Document:

RAE Systems Inc. Management Incentive Plan

 Exhibit 10.1 
 RAE SYSTEMS INC. 
 MANAGEMENT INCENTIVE PLAN 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page
	SECTION 1	  	BACKGROUND, PURPOSE AND DURATION	  	1
				
		 	1.1	  	Effective Date	  	1
		 	1.2	  	Purpose of the Plan	  	1
			
	SECTION 2	  	DEFINITIONS	  	1
				
		 	2.1	  	“Actual Award”	  	1
		 	2.2	  	“Affiliate”	  	1
		 	2.3	  	“Base Salary”	  	1
		 	2.4	  	“Board”	  	1
		 	2.5	  	“Code”	  	1
		 	2.6	  	“Committee”	  	2
		 	2.7	  	“Company”	  	2
		 	2.8	  	“Determination Date”	  	2
		 	2.9	  	“EBIT”	  	2
		 	2.10	  	“EBITA”	  	2
		 	2.11	  	“EBITDA”	  	2
		 	2.12	  	“Earnings Per Share”	  	2
		 	2.13	  	“Employee”	  	2
		 	2.14	  	“Fiscal Year”	  	2
		 	2.15	  	“Maximum Award”	  	2
		 	2.16	  	“Minority Interst”	  	2
		 	2.17	  	“Net Income”	  	2
		 	2.18	  	“Operating Profit”	  	3
		 	2.19	  	“Participant”	  	3
		 	2.20	  	“Payout Formula”	  	3
		 	2.21	  	“Performance Goals”	  	3
		 	2.22	  	“Performance Period”	  	3
		 	2.23	  	“Plan”	  	3
		 	2.24	  	“Return on Net Assets”	  	3
		 	2.25	  	“Return on Equity”	  	3
		 	2.26	  	“Return on Sales”	  	3
		 	2.27	  	“Revenue”	  	3
		 	2.28	  	“Shareholder Return”	  	3
		 	2.29	  	“Shares”	  	4
		 	2.30	  	“Target Award”	  	4
			
	SECTION 3	  	SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS	  	4
				
		 	3.1	  	Selection of Participants	  	4
		 	3.2	  	Determination of Performance Goals	  	4
		 	3.3	  	Determination of Target Awards	  	4
		 	3.4	  	Determination of Payout Formula or Formulae	  	4

  

 i 

							
		 	3.5	  	Determination of Actual Awards	  	4
		 	3.6	  	“Right to Receive Payment”	  	5
		 	3.7	  	“Timing of Payment”	  	5
		 	3.8	  	“Form of Payment”	  	5
			
	SECTION 4	  	ADMINISTRATION	  	5
				
		 	4.1	  	Committee is the Administrator	  	5
		 	4.2	  	Committee Authority	  	5
		 	4.3	  	Decisions Binding.	  	6
		 	4.4	  	Delegation by the Committee.	  	6
			
	SECTION 5	  	GENERAL PROVISIONS	  	6
				
		 	5.1	  	Tax Withholding	  	6
		 	5.2	  	No Effect on Employment or Service	  	6
		 	5.3	  	Participation	  	6
		 	5.4	  	Indemnification	  	6
		 	5.5	  	Successors	  	7
		 	5.6	  	Beneficiary Designations	  	7
		 	5.7	  	Nontransferability of Awards	  	7
			
	SECTION 6	  	AMENDMENT, TERMINATION AND DURATION	  	7
				
		 	6.1	  	Amendment, Suspension or Termination	  	7
		 	6.2	  	Duration of the Plan	  	7
			
	SECTION 7	  	LEGAL CONSTRUCTION	  	7
				
		 	7.1	  	Gender and Number	  	7
		 	7.2	  	Severability	  	8
		 	7.3	  	Requirements of Law	  	8
		 	7.4	  	Governing Law	  	8
		 	7.5	  	Captions	  	8

  

 ii 

 RAE SYSTEMS INC. 
 MANAGEMENT INCENTIVE PLAN 
 Effective as of March 28, 2006 
 SECTION 1 
 BACKGROUND, PURPOSE AND
DURATION 
 1.1 Effective Date. The Plan is effective as of March 28, 2006. 
 1.2 Purpose of the Plan. The Plan is intended to increase shareholder value and the success of the Company by motivating
Participants (1) to perform to the best of their abilities, and (2) to achieve the Company’s objectives. The Plan’s goals are to be achieved by providing Participants with incentive awards based on the achievement of goals
relating to the performance of the Company and its business units. The Plan is intended to permit the grant of awards that qualify as performance-based compensation under section 162(m) of the Code. 
 SECTION 2 
 DEFINITIONS

 The following words and phrases shall have the following meanings unless a different meaning is plainly required by the context:

 2.1 “Actual Award” means as to any Performance Period, the actual award (if any) payable to a Participant for the
Performance Period. Each Actual Award is determined by the Payout Formula for the Performance Period, subject to the Committee’s authority under Section 3.5 to reduce or eliminate the award otherwise determined by the Payout Formula.

 2.2 “Affiliate” means any corporation or other entity (including, but not limited to, partnerships and joint
ventures) controlling, controlled by, or under common control with the Company. 
 2.3 “Base Salary” means as to any
Performance Period, the Participant’s annualized salary rate as in effect on the last day of the Performance Period. Base Salary shall be prorated for a Performance Period of less than a full Fiscal Year. Such Base Salary shall be before both
(a) deductions for taxes or benefits, and (b) deferrals of compensation pursuant to Company-sponsored plans. 
 2.4
“Board” means the Board of Directors of the Company. 
 2.5 “Code” means the Internal Revenue
Code of 1986, as amended. Reference to a specific section of the Code or regulation thereunder shall include such section or regulation, any valid regulation promulgated thereunder, and any comparable provision of any future legislation or
regulation amending, supplementing or superseding such section or regulation. 
  

 1 

 2.6 “Committee” means the committee appointed by the Board (pursuant to
Section 4.1) to administer the Plan. 
 2.7 “Company” means RAE Systems Inc., a Delaware corporation, or any
successor thereto. 
 2.8 “Determination Date” means, with respect to the establishment of the Performance Goals
under a Target Award for a Participant, except as otherwise provided by Section 162(m) of the Code, the earlier of (a) the date ninety (90) days after the commencement of the Performance Period applicable to the Target Award or
(b) the date on which 25% of the Performance Period applicable to the Target Award has elapsed, and, in any event, at a time when the outcome of the Performance Goals remains substantially uncertain. 
 2.9 “EBIT” means as to any Performance Period, the Company’s income before reductions for interest, taxes and Minority
Interest determined in accordance with generally accepted accounting principles. 
 2.10 “EBITA” means as to any
Performance Period, the Company’s income before reductions for interest, taxes, Minority Interest and acquisition-related intangible amortization, determined in accordance with generally accepted accounting principles. 
 2.11 “EBITDA” means as to any Performance Period, the Company’s income before reductions for interest, taxes, Minority
Interest, depreciation and amortization, determined in accordance with generally accepted accounting principles. 
 2.12 “Earnings
Per Share” means as to any Performance Period, the Company’s diluted earnings per share, determined in accordance with generally accepted accounting principles. 
 2.13 “Employee” means any employee of the Company or of an Affiliate, whether such employee is so employed at the time the Plan
is adopted or becomes so employed subsequent to the adoption of the Plan. 
 2.14 “Fiscal Year” means any fiscal year
of the Company. 
 2.15 “Maximum Award” means as to any Actual Award to any Participant for any Performance Period,
the lesser of two hundred percent (200%) of Base Salary or $2 million (prorated for a Performance Period of less than a full Fiscal Year). 
 2.16 “Minority Interest” means the earnings or losses allocable to a minority interest in a consolidated subsidiary, determined in accordance with generally accepted accounting principles.

 2.17 “Net Income” means as to any Performance Period, the Company’s income after taxes, determined in
accordance with generally accepted accounting principles. 
  

 2 

 2.18 “Operating Profit” means as to any Performance Period, the Company’s
income that remains after deducting product cost and operating expenses from net sales. 
 2.19 “Participant” means
as to any Performance Period, an Employee who has been selected by the Committee for participation in the Plan for that Performance Period. 
 2.20 “Payout Formula” means as to any Performance Period, the formula or payout matrix established by the Committee pursuant to Section 3.4 in order to determine the Actual Awards (if any) to be paid to
Participants. The formula or matrix may differ from Participant to Participant. 
 2.21 “Performance Goals” means the
goal(s) (or combined goal(s)) determined by the Committee (in its discretion) to be applicable to a Participant for a Target Award for a Performance Period. As determined by the Committee, the Performance Goals for any Target Award applicable to a
Participant may provide for a targeted level or levels of achievement using one or more of the following measures: (a) EBIT, (b) EBITA, (c) EBITDA, (d) Earnings Per Share, (e) Net Income, (f) Operating Profit,
(g) Return on Net Assets, (h) Return on Equity, (i) Return on Sales, (j) Revenue, and (k) Shareholder Return. The Performance Goals may differ from Participant to Participant and from award to award. 
 2.22 “Performance Period” means any fiscal period not to exceed three consecutive Fiscal Years, as determined by the Committee in
its sole discretion. 
 2.23 “Plan” means the RAE Systems Inc. Management Incentive Plan, as set forth in this
instrument and as hereafter amended from time to time. 
 2.24 “Return on Net Assets” means as to any Performance
Period, the percentage equal to the Company’s EBIT before incentive compensation, divided by the Company’s or business unit’s average net assets, determined in accordance with generally accepted accounting principles. 
 2.25 “Return on Equity” means as to any Performance Period, the percentage equal to the Company’s Net Income divided by
average stockholder’s equity, determined in accordance with generally accepted accounting principles. 
 2.26 “Return on
Sales” means as to any Performance Period, the percentage equal to the Company’s EBIT (after incentive compensation), divided by the Company’s or the business unit’s, as applicable, Revenue, determined in accordance with
generally accepted accounting principles. 
 2.27 “Revenue” means as to any Performance Period, the Company’s
net sales, determined in accordance with generally accepted accounting principles. 
 2.28 “Shareholder Return” means
as to any Performance Period, the total return (change in share price plus reinvestment of any dividends) of a Share. 
  

 3 

 2.29 “Shares” means shares of the Company’s common stock, $0.001 par value.

 2.30 “Target Award” means the target award payable under the Plan to a Participant for the applicable Performance
Period, expressed as a percentage of his or her Base Salary for the Performance Period, as determined by the Committee in accordance with Section 3.3. 
 SECTION 3 
 SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS 
 3.1 Selection of Participants. The Committee, in its sole discretion, shall select, on or before the Determination Date of a Performance
Period, the Employees who shall be Participants for such Performance Period. Participation in the Plan is in the sole discretion of the Committee, and on a Performance Period by Performance Period basis. Accordingly, an Employee who is a Participant
for a given Performance Period in no way is guaranteed or assured of being selected for participation in any subsequent Performance Period or Periods. 
 3.2 Determination of Performance Goals. The Committee, in its sole discretion, shall establish, on or before the Determination Date of a Performance Period, the Performance Goals for each Participant for
the Performance Period. Such Performance Goals shall be set forth in writing. 
 3.3 Determination of Target Awards. The
Committee, in its sole discretion, shall establish, on or before the Determination Date of a Performance Period, a Target Award for each Participant for the Performance Period. Each Participant’s Target Award shall be determined by the
Committee in its sole discretion, and each Target Award shall be set forth in writing. 
 3.4 Determination of Payout Formula or
Formulae. On or prior to the Determination Date of a Performance Period, the Committee, in its sole discretion, shall establish a Payout Formula or Formulae for purposes of determining the Actual Award (if any) payable to each Participant
for such Performance Period. Each Payout Formula shall (a) be in writing, (b) be based on a comparison of actual performance to the Performance Goals, (c) provide for the payment of a Participant’s Target Award if the Performance
Goals for the Performance Period are achieved, and (d) provide for an Actual Award greater than or less than the Participant’s Target Award, depending upon the extent to which actual performance exceeds or falls below the Performance
Goals. Notwithstanding the preceding, no Participant’s Actual Award under the Plan may exceed his or her Maximum Award for the Performance Period. 
 3.5 Determination of Actual Awards. After the end of each Performance Period, the Committee shall certify in writing its determination of the extent to which the Performance Goals applicable to each
Participant for the Performance Period were achieved or exceeded. In making such determination, the Committee may, in its discretion, exclude the effect (whether positive or negative) of any material change in applicable accounting principles
occurring following the establishment of a Performance Goal or of any material structural change in the business of the Company occurring following the establishment of a Performance Goal, whether by (a) merger, consolidation, reorganization or
recapitalization of the Company or any Affiliate, (b) acquisition, divestiture, split-up, split-off or spin-off of an Affiliate or other business unit of 
  

 4 

 the Company or of an Affiliate, or (c) any other material structural change that would, absent an appropriate
adjustment to the applicable Performance Goal, result in an inconsistent basis for the determination of the extent of achievement of the Performance Goal. Each such adjustment, if any, shall be made solely for the purpose of providing a consistent
basis from period to period for the determination of the extent of Performance Goal achievement in order to prevent the dilution or enlargement of the Participant’s rights. The Actual Award for each Participant shall be determined by applying
the Payout Formula to the level of actual performance which has been certified by the Committee. Notwithstanding any contrary provision of the Plan, the Committee, in its sole discretion, may (a) eliminate or reduce the Actual Award payable to
any Participant below that which otherwise would be payable under the Payout Formula, and (b) determine what Actual Award, if any, will be paid in the event of a termination of employment prior to the end of the Performance Period. However, in
no event will the exercise of such negative discretion to eliminate or reduce the Actual Award payable to one Participant result in an increase in the Actual Award payable to any other Participant. 
 3.6 Right to Receive Payment. Each Actual Award that may become payable under the Plan shall be paid solely from the general assets of the
Company. Nothing in this Plan shall be construed to create a trust or to establish or evidence any Participant’s claim of any right other than as an unsecured general creditor with respect to any payment to which he or she may be entitled.

 3.7 Timing of Payment. Payment of each Actual Award shall be made on or before the fifteenth (15th) day of the third
month following the end of the Performance Period during which the Actual Award was earned, provided that prior to such date with respect to a Performance Period ending with a Fiscal Year end the report of the independent public accountants on its
audit of the Company’s financial statements has been received by the Company or with respect to a Performance Period not ending with a Fiscal Year end the report of the independent public accountants on its review of the Company’s interim
financial statements has been received by the Company. 
 3.8 Form of Payment. Each Actual Award shall be paid in cash (or its
equivalent) in a single lump sum. 
 SECTION 4 
 ADMINISTRATION 
 4.1 Committee is the Administrator. The Plan shall be administered by
the Compensation Committee of the Board of Directors. 
 4.2 Committee Authority. It shall be the duty of the Committee to
administer the Plan in accordance with the Plan’s provisions. The Committee shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power to
(a) determine which Employees shall be granted awards, (b) prescribe the terms and conditions of awards, (c) interpret the Plan and the awards, (d) adopt such procedures and subplans as are necessary or appropriate to permit
participation in the Plan by Employees who are foreign nationals or employed outside of the United States, (e) adopt rules for the administration, interpretation and application of the Plan as are consistent therewith, and (f) interpret,
amend or revoke any such rules. 
  

 5 

 4.3 Decisions Binding. All determinations and decisions made by the Committee, the Board,
and any delegate of the Committee pursuant to the provisions of the Plan shall be final, conclusive, and binding on all persons, and shall be given the maximum deference permitted by law. 
 4.4 Delegation by the Committee. The Committee, in its sole discretion and on such terms and conditions as it may provide, may delegate all
or part of its authority and powers under the Plan to one or more directors and/or officers of the Company; provided, however, that the Committee may delegate its authority and powers only with respect to awards that are not intended to qualify as
performance-based compensation under section 162(m) of the Code. 
 SECTION 5 
 GENERAL PROVISIONS 
 5.1 Tax Withholding. The Company shall
withhold all applicable taxes from any Actual Award, including any federal, state and local taxes (including the Participant’s FICA obligation). 
 5.2 No Effect on Employment or Service. Nothing in the Plan shall interfere with or limit in any way the right of the Company to terminate any Participant’s employment or service at any time, with
or without cause. For purposes of the Plan, transfer of employment of a Participant between the Company and any one of its Affiliates (or between Affiliates) shall not be deemed a Termination of Service. Employment with the Company and its
Affiliates is on an at-will basis only. The Company expressly reserves the right, which may be exercised at any time and without regard to when during a Performance Period such exercise occurs, to terminate any individual’s employment with or
without cause, and to treat him or her without regard to the effect which such treatment might have upon him or her as a Participant. 
 5.3
Participation. No Employee shall have the right to be selected to receive an award under this Plan, or, having been so selected, to be selected to receive a future award. 
 5.4 Indemnification. Each person who is or shall have been a member of the Committee, or of the Board, shall be indemnified and held
harmless by the Company against and from (a) any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may
be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan or any award, and (b) from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid
by him or her in satisfaction of any judgment in any such claim, action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes
to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s Certificate of Incorporation or
Bylaws, by contract, as a matter of law, or otherwise, or under any power that the Company may have to indemnify them or hold them harmless. 
  

 6 

 5.5 Successors. All obligations of the Company under the Plan, with respect to awards
granted hereunder, shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business or assets
of the Company. 
 5.6 Beneficiary Designations. If permitted by the Committee, a Participant under the Plan may name a
beneficiary or beneficiaries to whom any vested but unpaid award shall be paid in the event of the Participant’s death. Each such designation shall revoke all prior designations by the Participant and shall be effective only if given in a form
and manner acceptable to the Committee. In the absence of any such designation, any vested benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate. 
 5.7 Nontransferability of Awards. No award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will, by the laws of descent and distribution, or to the limited extent provided in Section 5.6. All rights with respect to an award granted to a Participant shall be available during his or her lifetime only to the
Participant. 
 SECTION 6 
 AMENDMENT, TERMINATION AND DURATION 
 6.1 Amendment, Suspension or Termination. The Board, in its sole
discretion, may amend or terminate the Plan, or any part thereof, at any time and for any reason. The amendment, suspension or termination of the Plan shall not, without the consent of the Participant, alter or impair any rights or obligations under
any Target Award theretofore granted to such Participant; provided, however, that the Board, in its sole discretion and without the consent of any Participant, may amend the Plan, to take effect retroactively or otherwise, as it deems necessary or
advisablefor the purpose of conforming the Plan to any present or future law, regulation or rule applicable to the Plan, including, but not limited to, Section 409A of the Code. No award may be granted during any period of suspension or after
termination of the Plan. 
 6.2 Duration of the Plan. The Plan shall commence on the date specified herein, and subject to
Section 6.1 (regarding the Board’s right to amend or terminate the Plan), shall remain in effect thereafter. 
 SECTION 7

 LEGAL CONSTRUCTION 
 7.1 Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural.

  

 7 

 7.2 Severability. In the event any provision of the Plan shall be held illegal or invalid
for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 
 7.3 Requirements of Law. The granting of awards under the Plan shall be subject to all applicable laws, rules and regulations, and to such
approvals by any governmental agencies or national securities exchanges as may be required. 
 7.4 Governing Law. The Plan and
all awards shall be construed in accordance with and governed by the laws of the State of California, but without regard to its conflict of law provisions. 
 7.5 Captions. Captions are provided herein for convenience only, and shall not serve as a basis for interpretation or construction of the Plan. 
 EXECUTION 
 IN WITNESS WHEREOF, RAE Systems Inc., has executed the Plan so as to
be effective as of the date indicated below. 
  

					
		 	RAE SYSTEMS INC.
			
	Dated: March 28, 2006	 	By:	 	 /s/ Gregory J. Vervais

		 	Name:	 	Gregory J. Vervais
		 	Title:	 	Vice President, Corporate Human Resources

  

 8Restricted Stock Unit Agreement between the Registrant and Bernard L. Guerin

 Exhibit 10.1 
  

			
	 CONSTAR International Inc.
 One Crown Way
 Philadelphia, PA 19154-4599
 Main Phone: (215) 552-3700
	  	

 August 10, 2006 
 Bernard L. Guerin 
 43 Broxton Way 
 Glassboro, NJ 08028

 Dear Bernie: 
 The Compensation Committee of the Constar
International Inc. Board of Directors (the “Committee”) hereby grants to you 25,000 restricted stock units (the “Award”), subject to the terms and conditions of this letter agreement (the “Agreement”). 
 Each restricted stock unit represents an amount equal to the value of one share of Constar International Inc. common stock, par value $.01 per share (“Common
Stock”). For purposes of this Agreement, the value of a share of Common Stock as of any date shall be the closing price on such date on the principal national securities exchange on which the Common Stock is listed, or if the Common Stock was
not traded on such date, on the last preceding day on which the Common Stock was traded. If at any time the Common Stock is not listed on any securities exchange, the value of a share of Common Stock shall be the fair market value as determined in
good faith by the Committee in accordance with applicable law. Your Award will be recorded in a bookkeeping reserve account (“Account”) established solely for the purpose of determining the amount payable to you at the time your Award
vests as provided below. As of any date, the balance of such Account shall equal the value of the aggregate number of restricted stock units credited to such Account. 
 Subject to your continued employment with Constar International Inc. (“Constar”) and/or any of its subsidiaries (referred to collectively as the “Company”), and except as provided below, your Award
shall vest in full on March 6, 2009 (the “Vesting Date”). 
 In the event of your death, Disability (as defined below) or a Change in Control (as
defined below) while you are employed by the Company, or upon your normal retirement at or after age 65, your Award shall vest. If you are terminated by the Company for any other reason except for Cause (as defined below), then on your termination
date, your Award shall vest in the same proportion as the number of days that have elapsed since March 6, 2006 are to 1,095. Except as provided in this paragraph, should your employment with the Company terminate for any reason prior to the Vesting
Date, your Award shall be forfeited. 
 Within 30 days following the vesting of your Award (or any portion thereof), the vested portion of your Award will be
distributed to you. The amount of your distribution will equal the value of your vested Award. Distributions will be made in cash or in shares of Common Stock, or a combination thereof, as determined by the Committee in its discretion; provided that
the Committee may distribute shares of Common Stock only if permitted to do so, at such time, under the terms of an equity-based plan approved by the stockholders of Constar. Notwithstanding the foregoing, distribution of your Award shall be made in
compliance with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations issued thereunder. You specifically understand and agree that the preceding sentence may cause a six month delay in the
distribution of your Award. 

 For purposes of this Agreement, the terms “Change in Control,” “Disability” and “Cause”
shall have the following meanings: 
  

	 	•	 	A “Change in Control” means: (i) the acquisition, after the date hereof, by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than 50% of the combined voting power of the voting securities of
Constar entitled to vote generally in the election of directors (the “Voting Securities”); provided, however, that the following acquisitions shall not constitute a Change in Control: (a) any acquisition, directly or indirectly by or
from the Company, or by any employee benefit plan (or related trust) sponsored or maintained by the Company, (b) any acquisition by any underwriter in connection with any firm commitment underwriting of securities to be issued by the Company,
or (c) any acquisition by any corporation if, immediately following such acquisition, 50% or more of the then outstanding shares of common stock of such corporation and the combined voting power of the then outstanding voting securities of such
corporation (entitled to vote generally in the election of directors), are beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who, immediately prior to such acquisition, were the beneficial owners
of the then outstanding Common Stock and the Voting Securities in substantially the same proportions, respectively, as their ownership, immediately prior to such acquisition, of the Common Stock and Voting Securities; (ii) the occurrence, after
the date hereof, of a reorganization, merger or consolidation, other than a reorganization, merger or consolidation with respect to which all or substantially all of the individuals and entities who were the beneficial owners, immediately prior to
such reorganization, merger or consolidation, of the Common Stock and Voting Securities beneficially own, directly or indirectly, immediately after such reorganization, merger or consolidation 50% or more of the then outstanding common stock and
voting securities (entitled to vote generally in the election of directors) of the corporation resulting from such reorganization, merger or consolidation in substantially the same proportions as their respective ownership, immediately prior to such
reorganization, merger or consolidation, of the Common Stock and Voting Securities; (iii) the occurrence, after the date hereof, of (a) a complete liquidation or substantial dissolution of Constar, or (b) the sale or other disposition
of all or substantially all of the assets of Constar, in each case other than to a subsidiary, wholly-owned, directly or indirectly, by Constar or to a holding company of which Constar is a direct or indirect wholly owned subsidiary prior to such
transaction; or (iv) during any period of twelve (12) consecutive months commencing after the date hereof, the individuals at the beginning of any such period who constitute the Board of Directors of Constar (the “Board”) and any
new director (other than a director designated by a person or entity who has entered into an agreement with Constar or other person or entity to effect a transaction described in clauses (i), (ii) or (iii) hereof) whose election by the
Board or nomination for election by Constar’s stockholders was approved by a vote of at least a majority of the directors then still in office who either were directors at the beginning of any such period or whose election or nomination for
election was previously so approved, cease for any reason to constitute a majority of the Board. Notwithstanding the foregoing, a “Change-in-Control” shall not include any event, circumstance or transaction which results from the action of
any entity or group which includes, is affiliated with or is wholly or partially controlled by one or more executive officers of Constar and in which you participate. The foregoing definition of a Change in Control shall be construed and applied in
accordance with Section 409A of the Code and the regulations issued thereunder. 

  

	 	•	 	 “Disability” means your inability to engage in any substantial gainful activity by reason of permanent disability, as determined by the written medical
opinion of an independent 

  

 2 

	 	 
medical physician reasonably acceptable to the Company, for a period of at least 12 months. In no event shall you be considered disabled for the purposes of
this Agreement unless you are deemed disabled pursuant to the Company’s long-term disability plan, if one is maintained by the Company. 

  

	 	•	 	“Cause” means (i) you, in carrying out your duties for the Company, engage in gross misconduct or gross negligence resulting in a material adverse effect on the
Company, (ii) you embezzle any amount of the Company’s assets, (iii) you are convicted (including a plea of guilty or nolo contendere) of a felony involving moral turpitude, (iv) your breach of any restrictive covenant
agreed to with the Company, or (v) your willful and material failure to follow the lawful instructions of the Board. For purposes of this paragraph, no act, or failure to act, on your part shall be considered “willful” unless done, or
omitted to be done, by you in bad faith and without reasonable belief that your action or omission was in the best interest of the Company. Any act or omission to act by you in reliance upon an opinion of counsel to the Company shall not be deemed
to be willful. 

 You will have no rights as a Constar shareholder as a result of this Award. However, if, prior to the vesting of your Award,
Constar pays a dividend with respect to the Common Stock, your Account shall be credited with a number of additional restricted stock units, calculated by dividing (i) the product of (a) the whole number of restricted stock units held in
your Account on the date the dividend is paid times (b) the amount of such dividend with respect to a share of Common Stock, by (ii) the fair market value of a share of Common Stock on the date such dividend is paid. Such additional
restricted stock units shall be credited to your Account on the date the applicable dividend is paid and shall vest and be paid to you in the same manner as the rest of your Award as provided above. In addition, the Committee shall adjust your
restricted stock units to the extent it deems appropriate to reflect any stock dividend, stock split, combination of shares, merger, share exchange, consolidation or other change in the corporate structure of Constar or the Common Stock. 

The grant of your Award does not result in any immediate tax liability. However, you will have taxable income at the time your Award becomes vested. Whether your
distribution is in stock or in cash, the Company will have the right to withhold any taxes that may be due with respect to such distribution. If the distribution is made in shares, you will be required to make appropriate arrangements with the
Company concerning this withholding obligation, by tendering cash payment to the Company in an amount equal to the required withholding or by requesting that the Company pay a portion of your distribution in cash to satisfy the withholding
obligation. 
 The Company may impose any conditions on the Award as it deems necessary or advisable to ensure compliance with the requirements of applicable
securities laws. The Company shall not be obligated to issue or deliver any shares pursuant to this Award if such action violates any provision of any law or regulation of any governmental authority or national securities exchange. You represent
that any shares that you acquire in connection with the Award are acquired for investment purposes and not with a view to distribution. 
 The Committee may
amend the terms of this Agreement to the extent it deems appropriate to comply with applicable law. The construction and interpretation of any provision of this Agreement shall be final and conclusive when made by the Committee. 
 Your Award constitutes an unfunded, unsecured promise by the Company to pay you the value of your vested Award in the future. You will have no rights to any funds set
aside by the Company to pay your Award. Any such amounts shall belong to the Company only and shall at all times be subject to the claims of the Company’s creditors. You may not assign or otherwise transfer any portion of your Award to any
other person and any attempt to accomplish the same shall be void. Nothing in this Agreement shall confer on you the right to continue as an employee of the Company or interfere in any way with the right of the Company to terminate your employment
at any time. 
  

 3 

 In the event that any provision of this Agreement shall be held illegal or invalid for any reason, the illegality or
invalidity shall not affect the remaining parts of the Agreement and the Agreement shall be enforced as if the illegal or invalid provision had not been included. All obligations of the Company under this Agreement shall be binding upon and inure to
the benefit of any successor to the Company. 
 Except to the extent superseded by applicable federal law, this Agreement shall be construed according to the
laws of the state of Delaware, other than its conflict of laws principles. 
 You should sign and return a copy of this Agreement to Jerry A. Gunderson, Vice
President of Human Resources. Your acknowledgement must be returned within ninety (90) days, otherwise, the Award will lapse and become null and void. 
 Very truly yours, 
  

			
	CONSTAR INTERNATIONAL INC.
		
	By:	 	 /s/ Michael Hoffman

	
	ACKNOWLEDGED AND ACCEPTED
	
	 /s/ Bernard L. Guerin
 Bernard L. Guerin

	
	Dated:  8/14/06

  

 4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}]]