Document:

EX-10.9

 Exhibit 10.9 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into as of the 9th day of October, 2013, by and between Recro
Pharma, Inc., a Pennsylvania corporation (the “Company”), and Donna Nichols, an individual (the “Executive”). 

BACKGROUND 

WHEREAS, the Company anticipates completing a financing of greater than $10 million (the “Transaction”) within the next few months;

 WHEREAS, effective and conditioned upon the closing of the Transaction, the Company desires to employ Executive, and Executive desires to
accept such employment, subject to the terms and further conditions set forth herein. 
 NOW, THEREFORE, in consideration of the mutual
covenants and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows: 

1. Employment and Duties. From and after the closing of the Transaction (the “Effective Date”), the Company shall employ
Executive as Controller and Chief Accounting Officer. In such capacity, Executive shall perform all such duties as are properly assigned to him/her by the Company’s President (the “President”) and/or Board of Directors (the
“Board”), and shall use his/her reasonable best efforts to promote the interests of the Company. 
 2. Term. The term of
Executive’s employment hereunder shall commence as of the Effective Date and shall continue for a period of one (1) year. From and after the initial term, this Agreement shall automatically renew for additional one (1) year periods,
unless and until either party gives the other no less than thirty (30) days’ prior written notice of his/her/its intent not to renew. 

3. Compensation. From and after the Effective Date, the Company shall pay Executive in accordance with its normal payroll practices
(but not less frequently than monthly) an annual salary at a rate of One Hundred and Eighty Thousand Dollars ($180,000) per year (“Base Salary”). Executive’s Base Salary may be reviewed and/or adjusted from time to time in the sole
discretion of the President and/or the Board. 
 4. Other Benefits. 

(a) Bonuses. Executive will qualify to participate in the Company’s incentive bonus program. The current intent is for the Company
to establish a target bonus amount for Executive, tied to set performance goals and measures, as determined by the President and approved by the Board and/or the compensation committee thereof; provided however, that the Company reserves the right
to change or terminate any bonus program at any time in the Board’s sole discretion. 

 (b) Benefits Plans. Executive shall be entitled to participate in all health insurance,
savings and retirement, and other benefit plans, if any, that are from time to time applicable to other employees of the Company. 
 (c)
Vacation. Executive shall be entitled to paid vacation time in accordance with the plans, practices, policies, and programs agreed to by the President and/or the Board. 

(d) Expense Reimbursement. Executive shall be entitled to receive reimbursement for all reasonable employment-related expenses incurred
by Executive upon the receipt by the Company of an accounting in accordance with practices, policies and procedures applicable to other employees of the Company. 

5. Confidential Information. 

(a) Executive agrees at all times during the term of his/her employment with the Company and thereafter, to hold in strictest confidence, and
not to use, except for the benefit of the Company, or to disclose to any person or entity (“Person”) without prior written authorization of the Company, any Confidential Information of the Company. Executive understands that
“Confidential Information” means Inventions (as defined herein) and any other information of the Company and/or its affiliates disclosed or made available to the Executive, whether before or during the term hereof, including but not
limited to financial information, technical and non-technical data, services, products, processes, operations, reports, analyses, test results, technology, samples, specifications, protocols, performance standards, formulations, compounds, know-how,
methodologies, trade secrets, trade practices, marketing plans and materials, strategies, forecasts, research, concepts, ideas, and names, addresses and any other characteristics or identifying information of the Company’s existing or potential
investors, licensors, licensees, suppliers, customers or employees. Confidential Information shall not include any information Executive can establish by competent proof is or becomes public knowledge or part of the public domain through no act or
omission of Executive. Notwithstanding the foregoing, Executive shall be permitted to disclose Confidential Information pursuant to a court order, government order or any other legal requirement of disclosure if no suitable protective order or
equivalent remedy is available, provided that Executive gives the Company written notice of such court order, government order or legal requirement of disclosure immediately upon knowledge thereof and allows the Company a reasonable opportunity to
seek to obtain a protective order or other appropriate remedy prior to such disclosure to the extent permitted by law. 
 (b) Employee
agrees that he/she shall not, during his/her employment with Company, improperly use or disclose any proprietary information or trade secrets of any former employer of Employee or other Person and that Employee will not bring onto the premises of
Company any unpublished documents or proprietary information belonging to any such former employer or Person unless consented to in writing by such former employer or Person. 

(c) Employee recognizes that Company has received and in the future will receive from third parties certain confidential or proprietary
information subject to a duty on Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. Employee agrees to hold all such confidential or proprietary information in the

  
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strictest confidence and not to disclose it to any Person, or to use it except as necessary in carrying out his/her work for Company consistent with Company’s agreement with such third
party. 
 6. Inventions. 

(a) Employee agrees that he/she shall promptly make full written disclosure to Company, shall hold in trust for the sole right and benefit of
Company, shall assign and hereby does assign to Company, or its designee, all of Employee’s right, title, and interest in and to any and all inventions, original works of authorship, developments, concepts, improvements, designs, discoveries,
ideas, trademarks or trade secrets, whether or not patentable or registerable under copyright or similar laws, which Employee may, solely or jointly, conceive or develop or reduce to practice during the period of time Employee is in the employ of
Company that relate to the Company and/or its products (collectively referred to as “Inventions”). Employee further acknowledges that all original works of authorship which are made by Employee (solely or jointly with others) within the
scope of and during the period of his/her employment with Company and which are protectable by copyright are “works made for hire”, as that term is defined in the United States Copyright Act. Employee understands and agrees that the
decision whether or not to commercialize or market any invention developed by Employee (solely or jointly with others) is within Company’s sole discretion and for Company’s sole benefit and that no royalty will be due to Employee as a
result of Company’s efforts to commercialize or market any such invention. 
 (b) Employee agrees to keep and maintain adequate and
current written records of all Inventions made by Employee (solely or jointly with others) during the term of his/her employment with Company. The records will be in the form of notes, sketches, drawings, and any other format that may be specified
by Company. The records will be available to and remain the sole property of Company at all times. 
 (c) If Company is unable because of
Employee’s mental or physical incapacity or for any other reason to secure his/her signature on any such document, then Employee hereby irrevocably designates and appoints Company and its duly authorized officers and agents as his/her agent and
attorney-in-fact to act for and in Employee’s behalf and stead to execute and file any such document and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent or copyright registrations thereon with
the same legal force and effect as if executed by Employee. 
 7. Returning Company Documents. Executive agrees that, at the time of
leaving the employ of the Company, he/she shall deliver to the Company (and will not keep in his/her possession, recreate or deliver to anyone else) any and all devices, records, data, notes, reports, proposals, lists, correspondence, materials,
equipment, other documents or property, or reproductions of any of the aforementioned items developed by Executive pursuant to his/her employment with the Company or otherwise belonging to the Company, its successors or assigns. 

  
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 8. Nonsolicitation and Noncompetition. 

(a) Employee agrees that during the term of his/her employment with the Company and for a period of one (1) year immediately following
the termination of Employee’s employment with Company for any reason whatsoever, whether with or without cause, (i) Employee shall not, either directly or indirectly, solicit, induce, recruit or encourage any employees of the Company
and/or its affiliates to leave their employment, or take away such employees, or attempt to solicit, induce, recruit, encourage or take away employees of Company and/or its affiliates, either for Employee or for any other Person and
(ii) neither the Employee, nor any firm, organization or corporation in which he is interested, shall, for any reason, directly or indirectly, persuade or attempt to persuade any investor, licensor, licensee, supplier or customer of Company, or
any potential investor, licensor, licensee, supplier or customer to which Company and/or its affiliates have made a presentation or with which Company and/or its affiliates have been having discussions, to not transact business with Company and/or
its affiliates or to transact business with the Employee or any other Person as an alternative to or in addition to Company and/or its affiliates. 

(b) Employee agrees that during the term of his/her employment with the Company and for a period of one (1) year immediately following
the termination of Employee’s employment with Company for any reason whatsoever, whether with or without cause, Employee shall not, anywhere in the world, engage, either directly or indirectly, whether as a principal or as an agent, officer,
director, employee, consultant, shareholder, partner or otherwise, alone or in association with any other Person, in any Competing Business. For purposes of this Agreement, the term “Competing Business” shall mean any Person engaged in the
development or commercialization of products that are the same or substantially similar to, or that directly compete with, those products developed or commercialized by the Company. 

(c) In the event that the provisions of subparagraphs (a) or (b) above should be determined by a court or other tribunal of
competent jurisdiction to exceed the time, geographic, services or product limitations permitted by the applicable law in a jurisdiction in which enforcement of this Agreement is sought, then such provisions shall be deemed reformed in such
jurisdiction to the maximum time, geographic, service or product limitations permitted by such applicable law, and the parties hereby expressly grant any court or competent jurisdiction the authority to effect such reformation. 

9. Equitable Relief. The parties confirm that a violation by Employee of the provisions of this Agreement, including but not limited
to, the restrictions in Sections through 5 through 8, will cause Company irreparable harm that cannot be remedied adequately by monetary damages. Employee agrees that, in the event of such a violation, Company shall be entitled to temporary,
preliminary and permanent injunctive relief to restrain any such violation (without the posting of a bond) and to an equitable accounting of all earnings, profits and other benefits arising from the breach or violation, which rights shall be
cumulative and in addition to any other rights or remedies to which Company may be entitled. Company shall be entitled to commence action for such relief in any state or federal court in the Commonwealth of Pennsylvania, and Employee waives to the
fullest extent permitted by law any objection that he/she may now or hereafter have to the jurisdiction and venue of the court in any such proceeding. 

  
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 10. Termination of Employment. 

(a) Notwithstanding the provisions of Section 2 hereof, Executive’s employment shall terminate, or be subject to termination, as
follows: 
 (i) Death or Disability. In the event Executive dies, this Agreement shall terminate with a death benefit equal to 6
months continued salary. If Executive becomes physically or mentally disabled, as that term is defined in the Company’s then-current disability insurance policy(ies) applicable to Executive, the Company may, at its option, terminate
Executive’s employment hereunder effective immediately upon written notice. If the Company does not have in effect disability insurance covering Executive and/or if “disabled” is not defined therein, Executive shall be deemed disabled
hereunder at such time that he/she suffers a physical or mental disability that renders him/her unable to perform the duties of his/her employment on substantially a full-time basis, and such period of physical or mental disability continues without
substantial interruption for more than one hundred eighty (180) days. 
 (ii) By Company for Cause. The Company may, at any
time, terminate Executive’s employment hereunder for Cause. For purposes of this Agreement, the Company shall have “Cause” to terminate Executive’s employment hereunder upon (a) conduct amounting to fraud or dishonesty
against the Company; (b) the failure by Executive to substantially perform his/her duties hereunder or the material violation by Executive of any of the other provisions of this Agreement, which failure or material violation shall continue for
thirty (30) days or more following written notice to Executive; (c) Executive’s loss of any permit, license, accreditation or other authorization necessary to the Executive’s performance of his/her duties hereunder, as determined
by the Company in its sole discretion; (d) Executive’s conviction of a felony or a plea by Executive of nolo contendere to a felony; or (e) other conduct by Executive likely, in the reasonable judgment of the Board, to materially
adversely affect the reputation of the Company. 
 (iii) By Company for Convenience. The Company may terminate Executive’s
employment hereunder at any time, without or without Cause, upon no less than thirty (30) days prior written notice to Executive. 

(iv) By Executive for Convenience. Executive may terminate this Agreement at any time upon no less than thirty (30) days prior
written notice to the Company. 
 (v) By Executive upon a Change of Control. Executive may terminate this Agreement at any time
during the twelve (12) months following a Change of Control, if during such twelve-month period the Company and/or its successor (a) materially and adversely changes the status, responsibilities or perquisites of Executive, or
(b) requires Executive to be principally based at any office or location more than fifty (50) miles from Executive’s principal office immediately prior to the Change of Control. For purposes of this Agreement, a “Change in
Control” shall be deemed to have occurred upon the happening of any of the following events: (a) the effective date of the sale or disposition of all or substantially all of the assets of the Company; (b) the effective date of a
merger or consolidation of the Company with or into another Person, other than a merger or consolidation of the Company in which holders of shares of the Company’s stock immediately prior to the merger or consolidation will hold at least a

  
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majority of the ownership of the stock of the surviving corporation immediately after the merger or consolidation; (c) the date any entity, person or group (within the meaning of
Section 13(d)(3) or Section 14(d)(2) of the Securities Exchange Act of 1934, as amended), (other than (A) the Company or any of its subsidiaries or any employee benefit plan (or related trust) sponsored or maintained by the Company or
any of its subsidiaries or (B) any person who, on the date of this Agreement, shall have been the beneficial owner of at least twenty percent (20%) of the outstanding Common Stock), shall have become the beneficial owner of, or shall have
obtained voting control over, more than fifty percent (50%) of the outstanding shares of the Common Stock; (d) the first day after the date hereof when directors are elected such that a majority of the Board shall have been members of the
Board for less than twenty-four (24) months, unless the nomination for election of each new director who was not a director at the beginning of such twenty-four (24) month period was approved by a vote of at least two-thirds of the
directors then still in office who were directors at the beginning of such period; or (e) the date the stockholders of the Company approve (or the Board approves, if stockholder action is not required) a plan or other arrangement pursuant to
which the Company will be dissolved or liquidated. 
 (b) Severance. 

(i) In the event of termination of Executive’s employment by reason of death, the Company shall pay to Executive’s estate
Executive’s Base Salary, in accordance with its normal payroll practices (but not less frequently than monthly), for a period of six (6) months from the effective date of such termination, and continue health benefits, if applicable, for
the same period. 
 (ii) In the event of a nonrenewal or termination by the Company pursuant to Section 2 or Section 10(a)(iii),
or if Executive terminates this Agreement during the twelve (12) months after a Change of Control pursuant to Section 10(a)(v), the Company shall continue to pay Executive his/her Base Salary, in accordance with its normal payroll
practices (but not less frequently than monthly), and shall continue Executive’s health insurance benefits at Company’s expense (or such portion thereof as is then funded by the Company for other employees of the Company) for a period of
six (6) months from the effective date of such termination. 
 (iii) Except as expressly provided in this Section 10(b), upon the
termination of Executive’s employment, all payments hereunder shall cease except payments of Base Salary and reimbursement of expenses through the effective date of such termination. 

(c) The provisions of Sections 5, 6, 7, 8, 9, 10(b), 10(c), 11 and 12 shall survive expiration or termination of this Agreement. 

  
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 11. Notices. All notices, consents, waivers or other communications which are required or
permitted hereunder will be sufficient if given in writing and delivered personally, by overnight mail service, by fax transmission (which is confirmed) or by registered or certified mail, return receipt requested, postage prepaid, to the parties at
the addresses set forth below (or to such other addressee or address as will be set forth in a notice given in the same manner): 
  

			
	If to the Company:	  	Recro Pharma, Inc.
		  	490 Lapp Road
		  	Malvern, PA 19355, USA
		  	Attn: Gerri Henwood
		  	President
		
	If to the Executive:	  	Donna Nichols
		  	219 Lenape Dr.
		  	Berwyn, PA 19312

 All such notices will be deemed to have been given three business days after mailing if sent by registered or certified mail,
one business day after mailing if sent by overnight courier service, or on the date delivered or transmitted if delivered personally or sent by fax transmission. 

12. Miscellaneous. 
 (a)
No provision of this Agreement may be amended unless such amendment, modification or discharge is agreed to in writing signed by the parties hereto. 

(b) No waiver by any party hereto of any breach of, or compliance with, any condition or provision of this Agreement by the other party shall
be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No such waiver shall be enforceable unless expressed in a written instrument executed by the party against whom enforcement is
sought. 
 (c) This Agreement constitutes the entire agreement of the parties on the subject matter and no agreements or representations,
oral or otherwise, expressed or implied, with respect to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement. 

(d) This Agreement shall be binding upon and inure to the benefit of the Company, its successors and assigns, and Executive and his/her heirs,
executors, administrators and legal representatives. 
 (e) This Agreement shall be governed by, and construed in accordance with, the laws
of the Commonwealth of Pennsylvania without giving effect to its principles of conflicts of law. Exclusive jurisdiction for any dispute between the parties arising from or in connection with this Agreement and/or the relationship between Executive
and the Company shall lie with the federal and state courts located in the Commonwealth of Pennsylvania, and each party hereby consents to the personal jurisdiction of such courts. 

(f) 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
shall constitute one and the same instrument. 
 (g) This Agreement has been jointly drafted by the respective representatives of the
Company and Executive and no party shall be considered as being responsible for such drafting for the purpose of applying any rule construing ambiguities against the drafter or otherwise. No draft of this Agreement shall be taken into account in
construing this Agreement. 

  
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 [Execution page follows] 

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

			
	EMPLOYEE:
	
	 /s/ Donna M. Nichols

	  

	
	COMPANY:
	
	RECRO PHARMA, INC.
		
	By:	 	 /s/ Gerri Henwood

		 	Gerri Henwood, PresidentEX-10.10

 Exhibit 10.10 

RECRO PHARMA, INC. 

2008 STOCK OPTION PLAN 

1. Purpose. The Recro Pharma, Inc. 2008 Stock Option Plan is intended as an additional incentive to current and prospective
employees, consultants and directors of the Company to enter into or remain in the service or employ of the Company or any Affiliate and to devote themselves to the Company’s success. Under the Plan, the Company may provide such persons with
opportunities to acquire or increase their proprietary interests in the Company through options to purchase the Company’s Common Stock, grants of stock appreciation rights and awards of the Company’s Common Stock. Under the Plan, the
Company may grant (i) ISOs, (ii) Nonqualified Options, (iii) Stock Appreciation Rights and (iv) Stock Awards. 
 2.
Definitions. Capitalized terms not otherwise defined in the Plan shall have the following meanings: 

“Affiliate” means a corporation which is a parent corporation or a subsidiary corporation with respect to the Company
within the meaning of section 424(e) or (f) of the Code. 
 “Board” means the Board of Directors of the
Company. 
 “Cause” for termination of employment or service shall have the meaning ascribed thereto in the
Recipient’s employment or service agreement or, in the absence of such a definition, shall mean: (A) a breach by Recipient of his employment or service agreement with the Company or an Affiliate, which breach continues after written notice
is given to him (B) a breach of Recipient’s duty of loyalty to the Company or an Affiliate, including without limitation any act of dishonesty, embezzlement or fraud with respect to the Company or an Affiliate, (C) the commission by
Recipient of a felony, a crime involving moral turpitude or other act causing material harm to the Company’s or an Affiliate’s standing and reputation, (D) Recipient’s continued failure to perform his duties to the Company or an
Affiliate for a reason other than illness or incapacity (E) unauthorized disclosure of trade secrets or other confidential information belonging to the Company or an Affiliate, or (F) has breached any written noncompetition or
nonsolicitation agreement between the Recipient and the Company. 
 “Code” means the Internal Revenue Code of 1986,
as amended from time to time, or any successor statute or statutes thereto. Reference to any particular section of the Code shall include any successor section. 

“Common Stock” means the Common Stock, par value $0.01, of the Company. 

“Company” means Recro Pharma, Inc., a Pennsylvania corporation. 

“Disability” means, as determined by the Board, (a) the inability to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment that can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than 12 months or (b) Recipient’s becoming
disabled within the meaning of section 22(e)(3) of the Code. 

 “Fair Market Value” of a share of Common Stock on any day means the
value for such day as shall be determined in good faith by the Board on the basis of such considerations as the Board deems appropriate and is consistent with section 409A of the Code and the regulations issued thereunder. 

“Grant Date” means the effective date on which an Option is granted to an Optionee under the Plan. 

“ISO” means an Option granted under the Plan that is intended to qualify as an incentive stock option within the
meaning of section 422(b) of the Code. 
 “Nonqualified Option” means an Option granted under the Plan that is not
intended to qualify as an ISO. 
 “Option” means an option to purchase Common Stock granted under the Plan, which
may be designated as either an ISO or a Nonqualified Option. 
 “Option Documents” means written documents in such
form as approved from time to time by the Board, which shall be given to Optionees and shall set forth the terms and conditions of Options granted to Optionees under the Plan. 

“Optionee” means an employee, consultant or director to whom an Option is granted under the Plan. 

“Option Price” means the price at which Option Shares may be purchased under the terms of an Option. 

“Option Shares” means the shares of Common Stock that may be purchased by an Optionee upon exercise of an Option.

 “Plan” means the Recro Pharma, Inc. 2008 Stock Option Plan. 

“Public Offering” means the initial registration of the Common Stock under section 12(g) of the Securities Exchange
Act of 1934, as amended. 
 “Recipient” means an employee, consultant or director to whom an Option, Stock Award or
Stock Appreciation Right is granted under the Plan. 
 “SAR Shares” means the shares of Common Stock that may be
issued in connection with the Company’s payment upon the exercise of a Stock Appreciation Right. 
 “Stock
Appreciation Right” means a Recipient’s right to receive from the Company, in SAR Shares, cash or a combination thereof, an amount in excess, if any, of (i) if the Stock Appreciation Right is granted in connection with an Option, the
Fair Market Value of such Option Shares on the date of surrender of such Option Shares over the Option Price of such surrendered Option Shares, or (ii) if the Stock Appreciation Right is granted on a stand-alone basis, the Fair Market Value of
the Company’s Common Stock on the date of exercise over the initial basis of the Stock Appreciation Right as determined under the Stock Appreciation Right Agreement. 

  
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 “Stock Appreciation Right Agreement” means the agreement between the
Company and Recipient pursuant to which a Stock Appreciation Right is granted. 
 “Stock Award” means the award of
Common Stock granted to a Recipient under the Plan. 
 “Stock Award Shares” means shares of Common Stock which are
issued pursuant to a Stock Award under the Plan. 
 3. Administration. Prior to a Public Offering, the Plan shall be
administered by the Board. After an initial Public Offering of the Common Stock, the Plan shall be administered by a committee of Board members, which may consist of “outside directors” as defined under section 162(m) of the Code, and
related Treasury regulations, and “non-employee directors” as defined under Rule 16b-3 under the Securities Exchange Act of 1934. However, the Board may ratify or approve any grants as it deems appropriate, and the Board shall approve and
administer all grants made to non-employee directors. The Board may delegate authority to one or more subcommittees as it deems appropriate. To the extent that a committee or subcommittee administers the Plan, references in the Plan to the
“Board” shall be deemed to refer to the committee or subcommittee. 
 The Board shall from time to time at its discretion grant
Options, Stock Appreciation Rights and Stock Awards pursuant to the terms of the Plan. The Board shall have plenary authority to determine the Recipients to whom and the times at which Options, Stock Appreciation Rights and Stock Awards shall be
granted, the number of Option Shares to be covered by Options, whether cash or SAR Shares shall be paid in connection with the exercise of Stock Appreciation Rights, and the number of Stock Award Shares covered by Stock Awards and the price and
other terms and conditions (which need not be identical for all Recipients) thereof, including a specification with respect to whether an Option is intended to be an ISO, subject, however, to the express provisions of the Plan. In making such
determinations the Board may take into account the nature of the Recipient’s services and responsibilities, the Recipient’s present and potential contribution to the Company’s success and such other factors as it may deem relevant.
The interpretation and construction by the Board of any provision of the Plan or of any Option, Stock Appreciation Right or Stock Award granted under it shall be final, binding and conclusive. 

No member of the Board shall be personally liable for any action or determination made in good faith with respect to the Plan or any Option,
Stock Appreciation Right or Stock Award granted under it. No member of the Board shall be liable for any act or omission of any other member of the Board or for any act or omission on his own part, including but not limited to the exercise of any
power and discretion given to him under the Plan, except those resulting from (i) any breach of such member’s duty of loyalty to the Company or its stockholders, (ii) acts or omissions not in good faith or involving intentional
misconduct or a knowing violation of law, and (iii) any transaction from which the member derived an improper personal benefit. 

  
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 In addition to such other rights of indemnification as he may have as a member of the Board, and
with respect to the administration of the Plan and the granting of Options, Stock Appreciation Rights and Stock Awards under it, each member of the Board shall be entitled without further action on his part to indemnification from the Company for
all expenses (including the amount of any judgment and the amount of any approved settlement made with a view to the curtailment of costs of litigation, other than amounts paid to the Company itself) reasonably incurred by him in connection with or
arising out of any action, suit or proceeding with respect to the administration of the Plan or the granting of Options, Stock Appreciation Rights or Stock Awards under it in which he may be involved by reason of his being or having been a member of
the Board, whether or not he continues to be such member of the Board at the time of the incurring of such expenses; provided, however, that such indemnification shall not include any expenses incurred by such member of the Board: (i) in
respect of matters as to which he shall be finally adjudged in such action, suit or proceeding to have been guilty of gross negligence or willful misconduct in the performance of his duties as a member of the Board; or (ii) in respect of any
matter in which any settlement is effected in an amount in excess of the amount approved by the Company on the advice of its legal counsel; and provided further that no right of indemnification under the provisions set forth herein shall be
available to or accessible by any such member of the Board unless within five days after institution of any such action, suit or proceeding he shall have offered the Company in writing the opportunity to handle and defend such action, suit or
proceeding at its own expense. The foregoing right of indemnification shall inure to the benefit of the heirs, executors or administrators of each such member of the Board and shall be in addition to all other rights to which such member of the
Board would be entitled to as a matter of law, contract or otherwise. 
 4. Eligibility. All employees of the Company or its
Affiliates (who may also be officers or directors of the Company or its Affiliates) shall be eligible to receive Stock Awards, Stock Appreciation Rights and Options hereunder, and such Options may be either ISOs or Nonqualified Options. All
non-employee directors of the Company and all consultants or advisory board members providing services to the Company shall be eligible to receive Nonqualified Options, Stock Appreciation Rights and Stock Awards hereunder. The Board, in its sole
discretion, shall determine whether an individual qualifies as an employee, consultant or Recipient. A Recipient may receive more than one Option, Stock Appreciation Right or Stock of any Option, Stock Appreciation Right or Stock Award to himself or
herself, except in the case when grants are being made to all similarly situated Board members on the same terms and conditions. In cases in which abstention is required by the foregoing sentence, the affirmative vote of a majority of the remaining
members of the Board (or of the sole remaining member of the Board) shall constitute the action of the Board. 
 5. Option Shares, SAR
Shares and Stock Award Shares. The aggregate maximum number of Option Shares for which Options may be granted under the Plan, Stock Award Shares subject to Stock Awards granted under the Plan and SAR Shares subject to Stock Appreciation
Rights granted under the Plan is five hundred thousand (500,000) shares, which number is subject to adjustment as provided in Section 12. Option Shares, SAR Shares and Stock Award Shares shall be issued from authorized and unissued Common
Stock or Common Stock held in or hereafter acquired for the treasury of the Company. If any outstanding Option granted under the Plan expires, lapses or is terminated for any reason, the Option Shares or SAR Shares, if applicable, allocable to the
unexercised portion of such Option may again be the subject of an 

  
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Option, Stock Appreciation Right or Stock Award granted pursuant to the Plan. Stock Award Shares issued pursuant to a Stock Award that are subsequently reacquired by the Company pursuant to
rights reserved upon the grant of such Stock Award may again be subject to new Options, SAR Shares or Stock Awards. 
 6. Term of
Plan. The Plan was adopted by the Board of Directors on December 8, 2008; provided, however, the provisions of the Plan related to ISOs shall terminate and shall not be effective unless, within twelve months of such date, the Plan is
approved by the stockholders of the Company as set forth in section 422(b)(1) of the Code. In the event the Plan is not adopted by the stockholders of the Company within such twelve-month period, all ISOs granted by the Company pursuant to the Plan
shall be converted into Nonqualified Options. No Option may be granted under the Plan after December 8, 2018. 
 7. Terms and
Conditions of Options. Options granted pursuant to the Plan shall be evidenced by Option Documents in such form as the Board shall from time to time approve, which Option Documents shall specify whether the Option is intended to be an ISO or
a Nonqualified Option for federal income tax purposes. An Option shall only be an ISO to the extent it does not exceed the limitation set forth in subsection 7(a) below, is described as an ISO in the Option Document, and is granted to a person who
is an employee of the Company or an Affiliate on the Grant Date. All Option Documents shall comply with and be subject to the following terms and conditions and with any other terms and conditions (including vesting schedules for the exercisability
of Options) the Board shall from time to time provide that are not inconsistent with the terms of the Plan. 
 (a) Number of Option
Shares. Each Option Document shall state the number of Option Shares to which it pertains. In no event shall the aggregate Fair Market Value of the Option Shares (determined on the Grant Date) with respect to which an ISO is exercisable for
the first time by the Optionee during any calendar year (under all incentive stock option plans of the Company or its Affiliates) exceed $100,000. 

(b) Option Price. Each Option Document shall state the Option Price at which Option Shares may be purchased, which in no event
shall be less than the Fair Market Value of the Common Stock on the Grant Date, as determined by the Board; provided, however, that if an ISO is granted to an Optionee who then owns, directly or by attribution under section 424(b) of the Code,
shares possessing more than ten percent of the total combined voting power of all classes of stock of the Company or an Affiliate, then the Option Price shall be at least 110% of the Fair Market Value of the Option Shares on the Grant Date. For
Nonqualified Options, the Option Price shall be such price as the Board may determine in its discretion. 
 (c) Medium of
Payment. An Option shall be exercised by written notice to the Company upon such terms and conditions as the Option Document may provide and in accordance with such other procedures for the exercise of Options as the Board may establish from
time to time. The method or methods of payment of the Option Price to be paid upon exercise of an Option shall be determined by the Board and set forth in the Option Document, and may consist of (i) cash, (ii) certified check payable to
the order of the Company, (iii) a recourse promissory note in a form acceptable to the Board, (iv) payment through a broker in accordance with procedures permitted by Regulation T of the Federal Reserve Board, (v) shares of Common
Stock 

  
 5 

 
previously acquired by the Optionee, as permitted in the discretion of the Board, or (vi) such other mode of payment as permitted for the issuance of shares under the Pennsylvania Business
Corporation Law, as amended, and approved by the Board, or any combination of the foregoing methods of payment. Payment of the Option Price by a method other than cash shall be subject to such restrictions and limitations as set forth in the Option
Document. 
 If payment is made in whole or in part in shares of Common Stock already owned by the Optionee, then the Optionee shall deliver
to the Company certificates registered in the name of such Optionee representing shares of Common Stock legally and beneficially owned by such Optionee, free of all liens, claims and encumbrances of every kind and having a Fair Market Value on the
date of delivery of such notice that is not less than the Option Price of the Option Shares with respect to which such Option is to be exercised, accompanied by stock powers duly endorsed in blank by the record holder of the shares represented by
such certificates. In the event that certificates for shares of the Company’s Common Stock delivered to the Company represent a number of shares in excess of the number of shares required to make payment for the Option Price of the Option
Shares (or the relevant portion thereof) with respect to which such Option is to be exercised by payment in shares of Common Stock, the stock certificate issued to the Optionee shall represent the Option Shares in respect of which payment is made,
and such excess number of shares. Notwithstanding the foregoing, the Board, in its sole discretion, may refuse to accept shares of Common Stock in payment of the Option Price. In that event, any certificates representing shares of Common Stock which
were delivered to the Company shall be returned to the Optionee with notice of the refusal of the Board to accept such shares in payment of the Option Price. The Board may impose such limitations or prohibitions on the use of shares of the Common
Stock to exercise an Option as it deems appropriate, subject to the provisions of the Plan. 
 (d) Termination of Options. No
Option shall be exercisable after the first to occur of the following: 
 (i) Expiration of the Option term specified in the Option
Document, which shall not exceed ten years from the date of grant (or, in the case of an ISO, five years from the date of grant if, on such date the Optionee owns, directly or by attribution under section 424(b) of the Code, shares possessing more
than ten percent (10%) of the total combined voting power of all classes of stock of the Company or an Affiliate). 
 (ii) In the case
of ISOs, expiration of one year from the date the Optionee’s employment with the Company or its Affiliates terminates by reason of the Optionee’s Disability or death. 

(iii) In the case of ISOs, expiration of three months (or such shorter period as the Board may select) from the date the Optionee’s
employment with the Company or its Affiliates terminates, unless such termination was due to Disability, death or termination for Cause as described by subsection (d)(iv), below. 

(iv) Immediately upon the date the Optionee’s employment or service with the Company or its Affiliates terminates, if the Board finds,
after full consideration of the facts presented on behalf of both the Company and the Optionee, that the Optionee has been discharged from employment or service with the Company or an Affiliate for Cause. In the event

  
 6 

 
of a finding that the Optionee has been discharged for Cause, in addition to immediate termination of the Option, the Optionee shall automatically forfeit all Option Shares for which the Company
has not yet delivered the share certificates upon refund of the Option Price. 
 (v) The date, if any, set by the Board under terms
specified in an Option Document to be an accelerated expiration date in the event of a “Change in Control” (as defined in subsection 7(f) below), provided an Optionee who holds an Option is given written notice at least 30 days before the
date so fixed. 
 (e) Extension of Time to Exercise. The Board may, if it determines that to do so would be in the
Company’s best interests, provide in a specific case or cases to extend the period of time that an Option may be exercised by Optionee whose employment with the Company and its Affiliates has terminated, provided that the time to exercise an
Option shall in no event be extended beyond the original term of the Option as set forth in subsection 7(d)(i). 
 (f) Change of
Control. In the event of a Change in Control (as defined below), the Board may take whatever action with respect to the Options outstanding it deems necessary or desirable, including, without limitation, accelerating the expiration or
termination date in the respective Option Documents to a date no earlier than 30 days after notice of such acceleration is given to the Optionees. If Options granted pursuant to the Plan are accelerated as provided in this subsection 7(f), such
Options shall become immediately exercisable in full. A “Change of Control” shall be deemed to have occurred upon the earliest to occur of the following events: 

(i) The consummation of a plan of dissolution or liquidation of the Company; 

(ii) the consummation of the sale or disposition of all or substantially all of the assets of the Company; 

(iii) the consummation of a merger or consolidation of the Company with another corporation where the stockholders of the Company,
immediately prior to the merger or consolidation, will not beneficially own, immediately after the merger or consolidation, shares entitling such stockholders to more than 50% of all votes to which all stockholders of the surviving corporation would
be entitled in the election of directors; or 
 (iv) the date any entity, person or group, (within the meaning of Section 13(d)(3) or
Section 14(d)(2) of the Securities Exchange Act of 1934, as amended), (other than (A) the Company or any of its subsidiaries or any employee benefit plan (or related trust) sponsored or maintained by the Company or any of its subsidiaries
or (B) any person who, on the date the Plan is effective, is the beneficial owner of outstanding securities of the Company), shall have become the beneficial owner of, or shall have obtained voting control over, more than fifty percent
(50%) of the outstanding shares of the Common Stock; 
 (g) Sale or Reorganization. If the Company is merged or
consolidated with another corporation, or if the property or stock of the Company is acquired by another corporation, and if the Options are not accelerated as provided in subsection 7(f) above, the Board shall be authorized to substitute the
Options issued under the Plan with options to acquire stock of the merged, consolidated or acquiring corporation, which substitution of options shall comply with the requirements of section 424(a) of the Code. 

  
 7 

 (h) Transfers. No ISO granted under the Plan may be transferred, except by will or
by the laws of descent and distribution. During the lifetime of the Optionee, such ISO may be exercised only by him. 
 (i) Other
Provisions. The Option Documents shall contain such other provisions including, without limitation, additional restrictions upon the exercise of the Option or additional limitations upon the term of the Option, as the Board shall deem
advisable. 
 (j) Amendment. Subject to the provisions of the Plan, the Board shall have the right to amend Option Documents
issued to Optionee, subject to the Optionee’s consent if such amendment is not favorable to the Optionee, except that the consent of the Optionee shall not be required for any amendment made under subsections 7(e) or 7(f) above. 

8. Exercise. No Option shall be deemed to have been exercised prior to the receipt by the Company of written notice of such
exercise and of payment in full of the Option Price for the Option Shares to be purchased. Each such notice shall specify the number of Option Shares to be purchased and shall satisfy the securities law requirements set forth in this Section 8. 

Each exercise notice shall (unless the Option Shares are covered by a then current registration statement or a Notification under Regulation A
under the Securities Act of 1933 (the “Act”)), contain the Optionee’s acknowledgment in form and substance satisfactory to the Company that (i) such Option Shares are being purchased for investment and not for distribution or
resale (other than a distribution or resale which, in the opinion of counsel satisfactory to the Company, may be made without violating the registration provisions of the Act), (ii) the Optionee has been advised and understands that
(A) the Option Shares have not been registered under the Act and are “restricted securities” within the meaning of Rule 144 under the Act and are subject to restrictions on transfer and (B) the Company is under no obligation to
register the Option Shares under the Act or to take any action which would make available to the Optionee any exemption from such registration, (iii) such Option Shares may not be transferred without compliance with all applicable federal and
state securities laws, and (iv) an appropriate legend referring to the foregoing restrictions on transfer and the Stockholders Agreement and any other restrictions imposed under the Option Documents may be endorsed on the certificates.
Notwithstanding the above, should the Company be advised by counsel that the issuance of Option Shares upon the exercise of an Option should be delayed pending (A) registration under federal or state securities laws or (B) the receipt of
an opinion that an appropriate exemption therefrom is available, (C) the listing or inclusion of the shares on any securities exchange or in an automated quotation system or (D) the consent or approval of any governmental regulatory body
whose consent or approval is necessary in connection with the issuance of such Option Shares, the Company may defer the exercise of any Option granted hereunder until such event in A, B, C or D has occurred. 

9. Grant of Stock Appreciation Rights. 

(a) General. The Board shall have authority to grant Stock Appreciation Rights under the Plan. Subject to the satisfaction in
full of any conditions, restrictions or 

  
 8 

 
limitations imposed in accordance with the Plan or any Stock Appreciation Right Agreement, a Stock Appreciation Right shall entitle the Recipient to surrender to the Company the Stock
Appreciation Right in exchange for SAR Shares, cash or a combination thereof as herein provided, in the amount described in Section 9(c)(ii) hereof. 

(b) Grant. Stock Appreciation Rights may be granted in conjunction with all or part of any Option granted under the Plan
(“Tandem SARs”), in which case the exercise of the Stock Appreciation Right shall require the cancellation of a corresponding portion of the Option, and the exercise of an Option shall result in the cancellation of a corresponding portion
of the Stock Appreciation Right. In the case of an Nonqualified Stock Option, Tandem SARs may be granted either at or after the time of grant of such Option. In the case of an ISO, Tandem SARs may be granted only at the time of grant of such Option.
A Stock Appreciation Right may also be granted on a stand-alone basis. The grant of a Stock Appreciation Right shall occur as of the date the Board determines. Each Stock Appreciation Right granted under this Plan shall be evidenced by a Stock
Appreciation Right Agreement, which shall embody the terms and conditions of such Stock Appreciation Right and which shall be subject to the terms and conditions set forth in this Plan. 

(c) Terms and Conditions. Stock Appreciation Rights shall be subject to such terms and conditions as shall be determined by the
Board, including the following: 
 (i) Period and Exercise. The term of a Stock Appreciation Right shall be established by
the Board. If granted in conjunction with an Option, such Tandem SAR shall have a term which is the same as the term for the Option and shall be exercisable only at such time or times and to the extent the related Options would be exercisable in
accordance with the provisions of Section 7 of the Plan. A Stock Appreciation Right which is granted on a stand- alone basis shall be for such period and shall be exercisable at such times and to the extent provided in the Stock Appreciation
Right Agreement. Stock Appreciation Rights shall be exercised by the Recipient’s giving written notice of exercise in form satisfactory to the Company specifying the portion of the Stock Appreciation Right to be exercised. 

(ii) Amount. Upon the exercise of a Tandem SAR, a Recipient shall be entitled to receive an amount in cash, SAR Shares
or both as determined by the Board or as otherwise permitted in the Stock Appreciation Right Agreement, equal in value to the excess of the Fair Market Value per share of all applicable Option Shares over the Option Price of such Option Shares
multiplied by the number of Option Shares in respect of which the Stock Appreciation Right is exercised. In the case of a Stock Appreciation Right granted on a stand-alone basis, the Recipient shall be entitled to receive an amount in cash, SAR
Shares or both as determined by the Board or as otherwise permitted in the Stock Appreciation Right Agreement, equal to the value in excess of the Fair Market Value of the Common Stock on the date of exercise of the Stock Appreciation Right over the
initial basis of the Stock Appreciation Right as set forth in the Stock Appreciation Agreement. The aggregate Fair Market Value per share of the Common Stock or the applicable Option Shares shall be determined as of the date of exercise of such
Stock Appreciation Right. 
 (iii) Non-transferability of Stock Appreciation Rights. Tandem SARs shall be transferable only
when and to the extent that the related Option would be 

  
 9 

 
transferable under the Plan unless otherwise provided in an Agreement. No other Stock Appreciation Rights granted hereunder may be other than by will, the laws of descent and distribution, or
pursuant to a qualified domestic relations order. 
 (iv) Termination. Tandem SARs shall terminate at such time as the
related Option would terminate under the Plan, unless otherwise provided in an Agreement. All other Stock Appreciation Rights shall terminate as provided in the Stock Appreciation Right Agreement. No Stock Appreciation Right shall terminate more
than ten years from the Grant Date. 
 (v) Incentive Stock Option. A Stock Appreciation Right granted in tandem with an ISO
shall not be exercisable unless the Fair Market Value of the Common Stock on the date of exercise exceeds the Option Price. In no event shall any amount paid pursuant to the Stock Appreciation Right exceed the difference between the Fair Market
Value on the date of exercise and the Option Price. 
 10. Lock-Up. If so requested by the Company or any representative of
the underwriters in connection with any underwritten offering of securities of the Company under the Act, an Optionee 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 Act for such underwriting or such shorter period as may be requested by the underwriters 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. 

11. Grant of Stock Awards. Stock Awards will consist of shares of Common Stock transferred to Recipients, without payment or
other consideration therefor. Stock Awards shall be subject to such terms and conditions as the Board determines appropriate, including without limitation, restrictions on sale or other disposition of such Stock Award Shares, and the rights of the
Company to reacquire such Stock Award Shares upon termination of Recipients employment with the Company within specified periods, whether for Cause or otherwise. 

12. Adjustments on Changes in Common Stock. The aggregate number of shares of Common Stock as to which Options may be granted
hereunder, the number of Option Shares covered by each outstanding Option, the Option Price per Option Share specified in each outstanding Option, the number of SAR Shares subject to Stock Appreciation Rights and the number of Stock Award Shares
subject to Stock Awards granted hereunder shall be appropriately adjusted in the event of a stock dividend, stock split or other increase or decrease in the number of issued and outstanding shares of Common Stock resulting from a subdivision or
consolidation of the Common Stock or other capital adjustment (not including the issuance of Common Stock on the conversion of other securities of the Company which are convertible into Common Stock) effected without receipt of consideration by the
Company. The Board shall have the authority to determine the adjustments to be made under this Section and any such determination by the Board shall be final, binding and conclusive, provided that no adjustment shall be made which will cause an ISO
to lose its status as such. 

  
 10 

 13. Amendment of the Plan. The Board may amend the Plan from time to time in such
manner as it may deem advisable. Notwithstanding the foregoing, in the event the Plan is adopted by the Company’s stockholders pursuant to Section 6, any amendment which would change the class of individuals eligible to receive an Option,
extend the expiration date of the Plan, decrease the Option Price of an ISO granted under the Plan or increase the maximum aggregate number of shares of Common Stock available for issuance under the Plan will only be effective if such action is
approved by a majority of the outstanding voting stock of the Company within twelve months before or after such action. 
 14.
Continued Employment. The grant of an Option, Stock Appreciation Right or a Stock Award pursuant to the Plan shall not be construed to imply or to constitute evidence of any agreement, express or implied, on the part of the Company or
any Affiliate to retain the Recipient in the employ of the Company or an Affiliate, as a member of the Board, as an independent contractor or in any other capacity, whichever the case may be. 

15. Withholding of Taxes. Whenever the Company proposes or is required to issue or transfer Option Shares, SAR Shares or Stock
Award Shares, the Company shall have the right to (a) require the recipient or transferee to remit to the Company an amount sufficient to satisfy any federal, state and/or local withholding tax requirements prior to the delivery or transfer of
any certificate or certificates for such Option Shares, SAR Shares or Stock Award Shares or (b) take whatever action it deems necessary to protect its interests, including the right to deduct the amount required to be withheld from any payment
of any kind otherwise due to the Recipient. If and to the extent permitted by the Board, a Recipient may satisfy applicable withholding requirements by the delivery to the Company of previously held shares of Common Stock or the withholding of
Option Shares, SAR Shares or Stock Award Shares otherwise issuable to the Recipient. 
 16. General. 

(a) Effective Date. This Stock Option Plan shall be effective as of the date specified in Section 6. 

(b) Issuance of Option Shares. Subject to the provisions of Section 8, the Company shall effect the issuance of Option
Shares purchased under an Option as soon as practicable after the exercise thereof, payment of the Option Price thereof and compliance with any requirements for the withholding of income taxes. No Optionee or other person exercising an Option shall
have any of the rights of a stockholder of the Company with respect to Option Shares purchased as a result of such exercise until due exercise and full payment has been made and the requirements of Section 8 have been satisfied. No adjustment
shall be made for cash dividends or other rights for which the record date is prior to the date of such due exercise and full payment. 

(c) Other Plans. The adoption of the Plan shall not be construed as creating any limitations on the power of the Board to adopt
such other incentive arrangements as it may deem desirable, including without limitation the awarding of stock options otherwise than under the Plan. Unless otherwise provided by the Board in an Option Document or in a written agreement between the
Recipient and the Company or an Affiliate, the amounts deemed paid to a Recipient under the Plan shall not be taken into account, in any manner, as salary, compensation or bonus in determining the amount of any payment under any pension, retirement,
or other employee benefit plan, program or policy of the Company or any Affiliate. 

  
 11 

 (d) Governing Law. The validity, construction, interpretation and effect of the
Plan and Option Documents, Stock Appreciation Right Agreements and Stock Awards 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. 

  
 12

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