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| I.   | Performance      Metrics |
|----------------|--------------------------|

|  Unit            |   |  Performance      Measure #1 |   | Weight |   |   |  Performance      Measure #2 |                           | Weight |   |  Performance      Measure #3 |   | Weight              |   |
|-----------------------|--------|-----------------------------------|--------|--------|--------|--------|-----------------------------------|--------------------------------|--------|--------|-----------------------------------|--------|---------------------|--------|
| Core                  |   | Enterprise      EBITDAR           |   |   | 50     | %      |                              | Enterprise      Free Cash Flow |   |   | 50                                | %      | NA                  |   | NA |   |
| Integrated      Nylon |   | EBITDAR                           |   |   | 50     | %      |                              | Free      Cash Flow            |   |   | 50                                | %      | NA                  |   | NA |   |
| Saflex                |   | EBITDAR                           |   |   | 33.3   | %      |                              | Free      Cash Flow            |   |   | 33.3                              | %      | Gross      Margin % |   |   | 33.3 | % |
| CPFilms               |   | EBITDAR                           |   |   | 50     | %      |                              | Free      Cash Flow            |   |   | 50                                | %      | NA                  |   | NA |   |
| Flexsys               |   | EBITDAR                           |   |   | 50     | %      |                              | Free      Cash Flow            |   |   | 50                                | %      | NA                  |   | NA |   |
| Other      PPD        |   | EBITDAR                           |   |   | 50     | %      |                              | Free      Cash Flow            |   |   | 50                                | %      | NA                  |   | NA |   |

|  Unit |   |   | Performance      Measure |   |   |  Weight |   |
|------------|--------|--------|--------------------------|--------|--------|--------------|--------|
| All        |   |   | Enterprise      EBITDAR  |   |   |         | 100    | % |

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| ·   | “EBITDAR” means with      respect to any specified entity for any period, consolidated net income      (loss) of such specified entity and its subsidiaries for such period,      determined on a consolidated basis, in accordance with GAAP and subject to      historical internal reporting standards, excluding (without duplication),      to the extent deducted in determining consolidated net income (loss) (a)      any extraordinary, non-recurring, non-operational or non-cash gains or      losses, (b) restructuring charges, and (c) effects of discontinued      operations, plus (without duplication), in accordance with GAAP and to the      extent deducted in determining consolidated net income (loss), (d)      interest expense, and (e) income tax expense plus, (f) depreciation      expense, and (g) amortization expense excluding amortization of deferred      credits plus, (h) reorganization items.  Calculation of EBITDAR      shall exclude all impacts of fresh start accounting and any effects of      accounting policy changes made in connection with fresh start, effective      as of the emergence date. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | “Free Cash Flow” means,      with respect to any specified entity for any period, the cash flow      provided by (used in) continued operations of such specified entity and      its subsidiaries for such period, determined on a consolidated basis, in      accordance with GAAP and subject to historical internal reporting      standards, excluding (without duplication), to the extent deducted in      determining cash flow provided by (used in) continued operations (a) any      extraordinary, non-recurring or non-operational gains or losses, (b)      restructuring charges, and (c) effects of discontinued operations, less      Capital Expenditures, plus net proceeds received related to asset sales      and proceeds received by Solutia in excess of management’s estimate from      the disposition of any of the Company’s business units or dividions, to      the extent sold during the calendaryear. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | “Gross Margin %” means,      with respect to any specified entity for any period, gross margin (the      difference between the reported revenue less cost of goods sold of the      business unit) divided by revenue of such specified entity and its      subsidiaries for such period, determined on a consolidated basis, in      accordance with GAAP and subject to historical internal reporting      standards, excluding (without duplication), to the extent deducted in      determining gross margin or revenue (a) any extraordinary, non-recurring,      non-operational or non-cash gains or losses or gains or losses from      dispositions, (b) restructuring charges, and (c) effects of discontinued      operation, and (d) all impacts of fresh start accounting, including      accounting policy changes made in connection with fresh start, effective      as of the emergence date. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| II.   | Calculation      of Incentive Awards |
|-----------------|--------------------------------------|

| ·   | The      objective award      pool will be based upon business-unit performance and will be equal      to 45% of such individual’s target bonus multiplied by the relevant      funding factor. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      discretionary      award pool will be based upon a participant’s individual      performance versus established objectives, performance in relation to      peers, and according to the process described below.  The      discretionary portion of an individual participant’s bonus may range from      zero upward. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 1)   | Incentive      Pools are determined and funded based on Business Unit/Core performance      relative to the pre-established targets, funding factors, and      weighting.  The Pools are then allocated equally to objective      awards and discretionary awards. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2)   | The      Enterprise Discretionary Incentive Pool is determined and funded based on      the enterprise EBITDAR performance relative to the pre-established      target. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3)   | The      objective portion of bonuses are determined and approved by the      ECDC. |
|----------------|-------------------------------------------------------------------------------------|

| 4)   | Managers      will make individual award recommendations based upon individual      performance compared to established objectives for individual      discretionary portion.  Individual discretionary awards will be      approved by the Business Unit President and the  CEO. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5)   | Bonus      amounts from the Enterprise Discretionary Bonus Pool will be determined at      the discretion of the CEO with the advise of the Executive Leadership Team      (ELT). |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6)   | The      ECDC shall determine the discretionary bonus for the CEO and approve      discretionary awards for the ELT.  Any discretionary bonus paid      to the CEO in excess of 50% of the CEO’s target bonus multiplied by the      relevant funding factor shall not, at the discretion of the ECDC, diminish      awards available under the Core Function Incentive Pool, the Business Unit      Incentive Pool or the Enterprise Discretionary Bonus  Pool. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 7)   | The      ECDC has determined that the maximum bonus an individual can receive under      the AIP is 200% of his/her performance adjusted target bonus (after      applying the funding factor). |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8)   | In      cases where an individual is assigned to a specific Business Unit or Core,      but supports more than one Business Unit, the performance metric component      of the funding will be based on the following  rules: |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Employees      who support a Business Unit more than 50% of the time will receive that      Unit’s funding factor. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | Employees      who support two Business Units equally will receive an average of the two      Units’ funding factors. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| ·   | Employees      who support multiple Business Units (and aren’t covered by the above) will      receive the Core funding factor. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Funding      sources for an employee’s award will be determined based on the number of      full months spent, rounded if applicable, in each function or Business      Unit. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.   | The      ECDC will approve individual incentive awards for the CEO and all      Executive Leadership Team (ELT) members.  The CEO and his direct      reports may approve all other incentiveawards. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Employees      must be actively employed with the company on the day of the payout to      receive an award. |
|----------------|--------------------------------------------------------------------------------------------------------------|

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| 3.   | Employees      who retire, resign, or are terminated shall not be eligible for an award      if they are not employed by Solutia on the date of  payment. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Employees      on leave of absence during the Performance Year will be considered for a      prorated award reflecting actual serve, rounded to the nearest whole      month.  Payment will be made, if any, at the time awards are      normally paid, or upon returning from leave of absence, if      later. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | In      the event of an employee’s death, payment will be made to the employee’s      estate reflecting the employee’s actual service to the nearest whole      month. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | Employees      promoted or hired before December 1 into a position that is eligible to      participate may be considered for an award that will be prorated      reflecting the employees’ actual participation to the nearest whole      month. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | Awards      for Employee who change jobs (and incentive targets) during the year will      be prorated to reflect the employee’s actual participation in both      positions to the nearest wholemonth. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | Employees      who transfer from another Business Unit not participating in this plan to      a participating position or vice versa during the Performance Year will      receive a prorated award based on the time spent in the participating      position. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.   | Employees      who are involuntarily terminated with severance between the end of the      Performance Year and prior to the payout may be eligible to receive an      award. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.   | Awards      are paid in cash and will be made no later than 75 days following the end      of the Performance Year in the United States.  Awards outside of      the United States are determined at the same time as the awards for      participants in the United States and paid as soon as administratively      possible once approved. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | In      all events, whether any cash award is made under the Plan to a participant      will depend on management’s recommendation and the decision of the ECDC      (or its delegate). |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Nothing      in this document or any other document describing or referring to the Plan      shall confer any right whatsoever on any person to be considered for any      incentive commitments or awards. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | This      document is subject to and governed by actions, interpretation, and rules      and regulations of the ECDC (or its delegate) and may be changed or      discontinued at any time without notice or liability.  Incentive      commitments and awards shall be subject to and governed by the specific      terms and conditions of this Plan and the applicable  award. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Nothing      in this document or any other document describing or referring to the Plan      shall confer on any employee or participant the right to continue in the      employ of the Company or affect the right of the Company to terminate the      employment of any such person with or without  cause. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Nothing      contained herein shall require the Company to segregate any monies from      its general fund or to create any trusts, or to make any special deposits      for amounts payable to anyparticipant. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | No      bonus commitment or unpaid bonus award shall be pledged or transferred      except as specifically provided for herein (such as in the case of      death).  If any participant attempts to pledge, assign, transfer      or otherwise alienate any award, any obligation of the Company hereunder      shall terminate. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company will withhold any federal, state or local, domestic or foreign      taxes as required by law or regulation or as the Company deems appropriate      from any payments that it makes to participants  hereunder. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Plan is subject to the laws of the State of  Delaware. |
|--------------------|-----------------------------------------------------------------|

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| ·   | Nothing      in this Plan shall be deemed to modify any terms and conditions of a      participants employment agreement. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Plan may be amended, modified or terminated without notice by the Company      at any time, including (but not limited to) any such amendment,      modification or termination that reduces or eliminates any benefit      otherwise to be paid or payablehereunder. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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