Document:

exv10w16

EXHIBIT 10.16

FIRST AMENDMENT TO LOAN AGREEMENT

          THIS AMENDMENT OF LOAN AGREEMENT (this “Amendment”) is made as of this 23rd day of March,
2010, by and among CSS INDUSTRIES, INC. (the “Borrower”), the lenders from time to time parties to
the Loan Agreement defined below (the “Lenders”), and PNC BANK, NATIONAL ASSOCIATION, as
Administrative Agent (the “Administrative Agent”) for the Lenders.

Background:

          A. The Administrative Agent, the Lenders and the Borrower entered into a Second Amended and
Restated Loan Agreement dated as of November 21, 2008 (as heretofore modified and amended, the
“Loan Agreement”), pursuant to which the Lenders agreed to make Advances from time to time to the
Borrower.

          B. The Borrower has requested and the Administrative Agent and the Lenders have agreed to
amend certain of the provisions in the Loan Agreement with respect to the Fixed Charge Coverage
Ratio, all on the terms and subject to the conditions set forth herein.

          NOW, THEREFORE, in consideration of the foregoing and for good and valuable consideration, the
legality and sufficiency of which are hereby acknowledged, the parties hereto, intending to be
legally bound hereby, agree as follows:

     1. Definitions. Capitalized terms used herein, including in the foregoing recitals,
and not otherwise defined herein shall have the meanings assigned to them in the Loan Agreement.

     2. Amendments to Loan Agreement. The Loan Agreement is hereby amended effective as of
the date set forth above (the “Amendment Effective Date”) as follows:

          (a) The definition of “Fixed Charge Coverage Ratio” set forth in Section 1.1 is
amended and restated to read in full as follows:

          “‘Fixed Charge Coverage Ratio’: For any period, the ratio of
(a) the Borrower’s Consolidated EBITDA for such period to (b) the sum of the
Borrower’s (i) current portion of principal on all long-term Indebtedness
(excluding the Revolving Credit and the NPA Final Payment) determined at the
beginning of such period, plus (ii) Consolidated Interest Expense
(including interest in respect of the Revolving Credit and discount payable
in respect of the Accounts Receivable Securitization) for such period,
plus (iii) Consolidated Tax Expense for such period, plus
(iv) cash dividends paid by the Borrower to the holders of its Capital Stock
during such period.”

 

          (b) The following new definition of “NPA Final Payment” is added to Section 1.1 in the
appropriate alphabetical order:

          “‘NPA Final Payment’: The final principal payment made by the Borrower as of
December 13, 2009 on account of all its outstanding obligations to the Noteholders under the
Note Purchase Agreement.”

          (c) Section 7.1 is amended and restated to read in full as follows:

          “7.1 Fixed Charge Coverage Ratio. The Borrower shall have and
maintain a Fixed Charge Coverage Ratio (measured on a rolling four quarter
basis) of not less than (a) 1.25 to 1.00 when the aggregate amount of the
current portion of principal payments on long-term Indebtedness (excluding
the Revolving Credit and the NPA Final Payment) of the Borrower, on a
consolidated basis, during such four quarter period then ending is equal to
or greater than $1,000,000 and (b) 1.35 to 1.00 when the aggregate amount of
the current portion of principal payments on long-term Indebtedness
(excluding the Revolving Credit and the NPA Final Payment) of the Borrower,
on a consolidated basis, during such four quarter period then ending is less
than $1,000,000.”

     3. Amendment to the Loan Documents. All references to the Loan Agreement in the Loan
Documents shall be deemed to refer to the Loan Agreement as amended hereby.

     4. Ratification of the Loan Documents. Notwithstanding anything to the contrary
herein contained or any claims of the parties to the contrary, the Administrative Agent, the
Lenders and the Borrower agree that the Loan Documents are in full force and effect and each such
document shall remain in full force and effect, as amended by this Amendment and the Borrower
hereby ratifies and confirms its obligations thereunder.

     5. Representations and Warranties.

          (a) The Borrower hereby certifies that after giving effect to this Amendment, (i) the
representations and warranties of the Borrower in the Loan Agreement are true and correct in all
material respects as if made on the date hereof and (ii) no Event of Default and no event which
could become an Event of Default with the passage of time or the giving of notice, or both, under
the Loan Agreement or the other Loan Documents exists on the date hereof.

          (b) The Borrower further represents that the Borrower has all the requisite power and
authority to enter into and to perform its obligations under this Amendment, and that the
execution, delivery and performance of this Amendment have been duly authorized by all requisite
action and will not violate or constitute a default under any provision of any applicable law,
rule, regulation, order, writ, judgment, injunction, decree, determination or award presently in
effect or of the Certificate of Incorporation, by-laws or other organizational documents of the
Borrower, or of any indenture, note, loan or loan agreement, license or any other agreement, lease
or instrument to which the Borrower is a party or by which the Borrower or any of its properties
are bound.

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          (c) The Borrower also further represents that its obligations to repay the Advances, together
with all interest accrued thereon, are absolute and unconditional, and there exists no right of set
off or recoupment, counterclaim or defense of any nature whatsoever to payment of the Advances.

          (d) The Borrower also further represents that there have been no changes to the Certificate of
Incorporation, by-laws or other organizational documents of the Borrower since the most recent date
true and correct copies thereof were delivered to the Administrative Agent.

     6. Conditions Precedent. The amendments set forth herein shall be effective as of the
Amendment Effective Date upon the fulfillment, to the satisfaction of the Administrative Agent and
its counsel, of the following conditions precedent:

          (a) The Borrower shall have delivered to the Administrative Agent the following, all of which
shall be in form and substance satisfactory to the Administrative Agent and shall be duly completed
and executed:

	 	(i)	 	counterparts of this Amendment executed by the
Borrower and the Majority Lenders;
	 
	 	(ii)	 	the Consent and Acknowledgment of Guarantors
attached as Exhibit A hereto, executed by each Guarantor; and
	 
	 	(iii)	 	such additional documents, certificates and
information as the Administrative Agent may reasonably request.

          (b) After giving effect to this Amendment, the representations and warranties set forth in the
Loan Agreement shall be true and correct on and as of the date hereof.

          (c) After giving effect to this Amendment, no Event of Default, and no event which, with the
passage of time or the giving of notice, or both, would become such an Event of Default shall have
occurred and be continuing as of the date hereof.

     7. Miscellaneous

          (a) To induce the Administrative Agent and the Lenders to enter into this Amendment, the
Borrower and each Guarantors waive and releases and forever discharges the Administrative Agent and
the Lenders and their respective officers, directors, attorneys, agents, and employees from any
liability, damage, claim, loss or expense of any kind of which it has knowledge as of the date
hereof against any of them arising out of or relating to the Loan Documents. The Borrower further
agrees to indemnify and hold the Administrative Agent, the Lenders and their respective officers,
directors, attorneys, agents and employees (collectively, the “Indemnitees”) harmless from any
loss, damage, judgment, liability or expense (including reasonable attorneys’ fees), other than any
such loss, damage judgment, liability or expense caused by the Indemnitee’s own willful misconduct
or gross negligence, suffered by or rendered against any of them on account of any claims arising
out of or relating to the Loan Documents.

3

 

The Borrower and each Guarantor further states that it has carefully read the foregoing
release and indemnity, knows the contents thereof and grants the same as its own free act and deed.

          (b) All terms, conditions, provisions and covenants in the Loan Documents and all other
documents delivered to the Administrative Agent in connection therewith shall remain unaltered and
in full force and effect except as modified or amended hereby. To the extent that any term or
provision of this Amendment is or may be deemed expressly inconsistent with any term or provision
in any Loan Document or any other document executed in connection therewith, the terms and
provisions hereof shall control.

          (c) This Amendment constitutes the entire agreement of the parties with respect to the subject
matter hereof and supersedes all prior and contemporaneous understandings and agreements.

          (d) In the event any provisions of this Amendment shall be held invalid or unenforceable by
any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any
other provision hereof.

          (e) This Amendment shall be governed by and construed according to the laws of the
Commonwealth of Pennsylvania.

          (f) This Agreement shall inure to the benefit of, and be binding upon, the parties hereto and
their respective successors and assigns and may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

          (g) The headings used in this Agreement are for convenience of reference only, do not form a
part of this Amendment and shall not affect in any way the meaning or interpretation of this
Amendment.

     The Borrower expressly ratifies and confirms the waiver of jury trial provisions contained in
the Loan Documents.

[Signature Pages to Follow]

4

 

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year
first above written.

	 	 	 	 	 	 	 

	 	 	CSS INDUSTRIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Clifford E. Pietrafitta
 

Clifford E. Pietrafitta
	 	 
	 

	 	Title:
	 	Vice President — Finance	 	 

 

 

	 	 	 	 	 	 	 

	 	 	PNC BANK, NATIONAL ASSOCIATION,	 	 
	 	 	as a Lender and as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Meredith Jermann
 

	 	 
	 	 	Name: Meredith Jermann	 	 
	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION,	 	 
	 	 	as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Stephen T. Dorosh
 

	 	 
	 	 	Name: Stephen T. Dorosh	 	 
	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	CITIZENS BANK OF PENNSYLVANIA, 

as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jonathan H. Sprogell
 

	 	 
	 	 	Name: Jonathan H. Sprogell	 	 
	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	TD BANK, N.A., as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robyn Zeller
 

	 	 
	 	 	Name: Robyn Zeller	 	 
	 	 	Title: Senior Vice Presidentexv10w24

Exhibit 10.24

     CSS INDUSTRIES, INC.

FY2010 Management Incentive Program Criteria

CSS Industries, Inc.

These FY2010 Management Incentive Program Criteria has 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 FY2010 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, 2010, these FY2010 Management Incentive Program Criteria
shall apply solely to eligible Participants who are employed by the Company.

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

The Company’s employees eligible to be Participants under the Program are limited to the Company’s
full-time employees having one or more of the job titles listed on Exhibit “A” attached hereto,
which list may be modified from time to time, and at any time, at the sole discretion of the
Committee upon the recommendation by the Company’s President. 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 $200,000.

Participant Performance Criteria

For the Company’s fiscal year ending March 31, 2010, 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, the
Award is contingent upon the achievement by CSS of at least a minimum level of earnings per share
(“EPS”) of CSS’ common stock, as determined by the Committee in its sole discretion. If a minimum
level of EPS is not achieved, no Award will be paid. Any permitted adjustments to, or exclusions
from, the determination of EPS shall be determined by the Committee, in its sole discretion, at the
time that these FY2010 Management Incentive Program Criteria are approved by the Committee.

 

 

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,
2009 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, 2009 and has a
guideline percentage of 15%.

	 	 	 	 	 	 	 	 	 	 	 	 	 

	Guideline

	 	 	 	 	Base Salary
	 	 	 	 	 	Target Index
	 
	Percentage

	 	*
	 	 	as of 4/1/09
	 	 	=
	 	 	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, 2009, plus or minus
any pro rata adjustment that is effective with the change in position.

Each Participant’s Target Index Amount is not a guarantee that the applicable Participant will
receive such Target Index Amount, or any Award. If awarded, the amount of any Award is subject to
adjustment from the Target Index Amount based upon, among other factors, the actual level of EPS
achievement and the level of achievement of a Participant’s individual objectives. For example, if
a Participant’s performance is unsatisfactory, but CSS has favorable EPS results, then the
Committee may determine, in its sole discretion, not to pay any Award to the unsatisfactory
performer.

Allocation of Target Index Amount

If a minimum level of EPS is not achieved, no Award will be paid. If the Company achieves at least
a minimum level of EPS, as determined by the Committee in its sole discretion, then the Target
Index Amount will be allocated as follows, unless otherwise determined by the Committee, in its
sole discretion:

	 	(i)	 	for the Company’s President and Vice Presidents, 100% of the Target Index
Amount will be allocated based upon the actual level of EPS achievement compared to
targeted EPS; and
	 
	 	(ii)	 	for all other Participants, (A) 50% of the Target Index Amount will be
allocated based upon the actual level of EPS achievement compared to targeted EPS and
(B) 50% of the Target Index Amount will be allocated based upon the applicable
Participant’s achievement of his or her performance goals (the “Individual Objective
Component”). The amount, if any, attributable to each component will be adjusted based
upon the Company’s actual level of EPS achievement compared to targeted EPS.

In determining the adjustment based upon the Company’s actual level of EPS achievement compared to
targeted EPS, the computation set forth on Exhibit “B” attached hereto shall apply.

In addition, the computation of the Individual Objective Component will be determined based upon
each Participant’s achievement of his or her specific goals and objectives. 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, 2010. Such goals and objectives should be documented in a manner
acceptable to the Company’s 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 the Company’s President, in his or her sole discretion. At the end of the
Company’s fiscal year ending March 31, 2010, the level of each Participant’s achievements of his or
her goals and objectives will be determined by the applicable Participant’s supervisor, in his or
her sole discretion up to a maximum achievement of 150%, and submitted to the Company’s 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 $200,000, 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 Individual
Objective 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%, up to a
maximum of 150%, the aggregate amount payable to all Company Participants attributable to the
Individual Objective Component shall not exceed the Company’s budgeted bonus amount attributable to
the Individual Objective Component without the prior approval of the Committee, in its sole
discretion.

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