Document:

Profits Unit Award Agreement

 Exhibit 10.25 
  
 PROFITS UNIT AWARD AGREEMENT 
  

PROFITS UNIT AWARD AGREEMENT, (“Agreement”) dated as of September 10, 2004 (the “Date of Grant”), by and between KRATON Management
LLC, a Delaware limited liability company (the “Company”) and Joseph Waiter (the “Participant”). Unless the context otherwise provides, capitalized terms not defined herein shall have the meanings ascribed to them in the Limited
Liability Company Operating Agreement of KRATON Management LLC, as amended from time to time (the “Management LLC Agreement”). 
  
 1. Description of Profits Units. Each Company Profits Unit represents the right to a pro rata share of any distributions received by the Company in
respect of the corresponding TJ Chemical Profits Units held by the Company in accordance with the Management LLC Agreement. Each TJ Chemical Profits Unit represents the right to receive a pro rata portion of the appreciation of the
assets of TJ Chemical above the Threshold Amount (as defined in the TJ Chemical LLC Agreement) for such TJ Chemical Profits Unit after the Date of Grant. The Threshold Amount for the Company Profits Units granted hereunder is $250,019,229,
representing the current value of the assets of TJ Chemical (net of debt) as of the Date of Grant, provided that such Threshold Amount may be appropriately and equitably adjusted by the Board of Directors of TJ Chemical for contributions and
distributions that affect the aggregate balances of all Capital Accounts (as defined in the TJ Chemical LLC Agreement) maintained under the TJ Chemical LLC Agreement in order to place all holders of profits units, including the Participant, in the
same position they would have been in had such contributions and distributions not been made. The pro rata portion of appreciation shall be determined based on all outstanding TJ Chemical Membership Units and TJ Chemical Profits Units
for which the applicable Threshold Amount has been achieved (but only as to the appreciation above the Threshold Amount with respect to the applicable TJ Chemical Profits Units). 
  
 Each Company Profits Unit is intended to be a “profits interest” within the meaning of Rev. Proc. 93-27 (6/09/93)
and Rev. Proc. 2001-43 (8/03/01). By virtue of ownership of a Company Profits Unit, the Participant shall have no right or obligation to make any Capital Contribution to the Company at any time and shall have no rights to any capital contributed to
the Company. 
  
 2. Grant of Award. The Company hereby grants to the
Participant 125,000 Company Profits Units (the “Profits Units”), subject to the terms and conditions of this Agreement and the Management LLC Agreement. 
  
 3. Vesting. Notwithstanding Section 4.8 of the Management LLC Agreement, 50% of the Profits Unit shall vest when the fair value of
the assets of TJ Chemical equal or exceed two times (2X) the Threshold Amount and the remaining 50% of the Profits Units shall vest when the fair value of the assets of TJ Chemical equal or exceed three times (3X) the Threshold Amount, in each case,
as determined by the Board of Directors of TJ Chemical, provided that the Participant is employed by the KRATON Group on such vesting date, and provided, further, that 100% of the Profits Units shall vest upon the effective date of a disposition by
the Initial Investors of 51% or more of their aggregate interests in KRATON to one or more unrelated third Persons if the 

  

 
Participant is employed by the KRATON Group through such date. Notwithstanding anything to the contrary in any other agreement, including the Management LLC
Agreement, in the event the Participant’s employment with the KRATON Group is terminated prior to a portion or all Profits Units becoming vested as provided above, all unvested Profits Units shall immediately and without any further action be
forfeited on the date of termination. 
  
 4. LLC Agreements. This Agreement
shall be subject to all of the provisions of the Management LLC Agreement, and such provisions are incorporated herein by this reference. The Participant understands that, as a condition to receiving the Profits Units granted hereunder, the
Participant must execute and comply with the Management LLC Agreement. The Participant shall be a Member and holder of Profits Unit for all purposes under the Management LLC Agreement. Unless expressly stated otherwise in this Agreement, to the
extent that, with respect to any right or obligation of the Participant, any provisions of this Agreement are not consistent with the Management LLC Agreement, the provisions of the Management LLC Agreement shall govern. 
  
 5. Representations by Participant. The Participant represents and warrants that he has
received, read and executed a copy of the Management LLC Agreement. 
  
 6.
Restrictions on Transferability. Except as specifically provided in Article IX of the Management LLC Agreement, the Profits Units may not be sold, transferred or otherwise disposed of without the written approval of the Managing Member.

  
 7. Corporate Transaction; Termination of Employment. The Company shall
have the right to cancel the Profits Units in the event of a merger, consolidation, recapitalization or other corporate transaction involving TJ Chemical in which TJ Chemical cancels the corresponding TJ Chemical Profits Units and shall distribute
the cash, securities or other property, or any combination thereof, if any, received from TJ Chemical in respect of such corresponding TJ Chemical Profits Units in accordance with Section 9.6 of the Management LLC Agreement. If the Participant
becomes a Terminated Employee, the Company shall have the right to purchase any then-vested Profits Units held by the Participant in accordance with Article IX of the Management LLC Agreement. 
  
 8. Fair Value. Any determination relating to the value of the assets of TJ Chemical or
any TJ Chemical Profits Unit shall be determined in good faith by the Board of Directors of TJ Chemical in accordance with the TJ Chemical LLC Agreement and all determinations of the Board of Directors shall be final and binding on all parties.

  
 9. Assignment. This Agreement and the rights hereunder shall not be
assignable or transferable by the Participant without the prior written consent of the Company. This Agreement shall inure to the benefit of and be binding upon the parties and to their respective heirs, executors, administrators, successors and
permitted assigns. 
  
 10. Amendments. The terms and provisions of this
Agreement may not be amended except by a written instrument signed by the parties hereto. 
  

 11. Counterparts; Effectiveness. This Agreement may be executed in any number of counterparts, each of which shall
be considered an original, but all such counterparts shall together constitute but one and the same contract. 
  
 12. Severability. Every provision of this Agreement is intended to be severable. If any term or provision hereof is illegal or invalid for any reason whatsoever, such term or provision shall be enforced to the
maximum extent permitted by law and, in any event, such illegality or invalidity shall not affect the validity of the remainder of this Agreement. 
  
 13. Non-Waiver. No provision of this Agreement shall be deemed to have been waived except if the giving of such waiver is contained in a written notice given to
the party claiming such waiver, and no such waiver shall be deemed to be a waiver of any other or further obligation or liability of the party or parties in whose favor the waiver was given. 
  
 14. Applicable Law. This Agreement and the rights and obligations of the parties
hereto shall be interpreted and enforced in accordance with and governed by the laws of the state of Delaware without regard to its principles of conflict of laws. 
  
 15. Integration. This Agreement, and the other documents referred to herein or delivered pursuant hereto (including, without
limitation, the Management LLC Agreement and the TJ Chemical 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 and such documents supersede all prior agreements and understandings between the parties with
respect to their subject matter. 
  

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

					
	 KRATON MANAGEMENT LLC

			
	 By:
	 	 	 	/s/    RICHARD A.
EKLEBERRY        
	 	 	 Name:
	 	Richard A. Ekleberry
	 	 	 Title:
	 	Vice President

	
	
	/s/    JOSEPH J. WAITER        
	Joseph WaiterEmployment Agreement - Dave Bradley

 Exhibit 10.26 
  
 EMPLOYMENT AGREEMENT 
 DAVE BRADLEY 
  
 EMPLOYMENT
AGREEMENT (the “Agreement”) dated as of March 8, 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 Dave Bradley (the “Executive”). 
  
 WHEREAS, in connection with the transactions contemplated by the merger agreement between Parent and Ripplewood Chemical Holding LLC, a Delaware limited liability company (the “Transaction”), KRATON and its
subsidiaries (collectively, the “Company”) shall become wholly owned subsidiaries of Parent; 
  
 WHEREAS, the Company desires to employ the Executive 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 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, Transformation. 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 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 $200,000, 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; Restricted Unit Award. (a) 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 forty percent (40%) 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 Company intends to establish a deferred compensation plan, under which Executive may elect to defer, no later than March 1st 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. 
  
 (b) As soon as practicable after the date hereof, the Company shall grant restricted shares on membership units of TJ Chemical Holdings LLC (which may be indirectly distributed through KRATON Management LLC) with a
current value of $200,000 (the “Restricted Shares”), based on the buy-in price of membership units of TJ Chemical Holdings LLC by the initial investors in connection with the Transaction, as determined by the Board. As soon as practicable
after the grant date, the Restricted Shares will be recorded on the books of TJ Chemical Holdings LLC or KRATON Management LLC, as applicable, in the Executive’s name, subject to restrictions on transferability and subject to forfeitability (as
described below). The Restricted Shares will vest as to 20% of such shares on each of the first five anniversaries of the grant date, provided that Executive remains employed with the Company through the applicable vesting date. Upon a termination
of Executive’s employment for any reason, any unvested Restricted Shares will be forfeited. Unvested Restricted Shares will become vested upon a termination of employment without Cause or resignation for Good Reason within the two-year period
following a “Change in Control” as defined in the TJ Chemical Holdings LLC 2004 Option Plan. Executive shall execute the limited liability company operating agreements for KRATON Management LLC and/or TJ Chemical Holdings LLC or such other
documentation requested by the Company in connection with such award of the Restricted Shares. The Executive shall be permitted to make an election pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended with respect to his
Restricted Shares. 
  
 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. 
  

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 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. 
  
 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; 
  

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 (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 (including, without limitation, any retirement benefits, 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 

  

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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, 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 or (B) a reduction in Executive’s Base Salary, other than an across-the-board reduction in salary for a majority of the members of the Company’s management team; provided that
either of these events shall constitute Good Reason only if the Company fails to cure such event within 30 days after receipt from Executive of written notice of 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 (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, 

  

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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 this 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. 
  
 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 

  

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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: 
  
 (iv) engage in a Competitive Business; 
  
 (v) 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; 
  
 (vi) acquire a financial interest in, or otherwise become actively involved with, any Competitive Business,
directly or indirectly, as an individual, partner, 

  

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shareholder, officer, director, principal, agent, trustee or consultant; provided, however, a Competitive Business shall not include a Permitted Company, or

  
 (vii) 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. 
  
 (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: 
  
 (viii) solicit or encourage any employee of the Company to leave the employment of the Company or 
  
 (ix) 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. 
  
 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, 

  

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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 (“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, 

  

 9 

 
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 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 

 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 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. 
  

 11 

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

									
	 KRATON POLYMERS LLC
	 	 	 	 DAVE BRADLEY

			
	 /s/ Joseph J. Waiter
	 	 	 	 /s/ Dave Bradley

	 By:
	 	 	 	 	 	 	 	 
	 Title:
	 	 	 	 	 	 	 	 

  

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