This excerpt taken from the HSY DEF 14A filed Mar 10, 2008.
Payments Made Relating to Individual Agreements
On November 16, 2007, we announced that Marcella K. Arline, Senior Vice President, Chief People Officer, intended to retire at the end of 2007. Ms. Arline first considered retirement under the Companys 2005 Early Retirement Program (ERP), but was asked at that time by the Chair of the Committee to stay on with the Company. The Chair of the Committee informed Ms. Arline that if she did not retire under the ERP, the Committee would consider providing benefits to her in addition to those to which she would be entitled under the applicable benefit plans upon her
actual retirement to compensate her for foregone benefits under the ERP. Ms. Arline elected not to retire at that time. Prior to a meeting of the Committee on October 1, 2007, Ms. Arline informed the Committee Chair that she was again considering retirement. At that meeting, the Committee considered, and ultimately decided to provide the additional benefits to Ms. Arline should she elect to retire at the end of 2007. A Retirement Agreement and General Release, providing for the payment in a lump sum of $983,121 to approximate the additional benefits she would have received had she retired under the ERP, was prepared and given to Ms. Arline to execute if and when she made a final retirement decision. Ms. Arline indicated her intention to retire by signing and delivering the agreement to the Company on November 11, 2007.
On November 30, 2007, we announced that Thomas K. Hernquist, Senior Vice President, Global Chief Growth Officer, resigned from the Company. Mr. Hernquists tenure as an elected officer of the Company ended on December 4, 2007, and his last day of active employment was December 31, 2007. In connection with his resignation, Mr. Hernquist entered into a Confidential Agreement and General Release pursuant to which he will receive benefits under the Companys EBPP and provide, through December 31, 2008, certain consultation and transition assistance if and as reasonably requested by the Company. The agreement also contains covenants regarding confidentiality and non-competition. Per the terms of the EBPP, Mr. Hernquist received a lump sum payment in the amount of $840,000.