Document:

penn_Ex10_3

		
			Exhibit 10.3
		

		
			FIFTH AMENDMENT TO MASTER LEASE
		

		
			THIS FIFTH AMENDMENT TO MASTER LEASE (this “Amendment”) is being entered into on this 19th  day of June, 2018 (the “Effective Date”), by and between Landlord and Tenant, as more fully set forth herein, and shall amend that certain Master Lease, dated November 1, 2013, as amended to the date hereof (collectively, the “Master Lease”), by and among GLP Capital, L.P. (together with its permitted successors and assigns, “Landlord”) and Penn Tenant, LLC (together with its permitted successors and assigns, “Tenant”), pursuant to which Tenant leases certain Leased Property, as further defined in the Master Lease (the “Existing Leased Property”).  Landlord and Tenant each desire to remove certain portions of the Existing Leased Property as identified and defined in Annex A attached hereto and incorporated herein (the “Removed Leased Property”) from the terms, covenants and conditions of the Master Lease.  Capitalized terms used herein and not otherwise defined herein shall have the meaning ascribed to them in the Master Lease.
		

		
			BACKGROUND:
		

		
			WHEREAS, Landlord and Tenant each desire to amend the Master Lease as more fully described herein.
		

		
			NOW, THEREFORE, in consideration of the provisions set forth in the Master Lease as amended by this Amendment, including, but not limited to, the mutual representations, warranties, covenants and agreements contained therein and herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby respectively acknowledged, and subject to the terms and conditions thereof and hereof, the parties, intending to be legally bound, hereby agree that the Master Lease shall be amended as follows:
		

		
			ARTICLE I
		

		
			REMOVAL OF REMOVED LEASED PROPERTY
		

		
			1.1       Exhibit B to the Master Lease is hereby amended to remove the description of the Removed Leased Property as set forth in Annex A attached hereto and incorporated hereby by this reference from the description of the Land.
		

		
			ARTICLE II
		

		
			AMENDMENT TO MEMORANDUM OF LEASE
		

		
			 
		

		
			Landlord and Tenant shall enter into an amendment to any memorandum of lease which may have been recorded in accordance with Article XXXIII of the Master Lease against the Removed Leased Property, in form suitable for recording in the county or other application location in which a Removed Leased Property is located which amendment is pursuant to this Amendment.  Landlord shall pay all costs and expenses of recording any such amendment to memorandum.
		

		
			
		

		
			

		 

 

		

		
			ARTICLE III
		

		
			AUTHORITY TO ENTER INTO AMENDMENT
		

		
			Each party represents and warrants to the other that: (i) this Amendment and all other documents executed or to be executed by it in connection herewith have been duly authorized and shall be binding upon it; (ii) it is duly organized, validly existing and in good standing under the laws of the state of its formation and is duly authorized and qualified to perform this Amendment and the Master Lease, as amended hereby, within the State(s) where any portion of the Leased Property is located, and (iii) neither this Amendment, the Master Lease, as amended hereby, nor any other document executed or to be executed in connection herewith violates the terms of any other agreement of such party.
		

		
			ARTICLE IV
		

		
			MISCELLANEOUS
		

		
			4.1       Brokers.  Tenant warrants that it has not had any contact or dealings with any Person or real estate broker which would give rise to the payment of any fee or brokerage commission in connection with this Amendment, and Tenant shall indemnify, protect, hold harmless and defend Landlord from and against any liability with respect to any fee or brokerage commission arising out of any act or omission of Tenant. Landlord warrants that it has not had any contact or dealings with any Person or real estate broker which would give rise to the payment of any fee or brokerage commission in connection with this Amendment, and Landlord shall indemnify, protect, hold harmless and defend Tenant from and against any liability with respect to any fee or brokerage commission arising out of any act or omission of Landlord.
		

		
			4.2       Costs and Expenses; Fees.  Each party shall be responsible for and bear all of its own expenses incurred in connection with pursuing or consummating this Amendment and the transactions contemplated by this Amendment, including, but not limited to, fees and expenses, legal counsel, accountants, and other facilitators and advisors.
		

		
			4.3       Choice of Law and Forum Selection Clause.  This Amendment shall be construed and interpreted, and the rights of the parties shall be determined, in accordance with the substantive Laws of the State of New York without regard to the conflict of law principles thereof or of any other jurisdiction.
		

		
			4.4       Counterparts; Facsimile Signatures.  This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  In proving this Amendment, it shall not be necessary to produce or account for more than one such counterpart signed by the party against whom enforcement is sought.  Any counterpart may be executed by facsimile signature and such facsimile signature shall be deemed an original.
		

		
			4.5       No Further Modification.  Except as modified hereby, the Master Lease remains in full force and effect.
		

		
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			IN WITNESS WHEREOF, this Amendment has been duly executed and delivered by each of the undersigned as of the date first above written.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						LANDLORD:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						GLP CAPITAL, L.P.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/Brandon J. Moore

				
	
					
						 

					
					
						 

					
					
						Brandon J. Moore

				
	
					
						 

					
					
						 

					
					
						SVP, General Counsel & Secretary

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						TENANT:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						PENN TENANT, LLC

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Penn National Gaming, Inc.

				
	
					
						 

					
					
						 

					
					
						its managing member

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ William J. Fair

				
	
					
						 

					
					
						Name:

					
					
						William J. Fair

				
	
					
						 

					
					
						Title:

					
					
						Executive Vice President and CFO

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			ANNEX A
		

		
			 
		

		
			LEGAL DESCRIPTION REMOVED FROM EXHIBIT B
		

		
			(See attached)
		

		
			 
		

		
			

		 

		

			 

		

 

			

					

						 

					

					

						 

				
	

					

						 

					

					

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						RX252WL

					

					

						Rev. 06/09

				

		

			 

		

		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						Ver. Date 06/22/2016

					
					
						PID    93592

				

		
			 
		

		
			PARCEL     19-WLl
		

		
			WOO/LUC-75-30.70/0.00
		

		
			ALL RIGHT, TITLE AND INTEREST IN FEE SIMPLE
		

		
			IN THE FOLLOWING DESCRIBED PROPERTY 
		

		
			INCLUDING LIMITATION OF ACCESS
		

		
			Grantor/Owner, his heirs, executors, administrators, successors and assigns forever, are hereby divested of any and all abutter’s rights, including access rights in, over and to the within described real estate, including such rights with respect to any highway facility constructed thereon (as used herein, the expression “Grantor/Owner” includes the plural, and words in the masculine include the feminine or neuter).
		

		
			[Surveyor’s description of the premises follows]
		

		
			Situated in the State of Ohio, County of Lucas, City of Toledo, River Tract 85, U.S. Reserve T3, being part of a tract of land conveyed to GLP Capital, L.P as described in instrument number 201401080000326 in the Lucas County Recorder’s Office and being more specifically described as follows:
		

		
			Being a parcel lying on the west side of the proposed centerline of right of way of Interstate Route 75 as part of the WOO/LUC-75-30.70/0.00 Centerline Plat made by Northwest Consultants, Inc. for the Ohio Department of Transportation as recorded in Instrument No. 201601270003448 of the records of Lucas County and being located within the following described points in the boundary thereof:
		

		
			Commencing at an existing monument box at the intersection of Miami Street and Oregon Road being at station 28+44.85 of the centerline of Miami Street and 829.28 feet right of station 479+79.31 of the proposed centerline of right of way of Interstate Route 75;
		

		
			Thence South 75 degrees 40 minutes 18 seconds West, 994.91 feet on the centerline of Miami Street to a point, said point being station 18+49.94 of the centerline of Miami Street and 156.41 feet left of station 478+35.1l of the proposed centerline of right of way of Interstate Route 75;
		

		
			Thence North 14 degrees 19 minutes 42 seconds West, 234.20 feet to an iron pin set, said iron pin set being at 234.20 feet left of station 18+49.94 of the centerline of Miami Street and 190.00 feet left of station 480+60.11 of the proposed centerline of right of way of Interstate Route 75 and also being THE TRUE POINT OF BEGINNING for the parcel of land herein described;
		

		
			
		

		
			

		 

		

			 

		

 

			

					

						 

					

					

						 

				
	

					

						 

					

					

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						Rev. 06/09

				

		

			 

		

		

		
			Thence, North 05 degrees 48 minutes 15 seconds East, 142.82 feet on the proposed limited access right of way line to an iron pin set, said iron pin set being 165.00 feet left of station 481+96.49 of the proposed centerline of right of way of Interstate Route 75;
		

		
			Thence North 03 degrees 15 minutes 49 seconds West, 67.72 feet on the proposed limited access right of way line to an iron pin set, said iron pin set being 165.00 feet left of station 486+62.32;
		

		
			Thence North 03 degrees 54 minutes 47 seconds East, 415.19 feet on the proposed limited access right of way line to a point, said point being 130.00 feet left of station 486+65.73;
		

		
			Thence North 75 degrees 38 minutes 39 seconds East, 106.50 feet on the proposed limited access right of way line to a point, said point being 27.42 feet left of station 486+94.00;
		

		
			Thence South 04 degrees 06 minutes 18 seconds West, 155.85 feet on the existing limited access right of way line to a point, said point being 36.93 feet left of station 485+39.28;
		

		
			Thence South 81 degrees 57 minutes 05 seconds West, 34.35 feet on the existing limited access right of way line to a point, said point being 70.96 feet left of station 485+34.63;
		

		
			Thence South 05 degrees 14 minutes 13 seconds West, 332.90 feet on the existing limited access right of way line to a point, said point being 111.99 feet left of station 482+09.4l;
		

		
			Thence South 21 degrees 06 minutes 38 seconds West, 130.68 feet on the existing limited access right of way line to a point, said point being 167.54 feet left of station 480+93.94;
		

		
			Thence South 27 degrees 59 minutes 23 seconds West, 41.49 feet on the existing limited access right of way line to the TRUE POINT OF BEGINNING and containing 0.917acres, of which 0.000 acres is PRO (Present Road Occupied), leaving a net take of 0.917 acres, more or less, subject to legal highways and other easements of record.
		

		
			The existing LA R/W easement to the State of Ohio excepts and easement to the City of Rossford for sanitary sewer, and reserves the following rights to the grantor: ponds for grinding sand; access roads, railroad tracks, pipelines and utilities at any location between piers and abutments; access to maintain an existing sand sewer line along the north side of Miami Street. For complete details of the exceptions please see Deed Volume 1782 Page 87 in the Lucas County Recorder’s Office.
		

		
			The above described area is contained within Lucas County Auditor’s permanent parcel number 18‐76138
		

		
			
		

		
			

		 

		

			 

		

 

			

					

						 

					

					

						 

				
	

					

						 

					

					

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			Grantors claim title by instruments recorded Instrument Number 201401080000326 in the Lucas County Recorder's Office.
		

		
			Description based on a survey conducted by Northwest Consultants, Inc. during the summer of 2013 under the direction and supervision of Matthew J. Puhl, Registered Surveyor 8363 of the State of Ohio
		

		
			Bearings used herein are based on Ohio State Plane Coordinate System, North Zone NAD83(2011) and are for this project use only.
		

		
			All iron pins set referenced herein are 3/4 inch diameter x 30 inch long iron bars with 2-1/2 inch aluminum cap stamped “ODOT R/W, P.S. 8363”.
		

		
			This description was prepared by Andrew M Bernhard and reviewed by Matthew J. Puhl, Registered Surveyor 8363 of the State of Ohio.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						/s/ Matthew J. Puhl

					
					
						 

					
					
						06-22-2016

				
	
					
						Matthew J. Puhl

					
					
						 

					
					
						Date

				
	
					
						Registered Surveyor of Ohio: No. S-008363

				
	
					
						 

				
	
					
						 

				
	
					
						 

				
	
					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

			

					

						 

					

					

						 

				
	

					

						 

					

					

						Page 1 of 3

				
	

					

						RX252WL

					

					

						Rev. 06/09

				

		

			 

		

		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						Ver. Date   01/28/2016

					
					
						PID    93592

				

		
			 
		

		
			PARCEL     19-WL2
		

		
			WOO/LUC-75-30.70/0.00
		

		
			ALL RIGHT, TITLE AND INTEREST IN FEE SIMPLE
		

		
			IN THE FOLLOWING DESCRIBED PROPERTY
		

		
			INCLUDING LIMITATION OF ACCESS
		

		
			Grantor/Owner, his heirs, executors, administrators, successors and assigns forever, are hereby divested of any and all abutter’s rights, including access rights in, over and to the within described real estate, including such rights with respect to any highway facility constructed thereon (as used herein, the expression “Granter/Owner” includes the plural, and words in the masculine include the feminine or neuter).
		

		
			[Surveyor’s description of the premises follows]
		

		
			Situated in the State of Ohio, County of Lucas, City of Toledo, River Tract 85, U.S. Reserve T3, being part of a tract of land conveyed to GLP Capital, L.P as described in instrument number 201401080000326 in the Lucas County Recorder’s Office and being more specifically described as follows:
		

		
			Being a parcel lying on the east side of the proposed centerline of right of way of Interstate Route 75 as part of the WOO/LUC-75-30.70/0.00 Centerline Plat made by Northwest Consultants, Inc. for the Ohio Department of Transportation as recorded in Instrument No. 201601270003448 of the records of Lucas County and being located within the following described points in the boundary thereof:
		

		
			Commencing at an existing monument box at the intersection of Miami Street and Oregon Road being at station 28+44.85 of the centerline of Miami Street and 829.28 feet right of station 479+79.3l of the proposed centerline of right of way of Interstate Route 75;
		

		
			Thence South 75 degrees 40 minutes 18 seconds West, 327.88 feet on the centerline of Miami Street to a point, said point being station 25+16.98 of the centerline of Miami Street and 504.83 feet right of station 479+25.78 of the proposed centerline of right of way of Interstate Route 75;
		

		
			Thence North 14 degrees 19 minutes 42 seconds West, 189.60 feet to an iron pin set, said iron pin set being at 189.60 feet right of station 25+16.98 of the centerline of Miami Street and 475.00 feet right of station 481+30.53 of the proposed centerline of right of way of Interstate Route 75 and also being THE TRUE POINT OF BEGINNING for the parcel of land herein described;
		

		
			
		

		
			

		 

		

			 

		

 

			

					

						 

					

					

						 

				
	

					

						 

					

					

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						Rev. 06/09

				

		

			 

		

		

		
			Thence North 74 degrees 59 minutes 42 seconds West, 94.35 feet on the existing limited access right of way line to a point, said point being 385.84 feet right of station 481+63.90;
		

		
			Thence North 37 degrees 17 minutes 15 seconds West, 132.10 feet on the existing limited access right of way line to a point, said point being 312.06 feet right of station 482+80.59;
		

		
			Thence North 18 degrees 03 minutes 00 seconds West, 294.66 feet on the existing limited access right of way line to a point, said point being 226.98 feet right of station 485+76.67;
		

		
			Thence North 04 degrees 29 minutes 57 seconds West, 90.07 feet on the existing limited access right of way line to an iron pin set, said iron pin set being 218.86 feet right of station 486+70.00;
		

		
			Thence South 27 degrees 28 minutes 53 seconds East, 119.29 feet on the proposed limited access right of way line to an iron pin set, said iron pin set being 275.00 feet right of station 485+60.00;
		

		
			Thence South 18 degrees 18 minutes 58 seconds East, 114.60 feet on the proposed limited access right of way line to an iron pin set, said iron pin set being 310.00 feet right of station 484+45.00;
		

		
			Thence South 32 degrees 04 minutes 05 seconds East, 336.14 feet on the proposed limited access right of way line to the TRUE POINT OF BEGINNING and containing 0.623 acres, of which 0.000 acres is PRO (Present Road Occupied), leaving a net take of 0.623 acres, more or less, subject to legal highways and other easements of record.
		

		
			The above described area is contained within Lucas County Auditor’s permanent parcel number 18-76138
		

		
			Grantors claim title by instruments recorded Instrument Number 201401080000326 in the Lucas County Recorder's Office.
		

		
			Description based on a survey conducted by Northwest Consultants, Inc. during the summer of 2013 under the direction and supervision of Matthew J. Puhl, Registered Surveyor 8363 of the State of Ohio
		

		
			Bearings used herein are based on Ohio State Plane Coordinate System, North Zone NAD83(2011) and are for this project use only.
		

		
			All iron pins set referenced herein are 3/4 inch diameter x 30 inch long iron bars with 2-1/2 inch aluminum cap stamped “ODOT R/W, P.S. 8363”.
		

		
			
		

		
			

		 

		

			 

		

 

			

					

						 

					

					

						 

				
	

					

						 

					

					

						Page 3 of 3

				
	

					

						RX252WL

					

					

						Rev. 06/09

				

		

			 

		

		

		
			This description was prepared by Andrew M Bernhard and reviewed by Matthew J. Puhl, Registered Surveyor 8363 of the State of Ohio.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						/s/ Matthew J. Puhl

					
					
						 

					
					
						01-28-2016

				
	
					
						Matthew J. Puhl

					
					
						 

					
					
						Date

				
	
					
						Registered Surveyor of Ohio: No. S-008363Exhibit

Exhibit 10.7
CSS INDUSTRIES, INC.
FY2019 Management Incentive Program Criteria

CSS Industries, Inc.

These FY2019 Management Incentive Program Criteria have been approved by the Human Resources Committee (the “Committee”) of the Board of Directors of CSS Industries, Inc. (“CSS” or the “Company”) in connection with the CSS Industries, Inc. Management Incentive Program (the “Program”).  All defined terms used herein and not otherwise defined shall have the respective meanings set forth in the Program.  These FY2019 Management Incentive Program Criteria are not intended in any way to alter, modify or supercede the terms of the Program, and reference should be made to such Program for a full description of the terms of the Program.

For CSS’ fiscal year ending March 31, 2019, these FY2019 Management Incentive Program Criteria shall apply solely to eligible Participants who are employed by the Company or one of its affiliates or subsidiaries and who are designated to participate hereunder.  

Notwithstanding any provision in this document or otherwise to the contrary, the Committee, in its sole discretion, reserves the right (a) to determine the eligibility requirements for participation in the Program; (b) to determine whether an employee satisfies the eligibility requirements for participation in the Program; (c) to award an Award, if any, to a Participant under the Program; (d) to deny payment of an Award to a Participant otherwise eligible under the terms of the Program or this document; (e) to make an Award, if any, to a Participant in a greater or lesser amount than provided for in the Program or this document; and/or (f) to make an Award, if any, in a manner or on a schedule other than as provided for in the Program or this document.

Participants

Individuals eligible to be Participants under the Program are limited to the Company’s full-time employees or full-time employees of the Company’s affiliates or subsidiaries as determined from time to time, and at any time, at the sole discretion of the Company’s President; provided, however, that Committee approval shall be required for any individual who is an executive officer of the Company or who has an annual base salary in excess of $250,000.  Notwithstanding any provision in this document or otherwise to the contrary, the Committee, in its sole discretion, reserves the right to change or modify the eligibility requirements for participation in the Program at any time and from time to time, and to determine whether an employee satisfies the eligibility requirements for participation in the Program.  Any new or existing Company employee who becomes eligible for the first time to participate in the Program may, at the Company President’s sole discretion, be eligible to receive a bonus payment, if any, prorated for the months he or she is eligible to receive an Award under the Program; provided, however, that Committee approval shall be required for any Award under the Program to any newly eligible Company employee who is an executive officer of the Company or who has an annual base salary in excess of $250,000.  To be eligible to receive payment of an Award hereunder, the applicable Participant must be a full-time employee of the Company or of one or more of the Company’s affiliates or subsidiaries on the date upon which such Award is actually paid.  Notwithstanding the foregoing, in the event that a Participant has remained continuously employed by the Company or by one of the Company’s affiliates or subsidiaries through the last day of the Company’s fiscal year ending March 31, 2019, but thereafter dies or is unable to care for his or her affairs because of illness or accident, the Committee, in its sole discretion, may determine to pay an Award for such performance period to the Participant or to his or her executors, legal representatives, administrators, heirs or assigns or any other person claiming under or through such Participant.

Participant Performance Criteria

For the Company’s fiscal year ending March 31, 2019, each Participant is eligible to receive an Award calculated using a base amount equal to such Participant’s Target Index Amount (as such term is defined below).   Unless otherwise determined by the Committee in its sole discretion at the time of approval thereof, each Award is divided into three parts: (a) a part entirely contingent upon the achievement by CSS of at least a minimum threshold level, as determined by the Committee in its sole discretion, of Adjusted EBITDA (as defined herein) (the “Adjusted EBITDA Component”) (b) a part entirely contingent upon the achievement by CSS of at least a minimum threshold level, as determined by the Committee in its sole discretion, of Net Sales (as defined herein) (the “Net Sales Component”), and (c) an individual part determined by the Committee in its sole discretion based upon, among other things, each Participant’s achievement of his or her specific goals and objectives and/or CSS’ achievement of its corporate goals.  For purposes of this Program, “Adjusted EBITDA” is defined as the Company’s consolidated earnings before interest expense, income taxes, depreciation and amortization (“EBITDA”), each as reported in CSS’ consolidated financial statements for the Company’s fiscal year ending March 31, 2019, as adjusted to reflect any adjustments to EBITDA determined by the Committee, in its sole discretion, at the time that these FY2019 Management Incentive Program Criteria are approved by the Committee.  For purposes of this Program, “Net Sales” is defined in the same manner used by the Company for purposes of publicly reporting the Company’s net sales (for clarity, as of the approval date of this Program, the Company determines “net sales” as amounts invoiced to the Company’s customers less (i) estimated amounts for special programs to customers, such as volume incentives, new store allowances, defective goods, and other programs, and (ii) allowances for returns, damaged goods, shipping errors, and other items). 

At the time that it approves these FY2019 Management Incentive Program Criteria, the Committee, in its sole discretion, shall determine: (i) the minimum threshold levels of Adjusted EBITDA and Net Sales that must be achieved in order for there to be payouts under the Adjusted EBITDA Component and the Net Sales Component (each a “Component”), respectively, (ii) the amount to be paid under each Component if the threshold level for that Component is attained, and (iii) the amount to be paid under each Component if the threshold for that Component is exceeded, i.e., the payout amount that corresponds to a specified level of achievement in excess of the threshold amount for each Component, including the levels of achievement required in order for the portion of each Award attributable to each Component to be paid at the target and maximum levels, respectively.
  
If the minimum threshold level is not achieved for a Component contingent upon achievement of such level, no Award for that Component will be paid. 

Target Index Amount

The “Target Index Amount” for each Participant is determined by multiplying (i) the Participant’s guideline percentage (based upon the Participant’s position and determined at the sole discretion of the Committee or, if not specifically determined by the Committee, at the sole discretion of the Company’s President) by (ii) the Participant’s base salary effective as of the later of April 1, 2018 or the date upon which such Participant becomes eligible to participate in the Program, as determined at the sole discretion of the Committee or, if not specifically determined by the Committee, at the sole discretion of the Company’s President.  

Example: a Participant has a base salary of $40,000 effective as of April 1, 2018 and has a guideline percentage of 15%.

Guideline        Base Salary            Target Index
Percentage    *    as of 4/1/18    =    Amount
15%        *      $40,000    =     $6,000

A Participant who changes job positions during the Fiscal Year (i.e., moves to a higher or lower job level that is an eligible position under the Program) will be eligible to receive an Award that is based upon the employee’s annual salary and level in effect as of April 1, 2018, plus or minus any pro rata adjustment that is effective with the change in position.

Receipt of an Award is not a guarantee that the applicable Participant will receive a payout thereunder equal to his or her Target Index Amount, or that the Participant will receive any payout under such Award.  

Allocation of Target Index Amount
For purposes of determining payouts under each Award, the Target Index Amount is allocated as follows:
 
(a) 50% is entirely contingent upon the Company’s level of achievement under the Adjusted EBITDA Component; 

(b) 20% is entirely contingent upon the Company’s level of achievement under the Net Sales Component; and
  
(c) 30% is based on individual performance, determined by the Committee based upon, among other things, each Participant’s achievement of his or her specific goals and objectives and/or CSS’ and/or the Company’s achievement of its respective corporate goals (the “Discretionary Component”). 

Adjusted EBITDA Component

The payout, if any, under the Adjusted EBITDA Component will be equal to the payout level, as determined by the Committee at the time that these FY2019 Management Incentive Program Criteria were approved, that corresponds to the level of Adjusted EBITDA achieved by the Company during its 2019 fiscal year.  No portion of the Adjusted EBITDA Component of an Award will be paid unless and until the Committee shall have certified the actual level of Adjusted EBITDA achieved by the Company during its 2019 fiscal year in relation to the corresponding payout levels established by the Committee at the time that these FY2019 Management Incentive Program Criteria were approved.

Net Sales Component

The payout, if any, under the Net Sales Component will be equal to the payout level, as determined by the Committee at the time that these FY2019 Management Incentive Program Criteria were approved, that corresponds to the level of Net Sales achieved by the Company during its 2019 fiscal year.  No portion of the Net Sales Component of an Award will be paid unless and until the Committee shall have certified the actual level of Net Sales achieved by the Company during its 2019 fiscal year in relation to the corresponding payout levels established by the Committee at the time that these FY2019 Management Incentive Program Criteria were approved.
                
Discretionary Component

The payout, if any, under the Discretionary Component will be determined at the sole discretion of the Committee, and may be based upon, among other things, each Participant’s achievement of his or her specific goals and objectives and/or CSS’ achievement of its corporate goals.  Each Participant will develop with his or her supervisor specific goals and objectives to be achieved by the Participant during the Company’s fiscal year ending March 31, 2019.  Such goals and objectives should be documented in a manner acceptable to CSS’ President, in his or her sole discretion, either at the beginning of the fiscal year, the date upon which the Participant becomes eligible to participate in the Program, the date upon which such Participant’s position with the Company changes, or such other date as selected by CSS’ President, in his or her sole discretion.  At the end of the Company’s fiscal year ending March 31, 2019, the level of each Participant’s achievement of his or her goals and objectives will be determined by the applicable Participant’s supervisor, in his or her sole discretion, and submitted to CSS’ President for review and approval, in his or her sole discretion.  With respect to Participants who are executive officers of CSS or who have annual base salaries in excess of $250,000, the Committee, in its sole discretion, will review and approve, disapprove or modify the Company’s determination as to each such Participant’s level of achievement of his or her goals and objectives.  The Program is not intended to duplicate the Company’s merit salary review process, and a Participant’s Discretionary Component ratings may vary from his or her merit salary review performance rating.

Although a Participant’s achievement of his or her goals and objectives may exceed 100%, the aggregate amount payable to all Company Participants attributable to the Discretionary Component shall not exceed the Company’s budgeted bonus amount attributable to the Discretionary Component without the prior approval of the Committee, in its sole discretion.

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