Document:

Trust Agreement for Director/Exective Officer Deferred Compensation Plan

 Exhibit 10.13(b) 
 September 19, 1996 
 Trust Agreement 
 Made this 19th day of September, 1996, 
  

			
	Between	  	Orrstown Financial Services, Inc., and its wholly owned subsidiary, Orrstown Bank, a Pennsylvania banking corporation, with principal offices at 75 East King Street,
Shippensburg, Pennsylvania, hereinafter referred to as “Bank,”
		
	And	  	Orrstown Bank, a Pennsylvania banking corporation with principal offices at 75 East King Street, Shippensburg, Pennsylvania, hereinafter referred to as
“Trustee,”

 Whereas, the Bank heretofore established the Orrstown Financial Services,
Inc., Director/Officer Deferred Compensation Plan, hereinafter called “the Plan,” for the purpose of providing a retirement benefit to certain eligible directors of the board of directors, hereinafter called “the
Board,” of the Bank, and 
 Whereas, the Bank wishes to establish a trust fund to aid it in accumulating the
amounts necessary to satisfy its contractual liability to pay such benefits; and 
 Whereas, the Bank may make
contributions to this trust from time to time which contributions, if made, will be applied in payment of the Bank’s obligations to pay such benefits; and 
 Whereas, the Plan provides for the Bank to pay all benefits thereunder from its general assets, and the establishment of this trust shall not reduce or otherwise affect the Bank’s continuing
liability to pay benefits from such assets except that the Bank’s liability shall be offset by actual benefit payments made by this trust; 
 Whereas, the trust established by this trust agreement is intended to be classified for income tax purposes as a “grantor trust” with the result that the income of the trust will be
treated as income of the Bank pursuant to subpart E of the subchapter J of Chapter 1, of Subtitle A of the Internal Revenue Code of 1986, as amended, hereinafter called “the Code,” 
 Now, therefore, witnesseth that the parties hereto, intending to be legally bound hereby, agree as follows: 
 1. 
 Establishment
and Title of the Trust 
 The Bank hereby establishes with the Trustee a trust, hereinafter called “the Trust,” to accept
such sums of money and other property including without limitation one or more insurance or annuity contracts, acceptable to the Trustee as from time to time may be paid or delivered to the Trustee. All such money and other property, all investments
and reinvestments made therewith or proceeds thereof and all earnings and profits thereon that are not paid to the Bank as provided in Paragraph 7 of this trust agreement, less all payments and charges as authorized herein, are hereinafter referred
to as the “Trust Fund.” The Trust Fund shall be held by TRUSTEE IN TRUST and shall be dealt with in accordance with the provisions of this trust agreement. The Trust Fund shall be held for the exclusive purpose of providing payments
to the participants of the Plan and their beneficiaries and defraying reasonable expenses of administration in accordance with the provisions of this trust agreement until all such payments have been made, provided, however, that the Trust Fund
shall at all times be subject to the claims of the creditors of the Bank as set forth in Paragraph 8 of this trust agreement. 
 2. 
 Acceptance by Trustee 
 The Trustee accepts the Trust established under this trust agreement on the terms and subject to the provisions set forth herein, and it agrees to discharge and perform fully and faithfully all of the
duties and obligations imposed upon it under this trust agreement. 

 3. 
 Limitation on Use of Funds 
 No part of the corpus of the Trust Fund shall be recoverable
by the Bank or used for any purpose other than for the exclusive purpose of providing payments to participants of the Plan and their beneficiaries and defraying reasonable expenses of administration in accordance with the provisions of this trust
agreement until all such payments required by this trust agreement have been made, provided however, that (i) nothing in this paragraph 3 shall be deemed to limit or otherwise prevent the payment from the Trust Fund of expenses and other
charges as provided in paragraphs 10.A and 10.B of this trust agreement or the application of the Trust Fund as provided in Paragraph 6.D of this trust agreement if the Trust is finally determined not to constitute a grantor trust and (ii) the
Trust Fund shall at all times be subject to the claims of creditors of the Bank as set forth in Paragraph 8 of this trust agreement. 
 4. 
 Duties and Powers of the Trustee with Respect to Investments 
 Trustee shall invest and reinvest the principal and income of the Trust Fund and keep the Trust Fund invested, without distinction between principal and
income, in accordance with the directions of the Bank or such investment guidelines as the Bank may provide to the Trustee from time to time. 
 5. 
 Additional Powers and Duties of Trustee 
 Subject to the provisions of Paragraph 4, the Trustee shall have the following additional powers and authority with respect to all property constituting a
part of the Trust Fund: 
  

	A.	To sell, exchange or transfer any such property at public or private sale for cash or on credit and grant options for the purchase or exchange thereof, including call
options for property held in the Trust Fund and put options for the purchase of property. 

  

	B.	To participate in any plan of reorganization, consolidation, merger, combination, liquidation or other similar plan relating to any such property, and to consent to or
oppose any such plan or any action thereunder, or any contract, lease, mortgage, purchase, sale, or other action by any corporation or other entity. 

  

	C.	To deposit any such property with any protective, reorganization or similar committee; to delegate discretionary power to any such committee; and to pay part of the
expenses and compensation of any such committee and any assessments levied with respect to any property so deposited. 

  

	D.	To exercise any conversion privilege or subscription right available in connection with any such property; to oppose or to consent to the reorganization, consolidation,
merger or readjustment of the finances of any corporation, company or association, or the sale, mortgage, pledge or lease of the property of any corporation, company or association any of the securities of which may at any time be held in the Trust
Fund and to do any act with reference thereto, including the exercise of options, the making of agreements or subscriptions and the payment of expenses, assessments or subscriptions, which may be deemed necessary or advisable in connection
therewith, and to hold and retain any securities or other property which it may so acquire. 

  

	E.	To commence or defend suits or legal proceedings and to represent the Trust in all suits or legal proceedings, to settle, compromise or submit to arbitration, any
claims, debts, or damages, due or owing to or from the Trust. 

  

	F.	To exercise, personally or by general or limited power of attorney, any right, including the right to vote, appurtenant to any securities or other such property.

  

	G.	To borrow money from any lender in such amounts and upon such terms and conditions as shall be deemed advisable or proper to carry out the purposes of the Trust and to
pledge any securities or other property for the repayment of any such loan. 

  

	H.	To engage any legal counsel, including counsel to the Bank, any enrolled actuary, or any other suitable agents, to consult with such counsel, enrolled actuary, or
agents with respect to the construction of this trust agreement, the duties of the Trustee hereunder, the transactions contemplated by this trust agreement or any act which the Trustee proposes to take or omit, rely upon the advice of such counsel,
enroll actuary agents, and to pay its reasonable fees, expenses and compensation. 

	I.	To register any securities held by it in its own name or in the name of any custodian or such property or of its nominee, including the nominee of any system for the
central handling of securities, with or without the additional of words indicating that such securities are held in a fiduciary capacity, to deposit or arrange for the deposit of any such securities with such a system and to hold any securities in
bearer form. 

  

	J.	To make, execute and deliver as Trustee any and all deeds, leases, notes, bonds , guarantees, mortgages, conveyances, contracts, waivers, releases or other instruments
in writing necessary or proper for the accomplishment of any of the foregoing powers. 

  

	K.	To transfer assets of the Trust Funds to a successor as provided in Paragraph 12.D. 

  

	L.	To exercise, generally, any of the powers which an individual owner might exercise in connection with property either real or personal or mixed held by the Trust Fund,
and to do all other acts that the Trustee may deem necessary or proper to carry out any of the powers set forth in this Paragraph 5 or otherwise in the best interests of the Trust Fund. 

 6. 
 Payments by
the Trustee 
  

	A.	The establishment of the Trust and the payment or delivery to the Trustee of money or other property acceptable to the Trustee shall not vest in Plan participants or
their beneficiary any right, title or interest in and to any assets of the Trust, except as otherwise set forth in this Paragraph. 

  

	B.	Trustee shall make payment of Plan benefits to participants and beneficiaries of the Plan from the assets held in their respective accounts, as defined in Paragraph 7
herein, if and to the extent such assets are available for distribution, in accordance with the terms and conditions set forth in the Plan and subject to the election, if any, of the participant or his beneficiary thereunder. In no event shall the
account of any participant or beneficiary be used for the purpose of providing benefits to any other participant or beneficiary of the Plan. 

  

	C.	If the participant’s account is not sufficient to make one of more payments of benefits due under the Plan to such participant or his beneficiary in accordance
with the terms of the Plan, the Bank shall make the balance of each such payment as it falls due. 

  

	D.	Notwithstanding anything contained in this trust agreement to the contrary, if at any time the Trust finally is determined by the Internal Revenue Service not to be a
“grantor trust” with the result that the income of the Trust Fund is not treated as income of the Bank pursuant to subpart E of subchapter J of the Code, or if a tax is finally determined by the Internal Revenue Services or is determined
by counsel to the Trustee to be payable by any Plan participant or beneficiary in respect of any vested interest in the Trust Fund prior to payment of such interest to such participant or beneficiary, then the Trust shall immediately terminate and
the full market value of the assets in the Trust Fund shall be returned to the Bank. The Bank shall fully reimburse each participant and their beneficiary for any tax liability they may incur pursuant to the operation of this paragraph. For purposes
of this paragraph, a final determination of the Internal Revenue Service shall be a decision rendered by the Internal Revenue Service which is no longer subject to administrative appeal within the Internal Revenue Service. 

 

	E.	 Notwithstanding any provision herein to the contrary, with respect to each participant of the Plan, in the event of a change in control of the Bank
which change has not been approved in advance by a two-thirds vote of the full Board, or in the event of involuntary termination of such participant’s service as a director of the Board in connection with, or within twelve months after, any
change in control of the Bank which change has been approved in advance by a two-thirds vote of the full Board, unless, within seven days following written

	 	 
notification by the participant to the Trustee that payment shall be made pursuant to this paragraph 6E, the Trustee is advised in writing by the general counsel or chief financial officer of the
Bank either that (1) a change in control of the bank has not occurred, (2) a chance in control of the Bank which has been approved in advance by a two-thirds vote of the full Board has occurred but the participant’s service on the
Board has not been involuntarily terminated in connection with, or within twelve months after, such change in control, or (3) the Bank is bankrupt or insolvent within the meaning of paragraph 8.B hereof, the Trustee shall immediately distribute
in one lump sum to each participant (or his beneficiary in the event of the participant’s death) the entire value of such participant’s account. The Trustee shall concurrently with the distribution of the participant’s account, advise
the general counsel and chief financial officer of the Bank of the amount paid to the participant (or his beneficiary) hereunder. Within thirty days following payment of the value of the participant’s account pursuant to his paragraph 6.E, the
Bank shall determine the excess, if any, of the participant’s lump sum benefit payable in accordance with Paragraph 3.1 (c) of the Plan determined as of the date of the change in control of the Bank in the event such change has not been
approved by the Bank’s then board or the date of the participant’s involuntary termination in the event such change in control has been approved in advance by the Bank’s then Board, over the amount of such participants account
distributed hereunder, and the Bank shall immediately thereafter pay such excess to the participant (or his beneficiary in the event of his death) in one lump sum cash payment. In the event the amount of the participant’s account paid to him or
his beneficiary exceeds the participant’s lump sum benefit payable in accordance with Paragraph 3.1 (c) of the Plan, determined as of the date of the change in control of the Bank in the event such change has not been approved by the
Bank’s then board of the date of the participant’s involuntary termination in the event such change in control has been approved in advance by the Bank’s then board, the participant or his beneficiary shall return such excess to the
Bank. The Trustee shall be indemnified and held harmless by the Bank in making a payment pursuant to such notification. The Trustee shall not be required to make an independent inquiry or decision with respect to the amount of any payment which may
be pursuant to this paragraph 6.E or the validity of any notice hereunder. 

 For purposes of this paragraph 6E
the term control shall refer to the ownership, holding or power to vote more than 25% of the Bank’s voting stock, the control of the election of a majority of the Bank’s board, or the exercise of a controlling influence over the management
or policies of the Bank by an person or by persons acting as a group within the meaning of Section 13 (d) of the Securities Exchange Act of 1934. The term “person” means an individual or a corporation, partnership, trust,
association, joint venture, pool, syndicate, sole proprietorship, unincorporated organization or any other form of entity not specifically listed herein. 
  

	F.	Notwithstanding anything in this trust agreement to the contrary, the Bank shall remain primarily liable under the Plan to pay benefits. However the Bank’s
liability under the Plan shall be reduced or offset to the extent and by the value of any benefit payments under the Plan made from the Trust. 

  

	G.	Trustee shall deduct from each payment under this trust agreement any Federal, state or local withholding or other taxes or changes which the Trustee may be required to
deduct under applicable laws. 

 7. 
 Funding of the Trust 
 Amounts held for the benefit of each participant and beneficiary in
the trust shall be maintained in a separate account, hereinafter called “the Account”, which shall be held, administered, and accounted for separately for each participant or beneficiary. Separate account records shall be maintained
so that the amount held in each participant’s and beneficiary’s Account shall be identifiable at all times. Each Account shall consist of and be increased by contributions made by the Bank which are designated by the Bank as the property
of such account and shall be decreased by distributions made therefrom. The bank shall make contributions to such accounts from time to time in accordance with such funding method and policy as will permit the trust to make payment of benefits
provided by the Plan. In addition the Trustee shall allocate and credit the net income of the Trust to the Accounts of participants and beneficiaries on the last day of each calendar year, (the “Allocation Date”), pro rata based on
the respective Account balance as of each participant and beneficiary on such date; provided however that in no event shall the Account of any participant or beneficiary at any time exceed the maximum lump sum benefit payable under the plan to such
participant or beneficiary. If as a result of the foregoing, all or a portion of any net income otherwise

 
allocable to the Account of any participant or beneficiary on the Allocation Date cannot be so allocated, such net income shall be allocated and credited to the Accounts for all other
participants and beneficiaries whose Accounts do not exceed the maximum lump sum benefit payable to them under the Plan pro rata based on the respective Account balances of each such participant and beneficiary on such Allocation date (determined
without regard to the allocation of any net income to such Accounts on such date). To the extent that any net income cannot be allocated to the Accounts of participants and beneficiaries pursuant hereto, such net income shall be paid to the Bank.
For purposes of the foregoing, net income shall mean the net gain or loss of the trust from investments, as reflected by interest payment, dividends, realized and unrealized gains and losses on securities, other investment transactions and expenses
paid from the trust. In determining the net income of the trust as of any date, assets shall be valued on the basis of their then fair market value. 
 8. 
 Trustee Responsibility Regarding Payments to Participants and Beneficiaries
When Bank is Insolvent. 
  

	A.	It is the intent of the parties hereto that the trust assets are and shall remain at all times subject to the claims of the general creditors of the Bank. Accordingly,
the Bank shall not create a security interest in the trust assets in favor of the participants and beneficiaries of the Plan or any creditor. If the Trustee receives the notice provided for in Paragraph 8B hereof, or otherwise receives actual notice
that the Bank is insolvent or bankrupt as defined in Paragraph 8B hereof, the Trustee will make no further distributions from the trust to any of the participants or beneficiaries of the Plan but will deliver the entire amount of the trust assets
only as a court of competent jurisdiction or duly appointed received or other person authorized to act by such a court may direct to make the trust assets available to satisfy the claims of the Bank’s general creditors. The Trustee shall resume
distributions from the trust to the participants and beneficiaries of the Plan under the terms hereof, upon no less than thirty days’ advance notice to the Bank, if it determines that the Bank was not, or is no longer bankrupt or insolvent.
Unless the Trustee has actual knowledge of the Bank’s bankruptcy or insolvency, the Trustee shall have no duty to inquire whether the Bank is bankrupt or insolvent. 

  

	B.	The Bank, through its board or chief financial officer, shall advise the Trustee promptly in writing of the Bank’s bankruptcy or insolvency. The Bank shall be
deemed to be bankrupt or insolvent upon the occurrence of any of the following; 

  

	 	1.	The Bank shall make an assignment for the benefit of creditors, file a petition in bankruptcy, petition or apply to any tribunal for the appointment of a custodian,
receiver, liquidator, sequestrator, or any trustee for it or a substantial part of its assets, or shall commence any case under any bankruptcy, reorganization, arrangement, readjustment of debt, dissolution or liquidation law or statute of any
jurisdiction (Federal or state), whether now or hereafter in effect; or if there shall have been filed any such petition or application, or any such case shall have been commenced against it, in which an order for relief is entered or which remains
undismissed, or the Bank by any act or omission shall indicate its consent to approval of or acquiescence in any such petition, application or case or order for relief or to the appointment of a custodian, receiver or any trustee for it or any
substantial part of any of its property, or shall suffer any such custodianship, receivership, or trusteeship to continue undischarged; or 

  

	 	2.	The Bank shall generally not pay its debts as such debts become due or shall cease to pay its debts in the ordinary course of business; or 

  

	 	3.	A conservator or receiver shall be appointed by the Bank by Federal Home Loan Bank Board. 

  

	C.	If the Trustee discontinues payments of benefits under The Plan from the trust pursuant to Paragraph 8A of this trust agreement and subsequently resumes such payments,
the first payment to a participant or beneficiary following such discontinuance shall include the aggregate amount of all payments which would have been made to the participant or beneficiary in accordance with the Plan during the period of such
discontinuance, less the aggregate amount of payments of benefits under the Plan made to the participant or his beneficiary by the Bank during any such period of discontinuance. 

 9. 
 Third Parties 
 A third party dealing with the Trustee shall not be required to make
inquiry as to the authority of the Trustee to take any action nor be under any obligation to see to the proper application by the Trustee of the proceeds of sale of any property sold by the Trustee or to inquire into the validity or propriety of any
act of the Trustee. 
 10 
 Taxes, Expenses and Compensation 
  

	A.	Bank shall from time to time pay taxes of any and all kinds whatsoever which at any time are lawfully levied or assessed upon or become payable in respect of the Trust
Fund, the income or any property forming a part thereof, or any security transaction pertaining thereto. To the extent that any taxes lawfully levied or assessed upon the Trust Fund are not paid by the Bank, the Trustee shall pay such taxes out of
the Trust Fund. The Trustee shall withhold Federal, state and local taxes from any payments made to a participant or beneficiary in accordance with the provisions of applicable law. The Trustee shall contest the validity of taxes in any manner
deemed appropriate by the Bank or its counsel but at the Bank’s expense, and only if it has received an indemnity bond or other security satisfactory to it to pay any such expenses. In the alternative, the Bank may itself contest the validity
of any such taxes. 

  

	B.	Bank shall pay the Trustee such reasonable compensation for its services as may be agreed upon in writing from time to time by the Bank and the Trustee. The Bank shall
also pay the reasonable expenses incurred by the Trustee in the performance of its duties under this trust agreement, including brokerage commissions and fees of counsel engaged by the Trustee. Such compensation and expenses shall be charged against
and paid from the Trust Fund to the extent that the Bank does not pay such compensation. 

 11. 
 Administration and Records 
  

	A.	Trustee shall keep or cause to be kept accurate and detailed accounts of any investments, receipts, disbursement and other transactions hereunder and all necessary and
appropriate records required to identify correctly and reflect accurately the interest of each participant or beneficiary, and all accounts, books and records relating thereto shall be open to inspection and audit at all reasonable times by any
person designated by the Bank. All such accounts, books and records shall be preserved (in original form, or on microfilm, magnetic tape or any other similar process) for such period as the Trustee may determine, but the Trustee may only destroy
such accounts, books and records after first notifying the Bank in writing of its intention to do so and transferring to the Bank any of such accounts, books and records requested. 

  

	B.	Within thirty says after the close or each calendar year, and within thirty days after the removal or resignation of the Trustee or the termination of the trust,
Trustee shall file with the Bank a written account setting forth all investments, receipts, disbursements and other transactions effected by it during the preceding calendar year, or during the period from the close of the preceding calendar year to
the date of such removal, resignation or termination, including a description of all investments and securities purchased and sold with the cost or net proceeds of such purchases or sales and showing all cash, securities and other property held at
the end of such calendar year or other period. 

  

	C.	The Trustee shall from time to time permit an independent public accountant selected by the Bank, except one to whom the Trustee has reasonable objection, to have
access during ordinary business hours to such records as may be necessary to audit the Trustee’s accounts. 

  

	D.	As of the last day of each calendar year, the fair market value of the assets held in the Trust Fund shall be determined. Within thirty days after the close of each
calendar year, Trustee shall file with the Bank the written report of the determination of such fair market value of the assets held in the Trust Fund. 

  

	E.	Nothing contained in this trust agreement shall be construed as depriving the Trustee, the Bank or any participant or beneficiary of the right to have a judicial
settlement of the Trustee’s accounts, and upon any proceeding for a judicial settlement of the Trustee’s accounts or for instructions the only necessary parties thereto in addition to the Trustee shall be the Bank and the participants or
their beneficiaries. 

	F.	In the event of the removal or resignation of the Trustee, Trustee shall deliver to the successor Trustee all records which shall be required by the successor Trustee
to enable it to carry out the provisions of this trust agreement. 

  

	G.	In addition to any returns required of the Trustee by law, Trustee shall prepare and file such tax reports and other returns as the Bank and the Trustee may from time
to time agree. 

 12. 
 Removal or Resignation of Trustee and Designation of Successor Trustee 
  

	A.	At any time the Bank may remove the Trustee with or without cause, upon at least sixty days notice in writing to the Trustee. A copy of such notice shall be sent to the
Trustee. 

  

	B.	Trustees may resign at any time upon at least sixty days notice in writing to the Bank. 

  

	C.	In the event of such removal or resignation, Trustee shall duly file with the Bank a written account as provided in paragraph 11.B of this trust agreement for the
period since the last previous annual accounting, listing the investments of the trust and any uninvested cash balance thereof, and setting forth all receipts, disbursements, distributions and other transactions respecting the trust not included in
any previous account. 

  

	D.	Within sixty days after any such notice of removal or resignation of the Trustee, Bank shall designate a successor Trustee qualified to act hereunder. Each such
successor Trustee, during each period as it shall act as such, shall have the powers and duties herein conferred upon the Trustee, and the word Trustee wherever used herein, except where the context otherwise requires, shall be deemed to include any
successor Trustee. Upon designations of a successor Trustee and delivery to the resigned or removed Trustee of written acceptance by the successor Trustee of such designation, such resigned or removed Trustee shall promptly assign, transfer, deliver
and pay over to such Trustee, in conformity with the requirements of applicable law, the funds and properties in its control or possession then constituting the Trust Fund. 

 13. 
 Enforcement of Trust Agreement and Legal Proceedings

 The Bank shall have the right to enforce any provision of this trust agreement, and any participant or beneficiary of the plan shall have
the right to enforce any provision of this trust agreement that affects the right, title and interest of such participant or beneficiary, if any, in the trust. In any action or proceedings affecting the trust the only necessary parties shall be the
Bank, the Trustee and participants and beneficiaries of the Plan, and except as otherwise required by applicable law, no other person shall be entitled to any notice or service of process. Any judgment entered in such an action or proceeding shall
to the maximum extent permitted by applicable law be binding and conclusive on all persons having or claiming to have any interest in the trust. 
 14. 
 Termination and Suspension 
 The trust shall terminate when all payments which have or may become payable pursuant to the terms of the trust have been made and any remaining assets
shall then be paid by Trustee to the Bank. 
 15. 
 Amendments 
  

	A.	The Bank may from time to time amend or modify, in whole or in part, any or all of the provisions of this trust agreement, except paragraphs 1.A, 3.A, 6, 11, 12.D, 13,
14, 15 and 17) with the written consent of the Trustee, but without the consent of any participant or beneficiary of the Plan, provided that any such amendment shall not adversely affect the rights of any participant or beneficiary hereunder, or
cause the trust to cease to constitute a grantor trust as described in Paragraph 6.D of this trust agreement. 

  

	B.	The Bank and Trustee shall execute such supplest to, or amendments of this agreement as shall be necessary to give effect to any such amendment or modification.

 16. 
 Nonalienation 
 Except insofar as applicable law may otherwise require and subject to
Paragraphs 1A, 3.A and 8 of this trust agreement, (i) no amount payable to or in respect of any participant or beneficiary at any time under the trust shall be subject in any manner to alienation by anticipation, sale, transfer, assignment,
bankruptcy, pledge, attachment, charge or encumbrance of any kind, and any attempt to so alienate, sell, transfer, assign, pledge, attach, change or otherwise encumber any such amount, whether presently or thereafter payable, shall be void; and
(ii) the Trust Fund shall in no manner be liable for or subject to the debts or liabilities of a participant or beneficiary. 
 17. 
 Communications 
  

	A.	Communications to the Bank shall be addressed to Orrstown Bank at 75 West King Street, Shippensburg, Pennsylvania, 17257, Attention: President and Chief Executive
Officer, provided, however, that upon the Bank’s written request, such communications shall be sent to such other address as the Bank may specify. 

  

	B.	Communications to the Trustee shall be addressed to Philip Fague, Vice President and Trust Officer, Orrstown Bank, 75 West King Street, Shippensburg, Pennsylvania,
17257; provided, however, that upon the Trustee’s written request, such communications shall be sent to such other address as the Trustee may specify. 

  

	C.	No communication shall be binding on the Trustee until it is received by the Trustee, no communication shall be binding on the Bank until it is received by the Bank,
and no communication shall be binding on any participant or beneficiary until it is received by the participant or beneficiary. 

  

	D.	Any action of the Bank pursuant to this trust agreement including all orders, requests, directions, instructions, approvals and objections of the Bank to the Trustee
shall be in writing, signed on behalf of the Bank by any duly authorized officer of the Bank. Any action by any participant or beneficiary shall be in writing. Trustee may rely on, and will be fully protected with respect to any such action taken or
omitted in reliance on, any information, order, request, direction, instruction, approval, objection, and list deliver to the Trustee by the Bank, or to the extent applicable under this trust agreement by a participant or beneficiary.

 18. 
 Miscellaneous Provisions 
  

	A.	This trust agreement shall be binding upon and inure to the benefit of the Bank and the Trustee and their respective successors and assigns and the personal
representatives of the individuals. 

  

	B.	Trustee assumes no obligation or responsibility with respect to any action required by this trust agreement on the part of the Bank. 

  

	C.	Each participant or beneficiary shall file with the Trustee such pertinent information concerning himself, and any other person as the Trustee shall specify, and the
participant or beneficiary shall have no rights nor be entitled to any benefits under the trust unless such information is filed by or with respect to him. 

  

	D.	Any corporation into which the Trustee may be merged or with which it may be consolidated, or any corporation resulting from any merger, reorganization or consolidation
to which the Trustee may be a party, or any corporation to which all or substantially all the trust business of the Trustee may be transferred shall be the successor of the Trustee hereunder without the execution of filing of any instrument or the
performance of any act. 

  

	E.	Titles to the paragraphs of this agreement are included for convenience only and shall not control the meaning or interpretation of any provision of this agreement.

  

	F.	This trust agreement and the trust established hereunder shall be governed by and construed, enforced and administered in accordance with the laws of the State of
Pennsylvania and Trustee shall be liable to account only in the courts of the State of Pennsylvania. 

  

	G.	This trust agreement may be executed in any number of counterparts, each of which shall be deemed to be the original although the others shall not be produced.

 IN WITNESS WHEREOF, the parties hereto have hereunto caused these presents to be executed
the day, month and year aforesaid. 
 Attest: 
 ORRSTOWN FINANCIAL SERVICES, INC., and its wholly owned subsidiary, ORRSTOWN BANK 
  

											
	 /s/ Patricia A. Corwell
	    	 	 	 	 	By:	 	 /s/ Kenneth R. Shoemaker
	 	 
	Secretary	    		 		 		 	President	 	
		    	BANK	 		 		 		 	
						
	 /s/ Patricia A. Corwell
	    		 		 	By:	 	 /s/ Philip Fague, Trustee
	 	
	Secretary	    		 		 		 	President	 	
		    	TRUSTEEAmended and Restated Employment Agreement - Larry R. Frazier

 Exhibit 10.48 
 Execution Version 
 AMENDED AND RESTATED 

 EMPLOYMENT AGREEMENT 
 LARRY FRAZIER 
 AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the
“Agreement”) dated as of December 8th, 2009 (the “Restatement Date”), by and between Polymer Holdings LLC (“Parent”), a Delaware limited liability company, KRATON Polymers LLC, (“KRATON” or the
“Company”), a Delaware limited liability company, which is a wholly owned subsidiary of Parent, and Larry Frazier (“Executive”). 
 In consideration of the premises and mutual covenants herein and for other good and valuable consideration, the parties agree as follows: 
 1. Term of Employment. Subject to the provisions of Section 7 of this Agreement, Executive shall continue to be employed by the
Company for a period the term of which commenced on November 10, 2008, (the “Effective Date”) and ending on the day before the third anniversary of the Effective Date (the “Employment Term”) on the terms and subject to the
conditions set forth in this Agreement; provided, however, that commencing with the third anniversary of the Effective Date and on each anniversary thereafter (each an “Extension Date”), the Employment Term shall be automatically extended
for an additional one-year period, unless KRATON or Executive provides the other party hereto 30 days prior written notice before the next Extension Date that the Employment Term shall not be so extended. 
 2. Position. 
 a. During the Employment Term, Executive shall serve as Chief Information Officer of KRATON. In such position, Executive shall have the duties and authority commensurate with the position as shall be determined from time to time by the
Company. During the Employment Term, Executive shall be subject to, and shall act in accordance with, all reasonable instructions and directions and all applicable policies and rules of the Company. 
 b. During the Employment Term, Executive will devote Executive’s full business time and best efforts to the performance of
Executive’s duties hereunder and will not engage in any other business, profession or occupation for compensation or otherwise which would conflict or interfere with the rendition of such services either directly or indirectly, without the
prior written consent of the Company; provided that nothing herein shall preclude Executive, subject to the prior approval of the Company, from accepting appointment to or continue to serve on any board of directors or trustees of any business
corporation or any charitable organization; provided in each case, and in the aggregate, that such activities do not conflict or interfere with the performance of Executive’s duties hereunder or conflict with Section 8. 
 3. Base Salary. During the Employment Term and as of the Restatement Date, the Company shall pay Executive a base salary (the
“Base Salary”) at the annual rate of $250,000, payable in regular installments in accordance with the Company’s usual payment practices. Executive shall be entitled to annual reviews. Increases in Executive’s Base Salary, if any,
may be determined in the sole discretion of the board of directors of KRATON (the “Board”). 
  

 1 

 4. Incentive Compensation. With respect to the first partial
fiscal year and each full fiscal year during the Employment Term, Executive shall be eligible to earn an annual bonus award (an “Annual Bonus”) equal to (i) up to fifty percent (50%) of Executive’s Base Salary (the
“Target”) based upon the achievement of performance objectives established by the Board, and (ii) up to 200% of the Target if such performance objectives are exceeded due to extraordinary performance, as determined by the Board. The
“fiscal year” during the Employment Term shall be equal to the calendar year unless otherwise established by the Board. The performance objectives for payment of the Annual Bonus shall be established in writing by the Board, on or before
the end of the third month of the applicable fiscal year. In no event will an Annual Bonus be paid later than the 15th day of the third month following the end of the fiscal year for which the Annual Bonus was earned. 
 5. Employee Benefits. 
 a. General. During the Employment Term, Executive shall be entitled to participate in the Company’s employee benefit plans, as amended from time to time, (other than bonus, incentive or
severance plans) as in effect from time to time (collectively “Employee Benefits”), on the same basis as those benefits are generally made available to other senior executives of the Company. 
 b. Vacation. Executive shall be entitled to four (4) weeks of paid vacation each year in accordance with applicable Company
policies. 
 c. Relocation. In connection with this employment, Executive and his immediate family are expected to
relocate to Houston, Texas and will be eligible for reimbursement of reasonable relocation expenses in accordance with the KRATON Experienced New Employee Relocation Policy (the “Relocation Reimbursement”); provided, that (i) such
relocation expenses are incurred during the Employment Term and on or before the first anniversary of the Effective Date; and (ii) such Relocation Reimbursement shall not exceed $30,000; and provided further, that if Executive terminates his
employment without Good Reason on or before the first anniversary of the date hereof, Executive agrees to repay the full amount of any such Relocation Reimbursement in immediately available funds within 5 business days following such termination of
employment. 
 d. Other. During the Employment Term, Executive shall be eligible to participate in the equity incentive
plans of the Company, Parent and TJ Chemical Holdings LLC. 
 6. Business Expenses. During the Employment Term,
reasonable business expenses incurred by Executive in the performance of Executive’s duties hereunder shall be reimbursed by the Company in accordance with Company policies; provided that such reimbursement shall occur no later than the last
day of the calendar year following the calendar year in which Executive incurred the reimburseable expense. 
  

 2 

 7. Termination. The Employment Term and Executive’s employment hereunder may be
terminated by either party at any time and for any reason; provided that Executive will be required to give KRATON at least 60 days advance written notice of any resignation of Executive’s employment, subject to and in accordance with the
provisions of this Section 7 and subsections (a) through (f). Notwithstanding any other provision of this Agreement, subject to Sections 8, 9, 10, 11(j) and 11(m), the provisions of this Section 7 shall exclusively govern
Executive’s and the Company’s rights and obligations related to termination of this Agreement and the rights and remedies upon termination of employment with the Company and its affiliates. 
 a. By KRATON For Cause or By Executive Resignation without Good Reason. 
 (i) The Employment Term and Executive’s employment hereunder may be terminated by KRATON for Cause (as defined below)
and shall terminate automatically upon Executive’s resignation without Good Reason (as defined below), provided that Executive will be required to give KRATON at least 60 days advance written notice of any such resignation, and provided further
that KRATON may elect to waive such notice period and to pay Executive in lieu of such notice. 
 (ii) For
purposes of this Agreement “Cause” shall mean (A) Executive’s continued failure substantially to perform Executive’s duties hereunder (other than as a result of total or partial incapacity due to physical or mental illness)
for a period of 30 days following written notice by KRATON to Executive of such failure; provided that it is understood that this clause (A) shall not permit KRATON to terminate Executive’s employment for Cause because of dissatisfaction
with the quality of services provided by or disagreement with the actions taken by Executive in the good faith performance of Executive’s duties to KRATON, (B) failure of Executive to maintain his principal residence in the same
metropolitan area as KRATON’s principal headquarters, which is currently located in Houston, Texas, or elsewhere as mutually agreed to by Executive and Company, (C) theft or embezzlement of Company property, (D) Executive’s
conviction of or plea of guilty or no contest to (x) a felony or (y) a crime involving moral turpitude, (E) Executive’s willful malfeasance or willful misconduct in connection with Executive’s duties hereunder or any act or
omission which is materially injurious to the financial condition or business reputation of the Company or any of its subsidiaries or affiliates, or (F) Executive’s breach of the provisions of Sections 8 or 9 of this Agreement. 

(iii) If Executive’s employment is terminated by KRATON for Cause, or if Executive resigns without Good Reason,
Executive shall be entitled to receive, within 30 days following such termination with respect to (A) through (C) below and at such time, if any, as the Employee Benefits under (D) below become due in accordance with the applicable
terms thereof: 
 (A) the Base Salary through the date of termination, to the extent not already paid;

  

 3 

 (B) any Annual Bonus earned but unpaid as of the date of termination for
any previously completed fiscal year; 
 (C) reimbursement for any unreimbursed business expenses properly
incurred by Executive in accordance with KRATON policy prior to the date of Executive’s termination; and 
 (D) such vested Employee Benefits, if any, as to which Executive may be entitled under the employee benefit plans of the Company as described in Section 5(a) (including, without limitation, any retirement benefits, medical, life
insurance or disability benefits, accrued but unpaid vacation or other benefits Executive is entitled to pursuant to the terms of the applicable plans then in effect (the amounts described in clauses (A) through (D) hereof being referred
to as the “Accrued Obligations”)). 
 Following such termination of Executive’s employment by KRATON for Cause or
resignation by Executive without Good Reason, except as set forth in this Section 7(a)(iii), Executive shall have no further rights to any compensation or any other benefits in the nature of severance or termination pay or in connection with
the termination of his employment. 
 b. Disability or Death. 
 (i) The Employment Term and Executive’s employment hereunder shall terminate upon Executive’s death and may be
terminated by KRATON if Executive becomes physically or mentally incapacitated and is therefore unable for a period of six (6) consecutive months or for an aggregate of nine (9) months in any twenty-four (24) consecutive month period
to perform Executive’s duties (such incapacity is hereinafter referred to as “Disability”); provided that a termination of employment on the basis of a Disability must occur within 90 days of the date when Executive is subject to
termination due to Disability. Any question as to the existence of the Disability of Executive as to which Executive and KRATON cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to Executive and
KRATON. If Executive and KRATON cannot agree as to a qualified independent physician, each shall appoint such a physician and those two physicians shall select a third who shall make such determination in writing. The determination of Disability
made in writing to the Company and Executive shall be final and conclusive for all purposes of the Agreement. 
 (ii) Upon termination of Executive’s employment hereunder for either Disability or death, Executive or Executive’s estate (as the case may be) shall be entitled to receive: 
 (A) at the times set forth in Section 7(a)(iii) hereof, the Accrued Obligations; 
  

 4 

 (B) a pro rata portion of any Annual Bonus that Executive would have been
entitled to receive pursuant to Section 4(a) hereof in such year based upon the percentage of the fiscal year that shall have elapsed through the date of Executive’s termination of employment, payable when such Annual Bonus would have
otherwise been payable had Executive’s employment not terminated. 
 Following Executive’s termination of employment
due to death or Disability, except as set forth in this Section 7(b)(ii), Executive shall have no further rights to any compensation or any other benefits in the nature of severance or termination pay or in connection with the termination of
his employment. 
 c. By KRATON Without Cause or Resignation by Executive for Good Reason. 
 (i) The Employment Term and Executive’s employment hereunder may be terminated by KRATON without Cause or by
Executive’s resignation for Good Reason. 
 (ii) If Executive’s employment is terminated by KRATON
without Cause (other than by reason of death or Disability) or by Executive’s resignation for Good Reason, other than in the event such termination occurs within one (1) year following a Change in Control, which shall be governed
exclusively by Section 7(d) hereof, Executive shall be entitled to receive: 
 (A) At the times set forth
in Section 7(a)(iii) hereof, the Accrued Obligations; 
 (B) continuation of Executive’s annual Base
Salary for a period of twelve (12) months following such termination (the “Severance Continuation Period”) which shall be paid at the same time and in the same manner as if Executive had remained employed by KRATON during such period;
and 
 (C) medical benefits for Executive and his eligible dependents comparable to those medical benefits
Executive participated in on the date of termination during the Severance Continuation Period, provided in any case such medical benefits shall cease if Executive becomes entitled to medical benefits from a new employer. KRATON may provide such
medical benefits by paying Executive’s COBRA continuation coverage through such Severance Continuation Period. 
 (iii) For purposes of this Agreement, “Good Reason” shall mean (A) the failure of the Company to pay or cause to be paid Executive’s Base 
  

 5 

 Salary or Annual Bonus (if any) when due, (B) a material reduction in Executive’s
Base Salary, the Target Annual Bonus opportunity described in Section 4(a) herein, or Employee Benefits other than an across-the-board reduction in salary or bonus opportunity for all of the members of the Company’s management team and
other than a decrease in Employee Benefits that applies to all employees otherwise eligible to participate in the affected plan, (C) a relocation of Executive’s primary work location more than 50 miles from the work location on the date
hereof, without written consent, or (D) a material reduction in Executive’s duties and responsibilities as described in Section 2(a) of this Agreement; provided that none of these events shall constitute Good Reason unless the Company
fails to cure such event within 30 days after receipt from Executive of written notice specifying in reasonable detail the event which constitutes Good Reason; provided, further, that “Good Reason” shall cease to exist for an event on the
60th day following the later of its occurrence or Executive’s knowledge thereof, unless Executive has given KRATON written notice thereof prior to such date. 
 The payments and benefits described in subparagraphs 7(c)(ii)(B)—(C) above shall be subject to and conditioned upon Executive’s execution and delivery of a valid and effective general release
and waiver, in a form satisfactory to the Company, waiving all claims Executive may have against the Company, its affiliates and their respective executives, directors, partners, members, shareholders, successors and assigns. Such general release
and waiver must be executed by Executive within 30 days after the date of termination of Executive’s employment and any payment that would otherwise have been made or any benefit that would have otherwise been provided shall not be made or
provided until after the 40th day following the date of such termination of employment, subject to the execution of the general release and waiver but without regard to the date upon which the general release and waiver was executed, except to the
extent permitted by Section 409A of the Internal Revenue Code of 1986, as amended. 
 Following Executive’s
termination of employment by the Company without Cause (other than by reason of Executive’s death or Disability) or by Executive’s resignation for Good Reason, except as set forth in Section 7(c)(ii), Executive shall have no further
rights to any compensation or any other benefits in the nature of severance or termination pay or in connection with the termination of his employment. 
 d. By KRATON Without Cause or Resignation by Executive for Good Reason Following a Change In Control. 
 (i) The Employment Term and Executive’s employment hereunder may be terminated by KRATON without Cause or by Executive’s resignation for Good Reason. 
  

 6 

 (ii) If Executive’s employment is terminated by KRATON without Cause
(other than by reason of death or Disability) or by Executive’s resignation for Good Reason within one (1) year following a Change in Control, Executive shall be entitled to receive: 
 (A) at the times set forth in Section 7(a)(iii) hereof, the Accrued Obligations; 
 (B) continuation of Executive’s annual Base Salary for a period of eighteen (18) months following such
termination (the “Change in Control Severance Period”) which shall be paid at the same time and in the same manner as if Executive had remained employed by KRATON during such period; 
 (C) 1.5 times Annual Bonus calculated at the Target level payable as a lump sum; and a pro rata portion of any Annual Bonus
that Executive would have been entitled to receive pursuant to Section 4(a) hereof in such year calculated by taking the product of (a) his Target Annual Bonus multiplied by (b) a fraction, the numerator of which is the number of days
during which Executive was employed by the Company in the year of his termination and the denominator of which is 365, as further adjusted to reflect the then-current bonus accrual as it exists on the Company’s books as of the date of
termination. All sums due under this sub-paragraph shall be payable within thirty (30) days of Executive’s termination of employment; and 
 (D) all health benefits including medical, dental and vision for Executive and his eligible dependents comparable to those health benefits Executive participated in on the date of termination during the
Change in Control Severance Period, provided in any case such health benefits shall cease if Executive becomes entitled to health benefits from a new employer. KRATON may provide such health benefits by paying Executive’s COBRA continuation
coverage through such Change in Control Severance Period. 
 (iii) For purposes of this Agreement, “Change
in Control” shall mean the occurrence of any of the following events: 
 (A) any sale, lease, exchange or
other transfer (in one transaction or a series of related transactions) of all of the assets of the Company, Parent, or TJ Chemical Holdings (together, the “Entities”) to any Person or group of related persons (a “Group”) for
purposes of Section 13(d) of the Securities Exchange Act of 1934 (the “Exchange Act”), together with any affiliates thereof other than to TPG III Polymer Holdings LLC, TPG IV Polymer Holdings LLC or J.P. Morgan Partners LLC or any of
their affiliates (hereinafter the “Sponsors”); 
  

 7 

 (B) the complete liquidation or dissolution of any of the Entities;

 (C) (1) any Person or Group (other than the Sponsors) shall become the beneficial owner (within the meaning
of Section 13(d) of the Exchange Act), directly or indirectly, of equity interests of an Entity representing more than 40% of the aggregate outstanding voting equity interests of such Entity and such Person or Group actually has the power to
vote such equity interests in any such election and (2) the Sponsors beneficially own (within the meaning of Section 13(d) of the Exchange Act), directly or indirectly, in the aggregate a lesser percentage of the voting equity interests of
an Entity than such other Person or Group; 
 (D) the replacement of a majority of the board of directors of an
Entity over a two-year period from the directors who constituted such board at the beginning of such period, and such replacement shall not have been approved by a vote of at least a majority of the board then still in office who either were members
of such board at the beginning of such period or whose election as a member of such board was previously so approved or who were nominated by, or designees of, the Sponsors; or 
 (E) a merger or consolidation of an Entity with another entity in which holders of the equity interests of the Entity
immediately prior to the consummation of the transaction hold, directly or indirectly, immediately following the consummation of the transaction, less than 50% of the common equity interest in the surviving corporation in such transaction and the
Sponsors do not hold a sufficient amount of voting equity interests to elect a majority of the surviving entity’s board of directors. 
 (F) The payments and benefits described in subparagraphs 7(d)(ii)(B)—(D) above shall be subject to and conditioned upon Executive’s execution and delivery of a valid and effective general
release and waiver, in a form satisfactory to the Company, waiving all claims Executive may have against the Company, its affiliates and their respective executives, directors, partners, members, shareholders, successors and assigns. Such general
release and waiver must be executed by Executive within 30 days after the date of termination of Executive’s employment and any payment that would otherwise have been made or any benefit that would have otherwise been provided shall not be made
or provided until after the 40th day following the date of such termination of employment, subject to the execution of the general release and waiver but without regard to the date upon which the general release and waiver was executed, except to
the extent permitted by Section 409A of the Internal Revenue Code of 1986, as amended. Following Executive’s termination of employment by the Company as a result of a Change In Control, except as set forth in Section 7(d)(ii),
Executive shall have no further rights to 
  

 8 

 any compensation or any other benefits in the nature of severance or termination pay or in
connection with the termination of his employment. 
 e. Expiration of Employment Term. 
 (i) Election Not to Extend the Employment Term. In the event either party elects not to extend the Employment Term
pursuant to Section 1, unless Executive’s employment is earlier terminated pursuant to paragraphs (a), (b), (c) or (d) of this Section 7, Executive’s termination of employment hereunder (whether or not Executive
continues as an employee of the Company thereafter) shall be deemed to occur on the close of business on the day immediately preceding the next scheduled Extension Date. If Executive’s employment is terminated due to Executive’s election
not to extend the Employment Term, Executive shall be entitled to receive the Accrued Obligations. If Executive’s employment is terminated by KRATON other than for Cause following KRATON’s election not to extend the Employment Term,
Executive shall be entitled to receive (1) at the times set forth in Section 7(a)(iii) hereof, the Accrued Obligations, (2) continuation of Executive’s annual Base Salary during the Severance Continuation Period at the same time
and in the same manner as if Executive had remained employed by KRATON during such period, and (3) medical benefits for Executive and his eligible dependents comparable to those medical benefits Executive participated in on the date of
termination during the Severance Continuation Period, provided in any case such medical benefits shall cease if Executive becomes entitled to medical benefits from a new employer. KRATON may provide such medical benefits by paying Executive’s
COBRA continuation coverage through such Severance Continuation Period. 
 The payments and benefits described in this
subparagraph (i) shall be subject to and conditioned upon Executive’s execution and delivery of a valid and effective general release and waiver, in a form satisfactory to the Company, waiving all claims Executive may have against the
Company, its affiliates and their respective executives, directors, partners, members, shareholders, successors and assigns. Such general release and waiver must be executed by Executive within 30 days after the date of termination of
Executive’s employment and any payment that would otherwise have been made or any benefit that would have otherwise been provided shall not be made or provided until after the 40th day following the date of such termination of employment,
subject to the execution of the general release and waiver but without regard to the date upon which the general release and waiver was executed, except to the extent permitted by Section 409A of the Internal Revenue Code of 1986, as amended
(“Section 409A”). 
 Following such termination of Executive’s employment hereunder as a result either
party’s election not to extend the Employment Term, except as set forth in this Section 7(e)(i), Executive shall have no further rights to any compensation or any other benefits in the nature of severance or termination pay or in
connection with the termination of his employment. 
  

 9 

 (ii) Continued Employment Beyond the Expiration of the Employment
Term. Unless the parties otherwise agree in writing, continuation of Executive’s employment with the Company beyond the expiration of the Employment Term shall be deemed an employment at-will and shall not be deemed to extend any of the
provisions of this Agreement and Executive’s employment may thereafter be terminated at will by either Executive or the Company; provided that the provisions of Sections 8, 9 and 10 of this Agreement (and the Company’s potential severance
obligation under Section 7(e)(i) if applicable) shall survive any termination of this Agreement or Executive’s termination of employment hereunder. 
 f. Notice of Termination. Any purported termination of employment by the Company or by Executive (other than due to Executive’s death) shall be communicated by written Notice of Termination to
the other party hereto in accordance with Section 11(h) hereof For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and
shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of employment under the provision so indicated. 
 8. Non-Competition. 
 a. Executive acknowledges and recognizes the highly
competitive nature of the businesses of the Company and accordingly agrees as follows: 
 (i) During the
Employment Term and, for a period of one year following the date Executive ceases to be employed by the Company (the “Restricted Period”), Executive will not, whether on Executive’s own behalf or on behalf of or in conjunction with
any person, company, business entity or other organization engaged in a Competitive Business (as defined below), directly or indirectly solicit or assist in soliciting on behalf of any entity engaged in a Competitive Business, the business of any
client or prospective client: 
 (A) with whom Executive had personal contact or dealings on behalf of the
Company during the one year period preceding Executive’s termination of employment; 
 (B) with whom
employees reporting to Executive have had personal contact or dealings on behalf of the Company during the one-year period immediately preceding Executive’s termination of employment; or 
 (C) for whom Executive had direct or indirect responsibility during the one-year period immediately preceding
Executive’s termination of employment. 
 (ii) During the Restricted Period, Executive will not directly
or indirectly: 
 (A) engage in a Competitive Business; 
  

 10 

 (B) enter the employ of, or render any services to, any person or entity
(or any division of any person or entity) who or which engages in a Competitive Business; provided that Executive shall not be prohibited from rendering any services to any company that derives less than 10% of its revenues from a Competitive
Business (a “Permitted Company”), if such services or employment relate solely to a business of the Company that is not in competition with a Competitive Business; 
 (C) acquire a financial interest in, or otherwise become actively involved with, any Competitive Business, directly or
indirectly, as an individual, partner, shareholder, officer, director, principal, agent, trustee or consultant; provided, however, a Competitive Business shall not include a Permitted Company, or 
 (D) interfere with, or attempt to interfere with, business relationships (whether formed before, on or after the date of
this Agreement) between the Company and customers, clients, suppliers partners, members or investors of the Company of which it is reasonable to expect that Executive is aware. 
 (iii) For purposes of this Agreement, “Competitive Business” means the development, manufacture, license, sale or
provision of products or services that the Company currently, or at any time during the Employment Term, sells, manufactures, licenses or provides, or has specific plans to do so, including without limitation styrenic block copolymers made by
anionic polymerization. 
 (iv) Notwithstanding anything to the contrary in this Agreement, Executive may,
directly or indirectly own, solely as an investment, securities of any person engaged in a Competitive Business which is publicly traded on a national or regional stock exchange or on the over-the-counter market if Executive (i) is not a
controlling person of, or a member of a group which controls, such person and (ii) does not, directly or indirectly, own 5% or more of any class of securities of such person. 
 (v) During the Restricted Period, Executive will not, whether on Executive’s own behalf or on behalf of or in
conjunction with any person, company, business entity or other organization whatsoever, directly or indirectly: 
 (A) solicit or encourage any employee of the Company to leave the employment of the Company; or 
 (B)
hire any such employee who was employed by the Company as of the date of Executive’s termination of employment with the Company or who left the employment of the Company coincident with, or within six months prior to or after, the termination
of Executive’s employment with the Company. Notwithstanding the foregoing, following a Change in Control, Executive will not be restricted from hiring any employee who is terminated without Cause following such Change in Control. 
  

 11 

 (vi) During the Restricted Period, Executive will not, directly or
indirectly, solicit or encourage to cease to work with the Company any individual consultant then under contract with the Company. 
 b. It is expressly understood and agreed that although Executive and the Company consider the restrictions contained in this Section 8 to be reasonable, if a final judicial determination is made by a court of competent jurisdiction
that the time or territory or any other restriction contained in this Agreement is an unenforceable restriction against Executive, the provisions of this Agreement shall not be rendered void but shall be deemed amended to apply as to such maximum
time and territory and to such maximum extent as such court may judicially determine or indicate to be enforceable. Alternatively, if any court of competent jurisdiction finds that any restriction contained in this Agreement is unenforceable, and
such restriction cannot be amended so as to make it enforceable, such finding shall not affect the enforceability of any of the other restrictions contained herein. 
 9. Confidentiality; Inventions. 
 a. Confidentiality. During the
Employment Term and thereafter, Executive will not disclose or use for Executive’s own benefit or purposes or the benefit or purposes of any other person, firm, partnership, joint venture, association, corporation or other business
organization, entity or enterprise other than the Company, any trade secrets, or other confidential information or data of the Company relating to the Company’s customers, development programs, costs, marketing, trading, investment, sales
activities, promotion, credit and financial data, manufacturing processes, financing methods, plans, or the business and affairs of the Company generally; provided that the foregoing shall not apply to information which is not unique to the Company
or which is generally known to the industry or the public other than as a result of Executive’s breach of this covenant. Except as required by law, Executive will not disclose to anyone, other than his immediate family, legal or financial
advisors or any subsequent employer, the contents of this Agreement. Executive agrees that upon termination of Executive’s employment with the Company for any reason, he will return to the Company immediately all memoranda, books, papers,
plans, information, letters and other data, and all copies thereof or therefrom, in any way relating to the business of the Company, except that he may retain personal notes, notebooks and diaries and personally owned books, reference material or
information of a similar nature, that do not contain confidential information of the type described in the preceding sentence of this section. Executive further agrees that he will not retain or use for Executive’s account at any time any trade
names, trademark or other proprietary business designation used or owned in connection with the business of the Company. 
 b.
Prior Inventions. Executive has attached hereto, as Exhibit A, a list describing all material creations, inventions, and developments which were created or contributed to by Executive either solely or jointly with others prior to
Executive’s employment with the Company which relate to the Company’s proposed or current business, services, products or research and development (collectively referred to as “Prior Inventions”). If no such list is attached,
Executive either will advise the Company that Prior Inventions exist but cannot 
  

 12 

 be disclosed because of prior existing confidentiality obligations or, absent such advice, will be
understood to represent that there are no such Prior Inventions. If in the course of Executive’s employment with the Company, Executive uses or relies upon a Prior Invention, or any works of authorship (including software, related items, data
bases, documentation, site content, text or graphics), developments, improvements or trade secrets which were created or contributed to by Executive either solely or jointly with others prior to Executive’s employment with the Company
(“Prior Intellectual Property”) in Executive’s creation or contribution to any work of authorship, invention, product, service, process, machine or other property of the Company, Executive will inform the Company promptly and, upon
request, use Executive’s best efforts to procure any consents of third parties necessary for the Company’s use of such Prior Intellectual Property. To the fullest extent permissible by law, and to the extent not in contravention of any
prior legal obligation of Executive to others all of which are disclosed to KRATON on Exhibit B, attached hereto, Executive hereby grants the Company a non-exclusive royalty-free, irrevocable, perpetual, worldwide license under all of
Executive’s Prior Inventions to make, have made, copy, modify, distribute, use and sell works of authorship, products, services, processes and machines and to otherwise operate the Company’s current and future business. 
 c. Ownership of Inventions. Executive agrees that Executive will promptly make full written disclosure to the Company, and hereby
assigns to the Company, or its designee, all of Executive’s right, title, and interest in and to any and all creations, inventions or developments, whether or not patentable, which Executive may solely or jointly conceive or develop or reduce
to practice, during the period of time Executive is in the employ of the Company (collectively referred to as the “Company Inventions”), other than (and the Company Inventions shall not include) any such creations, inventions or
developments which demonstrably bear no relationship whatsoever to the business of the Company, the chemical industry, or the application of technologies, ideas, or processes directly or indirectly related to the business of the Company or the
chemical industry to any other industries or disciplines. For the avoidance of doubt, the Company Inventions shall include any creations, inventions or developments that relate directly or indirectly to a Competitive Business. Executive further
acknowledges that all original works of authorship which are created or contributed to by Executive (solely or jointly with others) within the scope of and during the period of Executive’s employment with the Company (the “Company
Copyrights”) are to be deemed “works made for hire,” as that tenor is defined in the United States Copyright Act, and the copyright and all intellectual property rights therein shall be the sole property of the Company. To the extent
any of such works are deemed not to be “works made for hire,” Executive hereby assigns the copyright and all other intellectual property rights in such works to the Company. 
 d. Contracts with the United States. Executive agrees to execute any licenses or assignments of the Company Inventions or the
Company Copyrights as required by any contract between the Company and the United States or any of its agencies. 
 e.
Maintenance of Records. Executive agrees to keep and maintain adequate and current written records of all the Company Inventions made by Executive (solely or jointly with others) during the term and within the scope of Executive’s
employment with the Company. The records will be in the form of notes, sketches, drawings, and any other format that may be specified to Executive or within the Company’s policies, manuals or procedures by the Company. The records will be
available to and remain the sole property and intellectual property of the Company at all times. 
  

 13 

 f. Further Assurances. Executive covenants to take all requested actions and execute
all requested documents to assist the Company, or its designee, at the Company’s expense, in every way; consistent with applicable law, (1) to secure the Company above rights in the Prior Intellectual Property and Company Inventions and
any of the Company Copyrights, patents, mask work rights or other intellectual property rights relating thereto in any and all countries, and (2) to pursue any patents or registrations with respect thereto. This covenant shall survive the
termination of this Agreement. If the Company is unable for any reason, after reasonable efforts, to secure Executive’s signature on any document for this purpose, then Executive hereby irrevocably designates and appoints the Company and its
duly authorized officers and agents as Executive’s agent and attorney in fact, for the limited purpose of acting for and in Executive’s behalf and stead to execute such documents and to do all other lawfully permitted acts in connection
with the execution of such documents. 
 10. Specific Performance. Executive acknowledges and agrees that the
Company’s remedies at law for a breach or threatened breach of any of the provisions of Sections 8 and 9 would be inadequate and, in recognition of this fact, Executive agrees that, in the event of such a breach or threatened breach, in
addition to any remedies at law, the Company, without posting any bond, shall be entitled to obtain equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction or any other equitable remedy
which may then be available and in the event of a breach of Sections 8 and 9, shall be entitled to cease making any payments or providing any benefit otherwise required by this Agreement. 
 11. Miscellaneous. 
 a. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to conflicts of laws principles thereof. 
 b. Entire Agreement/Amendments. Except for the documents related to the Company and its affiliates’ equity incentive plans,
this Agreement contains the entire understanding of the parties with respect to the employment of Executive by the Company, there are no restrictions, agreements, promises, warranties, covenants or undertakings between the parties with respect to
the subject matter herein other than those expressly set forth herein. This Agreement may not be altered, modified, or amended except by written instrument signed by the parties hereto. 
 c. No Waiver. The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be
considered a waiver of such party’s rights or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement. 
 d. Severability. In the event that any one or more of the provisions of this Agreement shall be or become invalid, illegal or
unenforceable in any respect, the validity, 
  

 14 

 legality and enforceability of the remaining provisions of this Agreement shall not be affected thereby.

 e. Assignment. This Agreement shall not be assignable by Executive. This Agreement may be assigned by the Company to
a person or entity which is an affiliate or a successor in interest to substantially all of the business operations of the Company. Upon such assignment, the rights and obligations of the Company hereunder shall become the rights and obligations of
such affiliate or successor person or entity. 
 f. Set Off. The Company’s obligation to pay Executive the amounts
provided and to make the arrangements provided hereunder shall be subject to set-off, counterclaim or recoupment of amounts owed by Executive to the Company or its affiliates, to the extent permitted under Section 409A. 
 g. Successors; Binding Agreement. This Agreement shall inure to the benefit of and be binding upon personal or legal
representatives, executors, administrators, successors, heirs, distributes, devises and legatees. 
 h. Notice. For the
purpose of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered by hand or overnight courier or three days after it has been mailed by
United States registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below Agreement, or to such other address as either party may have furnished to the other in writing in accordance herewith,
except that notice of change of address shall be effective only upon receipt. 
 If to the Company: 

Polymer Holdings LLC 
 15710 John F. Kennedy Blvd. 
 Suite 300 
 Houston, TX 77032 
 If to Executive: 
 To the most recent address of Executive set
forth in the personnel records of the Company. 
 i. Executive Representation. Executive hereby represents to the
Company that the execution and delivery of this Agreement by Executive and the Company and the performance by Executive of Executive’s duties hereunder shall not constitute a breach of, or otherwise contravene, the terms of any employment
agreement or other agreement or policy to which Executive is a party or otherwise bound. 
 j. Cooperation. Executive
shall at the Company’s expense provide his reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) which relates to events occurring during Executive’s employment hereunder. This
provision shall survive any termination of this Agreement. 
  

 15 

 k. Withholding Taxes. The Company may withhold from any amounts payable under this
Agreement such Federal, state and local taxes as may be required to be withheld pursuant to any applicable law or regulation. 
 l. Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 
 m. Insurance. Notwithstanding anything to the contrary herein: 
 (i) All rights Executive has to indemnification as a director, officer or fiduciary pursuant to any agreement, applicable
statue, Company bylaws or articles of organization as in effect from time to time shall not be impacted by the provisions of this Agreement and all such rights, if any, shall survive the termination and/or expiration of this Agreement and/or the
termination of Executive’s employment with the Company; and 
 (ii) So long as Executive is employed by
the Company and for a period of six (6) years following Executive’s termination of employment, the Company agrees to purchase and maintain insurance for Executive’s benefit, covering director, officer and fiduciary liability on the
same basis as active directors, officers and/or fiduciaries, as applicable, of the Company. 
 n. Section 409A. If
the Company reasonably determines that certain provisions of the Agreement may result in a violation of Section 409A, then the Company may make reasonable modifications to the Agreement without Executive’s consent, to attempt to comply
with Section 409A and avoid the excise taxes that may be imposed thereunder without giving rise to any claim that such modification adversely affected Executive’s rights under the Agreement. This Agreement is intended to comply with
Section 409A, and shall be construed accordingly. 
 *        *        *        *        * 
  

 16 

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

	
	KRATON POLYMERS LLC
	
	/s/    RICHARD A. OTT
        
	By: Richard A. Ott
	Title: VP HR/Corp. Communications
	
	POLYMER HOLDINGS LLC
	
	/s/    RICHARD A. OTT
        
	By: Richard A. Ott
	Title: VP HR/Corp. Communications
	
	/s/    LARRY FRAZIER
        
	 Larry Frazier

	

  
 (Signature Page of Amended
Employment Agreement with Larry Frazier) 
  

 17

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