Document:

EXHIBIT 10.2

NOTE:  A LETTER  DATED MARCH 13,  2000,  REQUESTING  CONFIDENTIAL  TREATMENT  OF
CERTAIN  INFORMATION  CONTAINED  HEREIN HAS BEEN FILED WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION.  INFORMATION FOR WHICH SUCH REQUEST HAS BEEN
MADE HAS BEEN  DELETED  FROM THIS  FILING.  PLACES  WHERE  INFORMATION  HAS BEEN
DELETED ARE MARKED AS FOLLOWS: [CONFIDENTIAL INFORMATION DELETED]

         AMENDED AND RESTATED TRADEMARK AND TECHNOLOGY LICENSE AGREEMENT

         THIS AGREEMENT (the "Agreement"),  made and entered into as of June 30,
1999,  by and between  HUHTAMAKI  FINANCE  B.V., a Dutch  corporation,  with its
principal place of business at Burgemeester  Rijnderslaan 26, P.O. Box 49, 1 180
AA  Amstelreen,  The  Netherlands  (the  "Licensor")  and  HERSHEY  CHOCOLATE  &
CONFECTIONERY  CORPORATION  (formerly Homestead,  Inc.), a Delaware corporation,
with its principal  place of business at 5060Ward  Road,  Wheat Ridge,  CO 80033
(the "Licensee").

         WHEREAS,  Licensor and  Licensee are parties to that certain  Trademark
and  Technology  License  Agreement  dated  December  30,  1996  (the  "Original
Agreement")  pursuant to which  Licensor has licensed  certain  trademarks,  and
certain  registrations  and applications  therefor,  used in connection with the
manufacture  and sale of  confectionery  and other products in the Territory (as
hereinafter defined) and with which goodwill of substantial value is associated;

         WHEREAS, on May 25, 1999,  Huhtamaki Oyj, a Finnish corporation and the
parent company of the Licensor, entered into a separate agreement on the sale of
its gum  and  confectionery  business  to CSM nv,  a Dutch  corporation,  and in
connection with which Licensor desires to terminate Licensee's right and license
to use the XyliFresh trademark and associated trade dress.

         WHEREAS,  Licensee  desires  to expand the  territory  of its right and
license to produce,  market,  advertise,  promote, sell, distribute or offer for
sale Products (as  hereinafter  defined) under the  Trademarks  (as  hereinafter
defined) to cover the area of the entire world,  and, in  connection  therewith,
Hershey Canada,  Inc., an Ontario  corporation and an affiliated  company of the

<PAGE>

Licensee, desires to purchase, dismantle and remove a Jolly Rancher product line
located  in  Bristol,  England  owned by Leaf  United  Kingdom  Ltd,  an English
corporation, pursuant to a separate agreement signed as of the date hereof; and

         WHEREAS,  as a  result  of  changed  circumstances  resulting  from the
consummation  of  the  transactions  contemplated  by  the  Purchase  Agreement,
Licensor and Licensee desire to amend and restate the Original  Agreement as set
forth herein effective from and after June 30, 1999;

         NOW, THEREFORE, for other good and valuable consideration,  the receipt
of which is hereby acknowledged, the parties agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         1.1. The following capitalized terms shall have the following meanings
wherever used in this Agreement:

                  (a)  "Affiliate"  of any  particular  Person  means  any other
Person  controlling,  controlled by or under common control with such particular
Person,  where  "control"  means the  possession,  directly or indirectly of the
power to direct the  management  and  policies of a Person  whether  through the
ownership of voting securities, contract or otherwise.

                  (b) "Annual  Period"  means each twelve  (12)  calendar  month
period  beginning on January 1 and ending on the  subsequent  December 31 during
the term of this Agreement  (except in the case of the first Annual Period which
shall begin on the date  hereof and end on December  31, 1999 and in the case of
the  last  Annual  Period  which  shall  end upon  the  date of  termination  or
expiration of this Agreement).

                  (c) "Effective Date" shall mean July 1, 1999.

                  (d) "Original Effective Date" means December 30, 1996.
<PAGE>

                  (e) "Net  Sales"  means  (i) the sales of  Products  under the
Trademarks invoiced to third parties by Licensee or invoiced to third parties by
any  sublicensed  Affiliate of Licensee LESS any value added,  general sales and
similar taxes (to the extent included in the invoiced price),  sales rebates and
discounts,  including  rebates,  commissions to wholesalers and premiums,  other
price  reductions  and payments to  customers,  rebates to  customers  for price
differences and returns,  provisions for price  reductions and trade  discounts;
plus (ii) the sales of confectionery Products (which shall not include any sales
of  products,  such as ice  cream or  cookies  for  example,  in which  any such
confectionery  Product is an ingredient) under the Trademarks  invoiced to third
parties by any third party  sublicensee of Licensee or invoiced to third parties
by any third party sublicensee of any sublicensed Affiliate of Licensee less any
value  added,  general  sales and similar  taxes (to the extent  included in the
invoiced price), sales rebates and discounts,  including rebates, commissions to
wholesalers  and  premiums,  other price  reductions  and payments to customers,
rebates to customers for price  differences  and returns,  provisions  for price
reductions  and trade  discounts;  plus (iii) the royalties or other  equivalent
payments received by Licensee or any sublicensed  Affiliate of Licensee from any
third  party  sublicensee  for  sales of  non-confectionery  Products  under the
Trademarks  (which shall include any royalties or other equivalent  payments for
sales of  products,  such as ice cream or  cookies,  for  example,  in which any
confectionery  Product  is an  ingredient  but  only if and to the  extent  such
royalties or other equivalent payments relate to or are based upon the inclusion
of the confectionery  Product in such products).  If any of the Products covered
by clause (i) or the  confectionery  Products  covered by clause  (ii) above are
sold in a manner (such as a package of assorted  candies for example) in which a
separate price for the Product or confectionery  Product, as the case may be, is
not  established,  then the amount of sales to be included in Net Sales shall be
calculated   on  the  basis  of  the   Product's  or   confectionery   Product's
proportionate weight or value, as appropriate in the circumstances.

                  (f) "Patent Rights" means all patents and patent  applications
owned by or registered in the name of Licensor as of the Original Effective Date
that prior to the Original Effective Date were used in, or that otherwise relate
to, the production,  manufacture,  use, sale, distribution or composition of the
Products, as set forth in SCHEDULE B-1 hereto.
<PAGE>
                  (g)  "Person"  means  any   individual,   a   partnership,   a
corporation, a limited liability company, an association, a joint stock company,
a trust,  a joint venture,  an  unincorporated  organization  and a governmental
entity or any department, agency or political subdivision thereof.

                  (h)      "Products" means:

                           (i) the products marketed and sold as of the Original
         Effective  Date  in the  Territory  by  Licensor  or  any  pre-Original
         Effective Date Affiliate of Licensor and the products marketed and sold
         as of the Effective Date on a global basis, excluding the Territory, by
         the Licensor or any  pre-Effective  Date  Affiliate of Licensor,  which
         bear or are distributed or sold under any of the Trademarks; and

                           (ii) any product or service in connection  with which
         any of the  Trademarks is used and which is added to this  Agreement by
         Licensee in accordance with SECTION 2.4.

                  (i) "Purchase Agreement" means that certain Stock Purchase and
Sale  Agreement,  dated as of  November  23, 1996 by and among  Huhtamaki  Oy (a
Finnish  corporation  and the parent of  Licensor),  Licensor,  Hershey  Holding
Corporation (then a Delaware corporation and the parent of Licensee) and Hershey
Foods  Corporation  (a  Delaware  corporation  and then a second  tier parent of
Licensee).

                  (j) "Technical  Information"  means the Intellectual  Property
(as defined in the Purchase Agreement and other than the Trademarks),  including
that set out in SCHEDULE  B-2 hereto,  which was owned by or  registered  in the
name of  Licensor  as of the  Original  Effective  Date and  which  prior to the
Original  Effective  Date was  used  in,  or which  otherwise  related  to,  the
conception,  development,  production,  manufacture, sale or distribution of the
Products,  including but not limited to the following:  ingredients  composition
and recipes;  formulae;  standards  for raw  materials,  packaging and labeling;
quality  control  standards;  and processes and technical  descriptions  for the
transformation of raw materials into finished products.

                  (k)  "Territory"  means  North  America   (including   without
limitation,  the United  States of America,  Canada and Mexico and each of their
<PAGE>

possessions,  territories and  dependencies,  including  without  limitation the
Commonwealth of Puerto Rico,  Guam, the U.S. Virgin Islands and American Samoa),
the  Caribbean,  Central  America  and South  America,  and all  government  and
military  establishments  and  installations  thereof wherever located worldwide
provided the sale of Products first occurs in North America (as defined  above),
the Caribbean,  Central  America or  South-America.  The Territory shall further
include all duty free shops  located in North  America (as defined  above),  the
Caribbean, Central America and South America.

                  (l) "Trade  Dress"  means the labels,  packaging,  and related
associated  materials,  including designs and colors, and copyrights  (including
those set forth on SCHEDULE A),  previously used in the Territory by Licensor or
any of its pre-Original Effective Date Affiliates or heretofore used anywhere in
the world excluding the Territory by Licensor or any of its  pre-Effective  Date
Affiliates  in connection  with or  heretofore  relating to the Products and any
modifications, variations or extensions thereof.

                  (m)  "Trademarks"  means the  trademarks set out in SCHEDULE A
including any and all registrations  and applications for registration  thereof,
goodwill  associated  therewith and common law and all other rights appertaining
thereto  throughout  the world and any  modifications,  variations or extensions
thereof, and the Trade Dress associated therewith.

                                    ARTICLE 2

                                 GRANT OF RIGHTS

         2.1.  GRANT OF  TRADEMARK  LICENSE.  The  Licensor  (for itself and its
Affiliates)  does hereby grant to the Licensee,  and the Licensee  accepts,  the
exclusive (even as to Licensor and its Affiliates) authority,  right and license
to produce, market,  advertise,  promote, sell, distribute or offer for sale the
Products  under the  Trademarks  on a global basis and to use the  Trademarks as
trade names in connection  therewith.  This  exclusive  grant to Licensee  shall
preclude  each of the Licensor and its  Affiliates  from  producing,  marketing,
advertising,  promoting,  selling, distributing or offering for sale any product
or service under a trademark that is the same as or  confusingly  similar to any
of the Trademarks.
<PAGE>

         While the exclusive grant of trademark  license  relating to Trademarks
became effective in the Territory on the Original  Effective Date, the exclusive
grant of trademark  license  relating to Trademarks  shall become effective on a
global basis on the Effective  Date with the  exception of trademarks  and trade
dress  associated  with "Jolly  Rancher" and "Milkduds"  and any  modifications,
variations or extensions  thereof,  which shall become effective on an exclusive
basis outside of the Territory on September 30, 2000 being non-exclusive outside
of the Territory  from the Effective Date through  September 30, 2000.  From the
Effective  Date  through  September  30,  2000,  the  Licensee  shall retain its
exclusive (even as to Licensor and its Affiliates) authority,  right and license
to produce, market,  advertise,  promote, sell, distribute or offer for sale the
Products  under the  Trademarks in the  Territory  and to use the  Trademarks as
trade names in connection therewith under the Original Agreement.

         2.2  CONSIDERATION.  In consideration  for the right and license herein
granted to the Licensee to use the Trademarks in connection with the Products on
a global basis,  the Licensee  agrees (i) to pay to the Licensor or its assignee
an  amount  of  Five  Hundred  Thousand  Dollars  (USD$500,000)  payable  in one
installment  on the  Effective  Date  in  immediately  available  funds  by wire
transfer  to an  account  designated  by the  Licensor  and  (ii) to  convey  to
Licensor,  as of the  Effective  Date,  all of its right and  license to use the
trademark  "XyliFresh" together with its exclusive right to use in the Territory
all  Patent  Rights  and  Technical   Information   related  thereto,   and  any
modifications,  variations  or  extensions  thereof,  and  all of its  trademark
registrations  and applications  therefor,  and Licensee shall cancel all of its
security  interests  related thereto.  As of the Effective Date,  Licensee shall
cease any and all use of the  XyliFresh  trademark  and trade dress  (subject to
Licensee's  right to dispose of inventory on hand as of the Effective Date), and
its  right  to use  any  Patent  Rights  and  Technical  Information  associated
therewith,  provided,  however,  that nothing herein shall prevent Licensee from
using any Patent Rights and/or Technical Information associated with any Product
produced, marketed, advertised,  promoted, sold, distributed or offered for sale
by Licensee or any sublicensed Affiliate of Licensee prior to the Effective Date
with respect to which any Patent Right and/or Technical  Information  associated
with  XyliFresh  was  used  ("XyliFresh  Technical  Information")  (but  no such
Technical  Information relating solely and specifically to the use of Xylitol as
a  sweetener  in chewing  gum) and with the signing of this  Agreement  Licensee
<PAGE>

shall  receive  a   non-exclusive   license  to  use  any  XyliFresh   Technical
Information.

         2.3.  GOODWILL.  The use of the Trademarks by  Licensee  and any of its
sublicensees  and the  goodwill associated therewith shall enure solely to the
benefit of the Licensor.

         2.4.  EXPANSION OF TRADEMARK USE BY LICENSEE.  The Licensee  shall have
the absolute and unconditional right, subject only to the limitations imposed by
any of the license or limitations  agreements  referred to on SCHEDULE A, to use
in any  jurisdiction  anywhere in the world any of the  Trademarks in any way in
connection with the manufacturing,  marketing, advertising,  promoting, selling,
distributing or offering for sale of any product or service in addition to those
specified in SECTION 1.1.(H)(I).  In the event of such use of a Trademark,  such
product or service shall  thereupon  become a Product as provided for in SECTION
1.1.(H)(II)  and be  subject  to the terms  and  conditions  of this  Agreement,
including but not limited to ARTICLE 4 AND 5 HEREOF,  but only when such product
or service bears or has a Trademark  used in connection  with it and solely with
respect to the  jurisdiction or jurisdictions in which such use of the Trademark
occurs.

         2.5.  GRANT OF  LICENSE TO  TECHNICAL  INFORMATION  AND PATENT  RIGHTS.
Subject to the terms and conditions of this Agreement,  Licensor (for itself and
its  Affiliates)  hereby  grants to  Licensee,  to the  extent  Licensor  or its
Affiliates  have the right to do so, an exclusive  license  (even as to Licensor
and its Affiliates) to use the Technical  Information and the Patent Rights on a
global  basis  without  restriction  as to  use  thereof  by  Licensee  and  its
Affiliates in the conduct of any and all aspects of their respective businesses.
To the extent necessary,  Licensor agrees to obtain, at its expense,  for use by
Licensee the aforesaid rights from Licensor's Affiliates.  Licensee shall at its
expense maintain the Patent Rights.

         While the exclusive  license to use the Technical  Information  and the
Patent Rights in the Territory became effective on the Original  Effective Date,
the exclusive  license to use the Technical  Information  and Patent Rights on a
global  basis  shall  become  effective  on July 1, 1999 with the  exception  of
Technical  Information  and Patent Rights  associated  with "Jolly  Rancher" and
"Milkduds",  which shall become effective on an exclusive basis on September 30,
2000  being  non-exclusive  outside of the  Territory  from the  Effective  Date

<PAGE>

through September 30, 2000.

         2.6.  TECHNICAL  ASSISTANCE.  (a)  During  the term of this  Agreement,
Licensor and its Affiliates  shall,  upon the reasonable  request of Licensee or
its  Affiliates,  and  subject  to  the  availability  of  personnel  and  other
resources,  make available to Licensee and its Affiliates the technical services
of  Licensor's  and  its  Affiliates'  personnel  to  advise  Licensee  and  its
Affiliates in the manufacture and marketing of the Products.

         (b) Included in such technical services shall be the following:
                  (i)     technical  instruction and consulting with Licensee's
                          and its Affiliates' personnel with regard to
                          manufacturing the Products;

                 (ii)     inspections and visits; and

                (iii)     qualitative analysis.

                  (c)  Technical  assistance  shall  also  include,  but  is not
limited  to,  communicating  information,  advice and  proposals  with regard to
details of the manufacturing  processes and techniques for the Products,  advice
as to premises, purchase of machinery,  installation of machinery,  conditioning
of  premises,   warehousing,   purchasing  of  raw  materials,   transportation,
packaging, shelf life, quality assurance and the like.

         2.7. CONTINUED USE OF PATENT RIGHTS AND TECHNICAL  INFORMATION.  In the
event of any termination of this  Agreement,  Licensee's  rights  hereunder with
respect to the Patent Rights and Technical  Information  shall  continue in full
force and effect and shall not be impaired or diminished, except that Licensee's
rights with respect to the use of the Patent  Rights and  Technical  Information
shall thereafter become non-exclusive.

         2.8.  NO  INFRINGEMENT.   Licensor  (for  itself  and  its  Affiliates)
represents  and  warrants  that the  Technical  Information  and  Patent  Rights
comprise all such  information and patents used heretofore by Licensor or any of
its  pre-Original  Effective Date Affiliates in connection with the development,
production, manufacture,  distribution and sale of the Products in the Territory
<PAGE>

and that to its  knowledge the  Technical  Information  and Patent Rights do not
infringe or misappropriate the intellectual property rights of any third party.

         2.9.  BANKRUPTCY  OR  INSOLVENCY. (a) The rights  granted  to  Licensee
and its Affiliates  under this  Agreement are, and shall  otherwise be deemed to
be, for the  purposes of Section  365(n) of the  Bankruptcy  Code,  a license of
"intellectual  property" rights as defined in Section 101(35A) of the Bankruptcy
Code.
         Licensee,  as  licensee  of  rights  under  this  Agreement,  may fully
exercise all of its rights for itself and on behalf of its Affiliates  under the
Bankruptcy Code, including, but not limited to, Licensee's rights to continue to
exercise its rights licensed hereunder.

         (b)  Licensor  hereby  grants to  Licensee  a first  priority  security
interest in the Trademarks,  Patent Rights and Technical  Information,  together
with all good will associated  therewith,  to secure  performance by Licensor of
its  obligations  under this  Agreement.  Licensor  shall  cooperate  and assist
Licensee with the execution and filing of all documents necessary to perfect and
record such grant of  security  interest on a global  basis,  including  without
limitation, filings in the United States Patent and Trademark Office, all of the
expenses associated therewith being for the account of Licensee. Notwithstanding
the  foregoing,  no security  interest is granted  under this  Agreement  in any
Trademark, Patent Right or Technical Information where such grant would harm the
validity of any such Trademark, Patent Right or Technical Information.  Licensee
agrees that it will,  at its expense,  terminate  all security  interests in the
Trademarks,  if  this  Agreement  is  terminated  by  Licensee  pursuant  to the
provisions  of SECTION 7.1 or if this  Agreement is  terminated  pursuant to the
provisions of SECTION  8.1(B).  Licensee  further  agrees that in the event this
Agreement  and the  Trademarks,  Patent  Rights and  Technical  Information  are
assigned by Licensor  pursuant to the provisions of SECTION 10.3,  Licensee will
release its security interest vis-a-vis Licensor provided that Licensor and such
assignee have previously  taken all reasonable  steps  necessary,  at Licensee's
expense,  to put  Licensee  in the same  secured  position  with  respect to the
Trademarks,  Patent Rights and Technical Information as Licensee was in prior to
any such assignment and Licensee further agrees to cooperate and assist Licensor
and such assignee in that regard.
<PAGE>

                                    ARTICLE 3

                     VALIDITY AND MAINTENANCE OF TRADEMARKS

         3.1.  Representations  and  Warranties as to Trademarks. As to the
Trademarks,  Licensor  represents  and  warrants  to  Licensee  that  as of  the
Effective Date:
                  (i)     Except as limited only by Licensee's existing interest
                          in the  Trademarks  in the  Territory  pursuant to the
                          Original Agreement, Licensor is the sole and exclusive
                          owner of the entire  right,  title and interest in and
                          to  the  Trademarks  in  the  Territory  and,  to  the
                          knowledge  of  Licensor,  Licensor  is  the  sole  and
                          exclusive  owner  of  the  entire  right,   title  and
                          interest  in  and  to the  Trademarks  outside  of the
                          Territory;

                  (ii)    Licensor has full right to enter into this Agreement;

                  (iii)   The  Trademarks do not infringe upon any registered or
                          common  law  trademarks  in  the  Territory,   to  the
                          knowledge  of  Licensor,  do  not  infringe  upon  any
                          registered  or  common  law  trademarks   outside  the
                          Territory  and, to the  knowledge of Licensor,  do not
                          infringe  or  misappropriate   any  other  proprietary
                          rights of any third parties;

                  (iv)    There are not now pending or threatened  any claims or
                          litigation  and to the best of  Licensor's  knowledge,
                          information  and  belief no basis for any such  claims
                          exist, which would affect the Trademarks;

                  (v)     Except as set forth on  SCHEDULE  A,  Licensor  has
                          granted  no other  right or  license permitting the
                          use of the Trademarks; and

                  (vi)    To the extent so  identified in SCHEDULE A each of the
                          Trademarks  is duly  registered  with the  appropriate
<PAGE>

                          government  agencies  in  each  country  indicated  on
                          SCHEDULE A with respect thereto and the rights therein
                          have not been abandoned.

         3.2. NOTICE OF INFRINGEMENT  AND PROTECTION OF TRADEMARKS.  Each of the
parties  hereto agrees to give the other party  written  notice of any actual or
threatened  infringement  of the  Trademarks  by a third party,  promptly  after
information with respect to such infringement or threatened  infringement  comes
to its attention. Licensee is hereby given the right, but not the obligation, to
bring suit or take other action to eliminate  such  infringement  or  threatened
infringement  at its own expense in the name of itself,  Licensor or both itself
and Licensor, provided that Licensee shall provide prior notice to Licensor when
bringing  suit or taking other action in the name of Licensor or both itself and
Licensor,  and provided  further that Licensee  shall notify  Licensor  promptly
after  bringing suit or taking other action in its own name.  Licensee shall not
obligate Licensor for, or shall indemnify Licensor against, any costs, expenses,
attorneys'  fees or other  obligations  in  connection  with any such  action or
proceeding.  Further,  Licensor  shall  cooperate  with  Licensee at  Licensee's
expense in connection with any such action or proceeding.  Any damages recovered
in any such  action  or  proceeding,  less all court  costs and other  expenses,
including  expenses incurred by Licensor,  shall be for the account of Licensee.
If, after learning of an infringement of the Trademarks, Licensee chooses not to
bring suit  against  such  infringer  or take  other  action to  eliminate  such
infringement or threatened  infringement,  Licensor shall have the right but not
the  obligation to bring an action against such infringer at its own expense and
any final award or settlement  resulting  therefrom  shall be for the account of
Licensor.

         3.3.  MAINTENANCE OF TRADEMARKS.  Licensee,  at its own expense,  shall
have primary  responsibility  for the  maintenance of all  registrations  of the
Trademarks  on a global basis,  and shall pursue any  currently  pending and any
future  applications  for  registration  therefor  (and  shall have the right to
pursue  registration of any trademark  identical to a Trademark in jurisdictions
within the  Territory  where such  registration  does not exist on the  Original
Effective Date or outside the Territory on the Effective Date), on behalf of the
Licensor,  and,  in the  service  thereof,  shall  provide  Licensor  with  such
documentation as may be necessary to permit Licensor to execute any applications
for  registrations  and  renewals  as may be  necessary  with  respect  to  such
<PAGE>

Trademarks (or  trademarks) in the name of Licensor.  If the Licensor shall fail
to take any action appropriately requested by Licensee to maintain or register a
Trademark  (or  trademark  identical  to a  Trademark  as  provided  for above),
Licensee may,  after  written  notice to Licensor,  register such  Trademark (or
trademark) in its own name and thereafter  promptly assign such  registration to
Licensor.  The parties  agree to  cooperate in obtaining  and  maintaining  such
registrations,  renewals and assignments,  if any. All trademark rights obtained
in accordance  with the provisions of this SECTION 3.3 shall be included  within
the license grant of SECTION 2.1 immediately  upon such  acquisition and without
the  requirement of any further  action by Licensor or Licensee;  and SCHEDULE A
hereto shall be supplemented accordingly.

         3.4.  MODIFICATION  OF TRADEMARKS AND TRADE DRESS.  Licensee shall have
the right to modify the format of the Trademarks and the Trade Dress  associated
therewith  if in its  reasonable  business  judgment  it  determines  that  such
modifications are necessary or desirable.  Any such modified Trademarks shall be
owned by Licensor and shall be included  within the license grant of SECTION 2.1
and shall be considered a Trademark under this Agreement without the requirement
of any notice to or further action by Licensor or Licensee and SCHEDULE A hereto
shall be  supplemented  accordingly.  Licensee  shall  have the  right to pursue
registration  in Licensor's  name of any such  modified  Trademark in accordance
with SECTION 3.3.

                                    ARTICLE 4

                              STANDARDS OF QUALITY

         4.1.  WARRANTY AS TO PRODUCTS.  Licensee  warrants to Licensor that the
Products in connection  with which the Trademarks are used shall,  at all times,
conform to Good Manufacturing Practices (GMPs) and shall conform in all material
respects with all laws and  regulations  applicable.  Products will be produced,
packaged,  advertised  and  distributed  consistent  with the quality  standards
applied  prior  to  the  Original  Effective  Date  by  Licensor  or  any of its
pre-Original  Effective  Date  Affiliates  to the Products in the  Territory and
consistent  with the quality  standards  applied prior to the Effective  Date by
Licensor or any of its pre-Effective Date Affiliates to the products outside the
Territory.  Any new  Products  introduced  in the  Territory  after the Original
<PAGE>

Effective Date or introduced  outside of the Territory  after the Effective Date
shall also be produced and packaged  consistent  respectively  with such quality
standards.  In the case of new Products  which are not  confectionery  products,
such Products shall be produced consistent with the quality standards applied by
reputable manufacturers of such products.

         4.2. INSPECTIONS AND SAMPLES. Licensee agrees that Licensor or its duly
authorized  agent  (PROVIDED  that  Licensor or such agent shall have executed a
confidentiality  agreement  reasonably  satisfactory to Licensee) shall have the
right,  on an annual basis at a time to be agreed upon by Licensor and Licensee,
to inspect the manufacturing process utilized to produce the Products under this
Agreement to ensure compliance with the quality standards set forth herein.  The
inspection  shall be limited to those areas of the facilities where the Products
are  manufactured,  and  the  Licensor  agrees  to  such  restrictions  on  such
inspections  as may be required under the  Licensee's  contractual  arrangements
with third parties.  During such inspections,  (i) review may be made of quality
control and manufacturing reports as may be reasonably requested,  (ii) Licensor
or its duly  authorized  agent may take a  reasonable  number of  representative
samples of the Products for quality audit  purposes,  and (iii)  Licensor or its
duly  authorized  agent  may  review  representative   samples  of  promotional,
marketing and point-of-sale  materials for the Products illustrating  Licensee's
use of the Trademarks.

                                    ARTICLE 5

                              PROMOTION OF PRODUCTS

         5.1. BEST  EFFORTS.  Licensee  shall use its best efforts  commercially
reasonable in the  circumstances  and consistent with  Licensee's  marketing and
sales promotion practices to market and promote the sale and distribution of the
Products  under the  Trademarks in North  America.  It is understood  and agreed
between  the  parties  that  Licensee's  obligation  pursuant  to the  foregoing
sentence  shall not limit  Licensee's  ability  to curtail  or  discontinue  the
marketing,  promotion or sale of Products,  provided Licensee determines that it
is  commercially  reasonable  to do so based on the same  criteria it employs in
connection with the curtailment or discontinuance of the marketing, promotion or
sale of its own confectionery products.
<PAGE>

                                    ARTICLE 6

                                    ROYALTIES

         6.1.  PAYMENT OF ROYALTIES.  In  consideration of the right and license
herein  granted to the Licensee to use the  Trademarks  in  connection  with the
Products,  the Licensee agrees to pay to the Licensor, or to such other party as
the Licensor may  hereafter  direct to Licensee in writing,  the  royalties  set
forth in SECTION 6.2 hereof in the  amounts and manner set forth  therein and in
SECTION 6.4.

         6.2. ROYALTY PAYMENTS.

                  (a)      Licensee shall pay an annual royalty as follows:

                           (i)     [CONFIDENTIAL  INFORMATION  DELETED]  for a
                                   period  commencing  on the  Original
                                   Effective Date through the tenth (10th)
                                   anniversary  of the Original  Effective
                                   Date;

                          (ii)     [CONFIDENTIAL  INFORMATION  DELETED] from the
                                   tenth  (10th)  anniversary  of  the  Original
                                   Effective  Date through the twentieth  (20th)
                                   anniversary of the Original  Effective  Date;
                                   and

                         (iii)     [CONFIDENTIAL  INFORMATION  DELETED] from the
                                   twentieth (20th)  anniversary of the Original
                                   Effective  Date  until  the   termination  or
                                   expiration of this Agreement.

                  (b) In each  Annual  Period  hereunder,  Licensee  shall  make
quarterly  royalty  payments to Licensor  covering Net Sales  during  Licensee's
accounting  quarter  no later than forty five (45) days after the end of each of
the  first  three  accounting  quarters  and sixty  (60)  days  after the end of
Licensee's fourth accounting  quarter.  The royalty payment for Net Sales during
Licensee's fourth  accounting  quarter shall be adjusted to properly reflect Net
Sales  for the  Annual  Period  and for  purposes  of the  first  Annual  Period
hereunder  (the period  ending on  December  31,  1999) shall take into  account
<PAGE>

royalty  payments for Net Sales made or to be made under the Original  Agreement
for the  period  from  January  1, 1999 to the  Effective  Date.  To the  extent
permitted under applicable United States  securities laws,  Licensee agrees that
in December  (following the  completion of the  Licensee's  and its  sublicensed
Affiliates'  annual  marketing  plans for the Products for the following  fiscal
year) of each year it will advise  Licensor of the amount of Licensee's  and its
sublicensed  Affiliates' planned aggregate sales of the Products for such fiscal
year and Licensor agrees to treat such information confidentially.

         (c) [CONFIDENTIAL INFORMATION DELETED]

         6.3. PAYMENT OF ROYALTIES;  WITHHOLDING TAXES. All royalty and interest
payments shall be made in United States dollars.  Royalties not paid by Licensee
by the date specified in SECTION 6.2 shall bear interest from the date specified
for payment  herein until  actually  paid at an interest rate equal to the prime
lending  rate  quoted  and in effect  from  time to time by The Chase  Manhattan
Corporation or its successor. All royalty payments which are required to be made
hereunder by the Licensee to the Licensor shall be made in immediately available
funds at a bank  designated  by the  Licensor  from  time to time.  All  royalty
payments shall be subject to any applicable taxes, if any, which are required to
be withheld,  PROVIDED that the same are forthwith remitted and evidence of such
remittance to the appropriate  taxing authority is provided to the Licensor upon
request.

         6.4.  RECORDS  AND  REPORTS.  At all  times  during  the  Term  of this
Agreement,  Licensee shall (in accordance  with its customary  record  retention
policy)  keep true,  accurate and complete  records of total  quantities  of the
Products sold and the Net Sales in sufficient detail to permit the determination
of  royalties  payable  in  respect  thereof.  At the time  Licensee  makes  its
quarterly  payment of royalties  pursuant to SECTION 6.2, Licensee shall provide
Licensor with a royalty  report for such quarter as to the royalty  payments due
for that quarter.  The royalty report shall state, in reasonable detail, (a) the
Net Sales for each Product, (b) total Net Sales, and (c) the amount of royalties
due for such  quarter.  At the request and expense of Licensor,  Licensee  shall
permit an independent public accountant  selected by Licensor to have access to,
examine  and,  with  the  consent  of  Licensee  (which  consent  shall  not  be
unreasonably withheld),  copy during ordinary business hours such books, records
<PAGE>

and  accounts as may be necessary  or  advisable  to enable such  accountant  to
verify or  determine  the  royalty  paid or  payable  under this  Agreement  and
Licensee  shall render all  reasonable  assistance  to such  accountant  in that
regard.

         6.5. NO RELIEF.  Nothing  stated in this Article 6 shall relieve the
Licensee from making payments to the Licensor pursuant to the Original Agreement
in respect of periods preceding the Effective Date.

                                    ARTICLE 7

                                      TERM

         7.1. TERM. This Agreement shall have an initial term of seven years and
six months  commencing on the Effective  Date at which time it shall replace the
Original Agreement.  Thereafter,  this Agreement shall be renewed  automatically
without any prior notice to or action by either party or any of their respective
Affiliates,  successors  or assigns for  periods of ten (10) years each,  unless
terminated  (i)  by  Licensee  at  the  end of the  first  renewal  term  or any
subsequent  ten (10) year  renewal  term on not less than six (6)  months  prior
notice to Licensor,  or (ii) pursuant to the provisions of SECTION 8.1 (B). Upon
any such  termination,  all of the  Trademarks  shall remain the property of the
Licensor and no rights therein shall be deemed transferred to the Licensee,  and
Licensee  shall  immediately  cease  all  use  of  the  Trademarks,  subject  to
Licensee's right to dispose of inventory on hand as of the date of termination.

                                    ARTICLE 8

                               REMEDIES FOR BREACH

         8.1. BREACH OF PAYMENT OBLIGATIONS BY LICENSEE.

         (a)  Licensor  acknowledges  and agrees  that it shall have no right to
terminate  this  Agreement  or any of  Licensee's  rights  hereunder  except  as
expressly set forth in this SECTION 8.1.

         (b) In the  event  of a  willful  breach  by  Licensee  of its  payment
obligations pursuant to ARTICLE 6 hereof,  Licensor may send a written notice to
Licensee  stating that it has breached its payment  obligations,  specifying  in
detail the nature of such breach and requiring  Licensee to rectify such breach.
<PAGE>

If such breach is not rectified by Licensee  within a period of thirty (30) days
after  receiving  written  notice from  Licensor,  Licensor shall be entitled to
exercise  any  remedies it may have  hereunder,  including  termination  of this
Agreement.

         (c)  Notwithstanding  the  provisions of Section  8.1(b),  in the event
Licensee  disputes in good faith the alleged  breach by disputing  the amount of
royalties owed by Licensee pursuant to SECTION 6.2 hereof, such dispute shall be
resolved  exclusively by  arbitration  pursuant to SECTION 8.3 and in accordance
with the  procedures  set forth therein,  and shall,  in no event,  give rise to
Licensor's  ability to terminate this Agreement.  Such arbitration  shall be the
sole and exclusive dispute  resolution  mechanism for resolving such matter, the
parties  hereto   voluntarily   waiving  for  themselves  and  their  respective
Affiliates any other rights or remedies any of them may have in any jurisdiction
to resolve such matter.

         8.2. OTHER MATERIAL BREACHES.

         (a)  Except  as set  forth in  SECTION  8.1,  in the  event  one  party
determines  that the other party has committed a material  breach of a provision
of this Agreement,  such party may provide written notice to the breaching party
("Breach  Notice")  specifying the material  breach  complained of in reasonable
detail and  requiring  such other party to rectify  such breach.  The  breaching
party  shall then have  ninety  (90) days from  receipt of the Breach  Notice to
rectify  such  breach  or,  if such  material  breach  is such that it cannot be
rectified  within  the said  ninety  (90) day  period  but is  capable  of being
rectified  within a reasonable  period of time  thereafter,  to begin to rectify
such  breach  within  such  ninety  (90) day  period and  thereafter  to proceed
diligently  to complete  the  rectification  of the breach  within a  reasonable
period. In the event that the party receiving the Breach Notice does not rectify
the breach  within the time period  specified  in the  preceding  sentence,  the
non-breaching party shall have the right to invoke binding arbitration  pursuant
to  SECTION  8.3.  Such  arbitration  shall be the sole  and  exclusive  dispute
resolution  mechanism for resolving such matter,  the parties hereto voluntarily
waiving for  themselves  and their  respective  Affiliates  any other  rights or
remedies any of them may have in any jurisdiction to resolve such matter.

         (b) Notwithstanding  the foregoing,  in the event the party receiving a
Breach  Notice  disputes the other  party's  assertion  that it has  committed a
material breach of this Agreement,  such party shall promptly,  and in any event
within thirty (30) days after receiving such Breach Notice,  send written notice
of such dispute to the other party.  The parties  shall then commence good faith
negotiations  to resolve such dispute.  In the event that the parties are unable
to negotiate a resolution  of such dispute  within sixty (60) days of commencing
such good faith  negotiations,  either party shall,  if it wishes to pursue such
dispute,  invoke binding  arbitration  pursuant to SECTION 8.3. Such arbitration
shall be the sole and exclusive dispute resolution  mechanism for resolving such
matter,  the  parties  hereto  voluntarily  waiving  for  themselves  and  their
respective  Affiliates  any other rights or remedies any of them may have in any
jurisdiction to resolve such matter.
<PAGE>

         8.3.  ARBITRATION.  (a) In the event arbitration is required or invoked
pursuant to SECTIONS 8.1 OR 8.2, such arbitration  proceeding shall be conducted
under the auspices of the Center for Public  Resources  (the "CPR") in New York,
New York pursuant to the CPR's Model ADR  Procedures  and  Practices,  Rules and
Commentary for  Arbitration.  The arbitrators in any such  arbitration  shall be
persons  knowledgeable  in the industry with regard to the subject matter of the
arbitration.  Both the  foregoing  agreement of the parties to arbitrate any and
all such claims, and the results, determination,  finding, judgment and/or award
rendered  through  such  arbitration,  shall be final and binding on the parties
thereto and may be specifically  enforced by legal proceedings in a court having
jurisdiction over the party in question.  It is expressly  understood and agreed
by the parties that the arbitrators in any such arbitration shall have the right
to order injunctive relief (both preliminary and permanent  injunctions)  and/or
payment of  damages  as the sole and  exclusive  remedy or  remedies  awarded to
either party in  connection  with matters  referred to them pursuant to SECTIONS
8.1 AND 8.2 but in no event  shall they have the right to order  termination  of
all or any part of this Agreement.

         (b) Licensor  shall  appoint one (1)  arbitrator,  and Licensee one (1)
arbitrator  within a term of  thirty  (30)  days  from the date  arbitration  is
required or invoked pursuant to SECTIONS 8.1 OR 8.2, and the two (2) arbitrators
so appointed shall appoint the third arbitrator (who shall also be knowledgeable
<PAGE>

in the industry with regard to the subject matter of the  arbitration)  within a
term of  thirty  (30)  days  from  the date on  which  the  later of the two (2)
arbitrators has been selected.

         (c) If either  Licensor  or  Licensee  fails to select  its  arbitrator
within  the term  mentioned  above,  or in the event  that the two (2)  selected
arbitrators are unable or unwilling to select a third  arbitrator  within thirty
(30) days  following  the  selection  of the  later of them,  then the CPR shall
select such arbitrator  (meeting the criteria set out in SECTION 8.3(B), and the
three (3)  arbitrators so selected shall  constitute the  arbitration  panel for
purposes of the dispute.  The parties shall have thirty (30) days  thereafter to
submit their position to the  arbitrators.  The arbitrators  shall be instructed
and  required  to render  their  decision  within  thirty  (30)  days  following
completion of the arbitration.

         (d) Each  party  shall  bear  separately  the cost of their  respective
attorneys,  witnesses and experts in connection with such  arbitration and shall
jointly bear the costs of the arbitrators.

         (e) The parties  hereby waive any claim to any damages in the nature of
punitive,  exemplary or statutory damages in excess of compensatory damages, and
the arbitration tribunal is specially divested of any power to award any damages
in the  nature  of  punitive,  exemplary  or  statutory  damages  in  excess  of
compensatory damages, or any form of damages in excess of compensatory damages.

         (f) The  arbitrators  shall be the  exclusive  judges of relevance  and
materiality.  No  witness  or  party  may be  required  to waive  any  privilege
recognized by law.

         (g) Unless the  arbitrators  shall  otherwise  rule in the  interest of
justice,  all direct or rebuttal  testimony  shall be  submitted  in the form of
sworn  affidavits,  provided  that at the  request of another  party,  the party
submitting the affidavit will make the affiant available for  cross-examination.
If the affiant is not made available for cross-examination,  the affidavit shall
not be considered as evidence by the arbitrators  except if the arbitrators find
that the affiant is beyond the control of the party offering the affidavit,  the
affiant is unavailable and the interests of justice require consideration of the
evidence submitted by the affiant.
<PAGE>

         (h) Notwithstanding  anything to the contrary in this Agreement, in the
event of a breach by  either  party of  SECTION  2.1 the  other  party  shall be
entitled,  if it so elects, to institute and prosecute  proceedings in any court
of competent  jurisdiction  to enforce the specific  performance of such party's
obligations pursuant to such section.

                                    ARTICLE 9

                           SURVIVAL OF REPRESENTATIONS

         9.1. SURVIVAL OF  REPRESENTATIONS.  The representations and warranties
of Licensor set forth in SECTION 3.1 hereof shall survive for a period of six
months following the Effective  Date. Any other  representations  and
warranties set forth in this Agreement shall survive indefinitely.

                                   ARTICLE 10

                     SUCCESSORS' SUBLICENSING AND ASSIGNMENT

         10.1.  BINDING UPON  SUCCESSORS AND ASSIGNS.  This Agreement  shall be
binding upon and shall enure to the benefit of the Licensor, its successors and
assigns, and the Licensee, its successors and assigns.

         10.2. SUBLICENSING. The Licensee and any of its Affiliates who may be a
sublicensee may sublicense  rights under this Agreement without notice to or the
prior written  consent of Licensor  PROVIDED THAT (i) a copy of such part of any
agreement pursuant to which such rights are being sublicensed as will permit the
Licensor to verify that the provisions of clauses (ii) and (iii) of this SECTION
10.2 have been complied with is delivered to Licensor prior to the  commencement
of each such sublicense,  (ii) the sublicensee is required to maintain standards
of quality at least equivalent to those set forth in ARTICLE 4 of this Agreement
and  (iii)  the  Licensor  shall  have  the same  rights  with  respect  to said
sublicensee as are contained in ARTICLE 4 of this  Agreement.  Without  limiting
the foregoing,  Licensor acknowledges and agrees that contemporaneously with the
execution of this Agreement  Licensee will enter into a sublicense of its rights
hereunder with Hershey Foods Corporation.
<PAGE>

         10.3.  ASSIGNMENT.  Licensor may assign this  Agreement in its entirety
without the prior written consent of Licensee  provided that any such assignment
is made only in conjunction with an assignment of the Trademarks,  Patent Rights
and Technical  Information  to such  assignee.  Licensor  further  covenants and
agrees  that it shall not  assign the  Trademarks,  Patent  Rights or  Technical
Information  other than in  conjunction  with its  assignment  of its rights and
obligations  under this  Agreement  to such  assignee.  Licensee may assign this
Agreement (other than its obligations pursuant to SECTION 6.2(C), in whole or in
part  (including,  without  limitation,  assignment  of  Licensee's  rights  and
obligations  under this Agreement with respect to one or more of the Trademarks)
with  respect to the United  States as a whole,  Canada as a whole,  Mexico as a
whole,  the rest of the  Territory  as a whole  and/or the world  other than the
Territory as a whole,  without the prior written  consent of Licensor,  provided
that any  such  assignee  enters  into an  agreement  with  Licensor,  in a form
reasonably  acceptable  to  Licensor,  assuming  all of  Licensee's  rights  and
obligations  under this Agreement,  and provided  further that (a) Hershey Foods
Corporation guarantees such assignee's performance of its obligations under this
Agreement; or (b)(i) such assignee has at the time of the assignment a net worth
of  not  less  than  $500  million  (for  assignees  of  Licensee's  rights  and
obligations under this Agreement in the entire Territory or in the United States
as a whole) or $200 million (for assignees of Licensee's  rights and obligations
under this  Agreement in Canada as a whole,  Mexico as a whole,  the rest of the
Territory as a whole and/or the world other than the Territory as a whole),  and
(ii)  Licensor,  after a  reasonable  and  prompt  good faith  inquiry,  has not
determined that such assignee would be likely to adversely affect the good will,
public  perception or value of the  Trademarks,  or that such  assignment  would
adversely affect the performance of the obligations of the licensee hereunder.

                                   ARTICLE 11

                                  MISCELLANEOUS

         11.1. ADDITIONAL REPRESENTATIONS AND WARRANTIES.  Each party represents
and warrants to the other that the execution,  delivery and  performance by such
party of this  Agreement  have been duly  authorized by all necessary  corporate
action and all governmental  consents,  approvals and authorizations (except for
<PAGE>

any of such which are not  material  to such  party's  ability  to  perform  its
obligations  under this  Agreement)  required in connection with such execution,
delivery and performance have been obtained and are in full force and effect.

         11.2.  RECORDAL.  The parties hereto shall cooperate in connection with
the recording of this Agreement or a summary  thereof in those  countries  where
such recordal is requested by Licensee in accordance  with applicable law.

         11.3.  WAIVER.  Failure or delay of either party at any time to require
performance of any provisions under this Agreement shall not affect the right of
such party to require full  performance  thereafter and a waiver by either party
of a breach of any provision of this Agreement  shall not be taken or held to be
a waiver of any further or similar breach or as nullifying the  effectiveness of
such provision.  A waiver of any provision  hereunder shall be effective only if
such  waiver is in writing and signed by the party  against  whom such waiver is
sought to be enforced.  Failure or delay on the part of either party to exercise
any right, remedy, power or privilege provided for herein shall not operate as a
waiver  thereof,  nor shall any single or partial  exercise  of any such  right,
remedy, power or privilege preclude any other or further exercise thereof or the
exercise of any other rights, remedy, power or privilege.

         11.4. ENTIRE AGREEMENT.  This Agreement sets forth the entire agreement
and understanding  between the parties with respect to the subject matter hereof
and merges and supersedes all prior discussions, representations, understandings
and agreements,  whether oral or in writing, between the parties with respect to
such subject  matter,  including  without  limitation,  the Original  Agreement;
provided, however, that nothing herein shall affect in any way the effectiveness
of the  Original  Agreement  from  December  30,  1996 to June  30,  1999.  This
Agreement may be altered,  modified or amended only by a written document signed
by the parties hereto.

         11.5.  SEVERABILITY.  In the event that any clause,  term or  provision
hereof  is  determined  by any  court  or  administrative  agency  of  competent
jurisdiction to be invalid, illegal or unenforceable, the validity, legality and
enforceability  of the  remaining  provisions  hereof  will  not  in any  way be
affected or impaired thereby.
<PAGE>

         11.6. FORCE MAJEURE.  Any delays in or failure of performance by either
party under this Agreement shall not be considered a breach hereof if such delay
or failure is occasioned by an event beyond the reasonable  control of the party
affected  ("force  majeure"),  provided that the Licensee  shall  continue to be
obligated to pay to the  Licensor  any and all amounts  which it shall have duly
become  obligated to pay in accordance with the terms of this Agreement prior to
the  occurrence  of such an event,  and  FURTHER  PROVIDED  THAT any party whose
performance  is so delayed shall give prompt  notice  thereof to the other party
and  shall  use all  reasonable  endeavors  to  comply  with  the  terms of this
Agreement as soon as possible.  Force  majeure in this  context  shall  include,
without limitation,  acts of government, acts of God, fires, floods, explosions,
riots, civil disturbances, strikes, insurrections,  earthquakes, wars, rebellion
and epidemics.

         11.7.  NOTICES.  Any notice  referred to in this Agreement may be given
either (i) by first  class  certified  or  registered  airmail,  return  receipt
requested, postage prepaid, or (ii) by means of electronic recorded transmission
whereby  the  party  giving  such  notice   receives  an  immediate   electronic
acknowledgment of receipt from the recipient. Any such notice shall be deemed to
be properly  given and served  when  received.  Notices  shall be in English and
addressed to the parties as follows:

              IF TO THE LICENSOR:
              -------------------
              Huhtamaki Finance B.V.
              Burgemeester Rijnderslaan 26
              P.O. Box 49
              1 180 AA Amstelveen
              The Netherlands

              ATTENTION: Managing Director
              ---------
              with a copy to:

              Huhtamaki Oyj
              Lansituulentie 7
              02100 Espoo
              Finland

              ATTENTION: Vice President, Administration
              ---------
<PAGE>

              IF TO THE LICENSEE:
              ------------------
              Hershey Chocolate& Confectionery Corporation
              5060 Ward Road
              Wheat Ridge, CO 80033

              ATTENTION: President and Counsel
              ---------
              with a copy to:

              Hershey Foods Corporation
              100 Crystal A Drive
              Hershey, Pennsylvania 17033-0810

              ATTENTION: Senior Vice President, General Counsel and Secretary
              ---------
         Either party may from time to time  designate by written  notice to the
other party  another  address which it desires to be used for service of notices
hereunder in lieu of such address.

         11.8.  PERFORMANCE BY  AFFILIATES.  Where  performance of Licensor's or
 Licensee's  duties or obligations under this Agreement requires or involves
action by any of their respective  Affiliates.  Licensor or Licensee,  as
appropriate, shall secure such performance by such Affiliate.

         11.9.  APPLICABLE LAW. This Agreement and the legal  relations  between
the parties  hereto  shall,  in all  respects,  be  interpreted,  construed  and
governed in accordance with the laws of the State of New York, without reference
to the choice of law  principles of such laws (other than Section  5-1401 of the
New York General Obligations Law)

         11.10.  EXCLUSIVE  JURISDICTION.  Any  disputes  arising  out of or
relating  to this  Agreement  shall be resolved exclusively as provided in
ARTICLE 8 hereof.

         11.11.  COUNTERPARTS.  This Agreement may be executed in one or more
counterparts,  each of which shall be deemed to be an original and all of which
shall be deemed to have been executed simultaneously.

<PAGE>

         IN  WITNESS  WHEREOF,  the  parties  hereto  have  duly  executed  this
Agreement, as of the day and year first above written.

                                       HUHTAMAKI FINANCE B.V.

                                       By:_______________________________
                                           Name:   Eero Aho
                                           Title:  Managing Director

                                       By:_______________________________
                                           Name:   Juha Salonen
                                           Title:  Managing Director

                                        HERSHEY CHOCOLATE &
                                             CONFECTIONERY CORPORATION

                                       By:_______________________________
                                           Name:
                                           Title:

                                       By:________________________________
                                           Name:
                                           Title:

<PAGE>
<TABLE>
<CAPTION>

SCHEDULE A TO TRADEMARK AND TECHNOLOGY LICENSE AGREEMENT

TRADEMARK REGISTRATIONS

(CHUCKLES, GOOD'N FRUITY, GOOD&PLENTY, HEATH, JOLLY RANCHER, MILK DUDS, PAYDAY, SIXLETS, WHOPPERS, ZERO)

==================== ================================ ========= ================ ================ =================
<S>                  <C>                              <C>       <C>             <C>              <C>
COUNTRY              TRADEMARK                        CLASSES   REG. NO.         REG. DATE        PROPRIETOR
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
U.S.
CANADA
MEXICO
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
USA                  Chuckles                                   0515075          Sep 13 1949      HFBV
                     Good&Plenty                                1289249          Aug 07 1984      HFBV
                     Good&Plenty and Design                     1328776          Apr 02 1985      HFBV
                     Good'n Fruity & Design                     0742450          Dec 18 1962      HFBV
                     Good'n Fruity                              1838788          Jun 07 1994      HFBV
                     Good'n Fruity Fruit Design                 1825329          Mar 08 1994      HFBV
                     Good and Plenty                            0243197          Jun 12 1928      HFBV
                     Heath                                      1404302          Aug 05 1986      HFBV
                     Heath                                      1403352          Jul 29 1986      HFBV
                     Heath Bits                                 1572237          Dec 19 1989      HFBV
                     Heath                                      0793753          Aug 03 1965      HFBV
                     Heath                                      0799191          Nov 23 1965      HFBV
                     Heath Almond Toffee Chips                  0675751          Mar 17 1959      HFBV
                     Heath Double Dip Almond Toffee             0673677          Feb 03 1959      HFBV
                     Chips
                     Heath English Toffee Miniatures            0782609          Dec 29 1964      HFBV
                     From the Makers of Heath
                     Toffee Crunch                              0788228          Apr 13 1965      HFBV
                     Heath Toffee Premium                       0699499          Jun 14 1960      HFBV
                     Original Heath                             1403351          Jul 29 1986      HFBV
                     Soft'n Crunchy Heath                       1436583          Apr 14 1987      HFBV
                     Jolly Rancher                              2055901          Apr 22 1997      HFBV
                     Jolly Rancher                              0695762          Apr 05 1960      HFBV
                     Jolly Rancher                              1923903          Oct 03 1995      HFBV
                     Jolly Rancher                              1923904          Oct 03 1995      HFBV
                     Jolly Rancher                              1684586          Apr 28 1992      HFBV
                     JR&Design                                  1174430          Oct 20 1981      HFBV
                     JR and Design                              1821292          Feb 15 1994      HFBV
                     JR and Design                              1843021          Jul 05 1994      HFBV
                     JR and Design                              1880538          Feb 28 1995      HFBV
                     JR and Design                              1877705          Feb 07 1995      HFBV
                     Milk Duds                                  1307327          Nov 27 1984      HFBV
                     Payday                                     0370705          Sep 05 1939      HFBV
                     Payday                                     1448756          Jul 21 1987      HFBV
                     Sixlets                                    1023366          Oct 21 1975      HFBV
                     Six 6 Lets                                 0644531          Apr 23 1957      HFBV
                     Whoppers                                   0965678          Aug 07 1973      HFBV
<PAGE>

                     Zero                                       0284982          Jul 14 1931      HFBV
                     Zero                                       1677789          Mar 03 1992      HFBV
                     Zero                                       1268127          Feb 21 1984      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Canada               Chuckles                                   38130                             HFBV
                     Chuckles                                   164092                            HFBV
                     Good'n Fruity & Design                     214013                            HFBV
                     Good&Plenty                                43049                             HFBV
                     Heath                                      713264           Application      HFBV
                     Heath&Design                               7131251          Application      HFBV
                     Jolly Rancher                              253159                            HFBV
                     Jolly Rancher & Design                     806453           Application      HFBV
                     Jolly Rancher                              252228                            HFBV
                     JR Jolly Rancher                           476066           May 12 1997      HFBV
                     Milk Duds                                  382784                            HFBV
                     Payday                                     180150                            HFBV
                     Payday                                     155125                            HFBV
                     Whoppers                                   164110                            Leaf Canada,
                                                                                                  Inc.
                     Zero Design                                179572                            HFBV
                     Zero Design                                174381                            HFBV
                     Chuckle                                    39240            Jan 28 1926      HFBV
                     Chuckles Canadian Jells                    157169           Jun 07 1968      HFBV
                     Heath (Oval) Design                        187955           Jan 19 1973      HFBV
                     Heath Sensations                           432746           Sep 02 1994      HFBV
                     Super Crunch Heath & Design                210960           Jan 06 1976      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Mexico               Chuckles & Design                          443047                            Leaf, Inc.
                     Good&Plenty                                417351                            Leaf, Inc.
                     Good'n Fruity                              429720                            Leaf, Inc.
                     Heath&Design                               422668                            Leaf, Inc.
                     Jolly Rancher                              420571                            Leaf, Inc.
                     JR&Design                                  408947                            Leaf, Inc.
                     Milk Duds                                  421140                            Leaf, Inc.
                     Payday and Design                          406888                            Leaf, Inc.
                     Sixlets                                    421139                            Leaf, Inc.
                     Whoppers                                   364539                            Leaf, Inc.
                     Zero and Design                            406889                            Leaf, Inc.
                     Ranchers                                   463706

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------

CENTRAL &
SOUTH
AMERICA

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Argentina            Heath                                      1501739                           Leaf, Inc.
                     Jolly Rancher                              1584485          Dec 15 1995      Leaf, Inc.
                     Milk Duds                                  1562946          May 31 1991      Leaf, Inc.
                     Payday                                     1619604          Oct 23 1996      Leaf, Inc.
                     Sixlets                                    1994518          Application      Leaf, Inc.
                     Whoppers                                   1990881          Application      Leaf, Inc.
<PAGE>

                     Zero                                       1639897          Jul 30 1997      Leaf, Inc.

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Bolivia              Heath                                      62579-C          Nov 19 1996      Leaf, Inc.
                     Jolly Rancher                              3155             Application      Leaf, Inc.
                     Payday                                     62575-C          Nov 19 1996      Leaf, Inc.
                     Sixlets                                    62577-C          Nov 19 1996      Leaf, Inc.
                     Whoppers                                   62578-C          Nov 19 1996      Leaf, Inc.
                     Zero                                       62576-C          Nov 19 1996      Leaf, Inc.

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Brazil               Good'n Fruity                              818635525        Application      Leaf, Inc.
                     Heath                                      819116343        Application      Leaf, Inc.
                     Heath &Design                              818775297        Jun 23 1998      Leaf, Inc.
                     JR Jolly Rancher                           818763981        Application      Leaf, Inc.
                     Payday                                     818635517        Application      Leaf, Inc.
                     Sixlets                                    818886390        Application      Leaf, Inc.
                     Whoppers                                   818723505        Sep 30 1997      Leaf, Inc.
                     Zero&Design                                818763990        Application      Leaf, Inc.

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Chile                Heath                                      459915           Apr 16 1996      HFBV
                     Jolly Rancher                              393517                            Leaf, Inc.
                     Payday                                     318583                            HFBV
                     Sixlets                                    528129           Nov 23 1998      Leaf, Inc.
                     Whoppers                                   235965                            Leaf, Inc.
                     Zero                                       316112           Application      Leaf, Inc.

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Colombia             Jolly Rancher                              182524           Aug 31 1995      Leaf, Inc.
                     Milk Duds                                  169863                            Leaf, Inc.
                     Payday                                     9421346          Application      Leaf, Inc.
                     Sixlets                                    94040774         Application      Leaf, Inc.
                     Whoppers                                   94040775         Application      Leaf, Inc.

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Costa Rica           Heath                                      95035            Apr 03 1996      HFBV
                     Jolly Rancher                              95036            Apr 03 1996      HFBV
                     Payday                                     95497            Jul 31 1996      HFBV
                     Sixlets                                    104318           Oct 23 1997      HFBV
                     Whoppers                                   95049            Apr 03 1996      HFBV
                     Zero                                       95046            Apr 03 1996      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Dominican Republic   Heath                                      81702            Jan 15 1996      Leaf, Inc.
                     Jolly Rancher                              81701            Jan 15 1996      Leaf, Inc.
                     Payday                                     81697            Jan 15 1996      Leaf, Inc.
                     Sixlets                                                     Application      Leaf, Inc.
                     Zero                                       81700            Jan 15 1996      Leaf, Inc.
                     Whoppers                                                    Application      Leaf, Inc.

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Ecuador              Heath                                      258697           Nov 14 1996      Leaf, Inc.
                     Jolly Rancher                              258796           Nov 14 1996      Leaf, Inc.
                     Payday                                     155197           Jul 22 1997      Leaf, Inc.
                     Sixlets                                    74367            Application      Leaf, Inc.
                     Whoppers                                   258596           Nov 14 1996      Leaf, Inc.

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
<PAGE>

El Salvador          Chuckles                                   222, Book 57     Jul 1 1997       HFBV
                     Jolly Rancher                              69, Book 67      Jan 23 1998      Leaf, Inc.
                     Payday                                     21, Book 68      Jan 27 1998      Leaf, Inc.
                     Sixlets                                    2026-95          Application      Leaf, Inc.
                     Whoppers                                   2016-95          Application      Leaf, Inc.
                     Zero                                       2017-95          Application      Leaf, Inc.
                     Heath                                      70, Book 67      Jan 23 1998      Leaf, Inc.

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Guatemala            Jolly Rancher                              085185           Mar 19 1997      Leaf, Inc.
                     Payday                                     84279            Mar 20 1997      Leaf, Inc.
                     Sixlets                                    84280            Mar 20 1997      Leaf, Inc.
                     Whoppers                                   90380            May 05 1998      Leaf, Inc.
                     Zero                                                        Application      Leaf, Inc.

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Haiti                Heath                                      114/108          Mar 25 1997      Leaf, Inc.
                     Jolly Rancher                              111/108          Mar 25 1997      Leaf, Inc.
                     Payday                                     107/108          Mar 25 1997      Leaf, Inc.
                     Sixlets                                    109/108          Mar 25 1997      Leaf, Inc.
                     Whoppers                                   110/108          Mar 25 1997      Leaf, Inc.
                     Zero                                       108/108          Mar 25 1997      Leaf, Inc.

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Honduras             Heath                                      68664            Apr 30 1997      Leaf, Inc.
                     Jolly Rancher                              69085            Jul 24 1997      Leaf, Inc.
                     Payday                                     69086            Jul 24 1997      Leaf, Inc.
                     Sixlets                                    3139/96          Application      Leaf, Inc.
                     Whoppers                                   68385            Apr 11 1997      Leaf, Inc.
                     Zero                                       3140/96          Application      Leaf, Inc.

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Panama               Heath                                      76890            Oct 11 1996      Leaf, Inc.
                     Jolly Rancher                              76888            Oct 11 1996      Leaf, Inc.
                     Payday                                     042001                            Leaf, Inc.
                     Sixlets                                    037310                            Leaf, Inc.
                     Whoppers                                   037312                            Leaf, Inc.
                     Zero                                       041999                            Leaf, Inc.

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Peru                 Heath                                      017735           Jul 27 1995      Leaf, Inc.
                     Jolly Rancher                              035471           Apr 30 1997      Leaf, Inc.
                     Payday                                     026419           Apr 24 1996      Leaf, Inc.
                     Sixlets                                                     Apr 11 1996      Leaf, Inc.
                     Whoppers                                   023353           Jan 12 1996      Leaf, Inc.
                     Zero                                       021539           Dec 04 1995      Leaf, Inc.

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Trinidad             Heath                                      25127            Application      Leaf, Inc.
                     Jolly Rancher                              25130            Application      Leaf, Inc.
                     Payday                                     25134            Application      Leaf, Inc.
                     Sixlets                                    25132            Application      Leaf, Inc.
                     Whoppers                                   25131            Application      Leaf, Inc.
                     Zero                                       25133            Application      Leaf, Inc.

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Uruguay              JR Jolly Rancher                           285260           Jul 14 1997      Leaf, Inc.
                     Payday                                     277567           Application      Leaf, Inc.
                     Sixlets                                    277566           Oct 30 1997      Leaf, Inc.
                     Whoppers                                   279866           Application      Leaf, Inc.
                     Zero                                       284850                            Leaf, Inc.

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
<PAGE>

Venezuela            Chuckles                                   72170-F                           Leaf, Inc.
                     Good&Plenty & Device                       86151F                            Leaf, Inc.
                     Heath                                      873995           Application      Leaf, Inc.
                     Jolly Rancher                              2716-96          Application      Leaf, Inc.
                     Payday                                     873895           Application      Leaf, Inc.
                     Sixlets                                    874095           Application      Leaf, Inc.
                     Whoppers                                   12597-95         Application      Leaf, Inc.
                     Zero                                                        Application      Leaf, Inc.

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------

AFRICA

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Egypt                Chuckles                         30        676026 (IR)      Jun 12 1997      HFBV
                     Good&Plenty                      30        676595 (IR)      Jun 27 1997      HFBV
                     Good'n Fruity                    30        676597 (IR)      Jun 27 1997      HFBV
                     Heath                            30        676092 (IR)      Jun 12 1997      HFBV
                     Jolly Rancher                    30        604681 (IR)      Feb 26 1997      HFBV
                     Milk Duds                        30        676090 (IR)      Jun 12 1997      HFBV
                     Payday                           30        676104 (IR)      Jun 12 1997      HFBV
                     Sixlets                          30        676096 (IR)      Jun 12 1997      HFBV
                     Whoppers                         30        676028 (IR)      Jun 12 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Morocco              Good&Plenty & Device             30        25168            Jul 18 1974      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
South Africa         Good'n Fruity                                               Pending          HFBV
                     Good&Plenty & Device                                        Pending          HFBV
                     Whoppers                                   79/6922
                     Heath                            30                         Pending          HFBV
                     Jolly Rancher                    30                         Pending          HFBV
                     Milk Duds                        30                         Pending          HFBV
                     Sixlets                          30                         Pending          HFBV
                     Whoppers                         30        79/6922          May 14 1982      HFBV
                     Zero                             30                         Pending          HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------

MIDDLE EAST

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Brunei               Whoppers                                   9231
                     Jolly Rancher                    30        22339            Mar 20 1996      Leaf Group BV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Israel               Chuckles                         30        110848           Apr 05 1998      HFBV
                     Jolly Rancher                    30        110852           Apr 05 1998      HFBV
                     Payday                           30        110854           Apr 05 1998      HFBV
                     Sixlets                          30        110855           Apr 05 1998      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
<PAGE>

------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Kuwait               Good&Plenty & Device                       6763

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
OAPI                 Chuckles                         30                         Pending          HFBV
                     Good&Plenty                      30                         Pending          HFBV
                     Good'n Fruity                    30                         Pending          HFBV
                     Heath                            30                         Pending          HFBV
                     Jolly Rancher                    30                         Pending          HFBV
                     Milk Duds                        30                         Pending          HFBV
                     Payday                           30                         Pending          HFBV
                     Sixlets                          30                         Pending          HFBV
                     Whoppers                         30                         Pending          HFBV
                     Zero                             30                         Pending          HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Saudi Arabia         Chuckles                         30        435/82           May 23 1998      HFBV
                     Heath                            30        434/65           May 06 1998      HFBV
                     Jolly Rancher                    30        435/84           May 23 1998      HFBV
                     Milk Duds                        30        434/64           May 23 1998      HFBV
                     Payday                           30        435/87           May 23 1998      HFBV
                     Sixlets                          30        418/44           May 23 1998      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
United Arab          Chuckles                         30        18776            Mar 31 1997      HFBV
Emirates             Good&Plenty                      30        18774            Mar 31 1997      HFBV
                     Good'n Fruity                    30        18775            Mar 31 1997      HFBV
                     Heath                            30                         Pending          HFBV
                     Jolly Rancher                    30        18771            Mar 31 1997      HFBV
                     Milk Duds                        30        19898            Mar 31 1997      HFBV
                     Payday                           30                         Pending          HFBV
                     Sixlets                          30                         Pending          HFBV
                     Zero                             30        18773            Mar 31 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------

EUROPE

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Armenia              Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Austria              Good&Plenty & Design             30        79753            Apr 28 1975      HFBV
                     Jolly Rancher                    30        604681 (IR)      Jun 28 1993      HFBV
                     Payday                           30        676104 (IR)      Oct 10 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Azerbaidjan          Jolly Rancher                    30        604681 (IR)      Jan 23 1996      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Belarus              Chuckles                         30        676026 (IR)      Jun 12 1997      HFBV
                     Good&Plenty                      30        676595 (IR)      Jun 27 1997      HFBV
                     Good'n Fruity                    30        676597 (IR)      Jun 27 1997      HFBV
                     Heath                            30        676092 (IR)      Jun 12 1997      HFBV
                     Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV
                     Milk Duds                        30        676090 (IR)      Jun 12 1997      HFBV
                     Payday                           30        676104 (IR)      Jun 12 1997      HFBV
                     Sixlets                          30        676096 (IR)      Jun 12 1997      HFBV
                     Whoppers                         30        676028 (IR)      Jun 12 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
<PAGE>

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Belgium              Chuckles                         30        602309 (Ben.)    Dec 30 1996      HFBV
                     Good&Plenty                      30        604102 (Ben.)    Dec 30 1996      HFBV
                     Good'n Fruity                    30        604101 (Ben.)    Dec 30 1996      HFBV
                     Heath                            30        603508 (Ben.)    Dec 30 1996      HFBV
                     Jolly Rancher                    30        527821 (Ben.)    Feb 19 1993      HFBV
                     Jolly Rancher & Device           30        572958 (Ben.)    May 29 1995      HFBV
                     Milk Duds                        30        603507 (Ben.)    Dec 30 1996      HFBV
                     Payday                           30        603511 (Ben.)    Dec 30 1996      HFBV
                     Sixlets                          30        603510 (Ben.)    Dec 30 1996      HFBV
                     Whoppers                         30        602311 (Ben.)    Dec 30 1996      HFBV
                     Whoppers                         30        090664 (Ben.)    Dec 15 1971      Leaf Limited

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Bosnia               Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV
Herzegovina

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Bulgaria             Chuckles                         30        676026 (IR)      Jun 12 1997      HFBV
                     Good&Plenty                      30        676595 (IR)      Jun 27 1997      HFBV
                     Good'n Fruity                    30        676597 (IR)      Jun 27 1997      HFBV
                     Heath                            30        676092 (IR)      Jun 12 1997      HFBV
                     Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV
                     Milk Duds                        30        676090 (IR)      Jun 12 1997      HFBV
                     Payday                           30        676104 (IR)      Jun 12 1997      HFBV
                     Sixlets                          30        676096 (IR)      Jun 12 1997      HFBV
                     Whoppers                         30        676028 (IR)      Jun 12 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Croatia              Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Czech Republic       Chuckles                         30        676026 (IR)      Jun 12 1997      HFBV
                     Good&Plenty                      30        676595 (IR)      Jun 27 1997      HFBV
                     Good'n Fruity                    30        676597 (IR)      Jun 27 1997      HFBV
                     Heath                            30        676092 (IR)      Jun 12 1997      HFBV
                     Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV
                     Milk Duds                        30        676090 (IR)      Jun 12 1997      HFBV
                     Payday                           30        676104 (IR)      Jun 12 1997      HFBV
                     Sixlets                          30        676096 (IR)      Jun 12 1997      HFBV
                     Whoppers                         30        676028 (IR)      Jun 12 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Denmark              Good&Plenty & Design                       163275
                     Milk Duds                                  06.371/1989
                     Whoppers                                   341/81
                     Jolly Rancher                    30        7592/94          Nov 11 1994      Leaf Group BV
                     Jolly Rancher                    30        5096/95          Jul 28 1995      Leaf Group BV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Estonia              Milk Duds                        30        24140            Aug 22 1997      HFBV
                     Jolly Rancher                    30        22896            Mar 21 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Finland              Milk Duds                        30        106549           Feb 20 1990      HFBV
                     Jolly Rancher                    30        134712           Nov 21 1994      HFBV
                     Jolly Rancher & Device           30        204418           Feb 14 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
<PAGE>

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
France               Chuckles                         30        1745551          Jan 10 1991      HFBV
                     Good&Plenty & Design             30        1283320          Sep 05 1984      HFBV
                     Whoppers                         30        1513721          Feb 09 1989      HFBV
                     Whoppers                         30        1502771          Dec 09 1988      Leaf Limited
                     Jolly Rancher                    30        604681 (IR)      Jun 28 1993      HFBV
                     Payday                           30        676104 (IR)      Oct 10 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Germany              Chuckles                         30        936700           Oct 17 1975      HFBV
                     Jolly Rancher                    30        604681 (IR)      Jun 28 1993      HFBV
                     Payday                           30        676104 (IR)      Oct 10 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Hungary              Chuckles                         30        676026 (IR)      Jun 12 1997      HFBV
                     Good&Plenty                      30        676595 (IR)      Jun 27 1997      HFBV
                     Good'n Fruity                    30        676597 (IR)      Jun 27 1997      HFBV
                     Heath                            30        676092 (IR)      Jun 12 1997      HFBV
                     Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV
                     Milk Duds                        30        676090 (IR)      Jun 12 1997      HFBV
                     Payday                           30        676104 (IR)      Jun 12 1997      HFBV
                     Sixlets                          30        676096 (IR)      Jun 12 1997      HFBV
                     Whoppers                         30        676028 (IR)      Jun 12 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Georgia              Jolly Rancher                    30        4543             Feb 06 1997      Leaf Group BV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Greece               Good&Plenty & Device                       53147
                     Jolly Rancher                    30        113776           Dec 19 1995      Leaf Group BV
                     Jolly Rancher & Device           30        125254           Dec 17 1997      Leaf Group BV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Ireland              Jolly Rancher                    30        160666           Mar 16 1993      HFBV
                     Jolly Rancher & Device           30        172858           Jun 01 1995      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Italy                Good&Plenty & Device             30        311509           Sep 23 1974      HFBV
                     Jolly Rancher                    30        604681 (IR)      Jun 28 1993      HFBV
                     Payday                           30        676104 (IR)      Oct 10 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Kazakstan            Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Kyrgyzstan           Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Latvia               Milk Duds                        30        M-38574          Oct 20 1997      HFBV
                     Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Lithuania            Jolly Rancher                    30                         Pending          HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Luxembourg           Chuckles                         30        602309 (Ben.)    Dec 30 1996      HFBV
                     Good&Plenty                      30        604102 (Ben.)    Dec 30 1996      HFBV
                     Good'n Fruity                    30        604101 (Ben.)    Dec 30 1996      HFBV
                     Heath                            30        603508 (Ben.)    Dec 30 1996      HFBV
                     Jolly Rancher                    30        527821 (Ben.)    Feb 19 1993      HFBV
<PAGE>

                     Jolly Rancher & Device           30        527958 (Ben.)    May 29 1995      HFBV
                     Milk Duds                        30        603507 (Ben.)    Dec 30 1996      HFBV
                     Payday                           30        603511 (Ben.)    Dec 30 1996      HFBV
                     Sixlets                          30        603510 (Ben.)    Dec 30 1996      HFBV
                     Whoppers                         30        602311 (Ben.)    Dec 30 1996      HFBV
                     Whoppers                         30        090664 (Ben.)    Dec 15 1971      Leaf Limited

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Macedonia            Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Moldova              Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Netherlands          Chuckles                         30        602309 (Ben.)    Dec 30 1996      HFBV
                     Good&Plenty                      30        604102 (Ben.)    Dec 30 1996      HFBV
                     Good'n Fruity                    30        604101 (Ben.)    Dec 30 1996      HFBV
                     Heath                            30        603508 (Ben.)    Dec 30 1996      HFBV
                     Jolly Rancher                    30        527821 (Ben.)    Feb 19 1993      HFBV
                     Jolly Rancher & Device           30        572958 (Ben.)    May 29 1995      HFBV
                     Milk Duds                        30        603507 (Ben.)    Dec 30 1996      HFBV
                     Payday                           30        603511 (Ben.)    Dec 30 1996      HFBV
                     Sixlets                          30        603510 (Ben.)    Dec 30 1996      HFBV
                     Whoppers                         30        602311 (Ben.)    Dec 30 1996      HFBV
                     Whoppers                         30        090664 (Ben.)    Dec 15 1971      Leaf Limited

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Norway               Good&Plenty & Device             30        187906           Jan 08 1998      HFBV
                     Good&Plenty & Design             30        100993           Sep 19 1978      HFBV
                     Milk Duds                        30        135511           Feb 16 1989      HFBV
                     Chuckles                         30        187466           Dec 18 1997      HFBV
                     Good'n Fruity                    30        187905           Jan 08 1998      HFBV
                     Heath                            30        186170           Nov 20 1997      HFBV
                     Jolly Rancher                    30        164637           Sep 22 1994      HFBV
                     Jolly Rancher & Device           30        172892           May 02 1996      HFBV
                     Payday                           30        186709           Nov 20 1997      HFBV
                     Sixlets                          30        186708           Nov 20 1997      HFBV
                     Whoppers                         30        187467           Dec 18 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Poland               Milk Duds                        30        105888           Nov 30 1995      HFBV
                     Milk Duds                        30        676090 (IR)      Jun 12 1997      HFBV
                     Chuckles                         30        676026 (IR)      Jun 12 1997      HFBV
                     Good&Plenty                      30        676595 (IR)      Jun 27 1997      HFBV
                     Good'n Fruity                    30        676597 (IR)      Jun 27 1997      HFBV
                     Heath                            30        676092 (IR)      Jun 12 1997      HFBV
                     Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV
                     Payday                           30        676104 (IR)      Jun 12 1997      HFBV
                     Sixlets                          30        676096 (IR)      Jun 12 1997      HFBV
                     Whoppers                         30        676028 (IR)      Jun 12 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Portugal             Jolly Rancher                    30        604681 (IR)      Jun 28 1993      HFBV
                     Payday                           30        676104 (IR)      Oct 10 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Romania              Chuckles                         30        676026 (IR)      Jun 12 1997      HFBV
                     Good&Plenty                      30        676595 (IR)      Jun 27 1997      HFBV
<PAGE>

                     Good'n Fruity                    30        676597 (IR)      Jun 27 1997      HFBV
                     Heath                            30        676092 (IR)      Jun 12 1997      HFBV
                     Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV
                     Milk Duds                        30        676090 (IR)      Jun 12 1997      HFBV
                     Payday                           30        676104 (IR)      Jun 12 1997      HFBV
                     Sixlets                          30        676096 (IR)      Jun 12 1997      HFBV
                     Whoppers                         30        676028 (IR)      Jun 12 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Russia               Milk Duds                                  151489           Apr 10 1997      Leaf, Inc.
                     Milk Duds                                  676090 (IR)      Jun 12 1997      HFBV
                     Milk Duds                        30        151488           Apr 10 1997      Leaf, Inc.
                     (Cyrillic)
                     Chuckles                         30        676026 (IR)      Jun 12 1997      HFBV
                     Good&Plenty                      30        676595 (IR)      Jun 27 1997      HFBV
                     Good'n Fruity                    30        676597 (IR)      Jun 27 1997      HFBV
                     Heath                            30        676092 (IR)      Jun 12 1997      HFBV
                     Jolly Rancher                    30        604681 (IR)      Jun 12 1997      HFBV
                     Payday                           30        676104 (IR)      Jun 12 1997      HFBV
                     Sixlets                          30        676096 (IR)      Jun 12 1997      HFBV
                     Whoppers                         30        676028 (IR)      Jun 12 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Slovak Rep.          Chuckles                         30        676026 (IR)      Jun 12 1997      HFBV
                     Good&Plenty                      30        676595 (IR)      Jun 27 1997      HFBV
                     Good'n Fruity                    30        676597 (IR)      Jun 27 1997      HFBV
                     Heath                            30        676092 (IR)      Jun 12 1997      HFBV
                     Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV
                     Milk Duds                        30        676090 (IR)      Jun 12 1997      HFBV
                     Payday                           30        676104 (IR)      Jun 12 1997      HFBV
                     Sixlets                          30        676096 (IR)      Jun 12 1997      HFBV
                     Whoppers                         30        676028 (IR)      Jun 12 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Slovenia             Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Spain                Good'n Fruity                    30        811791           Jul 06 1977      HFBV
                     Jolly Rancher                    30        604681 (IR)      Jun 28 1993      HFBV
                     Payday                           30        676104 (IR)      Oct 10 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Sweden               Good&Plenty & Device                       151584
                     Milk Duds                        30        215404           Jan 05 1990      HFBV
                     Jolly Rancher                    30        262286           Dec 02 1994      Leaf Group BV
                     Jolly Rancher & Device           30        312192           Apr 26 1996      Leaf Group BV
                     Payday                           30                         Pending          HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Switzerland          Good &Plenty                     30        676595 (IR)      Jun 27 1997      HFBV
                     Good&Plenty & Device             30        404629           Jan 21 1993      HFBV
                     Chuckles                         30        676026 (IR)      Jun 12 1997      HFBV
                     Good'n Fruity                    30        676597 (IR)      Jun 27 1997      HFBV
                     Heath                            30        676092 (IR)      Jun 12 1997      HFBV
                     Jolly Rancher                    30        604681 (IR)      Jun 28 1993      HFBV
                     Milk Duds                        30        676090 (IR)      Jun 12 1997      HFBV
<PAGE>

                     Payday                           30        676104 (IR)      Jun 12 1997      HFBV
                     Sixlets                          30        676096 (IR)      Jun 12 1997      HFBV
                     Whoppers                         30        676028 (IR)      Jun 12 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Tajikistan           Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Turkey               Chuckles                         30                         Pending          HFBV
                     Good&Plenty                      30                         Pending          HFBV
                     Good'n Fruity                    30                         Pending          HFBV
                     Heath                            30                         Pending          HFBV
                     Milk Duds                        30                         Pending          HFBV
                     Payday                           30                         Pending          HFBV
                     Sixlets                          30        184150           Apr 30 1997      HFBV
                     Whoppers                         30                         Pending          HFBV
                     Zero                             30                         Pending          HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Turkmenistan         Jolly Rancher                    30                         Pending          Leaf Group BV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Ukraine              Chuckles                         30        676026 (IR)      Jun 12 1997      HFBV
                     Good&Plenty                      30        676595 (IR)      Jun 27 1997      HFBV
                     Good'n Fruity                    30        676597 (IR)      Jun 27 1997      HFBV
                     Heath                            30        676092 (IR)      Jun 12 1997      HFBV
                     Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV
                     Milk Duds                        30        676090 (IR)      Jun 12 1997      HFBV
                     Payday                           30        676104 (IR)      Jun 12 1997      HFBV
                     Sixlets                          30        676096 (IR)      Jun 12 1997      HFBV
                     Whoppers                         30        676028 (IR)      Jun 12 1997

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
United Kingdom       Milk Duds                        30        881111           Jun 23 1965      Leaf, Inc.
                     Jolly Rancher                    30        1508985          Aug 06 1992      Leaf Group BV
                     Jolly Rancher & Device           30        2022662          Jun 01 1995      HFBV
                     Jolly Rancher                    30        2055901          Apr 22 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Uzbekistan           Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Yugoslavia           Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------

ASIA

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Cambodia             Jolly Rancher                    30        6832             Feb 06 1996      Leaf Group BV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
China                Whoppers                         30        293139           Jul 20 1987      HFBV
                     Chuckles                         30        676026 (IR)      Jun 12 1997      HFBV
                     Good&Plenty                      30        676595 (IR)      Jun 27 1997      HFBV
                     Good'n Fruity                    30        676597 (IR)      Jun 27 1997      HFBV
                     Heath                            30        676092 (IR)      Jun 12 1997      HFBV
                     Jolly Rancher                    30        604681 (IR)      Jan 23 1996      HFBV
                     Milk Duds                        30        676090 (IR)      Jun 12 1997      HFBV
                     Payday                           30        676104 (IR)      Jun 12 1997      HFBV
<PAGE>

                     Sixlets                          30        676096 (IR)      Jun 12 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Hong Kong            Chuckles                         30        1726/1998        Apr 14 1997      HFBV
                     Good&Plenty                      30        B10737/1998      Apr 14 1997      HFBV
                     Good'n Fruity                    30        B10008/1998      Apr 16 1997      HFBV
                     Heath                            30        1731/1998        Apr 14 1997      HFBV
                     Jolly Rancher                    30        7511/1997        Dec 20 1995      HFBV
                     Milk Duds                        30        7276/1998        Jul 21 1998      HFBV
                     Payday                           30        1729/1998        Apr 14 1997      HFBV
                     Sixlets                          30        1728/1998        Apr 14 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
India                Jolly Rancher                    30                         Pending          Leaf Group BV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Indonesia            Good&Plenty                      30        412702           May 28 1997      HFBV
                     Heath                            30        408121           Dec 12 1997      HFBV
                     Jolly Rancher                    30        382142           Jan 11 1996      Leaf Group BV
                     Milk Duds                        30        408122           Dec 12 1997      HFBV
                     Payday                           30        408123           Dec 12 1997      HFBV
                     Whoppers                         30        412704           May 28 1997      HFBV
                     Zero                             30        408127           Dec 12 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Japan                Heath  (Japanese)                30        2257870          Aug 30 1990      HFBV
                     Heath (English)                  30        2257869          Aug 30 1990      HFBV
                     Jolly Rancher                    30        4069590          Oct 17 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Laos                 Jolly Rancher                    30        4498             May 28 1996      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Macao                Jolly Rancher                    30        21               Jun 13 1996      Leaf Group BV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Malaysia             Whoppers                                   MA/733/91
                     Jolly Rancher                    30                         Pending          Leaf Group BV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Mongolia             Jolly Rancher                    30        604681 (IR)      Sep 05 1995      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Nepal                Jolly Rancher                    30        11409/052        Mar 01 1996      Leaf Group BV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Pakistan             Jolly Rancher                    30                         Pending          Leaf Group BV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Philippines          Good&Plenty                      30                         Pending          HFBV
                     Good'n Fruity                    30                         Pending          HFBV
                     Heath                                                       Pending
                     Jolly Rancher                    30                         Pending          HFBV
                     Milk Duds                        30                         Pending          HFBV
                     Payday                           30                         Pending          HFBV
                     Sixlets                          30                         Pending          HFBV
                     Whoppers                         30                         Pending          HFBV
                     Zero                             30                         Pending          HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Sarawak              Whoppers                                   19698

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
<PAGE>

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Singapore            Whoppers                                   80273
                     Chuckles                         30                         Pending          HFBV
                     Heath                            30        4562/97          Apr 17 1997      HFBV
                     Jolly Rancher                    30        467/96           Jan 15 1996      Leaf Group BV
                     Payday                           30                         Pending          HFBV
                     Zero                             30        4557/97          Apr 17 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Sri Lanka            Jolly Rancher                    30                         Pending          Leaf Group BV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
South Korea          Heath                            30        159844           Sep 23 1988      HFBV
                     Jolly Rancher                    30        360430           Apr 22 1997      Leaf Group BV
                     Sixlets                          30        421327           Sep 15 1998      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Thailand             Chuckles                         30        72687            Apr 09 1997      HFBV
                     Heath                            30        72688            Apr 09 1997      HFBV
                     Jolly Rancher                    30        60291            Jun 20 1996      Leaf Group BV
                     Payday                           30        332086           Apr 09 1997      HFBV
                     Zero                             30                         Pending          HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Taiwan               Chuckles                         30        789797           Dec 16 1997      HFBV
                     Heath                            30        789792           Dec 16 1997      HFBV
                     Jolly Rancher                    30        742157           Dec 16 1996      Leaf Group BV
                     Milk Duds                        30        796817           Feb 16 1998      HFBV
                     Payday                           30        789793           Dec 16 1997      HFBV
                     Sixlets                          30        789794           Dec 16 1997      HFBV
                     Zero                             30        806534           Jun 16 1998      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Vietnam              Chuckles                         30        676026 (IR)      Jun 12 1997      HFBV
                     Good&Plenty                      30        676595 (IR)      Jun 27 1997      HFBV
                     Good'n Fruity                    30        676597 (IR)      Jun 27 1997      HFBV
                     Heath                            30        676092 (IR)      Jun 12 1997      HFBV
                     Jolly Rancher                    30        604681 (IR)      Jan 23 1996      HFBV
                     Milk Duds                        30        676090 (IR)      Jun 12 1997      HFBV
                     Payday                           30        676104 (IR)      Jun 12 1997      HFBV
                     Sixlets                          30        676096 (IR)      Jun 12 1997      HFBV
                     Whoppers                         30        676028 (IR)      Jun 12 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------

OCEANIA

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
Australia            Chuckles                         30        246581           Mar 04 1971      HFBV
                     Heath                                      ?                Application      Leaf, Inc.
                     Jolly Rancher                    30        209273           Apr 06 1967      HFBV
                     Milk Duds                        30        209274           Apr 06 1967      HFBV
                     Good'n Fruity                    30        735247           May 23 1997      HFBV
                     Payday                           30        731171           Apr 02 1997      HFBV
                     Sixlets                          30        731169           Apr 02 1997      HFBV

-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
-------------------- -------------------------------- --------- ---------------- ---------------- -----------------
New Zealand          Chuckles                         30        010371           Mar 01 1971      HFBV
                     Jolly Rancher                    30        204847           Sep 18 1990      HFBV
                     Whoppers                         30        176082           Nov 20 1987      HFBV
<PAGE>

                     Good&Plenty                      30        274933           Aug 15 1997      HFBV
                     Good'n Fruity                    30        275456           Apr 15 1997      HFBV
                     Milk Duds                        30        273522           Mar 06 1997      HFBV
                     Payday                           30        273523           Mar 06 1997      HFBV
                     Sixlets                          30        273524           Mar 06 1997      HFBV

==================== ================================ ========= ================ ================ =================
</TABLE>

UNREGISTERED TRADEMARK
----------------------
CHOO CHOO CHARLIE AND DESIGN

COPYRIGHTS
----------
Kk 179,128 Issued 2/11/1964 Renewed 2/21/1992 Renewal #602 185
Title: Milk chocolate covered english toffee miniatures
Author: L.S. Heath & Sons, Inc.

Kk 3471 Issued 1/5/1941 Renewed 3/28/1968 Renewal #432 857
Title: Lable - Heath Toffee-Ettes
Author: Bayard E. Heath

No. 15988 Issued 9/1/1936 Renewed 9/4/1963 Renewal #322 471
Title: Heath English Toffee
Author: L.S. Heath & Sons, Inc.

VA 595 683 Issued 11/5/1993
Title: Good `N Fruity Candy Box Package
Author: Leaf, Inc.
Renewal Due: 11/5/2003

LIMITATIONS/LICENSE AGREEMENTS
------------------------------
[CONFIDENTIAL INFORMATION DELTED]

<PAGE>

                                                              SCHEDULE B-1

PATENT RIGHTS
-------------
1.       United States Patent Number 5,139,797
         Granted August 18, 1992
         Inventors: Robert Huzinec, Terry Schindeldecker

2.       United States Patent Application
         Serial Number 081543,422
         Applied for October 16, 1995
         Inventors: Dee Brown, Robert Huzinec, Tom Kearns, Mark Norton,
               Terry Schindeldecker

                                                              SCHEDULE B-2

UNPATENTED TECHNOLOGY AND KNOW HOW
----------------------------------
[CONFIDENTIAL INFORMATION DELETED]EXHIBIT 10.3

                            HERSHEY FOODS CORPORATION

                           KEY EMPLOYEE INCENTIVE PLAN
                     (Amended and Restated as of June 9, 1999)
1.
   ESTABLISHMENT AND PURPOSE

     Hershey Foods Corporation (the  "Corporation")  hereby  establishes the Key
     Employee Incentive Plan (the "Plan"). The purpose of the Plan is to provide
     to selected  key  employees of the  Corporation  and its  subsidiaries  (as
     defined  below),  upon whose efforts the  Corporation  is dependent for the
     successful  conduct of its  business,  further  incentive  to continue  and
     increase  their  efforts  as  employees  and to remain in the employ of the
     Corporation and its subsidiaries.

     The Plan  continues  the Annual  Incentive  Program  ("AIP"),  with certain
     modifications,  as in effect under the Corporation's  Management  Incentive
     Plan ("MIP")  established  in 1975 and as amended  thereafter,  pursuant to
     which participants are entitled to receive cash awards based on achievement
     of  performance  goals  during  annual  performance  cycles.  The Plan also
     continues the Long-Term  Incentive Program ("LTIP") portion of the MIP with
     certain modifications. In addition to performance stock units ("Performance
     Stock  Units"),  the LTIP  portion  now also  includes  nonqualified  stock
     options for the purchase of Common Stock  ("Options");  stock  appreciation
     rights ("SARs"); and restricted stock units ("Restricted Stock Units").

     As used  herein,  (i) the  term  "Subsidiary  Corporation"  shall  mean any
     present  or  future   corporation  which  is  or  would  be  a  "subsidiary
     corporation"  of the  Corporation as defined in Section 424 of the Internal
     Revenue Code of 1986 (the "Code"), and (ii) the term "Corporation"  defined
     above  shall  refer  collectively  to  Hershey  Foods  Corporation  and its
     Subsidiary Corporations unless the context indicates otherwise.

                                       1
<PAGE>

2.   STOCK SUBJECT TO THE PLAN

     The aggregate  number of shares which may be covered by  Performance  Stock
     Units,  Options,  SARs and Restricted  Stock Units granted  pursuant to the
     LTIP  portion  of  the  Plan  is  6.5  million  (6,500,000)  shares  of the
     Corporation's  Common Stock, $1.00 Par Value (the "Common Stock"),  subject
     to adjustment in accordance with Section 12 below.  The shares issued under
     this Plan may be either  authorized but unissued  shares,  treasury  shares
     held by the  Corporation  or any direct or indirect  subsidiary  thereof or
     shares acquired by the Corporation  through open market purchases  (whether
     made before or after any  exercise of  Options(s)  or the granting of stock
     compensation hereunder) or otherwise. In addition to shares of Common Stock
     actually  issued or  distributed  under the Plan,  there shall be deemed to
     have been  issued a number of shares  equal to (i) the  number of shares of
     Common Stock in respect of which  optionees  utilize the manner of exercise
     of, and payment for,  Options as provided in Paragraph 7II(g) of this Plan,
     and (ii) the number of shares of Common Stock which is  equivalent in value
     to any cash amounts  distributed  upon payment of Performance  Stock Units,
     SARs or Restricted  Stock Units.  For purposes of determining the charge to
     be made pursuant to subpart (ii) against the shares of Common Stock subject
     to the Plan,  the value of a share of Common Stock shall be its Fair Market
     Value as  defined  in  Paragraph  4 when  awards  are made with  respect to
     Performance  Stock Units, upon exercise of SARs, and upon expiration of the
     applicable  restriction  period of Restricted  Stock Units.  Any shares
     subject under the Plan to Performance  Stock Units,  Options,  SARs or
     Restricted  Stock Units which, for any reason, expire or terminate or are
     forfeited or surrendered shall again be available for issuance under the
     Plan.

3.   ADMINISTRATION

     The  Plan  shall  be  administered  by  the   Compensation   and  Executive
     Organization  Committee  (the  "Committee"),  or any  successor  committee,
     appointed  by and  consisting  solely of members of the Board of  Directors
     (the  "Board")  of the  Corporation,  each  of  whom  qualifies  as  both a
     "nonemployee  director"  within the meaning of Rule 16b-3 or its  successor
     under  the  Securities  Exchange  Act of 1934 (the  "Exchange  Act") and an
     "outside  director"  within  the

                                       2
<PAGE>

     meaning of Section 162(m) of the Code.  Committee  members shall not be
     eligible to  participate  in the Plan. The Board may from time to time
     remove and appoint members of the  Committee  in  substitution  for, or in
     addition  to,  members previously appointed and may fill vacancies, however
     caused, in the Committee.  The Committee may adopt such rules and
     regulations as it deems useful in governing its affairs.  Any action of the
     Committee  with respect to the  administration  of the Plan  shall be taken
     by  majority  vote at a  Committee meeting or written consent of all
     Committee members.

     Subject to the terms and conditions of the Plan,  the Committee  shall have
     authority:  (i) to construe and interpret Plan  provisions;  (ii) to define
     the terms used in the Plan; (iii) to prescribe, amend and rescind rules and
     regulations  relating to the Plan; (iv) to select  particular  employees to
     participate in the Plan, (v) to determine the terms,  conditions,  form and
     amount of  grants,  distributions  or  payments  made to each  participant,
     including  conditions  upon  and  provisions  for  vesting,   exercise  and
     acceleration  of any  grants,  distributions  or  payments;  (vi)  upon the
     request of a participant in the Plan, to approve and determine the duration
     of leaves  of  absence  which may be  granted  to the  participant  without
     constituting  a termination  of his or her  employment  for purposes of the
     Plan; and (vii) to make all other determinations necessary or advisable for
     the  administration and operation of the Plan. The Committee shall have the
     right to impose varying terms and conditions  with respect to each grant or
     award. All determinations and  interpretations  made by the Committee shall
     be final,  binding and  conclusive on all  participants  and on their legal
     representatives and beneficiaries.

4.   FAIR MARKET VALUE

     As used in the Plan (unless a different  method of  calculation is required
     by  applicable  law, and except as otherwise  specifically  provided in any
     Plan  provision),  "Fair Market  Value" on or as of any date shall mean (i)
     the  closing  price of the Common  Stock as  reported in the New York Stock
     Exchange   Composite   Transactions   Report  (or  any  other  consolidated
     transactions reporting system which subsequently may replace such Composite
     Transactions   Report)  for  the  New  York  Stock  Exchange   trading  day
     immediately  preceding such date, or if there are

                                       3
<PAGE>

     no sales on such date, on the next preceding day on which there were sales,
     or (ii) in the event that the Common  Stock is no longer listed  for
     trading  on  the  New  York  Stock  Exchange,  an  amount determined in
     accordance with standards adopted by the Committee.

5.   ELIGIBILITY AND PARTICIPATION

     Key employees of the Corporation or of any of its Subsidiary  Corporations,
     including  officers and directors who are regular employees but not members
     of the Committee,  who in the opinion of the Committee are in a position to
     contribute   significantly  to  the  success  of  the  Corporation  or  any
     Subsidiary  Corporation,  division  or  operating  unit  thereof,  shall be
     eligible for selection to participate in the Plan. In making this selection
     and in  determining  the form  and  amount  of  grants,  distributions  and
     payments under the Plan,  the Committee  shall take into account the duties
     of the respective employees,  their present and potential  contributions to
     the success of the Corporation or any Subsidiary  Corporation,  division or
     operating  unit  thereof,  and such other factors as the Committee may deem
     relevant in  connection  with  accomplishing  the purposes of the Plan.  An
     employee  who  has  been  selected  to  participate  may,  if he or  she is
     otherwise eligible,  receive more than one grant from time to time, and may
     be granted any  combination  of  contingent  target grants under the AIP or
     under the LTIP components of the Plan, as the Committee shall determine.

6.   ANNUAL INCENTIVE PROGRAM

     The Committee may from time to time,  subject to the provisions of the Plan
     and such  other  terms  and  conditions  as the  Committee  may  determine,
     establish  contingent target grants for those eligible employees it selects
     to participate in the AIP. Each such contingent  grant may be, but need not
     be, evidenced by a written instrument,  and shall be determined in relation
     to the  participant's  level of  responsibility  in the Corporation and the
     competitive  compensation  practices  of other major  businesses,  and such
     other factors as are deemed appropriate by the Committee.

                                       4
<PAGE>

     (a) Awards actually earned by and paid to AIP  participants  ("AIP Awards")
         will be based  primarily upon  achievement of performance  goals over a
         one-year performance cycle as approved by the Committee.

     (b) The Committee, within the limits of the Plan, shall have full authority
         and  discretion  to  determine  the  time  or  times  of   establishing
         contingent  target  grants;  to select  from among those  eligible  the
         employees to receive  awards;  to review and certify the achievement of
         performance  goals;  to  designate  levels  of  awards  to be earned in
         relation to levels of achievement of performance  goals;  to adopt such
         financial  and  nonfinancial  performance  or  other  criteria  for the
         payment  of  awards  as it may  determine  from  time to time;  to make
         awards;  and to  establish  such other  measures as may be necessary to
         achieve the  objectives  of the Plan.  The  financial or  non-financial
         performance goals established by the Committee may be based upon one or
         more of the following: earnings per share, return on net assets, market
         share,  control of costs, net sales,  cash flow,  economic  value-added
         measures, sales growth, earnings growth, stock price, return on equity,
         improvements in financial ratings,  regulatory compliance,  achievement
         of balance sheet or income statement objectives, or any other objective
         goals established by the Committee (the "Performance Factors").

     (c) Aggregate  annual AIP Awards  shall not exceed six (6%)  percent of the
         excess of Before-Tax  Income  (defined for these purposes as Net Income
         plus  provision for Federal,  state and local income taxes and interest
         expense on long-term debt, but after  consideration  of the cost of the
         cost of the Plan) over sixteen (16%) percent of Total Invested Capital
         (defined for these  purposes as  Stockholders'  Equity  plus  Long-Term
         Debt  plus Deferred Income Taxes) determined as the average of such
         Total Invested Capital  at the  beginning  of the  year  and the end of
         each  calendar quarter of such year. The maximum amount any participant
         can receive as an AIP Award for any calendar year shall not exceed
         $2,100,000.

     (d) AIP Awards as earned  under the terms of the Plan shall be paid in cash
         and may exceed or be less than the contingent  target grants,  provided
         that  payments  do not exceed  the

                                       5
<PAGE>

         maximum  permitted cost of the AIP calculated  pursuant to subparagraph
         (c) above.  Payment shall normally be made as soon as  possible
         following  the  close  of the  year,  but payment of all or any portion
         may be deferred by participants  with the approval of the Committee.

7.   LONG-TERM INCENTIVE PROGRAM

     The LTIP consists of the following four components:

     I.  PERFORMANCE STOCK UNITS

         The Committee may, subject to the provisions of the Plan and such other
         terms and conditions as the Committee may determine,  grant Performance
         Stock  Units  to  reflect  the  value  of   contingent   target  grants
         established for each eligible employee selected for participation. Each
         grant of Performance  Stock Units may be, but need not be, evidenced by
         a written instrument. Such contingent target grants shall be determined
         in  relation  to  the  employee's  level  of   responsibility   in  the
         Corporation or any Subsidiary  Corporation,  division or operating unit
         thereof,  and the  competitive  compensation  practices  of other major
         businesses.

         (a)  Awards actually earned by and paid to holders of Performance Stock
              Units ("PSU Awards") will be based upon achievement of performance
              goals over performance  cycles as approved by the Committee.  Such
              performance  cycles  each  shall  cover such  period of time,  not
              exceeding  five years,  as the  Committee  from time to time shall
              determine.

         (b)  The  Committee,  within  the  limits of the Plan,  shall have full
              authority  and  discretion  to  determine  the  time or  times  of
              establishing   contingent   target  grants  and  the  granting  of
              Performance  Stock Units;  to select from among those eligible the
              employees  to  receive  PSU  Awards;  to review  and  certify  the
              achievement of performance goals; to designate levels of awards to
              be earned in  relation  to levels of  achievement of

                                       6
<PAGE>

              performance goals;  to adopt such  financial and  nonfinancial
              performance or other  criteria for the payment of PSU Awards as it
              may  determine from time to time; to make awards; and to establish
              such other measures as may be necessary to the  objectives  of the
              Plan.  The performance goals established by the Committee may be
              based on one or more of the Performance Factors.

         (c)  Payments of PSU Awards  shall be made in shares of Common Stock or
              partly  in cash as the  Committee  in its  sole  discretion  shall
              determine and shall be charged against the shares  available under
              the LTIP portion of the Plan as provided in Paragraph 2; provided,
              however,  that no  fractional  shares shall be issued and any such
              fraction will be  eliminated  by rounding  downward to the nearest
              whole share. In any case in which actual payment of a PSU Award is
              deferred as  provided  below,  a charge  will be made  against the
              available shares for the number of shares equivalent to the dollar
              amount of the deferred PSU Award.

         (d)  PSU Awards as earned  under the terms of the Plan may exceed or be
              less than the contingent target grants.  Payment shall normally be
              made as soon as  possible  following  the close of the  year,  but
              payment of all or any portion may be deferred by participants with
              the approval of the Committee.

         (e) The maximum amount a participant  can receive as a PSU Award in any
             calendar year is $2,430,000.

     II. STOCK OPTIONS

         The Committee may, from time to time,  subject to the provisions of the
         Plan and such other terms and  conditions  as it may  determine,  grant
         nonqualified  Options  to  purchase  shares  of  Common  Stock  of  the
         Corporation  to employees  eligible to  participate  in the Plan.  Each
         grant of an Option shall be on such terms and conditions and be in such
         form as the  Committee  may from time to time  approve,  subject to the
         following:

                                       7
<PAGE>

         (a)  The exercise  price per share with respect to each Option shall be
              determined by the Committee in its sole discretion,  but shall not
              be less than 100% of the Fair Market  Value of the Common Stock as
              of the date of the grant of the Option.

         (b)  Options  granted  under  the Plan  shall be  exercisable,  in such
              installments  and for such  periods,  as shall be  provided by the
              Committee  at the  time of  granting,  but in no event  shall  any
              Option granted extend for a period in excess of ten years from the
              date of grant.

         (c)  The maximum  number of shares of Common  Stock  covered by Options
              granted to a  participant  for any calendar  year shall not exceed
              250,000.

         (d)  Among other  conditions  that may be imposed by the Committee,  if
              deemed  appropriate,  are  those  relating  to (i) the  period  or
              periods and the conditions of exercisability  of any Option;  (ii)
              the minimum  periods  during  which  grantees  of Options  must be
              employed, or must hold Options before they may be exercised; (iii)
              the minimum  periods  during which shares  acquired  upon exercise
              must be held  before  sale or transfer  shall be  permitted;  (iv)
              conditions  under  which such  Options or shares may be subject to
              forfeiture;  and (v) the  frequency  of exercise or the minimum or
              maximum number of shares that may be acquired at any one time.

         (e)  Exercise  of an Option  shall be by  written  notice  stating  the
              election  to  exercise  in the form and manner  determined  by the
              Committee.

         (f)  The  purchase  price upon  exercise of any Option shall be paid in
              full by making  payment  (i) in cash;  (ii) in whole or in part by
              the delivery of a certificate or  certificates of shares of Common
              Stock of the Corporation, valued at its then Fair Market Value; or
              (iii) by a combination of (i) and (ii).

         (g)  Notwithstanding  subparagraph  (e) above,  any  optionee  may make
              payment of the Option price through a simultaneous exercise of his
              or her Option and sale of the

                                       8
<PAGE>

              shares thereby acquired  pursuant to a brokerage  arrangement
              approved in advance by the Committee to assure its conformity with
              the terms and conditions of the Plan.

         (h)  The  Committee may require the  surrender of  outstanding  Options
              as a condition to the grant of new Options.

         (i)  Notwithstanding  any other  provision of the Plan or of any Option
              agreement  between  the  Corporation  and an  employee,  upon  the
              occurrence of a Change in Control, each outstanding Option held by
              a  participant  who  is an  employee  of  the  Corporation  or any
              Subsidiary  Corporation  or  who  retired  while  employed  by the
              Corporation  or any  Subsidiary  Corporation  shall  become  fully
              vested and  exercisable  notwithstanding  any vesting  schedule or
              installment schedule relating to the exercisability of such Option
              contained  in  the  applicable   Option   agreement  or  otherwise
              established at the time of grant of the Option.

         (j)  For purposes of this Plan, a "Change in Control" means:

              (1) Individuals  who, on June 8, 1999,  constitute  the Board (the
                  "Incumbent  Directors")  cease for any reason to constitute at
                  least a  majority  of the  Board,  provided  that  any  person
                  becoming a director subsequent to June 8, 1999, whose election
                  or nomination  for election was approved by a vote of at least
                  two-thirds  of the  Incumbent  Directors  then  on  the  Board
                  (either by specific vote or by approval of the proxy statement
                  of the  Corporation  in which such  person is named as nominee
                  for director,  without written  objection to such  nomination)
                  shall be an Incumbent  Director;  PROVIDED,  HOWEVER,  that no
                  individual initially elected or nominated as a director of the
                  Corporation  as a result of an actual or  threatened  election
                  contest (as  described in Rule 14a-11 under the Exchange  Act)
                  ("Election   Contest")   or   other   actual   or   threatened
                  solicitation  of  proxies or  consents  by or on behalf of any
                  person  (as such term is  defined  in  Section  3(a)(9) of the
                  Exchange  Act and as used in Section  13(d)(3) and 14(d)(2) of
                  the  Exchange  Act)  ("Person")  other than the Board  ("Proxy
                  Contest"),  including by

                                       9
<PAGE>

                  reason of any  agreement  intended to avoid or settle any
                  Election  Contest or Proxy Contest,  shall be  deemed  an
                  Incumbent  Director;   and  PROVIDED  FURTHER, HOWEVER,  that
                  a director who has been approved by the Hershey Trust while it
                  beneficially owns more than 50% of the combined  voting power
                  of the then outstanding  voting securities of the Corporation
                  entitled  to vote  generally  in the  election of directors
                  (the "Outstanding Corporation  Voting Power") shall
                   be deemed to be an Incumbent Director; or

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

              (3) The approval by the  stockholders  of the  Corporation  of any
                  merger,  reorganization,  recapitalization,  consolidation  or
                  other form of business combination (a "Business  Combination")
                  if, following  consummation of such

                                       10
<PAGE>

                  Business Combination, the Hershey Trust does not  beneficially
                  own more than 50% of the total  voting  power  of  all
                  outstanding  voting  securities eligible to elect  directors
                  of (x) the  surviving  entity or entities (the "Surviving
                  Corporation")  or (y) if applicable, the ultimate  parent
                  corporation  that directly or indirectly has  beneficial
                  ownership  of more  than 50% of the  combined voting  power of
                  the  then  outstanding   voting  securities eligible to elect
                  directors of the Surviving Corporation; or

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

         For purposes of this Plan,  "Hershey Trust" means either or both of (a)
         the Hershey Trust Company, a Pennsylvania  corporation,  as Trustee for
         the Milton  Hershey  School,  or any  successor  to the  Hershey  Trust
         Company  as  such  trustee,  and  (b)  the  Milton  Hershey  School,  a
         Pennsylvania not-for-profit corporation.

         (k)  For purposes of this Plan, a "Potential Change in Control" means:

              (1) The Hershey  Trust by action of any of the Board of  Directors
                  of Hershey  Trust  Company;  the Board of  Managers  of Milton
                  Hershey School; the Investment Committee of the Hershey Trust;
                  and/or any of the officers of Hershey  Trust Company or Milton
                  Hershey    School   (acting   with    authority)    undertakes
                  consideration  of any action the taking of which would lead to

                                       11
<PAGE>

                  a Change in  Control  as defined  herein,  including,  but not
                  limited to  consideration  of (i) an offer made to the Hershey
                  Trust to purchase any number of its shares in the  Corporation
                  such that if the Hershey  Trust  accepted  such offer and sold
                  such number of shares in the  Corporation  the  Hershey  Trust
                  might  no  longer  have  more  than  50%  of  the  Outstanding
                  Corporation  Voting  Power,  (ii) an  offering  by the Hershey
                  Trust of any number of its shares in the  Corporation for sale
                  such that if such  sale were  consummated  the  Hershey  Trust
                  might  no  longer  have  more  than  50%  of  the  Outstanding
                  Corporation  Voting Power or (iii) entering into any agreement
                  or understanding  with a person or entity that would lead to a
                  Change in Control; or

              (2) The Board approves a transaction  described in subsection (2),
                  (3) or (4) of the definition of a Change in Control  contained
                  in subparagraph (j) of Paragraph 7II hereof.

         (l)  In the event that a transaction which would constitute a Change in
              Control if approved by the  stockholders  of the Corporation is to
              be  submitted  to  such  stockholders  for  their  approval,  each
              participant  who is an  employee  and who holds an Option  granted
              under the Plan at the time  scheduled for the taking of such vote,
              whether or not then exercisable, shall have the right to receive a
              notice at least ten (10)  business days prior to the date on which
              such vote is to be taken.  Such notice shall set forth the date on
              which such vote of  stockholders  is to be taken, a description of
              the transaction  being proposed to stockholders for such approval,
              a description of the provisions of  subparagraph  (i) of Paragraph
              7II of the Plan and a  description  of the impact  thereof on such
              participant  in  the  event  that  such  stockholder  approval  is
              obtained. Such notice shall also set forth the manner in which and
              price at which all  Options  then  held by each  such  participant
              could  be  exercised  upon  the  obtaining  of  such   stockholder
              approval.

                                       12
<PAGE>

     III.STOCK APPRECIATION RIGHTS

         The Committee may, from time to time,  subject to the provisions of the
         Plan  and  such  other  terms  and  conditions  as  the  Committee  may
         determine, grant SARs to employees eligible to participate in the Plan.
         SARs may, but need not be  evidenced  by an  agreement  executed by
         the Corporation  and the  holder,  and shall be  subject  to such terms
         and conditions  consistent with the Plan as the Committee shall impose
         from time to time, including the following:

         (a)  SARs may, but need not,  relate to Options granted under the Plan,
              as the Committee  shall  determine  from time to time. In no event
              shall any SARs granted  extend for a period in excess of ten years
              from the date of grant.

         (b)  A holder shall  exercise his or her SARs by giving  written notice
              of  such  exercise  in  the  form  and  manner  determined  by the
              Committee, and the date upon which such written notice is received
              by the Corporation shall be the exercise date for the SARs.

         (c)  A holder of SARs shall be entitled to receive  upon  exercise  the
              excess of the Fair Market  Value of a share of Common Stock at the
              time of exercise over the Fair Market Value of a share at the time
              the SARs were  granted,  multiplied  by the number of shares  with
              respect to which the SARs relate.

         (d)  In the sole discretion of the Committee, the amount payable to the
              holder upon exercise of SARs may be paid either in Common Stock or
              in cash or in a combination  thereof. To the extent paid in Common
              Stock,  the value of the Common  Stock  that shall be  distributed
              shall be the Fair  Market  Value of a share of Common  Stock  upon
              exercise  of the  SARs  as  provided  in  Paragraph  2;  provided,
              however,  that no  fractional  shares shall be issued and any such
              fraction will be  eliminated  by rounding  downward to the nearest
              whole share.

                                       13
<PAGE>

         (e)  In the sole discretion of the Committee,  SARs related to specific
              Options may be exercisable only upon surrender of all or a portion
              of the related Option, or may be exercisable, in whole or in part,
              only at such times and to the extent  that the  related  Option is
              exercisable,  and the number of shares purchasable pursuant to the
              related  Option  may be  reduced  to the  extent of the  number of
              shares with respect to which the SARs are exercised.

         (f)  In lieu of  receiving  payment  at the time of  exercise  of SARs,
              payment of all or any portion  may be deferred by the  participant
              with the approval of the Committee.

         (g)  The maximum  number of SARs  granted to a  participant  during any
              calendar year shall not exceed 250,000.

     IV. RESTRICTED STOCK UNITS

         The Committee may, from time to time,  subject to the provisions of the
         Plan and such other terms and  conditions  as it may  determine,  grant
         Restricted  Stock Units to  employees  eligible to  participate  in the
         Plan.  Each  grant of  Restricted  Stock  Units may be, but need not be
         evidenced by a written instrument.  The grant of Restricted Stock Units
         shall state the number of Restricted  Stock Units covered by the grant,
         and shall contain such terms and  conditions and be in such form as the
         Committee may from time to time approve, subject to the following:

         (a)  Each Restricted Stock Unit shall be equivalent in value to a share
              of Common Stock.

         (b)  Vesting of each grant of Restricted  Stock Units shall require the
              holder  to  remain  in  the  employment  of the  Corporation  or a
              Subsidiary  Corporation  for a prescribed  period (a  "Restriction
              Period").  The Committee shall determine the Restriction Period or
              Periods which shall apply to the shares of Common Stock covered by
              each  grant  of  Restricted  Stock  Units.   Except  as  otherwise
              determined by the Committee and provided in the written instrument
              granting  the  Restricted  Stock  Units,  and except as  otherwise

                                       14
<PAGE>

              provided in Paragraph 8, all  Restricted  Stock Units granted to a
              participant under the Plan shall terminate upon termination of the
              participant's  employment  with the  Corporation or any Subsidiary
              Corporation  before the end of the  Restriction  Period or Periods
              applicable to such Restricted  Stock Units,  and in such event the
              holder  shall not be entitled to receive any payment  with respect
              to those  Restricted  Stock Units.  The Committee may also, in its
              sole  discretion,  establish  other terms and  conditions  for the
              vesting of Restricted Stock Units,  including conditioning vesting
              on the  achievement  of one or  more of the  Performance  Factors.
              Notwithstanding any other provisions of the Plan or of any written
              instrument  granting Ristricted Stock Units, upn the occurrence of
              a Change in Control as defined in  subparagraph  (j) of  Paragraph
              7II hereof,  all  restrictions on Ristricted Stock Units held by a
              participant   who  is  an  employee  of  the  Corporation  or  any
              Subsidiary Corporation shall lapse.

         (c)  Upon expiration of the Restriction Period or Periods applicable to
              each grant of Restricted  Stock Units,  the holder shall,  without
              payment on his part,  be entitled to receive  payment in an amount
              equal to the  aggregate  Fair Market Value of the shares of Common
              Stock covered by such grant upon such expiration. Such payment may
              be made in cash,  in shares of Common Stock equal to the number of
              Restricted Stock Units with respect to which such payment is made,
              or in any  combination  thereof,  as  the  Committee  in its  sole
              discretion shall  determine.  Any payment in cash shall reduce the
              number  of  shares of  Common  Stock  available  under the Plan as
              provided in Paragraph 2, to the extent of the number of Restricted
              Stock  Units to which  such  payment  relates.  Further  upon such
              expiration, the holder shall be entitled to receive a cash payment
              in an amount  equal to each cash  dividend the  Corporation  would
              have paid to such holder during the term of those Restricted Stock
              Units as if the  holder had been the owner of record of the shares
              of Common  Stock  covered by such  Restricted  Stock  Units on the
              record date for the payment of such dividend.

                                       15
<PAGE>

         (d)  In lieu of  receiving  payment  at the time of  expiration  of the
              Restriction  Period or Periods,  payment of all or any portion may
              be deferred by the participant with the approval of the Committee.

         (e)  The  maximum  number  of  shares  of  Common  Stock  as  to  which
              Restricted  Stock  Units may be granted to a  participant  for any
              calendar year shall not exceed 50,000.

8.   TERMINATION OF EMPLOYMENT

     Upon  termination of employment  with the  Corporation of any  participant,
     such  participant's  rights with respect to any  contingent  target  grants
     under the AIP, or any Performance Stock Units,  Options, SARs or Restricted
     Stock Units granted under the LTIP, shall be as follows:

     (a) In the event that the  participant  is  terminated or discharged by the
         Corporation  for any reason,  the  participant's  rights and  interests
         under the Plan shall  immediately  terminate upon notice of termination
         of employment. Upon the occurrence of a Potential Change in Control (as
         defined in  subparagraph  (k) of Paragraph 7II hereof) and for a period
         of one year thereafter,  and upon the occurrence of a Change in Control
         (as defined in subparagraph (j) of Paragraph 7II hereof), the following
         special  provisions and notice  requirements shall be applicable in the
         event of the termination of the employment of any  participant  holding
         an Option under the Plan:  (i) in no event may a notice of  termination
         of employment be issued to such a participant  unless at least ten (10)
         business  days  prior to the  effective  date of such  termination  the
         participant  is provided  with a written  notice of intent to terminate
         the participant's  employment which sets forth in reasonable detail the
         reason for such intent to terminate, the date on which such termination
         is to be effective, and a description of the participant's rights under
         this Plan and under the  agreements  granting  such  Option or Options,
         including  the fact that no such  Option  may be  exercised  after such
         termination  has become  effective and the manner,  extent and price at
         which all Options then held by such  participant may be exercised;  and
         (ii) such  notice of intent to  terminate  a  participant's  employment
         shall not be considered a "notice of  termination  of  employment"  for
         purposes of the first  sentence of this Paragraph 8 (a). This Paragraph

                                       16
<PAGE>

         8 (a) is  intended  only to  provide  for a  requirement  of  notice to
         terminate  upon the occurrence of the events set forth herein and shall
         not be construed to create an obligation  of continued  employment or a
         contract of  employment  in any manner or to otherwise  affect or limit
         the   Corporation's   ability  to  terminate  the   employment  of  any
         participant holding an Option under the Plan.

     (b) If a participant  terminates  employment  with the  Corporation  as the
         result,  in the sole judgment of the Committee,  of his or her becoming
         totally disabled (in which event termination will be deemed to occur on
         the date the Committee makes such  determination),  or if a participant
         should  die or (except  as to  Restricted  Stock  Units)  retire  while
         employed by the Corporation or any of its Subsidiary Corporations, then
         the  participant  or, as the case may be, the person or persons to whom
         the participant's  interest under the Plan shall pass by will or by the
         laws of  descent  and  distribution  (the  "Estate"),  shall  have  the
         following rights:

         (i)  the  grantee  of a  contingent  AIP grant or the  Estate  shall be
              entitled to receive payment of an AIP award as, and to the extent,
              determined by the Committee;

         (ii) if the holder of Performance  Stock Units shall have been employed
              for at least two-thirds of the related  performance cycle prior to
              the date of  termination  or  death,  then,  except  as  otherwise
              provided  in  the  written  instrument  (if  any)  evidencing  the
              Performance  Stock Units,  and subject to any further  adjustments
              the Committee may make in its absolute discretion, the participant
              or the Estate shall be entitled to receive  payment of a PSU Award
              upon the  expiration of the related  performance  cycle, provided
              that such award shall be  adjusted  by  multiplying  the
              amount thereof by a fraction,  the numerator of which shall be the
              number of full  and  partial  calendar  months  between  the  date
              of the beginning of each such performance cycle and  the  date  of
              termination  or death,  and the  denominator of which shall be the
              number of full and  partial  calendar  months from the date of the
              beginning  of  the  performance  cycle  to the  end  of  the  said
              performance cycle;

                                       17
<PAGE>

         (iii)except as otherwise  provided in the terms and  conditions  of the
              stock  option or SAR  grant,  the  holder or the  Estate  shall be
              entitled to exercise  (provided any vesting  requirement  has been
              satisfied  as of the date of  exercise)  any  Option  or SAR for a
              period of five years  (three  years in the case of options or SARs
              granted prior to 1997) from such date of death,  total  disability
              or  retirement,  or for such longer  period as the  Committee  may
              determine  in the case of  financial  hardship  or  other  unusual
              circumstances  (subject to the maximum exercise period for Options
              and  SARs  specified  in  Paragraph  7II(b)  and  7III(a)  hereof,
              respectively);

         (iv) except as otherwise provided in the written instrument  evidencing
              the Restricted Stock Units, upon death or termination due to total
              disability  the holder or the Estate  shall be entitled to receive
              payment in respect of the  Restricted  Stock Units,  provided that
              such Units shall be adjusted by multiplying  the amount thereof by
              a fraction, the numerator of which shall be the number of full and
              partial  calendar  months  between the date of grant of such Units
              and the date of death or termination, and the denominator of which
              shall be the number of full and partial  calendar  months from the
              date of the  grant  to the  end of the  Restriction  Period.  Upon
              retirement,  the  participant's  rights with respect to Restricted
              Stock Units shall immediately terminate.

     (c) In the  event of  resignation  by the  participant,  the  participant's
         rights and interests  under the Plan shall  immediately  terminate upon
         such resignation;  provided, however, that the Committee shall have the
         absolute  discretion  to review the  reasons and  circumstances  of the
         resignation  and to  determine  whether,  alternatively,  and  to  what
         extent,  if any,  the  participant  may  continue to hold any rights or
         interests under the Plan.

     (d) A transfer of a participant's  employment without an intervening period
         from the Corporation to a Subsidiary Corporation or vice versa, or from
         one  Subsidiary   Corporation  to  another,   shall  not  be  deemed  a
         termination of employment.

     (e) The  Committee  shall  be  authorized  to make all  determinations  and
         calculations required by this Paragraph 8, including any determinations

                                       18
<PAGE>

         necessary to establish the reason for  terminations  of employment  for
         purposes of the Plan, which  determinations  and calculations  shall be
         conclusive and binding on any affected participants and Estates.

9.   ADDITIONAL REQUIREMENTS

     No  Performance  Stock  Units,  Options,  SARs or  Restricted  Stock  Units
     (hereinafter collectively an "Interest") granted pursuant to the Plan shall
     be exercisable or realized in whole or in part, and the  Corporation  shall
     not be obligated  to sell,  distribute  or issue any shares  subject to any
     such Interest,  if such exercise and sale would,  in the opinion of counsel
     for the  Corporation,  violate the  Securities  Act of 1933, as amended (or
     other Federal or state statutes having similar requirements). Each Interest
     shall be subject to the further  requirement that, if at any time the Board
     of  Directors  shall  determine  in its  discretion  that  the  listing  or
     qualification  of the shares relating or subject to such Interest under any
     securities  exchange  requirements  or under  any  applicable  law,  or the
     consent or approval of any  governmental  regulatory  body, is necessary or
     desirable as a condition  of, or in connection  with,  the granting of such
     Interest or the distribution or issue of shares  thereunder,  such Interest
     may  not  be   exercised   in  whole  or  in  part  unless  such   listing,
     qualification,  consent or  approval  shall have been  effected or obtained
     free of any condition not acceptable to the Board of Directors.

     Interests may be subject to restrictions as to resale or other  disposition
     and to such other  provisions as may be  appropriate to comply with Federal
     and state securities laws and stock exchange requirements, and the exercise
     of any Interest or entitlement to payment thereunder may be contingent upon
     receipt  from the holder  (or any other  person  permitted  by this Plan to
     exercise  any  Interest  or  receive  any  distribution   hereunder)  of  a
     representation  that at the  time of such  exercise  it is his or her  then
     present  intention to acquire the shares being  distributed  for investment
     and not for resale.

10.  NONTRANSFERABILITY

     Unless  otherwise  approved  by  the  Committee,   contingent  AIP  grants,
     Performance Stock Units,  Options,  SARs and Restricted Stock Units granted
     under  the Plan to an  employee  shall

                                       19
<PAGE>

     be  nonassignable  and  shall not be transferable  by him or her  otherwise
     than by will or the laws of descent and distribution, and shall be
     exercisable, during the employee's lifetime, only by the employee or the
     employee's guardian or legal representative.

11.  DISCLAIMER OF RIGHTS

     No provision in the Plan or any contingent  target AIP grants,  Performance
     Stock Units,  Options,  SARs or Restricted  Stock Units granted pursuant to
     the Plan shall be construed to confer upon the  participant any right to be
     employed  by  the  Corporation  or by  any  Subsidiary  Corporation,  or to
     interfere in any way with the right and authority of the Corporation or any
     Subsidiary  Corporation  either to increase or decrease the compensation of
     the participant at any time, or to terminate any relationship of employment
     between  the  participant  and  the  Corporation  or any of its  Subsidiary
     Corporations.

     Participants  under the Plan shall have none of the rights of a stockholder
     of the  Corporation  with respect to shares  subject to  Performance  Stock
     Units, Options, SARs or Restricted Stock Units unless and until such shares
     have been issued to him or her.

12.  STOCK ADJUSTMENTS

     In the event that the shares of Common  Stock,  as  presently  constituted,
     shall be changed into or exchanged for a different number or kind of shares
     of stock or other  securities of the Corporation or of another  corporation
     (whether   by   reason   of   merger,   consolidation,    recapitalization,
     reclassification,  stock split, combination of shares or otherwise),  or if
     the number of such shares of Common  Stock shall be  increased  through the
     payment of a stock dividend, or a dividend on the shares of Common Stock of
     rights or warrants to purchase securities of the Corporation shall be made,
     then there shall be substituted  for or added to each share available under
     and  subject to the Plan as  provided  in  Paragraph  2 hereof,  and to the
     limitations set forth in Paragraphs 7II (c); 7III (g) and 7IV (e), and each
     share  theretofore  appropriated or thereafter  subject or which may become
     subject to Performance Stock Units, Options, SARs or Restricted Stock Units
     under the Plan, the number and kind of shares of stock or other  securities

                                       20
<PAGE>

     into which each  outstanding  share of Common  Stock shall be so changed or
     for which each such share  shall be  exchanged  or to which each such share
     shall be entitled,  as the case may be.  Outstanding  Options and SARs also
     shall be  appropriately  amended  as to  price  and  other  terms as may be
     necessary to reflect the foregoing  events. In the event there shall be any
     other  change  in the  number or kind of the  outstanding  shares of Common
     Stock,  or of any stock or other  securities  into which the  Common  Stock
     shall have been changed or for which it shall have been exchanged,  then if
     the Board of Directors shall, in its sole  discretion,  determine that such
     change  equitably  requires an adjustment in the shares available under and
     subject to the Plan, or in any Performance  Stock Units,  Options,  SARs or
     Restricted  Stock Units  theretofore  granted or which may be granted under
     the  Plan,  such  adjustments   shall  be  made  in  accordance  with  such
     determination.

     No fractional  shares of Common Stock or units of other securities shall be
     issued pursuant to any such  adjustment,  and any fractions  resulting from
     any such adjustment  shall be eliminated in each case by rounding  downward
     to the nearest whole share or unit.

13.  TAXES

     The  Corporation  shall be  entitled  to  withhold  the  amount  of any tax
     attributable to any amounts  payable or shares of Common Stock  deliverable
     under the Plan. The person  entitled to any such  delivery,  whether due to
     the settlement of PSUs, the exercise of an Option or SAR, or the vesting of
     Restricted  Stock Units,  or any other  taxable event may, by notice to the
     Corporation, elect to have such withholding satisfied by a reduction of the
     number of shares otherwise so deliverable (a "Stock Withholding Election"),
     or by delivery of shares of Stock  already owned by the  Participant,  with
     the amount of shares subject to such reduction or delivery to be calculated
     based on the Fair Market Value on the date of such taxable event. Reporting
     Persons may make a Stock  Withholding  Election only in accordance with the
     methods then permitted under applicable  Securities and Exchange Commission
     interpretations.

                                       21
<PAGE>

14.  EFFECTIVE DATE AND TERMINATION OF PLAN

     The Plan shall become  effective upon adoption by the Board of Directors of
     the  Corporation,  provided such adoption is approved by the  stockholders,
     within  twelve  months of  adoption by the Board of  Directors.  Contingent
     target AIP grants,  Performance Stock Units,  Options,  SARs and Restricted
     Stock Units  under this Plan,  granted  before  approval of the Plan by the
     stockholders,  shall be granted  subject to such  approval and shall not be
     exercisable or payable before such approval.

     The  Board of  Directors  at any  time may  terminate  the  Plan,  but such
     termination  shall  not alter or impair  any of the  rights or  obligations
     under any contingent target AIP grants,  Performance Stock Units,  Options,
     SARs or Restricted  Stock Units  theretofore  granted under the Plan unless
     the affected participant shall so consent.

15.  PRIOR PLAN

     Effective  upon the  adoption  of this Plan by the Board of  Directors,  no
     additional  grants  of  contingent  target  grants  under  the  AIP  or  of
     Performance  Stock  Units shall be made under the MIP;  provided,  that any
     payments  of AIP awards or  deferrals  thereof  made with  respect to prior
     grants of contingent  AIP awards,  any prior grants of any LTIP Units,  and
     any payments of LTIP awards or deferrals  thereto made with respect to such
     prior grants, shall not be affected.  Notwithstanding the foregoing, to the
     extent the remaining  shares reserved for use under the LTIP portion of the
     MIP are  insufficient  for any LTIP awards  under  performance  cycles that
     began  prior to January 1, 1987,  shares  available  under this Plan may be
     used for such purpose.

16.  APPLICATION OF FUNDS

     The proceeds  received by the  Corporation  from the sale of capital  stock
     pursuant to Options will be used for general corporate purposes.

                                       22
<PAGE>

17.  NO OBLIGATION TO EXERCISE OPTION OR SAR

     The  granting  of an  Option or SAR shall  impose  no  obligation  upon the
     optionee to exercise such Option or SAR.

18.  AMENDMENT

     The Board of Directors by majority vote, at any time and from time to time,
     may amend the Plan in such respects as it shall deem advisable,  to conform
     to  any   change  in  any   applicable   law  or  in  any  other   respect.
     Notwithstanding the foregoing, the Plan may not be terminated or amended in
     a manner adverse to the interests of any  participant  (without the consent
     of the participant)  either: (a) after a Potential Change in Control occurs
     and for one (1) year  following  the  cessation  of a  Potential  Change in
     Control,  or (b) for a two-year period beginning as of the date of a Change
     in Control (the  "Coverage  Period").  Upon the  expiration of the Coverage
     Period,  subparagraph  (l) of Paragraph 7II of the Plan and Paragraph 8 (a)
     of the Plan may not be amended in any manner  that would  adversely  affect
     any participant without the consent of the participant.

                                       23

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