TOOTSIE ROLL INDUSTRIES INC
EX-10.30
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<P ALIGN="RIGHT"><FONT SIZE=2><B>EXHIBIT 10.30  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>EXECUTIVE OFFICER COMPENSATION  </B></FONT></P>


<P><FONT SIZE=2><B>1)&nbsp;&nbsp;&nbsp;&nbsp;Base Salary  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors annually reviews each executive officer's salary. The Board considers the following with respect to the determination of an individual
executive officer's base salary: performance and contribution to the Company, including length of service in the position, comparative compensation levels of other companies, including periodic
compensation studies performed by independent compensation and benefit consultants, overall competitive environment for executives and the level of compensation considered necessary to attract and
retain executive talent, historical compensation and performance levels for the Company; and a desire to adhere to Internal Revenue Code Section&nbsp;162(m) regulations on deductible compensation,
thus maximizing the Company's ability to receive federal income tax deductions. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Companies
used in comparative analyses for the purpose of determining each executive officer's salary are selected periodically with the assistance of professional compensation
consultants. Selection of such companies is based on a variety of factors, including market capitalization, revenue size and industry classification. The Board of Directors believes that the Company's
primary competitors for executive talent are companies with a similar market capitalization and, accordingly, relies on a broad array of companies in various industries for comparative analyses. 2005
base salary for the named executive officers is $999,000, each, for Melvin J. Gordon and Ellen R. Gordon, $923,000 for John W. Newlin, $866,000 for Thomas E. Corr, and $653,000 for G. Howard Ember. </FONT></P>


<P><FONT SIZE=2><B>2)&nbsp;&nbsp;&nbsp;&nbsp;Annual Incentives and Other Awards  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective January&nbsp;1, 1997, the Compensation Committee established the Tootsie Roll Industries,&nbsp;Inc. Bonus Incentive Plan. In 2001, the shareholders
approved the 2001 Bonus Incentive Plan to replace the previous Bonus Incentive Plan for 2001 and future years. The 2001 Bonus Incentive Plan was adopted
to ensure the tax deductibility of the annual bonus that may be earned by executive officers of the Company. Under the Plan, certain key employees (including employees who are also directors)
designated by the Compensation Committee may receive annual incentive compensation determined by pre-established objective performance goals. This year, all executive officers named in the
summary compensation table included in this proxy statement were eligible for the 2001 Bonus Incentive Plan. Performance goals were based on the measures, objectives and financial criteria discussed
below. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annual
incentive bonuses to some executive officers and CAP and split-dollar insurance awards for all executive officers are made at the discretion of the Board of Directors in order to
recognize and reward each executive officer's contribution to the Company's overall performance in terms of both financial results and attainment of individual and Company goals.The annual cash
incentive bonus is designed to reward executives, as well as other management personnel, for their contributions to the Company's financial performance during the recently completed year. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
annual CAP award and split-dollar life insurance program is principally designed to provide an incentive to executive officers to achieve both short-term and
long-term financial and other goals, including strategic objectives. These programs are also designed to provide an incentive for the executive to remain with the Company on a
long-term basis. These awards are determined by the Board of Directors based on the performance of the Company and the executive's contribution to the growth and success of the Company. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors considers both achievement of strategic objectives and financial performance measures in determining compensation levels. The following measures of Company
performance are considered in the determination of bonuses and awards: earnings per share, increase </FONT></P>

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<P><FONT SIZE=2>in
sales of core brands and total sales, return on assets, return on equity; and net earnings as a percentage of sales. </FONT></P>

<P><FONT SIZE=2><B>3)&nbsp;&nbsp;&nbsp;&nbsp;Other  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each named executive officer is provided an automobile except for Mr.&nbsp;and Mrs.&nbsp;Gordon who share an automobile and are provided with the services of
a driver. As disclosed in the proxy, Mr.&nbsp;and Mrs.&nbsp;Gordon also share the use of a corporate apartment in connection with travel to their Chicago offices and share the use of a corporate
aircraft in connection with such travel and other business purposes. Mr.&nbsp;and Mrs.&nbsp;Gordon also made personal use of the corporate aircraft at a cost of $2,037 each in 2004. No personal
use has been made in 2005. </FONT></P>

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