Document:

Summary of the Terms of the 2008 Incentive Compensation Plan

 Exhibit 10.31 
 Summary of 2008 Incentive Compensation Plan 
 Annual bonuses in 2008
shall be paid pursuant to this 2008 Incentive Compensation Plan, subject to the discretion of the Compensation Committee to make such adjustments as it deems appropriate, including in certain instances, its discretion to exceed the maximum amount
otherwise payable under the plan. The common bonus pool amount shall be $17 million. Those eligible for payout from the common bonus pool include all employees, with the exception of the non-exempt hourly plant workers at the Belpre Plant, on the
payroll as of December 31, 2007. The Incentive Compensation Plan is intended to encourage strong performance on factors that are key to Kraton’s growth and success. 
 A participant’s initial bonus amount is determined as follows: 
  

																	
	Participant’s	  		  	Target	  		  	Kraton	  		  	Individual	  		  	Amount allocated from
	Base Salary	  	X	  	 Bonus
 Factor
 (%)
	  	X	  	 Performance
 Factor
	  	X	  	 Performance
 Factor
	  	+	  	 the additional
 $1,000,000 pool, if any

 Target Bonus Factor is a percentage of base salary and shall be established by the
Compensation Committee for each participant, unless specifically provided in such participant’s employment agreement. 
 Kraton’s
Performance Factor shall be determined through use of a sliding scale based on EBITDA generated by Kraton. For example, if Kraton successfully achieves EBITDA that is exactly equal to the EBITDA target as set in the annual business plan of
Kraton, then the Kraton performance factor would be 1. The annual business plan also establishes a stretch EBITDA target, which if achieved or exceeded, would result in a Kraton performance factor of 2. The Kraton performance factor can never exceed
2. Sixty-five percent of the EBITDA target is a minimum threshold below which the Kraton performance factor, and thus the common bonus pool, would be zero. If actual EBITDA falls between 65% of EBITDA and the stretch EBITDA target, the Kraton
performance factor is adjusted based on a sliding scale. 
 The Individual Performance Factor shall be determined after review by the
Compensation Committee of that executive’s key contributions and key weaknesses for the year on an aggregate basis and is not based on a mathematical or formulaic method and no objectively determinable weighting is applied. Each
participant’s individual performance factor shall range from 0 to 2.0. 
 An Additional Bonus Pool of up to $1 million may be added
or subtracted from the common bonus pool amount based on additional performance criteria. 
 Adjustments Initial bonus amounts are
adjusted downwards as necessary so as not to exceed the common bonus pool amount or maximum payouts as established by employment contracts. 
 Targets. For fiscal year 2008, Kraton’s EBITDA target is $100 million, and Kraton’s stretch EBITDA target for such period is $120 million. The determinate additional performance criteria which shall determine whether the
pool is increased by an additional $1 million are (i) safety

 
performance as determined by the Company’s Occupational Safety and Health Administration (“OSHA”) Recordable Rate, (ii) innovation expressed as a percent of total revenue,
(iii) cost out restructuring projects and (iv) pricing initiatives. 
  

 2Summary of the Terms of the 2009 Incentive Compensation Plan

 Exhibit 10.32 
 Summary of 2009 Incentive Compensation Plan 
 Annual bonuses in 2009
shall be paid pursuant to this 2009 Incentive Compensation Plan, subject to the discretion of the Compensation Committee to make such adjustments as it deems appropriate, including in certain instances, its discretion to exceed the maximum amount
otherwise payable under the plan. The common bonus pool amount shall be $15 million. Those eligible for payout from the common bonus pool include all employees, with the exception of the non-exempt hourly plant workers at the Belpre Plant, on the
payroll as of December 31, 2007. The Incentive Compensation Plan is intended to encourage strong performance on factors that are key to Kraton’s growth and success. 
 A participant’s initial bonus amount is determined as follows: 
  

																	
	Participant’s	  		  	Target	  		  	Kraton	  		  	Individual	  		  	Amount allocated from
	Base Salary	  	X	  	 Bonus
 Factor
 (%)
	  	X	  	 Performance
 Factor
	  	X	  	 Performance
 Factor
	  	+	  	 the additional
 $1,000,000 pool, if any

 Target Bonus Factor is a percentage of base salary and shall be established by the
Compensation Committee for each participant, unless specifically provided in such participant’s employment agreement. 
 Kraton’s
Performance Factor shall be determined through use of a sliding scale based on EBITDA generated by Kraton. For example, if Kraton successfully achieves EBITDA that is exactly equal to the EBITDA target as set in the annual business plan of
Kraton, then the Kraton performance factor would be 1. The annual business plan also establishes a stretch EBITDA target, which if achieved or exceeded, would result in a Kraton performance factor of 2. The Kraton performance factor can never exceed
2. Sixty-five percent of the EBITDA target is a minimum threshold below which the Kraton performance factor, and thus the common bonus pool, would be zero. If actual EBITDA falls between 65% of EBITDA and the stretch EBITDA target, the Kraton
performance factor is adjusted based on a sliding scale. 
 The Individual Performance Factor shall be determined after review by the
Compensation Committee of that executive’s key contributions and key weaknesses for the year on an aggregate basis and is not based on a mathematical or formulaic method and no objectively determinable weighting is applied. Each
participant’s individual performance factor shall range from 0 to 2.0. 
 An Additional Bonus Pool of up to $1 million may be added
or subtracted from the common bonus pool amount based on additional performance criteria. 
 Adjustments Initial bonus amounts are
adjusted downwards as necessary so as not to exceed the common bonus pool amount or maximum payouts as established by employment contracts. 
 Targets The Compensation Committee determined the performance targets for the 2009 Incentive Plan in first quarter 2009.Form of Amendment No. 3 to the Employment Agreement of Executive Officers

 Exhibit 10.43 
 FORM OF AMENDMENT NO. 3 TO THE EMPLOYMENT AGREEMENT OF EXECUTIVE OFFICERS 
 By resolution of the Board of Directors of Kraton Polymers LLC, effective as of December 31, 2009, the following provision was added to the employment agreements for Messers. Dave Bradley, Kevin
Fogarty, Richard Ott, and Steve Tremblay. 
 “Notwithstanding anything to the contrary in the
Agreement, with respect to any obligation to sign a general release and waiver as a condition of the receipt of any payments or benefits hereunder, such general release and waiver must be executed by the Executive within 30 days after the date of
termination of the 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.”Form of Base Salary Reduction Agreement effective April 1, 2009

 Exhibit 10.46 
 Form of Base Salary Reduction Agreement 
 WHEREAS the
undersigned executive (the “Executive”) and Kraton Polymers LLC (the “Company”) entered into an employment agreement on
                    , as amended (the “Employment Agreement”), setting forth the terms of the Executive’s employment with the
Company; and 
 WHEREAS, the Employment Agreement provides for an annual base salary (“Base Salary”) of
$                 (“Current Base Salary”), subject to annual review and increases as determined by and in the discretion of the Board of Directors of
the Company (the “Board”). 
 NOW THEREFORE, for good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the Executive and the Company agrees as follows: 
 1. As of April 1, 2009 the Executive’s Base Salary
shall be reduced to $                 (the “Adjusted Base Salary”). 
 2. The Adjusted Base Salary shall remain in effect through December 31, 2009, unless otherwise agreed to in writing by the Executive and the Company. 
 3. In the event the Company’s Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) in fiscal year
2009 equals or exceeds $102,250,000, including the expense of repayment of the Lost Pay Value (as defined below) for all affected executives of the Company, the Executive shall be entitled to receive a cash payment equal to the total amount of Base
Salary lost by the Executive during 2009 as a result of the said reduction from Current Base Salary to Adjusted Base Salary (the “Lost Pay Value”), provided the Executive remains an employee in good standing through the Payment Date
(as defined below). 
 4. In the event the Company’s EBITDA in fiscal year 2009 equals or exceeds $120,000,000, including
the expense of the payment described in paragraph 3 to all affected executives of the Company and the expense of the additional payment contemplated by this paragraph to all affected executives of the Company, the Executive shall be entitled to
receive a cash payment equal to the Lost Pay Value, in addition to the cash payment set forth in paragraph 3 above, provided the Executive remains an employee in good standing through the Payment Date. 
 5. Any and all payments pursuant to paragraphs 3 and 4 shall be made no later than March 15, 2010. The date any and all payments are
actually made shall be the “Payment Date”. In no event shall the Executive have the ability to determine the taxable year in which any payments to pursuant to paragraphs 3 and 4 shall be made. 
 6. Unless otherwise agreed to in writing by the Executive and the Company, as of January 1, 2010, the Executive’s Base Salary shall be
equal to the Current Base Salary, subject to increases in the discretion of the Board, as per the Employment Agreement. 
 7.
Notwithstanding the definition of “good reason” as set forth in the Employment Agreement, the Executive hereby acknowledges and agrees that in no event shall the reduction of Base Salary to the Adjusted Base Salary as provided hereunder
result in the Executive having “good reason” to terminate his employment and receive severance payments or any other benefits for purposes of the Employment Agreement, any incentive compensation or equity awards or pursuant to any other
agreement or arrangement with the Company. For purposes of clarification, the waiver language herein shall apply only to the specific and singular reduction set forth in paragraph 1 and only under the terms as provided herein. In no circumstances
shall the waiver herein be deemed or interpreted as a waiver or

 
relinquishment of any other rights the Executive may have under the Employment Agreement, or any other agreement or arrangement with the Company, including without limitation, the
Executive’s rights under the Employment Agreement in the event of any subsequent reduction of the Executive’s Base Salary occurring after April 1, 2009. 
  

	
	[Name]
	
	  

  

			
	 Accepted and agreed:
 Kraton Polymers LLC

		
	By	 	  

	[Name]	 	
	[Title]	 	

  

 2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}]]