Document:

Notional Unit Award Grant Agreement dated July 15, 2005

 EXHIBIT 10.56 
  
 NOTIONAL UNIT AWARD GRANT AGREEMENT 
  
 THIS NOTIONAL UNIT AWARD GRANT AGREEMENT (this “Agreement”), made as of the 15th day of July, 2005 between
KRATON Polymers LLC (the “Company”) and Kevin Fogarty (the “Participant”). 
  
 WHEREAS, pursuant to Section 4.02 of the Second Amended and Restated Limited Liability Company Operating Agreement of TJ Chemical Holdings LLC (the
“TJ Chemical Operating Agreement”), each of the Voting Members of TJ Chemical Holdings LLC (“TJ Chemical”) has approved the grant of a Notional Unit award with a current notional value of $300,000 to the Participant
pursuant to his employment agreement with the Company, dated June [ ], 2005 (the “Employment Agreement”); 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter set forth, the parties hereto hereby agree as follows: 

 
 1. Grant of a Notional Unit Award. Pursuant to, and subject to, the terms
and conditions set forth herein, the Company hereby grants to the Participant an award (the “Award”) of Notional Units (“Notional Units”) with a current notional value of $300,000 based on the value of membership
unit(s) of TJ Chemical. Each Notional Unit will be the equivalent of one notional membership unit of TJ Chemical. 
  
 2. Grant Date. The Grant Date of the Award hereby granted is July 15, 2005. 
  
 3. No Beneficial Ownership. The Participant shall not have any beneficial ownership in the notional membership units
underlying the Notional Units and the grant of Notional Units shall represent an unsecured promise to deliver membership units of TJ Chemical (either directly or through membership units of KRATON Management LLC (“Management LLC”))
on a future date. 
  
 4. Vesting Date. The Award shall vest as
follows: Twenty percent of the Notional Units shall vest on each of the first five anniversaries from June 15, 2005, provided that the Participant remains employed with the Company through the applicable vesting date. Except as provided in the
next succeeding sentence, upon termination of employment for any reason all unvested Notional Units shall immediately and automatically be forfeited. In the event of a Change in Control (as defined in the TJ Chemical 2004 Option Plan), if the
Participant’s employment is terminated without Cause or for Good Reason (as those terms are defined in the Employment Agreement) during the two-year period immediately following the date of the Change in Control, all unvested Notional Units
shall become immediately vested. 
  
 5. Distribution of Membership
Units. Distribution of membership units representing the portion of vested Notional Units shall occur as soon as practicable after the earlier of a Change in Control or termination of the Participant’s employment, provided that
following a Change in 

 Control, unvested Notional Units shall remain outstanding and continue to vest as provided above until the
Participant’s employment terminates. 
  
 6. Limitations on Transfer of
Membership Units; Termination of Employment. The Participant acknowledges that upon becoming a member of TJ Chemical or Management LLC, as applicable, the Participant will be subject to all the terms and conditions provided in the TJ
Chemical Operating Agreement or the Limited Liability Company Operating Agreement of KRATON Management LLC, as amended from time to time (the “Management LLC Operating Agreement”), (collectively, the “Operating
Agreements” and each an “Operating Agreement”), as applicable, including all transfer restrictions, tag-along and drag-along rights and call rights provided therein. 
  
 7. Delays or Omissions. No delay or omission to exercise any right, power or
remedy accruing to any party hereto upon any breach or default of any party under this Agreement, shall impair any such right, power or remedy of such party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence
therein, or of or in any similar breach or default thereafter occurring nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or
approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party or any provisions or conditions of this Agreement, shall be in writing and shall be effective only to
the extent specifically set forth in such writing. 
  
 8. Limitation on
Transfer of Notional Units. Except as set forth in this Section 8, the Award shall be distributable only to the Participant. The Award shall not be assignable or transferable other than by will or by the laws of descent and
distribution. Notwithstanding the foregoing, the Participant may request authorization from the Company to assign his Award granted herein to a trust or custodianship, the beneficiaries of which may include only the Participant, the
Participant’s spouse or the Participant’s lineal descendants (by blood or adoption), and, if the Company grants such authorization, the Participant may assign his rights accordingly. In the event of any such assignment, such trust or
custodianship shall be subject to all the restrictions, obligations, and responsibilities as apply to the Participant under this Agreement and shall be entitled to all the rights of the Participant under this Agreement; provided that upon
such assignment in accordance with this Section 8, all references in this Agreement shall be deemed to be replaced by a reference to the transferee of the Award, except references to employment obligations or the termination thereof, which
shall continue to be references to the Participant, including Sections 4 and 5. 
  
 9. Indemnification. The Participant agrees, to the fullest extent permitted by law, to indemnify and hold harmless the Company, Management LLC and TJ Chemical and any member, director, officer, or employee thereof against any
and all losses, liabilities, claims, damages, and expenses of any nature whatsoever (including attorneys’ fees and disbursements, judgments, fines and amounts paid in settlement) (collectively, “Losses”) arising out of or based
upon any breach or failure by the Participant to comply with his obligations made herein. This Section 9 shall survive any termination or execution of this Agreement. 
  

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 10. Representations. 
  
 10.1 Participant Representations. In addition to any representations made by the Participant in the
applicable Operating Agreement, the Participant hereby represents and warrants to the Company, Management LLC and TJ Chemical that: (a) the Participant is aware that the applicable Operating Agreements provide significant restrictions on the
ability of a Participant to sell, transfer, assign, mortgage, hypothecate, or otherwise encumber the membership units; (b) the Participant has duly executed and delivered this Agreement; and (c) the Participant’s authorization,
execution, delivery, and performance of this Agreement do not conflict with any other agreement or arrangement to which the Participant is a party or by which it is bound. 
  
 10.2 Truth of Representations and Warranties. The Participant represents and warrants that all of his
representations set forth in Section 10.1 of this Agreement are true and correct as of the date hereof. 
  
 11. Integration. This Agreement, and the other documents referred to herein or delivered pursuant hereto (including, without limitation, the Operating Agreements) which form a part hereof contain the
entire understanding of the parties with respect to its subject matter and there are no restrictions, agreements, promises, representations, warranties, covenants or undertakings with respect to the subject matter hereof other than those expressly
set forth in such documents. This Agreement and the Operating Agreements supersede all prior agreements and understandings between the parties with respect to its subject matter. 
  
 12. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but
all of which shall constitute one and the same instrument. 
  
 13. Governing
Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware without regard to the provisions thereof governing conflict of laws. 
  
 14. Participant Acknowledgment. The Participant hereby acknowledges receipt of
a copy of the Operating Agreements. The Participant hereby acknowledges that all decisions, determinations and interpretations of the Board of Directors of the Company in respect of this Agreement shall be final and conclusive. 
  
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 IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its duly authorized
officer and said Participant has hereunto signed this Grant Agreement on his own behalf, thereby representing that he has carefully read and understands this Agreement and the Operating Agreements as of the day and year first written above.

  

			
	 KRATON POLYMERS LLC

	
	 /s/ Joseph Waiter

	 By: Joseph Waiter

	 Title: Vice President

	
	 KEVIN FOGARTY

	
	 /s/ Kevin Fogarty

	 Address:
	 	13915 Pinnacle Drive
	 	 	Wichita, KS 67230

  

 4Option Grant Agreement dated July 15, 2005

 EXHIBIT 10.57 
  
 OPTION GRANT AGREEMENT 
  
 THIS OPTION GRANT AGREEMENT, made as of the 15th day of July, 2005 between TJ Chemical Holdings LLC (the “Company”) and Kevin Fogarty (the “Participant”). 
  
 WHEREAS, the Company has adopted and maintains the TJ Chemical Holdings LLC
2004 Option Plan (the “Plan”) to promote the interests of the Company and the Holders of Membership Units in the Company by providing key employees, consultants, members and service providers of the Company and its affiliates with
an appropriate incentive to encourage them to continue in the employ or service and to improve the growth and profitability of the Company and its affiliates; 
  

WHEREAS, the Plan provides for the Grant to Participants of non-qualified Options to purchase Membership Unit(s) in the Company; 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants
hereinafter set forth, the parties hereto hereby agree as follows: 
  
 1.
Grant of Options. Pursuant to, and subject to, the terms and conditions set forth herein and in the Plan, the Company hereby grants to the Participant a non-qualified option (the “Option”) with respect to 1,250,000
Membership Unit(s) in the Company. 
  
 2. Grant Date. The Grant Date
of the Option hereby granted is July 15, 2005. 
  
 3. Vesting
Commencement Date. The Vesting Commencement Date of the Option hereby granted is June 15, 2005. 
  
 4. Incorporation of Plan. All terms, conditions and restrictions of the Plan and the LLC Agreement are incorporated herein and made part hereof as if stated herein. If there is any conflict between the
terms and conditions of the Plan or the LLC Agreement and this Option Grant Agreement, the terms and conditions of this Option Grant Agreement, as interpreted by the Committee in its sole discretion, shall govern, unless explicitly provided to the
contrary in the Plan or this Option Grant Agreement. All capitalized terms used herein shall have the meaning given to such terms in the Plan. 
  
 5. Exercise Price. The exercise price per Membership Unit underlying the Option granted hereby is $1.00. 
  
 6. Vesting Date. The Option shall become exercisable as follows: twenty percent
(20%) of the Membership Unit(s) (rounded down to the nearest Membership Unit) underlying the Option shall become exercisable on each of the first five anniversaries of the Vesting Commencement Date; provided that the Participant remains
employed with the Company or any of its affiliates on each such anniversary; and provided further that notwithstanding the foregoing, if within the two-year period following a Change in Control the Participant’s Services are terminated
by the Company or its affiliate without Cause or by the Participant for Good Reason, the unvested portion of the Option shall become immediately vested as of the effective date of the termination of such Participant’s Services. For purposes of
this Option Grant Agreement, the definition of 

 
Good Reason contained in the Plan shall govern the Participant’s rights during the two-year period following a Change in Control, without regard to that
definition’s reference to the Participant’s employment agreement. 
  
 7. Expiration Date. The Option or such portion thereof that has not yet become exercisable on the date the Participant’s Services are terminated for any reason shall expire on such date. The Option or such portion thereof
that has become exercisable on or before the date the Participant’s Services are terminated shall expire on the earlier of (a) the commencement of business on the date the Participant’s Services are terminated for Cause; (b) 90
calendar days after the date the Participant’s Services are terminated for any reason other than Cause, death or Disability; (c) one year after the date the Participant’s Services are terminated by reason of death or Disability; or
(d) the 10th anniversary of the Grant Date. 
  
 8. Limitations on
Transfer of Membership Units; Termination of Employment. The Participant acknowledges that upon becoming a member of the Company, the Participant will be subject to all the terms and conditions provided in the LLC Agreement.
Notwithstanding anything herein or the LLC Agreement to the contrary, the Participant shall not sell or transfer any Membership Unit acquired pursuant to the exercise of an Option, except (i) to the Participant’s beneficiaries or estate
upon the Participant’s death, (ii) upon consent of the Committee, (iii) pursuant to Sections 6.03, 6.04, 6.06 of the LLC Agreement, or (iv) if such sale or transfer occurs following the date set forth in Section 6.07 of the
LLC Agreement. 
  
 In the event of a termination of a
Participant’s Services, the Company shall have the right to purchase the Participant’s Membership Units acquired pursuant to the Options in accordance with Section 6.06 of the LLC Agreement. Any Membership Units acquired pursuant to
the exercise of the Options shall be subject to certain Tag-Along and Drag-Along rights in accordance with Article VI of the LLC Agreement. 
  
 9. Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party hereto upon any breach or default of any party
under this Option Grant Agreement, shall impair any such right, power or remedy of such party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter
occurring nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any
breach or default under this Option Grant Agreement, or any waiver on the part of any party or any provisions or conditions of this Option Grant Agreement, shall be in writing and shall be effective only to the extent specifically set forth in such
writing. 
  
 10. Limitation on Transfer of Options. Except as set
forth in this Section 10, the Option shall be exercisable only by the Participant. The Option shall not be assignable or transferable other than by will or by the laws of descent and distribution. Notwithstanding the foregoing, the Participant
may request authorization from the Committee to assign the Option granted herein to a trust or custodianship, the beneficiaries of which may include only the Participant, the Participant’s spouse or the Participant’s lineal descendants (by
blood or adoption), and, if the Committee grants such authorization, the Participant may assign his rights accordingly. In the event of any such assignment, such trust or custodianship shall be subject to all the restrictions, 

  

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obligations, and responsibilities as apply to the Participant under the Plan and this Option Grant Agreement and shall be entitled to all the rights of the
Participant under the Plan and this Option Grant Agreement; provided that notwithstanding such assignment, if the events or dates set forth in Sections 6 and 7 of the Option Grant Agreement occur with respect to the Participant, the Option
shall not vest or expire at the times set forth in Sections 6 and 7 hereof; provided further that upon such assignment in accordance with this Section 10, all references in the Plan and Option Grant Agreement except for Sections 6 and 7
of the Option Grant Agreement (and any other provision of Services with the Company or its affiliates (or the termination thereof)) shall be deemed to be replaced by a reference to the Transferee of the Option. 
  
 11. Indemnification. The Participant agrees, to the fullest extent permitted by
law, to indemnify and hold harmless the Company and any director, officer, or employee thereof against any and all losses, liabilities, claims, damages, and expenses of any nature whatsoever (including attorneys’ fees and disbursements,
judgments, fines and amounts paid in settlement) (collectively, “Losses”) arising out of or based upon any breach or failure by the Participant to comply with his obligations made herein. This Section 11 shall survive any
termination or execution of this Option Grant Agreement. 
  
 12.
Representations. 
  
 12.1 Participant
Representations. In addition to any representations made by the Participant in the LLC Agreement, the Participant hereby represents and warrants to the Company that: (a) the Participant is an “accredited investor” as defined
in Rule 501(a) under the Securities Act; provided that the Company may, in its discretion and subject to compliance with all applicable securities laws, waive the foregoing representation with respect to a limited number of Participants;
(b) the Participant, alone or together with his representatives, possesses such expertise, knowledge, and sophistication in financial and business matters generally, and in the type of transactions in which the Company proposes to engage in
particular; (c) the Participant is aware that the LLC Agreement provides significant restrictions on the ability of a Participant to sell, transfer, assign, mortgage, hypothecate, or otherwise encumber the Membership Units; (d) the
Participant has duly executed and delivered this Option Grant Agreement; and (e) the Participant’s authorization, execution, delivery, and performance of this Option Grant Agreement do not conflict with any other agreement or arrangement
to which the Participant is a party or by which it is bound. 
  
 12.2 Truth of Representations and Warranties. The Participant represents and warrants that all of his representations set forth in Section 12.1 of this Option Grant Agreement are true and correct as of the date hereof and
will be true and correct on any Exercise Date. 
  
 13. Integration.
This Option Grant Agreement, and the other documents referred to herein or delivered pursuant hereto (including, without limitation, the LLC Agreement) which form a part hereof contain the entire understanding of the parties with respect to its
subject matter and there are no restrictions, agreements, promises, representations, warranties, covenants or undertakings with respect to the subject matter hereof other than those expressly set forth in such documents. This Option Grant Agreement,
the Plan and the LLC Agreement supersede all prior agreements and understandings between the parties with respect to its subject matter. 
  

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 14. Counterparts. This Option Grant Agreement may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which shall constitute one and the same instrument. 
  
 15. Governing Law. This Option Grant Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware without regard to the provisions thereof governing
conflict of laws. 
  
 16. Participant Acknowledgment. The
Participant hereby acknowledges receipt of a copy of the Plan and the LLC Agreement. The Participant hereby acknowledges that all decisions, determinations and interpretations of the Committee in respect of the Plan, this Option Grant Agreement and
the Option shall be final and conclusive. 
  
 [Remainder of page
intentionally left blank.] 
  

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 IN WITNESS WHEREOF, the Company has caused this Option Grant Agreement to be duly executed by its duly
authorized officer and said Participant has hereunto signed this Option Grant Agreement on his own behalf, thereby representing that he has carefully read and understands this Option Grant Agreement, the Plan, and the LLC Agreement as of the day and
year first written above. 
  

	
	 TJ CHEMICAL HOLDINGS LLC

	
	 /s/ David Spuria

	 By: David Spuria

	 Title: Vice President

	
	 KEVIN FOGARTY

	
	 /s/ Kevin Fogarty

  

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