UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 


 

FORM 8-K

 


 

CURRENT REPORT

PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported):

January 17, 2019 (January 17, 2019)

 


 

 

Dean Foods Company

(Exact name of registrant as specified in its charter)

 


 

Delaware

 

1-12755

 

75-2559681

(State or other Jurisdiction
of Incorporation)

 

(Commission
File Number)

 

(IRS Employer
Identification No.)

 

2711 North Haskell Avenue, Suite 3400

Dallas, Texas 75204

(Address of principal executive offices) (Zip code)

 

Registrant’s telephone number, including area code: (214) 303-3400

 


 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see  General Instruction A.2. below):

 

o                                     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o                                     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o                                     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o                                     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company  o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  o

 

 

 


 

Item 5.02                                            Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

 

On January 17, 2019, Dean Foods Company (the “ Company ”) announced that Jeffery S. Dawson has been appointed as the Senior Vice President, Chief Accounting Officer of the Company, effective January 28, 2019.

 

Mr. Dawson, age 48, previously served as Chief Accounting Officer, North America at Nokia Oy (previously Alcatel-Lucent SA), a global communications and technology company, from August 2009 until joining Dean Foods in January 2019. At Nokia Oy, his responsibilities included internal control over financial accounting and managing accounting and reporting for the North American and Latin regions. Prior to joining Nokia Oy, Mr. Dawson served as Group Controller (from 2005 to 2008) and then as Finance Director (from 2008 to 2009) of the Hardware and Home Improvement Division of The Black & Decker Corporation, a global manufacturer and marketer of power tools and accessories. Before joining Black & Decker, Mr. Dawson worked in various finance and accounting roles at Georgia-Pacific Corporation, a manufacturer of paper and related products, building materials and chemicals, the North America Power Tools division of Black & Decker, and Velocita Corporation, a broadband network provider.  From 1992 to 2000, he was employed as an Assurance and Advisory Manager for Deloitte & Touche LLP.

 

Pursuant to the terms of his offer letter, the Company has agreed to pay Mr. Dawson a base salary of $350,000 per year and he will be eligible to earn a target annual cash incentive payment of 50% of his base salary pursuant to the Company’s Short-Term Incentive Plan (“ STI Plan ”), subject to the achievement of certain financial targets and individual performance objectives. For 2019, Mr. Dawson’s target bonus under the Company’s STI Plan will not be prorated and is guaranteed at target. Mr. Dawson will also receive a one-time signing bonus of $200,000, payable in two installments, with the first payment ($140,000) to be made following completion of thirty days of his employment with the Company and the second payment ($60,000) on June 16, 2019. If Mr. Dawson voluntarily leaves the Company within 18 months following the payment of either installment of the signing bonus, he will be responsible for reimbursing the Company for the gross amount of such installment (prorated based on the number of full months worked during the 18 months following the payment of such installment).

 

Mr. Dawson will be eligible to receive grants under the Company’s Long-Term Incentive (“ LTI ”) Program, in such amounts as determined by the Company’s Board of Directors or the Compensation Committee. For the 2019 annual grant cycle, Mr. Dawson will be recommended for an LTI grant with a target value of $200,000. He is also eligible to participate in the Company’s Executive Deferred Compensation Plan, benefits plans, and will enter into a Change in Control Agreement with the Company in substantially the form of agreement filed as Exhibit 10.2 to this Current Report on Form 8-K, pursuant to which he will be entitled to certain benefits in the event of a change in control of the Company.

 

2


 

Item 9.01                                            Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit
Number

 

Description

 

 

 

10.1

 

Letter Agreement, entered into on January 7, 2019, between Dean Foods Company and Jeffery Dawson.

 

 

 

10.2

 

Form of Change in Control Agreement for Senior Vice Presidents

 

 

 

99.1

 

Dean Foods Company press release dated January 17, 2019

 

3


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

Date: January 17, 2019

DEAN FOODS COMPANY

 

 

 

By:

/s/ Russell F. Coleman

 

 

Russell F. Coleman

 

 

Executive Vice President, General Counsel,

 

 

Corporate Secretary & Government Affairs

 

4


Exhibit 10.1

 

 

January 4, 2019

 

Jeffery S. Dawson

11791 Coronado Trail

Frisco, TX  75033

 

Dear Jeff:

 

I am pleased to offer you the position of Senior Vice President — Chief Accountings Officer (Grade 99) for Dean Foods Company.  This position will report to Jody Macedonio, Executive Vice President — Chief Financial Officer, and will be based out of our Corporate Headquarters in Dallas, Texas.  We look forward to having you join our team on January 21, 2019.

 

Here are the specifics of your assignment:

 

Base Salary

 

You will be paid $14,583.33 on a semi-monthly basis, less payroll taxes and applicable withholdings.  Your salary will be reviewed annually (next in March 2020).

 

Signing Bonus

 

You will receive one-time signing bonuses totaling $ 200,000.00 .  These payments are subject to all regulatory and Dean Foods’ required payroll taxes and deductions, including 401(k) withholdings.  You will receive the one-time signing bonuses per the following payment schedule:

 

Payment Within 30 Days
After Date Listed Below

 

Amount

 

February 21, 2019

 

$

140,000.00

 

June 16, 2019

 

$

60,000.00

 

 

If you voluntarily leave Dean Foods within the 18 months following the payment of the February 21, 2019 signing bonus, you will be responsible for reimbursing Dean Foods for the full gross amount of the signing bonus (prorated based on the number of full months worked during the 18 months following the payment of the signing bonus), and you will not be eligible to receive any unpaid signing bonuses.

 

If you voluntarily leave Dean Foods within the 18 months following the payment of the June 16, 2019 signing bonus, you will be responsible for reimbursing Dean Foods for the full gross amount of the signing bonus (prorated based on the number of full months worked during the 18 months following the payment of the signing bonus).

 


 

Annual Incentive Opportunity

 

As a Grade 99 executive, you will be eligible to earn an annual incentive as a participant in the Dean Foods Corporate Short-Term Incentive (STI) Plan with a 2019 target amount equal to 50% of your annualized base salary, subject to the achievement of certain financial targets as well as your performance against certain individual objectives.  For the 2019 plan year, your STI payment will not be prorated and will be guaranteed at target ($175,000) or based on actual results, if better.   The STI payment will be calculated with your annual base salary as of 12/31.

 

Annual Long-Term Incentive Compensation

 

You will be eligible for consideration for future Long-Term Incentive (LTI) grants under the Dean Foods Long Term Incentive Program.  The exact amount and nature of any future long-term incentive awards will be determined by the Dean Foods Compensation Committee.  For the 2019 annual grant cycle (February / March 2019), you will be recommended for an LTI grant with a target value of $200,000.00.

 

Paid Time Off (PTO)

 

You will be granted twenty (20) days of PTO per year.  For 2019, your PTO will be prorated based on your actual start date.  Unused PTO is not carried forward from year to year unless required by state law.

 

Benefits Plan

 

You will soon be receiving an overview of the health and welfare benefits program. Your eligibility begins on the first day of the month following 60 calendar days of employment; please note that you must complete the health and welfare benefits enrollment process within 45 days of your hire date. Once hired, if you have questions regarding the health and welfare benefits programs or eligibility, please call the Dean Foods Benefits Service Center at 877-224-4909 or go online to www.deanfoods.mercerhrs.com.

 

Your eligibility for 401(k) benefits will begin on the first day of the month following 60 calendar days of employment.  You will receive information regarding these benefits approximately two weeks prior to your eligibility. For questions regarding 401(k) programs or eligibility, please call Fidelity Investments at 800-835-5095.

 

COBRA Support

 

Should you elect COBRA (health insurance) coverage from your previous employer, Dean Foods will reimburse you, grossed up for taxes, for your COBRA premiums (less your comparable Dean Foods contribution) until you become eligible for Dean Foods benefits (first of the month following 60 days of employment).

 

Executive Deferred Compensation Plan

 

You will be eligible to participate in the Dean Foods Executive Deferred Compensation Plan.  The plan provides eligible executives with the opportunity to defer compensation on a pre-tax basis.  You will receive general information and enrollment materials during the next enrollment cycle.

 

Supplemental Executive Retirement Plan

 

You will be covered by the Dean Foods Supplemental Executive Retirement Plan (SERP) under the plan rules.  The SERP is a non-qualified retirement plan that provides an annual Company contribution (currently 4% of eligible excess compensation) to executives whose eligible compensation exceeds the annual IRS-mandated limit for qualified retirement plans.  Company contributions are made in June/July for the prior year period.  You will receive additional information upon receiving your first plan contribution.

 

2


 

Executive Physical

 

You will be eligible for a Company-paid Executive Physical every calendar year with the Cooper Institute in Dallas, Texas.  To schedule your physical, call 972.560.3227 and reference Dean Foods.

 

Insider Trading

 

As a Senior Vice President, you will have access to sensitive business and financial information.  Accordingly, from time to time and in accordance with the company’s Insider Trading Policy, you will be prohibited from trading Dean Foods’ securities (or, in some circumstances, the securities of companies doing business with Dean Foods).

 

Change-In-Control Provisions

 

You will be provided a Change in Control agreement comparable to that currently provided to other Dean Foods Senior Vice Presidents.

 

New Hire Process

 

This offer of employment is contingent upon your submission to and successful completion of a background check and drug screen.  By signing this offer letter, you represent that there is no agreement or promise in place between you and any other company (for example, a non-competition agreement) that would prohibit you from working for Dean Foods.  You are also required to comply with the Dean Foods Code of Ethics as a condition of employment, and you understand and agree that you are not to use or disclose the confidential or proprietary information of any prior employer while performing your job with Dean Foods.  You also agree that to the extent you have any prohibitions on solicitation of customers or employees from your prior employer, you agree that you will honor those provisions for the allotted time in any relevant agreements.

 

Conclusion

 

Jeff, I am very excited about the opportunities at Dean Foods and very excited to have you be a part of our team. I am confident that with your experience, skills, vision and standards, you will make significant contributions to our company in the years to come.

 

Best regards,

 

Jody Macedonio

EVP, Chief Financial Officer

Dean Foods

 

Agreed and accepted:

 

 

 

/s/ Jeffery S. Dawson

 

Jeffery S. Dawson

 

 

 

1/7/2019

 

Date

 

 

 

cc.

David Bruns

 

 

Jose Motta

 

 

3


Exhibit 10.2

 

CHANGE IN CONTROL AGREEMENT

 

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

 

RECITALS

 

A.             The Board of Directors of the Company (the “ Board ”) has determined that the interests of the Company would 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 hereafter defined).

 

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

 

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, but in either case, without giving effect to any reduction therein occurring following a Change in Control.

 

“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 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:

 

(1)            (A) Any material reduction in the amount of the Executive’s Annual Pay, (B) any material reduction in the amount of Executive’s other incentive compensation

 

2


 

opportunities, or (C) any material 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 held by him or her immediately prior to the Change in Control, 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.

 

In order for a termination by the Executive to constitute a termination for Good Reason, (i) the Executive must notify the Company of the circumstances claimed to constitute Good Reason in writing not later than the 90th day after it has arisen or occurred, (ii) the Company must not have cured such circumstances within 30 days of receipt of the notice and (iii) the Executive must actually terminate employment on or before the 24 th  month anniversary of the Change in Control.

 

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

 

2.              Change in Control Termination Payment and 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 (2) 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, if calculable at the date of termination, plus (D) reimbursement for all unreimbursed expenses reasonably and necessarily incurred by the Executive (in accordance with Company policy) in connection with

 

3


 

the business of the Company prior to termination and since the beginning of the calendar year prior to the date of termination.  This amount shall be paid within five (5) business days of 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 two (2) times the Executive’s Annual Pay.  This amount shall be paid by the Company in accordance with Section 2(d) hereof.

 

(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, if any, and (B) two (2) times the amount of the aggregate matching contributions payable in respect of Executive’s contributions into the Executive’s 401(k) account for the last completed calendar year (which, for this purpose, shall be annualized if the Executive was not eligible to participate in such 401(k) plan for the entire calendar year).  This amount shall be paid within 60 days 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 to the Company of providing such coverage within 60 days after the date of the Executive’s termination of employment.  To the extent that Company’s group health or dental benefits are self-insured, then in addition to any other limitation provided here, the period of coverage provided by this Section 2(a) (iv) under the self-insured health or dental plan shall not exceed the period of time during which the Executive would be entitled to receive continuation coverage under a group health plan under section 4980B (COBRA) if the Executive had elected such coverage and paid such premiums.  To the extent that the immediately preceding sentence applies, the Company shall pay the Executive an amount equal to the cost of such COBRA coverage for a period equal to the excess of (i) 24 months minus (ii) the number of months of COBRA coverage initially available to the Executive, as determined in good faith by the Company, with such payment to be made within 60 days after the date of the Executive’s termination of employment.

 

(v)            The Company shall pay all costs and expenses, up to a maximum of $25,000, 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 but only with respect to services rendered prior to the last day of the second calendar year following the calendar year in which the Executive’s termination date occurs.  The Company shall pay such expenses within 90 days of the date of receipt of an invoice

 

4


 

for such services, but in no event later than the end of the third calendar year following the calendar year in which the Executive’s termination date occurs.

 

(b)            Accelerated Vesting .  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 (2) years after a Change in Control, all of the Executive’s unvested awards under the Company’s stock award plans shall automatically and immediately vest in full.

 

(c)            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 (but excluding retirement and similar benefits) under any employment or other agreement (other than any stock award or stock option agreements) with the Company or any of its Affiliates, the severance compensation payable under any such plan, program, arrangement or agreement shall be deemed to satisfy, to the extent of such payment, the obligations to the Executive in respect of Termination Pay.  Except as set forth in the immediately preceding sentence, 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 compensation and employee benefit plans.  Subject to subparagraph 1(c) of the definition of Good Reason, 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.

 

(d)            Mutual Release .  Termination Pay shall be conditioned upon the execution by the Executive within 60 days after the Executive’s termination of employment of a valid release prepared by the Company pursuant to which the Executive shall release the Company, to the maximum extent permitted by law, from any and all claims the Executive may have against the Company 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 “ 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 properly executed Release (which, if revocable, has not been revoked) by the Executive.  In addition, if the Executive shall timely deliver (and shall not have revoked) the Release, the Company shall simultaneously with the payment of Termination Pay execute a release of all claims it may have against the Executive arising out of the Executive’s employment, other than claims arising under this Agreement or otherwise relating to covenants and obligations of the Executive intended to continue following the Executive’s termination of employment.

 

5


 

3.              Excise Taxes.  Notwithstanding anything to the contrary contained in this Agreement, if the Company reasonably determines that the termination benefits payable to the Executive pursuant to this Agreement or any other agreement or arrangement between the Company and the Executive would constitute a “parachute payment” within the meaning of Section 280G of the Code and subject the Executive to an excise tax under Section 4999 of the Code, then the amount of the termination benefits payable hereunder shall be limited such that the Executive’s net payment received on an after-tax basis is $1 less than the amount at which the payment would be subject to the excise tax under Section 4999 of the Code.  Any reduction in the amount of the termination benefits payable hereunder shall be debited, in order, from the amounts payable under Section 2(a)(ii), then 2(a)(iii) and then 2(a)(iv).

 

4.              Certain Covenants by the Executive.

 

(a)            Delivery of Confidential Information to Executive .  Executive acknowledges that (i) the Company is engaged in a continuous program of research, development and production respecting its business (the foregoing, together with any other businesses in which the Company engages from the date hereof to the date of the termination of Executive’s employment with the Company and its Subsidiaries as the “Company Business”); (ii) Executive’s work for and position with the Company and/or one of its Subsidiaries has allowed Executive, and will continue to allow Executive, access to trade secrets of, and Confidential Information concerning, the Company; and (iii) the agreements and covenants contained in this Agreement are necessary and essential to protect the business, goodwill, and customer relationships that Company and its Subsidiaries have expended significant resources to develop.  Each of the parties hereby agrees and acknowledges that, on or following the date hereof, the Company has provided, or will provide, and the Executive has received, or will receive, one or more of the following: authorization to (x) access Confidential Information through a new computer password or by other means, (y) represent the Company in communications with customers and other third parties to promote the goodwill of the business in accordance with generally applicable Company policies or (z) access to participate in certain restricted access meetings, conferences or training relating to Executive’s position with the Company.  Executive understands and agrees that if Confidential Information were used in competition against the Company, the Company would experience serious harm and the competitor would have a unique advantage against the Company.

 

(b)            Covenant Not to Compete or Solicit .  In consideration of the payments to be made to the Executive pursuant to this Agreement and in consideration of the delivery of Confidential Information by the Company as described and in this Section 4, the Executive hereby agrees that, during the term of his or her employment with the Company or any of its Affiliates and for a period of two (2) years thereafter, he or she will not, directly or indirectly, individually or on behalf of any person or entity other than the Company or any of its Affiliates:

 

(i)             Become associated with (as defined below) any company or business (other than the Company or any Affiliate of the Company) engaged primarily in the manufacture,

 

6


 

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 Affiliates operates;

 

(ii)            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 Affiliates, 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 of its Affiliates; or

 

(iii)           Solicit, induce, recruit or encourage, either directly or indirectly, any employee of the Company or any of its Affiliates to leave his or her employment with the Company or any of its Affiliates, or employ or offer to employ any employee of the Company or any of its Affiliates.  For the purposes of this section, an employee of the Company or any of its Affiliates shall be deemed to be an employee of the Company or any such Affiliate while employed by the Company or such Affiliate 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 of its Affiliates during the term of the Executive’s employment with the Company or any such Affiliate.

 

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, the Executive is 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.  The provisions of this Section 4(a) are not intended to override, supercede, reduce, modify or affect in any manner any other non-competition or non-solicitation agreement between the Executive and the Company or any of its Affiliates.  Any such covenant or agreement shall remain in full force and effect in accordance with its terms.  The Company will be entitled to injunctive and other relief to prevent or enjoin any violation of the provisions of this Agreement.

 

(c)            Protection of Confidential Information . The Executive agrees that he or she will not at any time during or following his or her employment by the Company, without the Company’s prior written consent, divulge any Confidential Information to any other person or entity or use any Confidential Information for his or her own benefit.  Upon termination of employment, for any reason whatsoever, regardless of whether either party may be at fault, the

 

7


 

Executive will return to the Company all physical Confidential Information in the Executive’s possession.

 

(d)            Nondisclosure of Agreement .   The Executive agrees, at all times during his or her employment by the Company, not to disclose or discuss in any manner (whether to individuals inside or outside the Company), the existence or terms of, this Agreement without the prior written consent of the Company, except to the extent required by law.

 

(e)            Nondisparagement .  The Executive and the Company agree that, for so long as the Executive remains employed by the Company, and for a period of two (2) years following the termination of the Executive’s employment, neither the Executive nor the Company will make or authorize any public statement, whether orally or in writing, that disparages the other party hereto with respect to such other party’s business interests or practices; provided, that neither party shall be restricted in connection with statements made in context of any litigation, arbitration or similar proceeding involving the other party hereto.

 

(f)             Extent of Restrictions .  The Executive acknowledges that he or she has given careful consideration to the restraints imposed by this Section 4 and he or she fully agrees that the restrictions contained in this Section 4 correctly set forth the understanding of the parties at the time this Agreement is entered into, are reasonable and necessary to protect the legitimate interests of the Company, and that any violation will cause substantial injury to the Company.  In the event of any such violation, the Company shall be entitled, in addition to any other remedy, to preliminary or permanent injunctive relief.  If any court having jurisdiction shall find that any part of the restrictions set forth in this Agreement are unreasonable in any respect, it is the intent of the parties that the restrictions set forth herein shall not be terminated, but that this Agreement shall remain in full force and effect to the extent (as to time periods and other relevant factors) that the court shall find reasonable.

 

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

 

6.              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.

 

7.              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.

 

8.              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) 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.

 

8


 

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.

 

9.              Termination of Employment .  For all purposes under this Agreement, the Executive shall not have a “termination of employment” (and corollary terms) from the Company unless and until the Executive has a “separation from service” (as determined under Treas. Reg. Section 1.409A-1(h), as uniformly applied in accordance with such rules as shall be established by the Company) from time to time by the Company.

 

10.           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 as follows:

 

To the Executive:

 

To the Company:

 

DEAN FOODS COMPANY

2711 N. Haskell Ave., Suite 3400

Dallas, Texas 75204

Attn.:  General Counsel

Tel.: 214-303-3400

Fax: 214-303-3499

 

11.           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.

 

9


 

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

 

 

EXECUTIVE

 

 

 

 

 

Name:

 

Title:

 

 

 

 

 

DEAN FOODS COMPANY

 

 

 

 

 

Name:

Russell F. Coleman

 

Title:

Executive Vice President, General Counsel

 

10


Exhibit 99.1

 

 

DEAN FOODS NAMES JEFF DAWSON SVP,

CHIEF ACCOUNTING OFFICER

 

DALLAS, January 17, 2019 — Dean Foods Company (NYSE: DF) named Jeff Dawson as its Senior Vice President, Chief Accounting Officer, effective January 28, 2019.  In this capacity, Dawson will be responsible for enterprise-wide accounting operations, including internal and external financial reporting, and Sarbanes-Oxley compliance. Dawson will report to Jody Macedonio, Executive Vice President and Chief Financial Officer of the Company.

 

Dawson brings more than 25 years of accounting and finance experience to Dean Foods.  Most recently, Dawson served as Chief Accounting Officer, North America for Nokia Oy (formerly Alcatel-Lucent SA). Prior to this, he held senior financial positions with The Black & Decker Corporation and Georgia-Pacific Corporation. Dawson’s career also includes financial work with Velocita Corporation.  Dawson began his career with Deloitte & Touche after receiving a bachelor’s degree in Accounting from Texas A&M University.  He is a Certified Public Accountant.

 

“We’re thrilled to have Jeff join Dean Foods and bring his extensive experience leading accounting and finance organizations to our team,” said Jody Macedonio. “Jeff’s abilities as a financial leader, along with his broad expertise in financial reporting, internal controls and process improvements, will help us enhance our capabilities as we move forward.”

 

Dawson replaces Scott Vopni who left the Company to pursue other opportunities.

 

About Dean Foods

 

Dean Foods ®  is a leading food and beverage company and the largest processor and direct-to-store distributor of fluid milk and other dairy and dairy case products in the United States. Headquartered in Dallas, Texas, the Dean Foods portfolio includes DairyPure ® , the country’s first and largest fresh, white milk national brand, and TruMoo®, the leading national flavored milk brand, along with well-known regional dairy brands such as Alta Dena ® , Berkeley Farms ® , Country Fresh ® , Dean’s ® , Friendly’s ® , Garelick Farms ® , LAND O LAKES ® * milk and cultured products*, Lehigh Valley Dairy Farms ® , Mayfield ® , McArthur ® , Meadow Gold ® , Oak Farms ® ,

 


 

PET ® **, T.G. Lee ® , Tuscan ®  and more. Dean Foods also has a joint venture with Organic Valley®, distributing fresh organic products to local retailers. In all, Dean Foods has more than 50 local and regional dairy brands and private labels. Dean Foods also makes and distributes ice cream, cultured products, juices, teas, and bottled water. Almost 16,000 employees across the country work every day to make Dean Foods the most admired and trusted provider of wholesome, great-tasting dairy products at every occasion. For more information about Dean Foods and its brands, visit www.deanfoods.com.

 


*The LAND O LAKES brand is owned by Land O’Lakes, Inc. and is used by license.

**PET is a trademark used by license.

 

CONTACT: Investor Relations/External Communications, Suzanne Rosenberg, +1 214-303-3438. Media please contact +1 214-721-7766 or media@deanfoods.com.