2009 Equity Incentive Plan




 Exhibit 10.24 
 KRATON PERFORMANCE POLYMERS, INC. 
 2009 EQUITY INCENTIVE PLAN

 (As Amended and Restated Effective February 16, 2012) 

1. Purpose of the Plan 
 This Kraton Performance Polymers, Inc. 2009 Equity Incentive Plan (formerly known as the Polymer Holdings LLC 2009 Equity Incentive Plan) is intended to promote the interests of the Company and its
stockholders by providing the (i) employees and independent contractors of the Company and (ii) non-employee directors of Kraton Performance, who are largely responsible for the management, growth, and protection of the business of the
Company, with incentives and rewards to encourage them to continue in the service of the Company. The Plan is designed to meet this intent by providing such employees, independent contractors, and eligible non-employee directors with a proprietary
interest in pursuing the long-term growth, profitability, and financial success of the Company. 
 2. Definitions 

As used in the Plan or in any instrument governing the terms of any Award, the following definitions apply to the terms indicated below:

 (a) “Awards” mean all equity awards granted pursuant to the terms of the Plan including, but not limited to,
Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights, restricted stock awards and restricted stock unit awards granted pursuant to the terms of the Plan. 

(b) “Award Agreement” means the written agreement between the Company and a Grantee that evidences and sets out the
terms and conditions of an Award. 
 (c) “Board of Directors” means the Board of Directors of Kraton
Performance. 
 (d) “Change in Control,” as used in any instrument governing the terms of any Award, means the
occurrence of any of the following: 
 (i) Change in the Ownership of a Corporation. Any one person, or
more than one person acting as a group (as defined in Treasury Regulation Section 1.409A-3(i)(5)(v)(B)), acquires ownership of stock of the corporation that, together with stock held by such person or group, constitutes more than 50 percent of
the total fair market value or total voting power of the stock of such corporation. 
 (ii) Change in the
Effective Control of a Corporation. The date any one person, or more than one person acting as a group (as determined under Treasury Regulation Section 1.409A-3(i)(5)(v)(B)), acquires (or has acquired during the 12-month period ending on
the date of the most recent acquisition by such person or persons) ownership of stock of the corporation possessing 30 percent or more of the total voting power of the stock of such corporation; or the date a majority of members of the board of
directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the board of directors before the date of the appointment or election. 

(iii) Change in the Ownership of a Substantial Portion of a Corporation. A change in the ownership of a substantial
portion of a corporation’s assets occurs on the date that any one person, or more than one person acting as a group (as determined in Treasury Regulation Section 1.409A-3(i)(5)(v)(B)), acquires (or has acquired during the 12-month period
ending on the date of the most recent acquisition by such person or persons) assets from the corporation that have a total gross fair market value equal to or more than 40 percent of the total gross fair market value of all of the assets of the
corporation immediately before such acquisition or acquisitions. For this purpose, gross fair market value means the value of the assets of such corporation, or the value of the assets being disposed of, determined without regard to any liabilities
associated with such assets. 








 Notwithstanding the foregoing, a Change in Control shall not be deemed to occur as a result
of any event or transaction to the extent that treating such event or transaction as a Change in Control would cause any tax to become due under Section 409A of the Code. 
 (e) “Code” means the Internal Revenue Code of 1986, as amended from time to time, and all regulations, interpretations, and administrative guidance issued thereunder. 

(f) “Committee” means the Compensation Committee of the Board of Directors or such other committee as the Board of
Directors shall appoint from time to time to administer the Plan and to otherwise exercise and perform the authority and functions assigned to the Committee under the terms of the Plan. 

(g) “Common Stock” means the common stock of Kraton Performance, $0.01 par value per share, or any other security into
which the common stock shall be changed pursuant to the adjustment provisions of Section 10 of the Plan. 
 (h)
“Company” means Kraton Performance Polymers, Inc. and all of its Subsidiaries and affiliates, collectively. 

(i) “Covered Employee” means a Participant who at the time of reference is a “covered employee” as defined in
Section 162(m) of the Code. 
 (j) “Director” means a member of the Board of Directors who is not at the
time of reference an employee of the Company. 
 (k) “Effective Date” means November 30, 2009, the date
the Plan was originally approved by the Company’s stockholders. 
 (l) “Exchange Act” means the Securities
Exchange Act of 1934, as amended. 
 (m) “Fair Market Value” means, with respect to a share of Common Stock, as
of the applicable date of determination (i) the average of the high and low sales prices on the immediately preceding business day of a share of Common Stock as reported on the principal securities exchange on which shares of Common Stock are
then listed or admitted to trading or (ii) if not so reported, the average of the closing bid and ask prices on the immediately preceding business day as reported on the National Association of Securities Dealers Automated Quotation System or
(iii) if not so reported, as furnished by any member of the National Association of Securities Dealers, Inc. selected by the Committee. In the event that the price of a share of Common Stock shall not be so reported or the Committee otherwise
determines a different valuation is appropriate, the Fair Market Value of a share of Common Stock shall be determined by the Committee in its sole discretion in any manner consistent with Section 409A of the Code. 

(n) “Incentive Stock Option” means an Option qualified under Section 422 of the Code. 

(o) “Kraton Performance” means Kraton Performance Polymers, Inc., a Delaware corporation (formerly known as Polymers
Holdings LLC), and any successor thereto. 
 (p) “Non-Qualified Stock Option” means an Option that is not an
“incentive stock option” within the meaning of Section 422 of the Code. 
 (q) “Option” means a
stock option to purchase shares of Common Stock granted to a Participant pursuant to Section 6. 
 (r) “Other
Stock-Based Award” means an award granted to a Participant pursuant to Section 7. 
 (s)
“Participant” means a Director, employee, or independent contractor of the Company who is eligible to participate in the Plan and to whom one or more Awards have been granted and, following the death of any such Person, his
successors, heirs, executors, and administrators, as the case may be. 

  
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 (t) “Performance-Based Compensation” means compensation that satisfies the
requirements of Section 162(m) of the Code for deductibility of remuneration paid to Covered Employees. 
 (u)
“Performance Measures” means such measures as are described in Section 8 on which performance goals are based in order to qualify certain awards granted hereunder as Performance-Based Compensation. 

(v) “Performance Period” means the period of time during which the performance goals must be met in order to determine
the degree of payout and/or vesting with respect to an Award, other than an Option or Stock Appreciation Right, that is intended to qualify as Performance-Based Compensation. Performance Periods may be overlapping. 

(w) “Performance Target” means performance goals and objectives with respect to a Performance Period. 

(x) “Person” means a “person” as such term is used in Sections 13(d) and 14(d) of the Exchange Act, including
any “group” within the meaning of Section 13(d)(3) of the Exchange Act. 
 (y) “Plan” means this
Kraton Performance Polymers, Inc. 2009 Equity Incentive Plan, as it may be amended from time to time. 
 (z) “Securities
Act” means the Securities Act of 1933, as amended. 
 (aa) “Stock Appreciation Rights” means a right
to receive, upon exercise thereof, the excess of (i) the Fair Market Value of one share of Common Stock on the date of exercise over (ii) the exercise price of the Stock Appreciation Right. 

(bb) “Subsidiary” means any “subsidiary” within the meaning of Rule 405 under the Securities Act. 

3. Stock Subject to the Plan, Share Counting Rules, and Individual Award Limits 

(a) Stock Subject to the Plan. The maximum number of shares of Common Stock that may be delivered pursuant to Awards granted under
the Plan shall be 4,350,000. Furthermore, the maximum number of shares of Common Stock that may be covered by Awards granted under the Plan in any calendar year shall not exceed (i) 750,000 shares of Common Stock, plus (ii) any
shares of Common Stock subject to Awards that expire, are forfeited, or are cancelled during the immediately preceding calendar year, plus (iii) any shares of Common Stock tendered by a Participant or withheld by the Company or one of
its Subsidiaries to satisfy the tax withholding obligations related to any Award during the immediately preceding calendar year, plus (iv) any shares of Common Stock tendered by a Participant or withheld by the Company to satisfy all or
any portion of the exercise price related to an Award during the immediately preceding calendar year. The maximum number of shares of Common Stock that may be covered by Incentive Stock Options in all calendar years shall not exceed 1,000,000 shares
of Common Stock. The shares referred to in the preceding sentences of this paragraph shall in each case be subject to adjustment as provided in Section 10 and the following provisions of this Section 3. Shares of Common Stock issued under
the Plan may be either authorized and unissued shares or treasury shares, or both, in the sole discretion of the Committee. For Performance-Based Compensation, Shares payable upon achievement of target payouts shall be the number used for purposes
of determining what portion of Performance-Based Compensation is counted against the total shares available for grant under the Plan. 
 (b) Share Counting Rules. Shares of Common Stock covered by Awards granted pursuant to the Plan in connection with the assumption, replacement, conversion, or adjustment of outstanding equity-based
awards in the context of a corporate acquisition or merger (within the meaning of Section 303A.08 of the New York Stock Exchange Listed Company Manual) as provided in Section 10 of the Plan shall not count as used under the Plan for
purposes of Section 3. 
 (c) Individual Award Limits. Subject to adjustment as provided in Section 10, no
Participant may receive Awards under this Plan in any calendar year that relate to more than 300,000 shares of Common Stock. 

  
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 4. Administration of the Plan 

(a) The Committee 
 The Plan shall be administered by the Committee, which shall consist solely of two or more persons, each of whom qualifies as a “non-employee director” (within the meaning of Rule 16b-3
promulgated under Section 16 of the Exchange Act), as an “outside director” within the meaning of Treasury Regulation Section 1.162-27(e)(3), and as “independent” within the meaning of any applicable stock exchange or
similar regulatory authority; provided that, with respect to any “independent” composition requirement under any rule of any applicable stock exchange or similar regulatory authority, the “independent” composition
requirement shall be phased in pursuant to any applicable transition period; provided further that, with respect to any Award granted to, or any determination made with respect to, any Person subject to Section 16 of the Exchange Act
prior to the date the “independent” composition requirement has been satisfied, such grant shall be approved by the full Board of Directors, and with respect to any Award granted to, or any determination made with respect to, any Covered
Employee, prior to the date the “independent” composition requirement has been satisfied, such grant shall be approved by a subcommittee of the Committee that is composed solely of two or more “outside directors” within the
meaning of Treasury Regulation Section 1.162-27(e)(3). 
 (b) Grant of Awards 

The Committee shall, consistent with the terms of the Plan, from time to time designate those employees and independent contractors of
the Company who shall be granted Awards under the Plan and the amount, type, and other terms and conditions of such Awards. The Board of Directors may, consistent with the terms of the Plan, from time to time grant Awards to Directors. The Committee
may prescribe agreements evidencing or setting the terms of any Awards, and amendments thereto, which documents and amendments need not be identical for each Participant. 
 The Committee may also enter into agreements with third parties pursuant to which such third parties may issue Awards to the Participants in lieu of the Company’s issuance thereof or assume the
obligations of the Company under any Awards previously issued by the Company, in any case on such terms and conditions as may be determined by the Committee in its sole discretion. 

Awards granted under the Plan may, in the Committee’s discretion, be granted either alone or in addition to, in tandem with, or in
substitution or exchange for, any other Award, any award granted under another plan of the Company or any business entity to be acquired by the Company, or any other right of a Participant to receive payment from the Company. Awards granted in
addition to or in tandem with other Awards or awards may be granted either as of the same time as, or a different time from, the grant of such other Awards or awards. 
 (c) Delegation of Authority 
 All of the powers and responsibilities of the
Committee under the Plan may be delegated by the Committee, in writing, to any subcommittee thereof, in which case the acts of such subcommittee shall be deemed to be acts of the Committee hereunder. The Committee may also from time to time
authorize a subcommittee consisting of one or more members of the Board of Directors (including members who are employees of the Company) to grant Awards under the Plan to persons who are not Directors or “executive officers” of the
Company (within the meaning of Rule 16a-1 under the Exchange Act), subject to such restrictions and limitations as the Committee may specify. 
 In addition, the Committee may delegate the administration of the Plan to one or more officers or employees of the Company, and such administrator(s) may have the authority to execute and distribute Award
Agreements or other documents evidencing or relating to Awards granted by the Committee under this Plan, to maintain records relating to Awards, to process or oversee the issuance of Common Stock under Awards, to interpret and administer the terms
of Awards, and to take such other actions as may be necessary or appropriate for the administration of the Plan and of Awards under the Plan; provided that in no case shall any such administrator be authorized (i) to grant Awards under
the Plan, (ii) to take any action that would cause Awards intended to qualify as Performance-Based Compensation to fail to so qualify, (iii) to take any action inconsistent with Section 409A of the Code or (iv) to take any action
inconsistent with Section 157 and other applicable provisions of the Delaware General Corporation Law. Any action by any such administrator within the scope of its delegation shall be deemed for all purposes to have been taken by the Committee
and, except as otherwise specifically provided, references in this Plan to the 

  
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Committee shall include any such administrator. The Committee and, to the extent it so provides, any subcommittee, shall have sole authority to determine whether to review any actions and/or
interpretations of any such administrator, and if the Committee shall decide to conduct such a review, any such actions and/or interpretations of any such administrator shall be subject to approval, disapproval, or modification by the Committee.

 (d) Committee Discretion 
 The Committee shall have full discretionary authority to administer the Plan, including discretionary authority to interpret and construe any and all provisions of the Plan and the terms of any Award (and
any Award Agreement) granted thereunder and to adopt and amend from time to time such rules and regulations for the administration of the Plan as the Committee may deem necessary or appropriate. Without limiting the generality of the foregoing, the
Committee shall determine whether an authorized leave of absence, or absence in military or government service, shall constitute termination of employment; provided that, no payment shall be made with respect to any Award that is subject to
Section 409A of the Code as a result of any such authorized leave of absence or absence in military or government service unless such authorized leave or absence constitutes a separation from service for purposes of Section 409A of the
Code. The employment of a Participant with the Company shall be deemed to have terminated for all purposes of the Plan if such person is employed by or provides services to a Person that is a Subsidiary of the Company and such Person ceases to be a
Subsidiary of the Company, unless the Committee determines otherwise. Decisions of the Committee shall be final, binding, and conclusive on all parties. 
 On or after the date of grant of an Award under the Plan, the Committee may (i) in the event of a Participant’s death, disability or retirement (in the case of disability and retirement, unless
otherwise specified in the relevant grant agreement, as determined in accordance with the applicable policies and procedures of the Company as in effect from time to time) or in the event of a Change in Control, accelerate the date on which any such
Award becomes vested or exercisable, as the case may be, (ii) accelerate the date on which any such Award becomes transferable, (iii) extend the term of any such Award, including, without limitation, extending the period following a
termination of a Participant’s employment during which any such Award may remain outstanding, (iv) waive any conditions to the vesting, exercisability, or transferability, as the case may be, of any such Award or (v) provide for the
payment of dividends or dividend equivalents with respect to any such Award; provided that the Committee shall not have any such authority and shall not take any such action to the extent that the grant of such authority or the taking of such
action would cause any tax to become due under Section 409A of the Code. 
 The Committee may grant dividend equivalents to
any Participant based on the dividends declared on shares of Common Stock that are subject to any Award during the period between the date the Award is granted and the date the Award is exercised, vests, pays out, or expires. Such dividend
equivalents may be awarded or paid in the form of cash, shares of Common Stock, restricted stock, or restricted stock units, or a combination, and shall be determined by such formula and at such time and subject to such accrual, forfeiture, or
payout restrictions or limitations as determined by the Committee in its sole discretion. Dividend equivalents granted with respect to Options or Stock Appreciation Rights that are intended to be Performance-Based Compensation shall be payable, with
respect to pre-exercise periods, regardless of whether such Option or Stock Appreciation Right is subsequently exercised. 
 (e)
Payments by the Company 
 The Company shall pay any amount payable with respect to an Award in accordance with the terms
of such Award; provided that the Committee may, in its discretion, defer the payment of amounts payable with respect to an Award subject to and in accordance with the terms of a deferred compensation plan established and maintained by the
Company, to the extent such deferred compensation plan permits deferral of Awards granted hereunder. Payments to be made by the Company upon the exercise of an Option or other Award or settlement of an Award may be made in such forms as the
Committee shall determine, including, without limitation, cash, Common Stock, other Awards or other property, and may be made in a single payment or transfer, in installments, or on a deferred basis. The settlement of any Award may be accelerated,
and cash paid in lieu of Common Stock in connection with such settlement, in the Committee’s discretion or upon occurrence of one or more specified events; provided that, with respect to any Award subject to Section 409A of the
Code, such acceleration or payment shall comply with Section 409A of the Code. 

  
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 The Company may, to the extent permitted by applicable law and permissible under
Section 409A of the Code, deduct from and set off against any amounts the Company may owe to the Participant from time to time (including amounts payable in connection with any Award, owed as wages, fringe benefits, or other compensation owed
to the Participant), such amounts as may be owed by the Participant to the Company, although the Participant shall remain liable for any part of the Participant’s payment obligation not satisfied through such deduction and setoff. By accepting
any Award granted hereunder, the Participant agrees to any deduction or setoff under this Section 4. 
 The Company may, to
the extent deemed necessary or advisable by the Committee, postpone the issuance or delivery of Common Stock or payment of other benefits under any Award until completion of such registration or qualification of such Common Stock or other required
action under any federal or state law, rule or regulation, listing or other required action with respect to any stock exchange or automated quotation system upon which the Common Stock or other securities of the Company are listed or quoted, or
compliance with any other obligation of the Company, as the Committee may consider appropriate, and may require any Participant to make such representations, furnish such information and comply with or be subject to such other conditions as it may
consider appropriate in connection with the issuance or delivery of Common Stock or payment of other benefits in compliance with applicable laws, rules, and regulations, listing requirements, or other obligations; provided that the Committee
shall take no action to the extent that the taking of such action would cause any tax to become due under Section 409A of the Code. The foregoing notwithstanding, in connection with a Change of Control, the Company shall take or cause to be
taken no action, and shall undertake or permit to arise no legal or contractual obligation, that results or would result in any postponement of the issuance or delivery of Common Stock or payment of benefits under any Award or the imposition of any
other conditions on such issuance, delivery, or payment, to the extent that such postponement or other condition would represent a greater burden on a Participant than existed on the 90th day preceding the Change of Control. 

The inability of the Company (after reasonable efforts) to obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company’s counsel to be necessary to the lawful issuance and/or sale of any Awards or shares of Common Stock hereunder, shall relieve the Company of any liability in respect of the failure to issue and/or sell such Awards or
shares of Common Stock as to which such requisite authority shall not have been obtained. 
 In addition, the Committee may
permit (including, without limitation, for purposes of deductibility under Section 162(m) of the Code) a Participant to defer such Participant’s receipt of the payment of cash or the delivery of shares of Common Stock that would otherwise
be due to such Participant in connection with any Award. 
 If any such deferral is required or permitted, the Committee shall,
in its sole discretion, establish rules and procedures, in accordance with Section 409A of the Code (to the extent applicable), for such payment or Common Stock delivery deferrals and any notional earnings to be credited on such deferred
amounts; provided that in the case of any Award intended to qualify as Performance-Based Compensation, such earnings shall be in compliance with Code Section 162(m) of the Code. 

(f) Limitation on Liability 
 The Committee may employ attorneys, consultants, accountants, agents, and other persons, and the Committee, the Company, and its officers, directors, and employees shall be entitled, in good faith, to
rely or act upon any advice, opinions, or valuations of any such persons. In addition, the Committee and each member thereof, and any person acting pursuant to authority delegated by the Committee, shall be entitled, in good faith, to rely or act
upon any report or other information furnished by any officer, director, or employee of the Company, the Company’s independent auditors, consultants, or any other agents assisting in the administration of the Plan. 

No member of the Committee, nor any person acting pursuant to authority delegated by the Committee, nor any officer, director, or
employee of the Company acting at the direction or on behalf of the Committee, shall be liable for any action, omission, or determination relating to the Plan, and Kraton Performance shall, to the fullest extent permitted by law, indemnify and hold
harmless each member of the Committee, each person acting pursuant to authority delegated by the Committee, and each other officer, director, or employee of the Company to whom any duty or power relating to the administration or interpretation of
the Plan has been delegated, against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the Committee) arising out of any action, omission or determination relating to the
Plan, unless, in either case, such action, omission, or determination was taken or made by such member, director, employee, or other person acting pursuant to authority delegated by the Committee in bad faith and without reasonable belief that it
was in the best interests of the Company. 

  
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 5. Eligibility 
 The persons who shall be eligible to receive Awards pursuant to the Plan shall be (a) those employees and independent contractors of the Company whom the Committee shall select from time to time and
(b) Directors whom the Board of Directors shall select from time to time. Eligible persons shall include any person who has been offered employment by the Company; provided that such prospective employee may not receive any payment or
exercise any right relating to an Award until such person has commenced employment with the Company. An employee on leave of absence may be considered as still in the employ of the Company for purposes of eligibility for participation in the Plan,
if so determined by the Committee. In lieu of making Awards directly to Participants, the Committee may make Awards under the Plan through or to a trust or other funding vehicle which in turn makes Awards to Participants or which issues interests in
Awards held by it to Participants, in any case on such terms and conditions as may be determined by the Committee in its sole discretion. Each Award granted under the Plan shall be evidenced by an instrument in writing in form and substance approved
by the Committee. 
 6. Options 
 The Committee may from time to time grant Options, subject to the following terms and conditions: 
 (a) Exercise Price 
 The exercise price per share of Common Stock covered
by any Option shall be not less than 100% of the Fair Market Value of a share of Common Stock on the date on which such Option is granted. The Award Agreement of each Option shall fix the exercise price and shall clearly identify such Option as
either an “incentive stock option” within the meaning of Section 422 of the Code or as a Non-Qualified Stock Option. 
 (b) Term and Exercise of Options 
 (1) Each Option shall become vested and
exercisable on such date or dates, during such period, and for such number of shares of Common Stock as shall be determined by the Committee on or after the date such Option is granted; provided, however, that no Option shall be exercisable
after the expiration of ten years from the date such Option is granted; and; provided further that each Option shall be subject to earlier termination, expiration, or cancellation as provided in the Plan or in the relevant Award Agreement.

 (2) Each Option may be exercised in whole or in part. The partial exercise of an Option shall not cause the expiration,
termination, or cancellation of the remaining portion thereof. 
 (3) An Option shall be exercised by such methods and
procedures as the Committee determines from time to time; provided, however, that Participants shall have the right to exercise vested Options through net settlement in shares of Common Stock; provided, further that net cash settlement
shall not be permitted. 
 (4) Options may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any
manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of a Participant, only by the Participant; provided, however, that the Committee may permit Non-Qualified Stock Options to be sold,
pledged, assigned, hypothecated, transferred, or disposed of, on a general or specific basis, subject to such conditions and limitations as the Committee may determine. In addition, the Committee may impose such restrictions on any shares acquired
pursuant to the exercise of an Option as it may deem advisable, including, without limitation, minimum holding period requirements, restrictions under applicable federal securities laws, under the requirements of any stock exchange or market upon
which such shares are then listed and/or traded, or under any blue sky or state securities laws applicable to such shares. 

(5) The terms of outstanding awards may not be amended to reduce the exercise price of outstanding Options or Stock Appreciation Rights
nor may outstanding Options or Stock Appreciation Rights be cancelled in exchange for cash, other awards or Options or Stock Appreciation Rights with an exercise price that is less than the exercise price of the original Options or Stock
Appreciation Rights. 

  
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 (6) Regardless of the terms of any Award Agreement, the Committee shall have the right to
substitute Stock Appreciation Rights for outstanding Options granted to any Participant; provided the substituted Stock Appreciation Rights call for settlement by the issuance of shares of Common Stock, and the terms of the substituted Stock
Appreciation Rights and economic benefit of such substituted Stock Appreciation Rights are at least equivalent to the terms and economic benefit of the Options being replaced. 
 (c) Special Rules for Incentive Stock Options 
 (1) The aggregate Fair
Market Value of shares of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by a Participant during any calendar year under the Plan and any other stock option plan of Kraton Performance or any of its
“subsidiaries” (within the meaning of Section 424 of the Code) shall not exceed $100,000. Such Fair Market Value shall be determined as of the date on which each such Incentive Stock Option is granted. In the event that the aggregate
Fair Market Value of shares of Common Stock with respect to such Incentive Stock Options exceeds $100,000, then Incentive Stock Options granted hereunder to such Participant shall, to the extent and in the order required by regulations promulgated
under the Code (or any other authority having the force of regulations), automatically be deemed to be Non-Qualified Stock Options, but all other terms and provisions of such Incentive Stock Options shall remain unchanged. In the absence of such
regulations (and authority), or in the event such regulations (or authority) require or permit a designation of the Options which shall cease to constitute Incentive Stock Options, Incentive Stock Options granted hereunder shall, to the extent of
such excess and in the order in which they were granted, automatically be deemed to be Non-Qualified Stock Options, but all other terms and provisions of such Incentive Stock Options shall remain unchanged. 

(2) No Incentive Stock Option may be granted to an individual if, at the time of the proposed grant, such individual owns stock
possessing more than ten percent of the total combined voting power of all classes of stock of Kraton Performance or any of its “subsidiaries” (within the meaning of Section 424 of the Code), unless (i) the exercise price of such
Incentive Stock Option is at least one hundred and ten percent of the Fair Market Value of a share of Common Stock at the time such Incentive Stock Option is granted and (ii) such Incentive Stock Option is not exercisable after the expiration
of five years from the date such Incentive Stock Option is granted. 
 Options are not intended to provide for the deferral of
compensation under Section 409A of the Code, and thus, are intended to be exempt from Treasury Regulations issued under Section 409A of the Code. 
 7. Other Stock-Based Awards 
 The Committee may grant equity-based
or equity-related awards not otherwise described herein, including but not limited to restricted stock awards and restricted stock unit awards, in such amounts and subject to such terms and conditions as the Committee shall determine. Without
limiting the generality of the preceding sentence, each such Other Stock-Based Award may (i) involve the transfer of actual shares of Common Stock to Participants, either at the time of grant or thereafter, or payment in cash or otherwise of
amounts based on the value of shares of Common Stock, (ii) be subject to performance-based and/or service-based conditions, (iii) be in the form of Stock Appreciation Rights, phantom stock, restricted stock, restricted stock units,
performance shares, deferred share units, or share-denominated performance units, (iv) be designed to comply with applicable laws of jurisdictions other than the United States, and (v) be designed to qualify as Performance-Based
Compensation; provided, however, that each Other Stock-Based Award shall be denominated in, or shall have a value determined by reference to, a number of shares of Common Stock that is specified at the time of the grant of such award. With respect
to awards of restricted stock subject only to service-based conditions, such awards shall vest over a period of no fewer than three years. Notwithstanding the foregoing, to the extent any such Other Stock-Based Award is subject to Section 409A
of the Code, the Award Agreement of such Other Stock-Based Award shall contain terms and conditions (including, without limitation and to the extent applicable, deferral and payment provisions) that comply with Section 409A of the Code.

 Subject to accelerated vesting in the event of a Participant’s termination of employment due to death, disability or
retirement or due to the occurrence of a Change in Control as provided in Section 4(d), the vesting of an Other Stock-Based Award based on (i) continued employment with the Company shall have a minimum vesting period of three years from
the date of grant with no more than one-third of such Award vesting in any twelve month period and (ii) the attainment of one or more Performance Measures shall have a minimum vesting period of one year from the date of grant. The foregoing
notwithstanding, the Committee may, in its discretion, grant Other Stock-Based 

  
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Awards not subject to the restriction in the above clause (i) with respect to Other Stock-Based Awards, excluding restricted stock, and the above clause (ii) with respect to Other
Stock-Based Awards, including restricted stock, or waive such restrictions at any time during the vesting period; provided, however, that the number of shares of Common Stock underlying such Awards does not exceed in the aggregate 10% of the Common
Stock authorized to be issued under the Plan. 
 8. Performance-Based Compensation 

(a) Calculation, Written Determinations, and Right of Recapture 

The amount payable with respect to an Award that is intended to qualify as Performance-Based Compensation shall be determined in any
manner permitted by Section 162(m) of the Code. 
 Determinations by the Committee as to the establishment of Performance
Measures, the level of actual achievement of performance goals, and the amount payable with respect to an Award intended to qualify as Performance-Based Compensation under Section 162(m) of the Code shall be recorded in writing. Specifically,
the Committee shall certify in writing, in a manner conforming to applicable regulations under Section 162(m) of the Code, prior to settlement of each such Award granted to a Covered Employee, that the performance goals and other material terms
upon which settlement of the Award was conditioned have been satisfied. 
 If at any time after the date on which a Participant
has been granted or becomes vested in an Award pursuant to the achievement of a performance goal under Section 8, the Committee determines that the earlier determination as to the achievement of the performance goal was based on incorrect data
and that in fact the performance goal had not been achieved or had been achieved to a lesser extent than originally determined and a portion of an Award would not have been granted, vested, or paid given the correct data, then (i) such portion
of the Award that was granted shall be forfeited and any related shares of Common Stock (or, if such shares were disposed of, the cash equivalent) shall be returned to the Company as provided by the Committee, (ii) such portion of the Award
that became vested shall be deemed to be not vested and any related shares of Common Stock (or, if such shares were disposed of, the cash equivalent) shall be returned to the Company as provided by the Committee, and (iii) such portion of the
Award paid to the Participant shall be paid by the Participant to the Company upon notice from the Company as provided by the Committee. 
 (b) Discretionary Reduction 
 The Committee may, in its discretion, reduce
or eliminate the amount payable to any Participant with respect to an Award that is intended to qualify as Performance-Based Compensation, based on such factors as the Committee may deem relevant, but the Committee may not increase any such amount
above the amount established in accordance with the relevant Performance Schedule. For purposes of clarity, the Committee may exercise the discretion provided for by the foregoing sentence in a non-uniform manner among Participants. 

(c) Performance Measures 
 The performance goals upon which the payment or vesting of any Award (other than Options and Stock Appreciation Rights) to a Covered Employee that is intended to qualify as Performance-Based Compensation
depends shall (a) be objective business criteria and shall otherwise meet the requirements of Section 162(m) of the Code, including the requirement that the level or levels of performance targeted by the Committee result in the achievement
of performance goals being “substantially uncertain” at the time of establishment of such goals, and (b) relate to one or more of the following Performance Measures: EBITDA; profit; safety performance; innovation as a percent of total
revenue; cost out and pricing initiatives before or after tax net income; earnings per share; book value per share; stock price; return on stockholder’s equity; expense management; improvements in capital structure; profitability of an
identifiable business unit or product (including return on investment on new business acquisitions or growth and expansion activities for the year); business growth (percent increase in revenue from year to year); before or after tax profit margins;
budget comparisons; total return to stockholders; market share (percent shares the Company has captured in the market); increase in production volume (percent of increase from year to year); increase in productivity yield per acreage; percent of
decrease in production costs; customer satisfaction based on a third party survey; decrease costs of delivery of service (e.g. freight costs, costs of loans, reduction of inventory); decrease turnaround time for servicing requests or processing
information (e.g. number of days closing, 

  
 9 









 
numbers of days accounts payables turnaround time); identification of ways to cut down costs on a long term basis; implementation of new systems, processes, procedures to accomplish better
efficiency, reduce current costs, or provide better management information reports; implementation of improvements in area of accountability and responsibility that has great impact on the management of the business; the relative performance of the
Company against a peer group of companies on any of the measures above. Performance goals may relate to individual performance, Company performance or business unit performance. Performance goals may differ for Awards granted to any one Participant
or to different Participants. 
 The Committee shall determine the length of the Performance Period with respect to each Award
that is intended to be Performance-Based Compensation; provided that in no event shall such Performance Period be shorter than one fiscal year of the Company. Performance Periods may be overlapping. The Committee shall establish the
Performance Targets and Performance Schedules for such Performance Period prior to the earlier to occur of 90 days after the commencement of such Performance Period or the lapse of 25% of the Performance Period, and in any event while the outcome of
such performance measures is substantially uncertain. 
 The measurement of any Performance Measure(s) may include or exclude
the impact of charges for asset write-downs, any impact of using the LIFO or FIFO method of inventory accounting, litigation or claim judgments or settlements, restructurings, discontinued operations, mergers, acquisitions, divestitures, foreign
exchange gains and losses, extraordinary items, and other unusual or non-recurring items, and the cumulative effects of changes in tax laws, accounting principles or regulations, or other laws or provisions affecting reporting results, each as
defined by generally accepted accounting principles and as identified in the Company’s audited financial statements, including the notes thereto; provided, however, that such inclusions or exclusions that affect Awards to Covered
Employees shall satisfy the requirements of Section 162(m) of the Code for deductibility. Any Performance Measure(s) may be used to measure the performance of the Company or a Subsidiary as a whole or any business unit of the Company or a
Subsidiary or any combination thereof, as the Committee may deem appropriate, or any of the above Performance Measures as compared to the performance of a group of comparator companies, or a published or special index that the Committee, in its sole
discretion, deems appropriate. 
 Nothing in this Section 8 is intended to limit the Committee’s discretion to adopt
conditions with respect to any Award that is not intended to qualify as Performance-Based Compensation that relate to performance other than the Performance Measures. In addition, the Committee may, subject to the terms of the Plan, amend previously
granted Awards in a way that disqualifies them as Performance-Based Compensation. 
 In the event that the requirements of
Section 162(m) of the Code and the regulations thereunder change to permit Committee discretion to alter the Performance Measures without obtaining stockholder approval of such changes, the Committee shall have sole discretion to make such
changes without obtaining stockholder approval. 
 9. Effect of Separation from Service 

Each Award Agreement shall set forth the effect of the Participant’s separation from service on any outstanding Awards. Such
provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Awards issued, and may reflect distinctions based on the reasons for the separation from service. 

10. Adjustment Upon Certain Changes 
 (a) Shares Available for Grants 
 In the event of any change in the number
of shares of Common Stock outstanding by reason of any stock dividend or split, recapitalization, merger, consolidation, combination or exchange of shares, or similar corporate change, the maximum aggregate number of shares of Common Stock with
respect to which the Committee may grant Awards in any year, and the maximum aggregate number of shares of Common Stock with respect to which the Committee may grant Awards to any individual Participant in any year, shall be appropriately adjusted
by the Committee. In the event of any change in the number of shares of Common Stock outstanding by reason of any other similar event or transaction, including any extraordinary cash dividend, the Committee shall, to the extent deemed appropriate by
the Committee, make such adjustments in the number and class of shares of Common Stock with respect to which Awards may be granted. 

  
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 (b) Increase or Decrease in Issued Shares Without Consideration 

Subject to any required action by the stockholders of Kraton Performance, in the event of any increase or decrease in the number of
issued shares of Common Stock resulting from a subdivision or consolidation of shares of Common Stock or the payment of a stock dividend (but only on the shares of Common Stock), or any other increase or decrease in the number of such shares
effected without receipt or payment of consideration by the Company, the Committee shall appropriately adjust the number of shares of Common Stock subject to each outstanding Award and the exercise price per share of Common Stock of each such Award.

 (c) Certain Mergers 
 Subject to any required action by the stockholders of Kraton Performance, in the event that Kraton Performance shall be the surviving corporation in any merger, consolidation, or similar transaction as a
result of which the holders of shares of Common Stock receive consideration consisting exclusively of securities of such surviving corporation, the Committee shall, to the extent deemed appropriate by the Committee, adjust each Award outstanding on
the date of such merger or consolidation so that it pertains and applies to the securities which a holder of the number of shares of Common Stock subject to such Award would have received in such merger or consolidation. 

(d) Certain Other Transactions 
 In the event of (i) a dissolution or liquidation of Kraton Performance, (ii) a sale of all or substantially all of the Company’s assets (on a consolidated basis), (iii) a merger,
consolidation, or similar transaction involving Kraton Performance in which Kraton Performance is not the surviving corporation, or (iv) a merger, consolidation or similar transaction involving Kraton Performance in which Kraton Performance is
the surviving corporation but the holders of shares of Common Stock receive securities of another corporation and/or other property, including cash, the Committee shall, in its sole discretion but subject to Section 409A of the Code to the
extent applicable, have the power to: 
 (i) cancel, effective immediately prior to the occurrence of such event,
each Award (whether or not then exercisable), and, in full consideration of such cancellation, pay to the Participant to whom such Award was granted an amount in cash, for each share of Common Stock subject to such Award, equal to the value, as
determined by the Committee in its reasonable discretion, of such Award; provided that with respect to any outstanding Option such value shall be equal to the excess of (A) the value, as determined by the Committee in its reasonable
discretion, of the property (including cash) received by the holder of a share of Common Stock as a result of such event over (B) the exercise price of such Option; or 

(ii) provide for the exchange of each Award (whether or not then exercisable or vested) for an Award with respect to, as
appropriate, some or all of the property which a holder of the number of shares of Common Stock subject to such Award would have received in such transaction and, incident thereto, make an equitable adjustment as determined by the Committee in its
reasonable discretion in accordance with U.S. Department of Treasury Regulation Section 1.409A-1(b)(5)(v)(D) in the exercise price of the Award, and/or the number of shares or amount of property subject to the Award or, if appropriate, provide
for a cash payment to the Participant to whom such Award was granted in partial consideration for the exchange of the Award; or 
 (iii) a combination of (i) and (ii) above. 
 (e) Other Changes

 In the event of any change in the capitalization of Kraton Performance or corporate change other than those specifically
referred to in paragraphs (b), (c), or (d), the Committee shall make such adjustments in the number and class of shares subject to Awards outstanding on the date on which such change occurs and in such other terms of such Awards as the Committee may
consider appropriate. 

  
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 (f) No Other Rights 

Except as expressly provided in the Plan, no Participant shall have any rights by reason of any subdivision or consolidation of shares of
stock of any class, the payment of any dividend, any increase or decrease in the number of shares of stock of any class, or any dissolution, liquidation, merger, or consolidation of Kraton Performance or any other corporation. Except as expressly
provided in the Plan, no issuance by Kraton Performance of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of
shares or amount of other property subject to, or the terms related to, any Award. 
 (g) Savings Clause 

No provision of this Section 10 shall be given effect to the extent that such provision would cause any tax to become due under
Section 409A of the Code. 
 11. Rights Under the Plan 

No person shall have any rights as a stockholder with respect to any shares of Common Stock covered by or relating to any Award granted
pursuant to the Plan until the date of the issuance of a stock certificate with respect to such shares. Except as otherwise expressly provided in Section 10 hereof, no adjustment of any Award shall be made for dividends or other rights for
which the record date occurs prior to the date such stock certificate is issued. Nothing in this Section 11 is intended, or should be construed, to limit authority of the Committee to cause the Company to make payments based on the dividends
that would be payable with respect to any share of Common Stock if it were issued or outstanding, or from granting rights related to such dividends. 
 Nothing in the Plan shall be construed to: (a) limit, impair, or otherwise affect the Company’s right or power to make adjustments, reclassifications, reorganizations, or changes of its capital
or business structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets; or, (b) limit the right or power of the Company to take any action which such entity deems to be necessary
or appropriate. Neither the adoption of the Plan nor the grant of any Award shall be construed as creating any limitations on the power of the Board of Directors or Committee to adopt such other compensation arrangements as it may deem desirable for
any Participant. 
 The Company shall not have any obligation to establish any separate fund or trust or other segregation of
assets to provide for payments under the Plan. To the extent any person acquires any rights to receive payments hereunder from the Company, such rights shall be no greater than those of an unsecured creditor. Nothing contained in the Plan, and no
action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any Participant, beneficiary, legal representative, or any other person. The Plan is not subject
to the Employee Retirement Income Security Act of 1974, as amended. 
 12. No Special Employment Rights; No Right to Award

 (a) Nothing contained in the Plan or any Award shall confer upon any Participant any right with respect to the
continuation of his employment by or service to the Company or interfere in any way with the right of the Company at any time to terminate such employment or service or to increase or decrease the compensation of the Participant from the rate in
existence at the time of the grant of an Award. Neither an Award nor any rights arising under the Plan shall constitute an employment contract with the Company and, accordingly, the Plan and any Award hereunder may be terminated at any time in the
sole and exclusive discretion of the Committee without giving rise to any liability on the part of the Company. 
 (b) No person
shall have any claim or right to receive an Award hereunder. The Committee’s granting of an Award to a Participant at any time shall neither require the Committee to grant an Award to such Participant or any other Participant or other person at
anytime nor preclude the Committee from making subsequent grants to such Participant or any other Participant or other person. 
 13.
Securities Matters 
 (a) Kraton Performance is under no obligation to effect the registration pursuant to the
Securities Act of any shares of Common Stock to be issued hereunder or to effect similar compliance under any state laws. 

  
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Notwithstanding anything herein to the contrary, Kraton Performance shall not be obligated to cause to be issued or delivered any certificates evidencing shares of Common Stock pursuant to the
Plan unless and until Kraton Performance is advised by its counsel that the issuance and delivery of such certificates is in compliance with all applicable laws, regulations of governmental authority and the requirements of any securities exchange
on which shares of Common Stock are traded. The Committee may require, as a condition to the issuance and delivery of certificates evidencing shares of Common Stock pursuant to the terms hereof, that the recipient of such shares make such covenants,
agreements, and representations, and that such certificates bear such legends, as the Committee deems necessary or desirable. 

(b) The exercise of any Option granted hereunder shall only be effective at such time as counsel to Kraton Performance shall have
determined that the issuance and delivery of shares of Common Stock pursuant to such exercise is in compliance with all applicable laws, regulations of governmental authority, and the requirements of any securities exchange on which shares of Common
Stock are traded. Kraton Performance may, in its sole discretion, defer the effectiveness of an exercise of an Option hereunder or the issuance or transfer of shares of Common Stock pursuant to any Award pending or to ensure compliance under federal
or state securities laws. Kraton Performance shall inform the Participant in writing of its decision to defer the effectiveness of the exercise of an Option or the issuance or transfer of shares of Common Stock pursuant to any Award. During the
period that the effectiveness of the exercise of an Option has been deferred, the Participant may, by written notice, withdraw such exercise and obtain the refund of any amount paid with respect thereto. 

14. Tax Provisions & Withholding 
 (a) Cash Remittance 
 Whenever shares of Common Stock are to be issued upon
the exercise of an Option or the grant or vesting of an Award, and whenever any amount shall become payable in respect of any Award, Kraton Performance shall have the right to require the Participant to remit to Kraton Performance in cash an amount
sufficient to satisfy federal, state, and local withholding tax requirements, if any, attributable to such exercise, grant, vesting, or payment prior to the delivery of any certificate or certificates for such shares or the effectiveness of the
lapse of such restrictions or making of such payment. In addition, upon the exercise or settlement of any Award in cash, or any payment with respect to any Award, Kraton Performance shall have the right to withhold from any payment required to be
made pursuant thereto an amount sufficient to satisfy the federal, state, and local withholding tax requirements, if any, attributable to such exercise, settlement, or payment. The Company can delay the delivery to a Participant of any Common Stock
or cash payable to such Participant to determine the amount of withholding to be collected and to collect and process such withholding. 
 (b) Stock Remittance 
 At the election of the Participant, subject to the
approval of the Committee, when shares of Common Stock are to be issued upon the exercise, grant, or vesting of an Award, the Participant may tender to Kraton Performance a number of shares of Common Stock that have been owned by the Participant for
at least six months (or such other period as the Committee may determine) having a Fair Market Value at the tender date determined by the Committee to be sufficient to satisfy the federal, state, and local withholding tax requirements, if any,
attributable to such exercise, grant, or vesting but not greater than such withholding obligations. Such election shall be irrevocable, made in writing, and signed by the Participant, shall be subject to any restrictions or limitations that the
Committee, in its sole discretion, deems appropriate, and shall satisfy the Participant’s obligations under Section 14 hereof, if any. The Company can delay the delivery to a Participant of any Common Stock or cash payable to such
Participant to determine the amount of withholding to be collected and to collect and process such withholding. 
 (c) Stock
Withholding 
 At the election of the Participant, subject to the approval of the Committee, when shares of Common Stock are
to be issued upon the exercise, grant, or vesting of an Award, Kraton Performance shall withhold a number of such shares having a Fair Market Value at the exercise date determined by the Committee to be sufficient to satisfy the federal, state, and
local withholding tax requirements, if any, attributable to such exercise, grant, or vesting but not greater than such withholding obligations. Such election shall be irrevocable, made in writing, and signed by the Participant, shall be subject to
any restrictions or limitations that the Committee, in its sole discretion, deems appropriate, and shall satisfy the Participant’s obligations under Section 14 hereof, if any. The Company can delay the delivery to a Participant of any
Common Stock or cash payable to such Participant to determine the amount of withholding to be collected and to collect and process such withholding. 

  
 13 










 (d) Consent to and Notification of Code Section 83(b) Election 

No election under Section 83(b) of the Code (to include in gross income in the year of transfer the amounts specified in Code
Section 83(b)) or under a similar provision of the laws of a jurisdiction outside the United States may be made unless expressly permitted by the terms of the Award document or by action of the Committee in writing prior to the making of such
election. In any case in which a Participant is permitted to make such an election in connection with an Award, the Participant shall notify the Company of such election within ten days of filing notice of the election with the Internal Revenue
Service or other governmental authority, in addition to any filing and notification required pursuant to regulations issued under Code Section 83(b) or other applicable provision. 

(e) Notification Upon Disqualifying Disposition Under Code Section 421(b) 

If any Participant shall make any disposition of shares of Common Stock delivered pursuant to the exercise of an Incentive Stock Option
under the circumstances described in Code Section 421(b) (i.e., a disqualifying disposition), such Participant shall notify the Company of such disposition within ten days thereof. 
 15. Amendment or Termination of the Plan 
 The Board of Directors
may at any time suspend or discontinue the Plan or revise or amend it in any respect whatsoever; provided, however, that to the extent that any applicable law, regulation, or rule of a stock exchange requires stockholder approval in order for
any such revision or amendment to be effective, such revision or amendment shall not be effective without such approval. The preceding sentence shall not restrict the Committee’s ability to exercise its discretionary authority hereunder
pursuant to Section 4 hereof, which discretion may be exercised without amendment to the Plan; provided that no provision of this Section 15 shall be given effect to the extent that such provision would cause any tax to become due
under Section 409A of the Code. 
 Except as expressly provided in the Plan, no action hereunder may, without the consent
of a Participant, reduce the Participant’s rights under any previously granted and outstanding Award. Notwithstanding the foregoing, the Committee may terminate any Award previously granted and any agreement relating thereto in whole or in part
provided that upon any such termination the Company, in full consideration of the termination of (i) any Option outstanding under the Plan (whether or not vested or exercisable) or portion thereof, pays to such Participant an amount in
cash for each share of Common Stock subject to such Option or portion thereof being terminated equal to the excess, if any, of (a) the value at which a share of Common Stock received pursuant to the exercise of such Option would have been
valued by the Company at that time for purposes of determining applicable withholding taxes or other similar statutory amounts, over (b) the exercise price, or, if the Committee permits and the Participant elects, accelerates the exercisability
of such Participant’s Option or portion thereof (if necessary) and allows such Participant 30 days to exercise such Option or portion thereof before the termination of such Option or portion thereof, or (ii) any Award other than an Option
outstanding under the Plan or portion thereof, pays to such Participant an amount in shares of Common Stock or cash or a combination thereof (as determined by the Committee in its sole discretion) equal to the value of such Award or portion thereof
being terminated as of the date of termination (assuming the acceleration of the exercisability of such Award or portion thereof, the lapsing of any restrictions on such Award or portion thereof or the expiration of any deferral or vesting period of
such Award or portion thereof) as determined by the Committee in its sole discretion; provided that, to the extent any such Award is subject to Section 409A of the Code, any such payment (including, without limitation, the timing and
form thereof) shall comply with Section 409A of the Code. 
 Notwithstanding any other provision of the Plan to the
contrary, the Committee may authorize the repurchase of any Award by the Company or a third party at any time for such price and on such terms and conditions as the Committee may determine in its sole discretion. Nothing in the Plan shall limit the
right of the Company to pay compensation of any kind outside the terms of the Plan. 

  
 14 










 16. No Obligation to Exercise 

The grant to a Participant of an Award shall impose no obligation upon such Participant to exercise such Award. 

17. Transfer Restrictions 
 Upon the death of a Participant, outstanding Awards granted to such Participant may be exercised only by the executors or administrators of the Participant’s estate or by any person or persons who
shall have acquired such right to exercise by will or by the laws of descent and distribution. No transfer by will or the laws of descent and distribution of any Award, or the right to exercise any Award, shall be effective to bind Kraton
Performance unless the Committee shall have been furnished with (a) written notice thereof and with a copy of the will and/or such evidence as the Committee may deem necessary to establish the validity of the transfer and (b) an agreement
by the transferee to comply with all the terms and conditions of the Award that are or would have been applicable to the Participant and to be bound by the acknowledgements made by the Participant in connection with the grant of the Award.

 Except as provided in the preceding paragraph (regarding transfers upon the death of a Participant) and Section 6
(regarding the transfer of certain Non-Qualified Stock Options), no Award or other right or interest of a Participant under the Plan shall be pledged, hypothecated, or otherwise encumbered or subject to any lien, obligation, or liability of such
Participant to any party (other than the Company), or assigned or transferred by such Participant, and such Awards or rights that may be exercisable shall be exercised during the lifetime of the Participant only by the Participant or his or her
guardian or legal representative, except that Awards and other rights (other than Incentive Stock Options and Stock Appreciation Rights in tandem therewith) may be transferred to one or more transferees during the lifetime of the Participant, and
may be exercised by such transferees in accordance with the terms of such Award, but only if and to the extent such transfers are permitted by the Committee, subject to any terms and conditions which the Committee may impose thereon (which may
include limitations the Committee may deem appropriate in order that offers and sales under the Plan will meet applicable requirements of registration forms under the Securities Act of 1933 specified by the Securities and Exchange Commission). A
beneficiary, transferee, or other person claiming any rights under the Plan from or through any Participant shall be subject to all terms and conditions of the Plan and any Award document applicable to such Participant, except as otherwise
determined by the Committee, and to any additional terms and conditions deemed necessary or appropriate by the Committee. 
 18. Expenses
and Receipts 
 The expenses of the Plan shall be paid by Kraton Performance. Any proceeds received by Kraton
Performance in connection with any Award will be used for general corporate purposes. 
 19. No Fractional Shares 

No fractional shares of Common Stock shall be issued or delivered pursuant to the Plan or any Award. The Committee shall determine
whether cash, Awards, or other property shall be issued or paid in lieu of fractional shares of Common Stock or whether such fractional shares of Common Stock or any rights thereto shall be forfeited or otherwise eliminated. 

20. Retirement and Welfare Plans 
 Neither Awards made under the Plan nor shares of Common Stock or cash paid pursuant to such Awards will be included as “compensation” for purposes of computing the benefits payable to any
Participant under the Company’s retirement plans (both qualified and non-qualified) or welfare benefit plans unless such other plan expressly provides that such compensation shall be taken into account in computing a participant’s benefit
or except as the Committee may otherwise determine in its discretion. 
 21. Compliance with Code Section 162(m) 

It is the intent of the Company that Options and Stock Appreciation Rights granted to Covered Employees and other Awards designated as
Awards to Covered Employees subject to Section 8 shall constitute qualified “performance-based compensation” within the meaning of Section 162(m) of the Code, unless otherwise determined


  
 15 










 
by the Committee at the time of allocation of an Award. Accordingly, the terms of Section 8, including the definitions of Covered Employee and other terms used therein, shall be interpreted
in a manner consistent with Section 162(m) of the Code. The foregoing notwithstanding, because the Committee cannot determine with certainty whether a given Participant will be a Covered Employee with respect to a fiscal year that has not yet
been completed, the term Covered Employee as used herein shall mean only a person designated by the Committee as likely to be a Covered Employee with respect to a specified fiscal year. If any provision of the Plan or any Award document relating to
an Award that is designated as intended to comply with Section 162(m) of the Code does not comply or is inconsistent with the requirements of Section 162(m) of the Code, such provision shall be construed or deemed amended to the extent
necessary to conform to such requirements, and no provision shall be deemed to confer upon the Committee or any other person discretion to increase the amount of compensation otherwise payable in connection with any such Award upon attainment of the
applicable performance goals. 
 22. Certain Limitations on Awards to Ensure Compliance with Code Section 409A 

The Company intends that the Plan and each Award granted hereunder that is subject to Section 409A of the Code shall comply with or
be exempt from Section 409A of the Code and that the Plan shall be interpreted, operated and administered accordingly. In the event any term and/or condition of an Award granted hereunder would cause the application of an accelerated or
additional tax under Section 409A of the Code, such term and/or condition shall be restructured, to the extent possible, in a manner, determined by the Committee, that does not cause such an accelerated or additional tax. Any reservation of
rights by the Company hereunder affecting the timing of payment of any Award subject to Section 409A of the Code (including, without limitation, the rights of the Committee pursuant to Section 10(d)) will only be as broad as is permitted
by Section 409A of the Code. Notwithstanding anything herein to the contrary, in no event shall the Company be liable for the payment of or gross-up in connection with any taxes and or penalties owed by the Participant pursuant to
Section 409A of the Code. 
 If an Award is intended to comply with Section 409A of the Code, all payments to be made
upon a termination of employment under such Award may only be made upon a “Separation from Service” (as defined in Section 409A of the Code and the accompanying Treasury Regulations and guidance issued by the Internal Revenue
Service). For purposes of Section 409A of the Code, each payment under an Award is treated as a separate and independent payment. In no event may the Participant, directly or indirectly, designate the calendar year of payment. 

If the Participant is deemed to be a “Specified Employee” (as term is defined in Section 409A of the Code and the
accompanying Treasury Regulations and guidance issued by the Internal Revenue Service) as of the date of his Separation from Service, as determined by Kraton Performance, the payment of any amount under an Award on account of Separation from Service
that is deferred compensation subject to Section 409A of the Code and not otherwise exempt from Section 409A, shall not be paid before the earliest of (i) the first business day that is at least six months after the date of the
Participant’s Separation from Service, (ii) the date of the Participant’s death, or (iii) the date that otherwise complies with the requirements of Section 409A of the Code. This provision shall be applied by accumulating
all payments that otherwise would have been paid within six months of the Participant’s Separation from Service and paying such accumulated amounts, without interest, at the earliest date as described in the preceding sentence and any remaining
payments due under such Award shall be paid or provided in accordance with the normal payment dates specified therein. 
 23.
Uncertificated Shares 
 To the extent that the Plan provides for issuance of certificates to reflect the transfer of
shares of Common Stock, the transfer of such shares may be effected on a noncertificated basis, to the extent not prohibited by applicable law or the rules of any stock exchange. 
 24. Participants Based Outside of the United States 

Notwithstanding any provision of the Plan to the contrary, in order to comply with the laws in other countries in which the Company
operates or has employees, Directors or independent contractors, the Committee, in its sole discretion, shall have the power and authority to: 
 (a) Determine which affiliates and Subsidiaries shall be covered by the Plan; 

  
 16 










 (b) Determine which employees, Directors, and/or independent contractors outside the United
States are eligible to participate in the Plan; 
 (c) Modify the terms and conditions of any Award granted to employees,
Directors, and/or independent contractors outside the United States to comply with applicable foreign laws; 
 (d) Establish
subplans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable. Any subplans and modifications to Plan terms and procedures established under this Section 24 by the Committee
shall be attached to the Plan document as appendices; and 
 (e) Take any action, before or after an Award is made, that it
deems advisable to obtain approval or comply with any necessary local government regulatory exemptions or approvals. 

Notwithstanding the above, the Committee may not take any actions hereunder, and no Awards shall be granted, that would violate
applicable law. 
 25. Legend 
 The certificates or book entry for shares of Common Stock may include any legend or coding, as applicable, which the Committee deems appropriate to reflect any restrictions on transfer of such shares.

 26. Severability; Entire Agreement 
 If any of the provisions of the Plan or any Award Agreement is finally held to be invalid, illegal, or unenforceable (whether in whole or in part), such provision shall be deemed modified to the extent,
but only to the extent, of such invalidity, illegality, or unenforceability, and the remaining provisions shall not be affected thereby; provided that, if any of such provisions is finally held to be invalid, illegal, or unenforceable because
it exceeds the maximum scope determined to be acceptable to permit such provision to be enforceable, such provision shall be deemed to be modified to the minimum extent necessary to modify such scope in order to make such provision enforceable
hereunder. The Plan and any Award Agreement or other agreements or documents designated by the Committee as setting forth the terms of an Award contain the entire agreement of the parties with respect to the subject matter thereof and supersede all
prior agreements, promises, covenants, arrangements, communications, representations, and warranties between them, whether written or oral, with respect to the subject matter thereof. 
 27. Descriptive Headings 
 The headings in the Plan are for
convenience of reference only and shall not limit or otherwise affect the meaning of the terms contained herein. 
 28. Governing Law

 The Plan and the rights of all persons under the Plan shall be construed and administered in accordance with the laws of
the State of Texas without regard to its conflict of law principles. 
 29. Effective Date, Term of Plan and Approval By Stockholders

 The Plan was originally adopted and effective as of the Effective Date and shall terminate automatically on the ten year
anniversary of the Effective Date and may be terminated on any earlier date as provided in Section 15. The Plan, as amended and restated effective as of May 25, 2011, as adopted by the Board of Directors, was approved by the stockholders
of Kraton Performance at the Annual Meeting of the Stockholders of Kraton Performance Polymers, Inc. held on May 25, 2011. The Plan was subsequently amended and restated effective as of February 16, 2012, as adopted by the Board of
Directors. 

  
 17