Document:

Pension Benefit Restoration Plan dated December 31, 2008, restated

 Exhibit 10.29 
 KRATON POLYMERS U.S. LLC 
 PENSION BENEFIT
RESTORATION PLAN 
 (Effective January 1, 2002) 
 (As Amended and Restated December 18, 2008) 

 TABLE OF CONTENTS 
  

			
	 	  	Page
	 ARTICLE I INTRODUCTION
	  	1
		
	 ARTICLE II DEFINITIONS AND GENERAL PROVISIONS
	  	1
		
	 ARTICLE III ELIGIBILITY AND PARTICIPATION
	  	7
		
	 ARTICLE IV BENEFITS
	  	8
		
	 ARTICLE V VESTING
	  	12
		
	 ARTICLE VI DEATH BENEFITS
	  	13
		
	 ARTICLE VII SPECIAL DISTRIBUTION PROCEDURES
	  	15
		
	 ARTICLE VIII PLAN ADMINISTRATION
	  	16
		
	 ARTICLE IX AMENDMENT AND TERMINATION
	  	18
		
	 ARTICLE X CLAIMS PROCEDURE
	  	19
		
	 ARTICLE XI MISCELLANEOUS PROVISIONS
	  	21

  

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 KRATON POLYMERS U.S. LLC 
 PENSION BENEFIT RESTORATION PLAN 
 ARTICLE I 
 INTRODUCTION 
 KRATON POLYMERS U.S. LLC, a Delaware limited liability corporation, adopted and published this instrument for the purpose of establishing,
in its entirety, effective as of January 1, 2002, the provisions of its deferred compensation plan presently known as the KRATON Polymers U.S. LLC Pension Benefit Restoration Plan (the “Restoration Plan”). The Restoration Plan
is hereby amended and restated in its entirety as of December 18, 2008. 
 The purpose of the Restoration Plan is to
restore certain benefits under the KRATON Polymers U.S. LLC Pension Plan, which eligible employees and their beneficiaries otherwise would lose as a result of certain limitations placed upon tax-qualified retirement plans under the Code (as defined
below). The pertinent limitations placed upon KRATON Polymers U.S. LLC Pension Plan by the Code relate to the amount of pension benefits that a Participant (as defined below) can receive on an annual basis and the amount of annual compensation that
can be used in calculating any such pension benefits. By restoring any lost pension benefits, the Restoration Plan is intended to treat the Participants as if they were unaffected by these Internal Revenue Code limitations. The Restoration Plan is
intended to be an “unfunded” plan, maintained exclusively for the purpose of providing deferred compensation for a “select group of management or highly compensated employees,” as both terms are defined under Sections 201(2),
301(a)(3), and 401(a)(1) of ERISA. 
 The terms and provisions of the Restoration Plan are as follows: 
 ARTICLE II 
 DEFINITIONS AND GENERAL PROVISIONS 
 2.1 “Accredited Service” means service recognized for the purposes of
computing the amount of the Supplemental Pension Benefit under Article IV and for determining the amount of vesting under Section 5.1. A Participant shall be credited with Accredited Service for all Periods of Service during which the
Participant was employed by the Employer. In addition, a Participant who has authorized a transfer of assets and liabilities from the Shell Pension Plan to the Restoration Plan as of the Effective Date shall also be credited with Accredited Service
for

  

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Predecessor Employer Service. Periods of Service shall be computed in years and months and shall be aggregated on the basis that 12 one-month Periods of Service shall equal one full “Year of
Accredited Service”. For purposes of the preceding sentence, a Participant shall be credited with a one-month Period of Service for each month in which he or she is credited with at least one Hour of Service. 
 2.2 “Actuarial Equivalent” means a form of benefit differing in time, period or manner of payment from a specific benefit, such as the
monthly benefit, provided under the terms of the Restoration Plan, but having the same value as such specific benefit when computed using the same actuarial assumptions and tables as provided for in Section 1.17 of the Pension Plan. For
purposes of Section 4.3 herein, Actuarial Equivalent shall be determined using the interest rate and mortality table set forth in Section 1.17 of the Pension Plan for determining actuarial equivalencies pursuant to Sections 4.5(f) and
5.1(c) of the Pension Plan. 
 2.3 “Average Final Compensation” means the average monthly Compensation on a full-time earnings
basis of a Participant during the thirty-six (36) completed consecutive calendar months (or the actual number of months if less) during the last ten (10) years of his or her Accredited Service (or the actual number of years if less)
immediately preceding or ending with his or her Separation from Service affording the highest such average. The Average Final Compensation of persons employed on a part-time basis shall be adjusted to reflect full-time Compensation throughout a Year
of Accredited Service. 
 2.4 “Beneficiary” means any person who becomes entitled to receive any distribution hereunder by
reason of the death of a Participant. 
 2.5 “Board of Directors” means the board of directors of the Company. 
 2.6 “Change of Control” means (a) A sale of all or substantially all of the assets of the Company to a Person who is not an Affiliate
of KRATON Polymers U.S. LLC or any entity in which the shareholders of the Company immediately prior to such transaction do not control (within the meaning of Rule 405 of the Securities Act of 1933, as amended) more than 50% of the voting power
immediately following the transaction; (b) A sale by KRATON Polymers U.S. LLC or any of its Affiliates resulting in more than 50% of the voting stock of the Company being held by a Person or Group that does not include KRATON Polymers U.S. LLC
or any of its Affiliates; or (c) A merger or consolidation of the Company into another Person which is not an Affiliate of KRATON Polymers U.S. LLC or an entity in which the shareholders of the

  

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Company immediately prior to such transaction do not control (within the meaning of Rule 405 of the Securities Act of 1933, as amended) more than 50% of the voting power immediately following the
transaction. For purposes of this definition, (i) “Group” means two or more Persons acting together as a partnership, limited partnership, syndicate or other group for the purpose of acquiring, holding or disposing of
securities of the Company; (ii) “Affiliate” means (A) with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with such Person, and (B) with respect to
the Company, also any entity designated by the Board of Directors of the Company in which the Company or one of its Affiliates has an interest; and (iii) “Person” means an individual, partnership, corporation, business trust,
joint stock company, trust, unincorporated association, joint venture, governmental authority or other entity of whatever nature. 
 2.7
“Code” means the Internal Revenue Code of 1986, as amended and then in effect. 
 2.8 “Committee” means the
Pension Committee of KRATON Polymers U.S. LLC. 
 2.9 “Company” means KRATON Polymers U.S. LLC, a Delaware limited liability
corporation, together with any successor thereto which adopts the Restoration Plan by appropriate written action. 
 2.10
“Compensation” means a Participant’s regular salary or wages paid in cash by the Employer for personal services actually rendered in the course of employment with the Employer maintaining the Restoration Plan, including salary
deferrals pursuant to any salary reduction agreement under Section 125 or 401(k) of the Code that are not currently includible in the Employee’s gross income. Compensation includes, but is not limited to, the applicable straight-time
portion of night shift bonus payments for an Employee’s assignment for no more than 40 straight time hours per work week, including such payments as calculated under shift supervisors’ differential, the applicable straight-time portion of
pay and night shift bonus payments, including such payments as calculated under shift supervisors’ differential, for hours in excess of 40 straight time hours per work week that are part of an established normal work schedule and nondeferred
payments under incentive compensation plans prior to the Severance From Employment Date (including payments under an annual incentive program made by Shell Chemical for the year 2000 after termination of employment with Shell Chemical), provided
that no more than three consecutive payments of incentive compensation shall be taken into account (considering the sum of any Shell Chemical payment for the year 2000 and payment of the

  

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incentive compensation by the Company in 2001 as a single payment). Compensation excludes overtime, extended work week pay, premium remuneration, special bonuses, severance payments, gainsharing,
retention payments, stock options, phantom stock options, long-term performance units and other deferred or extra compensation, house or living allowances, payments made in connection with Severance From Employment for accumulated vacation not
taken, Company contributions to any Company profit-sharing plan and amounts credited under any other qualified or non-qualified plan of deferred compensation, other than salary deferrals pursuant to a salary reduction agreement under
Section 401(k) of the Code. 
 Compensation for any Employee whose Severance From Employment Date occurs before the last
day of any month shall be rounded to the end of that month at the salary or hourly rate payable to such Employee at the Severance From Employment Date. Compensation for Leaves of Absence is based on the Compensation paid by the Employer with respect
to such period of absence or the amount that would have been paid but for such absence, whichever is greater. Compensation for an Employee whose hourly rate of pay is based on a normal work schedule of greater than 8 hours per work day and/or 40
hours per work week shall be determined as if such hourly rate had been based on a normal work schedule of no greater than such number of hours. 
 For purposes of this definition, prior to the Effective Date of the Restoration Plan, any compensation received for Predecessor Employer Service with Shell Chemical that constituted compensation under the
terms of the Shell Pension Plan shall constitute compensation under the Restoration Plan with respect to an Eligible Employee who authorized a transfer of assets and liabilities from the Shell Pension Plan to the Restoration Plan as of the Effective
Date. 
 The Compensation limitations imposed by Code Section 401(a)(17)(b) and Section 1.9 of the Pension Plan shall
not apply to the definition of Compensation as described herein. 
 2.11 “Disability” means a Participant’s physical or
mental condition that renders it unlikely that the individual will ever again be able to be employed in his or her normal occupation. Disability will be determined by the Committee upon the advice of two duly qualified physicians, one chosen by the
Committee and the other of whom is the Participant’s attending physician, taking into account the opinion of a third duly qualified physician selected by the Committee in the event of a disagreement. An individual shall not be deemed to have a
Disability if he or she refuses to submit to an examination that may by requested by any physician. The Committee will apply the provisions of this Section in a nondiscriminatory,

  

 4 

 
consistent and uniform manner. Notwithstanding the foregoing, an individual shall not be deemed to have a Disability unless such disability meets the definition of disability set forth in
Section 409A of the Code. 
 2.12 “Effective Date” of the Retention Plan means January 1, 2002. 
 2.13 “Election Form” shall have the meaning set forth in Section 3.2 herein. 
 2.14 “Eligible Employee” means any employee of an Employer who meets the requirements of Section 3.1 herein. 
 2.15 “Employer” means the Company and any other corporation which shall elect, with the consent of the Company, to participate in the
Restoration Plan in the manner described in Section 3.6, or any successor corporation which shall adopt the Restoration Plan. If any such corporation shall terminate its participation in the Restoration Plan, such corporation shall cease to be
an Employer. 
 2.16 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended and then in effect.

 2.17 “Hour of Service” means any and each hour for which an individual is paid or entitled to payment for the performance of
duties for the Company, or any and each hour of Predecessor Employer Service as defined below. 
 2.18 “Normal
Retirement Age” means the first day of the month in which a Participant attains his or her sixty-fifth (65th) birthday. 
 2.19 “Normal Retirement Date” means the first of the month concurrent with or next following the participant’s attainment of age sixty-five (65). 
 2.20 “Participant” means any Eligible Employee who meets the eligibility requirements for participation in the Restoration Plan as set forth in Article III or any former eligible
employee under the Restoration Plan or the Shell Pension Plan who has a vested interest in the Restoration Plan. 
 2.21 “Period of
Service” means the period of time beginning with an Employee’s commencement date or reemployment date as those terms are defined in the Pension Plan and ending with the Employee’s Severance From Employment Date. 
 2.22 “Pension Plan” means the KRATON Polymers U.S. LLC Pension Plan (effective as of March 1, 2001). 
  

 5 

 2.23 “Predecessor Employer Service” means service provided by an individual to the Shell
Chemical Company, or any other company that is an affiliate or subsidiary of KRATON Polymers U.S. LLC. 
 2.24 “Restoration
Plan” means the KRATON Polymers U.S. LLC Pension Benefit Restoration Plan as described herein in this document. 
 2.25
“Severance From Employment Date” means the date a Participant experiences a separation from service as determined in accordance with Section 409A of the Code. 
 2.26 “Supplemental Pension Benefit” means the additional pension benefit determined in accordance with Article IV herein payable to individuals who satisfy the eligibility provisions
of the Restoration Plan. 
 2.27 General Provisions. Any term not specifically defined in the Restoration Plan will have the meaning
provided to such term as defined under the Pension Plan. In addition, the masculine wherever used herein shall include the feminine; singular and plural forms are interchangeable. Certain terms of more limited application have been defined in the
provisions to which they are principally applicable. The division of the Restoration Plan into Articles and Sections with captions has been done for convenience only and is not to be taken as limiting or extending the meaning of any of its
provisions. 
  

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 ARTICLE III 
 ELIGIBILITY AND PARTICIPATION 
 3.1 Eligibility to Receive
Supplemental Pension Benefits. In order to receive a Supplemental Pension Benefit from the Company pursuant to Article IV herein, an individual must be eligible to participate in the Pension Plan as prescribed by the eligibility
requirements of Article II of the Pension Plan, and must be among a select group of management or highly compensated employees within the meaning of Sections 201(2), 301(a)(3) and 401(a) of ERISA. Such individual also must: (i) have
“Average Final Compensation,” as that term is defined in the Pension Plan, that is in excess of the eligible compensation amount that may be taken into account pursuant to Section 401(a)(17)(B) of the Code; or (ii) have the
amount of his or her annual pension benefit payable from the Pension Plan limited by the annual benefit limitations of Section 415 of the Code. Finally, no individual will be eligible for the Restoration Plan if he or she otherwise is receiving
supplemental pension benefits from some other plan, program, or arrangement established by the Company for the purpose of compensating for the loss of pension benefits from the Pension Plan due to the limitations of the Code. 
 3.2 Election Form. All Participants in the Restoration Plan as of December 18, 2008 must complete and return to the Company an Election Form, as
provided by the Committee, on or before December 31, 2008. The Election Form shall provide the Participant with the opportunity to choose the timing and form in which the Participant will receive any Supplemental Pension Benefit payable
hereunder, and shall become irrevocable on December 31, 2008. All Employees who first become eligible to participate in the Restoration Plan after December 31, 2008, shall be notified in writing when he or she becomes eligible to
participate in the Restoration Plan and must complete and return the Election Form to the Employer within thirty days of commencing participation in the Restoration Plan. 
  

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 ARTICLE IV 
 BENEFITS 
 4.1 Amount of Supplemental Pension Benefits.

  

	 	(a)	Normal Retirement. A Participant who is entitled to receive a Supplemental Retirement Benefit in connection with his or her Normal Retirement Date will receive a
Supplemental Pension Benefit that is paid, in the case of a lump sum payment, or the payment of which commences, in the case of an annuity, within 90 days of the Normal Retirement Date equal to: 

  

	 	(i)	1.6% of the Participant’s Average Final Compensation multiplied by his or her Years of Accredited Service, minus (ii) below. 

  

	 	(ii)	The Participant’s vested benefit accrued in accordance with the provisions of Section 4.1(b)(i) of the Pension Plan without any reduction for Primary Social
Security Benefits as prescribed under either Section 4.1(b)(1)(i)(A) or Section 4.1(b)(1)(i)(B) of the Pension Plan. 

  

	 	(b)	Early Retirement. If the Participant is entitled to and elects to receive his or her Supplemental Pension Benefit prior to his or her Normal Retirement Date in
accordance with Section 4.1(a), and other than in the event of the Participant’s death or Disability, the Supplemental Pension Benefit shall be reduced for early commencement in accordance with the applicable factor set forth below:

  

			
	 Participant’s Age
 (Nearer Birthday)
 When Supplemental Pension Benefit
Commences
	  	Percentage of Supplemental Pension
Benefits
	 60 or older
	  	100%
	 59
	  	95%
	 58
	  	90%

  

 8 

			
	 57
	  	
	 56
	  	80%
	 55
	  	75%
	 54
	  	70%
	 53
	  	65%
	 52
	  	60%
	 51
	  	55%
	 50
	  	50%

 The Supplemental Pension Benefit as calculated pursuant to this Section 4.2 shall not be
affected by the limitations imposed by the Code or by Section 4.6 of the Pension Plan. 
 4.2 Timing of Distributions. 

 

	 	(a)	 A Participant entitled to receive a Supplemental Pension Benefit will receive such Supplemental Pension Benefit in accordance with the elections as
designated on his or her Election Form. At the time the Participant completes the Election Form, he or she may choose to receive distribution in the case of lump sum payment, or begin receiving distributions in the case of an annuity (i) within
90 days following his or her Normal Retirement Date, (ii) within 90 days following his or her Severance from Employment Date if the Participant experiences a Severance from Employment prior to his or her Normal Retirement Date and the
Participant’s total age and Years of Accredited Service as of the Severance from Employment Date equals or exceeds 80, or (iii) for those Participants who make such an election on or prior to December 31, 2008, as soon as practicable
following July 1, 2009 but in no event later than December 31, 2009. For purposes of determining the benefit payable under 4.2(a)(iii) only, “Average Final Compensation” shall mean the average monthly Compensation on a full-time
earnings basis of a Participant during the thirty-six (36) completed consecutive calendar months (or the actual number of months if less) during the last ten (10) years of his or her Accredited Service (or the actual number of years if

  

 9 

	 	 
less) immediately preceding or ending on December 31, 2008 affording the highest such average. 

  

	 	(b)	If the Participant fails to timely complete and return an Election Form in accordance with Section 3.2, then the Participant shall receive distribution in
connection within 90 days following his or her Normal Retirement Date. 

 4.3 Limited Cashouts. The Committee may, from
time to time and in its sole discretion, provide a mandatory lump sum payment of a Participant’s benefits under the Restoration Plan to the extent such amounts deferred under the plan do not exceed the applicable dollar amount under
Section 402(g)(1)(B) of the Code and provided that such payment will result in the termination and liquidation of the entirety of the Participant’s interest under the Restoration Plan and all other plans which are treated as having been
deferred under a single nonqualified deferred compensation plan pursuant to §1.409A-1(c)(2) of the regulations promulgated under the Code. 
 4.4 Form of Distributions. All distributions made under the Restoration Plan shall be made in cash. The Supplemental Pension Benefit shall be distributed to a Participant, in accordance with his or her election as designated on the
Participant’s Election Form, as a single lump sum cash payment or pursuant to an optional distribution method as described below. Notwithstanding the foregoing, the Supplemental Pension Benefit shall be paid in a lump sum cash payment in the
event (i) the Participant submits an Election Form and elects a distribution in accordance with Section 4.2(a)(iii) or (ii) the Participant fails to timely complete and submit an Election Form in accordance with Section 3.2. If
the Participant so elects on his or her Election Form, he or she may receive, in lieu of the Supplemental Pension Benefit in a lump sum cash payment, an Actuarial Equivalent optional Supplemental Pension Benefit as described below. 
 Option 1. A modified Supplemental Pension Benefit payable in monthly installments during the Participant’s life ending with the last
monthly payment before death. 
 Option 2. A modified Supplemental Pension Benefit payable in monthly installments during the
Participant’s life and after his or her death payable during the life of and to his or her Beneficiary ending with the last monthly payment before the Beneficiary’s death. 
  

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 Option 3. A modified Supplemental Pension Benefit payable during the Participant’s Life
and after his death payable in an amount less than that described in Option 2, provided that such lesser amount is a multiple of $10. 
  

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 ARTICLE V 
 VESTING 
 5.1 Vesting. The Participant shall have a 100 percent
(100%) vested nonforfeitable right to his or her Supplemental Pension Benefit upon the earlier of the attainment of his or her Normal Retirement Age or upon completion of five Years of Accredited Service. 
 5.2 Automatic Vesting. Notwithstanding anything to the contrary contained in Section 5.1 herein, the Participant shall become 100% vested in his
or her Supplemental Pension Benefit upon the occurrence of any of the following events: 
  

	 	(a)	a Change in Control; or 

  

	 	(b)	the Disability or death of the Participant. 

  

 12 

 ARTICLE VI 
 DEATH AND DISABILITY BENEFITS 
 6.1 Distribution upon Death. In
the event a Participant dies prior to commencing receipt of his or her Supplemental Pension Benefit, the Participant’s surviving spouse, or his or her designated Beneficiary if the Participant dies without a spouse, shall receive a Supplemental
Pension Benefit equal to 50% of the single lump-sum value of the Participant’s Supplemental Pension Benefit as determined under Sections 4.2 herein. 
 6.2 Designating a Beneficiary. A Participant, who is either unmarried or does not have a surviving spouse, may designate any individual to be his or her Beneficiary for purposes of a distribution
of death benefits under Section 6.1 herein by providing the Company written notification of the designation of such Beneficiary; provided that, a written notification designating a beneficiary under the Restoration Plan can not be modified or
amended more than once in a six (6) month period. If the Participant dies without a spouse and has not designated a Beneficiary, the death benefit described in Section 6.1 herein, will be paid to his or her estate. 
 6.3 Distribution upon Disability. The Participant shall designate on his or her Election Form whether in the event he or she undergoes a Disability
he or she will receive a distribution (i) at the time he or she undergoes a Disability, in which case the benefit shall be determined in accordance with this Section 6.3 or (ii) upon attaining Normal Retirement Age, in which case the
benefit shall be determined in accordance with Section 4.2(a). 
  

	 	(a)	A Participant who has not reached his Normal Retirement Age but who has completed at least 15 years of Accredited Service and incurs a Disability shall be eligible to
receive a benefit in accordance with the timing of Disability distribution election as designated on his or her Election Form. 

  

	 	(b)	 A benefit payable pursuant to paragraph (a) above shall be the lesser of (i) 25% of the Participant’s Average Final Compensation or
(ii) his Normal Supplemental Pension Benefit determined in accordance with Section 4.2(a), except that for the purpose of this clause (ii), (A) the Participant’s Average Final Compensation shall be determined by assuming that his
Compensation continued during the period of Disability at the rate at which Average Final Compensation is in effect on the date of Separation

  

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from Service, and (B) Accredited Service shall continue to be granted during the period of his or her Disability in accordance with the Participant’s normal work schedule until the
earliest of the Participant’s recovery from Disability, Normal Retirement Age or death. 

  

	 	(c)	The benefit payable due to Disability commencing on or after the Participant’s eligibility for early retirement pursuant to Section 4.2(b) shall be the
greater of (i) the amount determined in accordance with paragraph (b) above or (ii) the amount of his early retirement income determined in accordance with Section 4.2(b). 

  

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 ARTICLE VII 
 SPECIAL DISTRIBUTION PROCEDURES 
 7.1 Liquidation of the
Company. In the event of the liquidation of the Company, or the sale of substantially all its assets, or its merger or consolidation, the Company may make any alterations in the provisions of the Restoration Plan for distributing any
Supplemental Pension Benefits that have been accrued by Eligible Employees of the Company. Any modification or alterations made pursuant to this Section 7.1 shall be appropriate and equitable under the circumstances, will be consistent with the
spirit and purposes of the Restoration Plan and will comply with Section 409A of the Code. 
  

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 ARTICLE VIII 
 PLAN ADMINISTRATION 
 8.1 Administration. The Restoration Plan
shall be administered as an unfunded deferred compensation plan not intended to meet the qualification requirements of Code Section 401. 
 8.2 Plan Committee. The Restoration Plan shall be administered by a Committee, to be appointed by the Board of Directors. The Committee is authorized to interpret the Restoration Plan and, from time to time, may adopt such rules and
regulations, consistent with the provisions of the Restoration Plan, as it may deem advisable to carry out the purposes of the Restoration Plan. 
 The Committee will operate and administer the Restoration Plan and shall have all powers necessary to accomplish that purpose, including, but not limited to, the discretionary authority to interpret the
Restoration Plan; the discretionary authority to determine all questions relating to the rights and status of Eligible Employees, Participants and Beneficiaries; the discretionary authority to make such rules and regulations for the administration
of the Restoration Plan as are not inconsistent with the terms and provisions hereof; and all other authority and power relating to the administration of the Restoration Plan not expressly reserved by the Restoration Plan to the Company. All
decisions made by the Committee shall be final, conclusive and binding on all parties with an interest in the Restoration Plan. 
 Without limiting the powers set forth herein, the Committee shall have the power to: (i) with the consent of the Company’s members, change or waive in writing any requirements of the Restoration Plan to conform with law, including
but not limited to Section 409A of the Code, or to meet special circumstances not anticipated or covered in the Restoration Plan; (ii) determine the times and places for holding meetings of the Committee and the notice to be given of such
meetings; (iii) employ or otherwise retain such agents and assistants, counsel (who may be of counsel to the Company herein), and clerical and other service providers as the Committee may require in carrying out the provisions of the
Restoration Plan; (iv) authorize one or more of their number, or any agent thereof, to execute or deliver any instrument on behalf of the Committee; and (v) make determinations regarding eligibility to participate in the Restoration Plan.

 The members of the Committee, the Company, and the Company’s directors and officers shall be entitled to rely upon all
valuations, certificates and reports furnished by any

  

 16 

 
funding agent, upon all certificates and reports made by an accountant, and upon all opinions given by any legal counsel selected or approved by the Committee. The members of the Committee, along
with the Company and its officers and directors shall, except as otherwise provided by law, be fully protected in respect of any action taken or suffered by them in good faith in reliance upon any such valuations, certificates, reports, opinions or
other advice of a funding agent or any such accountant or counsel. 
 8.3 Payment of Expenses. All costs and expenses incurred in
administering the Restoration Plan shall be paid by the Company or charged against Participants’ accounts, as determined by the Company acting in its sole discretion. 
  

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 ARTICLE IX 
 AMENDMENT AND TERMINATION 
 9.1 Amendment. The Company hereby
reserves the right, at any time and from time to time, by written action of the Company’s members (or by written action of an officer or officers of the Company to whom such Company’s members have delegated the authority to amend the
Restoration Plan), to amend, modify or alter any or all of the provisions of the Restoration Plan without the consent of any other Employer or any Eligible Employee, Participant, Beneficiary, or other person; however, no amendment shall operate
retroactively so as to affect adversely any rights to which a Participant may be entitled under the provisions of the Restoration Plan as in effect prior to such action except to the extent required by law or to avoid the imposition of a penalty tax
under the Code. Any such amendment, modification or alteration shall be expressed in an instrument executed by an authorized officer or officers of the Company and shall become effective as of the date designated in such instrument. A copy of any
amendment made to the Restoration Plan shall be delivered to all Employers, if any, as soon as practicable following its adoption. 
 9.2
Termination. The Company reserves the right to suspend, discontinue or terminate the Restoration Plan, at any time, in whole or in part, by written action of its officers, effective as of the date designated in such written action, and
without the consent of any other Employer, or any Eligible Employee, Participant, Beneficiary, or other person, provided that any such termination shall comply with Section 409A of the Code. A copy of such written action to suspend, discontinue
or terminate the Restoration Plan shall be delivered to all Employers, if any, immediately following its adoption. 
 Any
Employer may terminate its participation in the Restoration Plan at any time by providing written notice thereof to the Company, signed by an officer of such Employer; however, no such termination shall operate retroactively so as to adversely
affect any rights to which a Participant may be entitled under the provisions of the Restoration Plan as in effect prior to such action, and provided further that any termination of the Restoration Plan and distributions in connection with such
termination shall comply with the requirements of Section 409A and shall be done in a manner intended to avoid any adverse tax consequences thereunder for any Participants. 
  

 18 

 ARTICLE X 
 CLAIMS PROCEDURE 
 10.1 Filing Claims. Any Participant,
Beneficiary or other individual (hereinafter, the “Claimant”) entitled to benefits under the Restoration Plan, or otherwise eligible to participate herein, shall be required to file a written claim with the Committee (or its designee)
requesting payment or distribution of such Supplemental Pension Benefits (or written confirmation of Plan eligibility, as the case may be), on such form and in such manner as the Committee shall prescribe. Unless and until an individual makes proper
application for Supplemental Plan Benefits in accordance with the rules and procedures established by the Committee, such individual shall have no right to receive any distribution from or under the Restoration Plan. The Committee (or its designee)
shall, within ninety (90) days of the receipt of the claim, furnish to such Claimant a written notice of its decision. If the Committee requires additional time to review the claim application filed by a Claimant, the Committee shall send a
written notification to the Claimant extending the initial review period an additional ninety (90) days. 
 10.2 Notification to
Claimant. If a Claimant’s application is wholly or partially denied, such notices shall be written in a manner calculated to be understood by such Claimant, and shall contain at least the following information: 
  

	 	(a)	The specific reason or reasons for such denial; 

  

	 	(b)	A specific reference to pertinent provisions of the Restoration Plan upon which such denial is based; 

  

	 	(c)	A description of any additional material or information necessary for such Claimant to perfect his or her claim, and an explanation of why such material or information
is necessary; and 

  

	 	(d)	An explanation of the claim review procedure of the Restoration Plan that describes the steps to be taken by such Claimant, if he or she wishes to submit his or her
claim for further review. 

 10.3 Review Procedure. Within sixty (60) days after the receipt of such notice from the
Committee, such Claimant, or the duly authorized representative thereof, may request, by written application to the Restoration Plan, a review by the Committee of the decision denying such claim. In connection with such review, such Claimant, or
duly authorized representative thereof, shall be entitled to receive any and all documents pertinent to the claim or its denial and shall

  

 19 

 
also be entitled to submit issues and comments in writing. The decision of the Committee upon such review shall be made promptly and not later than sixty (60) days after the receipt of such
request for review, unless special circumstances require an extension of time for processing, in which case a decision shall be rendered as soon as possible, but not later than one hundred twenty (120) days after the Committee’s receipt of
a request for review. Any such decision made upon review shall be in writing and shall include specific reasons for the decision and specific references to the pertinent provisions of the Restoration Plan on which the decision is based. 

 

 20 

 ARTICLE XI 
 MISCELLANEOUS PROVISIONS 
 11.1 Employment Relationship.
Nothing in the adoption or maintenance of the Restoration Plan shall confer on any Eligible Employee the right to continued employment with the Company (or, as applicable, an Employer) or any affiliate or subsidiary corporation thereof, or affect in
any way the right of the Company or an Employer, or such affiliate or subsidiary, to terminate such Eligible Employee’s employment at any time. Any question as to whether and when there has been a termination of a Participant’s employment,
and the cause of such termination, shall be determined by the Committee; any such determination by the Committee shall be final, binding and conclusive. 
 11.2 Facility of Payments. Whenever, in the opinion of the Committee, a person entitled to receive any payment, or installment thereof, is under a legal disability or is unable to manage his or her
financial affairs, the Committee shall have the discretionary authority to direct payments to such person’s legal representative, or to a relative or friend of such person for his or her benefit. Alternatively, the Committee may in its
discretion apply the payment for the benefit of such person in such manner as the Committee deems advisable, provided that such application of benefits is in compliance with Section 409A of the Code. Any such payment or application of benefits,
made in good faith and in accordance with the provisions of this Section 11.2, shall completely discharge any liability of the Restoration Plan, the Company, all Employers, and the Committee with respect to such payment or application of
benefits. 
 11.3 Anti-Alienation. No right, benefit or interest in the Restoration Plan shall be subject to anticipation, alienation,
sale, assignment, pledge, partition, lien, levy, encumbrance or charge; any attempt to anticipate, alienate, sell, assign, pledge, partition, place a lien upon, levy, encumber or charge the same shall be void. No such right, benefit or interest
shall be liable for or subject to the debts, contracts, liabilities, or torts of the person entitled to such benefits. If a Participant, a Participant’s spouse, or any Beneficiary should become bankrupt or attempt to anticipate, alienate, sell,
assign, pledge, encumber or charge any right to benefits under the Restoration Plan, then those rights, in the discretion of the Committee, shall cease. In this case, the Committee in its sole discretion may hold or apply the interests at issue, or
any part thereof, for the benefit of the Participant, the Participant’s spouse, or Beneficiary in such manner as the Committee in its sole discretion may deem proper. Notwithstanding the generality of the

  

 21 

 
foregoing, the Company (or an Employer, as applicable) shall have the unrestricted right to set off against or recover out of any payments or benefits due a Participant or Beneficiary, at the
time such payments or benefits otherwise would have been payable hereunder, any amounts owed or owing to the Company (or Employer) by such Participant or Beneficiary. 
 Without limiting the application of the foregoing provisions, the anti-alienation provisions of this Section 11.3 such provisions shall not apply to the creation, assignment or recognition of a right
to any benefit payable with respect to a Participant or former Participant pursuant to any domestic relations order, unless such order is determined by the Plan Administrator to be a “qualified domestic relations order” (as defined in Code
Section 414(p)) or is a domestic relations order entered before January 1, 1985 which satisfies the requirements of Internal Revenue Service Revenue Ruling 80-27. Notwithstanding anything in this Section 11.3 to the contrary, the
provisions of this Section 11.3 shall not prohibit assignments authorized by Code Section 401(a)(13) and approved by the Plan Administrator. 
 11.4 Indemnification. Each Participant, by becoming a Participant hereunder in the Restoration Plan acknowledges and agrees to indemnify and hold the Company (and, if applicable, any Employer) harmless from and against any damages,
losses and expenses (including, without limitation, litigation costs incurred by the Company (or Employer) in connection with the administration of the Restoration Plan) arising from third-party claims or disputes involving the Participant’s
Restoration Plan interest (including, without limitation, tax liens and levies, creditors’ claims, garnishment and bankruptcy proceedings, and proceedings in domestic relations court). 
 11.5 Unclaimed Interests. If the Committee shall at any time be unable to make distribution or payment of benefits hereunder to a Participant or any
Beneficiary of a Participant by reason of the fact that his or her whereabouts are unknown, the Committee shall so certify, and thereafter the Committee shall attempt to locate such missing person. In the event that such missing person is not
located with seven (7) years, then the Committee shall cause the Company to pay over to the Secretary of the State of Texas any and all amounts then owed to such person, in accordance with the Texas unclaimed funds law presently codified at
Chapter 72 of the Texas Property Code, and the Company’s obligations thereto shall thereupon be considered fully and completely discharged and satisfied. 
  

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 11.6 References to Code, Statutes and Regulations. Any and all references in the Restoration Plan to
any provision of the Code, ERISA, or any other statute, law, regulation, ruling or order shall be deemed to refer also to any successor statute, law, regulation, ruling or order. 
 11.7 Liability. The Company and its directors, officers and employees shall be free from liability, joint or several, for personal acts, omissions, and conduct, and for the acts, omissions and
conduct of duly appointed agents, in the administration of the Restoration Plan, except to the extent that the effects and consequences of such personal acts, omissions or conduct result from willful misconduct. 
 11.8 Company as Agent for Employers. Each corporation which becomes a participating Employer hereunder, by so doing, shall be deemed to have
appointed the Company its agent and attorney-in-fact to exercise on its behalf all of the powers and authority hereby conferred upon the Company under the Restoration Plan including, without limitation, the power and authority to amend and terminate
the Restoration Plan. The Company’s power and authority under the Restoration Plan shall continue, regardless of whether an Employer terminates its participation in the Restoration Plan. 
 11.9 Governing Law; Severability. The Restoration Plan shall be construed according to the laws of the State of Texas, and all provisions hereof
shall be administered according to the laws of that State, except to the extent preempted by federal law (including, without limitation, ERISA). In the event that any one or more of the provisions of the Restoration Plan shall for any reason be held
to be invalid, illegal, or unenforceable, such invalidity, illegality or unenforceability shall not affect any other provision of the Restoration Plan; rather, the Restoration Plan shall be construed as if such invalid, illegal, or unenforceable
provisions had never been contained herein, and there shall be deemed substituted such other provision as will most nearly accomplish the intent of the parties to the extent permitted by applicable law. 
 11.10 Taxes. The Employer of a Participant shall be entitled to withhold and remit any federal, state and local taxes from any distribution made
hereunder as such Employer believes necessary, appropriate, or required by relevant law, regulation or ruling. 
 11.11 Tax Consequences of
Participation. While the Restoration Plan is designed to provide Eligible Employees the opportunity to defer payment of Compensation on a tax-deferred basis, the Company makes no representation, warranty or guarantee of any federal, state or
local tax consequences of participation in the Restoration Plan to any Participant or Beneficiary (or personal representative or attorney-in-fact for such Participant or Beneficiary). 
  

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 IN WITNESS WHEREOF, KRATON Polymers U.S. LLC, by action of its Members, has duly adopted the
amended and restated KRATON Polymers U.S. LLC Pension Benefit Restoration Plan, this 18th day of December, 2008. 
  

			
	KRATON Polymers U.S. LLC
		
	By	 	 
		
	Title 	 	 

  

 24Kraton Polymers LLC Executive Deferred Compensation Plan dated December 31, 2008

 Exhibit 10.30 
 KRATON POLYMERS LLC 
 EXECUTIVE DEFERRED COMPENSATION
PLAN 
 Amended and Restated as of December 31, 2008 
 The objective of the KRATON Polymers LLC Executive Deferred Compensation Plan is to permit a select group of employees to defer a portion of
their Annual Bonus. 
 This Plan shall become effective for deferrals of compensation attributable to services rendered on or
after January 1, 2006. 
 ARTICLE I 
 Definitions 
 Section 1.1. “Additions” means all amounts credited
to the Participant’s Deferred Compensation Account pursuant to Section 4.2 hereof. 
 Section 1.2. “Annual
Bonus,” with respect to a Bonus Period, and with respect to a Participant, means the annual performance based bonus payment, if any, payable to such Participant in accordance with the terms and conditions, including but not limited to
performance criteria, set forth in KRATON’s Annual Incentive Plan (or any successor plan), before any reduction pursuant to this Plan. 
 Section 1.3. “Beneficiary” means any person (including but not limited to any trust, estate, fiduciary, corporation, or foundation, but excluding the Participant) designated by the
Participant, in a written document delivered to the Company (the last of which to be delivered shall be the effective designation in the event of more than one such designation), to receive any benefit under this Plan after the death of the
Participant, all in accordance with the provisions hereof. In the event the Participant fails to designate a beneficiary or if no such designated beneficiary is living upon the death of the Participant or if, for any reason, such designation shall
be legally ineffective, then in any of said events the amounts which would have been paid to the designated living beneficiary shall be paid to the trustee of the Participant’s testamentary trust, and if none, to the personal representative of
the estate of the Participant. 
 Section 1.4. “Board” means the Board of Directors of TJ Chemical. 

Section 1.5. “Bonus Period” means any twelve-month period commencing on January 1 and ending on the following
December 31 or such other period of such duration and starting at such times as the Committee may from time to time determine in accordance with Section 409A. 
 Section 1.6. “Change in Control” shall mean the occurrence of any of the following events: (i) any sale, lease, exchange or other transfer (in one transaction or a series of related
transactions) of all of the assets of TJ Chemical to any Person or group of related persons for purposes of Section 13(d) of the Exchange Act (a “Group”), together with any affiliates thereof other than to TPG III Polymer Holdings
LLC, TPG IV Polymer Holdings LLC or J.P. Morgan Partners L.P. or any of their affiliates (hereinafter the “Sponsors”); (ii) the complete

 
liquidation or dissolution of the Company (iii) (A) any Person or Group (other than the Sponsors) shall become the beneficial owner (within the meaning of Section 13(d) of the
Exchange Act), directly or indirectly, of Units (as defined in the TJ Chemical LLC Agreement) representing more than 40% of the aggregate outstanding Voting Units (as defined in the TJ Chemical LLC Agreement) of TJ Chemical and such Person or Group
actually has the power to vote such Units in any such election and (B) the Sponsors beneficially own (within the meaning of Section 13(d) of the Exchange Act), directly or indirectly, in the aggregate a lesser percentage of the Voting
Units of TJ Chemical than such other Person or Group; (iv) the replacement of a majority of the Board of the Company over a two-year period from the directors who constituted the Board at the beginning of such period, and such replacement shall
not have been approved by a vote of at least a majority of the Board then still in office who either were members of such Board at the beginning of such period or whose election as a member of such Board was previously so approved or who were
nominated by, or designees of, the Sponsors; or (v) a merger or consolidation of TJ Chemical with another entity in which holders of the Membership Units of TJ Chemical immediately prior to the consummation of the transaction hold, directly or
indirectly, immediately following the consummation of the transaction, less than 50% of the common equity interest in the surviving corporation in such transaction and the Sponsors do not hold a sufficient amount of Voting Units (or similar
securities) to elect a majority of the surviving entity’s board of directors. Notwithstanding the foregoing, a Change in Control shall not occur unless a “Change in the Ownership or Effective Control of a Corporation or in the Ownership of
a Substantial Portion of the Assets of a Corporation” under Treasury Department Final Regulation 1.409A-3(i)(5), or any successor thereto, would also occur. 
 Section 1.7. “Code” means the Internal Revenue Code of 1986, as amended. 
 Section 1.8. “Committee” means the Compensation Committee of the Board or of the Board of Directors of KRATON, as determined by the Board or, in the absence of such a committee, the Board. 
 Section 1.9. “Company” means KRATON and its Subsidiaries. 
 Section 1.10. “Deferral Amount” means, with respect to a Participant, the portion of the Annual Bonus which is deferred by a
Participant under Section 3.1 of this Plan. 
 Section 1.11. “Deferral Date” means a
date set by the Committee that shall be no later than (i) six months before the end of the Bonus Period to which the Deferral Amount relates in the case of some or all of an Annual Bonus which the Committee determines qualifies as
“performance based compensation” within the meaning of Section 409A or (ii) December 31st
 of the year preceding the year in which the Bonus Period begins in the case of some or all of an Annual Bonus which the Committee determines does not qualify as “performance based
compensation”. 
 Section 1.12. “Deferral Election Form” means a form indicating the amount of the Annual
Bonus, if any, deferred by a Participant with respect to a Bonus Period, in such form as the Committee shall from time to time approve, which shall be executed by such Participant and delivered to KRATON on or before the Deferral Date for such Bonus
Period. 
  

 2 

 Section 1.13. “Deferred Compensation Account” means a bookkeeping account
maintained by KRATON for each Participant which reflects accumulated Deferral Amounts of the Participant, plus Additions thereto, calculated as set forth in Article IV hereof and less any payments made therefrom. 
 Section 1.14. “Employee” means an employee of the Company. 
 Section 1.15. “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 Section 1.16. “Fair Value” of a Membership Unit (or other equity security), as of any date of reference, shall mean the fair
value of such Membership Unit (or other equity security), as determined in good faith by the Board in accordance with the operating agreement of TJ Chemical (or in the case of equity in an entity other than TJ Chemical, in accordance with the
applicable documents of that entity). 
 Section 1.17. “KRATON” means KRATON Polymers LLC, a Delaware limited
liability company. 
 Section 1.18. “Management LLC” means KRATON Management LLC, a Delaware limited liability
company. 
 Section 1.19. “Management LLC Agreement” means the limited liability company operating agreement of
Management LLC, as amended from time to time. 
 Section 1.20. “Management LLC Membership Units” means the
“membership units” of Management LLC, as provided in the Management LLC Agreement. 
 Section 1.21.
“Membership Unit” shall mean a “membership unit” of TJ Chemical, as provided in the TJ Chemical LLC Agreement, subject to adjustment or substitution as provided in Section 4.3 of this Plan. 
 Section 1.22. “Participant” means any Employee selected by the Committee to participate in this Plan in accordance with
Article II hereof. 
 Section 1.23. “Payment Date” means, with respect to a Participant’s Deferred
Compensation Account, a date not less than 30 days but not more than 90 days following the earlier of (i) a termination of such Participant’s employment for any reason, or (ii) a Change in Control; provided, that,
notwithstanding the foregoing, if payment under the plan is due as a result of the Participant’s termination of employment and at the time of such termination (i) the Company is a publicly traded company on an established securities market
and (ii) the Participant is a Specified Employee, then “Payment Date” means the first business day of the seventh month following such termination of employment (or, if earlier, the date of the Participant’s death). A
“termination of employment” shall not be deemed to have occurred for purposes of this Plan unless such termination would constitute a “separation from service” for purposes of Section 409A. 
  

 3 

 Section 1.24. “Person” means an individual, partnership, corporation, limited
liability company, unincorporated organization, trust or joint venture, or a governmental agency or political subdivision thereof. 
 Section 1.25. “Phantom Unit” shall mean a bookkeeping unit representing the Fair Value of one Membership Unit. 
 Section 1.26. “Plan” means this KRATON Polymers LLC Executive Deferred Compensation Plan. 
 Section 1.27. “Section 409A” means Section 409A of the Internal Revenue Code of 1986, as amended, including the regulations promulgated and guidance issued thereunder. 
 Section 1.28. “Specified Employee” shall have the meaning provided in Treasury Regulation 1.409A-1 and be determined in
accordance with Company policy, consistent with the requirements of Section 409A. 
 Section 1.29.
“Subsidiaries” shall mean with respect to KRATON, any of its direct or indirect subsidiaries. 
 Section 1.30.
“TJ Chemical” means TJ Chemical Holdings LLC, a Delaware limited liability company. 
 Section 1.31. “TJ
Chemical LLC Agreement” means the limited liability company operating agreement of TJ Chemical, as amended from time to time. 
 ARTICLE II 
 Eligibility 
 With respect to each Bonus Period, the Committee may, in its sole discretion and subject to applicable law, determine which Employees, if any, shall be permitted to defer all or a portion of their Annual
Bonus with respect to such Bonus Period pursuant to this Plan. Selection as a Participant with respect to one Bonus Period does not guarantee selection as a Participant with respect to any other Bonus Period. 
 ARTICLE III 
 Deferral of Compensation 
 Section 3.1. With respect to a Bonus Period, the Deferral Amount of a Participant
shall equal the portion of such Participant’s Annual Bonus deferred pursuant to the Deferral Election Form executed by such Participant and delivered to KRATON prior to the Deferral Date for such Bonus Period; provided, however,
that in no event shall such Participant’s Deferral Amount for a Bonus Period exceed 50% of such Participant’s Annual Bonus for such Bonus Period, unless the Committee, in its sole discretion, determines otherwise with respect to such
Participant. 
  

 4 

 Section 3.2. The Deferral Amount shall be credited to the Participant’s Deferred
Compensation Account on the date that Annual Bonuses are paid generally with respect to the applicable Bonus Period in accordance with Article IV hereto and the amount of Annual Bonus payable to such Participant shall be reduced by the amount so
credited. 
 ARTICLE IV 
 Phantom Units 
 Section 4.1. With respect to each Bonus Period, as of the
date that Annual Bonuses are generally paid with respect to such Bonus Period, KRATON will credit to a Participant’s Deferred Compensation Account a number of Phantom Units equal in value to the dollar amount of the Deferral Amount for such
Bonus Period. For this purpose, each Phantom Unit shall have a value equal to the Fair Value of a Membership Unit as of the last day of such Bonus Period. The Participants shall have no voting rights with respect to any Phantom Units credited to
their Deferred Compensation Account pursuant to this Plan. 
 Section 4.2. In the event cash dividends are paid on
Membership Units, the Committee in its sole discretion will credit the Deferred Compensation Account with (i) a cash amount, provided that such cash amount will be increased by a rate of return equal to a money market or other short-term fixed
income rate of return as determined by the Committee, or (ii) a number of additional Phantom Units, in each case having an aggregate value equal to the amount of cash dividends paid on such number of Membership Units as is equal to the number
of Phantom Units credited to such Participant’s Deferred Compensation Account as of the relevant record date for such dividends. For this purpose, each Phantom Unit shall have a value equal to the Fair Value of a Membership Unit as of the date
of payment of such dividends and such additional Phantom Units shall be credited to the Deferred Compensation Account of Participants as of the same date. 
 Section 4.3. The Committee shall be entitled, but not required, to make such adjustments to the Deferred Compensation Accounts of Participants and the number of Phantom Units credited thereto as it
may deem necessary or appropriate in its sole and absolute discretion to prevent dilution or enlargement of the benefits granted to Participants hereunder in the event of any stock dividend or split, subdivision or consolidation of Membership Units
or any recapitalization, reorganization, merger, consolidation, spin-off, exchange of shares or other similar corporate change. 
 ARTICLE V 
 Maximum Phantom Units 
 The Committee shall have the discretion to set the maximum aggregate number of Phantom Units that will be available for allocation to the Participants’ Deferred Compensation Accounts. The Committee
has reserved a maximum amount of two million Phantom Units for the Plan, which limit shall not apply to Additions denominated in Phantom Units. In the event that, on any Deferral Date, the aggregate Deferral Amounts with respect to the Annual Bonus
being deferred would cause the sum of all the Phantom Units to be credited to all the

  

 5 

 
Participants’ Deferred Compensation Accounts to exceed the maximum number of Phantom Units set by the Committee, such Deferral Amount shall be reduced on a pro-rata basis across all
Participants deferring such Annual Bonus and the difference between the Deferral Amount before and after this reduction will not be deferred into each Participant’s Deferred Compensation Account and will be refunded immediately (and in no event
later than 10 business days following the date the Annual Bonus would otherwise have been paid) to such Participant in cash and there shall be no further deferral under the Plan. 
 ARTICLE VI 
 Vesting of Deferral Amounts 
 Except as otherwise provided, the Phantom Units, including any Additions, credited to a Participant’s Deferred Compensation Account
shall be immediately vested. 
 ARTICLE VII 
 Payment of Deferral Amounts; Compliance with LLC Agreement 
 Section 7.1. No
payments will be made to a Participant or a Beneficiary under this Plan prior to the Payment Date. Except as otherwise provided herein, upon a Participant’s Payment Date, such Participant (or such Participant’s Beneficiary, if applicable)
shall be paid out his Deferred Compensation Account with (i) a number of Membership Units equal to the number of Phantom Units (including any Additions thereto) credited to such Participant’s Deferred Compensation Account as of the date
that is the earlier to occur of a Change in Control or his termination of employment; provided, that such payout can be made with an equal number of Management LLC Membership Units, as may be determined by the Committee in its discretion and
(ii) a cash payment for any notional cash amounts, if any, credited to such Participant’s Deferred Compensation Account as of the date that is the earlier to occur of a Change in Control or his termination of employment, as a result of any
cash dividends paid on Membership Units. 
 Section 7.2. Notwithstanding the foregoing, any payments required to be made to
a Participant or his Beneficiary pursuant to this Article VII as of a given date, shall be made as soon as practicable after the payment amount is determined, provided, however, that although the Committee intends to make payments to the
Participants in Membership Units or Management LLC Membership Units, it reserves the ability to make payments to the Participants in cash (based on the Fair Value of the Phantom Units credited to such Participant’s Deferred Compensation Account
as of the Payment Date), rather than Membership Units or Management LLC Membership Units, if the payment in Membership Units or Management LLC Units would result in a violation of applicable law or require the Company, TJ Chemical or any of their
affiliates to register any securities under any securities laws. 
 Section 7.3. Notwithstanding anything else herein,
Membership Units (or Management LLC Membership Units, as applicable) will not be certificated upon payment of a Deferred Compensation Account, unless otherwise determined by the Committee. Each of the Company, TJ Chemical and the Participant shall
comply with any such law, regulation or requirement, including without limitation requirements imposed by the TJ Chemical LLC Agreement or the Management LLC Agreement, as applicable. In addition to the terms and

  

 6 

 
conditions provided herein, the Committee may require that a Participant make such reasonable covenants, agreements and representations as the Committee, in its sole discretion, deems advisable
in order to comply with any such laws, regulations or requirements (including, without limitation, any requirements imposed by the TJ Chemical LLC Agreement or the Management LLC Agreement). In addition, upon the payout of a Participant’s
Deferred Compensation Account, TJ Chemical and/or Management LLC, as applicable, shall establish a Capital Account (as defined in the TJ Chemical LLC Agreement or Management LLC Agreement, as applicable) in the name of the Participant, credit such
new or existing account with an amount equal to the Fair Value of the Phantom Units credited to such Participant’s Deferred Compensation Account as of the date that is the earlier to occur of a Change in Control or his termination of
employment, and issue Membership Units or Management Membership Units registered on its books and in its records in the name of the Participant as soon as practicable following the date that is the earlier to occur of a Change in Control or his
termination of employment, and such Participant shall be entitled to the profits and losses of TJ Chemical or Management LLC, as applicable, attributable to the Membership Units or Management LLC Membership Units, as applicable, as determined under
the TJ Chemical LLC Agreement or Management LLC Agreement, respectively, on a going-forward basis as of the date that is the earlier to occur of a Change in Control or his termination of employment. Notwithstanding the foregoing, the issuance of any
Membership Unit or Management LLC Membership Unit shall be subject to and conditioned upon Executive’s execution and delivery of the TJ Chemical LLC Agreement or Management LLC Agreement, as applicable, within 30 days after the date that is the
earlier to occur of a Change in Control or his termination of employment, and any payment that would otherwise be made within such 30-day period shall be paid at the expiration of such 30-day period. 
 ARTICLE VIII 
 Administration 
 Section 8.1. This Plan shall be administered by the Committee. The Committee shall administer
this Plan in accordance with its terms and shall have all powers necessary to carry out the provisions of this Plan. 
 Section 8.2. The Committee shall, with respect to the general management of this Plan, have the sole, final and absolute right to reconcile any inconsistency in this Plan, to interpret and construe the provisions of this Plan in all
particulars in such manner and to such extent as it deems proper and to take all action and make all decisions and determinations necessary under this Plan or in connection with its administration, interpretation and application. Any interpretation
or construction placed upon any term or provision of this Plan or in connection with its administration, interpretation and application by the Committee, any decision of the Committee with regard to the eligibility of an Employee to become a
Participant, the rights of a Participant, former Participant or Beneficiary or any other person, any reconciliation of an inconsistency in this Plan made by the Committee and any other action, determination or decision whatsoever taken by the
Committee, shall be final, conclusive and binding upon all persons or parties interested or concerned in this Plan. No member of the Committee shall be liable to any Participant or any other person for any action, omission or determination relating
to this Plan. To the full extent permitted by law, the Company shall indemnify and hold harmless each person made or threatened to be made a party to any civil or criminal action or proceeding by reason of the fact that such person, or such
person’s testator or intestate, is or was a member of the Committee. 
  

 7 

 ARTICLE IX 
 Miscellaneous 
 Section 9.1. KRATON shall maintain a
record of each Participant’s accumulated Deferral Amounts and Additions thereto by means of a Deferred Compensation Account. 
 Section 9.2. If a Participant becomes entitled to a distribution of benefits under this Plan, and if at such time the Participant has any outstanding debt, obligation, or other liability representing an amount owing to the Company,
then the Company, upon a determination by the Committee, and to the extent permitted by applicable law, may offset such amount so owing against the amount of benefits otherwise distributable. Such determination shall be made by the Committee.

 Section 9.3. This Plan shall be unfunded and shall not be an employee benefit plan within the meaning of the Employee
Retirement Income Security Act of 1974, as amended. Payments to a Participant under this Plan shall be made from the general assets of KRATON and to the extent that any person acquires the right to receive payment of benefits from KRATON under this
Plan, such right shall be no greater than the rights of any unsecured general creditor of KRATON. No Participant shall have any right, title, claim or interest in or with respect to any specific assets of KRATON in connection with the
Participant’s participation in this Plan, including with respect to any Membership Units until such units are distributed pursuant to this Plan. 
 Section 9.4. Any amounts deferred or payable under this Plan shall not be taken into account in determining any other benefits under any other Company plan unless, and to the extent, such plan
expressly includes such amounts. 
 Section 9.5. Neither the Participant, his Beneficiary, heirs, assigns, trust, estate,
nor any other person claiming through or under the Participant shall have any right to commute, encumber or dispose of the right to receive payments hereunder, all of which payments and the right thereto are expressly declared to be non-assignable
and any such attempt at assignment shall be void and of no effect. 
 Section 9.6. Nothing contained in this Plan shall
confer upon any Participant any right with respect to the continuation of such Participant’s employment by the Company or interfere in any way with the right of the Company at any time to terminate such employment or to increase or decrease the
base salary or other compensation of the Participant. 
 Section 9.7. The Company shall, to the extent permitted by law,
have the right to deduct from any payments of any kind with respect to the benefit otherwise due to the Participant any foreign, federal, state or local taxes of any kind required by law to be withheld from such payments. 
  

 8 

 Section 9.8. This Plan and all rights under this Plan shall be governed by, and shall
be interpreted in accordance with, the laws of the State of Delaware without reference to its principles of conflicts of law. In the event any provision of this Plan is held invalid, void or unenforceable, the same shall not affect, in any respect
whatsoever, the validity of any other provision of this Plan. 
 ARTICLE X 
 Amendment and Termination 
 Section 10.1. The Board shall have full power and authority to amend, modify or alter this Plan in whole or in part; provided, however, that, except to the extent permitted by Section 10.3, any such modification,
alteration or amendment shall not terminate or diminish any rights or benefits accrued by a Participant under this Plan as of the effective date of any such modification, alteration or amendment, or cause this Plan to fail to comply with, or cause a
Participant or Beneficiary to be subject to a tax under the provisions of Section 409A. 
 Section 10.2. The Board
shall have full power and authority to terminate this Plan in whole or in part; provided, however, that upon such termination, the Committee shall, with respect to any Phantom Units affected by such termination, pay out to a
Participant, the Fair Value of such Phantom Units (in Membership Units, Management Membership Units or cash, as described in Sections 7.1 and 7.2 of this Plan, as determined by the Committee in its discretion), determined as of the date of such
termination, except that no acceleration of payments shall be made to the extent such acceleration would cause this Plan to fail to comply with, or cause a Participant or Beneficiary to be subject to a tax under, the provisions of Section 409A.

 Section 10.3 If any provision of this Plan (or any award of compensation or benefits provided under this Plan) would
cause Participant or Beneficiary to incur any additional tax or interest under Section 409A, the Company shall use reasonable efforts to reform such provision to comply with Section 409A and agrees to maintain, to the maximum extent
practicable without violating Section 409A, the original intent and economic benefit to the Participant or Beneficiary of the applicable provision; provided, that nothing herein shall require the Company to provide the Participant or
Beneficiary with any gross-up for any tax, interest or penalty incurred by the Participant or Beneficiary under Section 409A. 
  

 9

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