Document:

First Supplemental Indenture dated as of November 12, 2010

 Exhibit 4.1 

 
  

FIRST SUPPLEMENTAL INDENTURE 
 by and among 
 LESLIE’S POOLMART, INC. 

and 
 THE BANK
OF NEW YORK MELLON TRUST COMPANY, N.A. 
 as Trustee 

 
  

Dated as of November 12, 2010 
  

 
 7 
3/4% SENIOR NOTES DUE 2013 
 (Supplemental to the Indenture dated as of January 25, 2005) 
  

 

 LESLIE’S POOLMART, INC. 

FIRST SUPPLEMENTAL INDENTURE 
 This First Supplemental Indenture, dated as of November 12, 2010 (this “Supplemental Indenture”), is entered into between Leslie’s Poolmart, Inc., a Delaware corporation
(the “Company”) and The Bank of New York Mellon Trust Company, N.A. (f/k/a The Bank of New York Trust Company, N.A.), as trustee (the “Trustee”). Capitalized terms used but not otherwise defined herein
shall have the meanings ascribed to such terms in the Indenture (as defined below). 
 WITNESSETH: 

WHEREAS, this Supplemental Indenture supplements the Indenture dated as of January 25, 2005 (the “Original
Indenture” and, together with this Supplemental Indenture, the “Indenture”) between the Company and the Trustee; 
 WHEREAS, the Company’s 7 3/4% Senior Notes due 2013 in the original aggregate principal amount of $170,000,000 were issued pursuant to the Original Indenture (the
“Notes”); 
 WHEREAS, the Company has commenced a tender offer (the “Tender
Offer”) to holders of the Notes upon the terms and subject to the conditions set forth in the Offer to Purchase and Consent Solicitation Statement, dated October 27, 2010, as amended and supplemented from time to time; 

WHEREAS, in connection with the Tender Offer, the Company has solicited from the holders of the Notes consents (the “Consent
Solicitation”) to the adoption of certain proposed amendments set forth in Section 1.01 hereof (the “Proposed Amendments”) to the Original Indenture; 

WHEREAS, certain terms, including the Proposed Amendments, of the Original Indenture and the Notes may be amended with the consent of
holders of a majority in aggregate principal amount of the Notes (the “Requisite Consents”); 
 WHEREAS,
the Company has obtained the Requisite Consents to the Proposed Amendments pursuant to the Consent Solicitation; 
 WHEREAS, the
Company desires to supplement and amend the Original Indenture to effect the Proposed Amendments; 
 WHEREAS, upon the execution
and delivery of this Supplemental Indenture, this Supplemental Indenture shall become effective, but the Proposed Amendments will not become operative until all conditions to the Tender Offer set forth in the Consent Solicitation are satisfied or
waived by the Company and all validly tendered Notes are accepted by the Company for purchase pursuant to the Tender Offer; and 

WHEREAS, the Company hereby certifies that all covenants and conditions precedent, if any, provided for in the Original Indenture
relating to the execution, delivery and performance of 

 
this Supplemental Indenture have been complied with, and all things necessary to make this Supplemental Indenture a valid, legally binding agreement of the Company and the Trustee, in accordance
with its terms, and a valid, legally binding amendment of, and supplement to, the Original Indenture have been done. 
 NOW,
THEREFORE, the parties hereto agree, as follows: 
 ARTICLE 1. 

AMENDMENTS TO INDENTURE 
 Section 1.01 Amendments. Subject to this Section 1.01 becoming operative as described in Section 2.01, the terms of the Original Indenture are hereby amended, supplemented,
modified or deleted as follows. 
  

	 	(a)	The following sections of the Original Indenture and any corresponding provisions in the Notes are hereby deleted in their entirety and replaced with
“[Intentionally Omitted.]”: 

  

	 	•	 	 Section 4.03 (Limitation on Restricted Payments), 

 

	 	•	 	 Section 4.04 (Limitation on Incurrence of Additional Indebtedness), 

 

	 	•	 	 Section 4.06 (Payment of Taxes and Other Claims), 

 

	 	•	 	 Section 4.07 (Maintenance of Properties and Insurance), 

 

	 	•	 	 Section 4.09 (Compliance with Laws), 

  

	 	•	 	 Section 4.10 (Commission Reports), 

  

	 	•	 	 Section 4.11 (Waiver of Stay; Extension of Usury Laws), 

 

	 	•	 	 Section 4.12 (Limitation on Transactions with Affiliates), 

 

	 	•	 	 Section 4.13 (Conduct of Business), 

  

	 	•	 	 Section 4.14 (Limitation on Dividend and Other Payment Restrictions Affecting Subsidiaries), 

 

	 	•	 	 Section 4.15 (Limitation on Liens), 

  

	 	•	 	 Section 4.18 (Limitation on Preferred Stock of Subsidiaries), 

 

	 	•	 	 Section 4.19 (Limitation on Guarantees), 

  

	 	•	 	 Section 4.20 (Payments for Consent), 

  

	 	•	 	 Section 5.01 (Merger, Consolidation and Sale of Assets), 

  
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	 	•	 	 Section 5.02 (Successor Corporation Substituted), and 

 

	 	•	 	 Sections 6.01(c), 6.01(d), 6.01(e), 6.1(f) and 6.1(g) (Events of Default). 

 

	 	(b)	The defined terms in the Original Indenture are deleted when references to the defined terms would be eliminated as a result of the foregoing clause (a).

 Section 1.02 Release of Obligations Under Certain Covenants. Subject to this
Section 1.02 becoming operative as described in Section 2.01, the Company may omit to comply with, and shall have no liability in respect of, any term, condition or limitation deleted pursuant to the Sections listed in Section 1.01
hereof, whether directly or indirectly, by reason of any reference in the Original Indenture or other documents to any such Section or by reason of any reference in any such Section to any other provision in the Original Indenture or in any other
document, and such omission to comply shall not constitute a Default or an Event of Default under Section 6.1 of the Indenture. 
 ARTICLE 2. 
 MISCELLANEOUS PROVISIONS 

Section 2.01 Effective Date of the Supplemental Indenture. This Supplemental Indenture shall be effective as of the
date first written above; provided, that, the provisions of Article 1 of this Supplemental Indenture will become operative upon (and only upon) all conditions to the Tender Offer set forth in the Consent Solicitation being satisfied or waived by the
Company and acceptance for purchase by the Company of at least a majority in aggregate principal amount of the Notes. 

Section 2.02 Governing Law. The laws of the State of New York shall govern this Supplemental Indenture and the Notes.

 Section 2.03 No Adverse Interpretation of Other Agreements. This Supplemental Indenture may not be used to
interpret another indenture, loan or debt agreement of the Company or a Subsidiary. Any such indenture, loan or debt agreement may not be used to interpret this Supplemental Indenture. 

Section 2.04 No Recourse Against Others. A director, officer, employee or stockholder, as such, of the Company shall
not have any liability for any obligations of the Company under the Notes or this Supplemental Indenture or for any claim based on, in respect of or by reason of, such obligations or their creation. Each Holder by accepting the Notes waives and
releases all such liability. The waiver and release are part of the consideration for the issue of the Notes. 

Section 2.05 Successors and Assigns. All covenants and agreements of the Company in this Supplemental Indenture and
the Notes shall bind its successors and assigns. All agreements of the Trustee in this Supplemental Indenture shall bind its successors and assigns. 

  
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 Section 2.06 Duplicate Originals. The parties may sign any number of
copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. 
 Section 2.07 Severability. In case any one or more of the provisions contained in this Supplemental Indenture or in the Notes shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Supplemental Indenture or the Notes. 
 Section 2.08 Notices. Any order, consent, notice or communication shall be sufficiently given if in writing and delivered in person or mailed by first class mail, postage prepaid,
addressed as follows: 
 If to the Company: 
 3925 E. Broadway Rd., Suite #100 
 Phoenix, Arizona 85040 

Attn: Corporate Secretary 
 Section 2.09 Amendment and Modification. This Supplemental Indenture may be amended, modified, or supplemented only as permitted by the Indenture and by written agreement of each of the
parties hereto. 
 Section 2.10 Trustee. The Trustee shall not be responsible in any manner whatsoever for or
in respect of the validity or sufficiency of this Supplemental Indenture or the Notes or for or in respect of the recitals contained herein or therein, all of which recitals are made solely by the Company, and the Trustee assumes no responsibility
for their correctness. The Trustee shall not be accountable for the use or application by the Company of the Notes or the proceeds thereof. 
 [Signature page follows] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be
duly executed as of the date first written above. 
  

					
	LESLIE’S POOLMART, INC.
		
	By:	 	 /s/ Steven L. Ortega

		 	Name:	 	Steven L. Ortega
		 	Title:	 	 Executive Vice President

and Chief Financial Officer

 Signature Page to First Supplemental Indenture 

  

					
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
		
	By:	 	 /s/ Alex Briffett

		 	Name:	 	John A. (Alex) Briffett
		 	Title:	 	Authorized Signatory

 Signature Page
to First Supplemental IndentureForm of Global Note representing the Registrant's

 Exhibit 4.1 
 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 SECURITY 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	 		  	$350,000,000
		 		  	CUSIP No.: 427866 AR9
		 		  	ISIN: US427866AR98

 THE HERSHEY COMPANY

 4.125% NOTE DUE DECEMBER 1, 2020 
 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 corporation), 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 Three Hundred Fifty Million Dollars ($350,000,000), or such amount as is indicated in the records
of the Trustee (as defined herein) and the Depository, on December 1, 2020 and to pay interest thereon semi-annually in arrears on June 1 and December 1 (each such date, an “Interest Payment Date”) of each year, commencing
June 1, 2011, at the rate of 4.125% per annum until the principal hereof is paid or made available for payment. Interest on this Security shall 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 December 13, 2010, or (ii) no interest has been paid on this Security, in which case from December 13, 2010. Notwithstanding the foregoing, if the date hereof is after
May 15 or November 15 (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 December 13, 2010. 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. 

  
 2 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal. 
 Dated: December 13, 2010 

 

			
	THE HERSHEY COMPANY
		
	By:	 	  

		 	Name:
		 	Title:

  

	
	 Attest:

	
	
                        
                                         
                       

 

			
	By:	 	  

		 	Name:
		 	Title:

  

	
	 Attest:

	
	
                        
                                         
                       

  
 3 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated herein and referred to in the within-mentioned Indenture. 

Dated: December 13, 2010 
  

			
	 U.S. BANK NATIONAL ASSOCIATION,
     as Trustee

		
	By:	 	  

		 	Authorized Signatory

  
 4 

 [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 May 14, 2009 (herein called the “Indenture”), between the Company and U.S. Bank
National Association, 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 $350,000,000. 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 a majority 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 times, place and rate, if any, and in the coin or currency, herein prescribed. 

  
 5 

 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. 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 minimum denominations of $2,000 and integral multiples of $1,000 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 corporation, 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. 

  
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 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
minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. 
 “Make-Whole Amount” means the
excess of (1) the 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. The present value shall be determined by discounting, on a semiannual 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. 

  
 7 

 “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. 

“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. 
 If a
Change of Control Triggering Event (defined below) occurs, unless the Company has exercised its option to redeem the Securities as provided for herein, the Company shall be required to make an offer (a “Change of Control Offer”) to each
holder of the Securities to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that holder’s Securities on the terms set forth herein. In a Change of Control Offer, the Company shall be required
to offer payment in cash equal to 101% of the aggregate principal amount of Securities repurchased, plus accrued and unpaid interest, if any, on the Securities repurchased to the date of repurchase (a “Change of Control Payment”).

 Within 30 days following any Change of Control Triggering Event or, at the Company’s option, prior to any Change of
Control (defined below), but after public announcement of the transaction that constitutes or may constitute the Change of Control, the Company shall mail or cause to be mailed to holders of the Securities a notice describing the transaction that
constitutes or may constitute the Change of Control Triggering Event and offering to repurchase such Securities on the date specified in the notice, which date shall be no earlier than 30 days and no later than 60 days from the date such notice is
mailed (a “Change of Control Payment Date”). The notice shall, if mailed prior to the date of consummation of the Change of Control, state that the offer to purchase is conditioned on the Change of Control Triggering Event occurring on or
prior to the Change of Control Payment Date. 
 In order to accept any Change of Control Offer, a holder shall be required to
comply with instructions for tendering contained in the Company’s notice of such Change of Control Offer as well as the applicable procedures of the Depositary. 
 On the Change of Control Payment Date, the Company shall, to the extent lawful: (i) accept for payment all Securities or portions of such Securities properly tendered pursuant to the Change of
Control Offer; (ii) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Securities or portions of such Securities properly tendered; and (iii) deliver or cause to be delivered to the Trustee the
Securities properly accepted together with an Officers’ Certificate stating the aggregate principal amount of Securities or portions of such Securities being repurchased. 

  
 8 

 On the Change of Control Payment Date, the Paying Agent shall pay, from funds deposited by
the Company for such purpose, to each holder of Securities properly tendered the Change of Control Payment for such Securities, and the Trustee will authenticate and mail (or cause to be transferred by book-entry) to each holder a new Security equal
in principal amount to any unpurchased portion of such holder’s Securities surrendered. 
 The Company shall not be
required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the
Company and the third party purchases all Securities properly tendered and not withdrawn under its offer. In addition, the Company shall not repurchase any Securities if there has occurred and is continuing on the Change of Control Payment Date an
Event of Default under the Indenture, other than a default in the payment of the Change of Control Payment upon a Change of Control Triggering Event. 
 To the extent that the requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended, or any other securities laws or regulations thereunder that are applicable in connection with the
repurchase of the Securities conflict with the Change of Control Offer provisions hereof, the Company shall comply with those securities laws and regulations and shall not be deemed to have breached its obligations under the Change of Control Offer
provisions of the Securities by virtue of any such conflict. 
 For purposes of the foregoing, the following have the meanings
ascribed to them as set forth below: 
 “Change of Control” means the occurrence of any of the following: (1) the
direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the assets of the Company and the assets of its
subsidiaries, taken as a whole, to any Person (defined below), other than to the Company, one of its subsidiaries, Hershey Trust Company (defined below) or the Milton Hershey School Trust (defined below); (2) the consummation of any transaction
or series of related transactions (including, without limitation, any merger or consolidation) the result of which is that any Person, other than Hershey Trust Company or the Milton Hershey School Trust, becomes the beneficial owner (as defined in
Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the Company’s outstanding Voting Stock (defined below) or other Voting Stock into which the Company’s Voting Stock is reclassified, consolidated,
exchanged or changed, measured by voting power rather than number of shares; (3) the Company consolidates with, or merges with or into, any Person, or any Person consolidates with, or merges with or into, the Company, in any such event pursuant
to a transaction in which any of the Company’s outstanding Voting Stock or the Voting Stock of such other Person is converted into or exchanged for cash, securities or other property, other than any such transaction where the shares of the
Company’s Voting Stock outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the Voting Stock (measured by voting power rather than number of shares) of the surviving Person or any
direct or indirect parent company of the surviving Person immediately after giving effect to such transaction; (4) the first day on which a majority of the members of the Company’s Board of Directors are not Continuing Directors (defined
below); (5) the adoption of a plan relating to the Company’s liquidation or dissolution; or (6) the consummation of a so-called “going private/Rule 13e-3 transaction” that results in any of the effects described in paragraph
(a)(3)(ii) of Rule 13e-3 under the Securities Exchange Act of 1934, as amended (or any successor provision), following which Hershey Trust Company or the Milton Hershey School Trust beneficially owns, directly or indirectly, more than 50% of the
Company’s Voting Stock, measured by voting power rather than number of shares. 

  
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 Notwithstanding the foregoing, a transaction effected to create a holding company will not
be deemed to involve a Change of Control if (i) the Company becomes a direct or indirect wholly-owned subsidiary of such holding company and (ii) the holders of the Voting Stock of such holding company immediately following that
transaction, as measured by voting power rather than number of shares, are substantially similar to the holders of the Company’s Voting Stock, as measured by voting power rather than number of shares, immediately prior to such a transaction.

 “Change of Control Triggering Event” means the occurrence of both a Change of Control and a Rating Event (defined
below). 
 “Continuing Directors” means, as of any date of determination, any member of the Company’s Board of
Directors who (1) was a member of the Company’s Board of Directors on the date of the issuance of the Securities or (2) was nominated for election, elected or appointed to the Company’s Board of Directors with the approval of
either a majority of the Continuing Directors who were members of the Company’s Board of Directors at the time of such nomination, election or appointment (either by a specific vote or by approval of the Company’s proxy statement in which
such member was named as a nominee for election as a director, without objection to such nomination) or Hershey Trust Company or the Milton Hershey School Trust. 
 Under a recent Delaware Chancery Court interpretation of the foregoing definition of “Continuing Directors,” a Board of Directors may approve, for purposes of such definition, a slate of
shareholder-nominated directors without endorsing them, or while simultaneously recommending and endorsing its own slate instead. The foregoing interpretation would permit the Company’s Board of Directors to approve a slate of directors that
included a majority of dissident directors nominated pursuant to a proxy contest, and the ultimate election of such dissident slate would not constitute a “Change of Control Triggering Event” that would trigger the holders’ right to
require the Company to repurchase such holders’ Securities as described above. 
 “Hershey Trust Company” means
Hershey Trust Company, a Pennsylvania chartered trust company, and trustee for the benefit of Milton Hershey School (the “Milton Hershey School Trust”). 

  
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 “Investment Grade Rating” means a rating of Baa3 or higher by Moody’s
(defined below) (or its equivalent under any successor rating category of Moody’s) and BBB- or higher by S&P (defined below) (or its equivalent under any successor rating category of S&P), and the equivalent investment grade credit
rating from any replacement Rating Agency (defined below) selected by the Company. 
 “Moody’s” means
Moody’s Investors Service, Inc., a subsidiary of Moody’s Corporation, and its successors. 
 “Person” has
the meaning used in Section 13(d) of the Securities Exchange Act of 1934, as amended. 
 “Rating Agencies” means
each of Moody’s and S&P; provided that if either of Moody’s or S&P ceases to rate the Securities or fails to make a rating of the Securities publicly available for reasons outside of the Company’s control, the Company
may appoint (as certified by a resolution of its Board of Directors) a “nationally recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Securities Exchange Act of 1934, as amended, as
replacement for such Rating Agency, or all of them, as the case may be. 
 “Rating Event” means the rating on the
Securities is lowered by any Rating Agency and the Securities are rated below an Investment Grade Rating by both Rating Agencies on any day during the period (which period will be extended so long as the rating of the Securities is under publicly
announced consideration for a possible downgrade by any Rating Agency) commencing on the first public notice or announcement of an arrangement that could result in a Change of Control and ending on the 60th day following the occurrence of such
Change of Control; provided, that a Rating Event shall not be deemed to have occurred in respect of a particular Change of Control (and, thus, shall not be deemed a Rating Event) if the Rating Agencies lowering the rating on the Securities to
which this definition would otherwise apply do not announce or publicly confirm or inform the Trustee in writing at its request that the lowering was the result, in whole or in part, of any event or circumstance comprised of or arising as a result
of, or in respect of, the applicable Change of Control. 
 “S&P” means Standard & Poor’s Rating
Services, a division of The McGraw-Hill Companies, Inc., and its successors. 
 “Voting Stock” means, with respect to
any Person as of any date, the capital stock of such Person that is at the time entitled to vote in the election of the board of directors of such Person. 
 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. 

  
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