Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Establishment of Business Performance Targets for 2013 Cash Incentive Plan. On January 16, 2013, the Compensation Committee of Kraton Performance Polymers, Inc. approved the structure of the 2013 cash incentive program and the 2013 business performance targets under the Kraton Performance Polymers Inc. 2013 Cash Incentive Plan for the Kraton Leadership Team, which includes our named executive officers. Target bonus amounts as a multiple of base salary for each executive and personal performance targets (which will be comprised of a number of unique, individual performance measures within the executive's area of management or control) will be established at a subsequent Compensation Committee Meeting and disclosed in an amendment to this Current Report on Form 8-K.

The business performance targets for 2013 are comprised of three performance measures, each of which has been assigned an individual weighting by the Committee: achievement of adjusted EBITDA (EBITDA adjusted for certain non-cash, unusual or nonrecurring items) (35%); achievement of operating cash flow (30%); and achievement of adjusted EBITDA at estimated current replacement cost (adjusted EBITDA net of the impact of the spread between the first-in first-out basis of accounting, under which we report our financial results, and the estimated current replacement cost basis of valuing our inventory and cost of goods sold) (35%).

The Committee has established threshold, target and stretch goals for each of the business performance targets and will establish such goals for personal performance targets, which in each case, if achieved, will provide a bonus multiplier ranging from 0.5 to 2.0. Business performance targets will account for 75% of the cash incentive payment, and personal performance targets will account for 25%. The cash incentive payment for any given named executive officer will be equal to:

(0.75 x Business Factor) + (0.25 x Personal Factor) = Total Annual Cash Incentive

Any such bonuses will be paid in cash, and the Company expects that such payments, if any, will be made in first quarter 2014.