Document:

exv10w39

EXHIBIT 10.39

CSS INDUSTRIES, INC.

1845 WALNUT STREET

SUITE 800

PHILADELPHIA, PA 19103-4755

(215) 569-9900

FAX (215) 569-9979

EXECUTIVE OFFICE

March 30, 2010

Personal and Confidential

Mr. Clifford E. Pietrafitta

8 Brooks Road

Moorestown, NJ 08057

          Re: Separation Agreement and Release of Claims

Dear Cliff:

     This letter agreement (the “Agreement”) confirms our discussions regarding your separation
from employment with CSS Industries, Inc. (the “Company” or “CSS”) effective March 30, 2010 (the
“Separation Date”). You acknowledge that this Agreement constitutes the entire agreement and
understanding between you and the Company relating to your separation from employment and
post-employment severance and benefits. There are no other valid oral or written agreements
relating to the separation of your employment and post-employment severance and benefits, except as
expressly provided in this Agreement.

     In connection with the separation of your employment, the Company is offering you severance
payments (the “Severance Payments”), medical and dental benefits (“Medical Benefits”), and
outplacement services (“Outplacement Services”) (collectively, the “Severance Benefits”), subject
to the terms and conditions specified in this Agreement. You should read this Agreement carefully
and consult with an attorney prior to signing this Agreement or the General Release of Claims
(“Release”) attached to this Agreement.

     We have agreed as follows:

     1. Effective on the Separation Date you will resign from each and every position you presently
hold with the Company, including without limitation any position as an officer, director, trustee
or otherwise. At the Company’s request, from time to time and to the extent the Company deems the
same necessary, you will promptly execute and deliver separate forms of resignations from each of
these positions.

     2. The Company will not pay Severance Payments, and will not provide Medical Benefits and
Outplacement Services, if the Company determines that you engaged in any actions defined as “cause”
under the Company’s then current severance plan applicable to you (even if such determination

 

 

Mr. Clifford E. Pietrafitta

March 30, 2010

Page 2

is made following your Separation Date), or you breach any term of your Release, this Agreement, or
other agreement relating to your employment. You acknowledge that if you have outstanding any
debt, obligation or other liability representing an amount owed to the Company or its affiliates,
including amounts owed on Company credit cards, then any Severance Benefits you are otherwise
entitled to receive may be offset by such outstanding amounts.

          If you abide by and satisfy the terms and conditions set forth in this Agreement, including
without limitation executing, delivering and not revoking the attached Release to the Company in
accordance with Paragraph 6 hereof, the Company will pay Severance Payments, and provide Medical
Benefits and Outplacement Services, subject to the provisions of this Agreement, as follows:

          a) Severance Payments. You shall receive Severance Payments of Five Thousand Seven
Hundred Forty-Six Dollars and Fifteen Cents ($5,746.15) per week, for a period of Fifty-Two (52)
weeks, as measured from your Separation Date (the “Severance Period”). If you satisfy the terms
and conditions set forth in this Agreement, including the execution and nonrevocation of the
Release, the first payment, which will cover the first thirty days of your severance, will be paid
to you in a lump sum cash payment on the first Company pay date for executives that occurs after
the thirtieth (30th) day following the Separation Date, and the remaining installments will be paid
to you on each successive pay date for executives in accordance with the Company’s normal payroll
practices for the remainder of the Severance Period. Each installment of the Severance Payments
will be subject to and reduced by any requisite tax withholdings and any other then-applicable
payroll deductions. If you are rehired by the Company or any of its affiliates, and the Severance
Payments you received exceeds the income you would have received if you had been working for the
Company between your Separation Date and date of rehire, you will be required to return the excess
amount to the Company.

          b) Medical Benefits. If you are eligible under the Consolidated Omnibus Budget
Reconciliation Act (“COBRA”) to receive continuing medical and dental benefits under the
Company-sponsored medical and dental benefit plans after your employment ends, and you elect health
care continuation coverage under COBRA following the termination of your employment, the Company
will pay for a portion of the monthly COBRA premium, on the same basis as the Company pays for a
portion of such coverage for active employees, for the period Severance Payments are paid to you
hereunder; provided, that in order to receive such continued coverage at such premium rates
pursuant to this Agreement, you must pay to the Company, at the same time that COBRA premium
payments are due for the month, an amount equal to the full monthly COBRA premium payment required
for such monthly coverage and the Company will reimburse to you the amount of such monthly premium,
less the amount that you would have been required to pay for such coverage if you were employed by
the Company at such time (the “Health Payment”). In addition, on each such date on which the
monthly Health Payment is paid to you, the Company will pay to you an additional amount equal to
the federal, state and local income and payroll taxes that you incur on the monthly Health Payment
(the “Health Gross-Up Payment”). Your entitlement to the Health Payment and the Health Gross-Up
Payment will continue until the earlier to occur of (i) the end of the Severance Period, (ii) you
cease to receive the Severance
Payments, or (iii) you do not pay the full monthly premium for COBRA coverage. If you satisfy
the

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Mr. Clifford E. Pietrafitta

March 30, 2010

Page 3

terms and conditions set forth in this Agreement, including the execution and nonrevocation of
the Release and the conditions of this subparagraph, the first payment, which will cover the Health
Payment and Gross-Up Payment for the monthly premiums you paid prior to such date, will be paid to
you in a lump sum cash payment on the first Company pay date for executives that occurs after the
thirtieth (30th) day following the Separation Date, and the remaining Health Payments
and Gross-Up Payments, for the remainder of the period you are entitled to these payments pursuant
to this subparagraph, will be paid to you on the pay date for executives that occurs after the
monthly premium is paid by you. Each Health Payment and Health Gross-Up Payment will be subject to
and reduced by any requisite tax withholdings and any other then-applicable payroll deductions.
You will receive a letter describing in greater detail your eligibility for the continuation of
your medical and dental benefits under COBRA. By signing this Agreement, you agree that the
Company may deduct your portion of the post-employment premiums from your Severance Payments.

          c) Outplacement Services. The Company will provide you with certain outplacement
services to be provided by an outplacement consulting firm to be selected and engaged by the
Company, and such firm will inform you as to the terms and limits of these services.

     3. Your rights with respect to any outstanding equity compensation awards, including without
limitation stock option awards and restricted stock unit awards (collectively, “Equity Grants”),
made to you by the Company will terminate in accordance with the terms of the applicable plan and
award documents or agreements. If you were previously provided any Equity Grants under either CSS’
1994 Equity Compensation Plan or CSS’ 2004 Equity Compensation Plan, all of your outstanding Equity
Grants that (i) are exercisable as of your Separation Date shall remain exercisable for the ninety
(90) day period following your Separation Date (or the remaining term thereof, if shorter) and
shall terminate at the end of such period, and (ii) are not exercisable as of your Separation Date
shall immediately terminate as of your Separation Date.

     4. The Severance Benefits described in this Agreement constitute the entire compensation that
will be payable to you by the Company under this understanding or otherwise. Following the
Separation Date, except as expressly provided herein or pursuant to the terms of any benefits plans
of the Company (other than severance plans) that provide benefits or payments to former employees
according to their terms, you will not be entitled or eligible to receive any form of compensation
from or on behalf of Company, including by way of illustration, but not of limitation, salary,
bonus, profit sharing contribution, automobile allowance and accrued vacation pay. Notwithstanding
the foregoing, you will be paid (regardless of whether or not you accept this Agreement and sign
and deliver the attached Release) for any vacation time that has been earned, accrued and unused as
of the Separation Date.

      5. You and the Company agree as follows:

          a) Except as may be required by law, you agree that you shall at all times maintain the confidentiality of and shall not disclose to any third party (including current and former
employees of

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Mr. Clifford E. Pietrafitta

March 30, 2010

Page 4

the Company or its affiliates) the terms of this Agreement. The foregoing shall not
be construed to prohibit disclosure of this Agreement to your attorney, accountant or members of
your immediate family, provided that such individuals maintain the confidentiality of this
Agreement.

          b) You agree that as of the Separation Date you will surrender possession to the Company of
all Company keys, all Company documents, all Company credit cards and all other Company property
that at any time was in your possession and control.

          c) You recognize and acknowledge that by reason of your employment by and service to the
Company you have had access to confidential information of the Company and its affiliates. This
includes, without limitation, information and knowledge pertaining to products and services
offered, inventions, innovations, designs, ideas, plans, trade secrets, proprietary information,
manufacturing, packaging, advertising, distribution and sales methods and systems, sales and profit
figures, customer and client lists, and relationships between the Company and its affiliates and
dealers, distributors, wholesalers, customers, clients, suppliers and others who have business
dealings with the Company and its affiliates (“Confidential Information”). You acknowledge that
such Confidential Information is a valuable and unique asset. You must not at any time disclose
any such Confidential Information to any person for any reason whatsoever without the prior written
authorization of the undersigned, or the undersigned’s successor or designee, unless such
information is in the public domain through no fault of your own, and except as may be required by
law, and you acknowledge and agree that the Company’s continued provision to you of any Severance
Benefits described in this Agreement is contingent upon your full, complete and ongoing fulfillment
of all of your covenants that you have made in favor of CSS, including without limitation the
foregoing covenant regarding Confidential Information.

          d) You recognize and acknowledge that the covenants set forth in this Paragraph 5 are
independent of and do not affect the efficacy of any covenants that you have made in favor of CSS,
the Company, and/or any of their respective affiliates, including without limitation any covenants
set forth in any Non-Disclosure and Non-Competition Agreements you may have executed with CSS
(which shall continue to apply in all respects, unless specifically inconsistent with the terms of
this Agreement).

     6. You must sign and deliver this Agreement and the attached Release to the Company’s Human
Resources Department within twenty-one (21) days after your Separation Date. By signing the
Release and delivering it to the Company, you will waive all claims that you may have against the
Company and its affiliates, excepting only a claim for non-receipt of any Severance Benefits to
which you may be entitled under this Agreement. You are advised to consult with an attorney of
your choice before signing and returning the Release.

          You will have the right to revoke the Release, at any time within seven (7) days after you
have signed and returned this Agreement and the Release to the Company’s Human Resources Department
(the “Revocation Period”). If you exercise your right to revoke the Release, this Agreement
will be void, you will not be entitled to any Severance Benefits, and upon demand you will pay
back to the Company the full amount of any Severance Benefits which were paid to you or for your
benefit

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Mr. Clifford E. Pietrafitta

March 30, 2010

Page 5

under this Agreement.

     7. This Agreement shall be governed by and construed in accordance with the substantive laws
of the Commonwealth of Pennsylvania. If any portion of the Release is found to be legally invalid
and/or unenforceable, this entire Agreement shall be voidable in its entirety, at the sole
discretion of the Company. In the event the Company exercises its right to void this Agreement as
just described, you will not be entitled to receive any Severance Benefits.

     8. The provisions of this Agreement may be amended or modified only with the written agreement
of the Company. The Company shall not be deemed to have waived any provision of this Agreement
unless expressly waived by the Company in writing.

     9. You represent and acknowledge that:

     a) The Company has advised you to consult with an attorney as to this Agreement and
the Release prior to signing these documents;

     b) The Severance Benefits provided to you under this Agreement are subject to
applicable taxes and withholdings, and neither the Company nor any of its affiliates makes
or has made any representation, warranty or guarantee of any federal, state or local tax
consequences of your receipt of any benefit or payment hereunder, including, but not limited
to, under Section 409A of the Internal Revenue Code of 1986, as amended, and the Company may
withhold from all amounts payable to you under this Agreement such amounts that are
necessary to satisfy the Company’s withholding obligations to you, and you are solely
responsible for all taxes that result from your receipt of the amounts payable to you under
this Agreement; and

     c) You have read and fully understand the terms and conditions of this Agreement and
acknowledge that your execution of this Agreement constitutes your voluntary act and will.

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Mr. Clifford E. Pietrafitta

March 30, 2010

Page 6

     If this Agreement accurately and completely describes our mutual understanding, please
indicate your acceptance of this Agreement by signing below and returning this Agreement to me
within twenty-one (21) days after your last day of employment.

	 	 	 	 	 	 	 

	 	 	Sincerely,	 	 
	 
	 	 	 	 	 	 
	 	 	CSS Industries, Inc. (“Company”)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Christopher J. Munyan
 

Christopher J. Munyan
	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	Witness to Employee’s Signature:

	 	 	 	Agreed and Accepted:	 	 

	 	 	 	 	 	 	 	 	 

	/s/ Candice B. Cohen
 

Witness signature

	 	 
	 	By:

Name:
	 	/s/ Clifford E. Pietrafitta
 

Clifford E. Pietrafitta
	 	 
	 
	 	 	 	 	 	 	 	 
	Print Name: Candice B. Cohen

	 	 	 	Date:
	 	4/14/10	 	 

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ATTACHMENT

GENERAL RELEASE OF CLAIMS

     I agree to and hereby do, intending to be legally bound, release and forever discharge Paper
Magic Group, Inc., and its parent, affiliates, and related companies, their past, present and
future officers, directors, attorneys, employees, shareholders and agents and their respective
successors and assigns (jointly and severally, the “Company”) from any and all actions, charges,
causes of action or claims of any kind, known or unknown, which I, my heirs, agents, successors or
assigns ever had, now have or hereafter may have against the Company arising out of any matter,
occurrence or event existing or occurring prior to my signing of this release, including without
limitation any claim relating to or arising out of my employment with and/or termination of
employment by the Company, any claim of discrimination based on age, sex, race, religion, color,
creed, disability, citizenship, national origin or any other factor prohibited by federal, state or
local law (including any claims under the Age Discrimination in Employment Act (“ADEA Rights”),
Title VII of the Civil Rights Act of 1964, the Americans With Disabilities Act (“ADA”), the
Employment Retirement Security Act of 1974 (“ERISA”), The Pennsylvania Human Relations Act, the
Pennsylvania Equal Pay Law or The Pennsylvania Wage Payment and Collection Law), any claim for
breach of contract, and/or any common law claim such as libel, slander, fraud, promissory estoppel,
equitable estoppel, misrepresentation or wrongful discharge. Excluded from this general release are
only: (i) any claim which I may have against the Company for non-payment of the Severance
Payments, Medical Benefits, and/or Outplacement Services due to me under the terms of the attached
Agreement between the Company and me; and (ii) any claim which arises out of any matter, occurrence
or event occurring exclusively after I sign and return this Release.

     I agree to the terms in this Release and understand them. I acknowledge that the Company has
advised me to consult with an attorney concerning the effect of this general release. I
acknowledge that I have been told by the Company that I will receive no payments under the attached
Agreement, or any other consideration, if I do not execute this general release of all claims and
deliver it to the Company no later than twenty-one (21) days after my last day of employment with
the Company. I also understand that I have seven (7) days after signing and delivering this
general release to revoke it, in which case the Company will have no obligation to me under the
terms of the attached Agreement. I acknowledge that I have been told by the Company that I will
receive no payments or any other consideration under the attached Agreement if at any time after I
sign this general release I revoke it, or if the general release does not remain in full force and
effect.

	 	 	 	 	 

	Employee’s Signature:

	 	/s/ Clifford E. Pietrafitta
 

Clifford E. Pietrafitta
	 	Date: 4/14/10 
	 
	Witness Signature:

	 	/s/ Candice B. Cohen
 

	 	Date: 4/15/10 
	Print Name: Candice B. Cohen	 	 

- 7 -exv10w40

EXHIBIT 10.40

CONSULTING AGREEMENT

          THIS CONSULTING AGREEMENT (the “Agreement”) is made as of this 15th day of April, 2010 between
CSS INDUSTRIES, INC. (“CSS”) and CLIFFORD E. PIETRAFITTA (“Consultant”).

          WHEREAS, CSS desires to have professional services performed by Consultant on the terms and
conditions hereinafter set forth; and

          WHEREAS, Consultant desires to perform professional services for CSS upon the terms and
conditions hereinafter set forth;

          NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows:

     1. Engagement as Consultant; Independent Contractor.

          (a) CSS hereby retains Consultant to provide assistance to CSS as specifically provided in
this Agreement. Consultant shall at all times act hereunder as an independent contractor and
nothing herein shall be deemed to create or imply, nor shall Consultant represent himself to be, an
employee or agent of CSS or any of its affiliated entities.

          (b) Consultant represents and covenants to CSS that he is not subject or a party to any
employment agreement, non-competition covenant, understanding or restriction which would prohibit
Consultant from executing this Agreement and performing his duties and responsibilities hereunder.

     2. Consultant Term. The term of this Agreement (the “Term”) shall commence on April
1, 2010 and shall continue until June 30, 2011. In addition, this Agreement shall terminate in
accordance with Section 9 hereof.

     3. Duties and Responsibilities. During the Term, Consultant may provide assistance on
certain projects relating to CSS matters that may be specifically assigned to Consultant from time
to time in writing by CSS’ President, or such individual’s designees or successors (the “CSS
Representative”). The parties acknowledge and agree that Consultant shall provide only the
services specifically requested by the CSS Representative in writing, and that nothing herein shall
constitute a commitment that CSS shall request Consultant to provide any consulting services, or
any minimum quantity of consulting services, from Consultant during the Term.

     4. Extent of Service. During the Term, Consultant agrees to use his best efforts to
carry out his duties and responsibilities under Section 3 hereof.

     5. Compensation. For all the services rendered by Consultant hereunder, Consultant
shall be entitled to compensation at a rate of One Thousand Six Hundred Dollars ($1,600.00) per day
for each day that Consultant works at least eight (8) hours performing his duties and
responsibilities under Section 3 hereof. For each day in which Consultant works less than eight
(8) hours performing his duties and responsibilities under Section 3 hereof, Consultant shall be
entitled to compensation at a rate

 

 

of Fifty Dollars ($50.00) for each fifteen (15) minutes worked by Consultant hereunder.
Notwithstanding any provision in this Agreement to the contrary, Consultant shall not be entitled
to any compensation for his time spent traveling to or from his primary or secondary residence,
except for any specific time during the course of such travel that Consultant performs substantive
work hereunder, and then only in accordance with the terms set forth in the first two sentences of
this Section 5. In addition, Consultant will be compensated for all reasonable expenses incurred
by him with the prior written approval of the CSS Representative, which compensation shall be paid
to Consultant upon receipt of a statement of services submitted by Consultant. CSS shall pay
Consultant upon receipt of a statement of services submitted by Consultant on a monthly basis.

Notwithstanding any provision in this Agreement to the contrary, CSS and Consultant agree that so
long as this Agreement is not terminated by CSS for “cause” pursuant to Section 9(c) hereof,
Consultant shall be eligible to receive a minimum payment hereunder in an amount equivalent to
Seventy-Five Thousand Dollars ($75,000.00) (the “Minimum Payment Commitment”), which shall be
calculated and paid as set forth in the last sentence of this paragraph. For purposes of
clarifying the immediately preceding sentence, CSS and Consultant agree that if this Agreement is
terminated by CSS pursuant to Section 9(a), 9(b) or 9(d) hereof, Consultant still shall be eligible
to receive the Minimum Payment Commitment. If on each of April 30, 2011, May 30, 2011 and June 30,
2011 the aggregate amount owed and/or paid to Consultant hereunder for actual services provided by
Consultant hereunder during such applicable month does not equal or exceed one-third of the Minimum
Payment Commitment, then Consultant shall invoice CSS, and CSS shall pay Consultant, for such
difference; provided, however, that such amount shall be reduced by and to the extent of any
earnings and other compensation received by Consultant or accrued for Consultant’s benefit (whether
as an employee or as an independent contractor) during such period.

     6. Assignment of Intellectual Property.

In this Agreement, “Intellectual Property” means all works, including literary, pictorial, graphic,
sculptural, and architectural work, works of visual art, and other work that may be the subject of
copyright protection; advertising and marketing ideas and concepts; information; data; formulae;
designs; models; drawings and sketches; computer programs, including all written instructions
therefor and documentation thereof; design specifications; flowcharts; trade secrets; and any
inventions, including all processes, machines, manufactures and compositions of matter and any
other invention that may be the subject of patent protection, and all statutory protection obtained
or obtainable thereon.

Consultant hereby assigns to CSS all right, title and interest in and to all Intellectual Property
created by Consultant in connection with his services to CSS, including all copyrights, and
Consultant agrees that the ownership of same will vest solely in CSS. All Intellectual Property so
created by Consultant which is copyrightable, whether or not “work made for hire” under the U.S.
Copyright Act of 1976, as amended, will vest solely in CSS. As to copyrights, this assignment will
be effective for the entire scope and duration of the copyrights and will specifically include all
rights to derivative works. Consultant waives all rights of attribution and integrity for specific
works created by Consultant as to all marketing, advertising, and commercial uses thereof.
Consultant agrees promptly to execute, without charge, all declarations, assignments and other
documents reasonably required by CSS to perfect CSS’ right, title and interest in and to all
Intellectual Property.

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     7. Confidential Information. Consultant recognizes and acknowledges that by reason of
his rendering services to CSS, he has had and will continue to have access to confidential
information of CSS and its affiliates, including, without limitation, information and knowledge
pertaining to products and services offered, inventions, innovations, designs, ideas, plans, trade
secrets, proprietary information, advertising, distribution and sales methods and systems, sales
and profit figures, customer and client lists, and relationships between CSS and its affiliates and
dealers, distributors, wholesalers, customers, clients, suppliers and others who have business
dealings with CSS and its affiliates (“Confidential Information”). Consultant acknowledges that
such Confidential Information is a valuable and unique asset and covenants that he will not, either
during or after the term of this Agreement, disclose any such Confidential Information to any
person for any reason whatsoever without the prior written authorization of the CSS Representative,
unless such information is in the public domain through no fault of Consultant or except as may be
required by law.

     8. Equitable Relief.

     (a) Consultant acknowledges that the restrictions contained in Sections 6 and 7 hereof are
reasonable and necessary to protect the legitimate interests of CSS and its affiliates, that CSS
would not have entered into this Agreement in the absence of such restrictions, and that any
violation of any provision of those Sections will result in irreparable injury to CSS. Consultant
represents and acknowledges that (i) he has been advised by CSS to consult his own legal counsel in
respect of this Agreement, and (ii) that he has had full opportunity, prior to execution of this
Agreement, to review, prior to execution of this Agreement, thoroughly this Agreement with his
counsel.

     (b) Consultant agrees that CSS shall be entitled to preliminary and permanent injunctive
relief, without the necessity of proving actual damages, as well as an equitable accounting of all
earnings, profits and other benefits arising from any violation of Sections 6 or 7 hereof, which
rights shall be cumulative and in addition to any other rights or remedies to which CSS may be
entitled. In the event that any of the provisions of Sections 6 or 7 hereof should ever be
adjudicated to exceed the time, geographic, product or service, or other limitations permitted by
applicable law in any jurisdiction, then such provisions shall be deemed reformed in such
jurisdiction to the maximum time, geographic, product or service, or other limitations permitted by
applicable law.

     (c) Consultant irrevocably and unconditionally (i) agrees that any suit, action or other legal
proceeding arising out of this Agreement, including without limitation, any action commenced by CSS
for preliminary and permanent injunctive relief and other equitable relief, may be brought in the
United States District Court for the Eastern District of Pennsylvania, or if such court does not
have jurisdiction or will not accept jurisdiction, in any court of general jurisdiction in
Philadelphia County, Pennsylvania, (ii) consents to the non-exclusive jurisdiction of any such
court in any such suit, action or proceeding, and (iii) waives any objection which Consultant may
have to the laying of venue of any such suit, action or proceeding in any such court. Consultant
also irrevocably and unconditionally consents to the service of any process, pleadings, notices or
other papers in a manner permitted by the notice provisions of Section 12 hereof.

     (d) Consultant agrees that he will provide, and that CSS may similarly provide, a copy of
Sections 6 and 7 of this Agreement to any business or enterprise (i) which he may directly or
indirectly own, manage, operate, finance, join, control or participate in the ownership,
management, operation,

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financing, control or control of, or (ii) with which he may be connected with as an officer,
director, employee, partner, principal, agent, representative, consultant or otherwise, or in
connection with which he may use or permit his name to be used.

     9. Termination. This Agreement shall terminate prior to the expiration of its Term
set forth in Section 2 above upon the occurrence of any one of the following events:

          (a) Disability. In the event that Consultant is unable fully to perform his duties
and responsibilities hereunder to the full extent required by the CSS Representative by reason of
illness, injury or incapacity for one (1) week, this Agreement may be immediately terminated by
CSS, and CSS shall have no further liability or obligation to Consultant for compensation
hereunder.

          (b) Death. In the event that Consultant dies during the Term, CSS shall pay to his
executors, legal representatives or administrators an amount equal to the compensation earned by
Consultant at the date of death, and thereafter CSS shall have no further liability or obligation
hereunder to his executors, legal representatives, administrators, heirs or assigns or any other
person claiming under or through him.

          (c) Cause. Nothing in this Agreement shall be construed to prevent its termination
immediately by CSS at any time for “cause”. For purposes of this Agreement, “cause” shall mean
failure of Consultant to perform or observe any of the material terms or provisions of this
Agreement or to comply fully with the lawful directives of the CSS Representative, dishonesty,
misconduct, conviction of a crime involving moral turpitude, substance abuse, misappropriation of
funds, disparagement of CSS (or its management or employees), or other proper cause. CSS’
liability, if any, for payments to Consultant by virtue of any wrongful termination of Consultant’s
consulting relationship pursuant to this Agreement shall be reduced by and to the extent of any
earnings received by or accrued for the benefit of Consultant during any unexpired part of the
Term.

          (d) Without Cause. Notwithstanding any provision in this Agreement to the contrary,
CSS may terminate this Agreement at any time for any reason by providing the Consultant with thirty
(30) days prior written notice of CSS’ intent to terminate this Agreement.

     10. Survival. Notwithstanding the termination of this Agreement by reason of either
Consultant’s disability under Section 9(a), for cause under Section 9(c) or without cause under
Section 9(d), his obligations under Sections 6 and 7 hereof shall survive and remain in full force
and effect for the periods therein provided, and the provisions for equitable relief against
Consultant in Section 8 hereof shall continue in force.

     11. Governing Law. This Agreement shall be governed by and interpreted under the laws
of the Commonwealth of Pennsylvania without giving effect to any conflict of laws provisions.

     12. Notices. All notices and other communications required or permitted hereunder or
necessary or convenient in connection herewith shall be in writing and shall be deemed to have been
given when hand delivered or mailed by registered or certified mail, as follows (provided that
notice of change of address shall be deemed given only when received):

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If to CSS, to:

CSS Industries, Inc.

1845 Walnut Street, Suite 800

Philadelphia, PA 19107

Attention: President

with a copy to:

CSS Industries, Inc.

1845 Walnut Street, Suite 800

Philadelphia, PA 19107

Attention: Vice President – Legal and Human Resources

If to Consultant, to:

Clifford E. Pietrafitta

8 Brooks Road

Moorestown, NJ 08057

or to such other names or addresses as CSS or either Consultant, as the case may be, shall
designate by notice to each other person entitled to receive notices in the manner specified in
this Section.

     13. Contents of Agreement; Amendment and Assignment.

          (a) This Agreement supersedes all prior agreements and sets forth the entire understanding
among the parties hereto with respect to the subject matter hereof and cannot be changed, modified,
extended or terminated except upon written amendment approved by CSS and executed on its behalf by
a duly authorized officer. Without limitation, nothing in this Agreement shall be construed as
giving Consultant any right to render services to CSS beyond the expiration of the Term.

          (b) All of the terms and provisions of this Agreement shall be binding upon and inure to the
benefit of and be enforceable by the respective heirs, executors, administrators, legal
representatives, successors and assigns of the parties hereto, except that the duties and
responsibilities of Consultant hereunder are of a personal nature and shall not be assignable or
delegatable in whole or in part by Consultant.

     14. Severability. If any provision of this Agreement or the application thereof to
any person or circumstance is held invalid, the remainder of this Agreement, and the application of
such provision to other persons or circumstances, shall not be affected thereby, and to this end
the provisions of this Agreement are declared to be severable.

     15. Remedies Cumulative; No Waiver. No remedy conferred upon CSS by this Agreement is
intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative
and shall be in addition to any other remedy given hereunder or now or hereafter existing at law or
in

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equity. No delay or omission by CSS in exercising any right, remedy or power hereunder or
existing at law or in equity shall be construed as a waiver thereof, and any such right, remedy or
power may be exercised by CSS from time to time and as often as may be deemed expedient or
necessary by CSS in its sole discretion.

     16. Compliance with Business Conduct Guidelines. Consultant shall comply in good
faith with the CSS “Business Conduct Guidelines”, a copy of which is attached to this Agreement as
Exhibit “A” and incorporated herein by reference.

     17. Miscellaneous. All section headings are for convenience only. This Agreement may
be executed in several counterparts, each of which is an original.

     IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have executed this
Agreement, or causes this Agreement to be executed, as of the date first above written.

	 	 	 	 	 	 	 

	 	 	CSS INDUSTRIES, INC. (“CSS”)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Christopher Munyan
 

Christopher Munyan
	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Clifford E. Pietrafitta
 

Clifford E. Pietrafitta (“Consultant”)
	 	 

6

 

EXHIBIT “A”

BUSINESS CONDUCT GUIDELINES

I. Background

The reputation and integrity of CSS Industries, Inc., its subsidiaries and its affiliates (“CSS”),
are valuable assets of CSS. CSS expects that each CSS business partner will be responsible for
conducting its business in a manner that demonstrates a commitment to the highest standards of
integrity. These Guidelines have been developed to assist CSS business partners meet these
standards. While these Guidelines are designed to provide helpful guidelines, it is not intended
to address every specific situation. Therefore, dishonest conduct, conduct constituting moral
turpitude or conduct that is illegal will constitute a violation of these Guidelines, regardless of
whether such conduct is specifically referenced in these Guidelines.

II. Overview

CSS expects each of its business partners to comply with all applicable governmental laws, rules
and regulations and at all times to observe honest and ethical conduct in the course of its
business activities and in the performance of its duties and obligations to CSS.

III. Compliance With Law

All CSS business partners are expected to comply with all applicable laws, rules and regulations,
including securities, banking and antitrust laws, as well as rules and regulations adopted under
such laws. Examples of criminal violations under these laws include:

	•	 	stealing, embezzling or misapplying corporate or bank funds;

	•	 	using threats, physical force or other unauthorized means to collect money;

	•	 	making false entries in its books and records, or engaging in any conduct that results in
the making of such false entries;

	•	 	making a payment for an expressed purpose to an individual who intends to use it for a
different purpose;

	•	 	utilizing CSS funds or other assets or services to make a political contribution or
expenditure;

	•	 	failing to comply with the letter and spirit of all antitrust laws relating to CSS; and

	•	 	making payments, whether corporate or personal, of cash or other items of value that are
intended to influence the judgment or actions of political candidates, government officials,
union employees or businesses in connection with any of CSS’ activities.

CSS must and will report all suspected criminal violations to the appropriate authorities for
possible prosecution, and will investigate, address and report, as appropriate, non-criminal
violations.

Compliance with Foreign Corrupt Practices Act (FCPA)

The Foreign Corrupt Practices Act of 1977, as amended (FCPA), makes it a criminal offense to pay,
offer, or give anything of value to a foreign official or employees of a foreign government who
have discretionary authority with the intent to improperly influence the business decisions of
those officials. Foreign persons are covered if they commit an act in furtherance of a bribe while
in the United States, as are U.S. businesses and U.S. nationals making payments wholly outside the
United States. The FCPA is a criminal statute, and provides potentially severe criminal sanctions
for those who fail to comply.

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Neither the CSS business partner, nor any of its employees, representatives or agents, may give, or
promise to give, money or anything of value to an executive, official, or employee of any customer,
government, or its agency, political party (including candidates for political office), or other
organization if it could reasonably be construed as being intended to influence CSS’ or the CSS
business partner’s business relationship with them. Specifically, such payments must not be made
to obtain or retain business or secure any improper advantage. All CSS business partners will
exercise due diligence in selecting its employees and agents, will provide appropriate training for
them, and will monitor their activities to ensure compliance. Further, all CSS business partners
will immediately inform CSS of any alleged or actual violations of the FCPA, and will fully assist
CSS in investigating such allegations and remedying any violations.

IV. Fair Dealing

Each CSS business partner should deal fairly and in good faith with CSS and its employees,
representatives, agents, customers, suppliers, regulators, and other business partners. Neither
the CSS business partner, nor its employees, representatives or agents, may take unfair advantage
of anyone through misrepresentation, inappropriate threats, fraud, abuse of confidential
information or other related conduct.

V. Proper Use of CSS Assets

CSS assets, including information, materials, supplies, time, intellectual property, facilities,
software, and other assets owned or leased by CSS, or that are otherwise in CSS’ possession, may be
used by a CSS business partner, or its employees, representatives or agents, only if specifically
authorized in writing and only for legitimate business purposes. The use of CSS assets without CSS
authorization is prohibited.

VI. Employment/Equal Opportunity

Each CSS business partner will hire, promote, discipline and make all other personnel decisions
without regard to race, color, religion, national origin, age, sex, sexual orientation, disability,
disabled veteran or Vietnam-era veteran status.

VII. Responsibility

Each CSS business partner shall be responsible for the enforcement of, and compliance with, these
Guidelines, including necessary distribution to assure employee knowledge and compliance.

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