Document:

Prepared by R.R. Donnelley Financial -- Form of Non-Competition Agreement

  
  Confidential Treatment has been requested by Constar International Inc.
pursuant to Rule 406. All non-public information has been filed with the Securities and Exchange Commission. 
   
 Exhibit 10.3 
  
 NON-COMPETITION AGREEMENT 
  
 THIS NON-COMPETITION AGREEMENT (the “Agreement”) is entered into as of
            , 2002 , by and between CONSTAR INTERNATIONAL INC., a Delaware corporation (“Constar”) and CROWN CORK & SEAL COMPANY, INC., a Pennsylvania corporation
(“Crown”). 
  
  
 RECITALS 
  
 A.    Crown owns all of the issued and outstanding common stock, $.01 par value per share (“Common
Stock”), of Constar. 
  
  B.    Crown and Constar are contemplating that an initial
public offering will be made of all of the capital stock of Constar (the “Initial Public Offering”). 
   
 C.    The parties desire to enter into this Agreement to set forth their agreement regarding the scope of competing activities in which they may engage after the date of the completion of the Initial Public
Offering (the “Closing Date”). 
  
  
 AGREEMENTS 

 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Crown and
Constar, for themselves and their successors and assigns, and intending to be legally bound hereby, hereby agree as follows: 
  
 Section 1.    Restrictive Covenants. 
  
 (a)    For purposes of this Agreement, “Affiliate” shall mean, with respect to either party, any entity directly or indirectly controlling, controlled by, or under common control with, such party
at any time during the period for which the determination of affiliation is being made. For purposes of this definition, the term “control” (including the correlative meanings of the terms “controlled by” and “under common
control with”), as used with respect to any entity, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of management policies of such entity, whether through the ownership of voting securities or by
contract or otherwise. For purposes of this definition, under no circumstances shall (i) Constar be deemed to be an Affiliate of Crown, (ii) any Affiliates of Constar be deemed to be Affiliates of Crown if such Affiliates’ relationship to Crown
exists solely as a result of their being Affiliates of Constar, (iii) Crown be deemed to be an Affiliate of Constar or (iv) any Affiliates of Crown be deemed to be Affiliates of Constar if such Affiliates’ relationship to Constar exists solely
as a result of their being Affiliates of Crown. 
  
 (b)    Constar covenants and
agrees, on behalf of itself and its Affiliates, that during the five-year period immediately following the Closing Date (the “Restricted Period”), neither Constar nor any of its Affiliates shall directly or indirectly engage in,
manage, operate or join in the management or operation of, or provide marketing, research or manufacturing support or act as a distributor for, or acquire any ownership interest in any firm, corporation, partnership, proprietorship or other business
entity that engages in, manages, operates or joins in the 

 
management or operation of, or provides marketing, research or manufacturing support or acts as a distributor for, plastic or plastic/metal composite closures and systems to fit glass, plastic or
metal containers and dispensing, tamper-evident, child-resistant and lined and unlined single- and multi-component closures and droppers (the “Plastic Closures Business”), so long as Crown, or any Affiliate of Crown, continues to
operate in the Plastic Closures Business; provided, however, that it shall not be a violation of this Section 1(b) for Constar or any of its Affiliates (i) to own, directly or indirectly, solely as an investment, securities of any
entity engaged in the Plastic Closures Business that are traded on a national securities exchange or the Nasdaq Stock Market (or a recognized securities exchange outside the U.S.) if Constar or any of its Affiliates (x) is not a controlling person
or a member of a group that controls such entity and (y) does not, directly or indirectly, own more than 10% or more of the voting securities of such entity, (ii) to directly or indirectly acquire Control of any entity engaged in the Plastic
Closures Business, provided that Constar disposes of the Plastic Closures Business of such entity within eighteen months after the closing date of such acquisition, (iii) to engage in the Plastic Closures Business solely to the extent and for
the term permitted under the Newark Component Supply and Lease of Related Assets Agreement, (iv) to continue operating the Plastic Closures Business that Constar currently conducts at its facility in Sherburn, England, provided that such
facility may only produce and distribute products related to the Plastic Closures Business in the United Kingdom and Ireland for use on products filled in the United Kingdom and Ireland and solely in accordance with the terms of the Patent License
Agreement or (v) to perform research activities involving products within the Plastic Closures Business to the extent that such research is necessary to ensure compatibility of Constar’s plastic bottles and preforms with plastic and
plastic/metal closures. 
  
 (c)    Crown covenants and agrees, on behalf of
itself and its Affiliates, that during the Restricted Period, neither Crown nor any of its Affiliates shall within the Restricted Territory (set forth on Schedule 1(c)(A)) directly or indirectly engage in, manage, operate or join in the management
or operation of, or provide marketing, research or manufacturing support or act as a distributor for, or acquire any ownership interest in any firm, corporation, partnership, proprietorship or other business entity that engages in, manages, operates
or joins in the management or operation of, or provides marketing, research or manufacturing support or acts as a distributor for, bottles and preforms manufactured from polyethylene terephthalate (the “PET Business”), so long as
Constar, or any Affiliate of Constar, continues to operate in the PET Business; provided, however, that it shall not be a violation of this Section 1(c) for Crown or any of its Affiliates (i) to own, directly or indirectly, solely as
an investment, securities of any entity engaged in the PET Business that are traded on a national securities exchange or the Nasdaq Stock Market (or a recognized securities exchange outside the U.S.) if Crown or any of its Affiliates (x) is not a
controlling person or a member of a group that controls such entity and (y) does not, directly or indirectly, own more than 10% or more of the voting securities of such entity, (ii) to directly or indirectly acquire Control of any entity engaged in
the PET Business, provided that Crown disposes of the PET Business of such entity within eighteen months after the closing date of such acquisition, (iii) to engage in the production at Crown’s facility located in Bridge of Allan,
Stirling, Scotland of, and to distribute, Limited PET Bottles for specified uses as set forth on Schedule 1(c)(B), and to perform related management, operational, marketing, research and manufacturing activities, provided that Crown may
construct a replacement facility for such Bridge of Allan facility, which facility may then engage in such activities (iv) to engage in the production through FABA Sirma S.p.A in Parma, Italy and through FABA Sud S.p.A. in 
 

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Nocera Superiore (Salerno), Italy (together, the “FABA Companies”), and distribution in the Limited Markets (as set forth on Schedule 1(c)(B)), of bottles and preforms
manufactured from polyethylene terephthalate in the Limited Product Lines (as set forth on Schedule 1(c)(B)), and related management, operational, marketing, research and manufacturing activities, (v) to engage in the production at Crown’s
Risdon-AMS Division, and distribution on a global basis, of Cosmetics and Fragrance Bottles (as defined on Schedule 1(c)(B)) using PET and any method of production, and related management, operational, marketing, research and manufacturing
activities, notwithstanding the prohibitions of Section 1(d), (vi) to engage in the PET Business solely to the extent and for the term permitted under the Salt Lake City PET Products Supply and Lease Agreement, (vii) to engage in the PET Business
solely to the extent and for the term permitted under the Voghera PET Preform Supply and Lease of Related Assets Agreement, (viii) to engage in the PET Business solely to the extent and for the term permitted under the FABA Supply Agreement, (ix) to
engage in the production and distribution, on a global basis, of aerosol cans manufactured from polyethylene terephthalate, and to perform related management, operational, marketing, research and manufacturing activities; provided that, in
the event that Crown decides to have the manufacturing of aerosol cans manufactured from polyethylene terephthalate performed by a third party, Crown will collect bids from potential third party manufacturers and will then present Constar with the
terms of the most favorable bid (the “Notice of Terms”), as decided by Crown in its sole discretion, upon which time Constar will have 10 days from the date of delivery to Constar of the Notice of Terms to evaluate the terms thereof
and notify Crown that it is willing to manufacture such aerosol cans on terms at least as favorable to Crown as those set forth in the Notice of Terms, in which event Constar and Crown will negotiate in good faith and will have 30 days to reach a
definitive agreement with respect to such manufacturing services (the “Constar Right of First Refusal”); provided, however, that, upon the earlier to occur of (x) 10 days having elapsed since the date of delivery to
Constar of the Notice of Terms without Constar notifying Crown that it is exercising the Constar Right of First Refusal, (y) 40 days having elapsed since the date of delivery to Constar of the Notice of Terms without Constar and Crown entering into
a definitive agreement with respect to such manufacturing services, and (z) Constar having notified Crown in writing that it will not exercise the Constar Right of First Refusal, Crown will be free to engage any other third party to provide such
manufacturing services; provided, further, that, the Constar Right of First Refusal will terminate upon a change of Control of Constar, (x) to engage in the production at Crown’s Specialty Bottles Division in Europe, and
distribution in the Restricted Markets (as set forth on Schedule 1(c)(B)), of bottles and preforms manufactured from polyethylene terephthalate in the Restricted Product Lines (as set forth on Schedule 1(c)(B)), and to perform related management,
operational, marketing, research and manufacturing activities, (xi) notwithstanding anything in this Agreement to the contrary, in the event that any Crown Entity is partially sold in any manner after the Initial Public Offering Date, (x) to retain
any ownership interest in any such Crown Entity (including where the Crown Entity is no longer a Crown Entity after the transaction) or (y) to acquire in connection with any such transaction any ownership interest in any entity that acquires any
part of any such Crown Entity (including where the Crown Entity is no longer a Crown Entity after the transaction), (xii) to provide research services with respect to pharmaceutical bottles manufactured from polyethylene terephthalate pursuant to
the terms of the Research and Development Agreement, dated as of March 28, 2002, between CarnaudMetalbox plc and Pharma Capital S.A., as amended from time to time in accordance with its terms or (xiii) to perform research activities involving
products within the PET Business to the extent that such research is necessary to ensure compatibility of Crown’s plastic and plastic/metal closures with plastic bottles and preforms. 
  

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 (d)    Without limiting the scope of the
obligations and permitted activities set forth in Section 1(c), Crown covenants and agrees, on behalf of itself and its Affiliates, that during the Restricted Period, neither Crown nor any of its Affiliates shall within the United States directly or
indirectly engage in, manage, operate or join in the management or operation of, or provide marketing, research or manufacturing support or act as a distributor for, or acquire any ownership interest in any firm, corporation, partnership,
proprietorship or other business entity that engages in, manages, operates or joins in the management or operation of, or provides marketing, research or manufacturing support or acts as a distributor for, the production and distribution (and
related management, operational, marketing, research and manufacturing activities) of extrusion blow molded bottles for any business except the cosmetics and fragrances business (the “US EBM Business”), so long as Constar, or any
Affiliate of Constar, continues to operate in the US EBM Business; provided, however, that it shall not be a violation of this Section 1(d) for Crown or any of its Affiliates (i) to own, directly or indirectly, solely as an investment,
securities of any entity engaged in the US EBM Business that are traded on a national securities exchange or the Nasdaq Stock Market (or a recognized securities exchange outside the U.S.) if Crown or any of its Affiliates (x) is not a controlling
person or a member of a group that controls such entity and (y) does not, directly or indirectly, own more than 10% or more of the voting securities of such entity, (ii) to directly or indirectly acquire Control of any entity engaged in the US EBM
Business, provided that Crown disposes of the US EBM Business of such entity within eighteen months after the closing date of such acquisition or (iii) to provide research services with respect to pharmaceutical bottles manufactured using
extrusion blow molding pursuant to the terms of the Research and Development Agreement, dated as of March 28, 2002, between CarnaudMetalbox plc and Pharma Capital S.A., as amended from time to time in accordance with its terms. 

 
 (e)    Notwithstanding anything in this Agreement to the contrary, Crown and Constar agree
that (i) Crown may continue to maintain and, at Crown’s option, increase its direct or indirect ownership in the following entities and that the following entities (and their successors and subsidiaries, if any) may engage in the PET Business
on a global basis (except as the following entities may otherwise be restricted by their respective relevant agreements or organizational documents): 
  

	 	(1)
	 
	Empaques Constar S.A. de C.V., a Mexican entity; 
 

  

	 	(2)
	 
	Empaques Sewell S.A. de C.V., a Mexican entity; 
 

  

	 	(3)
	 
	Petropar Embalagens S.A., a Brazilian entity; 
 

  

	 	(4)
	 
	CMB Plastique Maroc, a Moroccan entity; 
 

  

	 	(5)
	 
	Emirates Can Company Ltd., a United Arab Emirates entity; and 
 

  

	 	(6)
	 
	Beijing CMB Co. Ltd., a Chinese entity; 
 

  
 provided, however, that during the Restricted Period, in the event that Crown acquires 100% ownership of any such entity, Crown will cause such entity to refrain from expanding its PET
Business beyond the geographic scope of such PET Business as it existed at the time of Crown’s 
 

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acquisition of 100% ownership thereof, and (ii) the FABA Companies may provide technical assistance and research and development services to CMB Plastique Maroc with respect to bottles and
preforms for bottles for water and carbonated soft drinks manufactured from polyethylene terephthalate. 
  
 (f)    Except as otherwise expressly set forth in the Ancillary Agreements or as the parties may otherwise mutually agree, each of Crown and Constar covenant and agree that, (i) if this Agreement is terminated,
for a period of two years from the date that this Agreement is terminated, and (ii) if this Agreement is not terminated, during the Restricted Period, neither party, nor any of their respective Affiliates shall, directly or indirectly, solicit for
employment or employ any employee of the other party or any of the other party’s Affiliates (or any successor to the foregoing); provided, however, that the foregoing provision will not prevent either party or their respective
Affiliates from soliciting or employing any such person whose employment with the other party had been terminated (either by such other party or such person) prior to the time any solicitation of such person by such party or its Affiliate occurred.

  
 (g)    Crown and Constar hereby acknowledge and agree that the restrictions
and limitations set forth in this Section 1 are reasonable and fair and are reasonably required for the protection of each other’s interests. Crown and Constar will cause their respective Affiliates to comply with this Agreement. 

 
 (h)    For avoidance of doubt, nothing in this Agreement shall prevent Crown or any of its
Affiliates from operating, and it shall not be a violation of this Agreement for Crown or any of its Affiliates to operate, the businesses that they currently conduct that are not expressly limited hereby. 
  
 Section 2.    Remedies.  Both Crown and Constar acknowledge and agree that the remedy at law for any
breach, or threatened breach, of any of the provisions of Section 1 of this Agreement will be inadequate and, accordingly, both Crown and Constar covenant and agree that each party shall, in addition to any other rights and remedies which such party
may have, be entitled to equitable relief, including injunctive relief, and to the remedy of specific performance with respect to any breach or threatened breach of such covenant, as may be available from any court of competent jurisdiction. Such
right to obtain equitable relief may be exercised, at the option of such party, concurrently with, prior to, after, or in lieu of, the exercise of any other rights or remedies that such party may have as a result of any such breach or threatened
breach, including the recovery of damages from the other party. 
  
 Section 3.    Waiver of
Breach.  The waiver by either party of a breach of any provision of this Agreement by the other party or any respective Affiliates shall not operate or be construed as a waiver of any other or subsequent breach by such breaching party
of such or any other provision. 
  
 Section 4.    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 
 

 5 

 
(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 Constar, to: 
  
 Constar International, Inc. 
 One Crown Way 
 Philadelphia, PA 19154 
 Attention: Michael J. Hoffman 
 Facsimile: (215) 552-3715 
  
 If to Crown, to: 
  
 Crown Cork & Seal Company, Inc. 
 One Crown Way 
 Philadelphia, PA 19154

 Attention: Timothy J. Donahue 
 Facsimile: (215) 676-6011 
  
 or to such other addresses or telecopy numbers as may be specified by like notice to the other
parties. 
  
 Section 5.    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. 
  
 Section
6.    Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. 
  
 Section 7.    Dispute Resolution: Negotiation and Arbitration. 
  
 (a)    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 written notice of any dispute not resolved in the ordinary course of business. Within ten 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. 
 

 6 

  
 (b)    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
the other shall be honored in a timely fashion. All negotiations conducted pursuant to this Section 7 (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. 
  
 (c)    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. 
  
 (d)    The Commercial Arbitration Rules of the AAA, as modified or revised by the provisions of this
Section 7, 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. 
  
 (e)    Resolution of disputes under the procedures of this Section 7 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.

  
 Section 8.    Consent to Jurisdiction.  Crown and Constar 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), 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. 
  
 Section 9.    Successors and
Assigns.  This Agreement, and all rights and powers granted hereby, will bind and inure to the benefit of the parties hereto and their respective successors and assigns. No party hereto may assign its rights or delegate its duties and
obligations under this Agreement without the prior written consent of the other party hereto. 
 

 7 

  
 Section 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. Crown and Constar 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 Crown and Constar 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. 
  
 Section
11.    Amendment.  This Agreement may not be amended or modified except by written instrument duly executed by the parties hereto. 
  
 Section 12.    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. 
  
 Section 13.    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.

  
 Section 14.    Effectiveness.  The terms of this Agreement shall not become
effective until the completion of Constar’s initial public offering. 
  
 Section
15.    Certain Definitions.  Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Corporate Agreement dated
                , 2002, between Crown and Constar. 
 

 8 

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

	  	 	 Name:
Title:
 

 
   
  
	 CROWN CORK & SEAL COMPANY,
INC.
 
	 
	 By:
 	 	 

	  	 	 Name:
Title:
 

 
   
 
	  
	 
	 By:
 	 	 

	  	 	 Name:
Title:
 

 
 

 9 

  
 Schedule 1(c)(A) 
  
 Restricted Territory 
  
 For purposes of
Section 1(c) of this Agreement, the Restricted Territory shall encompass the following countries: 
  
 
	 Austria
 Belgium
 Canada
 Chile
 Denmark
 Estonia
 Finland
 France
 Germany
 Greece
 Iceland
 Ireland
 Italy
 Latvia
 Luxembourg
 Martinique
 Netherlands
 Norway
 Portugal
 Russia
 Spain
 Sweden
 Switzerland
 Turkey
 United
Kingdom
 United States
 Venezuela
 All Caribbean islands
 

 
 

 10 

  
 Schedule 1(c)(B) 
  
 Limited PET Bottles 
  
 For purposes of
Section 1(c)(iii) of this Agreement, Crown may produce and distribute the following types of PET bottles in the following markets: 
  

	 	•
	 
	bottles and preforms for wine equal to or smaller than 250 ml, globally; 
 

  

	 	•
	 
	miniature bottles and preforms for all uses (other than for spirits and spirit-based products) equal to or smaller than 50 ml, outside North America;

 

  

	 	•
	 
	bottles and preforms for food, shampoo and agricultural products in the United Kingdom up to [***] in annual sales, to be adjusted for inflation annually (as
early in each year as practicable) as of December 31 of each year, retroactive to the beginning of the year; 
 

   

	 	•
	 
	bottles and preforms for spirits and spirit-based products equal to or smaller than 200 ml, globally; and 
 

  

	 	•
	 
	bottles and preforms for spirits, spirit-based products and wine larger than 200 ml (x) outside North America and (y) for [***], globally. 

   
 Limited Markets 
  
 For purposes of Section 1(c)(iv) of this Agreement, Crown’s FABA operations may engage in business with respect to the Limited Product Lines described below in the following countries:

  
  
	 Albania
 Algeria
 Belgium
 Czech Republic
 France
 Germany
 Greece
 Hungary
 Israel
 Italy
 Lebanon
 Libya
 Macedonia
 Morocco
 Romania
 Russia
 San Marino
 Slovenia
 Switzerland
 Tunisia
 United Kingdom (only through sales to Constar’s Sherburn facility)
 

 
  
 [***] Confidential treatment requested 
  

 11 

  
 Limited Product Lines 
  
 For purposes of Section 1(c)(iv) of this Agreement, Crown’s FABA operations may engage in business with respecct to the following product lines: 

 

	 	•
	 
	bottles and preforms for edible oils and syrups; 
 

  

	 	•
	 
	bottles and preforms for personal care and cosmetics; 
 

  

	 	•
	 
	bottles for water for customers located in Italy and preforms for water; and 
 

  

	 	•
	 
	bottles for carbonated soft drinks for customers located in Italy and preforms for carbonated soft drinks; except that Crown will cause the FABA Companies (i)
not to compete for the business of [***] and the business produced by or on behalf of, directly or indirectly, [***], including, without limitation, [***] and other carbonated soft drinks, water, juices and other beverages, and (ii), notwithstanding
anything herein to the contrary, not to engage in the production and distribution of multi-layer PET bottles and preforms. 
 

   
  
 Cosmetic and Fragrance Bottles 
  
 For
purposes of Section 1(c)(v) of this Agreement, Cosmetic and Fragrance Bottles are defined as bottles and preforms for bottles that hold 4 ounces or less and supplied to health and beauty customers for use in cosmetic and fragrance products.

 

	[***]
	 
	Confidential treatment requested 
 

  

 12 

  
 Restricted Markets 
  
 For purposes of Section 1(c)(x) of this Agreement, the Restricted Markets shall encompass the following countries: 
  

	 Austria
 Belgium
 Czech Republic
 Denmark
 Finland
 France
 Germany
 Greece
 Hungary
 Ireland
 Italy
 Luxembourg
 Netherlands
 Norway
 Poland
 Portugal
 Romania
 Slovakia
 Spain
 Sweden
 Switzerland
 United Kingdom
 

 
  
  
 Restricted Product Lines

  
 For purposes of Section 1(c)(x) of this Agreement, Crown’s Specialty Bottles Europe operations may
engage in business with respect to the following product lines: 
  

	 	•
	 
	bottles and preforms for personal care and cosmetics; 
 

  

	 	•
	 
	bottles and preforms for medical and pharmaceutical purposes; 
 

  

	 	•
	 
	bottles and preforms for industrial and household products; 
 

  

	 	•
	 
	bottles and preforms for beverages manufactured in Raku, Germany only up to Crown’s existing capacity on the date hereof; and 

  

	 	•
	 
	bottles and preforms for food manufactured in Hautot-sur-Mer and St. Germain, France. 
 

 

 13Prepared by R.R. Donnelley Financial -- Form of Technical Services Agreement

  
 EXHIBIT 10.4 
  
 TECHNICAL SERVICES AGREEMENT 
  
 THIS
TECHNICAL SERVICES AGREEMENT (this “Agreement”), is entered into as of this          day of
                , 2002, by and between CONSTAR INTERNATIONAL INC., a Delaware corporation (“Constar”) and CROWN CORK & SEAL COMPANY, INC., a Pennsylvania
corporation (“Crown”). 
  
 RECITALS 
  
 A.  Constar currently provides certain services to the joint ventures included on Schedule A hereto (the “Crown Joint Ventures”).

  
 B.  Crown and Constar are contemplating that an initial public offering will be made of a portion of
the capital stock of Constar (the “Initial Public Offering”), resulting in partial public ownership of Constar, and Crown and Constar both desire for Constar to continue to provide certain services to the Crown Joint Ventures on
Crown’s behalf following the Initial Public Offering. 
  
 C.  Crown and Constar desire to enter into
this Agreement to set forth the roles and responsibilities with regard to services to be provided by Constar to the Crown Joint Ventures following the Initial Public Offering. 
  
 AGREEMENTS 
  
 NOW, THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Crown and Constar, for themselves and their successors and assigns, and intending to be legally bound hereby, hereby agree as follows: 
  
 ARTICLE I 
  
  GENERAL 
   
 1.1.    Definitions.    Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Corporate Agreement, dated as of the date hereof, between Crown and
Constar. For purposes of this Agreement, each Crown Joint Venture shall be deemed to be a Crown Entity and a Crown Indemnitee. 
  
 1.2.    Representations. 
  
 Each of Crown and Constar represents and
warrants to the other that: 
  
 (a)  it has the requisite corporate authority to enter into and perform
this Agreement; 
 

 1 

  
 (b)  its execution, delivery, and performance of this Agreement has
been duly authorized by all requisite corporate action on its behalf; and 
  
 (c)  this Agreement is
enforceable against it. 
  
 ARTICLE II 
  
  SERVICES 
   
 2.1.    Services. 
  
 (a)  During the term of this Agreement,
subject to the terms and conditions of this Agreement, Constar agrees to provide or cause the other Constar Entities to provide to Crown and the Crown Joint Ventures, as applicable, the services described in Exhibit A hereto (the
“Services”). Exhibit A is hereby incorporated by reference herein and forms part of this Agreement. 
  
 (b)  From time to time, Crown or the Crown Joint Ventures may submit reasonable requests to Constar to provide Services to the Crown Joint Ventures. Constar shall, consistent with historical practices, provide such Services
within the timeframe and at a level and quality substantially equivalent to that performed by Constar or the applicable Constar Entity for the Crown Joint Ventures prior to the date of execution of this Agreement. Crown will use its reasonable
efforts to provide Services to the Crown Joint Ventures and Constar shall not be obligated to provide Services to the extent that such Services (i) do not related to the PET business and (ii) can reasonably be provided by Crown within a timeframe,
at a level of quality and at a cost substantially equivalent to that that could be provided by Constar. 
  
 (c)  Crown and Constar have made a good faith effort as of the date hereof to identify each Service and to complete the content of Exhibit A accurately. To the extent that Exhibit A is incomplete and the Crown
Joint Ventures require additional services from Constar, Crown and Constar will use good faith efforts to modify Exhibit A. Constar may reasonably supplement, modify, substitute or otherwise alter the Services from time to time in a manner
consistent with supplements, modifications, substitutions or alterations made with respect to similar services provided or otherwise made available by Constar to its business units and facilities or customers; provided, that such supplements,
modifications, substitutions or alterations do not materially prevent the Crown Joint Ventures from realizing the intended benefit of such Services. 
  
 (d)  Notwithstanding the other provisions of this Section 2.1, neither Constar nor any of the other Constar Entities makes any representation or warranty whatsoever, express or implied,
including, without limitation, any representation or warranty as to the merchantability or fitness for a particular purpose arising out of the Services described in Exhibit A. In furtherance of the foregoing, none of the Constar Entities
shall have any liability for any defects in the Services provided hereunder. 
  
 2.2.    
Fees; Payment. 
 

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 (a)  In consideration for the performance of each of the Services
requested by Crown or the Crown Joint Ventures, Crown shall pay to Constar an amount for each of the Services set forth in, or negotiated in good faith by Constar and Crown in accordance with, Exhibit A, as amended from time to time in
accordance with this Agreement. Any federal, state, local or foreign income taxes, charges, fees, imposts, levies, contributions or other assessments assessed on the provision of each of the Services shall be paid by Crown (all such charges, plus
the amounts described in the preceding sentence, the “Fee”). 
  
 (b)  Within ten (10) days
of the end of each month during the term of this Agreement, Constar shall invoice Crown for all Services performed by the Constar Entities during such month in accordance with the terms of this Agreement, unless otherwise provided on Exhibit
A. Crown shall pay the Fee for the Services delivered during the prior month pursuant to this Agreement within thirty (30) days after the invoice for such Services has been provided by Crown in accordance with this Section 2.2(b). 

 
 2.3.    Additional Services.    Crown and Constar may from time to time identify
additional Services that they wish to incorporate into this Agreement. In such event, Crown and Constar will add items to Exhibit A setting forth mutually agreeable descriptions of such additional Services, Fees for such Services and any
other applicable terms with respect to such Services. If Crown and Constar cannot mutually agree upon such additional items, such additional Services will not become part of Exhibit A of this Agreement and Constar will have no obligation to
provide such additional Services. 
  
 2.4.    Independent
Contractor.    Neither party 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 any of the Constar Entities hereunder shall be carried on by such Constar Entity as an
independent contractor and not as an agent for Constar or any other Constar Entity. 
  
 2.5.    Representatives.    Crown and Constar will each appoint a representative (each, a “Representative”) to facilitate communications and performance under this
Agreement. Each party may treat an act of a Representative of the other party as being authorized by such other party. The initial Representatives are Torsten J. Kreider with respect to Crown and James C.T. Bolton with respect to Constar. Each party
may replace its Representative at any time for any reason by giving prior written notice of the replacement to the other party. 
  
 ARTICLE III 
  
  LICENSE 
   

3.1.    Grant of License.    The Crown Entities have obligations to license certain manufacturing technology to the
Crown Joint Ventures. To the extent that Constar has rights in and to such manufacturing technology pursuant to the Master Assignment and Assumption Agreement executed in connection with the Initial Public Offering or otherwise, Constar hereby

 

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grants to the Crown Entities a non-exclusive, royalty-free license to such manufacturing technology solely for the purpose of allowing, and solely to the extent necessary to allow, the Crown
Entities to continue to fulfill their licensing obligations to the Crown Joint Ventures. The license granted under this Section 3.1 shall survive any termination or expiration of this Agreement. 
  

3.2.    Royalties.    Nothing in this Agreement shall be construed to prohibit the Crown Entities from receiving
royalties or other fees from the Crown Joint Ventures. The Crown Entities shall not obligated to pay such royalties or fees received from the Crown Joint Ventures to Constar except as obligated in the agreements with the Crown Joint Ventures.

  
 3.3.    No Warranties.    Constar and the other Constar Entities
make no representations or warranties whatsoever, express or implied, as to the license granted hereunder, and expressly disclaim any such representations or warranties. 
  
 ARTICLE IV 
  
  COOPERATION 

 
 4.1.    Cooperation.    The parties will use good faith efforts to cooperate
with each other in all matters relating to the provision and receipt of Services. Such good faith cooperation will include using commercially reasonable efforts to obtain all consents, licenses, sublicenses or approvals necessary to permit each
party to perform its obligations under this Agreement. If this Agreement is terminated in whole or in part, the parties will cooperate with each other in all reasonable respects in order to effect an efficient transition and to minimize the
disruption to the business of both parties, including the assignment or transfer of the rights and obligations under any contracts. 
  
 ARTICLE V 
  
  TERM AND TERMINATION 

 
 5.1.    Term.    The term of this Agreement shall commence upon the Initial
Public Offering Date and shall continue in effect until the expiration or termination of the obligation of the Crown Entities to provide Services to the Crown Joint Ventures, unless (a) otherwise provided with respect to any Service on Exhibit
A or (b) this Agreement is terminated pursuant to Section 5.3. Upon the expiration or termination of this Agreement pursuant to this Section 5.1, the rights and obligations of the parties hereunder shall terminate, except for the rights and
obligations of the parties under Section 5.1, Articles III, VI and VII, and Sections 8.8 and 8.9 hereof, which shall survive such expiration or termination without limitation. Upon such expiration or termination, Constar shall cease to have any
obligation to provide any Services, and each party will promptly deliver to the other all data, programs, software materials, and other properties owned by the other and held by it in connection with the performance of this Agreement. Each party
will assist the other at such other party’s reasonable request in effecting the orderly termination of this Agreement. 
 

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