alan Bernon

2515 Cedar Springs Road #1717

Dallas TX 75201

To the Company:

DEAN FOODS COMPANY

2515 McKinney Avenue, Suite 1200

Dallas, Texas 75201

Attn.: General Counsel

Tel.: 214-303-3400

Fax: 214-303-3499

     9. Governing Law. The provisions of this Agreement shall be construed in accordance of the
laws of the State of Delaware, except to the extent preempted by ERISA or other federal laws, as
applicable, without reference to the conflicts of laws provisions thereof.

     IN WITNESS WHEREOF, the Executive and the Company have executed this Agreement as of the date
and year first above written.

	 	 	 	 	 
	 	DEAN FOODS COMPANY

 	 
	 	/s/ Michelle P. Goolsby
 	 
	 	Name:  	Michelle P. Goolsby 	 
	 	Title:  	EVP & General Counsel 	 
	 
	 	 	 
	 	                                              /s/ Alan J. Bernon
 	 
	 	Alan Bernon 	 
	 	 	 
	 

8

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