Document:

Employment Agreement - Michael T. Kennedy

 EXHIBIT 10.51 
 EMPLOYMENT AGREEMENT 
 AGREEMENT (the “Agreement”) dated as of October 27, 2005
(the “Effective Date”), by and between Radnor Holdings Corporation (the “Company”) and Michael T. Kennedy (the “Executive”). 
 W I T N E S S E T H : 
 WHEREAS, the Executive is presently employed as
Chairman of the Board of Directors (the “Board”), Chief Executive Officer and President of the Company; 
 WHEREAS, the
Company, through its Board, considers it in the best interests of its stockholders to secure the continued employment of Executive in his present capacity, and desires to retain and continue to retain the Executive in his present employment and
current positions, subject to certain terms and conditions as set forth more fully below; 
 WHEREAS, Executive is willing to continue his
employment and remain in his current positions, subject to certain terms and conditions as set forth more fully below; 
 WHEREAS, the
Company and the Executive entered into an Employment Agreement dated November 20, 2003, as amended by the First Amendment to Employment Agreement, dated December 15, 2003 (the “Existing Agreement”), which was to be
effective upon the closing of an initial public offering of the Company’s Shares (as hereafter defined); 
 WHEREAS, the Company and the
Executive wish to terminate the Existing Agreement and enter into this Agreement whereby the Executive will be employed by the Company in accordance with the terms and conditions stated below; and 
 WHEREAS, the Board (exclusive of the Executive, who has abstained from the relevant proceedings), has specifically authorized the Company to enter into
this Agreement. 
 NOW, THEREFORE, in consideration of the mutual promises and conditions herein set forth, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Executive agree as follows: 
 1.
Termination of Existing Agreement; Term. The Existing Agreement is hereby terminated and of no further force and effect. The initial term of this Agreement shall be effective upon the Effective Date and shall continue, unless
terminated in accordance with Paragraph 4 herein or as otherwise provided in this Agreement, until the end of the calendar year following the fifth anniversary of the Effective Date (the “Initial Term”). 

 
At the end of the Initial Term, the term of this Agreement shall be automatically extended for an additional 12 months absent written notice of non-renewal
given by the Executive or the Company to the other party hereto at least 90 days prior to the relevant expiration date (the Initial Term, as may be extended, the “Term”). 
 2. Duties and Authority. During the Term, the Executive agrees to serve the Company as Chairman, Chief Executive Officer, President and a
member of the Board. In serving in the aforementioned positions, the Executive shall report directly to the Board and shall have such authority and responsibilities as is customarily attendant to such positions and as many be specified from time to
time by the Board (including without limitation, the right to consult the Board or any committee thereof on the compensation and benefits to be paid to other members of the Company’s senior management). Except as otherwise permitted by the
Board, the Executive shall devote substantially all of his business time (excluding periods of vacation and sick leave) and efforts to the performance of his functions and responsibilities for the Company and its affiliates. Executive will also
serve, without additional compensation, in the same positions with each subsidiary of the Company as he serves in the Company and shall serve on such boards of directors of the Company’s subsidiaries as the Board may request from time to time.
Executive agrees that he will not serve on the boards of unaffiliated for-profit companies (and other entities) without the prior consent of the Board. Notwithstanding the foregoing, the Executive may manage his personal and family investments and
affairs and may serve on the boards of civil and charitable organization, provided that such activities do not unreasonably interfere with his duties and responsibilities hereunder. 
 3. Place of Performance. In connection with his employment during the Term, unless otherwise agreed in writing by the Executive, the
Executive shall be principally employed at the Company’s headquarters in Radnor, Pennsylvania. The Executive will undertake reasonable business travel on behalf of the Company, at Company expense, as provided hereinbelow. 
 4. Compensation and Benefits. In full consideration for all services rendered by the Executive during the Term, the Executive will receive
the following compensation and benefits: 
 a. Base Salary. Subject to the following two sentences, the
Executive shall receive an annual base salary of two million dollars ($2,000,000) commencing on January 1, 2006 (as may be modified in this Section 4(a), the “Base Salary”) payable in accordance with the customary payroll
practices of the Company. Effective upon the completion of a Qualified IPO (as hereafter defined), Base Salary shall be reduced, on a prospective annual basis, to one million dollars ($1,000,000). Qualified IPO means the initial firm commitment
underwritten public offering by the Company of shares of its common stock (the “Shares”) pursuant to a registration statement under the Securities Act of 1933, which results in aggregate proceeds to the Company of at least $50.0
million (before deducting underwriting discounts and commissions and offering expenses). 
  

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 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 shall
be eligible to receive an annual bonus in accordance with the 2005 CEO Bonus Plan approved by the Committee on March 30, 2005, a copy of which is attached as Exhibit A (the “2005 Bonus Plan”). Amounts payable to Executive under
the 2005 Bonus Plan, if any, shall be paid not later than March 31, 2006. Except as provided in the following sentence, for calendar year 2006 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 2006 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. Attached as Exhibit B are the financial goals established by the
Committee for calendar year 2006. 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 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. 
 c. Equity Grants. The Executive shall be eligible to receive equity grants (including, without limitation, restricted Shares
and stock options) during the Term in such form and amount and on such terms as the Committee, as applicable, shall determine. The Committee shall consider, at least annually as part of its annual review of the Executive’s compensation, whether
the Executive shall receive an equity grant for that year. 
 d. Expense Reimbursement. The Company will
reimburse the Executive for all business and travel expenses reasonably incurred in the performance of the Executive’s duties in accordance with the Company’s standard procedures in effect for the senior most executives of the Company and
consistent with past practice. 
 e. Employee and Executive Benefits. In addition to the compensation described
in this Section 4 and subject to all of the provisions of this Section 4, the Company will make or cause to be made available to the Executive and his spouse and other eligible dependents, subject to the terms and conditions of the
applicable plans, 

  

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including, without limitation, the eligibility rules, participation in all employee pension, health, welfare and benefit plans, including all 401(k) plans,
employee retirement income and welfare benefit policies, plans, programs, or arrangements, in which senior executives of the Company participate from time to time, including any stock purchase, savings, pension, supplemental executive retirement or
other retirement income or welfare benefit, disability, salary continuation, and any other deferred compensation, group and/or executive life, health, medical/hospital, or other insurance (whether funded by actual insurance or self-insured by the
Company or an affiliate), expense reimbursement, or other employee benefit policies, plans, programs, or arrangements. Nothing paid to the Executive under any plan or arrangement presently in effect or made available in the future shall be deemed to
be in lieu of the Base Salary payable to the Executive pursuant to Section 4(f). Any payments or benefits payable to the Executive under this Section 4(e) in respect of any calendar year during which the Executive is employed by the
Company for less than the entire such year shall, unless otherwise provided in the applicable plan or arrangement, be prorated in accordance with the number of days in such calendar year during which he is so employed. 
 f. Vacation and Benefits. During the Term, the Executive shall be entitled to vacation, paid holidays and other personal
days in such amounts as shall be available under the Company’s normal vacation policies applicable to senior executives (but not less than six weeks vacation per annum), as in effect from time to time, such vacation to be taken in accordance
with such normal vacation policies; and the Executive shall be entitled to the perquisites and other fringe benefits made available to senior executives of the Company, commensurate with his position and level of responsibility with the Company, and
to such other perquisites and fringe benefits as currently provided to him on the date of execution of this Agreement consistent with past practice. 
 g. Office and Support Staff. During the Term, the Executive shall be entitled to an appropriate office and furnishings and other appointments, and to secretarial and other assistance, as provided to
other key employees of the Company and otherwise commensurate with his positions, duties and responsibilities hereunder. 
 5.
Termination of the Executive’s Employment. 
 a. Death. Upon a termination of
Executives’ employment due to his death, the Executive’s estate shall be entitled to (i) any accrued but unpaid annual bonus for the calendar year prior to the calendar year in which such termination is effective and the target annual
bonus for the year in which death occurs prorated to the date of employment termination (or, if no target bonus has been established, the most recent bonus paid or awarded); and (ii) all accrued but unpaid Base Salary, vacation days and
benefits to the date of employment termination, including, but no limited to, entitlements under the Company’s retirement, disability and life insurance plans, if any. 
 b. Disability. If, as a result of the Executive’s incapacity due to physical or mental illness (a
“Disability”), the Executive shall have been absent from his duties hereunder on a full-time basis for the entire period of six consecutive months, and 

  

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within thirty (30) days after written notice of termination is given (which may occur before or after the end of such six-month period) the Executive
shall not have returned to the performance of his duties hereunder on a full-time basis, the Company may terminate the Executive’s employment hereunder. Upon a termination of Executive’s employment due to Disability, the Executive or his
legal representative, as the case may be, shall be entitled to (i) any accrued but unpaid annual bonus for the calendar year prior to the calendar year in which such termination is effective and the target annual bonus for the year in which
Executive’s termination due to disability occurs prorated to the date of employment termination (or, if no target bonus has been established, the most recent bonus paid or awarded); and (ii) all accrued but unpaid Base Salary, vacation
days and benefits to the date of employment termination, including, but no limited to, entitlements under the Company’s retirement, disability and life insurance plans, if any. 
 c. For Cause/Without Good Reason. If the Executive’s employment is terminated by the Company for Cause (as defined
below) or by the Executive without Good Reason (as defined in Section 5(d) below), the Executive shall receive all accrued but unpaid Base Salary and benefits to the date of employment termination, including any accrued but unpaid annual bonus
for the calendar year prior to the calendar year in which such termination is effective. For purposes hereof, “Cause” shall be defined as (i) the Executive’s conviction of a felony under the laws of the United States or
any state thereof or any other jurisdiction in which the Company or any of its affiliates conducts business or the entering of a plea of nolo contendere to such a felony charge; and (ii) Executive’s gross negligence or willful misconduct
which is materially injurious to the financial condition of the Company. For purposes of this Section, no act or failure to act on the part of the Executive shall be deemed “willful” if it was due primarily to an error in judgment or
negligence, but shall be deemed “willful” only if done or omitted to be done by the Executive not in good faith and without reasonable belief that the Executive’s action or omission was in the best interest of the Company. The
Executive shall have thirty (30) days following the receipt of notice from the Company of the existence of circumstances constituting Cause (under clause (ii) of the preceding sentence) to correct such circumstances. Notwithstanding the
foregoing, the Executive shall not be deemed to have been terminated for Cause hereunder unless and until (1) there shall have been delivered to the Executive a written notice from the Company stating that it has determined that the Executive
had committed an act constituting Cause as herein defined and specifying the particulars thereof in detail, (2) the Executive shall have had the opportunity to appear before the Board (with counsel if he so elects) to respond to such
particulars and (3) at least 75% of the members of the Board (not including the Executive ) shall have voted to terminate his employment for Cause. Nothing herein will limit the right of the Executive or the Executive’s beneficiaries to
contest the validity or propriety of any such determination. 
  

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 d. Without Cause/Good Reason Termination. If the Executive’s
employment is terminated by the Company without Cause or by the Executive for Good Reason, then, subject to execution by the Company and the Executive of customary releases of the other party hereto on mutually satisfactory terms agreed to in good
faith by the Company and the Executive, the Executive shall be entitled to the following: 
 i. all accrued, but unpaid Base
Salary through the date of termination, plus two times the Executive’s then-current Base Salary (increased to three times if Executive’s employment termination occurs within two years following a Change of Control), such amount to be
payable in a lump sum within five business days following Executive’s termination of employment; 
 ii. two times the
Executive’s target bonus (or, if no such target bonus award has been established for such year, the most recent annual bonus paid or awarded to the Executive) amount (increased to three times if Executive’s employment termination occurs
within two years following a Change of Control), such amount to be payable in a lump sum within five business days following Executive’s termination of employment; 
 iii. all accrued, but unpaid entitlements and benefits from the Company, including, but no limited to, entitlements under the
Company’s retirement, deferred compensation, disability and life insurance plan and programs, if any, payable in accordance with the respective terms of such plans and programs; and 
 iv. at the Company’s expense, full benefit coverage for the Executive, his spouse and other eligible dependents under each of the
Company’s medical, dental, life insurance, disability, accidental death and dismemberment and other Executive welfare plans and programs in which Executive, his spouse and such dependents were participating at the time of Executive’s
termination of employment for a period of two years (increased to three years’ coverage if Executive’s employment termination occurs within two years following a Change of Control) from the date of Executive’s termination, provided
that if the Company’s health and welfare programs do not permit continuation of coverage for the Executive, his spouse or any eligible dependents, such individuals will be provided with comparable insurance (determined on an after-tax basis) at
the Company’s expense. 
 “Good Reason” shall be defined as (i) any reduction in Executive’s
base salary or any material reduction in Executive’s annual bonus opportunity; (ii) a substantial diminution of the Executive’s position, including status, offices, titles and reporting relationships; (iii) a relocation of the
Company’s office by more than 35 miles; (iv) the breach by the Company of any material terms of the employment agreement; (v) the Company’s failure to obtain the express written assumption of Executive’s employment agreement
by any successor to the Company; and (vi) the Executive’s voluntary termination of employment for any reason within a 60-day window period commencing upon the first anniversary of a Change of Control (as defined below); provided, however
that “Good Reason”, for purposes of clauses (i) – (v) of this sentence, shall not include any 

  

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event as to which the Executive has directly consented in writing in advance of the occurrence thereof. 
 e. Change of Control. For purposes hereof, a “Change of Control” shall be deemed to have occurred upon the
occurrence of one or more of the following events: 
 i. the purchase or other acquisition by any person, entity, or group of
persons, within the meaning of section 13(d) or 14(d) of the Exchange Act or any comparable successor provisions (excluding, for this purpose, (A) the Company, (B) any employee benefit plan sponsored or maintained by the Company or any
corporation controlled by the Company, and (C) the Executive or his family, including any trust established for the benefit of the Executive or his family and further including any person, entity or group who has made such purchase or
acquisition from the Executive, his family or any trust established for the benefit of the Executive of his family), of beneficial ownership (within the meaning of Rule 10(d)-3 promulgated under the Exchange Act) of 30% or more of either the
outstanding Stock or the combined voting power of the Company’s then outstanding Shares entitled to vote generally. For purposes of the foregoing, the term “family” shall include the following persons: spouse, child and any other
lineal descendant; 
 ii. the consummation of a reorganization, merger, or consolidation the effect of which in each case, is
that the persons who were stockholders of the Company immediately prior to such reorganization, merger or consolidation will not, immediately thereafter, own more than 50% of the combined voting power entitled to vote generally in the election of
directors of the reorganized, merged or consolidated Company’s then outstanding securities; 
 iii. a liquidation or
dissolution of the Company; 
 iv. the sale of all or substantially all of the Company’s assets to an unrelated third
party; or 
 v. during any period of two consecutive years (not including any period prior to 90 days following the
consummation by the Company of its initial public offering), individuals who at the beginning of such period constitute the Board and any new director designated by a person, group or entity who has entered into an agreement with the Company to
effect a transaction described in clause (i), (ii) or (iv) of this Section 5(e)) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the
directors then still in office who either were directors at the beginning of the 

  

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period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof. 
 6. Certain Additional Payments by the Company. 
 a. Subject to Section 6(h) hereof, if it is determined (as hereafter provided) that any payment or distribution by the Company, any
person whose actions result in a Change of Control or any affiliate of the Company or such persons, to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise
pursuant to or by reason of any other agreement, policy, plan, program, or arrangement, including, without limitation, any stock option, stock appreciation right, or similar right, or the lapse or termination of any restriction on or the vesting or
exercisability of any of the foregoing (each a “Payment”, and all such Payments, excluding the Gross-Up Payments (as defined below), the “Total Payments”)), would be subject to the excise tax imposed by
Section 4999 of the Code (or any successor provision thereto) by reason of being considered “contingent on a change in ownership or control” of the Company, within the meaning of Section 280G of the Code (or any successor
provision thereto) or to any similar tax imposed by state or local law, or any interest or penalties with respect to such tax or taxes, together with any such interest and penalties, are hereafter collectively referred to as the “Excise
Tax”), then the Executive will be entitled to receives an additional payment or payments (collectively, a “Gross-Up Payment”) in an amount such that, after payment by the Executive of all taxes (including any interest or
penalties imposed with respect to such taxes), including any Excise Tax imposed upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. 
 b. Subject to the provisions of Section 6(f) hereof, all determinations required to be made under this Section 6, including
whether an Excise Tax is payable by the Executive and the amount of such Excise Tax and whether a Gross-Up Payment is required to be paid by the Company to the Executive and the amount of such Gross-Up Payment, will be made by a nationally
recognized firm of certified public accountants (the “Accounting Firm”) selected by the Executive in his sole discretion. The Executive will direct the Accounting Firm to submit its determination and detailed supporting calculations
to both the Company and the Executive within 15 calendar days after the Executive’s termination, if applicable, and any other such time or times as may be requested by the Company or the Executive. If the Accounting Firm determines that any
Excise Tax is payable by the Executive, the Company will pay the required Gross-Up Payment to the Executive within five business days after receipt of such determination and calculations with respect to any Payment to the Executive. If the
Accounting Firm, after taking into account Section 6(h) of this Agreement, determines that no Excise Tax is payable by the Executive, it will, at the same times as it make such determination, furnish the Company and the Executive an opinion
that the Executive has substantial authority not to report any Excise Tax on the Executive’s federal, state, local income or other tax return. Any determination by the Accounting Firm as to the amount of the Gross-Up Payment will be binding
upon the Company and the Executive. As a result of the uncertainty in the application of Section 4999 of the Code (or any successor provision thereto) and the 

  

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possibility of similar uncertainty regarding applicable state or local tax law at the time of any determination by the Accounting Firm hereunder, it is
possible that Gross-Up Payments that will not have been made by the Company should have been made (an “Underpayment”), consistent with the calculations required to be made hereunder. In the event that the Company exhausts or fails
to pursue its remedies pursuant to Section 6(f) hereof and the Executive thereafter is required to make a payment of any Excise Tax, the Executive will direct the Accounting Firm to determine the amount of the Underpayment, if any, that has
occurred and to submit its determination and detailed supporting calculations to both the Company and the Executive as promptly as possible. Any such Underpayment will be promptly paid by the Company to, or for the benefit of, the Executive within
five (5) business days after receipt of such determination and calculations. 
 c. The Company and the Executive will
each provide the Accounting Firm access to and copies of any books, records, and documents in the possession of the Company or the Executive, as the case may be, reasonably requested by the Accounting Firm, and otherwise cooperate with the
Accounting Firm in connection with the preparation and issuance of the determinations and calculations contemplated by Section 6(b) hereof. 
 d. The federal, state, and local income or other tax returns filed by the Executive will be prepared and filed on a consistent basis with the determination of the Accounting Firm with respect to the Excise Tax payable
by the Executive. The Executive will make proper payment of the amount of any Excise Tax, and at the request of the Company, provide to the Company true and correct copies (with any amendments) of the Executive’s federal income tax return as
filed with the Internal Revenue Service and corresponding state and local tax returns, if relevant, as filed with the applicable taxing authority, and such other documents reasonably requested by the Company, evidencing such payment. If prior to the
filing of the Executive’s federal income tax return, or corresponding state or local tax return, if relevant, the Accounting Firm determines that the amount of the Gross-Up Payment should be reduced, the Executive will within five
(5) business days pay to the Company the amount of such reduction. 
 e. The fees and expenses of the Accounting Firm for
its services in connection with the determinations and calculations contemplated by Sections 6(b) and (d) hereof will be borne by the Company. 
 f. The Executive will notify the Company in writing of any claim by the Internal Revenue Service or other taxing authority that, if successful, would require the payment by the Company of a Gross-Up Payment. Such
notification will be given as promptly as practicable, but no later than ten (10) business days after the Executive actually receives notice of such claim and the Executive will further apprise the Company of the nature of such claim and the
date on which such claim is requested to be paid (in each case, to the extent known by the Executive). The Executive will not pay such claim prior to the earlier of (a) the expiration of the 30-calendar-day period following the date on which
the Executive gives such notice to the Company, and (b) the date that any payment 

  

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of amount with respect to such claim is due. If the Company notifies the Executive in writing prior the expiration of such period that it desires to contest
such claim, the Executive will: 
 i. provide the Company with any written records or documents in the Executive’s
possession relating to such claim reasonably requested by the Company; 
 ii. take such action in connection with contesting
such claim as the Company will reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney competent in respect of the subject matter and reasonably
selected by the Company; 
 iii. cooperate with the Company in good faith in order to effectively contest such claim; and

 iv. permit the Company to participate in any proceedings relating to such claim; 
 provided, however, that the Company will bear and pay directly all costs and expenses (including interest and penalties) incurred in connection with such contest and
will indemnify and hold harmless the Executive, on an after-tax basis, from and against any Excise Tax or income tax, including interest and penalties with respect thereto, imposed as a result of such representation and payment of costs and
expenses. Without limiting the foregoing provisions of this Section 6(f), the Company will control all proceedings taken in connection with the contest of any claim contemplated by this Section 6(f) and, at its sole option, may pursue or
forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim (provided, however, that the Executive may participate therein at the Executive’s own cost and expense) and may,
at its option, either direct the Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a
court of initial jurisdiction, and in one or more appellate courts, as the Company will determine; provided, however, that if the Company directs the Executive to pay the tax claimed and sue for a refund, the Company will advance, to the extent any
such advancement is not in violation of any law applicable to the Company, the amount of such payment to the Executive on an interest-free basis and will indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income
or other tax, including interest or penalties with respect thereto, imposed with respect to such advance; and provided further, however, that any extension of the statute of limitations relating to payment of taxes for the taxable year of the
Executive with respect to which the contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company’s control of any such contested claim will be limited to issues with respect to which a Gross-Up
Payment would be payable hereunder and the Executive will be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority. 
  

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 g. If, after the receipt by the Executive of an amount advanced by the Company pursuant
to Section 6(f) hereof, the Executive receives any refund with respect to such claim, the Executive will (subject to the Company’s complying with the requirements of Section 6(f) hereof) promptly pay to the Company the amount of such
refund (together with any interest paid or credited thereon after any taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Company pursuant to Section 6(f) hereof, a determination is made that the
Executive will not be entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial or refund prior to the expiration of thirty (30) calendar days after such
determination, then such advance will be forgiven and will not be required to be repaid and the amount of such advance will offset, to the extent hereof, the amount of the Gross-Up Payment required to be paid by the Company to the Executive pursuant
to this Section 6. 
 h. Notwithstanding the foregoing provisions of this Section 6, if it shall be determined that
the Executive is entitled to a Gross-Up Payment, but the Total Payments do not exceed 110% of the greatest amount (the “Reduced Amount”) that could be paid to the Executive such that the receipt of the Total Payments would not give
rise to any Excise Tax, then no Gross-Up Payment shall be made to the Executive and the Total Payments, in the aggregate, shall be reduced to the Reduced Amount. If a reduction is so required, the Executive and the Company shall determine, after
consultation, which payments and or benefits shall be waived, reduced or forfeited to accomplish the reduction with the intention of providing the greatest possible after-tax benefit to the Executive. 
 7. Registration Rights. 
 a. Demand Registration Rights. From and after the date hereof, on two occasions, if the Company shall receive written notice from the Executive which: 
 i. requests that the Company take action to effect any registration with respect to any Shares now owned or hereafter acquired by the
Executive; and 
 ii. specifies the number of proposed Shares intended to be offered and sold for the account of the
Executive, and describes the proposed nature or method of the offer and sale of such Shares. 
 then, subject to the
conditions, qualifications and limitations set forth in a registration rights agreement, to be entered between the Company and the Executive (the “Registration Rights Agreement”), the Company shall cause to be prepared and filed,
and use its best efforts to cause to become effective under the Securities Act of 1933, as amended (the “1933 Act”), and to be maintained in effect for a period of not less than sixty (60) days, a registration statement
(including a related prospectus) in such applicable form under the 1933 Act as the Company, in its sole discretion, determines to be appropriate, covering the public offer and sale of the number of Shares specified in the notice. Notwithstanding
anything to the contrary herein, the foregoing rights shall not apply to any 

  

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Shares if such notice is first provided by the Executive at any time two years or more following the date of the termination of the Executive’s
employment for any reason whatsoever. 
 b. Piggyback Registration Rights. 
 i. The Registration rights Agreement shall also provide that, if the Company proposes at any time to file with the SEC a registration
statement under the 1933 Act on Form S-1, S-2 or S-3 or other comparable form relating to the sale of common stock by the Company or any affiliate thereof (other than through the distribution of rights to purchase common stock to its stockholders
generally), then the Company shall give written notice to the Executive at least fifteen (15) days prior to the filing of such registration statement of its intention to do so. 
 ii. Subject to the conditions, qualifications and limitations set forth in the Registration rights Agreement, if the Executive delivers a
written notice to the Company, within ten (10) days after delivery of the foregoing notice, of his desire to have any of the Shares included in a registration statement, such shares shall be included in any registration statement so filed and
shall not constitute an occasion on which the Executive requests the Company to take action to effect any registration with respect to any Shares now owned or hereafter acquired by the Executive, pursuant to an option or otherwise, as provided by
Section 7(a). 
 8. Restrictive Covenants. 
 a. Acknowledgement. The Executive agrees and acknowledges that in the course of rendering services to the Company and its
client and customers he has acquired and will acquire access to and become acquainted with confidential information about the professional, business and financial affairs of the Company, its subsidiaries and affiliates that is non-public,
confidential or proprietary in nature. The Executive acknowledges that the Company is engaged in a highly competitive business and the success of the Company in the marketplace depends upon its good will and reputation for quality and dependability.
The Executive agrees and acknowledges that reasonable limits on his ability to engage in activities competitive with the Company are warranted to protect its substantial investment in developing and maintaining its status in the marketplace,
reputation and good will. The Executive recognizes that in order to guard the legitimate interests of the Company, it is necessary for it t protect all confidential information. The existence of any claim or cause of action by Executive against the
Company shall not constitute and shall not be asserted as a defense to the enforcement by the Company of this Agreement. 
 b.
Confidentiality. The Executive shall hold in a fiduciary capacity for the benefit of the Company all secret or confidential information, knowledge or data relating to the Company or any affiliated companies, and their respective
businesses, which shall have been obtained by Executive during the Executives’ employment by the 

  

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Company and which shall not be or become public knowledge. During the Term and after termination of Executive’s employment with the Company, the
Executive shall not, without the prior written consent of the Company or as otherwise may be required by law or legal process (provided, that the Executive shall give the Company reasonable notice of such process, and the ability to contest it),
communicate or divulge any such information, knowledge or data to anyone other than the Company and those designated by it. The Executive also agrees that upon leaving the Company’s employ, he will not take with him, and he will surrender to
the Company, any record, list, drawing, blueprint, specification or other document or property of the Company, its subsidiaries and affiliates, together with any copy and reproduction thereof, mechanical or otherwise, which is of a confidential
nature relating to the Company, its subsidiaries and affiliates, or, without limitation, relating to its or their method of distribution, client relationships, marketing strategies or any description of formulae or secret processes, or which was
obtained by Executive or entrusted to Executive during the course of his employment with the Company. 
 c.
Noncompetition. The Executive agrees that during the Term of his employment with the Company and for a period of one year after Executive’s termination of employment with the Company, he will not engage in competition with the
Company. For purposes of Executive’s employment agreement, “Competition” shall mean (i) becoming directly involved, as an owner, principal, employee, officer, director, independent contractor, consultant, representative,
stockholder, agent, advisor, lender, or in any other capacity, with an entity located in the United States which competes directly with any product line of or service offered by the Company which is material to the business of the Company;
provided, that, in no event shall ownership of less than 5% of the outstanding capital stock entitled to vote for the election of directors of a publicly-traded company, in and of itself, be deemed Competition. 
 d. Nonsolicitation. The Executive agrees that during the Term of his employment with the Company and for a period of one
year after Executive’s termination of employment with the Company, he will not, either alone or in concert with others, and will not cause another in any such case directly or indirectly, (i) to recruit, solicit or induce any Company
employees to terminate their employment with the Company or (ii) to solicit the business of, do business with, or seek to do business with , any client of the Company. 
 e. Nondisparagement. The Company and the Executive shall refrain from making any statements or taking any action which has
the effect of demeaning the name or reputation of the other, or which is injurious, or could reasonably be expected to be injurious, to the best interests (economic or otherwise) of the other. For the purposes of this Section 8(e), the Company
shall be deemed to include its directors and executive officers. 
 f. Modification. If at any time there is a
judicial determination by any court of competent jurisdiction that the time period, geographical scope, or any other restriction contained in this Paragraph 6 is unenforceable against the Executive, the provision of this Paragraph 6 shall not be
deemed void but shall be deemed amended to 

  

 13 

 
apply as to such maximum time period, geographical scope and to such other maximum extent as the court may judicially determine or indicate to be
enforceable. 
 g. Change of Control/Restriction Inapplicable. Notwithstanding the foregoing, the provisions of
Section 8(c) and 8(d) above will not apply in the event that the Executive is terminated following a Change of Control. 
 9.
Proposed Amendments. If, in connection with a qualified IPO, the Board of Directors or the Committee (after consultation with the underwriters for the Qualified IPO or such outside advisors (including, without limitation, a nationally
recognized compensation consulting firm and/or nationally recognized law firm) as the Committee deems necessary or appropriate) recommend amendments to this Agreement, the Executive will consider all such recommendations in good faith. 

10. Miscellaneous. 
 a. Notice. For the purpose of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of
change of address shall be effective only upon actual receipt: 
 To the Company: 
 Radnor Holdings Corporation 
 Radnor
Financial Center 
 150 Radnor Chester Road 
 Suite A300 
 Radnor, PA 19087 
 To the Executive: 
 Michael Kennedy

 ______________________ 
 ______________________ 
 b. Legal Fees. The Executive shall be reimbursed for all reasonable legal
fees and expenses incurred by him in seeking to enforce his rights and entitlements under this Agreement or in defending any legal proceeding or arbitration brought against him by the Company hereunder provided that he prevails on any material issue
which is a subject of determination in such legal proceeding or arbitration. In addition, the Company shall pay directly or reimburse the Executive for all reasonable legal fees and expenses incurred by the Executive in connection with the
preparation and negotiation of this 

  

 14 

 
Agreement, provided that such payment or reimbursement obligation shall not exceed $25,000 in the aggregate. 
 c. Entire Agreement. This Agreement supersedes any and all existing agreements between the Executive and the Company
relating to the terms and conditions of the Executive’s employment. 
 d. Amendments and Waivers. No
provisions of this Agreement may be amended, modified, waived or discharged except as agreed to in writing by the Executive and the Company. The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion will
not be considered a waiver thereof or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement. 
 e. Successors. This Agreement shall be binding upon and inure to the benefit of the Executive and the Company and its
successors and permitted assigns. Neither this Agreement nor any of the rights of the parties hereunder may be assigned by either party hereto except that the Company may assign its rights and obligations hereunder to a corporation or other entity
that acquires substantially all of its assets. Any assignment or transfer of this Agreement in violation of the foregoing provisions will be void. 
 f. Indemnification. The Executive shall be indemnified and held harmless by the Company, or its successors or assigns, from and against any losses, claims, damages, liabilities or actions, to the fullest
extent permitted by law. The Company shall maintain directors and officers liability insurance for the benefit of the Executive on a basis no less favorable than the basis on which it generally maintains such insurance for the benefit of other
executives of the Company. 
 g. Governing Law. This Agreement will be governed by and construed in accordance
with the laws of the State of Pennsylvania applicable to agreements made and/or to be performed in that state, without regard to any choice of law provisions thereof. 
 h. No Setoff. The amount of any payment or benefit provided for in Section 4 shall not be reduced by any compensation
earned by the Executive as the result of employment by another employer, by retirement benefits, by setoff against any amount claimed to be owned by the Executive to the Company, or otherwise. 
 i. Mitigation. The Executive shall have no duty to mitigate any amounts payable or benefits provided under this Agreement by
seeking other employment or otherwise. 
 j. Withholding of Taxes. The Company is authorized to withhold from
any benefit provided or payment due hereunder the amount of withholding taxes due any federal, state, or local authority in respect of such benefit or payment and to take such 

  

 15 

 
other action as may be necessary in the opinion of the Company to satisfy all obligations for the payment of such withholding taxes. 
 k. Severability. If any provision of this Agreement is invalid or unenforceable, the balance of this Agreement will remain
in effect, and if such provision is inapplicable to any person or circumstance, it will nevertheless remain applicable to all other persons and circumstances. 
 l. Effectiveness. This Agreement shall become effective on and as of the Effective Date. The respective rights of the
parties hereunder shall survive the termination of the Executive’s employment. 
 [This Space Intentionally Left Blank] 
  

 16 

 m. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same instrument. 
 IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year 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

  

 17 

  
  
  
  
  
 [EXHIBITS OMITTED]Omnibus Equity Compensation Plan

 EXHIBIT 10.53 
 RADNOR HOLDINGS CORPORATION 
 2005 OMNIBUS EQUITY COMPENSATION PLAN 
  

	
	Adopted by Radnor Holdings Corporation Board of Directors on October 7, 2005
	
	Approved by Radnor Holdings Corporation Stockholders on October 7, 2005
	
	Effective Date October 7, 2005

 RADNOR HOLDINGS CORPORATION 
 2005 OMNIBUS EQUITY COMPENSATION PLAN 
 1. Purpose

 The Radnor Holdings Corporation 2005 Omnibus Equity Compensation Plan (the “Plan”) is hereby established as a successor to
the Radnor Holdings Corporation Equity Incentive Plan (the “Prior Plan”). The Prior Plan is hereby merged into this Plan as of the Effective Date of this Plan (as set forth in Section 20(a)), and no additional grants shall be made
under the Prior Plan. Outstanding grants under the Prior Plan shall continue in effect according to their terms as of the Effective Date (subject to such amendments as the Committee (as defined below) determines consistent with the Prior Plan), but
shares with respect to outstanding grants under the Prior Plan shall be issued or transferred under this Plan. 
 The purpose of the Plan is
to provide (i) designated employees of Radnor Holdings Corporation (“Radnor Holdings”) and its subsidiaries, (ii) non-employee members of Radnor Holdings’ Board of Directors and (iii) certain consultants and advisors
who perform services for the Company and its subsidiaries, with the opportunity to receive grants of incentive stock options, nonqualified stock options, stock units, stock awards, dividend equivalents and other stock-based awards. Radnor Holdings
believes that the Plan will encourage the participants to contribute materially to Radnor Holdings’ growth, thereby benefiting its stockholders, and will align the economic interests of the participants with those of the stockholders.

 2. Definitions 
 Whenever used in this Plan, the following terms will have the respective meanings set forth below: 
 (a) “Board”
means Radnor Holdings’ Board of Directors as constituted from time to time. 
 (b) “Change of Control” means the first
to occur of any of the following events: 
 (i) the purchase or other acquisition by any person, entity, or group of persons, within the
meaning of section 13(d) or 14(d) of the Exchange Act or any comparable successor provisions (excluding, for this purpose, (A) Radnor Holdings, (B) any employee benefit plan sponsored or maintained by Radnor Holdings or any corporation
controlled by Radnor Holdings, and (C) Michael Kennedy or his family, including any trust established for the benefit of Michael Kennedy or his family), of beneficial ownership (within the meaning of Rule 13(d)-3 promulgated under the Exchange
Act) of 30% or more of either the outstanding Stock or the combined voting power of the Company’s then outstanding voting securities entitled to vote generally. For purposes of the foregoing, the term “family” shall include the
following persons: spouse, child and any other lineal descendant; 
  

 1 

 (ii) the consummation of a reorganization, merger, or consolidation the effect of which in each case, is
that the persons who were stockholders of Radnor Holdings immediately prior to such reorganization, merger or consolidation will not, immediately thereafter, own more than 50% of the combined voting power entitled to vote generally in the election
of directors of the reorganized, merged or consolidated company’s then outstanding securities; 
 (iii) a liquidation or dissolution of
Radnor Holdings; 
 (iv) the sale of all or substantially all of Radnor Holdings’ assets to an unrelated third party; or 
 (v) during any period of two consecutive years, individuals who at the beginning of such period constitute the Board and any new director designated by a
person, group or entity who has entered into an agreement with Radnor Holdings to effect a transaction described in clause (i), (ii) or (iv) of this Section 2(b) whose election by the Board or nomination for election by the
stockholders of Radnor Holdings was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so
approved, cease for any reason to constitute a majority thereof. Upon the consummation by Radnor Holdings of its initial public offering, the foregoing provision shall not include any period prior to 90 days following the consummation by Radnor
Holdings of its initial public offering. 
 (c) “Code” means the Internal Revenue Code of 1986, as amended. 
 (d) “Committee” means (i) with respect to Grants to Employees and Consultants, the Compensation Committee of the Board or its
delegate or successor, or such other committee as the Board may appoint to administer the Plan or its delegate or its successor, (ii) with respect to Grants made to Non-Employee Directors, the Board, and (iii) with respect to Grants that
are intended to qualify as “qualified performance based compensation” under Code section 162(m), a committee that consists of two or more persons appointed by the Board, all of whom shall be “outside directors” as defined under
Code section 162(m) and related Treasury regulations. Notwithstanding the foregoing, in the absence of an appointment of a committee by the Board, the “Committee” shall be the Board. 
 (e) “Company” means Radnor Holdings, any successor corporation and each corporation which is a member of a controlled group of
corporations (within the meaning of Code section 414(b)) of which Radnor Holdings is a component member. 
 (f) “Consultant”
means consultants and advisors who perform services for the Company. 
 (g) “Date of Grant” means the effective date of a
Grant; provided, however, that no retroactive Grants will be made. 
  

 2 

 (h) “Dividend Equivalent” means an amount determined by multiplying the number of shares
of Stock or Stock Units subject to a Grant by the per-share cash dividend, or the per-share fair market value (as determined by the Committee) of any dividend in consideration other than cash, paid by Radnor Holdings on its Stock on a dividend
payment date. 
 (i) “Employee” means an employee of the Company (including an officer or director who is also an employee)
other than an individual (a) employed in a casual or temporary capacity (i.e., those hired for a specific job of limited duration), (b) whose terms of employment are governed by a collective bargaining agreement that does not
provide for participation in this Plan, (c) characterized as a “leased employee” within the meaning of Code section 414, (d) who is a non-resident alien, or (e) classified by the Company as a “contractor” or
“consultant,” no matter how characterized by the Internal Revenue Service, other governmental agency or a court. Any change of characterization of an individual by any court or government agency or otherwise shall have no effect upon the
classification of an individual as an “Employee” for purposes of this Plan, unless the Committee determines otherwise. 
 (j)
“Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (k) “Fair Market Value” means
(i) if the Stock is publicly traded, then the Fair Market Value per share shall be determined as follows: (A) if the principal trading market for the Stock is a national securities exchange or the Nasdaq National Market, the last reported
sale price thereof on the relevant date or (if there were no trades on that date) the latest preceding date upon which a sale was reported, or (B) if the Stock is not principally traded on such exchange or market, the mean between the last
reported “bid” and “asked” prices of the Stock on the relevant date, as reported on Nasdaq or, if not so reported, as reported by the National Daily Quotation Bureau, Inc. or as reported in a customary financial reporting
service, as applicable and as the Committee determines; (ii) if the Stock is not publicly traded or, if publicly traded, is not subject to reported transactions or “bid” or “asked” quotations as set forth above, the Fair
Market Value per share shall be as determined by the Committee. 
 (l) “Grant” means an Option, Stock Unit, Stock Award,
Dividend Equivalent or Other Stock-Based Award granted under the Plan. 
 (m) “Grant Instrument” means the written agreement
that sets forth the terms and conditions of a Grant, including all amendments thereto. 
 (n) “Incentive Stock Option” means
a stock option that is intended to meet the requirements of Code section 422, as described in Section 7. 
 (o) “Non-Employee
Director” means a member of the Board who is not an employee of the Company. 
 (p) “Nonqualified Stock Option”
means a stock option that is not intended to meet the requirements of Code section 422, as described in Section 7. 
  

 3 

 (q) “Option” means an Incentive Stock Option or Nonqualified Stock Option to purchase
Stock at the Option Price for a specified period of time. 
 (r) “Option Price” means an amount per share of Stock
purchasable under an Option, as designated by the Committee. 
 (s) “Other Stock-Based Award” means any Grant based on,
measured by or payable in Stock (other than Grants described in Sections 7, 8, 9, and 10 of the Plan) as described in Section 11. 
 (t)
“Participant” means an Employee, Consultant or Non-Employee Director designated by the Committee to participate in the Plan. 
 (u) “Plan” means this 2005 Omnibus Equity Compensation Plan, as in effect from time to time. 
 (v) “Radnor
Holdings” means Radnor Holdings Corporation. 
 (w) “Stock” means the common stock of Radnor Holdings or such other
securities of Radnor Holdings as may be substituted for Stock pursuant to Section 5(c) or Section 20. 
 (x) “Stock
Award” means an award of Stock, as described in Section 9. 
 (y) “Stock Unit” means an award of a phantom
unit, representing a share of Stock, as described in Section 8. 
 3. Administration 
 (a) Committee. The Plan shall be administered and interpreted by the Board or by a committee consisting of members of the Board, which shall be
appointed by the Board. After an initial public offering of the Company’s stock as described in Section 20(b) (a “Public Offering”), the Plan shall be administered and interpreted by the Committee or its successor with respect to
grants to Employees and Consultants. The Plan shall be administered and interpreted by the Board, or by a committee of directors to whom the Board has delegated responsibility, with respect to grants to Non-Employee Directors. Ministerial functions
may be performed by an administrative committee comprising Company Employees appointed by the Committee. 
 (b) Committee Authority.
The Committee shall have the sole authority to (i) determine the Participants to whom Grants shall be made under the Plan, (ii) determine the type, size and terms and conditions of the Grants to be made to each such Participant,
(iii) determine the time when the grants will be made and the duration of any applicable exercise or restriction period, including the criteria for exercisability and the acceleration of exercisability, (iv) amend the terms and conditions
of any previously issued Grant, subject to the provisions of Section 18 below, and (v) deal with any other matters arising under the Plan. 
  

 4 

 (c) Committee Determinations. The Committee shall have full power and express discretionary
authority to administer and interpret the Plan, to make factual determinations and to adopt or amend such rules, regulations, agreements and instruments for implementing the Plan and for the conduct of its business as it deems necessary or
advisable, in its sole discretion. The Committee’s interpretations of the Plan and all determinations made by the Committee pursuant to the powers vested in it hereunder shall be conclusive and binding on all persons having any interest in the
Plan or in any awards granted hereunder. All powers of the Committee shall be executed in its sole discretion, in the best interest of the Company, not as a fiduciary, and in keeping with the objectives of the Plan and need not be uniform as to
similarly situated individuals. 
 4. Grants 
 (a) Grants under the Plan may consist of Incentive Stock Options and Nonqualified Stock Options as described in Section 7, Stock Units as described in Section 8, Stock Awards as described in Section 9,
Dividend Equivalents as described in Section 10 and Other Stock-Based Awards as described in Section 11. All Grants shall be subject to the terms and conditions set forth herein and to such other terms and conditions consistent with the
Plan as the Committee deems appropriate and as are specified in writing by the Committee to the individual in the Grant Instrument. 
 (b)
All Grants shall be made conditional upon the Participant’s acknowledgement, in writing or by acceptance of the Grant, that all decisions and determinations of the Committee shall be final and binding on the Participant, his or her
beneficiaries and any other person having or claiming an interest under such Grant. Grants under a particular Section of the Plan need not be uniform as among the Participants. Notwithstanding any provision of the Plan to the contrary, Grants to
Participants, if made, will be made contingent upon, and subject to, stockholder approval of the Plan. 
 5. Shares Subject to the
Plan 
 (a) Shares Authorized. Subject to adjustment as described below, the aggregate number of shares of common stock of the
Company (“Company Stock”) may be issued or transferred under the Plan is the sum of: 
 1,651 shares, plus 
 as of the first trading day following the effective date of a Public Offering, there shall be automatically added to the number of authorized shares
under the Plan an additional positive number equal to the lesser of 15% of the shares of Company Stock sold in the Public Offering or 537 shares, plus 
 as of the first trading day in January each year during the term of the Plan described in Section 19 (excluding extensions) beginning January, 2006, there shall be automatically added to the number of authorized
shares under the Plan an additional positive number equal to the lesser of 2.5% of the shares of Company Stock outstanding on the last trading day of the immediately preceding December, or 311 shares. 
  

 5 

 The maximum number of authorized shares includes all shares authorized under the Prior Plan. The shares may be authorized
but unissued shares of Stock or reacquired shares of Stock, including shares purchased by the Company on the open market for purposes of the Plan. If and to the extent Options granted under the Plan terminate, expire, or are canceled, forfeited,
exchanged or surrendered without having been exercised or if any Stock Awards, Stock Units, Dividend Equivalents or Other Stock-Based Awards are forfeited or terminated, the shares subject to such Grants shall again be available for purposes of the
Plan. Shares of Stock surrendered in payment of the Option Price of an Option or any withholding taxes, shall again be available for issuance or transfer under the Plan. To the extent that any Grants are paid in cash, and not in shares of Stock, any
shares previously reserved for issuance or transfer pursuant to such Grants shall again be available for issuance or transfer under the Plan. 
 (b) Individual Limits. Grants under the Plan may be expressed in cash, in shares of Stock or in a combination of the two, as the Committee determines. After a Public Offering, the maximum aggregate number of shares of Stock that
shall be subject to Grants made under the Plan to any individual during any calendar year shall be 165 shares, subject to adjustment as described below. After a Public Offering, a Participant may not accrue Dividend Equivalents during any calendar
year in excess of $250,000. After a Public Offering, to the extent that Grants made under the Plan are expressed in dollar amounts, the maximum amount payable to any individual during any calendar year shall be $4,000,000. 
 (c) Adjustments. If there is any change in the number or kind of shares of Stock outstanding (i) by reason of a stock dividend, spinoff,
recapitalization, stock split, or combination or exchange of shares, (ii) by reason of a merger, reorganization or consolidation, (iii) by reason of a reclassification or change in par value, or (iv) by reason of any other
extraordinary or unusual event affecting the outstanding Stock as a class without Radnor Holdings’ receipt of consideration, or if the value of outstanding shares of Stock is substantially reduced as a result of a spinoff or Radnor
Holdings’ payment of an extraordinary dividend or distribution, the maximum number of shares of Stock available for issuance under the Plan, the maximum number of shares of Stock for which any individual may receive Grants in any year, the
number of shares covered by outstanding Grants, the kind of shares to be issued or transferred under the Plan, and the price per share or the applicable market value of such Grants may be appropriately adjusted by the Committee to reflect any
increase or decrease in the number of, or change in the kind or value of, issued shares of Stock to preclude, to the extent practicable, the enlargement or dilution of rights and benefits under such Grants; provided, however, that any fractional
shares resulting from such adjustment shall be eliminated. Any adjustments determined by the Committee shall be final, binding and conclusive. 
  

 6 

 6. Eligibility for Participation 
 (a) Eligible Persons. All Employees, including Employees who are officers or members of the Board, all Consultants and all Non-Employee Directors
shall be eligible to participate in the Plan. 
 (b) Selection of Participants. The Committee shall select the Employees, Consultants
and Non-Employee Directors to receive Grants and shall determine the number of shares of Stock subject to each Grant. 
 7. Options

 (a) General Requirements. The Committee may grant Options to an Employee, Consultant or Non-Employee Director upon such terms
and conditions as the Committee deems appropriate under this Section 7. 
 (b) Number of Shares. The Committee shall determine
the number of shares of Stock that will be subject to each Grant of Options to Employees, Consultants and Non-Employee Directors. 
 (c)
Type of Option; Price and Term. 
 (i) The Committee may grant Incentive Stock Options or Nonqualified Stock Options or any combination
of Incentive Stock Options and Nonqualified Stock Options. Incentive Stock Options may be granted only to employees of the Company or its parents or subsidiaries, as defined in Code section 424. Nonqualified Stock Options may be granted to Employees
and Non-Employee Directors. 
 (ii) The Option Price shall be determined by the Committee and may be equal to or greater than the Fair Market
Value on the Date of Grant; provided, however, that an Incentive Stock Option may not be granted to an Employee who, at the Date of Grant, owns stock possessing more than 10% of the total combined voting power of all classes of stock of Radnor
Holdings or any parent or subsidiary of Radnor Holdings, as defined in Code section 424, unless the Option Price is not less than 110% of the Fair Market Value on the Date of Grant. 
 (iii) The Committee shall determine the term of each Option, which shall not exceed ten years from the Date of Grant. However, an Incentive Stock Option
that is granted to an Employee who, at the Date of Grant, owns stock possessing more than 10% of the total combined voting power of all classes of stock of Radnor Holdings, or any parent or subsidiary of Radnor Holdings, as defined in Code section
424, may not have a term that exceeds five years from the Date of Grant. 
 (d) Exercisability of Options. 
 (i) Options shall become exercisable in accordance with such terms and conditions as may be determined by the Committee and specified in the Grant
Instrument. The Committee may accelerate the exercisability of any or all outstanding Options at any time for any reason. 
  

 7 

 (ii) Options granted to persons who are non-exempt employees under the Fair Labor Standards Act of 1938,
as amended, may not be exercisable for at least six months after the date of grant (except that such Options may become exercisable, as determined by the Committee, upon the Participant’s death, Disability or retirement, or upon a Change of
Control or other circumstances permitted by applicable regulations). 
 (e) Termination of Employment or Service. Except as provided
in the Grant Instrument, an Option may only be exercised while the Participant is employed by, or providing service to, the Company. The Committee shall specify in the Grant Instrument under what circumstances and during what time periods a
Participant may exercise an Option after termination of employment or service. 
 (f) Exercise of Options. A Participant may exercise
an Option that has become exercisable, in whole or in part, by delivering a notice of exercise to the Company. The Participant shall pay the Option Price and any withholding taxes for the Option (i) in cash, (ii) if permitted by the
Committee, by delivering shares of Stock owned by the Participant (including Stock acquired in connection with the exercise of an Option, subject to such restrictions as the Committee deems appropriate) and having an aggregate Fair Market Value on
the date of exercise equal to the Option Price or by attestation (on a form prescribed by the Committee) to ownership of shares of Stock having an aggregate Fair Market Value on the date of exercise equal to the Option Price, (iii) by payment
through a registered broker in accordance with procedures permitted by Regulation T of the Federal Reserve Board, or (iv) by such other method as the Committee may approve. Shares of Stock used to exercise an Option shall have been held by the
Participant for the requisite period of time to avoid adverse accounting consequences to the Company with respect to the Option. Payment for the shares pursuant to the Option, and any required withholding taxes, must be received by the time
specified by the Committee depending on the type of payment being made, but in all cases prior to the issuance of the Stock. 
 (g) Limits
on Incentive Stock Options. Each Incentive Stock Option shall provide that if the aggregate Fair Market Value of the Stock on the Date of Grant with respect to which Incentive Stock Options are exercisable for the first time by a Participant
during any calendar year, under the Plan or any other stock option plan of Radnor Holdings or a parent or subsidiary, as defined in Code section 424, exceeds $100,000, then the Option, as to the excess, shall be treated as a Nonqualified Stock
Option. 
 8. Stock Units 
 (a) General Requirements. The Committee may grant Stock Units to an Employee, Consultant or Non-Employee Director upon such terms and conditions as the Committee deems appropriate under this Section 8. Each Stock Unit shall
represent the right of the Participant to receive a share of Stock or an amount based on the value of a share of Stock. All Stock Units shall be credited to bookkeeping accounts on the Company’s records for purposes of the Plan. 
  

 8 

 (b) Terms of Stock Units. The Committee may grant Stock Units that are payable on terms and
conditions determined by the Committee, which may include payment based on achievement of performance goals. Stock Units may be paid at the end of a specified vesting or performance period, or payment may be deferred to a date authorized by the
Committee. The Committee shall determine the number of Stock Units to be granted and the requirements applicable to such Stock Units. 
 (c)
Payment With Respect to Stock Units. Payment with respect to Stock Units shall be made in cash, in Stock, or in a combination of the two, as determined by the Committee. The Grant Instrument shall specify the maximum number of shares that can
be issued under the Stock Units. 
 (d) Requirement of Employment or Service. The Committee shall determine in the Grant Instrument
under what circumstances a Participant may retain Stock Units after termination of the Participant’s employment or service, and the circumstances under which Stock Units may be forfeited. 
 9. Stock Awards 
 (a)
General Requirements. The Committee may issue or transfer shares of Stock to an Employee, Consultant or Non-Employee Director under a Stock Award, upon such terms and conditions as the Committee deems appropriate under this Section 9.
Shares of Stock issued or transferred pursuant to Stock Awards may be issued or transferred for consideration or for no consideration (except as required by applicable law), and subject to restrictions or no restrictions, as determined by the
Committee. The Committee may establish conditions under which restrictions on Stock Awards shall lapse over a period of time or according to such other criteria as the Committee deems appropriate, including restrictions based upon the achievement of
specific performance goals. 
 (b) Number of Shares. The Committee shall determine the number of shares of Stock to be issued or
transferred pursuant to a Stock Award and any restrictions applicable to such shares. 
 (c) Requirement of Employment or Service. The
Committee shall determine in the Grant Instrument under what circumstances a Participant may retain Stock Awards after termination of the Participant’s employment or service, and the circumstances under which Stock Awards may be forfeited.

 (d) Restrictions on Transfer. While Stock Awards are subject to restrictions, a Participant may not sell, assign, transfer, pledge
or otherwise dispose of the shares of a Stock Award except upon death as described in Section 15(a). Each certificate for a share of a Stock Award shall contain a legend giving appropriate notice of the restrictions in the Grant. The
Participant shall be entitled to have the legend removed when all restrictions on such shares have lapsed. The Company may retain possession of any certificates for Stock Awards until all restrictions on such shares have lapsed. 
  

 9 

 (e) Right to Vote and to Receive Dividends. The Committee shall determine to what extent, and
under what conditions, the Participant shall have the right to vote shares of Stock Awards and to receive any dividends or other distributions paid on such shares during the restriction period. 
 10. Dividend Equivalents. 
 (a)
General Requirements. When the Committee makes a Grant under the Plan, the Committee may grant Dividend Equivalents in connection with the Grant, under such terms and conditions as the Committee deems appropriate under this Section 10.
Dividend Equivalents may be paid to Participants currently or may be deferred, as determined by the Committee. All Dividend Equivalents that are not paid currently shall be credited to bookkeeping accounts on the Company’s records for purposes
of the Plan. Dividend Equivalents may be accrued as a cash obligation, or may be converted to Stock Units for the Participant, and deferred Dividend Equivalents may accrue interest, all as determined by the Committee. The Committee may provide that
Dividend Equivalents shall be payable based on the achievement of specific performance goals. 
 (b) Payment with Respect to Dividend
Equivalents. Dividend Equivalents may be payable in cash or shares of Stock or in a combination of the two, as determined by the Committee. 
 11. Other Stock-Based Awards 
 The Committee may grant other awards, including stock appreciation rights, that are
based on or measured by the value of Stock to Employees, Consultants or Non-Employee Directors, on such terms and conditions as the Committee deems appropriate under this Section 11. Other Stock-Based Awards may be granted subject to
achievement of performance goals or other conditions and may be payable in Stock or cash, or in a combination of the two, as determined by the Committee. The Committee may grant Dividend Equivalents with respect to Other Stock-Based Awards.

 12. Qualified Performance-Based Compensation 
 (a) Designation as Qualified Performance-Based Compensation. The Committee may determine that Stock Units, Stock Awards, Dividend Equivalents or Other Stock-Based Awards granted to an Employee shall be
considered “qualified performance-based compensation” under Code section 162(m) in which case the provisions of this Section 12 shall apply. To the extent that Grants of Stock Units, Stock Awards, Dividend Equivalents or Other
Stock-Based Awards designated as “qualified performance-based compensation” under Code section 162(m) are made, no such Grant may be made as an alternative to another Grant that is not designated as “qualified performance based
compensation” but instead must be separate and apart from all other Grants made. 
 (b) Performance Goals. When Grants are made
under this Section 12, the Committee shall establish in writing (i) the objective performance goals that must be met, 
  

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 (ii) the period during which performance will be measured, (iii) the maximum amounts that may be paid if the
performance goals are met, and (iv) any other conditions that the Committee deems appropriate and consistent with the Plan and the requirements of Code section 162(m) for “qualified performance-based compensation.” The performance
goals shall satisfy the requirements for “qualified performance-based compensation,” including the requirement that the achievement of the goals be substantially uncertain at the time they are established and that the performance 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 Committee shall not have discretion to increase the amount of compensation that is
payable upon achievement of the designated performance goals, but may reduce the amount of compensation that is payable, pursuant to Grants identified by the Committee as “qualified performance-based compensation.” 
 (c) Criteria Used for Objective Performance Goals. In setting the performance goals for Grants designated as “qualified performance-based
compensation” pursuant to this Section 13, the Committee shall use objectively determinable performance goals based on one or more of the following criteria: pre- or after-tax net earnings, sales or revenue, operating earnings, operating
cash flow, return on net assets, return on stockholders’ equity, return on assets, return on capital, stock price growth, stockholder returns, gross or net profit margin, earnings per share, price per share, market share, or strategic business
criteria consisting of one or more Company or Business Unit objectives based on meeting specified revenue goals, market penetration goals, geographic business expansion goals, cost targets, product development goals, goals relating to acquisitions
or divestitures, or any other objective measure derived from any of the foregoing criteria. The performance goals may relate to the Participant’s business unit or the performance of the Company as a whole, or any combination of the foregoing.
Performance goals need not be uniform as among Participants. 
 (d) Timing of Establishment of Goals. The Committee shall establish
the performance goals in writing either before the beginning of the performance 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 Code section 162(m). 
 (e) Certification of Results. The Committee shall certify the performance results for the performance period specified in the Grant Instrument after the performance period ends. The Committee shall determine the amount, if any, to be
paid pursuant to each Grant based on the achievement of the performance goals and the satisfaction of all other terms of the Grant Instrument. 
 (f) Death, Disability or Other Circumstances. The Committee may provide in the Grant Instrument that Grants under this Section 12 shall be payable or restrictions shall lapse, in whole or in part, in the event of the
Participant’s death or disability during the Performance Period, a Change of Control or under other circumstances consistent with the Treasury regulations and rulings under Code section 162(m). 
  

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 13. Deferrals 
 The Committee may permit or require a Participant to defer receipt of the payment of cash or the delivery of shares that would otherwise be due to the Participant in connection with any Grant. The Committee shall
establish rules and procedures for any such deferrals, consistent with applicable requirements of Code section 409A. 
 14. Right of
First Refusal; Repurchase Right 
 (a) Offer. Prior to a Public Offering, if at any time an individual desires to sell,
encumber, or otherwise dispose of shares of Company Stock that were distributed to him or her under this Plan and that are transferable, the individual may do so only pursuant to a bona fide written offer, and the individual shall first offer the
shares to the Company by giving the Company written notice disclosing: (i) the name of the proposed transferee of the Company Stock; (ii) the certificate number and number of shares of Company Stock proposed to be transferred or
encumbered; (iii) the proposed price; (iv) all other terms of the proposed transfer; and (v) a written copy of the proposed offer. Within 60 days after receipt of such notice, the Company shall have the option to purchase all or part
of such Company Stock at the price and on the terms described in the written notice; provided that the Company may pay such price in installments over a period not to exceed four years, at the discretion of the Committee. 
 (b) Sale. In the event the Company (or a stockholder, as described below) does not exercise the option to purchase Company Stock, as provided
above, the individual shall have the right to sell, encumber, or otherwise dispose of the shares of Company Stock described in subsection (a) at the price and on the terms of the transfer set forth in the written notice to the Company, provided
such transfer is effected within 15 days after the expiration of the option period. If the transfer is not effected within such period, the Company must again be given an option to purchase, as provided above. 
 (c) Assignment of Rights. The Committee, in its sole discretion, may waive the Company’s right of first refusal and repurchase right under
this Section 14. If the Company’s right of first refusal or repurchase right is so waived, the Committee may, in its sole discretion, assign such right to the remaining stockholders of the Company in the same proportion that each
stockholder’s stock ownership bears to the stock ownership of all the stockholders of the Company, as determined by the Committee. To the extent that a stockholder has been given such right and does not purchase his or her allotment, the other
stockholders shall have the right to purchase such allotment on the same basis. 
 (d) Purchase by the Company. Prior to a Public
Offering, if a Grantee ceases to be employed by, or provide service to, the Employer, the Company shall have the right to purchase all or part of any Company Stock distributed to him or her under this Plan at its then current Fair Market Value (as
defined in Section 5(b)) (or at such other price as may be established in the Grant Instrument); provided, however, that such repurchase shall be made in accordance with applicable accounting rules to avoid adverse accounting treatment. If the
Company elects to purchase all or part of any Company Stock held by a Grantee pursuant to this Section 14(d), the purchase shall occur within 60 days from the date the Grantee is notified of the Company’s intent to repurchase his Company
Stock. 
  

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 (e) Public Offering. On and after a Public Offering, the Company shall have no further right to
purchase shares of Company Stock under this Section 14. 
 (f) Stockholder’s Agreement. Notwithstanding the provisions of
this Section 14, if the Committee requires that a Grantee execute a stockholder’s agreement with respect to any Company Stock distributed pursuant to this Plan, which contains a right of first refusal or repurchase right, the provisions of
this Section 14 shall not apply to such Company Stock, unless the Committee determines otherwise. 
 15. Withholding of Taxes

 (a) Required Withholding. All Grants under the Plan shall be subject to applicable federal (including FICA), state and local tax
withholding requirements. The Company may require that the Participant or other person receiving or exercising Grants pay to the Company the amount of any federal, state or local taxes that the Company is required to withhold with respect to such
Grants, or the Company may deduct from other wages paid by the Company the amount of any withholding taxes due with respect to such Grants. 
 (b) Election to Withhold Shares. If the Committee so permits, a Participant may elect to satisfy the Company’s tax withholding obligation with respect to Grants paid in Stock by having shares withheld, at the time such Grants
become taxable, up to an amount that does not exceed the minimum applicable withholding tax rate for federal (including FICA), state and local tax liabilities. The election must be in a form and manner prescribed by the Committee. 
 16. Transferability of Grants 
 (a) Restrictions on Transfer. Except as described in subsection (b) below, only the Participant may exercise rights under a Grant during the Participant’s lifetime, and a Participant may not transfer those rights except by
will or by the laws of descent and distribution. When a Participant dies, the personal representative or other person entitled to succeed to the rights of the Participant may exercise such rights. Any such successor must furnish proof satisfactory
to the Company of his or her right to receive the Grant under the Participant’s will or under the applicable laws of descent and distribution. 
 (b) Transfer of Nonqualified Stock Options to or for Family Members. Notwithstanding the foregoing, the Committee may provide, in a Grant Instrument, that a Participant may transfer Nonqualified Stock Options to family members, or
one or more trusts or other entities for the benefit of or owned by family members, consistent with the applicable securities laws, according to such terms as the Committee may determine; provided that the Participant receives no consideration for
the transfer of an Option and the transferred Option shall continue to be subject to the same terms and conditions as were applicable to the Option immediately before the transfer. 
  

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 17. Consequences of a Change of Control 
 (a) Notice and Acceleration. Upon a Change of Control, unless the Committee determines otherwise, (i) the Company shall provide each
Participant who holds outstanding Grants with written notice of the Change of Control, (ii) all outstanding Options shall automatically accelerate and become fully exercisable, (iii) the restrictions and conditions on all outstanding Stock
Awards shall immediately lapse, (iv) all Stock Units and shall become payable in cash or in stock in an amount not less than their target value, as determined by the Committee, and (v) Dividend Equivalents and Other Stock-Based Awards
shall become payable in full in cash, in amounts determined by the Committee. 
 (b) Assumption of Grants. Upon a Change of Control
where the Company is not the surviving corporation (or survives only as a subsidiary of another corporation), unless the Committee determines otherwise, all outstanding Options that are not exercised shall be assumed by, or replaced with comparable
options by, the surviving corporation (or a parent or subsidiary of the surviving corporation), and other Grants that remain outstanding shall be converted to similar grants of the surviving corporation (or a parent or subsidiary of the surviving
corporation). 
 (c) Other Alternatives. Notwithstanding the foregoing, subject to subsection (d) below, in the event of a Change
of Control, the Committee may take any of the following actions with respect to any or all outstanding Grants, without the consent of any Participant: (i) the Committee may require that Participants surrender their outstanding Options in
exchange for a payment by the Company, in cash or Stock as determined by the Committee, in an amount equal to the amount by which the then Fair Market Value subject to the Participant’s unexercised Options exceeds the Option Price, if any,
(ii) after giving Participants an opportunity to exercise their outstanding Options, the Committee may terminate any or all unexercised Options at such time as the Committee deems appropriate, and (iii) with respect to Participants holding
Stock Units, Dividend Equivalents or Other Stock-Based Awards, the Committee may determine that such Participants shall receive a payment in settlement of such Stock Units, Dividend Equivalents or Other Stock-Based Awards, in such amount and form as
may be determined by the Committee. Such surrender, termination or settlement shall take place as of the date of the Change of Control or such other date as the Committee may specify. 
 (d) Committee. The Committee making the determinations under this Section 16 following a Change of Control must be comprised of the same
members as those of the Committee immediately before the Change of Control. If the Committee members do not meet this requirement, the automatic provisions of subsections (a) and (b) shall apply, and the Committee shall not have discretion
to vary them. 
 (e) Other Transactions. The Committee may provide in a Grant Instrument that a sale or other transaction involving a
Subsidiary or other business unit of the Company shall be considered a Change of Control for purposes of a Grant, or the Committee may establish other provisions that shall be applicable in the event of a specified transaction. 
  

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 18. Requirements for Issuance of Shares 
 (a) Limitations On Issuance Or Transfer Of Shares. No Company Stock shall be issued or transferred in connection with any Grant hereunder unless
and until all legal requirements applicable to the issuance or transfer of such Company Stock have been complied with to the satisfaction of the Committee. The Committee shall have the right to condition any Grant made to any Grantee hereunder on
such Grantee’s undertaking in writing to comply with such restrictions on his or her subsequent disposition of such shares of Company Stock as the Committee shall deem necessary or advisable, and certificates representing such shares may be
legended to reflect any such restrictions. Certificates representing shares of Company Stock issued or transferred under the Plan will be subject to such stop-transfer orders and other restrictions as may be required by applicable laws, regulations
and interpretations, including any requirement that a legend be placed thereon. 
 (b) Stockholder’s Agreement. The Committee may
require that a Grantee execute a stockholder’s agreement, with such terms as the Committee deems appropriate, with respect to any Company Stock issued or distributed pursuant to this Plan. 
 (c) Lock-Up Period. As a condition to receiving any Grant under the Plan, a Grantee agrees that, if so requested by the Company or any
representative of the underwriters (the “Managing Underwriter”) in connection with any underwritten offering of securities of the Company under the Securities Act of 1933, as amended (the “Securities Act”), the Grantee (including
any successor or assigns) shall not sell or otherwise transfer any shares or other securities of the Company during the 30-day period preceding and the 180-day period following the effective date of a registration statement of the Company filed
under the Securities Act for such underwriting (or such shorter period as may be requested by the Managing Underwriter and agreed to by the Company) (the “Market Standoff Period”). The Company may impose stop-transfer instructions with
respect to securities subject to the foregoing restrictions until the end of such Market Standoff Period. 
 19. Amendment and
Termination of the Plan 
 (a) Amendment. The Board may amend or terminate the Plan at any time; provided, however, that the
Board shall not amend the Plan without approval of the stockholders of the Company if such approval is required in order to comply with the Code or applicable laws, or to comply with applicable stock exchange requirements. No amendment or
termination of this Plan shall, without the consent of the Participant, materially impair any rights or obligations under any Grant previously made to the Participant under the Plan, unless such right has been reserved in the Plan or the Grant
Instrument, or except as provided in Section 20(b) below. Notwithstanding any provision of the Plan to the contrary, the Board may amend the Plan in such manner as it deems appropriate in the event of a change in applicable law or regulations.

 (b) No Repricing Without Stockholder Approval. Notwithstanding anything in the Plan to the contrary, the Committee may not reprice
Options, nor may the Board amend the Plan to permit repricing of Options, unless the stockholders of the Company provide prior approval for such repricing. The term “repricing” shall have the meaning given that term in Section 303A(8)
of the New York Stock Exchange Listed Company Manual, as in effect from time to time, or any other substantially equivalent successor rule. 
  

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 (c) Stockholder Approval for “Qualified Performance-Based Compensation.” After a Public
Offering, if Grants are made under Section 12 above, the Plan 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
previously approved the provisions of Section 12, if additional Grants are to be subject to Section 12 and if required by Code section 162(m) or the regulations thereunder. Any such reapproval shall not affect outstanding grants made
within the five-year period following the year in which the previous approval was obtained. 
 (d) Termination of Plan. The Plan shall
terminate on the day immediately preceding the tenth anniversary of its Effective Date, unless the Plan is terminated earlier by the Board or is extended by the Board with the approval of the stockholders. The termination of the Plan shall not
impair the power and authority of the Committee with respect to an outstanding Grant. 
 20. Effective Date of the Plan

 (a) Effective Date. The Plan shall be effective as of October 7, 2005, subject to stockholder approval of the Plan.

 (b) Public Offering. The provisions of the Plan that refer to a Public Offering, or that refer to, or are applicable to persons
subject to, section 16 of the Exchange Act or section 162(m) of the Code, shall be effective, if at all, upon the initial registration of the Company Stock under section 12(g) of the Exchange Act, and shall remain effective thereafter for so long as
such stock is so registered. 
 21. Miscellaneous 
 (a) Grants in Connection with Corporate Transactions and Otherwise. Nothing contained in this Plan shall be construed to (i) limit the right of the Committee to make Grants under this Plan in connection
with the acquisition, by purchase, lease, merger, consolidation or otherwise, of the business or assets of any corporation, firm or association, including Grants to employees thereof who become Employees, or for other proper corporate purposes, or
(ii) limit the right of the Company to grant stock options or make other stock-based awards outside of this Plan. Without limiting the foregoing, the Committee may make a Grant to an employee of another corporation (the “prior
corporation”) who becomes an Employee by reason of a corporate merger, consolidation, acquisition of stock or property, reorganization or liquidation involving the Company in substitution for a grant made by such prior corporation. The
Committee shall prescribe the provisions of the substitute Grants, including such provisions as are necessary to cause the substitute Grant to be economically equivalent in value to the grant made by the prior corporation. The terms and conditions
of the Grants may vary from the terms and conditions required by the Plan and from those of the substituted stock incentives, as determined by the Committee. 
  

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 (b) Compliance with Law. The Plan, the exercise of Options and the obligations of the Company to
issue or transfer shares of Company Stock under Grants shall be subject to all applicable laws and to approvals by any governmental or regulatory agency as may be required. After a Public Offering of the Company’s Stock, with respect to persons
subject to section 16 of the Exchange Act, it is the intent of the Company that the Plan and all transactions under the Plan comply with all applicable provisions of Rule 16b-3 or its successors under the Exchange Act. In addition, it is the intent
of the Company that the Plan and Grants made under the Plan that are subject to Section 12 comply with the applicable provisions of section 162(m) and section 422 of the Code, and that, to the extent applicable, Grants made under the Plan
comply with the requirements of section 409A of the Code and the regulations thereunder. To the extent that any legal requirement as set forth in the Plan ceases to be required under applicable law, that Plan provision shall cease to apply. The
Committee may revoke any Grant if it is contrary to law or modify a Grant to bring it into compliance with any valid and mandatory government regulation. The Committee may agree to limit its authority under this Section. 
 (c) Enforceability. The Plan shall be binding upon and enforceable against the Company and its successors and assigns. 
 (d) Funding of the Plan; Limitation of Rights. This Plan shall be unfunded. The Company shall not be required to establish any special or separate
fund or to make any other segregation of assets to assure the payment of any Grants under this Plan. Nothing contained in the Plan and no action taken pursuant hereto shall create or be construed to create a fiduciary relationship between the
Company and any Participant or any other person. No Participant or any other person shall under any circumstances acquire any property interest in any specific assets of the Company. To the extent that any person acquires a right to receive payment
from the Company hereunder, such right shall be no greater than the right of any unsecured general creditor of the Company. 
 (e) Rights
of Participants. Nothing in this Plan shall entitle any Employee, Consultant, Non-Employee Director or other person to any claim or right to receive a Grant under this Plan. Neither this Plan nor any action taken hereunder shall be construed as
giving any individual any rights to be retained by or in the employment or service of the Company. 
 (f) No Fractional Shares. No
fractional shares of Stock shall be issued or delivered pursuant to the Plan or any Grant. The Committee shall determine whether cash, other awards or other property shall be issued or paid in lieu of such fractional shares or whether such
fractional shares or any rights thereto shall be forfeited or otherwise eliminated. 
 (g) Participants Subject to Taxation Outside the
United States. With respect to Participants who are subject to taxation in countries other than the United States, the Committee may make Grants on such terms and conditions as the Committee deems appropriate to comply with the laws of the
applicable countries, and the Committee may create such procedures, addenda and subplans and make such modifications as may be necessary or advisable to comply with such laws. 
  

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 (h) Governing Law. The validity, construction, interpretation and effect of the Plan and Grant
Instruments issued under the Plan shall be governed and construed by and determined in accordance with the laws of the Commonwealth of Pennsylvania, without giving effect to the conflict of laws provisions thereof. 
  

 18

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