Document:

Stock Purchase Plan

 Exhibit 10.41 
  
 CONSTAR INTERNATIONAL INC. 
  
 ANNUAL INCENTIVE & MANAGEMENT STOCK PURCHASE PLAN 

 CONSTAR INTERNATIONAL INC. 
 ANNUAL INCENTIVE & MANAGEMENT STOCK PURCHASE PLAN 
  
 TABLE OF CONTENTS 
  

					
	ARTICLE I PURPOSES AND EFFECTIVE DATE	  	1
	    1.1.	 	 Purposes.
	  	1
	    1.2.	 	 Effective Date.
	  	1
		
	ARTICLE II DEFINITIONS	  	1
		
	ARTICLE III ELIGIBILITY	  	9
	    3.1.	 	 Eligibility.
	  	9
		
	ARTICLE IV AWARD DETERMINATION	  	9
	    4.1.	 	 Performance Goals.
	  	9
	    4.2.	 	 Objective Compensation Formula.
	  	10
	    4.3.	 	 Award Opportunities.
	  	10
	    4.4.	 	 Adjustment of Performance Goals.
	  	11
	    4.5.	 	 Final Award Determinations.
	  	11
	    4.6.	 	 Limitations.
	  	12
		
	ARTICLE V PAYMENT OF BONUS AWARDS	  	12
	    5.1.	 	 Form and Timing of Payment.
	  	12
	    5.2.	 	 Payment of Partial Awards.
	  	12
		
	ARTICLE VI CONTRIBUTIONS	  	13
	    6.1.	 	 Bonus Deferrals.
	  	13
	    6.2.	 	 Matching Contributions.
	  	13
		
	ARTICLE VII ACCOUNT ADMINISTRATION	  	13
	    7.1.	 	 Deferral Sub-Accounts.
	  	13
	    7.2.	 	 Matching Sub-Accounts.
	  	13
	    7.3.	 	 Dividends.
	  	14
	    7.4.	 	 Stock Adjustments.
	  	14
	    7.5.	 	 No Stockholders’ Rights.
	  	14
		
	ARTICLE VIII VESTING	  	15
	    8.1.	 	 Bonus Deferrals.
	  	15
	    8.2.	 	 Matching Contributions.
	  	15
	    8.3.	 	 Change in Control.
	  	16
		
	ARTICLE IX DISTRIBUTIONS	  	16
	    9.1.	 	 Distribution of Bonus Deferrals.
	  	16

  

 -i- 

					
	    9.2.	 	 Normal Distribution of Matching Contributions.
	  	16
	    9.3.	 	 Deferral of Matching Contributions.
	  	16
	    9.4.	 	 Distributions on Termination of Employment.
	  	17
	    9.5.	 	 Distributions Upon a Change in Control.
	  	17
	    9.6.	 	 Valuation and Manner of Distributions.
	  	17
		
	ARTICLE X FUNDING	  	18
		
	ARTICLE XI ADMINISTRATION	  	19
	    11.1.	 	 Administration.
	  	19
	    11.2.	 	 Administrative Review.
	  	19
	    11.3.	 	 General.
	  	20
		
	ARTICLE XII CLAIMS PROCEDURE	  	20
	    12.1.	 	 Initial Claim.
	  	20
	    12.2.	 	 Procedure for Review.
	  	20
	    12.3.	 	 Claim Denial Procedure.
	  	21
	    12.4.	 	 Appeal Procedure.
	  	21
	    12.5.	 	 Decision on Appeal.
	  	22
		
	ARTICLE XIII AMENDMENT AND TERMINATION	  	23
		
	ARTICLE XIV MISCELLANEOUS	  	23
	    14.1.	 	 Non-Guarantee of Employment.
	  	23
	    14.2.	 	 Rights of Participants to Benefits.
	  	24
	    14.3.	 	 No Assignment.
	  	24
	    14.4.	 	 Withholding.
	  	24
	    14.5.	 	 Account Statements.
	  	25
	    14.6.	 	 Gender.
	  	25
	    14.7.	 	 Titles.
	  	25
	    14.8.	 	 Severability.
	  	25
	    14.9.	 	 Successors.
	  	25
	    14.10.	 	 Governing Law.
	  	25
	    14.11.	 	 Other Plans.
	  	25

  

 -ii- 

 CONSTAR INTERNATIONAL INC. 
 ANNUAL INCENTIVE & MANAGEMENT STOCK PURCHASE PLAN 
  
 ARTICLE I 
  
 PURPOSES AND EFFECTIVE DATE 
  
 1.1.
Purposes. The purposes of the Plan are to attract and retain highly-qualified executives, to align executive and stockholder long-term interests by creating a direct link between annual incentive executive compensation and stockholder
return and to enable executives to acquire stock so that they may develop and maintain a substantial stock ownership position in the Company. The Plan is an unfunded plan that is not intended to be (i) subject to Parts 2, 3 or 4 of Title I, Subtitle
B of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) or (ii) qualified under section 401(a) of the Code. 
  
 1.2. Effective Date. The Plan is effective January 1, 2003. 
  
 ARTICLE II 
  
 DEFINITIONS 
  
 As used herein, the following terms shall have the following meanings: 
  
 2.1. “Account” means the bookkeeping reserve account established and maintained for each Participant
for purposes of determining the amount payable to the Participant pursuant to the Plan; each Account shall consist of a Deferral Sub-Account, a Matching Sub-Account and such other subaccounts as are necessary or desirable in the opinion of the
Committee for the convenient administration of the Plan. The establishment of an 
  

 -1- 

 Account shall not require segregation of any funds of the Company or the Employer or provide any Participant with any
rights to any assets of the Company or the Employer, except as a general creditor thereof. A Participant shall have no right to receive payment of any amount credited to the Participant’s Account except as expressly provided under the Plan.

  
 2.2. “Approved Distribution Date”
means a date after a Participant’s Normal Distribution Date that has been approved by the Committee on which distribution of the value of a Tranche of Restricted Stock Units will be made in accordance with Section 9.3. 
  
 2.3. “Award Opportunity” means the various levels of
incentive awards, which a Participant may earn under the Plan, as established by the Committee pursuant to Article IV. 
  
 2.4. “Base Salary” means the regular base salary earned by a Participant during the Plan Year prior to any salary reduction
contributions made to any of the Company’s deferred compensation plans, except as otherwise determined by the Committee in its sole discretion. 
  
 2.5. “Beneficiary” means the person(s), trust(s) or other entities, the Participant designates, in accordance with procedures
established by the Committee, to receive any benefits under the Plan after the death of the Participant. If the Participant has not designated a Beneficiary, or if no Beneficiary survives the Participant, the aggregate amount then credited to the
Participant’s Account shall be paid in a single sum to the Participant’s estate. 
  

 -2- 

 2.6. “Board” means the Board of Directors of the Company or, if the Board so
directs, the Committee acting on behalf of the Board in the exercise of any and all powers and duties of the Board pursuant to this Plan. 
  
 2.7. “Bonus” means the annual performance bonus payable by the Employer to a Participant under the Plan, as determined by the
Committee after the end of such Plan Year. 
  
 2.8.
“Cause” means (a) a Participant, in carrying out his duties for the Employer, engages in gross misconduct or gross negligence resulting in a material adverse effect on the Employer, (b) a Participant embezzles any amount of the
Employer’s assets, (c) a Participant is convicted (including a plea of guilty or nolo contendere) of a felony involving moral turpitude, (d) a Participant’s breach of any restrictive covenant agreed to with the Employer, or (e) a
Participant’s willful and material failure to follow the lawful instructions of the Board. For purposes of this Section 2.8, no act, or failure to act, on the Participant’s part shall be considered “willful” unless done, or
omitted to be done, by him in bad faith and without reasonable belief that his action or omission was in the best interest of the Employer. Any act or omission to act by the Participant in reliance upon an opinion of counsel to the Employer shall
not be deemed to be willful. 
  
 2.9. “Change in
Control” means: 
  
 (a) the acquisition, after the
effective date of the Plan, by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the 
  

 -3- 

 Exchange Act) of more than 30% of the combined voting power of the voting securities of the Company entitled to vote
generally in the election of directors (the “Voting Securities”); provided, however, that the following acquisitions shall not constitute a Change in Control: (a) any acquisition, directly or indirectly by or from the Company or any
Subsidiary, or by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, (b) any acquisition by any underwriter in connection with any firm commitment underwriting of securities to be issued by the
Company, or (c) any acquisition by any corporation if, immediately following such acquisition, 70% or more of the then outstanding shares of common stock of such corporation and the combined voting power of the then outstanding voting securities of
such corporation (entitled to vote generally in the election of directors), are beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who, immediately prior to such acquisition, were the beneficial
owners of the then outstanding Stock of the Company and the Voting Securities in substantially the same proportions, respectively, as their ownership, immediately prior to such acquisition, of the Stock and Voting Securities; or 
  
 (b) The occurrence, after the effective date of the Plan, of a
reorganization, merger or consolidation, other than a reorganization, merger or consolidation with respect to which all or substantially all of the individuals and entities who were the beneficial owners, immediately prior to such reorganization,
merger or consolidation, of the Stock and Voting Securities beneficially own, directly or indirectly, immediately after such reorganization, merger or consolidation 70% or more of the then outstanding common stock and voting securities (entitled to
vote generally in the election of directors) of the corporation 
  

 -4- 

 resulting from such reorganization, merger or consolidation in substantially the same proportions as their respective
ownership, immediately prior to such reorganization, merger or consolidation, of the Stock and Voting Securities; or 
  
 (c) The occurrence, after the effective date of the Plan, of (a) a complete liquidation or substantial dissolution of the Company, or (b) the sale or
other disposition of all or substantially all of the assets of the Company, in each case other than to a subsidiary, wholly-owned, directly or indirectly, by the Company or to a holding company of which the Company is a direct or indirect wholly
owned subsidiary prior to such transaction; or 
  
 (d) During any
period of twenty-four (24) consecutive months commencing after the effective date of the Plan, the individuals at the beginning of any such period who constitute the Board and any new director (other than a director designated by a person or entity
who has entered into an agreement with the Company or other person or entity to effect a transaction described in Sections 2.9(a), (b) or (c) above) whose election by the Board or nomination for election by the Company’s stockholders was
approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of any such period or whose election or nomination for election was previously so approved, cease for any reason to
constitute a majority of the Board. 
  
 2.10.
“Code” means the Internal Revenue Code of 1986, as amended. 
  
 2.11. “Committee” means the Compensation Committee of the Board, provided that such committee shall consist of two (2) or more individuals who are “outside directors” to the extent
required by and within the meaning of Section 162(m) of the Code, as amended from time to time. 
  

 -5- 

 2.12. “Company” means Constar International Inc., a corporation organized under
the laws of the State of Delaware, or any successor corporation. 
  
 2.13. “Disability” means an Employee’s inability to render, for a period of six consecutive months, services to the Company by reason of permanent disability, as determined by the written medical opinion of an
independent medical physician reasonably acceptable to the Company. In no event shall an Employee be considered disabled for the purposes of this Plan unless the Employee is deemed disabled pursuant to the Company’s long-term disability plan,
if one is maintained by the Company. 
  
 2.14.
“Employee” means an officer or other key employee of the Company or a Subsidiary including a director who is such an employee. 
  
 2.15. “Employer” means the Company, its successors and assigns, and any Subsidiary, unless such Subsidiary is otherwise excluded
as a participating employer by the Board, and any organization into which an Employer may be merged or consolidated or to which all or substantially all of its assets may be transferred. 
  
 2.16. “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 2.17. “Fair Market Value” means on any given date,
the closing price of a share of Stock on the principal national securities exchange on which the Stock is listed on such date or, if the Stock was not traded on such date, on the last preceding day on which the Stock was traded. If at any time such
Stock is not listed on any securities exchange, the Fair Market Value shall be the fair value of such Stock as determined in good faith by the Committee. 
  

 -6- 

 2.18. “Matching Contribution” means amounts credited to a Participant’s
Account pursuant to Section 6.2. 
  
 2.19. “Normal
Distribution Date” means the third anniversary of the date on which a Bonus would otherwise be payable to a Participant, or such other date as the Committee shall determine, on which distribution of the value of a Tranche of Restricted
Stock Units will be made in accordance with Section 9.1. 
  
 2.20.
“Plan” means the Constar International Inc. Annual Incentive & Management Stock Purchase Plan as set forth herein and as amended from time to time. 
  
 2.21. “Plan Year” means the calendar year. 
  
 2.22. “Restricted Stock Unit” means a notional entry
that is entered in a Participant’s Account which represents the value of one share of Stock in accordance with the terms of this Plan. 
  
 2.23. “Participant” means an Employee who is participating in the Plan pursuant to Article III. 
  
 2.24. “Retirement” means, with respect to any
Participant, resignation or termination of employment after attainment of an age regarded by the Company or, if applicable, a Subsidiary as the normal retirement age for its employees in general, based upon the Company’s or the
Subsidiary’s general employment and related policies and practices. 
  

 -7- 

 2.25. “Stock” means the common stock of the Company, par value $.01 per share, or
such other class or kind of shares or other securities designated by the Committee. 
  
 2.26. “Stock Plan” means the Constar International Inc. 2002 Stock-Based Incentive Compensation Plan, as amended from time to time. 
  
 2.27. “Subsidiary” means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company (or any subsequent parent of the Company) if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes
of stock in one of the other corporations in such chain. 
  
 2.28.
“Target Incentive Award” means the award to be paid to a Participant when 100% of performance measures are achieved, as established by the Committee. 
  
 2.29. “Tranche” means the amount of Restricted Stock Units credited to a Participant’s Account
during any one Plan Year. 
  
 2.30. “Valuation
Date” means the business day used for purposes of valuing the Restricted Stock Units credited to a Participant’s Account prior to a distribution described in Article VII. 
  

 -8- 

 ARTICLE III 
  
 ELIGIBILITY 
  
 3.1. Eligibility. Each Employee who is selected by the Committee shall be eligible to become a Participant as of the date designated by the
Committee. A designated Employee shall remain eligible until such time as the Committee affirmatively revokes such Employee’s eligibility. 
  
 ARTICLE IV 
  
 AWARD DETERMINATION 
  
 4.1. Performance Goals. Prior to the beginning of each Plan Year, or as soon as practicable thereafter (but in no event more than ninety (90) days after the beginning of such Plan Year except in the case
of the first Plan Year), the Committee shall, in its sole discretion, approve or establish in writing the performance goals for that Plan Year. For any performance period that is less than twelve months, the performance goals shall be established
before twenty-five percent (25%) of the relevant performance period has lapsed. 
  
 The performance goals may include, without limitation, any combination of financial, non-financial and individual performance goals, as determined by the Committee. Performance measures and their relative weight may
vary by job classification. The Committee also shall have the authority to exercise subjective discretion in the determination of final awards, as well as the authority to delegate the ability to exercise subjective discretion in this respect.

  

 -9- 

 The Committee also may establish one or more Company-wide performance goals which must be achieved for
any Participant to receive an award for that Plan Year. 
  
 The
performance period with respect to which awards may be payable under the Plan shall generally be the Plan Year; provided, however, that the Committee shall have the authority and discretion to designate different performance periods under the Plan.

  
 Employees who are eligible to participate in the Plan shall be
notified of the performance goals and the related Award Opportunities for the relevant Plan Year (or other performance period), as soon as practicable. 
  
 4.2. Objective Compensation Formula. Prior to the beginning of each Plan Year, or as soon as practicable thereafter (but in no event more
than ninety (90) days after the beginning of such Plan Year except in the case of the first Plan Year), the Committee shall approve or establish in writing the objective compensation formula or standard for that Plan Year. Such objective
compensation formula or standard shall be the method for computing the amount of compensation payable to the Participant if the performance goals are attained. The formula or standard is objective if a third party having knowledge of the relevant
performance results could calculate the amount to be paid to a Participant. 
  
 4.3. Award Opportunities. Prior to the beginning of each Plan Year, or as soon as practicable thereafter (but in no event more than ninety (90) days after the beginning of such Plan Year except in the
case of the first Plan Year), the Committee shall establish an Award Opportunity for each Participant. Such Award Opportunity may vary in relation to the job 
  

 -10- 

 classification of each Participant. In the event a Participant changes job levels during a Plan Year, the
Participant’s Award Opportunity may be adjusted to reflect the amount of time at each job level during the Plan Year. 
  
 4.4. Adjustment of Performance Goals. The Committee shall have the right to adjust the performance goals and the Award Opportunities (either
up or down) during a Plan Year, to the extent permitted by Code Section 162(m) and the regulations and interpretative rulings thereunder, if it determines that external changes or other unanticipated business conditions have materially affected the
fairness of the goals and have unduly influenced the Company’s ability to meet them. Further, in the event of a Plan Year of less than twelve (12) months, the Committee shall have the right to adjust the performance goals and the Award
Opportunities accordingly. 
  
 4.5. Final Award
Determinations. At the end of each Plan Year, Bonuses shall be computed for each Participant as determined by the Committee. Each such award shall be based upon (i) the Participant’s Target Incentive Award percentage (or such greater or
lesser percentage, as appropriate), multiplied by his Base Salary, in whole or in part (or other preestablished objective compensation formula in accordance with Section 4.2), and (ii) the attainment of financial, non-financial and individual
performance goals. In the event that a Participant is not employed by the Employer at the end of a Plan Year, the Committee, in its sole discretion, shall determine the appropriate adjustment to a Participant’s Bonus, including the payment of
no Bonus. 
  

 -11- 

 4.6. Limitations. The amount payable to a Participant for any calendar year shall not
exceed 150 percent the Participant’s Base Salary. 
  
 ARTICLE V 
  
 PAYMENT OF BONUS AWARDS

  
 5.1. Form and Timing of Payment. Within 60
days after the end of each Plan Year, the Committee shall certify in writing the extent to which the Company and each Participant has achieved the performance goals for such Plan Year, including the specific target objective(s) and the satisfaction
of any other material terms of the awards, and the Committee shall calculate the amount of each Participant’s Bonus for the relevant period. Fifty percent of each Bonus shall be paid to the Participant, or to his estate in the case of death, in
a single cash payment as soon as practicable following the receipt of audited financial statements with respect to each Plan Year and the remaining fifty percent of each Bonus shall be credited to the Participant’s Deferral Sub-Account pursuant
to Article VI. The amount of any Bonus deferred with respect to any Plan Year shall reduce the amount of such Bonus otherwise payable to the Participant as of the date such payment otherwise would have been made, and the amount of such reduction
shall be allocated to the Participant’s Deferral Sub-Account effective as of the date the applicable Bonus would otherwise have been payable. 
  
 5.2. Payment of Partial Awards. In the event a Participant no longer meets the eligibility criteria as set forth in the Plan during the
course of a particular Plan Year, the Committee may, in its sole discretion, compute and pay a partial Bonus or no Bonus for the portion of the Plan Year that an Employee was a Participant. 
  

 -12- 

 ARTICLE VI 
  

CONTRIBUTIONS 
  
 6.1. Bonus Deferrals. For each Plan Year, 50 percent of each Participant’s Bonus shall be credited to the Participant’s Deferral
Sub-Account. 
  
 6.2. Matching Contributions. For
each Plan Year, the Committee shall allocate to each Participant’s Matching Sub-Account an amount (in accordance with Article VII) equal to 50 percent of the Participant’s Bonus for such Plan Year. Matching Contributions shall be allocated
to a Participant’s Matching Sub-Account at the same time as such Participant’s Bonus is allocated to his or her Deferral Sub-Account. 
  
 ARTICLE VII 
  
 ACCOUNT ADMINISTRATION 
  
 7.1. Deferral Sub-Accounts. All amounts credited to a Participant’s Deferral Sub-Account shall be credited on a cash basis. The balance of a Participant’s Deferral Sub-Account shall be credited
with five percent (5%) annual interest on a daily basis. 
  
 7.2. Matching Sub-Accounts. All amounts credited to a Participant’s Matching Sub-Account shall be credited on the basis of Restricted Stock Units. The number of Restricted Stock Units credited to a Participant’s
Matching Sub-Account shall be equal to the Participant’s total Matching Contributions for such Plan Year divided by the Fair Market Value of the Stock on the date such amounts are allocated to his or her Account. Partial Restricted Stock Units
may be credited to a Participant’s Matching Sub-Account. 
  

 -13- 

 7.3. Dividends. If during the period of time a Participant’s Matching Sub-Account is
credited with Restricted Stock Units, the Company pays a dividend with respect to its Stock, the Participant shall be credited with additional Restricted Stock Units in accordance with this Section. The number of additional Restricted Stock Units
credited to a Participant’s Matching Sub-Account pursuant to this Section shall be calculated by dividing (a) the product of (i) the whole number of Restricted Stock Units held in the Participant’s Matching Sub-Account as of the date the
dividend is paid times (ii) the amount of such dividend with respect to each share of Stock, by (b) the Fair Market Value of the Stock on the date such dividend is paid. Restricted Stock Units shall be credited to a Participant’s Matching
Sub-Account under this Section as of the date the applicable dividend is paid. 
  
 7.4. Stock Adjustments. The Committee shall adjust each Participant’s Matching Sub-Account as the Committee, in its sole discretion deems appropriate to reflect any stock dividend, stock split,
combination of shares, merger, share exchange, consolidation or any other change in the corporate structure of the Company or the Stock. 
  
 7.5. No Stockholders’ Rights. The allocation of Restricted Stock Units to a Participant’s Account shall not give any Participant
any right or interest in any shares of Stock that may be held from time to time in a rabbi trust incident to the Plan or otherwise. 
  

 -14- 

 ARTICLE VIII 
  
 VESTING 
  
 8.1. Bonus Deferrals. A Participant shall be fully vested in all amounts (including interest) credited to his Deferral Sub-Account at all
times. 
  
 8.2. Matching Contributions. Except as
provided below, each Tranche of Restricted Stock Units shall become vested on the applicable Normal Distribution Date, provided the Participant remains in the continuous employment of the Employer until such date. If a Participant terminates
employment due to death or Disability prior to the applicable Normal Distribution Date with respect to a Tranche of Restricted Stock Units, such Tranche shall become fully vested. If a Participant terminates employment due to retirement or is
involuntarily terminated by the Employer without Cause prior to the applicable Normal Distribution Date with respect to a Tranche of Restricted Stock Units, such Tranche shall become vested on a pro-rata basis. Such pro rata amount shall be
calculated based upon the Participant’s fully completed years of employment with the Employer from the time such Tranche was credited to the Participant’s Matching Sub-Account compared to the years of employment that would have been
completed from the time such Tranche was credited to the Participant’s Account until the applicable Normal Distribution Date. If a Participant voluntarily terminates employment (other than for retirement) or is terminated by the Employer for
Cause prior to the applicable Normal Distribution Date with respect to a Tranche of Restricted Stock Units, such Tranche shall be forfeited and the Participant shall have no rights with respect to such Restricted Stock Units. 
  

 -15- 

 8.3. Change in Control. Upon a Change in Control, all Restricted Stock Units credited to a
Participant’s Matching Sub-Account shall become immediately fully vested. 
  
 ARTICLE IX 
  
 DISTRIBUTIONS 
  
 9.1. Distribution of Bonus
Deferrals. Subject to Sections 9.4 and 9.5, the amount of each Bonus (together with interest credited on such Bonus) allocated to a Participant’s Deferral Sub-Account shall be distributed to such Participant upon the one-year
anniversary of the date such Bonus would otherwise have been paid; provided, however, that the Committee may determine in its sole and absolute discretion to delay distribution to any Participant if necessary to avoid application of the deduction
limitation of section 162(m) of the Code. 
  
 9.2.
Normal Distribution of Matching Contributions. Subject to Sections 9.4 and 9.5, and in accordance with Section 9.6, the value of a Tranche of Restricted Stock Units shall be distributed on the Normal Distribution Date, unless the
Committee has approved a subsequent distribution date in accordance with Section 9.3; provided, however, that the Committee may determine in its sole and absolute discretion to delay payment commencement to any Participant if necessary to avoid
application of the deduction limitation of section 162(m) of the Code. 
  
 9.3. Deferral of Matching Contributions. On or before December 31 of the Plan Year prior to the Plan Year in which the applicable Normal Distribution Date for a Tranche of Restricted Stock Units will occur, a Participant may
request that the Committee approve a 
  

 -16- 

 distribution from his or her Matching Sub-Account be paid on an Approved Distribution Date elected in accordance with
procedures established by the Committee. The Approved Distribution Date shall be applicable to an entire Tranche of Restricted Stock Units. 
  
 9.4. Distributions on Termination of Employment. Upon a Participant’s termination of employment from the Employer for any reason, the
entire value of a Participant’s Deferral Sub-Account shall be distributed in cash and the value of all vested Restricted Stock Units shall be distributed in accordance with Section 9.6 as soon as practicable. 
  
 9.5. Distributions Upon a Change in Control. Upon a Change in
Control, the entire value of a Participant’s Deferral Sub-Account shall be distributed in cash and the value of all Restricted Stock Units shall be distributed in accordance with Section 9.6 as soon as practicable. 
  
 9.6. Valuation and Manner of Distributions. 
  
 (a) The Valuation Date for distributions made on a Normal Distribution Date
or an Approved Distribution Date in accordance with Sections 9.2 and 9.3 shall be such Normal Distribution Date or Approved Distribution Date, as applicable. 
  
 (b) The Valuation Date for distributions made upon termination of employment or Change in Control in accordance with Sections 9.4 or 9.5, respectively,
shall be the date of the Participant’s termination of employment or Change in Control, as applicable. 
  
 (c) Distributions under this Plan with respect to a Participant’s Matching Sub-Account shall be made in Stock issued under the Stock Plan, unless,
the 
  

 -17- 

 Committee provides, in its sole discretion, for all or part of a Participant’s distribution to be in cash (including
for reasons of having insufficient Stock available under the Stock Plan or the payment of any applicable withholding taxes); provided, however, that no partial shares of Stock shall be distributed and in lieu thereof cash shall be distributed.
Distributions in Stock shall be made by issuing Stock certificates for a number of shares equal to the vested Restricted Stock Units to be distributed on the applicable Valuation Date. Distributions in cash shall be in an amount equal to the number
of vested full and partial Restricted Share Units in a Participant’s Matching Sub-Account, which were not distributed in Stock in accordance with the prior sentence, times the Fair Market Value of the Stock on the Valuation Date. Upon
Distribution all rights to any Restricted Stock Units shall be cancelled. 
  
 ARTICLE X 
  
 FUNDING

  
 The obligations of the Corporation and the Employer to
distribute benefits under this Plan shall be interpreted solely as an unfunded, contractual obligation to distribute only those amounts credited to the Participant’s Account pursuant to the terms of this Plan. Any assets set aside, including
any assets transferred to a rabbi trust or purchased by the Company or the Employer with respect to amounts payable under the Plan, shall be subject to the claims of the Company’s or the Employer’s general creditors, and no person other
than the Company or the Employer shall, by virtue of the provisions of the Plan, have any interest in such assets. All amounts deferred pursuant to this Plan may, in the Committee’s discretion, be transferred to an rabbi trust as soon as
practicable after such amounts are allocated to a Participant’s Account. 
  

 -18- 

 ARTICLE XI 
  

ADMINISTRATION 
  
 11.1. Administration. The Plan will be administered by the Committee. The Committee shall be the named fiduciary for purposes of the claims
procedure pursuant to Article XII and shall have authority to act to the full extent of its absolute discretion to: 
  
 (a) interpret the Plan; 
  
 (b) resolve and determine all disputes or questions arising under the Plan, including the power to determine the rights of Participants and
Beneficiaries, and their respective benefits, and to remedy any ambiguities, inconsistencies or omissions in the Plan; 
  
 (c) create and revise rules and procedures for the administration of the Plan and prescribe such forms as may be required for Participants to make
elections under, and otherwise participate in, the Plan; and 
  
 (d) take any other actions and make any other determinations as it may deem necessary and proper for the administration of the Plan. 
  
 Any expenses incurred in the administration of the Plan will be paid by the Company or the Employer. 
  
 11.2. Administrative Review. Except as the Committee may otherwise determine (and subject to the claims
procedure set forth in Article XII), all decisions and determinations by the Committee shall be final and binding upon all Participants and Beneficiaries. 
  

 -19- 

 11.3. General. The Committee shall be entitled to rely conclusively upon, and shall be
fully protected in any action or omission taken by it in good faith reliance upon the advice or opinion of any persons, firms or agents retained by it, including but not limited to accountants, actuaries, counsel and other specialists. Nothing in
this Plan shall preclude the Company or any Employer from indemnifying the members of the Committee for all actions under this Plan, or from purchasing liability insurance to protect such persons with respect to the Plan. 
  
 ARTICLE XII 
  
 CLAIMS PROCEDURE 
  
 The Committee shall administer a claims procedure as follows: 
  
 12.1. Initial Claim. A Participant or Beneficiary who believes
himself entitled to benefits under the Plan (the “Claimant”), or the Claimant’s authorized representative acting on behalf of such Claimant, must make a claim for those benefits by submitting a written notification of his or
her claim of right to such benefits. Such notification must be on the form and in accordance with the procedures established by the Committee. 
  
 12.2. Procedure for Review. The Committee shall establish administrative processes and safeguards to ensure that all claims for benefits are
reviewed in accordance with the Plan document and that, where appropriate, Plan provisions have been applied consistently to similarly situated Claimants. 
  

 -20- 

 12.3. Claim Denial Procedure. If a claim is wholly or partially denied, the Committee shall
notify the Claimant within a reasonable period of time, but not later than 90 days after receipt of the claim, unless the Committee determines that special circumstances require an extension of time for processing the claim. If the Committee
determines that an extension of time for processing is required, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial 90-day period. In no event shall such extension exceed a period of 180 days
from receipt of the claim. The extension notice shall indicate: (i) the special circumstances necessitating the extension and (ii) the date by which the Committee expects to render a benefit determination. A benefit denial notice shall be written in
a manner calculated to be understood by the Claimant and shall set forth: (i) the specific reason or reasons for the denial, (ii) the specific reference to the Plan provisions on which the denial is based, (iii) a description of any additional
material or information necessary for the Claimant to perfect the claim, with reasons therefor, and (iv) the procedure for reviewing the denial of the claim and the time limits applicable to such procedures, including a statement of the
Claimant’s right to bring a legal action under section 502(a) of ERISA following an adverse benefit determination on review. 
  
 12.4. Appeal Procedure. In the case of an adverse benefit determination, the Claimant or his or her representative shall have the
opportunity to appeal to the Committee for review thereof by requesting such review in writing to the Committee within 60 days of receipt 
  

 -21- 

 of notification of the denial. Failure to submit a proper application for appeal within such 60 day period will cause
such claim to be permanently denied. The Claimant or his or her representative shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claim. A document,
record or other information shall be deemed “relevant” to a claim in accordance with 29 C.F.R. §2560.503-1(m)(8). The Claimant or his or her representative shall also be provided the opportunity to submit written comments, documents,
records and other information relating to the claim for benefits. The Committee shall review the appeal taking into account all comments, documents, records and other information submitted by the Claimant or his or her representative relating to the
claim, without regard to whether such information was submitted or considered in the initial benefit determination. 
  
 12.5. Decision on Appeal. The Committee shall notify a Claimant of its decision on appeal within a reasonable period of time, but not later
than 60 days after receipt of the Claimant’s request for review, unless the Committee determines that special circumstances require an extension of time for processing the appeal. If the Committee determines that an extension of time for
processing is required, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial 60-day period. In no event shall such extension exceed a period of 60 days from the end of the initial period. The
extension notice shall indicate: (i) the special circumstances necessitating the extension and (ii) the date by which the Committee expects to render a benefit determination. An adverse benefit decision on appeal shall be written in a manner
calculated to be understood by the Claimant and shall set forth: (i) the specific reason or reasons for the adverse determination, (ii) the specific reference to the 
  

 -22- 

 Plan provisions on which the denial is based, (iii) a statement that the Claimant is entitled to receive, upon request
and free of charge, reasonable access to and copies of all documents, records, and other information relevant to the Claimant’s claim (the relevance of a document, record or other information will be determined in accordance with 29 C.F.R.
§2560-1(m)(8)) and (iv) a statement of the Claimant’s right to bring a legal action under section 502(a) of ERISA. 
  
 ARTICLE XIII 
  
 AMENDMENT AND TERMINATION 
  
 The Board or the Committee shall have the right to modify or amend the Plan at any time and from time to time, and the Board shall have the right to discontinue or terminate the Plan at any time and from time to time;
provided, however, that no modification, amendment, discontinuance or termination may, without the consent of a Participant, adversely affect the rights of such Participant to amounts previously credited to his Account or reduce the right of such
Participant to a payment or distribution hereunder which he has already earned and to which he is otherwise entitled. In the event of termination of the Plan, any amounts credited to the Account of a Participant may, in the sole discretion of the
Committee, be distributed in full to such Participant as soon as reasonably practicable following such termination. 
  
 ARTICLE XIV 
  
 MISCELLANEOUS 
  
 14.1. Non-Guarantee of
Employment. Participation in the Plan does not give any Employee any right to be retained in the service of the Employer. Nothing in the Plan shall interfere with or limit in any way the right of the Company to terminate a Participant’s
employment at any time. 
  

 -23- 

 14.2. Rights of Participants to Benefits. All rights of a Participant under the Plan to
amounts credited to the Participant’s Account are mere unsecured contractual rights of the Participant (or his or her Beneficiary) against the Employer. Each Employer shall be primarily responsible for payment of benefits hereunder to the
Participants it employs and the Beneficiaries of such Participants. In the event an Employer fails to pay any amount due under this Plan for any reason, the Company shall be jointly and severally liable for the payment of such amount. 
  
 14.3. No Assignment. No amounts credited to Accounts nor any
rights or benefits under the Plan shall be subject in any way to voluntary or involuntary alienation, sale, transfer, assignment, pledge, attachment, garnishment, execution, or encumbrance, and any attempt to accomplish the same shall be void.

  
 14.4. Withholding. The Company shall have the
right to deduct from any distribution made hereunder any taxes required by law to be withheld from a Participant with respect to such payment, and, shall have the right, in accordance with Section 7.6(c), to require that a portion of a
Participant’s Account distribution be paid in cash in order to satisfy such withholding obligations. 
  

 -24- 

 14.5. Account Statements. Periodically (as determined by the Committee), each Participant
shall receive a statement indicating the amounts credited to and payable from the Participant’s Account. 
  
 14.6. Gender. The masculine shall be read in the feminine, the singular in the plural, and vice versa, whenever the context shall so
require. 
  
 14.7. Titles. The titles to articles
and sections in this Plan are placed herein for convenience of reference only, and the Plan is not to be construed by reference thereto. 
  
 14.8. Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity
shall not affect the remaining parts of the Plan and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 
  
 14.9. Successors. All obligations of the Company under the Plan shall be binding upon and inure to the benefit of any successor to the
Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. 
  
 14.10. Governing Law. Except to the extent preempted by
applicable federal laws, the Plan shall be construed according to the laws of the state of Delaware, other than its conflict of laws principles. 
  
 14.11. Other Plans. Except as specifically provided herein, nothing in this Plan shall be construed to affect the rights of a Participant, a
Participant’s Beneficiaries, or a 
  

 -25- 

 Participant’s estate to receive any retirement or death benefit under any tax-qualified or nonqualified pension
plan, deferred compensation agreement, insurance agreement or other retirement plan of the Employer. 
  
 To record the adoption of the Plan, Constar International Inc. has caused its authorized representative to affix its corporate name effective as of the
day and year first written above. 
  

			
	 CONSTAR INTERNATIONAL INC.

		
	 By:
	 	 /s/ William Little

	 Title:
	 	Chairman of Compensation Committee

  

 -26-Production and Supply Agreement

 Exhibit 10.1 
  
 BDA PRODUCTION 
 AND 
 SUPPLY AGREEMENT 
  
 THIS AGREEMENT, dated as of January 29, 2004, is made by and between EMBREX, INC., a North Carolina corporation (hereinafter “EMBREX”), and
Charles River Laboratories, Inc., a Delaware corporation (hereinafter “SPAFAS”), through its SPAFAS Avian Products Services Division. 
  
 WHEREAS, EMBREX has certain rights in a bursal disease antiserum product (“BDA”) and its use in an infectious bursal disease vaccine and other
applications; and 
  
 WHEREAS, SPAFAS is in the business of
supplying specific pathogen-free birds and related avian supplies and wishes to manufacture and supply BDA (also, the “Product”) to EMBREX for use in post-hatch and in ovo vaccines; 
  
 NOW, THEREFORE, in consideration of the covenants and representations
contained herein and intending to be legally bound, it is agreed as follows: 
  
 ARTICLE 1: DEFINITIONS 
  
 Solely
for the purposes of this Agreement, the terms set forth hereinafter shall be defined as follows: 
  
 (a) “Affiliate” shall mean any person, corporation, firm, partnership or other entity controlling, controlled by or under common control with
EMBREX or SPAFAS, with “control” defined as at least a fifty percent voting interest. 
  
 (b) “Agreement” shall mean this BDA Production and Supply Agreement. 
  
 (c) “BDA” shall mean Embrex’s proprietary bursal disease antiserum product described in the attached
specifications, with applications which include, but are not limited to, use in poultry vaccines for administration in ovo or post-hatch to provide immunization against Infectious Bursal Disease. 
  
 (d) “Confidential Information” shall mean (a) Improvements,
inventions, information, processes, Know-how, Patents, patent applications, trade secrets and similar intellectual property rights of either party, including, without limitation, all documents, drawings, specifications, equipment, prototype models
and tangible manifestations, embodying Subject Technology; and (b) any other information disclosed heretofore or hereafter by either party to the other in writing and marked as “Confidential” or if disclosed orally, reduced to writing and
marked as “Confidential” and submitted within thirty (30) days of the original oral disclosure. 
  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 (e) “Lot” shall mean BDA yield from a complete production cycle that includes the period of
time required to prepare a facility to receive chicks, to complete vaccination protocols, to bleed and process blood, and prepare the facility for the next cycle. This period will be no longer than [***] ([***]) weeks. 
  
 (f) “Dose” shall mean any measure of blood serum having [***]
([***]) units of BDA. 
  
 (g) “Facility” shall mean the
SPAFAS facilities used specifically for the production of BDA. 
  
 (h) “Improvements” shall mean any and all improvements to the Subject Technology developed by EMBREX, patented or un-patented, or Know-how (including underlying improvements to the Know-how) including, without limitation, improved
methods of manufacture and production techniques and any new developments intended to enhance the efficacy of the Subject Technology. 
  
 (i) “Know-how” shall mean the accumulation of skills, processes and experience, including formula, production seed and specifications,
heretofore or hereafter developed or obtained by EMBREX pertaining to the Subject Technology, including, but not limited to, any and all technical information, trade secrets, test results, studies and analyses, approved vendor lists for key raw
materials, pre-clinical and clinical data, manufacturing data, formulation or production technology, and other information necessary or useful in the manufacture, sale and use of BDA. 
  
 (j) “Patent” or “Patents” shall mean any and all patents and patent applications, United States or
foreign, including any reissue patents, continuations, continuations in part, divisions, or reissue applications filed or to be filed which relate to the Subject Technology in which EMBREX holds or obtains any right or interest. 
  
 (k) “Subject Technology” shall mean all ideas, methods, inventions,
Improvements, Know-how, techniques, formulations and rights heretofore or hereafter owned by EMBREX or licensed to EMBREX and disclosed to SPAFAS during the life of this Agreement related to in ovo technology used in avian applications, BDA, or
Patents, as hereinabove defined, concerning compounds, formulations, methods, processes or techniques relating specifically to any of the foregoing. 
  
 (l) “Unit” shall mean the antibody activity level in a serum TCID50 titer value of [***]. The term TCID50 refers to the titer at which 50% of
the cells in a standard 96 well plate remain alive in the presence of virus. Calculation of the TCID50 titer value for a serum sample is described as set forth in Exhibit A. 
  
 (m) “Calendar Year” shall mean the duration of time beginning from January 1 through December 31 of any single
numerical year. 
  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  
 2 

 (n) “Term” shall mean from date of execution of this agreement through December 31, 2006; or
until all product agreed upon for 2006 is produced and accepted. 
  
 ARTICLE 2:
MANUFACTURE AND SUPPLY OF BDA 
  

	2.01	Manufacture of BDA 

  
 (a) SPAFAS shall comply with all applicable federal, state and local requirements in connection with the manufacture and supply of BDA. Such obligation
shall include, without limitation, complying with Title IX of the Code of Federal Regulations (9 CFR Parts 100-117). For reasonable cause, EMBREX shall have the right, upon reasonable notice to SPAFAS and during normal business hours, to inspect
SPAFAS’ Facility, operations, and quality control records to review and inspect the manufacture of BDA, to audit and confirm compliance with the requirements of this Agreement, and to trace production in connection with any recall, product
liability or other problems related to manufacture, provided that none of the foregoing shall unduly interfere with SPAFAS other business activities. EMBREX shall provide SPAFAS with a written summary of that audit within forty-five days of review.
Any such inspection or right to inspect by EMBREX shall in no way relieve SPAFAS of its obligation to deliver BDA conforming to the terms and specifications set forth in this Agreement, or EMBREX’s right to inspect and reject the BDA pursuant
to section 2.01(c). SPAFAS shall inform EMBREX promptly in writing in the event of any inspection or audit by a state or federal agency related to the manufacture or supply of BDA, shall allow EMBREX to attend and participate fully in any such
inspection or audit to the extent it concerns BDA, and shall provide a summary description of the results from any such inspection or audit. 
  
 (b) SPAFAS shall supply and manufacture BDA for EMBREX in conformance with each purchase order issued by EMBREX and EMBREX’s product specifications
and production protocol as set forth in Exhibits A, B and C attached hereto, all standard operating procedures and quality control standards mutually agreed upon by both parties from time to time and all applicable governmental regulations in effect
at the time of manufacture and supply. Such product specifications and production protocol may be modified from time to time by EMBREX upon written approval from SPAFAS (including any necessary adjustments to financial, logistical or other terms),
such approval not to be unreasonably withheld or delayed. EMBREX hereby grants SPAFAS a limited, non-exclusive right and license to internally practice the Subject Technology and Patents solely to manufacture and deliver BDA to EMBREX in accordance
with the terms of this Agreement. SPAFAS will deliver to EMBREX a sample of three (3) ml of serum for potency testing upon completion of each Lot unless instructed otherwise by EMBREX, together with all legally required or otherwise agreed from time
to time documentation regarding manufacturing, testing and analysis performed by SPAFAS. 
  
 (c) EMBREX shall have the right to reject and return any shipment of BDA within thirty (30) days of completion of the testing process described in this Section 2.01(c) if it reasonably determines that the shipment
does not conform with BDA specifications as set 
  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  
 3 

 forth in Exhibits A, B and C or the other requirements of this Agreement. All or parts of any shipments may be held for
SPAFAS’s disposition and at SPAFAS’s expense if found not to be in conformity with such specifications and standards. Upon acceptance, EMBREX shall pay SPAFAS for such shipment in accordance with the terms of Section 2.03. In the absence
of written notice expressly rejecting any shipment or sample thereof, such shipment shall be deemed have been accepted by EMBREX. Such acceptance shall limit the warranties granted in Section 2.05(a)(i) of this Agreement solely to the extent that
the testing procedures described in this Section 2.01(c) reveal or, if properly conducted by Embrex, would have revealed breaches of warranties of the character intended to be revealed by such testing procedures. BDA potency will be tested by
SPAFAS, and may be tested by EMBREX (or their respective designee), using the testing methods specified in Exhibit A. If both SPAFAS and EMBREX perform tests and the test results yield activity levels within [***] percent ([***]%) of each other, the
average of the two tests will be used as the activity level of the particular batch in question. In the event that the activity level of the SPAFAS and EMBREX tests are different by [***] percent or more, a retest shall be performed by each party or
its designee. Each party shall make available all necessary results or personnel to confirm their findings. 
  
 If the results of the second series of testing are within ([***]%) of each other, the average value of these results will then be taken as the agreed titer. If not, the
technical experts of the parties will assess if there is any risk to vaccine field performance from acceptance of the Lot. If they agree there is no risk, then the average of all four tests will be taken as the agreed titer. Notwithstanding anything
in this Agreement to the contrary, EMBREX shall not be required to accept any Lot below a titer of [***]. 
  
 2.02 Supply Commitment. 
  
 (a) During each calendar year, EMBREX shall issue purchase orders to SPAFAS from time to time in an aggregate amount not less than the Supply Commitment (as defined below). SPAFAS shall accept all such purchase orders that aggregate to less
than the Supply Commitment during each calendar year and are otherwise consistent with the terms of this Agreement, including the lead time parameters set forth in Exhibit D. The Supply Commitment for 2004 (including amounts purchased prior to the
effective date of this Agreement) will be [***] doses of BDA. The Supply Commitment for each ensuing year will be agreed between the parties by September 30th of the preceding year; provided however that EMBREX agrees to order and SPAFAS agrees to
supply a Supply Commitment at least equal to [***] doses of BDA per ensuing year. Notwithstanding the foregoing, SPAFAS will use commercially reasonable efforts to accommodate any request from EMBREX to reduce the Supply Commitment for any
applicable period due to external conditions EMBREX believes will reduce product demand. 
  
 (b) EMBREX shall have the right to increase the total quantity of BDA in a purchase order in any Calendar Year and SPAFAS shall use commercially reasonable efforts to satisfy any such change requested by EMBREX.

  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  
 4 

 (c) The parties intend to enter into another agreement for Newcastle Disease antiserum (“NDA”)
and, after the effective date of such agreement, SPAFAS will accommodate a reduction in the Supply Commitment of BDA to the extent there is an offsetting dose-for-dose increase in the number of doses of NDA ordered by EMBREX from SPAFAS, provided
however that if the cost of production of one NDA dose is more than [***] percent ([***]%) greater than the cost of production of one BDA dose, EMBREX agrees to proportionately increase the number of doses of NDA purchased by EMBREX . 
  
 (d) Any purchase order or any acknowledgment thereof, whether printed,
stamped, typed or written, shall be governed by the terms of this Agreement and none of the provisions of such purchase order or acknowledgment shall be applicable except those specifying quantity ordered, delivery dates, special shipping or
delivery instructions and invoice information which, in each case, is consistent with the terms hereof. 
  
 (e) Shipments of Lots will be made in the quantities and at the time or times specified by EMBREX in the appropriate purchase order. If at any time SPAFAS
has reason to believe that deliveries will not be made as scheduled, it will immediately give EMBREX written notice setting forth the cause or causes of the anticipated delay. Lots will be shipped FOB SPAFAS storage facility. 
  
 2.03 Price and Payment for BDA 
  
 (a) BDA shall be sold to EMBREX at $[***] per thousand Doses, in full Lot
quantities or as otherwise agreed by the parties from time to time. 
  
 (b) Product prices are FOB SPAFAS storage facilities. During the Term of this Agreement, the BDA prices may be increased after each 18 months. The level of the increase will be negotiated in good faith between the parties and, in any event,
will be less than [***]%. The first such price increase shall be negotiated for implementation on July 1st, 2004.

  
 (c) SPAFAS shall supply Embrex with samples of each Lot prior
to SPAFAS shipping the Lot to EMBREX or its designee. Embrex shall have 30 days to establish titer of the lot before receiving an invoice. If after the 30 days, the titer is still not established, SPAFAS shall invoice Embrex based on [***] Units per
ml. When the titer is finally established the difference owed or refunded will be arranged by debit or credit. Embrex will not be charged any incremental costs provided the inability to establish titer or delay in establishing titer occurred in good
faith. 
  
 (d) SPAFAS shall invoice Embrex upon delivery of a BDA
Lot or portions of a Lot ordered by Embrex or segregation of BDA pursuant to section 2.04 hereof. Payment shall be made by EMBREX for all accepted BDA, and for any incremental costs associated with storage of BDA at the Facility pursuant to Section
2.04(c), within thirty (30) days of receipt of SPAFAS’ invoice. Presentation of an invoice will constitute certification by SPAFAS that BDA in the quantities invoiced has been placed in storage and is available for shipment 
  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  
 5 

 at the direction of EMBREX subject to the limitations mentioned in Section 2.04(a). A late payment service change of
[***]% per month (or the highest amount allowed by law, if lower than [***]%) shall be paid on all past due amounts. 
  
 2.04 Storage and Shipment 
  
 (a) SPAFAS will be responsible for storing all BDA at its facilities, packaging the BDA in a manner acceptable to EMBREX, segregating EMBREX owned BDA
from SPAFAS owned BDA, protecting and insuring the BDA until it is shipped, and preparing BDA for shipment in a manner which will minimize risks of damage to the BDA and in accordance with the Terms of this Agreement. 
  
 (b) All delivery shall be made, in full Lots (except as otherwise agreed from
time to time), F.O.B. SPAFAS’ storage facility in accordance with and upon receipt of written instructions from EMBREX, and shall be made no later than the later of the date requested by EMBREX or thirty (30) days following the receipt of
instructions from EMBREX (hereinafter referred to as a “Timely Basis”). Reschedules of shipments shall otherwise occur only upon the prior written agreement of the parties. All freight expenses will be prepaid by SPAFAS and added to
SPAFAS’ invoice to EMBREX for payment by EMBREX. SPAFAS shall arrange insured common carrier transportation of the BDA to EMBREX’s specified plant or other designated destination. If requested by EMBREX, SPAFAS shall arrange, at
EMBREX’s expense, adequate transportation insurance coverage for the replacement value of the shipped BDA. Title to the BDA shall pass to EMBREX when stored at the SPAFAS facility, at the time such BDA is segregated and stored. 
  
 (c) EMBREX will pay to SPAFAS the actual incremental storage and insurance
charges up to a maximum of [***] per bottle per month for all bottles stored beyond one hundred eighty days. Storage charges will be invoiced quarterly. If pre-approved by EMBREX, SPAFAS’ actual cost of creating additional storage capacity for
storing EMBREX BDA at the Facility shall be borne by EMBREX. 
  
 2.05 Guarantees and Warranties 
  
 (a) SPAFAS warrants to EMBREX as follows: 
  
 (1) The
BDA delivered to EMBREX pursuant to this Agreement shall conform with the agreed product specifications set forth in Exhibits A, B, and C, and shall be manufactured in accordance with Title IX of the Code of Federal Regulations (9 CFR Parts 100-117)
and all other applicable laws, rules, regulations and regulatory advisements. Upon notification by EMBREX that the BDA delivered to EMBREX under this Agreement is not acceptable, as EMBREX’s sole remedy and SPAFAS’ sole liability
hereunder, SPAFAS shall replace the BDA promptly or, at EMBREX’s election, remit to EMBREX, an amount equal to the price actually paid by EMBREX to SPAFAS for the unacceptable BDA. Any modification of the BDA by EMBREX shall void this warranty.
The foregoing warranty shall be subject to EMBREX maintaining the BDA in accordance with SPAFAS’ 
  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  
 6 

 written instructions and making such claim within one (1) year of receipt of the BDA at issue by EMBREX, subject to the
acceptance procedures set forth in Section 2.01(c). SPAFAS further warrants that, to the best of SPAFAS’ knowledge, SPAFAS owns all right, title and interest in and to the processes used to manufacture BDA under this Agreement or otherwise has
the right to use such processes without further cost or liability to EMBREX. The foregoing warranties shall not, under any circumstances, apply to and SPAFAS will not be responsible for, any special, indirect, consequential or incidental damages
arising out of or in connection with the production, sale or use of BDA by EMBREX This warranty is in lieu of, and specifically disclaims and excludes, all other warranties, express, implied or statutory, including the warranties of merchantability
fitness for a particular purpose and non-infringement of any patent, trademark or other intellectual property right. In no event shall SPAFAS’ liability under this agreement, including without limitation any claims of the type identified in
Section 2.05(e), exceed the amounts paid by EMBREX for BDA in the prior calendar year, which period may include, as appropriate, shipments made prior to execution of this Agreement. 
  
 (2) SPAFAS is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware with all requisite corporate power and authority to execute and deliver this Agreement, and to perform its obligations hereunder. The execution and delivery of this Agreement and the performance and
observance of all terms, conditions and obligations have been duly authorized by any necessary actions on the part of SPAFAS. 
  
 (3) The execution and delivery of this Agreement and the consummation of all of the transactions contemplated hereby do not and will not conflict with, or
be in contravention of, any of SPAFAS’s corporate documents or any instrument or contract to which SPAFAS is a party. 
  
 (b) EMBREX warrants to SPAFAS as follows: 
  
 (1) EMBREX is a corporation duly organized, validly existing and in good standing under the laws of the State of North Carolina, with all requisite
corporate power and authority to execute and deliver this Agreement, and to perform its obligations hereunder. The execution and delivery of this Agreement and the performance and observance of all terms, conditions and obligations have been duly
authorized by any necessary actions on the part of EMBREX. 
  
 (2)
The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby do not and will not conflict with, or be in the contravention of, any of EMBREX’s corporate documents or any instrument or contract to
which EMBREX is a party. 
  
 (3) EMBREX warrants that it owns or
licenses all right, title and interest in the BDA furnished by EMBREX to SPAFAS heretofore or hereunder and the intellectual property related thereto, and that SPAFAS’ use of any and all such material in connection with the services provided
heretofore or hereunder do not infringe any third party intellectual property or other proprietary rights. 
  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  
 7 

 (c) Subject to the limitation of liability contained in Section 2.05(a)(1), SPAFAS shall indemnify and
hold EMBREX harmless from and against all claims, causes of action, settlement costs, including reasonable attorney’s fees, losses or liabilities of any kind asserted by third persons to the extent they arise out of or are attributable to
SPAFAS’ breach of any of its warranties, representations and covenants under this Agreement or the negligence or willful malfeasance of SPAFAS’s employees, agents or representatives. 
  
 (d) EMBREX shall indemnify and hold SPAFAS harmless from and against all
claims, causes of action, settlement costs, including reasonable attorney’s fees, losses or liabilities of any kind asserted by third persons to the extent they arise out of or are attributable to EMBREX’s breach of any of its
representations, warranties and covenants under this Agreement or the negligence or willful malfeasance of EMBREX’s employees, agents or representatives or the manufacture, distribution, use, sales or other disposition by EMBREX, or any
distributor, customer, sublicensee or representative of EMBREX, of any of EMBREX’s product incorporating BDA produced or supplied by SPAFAS hereunder, or any claim by a third party of infringement of its patent rights or unauthorized use or
misappropriation of its know-how, based upon an assertion or claim arising out of SPAFAS’ use of EMBREX’s Subject Technology, except to the extent any such claims arise out of or are attributable to SPAFAS’ breach of its warranties
set forth in Section 2.05(a) (disregarding, solely for purposes of this provision, the knowledge qualification in Section 2.05(a) as to intellectual property matters). 
  
 (e) NEITHER PARTY SHALL BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL LOSSES ARISING OUT OF OR RELATING
TO THIS AGREEMENT; PROVIDED HOWEVER, THIS LIMITATION SHALL NOT APPLY TO LOSSES ARISING FROM THIRD PARTY CLAIMS FOR WHICH A PARTY IS INDEMNIFIED UNDER THE TERMS OF THIS AGREEMENT. 
  
 2.06 Press Release: The parties agree that after execution of this Agreement a press release or other public announcement may be
issued regarding the Agreement. Any such release or announcement shall be reviewed and approved by both parties prior to its issuance. 
  
 ARTICLE 3: DISCLOSURE AND CONFIDENTIALITY 
  
 It is contemplated that prior to and in the course of the performance of this Agreement each party has disclosed or may, from time to time, disclose
Confidential Information to the other party. Each party agrees to take all reasonable steps to safeguard such Confidential Information and to protect such information against disclosure, misuse, loss and theft. However, no provisions in this
Agreement shall be construed so as to preclude disclosure of Confidential Information: 
  
 a) which is known to the recipient as evidenced by its written records before receipt thereof; 
  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  
 8 

 b) Which is disclosed to the recipient as evidenced by its written records before receipt thereof;

  
 c) Which is or becomes part of the public domain or is
publicly divulged through no fault of the recipient; 
  
 d) which
the recipient party can demonstrate has been developed independently by it without the use of and not as a consequence of the Confidential Information received from the disclosing party; or 
  
 e) which is inherent in or reasonably necessary for the purpose of securing
from any government agency any necessary approval to manufacture or market BDA. 
  
 The obligations of the parties under this Article 3 shall terminate five years after the expiration or termination of this Agreement. 
  
 ARTICLE 4: OWNERSHIP AND THIRD PARTY CLAIMS AND INFRINGEMENT 
  
 4.01 Third Party Claim. Upon learning that a third party is making, using or selling a product or component of a product which is
within the scope of any Patent or Subject Technology, that a third party is infringing any Patent or that a third party is asserting any claim, demand, action or cause of action with respect to the Subject Technology, SPAFAS shall promptly notify
EMBREX in writing and shall supply EMBREX with any evidence available pertaining to such use, infringement or claim. EMBREX at its option, shall have complete and sole control and right to bring, maintain and settle any suit, action or proceeding
involving any such use or infringement of the Patent or Subject Technology, and to defend, negotiate, or settle any claim, demand, action or cause of action asserted by a third party. EMBREX shall pay all reasonable expenses actually incurred by
SPAFAS in connection with such transactions, and any amount recovered as a result of such actions shall be paid to or retained by EMBREX. 
  
 4.02 Ownership. The Subject Technology, Improvements and all data, information, reports and any and all related documentation, which are developed, generated or
derived, directly or indirectly, alone or with others, by SPAFAS in the course of its performance under this Agreement (the “Data”), and any intellectual property rights therein, shall be and remain the sole and exclusive property of
EMBREX; provided, however, that any invention, improvement, development, concept, discovery or other proprietary information owned by SPAFAS or in which SPAFAS has an interest relating to manufacturing of pharmaceutical products generally and not
specifically related to BDA shall be and remain the property of SPAFAS (a “SPAFAS Invention”). Except as specifically set forth herein, neither SPAFAS nor its employees or agents shall have or acquire any right, title or interest in Data,
Subject Technology or Improvements. SPAFAS shall promptly disclose in writing to EMBREX any 
  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  
 9 

 such Data or Improvements. To the extent not a SPAFAS Invention, SPAFAS shall assign any and all rights in such Data and
Improvements to EMBREX and shall assist EMBREX in perfects its rights therein. 
  
 ARTICLE 5: DURATION AND TERMINATION 
  
 (a) The
Agreement shall be in effect for the Term, unless sooner terminated in accordance with the provisions herein. Thereafter, this Agreement may be extended by mutual written agreement of the parties. 
  
 (b) Either party may terminate this Agreement by giving the other party
written notice at least twelve (12) months prior to such termination. 
  
 (c) In the event either party defaults on or breaches any material provision of this Agreement, the other party shall have the right to terminate this Agreement by giving written notice to the defaulting or breaching party, provided,
however, that if said defaulting or breaching party cures said default or breach within sixty (60) days after said notice shall have been given, this Agreement shall continue in full force and effect. Failure on the part of either party to exercise
or enforce any right conferred upon it hereunder shall not be deemed to be a waiver of any such right nor operate to bar the exercise or enforcement thereof at any time or times thereafter. 
  
 (d) If during the term of this Agreement either party shall become bankrupt
or insolvent, its business placed in the hands of a receiver or trustee, or it becomes a party to any procedure for the settlement of its debts or to a dissolution proceeding, whether by voluntary act or otherwise, this Agreement may be terminated
by the other party upon ten (10) days notice. 
  
 (e) EMBREX may
terminate this Agreement in the event of an assignment or other transfer by SPAFAS to a competitor of EMBREX. 
  
 (f) Termination of this Agreement shall be without prejudice to the rights of either party in respect to any previous breach of any of the provisions of
this Agreement and shall not relieve EMBREX of payment obligations already accrued or accrued by reason of completion of a current purchase order or relieve SPAFAS of its duty to complete any current purchase order. 
  
 (g) Notwithstanding any termination of this Agreement, the provisions of
Sections 2.05 and 5(h) and Articles 3, 4 and 6 shall survive. 
  
 (h) In the event of termination of this Agreement other than by EMBREX pursuant to Section 5(b) or by SPAFAS pursuant to Section 5(c), SPAFAS and its Affiliates shall thereafter: 
  
 (1) Refrain from any use of Subject Technology; 
  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  
 10 

 (2) Return to EMBREX all papers, writings, designs, and other documentation embodying or showing any of
the Subject Technology or Confidential Information, and deliver all inventory of BDA upon payment of EMBREX to SPAFAS for such inventory; 
  
 (3) At the request of EMBREX, sign all necessary documentation as may be reasonably necessary to effectuate any of SPAFAS’s obligations here under;

  
 (4) SPAFAS shall use commercially reasonable efforts to
provide EMBREX all necessary information, cooperation and assistance to transition the manufacture of the BDA supply to EMBREX or a third party designated by EMBREX, including the transfer of all necessary or useful process technology and all
necessary assistance in obtaining any related necessary regulatory qualifications. EMBREX shall pay SPAFAS for all reasonable internal costs (determined according to SPAFAS’s then-current standard internal rates) and reasonable out-of-pocket
expenses actually incurred by SPAFAS in connection with the transitional services; 
  
 (5) SPAFAS shall grant and hereby grants EMBREX a limited, non-exclusive worldwide, royalty-free license, with right to sublicense, to practice any know-how, invention, improvement or other intellectual property of
SPAFAS, including SPAFAS Inventions, necessary to and solely in connection with the development, use, manufacture, offer for sale, import and sale of BDA for EMBREX’s benefit; and 
  
 (6) Solely in the event this Agreement is terminated by EMBREX under Section 5(c) or (e) or by SPAFAS under Section 5(b),
and notwithstanding Section 2.02(a), EMBREX by written notice may increase the then-current Supply Commitment of BDA for delivery during the notice period specified in Section 5(b) up to a maximum of the equivalent of [***] doses per month during
such period, in order to enable EMBREX to accumulate post-termination inventories. 
  
 ARTICLE 6: MISCELLANEOUS 
  
 6.01 Force Majeure. Except
with respect to payment due hereunder, neither party shall be liable to the other in damages for, nor shall this Agreement be terminable or cancelable by reason of, any delay or default in such party’s performance hereunder if such default or
delay is caused by events beyond such party’s reasonable control including, but not limited to, acts of God, regulation or law of other action or any government or agency thereof, war, insurrection, civil commotion, destruction of facilities or
materials by volcano, earthquake, fire, flood or storm, labor disturbances, loss of flocks or birds due to disease or failure of suppliers, public utilities or common carriers of any actual or de facto import embargoes, provided that SPAFAS uses
continuous commercially reasonable efforts to remedy such force majeure affecting SPAFAS and, upon EMBREX’s request, cooperates reasonably with EMBREX to enable procurement of an interim supply of BDA during the period affected by such force
majeure, including without limitation by granting interim enabling technology licenses to qualified manufacturers identified by EMBREX and by reducing the applicable Supply Commitment to reflect any such interim supply. 
  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  
 11 

 6.02 Governing Law. The validity, performance and construction of this Agreement shall be governed by the laws of
the State of New York. Jurisdiction over any party in any action may be accomplished by giving notice as provided in this Agreement. 
  
 6.03 Notices. Any notice or communication required or permitted to be given by either party hereunder shall be deemed sufficiently given if mailed by registered
mail and addressed to the party to whom notice is given as follows: 
  
 If to
EMBREX to: 
 Randall L. Marcuson, President and Chief Executive Officer 
 EMBREX, INC. 
 1035 Swabia Court 
 Durham, NC 27703

  
 If to SPAFAS to: 
 Jorg M. Geller, President 
 Charles River Laboratories, Inc. 
 (SPAFAS Avian Products & Services Division) 
 190 Route 165 
 Preston, CT 06365 
  
 Copy to: 
 Dennis R. Shaughnessy, Esq. 
 Charles River Laboratories, Inc. 
 251 Ballardvale Street 
 Wilmington, MA 01887 
  
 Notices shall be deemed given on the third business day after mailing or when actually
received by any method, if earlier. 
  
 6.04 Entire Agreement. This
agreement is binding upon and inures to the benefit of the parties and their successors and assigns, provided such assignment is made accordance with Section 6.07; represents the entire agreement between the parties as of the effective date hereof;
supersedes all prior agreements (written or oral) concerning the subject matter hereof; and may be modified or amended only by mutual agreement set forth in writing and signed by both of the parties. 
  
 6.05 Severability. The parties agree that neither party intends to violate any public
policy, statutory or common laws or governmental regulations. If any provision of this Agreement shall be declared void or unenforceable by any judicial or administrative authority, the validity of the other provisions and of the entire agreement
shall not be affected thereby. 
  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  
 12 

 6.06 Relationship. It is expressly agreed that the relationship hereby established is solely that of contracting
parties, it being understood that SPAFAS under the Agreement is acting for its own account as an independent contractor and has no authority to make, assume or create any representation, warranty, agreement, guarantee, claim or settlement on behalf
of EMBREX with respect to the BDA, the Subject Technology or otherwise. 
  
 6.07
Assignment. Other than to an affiliated entity or in connection with a sale, merger or consolidation of EMBREX or the SPAFAS Avian Products & Services division, this agreement may not be transferred or assigned without the prior written
consent of both parties, which shall not be unreasonably withheld. It has been made solely for the benefit of the parties, their respective successors and permitted assign, and no other person shall acquire or have any right under or by virtue of
this Agreement. 
  
 6.08 Dispute Resolution. The parties shall attempt, in
good faith, to resolve through negotiations any controversy, claim, or dispute arising out of this Agreement. In the event that negotiations are not successful, the controversy, claim, or dispute may be submitted to third party mediation upon terms
reasonably acceptable to the parties. If such claim, controversy or dispute is not resolved through mediation, upon written demand of either party, the claim, controversy or dispute shall be submitted to non-binding arbitration before three (3)
arbitrators. Such arbitration shall take place in the other party’s state, and shall proceed in accordance with the Commercial Arbitration Rules of the American Arbitration Association and the laws of the State of New York. Within seven (7)
calendar days after either party makes a written demand on the other for arbitration, each party shall select one (1) arbitrator. A third arbitrator shall be chosen by the arbitrators selected by the parties within thirty (30) days of the demand for
arbitration, and shall act as chairman. In the event that any arbitrator is not appointed in the prescribed time period, either party may apply to the American Arbitration Association for the appointment of such arbitrator. A record and transcript
of the proceedings shall be maintained. Any award shall be made in writing and in reasonable detail, setting forth the findings of fact and conclusion of law supporting the award. All costs of such arbitration, except expert fees and attorneys’
fees, shall be shared equally by the parties. 
  
 IN WITNESS
WHEREOF, the parties hereto, each warranting to the other full power and authority to enter into this Agreement, have caused this Agreement to be duly and validly executed by their authorized representatives to have effect as a sealed instrument as
of the day and year first above written. 
  

							
	 EMBREX, INC.
	 	 Charles River Laboratories, Inc.

	 	 	 (for administration by its SPAFAS Avian

	 	 	 Products & Services Division)

				
	 By:
	 	 /s/ Randall L. Marcuson

	 	 By:
	 	 /s/ Jorg M. Geller

	 	 	 Randall L. Marcuson
	 	 	 	 Jorg M. Geller

	 	 	 President and Chief Executive Officer
	 	 	 	 President

		
	 Dated: 1/29/04
	 	 Dated: 1/29/04

  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  
 13 

 Exhibit A 
  

SOP-2739 
  
 NASS-TSSE-520 

			
	 Charles River Laboratories, Inc.
          SPAFAS DIVISION
	  	 SOP-2739 Rev. 4
 (old NASS-TSTC-130)
 Effective Date: November 14, 2003

	
	 Title:            BDA ASSAY (IBD MNT PROCEDURE)

  

	I.	Purpose/Scope: 

  
 To ensure quality in the BDA Assay. 
  

	II.	Responsibilities: 

  
 Laboratory Technicians as assigned by the Technical Services Manager. 
  

	III.	Safety: 

  
 N/A 
  

	IV.	References: 

  

	 	A.	Standard Operating Procedures 

  

	 	1.	SOP-1602        [***] Secondary Preparation 

  

	 	2.	SOP-1596        [***], CEKC and CELC Preparation 

  

	 	3.	SOP-1608        Counting [***], CEKC, and CELC 

  

	 	4.	SOP-1611        [***] Preparation for BDA Assay 

  

	 	5.	SOP-1622        [***] Virus Stock Preparatio 

  

	 	6.	SOP-1566        Preparation of Phosphate Buffered Saline (PBS) 

  

	 	B.	Forms 

  

	 	1.	Biotek plate reader manual 

  

	V.	Definitions: 

  

	 	A.	[***]. 

  

	 	B.	[***] for BDA Assay: is [***], L-glutamine, and gentamycin sulfate added. In this SOP, [***] for BDA assay will be referred to as [***]. See SOP-1611 for preparation of this
media. 

  

	 	C.	PBS: Phosphate Buffered Saline. 

  
 APPROVAL 
  

					
	 Role

	 	 Name

	 	 Department

	 Originator:
	 	 Debra Tosto
	 	 Technical Services Manager

	 Reviewer:
	 	 Dr. Ted Girshick
	 	 Director of Laboratory

	 Reviewer:
	 	 Karen Long
	 	 Quality Assurance Manager

	 Reviewer:
	 	 Debby Porazzi
	 	 Document Control

  
  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

			
	 APPROVAL ROUTE: SP LAB TECH SVC
	  	page 1 of 9

			
	 Charles River Laboratories, Inc.
          SPAFAS DIVISION
	  	 SOP-2739 Rev. 4
 (old NASS-TSTC-130)
 Effective Date: November 14, 2003

	
	 Title:            BDA ASSAY (IBD MNT PROCEDURE)

  

	VI.	Materials: 

  

	 	A.	Sterile PBS 

  

	 	B.	Prepared IBD virus ([***]) 

  

	 	C.	Reference Sera 

  

	 	D.	Test Sera 

  

	 	E.	[***] 

  

	 	F.	Secondary [***] 

  

	 	G.	96 well flat bottom cell culture plates 

  

	 	H.	[***] 

  

	 	I.	Biotek plate reader and printer 

  

	 	J.	General laboratory equipment 

  

	VII.	Procedures: 

  

	 	* NOTE:    	Aseptic technique is used in this procedure until 4.15 of this procedure. 

  

	 	A.	Mark 96 well flat bottom plates accordingly. 

  

	 	B.	Dispense [***] (see SOP-1611 for [***] preparation) each well as indicated by figure 1. 

  

	
	 figure 1

	
	[***]

  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

			
	 	  	page 2 of 9

			
	 Charles River Laboratories, Inc.
          SPAFAS DIVISION
	  	 SOP-2739 Rev. 4
 (old NASS-TSTC-130)
 Effective Date: November 14, 2003

	
	 Title:            BDA ASSAY (IBD MNT PROCEDURE)

  

	 	C.	Add [***] to well B through G of column two as indicated in figure 2. 

  

	 	1.	Approximately [***] of media is needed for each plate. 

  

	
	 figure 2

	
	[***]

  

	 	D.	Add [***] to all [***]. See figure 3. 

  

	
	 figure 3

	
	[***]

  

	 	E.	Preparing and adding reference serum. 

  

	 	NOTE:	Both the reference and the test sera are heat inactivated at [***] for [***] prior to frozen storage. 

  

	 	1.	Take the reference serum out of the minus seventy (-70) freezer. Thaw the test sample at the same time as the reference serum. 

  

	 	2.	Both sera must be diluted prior to addition to the 96 well flat bottom plates. 

  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

			
	 	  	page 3 of 9

			
	 Charles River Laboratories, Inc.
          SPAFAS DIVISION
	  	 SOP-2739 Rev. 4
 (old NASS-TSTC-130)
 Effective Date: November 14, 2003

	
	 Title:            BDA ASSAY (IBD MNT PROCEDURE)

  

	 	1.	Place [***] of serum and [***] in a sterile tube and mix. 

  

	 	2.	Transfer [***] of diluted serum into [***]. This is the working dilution. 

  

	 	3.	Add [***] to the appropriate wells. The test sera is added to [***] and the [***]. Refer to figure 4. 

  

	
	 figure 4

	
	[***]

  

	 	4.	After the test and reference sera are added, each serum sample is serially diluted. 

  

	 	1.	[***]. 

  

	 	2.	[***]. 

  

	 	3.	See figure 5 for which wells to serially dilute. 

  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

			
	 	  	page 4 of 9

			
	 Charles River Laboratories, Inc.
          SPAFAS DIVISION
	  	 SOP-2739 Rev. 4
 (old NASS-TSTC-130)
 Effective Date: November 14, 2003

	
	 Title:            BDA ASSAY (IBD MNT PROCEDURE)

  

	
	 figure 5

	
	[***]

  

	 	F.	To equal out the wells without virus with those that will have virus, [***] is added to [***]. See figure 6. 

  

	
	 figure 6

	
	[***]

  

	 	G.	Preparation and addition of virus. 

  
 NOTE: Wear gloves when handling virus. 
  

	 	1.	Determine the amount of [***] needed for the number of plates involved. Aliquot out and set aside in a sterile container. 

  

	 	2.	Approximately [***] will be needed for each test plate. 

  

	 	3.	The dilution of the stock virus (see SOP-1622 for preparation of stock) is made with the [***] set aside in G. 1. The dilution factor varies with the specific lot of virus.

  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

			
	 	  	page 5 of 9

			
	 Charles River Laboratories, Inc.
          SPAFAS DIVISION
	  	 SOP-2739 Rev. 4
 (old NASS-TSTC-130)
 Effective Date: November 14, 2003

	
	 Title:            BDA ASSAY (IBD MNT PROCEDURE)

  

	 	4.	Thaw the virus quickly and add the correct amount of virus to the [***]. 

  

	 	5.	After the virus is diluted and mixed, [***]. 

  

	
	 figure 7

	
	[***]

  

	 	H.	After the virus has been added to the plate incubate the plate for [***]. 

  

	 	I.	Preparation of the [***] cells. 

  

	 	1.	See SOP-1596 for the preparation of [***] cells and SOP-1602 for the preparation of secondary [***] cells. 

  

	 	2.	Cell passages [***] may be used for the BDA assay. 

  

	 	a.	Cells are not passed more than [***], and cannot be used after [***] for the BDA assay. 

  

	 	J.	Take freshly suspended [***] and count the cell suspension (See SOP-1608). 

  

	 	K.	A cell suspension of [***] cells per well is desired for the test. [***] of cell suspension is needed for each plate. To determine the amount of suspended cells needed for the test:

  

	 	1.	Take the cell suspension per well desired and multiply that number by five (5). 

  

	 	2.	Divide the result from K. 1 by the cell count determined in J to get the actual amount of cells of the working suspension per well needed. 

  

	 	3.	Multiply the amount of cell suspension needed per plate, which is [***], by the total number of plates being seeded. 

  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

			
	 	  	page 6 of 9

			
	 Charles River Laboratories, Inc.
          SPAFAS DIVISION
	  	 SOP-2739 Rev. 4
 (old NASS-TSTC-130)
 Effective Date: November 14, 2003

	
	 Title:            BDA ASSAY (IBD MNT PROCEDURE)

  

	 	4.	Multiply the result from K.3 by the result of K.2 to get the total amount of the counted cell suspension needed to be added to the mls of media figured in K.3.

  

	
	 EXAMPLE: Cell suspension calculation:

	
	[***]

  

	 	L.	Aseptically aliquot out the total amount of [***] determined in K.3 and add the amount of cell suspension determined in K.4 to the media. 

  

	 	M.	After the [***] incubation of the samples and virus add [***] of cell suspension to all the wells as indicated in figure 8. Keep cells suspension mixing while being added to the
plates. 

  

	 	1.	Dispense [***]. 

  

	 	2.	[***]. 

  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

			
	 	  	page 7 of 9

			
	 Charles River Laboratories, Inc.
          SPAFAS DIVISION
	  	 SOP-2739 Rev. 4
 (old NASS-TSTC-130)
 Effective Date: November 14, 2003

	
	 Title:            BDA ASSAY (IBD MNT PROCEDURE)

  

	
	 figure 8

	
	[***]

  

	 	N.	After cell suspension is added to all wells incubate the plate for [***]. 

  
 AFTER [***] 
  

	 	O.	Preparation of [***] 

  

	 	CAUTION:	Avoid contact with [***]. Do not inhale or ingest. Toxicology of [***] not fully defined. 

  

	 	1.	For every 4 plates to be tested, weigh out [***]. 

  

	 	2.	Mix solution until dissolved and filter through a [***]. Cover with foil and keep in dark until needed. 

  

	 	P.	Addition of [***] to plates 

  

	 	1.	Retrieve plates from incubator. 

  

	 	2.	Before [***] can be added to the plates [***]. 

  

	 	3.	After the [***]. 

  

	 	Q.	Incubated plates [***]. 

  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

			
	 	  	page 8 of 9

			
	 Charles River Laboratories, Inc.
          SPAFAS DIVISION
	  	 SOP-2739 Rev. 4
 (old NASS-TSTC-130)
 Effective Date: November 14, 2003

	
	 Title:            BDA ASSAY (IBD MNT PROCEDURE)

  

	 	R.	After [***], remove the plates from the incubator and [***] and then [***]. 

  

	 	S.	After adding the [***] place the plate on a [***]. 

  

	 	T.	Turn on Biotek plate reader and printer while waiting for plate to finish shaking (See Biotek manual and for basic operation). 

  

	 	U.	Read plates with the Biotek plate reader as soon as possible after the [***]. 

  

	 	V.	Save results on diskette and submit diskette to Director of Laboratory Operation or designate for titer determination. 

  

	 	W.	Maintain appropriate records. 

  

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

			
	 	  	page 9 of 9

			
	 CHARLES RIVER LABORATORIES, INC.
                      SPAFAS DIVISION
	  	 Procedure No.: NASS-TSSE-520-2
 Effective Date: February 01, 2001

	
	 Title:            Determination of Antibody Titer for BDA

  

	I.	Purpose/Scope: This SOP describes how to calculate the antibody titer of BDA from data generated in the BDA assay (IBD-MNT) 

  

	II.	Responsibilities: Employees at the direction of the Director of Laboratory Operations 

  

	III.	References: 

  

	 	A.	Standard Operating Procedures 

  

	 	1.	NASS-TSSE-521 “Concepts for using Excel and Relative Potency Programs ...” 

  

	 	2.	NASS-TSSE-130 “Virus Isolations in ovo Procedure” 

  

	 	B.	Other 

  

	 	1.	Manual for Microsoft Excel 

  

	IV.	Definition: 

  

	 	A.	O.D.: Optical Density, a numerical measurement generated by a spectrophotometer 

  

	 	B.	BDA: Bursal Disease Antiserum 

  

	V.	Materials: 

  

	 	A.	Personal Computer with printer 

  

	 	B.	Scientific Calculator 

  

	 	C.	BDA Assay data disks 

  

	 	D.	Excel Software 

  

	 	E.	[***] 

  

	VI.	Procedures: 

  

	 	Note:	Persons using this SOP must have a working knowledge of Microsoft Excel before attempting to follow the procedures indicated. 

  

	 	A.	Obtain data disk containing spectrophotometric data from BDA assays. 

  

	 	B.	Open Excel program. 

  

	 	C.	Select template spreadsheet file, [***]. 

  

 APPROVAL 

							
	 Role

	 	 Name

	 	 Department

	 	 Date

	Originator:	 	Robert Stone	 	Tech. Svc. Manager	 	01/24/01
	Reviewer:	 	Dr. Ted Girshick	 	Dir. Lab Operations	 	01/24/01
	Reviewer:	 	Debby Porazzi	 	Quality Assurance	 	01/17/01

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

			
	 Supersedes SOP No: NASS-TSSE-520     Rev 1
	  	Page 1 of 3

			
	 CHARLES RIVER LABORATORIES, INC.
                      SPAFAS DIVISION
	  	 Procedure No.: NASS-TSSE-520-2
 Effective Date: February 01, 2001

	
	 Title:            Determination of Antibody Titer for BDA

  

	 	D.	Select data file from disk, eg. [***], selecting all files from the types of files selection box. 

  

	 	E.	When the Text Import Wizard appears, select Finish. 

  

	 	F.	Select the entire row of data in column A. 

  

	 	G.	Select Copy. 

  

	 	H.	Switch the window tool back to [***]. 

  

	 	I.	Placing cursor in [***], select Paste. 

  

	 	J.	Select the Graph template and correct the headings for this assay. 

  

	 	K.	[***]. 

  

	 	L.	Select [***]. 

  

	 	M.	Select [***] from the drop-down menu. 

  

	 	N.	Select [***] from the choices. 

  

	 	O.	In the [***]. 

  

	 	P.	In the [***]. 

  

	 	Q.	Move the cursor down to the [***] box, select it and type in [***], click ok. 

  

	 	R.	A box appears stating that the range will be overwritten, click ok. 

  

	 	S.	After the black background appears, click anywhere to change appearance and scroll down to the lower part which shows the calculated [***] and the adjusted [***] doses per
milliliter. 

  

	 	T.	Record the titer values and save the worksheet using the same file name as the raw data file. Print the worksheets at this time. 

  

 APPROVAL 

							
	 Role

	 	 Name

	 	 Department

	 	 Date

	Originator:	 	Robert Stone	 	Tech. Svc. Manager	 	01/24/01
	Reviewer:	 	Dr. Ted Girshick	 	Dir. Lab Operations	 	01/24/01
	Reviewer:	 	Debby Porazzi	 	Quality Assurance	 	01/17/01

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

			
	 Supersedes SOP No: NASS-TSSE-520     Rev 1
	  	Page 2 of 3

			
	 CHARLES RIVER LABORATORIES, INC.
                      SPAFAS DIVISION
	  	 Procedure No.: NASS-TSSE-520-2
 Effective Date: February 01, 2001

	
	 Title:            Determination of Antibody Titer for BDA

  

	 	U.	Switch templates to the [***]. 

  

	 	V.	Select File-Save as command. 

  

	 	W.	Choose [***] as the file type, and enter the file name (same as worksheet file name but with a .prn extension. 

  

	 	1.	Save this file in the [***]. 

  

	 	X.	When told that only the current sheet will be saved, choose ok. 

  

	 	Y.	Close the file. When asked to save changes, choose no. 

  

	 	Z.	Re-open the [***] file and repeat the process for the next plate of the assay. 

  

	 	AA.	When all of the plates are done as described above, exit the [***] and open the [***]. 

  

	 	1.	From the [***], type in [***], and enter. 

  

	 	2.	Type [***] and enter. 

  

	 	BB.	Follow the menu questions, retrieving files using the ####.prn file names and saving the output data using the same file names without extensions. 

  

	 	CC.	Print the output data. 

  

	 	DD.	Calculate the [***] value by selecting the [***] for each plate, [***] for all the plates in the assay and [***]. 

  

	 	1.	Only one plate of a four plate assay may be disregarded if it should not yield an [***] value. If more than one plate fails to give an [***] value, the assay is invalid and must be
repeated. 

  

	 	EE.	The titer for the test sample is the [***]. 

  

 APPROVAL 

							
	 Role

	 	 Name

	 	 Department

	 	 Date

	Originator:	 	Robert Stone	 	Tech. Svc. Manager	 	01/24/01
	Reviewer:	 	Dr. Ted Girshick	 	Dir. Lab Operations	 	01/24/01
	Reviewer:	 	Debby Porazzi	 	Quality Assurance	 	01/17/01

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

			
	 Supersedes SOP No: NASS-TSSE-520     Rev 1
	  	Page 3 of 3

 Exhibit B 
  

Tests and Key Codes 

					
	 	  	 PATHOGEN

	  	 TEST

	1.	  	Avian encephalomyelitis virus	  	AGP, SN<2.0
			
	2.	  	Avian adenovirus group I (serotypes I-XII)	  	AGP, MNT<2.0
			
	3.	  	Avian adenovirus group II (HEV)	  	AGP
			
	4.	  	Avian adenovirus group III (EDS)	  	HI<40
			
	5.	  	Influenza (Type A) virus	  	AGP, HI<40
			
	6.	  	Avian lymphoid leukosis (RSV A & B)	  	SN < 2.0
			
	7.	  	Avian lymphoid leukosis virus	  	ELISA <0.2
			
	8.	  	Avian nephritis virus	  	IFA
			
	9.	  	Avian paramyxovirus type 2	  	HI<40
			
	10.	  	Avian rhinotracheitis virus	  	ELISA, S/P ratio < 0.25
			
	11.	  	Avian reovirus	  	AGP, MNT<2.0
			
	12.	  	Chicken Anemia Virus	  	PCR
			
	13.	  	Fowl pox virus	  	AGP
			
	14.	  	Infectious bronchitis (Mass., Conn., JMK, and Ark.)	  	HI<40 OR SN<2.0
			
	15.	  	Infectious laryngotracheitis virus	  	AGP, SN<2.0
			
	16.	  	Marek’s disease (Serotypes 1,2,3)	  	AGP
			
	17.	  	Mycoplasma gallisepticum	  	SPA or HI<20
			
	18.	  	Mycoplasma synoviae	  	SPA or HI<20
			
	19.	  	Newcastle disease virus	  	AGP, HI <40
			
	20.	  	Reticuloendotheliosis virus	  	AGP
			
	21.	  	Salmonella pullorum-gallinarum	  	SPA (Tested on non-frozen sera)
			
	22.	  	Salmonella spp	  	Environmental Culture

			
	 Abbrev

	  	 TEST

	AGP	  	Agar Gel Precipitin Test, negative test is absence of precipitin band with undiluted serum
		
	ELISA	  	Enzyme-linked immunoassay
		
	HI	  	Serum Hemagglutination Inhibition
		
	IFA	  	Indirect Immunofluorescence, negative test is absence of fluorescence at the specified dilution of serum, presently 1:100 dilution.
		
	MNT	  	Serum Microneutralization Test
		
	PCR	  	Polymerase Chain Reaction, absence of DNA fragment band associated with CAV virus
		
	SN	  	Serum Neutralization Test
		
	SPA	  	Serum Plate Agglutination

 Exhibit C 
  

Quality Control Sheets 

 

 
 CHARLES RIVER 
 LABORATORIES 
  
 Bursal Disease Antiserum

 For further Manufacture 
 (Chicken Origin) 
 U.S. Vet. License No. 344 
 Serial No. OFB0301B 
 Product Code No. C205.00 
  

													
	 Infectious Bursal Disease
  
	  	ELISA Titer
9162

	 	 	 	 	 	 	  	 
	 	  	Neutralizing Indices

	 	 	 	 	 	 	  	 
	 Infectious Bronchitis Mass
	  	SN	  	101.0	 	 	 	Avian Adenovirus	 	AGP	  	Negative
	 Infectious Bronchitis Ark
	  	SN	  	100.7	 	 	 	Avian Encephalomyelitis	 	AGP	  	Negative
	 Infectious Bronchitis Conn
	  	SN	  	100.2	 	 	 	Fowl Pox	 	AGP	  	Negative
	 Infectious Bronchitis JMK
	  	SN	  	101.0	 	 	 	Avian Adenovirus Grp II (HEV)	 	AGP	  	Negative
	 Avian Encephalomyelitis
	  	SN	  	101.7	 	 	 	Avian Influenza A	 	AGP	  	Negative
	 Infectious Laryngotracheitis
	  	SN	  	100.5	 	 	 	Infectious
Laryngotracheitis	 	AGP	  	Negative
	 	  	 	  	 	 	 	 	Marek’s Disease	 	AGP	  	Negative
	 Newcastle Disease
	  	 	  	HI	 	Negative	 	Newcastle Disease	 	AGP	  	Negative
	 Paramyxovirus Type 2
	  	 	  	HI	 	Negative	 	Avian Reovirus	 	AGP	  	Negative
	 Avian Influenza A
	  	 	  	HI	 	Negative	 	Reticuloendotheliosis	 	AGP	  	Negative
	 Avian Adenovirus Group III (EDS)
	  	 	  	HI	 	Negative	 	 	 	 	  	 
							
	 Avian Reovirus
	  	 	  	MNT	 	100.0	 	 	 	 	  	 
	 Avian Adenovirus Group 1 (I-XII)
	  	 	  	MNT	 	Negative	 	Chick Anemia Virus	 	IFA	  	Negative
	 	  	 	  	 	 	 	 	Chick Anemia Virus	 	PCR	  	Negative

  

					
	 Avian Lymphoid Leukosis Virus
	  	ELISA	  	Negative
	 Avian Lymphoid Leukosis (RSV A&B)
	  	MNT	  	Negative
			
	 Mycoplasma gallispeticum
	  	SPA	  	Negative
	 Mycoplasma synoviae
	  	SPA	  	Negative
	 Salmonella pullorum-gallinarum
	  	SPA	  	Negative
	 Salmonella Species
	  	ISOLATION	  	Negative
	 Hemophilus paragallinarum
	  	CO	  	Negative

  

			
	 /s/ Theodore Girshick

	 	 /s/ Deborah S. Porazzi

	Director of Laboratory Operations	 	Quality Assurance

  
 SPECIFIC PATHOGEN-FREE AVIAN SUPPLY

  
 Franklin Commons, 106 Route 32, North Franklin, CT 06254 Tel.: (860) 889-1389
or (860) 885-0477 Fax: (860) 889-1991 
 Web Page: www.SPAFAS.com 

 

 
 CHARLES RIVER 
 LABORATORIES 
  
 Bursal Disease Antiserum

 For further Manufacture 
 (Chicken Origin) 
 U.S. Vet. License No. 344 
 Serial No. OFB0301A 
 Product Code No. C205.00 
  

													
	 Infectious Bursal Disease
  
	  	ELISA Titer
8897

	 	 	 	 	 	 	  	 
	 	  	Neutralizing Indices

	 	 	 	 	 	 	  	 
	 Infectious Bronchitis Mass
	  	SN	  	101.0	 	 	 	Avian Adenovirus	 	AGP	  	Negative
	 Infectious Bronchitis Ark
	  	SN	  	100.7	 	 	 	Avian Encephalomyelitis	 	AGP	  	Negative
	 Infectious Bronchitis Conn
	  	SN	  	100.2	 	 	 	Fowl Pox	 	AGP	  	Negative
	 Infectious Bronchitis JMK
	  	SN	  	101.0	 	 	 	Avian Adenovirus Grp II (HEV)	 	AGP	  	Negative
	 Avian Encephalomyelitis
	  	SN	  	101.7	 	 	 	Avian Influenza A	 	AGP	  	Negative
	 Infectious Laryngotracheitis
	  	SN	  	100.5	 	 	 	Infectious
Laryngotracheitis	 	AGP	  	Negative
	 	  	 	  	 	 	 	 	Marek’s Disease	 	AGP	  	Negative
	 Newcastle Disease
	  	 	  	HI	 	Negative	 	Newcastle Disease	 	AGP	  	Negative
	 Paramyxovirus Type 2
	  	 	  	HI	 	Negative	 	Avian Reovirus	 	AGP	  	Negative
	 Avian Influenza A
	  	 	  	HI	 	Negative	 	Reticuloendotheliosis	 	AGP	  	Negative
	 Avian Adenovirus Group III (EDS)
	  	 	  	HI	 	Negative	 	 	 	 	  	 
							
	 Avian Reovirus
	  	 	  	MNT	 	100.0	 	 	 	 	  	 
	 Avian Adenovirus Group 1 (I-XII)
	  	 	  	MNT	 	Negative	 	Chick Anemia Virus	 	IFA	  	Negative
	 	  	 	  	 	 	 	 	Chick Anemia Virus	 	PCR	  	Negative

  

					
	 Avian Lymphoid Leukosis Virus
	  	ELISA	  	Negative
	 Avian Lymphoid Leukosis (RSV A&B)
	  	MNT	  	Negative
			
	 Mycoplasma gallispeticum
	  	SPA	  	Negative
	 Mycoplasma synoviae
	  	SPA	  	Negative
	 Salmonella pullorum-gallinarum
	  	SPA	  	Negative
	 Salmonella Species
	  	ISOLATION	  	Negative
	 Hemophilus paragallinarum
	  	CO	  	Negative

  

			
	 /s/ Theodore Girshick

	 	 /s/ Deborah S. Porazzi

	Director of Laboratory Operations	 	Quality Assurance

  
 SPECIFIC PATHOGEN-FREE AVIAN SUPPLY

  
 Franklin Commons, 106 Route 32, North Franklin, CT 06254 Tel.: (860) 889-1389
or (860) 885-0477 Fax: (860) 889-1991 
 Web Page: www.SPAFAS.com

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]