Document:

A summary of certain compensation matters previously contained in the Company's

 Exhibit 10.2 
 Compensation Summary 
 (As reported in The Hershey Company’s 
 Current Report on Form 8-K, filed February 15, 2008) 
 On February 12, 2008, the Compensation and Executive Organization Committee (“Committee”) of our Board of Directors approved 2008 incentive compensation awards for certain of the executive officers who
were named in the Summary Compensation Table of our 2007 Proxy Statement (“named executive officers”). Three of these officers retired or terminated their employment with the Company in 2007. Richard H. Lenny retired as Chairman of the
Board of Directors, and Marcella K. Arline retired as Chief People Officer, effective December 31, 2007. Thomas K. Hernquist resigned as an executive officer on December 4, 2007 and discontinued active employment with the Company on
December 31, 2007. Of the two remaining named executive officers, David J. West was elected President of the Company on October 2, 2007 and Chief Executive Officer effective December 1, 2007, and J. P. Bilbrey was elected Senior Vice
President, President Hershey North America on December 4, 2007. 
 The independent members of our Board of Directors also approved
certain compensation for Mr. West, as well as the adoption or amendment of certain plans and agreements, on February 13, 2008, all as more fully described below. 
 Special Performance Stock Unit (PSU) Retention Award. The Committee approved a special contingent target award of PSUs (“special award”)
under our Equity and Incentive Compensation Plan (“Incentive Plan”) for executive officers, including Mr. Bilbrey, who received contingent target PSUs for the 2007-2009 performance cycle, and recommended to the independent directors
as a group that Mr. West receive a special award as he also was a recipient of PSUs for the 2007-2009 performance cycle. PSU awards are based upon a percentage of the named executive officer’s base salary and are earned, if at all, upon
the Company’s achievement of certain performance objectives over the performance cycle. The special award was made to aid in retention of these executive officers as the potential retention value of the 2007-2009 PSUs is diminished in light of
the Company’s 2007 financial performance. 
 The special award creates a two-year, 2008-2009 performance cycle under which eligible
executives received contingent target awards equal to two-thirds of the target value of the PSU award for the 2007-2009 performance cycle. The performance objective for the 2008-2009 performance cycle is the Company’s two-year compound annual
growth in absolute diluted earnings per share from operations measured against an internal target. The total performance score can range from a minimum of 0% to a maximum of 150%. Upon completion of the performance cycle, an award will be paid on
the basis of the number of PSUs originally awarded to the executive, the Company’s performance against the performance objectives for the cycle and the value per unit, which is determined at the conclusion of the cycle based upon the average of
the daily closing prices of our Common Stock on the New York Stock Exchange in December of the final year of the cycle. To prevent the possible payment of a duplicate award to any executive under the 2007-2009 and 2008-2009 performance cycles, the
amount of any PSUs earned by an executive under the 2007-2009 performance cycle will reduce the total PSUs earned by that executive under the 2008-2009 special award (but not below zero). Awards will 

 
be paid only in shares of our Common Stock. The independent directors as a group approved the Committee’s recommended contingent target PSU award for
Mr. West on February 13, 2008. 
 As a condition to receiving the special award, Mr. Bilbrey and other executive officers
(excluding Mr. West) will be required to sign an Executive Confidentiality and Restrictive Covenant Agreement (“ECRCA”), approved by the Board on February 13, 2008, prohibiting the executive from: (i) disclosing the
Company’s confidential information at any time during or following the executive’s employment with the Company; (ii) competing with the Company in any geographic area in which the Company does business in the domestic and worldwide
confectionery, snack, better-for-you, balanced nutrition and chocolate-related grocery products businesses at any time during the executive’s employment with the Company and for a period of 12 months following termination of the
executive’s employment; and (iii) recruiting or soliciting the Company’s employees, or disparaging the Company’s reputation in any way, at any time during the executive’s employment with the Company and for a period of 12
months following termination of the executive’s employment. The ECRCA contains certain exceptions to these restrictions that are customary in agreements of this type. The ECRCA will be filed as an exhibit to our Quarterly Report on Form 10-Q
for the first quarter of 2008. 
 Mr. West was not required to sign the ECRCA because he continues to be bound by the non-disclosure,
non-competition, non-solicitation and non-disparagement provisions of the Amended and Restated Executive Employment Agreement (“Executive Employment Agreement”) between him and the Company, dated as of October 2, 2007.
Mr. West’s Executive Employment Agreement will be filed as an exhibit to the Company’s 2007 Annual Report on Form 10-K. Each of the executive officers (including Messrs. West and Bilbrey) also will continue to be bound by the terms of
the Long-Term Incentive Program Participation Agreement, filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K on February 18, 2005. 
 Amendment to Executive Benefits Protection Plan (Group 3A). On February 13, 2008, our Board approved an amendment to the Company’s Executive Benefits Protection Plan (Group 3A) (“Group 3A
Plan”) that would reduce the Lump-Sum Severance Payment payable to an eligible participant whose employment with the Company is terminated as the result of a Change in Control from three-times the sum of Annual Base Salary and Annual Incentive
Pay to two-times the sum of Annual Base Salary and Annual Incentive Pay. Capitalized terms used herein shall have the meanings ascribed to them in the Group 3A Plan. The Group 3A Plan, Amended and Restated as of October 2, 2007, will be filed
as an exhibit to the Company’s 2007 Annual Report on Form 10-K. The Group 3A Plan containing the amendment described above will be filed as an exhibit to our Quarterly Report on Form 10-Q for the first quarter of 2008. 
 Amendment to Mr. West’s Executive Employment Agreement. The Board and Mr. West agreed on February 13, 2008 to amend
Mr. West’s Executive Employment Agreement to conform the agreement to the changes to the Group 3A Plan described above. The amendment will be filed as an exhibit to our Quarterly Report on Form 10-Q for the first quarter of 2008.

 At its meeting on February 12, 2008, the Committee also approved or recommended the following
incentive compensation awards for executive officers: 
 2008 Annual Incentive Program (AIP) Target Awards. The Committee approved 2008
contingent target awards for our executive officers including Mr. Bilbrey, and recommended to the independent directors as a group a 2008 contingent target award for Mr. West, under the annual incentive program (“AIP”) of the
Incentive Plan. The final award, if any, will be calculated as the product of the executive officer’s base salary, applicable target percentage and a corporate performance score reflecting the Company’s achievement of certain growth
objectives in 2008. These corporate growth objectives are based upon the Company’s diluted earnings per share from operations (weighted 40%), consolidated net sales (weighted 40%) and free cash flow (weighted 20%). The target percentage of base
salary used in the 2008 AIP contingent target award for Mr. Bilbrey is 65% and the target for Mr. West is 100%. The independent directors as a group approved the Committee’s recommended 2008 AIP contingent target award for
Mr. West on February 13, 2008. 
 Performance Stock Units (PSUs) for the 2008-2010 Cycle. The Committee also approved
contingent target awards of PSUs under the Incentive Plan for our executive officers including Mr. Bilbrey, and recommended to the independent directors as a group a contingent target award of PSUs for Mr. West, for the 2008-2010 PSU
performance cycle. The performance objectives for the 2008-2010 performance cycle are the Company’s three-year compound annual growth in absolute diluted earnings per share from operations measured against an internal target and the
Company’s relative total stockholder return (“TSR”) over the three-year cycle versus the three-year compound annual growth in TSR of a peer group of companies we identified in our 2007 proxy statement as the “financial peer
group.” The total performance score can range from a minimum of 0% to a maximum of 250% based upon each of the performance measurements having a 50% weighted value in the formula. Upon completion of the performance cycle, an award will be paid
on the basis of the number of PSUs originally awarded to the executive, the Company’s performance against the performance objectives for the cycle and the value per unit, which is determined at the conclusion of the cycle based upon the average
of the daily closing prices of our Common Stock on the New York Stock Exchange in December of the final year of the cycle. Awards will be paid only in shares of our Common Stock. The independent directors as a group approved the Committee’s
recommended contingent target PSU award for Mr. West on February 13, 2008. 
 Stock Option Awards. The Committee approved
stock option awards under the Incentive Plan for our executive officers other than Mr. West, and recommended to the independent directors as a group a stock option award to Mr. West, all such awards to be effective February 13, 2008.
The independent directors as a group approved the grant of stock options to Mr. West on February 13, 2008. All such awards were made subject to the Incentive Plan and the Terms and Conditions of Nonqualified Stock Option Awards, which will
be filed as an exhibit to the Company’s 2007 Annual Report on Form 10-K. 
 Additional information regarding the compensation of the
Company’s executive officers will be provided in the Company’s Proxy Statement for the 2008 Annual Meeting of Stockholders, which will be filed in March 2008.Confidential Agreement and General Release between the Company and Thomas K. Her

 Exhibit 10.3 
 CONFIDENTIAL AGREEMENT AND GENERAL RELEASE 
 This is a Confidential Agreement and General
Release (hereinafter “Agreement”) between The Hershey Company (hereinafter “the Company”) and Thomas K. Hernquist (hereinafter “you”). The Company is presenting this Agreement to you on November 29, 2007.
You should talk to an attorney before you sign this Agreement because it affects your legal rights. 
  

	1.	Purpose of this Agreement. 

 You and the Company
have mutually agreed to terminate your employment relationship with the Company. You and the Company are entering into this Agreement because you wish to receive benefits under Article 9 of the Company’s Executive Benefits Protection Plan
(Group 3A), receipt of which is conditioned upon the execution of a waiver and release acceptable to the Company. 
  

	2.	Scope of this Agreement. 

 You agree that this
Agreement applies to The Hershey Company and its past and present subsidiaries, divisions, affiliates, benefits plans and its and their agents, directors, officers, employees, representatives, successors and assigns (hereinafter collectively
“the Company”). You also agree that you are entering into this Agreement knowingly and voluntarily on your own behalf and also on behalf of any heirs, agents, representatives, successors and assigns that you may have now or in the future.

  

	3.	Lump Sum Payment. 

 You will receive a lump sum
payment in the amount of two times your current base salary, totaling $840,000. In addition, you shall receive a lump sum payment for any unused 2007 vacation days, excluding any carry-over days from 2006 or any prior year. These amounts will be
paid on the date on which the Company makes its first payroll payment in January 2008. 
  

	4.	Termination of Active Employment:Unpaid Leave of Absence. 

 Your period of active employment with the Company will end on December 31, 2007. It is intended that such termination will be a separation from service for purposes of Internal Revenue Code Section 409A, because, except for the
consultation and transition assistance the Company might request of you under paragraph 6 below (which assistance will involve bona fide services at a level significantly less than 20% of the level of services you have been providing), it is not
expected that you will return to perform services for the Company after December 31, 2007 or during the period beginning on January 1, 2008, and continuing until December 31, 2009 (hereinafter “Leave of Absence Period”).
During this Leave of Absence Period, you shall be placed on an unpaid leave of absence and shall continue to receive the following employee benefits, in accordance with the terms and conditions of the applicable programs and plans as if you remained
an active employee: the group insurance flex benefits you previously elected, except you are not eligible for short-term disability benefits or long-term disability benefits. Your participation in any group insurance flex benefits is contingent upon
your payment to the Company of the applicable premium amount for an active employee at the E2 (or comparable successor) salary band. In addition, you will continue to participate during the Leave of Absence Period in the Annual Incentive Pay program
of the Employee Incentive Compensation Plan (or any comparable successor plan applicable to a member of the Hershey Executive Team), and your target percentage will be that in effect prior to the beginning of the Leave of Absence Period. For
purposes of determining the amount due hereunder, the applicable score shall be the Company’s actual financial score for the payment received in 2008 based on 2007 performance, and for the payments received in 2009 based on 2008 performance and
in 2010 based on 2009 performance, the applicable score shall be the Company’s actual financial score up to a maximum payment of target (Exhibit A details this further). Financial scores shall be those determined by the Company in its sole
discretion and made applicable to members of the Hershey Executive Team. These payments and the lump sum referenced in paragraph 3 above are referred to collectively as “Severance Benefits.” A summary of these Severance Benefits and
certain other benefit programs of the Company is set forth in the attached Exhibit A. 

	5.	Termination of Employment and Officer Status. 

 As
noted in paragraph 4 above, your active employment will cease irrevocably on December 31, 2007. At the end of the Leave of Absence Period on December 31, 2009, your employment with the Company will cease irrevocably and forever, and will
not be resumed again at any point in the future. Your status as an elected or appointed officer of the Company will be terminated effective December 4, 2007, and your execution of this Agreement will constitute your resignation as an officer
effective as of that date. In exchange for the Severance Benefits set forth in Exhibit A, you promise that you will not seek to be employed, reinstated or re-employed by the Company. 
  

	6.	Consultation and Transition Assistance. 

 You have
agreed to provide transition assistance and consultation during the period January 1, 2008 to December 31, 2008. You agree that you will provide such information, consultation and transition assistance as may be reasonably requested by the
Company at times mutually agreed upon and which do not interfere with any future employment during this period. It is understood that such assistance shall only involve a level of services that is less than 20% of the average level of services you
have provided to the company since January 1, 2005. The benefits provided under this Agreement constitute consideration for your performance of such services. 
  

	7.	Severance Benefits and Other Benefits. 

 In addition
to the Severance Benefits, you are entitled to certain other benefits (“Other Benefits”), all of which are set forth on Exhibit A, attached hereto and incorporated herein by this reference. By signing this Agreement, you agree that these
Severance Benefits and Other Benefits are the only benefits that you are entitled to receive under the Executive Benefits Protection Plan (Group 3A), under any other benefits plans or by law. You agree that all payments or benefits paid to you under
this Agreement are subject to withholding in accordance with applicable plan provisions, laws and regulations. In the event of a change in control during your leave of absence, no additional benefits would be due to you. 
  

	8.	COBRA Rights. 

 Effective as of the end of your
Leave of Absence Period, as required by the continuation coverage provisions of Section 4980B of the U. S. Internal Revenue Code of 1986, as amended (“the Code”), you shall be offered the opportunity to elect continuation
coverage under the group medical plan of the Company (“COBRA coverage”). The Company shall provide you with the appropriate COBRA coverage notice and election form for this purpose. You shall notify the Company within two weeks of
any change in circumstances that would warrant discontinuation of COBRA coverage and benefits (including but not limited to your receipt of group medical and dental benefits from any other employer). The existence and duration of your rights and/or
the COBRA rights of any of your eligible dependents shall be determined in accordance with Section 4980B of the Code. 
  

	9.	General Release. 

 In exchange for the Severance
Benefits and Other Benefits, you agree to release and hereby do release the Company from all claims, demands, actions or liabilities you may have against the Company of whatever kind including, but not limited to, those that are related to your
employment by the Company, the termination of that employment, your eligibility for other benefits under non-vested benefits plans and/or claims for attorneys’ fees, except that you do not waive any claims which you are unable to waive under
applicable law. 
 You agree that this General Release covers, but is not limited to, claims arising from the Age Discrimination in
Employment Act, Title VII of the Civil Rights Act of 1964, the Equal Pay Act, the Americans with Disabilities Act, the Rehabilitation Act of 1973 and any other federal, state or local law dealing with discrimination in employment including, but not
limited to, discrimination based on sex, sexual orientation, race, national origin, religion, disability, veteran status or age. You also agree that this General Release covers claims arising from the Family and Medical Leave Act of 1993 and any
state or local law dealing with leave time or wages and hours of work. You also agree that this General Release covers, but is not limited to, claims based on theories of contract or tort, whether based on common law or otherwise. 
  

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 This General Release covers both claims you know about and those you may not know about which accrued by
the time you sign this General Release. In this regard, you agree to waive all rights that any state or local law may provide with respect to a general release of unknown claims. 
 You agree to pay all costs, damages, expenses and attorneys’ fees incurred by the Company in successfully defending against any lawsuit or
administrative proceeding you bring to contest the validity of this Agreement or asserting any of the claims covered by this General Release. 
 You hereby agree and acknowledge that you are not entitled to receive, and the Company would not have granted you, the Severance Benefits and Other Benefits without release of each and every claim covered by this General Release. You agree
that, if you file a lawsuit asserting any of the claims covered by the General Release, the Company will be entitled to a set-off against any judgment you obtain against the Company. You also agree that the appropriate amount of any such set-off in
a lawsuit or administrative proceeding asserting any one or more of the claims covered by the General Release is the entire amount of Severance Benefits. 
 You waive your right to file any charge or complaint against the Company arising out of your employment or separation from employment with any federal, state or local court or any state or local administrative agency,
except where such waivers are prohibited by law. This Agreement, however, does not prevent you from filing a charge with the Equal Employment Opportunity Commission, any other government agency, concerning claims of discrimination, although you
waive the right to recover any damages or other relief in any claim or suit brought by or through the Equal Employment Opportunity Commission or any other federal, state or local agency under the Age Discrimination in Employment Act, Title VII of
the Civil Rights Act of 1964 as amended, the Americans with Disabilities Act, or any other federal or state discrimination law, except where such waivers are prohibited by law. 
 You represent and affirm that you have not filed or caused to be filed, and are not presently a party to, any claim, complaint, or action against the
Company in any forum or form. You further affirm and represent that you have no known workplace injuries. 
  

	10.	Confidentiality. 

  

	 	(a)	Confidentiality of Proprietary Information and/or Trade Secrets. 

 In exchange for the Severance Benefits and Other Benefits, you agree not to disclose, use to your benefit or use to the benefit of any other person or entity any confidential information, proprietary information
and/or trade secrets to which you had access during your employment by the Company. This includes, but is not limited to, formulas, trade secrets, manufacturing processes, customer lists, marketing strategies, financial information and business data
not generally known to the public. You agree that disclosure of such information by you in violation of this paragraph 10(a) would cause so much injury to the Company that money alone could not fully compensate the Company. You also agree that the
Company would be entitled to recover money from you if you violate this paragraph 10(a). 
  

	 	(b)	Confidentiality of the Terms of this Agreement. 

 The terms and conditions of this Agreement are confidential. You agree not to disclose the terms of this Agreement to anyone except immediate family members, your attorney and your financial and tax advisors. You
further agree to inform these people that the Agreement is confidential and must not be disclosed to anyone else. The Company agrees not to disclose the terms of this Agreement to anyone except those persons who have a business need to know its
contents or except as required by law. Either party may disclose the terms of this Agreement if compelled to do so by a court. However, the party so compelled (the “Disclosing Party”) agrees to notify the other party immediately if anyone
seeks to compel production of this Agreement or the Disclosing Party’s testimony about this Agreement, and the Disclosing Party agrees to cooperate with the other party if the other party decides to oppose such effort. Any notice required by
this paragraph 10(b) to be given to the other party shall be mailed by first class mail, postage prepaid, to the following address: if to the Company, to the address listed in paragraph 15, and if to you, to your address at 240 Eshelman Road,
Lancaster, Pennsylvania 17601. 
  

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	11.	Creative Property. 

 You agree that all ideas,
inventions, trade secrets, know-how, documents and data (hereinafter “Creative Property”) developed either during, in connection with, or pursuant to your employment by the Company are and will be the Company’s exclusive property. You
agree to provide all reasonable assistance to the Company in perfecting and maintaining its rights to the Creative Property. The Company shall have the right to use the Creative Property for any purpose without any additional compensation to you.
This Agreement, however, does not prevent you from using your general business, management, financial, professional and/or scientific skills, techniques and abilities. 
  

	12.	Mutual non-disparagement. 

 (a) The
Parties agree that they will not make any statement that disparages or tends to disparage the other. The Parties also agree that they will not make any public statements to the media concerning the other, including any statements concerning the
business objective, management practices or management personnel of the Company. The Parties agree that they will take no action that would cause the other embarrassment, humiliation or to be held in disrepute by the general public or by the
Company’s employees, suppliers or customers. For purposes of this Agreement, it would be considered disparagement for either party to make any statement to the effect that the other had violated any law or regulation, breached any statutory or
contractual obligation, or had otherwise acted wrongfully in any manner in connection with your employment at the Company. 
 (b) Nothing in this paragraph 12 is intended to restrict you from describing your personal or professional reasons for seeking opportunities outside of Hershey in a non-disparaging manner; or from making other non-disparaging statements
about Hershey. 
  

	13.	Covenant Not To Compete. 

 In exchange for the
Severance Benefits and Other Benefits, you agree that beginning on the date you execute this Agreement and continuing during the Leave of Absence Period: (a) you will not participate in recruiting or soliciting any Company employees;
(b) you will not communicate to any person or entity regarding the nature, quality of work, special knowledge or personal characteristics of any person employed by the Company without the prior written consent of the Company’s Senior Vice
President, Chief People Officer (or successor having similar responsibilities within the Company); and (c) without the consent of the Company’s Chief Executive Officer, who will consider and respond to any request within ten business days,
you will not accept employment with or perform services for (1) The Wm. Wrigley Company or (2) any company that produces or sells cocoa-based products, including without limitation chocolate, cocoa-based snacks including confectionery,
cocoa-based beverages or other products containing chocolate, cocoa or cocoa butter (the “Competitive Businesses”), provided that this provision shall not be violated by your accepting employment with or providing services to: 

 

	 	(i)	a subsidiary, division or unit (“Group”) of an entity that engages, directly or indirectly, in any of the Competitive Businesses, so long as the Group for which you work
is not engaged in any of the Competitive Businesses, or 

  

	 	(ii)	a parent company for which the gross revenue from Competitive Businesses constitutes less than 10% of the parent company’s gross consolidated revenue for its most recently
completed fiscal year, so long as you do not participate directly in such Competitive Business, or 

  

	 	(iii)	an entity with annual gross revenue less than $50 million which does not sell confectionery and which has not more than 30% of its revenue from products that have either
(a) cocoa, cocoa butter or chocolate as a primary ingredient or (b) cocoa or chocolate as the primary characterizing flavor. 

  

	14.	Return of Company Property. 

 You agree to return to
the Company all documents, business records in any form, manuals, handbooks, ID cards, keys, credit cards, computer disks or any other property of the Company, both tangible and intangible, that are in your possession, custody or control. If you do
not return all Company property, in addition to any other rights it 

  

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may have under this Agreement or otherwise, the Company may withhold Severance Benefits and Other Benefits equal to the value of such Company property as
determined in the sole judgment of the Company. 
  

	15.	No Admission of Liability. 

 By making this
Agreement, the Company does not admit that it has done anything wrong. 
  

	16.	No Modification. 

 This Agreement constitutes the
entire agreement between you and the Company, and it cannot be modified except in writing by both you and the Company. 
  

	17.	Twenty-one (21) Days To Consider This Agreement. 

 You have up to twenty-one (21) calendar days to decide whether or not to sign this Agreement. You agree, if you decide not to take all that time, that your reasons for doing so are entirely personal and not due to any pressure by the
Company. 
  

	18.	Seven (7) Days To Revoke This Agreement. 

 You
also may revoke this Agreement up to seven (7) calendar days after signing it. The Agreement will not be effective or enforceable until after this revocation period has expired. To revoke this Agreement, you must deliver written notice of the
revocation to the Company by 5 p.m. on the seventh calendar day after you sign this Agreement to the following address: General Counsel’s Office, The Hershey Company, 100 Crystal A Drive, Hershey, PA 17033-0810. You agree that, if you revoke
this Agreement, it will not be effective or enforceable and you will not receive the Severance Benefits and Other Benefits. 
  

	19.	Advice of Counsel. 

 You acknowledge that the
Company has expressly advised you to seek the advice of an attorney before executing this Agreement and that you had adequate time to do so. You acknowledge that the decision to sign this Agreement is yours alone. 
  

	20.	Severability and Interpretation. 

 Whenever
possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law. In case any part of this Agreement shall be invalid, illegal or otherwise unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired. 
  

	21.	Integration. 

 This Agreement, including the
attached Exhibit A and Long Term Incentive Program Participation Agreement (other than paragraph 3 of such Long Term Incentive Participation Agreement), set forth the entire agreement between the parties and supersedes any and all prior agreements,
arrangements, representations or warranties, whether expressed or implied, written or oral, that relate to the subject matter of this Agreement. 
  

	22.	Governing Laws. 

 The provisions of this Agreement
shall be construed, administered and enforced according to applicable federal law and, where appropriate, the laws of the Commonwealth of Pennsylvania without reference to its conflict of laws rules and without regard to any rule of any jurisdiction
that would result in the application of the law of another jurisdiction. You expressly consent that: (a) any action or proceeding relating to this Agreement will only be brought in the federal or state courts, as appropriate, located in the
Commonwealth of Pennsylvania; and (b) any such action or proceeding will be heard without a jury. You expressly waive the right to bring any such action in any other jurisdiction and to have such action heard before a jury. 
  

 5 

 BY SIGNING BELOW, YOU CERTIFY THAT YOU HAVE READ THIS AGREEMENT, THAT YOU KNOW AND UNDERSTAND THE MEANING AND INTENT
OF THIS AGREEMENT AND THAT YOU ARE ENTERING THIS AGREEMENT KNOWINGLY AND VOLUNTARILY. 
  

									
	EMPLOYEE	 		 	THE HERSHEY COMPANY
					
	By:	 	/s/ Thomas K. Hernquist	 		 	By:	 	/s/ Burton H. Snyder
		 	Thomas K. Hernquist	 		 		 	
					
	Date:	 	November 29, 2007	 		 	Date:	 	November 29, 2007

  

 6 

			
	 EXHIBIT A
  
 Thomas K. Hernquist

		
	 Lump sum payment
	  	 Lump sum payment of 2 times current base salary ($840,000)
  
 Unused 2007 vacation, if any (no payment for carry-over vacation from prior years, and vacation for subsequent years does not accrue)
  
 •        Will
be paid with first payroll period of 2008

		
	 Status
	  	 •        Cease to be an officer of the Company December 4, 2007

 •        Termination of employment and separation from service as
defined under Section 409A occurs on December 31, 2007
 •        Available for consultation to ensure smooth transition January 1, 2008 through December 31, 2008
 •        Unpaid leave of absence January 1, 2008 through December 31,
2009

		
	 AIP
	  	 Will participate in AIP through the end of the unpaid leave of absence period. During the unpaid leave of absence period, AIP is determined as the
lower of actual financial results or target bonus
 •        2007 based
on actual financial results
 •        2008 range from $0 - $294,000,
based on actual financial results but not exceeding $294,000
 •        2009 range from $0 - $294,000, based on actual financial results but not exceeding $294,000
 •        For clarity, a financial result of 100% of target or higher would result in
a payment of $294,000. The payout for a financial result below target would be the percentage approved by the Compensation Committee for members of the Hershey Executive Team (this is more accurate than the way it was written, as this puts Tom in
the same position for bonuses below target as if he were a continuing employee.)

		
	 Benefits
	  	 •        Health and welfare benefits including medical, dental
and vision coverage will remain in effect as elected until December 31, 2009, the end of the leave of absence period. You will pay the active rate based on the E2 salary band by personal check
 •        Short-term disability and long term disability benefits will not continue
during the leave of absence period

		
	 COBRA Continuation
	  	Will have the option to elect COBRA continuation for benefits at the end of the leave of absence period.
		
	 401(k) and pension
	  	Benefit accruals cease upon separation from service, December 31, 2007
		
	 SERP
	  	Benefit forfeited; did not meet age 55 vesting requirement
		
	 CLRP
	  	Will be eligible for the Compensation Limit Replacement Plan (CLRP), calculated based on accruals up to December 31, 2007, with no accruals thereafter. The CLRP provides retirement benefits on
pensionable earnings that exceed the IRS compensation limit under the Hershey Retirement Account, which was $225,000 in 2007. The CLRP amount will be paid no later than August 1, 2008 with interest at the applicable rate under the CLRP from December
31, 2007 until paid.

  

 7 

					
	 Deferred Compensation
	  	Subject to deferral elections, if any. Change in deferral election permissible under 409A transition rules in accordance with Company procedures.
			
	 LTIP
	  	PSU cycle	  	
		  	 2003 – 2005
	  	Will be fully vested on 12/31/08 via the leave of absence
		  	 2005 – 2007
	  	Payout, if any, will be determined after February 2008 Board meeting, based on company performance as determined by Board
		  	 2006 – 2008
	  	Based on company performance, this cycle is not expected to have a payout. Not eligible.
		  	 2007 – 2009
	  	Not eligible.
		  	 2008 – 2010
	  	Not eligible.
		  	 Stock option portion

		  	 •       Existing stock options continue to vest and be
available for exercise through the leave period of absence period, 12/31/09
 •       Will not receive a 2008 award or future awards

			
	 RSUs
	  	Vesting Date	  	RSUs
		  	6/16/08	  	1,250
		  	2/28/08	  	2,500
		  	2/28/09	  	2,500

  

			
		  	All above will vest through the leave of absence period.
		
	 Outplacement Assistance
	  	Will be provided in accordance with Company practices
		
	Financial Counseling and Tax Preparation	  	Will be provided through the leave of absence period at the same level as made available to active employees at the E2 salary grade

  

 8

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