Document:

Exhibit 10.3

EXHIBIT 10.3

CSS INDUSTRIES, INC.

2004 EQUITY COMPENSATION PLAN

STOCK BONUS AWARD GRANT

This STOCK BONUS AWARD GRANT, dated as of      , 20     (the “Date of Grant”), is delivered by CSS
Industries, Inc. (the “Company”) to      (the “Grantee”).

RECITALS 

WHEREAS, the Human Resources Committee of the Board of Directors of the Company (the “Committee”) has
determined to grant the Grantee a stock bonus award that will be converted to shares of common stock of the Company,
par value $0.10 per share, (the “Company Stock”), if certain requirements set forth in this Stock Bonus Award
Grant (the “Grant”) are satisfied; and

WHEREAS, the Committee has determined that the stock bonus award granted to the Grantee pursuant to this Grant
shall be issued under the CSS Industries, Inc. 2004 Equity Compensation Plan (the “Plan”) and the terms and
conditions of such stock bonus award shall be memorialized in this Grant.

NOW, THEREFORE, the parties to this Grant, intending to be legally bound hereby, agree as follows:

1. Grant of Stock Bonus Award. Subject to the terms and conditions set forth in this Grant and the Plan, the
Company hereby grants to the Grantee a stock bonus award equivalent to units (the “Restricted Stock Units”).
Each unit (a “Unit”) shall be a phantom right and shall be equivalent to one share of Company Stock on the
applicable Redemption Date (as defined below).

2. Restricted Stock Unit Account. The Company shall establish and maintain a Restricted Stock Unit account as
a bookkeeping account on its records (the “Restricted Stock Unit Account”) for the Grantee and shall record in
such Restricted Stock Unit Account the number of Restricted Stock Units granted to the Grantee. The Grantee shall not
have any interest in any fund or specific assets of the Company by reason of this grant or the Restricted Stock Unit
Account established for the Grantee.

3. Vesting.

(a) Fifty percent (50%) of the Restricted Stock Units shall become vested on the third anniversary of the Date of
Grant (the “First Service Date”), provided the Grantee continues to be Employed by the Employer (as defined in
the Plan) from the Date of Grant through the First Service Date.

 

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(b) The remaining fifty percent (50%) of the Restricted Stock Units shall become vested on the fourth anniversary
of the Date of Grant (the “Second Service Date”), provided the Grantee continues to be Employed by the Employer
from the Date of Grant through the Second Service Date.

(c) If at any time prior to the First Service Date or Second Service Date, as applicable, the Grantee’s ceases to
be Employed by the Employer for any or no reason, all of the Restricted Stock Units subject to this Grant that have not
vested will be immediately forfeited and the Grantee shall have no rights with respect to the redemption of any portion
of such forfeited Restricted Stock Units.

4. Redemption. The Restricted Stock Units that become vested pursuant to Paragraph 3 above shall be redeemed
by the Company on each of the First Service Date or Second Service Date, as applicable, or as soon as administratively
practicable thereafter, but not later than thirty (30) days following the First Service Date or Second Service Date, as
applicable, if the Grantee continues to be Employed by the Employer, from the Date of Grant to the First Service Date
or Second Service Date, as applicable (each such date, the “Redemption Date”). On the respective Redemption
Date, all Restricted Stock Units that have become vested pursuant to Paragraph 3 will be redeemed and converted to an
equivalent number of shares of Company Stock, and the Grantee shall receive a single sum distribution of such shares of
Company Stock, which shall be issued under the Plan.

5. Change of Control. The provisions set forth in the Plan applicable to a Change of Control (as defined in
the Plan) shall apply to the Restricted Stock Units, and, in the event of a Change of Control, the Committee may take
such actions as it deems appropriate pursuant to the Plan and is consistent with the requirements of section 409A of
the Internal Revenue Code of 1986, as amended (the “Code”), if applicable.

6. Acknowledgment by Grantee. By accepting this Grant, the Grantee acknowledges that with respect to any right
to redemption or distribution pursuant to this Grant, the Grantee is and shall be an unsecured general creditor of the
Company without any preference as against other unsecured general creditors of the Company, and the Grantee hereby
covenants for himself or herself, and anyone at any time claiming through or under the Grantee not to claim any such
preference, and hereby disclaims and waives any such preference which may at any time be at issue, to the fullest
extent permitted by applicable law. The Grantee also hereby acknowledges and agrees that the Grantee will indemnify
the Employer (as defined in the Plan) and hold the Employer free and harmless of, from and against any and all losses,
damage, obligation or liability, and all costs and expenses (including reasonable attorneys’ fees) incurred in
connection therewith, which may be suffered or incurred on account or by reason of any act or omission of the Grantee
or the Grantee’s heirs, executors, administrators, personal representatives, successors and assigns in breach or
violation of the provisions of the Plan or the agreements of the Grantee set forth herein. The Grantee also
acknowledges receipt of a copy of the Plan and agrees to be bound by the terms of the Plan and this Grant. The Grantee
further agrees to be bound by the determinations and decisions of the Committee with respect to this Grant and the Plan
and the Grantee’s rights to benefits under this Grant and the Plan, and agrees that all such determinations and
decisions of the Committee shall be binding on the Grantee, his or her beneficiaries and any other person having or
claiming an interest under this Grant and the Plan on behalf of the Grantee.

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7. Restrictions on Issuance or Transfer of Shares of Company Stock.

(a) The obligation of the Company to deliver shares of Company Stock upon the redemption of the Restricted Stock
Units shall be subject to the condition that if at any time the Committee shall determine in its discretion that the
listing, registration or qualification of the shares of Company Stock upon any securities exchange or under any state
or federal law, or the consent or approval of any governmental regulatory body is necessary or desirable as a condition
of, or in connection with, the issuance of shares of Company Stock, the shares of Company Stock may not be issued in
whole or in part unless such listing, registration, qualification, consent or approval shall have been effected or
obtained free of any conditions not acceptable to the Committee. The issuance of shares of Company Stock pursuant to
this Grant is subject to any applicable taxes and other laws or regulations of the United States or of any state having
jurisdiction thereof.

(b) As a condition to receive any shares of Company Stock on the Redemption Date, the Grantee agrees to be bound
by the Company’s policies regarding the transfer of the shares of Company Stock and understands that there may be
certain times during the year in which the Grantee will be prohibited from selling, transferring, pledging, donating,
assigning, mortgaging, hypothecating or otherwise encumbering the shares of Company Stock.

(c) As soon as administratively practicable following the Redemption Date, a certificate representing the shares
of Company Stock that are redeemed shall be issued to the Grantee.

8. Grant Subject to Plan Provisions. This Grant is made pursuant to the Plan, the terms of which are
incorporated herein by reference, and in all respects shall be interpreted in accordance with the Plan. In the event
of any contradiction, distinction or difference between this Grant and the terms of the Plan, the terms of the Plan
will control. Except as otherwise defined in this Grant, capitalized terms used in this Grant shall have the meanings
set forth in the Plan. This Grant is subject to the interpretations, regulations and determinations concerning the
Plan established from time to time by the Committee in accordance with the provisions of the Plan, including, but not
limited to, provisions pertaining to (a) rights and obligations with respect to withholding taxes, (b) the
registration, qualification or listing of the shares of Company Stock, (c) changes in capitalization of the Company,
and (d) other requirements of applicable law. The Committee shall have the authority to interpret and construe this
Grant pursuant to the terms of the Plan, its decisions shall be conclusive as to any questions arising hereunder and
the Grantee’s acceptance of this Grant is the Grantee’s agreement to be bound by the interpretations and decisions of
the Committee with respect to this Grant and the Plan.

9. No Rights as Stockholder. The Grantee shall not have any rights as a stockholder of the Company, including
the right to any cash dividends, or the right to vote, with respect to any Restricted Stock Units.

10. No Rights to Continued Employment or Service. This Grant shall not confer upon the Grantee any right to be
retained in the employment or service of the Employer and shall not interfere in any way with the right of the Employer
to terminate the Grantee’s employment or service at any time. The right of the Employer to terminate at will the
Grantee’s employment or service at any time for any reason is specifically reserved.

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11. Assignment and Transfers. No Restricted Stock Units awarded to the Grantee under this Grant may be
transferred, assigned, pledged, or encumbered by the Grantee and a Restricted Stock Unit shall be redeemed during the
lifetime of the Grantee only for the benefit of the Grantee. Any attempt to transfer, assign, pledge, or encumber the
Restricted Stock Unit by the Grantee shall be null, void and without effect. The rights and protections of the Company
hereunder shall extend to any successors or assigns of the Company. This Grant may be assigned by the Company without
the Grantee’s consent.

12. Withholding. The Grantee shall be required to pay to the Employer, or make other arrangements satisfactory
to the Employer to provide for the payment of, any federal, state, local or other taxes that the Employer is required
to withhold with respect to the grant, vesting and redemption of the Restricted Stock Units. Any tax withholding
obligation of the Employer with respect to the redemption of the Restricted Stock Units shall be satisfied by having
shares of Company Stock withheld up to an amount that does not exceed the minimum applicable withholding tax rate for
federal (including FICA), state, local and other tax liabilities.

13. Effect on Other Benefits. The value of shares of Company Stock distributed with respect to the Restricted
Stock Units shall not be considered eligible earnings for purposes of any other plans maintained by the Company or the
Employer. Neither shall such value be considered part of the Grantee’s compensation for purposes of determining or
calculating other benefits that are based on compensation, such as life insurance.

14. Applicable Law; Entire Agreement. The validity, construction, interpretation and effect of this Grant
shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, without giving
effect to the conflicts of laws provisions thereof. This Grant sets forth the entire agreement of the parties with
respect to the subject matter hereof and may not be changed or terminated except by a writing signed by the Grantee and
the Company. This Grant and any undertakings and indemnities delivered hereunder shall be binding upon and shall inure
to the benefit of the Grantee and the Grantee’s heirs, distributees and personal representatives and to the Company,
its successors and assigns.

15. Notice. Any notice to the Company provided for in this instrument shall be addressed to the Company in
care of the Secretary at the Company’s corporate headquarters, and any notice to the Grantee shall be addressed to such
Grantee at the current address shown on the payroll records of the Employer, or to such other address as the Grantee
may designate to the Employer in writing. Any notice shall be delivered by hand, sent by telecopy or enclosed in a
properly sealed envelope addressed as stated above, registered and deposited, postage prepaid, in a post office
regularly maintained by the United States Postal Service.

16. Section 409A of the Code. This Grant is not intended to constitute or result in deferred compensation
subject to the requirements of section 409A of the Code. However, to the extent any amount payable under this Grant is
subsequently determined to constitute deferred compensation subject to the requirements of section 409A of the Code,
this Grant shall be administered in accordance with the requirements of section 409A of the Code. In such case,
distributions made under this Grant may only be made in a manner and upon an event permitted by section 409A of the
Code. To the extent that any provision of this Grant would cause a conflict with the requirements of section 409A of
the Code, or would cause the administration of this Grant to fail to satisfy the requirements of section 409A of the
Code, such provision shall be deemed null and void to the extent permitted by applicable law. In no event shall the
Grantee, directly or indirectly, designate the calendar year of distribution. This Grant may be amended without the
consent of the Grantee in any respect deemed by the Committee to be necessary in order to preserve compliance with
Section 409A of the Code. All redemptions pursuant to this Grant shall be deemed as a separate payment.

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IN WITNESS WHEREOF, the Company has caused its duly authorized officer to execute this Grant effective as of the
Date of Grant.

	 	 	 
	ATTEST

	 	CSS INDUSTRIES, INC.
	 

	 	
	(Corporate Seal)

	 	
	 

	 	
	                                                     
 
	 	By:                                                      

I hereby accept the grant of Restricted Stock Units described in this Stock Bonus Award Grant. I have read the terms
of the Plan and this Stock Bonus Award Grant, and agree to be bound by the terms of the Plan and this Stock Bonus Award
Grant and the interpretations of the Committee with respect thereto.

ACCEPTED:

By:                                                      

Grantee

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5EX-10.27

 

    EXHIBIT 10.27

 

    GRAHAM
    CORPORATION

    

 

    ANNUAL
    STOCK-BASED LONG-TERM INCENTIVE AWARD PLAN

    

    FOR
    SENIOR EXECUTIVES

 

    (As Amended and Restated Effective March 12, 2009.)

 

			
	
    Purpose 		
    The purpose of this Annual Stock-Based Long-Term Incentive Award
    Plan for Senior Executives (the “Plan”) is to motivate
    the senior executive officers of Graham Corporation (the
    “Company”) to increase shareholder value by providing
    them long-term stock-based awards for above-average Company
    performance.
	 
	
    Administration 		
    The Plan will be administered by the Compensation Committee of
    the Board of Directors of the Company (the
    “Committee”), which shall have final and conclusive
    authority to administer and interpret the Plan.
	 
	
    Eligibility 		
    Eligible employees will include the President and Chief
    Executive Officer and such officer’s direct reports,
    subject to the approval by the Committee of such participation.
	 
	
    Award Periods 		
    Annual awards under the Plan will be based on the fiscal year of
    the Company, beginning with its April 1, 2009 through
    March 31, 2010 fiscal year (each, a “Fiscal
    Year”).
	 
	
    Awards 		
    Unless the Committee determines otherwise, annual awards under
    the Plan for the Fiscal Year that commences in 2009 will consist
    of nonqualified stock options (“Options”) and shares
    of time-vesting restricted stock (“Time-Vested Restricted
    Stock”), which awards will be issued under the Amended and
    Restated 2000 Graham Corporation Incentive Plan to Increase
    Shareholder Value, or a successor plan thereto (the
    “Incentive Plan”), and will be subject to the terms
    thereof.
	 
	
		
    Unless the Committee determines otherwise, annual awards under
    the Plan for Fiscal Years that commence in even years (e.g.,
    2010, 2012, 2014, etc.) (each, an “Even Fiscal Year”)
    will consist of Options and shares of performance-vesting
    restricted stock (“Performance-Vested Restricted
    Stock,” and together with Time-Vested Restricted Stock,
    “Restricted Stock”), which awards will be issued under
    the Incentive Plan, and will be subject to the terms thereof.
	 
	
		
    Unless the Committee determines otherwise, annual awards under
    the Plan for Fiscal Years that commence in odd years other than
    2009 (e.g., 2011, 2013, 2015, etc.) (each, an “Odd Fiscal
    Year”) will consist of Time-Vested Restricted Stock and
    Performance-Vested Restricted Stock, which awards will be issued
    under the Amended and Restated 2000 Graham Corporation Incentive
    Plan to Increase Shareholder Value, or a successor plan thereto
    (the “Incentive Plan”), and will be subject to the
    terms thereof.
	 
	
		
    Options.
	 
	
		
    Unless the Committee determines otherwise, Options will be
    issued with an exercise price equal to the Fair Market Value (as
    such term is defined by the Incentive Plan) of a share of
    Company common stock on the date of grant, with a term of ten
    years, and 

 

			
	
		
    will vest over three years, 33.33% percent per year, beginning
    with the first anniversary of the date of grant.
	 
	
		
    The number of Options to be issued to an eligible employee for a
    Fiscal Year will be determined by multiplying 50 percent
    (or such other percentage as may be determined by the Committee)
    of the eligible employee’s base salary in effect for the
    Fiscal Year by such employee’s Target L-T Incentive
    Percentage, and then dividing by the Black Scholes value of such
    a stock option on the date of determination, rounded to the
    nearest whole number.
	 
	
		
    Each employee’s Target L-T Incentive Percentage is set
    forth on Exhibit A hereto, and for a given Fiscal Year is
    subject to amendment by the Committee prior to the commencement
    of such Fiscal Year.
	 
	
		
    Time-Vested Restricted Stock.
	 
	
		
    Unless the Committee determines otherwise, Time-Vested
    Restricted Stock will vest as follows: 50 percent of the
    shares on the second anniversary of the date of grant and the
    remaining 50 percent on the fourth anniversary of the date
    of grant.
	 
	
		
    The number of shares of Time-Vested Restricted Stock to be
    issued to an eligible employee for a Fiscal Year will be
    determined by multiplying 50 percent (or such other
    percentage as may be determined by the Committee) of the
    eligible employee’s base salary in effect for the Odd
    Fiscal Year by such employee’s Target L-T Incentive
    Percentage, and then dividing by the value of a share of stock
    on the date of determination, rounded to the nearest whole
    number.
	 
	
		
    Performance-Vested Restricted Stock.
	 
	
		
    Unless the Committee determines otherwise, Performance-Vested
    Restricted Stock will vest on the third anniversary of the date
    of grant, depending on the satisfaction of the performance goal
    matrixes for the three-year period commencing with the Fiscal
    Year, which matrixes will be determined by the Committee and
    announced prior to the commencement of such Fiscal Year. In
    determining the performance for the three-year period commencing
    with a Fiscal Year, the Committee shall have the discretion to
    include or exclude any extraordinary events that positively or
    negatively affected the Company’s financial performance for
    the Fiscal Year.
	 
	
		
    The number of shares of Performance-Vested Restricted Stock to
    be issued to an eligible employee for a Fiscal Year will be
    determined by multiplying 50 percent (or such other
    percentage as may be determined by the Committee) of the
    eligible employee’s base salary in effect for the Fiscal
    Year by such employee’s Target L-T Incentive Percentage,
    and then dividing by the value of a share of stock on the date
    of determination, rounded to the nearest whole number.
	 
	
		
    Effect of Certain Events.
	 
	
		
    Notwithstanding any other provision of the Plan, the following
    terms shall apply to all Options and Restricted Stock awarded
    under the Plan:

 

 

			
	
		

    • Upon the Retirement of an eligible employee, any
    outstanding Option awarded under the Plan will vest in full, and
    all outstanding Options may be exercised by the eligible
    employee at any time prior to their respective ten-year
    expiration dates. For purposes of the Plan,
    “Retirement” shall mean a voluntary separation from
    service by an eligible employee who is at least age 62 and
    who has been employed by the Company on a full-time basis for
    ten or more years.

	 
	
		

    • Upon the date that an employee becomes eligible for
    Retirement, a portion of the employee’s outstanding
    Restricted Stock awarded under the Plan will immediately vest in
    full. Such portion shall be the number of shares with a Fair
    Market Value on such date equal to the minimum tax required to
    be withheld by the Company on the Fair Market Value of all
    outstanding Restricted Stock awarded under the Plan on such
    date. The Company shall deduct and apply the shares that so vest
    to cover the tax withholding on the Fair Market Value of all
    outstanding Restricted Stock awarded under the Plan on such date
    that are taxable as a result of the employee becoming eligible
    for Retirement.

	 
	
		

    • Upon the Retirement of an eligible employee, any
    outstanding Time-Vested Restricted Stock awarded under the Plan
    will vest in full, and any outstanding Performance-Vesting
    Restricted Stock will vest pro-rata based on the satisfaction of
    the applicable performance goals through the end of the quarter
    immediately preceding the date of Retirement.

	 
	
		

    • Upon the death of an eligible employee, any
    outstanding Options and Time-Vested Restricted Stock awarded
    under the Plan will vest in full, and any Options may be
    exercised by the eligible employee’s designated
    beneficiary, estate or heir, as applicable, within one year from
    the date of the eligible employee’s death, and any
    outstanding Performance-Vesting Restricted Stock will vest
    pro-rata based on the satisfaction of the applicable performance
    goals through the end of the quarter immediately preceding the
    date of death.

	 
	
		

    • Upon the Disability (as such term is defined by the
    Incentive Plan) of an eligible employee, any outstanding Options
    and Time-Vested Restricted Stock awarded under the Plan will
    vest in full, and any Options may be exercised by the eligible
    employee or his legal representative within one year from the
    date of the eligible employee’s Disability, and any
    outstanding Performance-Vesting Restricted Stock will vest
    pro-rata based on the satisfaction of the applicable performance
    goals through the end of the quarter immediately preceding the
    date of Disability.

	 
	
		

    • Except as otherwise provided by the Plan or by the
    Committee, the unvested portion of any Options and Restricted
    Stock awarded under the Plan will terminate upon the termination
    or resignation of an eligible employee’s employment, and
    any vested Options may be exercised by the eligible employee
    within three months from the date of the eligible
    employee’s termination.

 

 

			
	
		

    • Unless the Committee determines otherwise, upon the
    termination of an eligible employee for cause (as such term
    shall be defined by the Committee), the vested and unvested
    portion of all unexercised Options and the unvested portion of
    all Restricted Stock awarded under the Plan will terminate, and
    no such Options will be exercisable thereafter.

	 
	
    Payment 		
    Annual awards for a Fiscal Year will be approved by the
    Committee prior to the commencement of the Fiscal Year and will
    be issued as soon as practicable after approval.
	 
	
    Section 409A 		
    The Plan, and the Options and Restricted Stock awarded
    thereunder, are intended to qualify for an exemption from
    Section 409A of the Internal Revenue Code of 1986, as
    amended, and the treasury regulations promulgated and other
    official guidance issued thereunder, and shall be administered
    and interpreted consistent with such intention.
	 
	
    Amendment & Termination 		
    The Plan may be amended or terminated by the Committee at any
    time. No eligible employee will have any right to an award under
    the Plan until such award is approved by the Committee.
	 
	
		
    Neither the existence of the Plan nor the grant of an award in
    any year shall give an eligible employee any right to an award
    or similar award in future years or any right to continue such
    eligible employee’s employment relationship with the
    Company. All eligible employees shall remain subject to
    discharge to the same extent as if the Plan were not in effect.

 

    EXHIBIT A

    

 

    TARGET
    L-T INCENTIVE PERCENTAGES

 

	 	 	 	 	 	 
	
    Position
	
 
	
 
	
    Target L-T Incentive
    %
	
 

	

    President and Chief Executive Officer

	
 
	
 
	
 
	
    35
	
    %

	

    Vice President, Finance and Administration and Chief Financial
    Officer

	
 
	
 
	
 
	
    35
	
    %

	

    Vice President of Operations

	
 
	
 
	
 
	
    35
	
    %

	

    Chief Accounting Officer

	
 
	
 
	
 
	
    25
	
    %

	
 
	
 
	
 
	
 
	
 
	
 

 

    Notwithstanding the foregoing, the Committee shall have the
    discretion to specify a different Target L-T Incentive
    Percentage for a given position or employee for a given Fiscal
    Year.

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