Document:

Employment Agreement - Joseph J. Waiter

 Exhibit 10.23 
  
 EMPLOYMENT AGREEMENT 
 JOSEPH WAITER 
  
 EMPLOYMENT AGREEMENT (the “Agreement”) dated as of April 12, 2004 by and between KRATON Polymers LLC, (“KRATON”), a Delaware limited liability company, which is a wholly owned subsidiary of Polymer Holdings LLC
(“Parent”), a Delaware limited liability company and Joseph Waiter (the “Executive”). 
  
 WHEREAS, Parent and Ripplewood Chemical Holding LLC, a Delaware limited liability company, have consummated a transaction (the “Transaction”)
pursuant to a merger agreement, dated November 5, 2003 (the “Merger Agreement”), whereby KRATON and its subsidiaries (collectively, the “Company”) became wholly owned subsidiaries of Parent; 
  
 WHEREAS, the Company desires that, upon the consummation of the Transaction,
Executive continues to be employed by the Company and to enter into an agreement embodying the terms of such employment and Executive desires to accept such employment with the Company and enter into such an agreement. 
  
 NOW, THEREFORE, 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 commencing on April 1, 2004 (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 KRATON’s Vice President, General Counsel and Secretary. In such position, Executive shall
have the duties and authority commensurate with the position and as shall be determined from time to time by the Board of Directors of KRATON (the “Board”). Executive shall report to the chief executive officer of KRATON (the
“Chief Executive Officer”). 
  
 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 Board; provided that nothing herein shall preclude Executive, subject to the prior approval of the Board,
from accepting appointment to or continue to serve on any board of directors or trustees of any business corporation or any charitable 

  

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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 9. 
  
 3.
Base Salary. During the Employment Term, the Company shall pay Executive a base salary (the “Base Salary”) at the annual rate of $195,000, payable in regular installments in accordance with the Company’s usual payment
practices. Executive shall be entitled to annual reviews and increases in Executive’s Base Salary, if any, as may be determined in the sole discretion of the Board. 
  
 4. Annual Bonus. 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 up to thirty-five percent (35%) of Executive’s Base Salary (the “Target”) based upon the achievement of performance
objectives established by the Board, as determined by the Board. The Company intends to establish a deferred compensation plan, under which Executive may elect to defer, no later than March 1st (or such later date as is provided in the plan) of the year in which the affected Annual Bonus is earned, up to 50% of such Annual Bonus which may be paid at
a later date in shares or units through KRATON Management LLC. The terms and conditions of the deferred compensation plan shall be provided in a separate plan document, which will provide, among other things, that the Board shall determine the value
of the shares or units as applicable for purposes of the deferred compensation plan. 
  
 5. Employee Benefits. 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. 
  
 During the
Employment Term, Executive shall be eligible to participate in the equity incentive plans of the Company, its 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. 
  
 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. Notwithstanding any other provision of this Agreement, the provisions of this Section 7
shall exclusively govern Executive’s rights upon termination of employment with the Company and its affiliates. 
  

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 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; provided, that KRATON may elect to waive such notice period and to pay Executive in lieu of such notice. 
  
 (ii) For purposes of this Agreement: 
  
 (x) “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) theft or embezzlement of Company property, (C) Executive’s conviction of or plea of guilty or no contest to (x) a felony or (y) a crime involving moral turpitude, (D) 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 (E)
Executive’s breach of the provisions of Sections 8 or 9 of this Agreement; and 
  
 (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)-(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; 
  
 (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 
  

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 (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 (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 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; 
  
 (B) a pro rata portion of any Annual Bonus that Executive would have been entitled to receive pursuant to Section 4 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 

  

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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, 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
during the six-month period immediately following the termination of Executive’s employment, 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 for a period of six (6) months commencing on the date of Executive’s termination of employment (“Termination Date”), provided such
medical benefits shall cease if Executive becomes entitled to medical benefits from a new employer. KRATON may provide such medical benefits by paying the Executive’s COBRA continuation coverage through such 6-month 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 Salary or Annual Bonus (if any) when due, (B) a reduction in Executive’s Base Salary, the Target Annual Bonus opportunity described in
Section 4 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, or (C) a relocation of Executive’s primary work location more than 50 miles from the work location on the date hereof, without written consent; 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. 
  

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 The payments and benefits described in subparagraphs (B) - (C) above shall be subject to
and conditioned upon the Executive’s execution and delivery of a valid and effective general release and waiver, in a form satisfactory to the Company, waiving all claims the Executive may have against the Company, its affiliates and their
respective executives, directors, partners, members, shareholders, successors and assigns. 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.
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) or (c) 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 (1) at the times set forth in Section 7(a)(iii) hereof, the Accrued Obligations and (2) continuation of Executive’s annual
Base Salary during the six-month period immediately following the termination of Executive’s employment, at the same time and in the same manner as if Executive had remained employed by KRATON during such period. 
  
 The payments and benefits described in this subparagraph (i)
shall be subject to and conditioned upon the Executive’s execution and delivery of a valid and effective general release and waiver, in a form satisfactory to the Company, waiving all claims the Executive may have against the Company, its
affiliates and their respective executives, directors, partners, members, shareholders, successors and assigns. 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(d)(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. 
  
 (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(d)(i) if applicable) shall survive any termination of this Agreement or Executive’s termination of employment hereunder. 
  

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 e. 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. 
  
 f. Equity
Investments. Notwithstanding anything herein to the contrary, upon a termination of employment, the Executive shall have such rights and obligations with respect to any options to purchase membership units of TJ Chemical Holdings LLC (“TJ
Chemical”) then held by the Executive and with respect to Executive’s investment in TJ Chemical and/or KRATON Management LLC (including with respect to profits units and/or membership units, as applicable) in accordance with the applicable
governing documents thereof. 
  
 8.
Non-Competition. 
  
 a. Executive
acknowledges and recognizes the highly competitive nature of the businesses of the Company and accordingly agrees as follows: 
  
 (1) 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: 
  
 (i) with whom Executive had personal contact or dealings on behalf of the Company during the one year period
preceding Executive’s termination of employment; 
  
 (ii) with whom employees reporting to Executive have had personal contact or dealings on behalf of the Company during the one-year period immediately preceding the Executive’s termination of employment; or 
  
 (iii) for whom Executive had direct or indirect
responsibility during the one-year period immediately preceding Executive’s termination of employment. 
  
 (2) During the Restricted Period, Executive will not directly or indirectly: 
  
 (i) engage in a Competitive Business; 
  
 (ii) 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 

  

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such services or employment relate solely to a business of the Company that is not in competition with a Competitive Business; 
  
 (iii) 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 
  
 (iv) 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. 
  
 (3) 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; provided that for purposes this Section 9(a)(3) only, the term “the Company” shall not include any subsidiary or division
of the Company, the value of which is excluded for purposes of determining distributions of cash and allocations of taxable income with respect to, or the value of, the membership units that Executive received in connection with his rollover of
proceeds in the Transaction. 
  
 (4)
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.

  
 (5) 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: 
  
 (i) solicit or encourage any employee of the Company to leave the employment of the Company or 

 
 (ii) 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.

  
 (6) During the Restricted Period, Executive
will not, directly or indirectly, solicit or encourage to cease to work with the Company any consultant then under contract with the Company. 
  

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 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 existence or 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’ 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 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 

  

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(“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’ 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’ 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 term 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’ 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. 
  
 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’ expense, in every way; consistent with applicable law, (1) to secure the Company’s 

  

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above rights in the Prior Intellectual Property and Company Inventions and any of the Company’s 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 through 10 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 Section 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, 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 

  

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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. 
  
 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: 
  
 KRATON Polymers LLC 
 c/o Texas Pacific Group 
 301 Commerce
Street, suite 3300 
 Fort Worth, Texas 76102 
  
 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. 
  
 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. 
  

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 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. 
  

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

									
	 KRATON POLYMERS LLC
	 	 	 	 JOSEPH WAITER

			
	/s/    S. M. WOOD        	 	 	 	/s/    JOSEPH
WAITER        
	 By:
	 	 	 	 	 	 	 	 
	 Title:
	 	 	 	 	 	 	 	 

  

 14Option Grant Agreement

 Exhibit 10.24 
  
 OPTION GRANT AGREEMENT 
  
 THIS OPTION GRANT AGREEMENT, made as of the 9th day of September, 2004 between TJ Chemical Holdings LLC (the “Company”) and Joseph Waiter (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 625,000 Membership
Unit(s) in the Company. 
  
 2. Grant Date. The Grant Date of the
Option hereby granted is September 9, 2004. 
  
 3. Vesting Commencement
Date. The Vesting Commencement Date of the Option hereby granted is January 1, 2004. 
  
 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 

  

 2 

 
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 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.

  

 3 

 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.] 
  

 4 

 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/    RICHARD A.
EKLEBERRY        
	By:	 	Richard A. Ekleberry
	 Title:
	 	Vice President
	
	JOSEPH WAITER
	
	/s/    JOSEPH J.
WAITER        

  

 5

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