Document:

exh102_execemploymentagree.htm

    Exhibit
10.2

    

    FIRST
AMENDMENT TO

    AMENDED
AND RESTATED

    EXECUTIVE
EMPLOYMENT AGREEMENT

     

    WHEREAS,
The Hershey Company (the “Company”) has entered into an Amended and Restated
Executive Employment Agreement, dated as of October 2, 2007 (the
“Agreement”) with David J. West (“Executive”);

     

    WHEREAS,
the Agreement provides for Executive’s participation in The Hershey Company
Executive Benefits Protection Plan (Group 3A) (Amended and Restated as of
October 2, 2007) (the “EBPP”);

     

    WHEREAS,
the Board of Directors of the Company (the “Board”) approved the amendment of
the EBPP, effective February 13, 2008, to reduce the severance benefits
payable under the Plan with respect to the qualifying termination of employment
after a change in control of the Company;

     

    WHEREAS,
the Board also approved a corresponding amendment to the Agreement;
and

     

    WHEREAS,
this Amendment shall supersede the provisions of the Agreement to the extent
those provisions are inconsistent with the provisions of this
Amendment.

     

    NOW,
THEREFORE, BE IT RESOLVED that, the Agreement is hereby amended, effective
February 13, 2008, by amending Section 6, Change in Control, to
read as follows:

     

    “6.           Change in
Control.  In the event of a Change in Control (as defined in
the EBPP), the rights and obligations of Employer and the Executive, including,
without limitation, rights and obligations upon termination of Executive’s
employment, shall be governed by the EBPP, as amended from time to time, subject
to the following provisions of this Section 6.  If any item of
compensation or benefit is provided under this Agreement, or under any other
plan, agreement, program or arrangement of Employer (other than the EBPP) which
is more favorable to Executive than the corresponding item of compensation or
benefit under the EBPP, or if an item of compensation or benefit is provided
under this Agreement, or under such other plan, agreement, program or
arrangement, but not under the EBPP, such item of compensation or benefit shall
be provided in accordance with the terms of this Agreement or such other plan,
agreement, program or arrangement.  In no event, however, shall
Executive be entitled to duplication as to any item of compensation or benefit
that is provided under both this Agreement (or such other plan, agreement,
program or arrangement) and the EBPP.  In addition, for purposes of
Section 3.4 of the EBPP, payments under or pursuant to this Agreement or any
other payment with regard to the Employer that would be treated as a “parachute
payment” under Q/A 2 of Treasury Regulation 1.280G-1 shall be deemed to be under
the EBPP and the Severance Period (as defined in the EBPP) for purposes of
Sections 3.2.2 and 3.3.1 through 3.3.4 of the EBPP shall be 36 months, or if
less, the number of months until the Executive’s

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

     

    Mandatory
Retirement Age (as defined in the EBPP), but not less than 12
months.”

     

    IN
WITNESS WHEREOF, the parties hereto knowingly and voluntarily have executed this
Amendment to be effective as of February 13, 2008.

     

    

    
      	
               

               

               

               

              /s/ David J.
      West

              David
      J. West

               

            	
              THE
      HERSHEY COMPANY

               

               

               

              By: /s/
      Burton H. Snyder

              
                     
      Burton H. Snyder

                     
      Senior Vice President,

                     
      General Counsel and Secretary

              

               

               

            

    

    

    

     

    
      
         

      

      
        -2-exh103_directorscompplan.htm

    Exhibit
10.3

    

 

    THE HERSHEY COMPANY

    

    DIRECTORS’
COMPENSATION PLAN

     

    (Amended
and Restated as of February 13, 2008)

    

    1

    

    PURPOSE

    

    The
purposes of the Directors' Compensation Plan (“Plan”) are to provide Directors
of The Hershey Company (“Company”) with payment alternatives for
the retainer and fees payable for services as members of the Board of Directors
(“Board”) of the Company or as a chair of
any committee thereof (together, “Director Fees”), to provide Directors the
opportunity to elect to receive all or a portion of the Directors Fees in Deferred Stock Units (“DSUs”),
each representing an obligation of the Company to issue one share of Common Stock of the
Company, $1.00 par value per share (“Common
Stock”), and to promote the identification of interests between such Directors
and the stockholders of the Company by
paying a portion of each Director’s compensation in Restricted Stock Units
(“RSUs”), each RSU representing an obligation of the Company to issue one share of Common
Stock.

    

    

    2

    

    ELIGIBILITY

    

    Any
Director of the Company who is not an
employee of the Company or any of its
subsidiaries shall be eligible to participate in the Plan.  Except as
the context may otherwise require, references in this Plan to a “Director” shall
mean only those directors of the Company who are participants in the
Plan.

    

    

    3

    

    PAYMENT

    

    (a)    
Director Fees. A
Director shall be entitled to Director Fees, in such amounts as shall be
determined by the Board, for services on the Board and as a chair of any
committee of the Board.  Pursuant to
Section 4 hereof, a Director may elect to have payment of Directors Fees made
currently in cash and/or Common Stock or deferred for subsequent payment in cash
or Common Stock; provided that if paid currently, fees payable for
services as a chair of any committee of the Board shall be payable only in
cash.  Any shares of Common Stock payable under this Section 3(a)
shall be paid by the issuance to the Director of a number of shares of Common
Stock equal to the cash amount of the retainer so payable divided by the Fair
Market Value of one share of the Common Stock, as defined in Section 12
hereof.  Any fractional share

    
      
        
           

        

        
          -1- 

          
            

          

        

        
           

        

      

    

     

    of Common
Stock resulting from such payment shall be rounded to the nearest whole
share.  The Company shall issue
share certificates to the Director for the shares of Common Stock acquired or,
if requested in writing by the Director and permitted under such plan, the
shares acquired shall be added to the Director's account under the Company's Automatic Dividend Reinvestment
Plan.  As of the date on which the part or whole of the retainer is
payable in shares of Common Stock, the Director shall be a stockholder of the
Company with respect to such
shares.  Unless otherwise elected in Section 4, any remaining Director
Fees shall be payable in cash.

     

          
 (b)     Restricted Stock
Units.  A Director shall also be entitled to receive RSUs, in
such amounts as shall be determined by the Board, for services on the
Board.  Beginning January
1, 2008 and thereafter, unless otherwise directed by the Board, RSUs having a
value of $30,000 (or such other amount as the Board shall from time to time
determine) shall be awarded to each Director on the first day of January, April,
July and
October.  The number of full and fractional RSUs so awarded
shall be determined by dividing $30,000 (or such other amount) by
the average of the per share closing price of the Common Stock on the New York
Stock Exchange as published in The
Wall Street Journal (or such other reliable publication
as the Board or its delegates may determine) for the last three trading
days of the month preceding the date of the award.  Directors whose
membership on the Board commences after January
1, 2008
on a day which is not the first day of any January, April, July or October,
shall be awarded a pro rata number of RSUs with respect to the quarter during
which the Director joined the Board equal to the number of RSUs awarded to each
Director who was a member of the Board on the first day of the applicable
quarter, multiplied by a fraction, the numerator of which equals the number of
days remaining in the quarter after the first day on which such Director became
a member of the Board, and the denominator being the total number of days in the
quarter.  A Restricted Stock Unit Account shall be established on the
books of the Company
in the name of each Director. During the period of the Director’s membership on
the Board, the Director’s Restricted Stock Unit Account shall be subject to
credits, adjustment and substitution to reflect any dividend or other
distribution on the outstanding Common Stock or any split or consolidation or
other change affecting the Common Stock. Any such credit, adjustment or
substitution shall be made in a manner similar to that set forth in Section 6(a)
and 6(b) with respect to Deferred Stock Compensation Accounts.  RSUs
awarded prior to January 1, 2008 shall vest upon termination of the Director’s
membership on the Board by reason of retirement, death or disability, or
such other circumstances as the Board, in its sole discretion, shall at any time
determine (provided that a termination of a Director’s
membership on the Board following a Change in Control (as defined in the Company’s
Executive Benefits Protection Plan (Group 3A), the “EBPP”) shall be considered a
retirement for this purpose).  RSUs not vested upon or within 120 days
following the Director’s termination of membership on the Board, as aforesaid,
shall be forfeited as of 11:59 p.m. (Eastern Time) on the 120th day following
such Director’s termination of membership on the Board, as
aforesaid.  The balance of the Director’s Restricted Stock Unit
Account which becomes vested upon termination of the Director’s membership shall
be paid in a lump sum in accordance with Section 7.  RSUs
awarded for periods after 2007 (together with credits, adjustments or
substitutions attributable thereto, “Post-2007 RSUs”) shall vest upon the first
anniversary of the day upon which such Post-2007 RSUs were awarded, or such
other date or dates as set forth by the Board at the time of the award;
provided, that the vesting of such Post-2007 RSUs shall be accelerated to the
date of termination of the Director’s membership on the Board by reason of retirement,
death or
disability, or for any reason following a Change
in

    
      
        
           

        

        
          -2- 

          
            

          

        

        
           

        

      

    

     

    Control
(as defined in the Company’s Executive Benefits Protection Plan
(Group 3A), the “EBPP”), or such other circumstances as the Board, in its sole
discretion, shall at any time determine.
For
purposes of this Plan, termination of a director’s membership on the Board at
anytime following the director’s 60th birthday
shall be deemed a retirement.  The
portion of a Director’s
Restricted Stock Unit Account attributable to Post-2007 RSUs which becomes
vested in accordance with the second
preceding
sentence shall, unless deferred by the Director into the Director’s Deferred
Stock Compensation Account pursuant to an election made under Section 4, be paid
in a lump sum in accordance with Section 7. If
payment hereunder would result in the issuance of a fractional share of Common
Stock, such fractional share shall not be issued and cash in lieu of such
fractional share shall be paid to the Director based upon the average of the per
share closing price of the Common Stock on
the New York Stock Exchange as published in The
Wall Street Journal (or such other reliable publication as the Board or
its delegates may determine) for the three trading days immediately preceding
the date of payment.  The Company
shall issue share certificates to the Director, or the Director’s designated
beneficiary, for the shares of Common Stock represented by the Director’s vested
RSUs, or if requested in writing by the Director and permitted under such plan,
the shares to be distributed shall be added to the Director’s account under the
Company’s
Automatic Dividend Reinvestment Plan. As of the date on which the Director is
entitled to receive payment of shares of Common Stock, a Director shall be a
stockholder of the Company
with respect to such shares.

    

    

    4

    

    ELECTIONS

    

    (a)   
Director Fee Payment
and RSU
Payment Alternatives.  A
Director may elect any one of the following alternatives with respect to payment
of Director Fees and with respect to payment of Post-2007 RSUs:

    

    (1)  
to receive currently full payment of Director Fees in cash and/or Common Stock,
as set forth in Section 3(a) above, on the date or dates on which the Director
Fees are payable;

    

    (2)  
to defer payment of all or a portion of the Director Fees for subsequent payment
in cash (a “Cash Deferral Election”);

    

    (3)  
to defer payment of all or a portion of the Director Fees for subsequent
payment
in shares of Common Stock (a “Stock Deferral Election”); or

     

    (4)    to defer payment of all or a portion of the Post-2007
RSUs for subsequent payment in shares of Common Stock (also a
“Stock Deferral Election”); or

     

        (5)   a combination
of (2), (3) and (4).  

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    (b)   
Filing and Effectiveness of
Elections.  The election by a Director to receive payment of
Director Fees other than as set forth in Section 4(a)(1) on the date on which
the Director Fees are otherwise payable, or to receive payment of shares
of Common Stock attributable to the vesting of Post-2007 RSUs other than on the
date which the shares are otherwise payable is made by filing with the
Secretary of the Company a Notice of
Election in the form prescribed by the Company (an “Election”).  In order to
be effective for any calendar year, an Election must be received by the
Secretary of the Company on or before
December 31 of the preceding calendar year, except that if a Director files a
Notice of Election on or before 30 days subsequent to the Director's initial
election to the office of Director, the Election shall be effective on the date
of filing with respect to Director Fees and
Post-2007 RSUs payable for any
portion of the calendar year which remains at the date of such
filing.  An Election may not be modified or terminated after the
beginning of a calendar year for which it is effective.  Unless
modified or terminated by filing a new Notice of Election on or before December
31 immediately preceding the calendar year for which such modification or
termination is effective, an Election shall be effective for and apply to
Director Fees payable for each subsequent calendar year.  Director
Fees earned or Post-2007 RSUs which
vest at any time for which an
Election is not effective shall be paid as set forth in Section 4(a)(1) on the
date when the Director Fees or Section 7 on the
date the shares attributable to such Post-2007 RSUs are otherwise payable, as applicable.  Any Election shall
terminate on the date a Director ceases to be a member of the Board.
 

    

    (c)   
Cash Deferral
Elections.  Director Fees deferred pursuant to a Cash Deferral
Election shall be deferred and paid as provided in Sections 5 and
7.

    

    (d)   
Stock Deferral
Elections.  Director Fees and Post-2007
RSUs deferred pursuant to a Stock Deferral Election shall be deferred and
paid as provided in Sections 6 and 7.

     

     

    5

    

    DEFERRED
CASH COMPENSATION ACCOUNT

    

    (a)   
General.  The
amount of any Director Fees deferred in accordance with a Cash Deferral Election
shall be credited on the date on which such Director Fees are otherwise payable
to a deferred cash compensation account maintained by the Company in the name of the Director (a “Deferred
Cash Compensation Account”).  A separate Deferred Cash 

    Compensation
Account shall be maintained for each calendar year for which a Director has
elected a different number of payment installments or as otherwise may be agreed
between the Director
and the Company.  

    

    (b)   
Adjustment for Earnings or
Losses.  The amount in the Director's Deferred Cash
Compensation Account shall be adjusted to reflect net earnings, gains or losses
in accordance with the provisions of The
Hershey Company Deferred Compensation Plan
relating to Investment Credits and Investment Options.  The adjustment
for earnings, gains or losses shall be equal to the amount determined under (1)
below as follows:  

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    
    

     

    
      (1)     
Deemed
Investment Options.  The total amount determined by multiplying
the rate earned (positive or negative) by each fund available (taking into
account earnings distributed and share appreciation (gains) or depreciation
(losses) on the value of shares of the fund) for the applicable period by the
portion of the balance in the Director's Deferred Cash Compensation Account as
of the end of each such period, respectively, which is deemed to be invested in
such fund pursuant to paragraph (2) below.  Subject to elimination,
modification or addition by the Board, the funds available for the Director's
election of deemed investments pursuant to paragraph (2) below shall be one or more of the funds available (excluding Common
Stock) under the Investment Options of The
Hershey Company Deferred Compensation
Plan
 

    

    (2)      
Deemed
Investment Elections.

     

    (A)  The
Director shall designate, on a form prescribed by the Company, the percentage of the deferred Director
Fees that are to be deemed to be invested in the  available funds under
paragraph (1) above.  Said designation shall be effective on a date
specified therein and remain in effect and
apply to all subsequent deferred Director Fees until changed as provided
below.  

     

    (B)  A
Director may elect to change, on a calendar year basis (or on such other basis
as permitted from time to time by the Board), the deemed investment election
under paragraph (A) above with respect to future deferred Director Fees among
one or more of the options then available by written notice to the Secretary of
the Company, on a form prescribed by the
Company (or by voice or other form of
notice permitted by the Company), at least
ten days before the first day of the calendar year for which the change is to be
effective, with such change to be effective for Director Fees credited to the
Deferred Cash Compensation Account on and after the effective date of the
change.  

    

    (C)  
A Director may elect to reallocate the balance of his Deferred Cash Compensation
Account, subject to limitations imposed by the Board, on a calendar year
basis,  among the deemed investment options then
available.  A Director may make such an election by written notice to
the Secretary of the Company, on a form
prescribed by the Company (or by voice or
other form of notice
permitted by the Company), at least ten
days before the first day of the calendar year for which the transfer election
is to be effective, with such transfer
to be based on the value of the Deferred Cash Compensation Account on the last
day of the calendar year preceding the effective date of the transfer
election.

    

    (D)  The
election of deemed investments among the options provided above shall be the
sole responsibility of each Director.  The Company and Board members are not authorized to
make any recommendation to any Director with respect to such
election.  Each Director assumes all risk connected with any
adjustment to the value of his Deferred Cash Compensation
Account.  Neither the Board nor the Company in any way guarantees against loss or
depreciation.  

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    (E) 
All payments from the Plan shall be made pro-rata from the portion of the
Director's Deferred Cash Compensation Account which is deemed to be invested in
such funds as may be available from time to time for deemed investment elections
under the Plan.

    

    (F) 
The Company shall not be required or
obligated to invest any amounts in the funds provided as deemed investment
options, and such funds shall be used solely to measure investment
performance.  Further, the Company shall not be precluded from providing for
its liabilities hereunder by investing in such funds or in any other investments
deemed to be appropriate by the Board.

    

    (c)   
Manner of
Payment.  The balance of a Director's Deferred Cash
Compensation Account will be paid to the Director or, in the event of the
Director's death, to the Director's designated beneficiary, in accordance with
the Cash Deferral Election.  A Director may elect at the time of
filing the Notice of Election for a Cash Deferral Election to receive payment of
the Director Fees in annual installments rather than a lump sum, provided that
the payment period for installment payments shall not exceed fifteen years
following the Payment Commencement Date, as described in Section 7
hereof.  The amount of any installment shall be determined by
multiplying (i) the balance in the Director's Deferred Cash Compensation Account
on the date of such installment by (ii) a fraction, the numerator of which is
one and the denominator of which is the number of remaining unpaid installments
(including the installment payment then being determined).  The
balance of the Deferred Cash Compensation Account shall be appropriately reduced
on the date of payment to the Director or the Director's designated beneficiary
to reflect the installment payment made hereunder.  Amounts held
pending distribution pursuant to this Section 5(c) shall continue to be credited
with the earnings, gains or losses as described in Section 5(b)
hereof.

     

    6

    

    DEFERRED
STOCK COMPENSATION ACCOUNT

    

    (a)   
General.  The
amount of any Director Fees deferred in accordance with a Stock Deferral
Election shall be credited to a deferred stock compensation account maintained
by the Company in the name of the Director
(a “Deferred Stock Compensation Account”).  A separate Deferred Stock
Compensation Account shall be maintained for each calendar year for which a
Director has elected a different number of payment installments or as otherwise
determined by the Board.  On each date on which Director Fees and/or Post-2007 RSUs become vested and are otherwise payable and a Stock Deferral
Election applicable to such Directors Fees and/or
Post-2007 RSUs is effective for
a Director, the Director's Deferred Stock Compensation Account for that calendar
year shall be credited with a number of full and fractional Deferred Stock Units
(“DSUs”) equal, in the case of Directors
Fees, to the cash amount of the Director Fees payable divided by the Fair
Market Value of one share of the Common Stock, as defined in Section 12 hereof,
on the date on which such Director Fees are payable and, in the
case of Post-2007 RSUs, to the number of Post-2007 RSUs which became vested and
were otherwise payable.  If a dividend or distribution is paid
on the Common Stock in cash or property other than Common 

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    Stock, on
the date of payment of the dividend or distribution to holders of the Common
Stock each Deferred Stock Compensation Account shall be credited with a number
of full and fractional DSUs equal to the number of full and fractional DSUs
credited to such Account on the date fixed for determining the stockholders
entitled to receive such dividend or distribution times the amount of the
dividend or distribution paid per share of Common Stock divided by the Fair
Market Value of one share of Common Stock, as defined in Section 12 hereof, on
the date on which the dividend or distribution is paid, it being intended that the number of full and
fractional DSUs credited as a result of the dividend or distribution shall be
equal to the number of full and fractional shares that would be issued if the
DSUs credited to the Account were actual shares participating in the Company’s
dividend reinvestment plan.  If the dividend or distribution is
paid in property, the amount of the dividend or distribution shall equal the
fair market value of the property on the date on which the dividend or
distribution is paid.  The Deferred Stock Compensation Account of a
Director shall be charged on the date of distribution with any distribution of
shares of Common Stock made to the Director from such Account pursuant to
Section 6(c) hereof.

    

    (b)   
Adjustment and
Substitution.  The number of DSUs credited to each Deferred
Stock Compensation Account shall be proportionately adjusted to reflect any
dividend or other distribution on the outstanding Common Stock payable in shares
of Common Stock or any split or consolidation of the outstanding shares of
Common Stock.  If the outstanding Common Stock shall, in whole or in
part, be changed into or exchangeable for a different class or classes of
securities of the Company or securities of
another Company or cash or property other
than Common Stock, whether through reorganization, reclassification,
recapitalization, merger, consolidation or otherwise, the Board shall adopt such
amendments to the Plan as it deems necessary to carry out the purposes of the
Plan, including the continuing deferral of any amount of any Deferred Stock
Compensation Account.  

     

     (c)  
Manner of
Payment.  The balance of a Director's Deferred Stock
Compensation Account will be paid in shares of Common Stock to the Director or,
in the event of the Director's death, to the Director's designated beneficiary,
in accordance with the Stock Deferral Election.  A Director may elect
at the time of filing of the Notice of Election for a Stock Deferral Election to
receive payment of the shares of Common Stock credited to the Director's
Deferred Stock Compensation Account in annual installments rather than a lump
sum, provided that the payment period for installment payments shall not exceed
fifteen years following the Payment Commencement Date as described in Section 7
hereof.  The number of shares of Common Stock distributed in each
installment shall be determined by multiplying (i) the number of DSUs credited
to such Director’s Deferred Stock Compensation Account on the date of payment of
such installment, by (ii) a fraction, the numerator of which is one and the
denominator of which is the number of remaining unpaid installments (including
the installment payment then being determined) and by rounding such result down
to the nearest whole number of shares.  The balance of the number of
DSUs credited to such Director’s Deferred Stock Compensation Account shall be
appropriately reduced in accordance with this Section 6(c) to reflect the
installment payments made hereunder.  DSUs remaining in a Deferred
Stock Compensation Account pending distribution of shares of Common Stock
pursuant to this Section 6(c) shall continue to be credited with respect to
dividends or distributions paid on the Common Stock pursuant to Section 6(a)
hereof and shall be subject to adjustment pursuant to Section 6(b) 

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    hereof.  If
a lump sum payment or the final installment payment hereunder would result in
the issuance of a fractional share of Common Stock, such fractional share shall
not be issued and cash in lieu of such fractional share shall be paid to the
Director based on the Fair Market Value of a share of Common Stock, as defined
in Section 12 hereof, on the date immediately preceding the date of such
payment.  The Company shall issue
share certificates to the Director, or the Director's designated beneficiary,
for the shares of Common Stock distributed hereunder, or if requested in writing
by the Director and permitted under such plan, the shares to be distributed
shall be added to the Director's account under the Company's Automatic Dividend Reinvestment
Plan.  As of the date on which the Director is entitled to receive
payment of shares of Common Stock, a Director shall be a stockholder of the
Company with respect to such
shares.

    

    

    7

    

    PAYMENT
COMMENCEMENT DATE

    

    Payment
of amounts in a Restricted Stock Unit Account (which is vested or first becomes vested upon termination
of the Director’s membership on the Board), Deferred Cash Compensation
Account or a Deferred Stock Compensation Account shall commence on the first
business day next succeeding the 89th day
following the day on which the Director ceases to be a member of the Board for
any reason, including death or disability.  Payment of shares of Common Stock attributable to
Post-2007 RSUs which become vested prior to the termination of the Director’s
membership on the Board and for which the Director has not made
an effective Stock Deferral Election shall be paid in a
lump sum on or before the 90th day following the day on which such amounts vest.
The Governance Committee of the Board may provide for the
accelerated payment of Deferred Cash Compensation Accounts and Deferred Stock
Compensation Accounts in one lump sum in connection with a change in control event within the meaning of the
regulations promulgated under Code Section 409A, notwithstanding any
other payment options previously selected by a Director under his or her Cash
Deferral Elections and Stock Deferral Elections.

    

    

    8

    

    BENEFICIARY
DESIGNATION

    

    A
Director may designate, in the Beneficiary Designation form prescribed by the
Company, any person to whom payments of
cash or shares of Common Stock are to be made if the Director dies before
receiving payment of all amounts due hereunder.  A beneficiary
designation will be effective only after the signed beneficiary designation form
is filed with the Secretary of the Company
while the Director is alive and will cancel all beneficiary designations signed
and filed earlier.  If the Director fails to designate a beneficiary,
or if all designated beneficiaries of the Director die before the Director or
before complete payment of all amounts due hereunder, any remaining unpaid
amounts shall be paid in one lump sum to the estate of the last to die of the
Director or the Director's designated beneficiaries, if any.

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    9

    

    NON-ALIENABILITY
OF BENEFITS

    

    Neither
the Director nor any beneficiary designated by the Director shall have the right
to, directly or indirectly, alienate, assign, transfer, pledge, anticipate or
encumber (except by reason of death) any amount that is or may be payable
hereunder, nor shall any such amount be subject to anticipation, alienation,
sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by
creditors of the Director or the Director's designated beneficiary or to the
debts, contracts, liabilities, engagements, or torts of any Director or
designated beneficiary, or transfer by operation of law in the event of
bankruptcy or insolvency of the Director or any beneficiary, or any legal
process.

    

    

    10

    

    NATURE OF
ACCOUNTS

    

    Any
Restricted Stock Unit Account, Deferred Cash Compensation Account or Deferred
Stock Compensation Account shall be established and maintained only on the books
and records of the Company, and no assets
or funds of the Company or the Plan or
shares of Common Stock of the Company shall
be removed from the claims of the Company's
general or judgment creditors
or otherwise made available until such amounts are actually payable to Directors
or their designated beneficiaries as provided herein.  The Plan
constitutes a mere promise by the Company
to make payments in the future.  The Directors and their designated
beneficiaries shall have the status of, and their rights to receive a payment of
cash or shares of Common Stock under the Plan shall be no greater than the
rights of, general unsecured creditors of the Company.  No person shall be entitled
to any voting rights with respect to shares credited to any RSU or Deferred
Stock Compensation Account which is not yet payable to a Director or the
Director's designated beneficiary.  The Company shall not be obligated under any
circumstance to fund its financial obligations under the Plan, and the Plan is
intended to constitute an unfunded plan for tax purposes.  However,
the Company may, in its discretion, set
aside funds in a trust or other vehicle, subject to the claims of its creditors,
in order to assist it in meeting its obligations under the Plan, if such
arrangement will not cause the Plan to be considered a funded deferred
compensation plan under the Internal Revenue Code of 1986, as
amended.

    

    

    11

    

    ADMINISTRATION
OF PLAN; HARDSHIP WITHDRAWAL

    

    Full
power and authority to construe, interpret, and administer the Plan shall be
vested in the Board.  Decisions of the Board shall be final,
conclusive, and binding upon all parties.  Notwithstanding the terms
of a Cash Deferral Election or a Stock Deferral Election made by a Director
hereunder, the Board may, in its sole discretion, permit the withdrawal of
amounts credited to a Deferred Cash Compensation Account or shares credited to a
Deferred Stock

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    Compensation
Account with respect to Director Fees previously payable, or permit the early
vesting and payment of RSUs previously awarded, upon the request of a Director
or the Director's representative, or following the death of a Director upon the
request of a Director's beneficiary or such beneficiary's representative, if the
Board determines that the Director or the Director's beneficiary, as the case
may be, is confronted with an unforeseeable emergency.  An unforeseeable emergency is a severe financial hardship to the Director resulting from illness or accident of the Director, the
Director’s spouse, beneficiary or dependent, loss of the Director’s property due
to casualty or similar extraordinary and unforeseeable circumstances beyond the
Director’s control, which hardship cannot be relieved through insurance,
cessation of deferrals under the Plan or liquidation of assets that would not
cause a severe financial hardship.  Cash needs arising from foreseeable events,
such as the purchase or building of a house or education expenses, will not be
considered to be the result of an
unforeseeable financial emergency. The Director or the Director's beneficiary
shall provide to the Board such evidence as the Board, in its discretion, may
require to demonstrate that such emergency exists and financial hardship would
occur if the withdrawal were not permitted.  The withdrawal shall be
limited to the amount or to the number of shares, as the case may be, necessary
to meet the emergency.  Payment shall be made as soon as practicable
after the Board approves the payment and determines the amount of the payment or
number of shares which shall be withdrawn.  In the case of a hardship
withdrawal from the Deferred Cash Compensation Account or Deferred Stock
Compensation Account, payment shall be made in a single
lump sum from the portion of the Deferred Cash Compensation Account or Deferred
Stock Compensation Account, as applicable, with the largest number and in
reverse order of installment payments, in each case in accordance with Section
5(b)(2)(E) if the distribution is from the Deferred Cash Compensation
Account.  No Director shall participate in any decision of the Board
regarding such Director's request for a withdrawal under this Section
11.

    

    

    12

    

    FAIR
MARKET VALUE

    

    Fair
Market Value of the Common Stock (“Fair Market Value”) on a single date shall be the closing price on the
applicable date (or if not a trading date, the next preceding trading date), and
Fair Market Value, where the determination is made over a period of more than
one day, shall be the average of the closing price for all trading dates
for the applicable period covered by a payment.  For purposes of Section 3(a) and 6(a) hereof, the
applicable period for a quarterly Directors
Fees payment or credit shall be
the three calendar months immediately preceding the calendar month during which
the day on which the payment or credit is being made, and the applicable period for a Directors
Fees payment relating to a period other than a quarter shall be
determined under similar principles.  The closing price of the Common
Stock for a single date or for each day
within the applicable period shall be as quoted in The Wall Street Journal (or in
such other reliable publication as the Board or its delegate, in its discretion,
may determine to rely upon).

    

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    13

    

    SECURITIES
LAWS; ISSUANCE OF SHARES; NONCERTIFICATED
SHARES

    

    The
obligation of the Company to issue or
credit shares of Common Stock under the Plan shall be subject to (i) the
effectiveness of a registration statement under the Securities Act of 1933, as
amended, with respect to such shares, if deemed necessary or appropriate by
counsel for the Company, (ii) the condition
that the shares shall have been listed (or authorized for listing upon official
notice of issuance) upon each stock exchange, if any, on which the Common Stock
shares may then be listed and (iii) all other applicable laws, regulations,
rules and orders which may then be in effect.  If, on the date on
which any shares of Common Stock would be issued sufficient shares of Common
Stock are not available under the Plan or the Company is not obligated to issue shares pursuant
to this Section 13, then no shares of Common Stock shall be issued but rather,
in the case of Common Stock to be issued currently, cash shall be paid in
payment of the Director Fees payable.  The Board shall adopt
appropriate rules and regulations to carry out the intent of the immediately
preceding sentence if the need for such rules and regulations
arises.  To the extent the Plan provides
for issuance of share certificates to reflect the transfer of shares of Common
Stock, the transfer of such shares may be effected on a noncertificated or “book
entry” basis.

    

    

    14

    

    GOVERNING
LAW

    

    The
provisions of this Plan shall be interpreted and construed in accordance with
the laws of the State of Delaware.  

    

    

    15

    

    EFFECTIVE
DATE; AMENDMENT AND TERMINATION

    

    The Plan
was adopted by the Board on December 4, 1996, and became effective as of January
1, 1997.  The Plan was previously amended and restated effective October 2,
2001, December 3, 2002, June 14,
2007, November 11, 2007 and December 4, 2007.  The Plan, as
amended and restated herein, shall be effective as of February 13,
2008.  The Board may amend or terminate the Plan at any time, provided
that no such amendment or termination shall adversely affect rights with respect
to amounts or shares then credited to any Deferred Cash Compensation Account or
Deferred Stock Compensation Account.

    

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    

    16

    

    AUTHORIZED
SHARES; DESIGNATION AS AWARD UNDER EQUITY AND INCENTIVE
COMPENSATION PLAN

    

    Shares issued hereunder with respect to RSUs and DSUs
credited prior to April 17, 2007 shall be deemed issued as part of the aggregate
of 300,000 (reflecting prior stock splits and stock dividends and as shall be
adjusted and subject to adjustment to reflect future stock splits and stock
dividends) shares of Common Stock previously authorized for issuance
hereunder.  Effective as of April 17, 2007, the crediting of RSUs and
the ability to make elections to receive Directors Fees in shares of Common
Stock or to defer payment of Directors Fees and Post-2007 RSUs and have such fees and/or RSUs credited as DSUs shall constitute a non-employee
directors award under The Hershey Company Equity and Incentive Compensation Plan
(the “EICP”).  This Plan and the related Notice of Election and other
documents contemplated hereunder shall constitute the award agreement for
purposes of the EICP and shares of Common Stock issued with respect to such
RSUs, Directors Fees or DSUs shall be deemed issued from the shares authorized
for issuance under the EICP.

    

    

    
      	 
      	
              THE
      HERSHEY COMPANY

            
	 
      	
               

              By:  
       /s/
      Burton
      H.
      Snyder                       

              Burton
      H. Snyder,

              Senior
      Vice President,

              General
      Counsel and Secretary

            
	 
      	 
      

    

     

    

    
      
        
        

      

      
        -12-

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