HSY » Topics » BY SIGNING BELOW, YOU CERTIFY THAT YOU HAVE READ THIS AGREEMENT, THAT YOU KNOW AND UNDERSTAND THE MEANING AND INTENT OF THIS AGREEMENT AND THAT YOU ARE ENTERING THIS AGREEMENT KNOWINGLY AND VOLUNTARILY.

This excerpt taken from the HSY 10-K filed Feb 19, 2008.

BY SIGNING BELOW, YOU CERTIFY THAT YOU HAVE READ THIS AGREEMENT, THAT YOU KNOW AND UNDERSTAND THE MEANING AND INTENT OF THIS AGREEMENT AND THAT YOU ARE ENTERING THIS AGREEMENT KNOWINGLY AND VOLUNTARILY.

 

EMPLOYEE     THE HERSHEY COMPANY
By:   /s/ Thomas K. Hernquist     By:   /s/ Burton H. Snyder
  Thomas K. Hernquist      
Date:   November 29, 2007     Date:   November 29, 2007

 

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EXHIBIT A

 

Thomas K. Hernquist

Lump sum payment

  

Lump sum payment of 2 times current base salary ($840,000)

 

Unused 2007 vacation, if any (no payment for carry-over vacation from prior years, and vacation for subsequent years does not accrue)

 

•        Will be paid with first payroll period of 2008

Status

  

•        Cease to be an officer of the Company December 4, 2007

•        Termination of employment and separation from service as defined under Section 409A occurs on December 31, 2007

•        Available for consultation to ensure smooth transition January 1, 2008 through December 31, 2008

•        Unpaid leave of absence January 1, 2008 through December 31, 2009

AIP

  

Will participate in AIP through the end of the unpaid leave of absence period. During the unpaid leave of absence period, AIP is determined as the lower of actual financial results or target bonus

•        2007 based on actual financial results

•        2008 range from $0 - $294,000, based on actual financial results but not exceeding $294,000

•        2009 range from $0 - $294,000, based on actual financial results but not exceeding $294,000

•        For clarity, a financial result of 100% of target or higher would result in a payment of $294,000. The payout for a financial result below target would be the percentage approved by the Compensation Committee for members of the Hershey Executive Team (this is more accurate than the way it was written, as this puts Tom in the same position for bonuses below target as if he were a continuing employee.)

Benefits

  

•        Health and welfare benefits including medical, dental and vision coverage will remain in effect as elected until December 31, 2009, the end of the leave of absence period. You will pay the active rate based on the E2 salary band by personal check

•        Short-term disability and long term disability benefits will not continue during the leave of absence period

COBRA Continuation

   Will have the option to elect COBRA continuation for benefits at the end of the leave of absence period.

401(k) and pension

   Benefit accruals cease upon separation from service, December 31, 2007

SERP

   Benefit forfeited; did not meet age 55 vesting requirement

CLRP

   Will be eligible for the Compensation Limit Replacement Plan (CLRP), calculated based on accruals up to December 31, 2007, with no accruals thereafter. The CLRP provides retirement benefits on pensionable earnings that exceed the IRS compensation limit under the Hershey Retirement Account, which was $225,000 in 2007. The CLRP amount will be paid no later than August 1, 2008 with interest at the applicable rate under the CLRP from December 31, 2007 until paid.

 

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Deferred Compensation

   Subject to deferral elections, if any. Change in deferral election permissible under 409A transition rules in accordance with Company procedures.

LTIP

   PSU cycle   
  

2003 – 2005

   Will be fully vested on 12/31/08 via the leave of absence
  

2005 – 2007

   Payout, if any, will be determined after February 2008 Board meeting, based on company performance as determined by Board
  

2006 – 2008

   Based on company performance, this cycle is not expected to have a payout. Not eligible.
  

2007 – 2009

   Not eligible.
  

2008 – 2010

   Not eligible.
  

Stock option portion

  

•       Existing stock options continue to vest and be available for exercise through the leave period of absence period, 12/31/09

•       Will not receive a 2008 award or future awards

RSUs

   Vesting Date    RSUs
   6/16/08    1,250
   2/28/08    2,500
   2/28/09    2,500

 

   All above will vest through the leave of absence period.

Outplacement Assistance

   Will be provided in accordance with Company practices
Financial Counseling and Tax Preparation    Will be provided through the leave of absence period at the same level as made available to active employees at the E2 salary grade

 

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These excerpts taken from the HSY 8-K filed Jul 21, 2005.

BY SIGNING BELOW, YOU CERTIFY THAT YOU HAVE READ THIS AGREEMENT, THAT YOU KNOW AND UNDERSTAND THE MEANING AND INTENT OF THIS AGREEMENT, AND THAT YOU ARE ENTERING THIS AGREEMENT KNOWINGLY AND VOLUNTARILY.

EMPLOYEE   THE HERSHEY COMPANY  
 
By: ___________________________________   By: ___________________________________  
 
Date: _________________________________   Date: _________________________________  

 

 

 

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BY SIGNING BELOW, YOU CERTIFY THAT YOU HAVE READ THIS AGREEMENT, THAT YOU KNOW AND UNDERSTAND THE MEANING AND INTENT OF THIS AGREEMENT, AND THAT YOU ARE ENTERING THIS AGREEMENT KNOWINGLY AND VOLUNTARILY.

_______________________________________   THE HERSHEY COMPANY  
Employee Name (Please print) 
 
By: ___________________________________  By: ____________________________________ 
 
 
Date: _________________________________  Date: __________________________________ 

IN THE EVENT THAT THE COMPANY CHANGES YOUR SEPARATION DATE AND YOU ARE REQUIRED TO RESIGN THIS AGREEMENT IN ACCORDANCE WITH SECTION 14 ABOVE, YOU CERTIFY THAT YOU HAVE READ THIS AGREEMENT, THAT YOU KNOW AND UNDERSTAND THE MEANING AND INTENT OF THIS AGREEMENT, AND THAT YOU ARE ENTERING THIS AGREEMENT KNOWINGLY AND VOLUNTARILY.

 

_______________________________________   THE HERSHEY COMPANY  
Employee Name (Please print) 
 
By: ___________________________________  By: ____________________________________ 
 
 
Date: _________________________________  Date: __________________________________ 

 

 

 

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