Document:

Filed by Bowne Pure Compliance

EXHIBIT 10.2

CSS INDUSTRIES, INC.

2004 EQUITY COMPENSATION PLAN

STOCK BONUS AWARD GRANT

This STOCK BONUS AWARD GRANT, dated as of
 _____ 

, 20
 _____ 

(the “Date of Grant”), is
delivered by CSS Industries, Inc. (the “Company”) to
 _____ 

(the
“Grantee”).

RECITALS 

WHEREAS, the Human Resources Committee of the Board of Directors of the Company (the
“Committee”) has determined to grant the Grantee an equity award (the “Equity
Award”) for shares of common stock of the Company, par value $0.10 per share, (the
“Company Stock”);

WHEREAS, the Equity Award is comprised of two separate grants, a nonqualified stock option and
a stock bonus award; and

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

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

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

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

3. Vesting.

(a) In order to become vested in the Restricted Stock Units, the Grantee must continue to be
Employed by the Employer (as defined in the Plan) from the Date of Grant through the third
anniversary of the Date of Grant (i.e.,
 _____ 

, 20
 _____ 

) (the “Service Date”);
provided, however, that the number of Units that shall become vested on the Service Date shall be
determined based on the satisfaction of the performance goals set forth in Exhibit A
attached
hereto (the “Performance Goals”). The Committee shall certify the level of
achievement of the Performance Goals, which certification shall occur as soon as administratively
practicable after the second anniversary of the Date of Grant, but not later than ninety (90) days
following the second anniversary of the Date of Grant (the “Certification Date”). Any
portion of the Restricted Stock Unit that does not become vested because of the failure to fully
satisfy the Performance Goals shall be forfeited as of the Certification Date and the Grantee shall
not have any rights with respect to the vesting or the redemption of the portion of the Restricted
Stock Unit that has become forfeited.

 

 

 

(b) If at any time prior to the Service Date, the Grantee ceases to be Employed by the
Employer for any or no reason, all of the Restricted Stock Units subject to this Grant will be
immediately forfeited and the Grantee shall have no rights with respect to the redemption of any
portion of the Restricted Stock Units, irrespective of whether the Performance Goals were achieved.

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

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

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

 

-2-

 

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

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

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

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

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

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

 

-3-

 

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

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

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

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

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

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

 

-4-

 

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

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

	 	 	 	 	 
	ATTEST	 	CSS INDUSTRIES, INC.
	 
	 	 	 	 
	(Corporate Seal)
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 

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

	 	 	 	 	 
	 	 	ACCEPTED:
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Grantee

 

-5-Filed by Bowne Pure Compliance

EXHIBIT 10.3

CSS INDUSTRIES, INC.

MANAGEMENT INCENTIVE PROGRAM

(As amended on June 3, 2008)

SECTION 1. PURPOSE; DEFINITIONS. The purpose of the CSS Industries, Inc. Management
Incentive Program (the “Program") is to enable CSS Industries, Inc. (the “Company”) and its
subsidiaries to motivate and reward favorable performance by the Company’s executive officers and
other key employees of the Company and its subsidiaries by providing such individuals with the
opportunity to receive cash bonus payments based upon the achievement of pre-established and
objective performance goals for each fiscal year. The Program became effective on April 17, 2007
and was amended on June 3, 2008.

For purposes of the Program, the following terms will have the meanings defined below, unless
the context clearly requires a different meaning:

(a) “Award” means a cash bonus under the Program.

(b) “Board” means the Board of Directors of the Company, as constituted from time to time.

(c) “Code” means the Internal Revenue Code of 1986, as amended, and any successor thereto.

(d) "Committee” means the Human Resources Committee of the Board or such other committee
appointed by the Board for purposes of the Program, provided that the Human Resources Committee or
such other committee shall consist of members of the Board who are not employees of the Company or
any subsidiary or affiliate thereof and, with respect to matters relating to Awards intended to
constitute “qualified performance-based compensation” under Section 162(m) of the Code, who qualify
as “outside directors” under Section 162(m) of the Code.

(e) “Fiscal Year” means the period beginning on April 1 and ending on March 31.

(f) "Participant” means the executive officers of the Company and any other key employee of
the Company or any Subsidiary selected by the Committee to participate in the Program.

(g) "Performance Period” means each Fiscal Year or another period as designated by the
Committee, so long as such period does not exceed one year.

(h) “Subsidiary” means a subsidiary of the Company.

SECTION 2. ADMINISTRATION OF PROGRAM. The Committee shall administer and interpret the
Program, provided, that, the Program will not be interpreted in a manner that causes an Award
intended to constitute “qualified performance-based compensation” under Section 162(m) of the Code
to fail to so qualify. The Committee shall have the power, from time to time, to: (i) select
Participants; (ii) determine the terms and conditions of each Award,
including without limitation the amount of cash, if any, to be paid to each Participant; (iii)
establish the performance objectives for any Performance Period in accordance with Section 3 hereof
and certify whether such performance objectives have been obtained; (iv) establish and amend rules
and regulations relating to the Program, and to make all other determinations necessary and
advisable for the administration of the Program; (v) adopt subplans to the Program, and (vi)
correct any defect, supply any omission or reconcile any inconsistency in the Program or any Award.

 

1

 

Nothing in the Program shall be deemed to limit the ability of the Committee to grant Awards
to Participants under the Program which are not intended to qualify as “qualified performance-based
compensation” under Section 162(m) of the Code and which are not exempt from the limitations
thereof; provided, however, that in no event may an Award be granted in substitution or replacement
of an Award intended to qualify as “qualified performance-based compensation” under Section 162(m)
of the Code.

All decisions made by the Committee pursuant to the Program shall be made in the Committee’s
sole and absolute discretion and shall be final and binding on the Participants and the Company and
its Subsidiaries. No member or former member of the Board or the Committee shall be liable for any
act, omission, interpretation, construction or determination made in connection with the Program
other than as a result of such individual’s willful misconduct.

SECTION 3. AWARDS.

(a) Eligibility. The Committee shall designate the Participants who shall be eligible to
participate in the Program for a Performance Period.

(b) Performance Criteria. The Committee shall establish the performance objective or
objectives in writing that must be satisfied in order for a Participant to receive an Award for
that Performance Period, which shall be established before the beginning of the Period or during a
period ending no later than the earlier of (i) 90 days after the beginning of the Performance
Period or (ii) the date on which 25% of the Performance Period has been completed, or such other
date as may be required or permitted under applicable regulations under Section 162(m) of the Code.
In addition, at that time the Committee will also specify in writing the Performance Period during
which the performance will be measured, the portion of Awards that will be payable upon the full,
partial or over-achievement of specified performance objectives for that Performance Period, and
any other conditions that the Committee deems appropriate and consistent with the Program and
Section 162(m) of the Code, with respect to any Award that is intended to constitute “qualified
performance-based compensation” under Section 162(m) of the Code. Except with respect to an Award
that is not intended to constitute “qualified performance-based compensation” under Section 162(m)
of the Code, such performance objectives shall be objectively determinable and based upon one or
more of the following criteria, as determined by the Committee for the applicable Performance
Period (subject to adjustment in accordance with Section 3(b) below): the price of the Company’s
stock, earnings per share, income before taxes and extraordinary items, net income, operating
income, revenues, earnings before income tax, EBITDA (earnings before interest, taxes, depreciation
and amortization), operational cash flow, after-tax or pre-tax profits, return on capital employed
or return on invested capital, after-tax or pre-tax return on stockholders’ equity, limiting the
level in, or increase in all or a portion of, the Company’s assets and/or liabilities, stockholder
return, return on equity, growth in assets, unit
volume, sales or market share, or strategic business criteria consisting of one or more objectives
based on meeting specified revenue goals, market penetration goals, geographic business expansion
goals, cost targets or goals relating to acquisitions or divestitures.

 

2

 

Performance goals may be established on a Company-wide basis or with respect to one or more
Subsidiaries, products or any subsidiary, division or other operational unit of the Company or its
Subsidiaries, as determined by the Committee; and in either absolute terms or relative to the
performance of one or more comparable companies or an index covering multiple companies. For
Awards intended to constitute “qualified performance-based compensation” under Section 162(m) of
the Code, the performance goals shall satisfy the requirements of “qualified performance-based
compensation,” including the requirement that the achievement of the goals be substantially
uncertain at the time they were established and that the goals be established in such a way that a
third party with knowledge of the relevant facts could determine whether and to what extent the
performance goals have been met. The performance objectives for a particular Performance Period
need not be the same for all Participants.

(c) Adjustments to Performance Criteria. The Committee may provide, at the time the
performance goals are established in accordance with Section 3(a) or at any time with respect to
any Award that is not intended to constitute “qualified performance-based compensation” under
Section 162(m) of the Code, that adjustments will be made to the applicable performance goals to
take into account, in any objective manner specified by the Committee, the impact of one or more of
the following: (i) gain or loss from all or certain claims and/or litigation and insurance
recoveries, (ii) the impairment of tangible or intangible assets, (iii) stock-based compensation
expense, (iv) extraordinary, unusual or infrequently occurring events reported in the Company’s
public filings, (v) restructuring activities reported in the Company’s public filings, (vi)
investments, dispositions or acquisitions, (vii) gain or loss from the disposal of certain assets,
(viii) gain or loss from the early extinguishment, redemption, or repurchase of debt, or (ix)
changes in accounting principles that become effective during the Performance Period.

Any adjustment described in this Section 3(c) may relate to the Company, any Subsidiary or to
any subsidiary, division or other operational unit of the Company or its Subsidiaries, as
determined by the Committee at the time the performance goals are established or at any time with
respect to any Award that is not intended to constitute “qualified performance-based compensation”
under Section 162(m) of the Code. Any adjustment shall be determined in accordance with generally
accepted accounting principles and standards, unless such other objective method of measurement is
designated by the Committee at the time performance goals are established. Notwithstanding the
foregoing, adjustments will be made as necessary to any performance criteria related to the
Company’s stock to reflect changes in corporate capitalization, including a recapitalization, stock
split or combination, stock dividend, spin-off, merger, reorganization or other similar event or
transaction affecting the Company’s stock.

(d) Maximum Award Amount Payable. The maximum amount payable hereunder to a Participant in
any twelve month Performance Period will not exceed $2,000,000.

(e) Payment Conditioned on Continued Employment; Death or Disability. Except as expressly
provided in the immediately succeeding sentence, no Participant will be entitled to any payment
hereunder, and no Award hereunder will be deemed to be earned, with respect to any
particular Performance Period unless he or she has remained continuously employed by the
Company or its Subsidiaries through the day that the payment for that Performance Period is
actually paid to such Participant (or such other date as is specified by the Committee at the time
that performance objectives are established). Notwithstanding the foregoing, in the event that a
Participant has remained continuously employed by the Company or its Subsidiaries through the last
day of any particular Performance Period 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.

 

3

 

(f) Negative Discretion. Notwithstanding anything else contained herein to the contrary, the
Committee shall have the right, in its absolute discretion, (i) to reduce or eliminate the amount
otherwise payable to any Participant hereunder based on individual performance or any other factors
that the Committee, in its sole discretion, shall deem appropriate and (ii) to establish rules or
procedures that have the effect of limiting the amount payable to each Participant to an amount
that is less than the maximum amount otherwise authorized hereunder. In no event shall the
Committee have the discretion to increase the amount of compensation that is payable upon
achievement of the designated performance goals for Awards that are intended to constitute
“qualified performance-based compensation” under Section 162(m) of the Code

SECTION 4. PAYMENT. To the extent that the Committee determines at the time of grant to
qualify an Award as performance-based compensation under Section 162(m) of the Code, no Award shall
be payable except upon written certification by the Committee following the Performance Period that
the performance goals have been satisfied to a particular extent and that any other material terms
and conditions precedent to payment of an Award have been satisfied. If the performance goals have
not been satisfied for such Performance Period such Awards shall be forfeited. If the Committee
does not determine at the time of grant to qualify an Award as performance-based compensation under
Section 162(m) of the Code, no Award shall be payable except upon determination by the Committee
that the performance objective or objectives have been satisfied to a particular extent and that
any other material terms and conditions precedent to payment of an Award have been satisfied.
Payment hereunder will be made as soon as practicable after the Committee certification or
determination referenced above is completed. The Committee shall seek to complete the
certification or determination referenced above so that any payment hereunder for a particular
Performance Period will be made no later than 21/2 months following the end of the Fiscal Year
containing the last day of the Performance Period to which the Award relates.

SECTION 5. GENERAL PROVISIONS.

(a) Amendment and Termination. The Program shall continue until the Board or the Committee
amends, suspends, discontinues or terminates the Program, which may occur at any time, in the sole
discretion of the Board or the Committee; provided, however, with respect to Awards intended as
“qualified performance-based compensation,” the Program must be reapproved by the Company’s
stockholders no later than the first stockholders meeting that occurs in the fifth year following
the year in which the stockholders approved the Program, if required by Section 162(m) of the Code
or the regulations thereunder, and no such action shall be effective without approval by the
stockholders of the Company to the extent necessary to
continue to qualify the amounts payable hereunder to Participants as “qualified
performance-based compensation” under Section 162(m) of the Code.

 

4

 

(b) Unsecured Creditor Status. A Participant entitled to payment hereunder shall rely solely
upon the unsecured promise of the Company and its Subsidiaries and nothing herein contained shall
be construed to give to or vest in a Participant or any other person now or at any time in the
future, any right, title, interest, or claim in or to any specific asset, fund, reserve, account,
insurance or annuity policy or contract, or other property of any kind whatever owned by the
Company or its Subsidiaries, or in which the Company or its Subsidiaries may have any right, title,
or interest, nor or at any time in the future.

(c) Non-Assignment of Awards. The Participant shall not be permitted to sell, transfer,
pledge or assign any amount payable pursuant to the Program or an Award, provided that the right to
payment of an Award earned hereunder may pass by will or the laws of descent and distribution.

(d) Separability. If any term or condition of the Program shall be invalid or unenforceable
to any extent or in any application, then the remainder of the Program, with the exception of such
invalid or unenforceable provision, shall not be affected thereby, and shall continue in effect and
application to its fullest extent.

(e) Continued Employment. Neither the adoption of the Program nor the execution of any
document in connection with the Program will: (i) confer upon any employee of the Company or an
Subsidiary any right to continued employment with the Company or such Subsidiary, or (ii) interfere
in any way with the right of the Company or such Subsidiary to terminate the employment of any of
its employees at any time.

(f) Incapacity. If a Participant is unable to care for his or her affairs because of illness
or accident, the Committee, in its sole discretion, may determine to pay any amount due such
Participant under the Program to his or her legal representatives, administrators, or assigns or
any other person claiming under or through such Participant, and any such payment shall be a
complete discharge of the Company’s and its Subsidiaries’ obligations hereunder.

(g) Withholding. The Company and its Subsidiaries, as the case may be, shall withhold the
amount of any federal, state, local or other tax, charge or assessment attributable to the payment
of any Award as it may deem necessary or appropriate, in its sole discretion.

(h) Compliance with Section 409A of the Code. The Program is intended to comply with the
short-term deferral rule set forth in the regulations under Section 409A of the Code, in order to
avoid application of Section 409A to the Program. If, and to the extent that, any payment under
this Program is deemed to be deferred compensation subject to the requirements of Section 409A of
the Code, this Program shall be administered so that such payments are made in accordance with the
requirements of Section 409A of the Code.

(i) Governing Law. The Program and all Awards granted hereunder will be governed by and
construed in accordance with the laws and judicial decisions of the Commonwealth of Pennsylvania,
without regard to the application of the principles of conflicts of laws.

 

5

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