Document:

exhibit3.htm

    

    
      

      

    

     

    EXHIBIT
      10.9

    CHANGE
      IN CONTROL SEVERANCE AGREEMENT

    

    THIS
      CHANGE IN CONTROL SEVERANCE AGREEMENT (this “Agreement”), originally effective
      as of [date] (the “Effective Date”), is made on ____ __, ______ between Massey
      Energy Company, a Delaware corporation (the “Company”), and [Executive] (the
“Executive”).

    

    

    WITNESSETH:

    

    WHEREAS,
      Executive is a senior executive of the Company or one of its Subsidiaries (as
      defined below) and has made and is expected to continue to make major
      contributions to the short-term and long-term profitability, growth and
      financial strength of the Company; and

    

    WHEREAS,
      the Board of Directors of the Company (the “Board,” as defined in Section 23)
      recognized that, as is the case with many publicly-held corporations, the
      possibility of a Change in Control (as defined in Section 23) exists and that
      such possibility, and the uncertainty and questions which it may raise among
      management, may result in the departure or distraction of key management
      personnel to the detriment of the Company and its stockholders; and

    

    WHEREAS,
      the Board has determined that appropriate steps should be taken to reinforce
      and
      encourage the continued attention and dedication of, and to contract for the
      continued rendering of services by, members of the Company’s management,
      including Executive, in connection with their assigned duties without
      distraction in the face of potentially disturbing circumstances, and without
      the
      Company’s loss of needed personnel, arising from the possibility of a Change in
      Control; and

    

    WHEREAS,
      in consideration of Executive’s continued employment with the Company, the
      Company desired to provide Executive with certain compensation and benefits
      set
      forth in this Agreement in order to ameliorate the financial and career impact
      on Executive in the event Executive’s employment with the Company is terminated
      for a reason related to a Change in Control.

    

    NOW,
      THEREFORE, in consideration of the foregoing and the mutual covenants and
      agreements hereinafter set forth (including definitions of capitalized terms
      which are set forth in Section 23 and throughout this Agreement) and intending
      to be legally bound hereby, the Company and Executive agree as
      follows:

    

    1.
      Obligations of Executive to Remain Employed.  Executive
      agrees that in the event any person or group attempts a Change in Control and
      he
      is either notified by the Board or aware of an attempted Change in Control,
      he
      shall not, without the written agreement of the Board, voluntarily leave the
      employ of the Company other than by reason of a Constructive Termination
      Associated With a Change in Control (as defined in Section 23) (i) until
      such attempted Change in Control terminates or (ii) if a Change in Control
      shall occur, until the occurrence of such actual Change in
      Control.  For purposes of the foregoing clause (i) and this Agreement,
      Constructive Termination Associated With a Change in Control shall be
      determined, except as expressly provided in the definition of the term, as
      if a
      Change in Control had occurred when such attempted Change in Control (which
      is
      sometimes referred to herein as a “potential”, as opposed to an “actual”, Change
      in Control) became known to the Board.  For purposes of this
      Agreement, any
      decision by the Board that the person or group has abandoned or terminated
      his
      or its efforts to effect a Change in Control shall be conclusive and binding
      on
      Executive.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

        2.
      Termination Associated With a Change in Control.

    

    (a)
      Involuntary Termination Associated With a Change in Control. Executive
      shall be entitled to the payments and benefits provided in Section 2(b) in
      the
      event Executive’s employment is terminated after, or in connection with, a
      Change in Control, on account of:

    

    (i)
      an
      Involuntary Termination Associated With a Change in Control (as defined in
      Section 23) within the two-year period after an actual Change in
      Control,

    

    (ii)
      a
      termination by the Company, other than for Cause (as defined in Section 23)
      or
      other than due to Executive’s death or Disability (as defined in Section 23),
      that (A) occurs not more than three (3) months prior to the date on which an
      actual Change in Control occurs or (B) is requested by a third party who
      initiates and effects an actual Change in Control, or

    

    (iii)
      a
      termination by Executive that occurs after a potential Change in Control but
      before an actual Change in Control and is considered a Constructive Termination
      Associated With a Change in Control.

    

    For
      purposes of clause (ii)(B) in the preceding sentence, to be eligible to receive
      amounts described in Section 2(b) below, a Change in Control must be consummated
      within the twelve (12) month period following Executive’s Termination Date (as
      defined in Section 23), except in circumstances pursuant to which the
      consummation of the Change in Control is delayed, through no failure of the
      Company or the third person, by a governmental or regulatory authority or agency
      with jurisdiction over the matter, or as a result of other similar
      circumstances. In such a circumstance, the remainder of the twelve (12) month
      period shall be tolled and shall recommence upon termination of the delaying
      event.

    

    (b)
      Payments Upon Involuntary Termination Associated With a Change in
      Control. Subject to the provisions of Section 2(c) or Sections 3 and 6
      hereof, in the event a termination described in Section 2(a) occurs, the Company
      shall pay and provide to Executive on or beginning, as applicable, the first
      business day that occurs following sixty (60) days after his Termination Date
      or, where Executive is entitled to benefits under this Agreement by reason
      of
      clause (ii) or (iii) of Section 2(a) above, the later of as soon as
      administratively feasible after the date an actual Change in Control occurs
      or
      the first business day that occurs following sixty (60) days after his
      Termination Date (contingent on the execution of the release without revocation
      as contemplated in Section 4 hereof):

    

    (i)
      a
      lump sum cash payment equal to 1.5 times Executive’s Base Pay (as defined in
      Section 23);

    

    (ii)
      a
      lump sum cash payment equal to 1.5 times Executive’s Target Bonus (as defined in
      Section 23);

    

    (iii)
      a
      pro rated payment of his Target Bonus for the year in which Executive’s
      Termination Date occurs. The pro rated payment shall be based on Executive’s
      Target Bonus as of Executive’s Termination Date, multiplied by a fraction, the
      numerator of which is the number of days during which Executive was employed
      by
      the Company in the year of his termination and the denominator of which is
      365;

    

    (iv)
      any
      award under the Company’s long-term cash and equity incentive program, including
      stock option, restricted stock, restricted unit, other equity- or cash-based
      incentive awards or other equity- or cash-based incentive agreements, which
      by
      its terms vests in connection with the Change in Control, provided
      that
      payment of such award shall be determined solely by the terms of such award
      and
      any plan, program or arrangement which controls its determination and payment;
      and

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    (v)
      for a
      period of 24 months following his Termination Date, Executive shall continue
      to
      receive on a monthly basis the medical and dental coverage in effect on his
      Termination Date (or generally comparable coverage) for himself and, if
      applicable, his spouse and dependents, as the same may be changed from time
      to
      time for employees generally, as if Executive had continued in employment during
      such period; or, as an alternative, the Company may elect to pay Executive
      cash
      in lieu of such coverage in an amount equal to Executive’s reasonable after-tax
      cost of continuing comparable coverage, where such coverage may not be continued
      by the Company (or where such continuation would adversely affect the tax status
      of the plan pursuant to which the coverage is provided), with any such cash
      payments to be made in accordance with the ordinary payroll practices of the
      Company (not less frequently than monthly) for employees generally for the
      period during which such cash payments are to be provided.

    

    (A)
      If
      Executive does not receive the cash payment described in the preceding sentence,
      the Company shall take all commercially reasonable efforts to provide that
      the
      COBRA (as defined in Section 23) health care continuation coverage period under
      section 4980B of the Code (as defined in Section 23) shall commence immediately
      after the foregoing 24 month benefit period, with such continuation coverage
      continuing until the end of applicable COBRA health care continuation coverage
      period.

    

    (B)
      If
      Executive would have been eligible for post-retirement medical and dental
      coverage had he retired from employment during the period of 24 months following
      his Termination Date, but is not so eligible as the result of his Involuntary
      Termination Associated With a Change in Control, then at the conclusion of
      the
      benefit continuation period described in (A) above, the Company shall take
      all
      commercially reasonable efforts to provide Executive on a monthly basis with
      additional continued group medical and dental coverage comparable to that which
      would have been available to him from time to time under the Company’s
      post-retirement medical and dental program, for as long as such coverage would
      have been available under such program, or, as an alternative, the Company
      may
      elect to pay Executive cash in lieu of such coverage in an amount equal to
      Executive’s reasonable after-tax cost of continuing comparable coverage, where
      such coverage may not be continued by the Company (or where such continuation
      would adversely affect the tax status of the plan pursuant to which the coverage
      is provided), with any such cash payments to be made in accordance with the
      ordinary payroll practices of the Company (not less frequently than monthly)
      for
      employees generally for the period during which such cash payments are to be
      provided.

    

    (c)
      Limitation on Payments and Benefits. Notwithstanding anything in this
      Agreement to the contrary, the sum of the maximum amount payable and the value
      of the benefits provided to Executive pursuant to this Section 2 and Section
      6(a) shall be limited to 2.99 times the sum of Executive’s Base Pay and Bonus
      (as defined in Section 23). In the event a reduction is required pursuant
      hereto, unless Executive is permitted by the Company to choose the order of
      reduction, the order of reduction shall be first all cash payments on a pro
      rata
      basis, then any equity compensation on a pro rata basis, and lastly medical
      and
      dental coverage.

    

    (d)
      Cessation of Employment on Account of Disability, Cause or Death.
      Notwithstanding anything in this Agreement to the contrary, if Executive’s
      employment terminates on account of Disability, Executive shall be entitled
      to
      receive disability benefits under any disability program maintained by the
      Company that covers Executive, and Executive shall not be considered to have
      terminated employment under this Agreement and shall not receive payments and
      benefits pursuant to this Section 2. If Executive’s employment is terminated by
      the Company on account of Cause or because of his death,

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      Executive
        shall not be considered to have terminated employment under this Agreement
        and
        shall not receive payments and benefits pursuant to this Section
        2.

    (e)
Beneficiaries.
Executive
      shall be entitled to select (and change, to the extent permitted under any
      applicable law) a beneficiary or beneficiaries to receive any compensation
      or
      benefit payable hereunder following Executive’s death, and may change such
      election, in either case by giving the Company written notice thereof. In the
      event of Executive’s death or a judicial determination of his incompetence,
      reference in this Agreement to Executive shall be deemed, where appropriate,
      to
      refer to his beneficiary, estate or other legal representative. If Executive
      dies without having designated a beneficiary, or if the beneficiary so
      designated has predeceased Executive or cannot be located by the Company within
      one year after the date when the Company commenced making a reasonable effort
      to
      locate such beneficiary, then Executive's surviving spouse, or if none, then
      Executive's estate shall be deemed to be his beneficiary.

    

    3.
      Nonqualified Deferred Compensation Plan Omnibus Provisions.
      Notwithstanding any other provision of this Agreement, it is intended that
      any
      payment or benefit which is provided pursuant to or in connection with this
      Agreement which is considered to be nonqualified deferred compensation subject
      to Section 409A of the Code shall be provided and paid in a manner, and at
      such
      time and in such form, as complies with the applicable requirements of Section
      409A of the Code to avoid the unfavorable tax consequences provided therein
      for
      non-compliance.  Notwithstanding any other provision of this
      Agreement, the Board is authorized to amend this Agreement, to amend any
      election made by Executive under this Agreement and/or to delay the payment
      of
      any monies and/or provision of any benefits in such manner as may be determined
      by it to be necessary or appropriate to comply, or to evidence or further
      evidence required compliance, with Section 409A of the Code (including any
      transition or grandfather rules thereunder).  For purposes of this
      Agreement, all rights to payments and benefits hereunder shall be treated as
      rights to a series of separate payments and benefits to the fullest extent
      allowable by Section 409A of the Code.  Payments or provision of
      benefits in connection with a separation from service payment event will be
      delayed, to the extent applicable, until six months after the separation from
      service or, if earlier, the Executive’s death, if the Executive is a key
      employee of a publicly traded corporation under Section 409A(a)(2)(B)(i) of
      the
      Code (the “409A
      Deferral Period”).  In
      the event such
      payments are otherwise due to be made in installments or periodically during
      the
      409A Deferral Period, the payments which would otherwise have been made in
      the
      409A Deferral Period shall be accumulated and paid in a lump sum as soon as
      the
      409A Deferral Period ends, and the balance of the payments shall be made as
      otherwise scheduled.  In the event benefits are required to be
      deferred, any such benefit may be provided during the 409A Deferral Period
      at
      Executive’s expense, with Executive having a right to reimbursement from the
      Company once the 409A Deferral Period ends, and the balance of the benefits
      shall be provided as otherwise scheduled.  For purposes of this
      Agreement, termination of employment will be read to mean a “separation from
      service” within the meaning of Section 409A of the Code where it is reasonably
      anticipated that no further services would be performed after that date or
      that
      the level of bona fide services Executive would perform after that date (whether
      as an employee or independent contractor) would permanently decrease to no
      more
      than 20 percent of the average level of bona fide services performed over the
      immediately preceding thirty-six (36)-month period.

    

    4.
      Release. Notwithstanding the foregoing, no payments shall be made or
      benefits provided under Section 2(b) unless Executive executes, and does not
      revoke, the Company’s standard written release, substantially in the form as
      attached hereto as Appendix A (the “Release”), of any and all claims against the
      Company and all related parties with respect to all matters arising out of
      Executive’s employment by the Company (other than any claim or entitlement under
      an employee benefit, long term cash or equity compensation plan, program,
      arrangement or agreement which is due pursuant to the terms of such plan,
      program, arrangement or agreement) or a termination thereof. Such Release must
      be provided within sixty (60) days after Executive’s Termination Date or, where
      Executive is entitled to benefits under this Agreement by reason of clause
      (ii)
      or (iii) of Section 2(a) above, the later of the date an actual Change in
      Control occurs or within sixty (60) days after the Executive’s Termination
      Date.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    5.
      Enforcement. Without limiting the rights of Executive at law or in
      equity, except as provided in Section 6, if the Company fails to make any
      payment or provide any benefit required to be made or provided hereunder on
      a
      timely basis, the Company will pay interest on the amount or value thereof
      at an
      annualized rate of interest equal to the so-called composite “prime rate” as
      quoted from time to time during the relevant period in the Eastern Edition
      of
The Wall Street Journal. Such interest will be payable as it accrues
      consistent with the timing of the related payments or benefits to be provided.
      Any change in such prime rate will be effective on and as of the date of such
      change.

    

    6.
Tax
      Limitation on Payments by the Company. The provisions of this Section 6
      shall apply notwithstanding anything in this Agreement to the
      contrary.

    

    (a)
      Subject to the limitation in Section 2(c), in the event that it shall be
      determined that any Payment would constitute an “excess parachute payment”
within the meaning of Section 280G of the Code, then the Payments under Section
      2 of this Agreement (“Change in Control Payments”) shall be reduced (but not
      below zero) so that the Present Value of the aggregate of all Payments does
      not
      exceed the Reduced Amount; provided, however, that no such reduction shall
      be
      effected if the Net After-tax Benefit to Executive of receiving all of the
      Payments exceeds the Net After-tax Benefit to Executive resulting from having
      such Change in Control Payments so reduced. In the event a reduction is required
      pursuant hereto, the order of reduction shall be first all cash payments on
      a
      pro rata basis, then all equity compensation on a pro rata basis, and lastly
      medical and dental coverage. For purposes of this Section 6, the following
      terms
      have the following meanings:

    

    (i)
“Net
      After-tax Benefit” shall mean the Present Value of a Payment net of all federal
      state and local income, employment and excise taxes imposed on Executive with
      respect thereto, determined by applying the highest marginal rate(s) applicable
      to an individual for Executive’s taxable year in which the Change in Control
      occurs.

    

    (ii)
      “Payment” means any payment or distribution or provision of benefits by the
      Company to or for the benefit of Executive, whether paid or payable or
      distributed or distributable pursuant to the terms of this Agreement or
      otherwise, but
      determined without regard to any reductions required by this Section
      6.

    

    (iii)
      “Present Value” shall mean such value determined in accordance with Section
      280G(d)(4) of the Code.

    

    (iv)
      “Reduced Amount” shall be an amount expressed in Present Value which maximizes
      the aggregate Present Value of Payments without causing any Payment to be
      subject to excise tax under Section 4999 of the Code or the deduction limitation
      of Section 280G of the Code.

    

    (b)
      Except as set forth in the next sentence, all determinations to be made under
      this Section 6 shall be made by the nationally recognized independent public
      accounting firm used by the Company immediately prior to the Change in Control
      (“Accounting Firm”), which Accounting Firm shall provide its determinations and
      any supporting calculations to the Company and Executive within ten days of
      Executive’s Termination Date. If determined by the Accounting Firm to be
      excludible from parachute payments under Section 280G of the Code, the value
      of
      Executive’s non-competition covenant under Section 10(a) of this Agreement shall
      be determined by independent appraisal by a nationally-recognized business
      valuation firm acceptable to both Executive and the Company, and a portion
      of
      the Change in Control Payments shall, to the extent of that appraised value,
      be
      specifically allocated as reasonable compensation for such non-competition
      covenant and shall not be treated as a parachute payment. Any such determination
      by the Accounting Firm shall be binding upon the Company and
      Executive.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    
      (c)  If
        the Accounting Firm determines that Change in Control Payments should be
        reduced, the Company shall promptly give Executive notice to that effect
        and a
        copy of the detailed calculation thereof.  All determinations made by
        the Accounting Firm under this Section 6 shall be binding upon the Company
        and
        Executive and shall be made within twenty (20) business days of Executive’s
        Termination Date.

    (d)  While
      it is the intention of the Company and Executive to reduce the amounts payable
      or distributable to Executive hereunder only if the aggregate Net After-tax
      Benefit to Executive would thereby be increased in the manner provided for
      herein, as a result of the uncertainty in the application of Section 4999 of
      the
      Code at the time of the initial determination by the Accounting Firm hereunder,
      it is possible that amounts will have been paid or distributed by the Company
      to
      or for the benefit of Executive pursuant to this Agreement which should not
      have
      been so paid or distributed (“Overpayment”) or that additional amounts which
      will have not been paid or distributed by the Company to or for the benefit
      of
      Executive pursuant to this Agreement could have been so paid or distributed
      (“Underpayment”), in each case, consistent with the calculation of the Reduced
      Amount hereunder.  In the event that the Accounting Firm, based either
      upon the assertion of a deficiency by the Internal Revenue Service against
      the
      Company or Executive which the Accounting Firm believes has a high probability
      of success determines that an Overpayment has been made, any such Overpayment
      paid or distributed by the Company to or for the benefit of Executive shall
      be
      treated for all purposes as a loan to Executive which Executive shall repay
      to
      the Company together with interest at the applicable federal rate provided
      for
      in Section 7872(f)(2) of the Code; provided, however, that no such loan shall
      be
      deemed to have been made and no amount shall be payable by Executive to the
      Company if and to the extent such deemed loan and payment would not either
      reduce the amount on which Executive is subject to tax under Sections 1 and
      4999
      of the Code or generate a refund of such taxes. In the event that the Accounting
      Firm, based upon controlling precedent or substantial authority, determines
      that
      an Underpayment has occurred, any such Underpayment shall be promptly paid
      by
      the Company to or for the benefit of Executive together with interest at the
      applicable federal rate provided for in Section 7872(f)(2) of the
      Code.

    

    (e)
      All
      of the fees and expenses of the Accounting Firm in performing the determinations
      referred to in this Section 6 shall be borne solely by the Company.

    

    7.
      Duties upon Termination; Mitigation Obligation. Upon
      termination of
      employment for any reason, Executive or his estate shall surrender to the
      Company all correspondence, letters, files, contracts, mailing lists, customer
      lists, advertising materials, ledgers, supplies, equipment, checks, and all
      other materials and records of any kind that are the property of the Company
      or
      any of its subsidiaries or affiliates, that may be in Executive’s possession or
      under his control, including all copies of any of the foregoing. The
      Company hereby acknowledges that it will be difficult and may be impossible
      for
      Executive to find reasonably comparable employment following the Termination
      Date. Accordingly, the payment and provision of the severance compensation
      by
      the Company to Executive in accordance with the terms of this Agreement is
      hereby acknowledged by the Company to be reasonable, and Executive will not
      be
      required to mitigate the amount of any payment or benefit provided for in this
      Agreement by seeking other employment or otherwise, nor will any profits,
      income, earnings or other benefits from any source whatsoever create any
      mitigation, offset, reduction or any other obligation on the part of Executive
      hereunder or otherwise.

    

    8.
      Legal Fees and Expenses. If
      litigation or
      arbitration is commenced by either party to enforce or interpret any provision
      contained in this Agreement, the Company will undertake to indemnify Executive
      for his reasonable attorneys' fees and expenses associated with such
      litigation or
      arbitration if Executive substantially prevails in such litigation or
      arbitration or any settlement thereof.  Notwithstanding the
      foregoing,
      if it should
      appear to Executive that the Company has failed to comply with any of its
      obligations under this Agreement or in the event that the Company or any other
      person takes or threatens to take any action to declare this Agreement void
      or
      unenforceable, or institutes any litigation or other action or proceeding
      designed to deny, or to recover from, Executive the benefits provided or
      intended to be provided to Executive

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      under
        Section 2 of
        this Agreement, the Company will in any event reimburse Executive for his
        reasonable attorneys' fees and expenses incurred in connection therewith
        up to
        $10,000 without regard to the commencement or outcome of any litigation or
        arbitration in order for Executive to retain counsel to advise
        and
        represent Executive in connection with any such interpretation, enforcement
        or
        defense, including without limitation the initiation or defense of any
        litigation or other legal action, whether by or against the Company or any
        director, officer or employee of the Company, in any jurisdiction.
        Notwithstanding any existing or prior attorney-client relationship between
        the
        Company and such counsel, the Company irrevocably consents to Executive’s
        entering into an attorney-client relationship with such counsel, and in that
        connection, the Company and Executive agree that a confidential relationship
        will exist between Executive and such counsel. The first $10,000 of such
        expenses will be paid by the Company as they are incurred by Executive,
        and any balance thereof due to Executive shall be paid within thirty (30)
        days
        after any final judgment or decision or settlement in which Executive
        substantially prevails.  Any
        reimbursements to be paid by the Company to the Executive under this Section
        8
        for the first $10,000 of such expenses must be paid as soon as administratively
        feasible after the Executive incurs the expense and the Executive will be
        entitled to receive any balance thereof  as soon as administratively
        feasible after the termination of such litigation or arbitration or any
        settlement thereof under terms on which the Executive substantially
        prevails.

    9.
      Confidentiality. Executive hereby covenants and agrees that, except as
      specifically requested or directed by the Company, he will not disclose to
      any
      person not employed by the Company, or use in connection with engaging in
      competition with the Company, any confidential or proprietary information (as
      provided below) of the Company. For purposes of this Agreement, the term
“confidential or proprietary information” will include all information of any
      nature and in any form that is owned by the Company and that is not publicly
      available (other than by Executive’s breach of this Section 9) or generally
      known to persons engaged in businesses similar or related to those of the
      Company. Confidential or proprietary information will include, without
      limitation, the Company’s financial matters, customers, employees, industry
      contracts, strategic business plans, product development (or other proprietary
      product data), marketing plans, consulting solutions and processes, and all
      other secrets and all other information of a confidential or proprietary nature
      which is protected by the Uniform Trade Secrets Act. For purposes of the
      preceding two sentences, the term “Company” will also include any Subsidiary (as
      defined in Section 23; collectively, the “Restricted Group”). The foregoing
      obligations imposed by this Section 9 will not apply (i) in the course of the
      business of and for the benefit of the Company, (ii) if such confidential or
      proprietary information has become, through no fault of Executive, generally
      known to the public, or (iii) if Executive is required by law to make disclosure
      (after giving the Company notice and an opportunity to contest such
      requirement). In addition, if not otherwise filed by the Company with the U.S.
      Securities and Exchange Commission (“SEC”) and available through public
      disclosure from the SEC, Executive agrees not to disclose the terms of this
      Agreement to anyone, except Executive’s spouse, attorney and, as necessary,
      tax/financial advisor, except as may be required by law. Likewise, the Company
      agrees that the terms of this Agreement will not be disclosed except as may
      be
      necessary to obtain approval or authorization to fulfill its obligations
      hereunder or as required by law. It is expressly understood that any violation
      of the confidentiality obligation imposed hereunder constitutes a material
      breach of this Agreement.

    

    10.
      Covenants Not to Compete and Not to Solicit; Breach of Agreement Obligations
      by Executive.

    

    (a)
      Covenant Not to Compete. In the event Executive breaches his obligations
      to the Company to remain employed as provided in Section 1 above or if Executive
      is entitled to receive payments and benefits under Section 2 above other than
      pursuant to clause (ii) or (iii) of Section 2(a) above, then, for a period
      of
      one (1) year following Executive’s Termination Date, Executive shall not
      directly or indirectly engage in (whether as an employee, consultant,
      proprietor, partner, director or otherwise), or have any ownership interest
      in,
      or participate in a financing, operation, management or control of, any person,
      firm, corporation or business that is a Restricted Business in a Restricted
      Territory without the prior written consent of the Board. For this purpose,
      ownership, whether direct or beneficial, of no more than

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      5%
        of the
        outstanding securities entitled to vote generally in the election of directors
        of a publicly traded corporation shall not constitute a violation of this
        provision.

    (b)
      Covenant Not to Solicit. In the event Executive breaches his obligations
      to the Company to remain employed as provided in Section 1 above or if Executive
      is entitled to receive payments and benefits under Section 2 above other than
      pursuant to clause (ii) or (iii) of Section 2(a) above, then, for a period
      of
      one (1) year following Executive’s Termination Date, Executive shall not: (i)
      solicit, encourage or take any other action which is intended to induce any
      other employee, any supplier or any customer, of the Company or any Subsidiary
      to terminate his employment or relationship with the Company or any Subsidiary;
      or (ii) interfere in any manner with the contractual or employment relationship
      between the Company and any such employee, supplier or customer of the Company
      or any Subsidiary. The foregoing shall not prohibit Executive or any entity
      with
      which Executive may be affiliated from hiring a former employee of the Company
      or any Subsidiary; provided, that such hiring results exclusively from such
      former employee’s affirmative response to a general recruitment
      effort.

    

    (c)
      Interpretation. The covenants contained herein are intended to be
      construed as a series of separate covenants, one for each of the counties,
      parishes, towns, cities or states or similar local governmental or political
      subdivisions of the Restricted Territory. Except for geographic coverage, each
      such separate covenant shall be deemed identical in terms to the covenant
      contained in the preceding subsections. If, in any judicial proceeding, the
      court shall refuse to enforce any of the separate covenants (or any part
      thereof) deemed included in such subsections, then such unenforceable covenant
      (or such part) shall be deemed to be eliminated from this Agreement for the
      purpose of those proceedings to the extent necessary to permit the remaining
      separate covenants (or portions thereof) to be enforced. 

    

    (d)
      Remedies for Breach.  In the event of Executive’s termination
      of employment, the Company’s obligations to provide the payments and benefits
      set forth in Section 2 shall be and are expressly conditioned upon Executive’s
      covenants not to compete and not to solicit as provided herein. In the event
      Executive breaches his obligations to the Company as provided herein, the
      Company’s obligations to provide the payments and benefits set forth in Section
      2 shall cease, and Executive shall be obligated to return to the Company any
      payments and the value of any benefits previously received by him pursuant
      to
      Section 2. In addition, it is recognized that damages in the event of breach
      of
      this Section 10 by Executive would be difficult, if not impossible, to
      ascertain, and it is therefore specifically agreed that the Company, in addition
      to and without limiting any other remedy or right it may have, shall have the
      right to an injunction or other equitable relief in any court of competent
      jurisdiction, enjoining any such breach.  The existence of the express
      rights to cease or recover payment and the value of benefits otherwise provided
      for in Section 2 and to obtain an injunction or other equitable relief shall
      not
      preclude the Company from pursuing any other rights and remedies at law or
      in
      equity which it may have.

    

    (e)
      Definitions. For proposes of this Section 10, the following terms have
      the following meanings:

    

    (i)
      “Restricted Business” means any business function with a direct competitor of
      the Company or any Subsidiary that is substantially similar to the business
      function performed by Executive with the Company or any Subsidiary immediately
      prior to his Termination Date.

    

    (ii)
      “Restricted Territory” means the counties, parishes, towns, cities, or states or
      similar governmental or political subdivisions of any country in which the
      Company or any Subsidiary operates or does business, inclusive of markets in
      which the Company competes with the Restricted Business to sell its
      products.

    

    (f)
      Reasonableness. In the event that the provisions of this Section 10 shall
      ever be deemed to exceed the time, scope or geographic limitations permitted
      by
      applicable laws, then such provisions shall

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      be
        reformed to the maximum time, scope or geographic limitations, as the case
        may
        be, permitted by applicable laws.

    11.
      Employment Rights. Executive and the Company acknowledge that, except as
      may otherwise be provided under any other written agreement between Executive
      and the Company or a Subsidiary, the employment of Executive by the Company
      is
“at will.”  Nothing expressed or implied in this Agreement will create
      any right or duty on the part of the Company or Executive, except as provided
      in
      Section 1 above, to have Executive remain in the employment of the Company
      or
      any Subsidiary prior to or following any Change in Control.

    

    12.
      Withholding of Taxes. The Company may withhold from any amounts payable
      under this Agreement all federal, state, city or other taxes as the Company
      is
      required to withhold pursuant to any applicable law, regulation or
      ruling.

    

    13.
      Term of Agreement.

    

    (a)
      Regular Term and Extensions.  The term of this Agreement shall
      commence on the Effective Date hereof and shall continue through December 31,
      _____; provided, however, that this Agreement shall continue in effect for
      a
      period of 24 months beyond the term provided herein if a Change in Control
      of
      the Company occurs during the period that this Agreement is in
      effect.

    

    (b)
      Early Termination by the Board.  Notwithstanding the foregoing,
      this Agreement shall be subject to unilateral termination by the Company if
      the
      Board determines in good faith that Executive is no longer a key management
      employee to be provided the rights contained herein and so notifies Executive
      in
      writing; provided, however, that such determination may not be made, and if
      made
      shall have no effect, if a Change in Control shall have occurred or during
      any
      period of time when the Company has knowledge that any person or group has
      taken
      steps reasonably calculated to effect a Change in Control until, in the opinion
      of the Board, the third person has abandoned or terminated his or its efforts
      to
      effect a Change in Control.  

    

    14.
      Successors and Binding Agreement.

    

    (a)
      The
      Company will require any successor (whether direct or indirect, by purchase,
      merger, consolidation, reorganization or otherwise) to all or substantially
      all
      of the business or assets of the Company, by agreement in form and substance
      reasonably satisfactory to Executive, expressly to assume and agree to perform
      this Agreement in the same manner and to the same extent the Company would
      be
      required to perform if no such succession had taken place. This Agreement will
      be binding upon and inure to the benefit of the Company and any successor to
      the
      Company, including without limitation any persons acquiring directly or
      indirectly all or substantially all of the business or assets of the Company
      whether by purchase, merger, consolidation, reorganization or otherwise (and
      such successor will thereafter be deemed “Company” for the purposes of this
      Agreement), but will not otherwise be assignable, transferable or delegable
      by
      the Company.

    

    (b)
      This
      Agreement will inure to the benefit of and be enforceable by Executive’s
      personal or legal representatives, executors, administrators, successors, heirs,
      distributees and legatees. This Agreement will supersede the provisions of
      any
      employment agreement between Executive and the Company that relate to any matter
      that is also the subject of this Agreement, and such provisions in such
      employment agreement will be null and void. The foregoing sentence shall have
      no
      impact on any
      outstanding agreement made with Executive under the Company’s long-term
      incentive program, including, stock option, restricted stock, restricted unit,
      other equity- or cash-based incentive awards or other equity- or cash-based
      agreements at any time in effect.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
       

      (c)
        This
        Agreement is personal in nature and neither of the parties hereto will, without
        the consent of the other, assign, transfer or delegate this Agreement or
        any
        rights or obligations hereunder except as expressly provided in Sections
        14(a)
        and (b). Without limiting the generality or effect of the foregoing, Executive’s
        right to receive payments and benefits hereunder will not be assignable,
        transferable or delegable, whether by pledge, creation of a security interest,
        or otherwise, other than by a transfer by Executive’s will or by the laws of
        descent and distribution and, in the event of any attempted assignment or
        transfer contrary to this Section 14(c), the Company will have no liability
        to
        pay any amount so attempted to be assigned, transferred or
        delegated.

    

     

    15.
      Notices. For all purposes of this Agreement, all communications,
      including without limitation, notices, consents, requests or approvals, required
      or permitted to be given hereunder will be in writing and will be deemed to
      have
      been duly given when hand delivered or dispatched by electronic facsimile
      transmission (with receipt thereof confirmed electronically), or five (5)
      business days after having been mailed by United States registered or certified
      mail, return receipt requested, postage prepaid, or three (3) business days
      after having been sent by a nationally recognized courier service for
      overnight/next-day delivery, such as FedEx, UPS, or the United States Postal
      Service, addressed to the Company (to the attention of the Secretary of the
      Company) at its principal executive office and to Executive at his principal
      residence, or to such other address as any party may have furnished to the
      other
      in writing and in accordance herewith, except that notices of changes of address
      will be effective only upon receipt.

    

    16.
Governing
      Law;
      Dispute Resolution.
      The validity,
      interpretation, construction and performance of this Agreement will be governed
      by and construed in accordance with the substantive laws of the State of
      Delaware, without giving effect to the principles of conflict of laws of such
      State. Any dispute or controversy arising under or in connection with
      this Agreement (other than an action to enforce the covenants in Section 10
      hereof) shall be resolved by arbitration in either Richmond, Virginia or
      Charleston, West Virginia as so determined by Executive. Three arbitrators
      shall
      be selected, and arbitration shall be conducted, in accordance with the rules
      of
      the American Arbitration Association. Subject to Section 8 hereof, the
      arbitrators shall have the discretion to award the cost of arbitration,
      arbitrators’ fees and the respective attorneys’ fees of each party between the
      parties as they see fit.

    

    17.
      Validity. If any provision of this Agreement or the application of any
      provision hereof to any person or circumstances is held invalid, unenforceable
      or otherwise illegal, the remainder of this Agreement and the application of
      such provision to any other person or circumstances will not be affected, and
      the provision so held to be invalid, unenforceable or otherwise illegal will
      be
      reformed to the extent (and only to the extent) necessary to make it
      enforceable, valid or legal.

    

    18.
      Amendment; Modification. This Agreement may only be amended by
      written agreement of the parties hereto. No provision of this Agreement may
      be
      modified, waived or discharged unless such waiver, modification or discharge
      is
      agreed to in a writing signed by Executive and the Company. No waiver by either
      party hereto at any time of any breach by the other party hereto or compliance
      with any condition or provision of this Agreement to be performed by such other
      party will be deemed a waiver of similar or dissimilar provisions or conditions
      at the same or at any prior or subsequent time. No agreements or
      representations, oral or otherwise, expressed or implied with respect to the
      subject matter hereof have been made by either party that are not set forth
      expressly in this Agreement. 

    

    19.
      Acknowledgement. Executive acknowledges that he has signed this Agreement
      voluntarily and knowingly in exchange for the consideration described herein,
      which Executive acknowledges is adequate and satisfactory to him and which
      Executive acknowledges is in addition to any other benefits to which Executive
      is otherwise entitled and that Executive has been and is hereby advised in
      writing to consult with an attorney prior to signing this
      Agreement.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    20.
      Miscellaneous. References to Sections are to references to Sections of
      this Agreement. Any reference in this Agreement to a provision of a statute,
      rule or regulation will also include any successor provision thereto. Whenever
      used herein, the masculine includes the feminine.

    

    21.
      Survival. Notwithstanding any provision of this Agreement to the
      contrary, the parties’ respective rights and obligations under Sections 2, 3, 4,
      5, 6, 7, 8, 9, 10, 14 and 16 will survive any termination or expiration of
      this
      Agreement or the termination of Executive’s employment for any reason
      whatsoever.

    

    22.
      Counterparts. This Agreement may be executed in one or more counterparts,
      each of which will be deemed to be an original but all of which together will
      constitute one and the same agreement.

    

    23.
      Certain Defined Terms. In addition to terms defined elsewhere herein, the
      following terms have the following meanings when used in this Agreement with
      initial capital letters:

    

    (a)
“Base
      Pay” means the greater of (i) Executive’s annual base salary rate, exclusive of
      Bonus, as in effect immediately preceding Executive’s Termination Date, and (ii)
      Executive’s highest annual base salary rate, exclusive of Bonus, in effect at
      any time during the three years immediately preceding the Change in
      Control.

    

    (b)
      “Board” means the Board of Directors of the Company. If Executive is also a
      member of the Board, then in the case of any provision hereof that requires
      action by, or a determination of, the Board in connection with this Agreement,
      it is understood that such provision refers to the members of the Board other
      than Executive. Unless otherwise provided by the Board and except in determining
      Cause, the Compensation Committee of the Board shall have full authority to
      act
      on behalf of the Board in connection with any duty or action expressly assigned
      under, or implicitly to be acted on in connection with, this Agreement to or
      by
      the Board.

    

    (c)
“Bonus”
means
      the highest amounts payable under Executive’s annual cash bonus award
      plus the highest amounts payable under all Executive’s outstanding long-term
      cash incentive bonus awards that contain as a year of measurement, the year
      in
      which Executive is terminated. Bonus does not include any stock option, stock
      appreciation, stock purchase, restricted stock, restricted unit, performance
      stock, performance unit, shadow stock or similar equity incentive plan, program,
      arrangement or grant, one time bonus or payment, any amounts contributed by
      the
      Company or any Subsidiary for the benefit of Executive to any qualified or
      nonqualified deferred compensation plan, or any amounts designated by the
      parties as amounts other than Bonus.

    

    (d)
      “Cause” shall occur hereunder only upon:

    

    (i)
      the
      willful and continued failure by Executive substantially to perform his duties
      with the Company (other than any such failure resulting from his incapacity
      due
      to physical or mental illness) after a written demand for substantial
      performance is delivered to him by the Board which specifically identifies
      the
      manner in which the Board believes that he has not substantially performed
      his
      duties,

    

    (ii)
      Executive’s willful breach of fiduciary duty, willful violation of any law,
      rule, or regulation (other than traffic violations or similar offenses), willful
      violation of a final cease and desist order or willful engaging in other gross
      misconduct which is materially and demonstrably injurious to the Company or
      any
      Subsidiary, or

    

    (iii)
      Executive’s conviction of, or pleading guilty or nolo contendere to, the
      commission of a felony involving fraud, embezzlement, theft or moral
      turpitude.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

        For
      purposes
      of this Section 23(d), no act, or failure to act, on Executive’s part described
      in clause (i) or (ii) above shall be considered “willful” unless done, or
      omitted to be done, by him not in good faith and without reasonable belief
      that
      his action or omission was in the best interest of the Company and its
      Subsidiaries. Notwithstanding the foregoing, Executive shall not be deemed
      to
      have been terminated for Cause unless and until there shall have been delivered
      to him a copy of a resolution duly adopted by the affirmative vote of not less
      than two-thirds of the entire membership of the Board at a meeting of the Board
      called and held for the purpose, among others (after at least 20 days prior
      notice to Executive and an opportunity for Executive, together with his counsel,
      to be heard before the Board), of finding that (x) in the good faith opinion
      of
      the Board Executive failed to perform his duties or engaged in misconduct as
      set
      forth above in clause (i) or (ii) of this paragraph, and, if applicable, that
      Executive did not correct such failure or cease such misconduct after being
      requested to do so by the Board, or (y) as set forth in clause (iii) of this
      paragraph, Executive has been convicted of or has entered a plea of nolo
      contendere to the commission of a felony. The fact
      that
      Executive is or shortly may be “retirement eligible” and thus eligible for or
      entitled to post-retirement benefits from any plan, arrangement or program
      sponsored, participated in or contributed to by the Company or any Subsidiary
      shall not prevent Executive’s termination from being considered termination for
      Cause.

    

    (e)
      “Change in Control” means the occurrence of any of the following
      events:

    

    (i)
      a third
      person, including a “group” as defined in Section 13(d)(3) of the Securities
      Exchange
      Act of 1934, as amended, acquires (or has acquired during the twelve
      (12)-month period ending on the date of the most recent acquisition) shares
      of
      the Company having thirty (30) percent or more of the total number of votes
      that
      may be cast for the election of directors of the Company;
      or

    

    (ii)
as
      the
      result of any cash tender or exchange offer, merger or other business
      combination, or any combination of the foregoing transactions, (a
“Transaction”), the persons who were directors of the Company before the
      Transaction shall cease to constitute a majority of the Board of the Company
      or
      any successor to the Company and be replaced by persons whose appointment or
      election is not endorsed by the majority of directors before the
      Transaction.

    

    For
      purposes
      hereof, a “potential” Change in Control is considered to occur and remain
      present commencing upon the date that any person or group attempts a Change
      in
      Control and the Executive is either notified by the Board or aware of an
      attempted Change in Control.  All decisions regarding the time
      of the commencement, the pendancy and the abandonment or termination of a
      potential Change in Control shall be made by the Board in good faith and shall
      be conclusive and binding on the Executive.  An “actual” Change in
      Control means that one of the two events described in (i) or (ii) above has
      occurred.

    

    (f)
“COBRA”
      means the Consolidated Omnibus Budget Reconciliation Act of 1986, as
      amended.

    

    (g)
      “Code” means the Internal Revenue Code of 1986, as amended.

    

    (h)
      “Constructive Termination Associated With a Change in Control” means the
      termination of Executive’s employment with the Company by Executive as a result
      of the occurrence, without Executive’s written consent, of one of the following
      events:

    

    (i)
      following the
      occurrence of an actual, but not a potential, Change in Control, the
      assignment to Executive of any duties inconsistent in any respect with
      Executive’s position (including status, offices, titles and reporting
      requirements), authority, duties or responsibilities in effect immediately
      prior
      to the Change in Control, or any other action by the Company or any Subsidiary
      which results in a diminution in such position, authority, duties or
      responsibilities, other

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      than
        an
        isolated, insubstantial and inadvertent action not taken in bad faith and
        which
        is remedied by the Company or Subsidiary promptly after receipt of notice
        thereof given by Executive;

    (ii)
      following the
      occurrence of an actual or potential Change in Control, any failure by
      the Company or any Subsidiary to continue Executive’s employment upon the terms
      and conditions as existed immediately prior to the Change in Control (other
      than
      any term or condition covered in clause (i) above), including but not limited
      to
      compensation level and annual and long-term cash and equity incentive
      opportunity, other than an isolated, insubstantial and inadvertent failure
      not
      occurring in bad faith and which is remedied by the Company or Subsidiary
      promptly after receipt of notice thereof given by Executive;

    

    (iii)
      following the occurrence of an actual or potential Change in Control, a
      material
      reduction in the level of Employee Benefits provided to Executive immediately
      prior to the Change in Control; or

    

    (iv)
      following the occurrence of an actual or potential Change in Control, the
      relocation of Executive’s principal work location (other than in connection with
      a relocation contemplated by the Company as of the date hereof or pursuant
      to
      organizational changes in accordance with past practice) to a location that
      increases Executive’s normal work commute by fifty (50) miles or more as
      compared to Executive’s normal work commute immediately prior to the Change in
      Control or that Executive’s required travel away from his office in the course
      of discharging his responsibilities or duties of his job is increased by an
      unreasonable amount as compared to that which was required of Executive in
      any
      of the three (3) full years immediately prior to the Change in
      Control.

    

    For
      purposes hereof, “Employee Benefits” means the perquisites, benefits and service
      credit for benefits as provided under any and all employee retirement income
      and
      welfare benefit policies, plans, programs or arrangements in which Executive
      is
      entitled to participate, including, without limitation, any stock option, stock
      appreciation, stock purchase, restricted stock, restricted unit, performance
      stock, performance unit, shadow stock or similar equity incentive plan, program,
      arrangement, savings, pension, supplemental executive retirement, or other
      retirement income or welfare benefit, deferred compensation, incentive
      compensation, group or other life, health, medical/hospital or other insurance
      (whether funded by actual insurance or self-insured by the Company or a
      Subsidiary), disability, salary continuation, expense reimbursement and other
      employee benefit policies that may exist as of a Change in Control or any
      successor policies, plans or arrangements that provide substantially similar
      perquisites or benefits.

    

    Without
      limiting the generality or effect of the foregoing, Executive shall have no
      right to terminate employment in a Constructive Termination Associated With
      a
      Change in Control in connection with an event described above unless (x)
      Executive provides written notice to the Company within thirty (30) days of
      the
      occurrence of such event that identifies such event with particularity, and
      (y)
      the Company fails to correct such event within ten (10) business days after
      receipt of such notice from Executive.

    

    In
      no
      event shall the termination of Executive’s employment with the Company on
      account of Executive’s death or Disability or because Executive engaged in
      conduct constituting Cause be deemed to be a Constructive Termination Associated
      With a Change in Control.

    

    (i)
      “Disability” means Executive becomes permanently disabled within the meaning of,
      and begins actually to receive long-term disability benefits pursuant to, the
      long-term disability plan of the Company or any Subsidiary in effect for, or
      applicable to, Executive, or if none, then Executive is determined by the Social
      Security Administration to be totally and permanently disabled for purposes
      of
      entitlement to Social Security disability benefits.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    (j)
      “Involuntary Termination Associated With a Change in Control” means the
      termination of Executive’s employment related to a Change in Control: (i) by the
      Company for any reason other than Cause, Executive’s death or Executive’s
      Disability, or (ii) on account of a Constructive Termination Associated With
      a
      Change in Control. The fact that Executive is or shortly may be “retirement
      eligible” and thus eligible for or entitled to post-retirement benefits from any
      plan, arrangement or program sponsored, participated in or contributed to by
      the
      Company or any Subsidiary shall not prevent Executive’s termination from being a
      Involuntary Termination Associated With a Change in Control.

    

    (k)
“Subsidiary”
      means any Company affiliate, whether or not incorporated, the majority of
      the outstanding capital stock or other ownership interests of which is owned,
      directly or indirectly, by the Company.

    

    (l)
      “Target Bonus” means Executive’s annual cash bonus award target.

    

    (m)
      “Termination Date” means the last day of Executive’s employment with the Company
      or any Subsidiary.

    

    

    IN
      WITNESS WHEREOF, the parties have caused this Agreement to be duly executed
      and
      delivered as of the date first above written.

     

    
      	 	 	 
	
              MASSEY
                ENERGY COMPANY

            
	 	 
	
              By:

            	
               

            	
               

            
	
              Name:

            	
               

            	 
	
              Title:

            	
               

            	 
	 
	
               

               

              [Executive]

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        Appendix
          A

      

       

      SEPARATION
        OF EMPLOYMENT AGREEMENT AND GENERAL RELEASE

      

      THIS
        SEPARATION OF EMPLOYMENT AGREEMENT AND GENERAL RELEASE (the “Agreement”) is made
        as of this      day of
                ,
            ,
        by and between Massey Energy Company, a Delaware corporation (the “Company”),
        and _______________________ (the “Executive”).

      

      WHEREAS,
        Executive formerly was employed by the Company as
            ;
        and

      

      WHEREAS,
        Executive and Company entered into a Change in Control Severance Agreement,
        originally dated
                   ,
  2005, (the “Severance Agreement”) which provides for certain
        payments and benefits in the event that Executive’s employment is terminated on
        account of a reason set forth in the Severance Agreement; and

      

      WHEREAS,
        an express condition of Executive’s entitlement to the payments and benefits
        under the Severance Agreement is the execution of a general release in the
        form
        set forth below; and

      

      WHEREAS,
        Executive and the Company mutually desire to terminate Executive’s employment on
        an amicable basis, such termination to be effective
                        ,
            
        (“Termination Date”).

      

      NOW,
        THEREFORE, IT IS HEREBY AGREED by and between Executive and the Company as
        follows:

      

      1.
        (a)
        Executive, for and in consideration of the commitments of the Company as
        set
        forth in paragraph 6 of this Agreement, and intending to be legally bound,
        does
        hereby REMISE, RELEASE AND FOREVER DISCHARGE the Company, its affiliates,
        subsidiaries and parents, and its officers, directors, employees, and agents,
        and its and their respective successors and assigns, heirs, executors, and
        administrators (collectively, “Releasees”) from all causes of action, suits,
        debts, claims and demands whatsoever in law or in equity, which Executive
        ever
        had, now has, or hereafter may have, whether known or unknown, or which
        Executive’s heirs, executors, or administrators may have, by reason of any
        matter, cause or thing whatsoever, from the beginning of Executive’s employment
        to the date of this Agreement, and particularly, but without limitation of
        the
        foregoing general terms, any claims arising from or relating in any way to
        Executive’s employment relationship with the Company, the terms and conditions
        of that employment relationship, and the termination of that employment
        relationship, including, but not limited to, any claims arising under the
        Age
        Discrimination in Employment Act, the Older Workers Benefit Protection Act,
        Title VII of the Civil Rights Act of 1964, the Americans with Disabilities
        Act,
        the Family and Medical Leave Act of 1993, the Employee Retirement Income
        Security Act of 1974, and any other claims under any federal, state or local
        common law, statutory, or regulatory provision, now or hereafter recognized,
        and
        any claims for attorneys’ fees and costs. This Agreement is effective without
        regard to the legal nature of the claims raised and without regard to whether
        any such claims are based upon tort, equity, implied or express contract
        or
        discrimination of any sort.

      

      (b)
        To
        the fullest extent permitted by law, and subject to the provisions of paragraph
        11 below, Executive represents and affirms that (i) [other than
            ,]
        Executive has not filed or caused to be filed on Executive’s behalf any claim
        for relief against the Company or any Releasee and, to the best of Executive’s
        knowledge and belief, no outstanding claims for relief have been filed or
        asserted against the Company or any Releasee on Executive’s behalf; and (ii)
        [other than
            ,]
        Executive has not reported any improper, unethical or illegal conduct or
        activities to any supervisor, manager, department head, human resources
        representative, agent or other representative of the Company, to any member
        of
        the Company’s legal or compliance departments, or to the ethics hotline, and has
        no knowledge of any

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      such
        improper, unethical or illegal conduct or activities. Executive agrees to
        dismiss with prejudice all claims for relief filed before the date
        hereof.

      

      (c)
        Notwithstanding any other provision herein, the foregoing release does not
        apply
        to any claim or entitlement under an employee benefit or long term cash or
        equity incentive compensation plan, program, arrangement or agreement which
        is
        due pursuant to the terms of such plan, program, arrangement or
        agreement.

      

      2.
        The
        Company, for and in consideration of the commitments of Executive as set
        forth
        in this Agreement, and intending to be legally bound, does hereby REMISE,
        RELEASE AND FOREVER DISCHARGE Executive from all claims, demands or causes
        of
        action arising out of facts or occurrences prior to the date of this Agreement,
        but only to the extent the Company knows or reasonably should know of such
        facts
        or occurrence and only to the extent such claim, demand or cause of action
        relates to a violation of applicable law or the performance of Executive’s
        duties with the Company; provided, however, that this release of claims shall
        not in any case be effective with respect to any claim by the Company alleging
        a
        breach of Executive’s obligations under this Agreement. [Note: The
        Company and Executive may, but shall not be required to mutually agree on
        a
        case-by-case basis at the time of the signing of this release to include
        the
        foregoing provision, or a substantially similar provision, to this
        Agreement.]

      

      3.
        In
        consideration of the Company’s agreements as set forth in paragraph 6 herein,
        Executive agrees to comply with the limitations described in Sections 9 and
        10
        of the Severance Agreement.

      

      4.
        Executive further agrees and recognizes that Executive has permanently and
        irrevocably severed Executive’s employment relationship with the Company, that
        Executive shall not seek employment with the Company or any affiliated entity
        at
        any time within two (2) years after his Termination Date, and that the Company
        has no obligation to employ him in the future.

      

      5.
        Executive further agrees that Executive will not disparage or subvert the
        Company, or make any statement reflecting negatively on the Company, its
        affiliated corporations or entities, or any of their officers, directors,
        employees, agents or representatives, including, but not limited to, any
        matters
        relating to the operation or management of the Company, Executive’s employment
        and the termination of Executive’s employment, irrespective of the truthfulness
        or falsity of such statement.

      

      6.
        In
        consideration for Executive’s agreements as set forth herein, the Company agrees
        to pay or provide to or for Executive the payments and benefits described
        in
        Section 2(b) of the Severance Agreement, the provisions of which are
        incorporated herein by reference. Except as set forth in this Agreement,
        it is
        expressly agreed and understood that Releasees do not have, and will not
        have,
        any obligations to provide Executive at any time in the future with any
        payments, benefits or considerations other than those recited in this paragraph,
        those excluded from release in Section 1(c) of this Agreement or those required
        by law, other than under the terms of any benefit plans which provide benefits
        or payments to former employees according to their terms.

      

      7.
        Executive understands and agrees that the payments, benefits and agreements
        provided in this Agreement are being provided to him in consideration for
        Executive’s acceptance and execution of, and in reliance upon Executive’s
        representations in, this Agreement. Executive acknowledges that if Executive
        had
        not executed this Agreement containing a release of all claims against the
        Company, Executive would not have been entitled to the payments and benefits
        set
        forth in Section 2(b) of the Severance Agreement.

      

      8.
        Executive acknowledges and agrees that the Company previously has satisfied
        any
        and all obligations owed to him under any employment agreement or offer letter
        Executive has with the Company and, further, that this Agreement supersedes
        any
        employment agreement or offer letter Executive has with the Company, and
        any and
        all other prior agreements or understandings, whether written or oral, between
        the parties which are inconsistent with this Agreement, and further, that,
        except as set forth expressly herein, no promises or

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      representations
        have been made to him in connection with the termination of Executive’s
        employment agreement, if any, or offer letter, if any, with the Company,
        or the
        terms of this Agreement or the Severance Agreement.

      

      9.
        If not
        otherwise filed by the Company with the U.S. Securities and Exchange Commission
        (“SEC”) and available through public disclosure from the SEC, Executive agrees
        not to disclose the terms of this Agreement or the Severance Agreement to
        anyone, except Executive’s spouse, attorney and, as necessary, tax/financial
        advisor, except as may be required by law. Likewise, the Company agrees that
        the
        terms of this Agreement will not be disclosed except as may be necessary
        to
        obtain approval or authorization to fulfill its obligations hereunder or
        as
        required by law. It is expressly understood that any violation of the
        confidentiality obligation imposed hereunder constitutes a material breach
        of
        this Agreement.

      

      10.
        Executive represents that Executive does not presently have in Executive’s
        possession any records and business documents, whether on computer or hard
        copy,
        and other materials (including but not limited to computer disks and tapes,
        computer programs and software, office keys, correspondence, files, customer
        lists, technical information, customer information, pricing information,
        business strategies and plans, sales records and all copies thereof)
        (collectively, the “Corporate Records”) provided by the Company and/or its
        predecessors, subsidiaries or affiliates or obtained as a result of Executive’s
        prior employment with the Company and/or its predecessors, subsidiaries or
        affiliates, or created by Executive while employed by or rendering services
        to
        the Company and/or its predecessors, subsidiaries or affiliates. Executive
        acknowledges that all such Corporate Records are the property of the Company.
        In
        addition, Executive shall promptly return in good condition any and all Company
        owned equipment or property, including, but not limited to, automobiles,
        personal data assistants, facsimile machines, copy machines, pagers, credit
        cards, cellular telephone equipment, business cards, laptops and computers,
        unless mutually agreed upon in writing. As of the Termination Date, the Company
        will make arrangements to remove, terminate or transfer any and all business
        communication lines including network access, cellular phone, fax line and
        other
        business numbers.

      

      11.
        Nothing in this Agreement shall prohibit or restrict Executive from: (i)
        making
        any disclosure of information required by law; (ii) providing information
        to, or
        testifying or otherwise assisting in any investigation or proceeding brought
        by,
        any federal regulatory or law enforcement agency or legislative body, any
        self-regulatory organization, or the Company’s designated legal, compliance or
        human resources officers; or (iii) filing, testifying, participating in or
        otherwise assisting in a proceeding relating to an alleged violation of any
        federal, state or municipal law relating to fraud, or any rule or regulation
        of
        the Securities and Exchange Commission or any self-regulatory
        organization.

      

      12.
        The
        parties agree and acknowledge that the agreement by the Company described
        herein, and the settlement and termination of any asserted or unasserted
        claims
        against the Releasees, are not and shall not be construed to be an admission
        of
        any violation of any federal, state or local statute or regulation, or of
        any
        duty owed by any of the Releasees to Executive.

      

      13.
        Executive agrees and recognizes that should Executive breach any of the
        obligations or covenants set forth in this Agreement, the Company will have
        no
        further obligation to provide Executive with the consideration set forth
        herein,
        and will have the right to seek repayment of all consideration paid up to
        the
        time of any such breach. Further, Executive acknowledges in the event of
        a
        breach of this Agreement, Releasees may seek any and all appropriate relief
        for
        any such breach, including equitable relief and/or money damages, attorneys’
fees and costs.

      

      14.
        Executive further agrees that the Company shall be entitled to preliminary
        and
        permanent injunctive relief, without the necessity of proving actual damages,
        as
        well as to an equitable accounting of all earnings, profits and other benefits
        arising from any violations of this Agreement, which rights shall be cumulative
        and in addition to any other rights or remedies to which the Company may
        be
        entitled.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

          15.
        This
        Agreement and the obligations of the parties hereunder shall be construed,
        interpreted and enforced in accordance with the laws of the State of Delaware,
        without giving effect to the principles of conflict of laws of such
        State.

      

      16.
        Executive certifies and acknowledges as follows:

      

      (a)
        That
        Executive has read the terms of this Agreement, and that Executive understands
        its terms and effects, including the fact that, other than as excepted in
        paragraph 1 hereof, Executive has agreed to RELEASE AND FOREVER DISCHARGE
        the
        Company and each and every one of its affiliated entities from any legal
        action
        arising out of Executive’s employment relationship with the Company and the
        termination of that employment relationship; and

      

      (b)
        That
        Executive has signed this Agreement voluntarily and knowingly in exchange
        for
        the consideration described herein, which Executive acknowledges is adequate
        and
        satisfactory to him and which Executive acknowledges is in addition to any
        other
        benefits to which Executive is otherwise entitled; and

      

      (c)
        That
        Executive has been and is hereby advised in writing to consult with an attorney
        prior to signing this Agreement; and

      

      (d)
        That
        Executive does not waive rights or claims that may arise after the date this
        Agreement is executed; and

      

      (e)
        That
        the Company has provided him with a period of [twenty-one (21) -
        generally applicable for an individual termination] or
        [forty-five (45) - generally applicable for a group
        termination] days within which to consider this Agreement, and that
        Executive has signed on the date indicated below after concluding that this
        Separation of Employment Agreement and General Release is satisfactory to
        him;
        and

      

      (f)
        Executive acknowledges that this Agreement may be revoked by him within seven
        (7) days after execution, and it shall not become effective until the expiration
        of such seven (7) day revocation period. In the event of a timely revocation
        by
        Executive, this Agreement will be deemed null and void and the Company will
        have
        no obligations hereunder.

      

      Intending
        to be legally bound hereby, Executive and the Company executed the foregoing
        Separation of Employment Agreement and General Release this
            
        day of
            ,
            .

       

      
        
          	 	 	
                  Witness:

                
	
                  Executive

                	 	 
	 	 	 
	
                  MASSEY
                    ENERGY COMPANY

                	 	 
	 	 	 
	
                  By:

                	 	
                  Witness:

                
	
                  Name:

                	 	 
	
                  Title:exh10_1.htm

    Exhibit
      10.1

    
 

    RETIREMENT
      AGREEMENT AND GENERAL RELEASE

    

    

    This
      Retirement Agreement and General Release (the “Agreement”) is made as of
      the 1st day of
      October 2007, by and between The Hershey Company, a Delaware corporation (the
      “Company”), and Marcella K. Arline (“Employee”), and together with
      the Company, (the “Parties”).

    

    RECITALS

    

    WHEREAS,
      Employee is on the date hereof an employee of the Company holding the office
      of
      Senior Vice President, Chief People Officer; and

    

    WHEREAS,
      Employee was eligible to elect to retire with enhanced benefits under the
      Company’s 2005 Early Retirement Program (“2005 ERP”); and

    

    WHEREAS,
      the Chair of the Compensation and Executive Organization Committee (“Committee”)
      of the Company’s Board of Directors informed Employee in connection with her
      consideration of retirement under the 2005 ERP that if she did not retire under
      such program, the Committee would consider providing her additional benefits
      upon her actual retirement to compensate her for foregone benefits under the
      2005 ERP; and

    

    WHEREAS,
      Employee has informed the Company that she desires to retire from the Company
      (“Retirement”) effective at the close of business on December 31, 2007,
      whereupon Employee’s employment with the Company shall terminate;
      and

    

    WHEREAS,
      Employee has informed the Company that she desires to resign as an officer
      of
      the Company (“Resignation”) effective on or before December 31, 2007 (the
      effective date of her resignation as set forth in a written notice to the
      Secretary of the Company is hereinafter referred to as her “Resignation
      Date”); and

    

    WHEREAS,
      Employee will remain an active employee of the Company following the Resignation
      Date through and including December 31, 2007 and will provide services relating
      to the transition of her duties as Chief People Officer to her successor
      (“Transition Services”) from the Resignation Date to and including
      December 31, 2007 (such period hereinafter called the “Transition
      Period”); and

    

    WHEREAS,
      as set forth on Annex A hereto, the value of certain benefits described thereon
      to which Employee would have been entitled under the 2005 ERP exceeds the
      estimated value of such benefits if employee retired effective December 31,
      2007
      by $983,121.00; and

    

    WHEREAS,
      in order to secure the services of Employee throughout the Transition Period
      and
      in consideration of her not having elected to retire under the 2005 ERP, Company
      is willing to retain Employee during such period as an active employee of the
      Company and to pay her $983,121.00 in addition to all other benefits and
      payments to which she will be entitled upon her retirement; and

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    WHEREAS,
      the Company and Employee desire voluntarily to enter into this Agreement in
      order to set forth the definitive rights and obligations of the Parties during
      the Transition Period and at Retirement; and

    

    WHEREAS,
      the Parties acknowledge that they have entered into this Agreement for their
      mutual cooperation and benefit.

    

    NOW,
      THEREFORE, in consideration of the mutual covenants, commitments and agreements
      set forth herein, and for other good and valuable consideration, the receipt
      and
      sufficiency of which are hereby acknowledged, the Parties, intending to be
      legally bound, hereby agree as follows:

    

    1.           Acknowledgment
      of Retirement Date.  The Parties acknowledge and agree that the
      Retirement shall be effective (the “Retirement Date”) as of the earliest
      of (i) the close of business on December 31, 2007; (ii) in the event Employee
      breaches any of her covenants, agreements or obligations hereunder, the date
      the
      Company provides notice of such breach to Employee; and (iii) Employee’s date of
      death.

    

    2.           Resignation
      from Company Offices. Effective on the Resignation Date, Employee hereby
      voluntarily resigns from all of her positions and offices with the Company
      and
      its subsidiaries, including, without limitation, Senior Vice President, Chief
      People Officer and each office she may occupy of any subsidiary of the
      Company.

    

    3.           Employee’s
      Acknowledgment of Consideration.  Employee specifically
      acknowledges and agrees that certain of the obligations created and payments
      made to her by the Company under this Agreement are promises and payments to
      which she is not otherwise entitled under any law, contract, or benefit plan
      maintained by the Company.

    

    
      	
              4.  

            	
              Transition
                Period and Retirement.

            

    

    

    
      	
               

            	
              4.1

            	
              Employee
                shall remain an active employee of the Company during the Transition
                Period and her employment with the Company shall continue during
                the
                Transition Period on the same basis and under the same terms as existed
                immediately prior to the Resignation Date, except that (i) Employee
                shall
                have no assigned duties and shall perform no services for the Company
                other than the Transition Services as reasonably requested by the
                Company
                from time to time, and (ii) Employee’s coverage under the Company’s
                short-term disability plan, and the Company’s premium contributions under
                the long-term disability plan shall cease as of the Resignation
                Date.

            

    

    

    
      	
               

            	
              4.2

            	
              Following
                Employee’s Retirement Date and on or before January 31, 2008, the Company
                shall pay to Employee as a lump sum bonus, the amount of $983,121.00,
                subject to customary withholding:

            

    

    

    
      	
               

            	
              4.3

            	
              Except
                as provided for in Section 6 below, employee shall be free to seek
                and
                accept other employment after the Retirement
                Date.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    5.           COBRA
      Rights and Retiree Medical Coverage.

    

    
      	
            	
              5.1.1

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

            

    

    

    
      	
            	
              5.1.2

            	
              As
                an alternative to COBRA coverage, Employee shall be offered the
                opportunity to elect coverage under The Hershey Company Retiree Medical
                and Life Insurance Plan, as amended, for so long as the Company shall
                make
                such plan available.  It is the Parties’ intention that, should
                Employee elect coverage under this Section 5.1.2, such coverage shall
                be
                deemed an alternative medical coverage which satisfies the continuation
                of
                coverage requirements of COBRA.  As such, the period of time
                which Employee receives coverage under the Retiree Medical and Life
                Insurance Plan shall be credited towards Employee’s continuation of
                coverage requirements under COBRA.

            

    

    

    6.           Confidential,
      Proprietary and Privileged Information; Non-Competition.  The
      parties agree the terms and conditions of that certain Long-Term Incentive
      Program Participation Agreement and Mutual Agreement to Arbitrate Claims by
      and
      between the Company and Employee executed by Employee on May 5, 2005
      (“Participation and Arbitration Agreement”), a copy of which is attached
      hereto, are incorporated herein by reference and made a part hereof as if fully
      set forth herein.  Notwithstanding any provisions to the contrary in
      the Participation and Arbitration Agreement, the terms and conditions thereof
      shall remain in effect for three years after the Retirement Date regardless
      of
      whether Employee is eligible or not to receive benefits under the
      SERP.

    

    7.           General
      Release and Waiver by Employee.

    

    
      	
               

            	
              7.1

            	
              Employee,
                for and on behalf of herself and each of her heirs, executors,
                administrators, personal representatives, successors and assigns,
                hereby
                acknowledges full and complete satisfaction of and fully and forever
                releases, acquits and discharges the Company, together with its
                subsidiaries and affiliates, and each of its and their past and present
                direct and indirect stockholders, directors, members, partners, officers,
                employees, agents, inside and outside counsel and representatives
                and its
                and their respective heirs, executors, administrators, personal
                representatives, successors and assigns (collectively, the
                “Releasees”), from any and all claims, demands, suits, causes of
                action, liabilities, obligations, judgments, orders, debts, liens,
                contracts, agreements, covenants and

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    causes
      of
      action of every kind and nature, whether known or unknown, suspected or
      unsuspected, concealed or hidden, vested or contingent, in law or equity,
      existing by statute, common law, contract or otherwise, which have existed,
      may
      exist or do exist, through and including the execution and delivery by Employee
      of this Agreement (but not including the Parties’ performance under this
      Agreement), including, without limitation, any of the foregoing arising out
      of
      or in any way related to or based upon:

     

    
      	
               

            	
              7.1.1

            	
              Employee's
                application for and employment with the Company, her being an employee
                of
                the Company, her Resignation or her
                Retirement;

            

    

    

    
      	
               

            	
              7.1.2

            	
              any
                and all claims in tort or contract, and any and all claims alleging
                breach
                of an express or implied, or oral or written, contract, policy manual
                or
                employee handbook;

            

    

    

    
      	
               

            	
              7.1.3

            	
              any
                alleged misrepresentation, coercion, duress, defamation, interference
                with
                contract, intentional or negligent infliction of emotional distress,
                sexual harassment, negligence or wrongful discharge;
                or

            

    

    

    
      	
               

            	
              7.1.4

            	
              any
                federal, state or local statute, ordinance or regulation, including
                but
                not limited to the Fair Labor Standards Act, the Equal Pay Act, Title
                VII
                of the Civil Rights Act of 1964, the Americans With Disabilities
                Act, the
                Family and Medical Leave Act, and the Pennsylvania Human Relations
                Act.

            

    

    

    
      	
               

            	
              7.2

            	
              Employee
                acknowledges and agrees that other than to seek the Company’s performance
                under this Agreement she is waiving all rights to sue or obtain equitable,
                remedial or punitive relief from any or all Releasees of any kind
                whatsoever, including, without limitation, reinstatement, back pay,
                front
                pay, attorneys' fees and any form of injunctive
                relief.  Employee acknowledges and agrees that this waiver and
                release is an essential and material term of this
                Agreement.  Employee further acknowledges and agrees that she
                will not assert any breach of any agreement, plan, or right referred
                to
                herein based on any action or inaction of the Releasees prior to
                the date
                hereof.

            

    

    

    
      	
               

            	
              7.3

            	
              Employee
                understands and intends that this Section 7 constitutes a general
                release,
                and that no reference therein to a specific form of claim, statute
                or type
                of relief is intended to limit the scope of such general release
                and
                waiver; provided, however, notwithstanding any other provision of
                this
                Section 7, the provisions of this Section 7 shall not apply to any
                rights
                Employee may have under the Age Discrimination in Employment Act
                of 1967,
                as amended.

            

    

    

    
      	
               

            	
              7.4

            	
              Employee
                expressly waives all rights afforded by any statute which limits
                the
                effect of a release with respect to unknown claims.  Employee
                understands the significance of her release of unknown claims and
                her
                waiver of statutory protection against a release of unknown
                claims.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
 

    
      	
               

            	
              7.5

            	
              Employee
                agrees that she will not be entitled to or accept any benefit from
                any
                claim or proceeding within the scope of this Section 7 general release
                that is filed or instigated by her or on her behalf with any agency, court
                or other government entity.

            

    

    

    8.           Employee’s
      Representations and Covenants Regarding Actions.  Employee
      represents, warrants and covenants to each of the Releasees that at no time
      prior to or contemporaneous with her execution of this Agreement has she filed
      or caused or knowingly permitted the filing or maintenance, in any state,
      federal or foreign court, or before any local, state, federal or foreign
      administrative agency or other tribunal, any charge, claim or action of any
      kind, nature and character whatsoever (“Claim”), known or unknown,
      suspected or unsuspected, which she may now have or has ever had against the
      Releasees which is based in whole or in part on any matter referred to in
      Section 7.1 (or Section 7.3, with the exception of the proviso thereto) above,
      and, to the maximum extent permitted by law Employee is prohibited from filing
      or maintaining, or causing or knowingly permitting the filing or maintaining,
      of
      any such Claim in any such forum.  Employee hereby grants the Company
      her perpetual and irrevocable limited power of attorney with full right, power
      and authority to take all actions necessary to dismiss or discharge any such
      Claim.  Employee further covenants and agrees that she will not
      encourage any person or entity, including but not limited to any current or
      former employee, officer, director or stockholder of the Company, to institute
      any Claim against the Releasees or any of them, and that except as expressly
      permitted by law or administrative policy or as required by legally enforceable
      order she will not aid or assist any such person or entity in prosecuting such
      Claim.

    

    9.           No
      Disparaging Remarks.  Employee hereby covenants to each of the
      Releasees and agrees that she shall not, directly or indirectly, within or
      without the Company, make or solicit or encourage others to make or solicit
      any
      disparaging or negative remarks concerning the Releasees (as defined in Section
      7 of this Agreement), or any of their products, services, businesses or
      activities.  Employee understands that her breach of this Section 9
      and the Company’s delivery to her of notice of such breach shall subject her to
      liability for any damages arising from such remarks and could cause her benefits
      under the SERP to be suspended or terminated.

    

    10.           No
      Conflict of Interest.  Employee hereby covenants and agrees that
      she shall not, directly or indirectly, incur any obligation or commitment,
      or
      enter into any contract, agreement or understanding, whether express or implied,
      and whether written or oral, which would be in conflict with her obligations,
      covenants or agreements hereunder or which could cause any of her
      representations or warranties made herein to be untrue or
      inaccurate.

    

    11.           Confidentiality.  Employee
      represents that she has not discussed, and agrees that she will not discuss,
      this Agreement or the circumstances of her Resignation and/or Retirement, except
      as approved by the Company, and that she will take affirmative steps to avoid
      or
      absent herself from any such discussion even if she is not an active participant
      therein.  EMPLOYEE ACKNOWLEDGES THE SIGNIFICANCE AND MATERIALITY OF
      THIS PROVISION TO THIS AGREEMENT, AND HER UNDERSTANDING THEREOF.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    12.           Return
      of Corporate Property; Conveyance of Information.  Employee hereby
      covenants and agrees that upon her Resignation, or at such earlier date as
      the
      Company may request in writing, Employee shall immediately return all documents,
      keys, ID cards, credit cards (without further use thereof), desktop and/or
      laptop computer, cell phones, Blackberry devices, and all other items which
      are
      the property of the Company and/or which contain confidential information;
      and,
      in the case of documents, to return any and all materials of any kind and in
      whatever medium evidenced, including, without limitation, all hard disk drive
      data, diskettes, thumb drives, microfiche, photographs, negatives, blueprints,
      printed materials, tape recordings and videotapes.

    

    13.           Remedies.
      In the event that Employee has breached any of her covenants, agreements or
      obligations under this Agreement, the Company shall notify Employee in writing
      at her home address as shown in the Company’s records of the reason for such
      determination.  The notice shall be sent via hand delivery or
      overnight courier.  Employee hereby acknowledges and affirms that in
      the event of any breach by Employee of any of her covenants, agreements and
      obligations hereunder, Employee’s Retirement shall be effective as of the day
      the Company provides notice thereof.  Employee further hereby
      acknowledges and affirms that in the event of such breach monetary damages
      would
      be inadequate to compensate the Releasees or any of
      them.  Accordingly, in addition to other remedies which may be
      available to the Releasees hereunder or otherwise at law or in equity, any
      Releasee shall be entitled to specifically enforce such covenants, obligations
      and restrictions through injunctive and/or equitable relief, in each case
      without the posting of any bond or other security with respect
      thereto.  Should any provision hereof be adjudged to any extent
      invalid by any court or tribunal of competent jurisdiction, each provision
      shall
      be deemed modified to the minimum extent necessary to render it
      enforceable.

    

    14.           Acknowledgment
      of Voluntary Agreement.  Employee hereby acknowledges and affirms
      that she is entering into this Agreement knowingly and voluntarily, without
      coercion or duress of any sort, in order to receive the payments and other
      consideration from the Company as set forth herein.  Employee
      acknowledges and affirms that she has been given adequate opportunity to review
      and consider this Agreement.

    

    15.           Complete
      Agreement; Inconsistencies.  This Agreement, Annex A hereto and
      the Participation and Arbitration Agreement  constitute the complete
      and entire agreement between Employee and  the Company with respect to
      the subject matter hereof, and supersede in their entirety any and all prior
      understandings, commitments, obligations and/or agreements, whether written
      or
      oral, with respect thereto; it being understood and agreed that this Agreement,
      Annex A and the Participation and Arbitration Agreement, including the mutual
      covenants, agreements, acknowledgments and affirmations contained herein and
      therein, are intended to constitute a complete settlement and resolution of
      all
      matters set forth in Section 7 hereof.

    

    16.           No
      Strict Construction.  The language used in this Agreement shall be
      deemed to be the language mutually chosen by the Parties to reflect their mutual
      intent, and no doctrine of strict construction shall be applied against any
      Party.

    

    17.           Third
      Party Beneficiaries.  The Releasees are intended third-party
      beneficiaries of this Agreement, and this Agreement may be enforced by each
      of
      them in accordance with the terms hereof in respect of the rights granted to
      such Releasees hereunder. Except and to the extent set 

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    forth
      in
      the preceding sentence, this Agreement is not intended for the benefit of any
      person other than the Parties, and no such other person shall be deemed to
      be a
      third party beneficiary hereof.  Without limiting the generality of
      the foregoing, it is not the intention of the Company to establish any policy,
      procedure, course of dealing or plan of general application for the benefit
      of
      or otherwise in respect of any other employee, officer, director or stockholder,
      irrespective of any similarity between any contract, agreement, commitment
      or
      understanding between the Company and such other employee, officer, director
      or
      stockholder, on the one hand, and any contract, agreement, commitment or
      understanding between the Company and Employee, on the other hand, and
      irrespective of any similarity in facts or circumstances involving such other
      employee, officer, director or stockholder, on the one hand, and the Employee,
      on the other hand.

    

    18.           Tax
      Withholdings.  Notwithstanding any other provision herein, the
      Company shall be entitled to withhold from any amounts otherwise payable
      hereunder to Employee any amounts required to be withheld in respect of federal,
      state or local taxes.

    

    19.           Governing
      Law.  All issues and questions concerning the construction,
      validity, enforcement and interpretation of this Agreement shall be governed
      by,
      and construed in accordance with, the laws of the Commonwealth of Pennsylvania,
      without giving effect to any choice of law or conflict of law rules or
      provisions (whether of the Commonwealth of Pennsylvania or any other
      jurisdiction) that would cause the application hereto of the laws of any
      jurisdiction other than the Commonwealth of Pennsylvania.  In
      furtherance of the foregoing, the internal law of the Commonwealth of
      Pennsylvania shall control the interpretation and construction of this
      Agreement, even though under any other jurisdiction's choice of law or conflict
      of law analysis the substantive law of some other jurisdiction may ordinarily
      apply.

    

    20.           Severability.  The
      invalidity or unenforceability of any provision of this Agreement shall not
      affect the validity or enforceability of any other provision of this Agreement,
      which shall otherwise remain in full force and effect.

    

    21.           Counterparts.  This
      Agreement may be executed in separate counterparts, each of which shall be
      deemed to be an original and all of which taken together shall constitute one
      and the same agreement.

    

    22.           Successors
      and Assigns.  The Parties’ obligations hereunder shall be binding
      upon their heirs, personal representatives, successors and
      assigns.  The Parties’ rights and the rights of the other Releasees
      shall inure to the benefit of, and be enforceable by, any of the Parties’ and
      Releasees’ respective heirs, personal representatives, successors and
      assigns.

    

    23.           Amendments
      and Waivers.  No amendment or waiver shall be binding upon any
      party hereto unless consented to in writing by such party.

    

    24.           Headings.  The
      headings of the Sections and subsections hereof are for purposes of convenience
      only, and shall not be deemed to amend, modify, expand, limit or in any way
      affect the meaning of any of the provisions hereof.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    25.           Waiver
      of Jury Trial.  Each of the Parties hereby waives its rights to a
      jury trial of any claim or cause of action based upon or arising out of this
      Agreement or any dealings between the Parties relating to the subject matter
      hereof to the extent the resolution of such matter is not governed by the
      Participation and Arbitration Agreement.  Each of the Parties also
      waives any bond or surety or security upon such bond which might, but for this
      waiver, be required of the other party.  The scope of this waiver is
      intended to be all-encompassing of any and all disputes that may be filed in
      any
      court and that relate to the subject matter of this Agreement, including,
      without limitation, contract claims, tort claims, breach of duty claims, and
      all
      other common law and statutory claims.  EACH OF THE PARTIES
      ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO THIS
      AGREEMENT, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS
      AGREEMENT AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED
      FUTURE DEALINGS.  Each of the Parties further represents and warrants
      that she or it knowingly and voluntarily waives her or its jury trial
      rights.  This waiver may not be modified orally, but only in writing,
      and the waiver shall apply to any subsequent amendments, renewals, supplements
      or modifications to this Agreement.  In the event of litigation, this
      Agreement may be filed as a written consent to a trial by the
      court.

    

    *  *  *  *  *

    

    IN
      WITNESS WHEREOF, the Parties have executed this Agreement effective as of the
      date of the first signature affixed below or as otherwise provided in this
      Agreement.

    

    READ
      CAREFULLY BEFORE SIGNING

    

    I
      have
      read this Agreement.  I understand that by executing this Agreement I
      will relinquish any right or demand, other than those created by or otherwise
      set forth in this Agreement, I may have against the Releasees or any of
      them.

    

    

    
      	
              DATED:  November
                11, 2007

            	
              /s/
                Marcella K. Arline

              Marcella
                K. Arline

               

            
	 	 
	 	
              THE
                HERSHEY COMPANY

               

            
	
              DATED: 
                October 11, 2007

            	
              /s/
                Burton H. Snyder

              Burton
                H. Snyder

              Senior
                Vice President, General Counsel

              and
                Secretary

            

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     Annex
      A

    Retirement
      Agreement

    Marcella
      K. Arline

     

    ERP
      Make-Up Value

     

    

    
      	
              ERP
                Make-up is sum of difference in minimum benefit provided by ERP less
                estimated benefit as 12/31/07 plus additional vesting of 1,000 RSUs
                as
                provided by ERP

            	 

    

    

    
      	 	 
	
              Retirement
                values

            	
              2005

              ERP

              Value

            	 	
              Est.
                Benefit

              as
                of

              12/31/2007

            	 	
              Difference

              between

              ERP
                and Est.

            
	 	 	 	 	 	 
	
              HRA
                Qualified Pension

            	 	
              $818,907

            	 	 	
              $557,959

            	 	 	
              $260,948

            
	
              DB
                SERP

            	 	
              $4,106,982

            	
              1

            	 	
              $3,430,429

            	2	 	
              $676,553

            
	 	 	
              $4,925,889

            	 	 	
              $3,988,388

            	 	 	
              $937,501

            
	 	 	 	 	 	 	 	 	 
	
              RSU
                value3

            	 	 	 	 	 	 	 	 
	
              1,000
                Units @ $45.62

            	 	 	 	 	 	 	 	
              $45,620

            
	 	 	 	 	 	 	 	 	 
	
              ERP
                Make-up

            	 	 	 	 	 	 	 	
              $983,121

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

    

    

    
      	
              1 
Minimum
                provided by ERP

            	 
	
              2 
Current
                SERP benefit estimated as of 12/31/07 based on rolling 30-year Treasury
                rate (9 months actual and 3 months at current rate)
                4.91%

            	 
	
              3 
Average
                closing price Hershey common stock, Sept 1 - Sept 14, 2007

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