Document:

Letter Agreement

 EXHIBIT 10.4 
 CONFIDENTIAL TREATMENT 
 PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO THE REGISTRANT’S APPLICATION OBJECTING TO DISCLOSURE AND REQUESTING CONFIDENTIAL TREATMENT UNDER RULE 24b-2; THE OMITTED PORTIONS HAVE BEEN MARKED WITH BRACKETS. 
 May 5, 2006 
 Michael T. Kennedy

 President and CEO 
 Radnor Holdings Corporation

 150 Radnor Chester Road, Suite 300 
 Radnor, PA 19087

  

	Re:	(i) First Amendment to Revolving Credit and Security Agreement, by and among Radnor Holdings Corporation, a Delaware corporation, StyroChem U.S., Ltd., a Texas limited
partnership, WinCup Texas, Ltd., a Texas limited partnership and Wincup Holdings, Inc., a Delaware corporation (collectively, the “Borrowers”), the Guarantors party thereto (the “Guarantors”), National City Business Credit, Inc.,
an Ohio corporation (“NCBC”), and various other financial institutions from time to time party thereto (NCBC and such other financial institutions are each, a “Lender” and collectively, the “Lenders”), NCBC, as agent
for the Lenders and the Issuer (as defined below) (in such capacity, the “Agent”), and National City Bank, a national banking association, as Issuer (the “Issuer”) (the “Credit Agreement”), and (ii) Letter
Agreement, dated as of March 31, 2006, by and among the Agent, the Lenders, the Issuer and the Borrowers (the “Original Letter Agreement”). 

 Dear Mr. Kennedy: 
 This letter (i) sets forth certain additional conditions to the effectiveness
of the First Amendment (as defined below) as well as the fees payable by the Borrowers, in connection with the First Amendment to the Credit, dated the date hereof, by and among the Borrowers, the Guarantors the Lenders, the Agent and the Issuer
(the “First Amendment”), and (ii) amends and restates the Original Letter Agreement. Terms defined in the Credit Agreement are used in this letter as therein defined. 

 The Credit Agreement and the Agent’s Letter provide for certain fees payable to the Agent, the
Lenders and the Issuer. The primary purpose of this letter, however, is to set forth certain other fees which are payable in connection with the First Amendment. The Borrowers agree to pay, the following fees (in immediately available funds) which
shall be nonrefundable when paid: 
  

					
	1.	  	Amendment Fee:	  	A fee of
[                                        ] which
was paid on or about
April 4, 2006 to the Agent for the ratable benefit of the Lenders.
			
	2.	  	Commitment Fee:	  	A fee of
[                                        ] which
was paid on or about
April 4, 2006 to the Agent for the ratable benefit of the Lenders.

 In order to induce the Agent, the Lenders and the Issuer to enter into and execute the First Amendment, and as an
express condition to the Agent, the Lenders and the Issuer continuing to make additional Revolving Advances and other financial accommodations to Borrowers (in addition to, and not in limitation of, all of the conditions precedent set forth in
Section 8.2 of the Credit Agreement), the Loan Parties covenant and agree that Thorp Reed & Armstrong, LLP, in its capacity as counsel for the Agent (“TR&A”), shall, on or before May 8, 2006 (the “Retention
Date”), enter into a retention agreement with a financial consultant acceptable to the Agent and the Lenders in their sole and absolute discretion (the “Financial Consultant”), pursuant to which TR&A will at all times retain the
Financial Consultant during the period from the Retention Date through and including the date on which the Review (as hereinafter defined) is completed to the satisfaction of the Agent and the Lenders. The scope of work will be determined by the
Agent and the Lenders in their sole and absolute discretion and it shall include, but not be limited to, reviewing the Loan Parties’ financial data, including the Loan Parties’ books and records, forecasting, liquidity schedules, cost
structure on inventory and control procedures (the “Review”). All reports prepared by the Financial Consultant shall be sent simultaneously to the Agent, the Lenders and the Issuer and each of the Agent, the Lenders and the Issuer shall
have direct access to the Financial Consultant. All fees, costs and expenses of the Financial Consultant (including, but not limited to, any indemnification obligations) now or hereafter incurred by TR&A and/or the Agent shall be the sole
responsibility of Radnor, and in no event shall TR&A, the Agent, the Lenders or the Issuer have any liability or responsibility for the payment of any such fees or expenses, nor shall TR&A, the Agent, the Lenders or the Issuer have any
obligation or liability to any Loan Party or any other Person by reason of any acts or omissions of the Financial Consultant. 
 All fees shall be paid
without set-off, counterclaim or deduction and are non-refundable obligations of the Borrowers. This fee letter may be signed in one or more counterparts, shall be governed by the laws of the Commonwealth of Pennsylvania, and shall not be deemed to
be superceded by any other letter or documentation, including the Credit Agreement and the Other Documents, unless such other letter or documentation is executed by you and us, expressly makes reference to this fee letter, and states that this fee
letter is superceded thereby. The fees described above shall be in addition to, and not creditable against, any other fee, cost or expense payable under the Credit Agreement, the Agent’s Letter or related loan documentation. 
 Each Borrower agrees that this letter is for its confidential use only and will not be disclosed by it (i) to any person other than its accountants, attorneys and
other advisors, and then only in connection with the transactions contemplated by the Credit Agreement and on a confidential basis or (ii) unless as it may otherwise be required by law. 

 [INTENTIONALLY LEFT BLANK] 

 Please evidence your acceptance of this letter by signing and returning to the undersigned the enclosed copy of this
letter. 
  

			
	Sincerely,
	
	National City Business Credit, Inc., as Lender and as Agent
		
	 By:
	 	/s/ Michael Fine
	 Name:
	 	 Michael Fine

	 Title:
	 	 Director

	
	Bank of America, N.A., as Lender and as Syndication Agent
		
	 By:
	 	/s/ Richard Levenson
	 Name:
	 	Richard Levenson
	 Title:
	 	S.V.P.
	
	KeyBank National Association, as Lender
		
	 By:
	 	/s/ Nadine M. Eames
	 Name:
	 	Nadine M. Eames
	 Title:
	 	Vice President
	
	National City Bank, as Issuer
		
	 By:
	 	/s/ Joseph Kwasny
	 Name:
	 	Joseph Kwasny
	 Title:
	 	S.V.P.

							
	Acknowledged, Agreed and Accepted on this 5th day of May, 2006.
	
	Radnor Holdings Corporation
		
	 By:
	 	 /s/ Michael T. Kennedy

		 	Michael T. Kennedy, President and CEO
	
	StyroChem U.S., Ltd.
		 	By:	 	StyroChem GP, L.L.C.
		 	Its:	 	General Partner
		 		 	By:	 	Radnor Chemical Corporation
		 		 	Its:	 	Sole Member
		
	 By:
	 	/s/ R. Radcliffe Hastings
		 	R. Radcliffe Hastings, Executive Vice President
	
	Wincup Holdings, Inc.
		
	 By:
	 	/s/ Michael T. Kennedy
		 	Michael T. Kennedy, President
	
	WinCup Texas, Ltd.
		 	By:	 	WinCup GP, L.L.C.
		 	Its:	 	General Partner
		 		 	By:	 	Wincup Holdings, Inc.
		 		 	Its:	 	Sole Member
		
	 By:
	 	/s/ Michael T. Kennedy
		 	Michael T. Kennedy, PresidentFirst Amendment to Employment Agreement

 EXHIBIT 10.5 
 FIRST AMENDMENT TO 
 EMPLOYMENT AGREEMENT 
 This First Amendment to Employment Agreement (“Amendment”) is made as of the 3rd day of April, 2006, by and between Radnor Holdings Corporation
(“Company”) and Michael T. Kennedy (“Executive”). 
 WHEREAS, Company and Executive entered into the Employment
Agreement, dated as of October 27, 2005 (the “Employment Agreement”); and 
 WHEREAS, Company and Executive desire to amend
certain terms and provisions of the Employment Agreement, all as more fully set forth herein. 
 NOW, THEREFORE, in consideration of the
foregoing and intending to be legally bound hereby, the parties hereby agree as follows: 
 1. Definitions. All terms capitalized
herein but not otherwise defined shall have the meanings ascribed to them in the Employment Agreement. 
 2. Amendment. 
 (a) Section 4(b) of the Employment Agreement is hereby amended and restated to read in its entirety as follows: 
 “b. Annual Bonus. All bonuses payable during, or in respect of, the Term shall be set by the Committee based upon
reasonable performance criteria established by such Committee no later than March 31 of the year to which it relates and after consultation with the Executive. For calendar year 2005, the Executive has been paid an annual bonus. For calendar
year 2006, the Executive shall not be eligible to receive an annual bonus. Except as provided in the following sentence, for calendar year 2007 and all subsequent years during the Term, the Executive shall be eligible for a target bonus equal to not
less than 100% of Base Salary, subject to such criteria as shall be approved annually by the Committee. With respect to each target bonus award for calendar year 2007 and subsequent calendar years, 80% of such target bonus opportunity shall be based
upon achievement of predetermined financial goals and 20% of such target bonus opportunity shall be based upon subjective criteria, in each case as determined by the Committee. Notwithstanding the foregoing provisions of this Section 4(b),
following the completion of a Qualified IPO, the target bonus shall be not less than 200% of Base Salary (prorated for the calendar year in which the Qualified IPO occurs), subject to approval by the Committee, after consultation with such outside
advisors (including, without limitation, a nationally recognized compensation 
  

 1 

 consulting firm and/or nationally recognized law firm) as the Committee deems necessary or appropriate.
All annual bonuses shall be paid no later than the time annual bonuses are paid generally to other senior executives of the Company, but in no event later than March 31 of the calendar year following the calendar year in respect of which such
bonus was earned. The Committee shall have the right to determine whether any bonus which may become payable to Executive shall be payable in the form of cash or Shares. If the Term is not extended for any reason, Executive shall be eligible to
receive any bonus earned in respect of such final year of employment even if he is no longer employed on the date of payment of such bonus.” 
 3. Ratification and Confirmation. This Amendment shall be effective as of the date hereof. The terms and conditions of the Employment Agreement, as modified by this Amendment, are hereby ratified and confirmed and shall continue in
full force and effect. 
 4. Miscellaneous. The Miscellaneous provisions set forth in Section 9 of the Employment Agreement shall
be incorporated herein by reference. 
  

 2 

 IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed as of the date first above
written. 
  

			
	EXECUTIVE
	
	 /s/ Michael T. Kennedy

	MICHAEL T. KENNEDY
	
	RADNOR HOLDINGS CORPORATION
		
	By:	 	 /s/ R. Radcliffe Hastings

	Name:	 	R. Radcliffe Hastings
	Title:	 	Executive Vice President

  

 3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]