Confirmation Deed - Citibank, N.A. London Branch



 Exhibit 10.7 
 EXECUTION VERSION 
 31 December 2008 
 CONFIRMATION DEED 
 between 

 CONSTAR INTERNATIONAL U.K. LIMITED 
 as Chargor 
 and 
 CITIBANK, N.A. LONDON BRANCH 
 as Security Trustee 
 WEIL, GOTSHAL & MANGES 
 One South Place London EC2M 2WG 
 Tel: +44 (0) 20 7903 1000 Fax: +44 (0) 20 7903 0990 
 www.weil.com 







 TABLE OF CONTENTS 
  


					
	 	  	 	  	Page
	 1
	  	INTERPRETATION	  	2
			
	 2
	  	ACKNOWLEDGEMENT AND CONFIRMATIONS	  	3
			
	 3
	  	COSTS AND EXPENSES	  	3
			
	 4
	  	SERVICE OF PROCESS	  	3
			
	 5
	  	NOTICES	  	4
			
	 6
	  	COUNTERPARTS	  	3
			
	 7
	  	GOVERNING LAW	  	3
			
	 8
	  	JURISDICTION	  	3
		
	 THE SCHEDULE - THE OBLIGORS
	  	5
		
	 SIGNATORIES
	  	4








 THIS CONFIRMATION DEED (this “Deed”) is made as a deed on the 31st day of December 2008 between
the following parties: 
  

	(1)	CONSTAR INTERNATIONAL U.K. LIMITED, a company incorporated under the laws of England and Wales with registered number 02407933, in its capacity as Chargor under the New
Credit Agreement (as defined below) (“Chargor”); and 

  

	(2)	CITIBANK, N.A. LONDON BRANCH, acting as trustee for the Secured Parties (together with its successors and assigns, the “Security Trustee”) pursuant to the
terms of the Security Trust Deed (“UK Security Trust Deed”); and 

 WHEREAS 
  

	(A)	The Chargor, as a guarantor, and other parties entered into a Credit Agreement dated as of February 11, 2005 among, inter alios, Constar International Inc. (the
“Borrower”), the lenders party thereto from time to time and the Administrative Agent (the “Existing Credit Agreement”), pursuant to which loans and other extensions of credit were made available to the Borrower and
the Chargor agreed to guarantee the obligations of the Borrower and other obligors under the Existing Credit Agreement. 

  

	(B)	It was a condition to the effectiveness of the Existing Credit Agreement that the Chargor deliver certain security in respect of the Grantor’s obligations under the
Existing Credit Agreement and the other Loan Documents (as defined in the Existing Credit Agreement). 

  

	(C)	The Chargor executed and delivered a debenture dated 11 February 2005 (the “UK Debenture”) to CITIBANK, N.A., LONDON BRANCH, pursuant to which the
Chargor granted a first priority security interest in certain equity interests to the Secured Parties (as defined in the Existing Credit Agreement as security for its obligations under the Existing Credit Agreement. 

  

	(D)	On or about 31 December 2008, the Borrower and the other Obligors under the Existing Credit Agreement will refinance (the “Refinancing”) their
obligations under the Existing Credit Agreement with a Senior Secured Super-Priority Debtor in Possession and Exit Credit Agreement among the Borrower, the lenders party thereto from time to time, and the Administrative Agent (the “New
Credit Agreement”). 

  

	(E)	In connection with the Refinancing the Chargor and the Security Trustee wish to confirm that it is their intention that the security interests granted pursuant to the UK
Debenture to secure the Existing Credit Agreement will continue to secure the Obligations under the New Credit Agreement. 

  

	(F)	Constar International U.K. Limited as Chargor and Citibank N.A., London Branch as Security Trustee, intend this Deed to, and it shall, take effect as a deed.


  

	(G)	Citibank N.A., London Branch as Security Trustee holds the benefit of this Deed on trust for the Secured Parties in accordance with the terms of the UK Security Trust Deed.









 IT IS AGREED as follows: 
  

	1	INTERPRETATION 

 1.1 Definitions In this Deed capitalized
terms used but not defined herein have the meanings assigned to such terms in the New Credit Agreement. 
 1.2 Interpretation 
  

	(a)	Unless expressly defined in this Deed, capitalised terms defined in the New Credit Agreement have the same meanings in this Deed; 

  

	(b)	the expressions “hereof, herein, hereunder” and similar expressions shall be construed as references to this Deed as a whole (including the Schedule) and shall not
be limited to the particular clause or provision in which the relevant expression appears, and references to this Deed and all like indications shall include references to this Deed as supplemented by any other agreement or instrument supplementing
or amending this Deed; 

  

	(c)	the word “including” when used in this Deed means “including without limitation”; 

  

	(d)	references to a “person” shall be construed as a reference to any person, firm, company, corporation, government, state or agency of a state or any association or
partnership (whether or not having separate legal personality) of two or more of the foregoing; 

  

	(e)	references to any of the Loan Documents and any other agreement or instrument shall be construed as a reference to the same as amended, varied, restated, extended,
supplemented or novated from time to time (including, where relevant, by any accession agreement); 

  

	(f)	unless otherwise specified, references to Clauses and the Schedule are references to, respectively, clauses of and the schedule to this Deed; 

  

	(g)	words importing the singular shall include the plural and vice versa; 

  

	(h)	references (by whatever term, including by name) to the Loan Parties and the Security Trustee shall, where relevant and subject as otherwise provided in this Deed, be deemed
to be references to or to include, as appropriate, their respective successors, replacements and assigns, transferees and substitutes permitted by the terms of the relevant Loan Documents; 

  

	(i)	the headings in this Deed are for convenience only and shall be ignored in construing this Deed; and 

  

	(j)	all references to statutes and other legislation include all re-enactments and amendments of those statutes and that legislation. 

 1.3 Third Party Rights A person who is not a party to this Deed has no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
Deed. 
  

 2 








 1.4 Prevailing Agreement In the event of any conflict between the provisions of this Deed and the New Credit
Agreement, the provisions of the New Credit Agreement shall prevail except to the extent necessary under English law to maintain the creation or perfection of security, or to preserve the Security Trustee and the Secured Parties’ rights and
remedies under this Deed and to the extent this Deed is intended to specifically confirm the rights and obligations of the parties hereto inter se. 
  

	2	ACKNOWLEDGEMENT AND CONFIRMATIONS 

 2.1 The parties hereto
acknowledge and confirm that, notwithstanding the existence of documentation purporting to pay in full the Obligations under the New Credit Agreement. 
 2.2 Each Chargor hereby confirms that, notwithstanding such confirmation: 
  

	(a)	its guarantee and indemnity obligations under the Loan Documents remain valid and binding; and 

  

	(b)	the UK Debenture executed by it remains valid and binding and continues to secure all the Secured Obligations. 

  

	3	COUNTERPARTS 

 This Deed may be executed in any number of
counterparts, each of which when executed and delivered constitutes an original of this Deed, but all the counterparts shall together constitute one and the same agreement. 
  

	4	GOVERNING LAW 

 This Deed shall be governed by and construed in
accordance with the laws of England. 
  

	5	JURISDICTION 

 5.1 The courts of England have exclusive
jurisdiction to settle any dispute arising out of or in connection with this Deed (including a dispute regarding the existence, validity or termination of this Deed). 
 5.2 The parties agree that the courts of England are the most appropriate and convenient courts to settle such disputes and accordingly no party shall argue to the contrary. 
 5.3 This Clause 5 (Jurisdiction) is for the benefit of the Secured Parties only. As a result, no Finance Party shall be prevented from taking
proceedings relating to such a dispute in any other court with jurisdiction. To the extent allowed by law, the Secured Parties may take concurrent proceedings in any number of jurisdictions. 
 IN WITNESS whereof this Deed has been entered into as a deed on the date stated at the beginning of this Deed. 
  

 3 








 SIGNATORIES 
 CHARGOR 
 CONSTAR INTERNATIONAL U.K. LIMITED 
  

			
	Signed as a deed by Chris Phelan in the presence of:	  	 /s/ Chris Phelan

		  	Director
		
	 /s/ Ian Atkinson
	  	
	SIGNATURE OF WITNESS	  	
		
	NAME OF WITNESS:	  	
	Ian Atkinson	  	
		
	ADDRESS:	  	
	Constar International UK Ltd.	  	
	Moor Lane Trading Estate	  	
	Sherburn in Elmet, LS25 6ES	  	
		
	OCCUPATION:	  	
	Accountant	  	

  

 [CONFIRMATION DEED SIGNATURE PAGE]









 THE SECURITY TRUSTEE 
 CITIBANK, N.A. LONDON BRANCH 
  

			
	Signed as a deed by DAVID JAFFE in the presence of:	  	 /s/ David Jaffe

		  	Director
		
	 /s/ Scott Goodwin
	  	
	Scott Goodwin	  	
	Associate, Asset-Based Finance	  	
	390 Greenwich Street, 1st Floor	  	
	New York, NY 10013	  	

  

 [CONFIRMATION DEED SIGNATURE PAGE]