Document:

2002 Constar Inter'l Inc Stk-Bsd Incntv Comp Plan

  
 Exhibit 10.23 
  
 CONSTAR INTERNATIONAL INC. 
  
 2002
STOCK-BASED INCENTIVE COMPENSATION PLAN 

  
 CONSTAR INTERNATIONAL INC. 
  

2002 STOCK-BASED INCENTIVE COMPENSATION PLAN 
  
 1.  Purpose of the Plan 
  
 The purpose of the
Plan is to assist the Company in attracting and retaining valued employees by offering them a greater stake in the Company’s success and a closer identity with it, and to encourage ownership of the Company’s stock by such employees.

  
 2.  Definitions 
  
 2.1  “Award” means an award of Deferred Stock, Restricted Stock, Options or SARs under the Plan. 

 
 2.2  “Board” means the Board of Directors of the Company. 
  
 2.3  “Cause” means: (i) the Employee’s gross misconduct or gross negligence in connection with the performance of
the Employee’s duties that results in any adverse effect on the Company; (ii) the Employee embezzles any amount of the Company’s assets; (iii) the Employee’s conviction of, or a plea of nolo contendre to, a felony involving
moral turpitude; (iv) the Employee’s engaging in any business that directly or indirectly competes with the Company or the disclosure of trade secrets, customer lists or confidential information of the Company to a competitor or unauthorized
person; or (v) the Employee’s material failure to follow the lawful instructions of the Board. 
  
 2.4  “Change in Control” means: 
  
 (i)  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 1934 Act) 

 
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of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the 1934 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 of the Company, or by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary of the Company, (b) any acquisition by any underwriter in connection with any firm commitment underwriting of
securities to be issued by the Company, or (c) any acquisition by any corporation if, immediately following such acquisition, 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), is 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 Common Stock and the Voting Securities in substantially the same proportions, respectively, as their ownership, immediately prior to such acquisition, of the Common Stock and Voting Securities; or

  
 (ii)   The occurrence of, a reorganization, merger or consolidation other than a
reorganization, merger or consolidation with respect to which all or substantially all of the individuals and entities who were the beneficial owners, immediately prior to such reorganization, merger or consolidation, of the Common Stock and Voting
Securities beneficially own, directly or indirectly, immediately after such reorganization, merger or consolidation 70% or more of the then outstanding common stock and voting securities (entitled
 

 
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to vote generally in the election of directors) of the corporation resulting from such reorganization, merger or consolidation in substantially the same proportions as their respective ownership,
immediately prior to such reorganization, merger or consolidation, of the Common Stock and the Voting Securities; or 
  
 (iii)   The occurrence 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, other than to a
subsidiary, wholly-owned, directly or indirectly, by the Company; or 
  
 (iv)   During any
period of twenty-four (24) consecutive months commencing upon 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 paragraphs (i), (ii) or (iii) 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. 
  
 2.5  “Code” means the Internal Revenue Code of 1986, as amended. 

 
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 2.6  “Committee” means the committee designated by the Board
to administer the Plan under Section 4. The Committee shall have at least two members, each of whom shall be a member of the Board, a Non-Employee Director and an Outside Director. 
  
 2.7  “Common Stock” means the common stock of the Company, par value $.01 per share, or such other class or kind of shares or other securities resulting
from the application of Section 10. 
  
 2.8  “Company” means Constar International Inc., a
Delaware corporation, or any successor corporation. 
  
 2.9  “Deferred Stock” means an Award made
under Section 6 of the Plan to receive Common Stock at the end of a specified Deferral Period. 
  
 2.10  “Deferral Period” means the period during which the receipt of a Deferred Stock Award under Section 6 of the Plan will be deferred. 
  
 2.11  “Disability” means an Employee’s inability to render, for a period of six consecutive months, services hereunder 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. 
  
 2.12  “Employee” means an officer or other key employee of the Company or a Subsidiary including a director who is such an employee. 

 
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 2.13  “Fair Market Value” means, on any given date, the
closing price of a share of Common Stock on the principal national securities exchange on which the Common Stock is listed on such date or, if Common Stock was not traded on such date, on the last preceding day on which the Common Stock was traded.
If at any time such Common Stock is not listed on any securities exchange, the Fair Market Value shall be the fair value of such Common Stock as determined in good faith by the Committee. However for purposes of any Awards granted as of the
effective date of the Company’s initial public offering, the Fair Market Value shall be the initial price to the public as set forth in the final prospectus filed with the Securities and Exchange Commission for such offering. 

 
 2.14  “Holder” means an Employee to whom an Award is made. 
  
 2.15  “Incentive Stock Option” means an Option that meets the requirements of an incentive stock option as defined in
Section 422 of the Code and designated by the Committee as an Incentive Stock Option. 
  
 2.16  “1934
Act” means the Securities Exchange Act of 1934, as amended. 
  
 2.17  “Non-Employee
Director” means a member of the Board who meets the definition of a “non-employee director” under Rule 16b-3(b)(3) promulgated by the Securities and Exchange Commission under the 1934 Act. 
  
 2.18  “Non-Qualified Option” means an Option not intended to be an Incentive Stock Option, and designated by the
Committee as a Non-Qualified Option. 

 
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 2.19  “Option” means the right granted from time to time
under Section 8 of the Plan to purchase Common Stock for a specified period of time at a stated price. An Option may be an Incentive Stock Option or a Non-Qualified Stock Option. 
  
 2.20  “Outside Director” means a member of the Board who meets the definition of an “outside director” under Section 162(m) of the Code and
the regulations thereunder. 
  
 2.21  “Plan” means the Constar International Inc. 2002
Stock-Based Incentive Compensation Plan herein set forth, as amended from time to time. 
  
 2.22  “Restricted Stock” means Common Stock awarded by the Committee under Section 7 of the Plan. 
  
 2.23  “Restriction Period” means the period during which Restricted Stock awarded under Section 7 of the Plan is subject to forfeiture. 
  
 2.24  “Retirement” means retirement from the active employment of the Company or any Subsidiary pursuant to the relevant provisions of the applicable
pension plan of such entity or as otherwise determined by the Committee. 
  
 2.25  “SAR” means a
stock appreciation right awarded by the Committee under Section 9 of the Plan. 
  
 2.26  “Subsidiary” means any (i) corporation if fifty percent (50%) or more of the total combined voting power of all classes of stock is owned, either directly or indirectly, by the Company or another Subsidiary
or (ii) limited liability company if fifty percent (50%) or
 

 
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more of the membership interests is owned, either directly or indirectly, by the Company or another Subsidiary. 
  
 2.27  “Ten Percent Shareholder” means a person who on any given date owns, either directly or indirectly (taking into account the attribution rules
contained in Section 424(d) of the Code), stock possessing more than 10 percent of the total combined voting power of all classes of stock of the Company or a Subsidiary. 
  
 3.  Eligibility 
  
 Any Employee who is designated by the Committee as eligible to participate in the Plan shall be eligible to receive an Award under the Plan. 
  
 4.  Administration and Implementation of Plan 
  
 4.1  The Plan shall be administered by the Committee, which shall have full power to interpret and administer the Plan and full authority to act in selecting the Employees to whom Awards will
be granted, in determining the times at which Awards will be granted, in determining the type and amount of Awards to be granted to each such Employee, the terms and conditions of Awards granted under the Plan and the terms of agreements which will
be entered into with Holders. The Committee shall have the power to establish different terms and conditions with respect to (i) the various types of Awards granted under the Plan, (ii) the granting of the same type of Award to different Employees
(regardless of whether the Awards are granted at the same time or at different times), and (iii) the establishment of different Performance Goals for different Employees. 

 
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 4.2  The Committee’s powers shall also include, but not be limited
to, the power to determine whether, to what extent and under what circumstances an Option may be exchanged for cash, Restricted Stock, Deferred Stock or some combination thereof; to determine whether, to what extent and under what circumstances an
Award is made and operates on a tandem basis with other Awards made hereunder; to determine whether, to what extent and under what circumstances Common Stock or cash payable with respect to an Award shall be deferred, either automatically or at the
election of the Holder (including the power to add deemed earnings to any such deferral); to grant Awards (other than Incentive Stock Options) that are transferable by the Holder; and to determine the effect, if any, of a Change in Control of the
Company upon outstanding Awards. Upon a Change in Control, the Committee may (i) fully vest all Awards made under the Plan, (ii) cancel any outstanding Awards in exchange for a cash payment of an amount equal to the difference between the then Fair
Market Value of the Award less the option or base price of the Award, (iii) after having given the Holder a chance to exercise any outstanding Options or SARs, terminate any or all of the Holder’s unexercised Options or SARs, or (iv) where the
Company is not the surviving corporation, cause the surviving corporation to assume or replace all outstanding Awards with comparable awards. 
  
 4.3  The Committee shall have the power to adopt regulations for carrying out the Plan and to make changes in such regulations as it shall, from time to time, deem advisable. The Committee
shall have the power unilaterally and without approval of a Holder to amend an existing Award in order to carry out the purposes of the Plan so long as such an amendment does not take away any benefit granted to a Holder by the Award and as long as
the amended Award
 

 
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comports with the terms of the Plan. Any interpretation by the Committee of the terms and provisions of the Plan and the administration thereof, and all action taken by the Committee shall be
final, binding and conclusive for all purposes and upon all Holders. 
  
 4.4  The Committee may condition
the grant of any Award or the lapse of any Deferral or Restriction Period (or any combination thereof) upon the Holder’s achievement of a Performance Goal that is established by the Committee before the grant of the Award. For this purpose, a
“Performance Goal” shall mean a goal that must be met by the end of a period specified by the Committee (but that is substantially uncertain to be met before the grant of the Award) based upon: (i) the price of Common Stock, (ii) the
market share of the Company or its Subsidiaries (or any business unit thereof), (iii) sales by the Company or its Subsidiaries (or any business unit thereof), (iv) earnings per share of Common Stock, (v) return on shareholder equity of the Company,
(vi) costs of the Company or its Subsidiaries (or any business unit thereof), (vii) cash flow of the Company or its Subsidiaries (or any business unit thereof), (viii) return on total assets of the Company or its Subsidiaries (or any business unit
thereof), (ix) return on invested capital of the Company or its Subsidiaries (or any business unit thereof), (x) return on net assets of the Company or its Subsidiaries (or any business unit thereof), (xi) operating income of the Company or its
Subsidiaries (or any business unit thereof), or (xii) net income of the Company or its Subsidiaries (or any business unit thereof). The Committee shall have discretion to determine the specific targets with respect to each of these categories of
Performance Goals. Before granting an Award or permitting the lapse of any Deferral or Restriction Period subject to
 

 
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this Section, the Committee shall certify that an individual has satisfied the applicable Performance Goal. 
  
 4.5  Members of the Committee shall receive such compensation for their services as may be determined by the Board. All expenses and liabilities which members of the Committee incur in
connection with the administration of the Plan shall be paid by the Company. The Committee may employ attorneys, consultants, accountants and other service providers. The Committee, the Board, the Company and the Company’s officers shall be
entitled to rely upon the advice and opinions of any such person. No member of the Committee or the Board shall be personally liable for any action, determination or interpretation made with respect to the Plan and all members of the Committee and
the Board shall be fully protected by the Company in respect of any such action, determination or interpretation in the manner provided in the Company’s bylaws. 
  
 5.  Shares of Stock Subject to the Plan 
  
 5.1  Subject to adjustment as provided in Section 10, the total number of shares of Common Stock available for Awards under the Plan shall be eight hundred and fifty thousand (850,000)
shares. Any shares issued hereunder may consist, in whole or in part, of authorized and unissued shares or treasury shares. If any shares subject to any Award granted hereunder are forfeited or such Award otherwise terminates without the issuance of
such shares or the payment of other consideration in lieu of such shares, the shares subject to such Award, to the extent of any such forfeiture or termination, shall again be available for Awards under the Plan. 

 
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 5.2  The maximum number of shares of Common Stock subject to Awards
that may be granted to any Employee shall not exceed 120,000 during any calendar year (the “Individual Limit”). Subject to Section 5.3, Section 11 and Section 14.6, any Award that is canceled or repriced by the Committee shall count
against the Individual Limit. Notwithstanding the foregoing, the Individual Limit may be adjusted to reflect the effect on Awards of any transaction or event described in Section 10. 
  
 5.3  Any shares issued by the Company through the assumption or substitution of outstanding grants from an acquired company shall not (i) reduce the shares
available for Awards under the Plan, or (ii) be counted against the Individual Limit. 
  
 6.  Deferred Stock 
  
 An Award of Deferred Stock is an
agreement by the Company to deliver to the recipient a specified number of shares of Common Stock at the end of a specified deferral period or periods. Such an Award shall be subject to the following terms and conditions: 
  
 6.1  A Deferred Stock Award shall be evidenced by a Deferred Stock Agreement, which shall conform to the requirements of the
Plan and may contain such other provisions as the Committee shall deem advisable. 
  
 6.2  Upon
determination of the number of shares of Deferred Stock to be awarded to a Holder, the Committee shall direct that the same be credited to the Holder’s account on the books of the Company but that issuance and delivery of the same shall be
deferred until the date or dates provided in Section 6.5 hereof. Prior to issuance and delivery
 

 
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hereunder, the Holder shall have no rights as a stockholder with respect to any shares of Deferred Stock credited to the Holder’s account. 
  
 6.3  Amounts equal to any dividends declared during the Deferral Period with respect to the number of shares covered by a
Deferred Stock Award will be paid to the Holder currently, or deferred and deemed to be reinvested in additional Deferred Stock, or otherwise reinvested on such terms as are determined at the time of the Award, and specified in the Deferred Stock
Agreement. 
  
 6.4  The Committee may condition the grant of an Award of Deferred Stock or the expiration
of the Deferral Period upon the Employee’s achievement of one or more Performance Goal(s) specified in the Deferred Stock Agreement. If the Employee fails to achieve the specified Performance Goal(s), the Committee shall not grant the Deferred
Stock Award to the Employee, or the Holder shall forfeit the Award and no Common Stock shall be transferred to him pursuant to the Deferred Stock Award. Dividends paid during the Deferral Period on Deferred Stock subject to a Performance Goal shall
be reinvested in additional Deferred Stock and the lapse of the Deferral Period for such Deferred Stock shall be subject to the Performance Goal(s) previously established by the Committee. 
  
 6.5  The Deferred Stock Agreement shall specify the duration of the Deferral Period taking into account termination of employment on account of death, Disability,
Retirement or other cause. The Deferral Period may consist of one or more installments. At the end of the Deferral Period or any installment thereof the shares of Deferred Stock applicable to such installment credited to the account of a Holder
shall be issued and delivered to the Holder 

 
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(or, where appropriate, the Holder’s legal representative) in accordance with the terms of the Deferred Stock Agreement. Notwithstanding the Deferral Period provided in a Deferred Stock
Agreement, the Committee may accelerate the delivery of all or any part of a Deferred Stock Award or waive the deferral limitations for all or any part of a Deferred Stock Award. 
  
 7.   Restricted Stock 
  
 An Award of Restricted Stock is a grant by the Company of a specified number of shares of Common Stock to the Employee, which shares are subject to forfeiture upon the happening of specified events or upon the
Employee’s and/or Company’s failure to achieve Performance Goals established by the Committee. Such an Award shall be subject to the following terms and conditions: 
  
 7.1  Restricted Stock shall be evidenced by Restricted Stock Agreements. Such agreements shall conform to the requirements of the Plan and, additionally, may
contain such other provisions not inconsistent with the terms of the Plan as the Committee shall deem advisable. 
  
 7.2  Upon determination of the number of shares of Restricted Stock to be granted to an Employee, the Committee shall direct that a certificate or certificates representing the number of shares of Common Stock be issued to
the Employee with the Employee designated as the registered owner. The certificate(s) representing such shares shall be legended as to restrictions on the sale, transfer, assignment, pledge or other encumbrances during the Restriction Period and
deposited by the Employee, together with a stock power endorsed in blank, with the Company. 

 
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 7.3  Unless otherwise determined by the Committee, during the
Restriction Period the Employee shall have all of the rights of a stockholder including the right to vote the shares of Restricted Stock and receive dividends and other distributions, provided that distributions in the form of Common Stock shall be
subject to the same restrictions as the underlying Restricted Stock. 
  
 7.4  The Committee may condition
the grant of an Award of Restricted Stock or the expiration of the Restriction Period upon the Employee’s and/or the Company’s achievement of one or more Performance Goal(s) specified in the Restricted Stock Agreement. If the Employee
fails to achieve the specified Performance Goal(s), the Committee shall not grant the Restricted Stock to the Employee, or the Employee shall forfeit the Award of Restricted Stock and the underlying Common Stock shall be forfeited to the Company.

  
 7.5  The Restricted Stock Agreement shall specify the duration of the Restriction Period and the
performance, employment or other conditions (including termination of employment on account of death, Disability, Retirement or other cause) under which the Restricted Stock may be forfeited to the Company. At the end of the Restriction Period the
restrictions imposed hereunder shall lapse with respect to the number of shares of Restricted Stock as determined by the Committee, and the legend shall be removed and such number of shares delivered to the Employee (or, where appropriate, the
Employee’s legal representative). The Committee may modify or accelerate the vesting and delivery of shares of Restricted Stock. 

 
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 8.  Options 
  
 Options give an Employee the right to purchase a specified number of shares of Common Stock from the Company for a specified time period
at a fixed price. Options may be either Incentive Stock Options or Non-Qualified Stock Options. The grant of Options shall be subject to the following terms and conditions: 
  
 8.1  Option Grants: Options shall be evidenced by a written Option Agreement. Such Option Agreements shall conform to the requirements of the Plan, and may
contain such other provisions as the Committee shall deem advisable. 
  
 8.2  Option Price: The price per
share at which Common Stock may be purchased upon exercise of an Option shall be determined by the Committee, but shall be not less than the Fair Market Value of a share of Common Stock on the date of grant. In the case of any Incentive Stock Option
granted to a Ten Percent Shareholder, the option price per share shall not be less than 110% of the Fair Market Value of a share of Common Stock on the date of grant. 
  
 8.3  Term of Options: An Option Agreement shall specify when an Option may be exercisable and the terms and conditions applicable thereto. The term of an Option
shall in no event be greater than five years. 
  
 8.4  Incentive Stock Options: Each provision of the Plan
and each Option Agreement relating to an Incentive Stock Option shall be construed so that each Incentive Stock Option shall be an incentive stock option as defined in Section 422 of the Code, and any provisions of the Option Agreement thereof that
cannot be so construed shall be disregarded. In no event may a Holder be granted an Incentive Stock Option which does not comply with such
 

 
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grant and vesting limitations as may be prescribed by Section 422(b) of the Code. Without limiting the foregoing, the aggregate Fair Market Value (determined as of the time the Option is granted)
of the Common Stock with respect to which an Incentive Stock Option may first become exercisable by a Holder in any one calendar year under the Plan shall not exceed $100,000. 
  
 8.5  Restrictions on Transferability: No Incentive Stock Option shall be transferable otherwise than by will or the laws of descent and distribution and, during
the lifetime of the Holder, shall be exercisable only by the Holder. Upon the death of a Holder, the person to whom the rights have passed by will or by the laws of descent and distribution may exercise an Incentive Stock Option only in accordance
with this Section 8. 
  
 8.6  Payment of Option Price: An Option may be exercised only for a whole number
of shares of Common Stock. The Committee shall establish the time and the manner in which an Option may be exercised. The option price of the shares of Common Stock received upon the exercise of an Option shall be paid within three days of the date
of exercise: (i) in cash, (ii) in cash received from a broker-dealer whom the Holder has authorized to sell all or a portion of the Common Stock covered by the Option, or (iii) with the consent of the Committee, in whole or in part in shares of
Common Stock held by the Holder for at least six months and valued at their Fair Market Value on the date of exercise. With the consent of the Committee, payment upon the exercise of a Non-Qualified Option may be made in whole or in part by
Restricted Stock which has been held by the Holder for at least six months (based on the fair market value of the Restricted Stock on the date the Option is exercised, as determined by the Committee). In such case the Common Stock to which the

 
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Option relates shall be subject to the same forfeiture restrictions originally imposed on the Restricted Stock exchanged therefor. 
  
 8.7  Termination by Death: If a Holder’s employment by the Company or a Subsidiary terminates by reason of death, any unexercised Option granted to such
Holder may thereafter be exercised (to the extent such Option was exercisable at the time of the Holder’s death or on such accelerated basis as the Committee may determine at or after grant) by, where appropriate, the Holder’s transferee
or by the Holder’s legal representative, for a period of 12 months from the date of death or until the expiration of the stated term of the Option, whichever period is shorter. Any Option which is not exercisable or made exercisable by the
Committee upon such termination shall be forfeited on the date of such termination. 
  
 8.8  Termination by
Reason of Disability: If a Holder’s employment by the Company or a Subsidiary terminates by reason of Disability, any unexercised Option granted to the Holder may thereafter be exercised by the Holder (or, where appropriate, the Holder’s
transferee or legal representative), to the extent it was exercisable at the time of termination or on such accelerated basis as the Committee may determine at or after grant, for a period of 12 months from the date of such termination of employment
or until the expiration of the stated term of the Option, whichever period is shorter. Any Option which is not exercisable or made exercisable by the Committee upon such termination shall be forfeited on the date of such termination. 

 
 8.9  Termination by Reason of Retirement: If a Holder’s employment by the Company or a Subsidiary terminates by
reason of Retirement, any unexercised Option granted to 

 
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the Holder may thereafter be exercised by the Holder (or, where appropriate, the Holder’s transferee or legal representative), to the extent it was exercisable at the time of termination or
on such accelerated basis as the Committee may determine at or after grant, for a period of 12 months from the date of such termination of employment or until the expiration of the stated term of the Option, whichever period is shorter. Any Option
which is not exercisable or made exercisable by the Committee upon such termination shall be forfeited on the date of such termination. 
  
 8.10  Termination Not for Cause: If a Holder’s employment by the Company or a Subsidiary is terminated by the Company or the Subsidiary not for Cause or by the Holder for a reason not specified in this Section
8 (including a voluntary termination), any unexercised Option granted to the Holder may thereafter be exercised by the Holder (or, where appropriate, the Holder’s transferee or legal representative), to the extent it was exercisable at the time
of termination or on such accelerated basis as the Committee may determine at or after grant, for a period of 90 days from the date of such termination of employment or until the expiration of the stated term of the Option, whichever period is
shorter. Any Option which is not exercisable or made exercisable by the Committee upon such termination shall be forfeited on the date of such termination. 
  
 8.11  Termination for Cause: If a Holder’s employment with the Company or a Subsidiary is terminated by the Company or the Subsidiary for Cause, all unexercised Options awarded to the
Holder shall terminate on the date of such termination. 

 
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 9.  Stock Appreciation Rights 
  

SARs give the Employee the right to receive, upon exercise of the SAR, the increase in the Fair Market Value of a specified number of shares of Common Stock from the
date of grant of the SAR to the date of exercise. The grant of SARs shall be subject to the following terms and conditions: 
  
 9.1  SARs are rights to receive a payment in cash, Common Stock, Restricted Stock or Deferred Stock as selected by the Committee. The value of these rights, which are determined by the appreciation in the value of shares of
Common Stock subject to the SAR, shall be evidenced by SAR agreements. Such agreements shall conform to the requirements of the Plan and may contain such other provisions as the Committee shall deem advisable. An SAR may be granted in tandem with
all or a portion of a related Option under the Plan (“Tandem SAR”), or may be granted separately (“Freestanding SAR”). A Tandem SAR may be granted either at the time of the grant of the Option or at any time thereafter during the
term of the Option and shall be exercisable only to the extent that the related Option is exercisable. 
  
 9.2  The base price of a Tandem SAR shall be the option price under the related Option. The base price of a Freestanding SAR shall be not less than 100% of the Fair Market Value of the Common Stock on the date of grant of
the Freestanding SAR. 
  
 9.3  An SAR shall entitle the recipient to receive a payment equal to the excess
of the Fair Market Value of the shares of Common Stock covered by the SAR on the date of exercise over the base price of the SAR. Such payment may be in cash, in shares of Common Stock, in shares of Deferred Stock, in shares of Restricted Stock or
any combination, as the
 

 
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Committee shall determine. Upon exercise of a Tandem SAR as to some or all of the shares of Common Stock covered by the grant, the related Option shall be canceled automatically to the extent of
the number of shares of Common Stock covered by such exercise, and such shares shall no longer be available for purchase under the Option. Conversely, if the related Option is exercised as to some or all of the shares of Common Stock covered by the
grant, the related Tandem SAR, if any, shall be canceled automatically to the extent of the number of shares of Common Stock covered by the Option exercise. 
  
 9.4  SARs shall be subject to the same terms and conditions applicable to Options as stated in sections 8.3, 8.5, 8.7, 8.8, 8.9, 8.10 and 8.11. SARs shall also be subject to such other terms
and conditions not consistent with the Plan as shall be determined by the Committee. 
  
 10.  Deferral Election 
  
 Notwithstanding any provision of the
Plan to the contrary, any Holder may elect, with the concurrence of the Committee and consistent with any rules and regulations established by the Committee, to defer to a specified date the receipt of unrestricted Common Stock that the Holder would
otherwise be entitled to receive pursuant to an Award. Notwithstanding such an election, the Committee may distribute the unrestricted Common Stock deferred by any Holder pursuant to this Section 10 if the Committee determines, in its discretion,
that the continued deferral of Common Stock hereunder is no longer in the best interest of the Company. 

 
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 11.  Adjustments upon Changes in Capitalization 
  
 In the event of a reorganization, recapitalization, stock split, spin-off, split-off, split-up, stock dividend, issuance of stock rights,
combination of shares, merger, consolidation or any other change in the corporate structure of the Company affecting Common Stock, any distribution to stockholders other than a cash dividend, or any change in the corporate structure of a Subsidiary,
the Committee, in its discretion, shall make appropriate adjustment in the number and kind of shares authorized by the Plan and any other adjustments to outstanding Awards as it determines appropriate. No fractional shares of Common Stock shall be
issued pursuant to such an adjustment. The Fair Market Value of any fractional shares resulting from adjustments pursuant to this Section shall, where appropriate, be paid in cash to the Holder. The determinations and adjustments made by the
Committee pursuant to this Section 11 shall be conclusive. 
  
 12.  Effective Date,
Termination and Amendment 
  
 The Plan shall become effective on the effective date of the
Company’s initial public offering. The Plan shall remain in full force and effect until the earlier of five years from the date of its adoption by the Board, or the date it is terminated by the Board. The Board shall have the power to amend,
suspend or terminate the Plan at any time, provided that no such amendment shall be made without stockholder approval to the extent such approval is required under Section 422 of the Code, Section 162(m) of the Code, the rules of a stock exchange or
any other applicable law. Termination of the Plan pursuant to this Section 12 shall not affect Awards outstanding under the Plan at the time of termination. 

 
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 13.  Transferability 

 
 Except as provided below, Awards may not be pledged, assigned or transferred for any reason during the Holder’s lifetime,
and any attempt to do so shall be void and the relevant Award shall be forfeited. The Committee may grant Awards (except Incentive Stock Options) that are transferable by the Holder during his lifetime, but such Awards shall be transferable only to
the extent specifically provided in the agreement entered into with the Holder. The transferee of the Holder shall, in all cases, be subject to the provisions of the agreement between the Company and the Holder. 
  
 14.  General Provisions 
  
 14.1  Nothing contained in the Plan, or any Award granted pursuant to the Plan, shall confer upon any Employee any right with respect to continuance of employment
by the Company or a Subsidiary, nor interfere in any way with the right of the Company or a Subsidiary to terminate the employment of any Employee at any time. 
  
 14.2  For purposes of this Plan, transfer of employment between the Company and its Subsidiaries shall not be deemed termination of employment. However, individuals employed by or providing
services to an entity that ceases to be a Subsidiary shall be deemed to have incurred a termination of employment or service as of the date that such entity ceases to be a Subsidiary. 
  
 14.3  Holders shall be responsible to make appropriate provision for all taxes required to be withheld in connection with any Award, the exercise thereof and the
transfer of shares of Common Stock pursuant to this Plan. Such responsibility shall extend to all applicable
 

 
 22 

 
Federal, state, local or foreign withholding taxes. In the case of the payment of Awards in the form of Common Stock, or the exercise of Options or SARs, the Company shall, at the election of the
Holder, have the right to retain the number of shares of Common Stock whose Fair Market Value equals the amount to be withheld in satisfaction of the applicable withholding taxes. Agreements evidencing such Awards shall contain appropriate
provisions to effect withholding in this manner. 
  
 14.4  Without amending the Plan, Awards may be granted
to Employees who are foreign nationals or employed outside the United States or both, on such terms and conditions different from those specified in the Plan as may, in the judgment of the Committee, be necessary or desirable to further the purpose
of the Plan. 
  
 14.5  To the extent that Federal laws (such as the 1934 Act, the Code or the Employee
Retirement Income Security Act of 1974) do not otherwise control, the Plan and all determinations made and actions taken pursuant hereto shall be governed by the law of the State of Delaware and construed accordingly. 
  
 14.6  The Committee may amend any outstanding Awards to the extent it deems appropriate; provided, however, except as
provided in Section 11, no Award may be repriced, replaced, regranted through cancellation, or modified without shareholder approval if the effect would be to reduce the exercise price for the shares underlying the Award. The Committee may amend
Awards without the consent of the Holder, except in the case of amendments adverse to the Holder, in which case the Holder’s consent is required to any such amendment. 

 
 23 

  
 To record the adoption of the Plan, the Company has caused its authorized
officers to affix its corporate name and seal this              day of
                            , 2002. 
  
  
 
	 [CORPORATE SEAL]
 	    	 CONSTAR INTERNATIONAL INC.
 
	 
	 Attest:                                    
                                        
          
 	    	 By:                                     
                                        
            
 

 
  

 
 24Employment Agreement

 Exhibit 10.24 
  
 EMPLOYMENT AGREEMENT 
  
 This Agreement (this “Agreement”), dated as of
                         , 2002, is made by and between Constar International Inc., a Delaware corporation,
having its principal offices at One Crown Way, Philadelphia, Pennsylvania 19154 (the “Company”), and Mr. Michael Hoffman (the “Executive”). 
  
 Recitals 
  
 1. The stockholder of the Company intends to sell
shares of the Company’s common stock to the public pursuant to the Company’s initial public offering (the “IPO”), as more fully described in the Company’s Registration Statement on Form S-1 (Reg. No. 333-88878).

  
 2. Subject to the closing of the IPO, the Company and the Executive are willing to agree to the terms as
presented in the Agreement. 
  
 Agreement 
  
 NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, and other good and valuable consideration, the Company and the Executive hereby
agree as follows: 
  
 1. Definitions. 
  
 1.1. “Affiliate” means any person or entity controlling, controlled by or under common control with the Company. 
  
 1.2. “Board” means the Board of Directors of the Company. 
  
 1.3. “Cause” means (a) the Executive, in carrying out his duties under this Agreement, engages in gross misconduct or gross negligence resulting in any
adverse effect on the Company, (b) the Executive embezzles any amount of the Company’s assets, (c) the Executive is convicted (including a plea of guilty or nolo contendere) of a felony involving moral turpitude, (d) the Executive’s
breach of any covenant contained in Section 9 below, or (e) the Executive’s material failure to follow the lawful instructions of the Company’s Board (consistent with Section 4 below). 
  

1.4. “Change in Control” shall mean: 
  
 1.4.1. The acquisition, after the Commencement Date, by an individual, entity or group (within the meaning of Section 13(d)(3) or 14 (d)(2) of the Securities Exchange Act of 1934 (the
“Exchange Act”)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the 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 of the Company, or by any employee benefit plan (or related trust) sponsored or maintained by the Company or any subsidiary of the
Company, (b) any acquisition by any underwriter in connection with any firm commitment underwriting of securities to be issued by the Company, or (c) any acquisition by any corporation if, immediately following such acquisition, 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 Common Stock and the Voting Securities in substantially the same proportions, respectively, as
their ownership, immediately prior to such acquisition, of the Common Stock and Voting Securities; or 
  
 1.4.2. The occurrence of a reorganization, merger or consolidation other than a reorganization, merger or consolidation with respect to which all or substantially all of the individuals and entities who were the beneficial
owners, immediately prior to such reorganization, merger or consolidation, of the Common Stock and Voting Securities beneficially own, directly or indirectly, immediately after such reorganization, merger or consolidation 70% or more of the then
outstanding common stock and voting securities (entitled to vote generally in the election of directors) of the corporation resulting from such reorganization, merger or consolidation in substantially the same proportions as their respective
ownership, immediately prior to such reorganization, merger or consolidation, of the Common Stock and the Voting Securities; or 
  
 1.4.3. The occurrence 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 
  
 1.4.4. During any period of twenty-four (24) consecutive months commencing upon the Commencement Date, 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 1.4.1, 1.4.2 or 1.4.3 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. 
  

Notwithstanding the above, a “Change in Control” shall not include any event, circumstance or transaction which results from the action of any entity or group which includes, is
affiliated with or is wholly or partially controlled by one or more executive officers of the Company and in which the Executive participates. 

 
 2 

 1.5. “Disability” means the Executive’s inability to render, for a period of six consecutive
months, services hereunder by reason of physical or mental disability, as determined by the written medical opinion of an independent medical physician mutually acceptable to the Executive and the Company. If the Executive and the Company cannot
agree as to such an independent medical physician, each shall appoint one medical physician and those two physicians shall appoint a third physician who shall make such determination. In no event shall the Executive be considered disabled for the
purposes of this Agreement unless the Executive is deemed disabled pursuant to the Company’s long-term disability plan, if one is maintained by the Company. 
  
 1.6. “Good Reason” means and shall be deemed to exist if, without the prior express written consent of the Executive, (a) the Executive suffers a material change in his reporting
obligations, (b) the Executive suffers a material change in the duties, responsibilities or effective authority associated with his titles and positions, as set forth and described in Section 4 of this Agreement (other than as a result of the
failure by the stockholders of the Company to elect Executive to the Board, the removal of Executive from the Board by the stockholders of the Company, Executive’s resignation from the Board or a determination by the Board, that such nomination
would be prohibited by any governance, rule, regulation or mandate promulgated by any governmental authority or agency, or any stock exchange or other self-regulatory organization, including without limitation the Securities and Exchange Commission,
NASDAQ and any other stock exchange, market or automated quotation system upon which the Company’s securities are listed or traded); (c) the Executive’s base salary amount (as set forth in Section 5.1 below) is decreased by the Company;
(d) the Company fails to pay the accrued Executive’s compensation or to provide for the Executive’s accrued benefits when due; or (e) the Executive’s office location is moved to a location more than 50 miles from Philadelphia,
Pennsylvania. 
  
 2. Employment. Subject to the terms and provisions set forth in this Agreement
and specifically as provided in Section 4.1, the Company hereby agrees that the Executive shall during the Term of Employment be nominated for election at the Company’s regularly scheduled annual meeting of stockholders as a member of and to
the Board and further agrees that during the Term of Employment that the Executive shall be employed as the chief executive officer of the Company, and the Executive hereby accepts such employment and, if so elected by the stockholders, such
directorship. 
  
 3. Term of Employment. The term of employment under this Agreement shall
commence on the closing of the IPO (the “Commencement Date”) and, unless earlier terminated under Section 6 below or extended pursuant to the next sentence, shall terminate on the third anniversary of the Commencement Date (the “Term
of Employment”). The Term of Employment shall automatically be extended, subject to the same terms, conditions and limitations as provided herein, for an additional one year period on the first anniversary of the Commencement Date and on each
such anniversary date thereafter unless, not later than ninety days prior to any such anniversary, either party to this Agreement shall have given notice to the other that the Term of Employment shall not be extended or further extended beyond its
then automatically extended term, if any. 

 
 3 

  
 4. Positions, Responsibilities and Duties. 
  
 4.1. Positions. During the Term of Employment, the Executive shall be employed and serve as the chief executive officer of
the Company and he shall be nominated for election as a member of and to the Board of the Company at the Company’s regularly scheduled annual meeting of stockholders, provided that such nomination shall not be prohibited by any governance,
rule, regulation or mandate promulgated by any governmental authority or agency, or any stock exchange or other self-regulatory organization, including without limitation the Securities and Exchange Commission, NASDAQ and any other stock exchange,
market or automated quotation system upon which the Company’s securities are listed or traded, and provided that the Executive has been elected to the Board by the stockholders after all such previous nominations. In such positions, the
Executive shall have the duties, responsibilities and authority normally associated with the office and position of director and chief executive officer of a publicly-traded corporation. The Executive shall report to the Board. All other employees
of the Company shall report to the Executive and/or his designees. Notwithstanding the above, the Executive shall not be required to perform any duties and responsibilities which would be likely to result in a non-compliance with or violation of any
applicable law or regulation. 
  
 4.2. Duties. During the Term of Employment, the Executive shall have
complete responsibility for and authority over all day-to-day operations of the Company and its Affiliates. Additionally, during the Term of Employment, the Executive shall devote substantially all of his business time, during normal business hours,
to the business and affairs of the Company and the Executive shall use his reasonable best efforts to perform faithfully and efficiently the duties and responsibilities contemplated by this Agreement; provided, however, that the
Executive shall be allowed, to the extent such activities do not substantially interfere with the performance by the Executive of his duties and responsibilities hereunder, to (a) manage the Executive’s personal, financial and legal affairs,
and (b) serve on corporate, civic or charitable boards or committees. 
  
 5. Compensation and Other
Benefits. 
  
 5.1. Base Salary. During the Term of Employment, the Executive shall receive a
base salary per annum (“Base Salary”) payable in accordance with the Company’s normal payroll practices of no less than US $320,000. The Board shall review the Executive’s Base Salary annually and may, in its sole discretion,
increase (but not decrease) the Executive’s Base Salary. 
  
 5.2. Annual Bonus. In respect of each
calendar year during the Term of Employment, beginning in calendar year 2002 on a pro-rated basis, the Executive shall be eligible to receive a target annual bonus (the “Bonus”) equal to 60% of the Base Salary if the Executive and/or the
Company achieves performance goals established by the Board in good faith and consistent with the Constar International Inc. Short-Term Incentive Plan. The Bonus shall not be paid if during any such calendar year (a) the Executive voluntarily
terminates his employment under this Agreement without Good Reason or (b) his employment hereunder is terminated for Cause (as such terms are defined in this Agreement). 

 
 4 

  
 5.3. Retirement and Savings Plans. During the Term of Employment,
the Executive shall be eligible to participate as of the Commencement Date in all incentive, pension, retirement, savings, 401 (k) and other employee pension benefit plans, policies and programs (the “Retirement Plans”) maintained by the
Company from time to time for the benefit of senior executives and/or other employees. However, nothing in this Section 5.3 shall be construed to require the Company to establish or maintain any such Retirement Plans. 
  
 5.4. Welfare Benefit Plans. During the Term of Employment, the Executive, the Executive’s spouse, if any, and their
dependents, if any, shall be eligible as of the Commencement Date, without any waiting periods and without any pre-existing condition limitations, to participate in and be covered on the same basis as other senior executive officers of the Company
under all the welfare benefit plans, policies and/or programs maintained by the Company from time to time including, without limitation, all medical, hospitalization, dental, disability, life, accidental death and dismemberment and travel accident
insurance plans, policies and/or programs (the “Welfare Plans”). However, nothing in this Section 5.4 shall be construed to require the Company to establish or maintain any such Welfare Plans. The Welfare Plans and the Retirement Plans are
sometimes referred to collectively herein as the “Benefit Plans.” 
  
 5.5. Expense
Reimbursement. During and in respect of the Term of Employment, the Executive shall be entitled to receive prompt reimbursement for expenses incurred by the Executive in performing his duties and responsibilities hereunder in accordance with
the Company’s policy for senior executives of the Company. 
  
 5.6. Vacation and Fringe Benefits.
During the Term of Employment, the Executive shall be entitled to at least 3 weeks paid vacation each calendar year, plus paid time off due to illness or personal reasons in accordance, in all such cases, with Company policy. 

 
 5.7. Stock Options. As of the closing of the IPO, the Board shall grant the Executive a non-qualified stock
option to acquire 66,840 shares of the Company’s voting common stock (the “Option”). The per share exercise price of the Option shall be equal to the offering price of the Company’s shares to the public pursuant to the IPO.
Provided that the Executive remains employed by the Company, the Option shall vest and become exercisable as to one-third of the aggregate underlying shares on each of the first three anniversaries of the date of grant. In addition, upon the
occurrence of a Change in Control, the death of the Executive or the termination of the Executive by Disability or the termination by the Executive for Good Reason, 100% of the Option shall vest and become exercisable. Notwithstanding the above, in
the event that the Executive’s employment as chief executive officer is terminated by the Company for Cause, 100% of the Option shall terminate and be forfeited by the Executive (whether or not any portion thereof is then vested or
exercisable). In the event of the termination of the Executive’s employment as chief executive officer for any other reason by the Company or by the Executive, any portion of the Option that is unvested or unexercisable on the date of
termination shall be terminated and forfeited by the Executive and the remaining vested and exercisable portion thereof shall remain exercisable for ninety days thereafter or until the expiration of the stated term of the Option, whichever period is
shorter, except that in the case of death, disability or normal retirement at or after age 65, the vested and exercisable portion of the Option on the date of such termination shall remain exercisable for one year or until the expiration of the
stated term of the Option, whichever period is shorter. 

 
 5 

  
 5.8. Restricted Stock. As of the closing of the IPO, the Board
shall grant the Executive 5,000 shares of restricted voting common stock of the Company (the “Restricted Shares”). 100% of the Restricted Shares shall vest on the third anniversary of the Restricted Shares date of grant or, if earlier,
upon the death, disability or normal retirement at or after age 65. In addition, upon the occurrence of a Change in Control or a termination by the Executive for Good Reason the Restricted Shares shall become 100% vested. Notwithstanding the above,
in the event that the Executive’s employment as chief executive officer is terminated by the Company for Cause, 100% of the Restricted Shares shall be forfeited by the Executive (whether or not any portion thereof is then otherwise vested). In
the event of the termination of the Executive’s employment as chief executive officer for any other reason by the Company or by the Executive (other than due to death, disability, Good Reason or normal retirement as described above), the
Restricted Shares shall vest in an amount equal to the aggregate number of Restricted Shares multiplied by a fraction, the numerator of which is the number of days transpired from the date of grant until the date of such termination and the
denominator of which is 1095. 
  
 6. Termination. Upon the occurrence of any termination of the
Executive’s employment as chief executive officer, the Executive shall and shall be deemed to immediately resign from any membership on the Board and from any committees thereof (and the Executive shall promptly tender to the Board a written
resignation letter effecting the foregoing). 
  
 6.1. Termination Due to Death. In the event of the
Executive’s death, the Executive’s estate or his legal representative, as the case may be, shall be entitled to: (a) any Base Salary accrued but unpaid as of the date of death and Base Salary (as set forth in Section 5.1 of this Agreement)
continuation through the date of the Executive’s death; (b) a pro-rata Bonus payment for the year of the Executive’s death equal to no less than 100% of the Bonus for such year multiplied by a fraction, the numerator which is the number of
days transpired in the calendar year up to and including the date of the death of the Executive, and the denominator of which is 365; (c) immediate payment of any unpaid expense reimbursements, deferred compensation and unused accrued vacation days
through the date of the Executive’s death; and (d) any other benefits to which the Executive, the Executive’s estate or the Executive’s legal representative is entitled to receive under any of the Benefit Plans. 

 
 6.2. Termination Due to the Executive’s Disability. Upon 30 days prior written notice to the Executive, the
Company may terminate the Executive’s employment hereunder due to Disability. In such event, the Executive or his legal representative, as the case may be, shall be entitled to: (a) any Base Salary accrued but unpaid as of the date of the
Executive’s termination due to Disability and Base Salary (as set forth in Section 5.1 of this Agreement) continuation through the end of the month in which such termination occurs; (b) a pro-rata Bonus payment for the year of termination equal
to no less than 100% of the Bonus for such year multiplied by a fraction, the numerator of which is the number of days transpired in the calendar year up to and including the date on which the Executive is terminated by the Company due to
Disability, and the denominator of which is 365; (c) immediate payment of any unpaid expense reimbursements, deferred compensation and unused accrued vacation days through the date of termination; and (d) any other payments and/or benefits which the
Executive or the Executive’s legal representative is entitled to receive under any of the Benefit Plans. 

 
 6 

  
 6.3. Termination Without Cause or by the Executive for Good Reason Prior to
Change in Control. Prior to a Change in Control and upon 30 days prior written notice to the Executive, the Company may terminate the Executive’s employment hereunder without Cause. Prior to a Change in Control and upon 30 days prior
written notice to the Company the Executive may terminate his employment hereunder with the Company for Good Reason. In either such event, the Executive shall be entitled to, upon execution and effectiveness of a general release in such form
attached as exhibit “A” and upon resignation by the Executive from the Board: (a) (i) Base Salary (as set forth in Section 5.1 of this Agreement) continuation for twenty-four months, and (ii) payment of the target Bonus amount for the year
in which any such termination occurs; (b) continuation of medical benefits in effect as of the date of termination for a period of two years following the date of termination at the Company’s sole expense and following the expiration of this
coverage period, COBRA continuation coverage under the Company’s medical plan for 18 months in accordance with applicable law at the Executive’s sole expense provided that the Executive is not enrolled in another group health plan
(Executive will be solely responsible for any federal or state income tax incurred on the provision of medical coverage under this Section 6.3(b)); (c) immediate payment of any unpaid expense reimbursements, deferred compensation and unused accrued
vacation days through the date of termination; and (d) any other payments and/or benefits which the Executive is entitled to receive under any of the Benefit Plans. In the event the Executive intends to terminate his employment with the Company for
Good Reason such prior written notice shall specify the particular act or acts, or failure to act, which is or are the basis for the Executive’s decision to so terminate his employment for Good Reason. The Company shall be given 30 days after
such notice to correct such act or failure to act. Upon failure of the Company, with such 30 day period, to correct such act or failure to act, the Executive may proceed to terminate his employment with the Company. 
  
 6.4. Termination Without Cause or by the Executive for Good Reason After a Change in Control. After a Change in Control and
upon 30 days prior written notice to the Executive, the Company may terminate the Executive’s employment hereunder without Cause. After a Change in Control and upon 30 days prior written notice to the Company the Executive may terminate his
employment hereunder with the Company for Good Reason. In either such event, the Executive shall be entitled to, upon execution and effectiveness of a general release in such form attached as exhibit “A” and upon resignation by the
Executive from the Board: (a) a lump sum payment equal to two times (Base Salary (as set forth in Section 5.1 of this Agreement) plus the target Bonus amount for the year in which any such termination occurs); (b) continuation of medical benefits in
effect as of the date of termination for a period of two years following the date of termination at the Company’s sole expense and following the expiration of this coverage period, COBRA continuation coverage under the Company’s medical
plan for 18 months in accordance with applicable law at the Executive’s sole expense provided that the Executive is not enrolled another group health plan (Executive will be solely responsible for any federal or state income tax incurred on the
provision of medical coverage under this Section 6.4(b)); (c) immediate payment of any unpaid expense reimbursements, deferred compensation and unused accrued vacation days through the date of termination; and (d) any other payments and/or benefits
to which the Executive is entitled to receive under any of the Benefit Plans. 

 
 7 

  
 6.5. Termination For Cause. Subject to the provisions of this
Section 6.5, the Company may terminate the Executive’s employment for Cause. In such event, the Executive shall be entitled to: (a) any Base Salary accrued but unpaid through the date of termination; (b) immediate payment of any unpaid expense
reimbursements, deferred compensation and unused accrued vacation days through the date of termination; and (c) any other payments and/or benefits to which the Executive is entitled to receive under any of the Benefit Plans. In any case described in
this Section 6.5, the Executive shall be given written notice authorized by a vote of at least a majority of the members of the Board that the Company intends to terminate the Executive’s employment for Cause. Such written notice shall specify
the particular act or acts, or failure to act, which is or are the basis for the decision to so terminate the Executive’s employment for Cause. Executive shall be given 30 days after such notice to cure such act or failure to act to the
satisfaction of the Board. Upon failure of the Executive, within such 30 day period, to correct such act or failure to act, the Executive shall be deemed terminated for Cause. 
  
 6.6. Termination Without Good Reason. Upon 30 days prior written notice to the Company, the Executive shall have the right to terminate his employment
hereunder without Good Reason or any reason at all. In such event, the Executive shall be entitled to: (a) any Base Salary accrued but unpaid through the date of termination; (b) immediate payment of any unpaid expense reimbursements, deferred
compensation and unused accrued vacation days through the date of termination; and (c) any other payments and/or benefits to which the Executive is entitled to receive under any of the Benefit Plans. 
  
 6.7. Certain Other Payments. If the Executive is liable for the payment of any excise tax (the “Basic Excise Tax”)
pursuant to Section 4999 of the Code, or any successor or like provision, with respect to any payment or property transfers received or to be received under this Agreement or otherwise, the Company shall pay the Executive an amount (the
“Special Reimbursement”) which, after payment to the Executive (or on the Executive’s behalf) of any federal, state and local taxes, including, without limitation, any further excise tax under said Section 4999, with respect to or
resulting from the Special Reimbursement, equals the net amount of the Basic Excise Tax. The Special Reimbursement shall be paid as soon as practicable after it is determined by the Company or the Executive and reviewed for accuracy by the
Company’s certified public accountants. 
  
 7. Non-exclusivity of Rights. Nothing in this
Agreement shall prevent or limit the Executive’s continuing or future participation in any benefit, bonus, incentive or other plan, policy or program provided or maintained by the Company and/or any Affiliate and for which the Executive may
qualify, nor shall anything herein limit or otherwise prejudice such rights as the Executive may have under any other existing or future agreements with the Company and/or any Affiliate, including, without limitation, any stock option agreements or
plans. Amounts which are vested benefits or which the Executive is otherwise entitled to receive under any plans or programs of the Company and/or any Affiliate at or subsequent to the date of termination shall be payable in accordance with such
plans or programs. Notwithstanding the above, the Company shall be under no obligation to establish or maintain any such plan, policy or program. 

 
 8 

 8. Successors. 
  
 8.1. The Executive. This Agreement is personal to the Executive and, without the prior express written consent of the Company, shall not be assignable by the Executive, except that the
Executive’s rights to receive any compensation or benefits under this Agreement may be transferred or disposed of pursuant to testamentary disposition, intestate succession or pursuant to a domestic relations order. This Agreement shall inure
to the benefit of and be enforceable by the Executive’s heirs, beneficiaries and/or legal representatives. 
  
 8.2. The Company. This Agreement shall inure to the benefit of and be binding upon the Company and its respective successors and assigns. The Company shall require any successor to all or substantially all of its
business and/or assets, whether direct or indirect, by purchase, merger, consolidation, acquisition of stock, or otherwise, by an agreement in form and substance satisfactory to the Executive, expressly to assume and agree to perform this Agreement
in the same manner and to the same extent as the Company would be required to perform if no such succession had taken place. 
  
 9. Restrictive Covenants. 
  
 9.1. Non-Solicitation. If the
Executive’s employment, as chief executive officer of the Company terminates for any reason, the Executive, for a period of twelve months after any such termination, shall not (except on the Company’s behalf), directly or indirectly, on
his own behalf or on behalf of any other person, firm, partnership, corporation or other entity, (a) solicit or service the business of any of the Company’s or its Affiliates’ clients, any of the Company’s or its Affiliates’
former clients which were clients within twelve months prior to the termination of his employment as chief executive officer or any of the prospective clients which were being actively solicited by the Company, or its Affiliates at the time of the
termination of his employment, as chief executive officer or (b) attempt to cause or induce any employee of the Company or its Affiliates to leave the Company, or the Affiliate. 
  
 9.2. Non-Competition. If the Executive’s employment as chief executive officer of the Company terminates for any reason, except by non-renewal of this
Agreement by the Company for reason other than for Cause, the Executive, for a period of twelve months after any such termination, shall not, directly or indirectly, within or with respect to the United States of America engage, without the consent
of the Company, in any business or activity, whether as an employee, consultant, partner, principal, agent, representative, stockholder or in any other capacity, or render any services or provide any advice to any business, activity, person or
entity which competes with any PET packaging business; provided, however, that the Executive’s ownership of not more than 5% of the stock of any publicly-traded corporation shall not be a violation of this Section 9.2. By agreeing
to this contractual modification prospectively at this time, the parties intend to make this provision enforceable under the law(s) of all applicable states so that the entire agreement not to compete and/or this Agreement as prospectively modified
shall remain in full force and effect and shall not be rendered void or illegal. Such modifications shall not affect the payments made to the Executive under this Agreement. The Executive acknowledges that his skills are such that he can be
gainfully employed in noncompetitive employment and that the agreement not to compete will in no way prevent him
 

 
 9 

 
from earning a living. The Executive understands and agrees that the rights and obligations set forth in this Section 9.2 shall extend beyond the Term. 
  
 9.3. Confidentiality. The Executive shall not, during the Term of Employment and at any time thereafter, without the prior
express written consent of the Company, directly or indirectly, divulge, disclose or make available or accessible any Confidential Information (as defined below) to any person, firm, partnership, corporation, trust or any other entity or third party
(other than when required to do so in good faith to perform the Executive’s duties and responsibilities under this Agreement or when (a) required to do so by a lawful order of a court of competent jurisdiction, any governmental authority or
agency, or any recognized subpoena power, or (b) necessary to prosecute the Executive’s rights against the Company or its Affiliates or to defend himself against any allegations). In addition, the Executive shall not create any derivative work
or other product based on or resulting from any Confidential Information (except in the good faith performance of his duties under this Agreement). The Executive shall also proffer to the Board’s designee, no later than the effective date of
any termination of his employment as chief executive officer with the Company for any reason, and without retaining any copies, notes or excerpts thereof, all memoranda, computer disks or other media, computer programs, diaries, notes, records,
data, customer or client lists, marketing plans and strategies, and any other documents consisting of or containing Confidential Information that are in the Executive’s actual or constructive possession or which are subject to his control at
such time. For purposes of this Agreement, “Confidential Information” shall mean all information respecting the business and activities of the Company, or any Affiliate of the Company, including, without limitation, the terms and
provisions of this Agreement, the clients, customers, suppliers, employees, consultants, computer or other files, projects, products, computer disks or other media, computer hardware or computer software programs, marketing plans, financial
information, methodologies, know-how, processes, practices, approaches, projections, forecasts, formats, systems, data gathering methods and/or strategies of the Company or any Affiliate. Notwithstanding the immediately preceding sentence,
Confidential Information shall not include any information that is, or becomes, generally available to the public (unless such availability occurs as a result of the Executive’s breach of any portion of this Section 9.3). 

 
 9.4. Ownership of Inventions. Each Invention made, conceived or first actually reduced to practice by the
Executive, whether alone or jointly with others, during the term of Executive’s employment with the Company and each Invention made, conceived or first actually reduced to practice by the Executive, whether alone or jointly with others, within
one year after the termination of Executive’s employment with the Company which relates in any way to work performed for the Company during the term of Executive’s employment, shall be promptly disclosed in writing to the Board. Such
report shall be sufficiently complete in technical detail and appropriately illustrated by sketch or diagram to convey to one skilled in the art of which the invention pertains, a clear understanding of the nature, purpose, operations, and, to the
extent known, the physical, chemical, biological or other characteristics of the Invention. As used in this Agreement, “Invention” means any invention, discovery or innovation with regard to any facet of the Company’s business whether
or not patentable, made, conceived, or first actually reduced to practice by Executive, alone or jointly with others, in the course of, in connection with, or as a result of service as an Executive of the Company, including any art, method, process,
machine, manufacture, design or composition of matter, or any improvement
 

 
 10 

 
thereof. Each invention, as herein defined, shall be the sole and exclusive property of the Company. The Executive agrees to execute an assignment to the Company or its nominee of the
Executive’s entire right, title and interest in and to any Invention, without compensation beyond that provided in this Agreement. The Executive further agrees, upon the request of the Company and at its expense, that the Executive will execute
any other instrument and document necessary or desirable in applying for and obtaining patents in the United States and in any foreign country with respect to any Invention. The Executive further agrees, whether or not the Executive is then an
employee of the Company, to cooperate to the extent and in the manner reasonably requested by the Company in the prosecution or defense of any claim involving a patent covering any Invention or any litigation or other claim or proceeding involving
any Invention covered by this Agreement, but all expenses thereof shall be paid by the Company. 
  
 9.5.
Injunctive Relief. The Executive acknowledges and agrees that the Company will have no adequate remedy at law, and would be irreparably harmed, if the Executive breaches or threatens to breach any of the provisions of this Section
9 of this Agreement. The Executive agrees that the Company shall be entitled to equitable and/or injunctive relief to prevent any breach or threatened breach of this Section 9, and to specific performance of each of the terms of such Section in
addition to any other legal or equitable remedies that the Company may have. The Executive further agrees that he shall not, in any equity proceeding relating to the enforcement of the terms of this Section 9, raise the defense that the Company has
an adequate remedy at law. 
  
 9.6. Special Severability. The terms and provisions of
this Section 9 are intended to be separate and divisible provisions and if, for any reason, any one or more of them is held to be invalid or unenforceable, neither the validity nor the enforceability of any other provision of this Agreement shall
thereby be affected. It is the intention of the parties to this Agreement that the potential restrictions on the Executive’s future employment imposed by this Section 9 be reasonable in both duration and geographic scope and in all other
respects. If for any reason any court of competent jurisdiction shall find any provisions of this Section 9 unreasonable in duration or geographic scope or otherwise, the Executive and the Company agree that the restrictions and prohibitions
contained herein shall be effective to the fullest extent allowed under applicable law in such jurisdiction. 
  
 10. Miscellaneous. 
  
 10.1. Applicable Law. This Agreement
shall be governed by and construed in accordance with the laws of the State of Delaware, applied without reference to principles of conflict of laws. Both the Executive and the Company agree to appear before and submit exclusively to the
jurisdiction of the state and federal courts located within Philadelphia, Pennsylvania with respect to any controversy, dispute, or claim arising out of or relating to this Agreement. The Executive further agrees that the Company may serve you with
judicial process via registered or certified mail and that the General Counsel of the Company shall at all times be the Executive’s agent for service of judicial process, and the Executive hereby appoints the General Counsel of the Company as
the Executive’s agent for that and any other related purpose. 

 
 11 

  
 10.2. Amendments. This Agreement may not be amended or modified
otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives. 
  
 10.3. Mutual Intent. Both parties participated in the drafting of the Agreement, and the language used in this Agreement is the language chosen by the Executive and the Company to express their mutual intent. Both the
Executive and the Company agree that in the event that any language, section, clause, phrase or word used in the Agreement is determined to be ambiguous, no presumption shall arise against or in favor of either party and that no rule of strict
construction shall be applied against either party with respect to such ambiguity. 
  
 10.4. Notices.
All notices and other communications hereunder shall be in writing and shall be given by hand-delivery to the other parties or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 

 
 
	 To the Company:
 	  	 Mr.
                                        
                                        
    
 
	  	  	 [Title]
 
	  	  	 One Crown Way
 
	  	  	 Philadelphia, PA 19154
 
	 
	 With a copy to Company’s counsel at:
 	  	 Stephen W. Skonieczny, Esq.
 
	  	  	 Dechert
 
	  	  	 30 Rockefeller Plaza
 
	  	  	 New York, New York 10112
 
	 
	 To the Executive:
 	  	 Mr. Michael Hoffman
 
	  	  	 One Crown Way
 
	  	  	 Philadelphia, PA 19154
 

 
  
 or to such other address as any party shall have furnished to the others in writing in
accordance herewith. Notices and communications shall be effective when actually received by the addressee. 
  
 10.5. Withholding. The Company may withhold from any amounts payable under this Agreement such federal, state or local income taxes to the extent the same required to be withheld pursuant to any applicable law or
regulation. 
  
 10.6. Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement. 
  
 10.7.
Captions. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. 

 
 12 

  
 10.8. Counterparts. This Agreement may be executed in
one or more counterparts each of which shall be deemed an original instrument, but all of which together shall constitute but one and the same Agreement. 
  
 10.9. Beneficiaries/References. The Executive shall be entitled to select (and change) a beneficiary or beneficiaries to receive any compensation or benefit payable
hereunder following the Executive’s death, and may change such election, in either case by giving the Company written notice thereof. In the event of the Executive’s death or a judicial determination of his incompetence, reference in this
Agreement to the Executive shall be deemed, where appropriate, to refer to his beneficiary(ies), estate or other legal representative(s). 
  
 10.10. Entire Agreement. This Agreement contains the entire agreement between the parties concerning the subject matter hereof and supersedes all prior agreements, understandings, discussions,
negotiations and undertakings, whether written or oral, between the parties with respect thereto. This Agreement shall only become effective upon the closing of the IPO and, notwithstanding anything to the contrary herein, if the closing of the IPO
does not occur, this Agreement shall be null and void ab initio and of no further legal force or effect. 
  
 10.11. Representations. 
  
 10.11.1. Option Awards. The Company
represents and warrants to the Executive that all shares issued pursuant to any equity award granted to the Executive by the Company, upon issuance to the Executive, will be duly authorized, fully paid and non-assessable. A sufficient number of
shares for each such equity award will be properly reserved. 
  
 10.11.2.
Authorization. The Company represents and warrants to the Executive that this Agreement will be authorized by all necessary action of the Company and will be the binding agreement of the Company, enforceable against it in accordance with the
terms thereof. The Company is not prevented from entering into or performing this Agreement by any law, order, rule or regulation, its certificate of incorporation, bylaws or any agreement to which it is a party. 
  
 10.11.3. Duties of the Employee The Executive represents and warrants that the performance by Executive of
the Executive’s duties and obligations under this Agreement will not violate any agreement between the Executive and any other person, firm, partnership, corporation or other organization. 
  

10.12. Survivorship. The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement or the
Executive’s Term of Employment hereunder for any reason to the extent necessary to the intended provision of such rights and the intended performance of such obligations. 

 
 13 

  
 IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s
hand and the Company has caused this Agreement to be executed in its name on its behalf, all as of the day and year first above written. 
  
 
	 CONSTAR INTERNATIONAL INC. 
 
	 
	 By:
 	 	 

	  	 	 Michael Hoffman
 

 

 
 14 

 CONSTAR INTERNATIONAL INC. 
  
 EXHIBIT A—GENERAL RELEASE 
  
 IN CONSIDERATION OF the payment of $10.00, and for
other good and valuable consideration, the receipt of which is hereby acknowledged, and in consideration of the terms and conditions contained in the Employment Agreement, dated as of
                , (the “Employment Agreement”) by and between
                 (the “Employee”) and Constar International Inc. (the “Company”), the Employee, on behalf of himself and his
heirs, executors, administrators, and assigns, releases and discharges the Company and its past present and future subsidiaries, divisions, affiliates and parents (including without limitation to the foregoing Crown Cork & Seal Company, Inc.),
and their respective current and former officers, directors, employees, agents, and/or owners, and their respective successors, and assigns and any other person or entity claimed to be jointly or severally liable with the Company or any of the
aforementioned persons or entities (the “Released Parties”) from any and all manner of actions and causes of action, suits, debts, dues, accounts, bonds, covenants, contracts, agreements, judgments, charges, claims, and demands whatsoever
(“Losses”) which the Employee and his heirs, executors, administrators, and assigns have, had, or may hereafter have, against the Released Parties or any of them arising out of or by reason of any cause, matter, or thing whatsoever from
the beginning of the world to the date hereof, including without limitation, any and all matters relating to the Employee’s employment by the Company and the cessation thereof, and any and all matters arising under any federal, state, or local
statute, rule, or regulation, or principle of contract law or common law, including but not limited to, the Family and Medical Leave Act of 1993, as amended, 29 U.S.C. §§ 2601 et seq., Title VII of the Civil
Rights Act of 1964, as amended, 42 U.S.C. §§ 2000e et seq., the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. §§ 621 et seq. (the “ADEA”),
the Americans with Disabilities Act of 1990, as amended, 42 U.S.C. §§ 12101 et seq., the Worker Adjustment and Retraining Notification Act of 1988, as amended, 29 U.S.C. §§ 2101 et
seq., the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. §§ 1001 et seq., the Pennsylvania Human Relations Act, as amended, 43 P.S. §§ 955 et. seq.,
and any other equivalent or similar federal, state, or local statute; provided, however, that the Employee does not release or discharge the Released Parties from any of the Company’s obligations to him under the Employment Agreement or Losses
arising under the ADEA which arise after the date on which the Employee executes this general release. It is understood that nothing in this general release is to be construed as an admission on behalf of the Released Parties of any wrongdoing with
respect to the Employee, any such wrongdoing being expressly denied. 
  
 The Employee represents and warrants that he
fully understands the terms of this general release, that he has been encouraged to seek, and has sought, the benefit of advice of legal counsel, and that he knowingly and voluntarily, of his own free will, without any duress, being fully informed,
and after due deliberation, accepts its terms and signs below as his own free act. Except as otherwise provided herein, the Employee understands that as a result of executing this general release, he will not have the right to assert that the
Company or any other of the Released Parties unlawfully terminated his employment or violated any of his rights in connection with his employment or otherwise. 

 CONSTAR INTERNATIONAL INC. 
  
 The Employee further represents and warrants that he has not filed, and will not initiate, or cause to be initiated on his behalf, any complaint, charge, claim, or proceeding against any of the Released Parties before any
federal, state, or local agency, court, or other body relating to any claims barred or released in this General Release thereof, and will not voluntarily participate in such a proceeding. However, nothing in this general release shall preclude or
prevent the Employee from filing a claim, which challenges the validity of this general release solely with respect to the Employee’s waiver of any Losses arising under the ADEA. Employee shall not accept any relief obtained on his behalf by
any government agency, private party, class, or otherwise with respect to any claims covered by this General Release. 
  
 The Employee may take twenty-one (21) days to consider whether to execute this general release. Upon the Employee’s execution of this general release, the Employee will have seven (7) days after such execution in which he may
revoke such execution. In the event of revocation, the Employee must present written notice of such revocation to             . If seven (7) days pass without receipt of such notice
of revocation, this general release shall become binding and effective on the eighth (8th) day after the execution hereof (the “Effective Date”). 
  
 The Parties shall initial each page of this Agreement 
  
 
	                                      
                                        
                                      
 
 	 	                                      
                                        
                                     
 
	 Execution Date
 	 	  

 
  
 
	 State of
                                
 	  	 }    
 	 	  	  	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  
	 County of
                            
 	  	 	 ss.:
 	  	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  

 
  
 On this      day of
             in the year 200     before me, the undersigned, personally appeared
            , personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument, and acknowledged to
me that he executed the same in his capacity as an individual, and that by his signature on the instrument he executed such instrument, and that such individual made such appearance before the undersigned. 
  
                                      
                                        
                                        
                           
 Notary Public

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