Document:

Prepared by R.R. Donnelley Financial -- Form of Benefits Allocation Agreement

  
  
 BENEFITS ALLOCATION AGREEMENT

  
 dated as of 
  
                                       
      , 2002 
  
 between 
  
 CROWN CORK & SEAL COMPANY, INC. 
  
 and

  
 CONSTAR INTERNATIONAL INC. 

 TABLE OF CONTENTS 
  
 
	  	 	 Page
 

	 ARTICLE I    DEFINITIONS
 	 	 1
 
	 Section 1.1    Definitions.
 	 	 1
 
	 
	 ARTICLE II    EMPLOYEES AND ALLOCATIONS OF LIABILITIES
 	 	 4
 
	 Section 2.1      Identification and Employment.
 	 	 4
 
	 Section 2.2      Constar Assumption of Liabilities.
 	 	 4
 
	 
	 ARTICLE III    RETIREMENT PLANS
 	 	 5
 
	 Section 3.1      General Principles.
 	 	 5
 
	 Section 3.2      Defined Benefit Pension Plans.
 	 	 5
 
	 Section 3.3      Defined Contribution Plans.
 	 	 6
 
	 
	 ARTICLE IV    WELFARE PLANS
 	 	 8
 
	 Section 4.1      General Principles.
 	 	 8
 
	 Section 4.2      Establishment of Welfare Plans.
 	 	 9
 
	 Section 4.3      Vacation and Sick Pay Liabilities.
 	 	 9
 
	 Section 4.4      Medical Spending/Dependent Care Accounts.
 	 	 9
 
	 Section 4.5      Severance.
 	 	 9
 
	 Section 4.6      Vendor Contracts.
 	 	 9
 
	 Section 4.7      Workers’ Compensation and Unemployment Compensation.

	 	 10
 
	 Section 4.8      Retiree Medical Benefits
 	 	 10
 
	 
	 ARTICLE V    EXECUTIVE COMPENSATION PROGRAMS
 	 	 11
 
	 Section 5.1      Excess Benefit Plan.
 	 	 11
 
	 Section 5.2      Incentive Plans.
 	 	 11
 
	 Section 5.3      Supplemental Executive Retirement Plan
 	 	 11
 
	 
	 ARTICLE VI    EQUITY-BASED PLANS
 	 	 11
 
	 Section 6.1      Stock Option Awards
 	 	 11
 
	 Section 6.2      Stock Purchase Plan.
 	 	 12
 
	 
	 ARTICLE VII    FOREIGN PLANS AND TRANSITION EMPLOYEES
 	 	 12
 
	 Section 7.1      Foreign Retirement Plans.
 	 	 12
 
	 Section 7.2      Foreign Welfare Plans.
 	 	 12
 
	 Section 7.3      Transition Employees.
 	 	 12
 
	 
	 ARTICLE VIII    GENERAL
 	 	 13
 
	 Section 8.1      Payment of and Accounting Treatment for Expenses and Balance Sheet
Amounts.
 	 	 13
 
	 Section 8.2      Accounting Adjustments.
 	 	 13
 
	 Section 8.3      Notices.
 	 	 13
 
	 Section 8.4      Amendment and Waiver.
 	 	 14
 
	 Section 8.5      Sharing of Participant Information.
 	 	 14
 
	 Section 8.6      Entire Agreement.
 	 	 14
 
	 Section 8.7      Parties in Interest.
 	 	 14
 

 
 

 i 

 
	 Section 8.8      No Third-Party Beneficiaries; No Termination of Employment.

	  	 15
 
	 Section 8.9      Right to Amend or Terminate Any Plans.
 	  	 15
 
	 Section 8.10    Effect if Offering Does Not Occur.
 	  	 15
 
	 Section 8.11    Relationship of Parties.
 	  	 15
 
	 Section 8.12    Affiliates.
 	  	 15
 
	 Section 8.13    Audits.
 	  	 15
 
	 Section 8.14    Further Assurances and Consents
 	  	 16
 
	 Section 8.15    Severability.
 	  	 16
 
	 Section 8.16    Governing Law.
 	  	 16
 
	 Section 8.17    Counterparts.
 	  	 16
 
	 Section 8.18    Disputes.
 	  	 16
 
	 Section 8.19    Assignment.
 	  	 17
 
	 Section 8.20    Interpretation.
 	  	 17
 
	 Section 8.21    Headings.
 	  	 17
 

 
  
  
 TABLE OF APPENDICES

  
 Appendix A – Welfare Plans  
 Appendix
B – Retirement Plans 
 Appendix C – Transition Employees 
 

 ii 

 BENEFITS ALLOCATION AGREEMENT 
  
 THIS IS A BENEFITS ALLOCATION AGREEMENT, dated as of
                    , 2002 (the “Agreement”), by and between Crown Cork & Seal Company, Inc., a Pennsylvania corporation (together with
its successors and permitted assigns, “Crown”), and Constar International Inc., a Delaware corporation (together with its successors and permitted assigns, “Constar”) (collectively, the “Parties” or individually, a
“Party”). 
  
 Background 
  
 A.    The Board of Directors of Crown has authorized an initial public offering of a portion of Constar’s common stock (the “Offering”).

  
 B.    Upon the closing of the Offering, Crown and Constar will enter into a number of
agreements that will govern certain matters relating to the Offering and the relationship of Crown and Constar and their respective subsidiaries and affiliates following the Offering. 
  
 C.    This Agreement sets forth the arrangements between the Parties relating to certain employee benefit and compensation matters. 

 
 Terms 
  
 THEREFORE, in consideration of the foregoing premises and the mutual agreements and covenants contained in this Agreement, the Parties hereby agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  

Section 1.1  Definitions.    The following words and phrases used in this Agreement shall have the meanings set forth below unless
a different meaning is plainly required by the context. 
  
 “ACTIVE CONSTAR EMPLOYEE” means: 

 
 (a)    Any Employee who is performing services for the Constar Group on the Closing Date,
including any such Employee who is not actively performing such service as a result of sick leave, workers’ compensation leave, short-term disability or other authorized leave of absence; and 
  
 (b)    Any Employee of the Crown Group who is designated by Crown and Constar as an Employee to whom
Constar offers employment beginning on or before the Closing Date and who has accepted such offer. 
  
 “ASO
CONTRACT” means an administrative services only contract with a third-party administrator that pertains to any Crown Welfare Plan or Constar Welfare Plan. 

 “BENEFICIARY” means the individual(s) designated by an Employee, former Employee, by operation of law or
otherwise, as the party entitled to compensation, benefits, insurance coverage or any other goods or services under any Plan. 
  
 “CLOSING DATE” means the date upon which Crown completes the initial public offering of Constar’s Common Stock. 
  
 “CODE” means the Internal Revenue Code of 1986, as amended. 
  
 “CONSTAR COMMON STOCK” means the shares of common stock, par value $.01 per share, of Constar. 
  
 “CONSTAR GROUP” means Constar and its Subsidiaries as of the Closing Date. 
  
 “CROWN
COMMON STOCK” means the shares of common stock, par value $5.00 per share, of Crown. 
  
 “CROWN EQUITY PLAN
means: the Crown Cork & Seal Company, Inc. 2001 Stock-Based Incentive Compensation Plan; the Crown Cork & Seal Company, Inc. 1997 Stock-Based Incentive Compensation Plan; the Crown Cork & Seal Company, Inc. 1994 Stock-Based Incentive
Compensation Plan; and the Crown Cork & Seal Company, Inc. 1990 Stock-Based Incentive Compensation Plan. 
  
 “CROWN GROUP” means Crown and its Subsidiaries, excluding any member of the Constar Group, as of the Closing Date. 
  
 “EMPLOYEE” means any individual who performs services pursuant to a common-law employer-employee relationship. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
  
 “FOREIGN PLAN,” when immediately preceded by “Crown,” means a Plan maintained by the Crown Group or when immediately preceded by “Constar,” a
Plan maintained by the Constar Group, in either case for the benefit of employees who perform services and/or are compensated under a payroll that is administered outside the United States, its territories and possessions, and the District of
Columbia. 
  
 “FORMER CONSTAR EMPLOYEE” means an Employee whose employment with the Constar Group
terminated for any reason (including retirement or long-term disability) before the Closing Date and who, as of the Closing Date, is not employed by Crown or a member of the Crown Group. 
  
 “GOVERNMENTAL AUTHORITY” means any federal, state or local court, government, department, commission, board, bureau, agency, official or other regulatory,
administrative or governmental authority, including, without limitation, the United States Department of Labor, the Internal Revenue Service, and the Pension Benefit Guaranty Corporation. 
 

 2 

 “GROUP INSURANCE POLICY” means a group insurance policy issued under any Crown Welfare Plan or any Constar
Welfare Plan, as applicable. 
  
 “HMO AGREEMENTS” means contracts, letter agreements, practices and
understandings with HMOs that provide medical services under the Crown Welfare Plans or Constar Welfare Plans. 
  
 “HMO” means a health maintenance organization that provides benefits under the Crown Welfare Plans or the Constar Welfare Plans. 
  
 “INCENTIVE PLAN,” when immediately preceded by “Crown,” means the Crown Cork & Seal Company, Inc. Management Incentive Plan and the Crown Cork & Seal Company, Inc. Sales
Incentive Plan. When immediately preceded by “Constar,” INCENTIVE PLAN means the Constar Short-Term Incentive Plan to be established by Constar pursuant to Section 5.2(a). 
  
 “LIABILITIES” means any and all losses, claims, charges, compensation, benefits, debts, demands, actions, costs and expenses (including, without limitation,
administrative and related costs and expenses of any Plan, program or arrangement), of any nature whatsoever, whether absolute or contingent, matured or unmatured, liquidated or unliquidated, accrued or unaccrued, known or unknown, whenever arising.

  
 “MATERIAL FEATURE” means any feature of a Plan that could reasonably be expected to be of material
importance to the sponsoring employer or the participants and beneficiaries of the Plan, which could include, without limitation, depending on the type and purpose of the particular Plan, the class or classes of employees eligible to participate in
such Plan, the nature, type, form, source, and level of benefits provided by the employer under such Plan and the amount or level of contributions, if any, required to be made by participants (or their dependents or beneficiaries) to such Plan or
that is a benefit, right or feature within the meaning of Code section 411(d)(6). 
  
 “NON-EMPLOYER STOCK
FUND” is defined in Section 3.3(c)(ii) of this Agreement. 
  
 “PARTICIPATING COMPANY” means any Person
(other than an individual) that is participating in a Plan sponsored by a member of the Crown Group or a member of the Constar Group, as the context requires. 
  
 “PENSION PLANS” means the Retirement Plans designated as such in Part 1 or Part 2 of Appendix B, as applicable. 
  
 “PERSON” means an individual, a general or limited partnership, a corporation, a trust, a joint venture, an unincorporated organization, a limited liability
entity or any other entity. 
  
 “PLAN” means any plan, policy, program, payroll practice or other
arrangement, whether written or unwritten, providing benefits to Employees or former Employees of the Crown Group or the Constar Group. 
 

 3 

 “RETIREMENT PLANS”, when immediately preceded by “Crown,” means the retirement plans listed in Part 1
of Appendix B to this Agreement that are sponsored by a member of the Crown Group. When immediately preceded by “Constar,” RETIREMENT PLANS means the retirement plans listed in Part 2 of Appendix B to this Agreement that are sponsored by a
member of the Constar Group for periods immediately after the Closing Date. 
  
 “SAVINGS PLANS” means the
Retirement Plans designated as such in Part 1 or Part 2 of Appendix B, as applicable. 
  
 “SUBSIDIARY”
means, with respect to any specified Person, any corporation or other legal entity of which such Person or any of its Subsidiaries owns or controls, directly or indirectly, more than 50% of the stock or other equity interest entitled to vote on the
election of members to the board of directors or similar governing body. 
  
 “WELFARE PLANS,” when
immediately preceded by “Crown,” means the welfare benefit plans, programs, and policies listed in Part 1 of Appendix A to this Agreement that are sponsored by a member of the Crown Group. When immediately preceded by “Constar,”
WELFARE PLANS means the welfare benefit plans, programs, and policies listed in Part 2 of Appendix A to this Agreement that are sponsored by a member of the Constar Group for all periods after the Closing Date. 
  
 ARTICLE II 
 EMPLOYEES AND ALLOCATIONS OF
LIABILITIES 
  
 Section 2.1    Identification and
Employment.    Effective as of the Closing Date, Crown and Constar shall jointly compile a list by name, social security number, job title and assigned location of all Active Constar Employees. Effective as of the Closing
Date, Constar shall employ all such identified Active Constar Employees. Effective as of the Closing Date, Crown and Constar shall jointly compile a list by name and social security number of all Former Constar Employees who are identifiable at such
time. An individual who would be classified as a Former Constar Employee shall be treated as such for all purposes of this Agreement notwithstanding that such individual is not on the list provided for in the preceding sentence. 

 
 Section 2.2    Constar Assumption of Liabilities.    Except as
specifically provided otherwise in this Agreement, Constar shall, on behalf of itself and its Subsidiaries, assume, or cause another member of the Constar Group to assume (i) all Liabilities related to Active Constar Employees and Former Constar
Employees incurred in connection with their employment by the Constar Group (or the predecessor of any member of such Group) or the Crown Group (or the predecessor of any member of such Group) prior to the Closing Date; (ii) all Liabilities related
to Active Constar Employees and Former Constar Employees arising on or after the Closing Date relating to employment with any member of the Constar Group; and (iii) all other Liabilities related to, arising out of, or resulting from obligations,
liabilities and responsibilities assumed or retained by Constar or any member of the Constar Group under this Agreement or a Plan sponsored or maintained by any member of the Constar Group. 
 

 4 

 ARTICLE III 
 RETIREMENT PLANS

  
 Section 3.1    General Principles.  
  
 (a)    Retirement Plan Liabilities.    Effective as of the Closing Date, the
Active Constar Employees will cease to earn benefits under the Crown Retirement Plans and the Constar Group will establish the Constar Retirement Plans for the benefit of the Active Constar Employees. The Constar Retirement Plans will provide
benefits for a period of one year after the Closing Date that are at least substantially equivalent in all Material Features (except for the Supplemental Pension Plan provisions of the Crown Salaried Pension Plan) to those provided under the
corresponding Crown Retirement Plans immediately before the Closing Date. Except as specifically provided under Section 3.3 and notwithstanding Section 2.2, the Crown Retirement Plans will retain all liabilities and assets related to retirement
benefits earned by Active Constar Employees and Former Constar Employees prior to the Closing Date. 
  
 (b)    Governmental Filings.    Crown and Constar shall cooperate to make any and all filings required with respect to the Crown Retirement Plans and the Constar Retirement Plans under the Code
or ERISA in connection with the Offering or the asset transfers described in this Article III in a timely manner. 
  
 (c)    Determination Letters.    Constar shall apply to the Internal Revenue Service for favorable determination letters with respect to the tax-qualified status of the Constar Retirement Plans
as soon as practicable after the Closing Date, and Constar, consistent with the terms of this Agreement, shall make such amendments to such Plans as may be required by the Internal Revenue Service in order for Constar to receive favorable
determination letters with respect to these Plans. 
  
 (d)    Terms of
Participation—Active Constar Employees.    Each Constar Retirement Plan shall provide that all service, compensation, and other benefit-affecting determinations that, as of the Closing Date, were recognized under the
corresponding Crown Retirement Plan with respect to Active Constar Employees (for periods immediately before the Closing Date) shall, as of immediately after the Closing Date, receive full recognition, credit and validity and be taken into account
under such Constar Retirement Plan to the same extent as if such items occurred under such Constar Retirement Plan, except to the extent that duplication of benefits would result. 
  
 (e)    Beneficiary Designations.    All beneficiary designations made by Active Constar Employees or their
respective alternate payees with respect to the Crown Retirement Plans shall be transferred to and be in full force and effect under the corresponding Constar Retirement Plans until such beneficiary designations are replaced or revoked by the
individual who made such beneficiary designation. 
  
 Section 3.2    Defined Benefit
Pension Plans.  
  
 (a)    Establishment of Pension
Plans.    Effective as of the Closing Date, Constar shall adopt the Constar Pension Plans, which shall provide benefits with respect to Active 
 

 5 

 Constar Employees, their Beneficiaries and their respective alternate payees immediately after the Closing Date that are
at least substantially equivalent in all Material Features to those provided under the Crown Pension Plans immediately before the Closing Date. For purposes of eligibility (including early retirement eligibility), vesting and benefit accrual, all
service recognized under the corresponding Crown Pension Plan (for periods immediately before the Closing Date) shall, as of immediately after the Closing Date be recognized and taken into account under the appropriate Constar Pension Plan. For
purposes of benefit accrual, all compensation recognized under the corresponding Crown Pension Plan (for periods immediately before the Closing Date) shall, as of immediately after the Closing Date, be recognized and taken into account under the
appropriate Constar Pension Plan. 
  
 (b)    Establishment of Pension
Trust.    Effective as of the Closing Date, Constar shall establish or cause to be established with respect to the Constar Pension Plans, a trust(s) which shall be exempt from taxation under Code section 501(a). 

 
 (c)    Retention of Liabilities.    Except as specifically provided in
this Section 3.2(c), effective as of the Closing Date, the Active Constar Employees shall cease to accrue benefits under the Crown Pension Plans. Notwithstanding the preceding sentence, pension eligible compensation (subject to a maximum increase of
3.5% per calendar year) earned by Active Constar Employees from the Constar Group on or after the Closing Date shall be recognized under the applicable Crown Pension Plan for benefit accrual purposes; provided, however, that this sentence shall be
applicable only for such period that Crown owns a 25 percent or greater interest in Constar. Following the Closing Date, and notwithstanding Section 2.2, the Crown Pension Plans shall retain all liabilities and assets related to Active Constar
Employees and Former Constar Employees earned prior to the Closing Date. 
  
 (d)    PBGC Intervention.    Notwithstanding any provision of this Agreement to the contrary, in the event that at any time the Pension Benefit Guaranty Corporation (PBGC) or any other
Governmental Authority asserts that the Offering may provide justification for the PBGC to seek termination of any Crown Pension Plan or Constar Pension Plan under ERISA or otherwise asserts that the Offering may increase unreasonably the long-run
loss to the PBGC (within the meaning of ERISA section 4042(a)(4)) with respect to any Crown Pension Plan or Constar Pension Plan, Crown may, in its sole discretion: 
  
 (i)    Enter into negotiations with the PBGC to resolve these issues and, upon satisfactorily resolving such issues, Constar shall fully
comply with the terms of any agreement entered into by Crown with the PBGC; or 
  
 (ii)    Transfer all assets and liabilities with respect to Active Constar Employees and/or Former Constar Employees and their respective alternate payees arising prior to the Closing Date under the applicable
Crown Pension Plan to the corresponding Constar Pension Plan in a manner acceptable to the PBGC. 
  
 Section
3.3    Defined Contribution Plans.  
  
 (a)    Establishment of Savings Plan.    Effective as of the Closing Date, Constar shall adopt the Constar Savings Plan, which shall provide benefits with respect to Active Constar

 

 6 

 Employees, their Beneficiaries and their respective alternate payees immediately after the Closing Date that are at least
substantially equivalent in all Material Features to those provided under the Crown Savings Plans immediately before the Closing Date. For purposes of eligibility (including early retirement eligibility) and vesting, all service recognized under the
corresponding Crown Savings Plan (for periods immediately before the Closing Date) shall, as of immediately after the Closing Date be recognized and taken into account under the Constar Savings Plan. 
  
 (b)    Establishment of Savings Trust.    Effective on the Closing Date, Constar
shall establish or cause to be established with respect to the Constar Savings Plan, a trust, which shall be exempt from taxation under Code section 501(a). 
  
 (c)    Transfer of Savings Plan Assets. 
  
 (i)    Transfer of Assets to the Constar Savings Plan.    As soon as practicable after the Closing Date, Crown shall
cause the accounts of the Active Constar Employees, their Beneficiaries and their respective alternate payees, if any, under the applicable Crown Savings Plan that are held by its related trust to be transferred to the Constar Savings Plan and its
related trust, and Constar shall cause such transferred accounts to be accepted by such plan and trust. The transfer of such accounts shall be made: (A) in kind, to the extent the assets consist of investments in a Crown Common Stock fund and (B)
otherwise in cash, interests in mutual funds, securities, or other property or in a combination thereof, as the Parties may agree, but, to the extent practicable, shall be invested initially in comparable investment options in the Constar Savings
Plan as such accounts were invested immediately before the date of transfer. Any outstanding loan balances under any Crown Savings Plans to Active Constar Employees shall be transferred with the underlying accounts. 
  
 (ii)    Non-Employer Stock Funds.    Effective immediately after the Closing Date,
the Constar Savings Plan shall provide for both a Crown Common Stock fund and a Constar Common Stock fund as investment options. The Crown Common Stock fund in the Constar Savings Plan shall be referred to as the Non-Employer Stock Fund. The
Non-Employer Stock Fund will be maintained under the Constar Savings Plan until at least December 31, 2004, or for such longer period as the applicable Constar Savings Plan fiduciaries determine the Non-Employer Stock Fund to be an appropriate
investment under the Constar Savings Plan. The Constar Savings Plan shall provide that, after the Closing Date, no new contributions may be invested in, and no amounts may be transferred from other investment options to, the Non-Employer Stock Fund.
The Constar Savings Plan shall provide that no earnings or dividends attributable to the Non-Employer Stock Fund may be reinvested in the Non-Employer Stock Fund. 
  
 (iii)    Provision of Disclosure Materials Relating to Non-Employer Stock Funds.    Crown shall provide to Constar
in a timely manner such proxy statements, annual reports, and other materials with respect to Crown stock held in the Non-Employer Stock Fund under the Constar Savings Plan as may be reasonably requested by Constar. 
 

 7 

 ARTICLE IV 
 WELFARE PLANS

  
 Section 4.1    General Principles. 
  
 (a)    Assumption of Welfare Plan Liabilities.    Effective as of the Closing
Date, all Liabilities relating to Active Constar Employees and Former Constar Employees and their Beneficiaries under the Crown Welfare Plans shall cease to be Liabilities of Crown or the Crown Welfare Plans and shall be assumed by the Constar Group
and the Constar Welfare Plans including, without limitation, retiree medical benefits. Except as specifically set forth in Sections 4.4 and 4.8, Constar shall not be entitled to assets associated with any Crown Welfare Plan. 
  
 (b)    Continuation of Elections.    Constar shall cause the Constar Welfare Plans
to recognize and maintain all coverage and contribution elections made by Active Constar Employees (and Former Constar Employees, if applicable) under the Crown Welfare Plans in effect for the period immediately before the Closing Date and shall
apply such elections under the Constar Welfare Plans for the remainder of the period or periods for which such elections are by their terms applicable. Constar shall provide coverage to Active Constar Employees (and Former Constar Employees, if
applicable) under the Constar Welfare Plans without the need to undergo a physical examination or otherwise provide evidence of insurability, will not impose pre-existing condition exclusions and will recognize and maintain all irrevocable
assignments and elections made by Active Constar Employees (and Former Constar Employees, if applicable) in connection with any life insurance coverage under the Crown Welfare Plans. 
  
 (c)    Continuation of Co-Payments.    Constar shall cause the Constar Welfare Plans to recognize and give credit
for all amounts applied to deductibles, out-of-pocket maximums, and other applicable benefit coverage limits for expenses that have been incurred by Active Constar Employees (and Former Constar Employees, if applicable) under the Crown Welfare Plans
for the remainder of the benefit limit year in which the Closing Date occurs. 
  
 (d)    Continuation of Maximum Benefits.    Constar shall cause the Constar Welfare Plans to recognize and give credit for all benefits paid to Active Constar Employees and Former Constar
Employees under the Crown Welfare Plans, before and during the benefit limit year in which the Closing Date occurs, for purposes of determining when such persons have reached their lifetime maximum benefits under the Constar Welfare Plans.

  
 (e)    COBRA and HIPAA Obligations.    For the period
before the Closing Date and for the period following the Closing Date that Crown is providing administrative services with respect to the Constar Welfare Plans pursuant to the terms of the Transition Services Agreement, Crown shall be responsible
for administering compliance with the continuation coverage requirements for “group health plans” under Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (COBRA), and the portability requirements under the
Health Insurance Portability and Accountability Act of 1996, as amended (HIPAA), with respect to Active Constar Employees, Former Constar Employees and their Beneficiaries and shall be responsible for furnishing all necessary employee change notices
with respect to 
 

 8 

 
these persons in accordance with applicable Crown policies and procedures. Following the time periods described in the preceding sentence, Constar shall be solely responsible for administering
compliance with and satisfying any outstanding COBRA or HIPAA obligation with respect to Active Constar Employees, Former Constar Employees and their Beneficiaries. 
  
 (f)    Subrogation.    If Constar recovers any amounts through subrogation or reimbursement for claims paid by Crown
to Active Constar Employees, Former Constar Employees or their Beneficiaries, Constar shall pay such amounts to Crown. 
  
 Section 4.2    Establishment of Welfare Plans.    Effective as of the Closing Date, Constar shall take all actions necessary or appropriate to establish the Constar Welfare Plans to
provide Active Constar Employees (and Former Constar Employees, if applicable) benefits that are identical in all Material Features to those benefits provided under the Crown Welfare Plans from time to time during the period that Crown is providing
administrative services with respect to the Constar Welfare Plans pursuant to the terms of the Transition Services Agreement. 
  
 Section 4.3    Vacation and Sick Pay Liabilities.    Effective as of the Closing Date, Constar shall assume all Liabilities for vacation, sick leave and other paid time off in respect of
all Active Constar Employees (and Former Constar Employees, if applicable) as of the Closing Date. 
  
 Section
4.4    Medical Spending/Dependent Care Accounts.    For the calendar year that includes the Closing Date, the Constar Cafeteria Plan shall recognize all elections, contributions and related claims by
Active Constar Employees (and Former Constar Employees, if applicable) to flexible spending or dependent care assistance accounts under the Crown Cafeteria Plan. As soon as practicable after the close of such calendar year, Crown shall reimburse
Constar for the aggregate contributions to such accounts withheld by Crown from Active Constar Employees (and Former Constar Employees, if applicable) prior to the Closing Date to the extent that Crown did not exhaust such contributions by providing
benefits to Active Constar Employees (and Former Constar Employees, if applicable) prior to the Closing Date, or if benefits paid by Crown to Active Constar Employees (and Former Constar Employees, if applicable) prior to the Closing Date exceeds
the contributions withheld by Crown from Active Constar Employees (and Former Constar Employees, if applicable), Constar shall reimburse Crown for such difference. 
  
 Section 4.5    Severance.    The Parties agree that, with respect to Active Constar Employees who, in connection with the
Offering, cease to be employees of the Crown Group and become Employees of the Constar Group, such cessation shall not be deemed a severance of employment for purposes of any Plan that provides for the payment of severance, salary continuation or
similar benefits. The Parties shall take all such action, including, but not limited to amending any Plan to give effect to the provisions of this Section 4.5. 
  
 Section 4.6    Vendor Contracts. 
  
 (a)    Pre-Closing Date Negotiation.    Before the Closing Date, Crown shall take such steps as are necessary under each ASO Contract, Group Insurance Policy and HMO 
 

 9 

 
Agreement in existence as of the date of this Agreement to permit Constar to participate in the terms and conditions of such ASO Contract, Group Insurance Policy or HMO Agreement beginning
immediately after the Closing Date. 
  
 (b)    Terms of Constar
Participation.    Crown shall determine, and shall promptly notify Constar of, the manner in which Constar’s participation in the terms and conditions of ASO Contracts, Group Insurance Policies and HMO Agreements, as set
forth above is to be effectuated. Constar hereby authorizes Crown to act on its behalf to extend to Constar the terms and conditions of the ASO Contracts, Group Insurance Policies and HMO Agreements. Constar shall fully cooperate with Crown in such
efforts. 
  
 (c)    Premium/Administration Rates.    Crown
and Constar shall use their reasonable best efforts to cause each of the insurance companies, HMOs, paid provider organizations and third-party administrators providing services and benefits under the Crown Welfare Plans and the Constar Welfare
Plans to maintain the premium and/or administrative rates, based on the aggregate number of participants in both the Crown Welfare Plans, after the Closing Date, and the Constar Welfare Plans. 
  

(d)    Management of the ASO Contracts, Group Insurance Policies and HMO Agreements.    Constar shall be
responsible, subject to the direction and control of Crown, for the management of the existing contractual and other arrangements pertaining to the administration of the Constar Welfare Plans. Immediately after the Closing Date, Constar shall be
responsible for the management and control of the ASO contracts, Group Insurance Policies and HMO Agreements and other vendor contracts and relationships to the extent such contracts, policies and agreements apply to the Constar Welfare Plans.
Notwithstanding the foregoing, nothing contained in this Section 4.6(d) shall permit Constar to direct any insurance carrier, third-party vendor or claims administrator with respect to any contractual arrangement, policy or agreement under any Crown
Welfare Plan. 
  
 Section 4.7    Workers’ Compensation and Unemployment
Compensation.    Effective as of the Closing Date, Constar shall assume all Liabilities for Active Constar Employees and Former Constar Employees related to any and all workers’ compensation and unemployment compensation
matters under any law of any state, territory, or possession of the United States or the District of Columbia and Constar shall be fully responsible for the administration of all such claims. If Constar is unable to assume any of such Liabilities or
the administration of any such claim because of the operation of applicable state law or for any other reason, Constar shall reimburse Crown for all such Liabilities. 
  
 Section 4.8    Retiree Medical Benefits.    Following the Closing Date, Crown shall continue to permit Former Constar
Employees (and Active Constar Employees, who subsequently become eligible and elect to do so), to pay their portion of the cost of retiree medical benefits through a voluntary deduction from their benefit payments under the applicable Crown Pension
Plan. Crown shall cause such deduction to be made and to be remitted to Constar within 30 days of when such amount would otherwise have been paid to such Former Constar Employee (or Active Constar Employee, if applicable). 
 

 10 

 ARTICLE V 
 EXECUTIVE
COMPENSATION PROGRAMS 
  
 Section 5.1    Excess Benefit Plan. 
  
 (a)    Cessation of Participation.    All Active Constar Employees shall cease to
be eligible to participate in the Crown Excess Benefit Plan as of the Closing Date. 
  
 (b)    Retention of Liabilities.    Notwithstanding any provision of this Agreement to the contrary, effective as of the Closing Date, the Crown Group shall retain all Liabilities in connection
with the Crown Excess Benefit for Active Constar Employees (and Former Constar Employees, if applicable) and the Constar Group shall have no responsibility with respect to such Liabilities. 
  
 Section 5.2    Incentive Plans.    Constar shall assume all Liabilities for or related to Active Constar Employees (and
Former Constar Employees, if applicable) payable under the Crown Incentive Plans with respect to the period prior to the Closing Date; provided, however, that Crown and Constar may jointly make such adjustments to the financial goals, targets,
payments and forms of payment as they deem appropriate to reflect the Offering. As of the Closing Date, Constar shall establish the Constar Incentive Plan covering such of its Active Constar Employees as it in its sole discretion deems appropriate.

  
 Section 5.3    Supplemental Executive Retirement Plan.    As of
the Closing Date, Constar may establish a non-qualified supplemental executive retirement plan (“SERP”) covering such of its Active Constar Employees as it in its sole discretion deems appropriate. The SERP shall provide eligible employees
with supplemental retirement benefits equal to the additional benefit that would be payable under the applicable Constar Pension Plan if not for the limitations imposed by sections 401(a)(17) and 415 of the Code or any successor provisions.

  
 ARTICLE VI 
 EQUITY-BASED
PLANS 
  
 Section 6.1    Stock Option Awards.    After the Closing
Date, each unexercised stock option for Crown Common Stock held by an Active Constar Employee shall continue to be held as a option for Crown Common Stock and issuable under the applicable Crown Equity Plan. For such period as Crown owns a 25
percent or greater interest in Constar, employment by the Constar Group of Active Constar Employees holding options for Crown Common Stock shall be treated as employment by the Crown Group for purposes of the applicable Crown Equity Plans. At such
time as Crown’s ownership interest in Constar falls below 25 percent or such earlier time as Constar is no longer deemed an “affiliate” under the applicable Crown Equity Plans, employment by the Constar Group shall no longer be
treated as employment by the Crown Group for purposes of the Crown Equity Plans. Consequently, the employment of each Active Constar Employee and by the Crown Group shall be considered terminated by Crown for purposes of the Crown Equity Plans and
each unexercised stock option for Crown Common Stock held by an Active Constar Employee which previously became exercisable shall remain exercisable only in accordance with the applicable award agreement and any option which is not 

 11 

 yet exercisable shall terminate. With respect to any stock option for Crown Common Stock exercised by an Active Constar Employees or Former
Constar Employee, Crown shall be entitled to any tax deduction and in its sole discretion shall determine the treatment related to any such tax deduction with respect to the exercise of such stock options. 
  
 Section 6.2    Stock Purchase Plan. 
  
 (a)    Establishment of Stock Purchase Plan.    Effective as of the Closing Date, Constar shall establish an
employee stock purchase plan (the “Constar ESPP”) that will provide benefits for a period of one year after the Closing Date that are at least substantially equivalent in all Material Features to those provided under the Crown Employee
Stock Purchase Plan (the “Crown ESPP”) immediately before the Closing Date. 
  
 (b)    Asset Transfer.    Prior to the Closing Date, all Active Constar Employees (and Former Constar Employees, if applicable) currently participating in the Crown ESPP shall be given an
election to have the total amount of cash credited to their account under the Crown ESPP as of the Closing Date returned to them in a cash lump sum payment (without interest) or to have such amount transferred to the Constar ESPP. 

 
 ARTICLE VII 
 FOREIGN PLANS AND
TRANSITION EMPLOYEES 
  
 Section 7.1    Foreign Retirement
Plans.    Crown and Constar shall use their reasonable best efforts so that, as soon as practicable after the Closing Date, all Crown Foreign Plans which provide retirement benefits solely to Active Constar Employees and
Former Constar Employees shall be assumed by Constar together with all related assets and liabilities and neither the Crown Group nor any Crown Group Plan shall retain any liability with respect to such Foreign Plans. 
  
 Section 7.2    Foreign Welfare Plans.    Crown and Constar shall use their
reasonable best efforts, effective as of the Closing Date, and to the extent allowed under foreign laws, to handle the Foreign Plans which provide welfare benefits in a manner which mirrors the approach outlined in this Agreement for the various
employee benefit plans. 
  
 Section 7.3    Transition
Employees.    Crown and Constar have agreed that the employees listed in Appendix C will be classified as “Transition Employees.” For the “Applicable Period” (as described below), these Transition
Employees will continue to be employed by Crown but will provide services exclusively to Constar in accordance with the Research and Development Agreement. At the end of the Applicable Period, or earlier, if mutually agreed to by the Parties, the
Transition Employees shall be terminated by Crown and shall be offered employment with Constar. The “Applicable Period” with respect to Transition Employees who, as of the Closing Date, are in the process of seeking permanent residency in
the United States, shall be the later of (i) six months from the Closing Date, and (ii) the period from the Closing Date until the date permanent residency is granted. The “Applicable Period” with respect to Transition Employees who, as of
the Closing Date, are not in the process of seeking permanent residency shall be six months from the Closing Date. At such time as the Transition Employees become employed by Constar (the “Transition Date”), the Transition Employees

 

 12 

 shall be considered Active Constar Employees and will subject to all of the terms of this Agreement as of the Transition Date. 

 
 ARTICLE VIII 
 GENERAL

  
 Section 8.1    Payment of and Accounting Treatment for Expenses and Balance
Sheet Amounts.  
  
 (a)    Expenses.    Except as
specifically provided in this Agreement, all expenses (and the accounting treatment related to such expenses) related to liabilities through the Closing Date regarding matters addressed in this Agreement shall be handled and administered in the
ordinary course by Crown and Constar in accordance with past Crown accounting and financial practices and procedures pertaining to such matters. To the extent such expenses are unpaid as of the Closing Date that pertain to Active Constar Employees
or Former Constar Employees, Constar shall be solely responsible for such payment, without regard to any accounting treatment to be accorded such expense by Crown or Constar on their respective books and records. The accounting treatment to be
accorded all such expenses, whether such expenses are paid by Crown or Constar, shall be determined by Crown. 
  
 (b)    Balance Sheet Amounts.    Constar shall assume any balance sheet liability for any Liabilities assumed by it under this Agreement as of the Closing Date or thereafter, with respect to
any Active Constar Employee or Former Constar Employees. The determination of any balance sheet liability as of the Close of the Closing Date shall be determined by Crown consistent with past accounting practices, consistently applied. 

 
 Section 8.2    Accounting Adjustments.    Before the Closing Date,
Constar will have established on its books for financial accounting purposes liabilities and reserves for deferred compensation, welfare and other employee benefit plan obligations that will be retained or assumed by Constar under this Agreement,
and Crown will have adjusted the liabilities and reserves on its books for financial accounting purposes to take into account Constar’s assumption or retention of Liabilities under this Agreement. The initial adjustments as of the Closing Date,
will be made on an estimated basis. After the Parties have finally calculated the actual liabilities under this Agreement, each Party shall appropriately adjust its liabilities and reserves to reflect the amount of the liabilities and reserves that
are properly allocable to that Party. Except as otherwise provided in Article III and Article VI, neither Party shall have any obligation to make payments or transfer assets to the other Party with respect to such adjustments. 

 
 Section 8.3    Notices.    All notices, requests, claims and other
communications hereunder shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery by hand, by reputable overnight courier service, by facsimile transmission, or by registered or
certified mail (postage prepaid, return receipt requested) to the respective parties at the addresses listed below: 
 

 13 

  
 
	 if to Crown, to:
 	 	 Crown Cork & Seal Company, Inc.
 One Crown Way
 Philadelphia, PA 19154
 Attn.:  Gary L. Burgess
 Fax No. 215-676-7245
 
	 
	 if to Constar, to:
 	 	 Constar International Inc.
 One Crown Way
 Philadelphia, PA 19154
 Attn.:  Jerry Gunderson
 Fax No. 215-552-3715
 

 
  
 or to such other address as any Party may, from time to time, designate in a written
notice given in accordance with this Section 8.3. Notice given by hand shall be deemed delivered when received by the recipient. Notice given by mail as set out above shall be deemed delivered five calendar days after the date the same is mailed.
Notice given by reputable overnight courier shall be deemed delivered on the next following business day after the same is sent. Notice given by facsimile transmission shall be deemed delivered on the day of transmission provided telephone
confirmation of receipt is obtained promptly after completion of transmission. 
  
 Section
8.4    Amendment and Waiver.    This Agreement may not be altered or amended, nor may rights hereunder be waived, except by an instrument in writing executed by the Party or Parties to be charged
with such amendment or waiver. No waiver of any term, provision or condition of or failure to exercise or delay in exercising any rights or remedies under this Agreement, in any one or more instances, shall be deemed to be, or construed as, a
further or continuing waiver of any such term, provision, condition, right or remedy or as a waiver of any other term, provision or condition of this Agreement. 
  
 Section 8.5    Sharing of Participant Information.    Crown and Constar shall share, Crown shall cause each applicable member of the Crown Group to
share, and Constar shall cause each applicable member of the Constar Group to share, with each other and their respective agents and vendors (without obtaining releases) all participant information necessary for the efficient and accurate
administration of each of the Crown Plans and the Constar Plans. Crown and Constar and their respective authorized agents shall, subject to applicable laws on confidentiality, be given reasonable and timely access to, and may make copies of, all
information relating to the subjects of this Agreement in the custody of the other Party, to the extent necessary for such administration. 
  
 Section 8.6    Entire Agreement.    This Agreement constitutes the entire understanding of the Parties with respect to the subject matter herein addressed, superseding
all negotiations, prior discussions and prior agreements and understandings relating to such subject matter. 
  
 Section 8.7    Parties in Interest.    Neither of the Parties may assign its rights or delegate any of its duties under this Agreement without the prior written consent of the
other Party (which consent shall not be unreasonably withheld or delayed). This Agreement shall be 
 

 14 

 binding upon, and shall inure to the benefit of, the Parties and their respective successors and permitted assigns. 
  
 Section 8.8    No Third-Party Beneficiaries; No Termination of Employment.    No
provision of this Agreement shall be construed to create any right, or accelerate entitlement, to any compensation or benefit whatsoever on the part of any Active Constar Employee or Former Constar Employee under any Crown Plan or Constar Plan or
otherwise. Without limiting the generality of the foregoing, neither the Offering nor the termination of the controlled group status of a member of the Constar Group shall cause any employee to be deemed to have incurred a termination of employment
that by itself entitles such individual to the commencement of benefits under any of the Crown Plans, any of the Constar Plans, or any individual agreements. 
  
 Section 8.9    Right to Amend or Terminate Any Plans.    Nothing in this Agreement other than those provisions specifically set forth in this
Agreement to the contrary shall preclude Constar or Crown, at any time after the Closing Date, from amending, merging, modifying, terminating, eliminating, reducing, or otherwise altering in any respect any Constar Plan or Crown Plan, respectively,
any benefit under any Plan or any trust, insurance policy or funding vehicle related to any Constar Plan or Crown Plan. 
  
 Section 8.10    Effect if Offering Does Not Occur.    If the Offering does not occur, then all actions and events that are, under this Agreement, to be taken or occur effective as
of the Closing Date, immediately after the Closing Date, or otherwise in connection with the Offering, shall not be taken or occur except to the extent specifically agreed to in writing by Constar and Crown. 
  
 Section 8.11    Relationship of Parties.    Nothing in this Agreement shall be
deemed or construed by the Parties or any third party as creating the relationship of principal and agent, or a partnership or joint venture between the Parties, it being understood and agreed that no provision contained in this Agreement, and no
act of the Parties, shall be deemed to create any relationship between the Parties other than the relationship set forth in this Agreement. 
  
 Section 8.12    Affiliates.    Each of Crown and Constar shall cause to be performed, and hereby guarantees the performance of, all actions,
agreements and obligations set forth in this Agreement to be performed by members of the Crown Group or members of the Constar Group, respectively, where relevant. 
  
 Section 8.13    Audits.  
  
 (a)  Audit Rights With Respect to Information Provided. 
  
 (i)    Each of Crown and Constar, and their duly authorized representatives, shall have the right to conduct audits at any time upon reasonable prior notice, at their own expense, with respect to all information
provided to it or to any Plan trustee, recordkeeper or third-party administrator by the other Party. The Party conducting the audit shall have the sole discretion to determine the procedures and guidelines for conducting audits and the selection of
audit representatives under this Section. The auditing Party shall have the right to make copies of any records at its expense. The Party being audited shall provide the 
 

 15 

 auditing Party’s representatives with reasonable access during normal business hours to its operations, computer
systems and paper and electronic files, and provide workspace to its representatives. After any audit is completed, the Party being audited shall have the right to review a draft of the audit findings and to comment on those findings in writing
within ten business days after receiving such draft. 
  
 (ii)    The auditing
Party’s audit rights under this Section shall include the right to audit, or participate in an audit facilitated by the Party being audited, of any Subsidiaries and affiliates of the Party being audited and of any benefit providers and third
parties with whom the Party being audited has a relationship, or agents of such Party, to the extent any such persons are affected by or addressed in this Agreement. The Party being audited shall, upon written request from the auditing Party,
provide an individual (at the auditing Party’s expense) to supervise any audit of any such benefit provider or third-party. The auditing Party shall be responsible for supplying, at its expense, additional personnel sufficient to complete the
audit in a reasonably timely manner. 
  
 Section 8.14    Further Assurances and
Consents.    In addition to the actions specifically provided for elsewhere in this Agreement, each of the Parties will use its reasonable best efforts to (a) execute and deliver such further instruments and documents
and take such other actions as any other Party may reasonably request in order to effectuate the purposes of this Agreement and to carry out the terms of this Agreement and (b) take, or cause to be taken, all actions, and to do, or cause to be done,
all things, reasonably necessary, proper or advisable under applicable laws, regulations and agreements or otherwise to consummate and make effective the transactions contemplated by this Agreement, including, without limitation, using its
reasonable best efforts to obtain any consents and approvals and to make any filings and applications necessary or desirable in order to consummate the transactions contemplated by this Agreement; provided that no Party shall be obligated to pay any
consideration therefor (except for filing fees and other similar charges) to any third-party from whom such consents, approvals and amendments are requested or to take any action or omit to take any action if the taking of or the omission to take
such action would be unreasonably burdensome to the Party. 
  
 Section
8.15    Severability.    The provisions of this Agreement are severable and should any provision of this Agreement be void, voidable or unenforceable under any applicable law, such provision shall
not affect or invalidate any other provision of this Agreement, which shall continue to govern the relative rights and duties of the Parties as though such void, voidable or unenforceable provision were not part of this Agreement. 

 
 Section 8.16    Governing Law.    Subject to federal law, this Agreement
shall be construed in accordance with, and governed by, the laws of the Commonwealth of Pennsylvania, without regard to the conflicts of law rules of such state. 
  
 Section 8.17    Counterparts.    This Agreement may be executed in one or more counterparts each of which shall be deemed an original instrument,
but all of which together shall constitute but one and the same Agreement. 
  
 Section
8.18    Disputes.  
 

 16 

  
 (a)    Resolution of any and all disputes
arising from or in connection with this Agreement, whether based on contract, tort, statute or otherwise, including, but not limited to, disputes in connection with claims by third parties (collectively, “Disputes”), shall be subject to
the provisions of this Section 8.18; provided, however, that nothing contained in this Agreement shall preclude either Party from seeking or obtaining (i) injunctive relief or (ii) equitable or other judicial relief to enforce the provisions of this
Agreement or to preserve the status quo pending resolution of Disputes hereunder. 
  
 (b)    Either Party may give the other Party written notice of any Dispute not resolved in the normal course of business. The parties shall attempt in good faith to resolve any Dispute promptly by negotiation
between executives of the parties who have authority to settle the controversy and who are at a higher level of management than the persons with direct responsibility for administration of this Agreement. Within 30 days after delivery of the notice,
the foregoing executives of both parties shall meet at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary for a period not to exceed 15 business days, to attempt to resolve the Dispute. All reasonable
requests for information made by one Party to the other will be honored. If the parties do not resolve the Dispute within such 45 business day period (the “Initial Negotiation Period”), the Parties shall attempt in good faith to resolve
the Dispute by negotiation between (a) in the case of Crown, the Chief Financial Officer and (b) in the case of Constar, the Chief Financial Officer (collectively, “Designated Officers”). Such officers shall meet at a mutually acceptable
time and place (but in any event no later than 15 business days following the expiration of the Initial Negotiation Period) and thereafter as often as they reasonably deem necessary for a period not to exceed 15 business days, to attempt to resolve
the Dispute. 
  
 (c)    If the Dispute has not been resolved by negotiation
within 75 business days of the first Party’s notice, or if the Parties failed to meet within 30 business days of the first Party’s notice, or if the Designated Officers failed to meet within 60 business days of the first Party’s
notice, either Party may commence any litigation or other procedure allowed by law. 
  
 Section
8.19    Assignment.    Neither of the parties may assign or delegate any of its rights or duties under this Agreement without the prior written consent of the other party, which consent will not be
unreasonably withheld. This Agreement shall be binding upon, and shall inure to the benefit of, the Parties and their respective successors and permitted assigns. 
  
 Section 8.20    Interpretation.    Words in the singular shall be held to include the plural and vice versa and words
of one gender shall be held to include the other genders as the context requires. The word “including” and words of similar import when used in this Agreement means “including, without limitation,” unless the context otherwise
requires or unless otherwise specified. 
  
 Section
8.21    Headings.    The Article and Section headings contained in this Agreement are solely for the purpose of reference, are not part of the agreement of the Parties and shall not in any way
affect the meaning or interpretation of this Agreement. 
  
 *            *            *            * 
           * 
 

 17 

 IN WITNESS WHEREOF, the Parties have executed and delivered this Agreement as of the day and year first above written.

  
 
	 CROWN CORK & SEAL COMPANY, INC.
 
	 
	 By:
 	 	 

	  	 	 Name:
 
	  	 	 Title:
 
	 
	 By:
 	 	 

	  	 	 Name:
 
	  	 	 Title:
 

 
  
  
  
 
	 CONSTAR INTERNATIONAL INC.
 
	 
	 By:
 	 	 

	  	 	 Name:
 
	  	 	 Title:
 

 
 

 18 

 Appendix A—Welfare Plans 
  
 Part 1.  Crown Welfare Plans 
  
 1.      Medical Plan 
  
 2.      Dental Plan 
  
 3.      Life Insurance 
  
 4.      Long-Term Disability 
  
 5.      Supplemental Accident Insurance 
  
 6.      Cafeteria Plan 
  
 7.      Health Care Spending Account 
  
 8.      Dependent Care Spending Account 
  
 9.      Retiree Medical Plans for Salaried, Hourly and Union employees 
  
 10.    Life Insurance Program 
  
 11.    Severance Pay Policy 
  
 12.    Employee Assistance Program 
  
 13.    Tuition Reimbursement 
  
 14.    Business Travel Accident Insurance 
  
 15.    Vacation Policy 
 

 19 

 Part 2.    Constar Welfare Plans 
  
 1.      Medical Plan 
  
 2.      Dental Plan 
  
 3.      Life Insurance 
  
 4.      Long-Term Disability 
  
 5.      Supplemental Accident Insurance 
  
 6.      Cafeteria Plan 
  
 7.      Health Care Spending Account 
  
 8.      Dependent Care Spending Account 
  
 9.      Retiree Medical Plans for Salaried and Hourly employees 
  
 10.    Life Insurance Program 
  
 11.    Severance Pay Policy 
  
 12.    Employee Assistance Program 
  
 13.    Tuition Reimbursement 
  
 14.    Business Travel Accident Insurance 
  
 15.    Vacation Policy 
 

 20 

 Appendix B—Retirement Plans 
  
 Part 1—Crown Retirement Plans 
  
 1.    “Crown Pension Plans” means collectively, 
  
 a)    the Crown Salaried Pension Plan; 
  
 b)    the Crown Hourly Pension Plan; and 
  
 c)    the Crown Hourly Pension Plan for Constar Employees. 
  
 2.    “Crown Savings Plans” means collectively, 
  
 a)    the Crown 401(k) Retirement Savings Plan; and 
  
 b)    the Crown Thrift Plan. 
  
 Part 2—Constar Retirement Plans

  
 1.    “Constar Pension Plans” means collectively, 
  
 a)    the Constar Salaried Pension Plan; and 
  

b)    the Constar Hourly Pension Plan. 
  
 2.    “Constar Savings Plan” means, 
  
 a)    the Constar 401(k) Retirement Savings Plan. 
 

 21 

 Appendix C—Transition Employees 
  
 The following employees have been classified as “Transition Employees” as defined in Section 7.2 of the Agreement: 
  
 [***] 
 

	[***]
	Confidential treatment requested 
 

 

 22Prepared by R.R. Donnelley Financial -- Form of Voghera PET Preform Supply And Lease

 Exhibit 10.11 
  
 VOGHERA PET PREFORM SUPPLY AND LEASE OF RELATED ASSETS AGREEMENT 
  
 THIS IS A
VOGHERA PET PREFORM SUPPLY AND LEASE OF RELATED ASSETS AGREEMENT (the “Agreement”), dated as of                  , 2002, by and among Crown Cork Italy
S.p.A., an indirect subsidiary of Crown (“Supplier”) and Constar Plastics of Italy S.r.l., an indirect subsidiary of Constar (“Purchaser”). 
  
 Background 
  
 Supplier will supply
directly to the Constar Customers on Purchaser’s behalf and Purchaser will purchase from Supplier on the terms and conditions set forth herein, PET preforms presently manufactured at Supplier’s facility in Voghera, Italy (the
“Voghera Facility”). 
  
 Terms 
  
 NOW, THEREFORE, in consideration of the mutual covenants herein and intending to be legally bound hereby, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 1.1.    Certain
Definitions.    Capitalized terms not defined in this Agreement shall have the meanings ascribed to them in the Corporate Agreement, dated as of the date hereof, between Crown and Constar. As used in this Agreement, the
following terms shall have the respective meanings set forth below: 
  
 1.1.1.    “AAA” has the meaning set forth in Section 7.4. 
  
 1.1.2.    “Affiliate” of any Person means any Person, directly or indirectly, controlling, controlled by or under common control with such Person. 
  
 1.1.3.    “Agreement” has the meaning set forth in the preamble to the Agreement.

  
 1.1.4.    “Bankruptcy Event” means with respect to any
party, as applicable, (a) the making by such party of any assignment for the benefit of creditors of all or substantially all of its assets or the admission by such party in writing of inability to pay all or substantially all of its debts as they
become due; (b) the adjudication of such party as bankrupt or insolvent or the filing by such party of a petition or application to any tribunal for the appointment of a trustee or receiver for such party or any substantial part of the assets of
such party; or (c) the commencement of any voluntary or involuntary bankruptcy proceedings (and, with respect to involuntary bankruptcy proceedings, the failure to be discharged within 60 days), reorganization proceedings or similar proceeding with
respect to such party or the entry of an order appointing a trustee or receiver or approving a petition in any such proceeding. 
  
 1.1.5.    “Business Day” shall mean any day other than a Saturday, a Sunday or a day on which banks in Rome, Italy are authorized or obligated by law or executive
order to not open or remain closed. 
  
 1.1.6.    “Constar”
means Constar International Inc., a Delaware corporation. 
  
 1.1.7.    “Constar Customers” has the meaning set forth in Section 2.1. 
  
 1.1.8.    “Control,” “controlled by” and “under common control with”, as applied to any Person, means the possession, directly or
indirectly, of the power to direct the vote of a majority of the votes that may be cast in the election of directors (or other Persons acting in similar capacities) of such Person or otherwise to direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities or by contract or otherwise. 
  
 1.1.9.    “Crown” means Crown Cork & Seal Company, Inc., a Pennsylvania corporation. 

  
 1.1.10.    “Force Majeure
Event” has the meaning set forth in Section 6.4. 
  
 1.1.11.    “Initial Term” has the meaning set forth in Section 6.1. 
  
 1.1.12.    “Lease” has the meaning set forth in Section 5.1. 
  
 1.1.13.    “Person” means an individual, a corporation, a partnership, an association, a governmental entity, a trust or other entity or organization. 
  
 1.1.14.    “PET” shall mean polyethylene terephthalate. 
  
 1.1.15.    “PET Preforms” means all existing types of PET preforms manufactured at
the Voghera Facility as of the Initial Public Offering Date, which types of PET preforms are set forth, for the avoidance of doubt, on Schedule A hereto (the “Existing PET Preforms”). PET Preforms shall also include any other
PET preforms that are identified and mutually agreed upon by Supplier and Purchaser after the Initial Public Offering Date from time to time (the “New PET Preforms”). 
  
 1.1.16.    “Production Request” has the meaning set forth in Section 2.1. 
  
 1.1.17.    “Purchaser” has the meaning set forth in the preamble to the Agreement.

  
 1.1.18.    “Release Request” has the meaning set forth in
Section 2.1. 
  
 1.1.19.    “Supplier” has the meaning set forth
in the Preamble to the Agreement. 
  
 1.1.20.    “Term” has the
meaning set forth in Section 6.1. 
  
 1.1.21.    “Transfer Date”
has the meaning set forth in Section 5.1. 
  
 1.1.22.    “Voghera
Assets” means those assets set forth in Schedule C. 
  
 1.1.23.    “Voghera Facility” has the meaning set forth in the Background section of this Agreement. 
  
 ARTICLE II 
  
 PURCHASE OF
REQUIREMENTS 
  
 2.1.    Purchase Requirements. 
  
 (a)  Subject to the other provisions of this Article II, Purchaser agrees to purchase from Supplier 100% of Purchaser’s
requirements for PET Preforms for Purchaser’s customers specified on Schedule B hereto (the “Constar Customers”). 
  
 (b)  At least 31 days prior to the beginning of each year, Purchaser shall provide Supplier with a non-binding forecast for the PET Preforms that it will purchase from Supplier during such
year, which shall represent a good faith estimate of Purchaser’s requirements for PET Preforms for the Constar Customers. On or before the 15th day of each month, Purchaser shall submit a firm order for production during the following month (a “Production Request”), which shall not exceed [***] PET Preforms, and a
non-binding forecast for the following two months, which forecast shall represent a good faith estimate of Purchaser’s requirements for such two months. Purchaser shall be deemed to purchase, and shall be responsible for payment to Supplier
for, any PET Preforms manufactured by Supplier in response to a Production Request, regardless of whether Purchaser submits a Release Request for such PET Preforms. In addition, to maximize utilization of the Voghera Assets, Supplier may produce PET
Preforms based upon Purchaser’s non-binding forecasts. If Purchaser provides its written consent to such production, Purchaser shall be deemed to purchase, and shall be responsible for payment to Supplier for, any PET Preforms manufactured by
Supplier in response to such forecast, regardless of whether Purchaser submits a Release Request for such PET Preforms. At any time that Supplier is holding greater than [***] PET Preforms in inventory at the Voghera Facility in response to
Production Requests or approved production based on Purchaser’s forecasts, Supplier shall promptly notify Purchaser of the number and type 
 

	[***]
	Confidential treatment requested 
 

 

 2 

  
 of PET Preforms held in inventory and shall not be obligated to accept Production Requests or to produce
and hold PET Preforms until such inventory is reduced below [***] PET Preforms. 
  
 (c)  From time to time
Purchaser may submit requests to release PET Preforms for shipment (“Release Requests”) to Supplier. So long as the aggregate amount of PET Preforms released during a month does not exceed that month’s Production Request and
agreed existing stockholdings, Supplier shall satisfy any Release Request; provided, that Supplier shall not be obligated, but shall use commercially reasonable efforts, to ship PET Preforms pursuant to a Release Request on less than 5 days
notice. In the event that the aggregate amount of PET Preforms released during a month exceeds that month’s Production Request and agreed existing stockholdings, Supplier shall use its commercially reasonable efforts to satisfy the Release
Request; provided, however, that in no event shall Supplier be obligated to utilize production equipment other than the Voghera Assets. With respect to Release Requests that (in the aggregate, if applicable) do not exceed the relevant
month’s Production Request, Supplier will ship no less than [***] of the released PET Preforms to the Constar Customers, as directed by Purchaser, OTIF (on time, in full). The measurement of OTIF shipments shall conform to historic practices of
the Voghera Facility. If Supplier is unable to satisfy a Release Request, Supplier shall promptly notify Purchaser. After such notification, Purchaser may, at its option, direct Supplier to resequence utilization of the Voghera Assets to satisfy the
Release Request; provided, however, that, in the event that the aggregate amount of PET Preforms released during a month exceeds that month’s Production Request, Supplier shall be under no obligation to resequence utilization of
the Voghera Assets if such resequencing would adversely effect Supplier’s other operations at the Voghera Facility. If Supplier is unable to satisfy a Release Request that (in the aggregate, if applicable) did not exceed the relevant
month’s Production Request and Purchaser is able to secure an alternative supply, such PET Preforms shall not be included in calculating the requirements commitment in clause (a) above. Purchaser shall be deemed to purchase, and shall be
responsible for payment to Supplier for, any PET Preforms shipped by Supplier in response to a Release Request, regardless of whether the Constar Customer ultimately pays Purchaser for such PET Preforms. Supplier shall not be responsible for
collecting payment from the Constar Customer for PET Preforms manufactured and shipped hereunder. 
  
 (d)  Consistent with historic practices at the Voghera Facility, Purchaser shall provide Supplier, or shall direct the Constar Customers to provide Supplier, at Supplier’s cost, with resin necessary to produce the PET
Preforms. Supplier shall not be deemed to breach this Agreement as a result of, and shall have no liability to Purchaser for, any failure to perform its obligations hereunder that results from the failure of Purchaser or the Constar Customers to
provide Supplier with resin necessary to produce the PET Preforms. 
  
 (e)  Within 30 calendar days of the
end of each three-month period ending March 31, June 30, September 30 and December 31 of each year during the Term, Purchaser shall provide Supplier a certificate from a member of it’s senior management attesting to Purchaser’s conformance
to its obligations under Section 2.1(a) of this Agreement during such three-month period. If Purchaser does not provide such certificate to Supplier within such 30 calendar day period or upon Supplier’s request, Purchaser shall permit
Supplier’s outside accountants to access the books and records of Purchaser in order to review the books and records relating to purchases of such PET Preforms by the Constar Customers. 
  
 (f)  Notwithstanding the foregoing, Supplier shall not be required to manufacture and/or ship any specific PET Preforms if Supplier reasonably determines that any
such manufacture or shipment will result in a material violation of any applicable governmental laws or regulations. 
  
 (g)  The parties agree to use good faith efforts to modify the provisions of this Section 2 if either party is unsatisfied with the operation of such provisions; provided, that no party shall be under any obligation
to agree to any such changes. 
  
 

	[***]
	Confidential treatment requested 
 

 

 3 

  
 ARTICLE III 
  
 PRICE 
  
 3.1.    Pricing.    (a)  For Existing PET Preforms, Purchaser will pay to Supplier the prices set forth on Schedule A hereto for the relevant PET Preforms purchased
pursuant to this Agreement. 
  
 (b)  For New PET Preforms, mutually agreeable pricing will be established
between Supplier and Purchaser on a case-by-case basis. Supplier shall have no obligation to supply, and Purchaser shall have no obligation to purchase, New PET Preforms for which pricing cannot be agreed upon and any such New PET Preforms shall not
be calculated in the requirements commitment set forth in Section 2.1(a). If pricing of New PET Preforms is agreed upon, such New PET Preforms shall be calculated in such requirements commitment. 
  

ARTICLE IV 
  
 DELIVERY

  
 4.1.    Delivery.    Delivery of all PET Preforms sold under this
Agreement shall be F.O.B. Supplier at the Voghera Facility. Title and risk of loss or damages to all PET Preforms shall pass to Purchaser upon shipment, F.O.B. point, by Supplier to Purchaser. Purchaser shall pay for all freight and other costs
associated with shipment of PET Preforms to the location of delivery. For PET Preforms delivered F.O.B. Supplier, Supplier shall furnish the facilities and personnel for loading PET Preforms at the F.O.B. point. 
  
 4.2.    Payment.    Supplier shall provide invoices to Purchaser for PET Preforms and, if
applicable, shipping or other charges upon the earlier of (i) release of such PET Preforms pursuant to a Release Request or (ii) 90 days from the date of acceptance of the Production Request pursuant to which such PET Preforms were produced. All
invoices from Supplier to Purchaser for PET Preforms shall be paid by Purchaser on a net-40 days basis from the end of the month in which such invoice was dated. 
  
 ARTICLE V 
  
 LEASE OF
RELATED ASSETS 
  
 5.1.    Lease and Removal of Voghera
Assets.    The Voghera Assets shall remain at the Voghera Facility and Supplier shall, subject to the terms and conditions set forth in this Article V, lease the Voghera Assets from Purchaser for the Term (the
“Lease”). Within 90 days after the last day of the Term, Purchaser shall remove, at its expense, and shall be solely responsible for removing, the Voghera Assets from the Voghera Facility (the “Transfer Date”).
Purchaser shall provide Supplier with written notice of the Transfer Date at least 60 Business Days prior to the Transfer Date. If the Voghera Assets shall not be removed on or prior to the Transfer Date, Purchaser shall reimburse Supplier all costs
and expenses incurred by Supplier on account of maintaining and storing the Voghera Assets at the Voghera Facility, and any other incidental, consequential or other damages or losses incurred by Supplier as a result of such non-removal until
Purchaser removes the Voghera Assets. Notwithstanding the preceding sentence or anything else in this Agreement to the contrary, Supplier shall have no responsibilities or obligations of any kind, including, without limitation, as to operation,
storage, insurance or maintenance, with respect to the Voghera Assets after the Transfer Date. 
  
 5.2.    Rent.    Consideration for the lease of Voghera Assets from Purchaser to Supplier for the Term is incorporated in the prices for Existing PET Preforms included in Schedule
A and will be included in the prices for any New PET Preforms. 
 

 4 

  
 5.3.    Insurance.    Supplier
shall maintain adequate insurance with respect to the Voghera Assets insuring against such risks customarily insured against in accordance with Supplier’s practice until their removal from the Voghera Facility by Purchaser in accordance with
Section 5.1 or until 90 days after the Term, whichever is earlier. Supplier shall, upon Purchaser’s reasonable request, provide evidence of insurance and appropriate loss payable endorsements in favor of Purchaser. Purchaser hereby assumes and
shall bear the entire risk of damage, whether or not insured against, of the Voghera Assets arising out of the operation of the Voghera Assets or arising out of Purchaser’s breach of this Agreement, negligence or willful misconduct.

  
 5.4.    Maintenance and Improvements.    During the Term, Supplier
shall perform all maintenance reasonably required to keep the Voghera Assets in good operating order, repair, condition and appearance and in accordance with normal industry standards, normal wear and tear and impairments of value excepted.
Notwithstanding the foregoing, Purchaser, and not Supplier or any of its Affiliates, shall be obliged to conduct, or cause to be conducted, mold refurbishments reasonably required to maintain the Voghera Assets and shall be responsible for the cost
of repairing or replacing any Voghera Assets that are defective or malfunctioning (except to the extent that such defects or malfunctions arise as a result of Supplier’s failure to maintain the Voghera Assets in accordance with the first
sentence of this Section 5.4). Prior to the start of each calendar year, Supplier shall provide Purchaser with an estimate of capital investments with respect to the Voghera assets for the next year. Neither Supplier nor any of its Affiliates shall
make any capital expenditures in respect of capital investments with respect to the Voghera Assets without the prior written consent of Purchaser. Upon receipt of such consent, Supplier shall make, or cause to be made, such capital expenditures and
shall invoice Purchaser for any expenses incurred in undertaking such capital expenditures. If Purchaser does not consent to, or agree to reimburse Supplier for any such capital expenditures, neither Supplier nor any of its Affiliates shall have any
obligation to make such capital expenditures and none of them shall be liable for any interruptions or deficiencies if the supply of PET Preforms under this Agreement, any deterioration of the Voghera Assets or any other liability, arising out of or
resulting from the failure to make any such capital expenditure. The parties agree that capital expenditures subject to approval and reimbursement by Purchaser shall not include costs associated with routine maintenance (other than mold
refurbishments) covered by the first sentence of this Section 5.4. 
  
 5.5.    Warranties.    During the Term, Purchaser assigns to Supplier, and Supplier may have the benefit of any and all manufacturers’ warranties, service agreements and patent
indemnities (copies of same to be provided to Supplier), if any, with respect to the Voghera Assets, to the extent assignable by Purchaser, until they are removed by Purchaser. 
  
 5.6.    No Interference.    Purchaser covenants that it shall not grant or convey any interest that, if used or enjoyed in
accordance with its terms, would interfere with the use, enjoyment, or operation of the Voghera Assets by Supplier, its Affiliates or their respective permitted successors, assigns or subtenants at any time prior to the removal of the Voghera Assets
by Purchaser; provided, that Purchaser shall be permitted to grant a security interest in the Voghera Assets to secure the indebtedness of Purchaser or any of its Affiliates. 
  
 5.7.    Possession and Quiet Enjoyment.    Purchaser covenants with Supplier that Supplier and its Affiliates will enjoy
quiet possession of the Voghera Assets and the right to use the Voghera Assets free from claims of persons in possession and third parties claiming rights thereto. 
  
 5.8.    Access.    Prior to the Transfer Date, representatives of Purchaser may, at their own expense, during normal business
hours and upon reasonable notice, inspect the Voghera Assets and have access to the employees whose primary responsibilities relate to the Voghera Assets; provided, that a representative of Supplier shall be present at all such times; and,
provided, further, that no exercise of such inspection shall materially interfere with the normal operation of the Voghera Assets or the business of Supplier. 
 

 5 

  
 ARTICLE VI 
  
 TERM, DEFAULT AND OTHER PROVISIONS 
  
 6.1.    Term.    This Agreement shall commence upon the Initial Public Offering Date and shall continue until December 31,
2003 (the “Initial Term”). Purchaser may, at its option, extend the Initial Term until June 30, 2004 on the terms contained herein (the Initial Term, as so extended, the “Term”), by giving Supplier written notice of
such extension no more than 120 or less than 60 days written notice thereof. 
  
 6.2.    Events of Default.    (a)  The following shall be considered events of default and shall give rise to a right of Supplier to terminate this Agreement within 45 days of
Supplier’s discovery of such event of default: (i) Purchaser fails to make timely payments for invoiced PET Products, subject to a 10 day cure period after notice regarding such breach, (ii) Purchaser or Constar suffers a Bankruptcy Event,
(iii) Purchaser materially breaches any other applicable provision of this Agreement, subject to a 30-day cure period after notice regarding such breach or (iv) Purchaser or Constar experiences a change of Control such that Purchaser or Constar is
controlled by a competitor of either Constar or Crown. 
  
 (b)  The following shall be considered events of
default and shall give rise to a right of Purchaser to terminate this Agreement within 45 days of Purchaser’s discovery of such event of default: (i) Supplier or Crown suffers a Bankruptcy Event, (ii) Supplier materially breaches any other
applicable provision of this Agreement, subject to a 30-day cure period after notice regarding such breach or (iii) Supplier or Crown experiences a change of Control such that Supplier or Crown is controlled by a competitor of either Constar or
Crown. 
  
 (c)  Each party shall provide the other party with prompt notice upon discovery of a default by
the other party; provided, that failure to give such notice shall not limit or restrict the ability of a party to terminate this Agreement subject to the cure periods provided in this Section 6.2. 
  
 6.3.    No Waiver.    If the party not in default continues to make or accept shipments, as
the case may be, despite the other party’s default, such action shall not constitute a waiver of the default, or in any way affect the rights under this Agreement of the party not in default. A waiver by either party of any breach of any
provision shall not constitute a waiver of any other breach of such provision or of any other provision. 
  
 6.4.    Force Majeure.    Neither Supplier nor Purchaser shall be responsible for any failure or delay in performance due to causes beyond the reasonable control of the affected party
that render performance commercially impracticable (a “Force Majeure Event”). Any party, if affected by any such cause, may, upon written notice to the other specifying the reasons therefore, reduce its obligations to the other by
an amount not in excess of the quantity that it is unable to deliver or purchase due to such cause. In the event such a curtailment by either party continues in whole or in part for a period of 5 continuous days, then, in the case of a Supplier
Force Majeure Event, Purchaser may arrange for temporary supply of its requirements until Supplier can resume delivery of PET Preforms to Purchaser, and, in the case of a Purchaser Force Majeure Event, Purchaser shall use its best efforts to sell to
third parties those PET Preforms which would have been delivered to the Constar Customers on Purchaser’s behalf (in accordance with Purchaser’s delivery schedule) in the absence of such curtailment. Notwithstanding anything to the contrary
in this Agreement, this provision shall not apply to or otherwise excuse the failure to pay any uncontested costs or fees due under this Agreement when due (including payment for PET Preforms produced in accordance with Section 2.1(b), regardless of
whether Purchaser submits a Release Request for such PET Preforms). 
 

 6 

  
 6.5.    Warranty; Limitation of
Liability.    (a)  Supplier warrants that all PET Preforms sold to Purchaser (i) shall be free from defects in workmanship and materials, except for any defects arising out of actions taken by or at the direction of
Purchaser or materials provided by or on behalf of Purchaser and (ii) shall comply with the historical specifications for Existing PET Preforms and with any agreed upon specifications for New PET Preforms. Supplier’s liability under this
warranty, whether in contract or tort, shall be limited exclusively to the repayment of the purchase price of the defective PET Preforms. Supplier will make no other warranties with respect to the PET Preforms. OTHER THAN THE ABOVE WARRANTY,
SUPPLIER MAKES NO WARRANTY, WHETHER OF MERCHANTABILITY, FITNESS OR OTHERWISE, EXPRESS OR IMPLIED, IN FACT OR BY LAW, AND SUPPLIER SHALL HAVE NO FURTHER OBLIGATION OR LIABILITY UNDER THE ABOVE WARRANTY OR WITH RESPECT TO THE PET PREFORMS. SUBJECT TO
THE FOLLOWING SENTENCE, SUPPLIER SHALL IN NO EVENT BE LIABLE FOR PUNITIVE, CONSEQUENTIAL OR INCIDENTAL DAMAGES. 
  
 (b)  Purchaser agrees to waive all claims for shortages in the PET Preforms ordered and received hereunder unless such claims are submitted in writing to Supplier within 30 days after receipt of notice from the Constar
Customer of such shortage. 
  
 (c)  Subject to the above provisions, Purchaser shall not bring any other
action arising hereunder unless such action is brought within one year after the date such cause of action accrues. 
  
 (d)   Supplier shall not be liable for, and Purchaser assumes responsibility for, all personal injury and property damage resulting from the handling, possession, use or resale of the PET Preforms produced hereunder after
such PET Preforms are delivered to the Constar Customer, whether the same is used alone or in combination with other substances, except to the extent any such personal injury or property damage results from the willful misconduct of Supplier.

  
 6.6.    Confidentiality; Disclosures. 
  
 6.6.1.    Confidentiality.    The parties agree (a) to maintain all information, whether in
written, oral, electronic or other form, necessary for or utilized or received pursuant to any terms of this Agreement, as the case may be, including, without limitation, prices, cost components, payment terms, technical knowledge, features,
know-how, material, manufacturing, Release Requests, Production Requests, tooling and equipment specifications and other information necessary to carry out the terms of this Agreement, as the case may be (the “Confidential
Information”), as secret and confidential and (b) not to disclose the Confidential Information to any third person or party (except for employees, counsel, contractors, customers, consultants or vendors who have a need to know and are
informed of the confidential nature of such information by the disclosing party). Each party shall accept responsibility and be liable for a violation of the terms of this Section 6.6. by any third person with respect to Confidential Information
disclosed to the third person by such party. The parties will use the same measures to maintain the confidentiality of the Confidential Information of the other party in its possession or control that it uses to maintain the confidentiality of its
own Confidential Information of similar type and importance.  Notwithstanding the foregoing, either party or their Affiliates may describe this Agreement in, and include this Agreement with, filings with the U.S. Securities and Exchange
Commission and any related prospectuses, including such filings or prospectuses in connection with any offering of securities. Confidential Information will not include information that (i) is in or enters the public domain without breach of this
Agreement, or (ii) the receiving party lawfully receives from a third party without restriction on disclosure and, to the receiving party’s knowledge, without breach of a nondisclosure obligation. 
  
 6.6.2.    Disclosure to Governmental Agency.    Notwithstanding the foregoing, each party
shall be permitted to disclose the Confidential Information and/or any portion thereof (i) to a governmental agency or authority as required in response to a subpoena therefor, (ii) in connection with formal requests for discovery under applicable
rules of civil procedure in a legal action before a court of competent jurisdiction to which such party is a party and (iii) as otherwise required by law; provided, however, that, in any such case, each party shall notify
 
 

 7 

 
the other party as early as reasonably practicable prior to disclosure to allow such party to take appropriate measures to preserve the confidentiality of such information at the expense of such
party. 
  
 6.6.3.    Ownership of Information.    All Confidential
Information supplied or developed by either party will be and remain the sole and exclusive property of the party who supplied or developed it; provided, however, that any inventions, discoveries, technical knowledge or know-how
relating to the manufacture or sale of PET preforms or containers and arising from the Voghera Assets or the production of PET Preforms pursuant to this Agreement shall belong exclusively to Purchaser and Supplier hereby irrevocably and
unconditionally assigns and transfers to Purchaser all rights of every kind, nature or description that Supplier may have in or to such inventions, discoveries, technological knowledge or know-how. 
  
 6.6.4.    Return of Confidential Information.    Upon the written request of a party which
has disclosed information covered by Section 6.6 in written, printed or other tangible form, all such readily available information and all copies thereof, including samples or materials, and all notes or other materials derived from such
information shall be returned to the party which disclosed such information. 
  
 6.7.    Right
of Setoff.    Purchaser and Supplier shall waive all rights of setoff and recoupment either may have against the other or any of the other’s Affiliates with respect to all amounts which may be owed from time to time
pursuant to this Agreement. 
  
 6.8.    Indemnification.    With
respect to PET Preforms manufactured by Supplier pursuant to this Agreement, Purchaser shall defend, indemnify and hold Supplier and its Affiliates and their respective officers, directors, employees, successors and permitted assigns harmless
against any and all liability, damage, loss, cost or expense arising out of (i) the manufacture, use or sale of such PET Preforms or any products liability arising therefrom (except any liability directly related to and directly caused by the gross
negligence or willful misconduct of Supplier in manufacturing the PET Preforms) and (ii) all claims, suits or actions for bodily injuries suffered in connection with the operations or maintenance of the Voghera Assets and arising out of
Purchaser’s breach of this Agreement, negligence or willful misconduct. Furthermore, Purchaser shall indemnify, defend and hold Supplier and its Affiliates and their respective officers, directors, employees, successors and permitted assigns
harmless against all damages, claims, judgments, decrees, costs, expenses and demands for unfair competition or infringement of any United States or foreign trademark or copyright as a direct result of Supplier’s manufacture of PET Preforms for
Purchaser conforming to the specifications required by Purchaser or the failure of such conforming PET Preforms to comply with any federal, state, local or other law or regulation. Supplier shall not settle any claim for which it is entitled to
indemnification hereunder without the written consent of Purchaser, which consent shall not be unreasonably withheld. 
 

 8 

  
 ARTICLE VII 
  
 MISCELLANEOUS 
  
 7.1.    Notices. 
  
 All notices and other communications required or
permitted hereunder shall be in writing, shall be deemed duly given upon actual receipt, and shall be delivered (a) in person, (b) by registered or certified mail, postage prepaid, return receipt requested or (c) by facsimile or other generally
accepted means of electronic transmission (provided that a copy of any notice delivered pursuant to this clause (c) shall also be sent pursuant to clause (b)), addressed as follows: 
  
 if to Purchaser, to: 
  
 Constar International Inc. 
 One Crown Way 
 Philadelphia, PA 19154-4599 
 Attention: Michael J. Hoffman 
 Facsimile: 
  
 if to Crown, to: 
  
 Crown Cork Italy S.p.A. 
 Via Lomellina 134 
 27058 Voghera

 Attention: Paolo Minardi 
 Facsimile: 
  
 with a copy to 
  

Crown Cork & Seal Company, Inc. 
 One
Crown Way 
 Philadelphia, PA 19154 
 Attention: Facsimile: 
  
 or to such other addresses or telecopy numbers as may be specified by like notice to the other
parties. 
  
 7.2.    Independent Contractor.    None of the parties is
now, nor shall it be made by this Agreement, an agent or legal representative of the other party for any purpose, and neither party has any right or authority to create any obligation, express or implied, on behalf of the other party, to accept any
service of process upon it, or to receive any notices of any kind on its behalf. All activities by Supplier hereunder shall be carried on by Supplier as an independent contractor and not as an agent for Purchaser. 
  
 7.3.    Governing Law.    This Agreement shall be governed by and construed in accordance
with the laws of the Commonwealth of Pennsylvania. 
  
 7.4.    Dispute
Resolution:  Negotiation and Arbitration. 
  
 7.4.1.    The parties shall attempt
to resolve any dispute arising out of or relating to this Agreement promptly by negotiation in good faith between executives who have authority to settle the dispute. A party shall give the other party written notice of any dispute not resolved in
the ordinary course of business. Within 10 Business Days after delivery of such notice, the party receiving notice shall submit to the other a written response thereto. The notice and the response shall include: (i) a statement of each party’s
position(s) regarding the matter(s) in dispute and a summary of arguments in support thereof, and (ii) the name and title of the executive who will represent that party and any other Person who will accompany that executive. 
 

 9 

  
 7.4.2.    Within 10 Business Days after delivery of the
notice, the designated executives shall meet at a mutually acceptable time and place, and thereafter, as often as they reasonably deem necessary, to attempt to resolve the dispute. All reasonable requests for information made by one party to any
other shall be honored in a timely fashion. All negotiations conducted pursuant to this Section 7.4 (and any of the parties’ submissions in contemplation hereof) shall be deemed Confidential Information and shall be treated by the parties and
their representatives as compromise and settlement negotiations under the United States Federal Rules of Evidence and any similar state rules. 
  
 7.4.3.    If the matter in dispute has not been resolved within 30 days after the first meeting of the executives to attempt to resolve the dispute, either party may submit the
dispute to binding arbitration to the Philadelphia, Pennsylvania office of the American Arbitration Association (“AAA”) in accordance with the procedures set forth in the Commercial Arbitration Rules of the AAA. 

 
 7.4.4.    The Commercial Arbitration Rules of the AAA, as modified or revised by the provisions of this
Section 7.4, shall govern any arbitration proceeding hereunder. The arbitration shall be conducted by three arbitrators selected pursuant to Rule 13 of the Commercial Arbitration Rules, and pre-hearing discovery shall be permitted if and only to the
extent determined by the arbitrator to be necessary in order to effectuate resolution of the matter in dispute. The arbitrator’s decision shall be rendered within 30 days of the conclusion of any hearing hereunder and the arbitrator’s
judgment and award may be entered and enforced in any court of competent jurisdiction. 
  
 7.4.5.    Resolution of disputes under the procedures of this Section 7.4 shall be the sole and exclusive means of resolving disputes arising out of or relating to this Agreement; provided, however,
that nothing herein shall preclude the Parties from seeking in any court of competent jurisdiction temporary or interim injunctive relief to the extent necessary to preserve the subject matter of the dispute pending resolution under this Section
7.4. 
  
 7.5.    Consent to Jurisdiction. 
  
 Supplier and Purchaser hereby agree and consent to be subject to the exclusive jurisdiction of the United States District Court for the
Eastern District of Pennsylvania, and in the absence of such Federal jurisdiction, the parties consent to be subject to the exclusive jurisdiction of any state court located in the City of Philadelphia and hereby waive the right to assert the lack
of personal or subject matter jurisdiction or improper venue in connection with any such suit, action or other proceeding. In furtherance of the foregoing, each of the parties (i) waives the defense of inconvenient forum, (ii) agrees not to commence
any suit, action or other proceeding arising out of this Agreement or any transactions contemplated hereby other than in any such court (other than the mandatory submission to arbitration in accordance with Section 7.4), and (iii) agrees that a
final judgment in any such suit, action or other proceeding shall be conclusive and may be enforced in other jurisdictions by suit or judgment or in any other manner provided by law. 
  
 7.6.    Entire Agreement.    This Agreement constitutes the entire understanding of the parties hereto with respect to the
subject matter hereof and supersedes any prior agreement or understanding, written or oral, relating to the subject matter of this Agreement. 
  
 7.7.    Successors/No Third Party Beneficiaries.    This Agreement shall not be assignable, except that Supplier may, after giving notice to Purchaser,
assign its rights and obligations under this Agreement so long as the assignee agrees in writing to assume Supplier’s obligations hereunder; provided, that Supplier shall not assign its rights and obligations under this Agreement to a
competitor of Purchaser in the PET preform and container industry without the prior written consent of Purchaser. This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and
permitted assigns. Nothing in this Agreement, express or implied, is intended to or shall (a) confer on any person other than the parties hereto and their respective successors or permitted assigns any rights (including third party beneficiary
rights), remedies, obligations or liabilities under or by reason of this Agreement, or (b) constitute the parties hereto as partners or as participants in a joint venture. This Agreement shall not provide third parties with any remedy, claim,
liability, reimbursement, cause of action or other right in excess of those existing without reference to the terms of this Agreement. 
 

 10 

  
 7.8.     Severability.    If any
term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be held invalid or unenforceable by a court of competent jurisdiction, the remainder of this Agreement or the application of any such
term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent
permitted by law. If any of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, scope, activity or subject, it shall be construed by limiting and reducing it, so as to be valid and
enforceable to the extent compatible with the applicable law or the determination by a court of competent jurisdiction. 
  
 7.9.    Counterparts.    This Agreement and any amendments hereto may be executed in any number of counterparts, each of which shall be deemed an original instrument, but all of which
together shall constitute but one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile shall be as effective as delivery of a manually executed counterpart of this Agreement. 

 
 7.10.    Section Headings; Interpretive Issues.    The section and paragraph
headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. Supplier and Purchaser have participated jointly in the drafting and negotiation of this Agreement.
In the event any ambiguity or question of interpretation or intent arises, this Agreement shall be construed as if drafted jointly by Supplier and Purchaser and no presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Agreement. 
  
 7.11.    Effectiveness.    The terms of this Agreement shall not become effective until the Initial Public Offering Date. 
  
 7.12    Pronouns.    Whenever the context may require, any pronouns used herein shall be deemed also to include the
corresponding neuter, masculine or feminine forms. 
  
 7.13.    Further
Assurances.    The parties shall execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such instruments and take such other action as may be necessary or advisable to carry out their
obligations under this Agreement and under any exhibit, document or other instrument delivered pursuant hereto. 
  
 7.14.    Amendment and Modification.    This Agreement may not be amended or modified except by written instrument duly executed by the parties hereto. No course of dealing between or
among any persons having any interest in this Agreement will be deemed effective to modify, amend or discharge any part of this Agreement or any rights or obligations of any person under or by reason of this Agreement. 
 

 11 

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

  
 CONSTAR PLASTICS OF ITALY S.R.L.

  
 By:                                     
                                        
                    
 Name: 
 Title: 
  
 CROWN CORK ITALY S.P.A. 
  
 By:                                     
                                        
                    
 Name: 
 Title: 
 

 12 

  
 Schedule A 
  
 Existing PET Preforms and Prices 
  
 In EUR 

 
 [***] 
  
  
  
 
[***] Confidential treatment requested 

 Schedule B 
  
 Constar Customers 
  
 [***] 
  
  
 

	[***]
	Confidential treatment requested 
 

 Schedule C 
  
 Voghera Assets 
  
 [***] 
  
 

	[***]
	Confidential treatment requested

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