Document:

Second Amendment to Amended and Restated Service Agreement

 Exhibit 10.1 
  
 SECOND AMENDMENT TO 
 AMENDED AND RESTATED SERVICE AGREEMENT 
  
 This
amendment is made effective August 10, 2005, between PDHC, Ltd., a Minnesota corporation (“Service Company”), and PDG, P.A., a Minnesota professional association (“Provider”). 
  
 Background Information 
  
 A. Service Company and Provider (the “Parties”) are the Parties to
an Amended and Restated Service Agreement dated January 1, 1999, as amended by a first amendment dated January 1, 2001, and as otherwise modified from time to time prior to the date of this amendment (collectively, the “Service
Agreement”). 
  
 B. The Parties desire to modify certain
provisions of the Service Agreement and are executing this amendment for that purpose. 
  
 Statement of Agreement 
  
 The Parties hereby acknowledge the foregoing Background Information and agree as follows: 
  
 §1. Definitions. For purposes of the Service Agreement and this amendment, the term “Budgeted Provider Expense” shall mean, for any
period (e.g., a calendar quarter or calendar year), the percentage of Adjusted Gross Revenue allocated to Provider Expense for that period for purposes of the Budget and certain provisions of the Service Agreement and this amendment. 
  
 Certain other terms are defined in other provisions of this amendment and
shall have the respective meanings set forth in those provisions. All other capitalized terms used but not otherwise defined in this amendment shall have the respective meanings given those terms in the Service Agreement. 
  
 §2. 2005 Financial Terms. The Parties have agreed upon a Budget
for 2005. The Budgeted Provider Expense and Service Fee amounts for calendar year 2005 and the calendar quarters in 2005 are set forth in the attached Exhibit A-1, which is hereby incorporated herein by reference. The Budgeted Provider Expense and
Service Fee amounts for each calendar year after 2005, and for the calendar quarters in each such calendar year, shall continue to be the amounts set forth in the attached Exhibit A-1 unless otherwise agreed by the Parties. 
  
 §3. Performance Fee and Fee Adjustment. The Performance Fee and
the Performance Fee adjustment for the first six months of 2005 have been and shall be calculated using the methodology contained in the Service Agreement prior to this amendment. For the last six months of 2005, and for each calendar year
thereafter during the Term, the Performance Fee shall be calculated as contemplated by §7.3(b) of the Service Agreement (prior to any adjustment), but the Performance Fee adjustment contemplated by §7.4 of the Service 

 Agreement shall no longer apply. Instead, the Performance Fee and potentially the Service Fee (collectively, the
“Fees”) shall be subject to adjustment pursuant to the following provisions (the “Fee Adjustment”): 
  
 (a) If, for any calendar year or portion of a calendar year, as applicable (the “Adjustment Calculation Period”), actual
Provider Expense is less than or equal to Budgeted Provider Expense for that Adjustment Calculation Period, then the Fees for that Adjustment Calculation Period shall be reduced by an amount equal to 11% of the Calculated Margin. 
  
 (b) If, for any Adjustment Calculation Period, actual
Provider Expense is greater than Budgeted Provider Expense for that Adjustment Calculation Period, then the Fees for that Adjustment Calculation Period shall be reduced by an amount equal to 11% of the Actual Margin. 
  
 (c) The Fee Adjustment shall be applied first as a reduction
of the Performance Fee, with the balance, if any, applied as a reduction of the Service Fee. 
  
 (d) The Fee Adjustment shall be calculated and accrued monthly and payable annually. 
  
 Notwithstanding any other provisions of this amendment to the contrary:

  
 (i) If the Budget for calendar year 2006 is
not approved by the Parties and, as a result, the Budget for 2005 is deemed to be adopted as contemplated by §4.13(a) of the Service Agreement as the Budget for 2006 for any portion of the first six months of 2006 (the “2006 Retroactive
Period”), then (A) the Fee Adjustment described above shall not apply for the 2006 Retroactive Period, and (B) the adjustment to the Fees, if any, for the 2006 Retroactive Period shall be an adjustment to the Performance Fee only, calculated as
provided in §7.4 of the Service Agreement, with the Service Fee amount used in that calculation to be an amount equal to the aggregate amount of the Service Fee and Performance Fee, as adjusted pursuant to §7.4 of the Service Agreement,
earned by Service Company in the portion of calendar year 2005 that corresponds to the 2006 Retroactive Period; and 
  
 (ii) If the Budget for 2006 is never approved by the Parties, then, unless and until a Budget is approved by the Parties for at least one
full calendar year after 2006 (without a portion of that Budget being deemed to be adopted pursuant to §4.13(a) of the Service Agreement), the methodology described in the immediately preceding subsection (i) shall apply to any portion of the
first six months of any subsequent calendar year during which the Budget for the prior year is deemed to be adopted pursuant to §4.13(a) of the Service Agreement (i.e., adjustment, if any, to the Performance Fee only, calculated as provided in
§7.4 of the Service Agreement, with the amount of the Service Fee used in that calculation to be the aggregate amount of the Service Fee and Performance Fee, as adjusted pursuant to §7.4 of the Service Agreement, earned by Service Company
in the corresponding portion of the first six months of the prior calendar year). 

 §4. Interpretation. This is an amendment to and a part of the Service Agreement, and the
provisions of this amendment shall apply from and after the date of this amendment as contemplated by this amendment. In the event of any inconsistency between the provisions of the Service Agreement and this amendment, the provisions of this
amendment shall control. Except as modified by this amendment, the Service Agreement shall continue in full force and effect without change. 
  

							
	 PDG, P.A.
	 	PDHC, LTD.
				
	 By
	 	 /s/ Gregory T. Swenson

	 	By	 	 /s/ Michael J. Vaughan

	 	 	Gregory T. Swenson, D.D.S.	 	 	 	Michael J. Vaughan
	 	 	President	 	 	 	Vice President

 FINANCIAL TERMS 
  

1. Budgeted Provider Expense [§4.13(a)]. For purposes of the Budget for calendar year 2005, the following percentages of Adjusted Gross
Revenue have been or shall be (as the case may be) allocated to Provider Expense for the following calendar quarters, respectively: 
  

									
	Qtr. 1

	 	Qtr. 2

	 	Qtr. 3

	 	Qtr. 4

	 	Full Year

	26.2%	 	26.0%	 	26.5%	 	26.5%	 	26.3%

  
 In each succeeding
annual Budget, unless the Parties otherwise mutually agree, such percentages of Adjusted Gross Revenue shall be allocated to Provider Expense for the respective calendar quarters of the applicable calendar year. 
  
 2. Service Fee [§7.3(a)]. The quarterly Service Fee for each
calendar quarter in calendar year 2005 has been or shall be (as the case may be) the lesser of (a) the Actual Margin for such calendar quarter, or (b) the amount set forth below for such calendar quarter: 
  

									
	Qtr. 1

	 	Qtr. 2

	 	Qtr. 3

	 	Qtr. 4

	 	Full Year

	$3,264,155	 	$3,543,029	 	$3,084,979	 	$3,401,287	 	$13,293,450

  
 In each succeeding
calendar year, unless the Parties otherwise mutually agree, such amounts shall be the Service Fees for that calendar year and the respective calendar quarters in that calendar year. 
  
 3. Adjustments. Any or all of the percentages or amounts contained in this exhibit my hereafter be changed from time
to time by written agreement of the Parties. Such agreement may be in the form of a new Exhibit A-1 to this agreement, which, if signed by both Parties, shall supersede this exhibit for all purposes thereafter. 
  
 The effective date of this Exhibit A-1 is August 10, 2005. 
  

							
	 PDG, P.A.
	 	PDHC, LTD.
				
	 By
	 	 /s/ Gregory T. Swenson

	 	By	 	 /s/ Michael J. Vaughan

	 	 	Gregory T. Swenson, D.D.S.	 	 	 	Michael J. Vaughan
	 	 	President	 	 	 	Vice PresidentGlobal Security representing the Registrant's 4.850% Notes due August 15, 2015

 Exhibit 4(b) 
  
 THIS SECURITY (AS DEFINED HEREIN) IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF CEDE & CO., AS A NOMINEE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC” OR “THE DEPOSITORY”). THIS GLOBAL SEECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON
OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES HEREINAFTER DESCRIBED. UNLESS AND UNTIL THIS SECURITY IS SO EXCHANGED, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR
ANOTHER NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR TO DTC OR A NOMINEE OF SUCH SUCCESSOR TO DTC. 
  
 NEITHER THE HOLDER NOR THE BENEFICIAL OWNERS OF THIS GLOBAL SECURITY SHALL BE ENTITLED TO RECEIVE PAYMENT OF INTEREST HEREON EXCEPT PURSUANT TO THE
PROVISIONS HEREOF. 
  
 UNLESS THIS SECURITY IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC TO THE COMPANY (AS DEFINED HEREIN) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE TO BE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY AMOUNT PAYABLE THEREUNDER IS MADE PAYABLE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  

					
	No. 1	 	 	  	$250,000,000
	 	 	 	  	CUSIP No.: 427866 AM 0
	 	 	 	  	ISIN: US427866AM02

  
 THE HERSHEY COMPANY

  
 4.850% NOTE DUE AUGUST 15, 2015 
  
 The Hershey Company, a corporation duly organized and existing under the laws
of the State of Delaware (herein called the “Company,” which term includes any successor company), for value received, hereby promises to pay to Cede & Co., as a nominee of The Depository Trust Company, or its registered assigns, the
principal sum of Two Hundred Fifty Million Dollars ($250,000,000), or such amount as is indicated in the records of the Trustee (as defined herein) and the Depository, on August 15, 2015 and to pay interest thereon semi-annually in arrears on
February 15 and August 15 (each such date, an “Interest Payment Date”) of each year, beginning February 15, 2006, at the rate of 4.850% per year until the principal hereof is paid or made available for payment. Interest on the Note will be
computed on the basis of a 360-day year comprised of twelve 30-day months. Notwithstanding the foregoing, this Security shall bear interest from the most recent Interest Payment Date to which interest in respect hereof has been paid or duly provided
for, unless (i) the date hereof is such an Interest Payment Date, in which case from the 

 date hereof, provided, however, that if the Company shall default in the payment of interest due on the
date hereof, then this Security shall bear interest from the next preceding Interest Payment Date to which interest has been paid or, if no interest has been paid on this Security, from August 15, 2005, or (ii) no interest has been paid on this
Security, in which case from August 15, 2005. Notwithstanding the foregoing, if the date hereof is after February 1 or August 1 (whether or not a Business Day) (the “Record Date”), as the case may be, next preceding an Interest Payment
Date and before such Interest Payment Date, this Security shall bear interest from such Interest Payment Date, which interest shall be payable on the next succeeding Interest Payment Date; provided, however, that if the Company shall
default in the payment of interest due on such Interest Payment Date, then this Security shall bear interest from the next preceding Interest Payment Date to which interest has been paid, or, if no interest has been paid on this Security, from
August 15, 2005. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, subject to certain exceptions provided in the Indenture referred to on the reverse hereof, be paid to the Person in whose name
this Security is registered at the close of business on the Record Date next preceding such Interest Payment Date. 
  
 Payment of the principal of and any such interest on this Security will be made at the office or agency of the Company maintained for that purpose in the
Borough of Manhattan, The City of New York in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 
  
 Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further
provisions shall for all purposes have the same effect as if set forth on the face hereof. 
  
 Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose. 
  
 IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed under its corporate seal. 
  
 Dated: August 15, 2005 
  

			
	THE HERSHEY COMPANY
		
	By:	 	 /s/    David J. West

	Name:	 	David J. West
	Title:	 	Senior Vice President, Chief Financial Officer

  

	
	Attest:
	  
 /s/    Steven J. Holsinger

	 Steven J. Holsinger
 Assistant
Secretary

  

 2 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
  
 This is one of the Securities of the series designated herein and referred to
in the within-mentioned Indenture. 
  

			
	CITIBANK, N.A., as Trustee
		
	By	 	 /s/    Nancy H. Forte

	 	 	Authorized Signatory

  

 3 

 [REVERSE OF NOTE] 
  

THE HERSHEY COMPANY 
  
 This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or
more series under an Indenture, dated as of February 1, 1991 (herein called the “Indenture”), between the Company (formerly known as Hershey Foods Corporation) and Citibank, N.A., as Trustee (herein called the “Trustee”), to
which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, obligations, duties and immunities thereunder of the Company, the Trustee and the holders of the
Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is one of the series designated on the face hereof limited (except as provided in the Indenture) in aggregate principal amount to
$250,000,000. The separate series of Securities may be issued in various aggregate principal amounts, may mature at different times, may bear interest, if any, at different rates, may be subject to different redemption provisions (if any), may be
subject to different sinking funds (if any), may be subject to different covenants and Events of Default (as defined in the Indenture) and may otherwise vary as in the Indenture provided. The Indenture further provides that the Securities of a
single series may be issued at various times, with different maturity dates and may bear interest at different rates. 
  
 If an Event of Default with respect to Securities of this series shall occur and be continuing, then the Trustee or the holders of not less than 25% in
aggregate principal amount of the Securities of this series then Outstanding may declare the principal of the Securities of this series and accrued interest thereon, if any, to be due and payable in the manner and with the effect provided in the
Indenture. 
  
 The Indenture permits, with certain exceptions as
therein provided, the amendment or supplementing thereof and the modification of the rights and obligations of the Company and the rights of the holders of the Securities of each series to be affected under the Indenture at any time by the Company
and the Trustee with the consent of the holders of not less than 66 2/3% in aggregate principal amount of the
Securities at the time Outstanding of each series to be affected. The Indenture also contains provisions permitting the holders of specified percentages in principal amount of the Securities of each series at the time Outstanding, on behalf of the
holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults or Events of Default under the Indenture and the consequences of any such defaults or Events of Default.
Any such consent or waiver (unless revoked as provided in the Indenture) shall be conclusive and binding upon the holder and upon all future holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 
  
 No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest, if any, on this Security at the time, place and rate, if any, and in the coin or currency, herein prescribed. 
  
 This Security shall be exchangeable for Securities registered in the names of Persons other than the Depository with respect
to such series or its nominee only as provided in this paragraph. 
  
  

 4 

 This Security shall be so exchangeable if (x) the Depository notifies the Company that it is unwilling or unable to
continue as Depository for such series or at any time ceases to be a clearing agency registered as such under the Securities Exchange Act of 1934, as amended (y) the Company executes and delivers to the Trustee an Officers’ Certificate
providing that this Security shall be so exchangeable or (z) there shall have occurred and be continuing an Event of Default with respect to the Securities of such series. Securities so issued in exchange for this Security shall be of the same
series, having the same interest rate, if any, and maturity and having the same terms as this Security, in authorized denominations and in the aggregate having the same principal amount as this Security and registered in such names as the Depository
for such Global Security shall direct. 
  
 As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of a Security of the series of which this Security is a part is registrable in the Security register, upon due presentment of this Security for registration of transfer at
the office or agency of the Company in any place where the principal of and interest, if any, on this Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security
registrar, duly executed by the holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this series, having the same interest rate, if any, and maturity and having the same terms as this Security, of any
authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 
  
 The Securities of the series of which this Security is a part are issuable only in registered form without coupons in denominations of $1,000 and any
integral multiple in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series of a different
authorized denomination having the same interest rate, if any, and maturity and having the same terms as such Securities, as requested by the holder surrendering the same. 
  
 No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
  
 Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner
hereof for all purposes, whether or not this Security be overdue and notwithstanding any notation of ownership or other writing hereon, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 

 
 No recourse for the payment of the principal of or interest, if any, on
this Security, or for any claim based hereon or otherwise in respect hereof, and no recourse under or upon any obligation, covenant or agreement of the Company in the Indenture or any indenture supplemental thereto or in any Security, or because of
the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, official or director, as such, past present or future, of the Company or of any successor entity, either directly or through the Company or any
successor Company, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise, all such liability being by the acceptance hereof and as part of the consideration for the issue
hereof, expressly waived and released; provided, that nothing contained herein or in the Indenture shall be taken to prevent recourse to and the enforcement of the liability, if any, of any stockholder or subscriber to capital stock upon or
in respect of shares of capital stock not fully paid. 
  

 5 

 The Securities shall be redeemable at the option of the Company at any time and from time to time (a
“Redemption Date”), in whole or in part, at a redemption price (the “Redemption Price”) equal to the sum of (i) the principal amount of the Securities being redeemed plus accrued and unpaid interest, if any, up to but excluding
the Redemption Date and (ii) the Make-Whole Amount (as defined below), if any. 
  
 If the Company has given notice as provided in the Indenture and funds for the redemption of the Securities called for redemption have been made available on the Redemption Date, such Securities shall cease to bear
interest on the Redemption Date. Thereafter, the only right of the holders of the Securities shall be to receive payment of the Redemption Price. 
  
 The Company shall give notice of any optional redemption to holders of the Security at their addresses, as shown in the security register for the
Securities, not more than 45 nor less than 30 days prior to the Redemption Date. The notice of redemption shall specify, among other items, the Redemption Price and the principal amount of the Securities held by such holder to be redeemed.

  
 If less than all of the Securities are to be redeemed, the
Company shall give the Trustee at least 60 days prior notice of the Redemption Date and of the aggregate principal amount of the Securities to be redeemed, and the Trustee shall select the Securities or portions of Securities to be redeemed either
pro rata or by such method as the Trustee shall deem fair and appropriate; provided that if, at the time of redemption, such Securities are registered as Global Securities, the Depository shall determine, in accordance with its procedures,
the principal amount of such Securities held by each owner of beneficial interests in Global Securities to be redeemed. The Trustee may select for redemption Securities and portions of Securities in denominations of $1,000 and integral multiples
thereof. 
  
 “Make-Whole Amount” means the excess of (1)
the aggregate present value, on the Redemption Date, of the principal being redeemed or paid and the amount of interest (exclusive of interest accrued to the Redemption Date or accelerated payment) that would have been payable if such redemption or
accelerated payment had not been made over (2) the aggregate principal amount of the Securities being redeemed or paid. Net present value shall be determined by discounting, on a semi-annual basis, such principal and interest at the Reinvestment
Rate (as defined below and as determined on the third Business Day preceding the date such notice of redemption is given or declaration of acceleration is made) from the respective dates on which such principal and interest would have been payable
if such redemption or accelerated payment had not been made. 
  
 “Reinvestment Rate” for the Securities means 0.15%, plus the arithmetic mean of the yields under the respective heading “Week Ending” published in the most recent Statistical Release (as defined below) under the caption
“Treasury Constant Maturities” for the maturity (rounded to the nearest month) corresponding to the remaining life to maturity, as of the payment date of the principal being redeemed or paid. If no maturity exactly corresponds to such
maturity, yields for the two published maturities most closely corresponding to such maturity shall be calculated pursuant to the immediately preceding sentence and the Reinvestment Rate shall be interpolated or extrapolated from such yields on a
straight-line basis, rounding in each of such relevant periods to the nearest month. For the purpose of calculating the Reinvestment Rate, the most recent Statistical Release published prior to the date of determination of the Make-Whole Amount
shall be used. 
  

 6 

 “Statistical Release” means the statistical release designated “H.15(519)” or any
successor publication which is published weekly by the Federal Reserve System and which establishes yields on actively traded United States government securities adjusted to constant maturities, or, if such statistical release is not published at
the time of any determination under the Indenture, then such other reasonably comparable index which shall be designated in good faith by the Company. 
  
 All terms used in this Security and not otherwise defined herein that are defined in the Indenture shall have the meanings assigned to them in the
Indenture. 
  
 This Security shall be governed by and construed in
accordance with the laws of the State of New York. 
  

 7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}]]