TOOTSIE ROLL INDUSTRIES INC
EX-10.31
<DOCUMENT>
<TYPE>EX-10.31
<SEQUENCE>5
<FILENAME>a09-5878_3ex10d31.htm
<DESCRIPTION>EX-10.31
<TEXT>

<html>

<head>





</head>

<body lang="EN-US">

<div>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:ideograph-numeric ideograph-other;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT
10.31</font></b></p>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">TOOTSIE
ROLL INDUSTRIES, INC.<br>
<u>CAREER ACHIEVEMENT PLAN</u></font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(As Amended and
Restated Effective as of January&nbsp;1, 2005)</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Purpose</u>.&#160; The purpose of the Career Achievement Plan
(the &#147;Plan&#148;) of Tootsie Roll Industries,&nbsp;Inc. (the &#147;Company&#148;) is to promote
the financial interests and growth of the Company by increasing motivation on
the part of its senior officers and key employees by creating an incentive for
them to remain in the long term employ of the Company and to work to the best
of their abilities for the achievement of the Company&#146;s strategic growth
objectives.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Participation</u>.&#160; Participation in the Plan will be limited to
those senior officers and other key employees of the Company as the Board of
Directors (the &#147;Board&#148;) in its sole discretion shall designate from time to
time to be eligible to receive Career Achievement Awards hereunder.&#160; The Board may, in its sole discretion,
delegate to the Administrative Committee (as defined in Section&nbsp;8) the
power to designate those key employees of the Company who shall be selected for
participation in this Plan, provided that the Board reserves the sole right to
determine participation with respect to any key employee of the Company who is
required to comply with the requirements of Section&nbsp;16 of the Securities
Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;).</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Career Achievement Awards</u>.&#160; As of the date determined by the Board for
any calendar year during the term of the Plan, the Board may, but shall not be
required to, grant an award to any or all of the participants of the Plan. Each
such award (a &#147;Career Achievement Award&#148;) shall be for a fixed dollar amount,
and shall be calculated based on such formulas or other criteria as may be
established by the Board in its sole discretion. Each Career Achievement Award
shall be communicated in a written notice to the affected participant within
ninety (90) </font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\bvanga\09-5878-3\task3396147\5878-3-km-01.htm',USER='bvanga',CD='Feb 28 03:19 2009' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="line-height:normal;margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">days of the beginning of the
applicable calendar year, setting forth the performance criteria and the award
amount.&#160; Such notice shall be provided to
the participant as soon as practicable after the amount of the Career
Achievement Award has been determined by the Board.&#160; Except as otherwise provided in Section&nbsp;5
hereof, once an award has been communicated to a participant pursuant to this Section&nbsp;3,
such award may not be canceled, reduced or diminished in any manner without the
written consent of the participant.&#160; The
Board may, in its sole discretion, delegate to the Administrative Committee its
powers and duties under this Section&nbsp;3 with respect to any participant
herein other than a participant who is required to comply with the requirements
of Section&nbsp;16 of the Exchange Act.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Career Achievement Account</u>.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Establishment of Accounts</u>.&#160; There shall be established on the books of
the Company a Career Achievement Account in the name of each participant in the
Plan. Career Achievement Awards made under the Plan shall be credited to a
participant&#146;s Career Achievement Account as of the January&nbsp;1st specified
in the written notice of the award delivered to the participant. Each
participant&#146;s Career Achievement Account shall consist of the aggregate amount
of such Career Achievement Awards credited thereto, and earnings and losses on
such amounts determined in the manner prescribed by Section&nbsp;4(b). Nothing
contained in this Section&nbsp;4 shall require the Company to invest any assets
of the Company in any particular investment vehicle, or to set aside any assets
to provide for the payment of benefits hereunder.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Career Achievement Account
Earnings and Losses</u>.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Deemed Investment of Account</u>.&#160; For bookkeeping purposes only, each
participant may from time to time direct that the balance of his or her Career
Achievement </font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\bvanga\09-5878-3\task3396147\5878-3-km-01.htm',USER='bvanga',CD='Feb 28 03:19 2009' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="line-height:normal;margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Account be deemed to be
invested in certain investment alternatives described in Section&nbsp;4(b)(2).
Each such direction made by the participant shall be effective until a new
direction is filed by him or her with the Company. If the participant fails to
direct the manner in which any portion of his or her Career Achievement Account
is deemed to be invested, the balance credited to such account shall be deemed
to be invested in any investment alternative designed by the Board in its sole
discretion. The Board shall prescribe rules&nbsp;governing a participant&#146;s
deemed investment direction of his or her Career Achievement account hereunder,
including, but not limited to, the time and manner pursuant to which a
participant may provide deemed investment directions to the Company, and the
frequency at which a participant may make changes with respect to such
investment directions as they relate to the existing balance of his or her
Career Achievement Account as well as to future Career Achievement Awards.&#160; Although the Company might actually invest
assets of the Company according to a participant&#146;s investment directions, it is
not required to do so nor to set aside an amount equal to all or any portion of
a Participant&#146;s Career Achievement Account, The balance in the participant&#146;s
Career Achievement Account shall be increased by gains or decreased by losses
that would be realized or paid by the Company as if assets of the Company in an
amount equal to such balance were actually invested in the investment
alternatives specified by the participant.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Investment Alternatives</u>.&#160; The Company shall make available a number of
investment alternatives for purposes of determining the deemed earnings to be
credited and the deemed losses to be debited to a participant&#146;s Career
Achievement Account under Section&nbsp;4(b)(1).&#160;
Such investment alternatives shall be designated from time to time by
the Board, including, but not limited to, (i)&nbsp;for periods prior to a
participant&#146;s termination of employment, an investment alternative the
performance of which is based on the yield of the </font></p>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="3" face="Times New Roman">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\bvanga\09-5878-3\task3396147\5878-3-km-01.htm',USER='bvanga',CD='Feb 28 03:19 2009' -->


<br clear="all" style="page-break-before:always;">


<div>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Moody&#146;s Seasoned Bond Index,
(ii)&nbsp;for periods after a participant&#146;s termination of employment, the
yield on five-year United States Treasury Notes, and (iii)&nbsp;for all periods
hereunder, investment alternatives the performance of which is based on
publicly traded mutual funds and other investments designated by the
Board.&#160; The Company also may make
available for all periods hereunder an investment alternative the performance
of which is based on the price of the Company&#146;s common stock (referred to
herein as the &#147;Company Stock Alternative&#148;). Each participant&#146;s proportional
interest in the Company Stock Alternative shall be represented by units of
participation, each of which shall be equivalent to one share of common stock
of the Company. The Board shall prescribe rules&nbsp;relating to the deemed investment
of a participant&#146;s Career Achievement Account among the available investment
alternatives, including, but not limited to, a maximum limitation on the amount
that a participant can direct to be deemed invested in any particular
investment alternative, restrictions on a participant&#146;s ability to direct a
deemed transfer from any particular investment alternative to another, and the
manner in which any deemed cash dividends that are paid with respect to a
participant&#146;s units of participation in the Company Stock Alternative shall
deemed to be invested.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Delegation of Powers</u>.&#160; The Board may, in its sole discretion,
delegate to the Administrative Committee its powers and duties under this Section&nbsp;4(b).</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Payment of Career Achievement
Account Upon Termination of Employment</u>.&#160;
A participant&#146;s Career Achievement Account shall be paid to the
participant&#146;s designated beneficiary in the event of the participant&#146;s death,
or shall be forfeited, depending upon the time and circumstances of the
participant&#146;s termination of employment, as provided below:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\bvanga\09-5878-3\task3396147\5878-3-km-01.htm',USER='bvanga',CD='Feb 28 03:19 2009' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="line-height:normal;margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Termination of Employment Other
than for Retirement, Death or Disability</u>.&#160;
Subject to Sections 5(c), 5(d), 5(e)&nbsp;and 5(f)&nbsp;hereof, if a
participant&#146;s employment with the Company terminates other than as a result of
the participant&#146;s retirement, death or permanent disability, the participant
shall be entitled to receive, on the &#147;date of distribution&#148;, a lump sum payment
equal to the &#147;vested&#148; portion of the participant&#146;s Career Achievement Account
as for the date of termination of employment (as such &#147;vested portion is
determined below), plus any earnings credited, and minus any losses debited, to
the participant&#146;s account under Section&nbsp;4(b)(2)&nbsp;following such date
of termination of employment.&#160; For
purposes of this Section&nbsp;5(a), the &#147;date of distribution&#148; means the later
of (1)&nbsp;the first anniversary of the date of the participant&#146;s termination
of employment or (ii)&nbsp;sixty (60) days after the earlier of the participant&#146;s
65th birthday or his or her death. The portion of a participant&#146;s Career
Achievement Account which has not &#147;vested&#148; as of the date of the participant&#146;s
termination of employment shall be forfeited, and the participant shall not be
entitled to any payment of such forfeited amount or any earnings or losses
thereon.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The &#147;vested&#148; portion of a
participant&#146;s Career Achievement Account as of the date of termination shall
equal the aggregate of the &#147;vested&#148; portions of each Career Achievement Award
previously granted to the participant. The &#147;vested&#146; portion of each Career
Achievement Award shall be separately determined and shall equal the product of
the Career Achievement Award (plus any earnings previously credited, and minus
any losses previously debited, to the participant&#146;s account with respect to such
Career Achievement Award under Section&nbsp;4(b)&nbsp;hereof) multiplied by the
Vested Percentage of such award.&#160; The
Vested Percentage of a Career Achievement Award shall be determined according
to the number of the participant&#146;s consecutive full calendar years of
employment with the Company beginning with the calendar year in which </font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\bvanga\09-5878-3\task3396147\5878-3-km-01.htm',USER='bvanga',CD='Feb 28 03:19 2009' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="line-height:normal;margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">such award was credited to
the participant&#146;s Career Achievement Account and ending with the calendar year
immediately prior to the year in which termination occurs, pursuant to the
following table:</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="50%" style="border-collapse:collapse;width:50.0%;">
 <tr>
  <td width="47%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:47.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Years of <br>
  Continuous Employment</font></b></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.44%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="47%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:47.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Vested<br>
  Percentage</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in .7pt 0in .7pt;width:47.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>
  </td>
  <td width="4%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:4.44%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in .7pt 0in .7pt;width:47.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20%</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.44%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40%</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:47.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>
  </td>
  <td width="4%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:4.44%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:47.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">60%</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.44%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">80%</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:47.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5 or more</font></p>
  </td>
  <td width="4%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:4.44%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:47.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">100%</font></p>
  </td>
 </tr>
</table>

</div>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For purposes of this Section&nbsp;5(a),
if a participant first becomes an employee of the Company during the calendar
year in which a Career Achievement Award is credited to such participant&#146;s
account, such year shall count as a full calendar year of employment.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Termination of Employment by
Reason of Retirement, Death or Disability</u>.&#160;
Subject to Section&nbsp;5(a), 5(e)&nbsp;and 5(f)&nbsp;hereof, if a participant&#146;s
employment with the Company terminates by reason of the participant&#146;s
retirement, death or permanent disability, the Company shall pay to the
participant or the beneficiary designated by the participant pursuant to Section&nbsp;9(a)&nbsp;hereof,
as the case may be, a lump sum amount equal to the full balance of the
participant&#146;s Career Achievement Account as of the date of termination, plus
any earnings credited, and minus any losses debited, to the participant&#146;s
account under Section&nbsp;4(b)(2)&nbsp;following such termination of
employment. Such payment shall be made not later than sixty (60) days after the
date of the participant&#146;s termination of employment. For purposes of this Plan,
(i)&nbsp;a participant shall be considered to have retired if the participant&#146;s
employment with the Company terminates on or after the participant&#146;s 65th
birthday and (ii)&nbsp;a participant shall be deemed to be permanently disabled
if such participant is unable to perform any substantial gainful activity by </font></p>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="3" face="Times New Roman">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\bvanga\09-5878-3\task3396147\5878-3-km-01.htm',USER='bvanga',CD='Feb 28 03:19 2009' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">reason of any medically determinable
physical or mental impairment which can be expected to result in death or can
be expected to last for a continuous period of not less than 12 months.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Termination of Employment for
Cause</u>.&#160; Notwithstanding any provision
of this Plan to the contrary, if the Board, in its sole discretion, shall
determine that the participant&#146;s employment with the Company was terminated for
&#147;cause&#148; (as defined below), the participant&#146;s Career Achievement Account shall
be forfeited in its entirety, and the participant shall not be entitled to any
payments under this Plan. For purposes of this Plan, &#147;cause&#148; shall mean any act
or conduct by a participant that consists of or constitutes fraud, theft,
dishonesty, alcohol or drug use on the job, willful injury to or destruction of
the Company&#146;s property or property of any person dealing with the Company, any
act or conduct injurious to the goodwill of the Company or its relations with
its customers or any other person dealing with the Company or derogatory of any
of the Company&#146;s methods or products, any violation of the duty imposed upon
employees by contract or by law in their relationship with the Company, or
engaging in any activities described in Section&nbsp;7(1), 7(2), 7(3)&nbsp;or 7(4)&nbsp;hereof.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Election of Alternative Payment
Option</u>.&#160; Notwithstanding Sections 5(a)&nbsp;and
5(b), within sixty (60) days of the receipt of the Career Achievement Award
Notice a participant may elect to receive payment of his or her Career
Achievement Account in the form of annual installment payments in lieu of a
lump sum distribution.&#160; The participant
may elect that such installment payments be made over any whole number of years
not less than two nor more than ten.&#160; The
first such installment payment shall be made at the same time as the lump sum payment
described in Section&nbsp;5(a)&nbsp;or 5(b), as the case may be, would have
been made.&#160; The amount of each
installment payment shall be equal to the balance of the Participant&#146;s Career
Achievement Account determined as near as practicable to the date of payment
divided by the </font></p>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="3" face="Times New Roman">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\bvanga\09-5878-3\task3396147\5878-3-km-01.htm',USER='bvanga',CD='Feb 28 03:19 2009' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">number of annual installment
payments remaining to be made.&#160; For the
period during which such installment payments are being made until the date as
near as practicable to the date on which the final installment payment is made,
a participant&#146;s remaining Career Achievement Account shall continue to be
adjusted for earnings and losses pursuant to Section&nbsp;4(b)&nbsp;hereof.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The failure to elect the
annual installment payment option, shall be treated as a deemed election to
receive payment in the form of a lump sum.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding any
provision contained herein to the contrary, payment to a participant&#146;s
beneficiary in the event of the participant&#146;s death shall be made only in the
form of a&#160; lump sum payment. In the case
of a participant who had commenced receiving installment payments prior to the
date of his or her death, such lump sum payment shall be equal to the remaining
balance of the participant&#146;s Career Achievement Account, and shall be paid
within ninety (90) days after the date of the participant&#146;s death.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Forfeiture for Career Achievement
Account</u>.&#160; Notwithstanding any
provision of this Plan to the contrary, a participant will forfeit all rights
to any amounts previously credited to his or her Career Achievement Account if,
after the termination of the participant&#146;s employment, the participant engages
in any activities in violation of Section&nbsp;7 hereof or fails to enter into
the agreement described in Section&nbsp;7 hereof as provided in such Section&nbsp;7.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Further Deferral</u>.&#160; To the extent determined by the Board in its
sole discretion, the Board shall have the authority (i)&nbsp;to delay any
payments otherwise due under this Plan to the extent necessary to avoid a
limitation on the deductibility of compensation paid to a participant pursuant
to Section&nbsp;162(m)&nbsp;of the Internal Revenue Code of 1986 (the &#147;Code&#148;),
or </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\bvanga\09-5878-3\task3396147\5878-3-km-01.htm',USER='bvanga',CD='Feb 28 03:19 2009' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">any successor provision, and
(ii)&nbsp;to take such action as it shall deem appropriate to specifically
approve or delay any payments otherwise due under this Plan to a participant who
is subject to Section&nbsp;16 of the Exchange Act in order to enable such
participant to comply with such Section&nbsp;16. To the extent any payments
under this Plan are deferred under this Section&nbsp;5(f), such amounts shall
continue to be adjusted for earnings and losses pursuant to Section&nbsp;4(b)&nbsp;hereof,
and shall be paid at such time or from time to time to the extent such payments
would not cause or increase a limitation on deductibility under such Section&nbsp;162(m),
or would not result in a participant subject to Section&nbsp;16 of the Exchange
Act failing to comply with such Section&nbsp;16, as the case may be.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Immediate Distribution of Career
Achievement Accounts Upon Change of Control of the Company</u>.&#160; Notwithstanding any provision of this Plan to
the Contrary, and provided that the participant enters into the agreement
described in Section&nbsp;7 hereof as provided in such Section&nbsp;7, the
Company shall pay the entire balance of a participant&#146;s Career Achievement
Account to such participant in a lump sum payment within three business days
after the occurrence of a &#147;change of control&#148; of the Company. A &#147;change of
control&#148; of the Company shall occur when: (1)&nbsp;any person, including a &#147;group,&#148;
as described in Section&nbsp;13(d)(3)&nbsp;of the Exchange Act, acquires after
the effective date of this Plan when taken together with equity securities
already held by such Persons the beneficial ownership of, and the right to
vote, shares having the right to cast more than fifty percent (50%) of the
votes permitted to be cast in any election of members to the Board; (2)&nbsp;any
person, including a &#147;group,&#148; as described in Section&nbsp;13(d)(3)&nbsp;of the
Exchange Act,&#160; acquires (or have acquired
during the 12-month period ending on the date of the most recent acquisition by
such person or persons) ownership of the equity securities of the Company
possessing 30% or more of the total voting power of the equity </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\bvanga\09-5878-3\task3396147\5878-3-km-01.htm',USER='bvanga',CD='Feb 28 03:19 2009' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">securities of the Company;
or (3)&nbsp;as the result of any tender or exchange offer, substantial purchase
of the Company&#146;s equity securities, merger, consolidation, sale of assets or
contested election, or any combination of the foregoing transactions, the
persons who were directors of the Company immediately prior to such transaction
or transactions (together with any new or replacement directors whose election
by the Board, or whose nomination for election by the Company&#146;s shareholders
was approved by a vote of at least a majority of the directors then still in
office who were either directors at the beginning of such period or whose
election or nomination for election was previously so approved) do not
constitute a majority of the Board (or of the board of directors of any
successor to or assignee of the Company) at any time within the twelve (12)
month period following such transaction; except that no event described in
clause (1)&nbsp;or (2)&nbsp;above shall constitute a &#147;change of control&#148; if
immediately after such event Melvin J. Gordon or Ellen R. Gordon, their
descendants (and spouses of such descendants) and any trusts or estates in
which such persons have an interest own, directly or indirectly, shares having
the right to cast at least fifty percent (50%) of the votes permitted to be
cast in any election of members of the Board.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Noncompetition</u>.&#160; As a condition to the payment of any portion
of the participant&#146;s Career Achievement Account following a change of control
of the Company pursuant to Section&nbsp;6 or upon the participant&#146;s termination
of employment with the Company pursuant to Section&nbsp;5 (other than by reason
of the participant&#146;s death), the participant shall be required to enter into an
agreement with the Company which provides that, for the period commencing on
the effective date of the change of control of the Company or the effective
date of the participant&#146;s termination of employment with the Company, as the
case may be and ending on the first anniversary of the participant&#146;s
termination of employment with the Company, the participant will not:</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\bvanga\09-5878-3\task3396147\5878-3-km-01.htm',USER='bvanga',CD='Feb 28 03:19 2009' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; directly or indirectly engage in,
own, manage, operate, participate in, render advice to or have any interest in
any person, firm, corporation, or business (whether as an owner, partner,
employee, officer, director, agent, security holder, creditor, consultant, or
otherwise) that engages in any activity which is the same as, similar to, or
competitive with any activity then, or within the prior twelve (12) months,
engaged in by the Company or any affiliate of the Company; or</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; directly or indirectly solicit for
employment or employ or become employed by any person then, or within the prior
twelve (12) months, employed by the Company or any affiliate of the Company, or
request, influence or advise any person who is or shall be employed by or is in
the service of the Company or any affiliate of the Company to leave such
employment or service of the Company or any affiliate of the Company; or</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; directly or indirectly influence or
advise any competitor of or anyone intending to compete with the Company any
affiliate of the Company to employ or otherwise engage the services of any
person who is or shall be employed by or is in the service of the Company or
any affiliate of he Company; or</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; directly or indirectly solicit or
accept any business which is the same as, similar to or competitive with that
of the Company or any affiliate of the Company from customers of the Company or
any affiliate of the Company or request, induce or advise customers of the
Company or any affiliate of the Company to withdraw, curtail or cancel their
business with the Company or any affiliate of the Company.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\bvanga\09-5878-3\task3396147\5878-3-km-01.htm',USER='bvanga',CD='Feb 28 03:19 2009' -->



<br clear="all" style="page-break-before:always;">
<div>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For purposes of this
Plan, the term &#147;affiliate&#148; means any entity engaged in the same or similar
business as the Company or a related business, which is controlled by or under
common control with the Company.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Administration of the Plan.</u></font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Powers and Duties of the Board</u>.&#160; The Plan shall be administered and
interpreted by the Board. The Board shall, subject to the terms of the Plan,
make or refrain from making Career Achievement Awards, determine the amount of
Career Awards, establish rules&nbsp;and regulations for the administration of
the Plan, impose conditions with respect to competitive employment or other
activities with respect to any such award, and establish the written form to be
used to evidence such awards pursuant to Section&nbsp;3 hereof.&#160; The Board shall have full authority to
construe and interpret the terms and provisions of the Plan, to adopt, alter
and repeal such administrative rules, guidelines and practices governing this
Plan and to perform all acts,&#160; including
the delegation of its administrative responsibilities as it shall, from time to
time, deem advisable, and to otherwise supervise the administration of this
Plan.&#160; All such rules, regulations and
interpretations relating to the Plan which are adopted by the Board shall be
conclusive and binding on all parties.&#160;
The Board may correct any defect, supply any omission or reconcile any
inconsistency in the Plan or in any award granted hereunder, in the manner and
to the extent it shall deem necessary to carry the Plan into effect.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Administrative Committee</u>.&#160; The Board may, in its sole discretion,
appoint a committee of two or more employees of the Company which shall be
designated the &#147;Administrative Committee.&#148;&#160;
The Administrative Committee shall have such powers and responsibilities
under this Plan as shall be delegated to such committee by the Board from time </font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\jvangc\09-5878-3\task3397587\5878-3-km-03.htm',USER='jvangb',CD='Mar  2 00:11 2009' -->


<br clear="all" style="page-break-before:always;">


<div>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">to time pursuant to
resolutions adopted by the Board.&#160; The
Board, in its sole discretion, may remove any member of the Administrative
Committee at any time, may appoint additional employees of the Company to be
members of the Administrative Committee from time to time, and may fill any
vacancies that arise upon the death, resignation or removal of any member of
the Administrative Committee.&#160; The Board
also shall have the power, in its sole discretion, to discontinue the existence
of the Administrative Committee at any time and assume any powers and duties
which it previously delegated to such committee.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Miscellaneous</u>.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Designation of Beneficiary</u>.&#160; In the event of the death of a participant,
the amount payable under Section&nbsp;5 hereof shall, unless the participant
shall designate to the contrary as provided below, thereafter be made to such
person or persons who, as of the date payment is to be made under this Plan,
would receive distribution of the participant&#146;s account balance under the terms
of the Tootsie Roll Employee&#146;s Pension Plan.&#160;
Notwithstanding the preceding sentence, a participant may specifically
designate the person or persons (who may be designate successively or
contingently) to receive payments under this Plan following the participant&#146;s
death by filing a written beneficiary designation with the Company during the
participant&#146;s lifetime.&#160; Such beneficiary
designation shall be in such form as may be prescribed by the Company and may
be amended from time to time or may be revoked by the participant pursuant to
written instruments filed with the Company during his or her lifetime.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Beneficiaries designated
by a participant may be any natural or legal person or persons, including a
fiduciary, such as a trustee of a trust or the legal representative of an
estate.&#160; Unless otherwise provided by the
beneficiary designation filed by a participant, if all of the persons so </font></p>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\jvangc\09-5878-3\task3397587\5878-3-km-03.htm',USER='jvangb',CD='Mar  2 00:11 2009' -->


<br clear="all" style="page-break-before:always;">


<div>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">designated die before a
participant on the occurrence of a contingency not contemplated in such
beneficiary designation, then the amount payable under this Plan shall be paid
to the person or persons determined in accordance with the first sentence of
this Section&nbsp;9(a).</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Assets</u>.&#160; No assets shall be segregated or earmarked in
respect of any Career Achievement Award or Career Achievement Account and no
participant shall have any right to assign, transfer, pledge or hypothecate his
or her interest, or any portion thereof, in his or her Career Achievement
Account.&#160; The Plan and the crediting of
Career Achievement Accounts hereunder shall not constitute a trust and shall be
structured solely for the purpose of recording an unsecured contractual
obligation.&#160; All amounts payable pursuant
to the terms of this Plan shall be paid from the general assets of the Company.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Reports</u>.&#160; Until a participant&#146;s entire Career
Achievement Account shall have been paid in full or forfeited, the Company will
furnish to the participant a report, at least annually, setting forth
transactions in such account and the status of such account with respect to the
vested and unvested portions thereof and the earnings and losses related
thereto.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Acceleration of Vesting</u>.
Notwithstanding any other provision of this Plan to the contrary, the Board, in
its sole discretion, is empowered to accelerate the vesting of all or a portion
of a participant&#146;s Career Achievement Account for any reason the Board may
determine to be appropriate. Neither the Company nor the Board shall have any
obligation to make any such acceleration for any reason whatsoever.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Liability</u>.&#160; No member of the Board or of the
Administrative Committee shall be liable for any act or action hereunder,
whether of omission or commission, by any other member or employee or by any
agent to whom duties in connection with the administration of </font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\jvangc\09-5878-3\task3397587\5878-3-km-03.htm',USER='jvangb',CD='Mar  2 00:11 2009' -->


<br clear="all" style="page-break-before:always;">


<div>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the Plan have been delegated
or, member&#146;s bad faith, gross negligence or fraud, for such member. The Company
will fully indemnify hold each member of the Board and of the Administrative
Committee harmless from any liability hereunder, except in circumstances
involving such member&#146;s bad faith, gross negligence or fraud. The Company, the
Board or the Administrative Committee may consult with legal counsel, who may
be counsel for the Company, with respect to its obligations or duties
hereunder, or with respect to any action or proceeding or any question of law,
and shall not be liable with respect to any action taken or omitted by it in
good faith pursuant to the advice of such counsel.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Amendment or Termination</u>.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .5in;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)&nbsp;General Rule.&#160; This Plan may be amended or terminated in any
respect at any time by the Board; provided, however, that except as otherwise
provided in Section&nbsp;9(1)&nbsp;hereof, no amendment or termination of the
Plan shall be effective to reduce any benefits that accrue before the adoption
of such amendment or termination.&#160; If and
to the extent permitted without violating the requirements of Section&nbsp;409A
of the Code, the Board may require that all of the participant&#146;s Career
Achievement Account (including, without limitation, any remaining benefits
payable to participants or beneficiaries receiving distributions in
installments at the time of the termination) be distributed as soon as
practicable after such termination, notwithstanding any elections by
participants or beneficiaries with regard to the timing or form in which their
benefits are to be paid.&#160; If and to the
extent that the Board does not accelerate the timing of distributions on
account of the termination of the Plan pursuant to the preceding sentence,
payment of any remaining benefits under the Plan shall be made at the same
times and in the same manner as such distributions would have been made based
upon the most recent effective </font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .5in;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\jvangc\09-5878-3\task3397587\5878-3-km-03.htm',USER='jvangb',CD='Mar  2 00:11 2009' -->


<br clear="all" style="page-break-before:always;">


<div>

<p style="line-height:normal;margin:0in 0in .0001pt .5in;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .5in;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">elections made by participants and beneficiaries, and the terms of the
Plan, as in effect at the time the Plan is terminated.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .5in;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)<i>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </i>Termination
and Liquidation Subject to Certain Conditions.&#160;
If and to the extent otherwise permitted by Section&nbsp;409A of the
Code and the Treasury Regulations thereunder, the Company may terminate and
liquidate the Plan if the following requirements are met:</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&nbsp;the
termination and liquidation does not occur proximate to a downturn in the
financial health of the Company;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&nbsp;the
Company terminates and liquidates all agreements, methods, programs and other
arrangements sponsored by the Company that would be aggregated with any
terminated and liquidated agreements, methods, programs, and other arrangements
under Section&nbsp;1.409A-1(c)&nbsp;of the Treasury Regulations if the
participant had deferrals of compensation under all of the agreements, methods,
programs, and other arrangements that are terminated and liquidated;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&nbsp;no
payments in liquidation of the Plan are made within twelve (12) months of the
date the Company takes all necessary action to irrevocably terminate and
liquidate the Plan, other than payments that would be payable under the terms
of the Plan if the action to terminate and liquidate the Plan had not been
taken;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&nbsp;all
payments are made within twenty-four (24) months of the date the Company takes
all necessary action to irrevocably terminate and liquidate the Plan; and</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\jvangc\09-5878-3\task3397587\5878-3-km-03.htm',USER='jvangb',CD='Mar  2 00:11 2009' -->


<br clear="all" style="page-break-before:always;">


<div>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&nbsp;the
Company does not adopt a new plan that would be aggregated with any terminated
and liquidated plan under applicable Treasury Regulations if the same
participant participated in both plans, at any time within three (3)&nbsp;years
following the date that the Company takes all necessary action to irrevocably
terminate and liquidate the Plan.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Expenses</u>. The Company will
bear all expenses incurred by it in administering this Plan.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Withholding</u>. The Company shall
have the right to deduct from any payment to be made pursuant to this Plan or
to otherwise require prior to the payment of any amount hereunder, payment by the
participant of any Federal, state or local taxes rewired by law to be withheld.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>No Obligation</u>. The
designation by the Board or the Administrative Committee of an individual as a
participant in any year shall not require the Board or the Administrative
Committee to designate such person to receive a Career Achievement Award in any
other year. Neither this Plan nor any Career Achievement Awards made hereunder
shall create any obligation on the Company to continue any other existing award
plans or policies or to establish or continue any other programs, plans or
policies of any kind. Neither this Plan nor any Career Achievement Award made
pursuant to this Plan shall give any participant or other employee any right
with respect to continuance of employment by the Company or any of its
affiliates or of any specific aggregate amount of compensation, nor shall there
be a limitation in any way on the right of the Company or any of its affiliates
by which an employee is employed to terminate such employee at any time for any
reason whatsoever, nor shall this Plan or any Career Achievement Award made
hereunder create a contract of employment.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\jvangc\09-5878-3\task3397587\5878-3-km-03.htm',USER='jvangb',CD='Mar  2 00:11 2009' -->


<br clear="all" style="page-break-before:always;">


<div>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>No Assignment Resolution of
Disputes</u>. Except as otherwise permitted under Section&nbsp;9(a), no right
or interest in any Career Achievement Account under this Plan shall be
assignable or transferable, and no right or interest of any participant in any
Career Achievement Account hereunder shall be subject to any lien, obligation
or liability of such participant. In the event any conflicting demands are made
upon the Company with respect to any payments due as a result of this Plan,
provided that the Company shall not have received prior written notice that
said conflicting demands have been finally settled by court adjudication,
arbitration, joint order or otherwise, the Company may pay to the participant
any and all amounts due hereunder and thereupon the Company shall stand fully
relieved and discharged of any further duties or liabilities under this Plan.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Governing Law</u>. This Plan and
all actions taken in connection herewith shall be governed and construed in
accordance with the laws of the State of Illinois (regardless of the law that
might otherwise govern under applicable Illinois principles of conflict of
laws).</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Compliance with Section&nbsp;409A<b><i style="font-weight:bold;">.</i>&#160;
</b>This Plan shall be construed in an manner consistent with the
applicable requirements of Section&nbsp;409A of the Code, and the Board, in its
sole discretion and without the consent of any participant or beneficiary, may
amend the provisions of this Plan if and to the extent that the Board
determines that such amendment is necessary or appropriate to comply with the
applicable requirements of Section&nbsp;409A of the Code.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\jvangc\09-5878-3\task3397587\5878-3-km-03.htm',USER='jvangb',CD='Mar  2 00:11 2009' -->


<br clear="all" style="page-break-before:always;">


<div>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="3" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, Tootsie Roll Industries,&nbsp;Inc.
has caused this instrument to be executed in its name and its corporate seal to
be hereunder affixed on this&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; day of
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2008.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="41%" style="border-collapse:collapse;margin-left:318.7pt;width:41.14%;">
 <tr>
  <td width="100%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">TOOTSIE ROLL INDUSTRIES, INC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.08%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="91%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:91.92%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:10.78%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="89%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:89.22%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="25" style="border:none;"></td>
  <td width="8" style="border:none;"></td>
  <td width="275" style="border:none;"></td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt 3.5in;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="25%" style="border-collapse:collapse;width:25.62%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Corporate Seal)</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ATTEST:</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.8%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="82%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:82.2%;">
  <p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:ideograph-numeric ideograph-other;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\jvangc\09-5878-3\task3397587\5878-3-km-03.htm',USER='jvangb',CD='Mar  2 00:11 2009' -->


</body>

</html>
</TEXT>
</DOCUMENT>
