Document:

ppc-09262021exhibit102

Execution version  KERRY GROUP PLC  Prince’s Street  Tralee  Co. Kerry  V92 EH11  Ireland  PILGRIM’S PRIDE CORPORATION  1770 Promontory Circle  Greeley  Colorado 80634-9038  United States of America  ONIX INVESTMENTS UK LIMITED  2nd Floor Building  1 Imperial Place  Maxwell Road  Borehamwood  Hertfordshire  WD6 1JN  United Kingdom  ARKOSE INVESTMENTS ULC  29 Earlsfort Terrace  Dublin 2  D02 AY28  Ireland   24 September 2021 Dear Sir / Madam,  Side Letter to the Sale and Purchase Agreement  1 We refer to the agreement (the SPA) for the sale and purchase of the entire issued share capital  of the Target Companies entered into between (i) Kerry Group plc, (ii) Pilgrim’s Pride Corporation,  (iii) Onix Investments UK Limited and (iv) Arkose Investments ULC, dated 17 June 2021 (the Transaction). 2 Unless otherwise defined herein, capitalised terms have the meanings ascribed to them in the  SPA. This letter is a Transaction Document for the purposes of the SPA.  3 The purpose of this side letter is to record certain agreements and undertakings reached by the  Parties in connection with the SPA and this side letter is entered into in consideration of those  mutual agreements and undertakings as contained herein.   Burton Property  4 Pursuant to clause 21.3 of the SPA, the Seller undertook to enter into a licence for the occupation  by the Buyer or relevant members of the Buyer’s Group of the Burton Property. However, the  Parties acknowledge and agree that since signing the SPA it has been agreed that:  (a) clause 21.3 of the SPA shall no longer apply to the Burton Property; (b) Kerry Foods Limited shall assign all of its rights, title, interest, liabilities and obligations in, to and under the lease of the Burton Property dated 31 July 2020 between (1) [***] and (2) Kerry Foods Limited to Northfield Foods Limited by way of: (i) a licence to assign, in a form to be agreed (in good faith and broadly on the landlord’s standard  terms)  to  be  made  between  (1)  [***]  (2)  Kerry UK-#389577786-v6   CERTAIN INFORMATION IDENTIFIED WITH [***] HAS BEEN  EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT  MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS  AS PRIVATE OR CONFIDENTIAL 

 

Execution version  UK-#389577786-v6   Foods Limited and (3) Northfield Foods Limited and to be entered into on or around  the date of Completion; and   (ii) a deed of assignment in a form to be agreed to be made between (1) Kerry Foods Limited and (2) Northfield Foods Limited and to be entered into on or around the date of Completion; and (c) Northfield Foods Limited shall enter into a licence for the occupation by the Seller’s Group of the Burton Property, in the agreed form at Appendix 1 to this side letter and to be entered into on or around the date of Completion. 5 The Parties acknowledge and agree that “lease liabilities / (assets)”, “leased fixed assets capital  additions entered into between the date of this Agreement and Completion” and “non-leased  fixed assets between the date of this Agreement and Completion” in respect of the Burton  Property shall be reflected in  the Net Debt Statement, and the provision for “lease dilapidations”  in the Net Debt Statement shall be increased to £1.0m, and Parts B and C of Schedule 9  (Completion Statements) of the SPA shall be amended accordingly.  “Denny”  6 The Parties agree that the SPA is amended with immediate effect by amending clauses 19.11  and 19.12 of the SPA as follows:  19.11  The Seller shall procure that Henry Denny & Sons (Ireland) Limited shall change its  company name to a name which shall not contain the word "Denny" within one twelve  months of Completion., and if requested by the Buyer, the Parties shall work together  to effect a name swap.   19.12 In connection with the change of names of companies in the Seller's Group to be  implemented pursuant to clause 19.11, the Seller shall, and shall procure that each  member of the Seller's Group shall, within three twelve months following Completion,  remove from all business stationary and from all premises occupied by the Seller’s  Group any trademarks or business names that consist of or include the word "Denny"  and during that period shall only make such use of the “Denny” name in accordance  with the manner in which the Seller Group has used the “Denny” name in the past.  7  8  9  (a) shall apply to this letter mutatis mutandis as if references in the SPA to the Sale Shares include the Pioneer Shares; and (b) are deemed to be incorporated into this letter in respect of the sale and purchase of the Pioneer Shares, including for the avoidance of doubt the limitation and other provisions set out in Schedule 6 (Limitations on the liability of the Seller) of the SPA. Pioneer Brands Limited  The Parties acknowledge and agree that since the signing of the SPA, Kerry Holdings (U.K.)  Limited (being the relevant Designated Seller) has agreed to sell, and the UK Designated Buyer  has agreed to buy the entire issued share capital of Pioneer Brands Limited (company number  13286849), being two ordinary shares of £1.00 each (the Pioneer Shares) as if for all purposes  under the SPA the Pioneer Shares formed part of the Transaction, on the terms of the SPA, and  subject to the variations set out in this letter.  The  Parties  acknowledge  and  agree  that  the  amount  of  Headline  Price  attributed  to  Pioneer  Brands Limited shall be [***] and the amount of the Headline Price attributed to Northfield Foods  Limited at Schedule 1 of the SPA shall be reduced accordingly.   The Seller and the Buyer hereby agree that, unless otherwise provided in this letter, the  provisions of the SPA (other than Schedule 4 (Seller Warranties)):  

 

Execution version  UK-#389577786-v6   10 The Seller warrants to the Buyer that each of the following warranties is true and accurate as at  the date of this letter:  (a) The Pioneer Shares have been validly issued and allotted and constitute the entire issued and allotted share capital of Pioneer Brands Limited and are fully paid up. (b) Kerry Holdings (U.K.) Limited is the sole legal and beneficial owner of the Pioneer Shares, and Kerry Holdings (U.K.) Limited is entitled to sell and transfer the full legal and beneficial ownership in the Pioneer Shares to the Designated Buyers on the terms set out in the SPA, as amended pursuant to paragraph 8 above. (c) There is no Encumbrance on, over or affecting the Pioneer Shares, there is no agreement or commitment to give or create any such Encumbrance and no person had made any claim to be entitled to any right over or affecting the Pioneer Shares. (d) The information set out below in relation to Pioneer Brands Limited is complete and accurate: Company Name Pioneer Brands Limited  Date and place of incorporation 23 March 2021 (England and Wales)  Registration number 13286849  Registered office Thorpe Lea Manor, Thorpe Lea Road,  Egham, Surrey, United Kingdom, TW20 8HY  Issued share capital 2 ordinary shares of £1.00 each  Shareholder Kerry Holdings (U.K.) Limited (100%)  Directors Ronan Deasy, Trevor James Horan, Claire  Salmon  (e) Pioneer Brands Limited is validly incorporated, in existence and is a private company limited by shares formed and registered under the laws of England and Wales and not liable to tax elsewhere. (f) Pioneer Brands Limited has the full power to conduct its business as conducted at the date of this letter. (g) Pioneer Brands Limited does not own any shares or debentures in the capital of, nor does it have any beneficial interest in, any other company, nor has it entered into any legally binding obligations to acquire any shares, debentures or beneficial interest in any other company. (h) Pioneer Brands Limited: (i) is not insolvent or unable to pay its debts; (ii) has not ceased to carry on business, stopped payment of its debts or any class of them or entered into any compromise or arrangement in respect of its debts or any class of them, nor has any step been taken to do any of those things; or (iii) has not been dissolved or entered into liquidation, administration, moratorium, administrative receivership, receivership, a voluntary arrangement, a scheme of arrangement with creditors, any analogous or similar procedure in any jurisdiction 

 

Execution version  UK-#389577786-v6   or any other form of procedure relating to insolvency, reorganisation or dissolution  in any jurisdiction, nor has a petition been presented or other step been taken by  any person with a view to any of those things.  11 Subject to paragraph 12 below, for the purposes of the SPA (as amended pursuant to this letter):  (a) the warranties set out in paragraph 10 above shall be included within the definition of Seller Warranties; and (b) the warranties set out in subparagraphs 10(a) to 10(h) above shall be included within the definition of Fundamental Warranties, and the SPA shall be construed accordingly.  12 Notwithstanding any other provision of this letter or the SPA, the Seller undertakes to the Buyer  that, if there is a breach of the warranty contained in paragraph 10(j) above, it shall indemnify  and hold harmless the Buyer against, and shall pay promptly on demand to the Buyer an amount  equal to the aggregate of: (i) the amount which would be necessary to put Pioneer Brands Limited  into the financial position which would have existed had there been no breach of such warranty;  and (ii) all Losses suffered by, and all Tax paid, payable or liable to be paid by, the Buyer and/or  any member of the Buyer’s Group as a result of or in connection with the breach of such warranty.  Any indemnity claim made by the Buyer pursuant to this paragraph 12 shall be construed as an  Indemnity Claim for the purposes of Schedule 6 (Limitations on the liability of the Seller) of the  SPA and not, for the avoidance of doubt, a Seller Warranty Claim.  Completion  13 The Parties acknowledge and agree that the Conditions have been satisfied and Completion  shall occur on 24 September 2021 and as such the SPA shall be amended as follows:  (i) All registers required by law to be kept by Pioneer Brands Limited are in the possession or  under the control of the Seller’s Group, have been properly kept during the period of  ownership by the Seller’s Group, and are up to date in all material respects and contain  records of the matters which are required by applicable laws to be recorded in them. (j) Since its incorporation on 23 March 2021, Pioneer Brands Limited: (i) has not entered into any contract, obligation or arrangement or traded or carried on  any activities other than: (A) the  registration  of  the  Everwell  brand  (trade  mark  registration  number  [***])  on  the  [***]  (the  Everwell Registration); (B) the  negotiation  of  the  manufacturing  agreement  with  [***] in connection   with the manufacture of vitamins (the [***] Manufacturing Agreement)  (such draft contract having been made available  to  the  Buyer),  and  the   placing  of  orders  under  the  [***] Manufacturing Agreement  notwithstanding that such contract has not been executed; and (C) any other day-to-day and trading activities in connection with the foregoing, (ii) has  no  outstanding  liabilities  (except  pursuant  to  the  Everwell  Registration  and  [***] Manufacturing Agreement). (k) Since its incorporation on 23 March 2021, Pioneer Brands Limited has not engaged, nor  does it currently engage, any employees, consultants or contractors.  

 

Execution version  UK-#389577786-v6   The following definition shall be inserted in Schedule 11 (Definitions and Interpretation), in  alphabetical order:  Completion Statement Date means the effective close of trading on 25 September 2021 in  accordance with the customary practices of the Seller’s Group;  Clause 14.1 of the SPA shall be replaced in its entirety as follows:  14.1 Completion shall take place on 24 September 2021 at the offices of Arthur Cox LLP at Ten  Earlsfort Terrace, Dublin 2, D02 T380, Ireland (or at such other place as the Parties may  agree on or prior to the Completion Date).  14 The Parties further acknowledge and agree that the Draft Completion Statements shall be  prepared as at the Completion Statement Date and the SPA shall be amended as follows:   Clause 4.4 of the SPA shall be amended as follows:  4.4. The Seller shall, not less than five Business Days prior to Completion, provide the  Buyer with its reasonable estimate calculated in good faith of the value of the Stock as  at the Completion Statement Date (as a component of the Estimated Working Capital  notified in accordance with clause 4.7), which shall be calculated in accordance with  Schedule 9 (Completion Statements).  Clause 4.5 of the SPA shall be amended as follows:  4.5 On the Completion Date, t The Seller shall procure that, for the purposes of the Working  Capital Statement, a stock take (Stock Take) is carried out at each of the Properties  as at the Completion Statement Date in accordance with the customary practices of  the Seller’s Group and otherwise as reasonably agreed between the Buyer and Seller.  The description and quantity of each item of Stock shall be determined by the Seller  acting reasonably and in accordance with the past practices of the Seller’s Group in  respect of the Business for the purposes of the preparation of its annual accounts, and  the value of each item of Stock shall be valued in accordance with Schedule 9  (Completion Statements). Any Stock that is held at a third party premises (Third Party  Stock) shall be verified by third party statements in accordance with ordinary business  practices.  Clause 7.3 of the SPA shall be amended as follows:  7.3 The Parties acknowledge and agree that, following the Completion Statement Date,  invoice arrangements for all amounts receivable by or owing to the Buyer (or any  member of the Buyer’s Group) for goods and/or services supplied by the Business  following the Completion Statement Date shall be conducted by the Buyer or otherwise  by the Seller solely in accordance with the terms of the Transitional Services  Agreement and the Van Sales Distribution Agreement.  Clause 8.1 of the SPA shall be amended as follows:  8.1 Where any charges or outgoings are paid or incurred, or any payments are received,  by either the Seller’s Group or the Target Companies, in respect of Apportionable Items  in relation to the Business, and such items are of a periodic nature and relate or are  otherwise attributable to a period of time commencing before but ending after the  Completion Statement Date, such amount shall be apportioned pro rata on a time basis  between the Parties so that such part of the relevant charges, outgoings or payments  as is attributable to the period ended at (but excluding) the Completion Statement Date  shall be borne by or belong to the Seller and such part of the relevant charges,  outgoings or payments as is attributable to the period commencing at (and including)  the Completion Statement Date shall be borne by or belong to the Buyer.   Part B of Schedule 9 (Completion Statements) shall be amended as follows:  

 

Execution version  UK-#389577786-v6   1 Except as otherwise expressly specified, no account shall be taken of events taking place  after the Completion Statement Date, and regard shall only be had to information available  to the Parties up to the date that the Draft Completion Statements are delivered by the  Seller to the Buyer.  3 The Completion Statements will be prepared in GBP. Assets and liabilities in the  Completion Statements denominated in a currency other than GBP shall be converted at  the Conversion Rate on the Completion Date 25 September 2021.  5 The Completion Statements shall be prepared by reference to draft completion balance  sheets at the Completion Statement Date for the Target Companies, in substantially the  same format as the Carve-Out Accounts (but including separate line items as necessary  for the Completion Statements and to facilitate the calculation of any adjustments required  pursuant to clauses 4.9 to 4.11 (such that the Parties to calculate Actual Net Indebtedness  and Actual Working Capital in respect of each Target Company)) and on a consolidated  basis, drawn up from the individual general ledgers of each of the Target Companies  (including by reference to individual operating sites therein).  11 The Working Capital Statement shall include full provision for holiday pay accruals for all  Target Companies for direct labour, calculated as at the Completion Statement Date in line  with historical practice.  12  In relation to the Target Companies other than Oakhouse and Rollover, in respect of GRN  (goods received notes) accruals, accruals (other than holiday pay accruals for direct  labour), which for the avoidance of doubt in respect of such Target Companies shall remain  with the Seller’s Group, are made for all goods and services received but not yet invoiced  at the Completion Statement Date, based on the quantity of goods received multiplied by  the order price, including costs of freight and any other transportation costs and duties  associated with these goods and services.  13 In relation to Oakhouse and Rollover, in respect of GRN (goods received notes) accruals,  accruals within the Working Capital Statement shall be made for all goods and services  received but not yet invoiced at the Completion Statement Date, based on the quantity of  goods received multiplied by the order price, including costs of freight and any other  transportation costs and duties associated with these goods and services.  15 Fixed asset, leased and non-leased, capital additions between the date of this Agreement  and the Completion Statement Date shall be determined by the capitalisation dates on the  fixed asset registers.  21      The calculation of tax assets/liabilities for the purposes of the Net Debt Statement and  Working Capital Statement will be undertaken in accordance with the following  provisions:  (a) provisions for all current and non-current Taxes payable or liable to be paid, but unpaid, by any Target Company in respect of the period up to the Completion Statement Date shall be calculated by reference to income, profit, or gains or losses earned, accrued, received or realised, remuneration paid and supplies made or received, as the case may be, in the period up to and including the Completion Statement Date and income, profits, or gains or losses deemed to have been earned, accrued, received or realised, remuneration deemed to be paid and supplies deemed to be made or received, as the case may be, for Tax purposes in the period up to and including the Completion Statement Date; (c) the Working Capital Statement shall include provision for all payroll taxes (including social security contributions) and (in accordance with paragraphs 5 to 7 above) VAT payables owed by, or any VAT receivables owed to, any Target Company in respect of any period up to and including the Completion Statement Date; 

 

Execution version  UK-#389577786-v6   (d) the Net Debt Statement shall include provision for all other Tax or amounts in respect of Tax (including, without limitation, corporation tax but excluding payroll taxes, social security contributions and VAT) payable by any Target Company in respect of any period up to and including the Completion Statement Date; (e) a provision for all Tax or amounts in respect of Tax (including, without limitation, corporation tax and/or payroll taxes and/or social security contributions) payable by any Target Company in respect of the period up to and including the Completion Statement Date shall be included in the Net Debt Statement and/or the Working Capital Statement; (f) for the purposes only of determining whether Taxes are payable or liable to be paid in respect of the period up to and including the Completion Date 25 September 2021 and whether a Relief has arisen in or relates to the period up to and including the Completion Date 25 September 2021, an accounting period of each Target Company shall be deemed to have ended on the Completion Date 25 September 2021; and The following definitions shall be amended as follows:  Actual Net Indebtedness means the Indebtedness less the Cash of the Target Companies at  the Completion Statement Date, as ascertained after Completion in accordance with Schedule 9  (Completion Statements) and as set out in the Completion Statements;  Actual Working Capital means the aggregate Working Capital of the Target Companies at the  Completion Statement Date, as ascertained after Completion in accordance with Schedule 9  (Completion Statements) and as set out in the Completion Statements;  Apportionable Items means any Customer Agreements and Supplier Agreements which  contain provisions requiring apportionment over a period of time commencing prior to the  Completion Statement Date (including promotions, rebates and overrider payments);   Business Payables means all amounts payable or owing by a member of the Seller’s Group  (other than Oakhouse and Rollover) for goods and/or services supplied to the Business or  otherwise owing by a member of the Seller’s Group (other than Oakhouse and Rollover) in  respect of the Business, in each case prior to the Completion Statement Date (whether or not  invoiced);  Business Receivables means all amounts receivable by or owing to a member of the Seller’s  Group (other than Oakhouse and Rollover) for goods and/or services supplied by the Business  or otherwise owing to a member of the Seller’s Group (other than Oakhouse and Rollover) in  respect of the Business, in each case prior to the Completion Statement Date (whether or not  invoiced);  Cash means the aggregate of the cash (whether in hand or credited to any account with any  banking, financial, acceptance credit, lending or other similar institution or organisation) and cash  equivalents, including all interest accrued thereon, of the Target Companies as at the Completion  Statement Date but excluding, for the avoidance of doubt, any item or amount to the extent it is  taken into account in calculating the Actual Working Capital;  Stock means the following, wherever situated, as at the Completion Statement Date:  (a) all finished products held by the Target Companies as trading stock for supply exclusively in the course of the Business; (b) all stocks of meat, ingredients and other raw materials held by the Target Companies exclusively in the course of the Business; (c) all semi-produced or partly finished products which are in the course of production by the Target Companies into finished products for supply in the course of the Business; and 

 

Execution version  UK-#389577786-v6   (d) all stocks of packaging materials and of maintenance or other engineering parts, components and accessories in use or held by the Target Companies for use or supply exclusively in the course of the Business; Target Working Capital means £14,100,000, being the Parties' agreed target amount of  Working Capital as at the Completion Statement Date;  Working Capital Statement means the statement of the Actual Working Capital at the  Completion Statement Date prepared in accordance with the provisions of Schedule 9  (Completion Statements) and in the form set out in Part D of Schedule 9 (Completion  Statements).  15 For the avoidance of doubt, the results of trading operations shall be for the account of the Seller  up until the Completion Statement Date and the Seller shall be entitled to retain any proceeds up  until the Completion Statement Date notwithstanding Completion having occurred.  16 The Parties shall use reasonable endeavours to procure that notwithstanding Completion having  occurred, the Target Companies and Pioneer Brands Limited are operated in the ordinary course  of business between Completion and the effective close of trading on 25 September 2021.   Other  17 The Parties have agreed that a co-packing agreement between Kerry Foods Limited and  Northfields Foods Limited (the Co-Packing Agreement) and a trade mark licence agreement  relating to ‘Fridge Raiders’ (the Fridge Raider Licence Agreement) shall be entered into from  Completion, and for the purposes of Schedule 8 (Completion) of the SPA the Seller shall deliver  to the Buyer a duly executed copy of the Co-Packing Agreement and Fridge Raider Licence  Agreement at Completion.  18 The Parties acknowledge and agree that, in accordance with clause 9 of the SPA the Inter- Company Balances shall be discharged by the Seller on or prior to Completion by the issue of  new shares by the relevant Target Companies, and as a result the issued share capital of the  following Target Companies for the purposes of Schedule 1 of the SPA shall be amended (with  effect from the date of this letter only) as follows:  Company Issued share capital  Noon Products Limited 1,001,000 ordinary shares of £0.10 each  Spurway Foods Limited 151,000 ordinary shares of £1 each  Attleborough Foods Limited 1,002 ordinary shares of £1 each  Northfield Foods Limited 1,002 ordinary shares of £1 each  Consumer Foods Van Sales Limited 1,002 ordinary shares of £1 each  19 For the avoidance of doubt, the Parties acknowledge and agree that, except as provided by  paragraphs 4 to 18 (inclusive) of this letter, the SPA shall remain in full force and effect.  20 The SPA and this letter shall be read and construed together as a single document from the date  of this letter.  21 Clauses 22 (Entire Agreement), 24 (Remedies and waivers) to 34 (Agency structure) and  36 (Rights of third parties) to 40 (Service of process), Schedule 10 (Agency provisions) and  Schedule 11 (Definitions and interpretation) of the SPA shall apply mutatis mutandis as if set out  in full in this letter.  

 

Execution version  UK-#389577786-v6   IN WITNESS whereof, this letter has been executed as an agreement and takes effect on the date  stated at the beginning of it.   

 

SIGNATURE PAGE TO SIDE LETTER  EXECUTED by  .... .  as .  for and on behalf of  KERRY GROUP PLC  EXECUTED by  as ........................................ ..  for and on behalf of  PILGRIM'S PRIDE CORPORATION  EXECUTED by  as ...... ................................... .  for and on behalf of  ONIX INVESTMENTS UK LIMITED  EXECUTED by  as ........................................ ..  for and on behalf of  ARKOSE INVESTMENTS ULC  UK-#389577786-v&  Execution version  

 

Execution version  SIGNATURE PAGE TO SIDE LETTER  EXECUTED by  as ......................................... .  for and on behalf of  KERRY GROUP PLC  EXECUTED by  [ ·as for and on behalf of  PILGRIM'S PRIDE CORPORATION  for and on behalf of  ONIX INVESTMENTS UK LIMITED  '  for and on behalf of  ARKOSE INVESTMENTS ULC  UK-#389577786-v&  EXECUTED by  EXECUTED byDocument

EXHIBIT 10.1
EMPLOYEE CONFIDENTIALITY AND RESTRICTIVE COVENANT AGREEMENT

THIS EMPLOYEE CONFIDENTIALITY AND RESTRICTIVE COVENANT AGREEMENT (the “Agreement”) is entered into as of ____________ __, 20__ (the “Effective Date”), between The Hershey Company, a Delaware corporation (“Employer” or “Hershey”), and the undersigned employee of Employer (“Employee”).  This Agreement extends not only to Employee and Hershey, but also to Hershey’s past and present affiliated and related companies, subsidiaries, joint ventures, affiliated entities, parent companies and its and their respective successors and assigns, its and their past, present and future benefit and severance plans, including the  Equity and Incentive Compensation Plan (“EICP”), and its and their representatives, agents, trustees, officials, shareholders, officers, directors, employees, attorneys, benefit plan administrators and fiduciaries, both past and present, in their individual or representative capacities, and all of their successors and assigns (collectively with Hershey, the “Company”).
WHEREAS, Employee currently serves or is being hired or promoted to serve Hershey and has received and/or is eligible to receive current and future Options, RSU and/or PSU (as defined below) awards under the Long-Term Incentive Program of the EICP or any similar or successor plan and/or is currently a participant in, or may become a participant in, the DB SERP and/or DC SERP (as defined below).
WHEREAS, Employer possesses certain valuable confidential, proprietary and/or trade secret information (collectively, “Confidential Information,” as further defined below) that gives Employer a competitive advantage.
WHEREAS, Employer has developed and maintained, at substantial expense and over a considerable period of time, Business Relationships.
WHEREAS, as a result of Employee’s past, future, and/or continued employment, Employee has been and/or will be and/or will continue to be given access to, and has and/or will continue to assist in, the development and maintenance of Employer’s Confidential Information and Business Relationships, it is the parties’ intent to continue to safeguard such Confidential Information and Business Relationships both during and after the term of Employee’s employment with Employer.
WHEREAS, Employer’s reputation and present and future competitive position are dependent upon Employer’s ability to protect its interests in such Confidential Information and Business Relationships.
WHEREAS, should Employee’s employment with Employer be terminated for any reason whatsoever, Employer desires: (1) to protect its Confidential Information; (2) to prevent the Employee from using or disclosing to others such Confidential Information; and (3) to limit Employee’s ability to solicit other employees, customers, suppliers, agents, licensees or licensors of Employer.

1

NOW, THEREFORE, in consideration of (i) Employer employing Employee, (ii) Employer providing and continuing to provide Employee access to such Confidential Information and Business Relationships, (iii) Employer making Option awards, PSU awards, RSU awards and/or other equity awards to Employee under the next cycle and/or any future cycles in which Employee is eligible to participate, (iv) if applicable, Employer permitting Employee to participate in and be eligible to receive amounts in the future under defined benefit or defined contribution supplemental Employee retirement plans (DB SERP or DC SERP, as applicable), and/or (v) other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, Employer and Employee agree as follows:
1.Scope.  Employee agrees that he/she is entering into this Agreement knowingly and voluntarily on Employee’s own behalf and also on behalf of any heirs, agents, representatives, successors and assigns that Employee has now or may have in the future.  Employee also agrees that this Agreement extends not only to Employee and Hershey, but also to the Company.
2.Definitions.
(a)     “Business Relationships” means the Company’s relationships with customers, suppliers, agents, licensees, licensors and others that likewise give the Company a competitive advantage.
(b)     “Competing Business” means any business, person, entity or group of business entities, regardless of whether organized as a corporation, partnership (general or limited), joint venture, association or other organization that (i) conducts or is planning to conduct a business similar to and/or in competition with any business conducted or planned by the Company and for which Employee was employed or performed services in a job or had knowledge of the operations of such business(es) over the last two (2) years of Employee’s employment with the Company, or (ii) designs, develops, produces, offers for sale or sells a product or service that can be used as a substitute for or is generally intended to satisfy the same customer needs for, any one or more products or services designed, developed, manufactured, produced or offered for sale or sold by the Company and for which Employee was employed or performed services in a job or had knowledge of the operations of such business(es) of the Company during the two (2) years prior to Employee’s Termination of Employment.  Employee acknowledges that Employee will be deemed to have such knowledge if Employee received, was in possession of or otherwise had access to Confidential Information (as defined below) regarding such business.  For purposes of illustration only, Employee acknowledges and understands that each of the corporations, or entities (and any related entities, subsidiaries, affiliates or successors) set forth on the Addendum attached hereto is a Competing Business as of the date hereof.  Employee further acknowledges and agrees that the Addendum attached hereto is not an exhaustive list and is not intended to include all of the Company’s current or future competitors, which Employee acknowledges may include other persons or entities in the future.  Employee further acknowledges and understands that if Employee has any question about whether any prior position which Employee has held at the Company over the last two (2) years subjects Employee to specific restrictions, and will be used to identify Competing Business(es), Employee should contact Employee’s Human Resource representative.  

2

(c)    “Confidential Information” means trade secrets and other confidential and proprietary information relating to the Company’s business, including, but not limited to, information about Hershey’s manufacturing processes; manuals, recipes and ingredient percentages; engineering drawings; product and process research and development; new product information; cost information; supplier data; strategic business information; information related to Hershey’s legal strategies or legal advice rendered to Hershey; marketing, financial and business development information, plans, forecasts, reports and budgets; customer information; new product strategies, plans and project activities; and acquisition and divestiture strategies, plans and project activities. 
(d)    “Material Contact” means contact for the purpose of furthering the Company’s business. 
(e)    “Options”, “RSU” and “PSU” shall mean stock options, restricted stock unit/restricted stock awards and performance stock unit/performance stock awards, respectively, granted under the EICP. 
(f)    “Termination of Employment” means any separation from employment with the Company regardless of the reason, including any voluntary and involuntary reason.  The termination date for purposes of this Agreement shall be the last day of Employee’s employment.  
(g)    “DB SERP” means The Hershey Company Amended and Restated (2007) Supplemental Executive Retirement Plan, as amended by Hershey from time to time.
(h)    “DC SERP” means The Hershey Company Defined Contribution Executive Retirement Plan, as amended by Hershey from time to time.  
3.    Non-Disclosure of Confidential Information.  Employee acknowledges that due to the nature of his/her employment and the position of trust that he/she holds or will hold with Employer, he/she will have access to, learn, be provided with, and in some cases will prepare and create for Employer, Confidential Information.  Employee acknowledges and agrees that Confidential Information, whether or not in written form, is the exclusive property of Employer, that it has been and will continue to be of critical importance to the business of Employer, and that the disclosure of it will cause Employer substantial and irreparable harm.  Accordingly, Employee will not, either during his/her employment or at any time after the Termination of Employment, use or disclose any Confidential Information relating to the business of Employer which is not generally available to the public.  Notwithstanding the foregoing provisions of this Paragraph 3, Employee may disclose or use any such information (i) when such disclosure or use may be required or appropriate in the good faith judgment of Employee in the course of performing his/her duties to Employer and in accordance with Employer policies and procedures, (ii) when required by a court of law, by any governmental agency having supervisory authority over Employee or the business of Employer, or by any administrative or legislative body (including a committee thereof) with apparent jurisdiction, or (iii) with the prior written consent of Employer’s General Counsel.  Notwithstanding anything herein to the contrary, Employee understands and agrees that his/her obligations under this Agreement shall be in addition to, rather than in lieu of, any obligations Employee may have under any applicable statute or at common law.

3

Employee is hereby notified in accordance with the Defend Trade Secrets Act of 2016 that Employee will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding.  If Employee files a lawsuit for retaliation against Employer for reporting a suspected violation of law, Employee may disclose the Company’s trade secrets to Employee’s attorney and use the trade secret information in the court proceeding, provided Employee files any document containing the trade secret under seal, and does not disclose the trade secret, except pursuant to court order.
4.    Non-Competition.  Employee acknowledges that due to the nature of his/her employment with Employer, he/she has and will have access to, contact with, and Confidential Information about the Company’s business and Business Relationships.  Employee acknowledges that Employer has incurred considerable expense and invested considerable time and resources in developing its Confidential Information and Business Relationships, and that such Confidential Information and Business Relationships are critical to the success of Employer’s business.  Accordingly, both (i) during the term of his/her employment with the Company, and (ii) for a period of twelve (12) months following the Termination of Employment, Employee, except in the performance of his/her duties to Employer, shall not, without the prior written consent of Employer’s Chief Human Resources Officer, directly or indirectly serve or act in a consulting, employee or managerial capacity, or engage in oversight of any person who serves or acts in a consulting, employee or managerial capacity, as an officer, director, employee, consultant, advisor, independent contractor, agent or representative of a Competing Business.  This restriction shall apply to any Competing Business that conducts business or plans to conduct business in the same or substantially similar geographic area in which Employee was employed or, directly or indirectly, performed services for the Company during the two (2) years prior to his/her Termination of Employment.  Employee acknowledges (i) that the Company’s business is conducted throughout the United States and the world, (ii) notwithstanding the state of incorporation or principal office of Hershey, it is expected that the Company will have business activities and have valuable Business Relationships within its industry throughout the United States and around the world, and (iii) as part of Employee’s responsibilities, Employee has conducted or may conduct business throughout the United States and around the world in furtherance of the Company’s business and its relationships.  
5.Non-Solicitation.  Employee acknowledges that the Company has invested and will invest significant time and money to recruit and retain its employees and to develop valuable, continuing relationships with existing and prospective clients and customers of the Company.  Accordingly, recognizing that Employee has obtained and will obtain valuable information about employees of the Company and their respective talents and areas of expertise and information about the Company’s customers, suppliers, business partners, and/or vendors and their requirements, Employee agrees both (i) during the term of his/her employment, and (ii) for a period of twelve (12) months following his/her Termination of Employment, Employee, except in the performance of his/her duties to Employer, shall not directly or indirectly (including as an officer, director, employee, consultant, advisor, agent or representative), for himself/herself or on behalf of any other person or entity:

4

(a)for any purpose that is in competition with any of the aspects of the Company’s business, solicit, take away or engage, or participate in soliciting, taking away or engaging, any customers, suppliers, agents, licensees or licensors of the Company with whom Employee had contact while employed by Employer, or about whom Employee had access to Confidential Information as a result of Employee’s employment; or
(b)  recruit, hire, or attempt to recruit or hire, or solicit or encourage to leave their employment with the Company (either directly or by assisting others), any Company employee with whom Employee had Material Contact during the last two (2) years of Employee’s employment with Hershey.  Notwithstanding the foregoing, this paragraph shall not be violated by (i) general advertising or solicitation not specifically targeted at employees of the Company, or (ii) actions taken by any person or entity with which Employee is associated if Employee is not directly or indirectly involved in any manner in the matter and has not identified such employee of the Company for recruiting or solicitation.  If Employee should wish to discuss possible employment with any then-current employee of the Company during the period set forth above, Employee may request written permission to do so from the Employer’s Chief Human Resources Officer who may, in his/her sole and absolute discretion, grant a written exception to the no solicitation covenant set forth in this paragraph 5(b); provided, however, that Employee shall not discuss any such employment possibility with any such employee unless and until such permission is received.
6.Non-Disparagement. Both (i) during the term of his/her employment with Employer, and (ii) following his/her Termination of Employment, Employee shall not make any public statements that disparage the Company, its employees, officers, directors, products or services, provided that, notwithstanding the foregoing, truthful statements made in the course of sworn testimony in administrative, judicial or arbitral proceedings (including, without limitation, depositions in connection with such proceedings), normal competitive-type statements, and statements made in the good faith performance of the Employee’s duties to Employer shall not constitute a violation of this clause.  For purposes of this provision, “disparage” means to express a negative opinion, speak of in a slighting way, or belittle.
7.Return of Materials. Upon Termination of Employment, Employee shall return to Employer all Company property that Employee has in his/her possession, including but not limited to any materials relating to or containing Confidential Information or information about Business Relationships that Employee obtained through Employee’s employment with Employer.
8.Cooperation.  Employee agrees that, at any time after Employee’s Termination of Employment, he/she will cooperate with the Company in (i) all investigations of any kind, (ii) helping to prepare and review documents and meetings with Company attorneys, and (iii) providing truthful testimony as a witness or a declarant during discovery and/or trial in connection with any present or future court, administrative, agency or arbitration proceeding involving the Company and with respect to which Employee has relevant information.
9.Violation of Paragraphs 3, 4, 5, 6, 7 or 8.  Employee acknowledges Employer’s valid and protectable interest in aligning the long-term interests of valued employees with those of Employer by providing Employee an ownership interest in the Employer through the EICP and other incentive programs and otherwise, and likewise acknowledges Employer’s valid and 

5

protectable interest in preventing former employees whose interests become adverse to the Employer from maintaining an ownership or other interest in the Employer.  Accordingly, Employee agrees that if he/she violates any of Paragraphs 3, 4, 5, 6, 7 or 8 above or otherwise engages in any misconduct that causes Employer financial, reputational or other harm (the date on which any such violation or misconduct occurs is the “Date of Breach”),  Employer may, in its sole discretion, in addition to any other remedies available to it at law (including without limitation monetary damages) or in equity (including without limitation temporary, preliminary and/or permanent injunctive relief):
(a)cancel any unvested portion of any and all PSU and RSU awards;
(b)cancel any unexercised stock options; 
(c)require Employee to pay Employer the full value of any benefits received by Employee during the period twelve (12) months prior to Employee’s Termination of Employment through the Date of Breach, from (i) PSUs, (ii) RSUs, and (iii) the exercise of any options;
(d)cancel any unpaid benefits of Employee under the DB SERP and DC SERP; and/or
(e)require Employee to pay Employer the full value of any benefits already received by Employee under the DB SERP or DC SERP (including for this purpose amounts that would have been received but for Employee’s election to defer such amounts under the Deferred Compensation Plan).
10.Employee acknowledges that a remedy at law for any breach or threatened breach of this Agreement would be inadequate and therefore agrees that the Company shall be entitled to injunctive relief in case of any such breach or threatened breach.  Employee acknowledges and agrees that the Company may apply to any court of law or equity of competent jurisdiction for specific performance and/or injunctive relief (without posting a bond or other security) in order to enforce or prevent any violation of this Agreement, and that money damages would not be an adequate remedy.  Employee acknowledges and agrees that a violation of this Agreement would cause irreparable harm to the Company.  The Company’s right to injunctive relief shall be cumulative and in addition to any other remedies available by law or equity. If a court determines that Employee has breached or threatened to breach this Agreement, Employee agrees to reimburse the Company for all reasonable attorneys’ fees and costs incurred in enforcing such terms.  However, nothing contained herein shall be construed as prohibiting the Company from pursuing any other available remedies, which may include, but not be limited to, contract damages, lost profits and punitive damages.  Employee further agrees that in the event he/she later believes that any provision hereof is not enforceable for any reason, Employee will not act in violation of any such provision until such time as a court of competent jurisdiction enters a final judgment with respect to enforceability.
11.Entire Agreement.  Employee acknowledges and agrees that (a) this Agreement includes the entire agreement and understanding between the parties with respect to the subject matter hereof, and may be amended, modified or changed only by a written instrument executed by Employee and Employer, and (b) violation of Paragraphs 3, 4, 5, 6, 7 or 8 hereof may cause 

6

Employee to lose the right to receive, or may obligate Employee to repay to Employer, amounts awarded or accrued under various plans and programs of Employer as described herein. No provision of this Agreement may be waived except by a writing executed and delivered by the party sought to be charged.  Any such written waiver will be effective only with respect to the event or circumstance described therein and not with respect to any other event or circumstance unless such waiver expressly provides to the contrary.
12.Miscellaneous.
(a)This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, without reference to principles of conflict of laws.  Employee expressly consents that: (a) any action or proceeding relating to a breach or the enforceability of this Agreement will be brought only 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.  Employee expressly waives the right to bring any such action in any other jurisdiction and to have such action heard before a jury regardless of where such action is filed.
(b)All notices and other communications hereunder shall be in writing; shall be delivered by hand delivery to the other party or mailed by registered or certified mail, return receipt requested, postage prepaid or by a nationally recognized courier service such as Federal Express; shall be deemed delivered upon actual receipt; and shall be addressed as follows:
If to Employer:
The Hershey Company
19 East Chocolate Avenue
Hershey, Pennsylvania 17033
ATTN:  Senior Vice President, Chief Human Resources Officer
If to Employee:
At the address set forth with the signature below,
or to such other address as either party shall have furnished to the other in writing in accordance herewith.
(c)If a court of competent jurisdiction determines that any provision of this Agreement is unenforceable as written, that provision will be enforceable to the maximum extent permitted by law and will be reformed by the court to make the provision enforceable in accordance with the Company’s intent and applicable law.  
(d)The Company’s failure to enforce any provision of this Agreement will not be interpreted as a waiver of its right to enforce that provision in the future.
(e)Employee agrees that while employed and during the twelve (12) months following Termination of Employment, Employee will notify any future employers of Employee’s obligations under this Agreement and authorizes Employer to provide notice of the provisions of this Agreement to any future employers of Employee.

7

(f)Employee represents that Employee is free to enter into this Agreement and is not currently bound by any post-employment restrictive covenants of any former employer that would restrict or prohibit Employee from performing Employee’s duties for Employer.  Employee further represents that Employee’s employment with Employer will not, to the best of Employee’s knowledge, require Employee to inevitably disclose any confidential information of any prior employer and that Employee will not disclose to the Company confidential information of a prior employer in violation of the terms of any binding non-disclosure obligation or applicable law.
(g)Employee acknowledges and agrees that the restrictions set forth in Paragraphs 3, 4, 5, 6, 7 and 8 of this Agreement are reasonable and necessary for the protection of the Company’s Confidential Information and Business Relationships, and do not impose any undue economic hardship on Employee or otherwise preclude Employee from obtaining gainful employment should Employee cease to be employed by the Employer.
(h)Employee understands and agrees that nothing in this Agreement shall be construed in any way as an agreement or guarantee of employment.  Employee also understands and agrees that while he or she is eligible to receive awards under the EICP and/or amounts under the DB SERP and/or DC SERP, the granting of any such awards and/or receipt of amounts under such awards or plans is subject to the terms and conditions of the awards, EICP and such plans, and that nothing set forth herein shall be deemed to guarantee to Employee any specific amount of awards or compensation will be made to or earned by Employee. 
EMPLOYEE HAS READ AND REVIEWED THIS AGREEMENT IN ITS ENTIRETY AND HAS BEEN GIVEN AN OPPORTUNITY TO ASK QUESTIONS ABOUT IT AND TO CONSULT WITH AN ATTORNEY.  EMPLOYEE FULLY UNDERSTANDS THE TERMS OF THIS AGREEMENT AND KNOWINGLY AND FREELY AGREES TO ABIDE BY THEM.

IN WITNESS WHEREOF, each of the parties hereto has duly executed this Agreement as of the date first set forth above.

8

			
	EMPLOYEE:
	
	

_______________________________________

Print Name and Address:

EMPLOYEE NAME
EMPLOYEE ADDRESS
CITY, STATE, ZIP

	
	EMPLOYER:
	The Hershey Company, a Delaware corporation

	

By:    __________________________________________________________________
    Senior Vice President                         Chief Human Resources Officer

9

ADDENDUM TO EMPLOYEE CONFIDENTIALITY 
AND RESTRICTIVE COVENANT AGREEMENT

    Pursuant to Paragraph 2(b) of your Employee Confidentiality and Restrictive Covenant Agreement, this Addendum contains a list, for illustration purposes only, of specific competitors that are considered a Competing Business as that term is used in your Agreement and are therefore covered by the restrictions contained in your Agreement.  This list is not an exhaustive list and is not intended to include all of the Company’s current or future competitors, which you acknowledge in Paragraph 2(b) of your Agreement may include other persons or entities in the future.

    Based on your role and responsibilities with The Hershey Company as a [Insert Job], the following companies are considered key competitors to the Company, and therefore, fall within the definition of a Competing Business as that term is used in your Agreement:

[Insert Key Competitors]

    As previously noted, this is not an exhaustive list and there may be current and future persons or other entities that would meet the definition of a Competing Business as set forth in your Agreement.  In addition, pursuant to Paragraph 2(b) of your Agreement, please note that the term Competing Business as defined in your Agreement will include competitors of any business of the Company in which you have worked in a job during the last two (2) years of your employment with the Company.  Accordingly, if you worked in multiple positions during your tenure, it is very likely that the Competing Businesses subject to restriction under the terms of your Agreement will be broader than the above illustrative list.  If you have questions about whether any prior position which you have held over the last two (2) years subjects you to similar restrictions, and will be used to identify Competing Business(es), you should contact your Human Resource representative.

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00335-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00335-of-00352.parquet"}]]