Document:

exv10w5

 

Exhibit 10.5

FIFTH AMENDED AND RESTATED

1997 EMPLOYEE STOCK PURCHASE PLAN OF

DEAN FOODS COMPANY

I. INTRODUCTION

     The purpose of the Fifth Amended and Restated 1997 Employee Stock Purchase Plan (the “Plan”)
is to make available to eligible employees of Dean Foods Company (the “Company”), and certain
related companies a means of purchasing shares of Company Common Stock through voluntary, regular
payroll deductions. The Plan is not subject to the provisions of the Employee Retirement Income
Security Act of 1974, but is intended to qualify as an “Employee Stock Purchase Plan” under Section
423 of the Internal Revenue Code of 1986, as amended (the “Code”). The Plan shall be administered,
interpreted and construed in accordance with Section 423 of the Code.

     Participation in the Plan is entirely voluntary, and the Company makes no recommendations to
employees as to whether they should or should not participate.

II. DEFINITIONS

     2.1. DEFINITIONS. The following words and phrases shall have the following meanings:

     “ADMINISTRATOR” means the entity or person designated to act as Administrator of the Plan
pursuant to Section 6.1.

     “BASE COMPENSATION” means gross compensation for the relevant pay period, including overtime
pay, but excluding all bonuses, severance pay, any extraordinary pay, expense
allowances/reimbursements, moving expenses and income from restricted stock or stock option awards.
For these purposes, gross compensation includes any amount that would be included in taxable income
but for the fact that it was contributed to a qualified plan pursuant to an elective deferral under
Section 401(k) of the Code or contributed under a salary reduction agreement pursuant to Section
125 of the Code.

     “BOARD” means the Board of Directors of the Company.

     “BROKER” means a duly licensed securities dealer, broker or agent designated to act as Broker
of the Plan pursuant to Section 6.2.

     “COMMITTEE” means the Compensation Committee of the Board, which, to the extent required by
Rule 16b-3, shall consist entirely of non-employee directors (as defined in Rule 16b-3).

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     “COMPANY” means Dean Foods Company (formerly known as Suiza Foods Corporation).

     “COMMON STOCK” means Dean’s Common Stock, par value $.01 per share.

     “CODE” has the meaning set forth in Article I.

     “DEAN COMPANY” means the Company or any Related Company.

     “ELIGIBLE EMPLOYEE” means any employee of any Dean Company, excluding any employee (a) who has
been employed by a Dean Company for less than 60 days, (b) whose customary employment with the
employee’s Employer is 20 hours or less per week, (c) whose customary employment with the
employee’s Employer is not for more than five months in any calendar year, or (d) who immediately
after the grant of an option under this Plan to the employee would (in accordance with the
provisions of Sections 423 and 424(d) of the Code) own stock possessing 5% or more of the total
combined voting power or value of all classes of stock of the “employer corporation” or of its
“Parent Corporations” or “Subsidiary Corporations,” as defined in Section 424 of the Code.

     “EMPLOYER” means, with respect to any Participant, the Dean Company of which the Participant
is an Eligible Employee.

     “FAIR MARKET VALUE” means, with respect to a share of Common Stock, the last sales price (or
average of the quoted closing bid and asked prices if there is no closing sales price reported) of
a share of Common Stock as reported by the New York Stock Exchange (or by the principal national
stock exchange on which the Common Stock is then listed) on the date of valuation, if such date is
a business day, or the immediately preceding business day, if such date is not a business day.

     “INDEMNIFIED PERSON” has the meaning set forth in SECTION 9.2.

     “INITIAL OPTION PERIOD” means the Option Period commencing on the Plan Start Date and ending
on July 31, 1997.

     “1933 ACT” means the Securities Act of 1933, as amended.

     “OPTION” means an option granted pursuant to this Plan at the beginning of each Option Period
to acquire Common Stock.

     “OPTION EXERCISE DATE” means the last day of each Option Period.

     “OPTION PERIOD” means each calendar month during the period beginning on the Plan Start Date
and ending on June 30, 2007, unless the Plan is terminated earlier.

     “PAYROLL DEDUCTION ACCOUNT” means, with respect to each Participant, the amounts credited to
the Participant’s account from the payroll deductions made by the

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Participant under this Plan, less any amounts withdrawn from such account (for payment of
Common Stock, payment to the Participant, payment of withholding and other taxes or amounts or
payment of other obligations or amounts).

     “PARTICIPANT” has the meaning set forth in SECTION 3.2.

     “PLAN” means the Fifth Amended and Restated 1997 Employee Stock Purchase Plan of Dean Foods
Company as the same may be amended from time to time.

     “PLAN START DATE” means July 1, 1997.

     “RELATED COMPANY” means any present or future company which would be a “subsidiary
corporation” or “parent corporation” of the Company as such terms are defined in Section 424 of the
Code.

     “RULE 16B-3” means Rule 16b-3 under the 1933 Act.

     “STOCK ACCOUNT” means, with respect to each Participant, the number of shares of Common Stock
credited under this Plan to the Participant’s account. Dividends with respect to shares of Common
Stock credited to a Participant’s Stock Account shall be paid to the Participant and shall not be
held in either the Participant’s Stock Account or Payroll Deduction Account.

III. PARTICIPATION

     3.1. ELIGIBLE EMPLOYEES. Subject to ARTICLE VIII, all Eligible Employees as of the beginning
of each Option Period may participate in the Plan for such Option Period at their election.

     3.2. PARTICIPATION PROCEDURES. If an Eligible Employee does not otherwise have an election
to become a Participant in effect, each Eligible Employee choosing to participate in the Plan
(herein called a “Participant”) during an Option Period shall enroll as a Participant in
the Plan by filing with the Participant’s Employer, according to the written instructions issued by
the Employer and/or the Administrator, a completed enrollment form (authorized by the
Administrator) no later than 15 days prior to the beginning of any Option Period (including the
Initial Option Period).

     3.3. EMPLOYEE CONTRIBUTIONS. Subject to other limitations provided in this Plan, a
Participant may contribute under the Plan a minimum of one percent (1%) and a maximum of fifteen
percent (15%) of the Participant’s Base Compensation. Contributions may be made only through
regular payroll deductions, net of any tax or other withholdings.

     An enrollment form and payroll deduction authorization will remain effective for each Option
Period until properly terminated by a Participant, according to the written instructions issued by
the Employer and/or the Administrator, or until the Participant is no longer eligible to

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participate in the Plan. The payroll deduction authorization may be reduced or terminated at
any time by the Participant’s request submitted to the Participant’s Employer, according to the
written instructions issued by the Employer and/or the Administrator,; provided, however, that a
Participant may not recommence or increase payroll deductions until the beginning of the next
Option Period, nor may a Participant make more than one revision of the Participant’s payroll
deduction authorization in any Option Period. Termination of deductions shall constitute
withdrawal from the Plan as set forth in Section 3.5 and cancellation of any outstanding Options of
the Participant. Reduction or termination of deductions will become effective as soon as
practicable after a Participant’s request is received by the Participant’s Employer, according to
the written instructions issued by the Employer and/or the Administrator.

     3.4. PARTICIPANT RESTRICTION. Notwithstanding any provisions of this Plan to the contrary,
no Participant will be granted an option under this Plan which would permit the Participant’s
rights to purchase shares of stock under all employee stock purchase plans of the Company and
“parent corporations” and “subsidiary corporations” (within the meaning of Section 424 of the Code)
to accrue at a rate which exceeds $25,000 of the Fair Market Value of such stock (determined at the
time each Option is “Granted” (within the meaning of Code Section 423(b)(8)) for each calendar year
during which any Option granted to such Participant is outstanding at any time, as provided in
Sections 423 and 424(d) of the Code.

     3.5. WITHDRAWAL FROM PLAN. A Participant may withdraw from the Plan (thereby canceling all
Options then in existence) at any time by giving notice to the Participant’s Employer and to the
Administrator, according to the written instructions issued by the Employer and/or the
Administrator. The Administrator shall, as soon as practicable after receiving written notice of a
Participant’s withdrawal from the Plan, cause to be delivered to the Participant a check or payroll
credit representing any funds held to the credit of the Participant’s Payroll Deduction Account. A
Participant who has withdrawn from the Plan may thereafter reenter the Plan by following the
procedure described under Section 3.2, but not sooner than the beginning of the next Option Period
after the Participant has withdrawn from participation.

     3.6. TERMINATION OF PARTICIPANT’S EMPLOYMENT. Upon termination of a Participant’s employment
from the Dean Companies for any reason, including death or disability, the Participant’s Payroll
Deduction Account in the Plan shall be closed, and all existing Options held by the Participant
shall be canceled. The Administrator shall, as soon as practicable after termination of a
Participant’s employment, cause to be delivered to the Participant or the Participant’s estate or
the Participant’s designated beneficiary as provided below, as applicable, a check representing any
funds held to the credit of the Participant’s Payroll Deduction Account. In the event of a
Participant’s death, the Participant’s Payroll Deduction Account shall be delivered and paid to the
estate of such Participant or to a beneficiary designated by the Participant in writing on a form
approved by the Administrator.

IV. OPTIONS TO PURCHASE STOCK; MAXIMUM SHARES AVAILABLE

     4.1. MAXIMUM SHARES. The maximum number of shares which shall be issued under the Plan,
subject to adjustment upon changes in Common Stock under Article VII, shall be 1,500,000 shares.

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     4.2. OFFERINGS. Subject to Article VIII, the Company shall make consecutive offerings on the
beginning of each Option Period to Participants to purchase Common Stock as long as shares
authorized remain available for issuance. Each offering as of the beginning of each Option Period
shall be the total number of shares authorized under Section 4.1, less the number of shares issued
by purchases of Common Stock under Section 5.5 in prior Option Periods.

V. PURCHASE OF STOCK PURSUANT TO OPTIONS

     5.1. PAYROLL DEDUCTION ACCOUNTS. Each Dean Company will deduct from its Participants’
paychecks such amounts as have been authorized by the Participants and, promptly after the end of
each month, remit to the Administrator all amounts so deducted during the month, together with a
report showing each Participant and the amounts allocable to the Payroll Deduction Account of each
Participant. The Administrator shall credit each Participant’s Payroll Deduction Account with the
amount of such deposits, and shall reduce the Participant’s Payroll Deduction Account by the
purchase price of all Common Stock purchased by the Participant under this Plan and by any other
withdrawals from the Participant’s Payroll Deduction Account. The Plan, through its Administrator,
shall purchase for the Stock Accounts of the Participants shares of Common Stock with funds
received under the Plan.

     5.2. STOCK ACCOUNTS. The Broker will open and maintain a Stock Account in the name of each
Participant to which will be credited all shares of Common Stock purchased for the Participant’s
benefit. All shares held under the Plan will be registered in the name of the Plan or the Broker,
and will remain so registered until the shares are delivered to the Participant. The Participant
shall have the right to sell all or any part of the shares held in the Participant’s Stock Account,
pursuant to procedures established by the Broker.

     5.3. GRANT OF OPTIONS AND PURCHASE. Subject to ARTICLE VIII, each person who is a
Participant on the first day of an Option Period will as of the first day of such Option Period be
granted an Option for such period. Such Option will be for the number of shares of Common Stock to
be determined by dividing (a) the balance in the Participant’s Payroll Deduction Account on the
Option Exercise Date, by (b) the purchase price per share of Common Stock determined under Section
5.4 below. The number of shares of Common Stock receivable by each Participant upon exercise of an
Option for an Option Period shall be reduced, on a substantially proportionate basis, in the event
that the number of shares then available under the Plan is otherwise insufficient.

     5.4. PURCHASE PRICE. On Option Exercise Dates occurring prior to January 1, 2001, the
purchase price of each share of Common Stock purchased pursuant to the exercise of an Option shall
be 0.95 multiplied by the Fair Market Value of the Common Stock on the last day of the Option
Period. On Option Exercise Dates occurring after January 1, 2001 and prior to January 1, 2006, the
purchase price of each share of Common Stock purchased pursuant to the exercise of an Option shall
be 0.85 multiplied by the Fair Market Value of the Common Stock on the last day of the Option
Period. On Option Exercise Dates occurring on or after January 1, 2006, the purchase price of each
share of Common Stock purchased pursuant to the exercise of

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an Option shall be 0.95 multiplied by the Fair Market Value of the Common Stock on the last
day of the Option Period.

     5.5. EXERCISE OF OPTIONS. Each person who is a Participant in the Plan on each Option
Exercise Date will be deemed to have exercised on that Option Exercise Date the Option granted to
the Participant for that Option Period. Upon such exercise, the balance of the Participant’s
Payroll Deduction Account shall be applied to the purchase of the number of shares of Common Stock
determined under Section 5.3, and the amount of shares of Common Stock purchased shall be credited
to the Participant’s Stock Account. In the event that the balance of the Participant’s Payroll
Deduction Account following an Option Period is in excess of the total purchase price of the shares
of Common Stock so purchased, the balance of the Payroll Deduction Account shall be returned to the
Participant.

     Notwithstanding anything herein to the contrary, the Company’s obligation to sell and deliver
shares of Common Stock under the Plan is subject to the approval required of any governmental
authority in connection with the authorization, issuance, sale or transfer of such shares, to any
requirements of the New York Stock Exchange or any national securities exchange applicable thereto,
and to compliance by the Company with other applicable legal requirements in effect from time to
time, including without limitation any applicable tax withholding requirements.

     5.6. NO ASSIGNMENT OF PARTICIPANT’S INTEREST IN PLAN. A Participant may not assign, sell,
transfer, pledge, hypothecate or alienate any Options or other interests in or rights under the
Plan. Options under the Plan are exercisable by a Participant during the Participant’s lifetime
only by the Participant. All employees of all Dean Companies shall have the same rights and
privileges under the Plan.

     5.7. VESTING. Each Participant will immediately acquire full ownership of all shares of
Common Stock at the time such shares are credited to the Participant’s Stock Account.

     5.8. DIVIDENDS, SPLITS AND DISTRIBUTIONS. Any stock dividends or stock splits in respect of
shares held in the Participant’s Stock Account will be credited to the Participant’s account
automatically. Any distributions to holders of Common Stock or other securities or rights to
subscribe for additional shares of Common Stock will be handled in the same manner as a cash
dividend, unless the Participant instructs the Administrator to the contrary.

     5.9. VOTING RIGHTS. The Broker will deliver to each Participant as promptly as practicable,
by mail or otherwise, all notices of meetings, proxy statements and other material distributed by
the Company to its stockholders. The full shares of Common Stock in each Participant’s Stock
Account will be voted in accordance with the Participant’s signed proxy instructions duly delivered
to the Broker or pursuant to any other method of voting available to holders of Common Stock. There
will be no charge to the Participant for the Administrator’s retention or delivery of stock
certificates, or in connection with notices, proxies or other such material.

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     5.10. NO INTEREST TO BE PAID. No interest will be paid to or credited to the Payroll
Deduction Accounts or Stock Accounts of the Participants.

VI. ADMINISTRATION OF PLAN

     6.1. THE ADMINISTRATOR AND THE COMMITTEE. To carry out the purposes of the Plan, the
Committee shall appoint an Administrator. The Administrator may be any company or individual that
the Committee deems qualified, including the Company. The Administrator shall be responsible for
the implementation of the Plan, including allocation of funds to the Payroll Deduction Accounts and
distribution of purchased Common Stock to the Stock Accounts, and keeping adequate and accurate
records of such activities for the Participants.

     The Committee shall be entitled to adopt and apply guidelines and procedures consistent with
the purposes of the Plan. In order to effectuate the purposes of the Plan, the Committee shall have
the discretionary authority to construe and interpret the Plan, to supply any omissions therein, to
reconcile and correct any errors or inconsistencies, to decide any questions in the administration
and application of the Plan, and to make equitable adjustments for any mistakes or errors made in
the administration of the Plan, and all such actions or determinations made by the Committee, and
the application of rules and regulations to a particular case or issue by the Committee, in good
faith, shall not be subject to review by anyone, but shall be final, binding and conclusive on all
persons ever interested hereunder.

     6.2. BROKER. The Administrator may, in its discretion, with the consent and approval of the
Committee, appoint a Broker. The Broker may be any company or individual that the Committee deems
qualified; provided, however, that the Broker shall be a licensed security dealer, broker, or agent
authorized to make purchases and sales of Common Stock.

     6.3. REPORTING TO PARTICIPANTS. The Broker will make available to each Participant an
accounting of the Participant’s Stock Account.

VII. ADJUSTMENT UPON CHANGES IN COMMON STOCK

     7.1. CHANGES IN COMMON STOCK. If any change is made in the Common Stock (through merger,
consolidation, reorganization, recapitalization, stock dividend, dividend in property other than
cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in
corporate structure or otherwise), the Administrator will make appropriate adjustments in the
number of shares and price per share of Common Stock subject to the Plan or to any Option granted
under the Plan.

     7.2. DISSOLUTION; MERGER; CAPITAL REORGANIZATION; ETC. In the event of (i) a dissolution or
liquidation of the Company; (ii) a merger or consolidation in which the Company is not the
surviving corporation, or a reverse merger in which the Company is the surviving corporation but
the shares of Common Stock by virtue of the merger are converted into

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other property, whether in the form of securities, cash or otherwise; or (iii) any other
capital reorganization in which more than 50 percent of the shares of Common Stock entitled to vote
are exchanged, the Plan shall terminate, unless another corporation assumes the responsibility of
continuing the operation of the Plan or the Committee determines in its discretion that the Plan
shall nevertheless continue in full force and effect. If the Committee elects to terminate the
Plan, the Administrator shall send to each Participant cash in an amount equal to the funds held to
the credit of such Participant’s Payroll Deduction Account.

     7.3. COMPANY’S RIGHT TO RESTRUCTURE, ETC. The grant of any right to a Participant pursuant to
the Plan shall not affect in any way the right or power of the Company to make adjustments,
reclassifications, reorganizations or changes of its capital or business structure or to merge or
to consolidate or to dissolve, liquidate or sell, or transfer all or any part of its business or
assets.

VIII. AMENDMENT; TERMINATION OF PLAN

     8.1. AMENDMENT. The Company, acting through the Committee, reserves the right to amend or
terminate the Plan at any time or times; provided, however, any amendment that would require the
consent of stockholders under applicable law, rule or regulation (including, without limitation,
the Code, the Exchange Act or any self regulatory organization such as a national securities
exchange), will not be made unless such stockholders’ consent is obtained.

     8.2. TERMINATION. In addition, the Plan shall terminate automatically on the tenth
anniversary of the Plan Start Date, or on any Option Exercise Date when Participants become
entitled to purchase a number of shares greater than the number of reserved shares remaining
available for purchase, subject to the allocation of remaining shares pursuant to the last sentence
of Section 5.3. Upon termination of the Plan, all amounts held in the Payroll Deduction Accounts
shall, to the extent not used to purchase shares of Common Stock, be refunded to the Participants
entitled thereto.

IX. MISCELLANEOUS

     9.1. EXPENSES OF PLAN. No fees or commissions will be charged for the purchase of Common
Stock by Participants under the Plan. The Broker’s brokerage commissions incurred in connection
with sales of Common Stock by Participants or other transactions in Participants’ Stock Accounts
will be paid by the Participants. If the Company is acting as Administrator, no expenses of
administration will be charged to the Participants.

     9.2. INDEMNIFICATION. In the event and to the extent not insured against under any contract
of insurance with an insurance company, the Company shall indemnify and hold harmless each
“Indemnified Person,” as defined below, against any and all claims, demands, suits, proceedings,
losses, damages, interest, penalties, expenses (specifically including, but not limited to, counsel
fees to the extent approved by the Board or otherwise provided by law, court costs and other
reasonable expenses of litigation), and liability of every kind, including amounts

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paid in settlement, with the approval of the Board, arising from any action or cause of action
related to the Indemnified Person’s act or acts or failure to act. Such indemnity shall apply
regardless of whether such claims, demands, suits, proceedings, losses, damages, interest,
penalties, expenses and liability arise in whole or in part from (a) the negligence or other fault
of the Indemnified Person, or (b) from the imposition on such Indemnified Person of any civil
penalties or excise taxes pursuant to the Code or any other applicable laws; except when the same
is judicially determined to be due to gross negligence, fraud, recklessness, or willful or
intentional misconduct of such Indemnified Person. “Indemnified Person” shall mean each member of
the Board, the Administrator, each member of the Committee and each other employee of any Dean
Company who is allocated fiduciary responsibility hereunder.

     9.3. NO CONTRACT OF EMPLOYMENT INTENDED. The granting of any rights to an Eligible Employee
under this Plan shall not constitute an agreement or understanding, express or implied, on the part
of any Dean Company, to employ such Eligible Employee for any specified period.

     9.4. GOVERNING LAW. The construction, validity and operation of this Plan shall be governed
by the laws of the State of Delaware.

     9.5. SEVERABILITY OF PROVISIONS. If any provision of this Plan is determined to be invalid,
illegal or unenforceable, such invalidity, illegality or unenforcability shall not affect the
remaining provisions of this Plan, but such invalid, illegal or unenforceable provisions shall be
fully severable, and the Plan shall be construed and enforced as if such provision had never been
inserted herein.

     9.6. NO LIABILITY OF THE COMPANY. Neither the Company, its directors, officers or employees
of the Committee, nor any Related Corporation which is in existence or hereafter comes into
existence, shall be liable to any Participant or other person if it is determined for any reason by
the Internal Revenue Service or any court having jurisdiction that the Plan does not qualify under
Section 423 of the Code.

     The Company has caused this Plan to be adopted effective as of the Plan Start Date.

Last Amended and

Restated Effective: December 31, 2005

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Exhibit 10.6

DEAN FOODS COMPANY

EXECUTIVE INCENTIVE COMPENSATION PLAN

	 	 	 
	Purpose:

	 	To (i) align executive compensation
with the long-term interests of our
shareholders, (ii) motivate
executive management to create
sustained shareholder value, and
(iii) ensure retention of key
executive personnel by ensuring that
compensation remains competitive.
	 
	 	 
	Participants:

	 	The executive officers of Dean Foods
Company, including the Chief
Executive Officer (“CEO”), the Chief
Financial Officer, the Chief
Administrative Officer and General
Counsel and the Senior Vice
President — Corporate Development of
Dean Foods Company (“Dean Foods”),
the President of the Dean Dairy
Group, and the President of
WhiteWave Foods (the
“Participants”).
	 
	 	 
	Target Bonus:

	 	Each Participant will have a target
bonus equal to a specified
percentage of his or her base salary
that could range from approximately
50% to 150% of his or her base
salary, as determined by the
Compensation Committee of the Board
of Directors of Dean Foods (the
“Committee”) in its sole discretion
(the “Target Bonus”). The amount of
the Target Bonus to be paid will
range from 0% to 200% of the Target
Bonus, depending on the level of
achievement of the performance
criteria established by the
Committee.
	 
	 	 
	Corporate Participant Bonus Criteria:

	 	Each executive officer of Dean Foods
who is a Participant in the Plan,
other than the Presidents of Dean
Dairy Group and WhiteWave Foods,
(the “Corporate Participants”) will
be eligible to receive incentive
compensation based on Dean Foods’
achievement of its (i) adjusted
earnings per share target for each
calendar year and (ii) targeted
growth in adjusted earnings per
share over the prior year, in each
case as determined each year and as
may be modified from time to time by
the Committee.
	 
	 	 
	 

	 	EPS Target Component.
35%1 of a Corporate
Participant’s Target Bonus will be
determined based upon the percentage
that Dean Foods’ fully diluted
earnings per share for the year,
before non-recurring items and
restructuring charges (“Adjusted EPS”) bears to the Adjusted EPS
target (the “EPS Target Component”)
and the payout percentages
determined by the Committee. No
bonuses will be paid based on the
EPS Target Component unless Adjusted
EPS exceeds a specified minimum
percentage of the Adjusted EPS
target, which percentage shall be
determined annually by the
Committee.
	 
	 	 
	 

	 	EPS Growth Component.
35%1 of a Corporate
Participant’s Target Bonus will be
determined based on growth in
Adjusted EPS over the prior year’s
Adjusted EPS (the “EPS Growth Component”) and the payout
percentages determined by the
Committee. No bonuses will be paid
based on the EPS Growth Component
unless the growth in Adjusted EPS
equals or exceeds the growth target
established by the Committee.

 

			
	1	 	40% for CEO

 

 

	 	 	 
	 

	 	Individual Component. The remaining
30%2 of the Target Bonus
for each Corporate Participant
(other than the CEO) will be
determined based on the Individual
Component described below.
	 
	 	 
	WhiteWave Foods Criteria:

	 	70% of the Target Bonus for the
President of WhiteWave Foods will be
based on the business unit achieving
specified targets for (i) net sales,
(ii) operating margin and (iii)
operating income
 for the year, as determined
annually by the Committee.
	 
	 	 
	 

	 	Performance against the specified
targets will be determined by
calculating the percentage that
actual performance in each category
bears to the applicable target and
averaging the three percentages (the
“Average Performance Percentage”)
and applying the payout percentages
determined by the Committee.
	 
	 	 
	 

	 	The remaining 30% of the Target
Bonus for each WhiteWave Participant
will be based on the Individual
Component described below.
	 
	 	 
	Dairy Group Criteria:

	 	35% of the Target Bonus for the
President of the Dairy Group (the
“Growth Component”) will be based on
the growth in operating income for
the Dairy Group for the year over
operating income for the preceding
year, as the same may be adjusted by
the Compensation Committee (the
“Baseline Operating Income”), (i)
35% of his Target Bonus (the
“Operating Income Component”) will
be based on the Dairy Group
achieving its annual operating
income target as determined annually
by the Committee (the “Operating Income Target”) and (ii) the
remaining 30% of his Target Bonus
will be based on the Individual
Component described below. No
portion of the Growth Component of
the Target Bonus will be paid unless
actual operating income exceeds
minimum specified growth over the
prior year’s Baseline Operating
Income as determined annually by the
Committee.
	 
	 	 
	 

	 	Any operating income resulting from
acquisitions made during the year
(or directly related costs) shall be
excluded from the calculation of
annual operating income for purposes
of both the Growth Component and the
Operating Income Component.
	 
	 	 
	Individual Component:

	 	A portion (30%) of the Target Bonus
of each Participant (20% for the
CEO) will be based on his or her
attainment of individual performance
objectives established or approved
by the Committee and generally
relating to (i) promoting and
instituting a culture of compliance
with the Company’s Code of Ethics
and other policies, and (ii) the
achievement of financial, operating
or strategic goals established from
time to time, with the balance of
the Target Bonus (70%) (80% for the
CEO) being determined based on the
other components applicable to such
Participant. In the event the
individual’s business unit or
company results exceed targets, the
individual payout percentage will be
increased (but not decreased) by the
applicable payout

 

			
	2	 	20% for the CEO.

-2-

 

	 	 	 
	 

	 	percentage for such company or business unit.
	 
	 	 
	Adjustment of Targets:

	 	Upon the recommendation of the CEO,
the Committee may (but has no
obligation to) adjust any of the
bonus targets upon the occurrence of
extraordinary events or
circumstances. Significant
acquisitions or dispositions of
assets or companies or issuances or
repurchases of common stock or other
equity interests may, at the
Committee’s discretion, result in an
adjustment to a target.
	 
	 	 
	Eligibility:

	 	A Participant must be a full time
employee as of the date payments
under the Plan are made to be
eligible to receive a bonus. Bonus
payments are typically made within
60 days of the end of the applicable
measurement year.
	 
	 	 
	Special Awards:

	 	Upon recommendation of the CEO, the
Committee may make special awards to
Participants in the Plan in
recognition of extraordinary
achievement which has created or
will create long-term value for Dean
Foods and its shareholders. These
awards may take the form of
restricted stock, stock options or
additional cash compensation.

-3-

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