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exh102.htm

Exhibit 10.2

THE HERSHEY COMPANY

TERMS AND CONDITIONS OF NONQUALIFIED STOCK OPTION AWARDS

UNDER THE EQUITY AND INCENTIVE COMPENSATION PLAN

1.           The Optionee, by accepting the option to purchase shares of the Company's Common Stock (the "Options") awarded to him/her on _____________ (the “Award Date”), accepts and agrees to these terms and conditions and the terms and conditions of the Equity and Incentive Compensation Plan (the "Plan"), which Plan is incorporated herein by reference.

2.           The Options shall not be exercisable until vested.  The Options shall be exercisable during the period ___________ through ___________ (the “Exercise Period”), subject to the vesting schedule described in the next sentence and the provisions regarding termination set forth in paragraphs 3 and 5 below and in the Plan.  Of the total Options awarded to the Optionee on the Award Date (“Total Award”), twenty-five percent (25%) of the Total Award will become vested on the first anniversary of the Award Date; an additional twenty-five percent (25%) of the Total Award will become vested on the second anniversary of the Award Date; an additional twenty-five percent (25%) of the Total Award will become vested on the third anniversary of the Award Date; and an additional and final twenty-five percent (25%) of the Total Award will become vested on the fourth anniversary of the Award Date.  During the Exercise Period, vested Options may be exercised in whole or in part and on one or more than one occasion.  The purchase price of any shares as to which the Options shall be exercised shall be paid in full at the time of such exercise.

3.           In the event Optionee's employment with the Company is terminated for any reason other than the occurrence of an event described in paragraph 5 below, or a “Change in Control” as described in this paragraph 3, the Options shall terminate immediately upon termination of Optionee’s employment and may not be exercised after such termination of employment unless: (i) Optionee is eligible to receive severance benefits pursuant to a Company-sponsored severance benefits plan or an employment or severance or similar agreement to which Optionee is a party upon termination of employment, in which case vesting, exercise, and payment of the Options will be in accordance with the terms of such Company-sponsored severance benefits plan or such agreement; or (ii) Optionee is an employee of the Company in a country other than the United States and has certain rights in the vesting, exercise and payment of Options upon termination of employment under the laws of the country in which Optionee is employed, in which case vesting, exercise and payment of the Options will be in accordance with the terms of a severance agreement entered into between the Company and Optionee that complies with the laws of the country in which Optionee is employed.

In the event of a Change in Control (as that term is defined in the Plan), to the extent the Options are assumed or replaced, or remain outstanding, such that the award as assumed, replaced or continued is a Replacement Award (as that term is defined in the Plan), the occurrence of the Change in Control shall not affect the vesting or exercisability of the Options which shall constitute a Replaced Award as defined in the Plan. However, if within two (2) years following the Change in Control, Optionee’s employment is terminated by the Company for any reason other than for Cause (as that term is defined in the Plan), by the Optionee for Good Reason (as that term is defined in the Plan), or due to Optionee's death or total disability, the Replacement Award shall become fully vested and exercisable upon such termination.

Notwithstanding the foregoing, if the Committee (as that term is defined in paragraph 7 below) determines that the Options are not replaced in connection with a Change in Control with awards meeting the requirements for Replacement Awards, the Options shall become fully vested and exercisable upon the occurrence of the Change in Control, notwithstanding the vesting schedule set forth in paragraph 2 above.

4.           If  Optionee retires (as that term is defined in paragraph 5 below) after the Award Date and during the calendar year in which the Award Date occurs, the Total Award will be reduced on a pro-rata basis to reflect Optionee’s period of employment during the calendar year in which the Award Date occurs (the “Adjusted Award”).  The Adjusted Award shall equal the Total Award multiplied by a fraction, the numerator of which equals the number of calendar months during such year preceding the month during which Optionee’s retirement date occurs and the denominator of which equals 12; provided, however, that any fractional share resulting from such calculation shall be eliminated by rounding the Adjusted Award down to the nearest whole

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number.

The foregoing provisions of this paragraph 4 notwithstanding, if a Change in Control occurs following the Award Date, and Optionee retires after the occurrence of the Change in Control but during the calendar year in which the Award Date occurs, the Total Award shall not be reduced as aforesaid.

5.           In the event Optionee retires, or his or her employment terminates due to death or total disability, the Options shall become fully vested, subject to the provisions regarding possible adjustment of the Total Award to an Adjusted Award as provided in paragraph 4, and Optionee (or his/her estate in the case of death) shall have three (3) years from the earliest date of death or total disability, or five (5) years from the date of retirement, to exercise his/her Options, provided such post-termination exercise period cannot extend beyond the last day of the Exercise Period set forth in Paragraph 2 above, the date the Options expire.  For purposes of this award, Optionee shall be deemed to have retired if his or her employment terminates for any reason other than for “Cause” (as that term is defined in the Plan) on or after the date the Optionee has attained both his or her 55th birthday and been employed by the Company for at least five (5) years.

6.           The Options shall be exercisable through the broker on record selected by the Company to provide services for stock options, or by such other method as shall be established by the Company from time to time.

7.           The Compensation and Executive Organization Committee of the Board of Directors (the “Committee”), or any successor committee performing similar functions, may from time to time impose certain limitations or restrictions on the exercise of the Options by employees who are subject to employee minimum stock ownership requirements established by the Committee.  Such limitations, restrictions and minimum stock ownership requirements are subject to change at the discretion of the Committee.

8.           Except to the extent that the Plan permits exercise in limited circumstances by persons other than the Optionee, the Options may not be assigned, transferred, pledged or hypothecated in any way whether by operation of law or otherwise, and shall not be subject to execution, attachment or similar process.  Any attempted assignment, transfer, pledge, hypothecation or other disposition of the Options contrary to the provisions hereof or of the Plan, and the levy of any execution, attachment or similar process upon the Options, shall be null and void and without effect and shall cause the Options to terminate.

9.           By accepting the Options awarded herewith, Optionee acknowledges and agrees that the Options are awarded under and governed by the terms and conditions set forth in this document and in the Plan, and the Executive Confidentiality and Restrictive Covenant Agreement (or similar or successor agreement), if any, applicable to Optionee.  Any dispute or disagreement which shall arise under, as a result of, or in any way relate to the interpretation, construction or administration of the Plan or the Options awarded thereunder shall be determined in all cases and for all purposes by the Committee, or any successor committee, and any such determination shall be final, binding and conclusive for all purposes.

10.           In selling the Company's Common Stock (the "Shares") upon Optionee's exercise of his/her Options, the Company is fulfilling in full its contractual obligation to Optionee by making such transfer, and the Company shall have no further obligations or duties with respect thereto and is discharged and released from the same.  The Company makes no representations to Optionee regarding the market price of the Shares or the information which is available to Optionee regarding the Shares of the Company.

11.           The Optionee may be restricted by the Company in its sole judgment from exercising any of the Options to the extent necessary to comply with insider trading or other provisions of federal or state securities laws.

12.           The award of Options and all terms and conditions related thereto, including those of the Plan, shall be governed by the laws of the Commonwealth of Pennsylvania.  The Plan shall control in the event there is a conflict between the Plan and these terms and conditions.

Page  2 of  2TSO10K2011-EX.10.10

Exhibit 10.10
[**CONFIDENTIAL TREATMENT REQUESTED PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934. SPECIFIC TERMS HAVE BEEN REDACTED AND ARE MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS.  THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.**] 

FIRST AMENDMENT TO MASTER TERMINALLING AGREEMENT

FIRST AMENDMENT TO MASTER TERMINALLING AGREEMENT (this “First Amendment) is made effective as of December 1, 2011 (the “Effective Date”), between Tesoro Logistics Operations LLC (“TLO”) and Tesoro Refining and Marketing Company (“TRMC”).  
AND WHEREAS TLO and TRMC are parties to that Master Terminalling Services Agreement (the “MTA”), effective April 26, 2011 (the “TSA”), under which TLO stores and throughputs refined petroleum products for TRMC at various terminals operated by TLO;
WHEREAS The parties wish to amend the MTA to consolidate the listing of all fees into Schedule B and to include in Schedule B additional Ancillary Services to be provided at certain Terminals;
NOW THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth TLO and TRMC agree as follows:  
1.    Paragraphs (b) and (c) of Section 4, Minimum Throughput Commitment, are amended to read as follows:
“(b)    Tesoro shall pay a per-barrel fee for the volumes it throughputs at the Terminals in accordance with Schedule B attached hereto.  In addition, if the Parties mutually determine to utilize dedicated storage tanks at any time during the Term of this Agreement, Tesoro shall pay a fee for dedicated storage capacity at the Terminals, which fee shall be mutually determined at such time and set forth in a Schedule to this Agreement.
(c)    Tesoro may throughput volumes in excess of its Minimum Throughput Commitment, up to the then-available capacity of each Terminal, net of any third-party commitments, as determined by TLO at any time.  Allocation of any excess capacity shall be in accordance with current practices, or as otherwise may be agreed among the Parties from time to time.  Any excess throughput volumes shall be subject to the applicable Throughput Fees and Ancillary Service Fees set forth on and Schedule B.”

2.    Paragraphs (b) and (c) of Section 5, Ancillary Services, is amended to read as follows:

“5.    ANCILLARY SERVICES
TLO shall provide the respective Ancillary Services for each Terminal set forth on Schedule B attached hereto, and the fees for each such Ancillary Services are set forth on Schedule B.  A blank space or listing of “NA” for an Ancillary Service on Schedule B reflects that such Ancillary Service will not be provided at the indicated Terminal.  If any additional ancillary services are requested by Tesoro that are different in kind, scope or frequency from the Ancillary Services that have been historically provided, then the Parties shall negotiate in good faith to determine whether such ancillary services may be provided and the appropriate rates to be charged for such additional ancillary services.”

[**CONFIDENTIAL TREATMENT REQUESTED PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934. SPECIFIC TERMS HAVE BEEN REDACTED AND ARE MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS.  THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.**] 

3.    Schedules A Schedule B attached hereto shall replace and supersede the Schedule A and Schedule B attached to the MTA. 

In Witness Whereof, we execute this Agreement effective as of the date first stated above.  
TESORO LOGISTICS OPERATIONS LLC     ,

        /s/ PHILLIP M. ANDERSON
By:  Phillip M. Anderson
        President

TESORO REFINING AND MARKETING COMPANY

       /s/ GREGORY J. GOFF
By. Gregory J. Goff
       President

[**CONFIDENTIAL TREATMENT REQUESTED PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934. SPECIFIC TERMS HAVE BEEN REDACTED AND ARE MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS.  THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.**] 

Schedule A

Throughput By Material Grouping, Product and Terminal 

	
													
	Material Grouping
	Fuel Oil
	Gasoline*
	Jet
	Diesel

	Material:
	Decant
	RUL and Premium
	Jet
	Kerosene
	ULSD #1 Clear
	ULSD #1 Dyed
	ULSD #2 Clear
	ULSD #2 Dyed
	ULSD Clear  - flow improved
	ULSD Dyed  - flow improved
	Premium ULSD - undyed - cetane improved
	Premium ULSD - dyed - cetane improved

	TERMINAL
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Anchorage AK
	 
	X
	X
	X
	X
	 
	X
	 
	 
	 
	 
	 

	Boise ID
	 
	X
	X
	 
	 
	 
	X
	X
	 
	 
	 
	 

	Burley ID
	 
	X
	 
	 
	 
	 
	X
	X
	X
	X
	 
	 

	Los Angeles CA
	 
	X
	X
	 
	 
	 
	X
	X
	 
	 
	 
	 

	Mandan ND
	X
	X
	X
	 
	X
	X
	X
	X
	 
	 
	X
	X

	Salt Lake City UT
	 
	X
	X
	 
	X
	X
	X
	X
	 
	 
	 
	 

	Stockton CA
	 
	X
	 
	 
	 
	 
	X
	X
	 
	 
	 
	 

	Vancouver WA
	 
	X
	 
	 
	 
	 
	X
	X
	 
	 
	 
	 

No dedicated storage is to be provided for any Product at any Terminal

*Regular Unleaded and Premium gasoline will be received and stored at a Terminal, and may be blended at the rack to deliver Midgrade gasoline

[**CONFIDENTIAL TREATMENT REQUESTED PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934. SPECIFIC TERMS HAVE BEEN REDACTED AND ARE MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS.  THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.**] 

Schedule B
Throughput and Ancillary Services Fees
All Fees are per barrel except where noted otherwise.

	
									
	fee description
	Anchorage
	Boise
	Burley
	Los Angeles
	Mandan
	Salt Lake City
	Stockton
	Vancouver

	Throughput Fees
	$**
	$**
	$**
	$**
	$**
	$**
	$**
	$**

	* In Tank Transfer
	$**
	$**
	$**
	$**
	$**
	$**
	$**
	$**

	Product Receipt Fee - Barge
	$**
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	$**

	EtOH Storage Fee
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	$**
	N/A

	EtOH Blending Fee
	N/A
	$**
	$**
	$**
	$**
	$**
	$**
	$**

	EtOH Receipt Fee - by Truck
	N/A
	$**
	$**
	$**
	N/A
	N/A
	$**
	$**

	EtOH Receipt Fee - by Rail
	N/A
	N/A
	$**
	N/A
	N/A
	N/A
	$**
	$**

	Generic Gasoline Additive Fee - Tier 1 - 105% of LAC
	$**
	$**
	$**
	$**
	$**
	$**
	$**
	$**

	Generic Gasoline Additive Fee - Tier 2 - up to 2x LAC
	$**
	$**
	$**
	$**
	$**
	$**
	$**
	$**

	Generic Gasoline Additive Fee - Tier 3 - up to 3x LAC
	$**
	$**
	$**
	$**
	$**
	$**
	$**
	N/A

	Generic Gasoline Additive Fee - Tier 4 - up to 4x LAC
	$**
	N/A
	N/A
	N/A
	N/A
	N/A
	$**
	N/A

	Generic Gasoline Additive Fee - Tier 5 - up to 5x LAC
	$**
	N/A
	N/A
	N/A
	N/A
	N/A
	$**
	N/A

	Proprietary Additive Fee
	$**
	$**
	$**
	$**
	$**
	$**
	$**
	$**

	Winter Flow Improver
	N/A
	N/A
	$**
	N/A
	$**
	N/A
	N/A
	N/A

	Red Dye Fee
	N/A
	$**
	$**
	$**
	$**
	$**
	$**
	$**

	Lubricity/ Conductivity Additive Charge
	$**
	$**
	$**
	$**
	$**
	$**
	$**
	$**

	Transmix Offloading Fee - Truck
	$**
	$**
	$**
	$**
	N/A
	$**
	N/A
	N/A

	Jet Additive Fee
	N/A
	N/A
	N/A
	N/A
	$**
	N/A
	N/A
	N/A

	**  Jet Testing Fee
	$**
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A

	Jet Certification Fee
	$**
	$**
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A

*   In Tank Transfer fee is per occurrence
** Jet Testing Fee is Monthly

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