Document:

Amended and Restated SERP

    Exhibit
      10.1

    

    THE
      HERSHEY COMPANY

    AMENDED
      AND RESTATED (2007)

    SUPPLEMENTAL
      EXECUTIVE RETIREMENT PLAN

    

    1. 
Purpose
      of Plan.
      The
      purpose of the Amended and Restated (2007) Supplemental Executive Retirement
      Plan, effective as of January 1, 2007 (except as otherwise provided below)
      (hereinafter called the "Plan") is to enable The Hershey Company (hereinafter
      called the "Company") to help attract and retain a strong management team by
      ensuring executive and certain selected upper level management employees receive
      benefits to assist them in preparing for retirement. The Plan constitutes an
      amendment, restatement and continuation of the prior plan which was most
      recently restated as of October 6, 2003.

    

    To
      the
      extent provided by law, the benefits provided hereunder with respect to any
      Participant who retired or whose employment with the Company terminated prior
      to
      January 1, 2007, will, except as otherwise specifically provided for herein,
      be
      governed in all respects by the terms of the plan document then in effect on
      the
      date of the Participant’s retirement or other termination of
      employment.

    

    2. 
Definitions.
      The
      following words and phrases as used in the Plan shall have the following
      meanings, unless a different meaning is plainly required by the
      context:

    

    a. 
"Cause"
      means, as determined by the Committee in its reasonable discretion, the willful
      engaging by an employee of the Company in illegal conduct or gross misconduct
      which is materially and demonstrably injurious to the Company, including,
      without limitation, illegal conduct or gross misconduct that causes, or has
      the
      potential to cause, material financial or reputational injury to the
      Company.

    

    For
      purposes of this definition, no act or failure to act, on the part of an
      employee of the Company, shall be considered "willful" unless it is done, or
      omitted to be done, by the employee in bad faith and without reasonable belief
      that the employee's action or omission was in the best interest of the Company.
      Any act or failure to act, based upon prior approval given by the Board or
      upon
      the instruction or with the approval of the Chief Executive Officer or the
      employee's superior or based upon the advice of counsel for the Company shall
      be
      conclusively presumed to be done, or omitted to be done, by the employee in
      good
      faith and in the best interest of the Company.

    

    b. 
"Committee"
      means the Compensation and Executive Organization Committee of the Board of
      Directors of the Company (the "Board") or other such person, persons or
      committees as the Board may prescribe from time to time. 

    

    Effective
      as of October 2, 2001, Committee shall also mean the Employee Benefits Committee
      of the Company, to which the Board has delegated certain duties with respect
      to
      the administration of the Company’s employee benefit plans, or any successor
      committee as designated by the Board.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    c. 
"Deferred
      Retirement Date" means the first day of the month following an employee's
      termination of employment with the Company provided such termination occurs
      after his or her Normal Retirement Date.

    

    d. 
"Disability"
      or "Disabled", for purposes of this Plan, shall have the same meaning as
      provided in Section 1.16 of the Retirement Plan, as such section may be amended
      from time to time.

    

    e. 
"Early
      Retirement Date" means the first day of any month following an employee's
      termination of employment with the Company which is coincident with or following
      his or her fifty-fifth (55th) birthday and prior to his or her Normal Retirement
      Date.

    

    f. 
"Final
      Average Compensation" means the sum of (i) the average of the highest three
      (3)
      calendar years of base salary paid to a Vested Participant over his or her
      last
      five (5) years of employment with the Company and (ii) the average of the
      highest three (3) calendar years of annual awards under the Annual Incentive
      Program (hereinafter called the "AIP") of the Hershey Foods Corporation Key
      Employee Incentive Plan ("KEIP") received or deferred over his or her last
      five
      (5) years of employment with the Company. 

    

    g. 
"GATT
      Interest Rate" means, for purposes of this Plan, for any specific month, the
      "applicable interest rate" as specified by the Commissioner of the Internal
      Revenue Service in Section 417(e)(3) of the Internal Revenue Code of 1986,
      as
      amended (the "Code") (as such applicable interest rate is modified from time
      to
      time in revenue rulings, notices or other guidance, published in the Internal
      Revenue Service Bulletin).

    

    h. 
"Lump
      Sum
      Interest Rate" means, as of any specific date, the sum of one-twelfth
      (1/12th)
      of each
      GATT Interest Rate for the twelve (12) consecutive months beginning with the
      thirteenth (13th)
      month
      preceding the month during which such date occurs.

    

                                   
      i. 
"Normal
      Retirement Date" means, for the purposes of this Plan, the first day of the
      month nearest an employee's sixty-fifth (65th) birthday, except that if his
      or
      her birthday is equally near the first of two (2) calendar months, the first
      day
      of the month prior to his or her sixty-fifth (65th) birthday shall be his or
      her
      Normal Retirement Date.

    

                                  
      j.            
 "Participant"
      means an employee of the Company who has been designated by the Committee in
      its
      sole discretion on or before October 2, 2006. Any employee who is not a
      Participant after October 2, 2006 may not be selected for participation in
      the
      Plan after October 2, 2006.

    

    k.              
      "Retirement
      Plan" means The Hershey Company Retirement Plan, as in effect from time to
      time
      and any successor plan thereto.

     

                                 
       
l.              "Vested
      Participant" means, as of any specific date, a Participant who, as of such
      date,
      satisfies each eligibility requirement set forth in the first sentence of
      Section 3 of the Plan.

    

    
      
        
        

      

      
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    m.           
       "Years
      of
      Service," shall have the same meaning as provided in Section 1.59 of the
      Retirement Plan, as such section may be amended from time to time.

    

    3. 
Eligibility.
      A
      Participant will be eligible to receive a benefit pursuant to Section 4 of
      the
      Plan if, at the time of his or her termination of employment with the Company,
      such Participant (i) is at least fifty-five (55) years of age and (ii) has
      completed five (5) Years of Service. No Participant, regardless of whether
      he or
      she satisfies all the eligibility requirements to be a Vested Participant,
      shall
      be entitled to receive any benefits under the Plan if his or her employment
      with
      the Company is terminated for Cause. Notwithstanding the above, a Participant
      whose employment with the Company is terminated prior to his or her Normal
      Retirement Date for reason of Disability will be treated as provided for in
      Section 4.c.

    

    4. 
Retirement
      Benefits.

    

    a. 
Normal
      Retirement Benefit. An employee who qualifies as a Vested Participant on the
      date of his or her termination of employment with the Company, and who retires
      (or whose employment is otherwise terminated, other than for Cause) on or after
      his or her Normal Retirement Date shall be entitled under the Plan to receive
      a
      lump sum cash payment (as determined under Section 6) equal to the present
      value
      of the annual benefit equal to:

    

    (1) 
the
      product of three and two-thirds percent (3-2/3%) of his or her Final Average
      Compensation and his or her Years of Service not in excess of fifteen (15)
      Years
      of Service; reduced by the sum of (2) and (3), where (2) and (3)
      equal:

    

    (2) 
one
      hundred percent (100%) of the Vested Participant’s retirement benefit under the
      Retirement Plan (calculated as described in Section 4.e.) and any other
      tax-qualified defined benefit pension plan maintained by the Company or any
      affiliate thereof, payable as a life annuity commencing at his or her Normal
      Retirement Date or his or her Deferred Retirement Date if he or she retires
      after his or her Normal Retirement Date, regardless of whether such benefit
      payment is in that form or begins at that time; and

    

    (3) 
one
      hundred percent (100%) of the estimated primary social security benefit to
      which
      the Vested Participant would be entitled on his or her Normal Retirement Date
      or
      his or her Deferred Retirement Date if he or she retires after his or her Normal
      Retirement Date regardless of whether he or she receives any portion of such
      primary Social Security benefit on such date.

    

    The
      benefit payable (as determined above) to a Participant who is age fifty (50)
      or
      over as of January 1, 2007 shall be reduced by ten percent (10%). For those
      Participants who have not attained age fifty (50) as of January 1, 2007, the
      benefit payable (as determined above) shall be reduced by twenty percent (20%).
      

    

    b. 
Early
      Retirement Benefit. An employee who qualifies as a Vested Participant on the
      date of his or her termination of employment with the Company, and who retires
      (or whose employment is otherwise terminated, other than for Cause) on or after
      his or her 

     

    
      
        
        

      

      
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    Early
      Retirement Date and prior to his or her Normal Retirement Date shall be entitled
      under the Plan to receive a lump sum cash payment (as determined under Section
      6) equal to the present value of the annual benefit equal to:

    

    (1) 
the
      product of three and two-thirds percent (3-2/3%) of his or her Final Average
      Compensation and his or her Years of Service not in excess of fifteen (15)
      Years
      of Service reduced by the sum of (2), (3), and (4), where (2), (3), and (4)
      equal:

    

    (2) 
one
      hundred percent (100%) of the Vested Participant’s retirement benefit under the
      Retirement Plan (calculated as described in Section 4.e.) and any other
      tax-qualified defined benefit pension plan maintained by the Company or any
      affiliate thereof, payable as a life annuity commencing at his or her Early
      Retirement Date or the first day thereafter on which such benefits would be
      payable if they are not payable on his or her Early Retirement Date, regardless
      of whether such benefit payment is in that form or begins at that time;

    

    (3) 
one
      hundred percent (100%) of the estimated primary Social Security benefit to
      which
      the Vested Participant would be entitled on his or her Early Retirement Date
      or
      the first date thereafter on which such benefits would be payable if they are
      not payable on his or her Early Retirement Date regardless of whether he or
      she
      receives any portion of such primary Social Security benefit on such date;
      provided, however, if the Vested Participant has not attained age sixty-two
      (62)
      at the time of termination, this reduction shall be calculated as if his or
      her
      compensation is payable at the same rate in effect at the time of his or her
      termination; and 

    

    (4) 
the
      product of (i) the difference between (1) and the sum of (2) and (3), (ii)
      five-twelfths of a percent (5/12%), and (iii) the number of complete calendar
      months by which the Vested Participant’s date of termination of employment
      precedes his or her sixtieth (60th)
      birthday. 

    

    The
      benefit payable (as determined above) to a Participant who is age fifty (50)
      or
      over as of January 1, 2007 shall be reduced by ten percent (10%). For those
      Participants who have not attained age fifty (50) as of January 1, 2007, the
      benefit payable (as determined above) shall be reduced by twenty percent
      (20%).

    

    c. 
Disability
      Retirement Benefit. If a Participant suffers a Disability prior to his or her
      Normal Retirement Date and while employed by the Company, the period of his
      or
      her Disability will be recognized as Years of Service and as years as a
      Participant in the Plan for purposes of calculating benefits under Section
      4. If
      such Participant’s Disability continues to his or her Normal Retirement Date,
      for purposes of the Plan, he or she will retire on that date and will be
      entitled to the benefit described in and calculated under Section 4.a.

    

    d. 
Pre-Retirement
      Death Benefit. If a Participant (i) dies before his or her employment with
      the
      Company terminates and (ii) qualifies as a Vested Participant on his or her
      date
      of death, his or her designated beneficiary(ies), or his or her estate if he
      or
      she has not designated any beneficiary or beneficiaries in accordance with
      procedures established by the 

     

    
      
        
        

      

      
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    Committee,
      shall receive a death benefit equal to the lump sum cash payment that would
      have
      been payable to the Vested Participant under Sections 4.a. or 4.b. as if he
      or
      she had retired on the date of death.  

     

    e. 
Calculation
      of Retirement Plan Benefits. Notwithstanding any future amendment to the
      Retirement Plan, the terms of the Retirement Plan as in effect on December
      31,
      2006 shall be used for the purposes of calculating a benefit payable under
      this
      Section 4.

    

    f. 
Coordination
      With Severance Arrangement. For purposes of calculating benefits under this
      Section 4, a Participant who is receiving benefits in a form other than a lump
      sum under the Company’s Executive
      Benefits Protection Plan (Group 3) ("EBPP
      Group 3")
      and
      Executive Benefits Protection Plan (Group 3A) ("EBPP
      Group 3A"):
      (i)
      amounts paid to such Participant under the EBPP
      Group
      3
      and EBPP Group 3A shall
      be
      included in a Participant’s Final Average Compensation and (ii) the period under
      which the Participant is receiving benefits under the EBPP Group
      3
      and EBPP Group 3A shall
      be
      recognized as Years of Service and as years as a Participant in this Plan.
      If
      amounts are paid to a Participant in a lump sum under the EBPP Group
      3
      and EBPP Group 3A, (i) such amounts shall not be included in the
      Participant’s Final Average Compensation and (ii) no period of coverage shall be
      recognized as Years of Service and as years as a Participant in this Plan.
      

    

    5. 
Administration
      of the Plan.
      The
      Committee is charged with the administration of the Plan. It shall have full
      power and authority to construe and interpret the Plan. Its decisions shall
      be
      final, conclusive and binding on all parties. Subject to Section 9 of this
      Plan,
      the Committee shall also have the power, in its sole discretion, at any time
      to
      waive, in whole or in part, application of any of the eligibility requirements
      of Section 3 or of the benefit reduction factors in Sections 4.a. and 4.b.
      in
      the case of any individual Participant, Vested Participant or other employee
      of
      the Company (including an employee who has participated in the performance
      share
      unit portion of the KEIP).

    

    6. 
Lump
      Sum Distribution.

    

    a. 
Distribution
      Upon Retirement or Death. A lump sum cash payment payable to or on behalf of
      a
      Vested Participant under Sections 4.a., 4.b., or 4.d. shall be payable as soon
      as administratively practicable following the date of retirement or death.
      Such
      payment shall be equal to the actuarial present value of (i) the annual benefit
      payable to a Vested Participant as a single life annuity under Sections 4.a.
      or
      4.b. or (ii) if the Vested Participant is married on date of retirement or
      death, the annual benefit payable to a Vested Participant as a fifty percent
      (50%) joint and survivor annuity with the Participant’s spouse as contingent
      annuitant under Sections 4.a. or 4.b. (reduced by the monthly annuity value
      of
      any life insurance provided by the Company or any affiliate thereof for retired
      employees that is in excess of post-retirement group term life insurance
      regularly provided by the Company or any affiliate thereof). Such payment shall
      be calculated using: (i) the prevailing Commissioner’s standard mortality table
      (described in Code section 807(d)(5)(A)) used to determine reserves for group
      annuity contracts issued on the date of the Vested Participant’s retirement (or
      the Vested Participant’s date of termination of employment other than for Cause)
      or death (without regard to any other subparagraph for such Code
      section 807(d)(5)) that is prescribed by the Commissioner of the

     

    
      
        
        

      

      
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    Internal
      Revenue Service in revenue rulings, notices, or other guidance published in
      the
      Internal Revenue Bulletin and (ii) an interest rate equal to the Lump Sum
      Interest Rate as of the date of the Vested Participant’s retirement (or the
      Vested Participant’s date of termination of employment other than Cause) or
      death. Notwithstanding the preceding sentence, the interest rate for those
      Vested Participants who elected to participate in The Hershey Company 2005
      Enhanced Mutual Separation Plan for E-Grade Employees (the "EMSP") or  The
      Hershey Company 2005 Early Retirement Plan for E-Grade Employees (the "ERP
      for
      E-Grade Employees") shall be an interest rate equal to (i) the Lump Sum Interest
      Rate as of December 31, 2005 or (ii) the prevailing Lump Sum Interest Rate
      as of
      the date of the Vested Participant’s retirement. If the Committee, in its sole
      discretion, determines that the benefit payable to a Vested Participant covered
      under the EMSP or ERP for E-Grade Employees using the Lump Sum Interest Rate
      as
      of December 31, 2005 exceeds the benefit otherwise payable under this Plan
      by
      $500, the excess shall be paid in a lump sum cash payment as soon as
      administratively practicable following the date of retirement or death.

    

    b. 
Distribution
      to Key Employees. In the case of a Separation from Service of a Key Employee,
      a
      lump sum cash payment payable under Section 6.a. may not be made before the
      date
      which is six (6) months after the date of the Key Employee’s Separation from
      Service (or, if earlier, the date of death of the Key Employee) (hereinafter
      called the "Waiting Period"). The lump sum cash payment that is otherwise
      payable to a Key Employee under Section 6.a. shall accrue interest during the
      Waiting Period at a rate equal to the Lump Sum Interest Rate. For purposes
      of
      this Section 6.b., "Key Employee" means a "specified employee" under Code
      section 409A(a)(2)(B)(i) (i.e., a key employee (as defined under Code section
      416(i) without regard to paragraph (5) thereof) of a corporation any stock
      in
      which is publicly traded on an established securities market or otherwise)
      and
      applicable Treasury regulations and other guidance under Code section 409A.
      A
      "Separation from Service" means a termination of employment within the meaning
      of Code section 409A and applicable Treasury regulations and other guidance
      under Code section 409A. 

    

    7. 
Payment
      of Benefits.
      Nothing
      contained in the Plan and no action taken pursuant to the provisions of the
      Plan
      shall create or be construed to create a trust of any kind, or a fiduciary
      relationship between the Company and any Participant, Vested Participant, spouse
      of a Participant or Vested Participant, or any other person. No person other
      than the Company shall by virtue of the provisions of the Plan have any interest
      in such assets. To the extent that any person acquires a right to receive
      payments from the Company under the Plan, such right shall be no greater than
      the right of any unsecured general creditor of the Company. The right of any
      Vested Participant or any other person to the payment of benefits under the
      Plan
      shall not be assigned, transferred, pledged or encumbered, such payments and
      the
      right thereto are expressly declared to be non-assignable and nontransferable.
      No payments hereunder shall be subject to the claim of the creditors of any
      Vested Participant or of any other person entitled to payments hereunder. Any
      payments required to be made pursuant to the Plan to a person who is under
      a
      legal disability may be made by the Company to or for the benefit of such person
      in such of the following ways as the Committee shall determine:

    

    a. 
Directly
      to such person;

    

    
      
        
        

      

      
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    b. 
To
      the
      legal representative of such person;

    

    c. 
To
      a near
      relative of such person to be used for such person’s benefit; or

    

    
      	 	
              d.              
                  

            	
              Directly
                in payment of expenses of support, maintenance or education of such
                person.

            

    

    

    The
      Company shall not be required to see to the application by any third party
      of
      any payments made pursuant to the Plan.

    

    8. 
Effective
      Date of Plan.
      This
      Amended and Restated (2007) Supplemental Executive Retirement Plan shall be
      effective January 1, 2007 (except as otherwise provided in this Plan) and Vested
      Participants who become eligible to retire under the Plan on or after that
      date
      shall be entitled to the benefits provided hereunder.

    

    9. 
Amendment,
      Suspension or Termination of the Plan.
      

    

    a. 
Ability
      to Amend, Suspend, or Terminate. The Board of Directors of the Company may,
      at
      any time, suspend or terminate the Plan. The Board, or its duly appointed
      delegee, if applicable, may also from time to time, amend the Plan in such
      respects as it may deem advisable in order that benefits provided hereunder
      may
      conform to any change in law or in other respects which the Board, or its
      delegee in accordance with the Board’s delegation of authority thereto, deems to
      be in the best interest of the Company. No such suspension, termination or
      amendment of the Plan shall adversely affect any right of any person who is
      a
      Vested Participant at the time of such suspension, termination or amendment
      or
      his or her beneficiary(ies), estate or surviving spouse, as applicable, to
      receive benefits under the Plan in accordance with its provisions in effect
      immediately prior to such suspension, termination or amendment without the
      consent of such Vested Participant, beneficiary(ies), estate or surviving
      spouse. Any benefits payable under the terms of the Plan at the time of any
      suspension, termination or amendment of the Plan shall remain in effect
      according to their original terms, or such alternate terms as may be in the
      best
      interests of both parties and agreed to by the Vested Participant or his or
      her
      beneficiaries, estate or surviving spouse, as applicable. 

    

    b. 
Amendment
      or Termination After Change in Control. Notwithstanding the foregoing, (i)
      the
      Plan may not be terminated or amended in any manner that is adverse to the
      interests of a Participant or the surviving spouse of a Participant without
      the
      consent of the Participant or surviving spouse, as applicable, either: (a)
      after
      a Potential Change in Control occurs and for one (1) year following the
      cessation of the Potential Change in Control, or (b) for a two (2) year period
      beginning on the date of a Change in Control (the "Coverage Period"), and (ii)
      no termination of this Plan or amendment hereof in a manner adverse to the
      interests of any Participant, or
      such
      Participant’s surviving spouse, (without the consent of the Participant or
      surviving spouse) shall be effective if such termination or amendment occurs
      (a)
      at the request of a third party who has taken steps reasonably calculated to
      effect a Change in Control, or (b) in connection with or in anticipation of
      a
      Change in Control. After the Coverage Period, the Plan may not be amended or
      terminated in any manner that would adversely affect the entitlement of a
      Participant or his or her surviving spouse (without the consent of the
      Participant or surviving 

     

    
      
        
        

      

      
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    spouse)
      to benefits that have accrued hereunder. For purposes of the immediately
      preceding two sentences of this Section 9, whether an employee of the Company
      qualifies as a Participant shall be determined at the time (i) the Coverage
      Period commences and any time thereafter or (ii) his or her employment is
      terminated or the Plan is amended (a) at the request of a third party who has
      taken steps reasonably calculated to effect a Change in Control, or (b) in
      connection with or in anticipation of a Change in Control.

    

    (1)          
          
"Change
      in Control" means:

    

    (a) 
Individuals
      who, on June 8, 1999, constitute the Board (the "Incumbent Directors") cease
      for
      any reason to constitute at least a majority of the Board, provided that any
      person becoming a director subsequent to June 8, 1999, whose election or
      nomination for election was approved by a vote of at least two-thirds (2/3)
      of
      the Incumbent Directors then on the Board (either by specific vote or by
      approval of the proxy statement of the Company in which such person is named
      as
      nominee for director, without written objection to such nomination) shall be
      an
      Incumbent Director, provided,
      however,
      that no
      individual initially elected or nominated as a director of the Company as a
      result of an actual or threatened election contest (as described in Rule 14a-11
      under the Exchange Act) ("Election Contest") or other actual or threatened
      solicitation of proxies or consents by or on behalf of any Person other than
      the
      Board ("Proxy Contest"), including by reason of any agreement intended to avoid
      or settle any Election Contest or Proxy Contest, shall be deemed an Incumbent
      Director, and provided further,
      however,
      that a
      director who has been approved by the Hershey Trust while it beneficially owns
      more than 50% of the combined voting power of the then outstanding voting
      securities of the Company entitled to vote generally in the election of
      directors (the "Outstanding Company Voting Power") shall be deemed to be an
      Incumbent Director;

    

    (b) 
The
      acquisition or holding by any Person of beneficial ownership (within the meaning
      of Section 13(d) under the Exchange Act and the rules and regulations
      promulgated thereunder) of shares of the Common Stock and/or the Class B Common
      Stock of the Company representing 25% or more of either (i) the total
      number of then outstanding shares of both Common Stock and Class B Common Stock
      of the Company (the "Outstanding Company Stock") or (ii) the Outstanding Company
      Voting Power, provided that, at the time of such acquisition or holding of
      beneficial ownership of any such shares, the Hershey Trust does not beneficially
      own more than 50% of the Outstanding Company Voting Power, and provided,
      further, that any such acquisition or holding of beneficial ownership of shares
      of either Common Stock or Class B Common Stock of the Company by any of the
      following entities shall not by itself constitute such a Change in Control
      hereunder: (i) the Hershey Trust, (ii) any trust established by the
      Company or by any Subsidiary for the benefit of the Company and/or its employees
      or those of a Subsidiary, (iii) any employee benefit plan (or related
      trust) sponsored or maintained by the Company or any Subsidiary, (iv) the
      Company or any Subsidiary or (v) any underwriter temporarily holding securities
      pursuant to an offering of such securities; 

    

    
      
        
        

      

      
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    (c) 
The
      approval by the stockholders of the Company of any merger, reorganization,
      recapitalization, consolidation or other form of business combination (a
      "Business Combination") if, following consummation of such Business Combination,
      the Hershey Trust does not beneficially own more than 50% of the total voting
      power of all outstanding voting securities eligible to elect directors of (i)
      the surviving entity or entities (the "Surviving Company") or (ii) if
      applicable, the ultimate parent corporation that directly or indirectly has
      beneficial ownership of more than 50% of the combined voting power of the then
      outstanding voting securities eligible to elect directors of the Surviving
      Company; or

    

    (d) 
The
      approval by the stockholders of the Company of (i) any sale or other
      disposition of all or substantially all of the assets of the Company, other
      than
      to a corporation (the "Acquiring Corporation") if, following consummation of
      such sale or other disposition, the Hershey Trust beneficially owns more than
      50% of the total voting power of all outstanding voting securities eligible
      to
      elect directors (a) of the Acquiring Corporation or (b) if applicable, the
      ultimate parent corporation that directly or indirectly has beneficial ownership
      of more than 50% of the combined voting power of the then outstanding voting
      securities eligible to elect directors of the Acquiring Corporation, or
      (ii) a liquidation or dissolution of the Company.

    

    (2)          
       "Potential
      Change in Control" means:

    

    (a) 
The
      Hershey Trust by action of any of the Board of Directors of Hershey Trust
      Company, the Board of Managers of Milton Hershey School, the Investment
      Committee of the Hershey Trust, and/or any of the officers of Hershey Trust
      Company or Milton Hershey School (acting with authority) undertakes
      consideration of any action the taking of which would lead to a Change in
      Control as defined herein, including, but not limited to consideration of (i)
      an
      offer made to the Hershey Trust to purchase any number of its shares in the
      Company such that if the Hershey Trust accepted such offer and sold such number
      of shares in the Company the Hershey Trust might no longer have more than 50%
      of
      the Outstanding Company Voting Power, (ii) an offering by the Hershey Trust
      of
      any number of its shares in the Company for sale such that if such sale were
      consummated the Hershey Trust might no longer have more than 50% of the
      Outstanding Company Voting Power or (iii) entering into any agreement or
      understanding with a person or entity that would lead to a Change in Control;
      or

    

    (b) 
The
      Board
      approves a transaction described in subsection (b), (c) or (d) of the definition
      of a Change in Control contained in Section 9.b(1).

    

    (3)        
       For
      purposes of this Section 9.b: (i) "Hershey Trust" means either or both of
      (a) the Hershey Trust Company, a Pennsylvania corporation, as Trustee for
      the Milton Hershey School, or any successor to the Hershey Trust Company as
      such
      trustee, and (b) the Milton Hershey School, a Pennsylvania not-for-profit
      corporation, (ii) "Exchange Act" shall mean the Securities Exchange Act of
      1934
      and the rules and regulations promulgated thereunder, (iii) "Person" shall
      have the meaning given in 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    Section
      3(a)(9) of the Exchange Act, as modified and used in Sections 13(d)(3) and
      14(d)
      thereof, and (iv) "Subsidiary" shall mean any corporation controlled by the
      Company, directly or indirectly.

     

     

    
      IN
        WITNESS WHEREOF, The Hershey Company has caused this Hershey Company Amended
        and
        Restated (2007), Supplemental Executive Retirement Plan to be adopted the
        3rd
        day of
        October, 2006.

      

      

      

      

      THE
        HERSHEY COMPANY

      

      

      

         
        By:  /s/
        Marcella K. Arline   

       
        Marcella K. Arline  

       
        Senior Vice President, Chief People Officer 

    

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        10Amended and Restated Deferred Comp Plan

    Exhibit
      10.2

     

    The
      Hershey Company

    Deferred
      Compensation Plan

    (Amended
      and Restated as of January 1, 2007)

    

    This
      Deferred Compensation Plan (the “Plan”) allows participants in the following
      programs of Hershey Foods Corporation’s Key Employee Incentive Plan (“KEIP”) to
      defer receipt of all or part of their awards: (1) cash awards under the Annual
      Incentive Program (the “AIP”), (2) the cash equivalent or Common Stock of The
      Hershey Company (the “Company”) representing performance stock unit (“PSU”)
      awards under the KEIP, and (3) awards of Common Stock of the Company pursuant
      to
      restricted stock unit (“RSU”) awards under the KEIP granted on or after January
      1, 2001. In addition, this Plan allows participants in The Hershey Company
      Amended and Restated (2007) Supplemental Executive Retirement Plan (the “SERP”)
      and The Hershey Company Compensation Limit Replacement Plan (the “CLRP”) to
      defer receipt of all or a portion of a lump sum cash payment payable under
      the
      SERP and CLRP. The Company may allocate Supplemental Core and Supplemental
      Match
      Contributions on behalf of eligible Plan Participants, and the Company may
      credit a specified percentage of Compensation for the benefit of certain Plan
      Participants under the Defined Contribution Supplemental Executive Retirement
      Plan (the “DC SERP”). The Plan is intended to benefit those executives of the
      Company and subsidiaries who are specified as participants in and receive awards
      under the KEIP, former participants of the SERP and CLRP, and Plan Participants
      with compensation in excess of Code section 401(a)(17), to secure their
      goodwill, loyalty and achievement, and to help attract and retain highly
      qualified executives.

     

    For
      Grandfathered Amounts, the terms of the Plan in effect on December 31, 2004
      and
      the requirements summarized in Appendix A of this Plan shall be followed in
      all
      respects. For amounts deferred or elected to be deferred on or after January
      1,
      2005 and before January 1, 2007, the terms of this Plan shall be followed in
      all
      respects. 

     

    Article I

    Definitions

     

    The
      following definitions apply to this Plan:

     

    1.1 
401(k)
      Plan.
“401(k)
      Plan” means The Hershey Company 401(k) Plan, formerly The Hershey Company
      Employee Savings Stock Investment and Ownership Plan, as in effect from time
      to
      time and any successor plan thereto.

     

    1.2 
Account.
      “Account” means a bookkeeping account established by the Company for each
      Participant under the Plan, which includes, but is not limited to, the following
      Sub-Accounts: (i) a Supplemental Core Contributions Sub-Account, (ii) a
      Supplemental Match Contributions Sub-Account, (iii) an AIP Awards Sub-Account,
      (iv) a PSU Awards Sub-Account, (v) an RSU Awards Sub-Account, (vi) a SERP
      Benefits Sub-Account, (vii) a CLRP Benefits Sub-Account, and (viii) a DC SERP
      Benefits Sub-Account.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.3 
AIP
      and AIP Awards.
      “AIP”
      means the Annual Incentive Program, and any similar or successor plan or
      program, of the KEIP, including annual incentives awarded under the Company’s
      Sales Incentive Program and any successor or replacement thereof and
“AIP
      Awards” means awards made to the Participant under the KEIP.

     

    1.4 
AIP
      Sub-Account.
“AIP
      Sub-Account” means a
      bookkeeping account established by the Company for each Participant electing
      to
      defer all or a portion of their AIP Awards.

     

    1.5            
       Board.
      “Board”
      or “Board of Directors” means the Board of Directors of the
      Company.

     

    1.6 
Change
      in Control.
“Change
      in Control” means a Change in Control as such term is defined under the
      Company’s Executive Benefits Protection Plan (Group 3A).

     

    1.7 
Committee
      or Compensation Committee.
      “Committee” or “Compensation Committee” means the Compensation and Executive
      Organization Committee of the Board or any successor committee having similar
      authority.

     

    1.8 
Company.
      “Company” means The Hershey Company, a Delaware corporation.

     

    1.9 
Company
      Common Stock or Common Stock.
      “Company Common Stock” or “Common Stock” means the common stock of the
      Company.

     

    1.10 
Compensation.
      “Compensation” means the sum of (i) base salary paid to a Participant during a
      calendar year and (ii) amounts awarded under the Company’s AIP, whether paid or
      deferred.

     

    1.11 
CLRP
      and CLRP Benefits.
“CLRP”
      means the Company’s Amended and Restated Compensation Limit Replacement Plan and
“CLRP Benefits” means amounts payable to a Participant under the CLRP that are
      deferred under this Plan.

     

    1.12 
CLRP
      Benefits Sub-Account.
“CLRP
      Benefits Sub-Account” means a bookkeeping account established by the Company for
      each Participant electing to defer all or a portion of their lump sum cash
      payment payable under the CLRP.

     

    1.13 
Core
      Retirement Contributions.
“Core
      Retirement Contributions” means contributions made by the Company on behalf of
      an employee who is eligible to receive such contributions under Section 5.2(g)
      of the 401(k) Plan.

     

    1.14 
DC
      SERP and DC SERP Benefits.
“DC
      SERP” means the Defined Contribution Supplemental Executive Retirement Plan as
      described under Article VI and “DC SERP Benefits” means amounts credited to a
      Participant’s DC SERP Sub-Account in accordance with Article VI.

     

    1.15 
DC
      SERP Benefits Sub-Account.
“DC
      SERP Benefits Sub-Account” means a bookkeeping account established by the
      Company for each Participant to which amounts are credited on behalf of the
      Participant under the DC SERP.

     

    
      
        2

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.16 
Determination
      Date.
      “Determination Date” means the last day of each calendar quarter or any other
      date specified by the Plan Administrator in its sole discretion.

     

    1.17 
Disabled
      or Disability.
      “Disabled” or “Disability” means Disabled as that term is defined under Section
      1.15 of The Hershey Company Retirement Plan, as in effect from time to time
      and
      any successor plan thereto.

     

    1.18 
EBPP.
“EBPP”
      means, with respect to a Participant, the Company’s Employee Benefits Protection
      Plan (Group 2), Executive Benefits Protection Plan (Group 3), Executive Benefits
      Protection Plan (Group 3A), or The Hershey Company Severance Benefits Plan
      for
      Salaried Employees as applicable to such Participant.

     

    1.19 
Grandfathered
      Amounts.
      “Grandfathered Amounts” mean amounts deferred under this Plan, if any, to which
      a Participant had a nonforfeitable right to receive as of December 31, 2004,
      plus subsequent investment credits. Grandfathered Amounts are subject to the
      terms of the Plan in effect on December 31, 2004 and the requirements set forth
      in Appendix A of this Plan. Grandfathered Amounts are exempt from the
      requirements under Code section 409A. 

     

    1.20 
Initial
      Deferral Election.
      “Initial Deferral Election” means an election to defer (i) AIP Awards, (ii) PSU
      Awards, (iii) RSU Awards, (iv) SERP Benefits, and (v) CLRP Benefits in
      accordance with the requirements set forth under Section 4.1. 

     

    1.21 
Investment
      Options.
      “Investment Options” means those investment options which are to be used as
      earnings indices as described in Section 2.1. Except as hereafter provided
      with respect to a Participant’s constructive investment in Company Common Stock:
      (a) the Investment Options are chosen by the Plan Administrator and are subject
      to change from time to time as the Plan Administrator, in its sole discretion,
      deems necessary or appropriate, and (b) no provision of this Plan shall be
      construed as giving any Participant an interest in any of these Investment
      Options nor shall any provision require that the Company make any investment
      in
      any such funds. Investment Options, other than the Company Common Stock
      Investment Option, may be added, modified or deleted from time to time in the
      discretion of the Plan Administrator; provided, however, that after the
      occurrence of a Change in Control, the Plan Administrator shall not alter any
      Investment Option in effect immediately prior to the Change in Control unless
      the Investment Options provided are substantially the same as those provided
      to
      participants in the Company’s tax-qualified retirement plan having the most
      investment options available for selection by participants.

     

    1.22 
KEIP.
“KEIP”
      means the Hershey Foods Corporation’s Key Employee Incentive Plan and any
      similar or successor plan or program.

     

    1.23 
Long
      Term Disability Plan.
“Long
      Term Disability Plan” means The Hershey Company Long Term Disability Plan and
      any similar or successor plan or program.

     

    1.24 
Participant.
      “Participant”
      means an employee of the Company who is eligible to participate in the KEIP
      and
      who meets the eligibility criteria for participation in this Plan established
      by
      the Plan Administrator from time to time.

     

    
      
        3

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.25 
Plan.
      “Plan”
      means The Hershey Company Deferred Compensation Plan as set forth herein and
      as
      amended from time to time.

     

    1.26 
Plan
      Administrator.
“Plan
      Administrator” means the Employee Benefits Committee of the Company, or any
      successor committee having similar authority, or such other individual or
      committee as may be determined by the Committee from time to time.

     

    1.27            
       Plan
      Year.
“Plan
      Year” means the calendar year.

     

    1.28 
PSU
      and PSU Award.
      “PSU”
      means performance stock units granted under the KEIP and “PSU Awards” means PSU
awards
      made to the Participant under the KEIP.

     

    1.29 
PSU
      Awards Sub-Account.
“PSU
      Awards Sub-Account” means a bookkeeping account established by the Company for
      each Participant electing to defer all or a portion of their PSU
      Awards.

     

    1.30 
Retirement
      Plan.
      “Retirement Plan” means The Hershey Company Retirement Plan, as in effect from
      time to time and any successor plan thereto.

     

    1.31            
       RSU
      and RSU Awards.
“RSU”
      means restricted stock units granted under the KEIP and “RSU Awards” means RSU
awards
      made to the Participant under the KEIP.

     

    1.32           
       RSU
      Awards Sub-Account.
“RSU
      Awards Sub-Account” means a bookkeeping account established by the Company for
      each Participant electing to defer all or a portion of their RSU
      Awards.

     

    1.33 
SERP
      and SERP Benefits.
“SERP”
      means The Hershey Company Amended and Restated (2007) Supplemental Executive
      Retirement Plan and “SERP Benefits” means amounts payable to a Participant under
      the SERP that are deferred under this Plan.

     

    1.34 
SERP
      Benefits Sub-Account.
      "SERP
      Benefits Sub-Account" means
      a
      bookkeeping account established by the Company for each Participant electing
      to
      defer all or a portion of their lump sum cash payment payable under the
      SERP.

     

    1.35 
Supplemental
      Core Contributions.
      “Supplemental Core Contributions” means amounts credited to a Participant’s
      Supplemental Core Contributions Sub-Account in accordance with Section
      3.1.

     

    1.36 
Supplemental
      Core Contributions Sub-Account.
      “Supplemental Core Contributions Sub-Account” means a bookkeeping account
      established by the Company for each Participant to which Supplemental Core
      Contributions are credited on behalf of the Participant.

     

    1.37 
Supplemental
      Match Contributions.
      “Supplemental Match Contributions” means amounts credited to a Participant’s
      Supplemental Match Contributions Sub-Account in accordance with Section
      3.2.

     

    
      
        4

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.38 
Supplemental
      Match Contributions Sub-Account.
      “Supplemental Match Contributions Sub-Account” means a bookkeeping account
      established by the Company for each Participant to which Supplemental Match
      Contributions are credited on behalf of the Participant.

     

    1.39 
Trust.
“Trust”
      means the trust described in Section 9.2.

     

    1.40 
Year
      of Service.
“Year
      of Service” means years of Vesting Service as that term is defined in Section
      1.59 of the 401(k) Plan. 

     

    Article II

    Account
      and Sub-Accounts

     

    2.1 
Account
      and Sub-Accounts.

     

    a. 
Establishment
      of Account and Sub-Accounts.
      Except
      as provided in Section 9.2, any amounts deferred by a Participant will not
      be
      funded or set aside for future payment by the Company. Instead, an Account
      with
      Sub-Accounts will be established to which (i) Supplemental Core Contributions,
      (ii) Supplemental Match Contributions, (iii) deferrals of AIP Awards, (iv)
      deferrals of PSU Awards, (v) deferrals of RSU Awards, (vi) SERP Benefits, (vii)
      CLRP Benefits, and (viii) DC SERP Benefits shall be credited to each respective
      Sub-Account, along with investment credits as provided in paragraph c. below.
      

     

    b. 
Participants
      as
      Unsecured Creditors.
      A
      Participant’s entitlement to receive the amount reflected by his or her
      Sub-Accounts, to the extent vested, will be based solely on an unfunded
      unsecured unconditional promise to pay by the Company that is not
      assignable.

     

    c. 
Investment
      Credits to Sub-Accounts.
      Subject
      to such limitations as may from time to time be required by law, imposed by
      the
      Plan Administrator or as set forth in paragraph (6) below, and subject to such
      operating rules and procedures as may be imposed from time to time by the Plan
      Administrator, each Participant may express to the Plan Administrator a
      preference as to how the Participant’s Accounts should be constructively
      invested among the Investment Options; provided that, following a Change in
      Control, any such preference expressed by a Participant (whether such preference
      is expressed prior to, or following, a Change in Control) shall be binding
      upon
      the Plan Administrator. Such preference shall designate the percentage of the
      Participant’s Accounts which is requested to be constructively invested in each
      Investment Option.

     

    (1) 
Any
      initial or subsequent expression of investment preference shall be in writing
      on
      a form supplied by and filed with the Plan Administrator or in any other form
      as
      determined by the Plan Administrator from time to time in its sole discretion.
      Participants may change their investment preferences effective as of the
      beginning of each Plan Year, or more frequently if permitted in the discretion
      of the Plan Administrator; provided, however, that following a Change in
      Control, Participants shall be permitted to change their investment preferences
      at least as frequently as they could under procedures in effect immediately
      prior to the Change in Control.

     

    
      
        5

      

      
        
        

        
          

        

      

      
        
        

      

    

    (2) 
Except
      as
      set forth above following a Change in Control, all investment preferences shall
      be advisory only and shall not bind the Company or the Plan Administrator and
      the Company shall not be obligated to invest any funds in connection with this
      Plan. If, however, the Company chooses to invest any amount to provide for
      its
      liabilities under this Plan, the Plan Administrator shall have complete
      discretion as to investments and no Participant shall have any claim on such
      investments as a fund to provide benefits hereunder.

     

    (3) 
From
      time
      to time, but not less frequently than each Determination Date, the Plan
      Administrator shall allocate the net earnings or losses of the Plan since the
      preceding Determination Date among the Accounts of Participants, and to the
      extent a Participant’s Investment Option preferences are honored by the Plan
      Administrator, such net earnings or losses shall be allocated as though the
      Accounts had been invested in the Investment Option in accordance with the
      Participant’s indicated preference. The “net earnings or losses” of the Plan
      shall be equal to the net increase or net decrease (taking into account any
      constructive dividends or interest thereon), as the case may be, in the value
      of
      a Participant’s Accounts since the last Determination Date in accordance with
      the Participant’s investment preferences or other such allocation of such net
      increase or net decrease in the value of funds constructively invested by the
      Plan Administrator and allocated to the Accounts of Participants
      hereunder.

     

    (4) 
If
      the
      Plan Administrator receives an initial or revised investment preference which
      it
      deems to be incomplete, unclear or improper, the Participant’s investment
      preference then in effect shall remain in effect (or, in the case of a
      deficiency in an initial investment preference, the Participant shall be deemed
      to have filed no investment preference) until the beginning of the next Plan
      Year, unless the Plan Administrator provides for, and permits the application
      of, corrective action prior thereto. If a Participant fails to file an effective
      investment preference, the Participant’s Accounts will be constructively
      invested in the Investment Option designated by the Plan Administrator from
      time
      to time as a default Investment Option.

     

    (5) 
If
      the
      Plan Administrator determines that the constructive value of an Account as
      of
      any date on which distributions are to be made differs materially from the
      constructive value of the Account on the prior Determination Date upon which
      the
      distribution is to be based, the Plan Administrator, in its discretion, shall
      have the right to designate any date in the interim as a Determination Date
      for
      the purpose of constructively revaluing the Account so that the Account from
      which the distribution is being made will, prior to the distribution, reflect
      its share of such material difference in value. Similarly, the Plan
      Administrator may adopt a policy of providing for regular interim valuations
      without regard to the materiality of changes in the value of the
      Accounts.

     

    (6)              
      Notwithstanding the foregoing provisions of this paragraph 2.1.c. to the
      contrary, (i) prior to a Change in Control, that portion of all deferred PSUs
      that is payable in Company Common Stock under the KEIP and all deferred RSUs
      shall be constructively invested in Company Common Stock, (ii) the Participant’s
      Accounts shall be credited from time to time with the amount of any dividends
      declared and paid on such Company Common Stock, and shall be adjusted in
      connection with any stock dividend, split, reorganization, liquidation or other
      event which affects the number of shares of Common Stock represented by such
      PSUs and RSUs, and (iii) no other amounts deferred under this Plan shall be
      constructively invested in 

     

    
      
        6

      

      
        
        

        
          

        

      

      
        
        

      

    

    Company
      Common Stock. Following a Change in Control, no amounts deferred under this
      Plan
      shall be required to be constructively invested in Company Common
      Stock.

     

    d. 
Statement
      of Account and Sub-Accounts.
      Within
      a reasonable time after the end of each Plan Year, the Plan Administrator shall
      submit to each Participant a statement of the balance in his or her Account,
      including his or her Sub-Accounts; provided, however, that following a Change
      in
      Control, such statement of Account and Sub-Accounts shall be provided on at
      least a quarterly basis.

     

    Article
      III

    Supplemental
      Core and Supplemental Match Contributions

    

    3.1 
Supplemental
      Core Contributions.
      

    

    a. 
Each
      Plan
      Year, for a Participant who (i) is eligible to receive Core Retirement
      Contributions under Section 5.2(g) of the 401(k) Plan and (ii) defers to this
      Plan AIP Awards, the Company shall credit to such Participant’s Supplemental
      Core Contributions Sub-Account an amount equal to three percent (3%) of those
      deferred amounts as soon as administratively practicable following the last
      day
      of the Plan Year.

    

    b. 
Each
      Plan
      Year, for a Participant who is eligible to receive Core Retirement Contributions
      under Section 5.2(g) of the 401(k) Plan, the Company shall credit to such
      Participant’s Supplemental Core Contributions Sub-Account an amount equal to
      three percent (3%) of the excess of (1) plus (2) less (3), where (1), (2),
      and
      (3) are determined as follows:

    

    (1) 
Compensation
      as defined under Section 1.14 of the 401(k) Plan, other than AIP Awards and
      without application of the limitation under Code section 401(a)(17) (indexed
      for
      inflation); 

    

    (2) 
Amounts
      awarded under the AIP that are not deferred under this Plan; 

    

    (3) 
The
      limit
      under Code section 401(a)(17) (indexed for inflation). 

    

    Such
      amount shall be credited to a Participant’s Supplemental Core Contributions
      Sub-Account as soon as administratively practicable following the last day
      of
      the Plan Year. 

    

    c. 
If
      a
      Participant becomes Disabled, such Participant shall continue to be credited
      with Supplemental Core Contributions in accordance with this Section 3.1 until
      the earlier of (i) two (2) years from the date benefits commence under the
      Company’s Long Term Disability Plan or (ii) the date he or she is no longer
      eligible for such long-term disability benefits, based on the amount of
      Compensation that was payable to the Participant at the time of Disability.
      

    

    
      
        7

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    3.2 
Supplemental
      Match Contributions.
      

    

    a. 
Each
      Plan
      Year, for a Participant who defers Compensation under the 401(k) Plan equal
      to
      (i) the maximum deferral percentage as permitted by the plan administrator
      under
      the 401(k) Plan or (ii) the maximum contribution limit under Code section 402(g)
      (indexed for inflation), the Company shall credit to such Participant’s
      Supplemental Match Contributions Sub-Account an amount equal to four and
      one-half percent (4-1/2%) of those amounts awarded under the AIP that are
      deferred under this Plan as soon as administratively practicable following
      the
      last day of the Plan Year.

    

    b. 
Each
      Plan
      Year, for a Participant who defers Compensation under the 401(k) Plan equal
      to
      (i) the maximum deferral percentage as permitted by the plan administrator
      under
      the 401(k) Plan or (ii) the maximum contribution limit under Code section 402(g)
      (indexed for inflation), the Company shall credit to such Participant’s
      Supplemental Match Contributions Sub-Account an amount equal to four and
      one-half percent (4-1/2%) of (1) plus (2) less (3), where (1), (2), and (3)
      are
      determined as follows:

    

    (1) 
Compensation
      as defined under Section 1.14 of the 401(k) Plan, other than AIP Awards and
      without application of the limitation under Code section 401(a)(17) (indexed
      for
      inflation); 

    

    (2) 
Amounts
      awarded under the AIP that are not deferred under this Plan; 

    

    (3) 
The
      limit
      under Code section 401(a)(17) (indexed for inflation).

    

    Such
      amount shall be credited to a Participant’s Supplemental Match Contributions
      Sub-Account as soon as administratively practicable following the last day
      of
      the Plan Year. 

    

    3.3 
Time
      and Form of Distribution.
      

    

    a. 
Nonelective
      Initial Deferral.
      Amounts
      held in a Participant's Supplemental Core Contributions Sub-Account and
      Supplemental Match Contributions Sub-Account shall be payable in a lump sum
      cash
      payment within ninety (90) days following the earlier of a Separation from
      Service, subject to the requirements under Section 5.2.b., or death, subject
      to
      the requirements under Section 5.2.c. 

    

    b. 
Distribution
      Upon Disability.
      Notwithstanding Section 3.3.a., if a Separation from Service is caused by a
      Participant becoming Disabled, amounts held in a Participant’s Supplemental Core
      Contributions Sub-Account and Supplemental Match Contributions Sub-Account
      shall
      be payable in a lump sum cash payment two (2) years following the date benefits
      commence under the Company’s Long Term Disability Plan. 

    

    
      
        8

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    c. 
Change
      in Time and Form of Distribution.
      A
      Participant may make a subsequent election to change the time or form of the
      distribution of his or her Supplemental Core Contributions Sub-Account and
      Supplemental Match Contribution Sub-Account as specified in Section 3.3.a.
      in
      accordance with Section 4.2.b., but only if the requirements of Section 4.2.a.
      are satisfied. A distribution of a Participant’s Supplemental Core Contributions
      Sub-Account and Supplemental Match Contribution Sub-Account subject to a
      subsequent deferral election under this Section 3.3.c. shall be made within
      ninety (90) days following the occurrence of the Participant’s distributable
      event. Notwithstanding a subsequent deferral election made under this Section
      3.3.c., in the case of death, a distribution will be made in accordance with
      Section 5.2.c. 

    

    3.4 
Vesting.
      A
      Participant shall be one hundred percent (100%) vested in his or her
      Supplemental Core Contributions Sub-Account and Supplemental Match Contributions
      Sub-Account after completing three (3) Years of Service with the Company.
      Notwithstanding the preceding sentence, if a Participant dies or becomes
      Disabled, such Participant shall be one hundred percent (100%) vested in his
      or
      her Supplemental Core Contributions Sub-Account and Supplemental Match
      Contributions Sub-Account. 

    

    Article
      IV

    Elections
      to Defer

    

    4.1 
Initial
      Deferral Election.

     

       
      a. 
AIP
      Awards.
      A
      Participant may elect under the Plan to defer receipt of all or a portion of
      his
      or her anticipated bonus under the AIP, but such election must be made no later
      than June 30 of the calendar year in which the bonus is earned. Such AIP Awards
      shall be credited to a Participant’s AIP Award Sub-Account as soon as
      administratively practicable following the last day of the Plan
      Year.

     

    b. 
PSU
      Awards.
      A
      Participant may elect under the Plan to defer receipt of all or a portion of
      the
      cash or Company Common Stock amount earned as a PSU Award by a date specified
      by
      the Plan Administrator in its sole discretion, but such election must be made
      no
      later than June 30 of the calendar year in which the performance period for
      such
      PSU Award ends. Such PSU Awards shall be credited to a Participant’s PSU Award
      Sub-Account as soon as administratively practicable following the last day
      of
      the Plan Year.

     

    c. 
RSU
      Awards.
      A
      Participant may elect under the Plan to defer receipt of all or a portion of
      the
      Company Common Stock amount earned as an RSU Award, but such election must
      be
      made no later than thirty (30) days after the date of grant, provided the
      election is also made at least 12 months in advance of the vesting date. Upon
      the occurrence of a Change in Control, all restrictions on a Participant’s RSU
      Award shall lapse pursuant
      to the terms of the KEIP. Such RSU Award shall be credited to a Participant’s
      RSU Award Sub-Account as soon as administratively practicable following the
      last
      day of the Plan Year.

     

    

    
      
        9

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    d. 
SERP
      Benefits.
      A
      Participant may elect to defer all or a portion of the lump sum cash payment
      payable under the SERP, provided the election is made at least twelve (12)
      months before such amounts are payable under the SERP. A distribution of SERP
      Benefits under this Plan may not be made earlier than at least five (5) years
      from the date the distribution would have been made but for the Participant’s
      election to defer such amounts under this Plan. Such SERP Benefits shall be
      credited to a Participant’s SERP Benefits Sub-Account as soon as
      administratively practicable following the date a distribution under the SERP
      would have otherwise been made.

     

    e. 
CLRP
      Benefits.
      A
      Participant may elect to defer all or a portion of the lump sum cash payment
      payable under the CLRP, provided the election is made at least twelve (12)
      months before such amounts are payable under the CLRP. A distribution of CLRP
      Benefits under this Plan may not be made earlier than at least five (5) years
      from the date the distribution would have been made but for the Participant’s
      election to defer such amounts under this Plan. Such CLRP Benefits shall be
      credited to a Participant’s CLRP Benefits Sub-Account as soon as
      administratively practicable following the date a distribution under the CLRP
      would have otherwise been made.

     

        
      f.        Any
      deferral election under this Section 4.1:

     

    (1) 
Must
      specify:

     

    (i) 
The
      time
      of distribution under one of the distributable events set forth under Sections
      5.2.a and 5.2.b.; and 

     

    (ii) 
The
      form
      of distribution set forth under Section 5.1.

     

    (2) 
Shall
      be
      irrevocable, except as otherwise provided in this Plan; and

     

    (3) 
Shall
      be
      made on a form supplied by the Plan Administrator. 

     

    4.2 
Changes
      in Time and Form of Distribution.
      

     

    a. 
A
      Participant may make a subsequent election to change the time or form of
      distribution specified in Sections 3.3.a., 4.1, and 6.3.a., but only if the
      following conditions are satisfied:

     

    (1) 
The
      election may not take effect until at least twelve (12) months after the date
      on
      which the election is made;

    

    (2) 
In
      the
      case of an election to change the time and form of a distribution under Sections
      5.2.a, 5.2.b, and 5.2.e a distribution may not be made earlier than at least
      five (5) years from the date the distribution would have otherwise been made;
      

    

    (3) 
The
      election must be made at least twelve (12) months before the date of the first
      scheduled distribution; and

    

    
      
        10

      

      
        
        

        
          

        

      

      
        
        

      

    

    (4) 
The
      election may not result in an impermissible acceleration of payment prohibited
      under Code section 409A. If
      the
      Plan Administrator, in its sole discretion, determines that a change in the
      time
      or form of distribution will result in an impermissible acceleration, the Plan
      Administrator reserves the right to refuse to honor the change.

     

    b. 
A
      Participant may change the time and form of distribution specified in Sections
      3.3.a., 4.1, and 6.3.a. to a (i) form of distribution set forth in Section
      5.1.a. and/or (ii) distributable event described in Sections 5.2.a. and 5.2.b.
       

     

    Article
      V

    Distribution
      of Deferrals

     

    The
      provisions of this Article V shall apply only to amounts subject to Code section
      409A. Distribution rules applicable to Grandfathered
      Amounts
      are
      summarized in Appendix A of this Plan.

    

    5.1   
Forms
      of Distribution.
      

     

    a. 
A
      Participant may elect to receive his or her (i) AIP Awards, (ii) PSU Awards,
      (iii) RSU Awards, (iv) SERP Benefits, and (v) CLRP Benefits in:

     

    (1) 
A
      lump
      sum payment; or

     

    (2) 
Substantially
      equal annual installment payments up to fifteen (15) years. 

     

    All
      amounts of a Participant’s Account constructively invested in Company Common
      Stock shall be distributed in the form of Company Common Stock, except in the
      event a Change in Control occurs, in which case amounts constructively invested
      in Company Common Stock shall be dealt with in accordance with the terms of
      the
      EBPP applicable to such Participant. All other amounts shall be distributed
      in
      cash.

     

    b. 
(1) 
Effective
      for distributions made under this Plan before April 1, 2007, such distributions
      shall be made as soon as administratively practicable during the first calendar
      quarter of the calendar year following the occurrence of a distributable event
      set forth under Sections 5.2.a and 5.2.b. 

     

    (2) 
Effective
      for distributions made under this Plan on or after April 1, 2007, such
      distributions shall be made within ninety (90) days following the occurrence
      of
      a distributable event set forth under Sections 5.2.a. and 5.2.b.

     

    c. 
Notwithstanding
      the distribution form elected under Section 5.1.a., if a Participant’s Account
      balance is less than $10,000 upon the occurrence of a distributable event set
      forth under Sections 5.2.a. and 5.2.b, the full Account balance shall be
      distributed in a lump sum payment within ninety (90) days following the
      occurrence of a distributable event set forth under Sections 5.2.a. and
      5.2.b.

     

    
      
        11

      

      
        
        

        
          

        

      

      
        
        

      

    

    5.2 
Permissible
      Distributable Events.
      A
      Participant may designate in his or her Initial Election to Defer under Section
      4.1 to receive a distribution:

     

    a. 
As
      of a
      specified date or time, but such date or time may not be later than the Plan
      Year following the calendar year in which the Participant attains age
      70.

     

    b. 
Upon
      a
      Separation From Service.

     

    (1) 
In
      the
      case of a Separation from Service of a Key Employee, a distribution may not
      be
      made before the date which is six (6) months after the date of the Key
      Employee’s Separation from Service (or, if earlier, the date of death of the Key
      Employee) (hereinafter called the "Waiting Period"). Upon completion of the
      Waiting Period, a distribution shall be made in accordance with Section 5.1.b.
      or as soon as administratively practicable following the completion of the
      Waiting Period.

     

    (2) 
During
      the Waiting Period, a Key Employee’s Account will continue to accrue investment
      credits in accordance with Section 2.1.c. 

     

    (3) 
For
      purposes of this Section 5.2.b.: 

     

    (i) 
Key
      Employee means a "specified employee" under Code section 409A(a)(2)(B)(i) (i.e.,
      a key employee (as defined under Code section 416(i) (without regard to
      paragraph (5) thereof) of a corporation any stock in which is publicly traded
      on
      an established securities market or otherwise) and applicable Treasury
      regulations and other guidance under Code section 409A. 

     

    (ii) 
Separation
      from Service means a termination of employment within the meaning of Code
      section 409A and applicable Treasury regulations and other guidance under Code
      section 409A.

     

      
      c. 
Distribution
      Upon Death.
      Notwithstanding any provision in the Plan to the contrary, if a Participant
      dies, the unpaid portion of such Participant’s Account balance shall be
      distributed to the Participant’s beneficiary, or in the absence of a
      beneficiary, to the Participant’s estate in an immediate lump sum payment as
      soon as administratively practicable following the date of death. A Participant
      may designate or change his or her beneficiary (without the consent of any
      prior
      beneficiary) on a form provided by the Plan Administrator and delivered to
      the
      Plan Administrator before the Participant’s death.

    

      
      d. 
Withdrawals
      for Unforeseeable Emergency.
      The
      Plan Administrator may, in its sole discretion, permit a Participant to withdraw
      all or a portion of his or her AIP Sub-Account or the cash portion of his or
      her
      PSU Sub-Account in the event of demonstrated Unforeseeable Emergency. The
      amounts distributed with respect to an Unforeseeable Emergency may not exceed
      the amounts necessary to satisfy such Unforeseeable Emergency, after taking
      into
      account the extent to which such hardship is or may be relieved through
      reimbursement or compensation by insurance or otherwise or by liquidation of
      the
      Participant’s assets (to the extent the liquidation of such assets would not
      itself cause severe financial hardship). An Unforeseeable Emergency shall mean
      a
      severe financial hardship of a Participant resulting from an illness or accident
      of the Participant, the Participant’s spouse, or a dependent

     

    
      
        12

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     (as
      defined in Code section 152(a)) of the Participant, loss of the Participant’s
      property due to casualty, or other similar extraordinary and unforeseeable
      circumstances arising as a result of events beyond the control of the
      Participant. A Participant seeking a withdrawal on account of an Unforeseeable
      Emergency must request a hearing with the Plan Administrator. If the Plan
      Administrator renders a decision in favor of permitting a withdrawal for an
      Unforeseeable Emergency, such amounts shall be payable to the Participant as
      soon as administratively practicable following such decision. 

     

      
      e. 
Distribution
      Upon a Change in Control.
      Notwithstanding any provision in the Plan to the contrary, a Participant’s
      Account balance under the Plan shall be distributed in an immediate lump sum
      payment on the later of (i) the first day of January of the year following
      the year in which both a Change in Control and Change in Control Event occurs
      and (ii) the one hundred twentieth (120th) day following the occurrence of
      both a Change in Control and Change in Control Event. For the purposes of this
      Section 5.2.e., a Change in Control Event means a Change in Control Event as
      defined under Code section 409A and applicable guidance thereunder.

    

    5.3 
Withholding.
      Any
      payments made pursuant to Articles III, V, or VI shall be subject to
      appropriate federal, state or local income tax withholdings. With respect to
      any
      withholdings required on a distribution of Company Common Stock, the Company
      will first withhold from the cash equivalent of dividends on such Company Common
      Stock and interest earned on such cash equivalent that are payable to the
      Participant on the date of distribution, and if such withholdings are
      insufficient, then the Company will withhold from such distribution such number
      of shares of Company Common Stock having a fair market value (as defined in
      the
      KEIP) equal to the amount required to satisfy the remaining withholding tax
      obligation, unless the Participant elects to (i) deposit with the Company such
      amount of cash or (ii) direct the Company to withhold cash from other amounts
      then distributed under this Plan to satisfy such withholding tax obligation.
      

    

    Article
      VI

    DC
      SERP

    

    6.1 
Eligibility.
      An
      individual will be eligible to become a Participant in this Plan and receive
      DC
      SERP Benefits in accordance with this Article VI if the individual is selected
      by the Compensation Committee in its sole discretion. 

    

    6.2             
       Benefits.
      A
      Participant meeting the eligibility requirements under Section 6.1 shall receive
      DC SERP Benefits in an amount equal to a percentage of Compensation determined
      by the Compensation Committee in its sole discretion. Such DC SERP Benefits
      shall be credited to a Participant’s DC SERP Benefits Sub-Account as soon as
      administratively practicable following the last day of the Plan Year. If a
      Participant becomes Disabled, such Participant shall continue to be credited
      with DC SERP Benefits in accordance with this Section 6.2 until the earlier
      of
      (i) two (2) years from the date benefits commence under the Company’s Long Term
      Disability Plan or (ii) the date he or she is no longer eligible for such
      long-term disability benefits, based on the amount of Compensation that was
      payable to the Participant at the time of Disability.

    

    
      
        13

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.3            
       Time
      and Form of Benefit.
      

    

       
      a.  
Nonelective
      Initial Deferral.
      Amounts
      held in a Participant's DC SERP Benefits Sub-Account shall be payable in a
      lump
      sum cash payment within ninety (90) days following the earlier of a Separation
      from Service, subject to the requirements under Section 5.2.b., or death,
      subject to the requirements under Section 5.2.c. 

    

      
      b. 
Distribution
      Upon Disability.
      Notwithstanding Section 6.3.a., if a Separation from Service is caused by a
      Participant becoming Disabled, amounts held in a Participant's DC SERP Benefits
      Sub-Account shall be payable in a lump sum cash payment two (2) years following
      the date benefits commence under the Company’s Long Term Disability
      Plan.

    

      
      c. 
Change
      in Time and Form of Distribution.
      A
      Participant may make a subsequent election to change the time or form of the
      distribution of his or her DC SERP Benefits Sub-Account as specified in Section
      6.3.a. in accordance with Section 4.2.b., but only if the requirements of
      Section 4.2.a. are satisfied. A distribution of a Participant’s DC SERP
      Sub-Account subject to a subsequent deferral election under this Section 6.3.c.
      shall be made within ninety (90) days following the occurrence of a
      distributable event set forth under Sections 5.2.a and 5.2.b. Notwithstanding
      a
      subsequent deferral election made under this Section 6.3.c., in the case of
      death, a distribution will be made in accordance with Section
      5.2.c.

    

    Article
      VII

     Plan
      Administrator

     

    7.1 
Plan
      Administrator Duties.
      The
      Plan Administrator shall administer this Plan. All members of the committee
      comprising the Plan Administrator may be Participants. A member of the committee
      comprising the Plan Administrator who is a Participant may not vote on matters
      affecting his or her personal benefit under this Plan, but any such individual
      shall otherwise be fully entitled to act in matters arising out of or affecting
      this Plan notwithstanding his or her participation herein. The Plan
      Administrator shall have the authority to make, amend, interpret, and enforce
      all appropriate rules and regulations for the administration of this Plan and
      decide or resolve any and all questions, including interpretations of this
      Plan,
      as may arise in connection with the Plan.

     

    7.2 
Agents.
      In the
      administration of this Plan, the Plan Administrator may, from time to time,
      employ agents and delegate to them or to others (including employees of the
      Company) such administrative duties as it sees fit. The Plan Administrator
      may
      from time to time consult with counsel, who may be counsel to the
      Company.

     

    7.3 
Binding
      Effect of Decisions.
      In
      carrying out its duties herein, the Plan Administrator (or its designee) shall
      have full discretion to exercise all powers and to make all determinations,
      consistent with the terms of the Plan, in all matters entrusted to it, and
      its
      determinations shall be final and binding on all parties.

     

    7.4 
Indemnity.
      The
      Company shall indemnify and hold harmless the Plan Administrator and any
      employees to whom administrative duties under this Plan are delegated,

     

    
      
        14

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    against
      any and all claims, loss, damage, expense, or liability arising from any action
      or failure to act with respect to this Plan, except in the case of willful
      misconduct.

     

    Article
      VIII

    Amendment
      and Termination

     

    8.1 
Amendment.
      The
      Committee may at any time amend the Plan in whole or in part. However, no
      amendment shall be effective to decrease or restrict any then existing Account
      or to change the Company’s obligations under any then existing Initial Deferral
      Election or as otherwise may be provided in an agreement entered into between
      the Company and the Participant prior to the date of such Initial Deferral
      Election or the Company’s Executive Benefits Protection Plan (or any similar or
      successor plan or program). After the occurrence of a Change in Control, no
      amendment shall be made to this Plan that would adversely affect the rights
      of
      any Participant without the consent of such Participant, except for such changes
      that the Committee reasonably determines, upon the advice of nationally
      recognized tax counsel, are necessary to fulfill the intent of the Plan to
      defer
      federal income taxation of Participants’ Accounts until such Accounts are paid
      in accordance with the terms of the Plan.

     

    8.2 
Board’s
      Right to Terminate.
      The
      Board may at any time terminate the Plan in its entirety, in which event no
      new
      Initial Deferral Elections shall be made, but the obligations of the Company
      under this Plan and under existing Initial Deferral Elections and Account
      balances shall continue.

     

    8.3 
No
      Material Modification.
      Notwithstanding the foregoing, no amendment of the Plan shall apply to
      Grandfathered Amounts, unless the amendment specifically provides that it
      applies to such amounts. The purpose of this restriction is to prevent a Plan
      amendment from resulting in an inadvertent “material modification” to
      Grandfathered Amounts.

     

    Article
      IX

    Miscellaneous

     

    9.1 
Unfunded
      Plan.
      This
      Plan is intended to be an “unfunded” plan maintained primarily to provide
      deferred compensation for a “select group of management or highly compensated
      employees” within the meaning of the Employee Retirement Income Security Act of
      1974, as amended, and shall be so construed.

     

    9.2 
Rabbi
      Trust.
      The
      Company shall establish promptly a revocable trust to hold assets, subject
      to
      the claims of the Company’s creditors in the event of the Company’s insolvency,
      for the purpose of the payment of the benefits hereunder, which shall become
      irrevocable upon a Change in Control. The Company shall contribute to the Trust
      cash in such amounts and at such times as are specified in this Plan and in
      the
      applicable trust agreement. Upon the occurrence of a Change in Control, the
      Company shall contribute to a separate Trust account maintained for each
      Participant under the Trust, in cash, an amount equal to 100% of the value
      of
      each such Participant’s Account, less any amount credited to such Participant’s
      Trust account as of the date of such contribution. Amounts paid to Participants
      from the Trust shall discharge the obligations of the Company hereunder to
      the
      Participants to the extent of the payments so made. 

     

    
      
        15

      

      
        
        

        
          

        

      

      
        
        

      

    

    9.3 
Unsecured
      General Creditor.
      This
      Plan is unfunded. Benefits shall be paid from the Company’s general assets.
      Participants and their beneficiaries, heirs, successors, and assigns shall
      have
      no legal or equitable rights, interest or claims in any property or assets
      owned
      or which may be acquired by the Company. Such assets of the Company shall not
      be
      held under any trust for the benefit of Participants, their beneficiaries,
      heirs, successors or assigns, or held in any way as collateral security against
      the obligations of the Company under this Plan. The Company’s obligation under
      the Plan shall be that of an unfunded and unsecured promise of the Company
      to
      pay money in the future. The Company in its sole discretion, may, however,
      elect
      to provide for its liabilities under this Plan through a trust or funding
      vehicle, provided, however, that the terms of any such trust or funding vehicle
      shall not alter the status of Participants and beneficiaries as mere general
      unsecured creditors of the Company or otherwise cause the Plan to be funded
      or
      benefits taxable to Participants except upon actual receipt.

     

    9.4 
Nonassignability.
      Neither
      a Participant nor any other person shall have any right to commute, sell,
      assign, transfer, pledge, anticipate, mortgage, or otherwise encumber, transfer,
      hypothecate, or convey in advance of actual receipt the amounts, if any, payable
      hereunder, or any part thereof. The rights to all such amounts are expressly
      declared to be unassignable and non-transferable. No part of the amounts payable
      shall, prior to actual payment, be subject to seizure or sequestration for
      the
      payment of any debts, judgments, alimony, or separate maintenance owed by
      Participants or any other person, nor be transferable by operation of law in
      the
      event of a Participant’s or any other person’s bankruptcy or insolvency, except
      as required by law.

     

    9.5 
Domestic
      Relations Orders.
      Notwithstanding Section 9.4, all or a portion of a Participant’s Account may be
      paid to another person as specified in a domestic relations order that the
      Plan
      Administrator in its sole discretion determines is qualified (a “Qualified
      Domestic Relations Order”). For this purpose, a Qualified Domestic Relations
      Order means a judgment, decree, or order (including the approval of a settlement
      agreement) which is:

    

       
      (a)  
Issued
      pursuant to a State’s domestic relations law;

    

       
      (b)  
Relates
      to the provision of child support, alimony payments or marital property rights
      to a spouse, former spouse, child or other dependent of the Participant;

    

       
      (c)  
Creates
      or recognizes the right of a spouse, former spouse, child or other dependent
      of
      the Participant to receive all or a portion of the Participant’s benefits under
      the Plan;

    

       
      (d)  
Provides
      for payment in an immediate lump sum as soon as practicable after the Company
      determines that a Qualified Domestic Relations Order exists; and

    

    
      	  	
              (e)
                

            	
              Meets
                such other requirements established by the Plan Administrator.
                

            

    

    

    The
      Plan
      Administrator in its sole discretion shall determine whether any document
      received by it is a Qualified Domestic Relations Order. In making this
      determination, the Plan Administrator may consider the rules applicable to
      “domestic relations orders” under Code section 414(p) and ERISA section 206(d),
      and such other rules and procedures as it deems 

     

    
      
        16

      

      
        
        

        
          

        

      

      
        
        

      

    

    relevant.
      If
      an
      order is determined to be a Qualified Domestic Relations Order, the amount
      to
      which the other person is entitled under the Order shall be paid in a single
      lump sum payment as soon as administratively practicable after such
      determination.

     

    9.6 
Not
      a
      Contract of Employment.
      The
      terms and conditions of this Plan shall not be deemed to constitute a contract
      of employment between the Company and a Participant, and a Participant shall
      have no rights against the Company except as may otherwise be specifically
      provided herein. Moreover, nothing in the Plan shall be deemed to give a
      Participant the right to be retained in the service of the Company or to
      interfere with the right of the Company to discipline or discharge an employee
      at any time. This foregoing provisions of this Section 9.6 to the contrary
      notwithstanding, this Plan shall not diminish any rights or increase any
      obligations of a Participant or the Company under any employment agreement
      entered into by the Participant and the Company prior to such Participant’s
      Deferral Election, or after such Deferral Election to the extent that such
      employment agreement specifically provides that it shall supersede any
      inconsistency with the terms of this Plan.

     

    9.7 
Forfeiture
      of Benefits.
      If a
      Participant’s employment is terminated because of willful misfeasance or gross
      negligence in the performance of his or her duties, his or her right to benefits
      under this Plan shall be forfeited in the discretion of (i) the Committee,
      in
      the case of officers covered by Section 16(b) of the Securities and Exchange
      Act
      of 1934 or (ii) the Plan Administrator, in the case of all other Participants,
      and the Company shall have no further obligation hereunder to such Participant
      or his or her beneficiary(ies); provided, however, that notwithstanding any
      provision of the Plan, upon a Change in Control, a Participant’s AIP Awards, PSU
      Awards, RSU Awards, SERP Benefits, and CLRP Benefits deferred under the Plan
      (together, the “Deferred Benefits”) shall vest and be payable pursuant to the
      provisions of Sections 2.1, 2.2 and 2.5 of the EBPP applicable to such
      Participant and Section 7.IV(b) of the KEIP, respectively, and such vested
      Deferred Benefits shall not be subject to forfeiture under this Section 9.7.
      If
      a Participant is not a participant under any EBPP or the KEIP, upon a Change
      in
      Control, Sections 2.1, 2.2 and 2.5 of the Employee Benefits Protection Plan
      (Group 2) and Section 7.IV(b) of the KEIP shall nevertheless apply to the
      Participant’s Deferred Benefits and such Deferred Benefits shall not be subject
      to forfeiture under this Section 9.7.

     

    9.8 
Terms.
      Use of
      the masculine, feminine and neuter pronouns in this Plan are intended to be
      interchangeable and use of the singular will include the plural, unless the
      context clearly indicates otherwise.

     

    9.9 
Captions.
      The
      captions of the articles, sections and paragraphs of this Plan are for
      convenience only and shall not control or affect the meaning or construction
      of
      any of its provisions.

     

    9.10           
      Governing
      Law.
      This
      Plan shall be governed by the laws of the United States and, to the extent
      not
      preempted thereby, the laws of Pennsylvania; provided, however, that after
      a
      Change in Control, any court or tribunal that adjudicates any dispute,
      controversy or claim arising between the Participants and the Committee, Plan
      Administrator, Company or any of their delegates or successors, relating to
      or
      concerning the provisions of this Plan, will apply a de novo
      standard
      of review to any determinations made by such person. Such de novo
      standard

     

    
      
        17

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    shall
      apply notwithstanding the grant of full discretion hereunder to any such person
      or characterization of any decision by such person as final, binding or
      conclusive on any party.

     

    9.11 
Validity.
      The
      illegality or invalidity of any provision of this Plan shall not affect its
      remaining parts, but this Plan shall be construed and enforced without such
      illegal or invalid provisions.

     

    9.12 
Notice.
      Any
      notice or filing required or permitted to be given to the Plan Administrator
      under the Plan shall be sufficient if in writing and hand delivered, or sent
      by
      registered or certified mail, to:

     

    Employee
      Benefits Committee

    The
      Hershey Company

    100
      Crystal A Drive

    Hershey,
      Pennsylvania 17033

     

       
      Such notice shall be deemed given as of the date of delivery or, if delivery
      is
      made by mail, as of the date shown on the postmark on the receipt for
      registration or certification.

     

    9.13 
Successors.
      The
      provisions of this Plan shall bind and inure to the benefit of the Company
      and
      its successors and assigns. The term successors as used herein shall include
      any
      corporation or other business entity which shall, whether by merger,
      consolidation, purchase of assets, or otherwise, acquire all or substantially
      all of the business or assets of the Company, and successors of any such
      corporation or other business entity.

     

    9.14 
Incapacity.
      If the
      Plan Administrator finds that any Participant or beneficiary to whom a benefit
      is payable under this Plan is unable to care for his or her affairs, any payment
      due (unless prior claim therefore shall have been made by a duly authorized
      guardian or other legal representative) may be paid, upon appropriate
      indemnification of the Plan Administrator, to any person who is charged with
      the
      support of the Participant or beneficiary. Any such payment shall be payment
      for
      the account of the Participant and shall be a complete discharge of any
      liability of the Company under the Plan to the Participant or
      beneficiary.

     

    IN
      WITNESS WHEREOF, the Company has caused this Deferred Compensation Plan to
      be
      amended and restated as of the 3rd day of October, 2006.

     

    

     

    THE
      HERSHEY COMPANY

    

    

    By:
      /s/
      Marcella K. Arline   

    Marcella
      K. Arline  

    Senior
      Vice President, Chief People Officer

    
      
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    Appendix
      A

     

    Distribution
      of the Grandfathered Amounts shall be made in accordance with the Plan terms
      as
      in effect on December 31, 2004 and as summarized in this Appendix A.

     

    Article
      I

    Distribution
      of Deferrals

    

    1.1 
Initial
      Election of Distribution Options in Deferral Election.
      

     

     
      a. 
A
      Participant must specify in each of his or her Deferral Elections when such
      Account will be distributed. Distribution may be made or begin in any future
      Plan Year or Years, but distributions must begin not later than the Plan Year
      following the calendar year in which the Participant attains age 70. The
      Participant may elect to receive amounts deferred in a lump sum or in up to
      ten
      substantially equal annual installments. A Participant may specify different
      distribution dates and forms of payment under each of his or her Deferral
      Elections. All amounts of a Participant’s Accounts constructively invested in
      Company Common Stock shall be distributed in the form of Company Common Stock,
      except in the event a Change in Control occurs, in which case amounts
      constructively invested in Company Common Stock shall be dealt with in
      accordance with the terms of the EBPP applicable to such Participant. All other
      amounts shall be distributed in cash. 

     

     
      b. 
Any
      provision of this Plan to the contrary notwithstanding, all distributions
      hereunder shall be deferred until such time (but not beyond the occurrence
      of a
      Change in Control unless otherwise specified in a Participant’s Deferral
      Election), in the discretion of the Committee, as such distribution would not
      be
      disallowed as a deduction under Section 162(m) of the Internal Revenue
      Code.

     

    1.2 
Changes
      in Distribution Options.

    

     
      a. 
A
      Participant is entitled to one future opportunity to further lengthen (not
      shorten) the deferral period provided in a Deferral Election and to make one
      future change with regard to lengthening (not shortening) the payment schedule
      provided in that Deferral Election up to a maximum payment schedule of ten
      years.

    

     
      b.            
 Any
      change in the deferral period or the payment schedule must be submitted to
      the
      Plan Administrator in writing, on a form provided by the Plan Administrator,
      at
      least twelve months, or such shorter period as the Plan Administrator may
      accept, but in no event later than the December 31, before the date
      payments were originally scheduled to begin. No change in the deferral period
      shall be permitted if such change would cause payments to begin after the Plan
      Year following the calendar year in which the Participant attains age
      70.

    

    1.3 
Payment
      of Deferred Amounts.

    

     
      a. 
Upon
      the
      date elected by the Participant, the Company shall begin to pay to the
      Participant an amount equal to the total amount then credited to the
      Participant’s Accounts. Such amount is to be paid either in one lump sum or in
      substantially equal annual installments over a 

     

    
      
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    period
      of
      years as previously elected by the Participant, which period shall be not more
      than ten years. Each annual installment shall include investment credits on
      the
      remaining balance during the previous Plan Year until the Accounts shall have
      been paid in full. A Participant may continue to express investment preferences
      as provided in Section 2.1.c during the period that an Account is being
      distributed.

    

     
      b. 
If
      the
      Participant dies before payment in full of the amount standing to the
      Participant’s credit in the Accounts, the unpaid balance may be paid in one lump
      sum or in substantially equal installments to the Participant’s beneficiary over
      the remaining distribution period elected by the Participant. If the Participant
      dies before the beginning date of the deferred payment and did not indicate
      a
      specific method of distribution, then the Participant’s designated beneficiary
      may petition the Plan Administrator regarding the method of distribution. In
      the
      absence of a designated beneficiary, the balance of the Accounts will be paid
      in
      a lump sum to the estate of the Participant as soon as possible.

    

     
      c. 
If
      the
      Participant’s employment is terminated for any reason other than Retirement,
      death or Disability before the elected payment date, then the Company, acting
      through the Plan Administrator, at its discretion, but subject to any
      limitations set forth in the EBPP applicable to such Participant (or any similar
      or successor plan or program) or any employment agreement to which the
      Participant is a party or is covered, at any time thereafter may:

    

     (1) 
Immediately
      pay over any amounts credited to the Participant’s Accounts to the Participant;
      provided, however, if such termination of employment occurs at any time
      following a Change in Control, the Company and the Plan Administrator may not
      pay over any amounts credited to a Participant’s Accounts, unless prior to the
      occurrence of the Change in Control, such Participant made an election pursuant
      to which such Participant consented to receive an immediate payment of such
      Participant’s Accounts in the event such Participant’s employment is terminated
      following a Change in Control for any reason other than Retirement, death or
      Disability. 

    

    (2) 
Deposit
      any amounts credited to the Participant’s Accounts in a grantor trust for the
      Company’s benefit who will manage and pay over such amounts to the Participant
      in accordance with the terms of this Plan, with administrative costs in such
      event being charged to the Participant’s Accounts; provided, however, that
      following a Change in Control, all such administrative costs shall be borne
      solely by the Company. 

    

    (3) 
Continue
      to itself maintain and pay over amounts deferred to the Participant in
      accordance with the terms of this Plan and the Participant’s election pursuant
      thereto.

    

     
      d. 
If
      both
      the Participant and his beneficiary die after payments to the Participant begin
      and before all payments are made from the Participant’s Accounts, the remaining
      value of the Accounts shall be determined as of the date of death of the
      beneficiary or Participant, whichever is later, and shall be paid as promptly
      as
      possible in one lump sum to the estate of the survivor of the Participant and
      such beneficiary.

    

    
      
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      e. 
A
      Participant may designate or change his or her beneficiary (without the consent
      of any prior beneficiary) on a form provided by the Plan Administrator and
      delivered to the Plan Administrator before the Participant’s death.

    

     
      f. 
Subject
      to Section 3.1 of the Plan in effect on December 31, 2004: (1) if a Participant
      elects to receive amounts deferred in a lump sum or in annual installments
      on a
      date prior to Retirement, such payments will commence or payment will be made
      in
      the month of January of the Plan Year selected by the Participant; (2) if the
      Participant elects to receive amounts deferred in a lump sum (other than amounts
      deferred as Common Stock for payment in a lump sum) or in annual installments
      after Retirement, such payments shall commence or payment shall be made in
      the
      month of January of the Plan Year following the calendar year in which the
      Participant retires; and (3) if a Participant elects to receive amounts deferred
      as Common Stock in a lump-sum after Retirement, such payment will be made in
      the
      month of January of the Plan Year following the calendar year in which the
      Participant retires, unless an earlier date is approved by the Plan
      Administrator upon application by the Participant.

    

     
      g. 
Notwithstanding
      anything herein to the contrary, if, at any time, the Company determines (based
      on advice of tax counsel), by reason of legislation relating to, amendment
      of,
      or interpretation by a court or administrative body of, the provisions of the
      Internal Revenue Code of 1986, as amended, or any rules and regulations
      promulgated thereunder, that any amounts deferred by a Participant under this
      Plan shall be currently taxable, such Participant shall be entitled to elect
      to
      receive immediate payment of any such deferred amounts (without any reduction
      other than applicable tax withholding). 

    

    1.4 
Hardship
      Distributions.
      The
      Plan Administrator may, in its discretion, accelerate payments to a Participant
      in an amount up to the AIP bonus or the cash portion of a PSU award previously
      deferred, together with investment credits to date, in the event of demonstrated
      severe financial hardship (or any similar circumstances under which a payment
      would be permitted without causing the imposition of federal income taxes on
      Participants’ Accounts that have not been distributed, pursuant to Revenue
      Procedure 92-65 or any successor Revenue Procedure, Revenue Ruling, regulation
      or other applicable administrative determination issued by the Internal Revenue
      Service.) Any such payments made will be limited to the amount needed to meet
      the demonstrated financial need. A Participant seeking a financial hardship
      withdrawal from his or her Accounts must request a hearing with the Plan
      Administrator, who will then render a decision on whether to permit such
      distribution.

    

    1.5 
Other
      Withdrawals: Forfeiture Penalty.
      A
      Participant may, by written request on a form provided by the Plan
      Administrator, withdraw all or any portion of any of his Accounts as of any
      Determination Date, provided that the Participant shall forfeit 10% of the
      amount withdrawn as a penalty.

    

    1.6 
Withholding.
      Any
      payments made pursuant to Articles III, V, or VI shall be subject to
      appropriate federal, state or local income tax withholdings. With respect to
      any
      withholdings required on a distribution of Company Common Stock, the Company
      will first withhold from the cash equivalent of dividends on such Company Common
      Stock and interest earned on such cash

     

    
      
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    equivalent
      that are payable to the Participant on the date of distribution, and if such
      withholdings are insufficient, then the Company will withhold from such
      distribution such number of shares of Company Common Stock having a fair market
      value (as defined in the KEIP) equal to the amount required to satisfy the
      remaining withholding tax obligation, unless the Participant elects to (i)
      deposit with the Company such amount of cash or (ii) direct the Company to
      withhold cash from other amounts then distributed under this Plan to satisfy
      such withholding tax obligation.

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    

 

    
      
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