Document:

Prepared by R.R. Donnelley Financial -- Form of Newark Component Supply and Lease

 Exhibit 10.6 
  
 NEWARK PLASTIC COMPONENTS SUPPLY AND LEASE OF RELATED ASSETS AGREEMENT 
  
 THIS IS A NEWARK PLASTIC COMPONENTS SUPPLY AND LEASE OF RELATED ASSETS AGREEMENT (the “Agreement”), dated as of             
            , 2002, by and among Crown Cork & Seal Company (USA), Inc., a Delaware corporation and an indirect subsidiary of Crown (“Purchaser”) and Constar, Inc.,
a Pennsylvania corporation and a direct subsidiary of Constar (“Supplier”). 
  
 Background

  
 Supplier will supply directly to Purchaser or to the Crown Customer on Purchaser’s behalf and Purchaser
will purchase from Supplier on the terms and conditions set forth herein, Plastic Components presently manufactured at Supplier’s facility in Newark, Ohio (the “Newark Facility”). 
  
 Terms 
  
 NOW, THEREFORE, in consideration of the mutual covenants herein and intending to be legally bound hereby, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 1.1. Certain Definitions. Capitalized terms not defined in this Agreement shall have the meanings ascribed to them in the Corporate
Agreement, dated as of the date hereof, between Crown and Constar. As used in this Agreement, the following terms shall have the respective meanings set forth below: 
  
 1.1.1. “AAA” has the meaning set forth in Section 7.4. 
  
 1.1.2. “Affiliate” of any Person means any Person, directly or indirectly, controlling, controlled by or under common control with such
Person. 
  
 1.1.3. “Agreement” has the meaning set forth in the preamble to the
Agreement. 
  
 1.1.4. “Bankruptcy Event” means with respect to any party, as
applicable, (a) the making by such party of any assignment for the benefit of creditors of all or substantially all of its assets or the admission by such party in writing of inability to pay all or substantially all of its debts as they become due;
(b) the adjudication of such party as bankrupt or insolvent or the filing by such party of a petition or application to any tribunal for the appointment of a trustee or
 
 

 
receiver for such party or any substantial part of the assets of such party; or (c) the commencement of any voluntary or involuntary bankruptcy proceedings (and, with respect to involuntary
bankruptcy proceedings, the failure to be discharged within 60 days), reorganization proceedings or similar proceeding with respect to such party or the entry of an order appointing a trustee or receiver or approving a petition in any such
proceeding. 
  
 1.1.5. “Business Day” shall mean any day other than a Saturday, a
Sunday or a day on which banks in New York City are authorized or obligated by law or executive order to not open or remain closed. 
  
 1.1.6. “Constar” means Constar International Inc., a Delaware corporation. 
  
 1.1.7. “Control,” “controlled by” and “under common control with”, as applied to any Person, means the possession, directly or indirectly, of the
power to direct the vote of a majority of the votes that may be cast in the election of directors (or other Persons acting in similar capacities) of such Person or otherwise to direct or cause the direction of the management and policies of such
Person, whether through the ownership of voting securities or by contract or otherwise. 
  
 1.1.8.
“Crown Customer” has the meaning set forth in Section 4.1. 
  
 1.1.9. “Crown
Facilities” has the meaning set forth in Section 4.1. 
  
 1.1.10. “Crown”
means Crown Cork & Seal Company, Inc., a Pennsylvania corporation. 
  
 1.1.11.
“Employees” has the meaning set forth in Section 5.4. 
  
 1.1.12. “Force
Majeure Event” has the meaning set forth in Section 6.4. 
  
 1.1.13. “Initial
Term” has the meaning set forth in Section 6.1. 
  
 1.1.14. “Lease” has the
meaning set forth in Section 5.1. 
  
 1.1.15. “Newark Assets” means those assets set
forth in Schedule C. 
  
 1.1.16. “Newark Facility” has the meaning set forth
in the Background section of this Agreement. 
  
 1.1.17. “Person” means an
individual, a corporation, a partnership, an association, a governmental entity, a trust or other entity or organization. 
  
 1.1.18. “Plastic Components” means all existing types of plastic rings for combination closures, press-on bands and plastic closures manufactured at the Newark Facility as of the Initial Public Offering
Date, which are set forth, for the avoidance of doubt, on Schedule A hereto (the “Existing Plastic Components”). Plastic Components shall also include
 
 

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any other products identified and mutually agreed upon by Supplier and Purchaser after the Initial Public Offering Date from time to time (the “New Plastic Components”).

  
 1.1.19. “Production Request” has the meaning set forth in Section 2.1.

  
 1.1.20. “Purchaser” has the meaning set forth in the preamble to the Agreement.

  
 1.1.21. “Release Request” has the meaning set forth in Section 2.1.

  
 1.1.22. “Supplier” has the meaning set forth in the preamble to the Agreement.

  
 1.1.23. “Term” has the meaning set forth in Section 6.1. 

 
 1.1.24. “Transfer Date” has the meaning set forth in Section 5.1. 
  
 ARTICLE II 
  
 PURCHASE OF REQUIREMENTS 
  
 2.1. Purchase of Capacity. (a) Subject to the other
provisions of this Article II, Purchaser agrees to purchase from Supplier and Supplier agrees to sell to Purchaser an amount of Plastic Components equal to no less than 90% of the total capacity of the Newark Assets. 
  
 (b) At least 60 days prior to the beginning of each year, Purchaser shall provide Supplier with a non-binding forecast for
the Plastic Components that it will purchase from Supplier during such year, which shall represent a good faith estimate of Purchaser’s expected purchases for such year. On or before the 15th day of each month, Purchaser shall submit a firm order for production during the following month (a “Production Request”), which
shall not exceed the capacity of the Newark Assets, and a non-binding forecast for the following two months, which forecast shall represent a good faith estimate of Purchaser’s requirements for such two months. Purchaser shall be deemed to
purchase, and shall be responsible for payment to Supplier for, any Plastic Components manufactured by Supplier in response to a Production Request, regardless of whether Purchaser submits a Release Request for such Plastic Components. In addition,
to maximize utilization of the Newark Assets, Supplier may produce Plastic Components based upon Purchaser’s non-binding forecasts. If Purchaser provides its written consent to such production, Purchaser shall be deemed to purchase, and shall
be responsible for payment to Supplier for, any Plastic Components manufactured by Supplier in response to such forecast, regardless of whether Purchaser submits a Release Request for such Plastic Components. 
  
 (c) From time to time Purchaser may submit requests to release Plastic Components for shipment (“Release
Requests”) to Supplier. Upon receipt of a Release Request, 
 

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Supplier shall use its commercially reasonable efforts to satisfy the Release Request; provided, however, that in no event shall Purchaser be obligated to utilize production
equipment other than the Newark Assets, and Supplier is obligated to provide manning as required to meet Production Requests. In the event that the aggregate amount of Plastic Components requested for release during a month exceeds that month’s
Production Request, Supplier shall nevertheless use its commercially reasonable efforts to satisfy the Release Request; provided, however, that in no event shall Purchaser be obligated to utilize production equipment other than the
Newark Assets. With respect to Release Requests that (in the aggregate, if applicable) do not exceed the relevant month’s Production Request, Supplier will ship no less than [***] of the released Plastic Components to the Crown Customer or
Crown Facilities, as directed by Purchaser, OTIF (on time, in full). The measurement of OTIF shipments shall conform to historic practices of the Newark Facility. If Supplier is unable to satisfy a Release Request, Supplier shall promptly notify
Purchaser. After such notification, Purchaser may, at its option, direct Supplier to resequence utilization of the Newark Assets to satisfy the Release Request; provided, however, that Supplier shall be under no obligation to
resequence utilization of the Newark Assets if such resequencing would adversely effect Supplier’s other operations at the Newark Facility. Purchaser shall be deemed to purchase, and shall be responsible for payment to Supplier for, any Plastic
Components shipped by Supplier in response to a Release Request, regardless of whether the Crown Customer ultimately pays Purchaser for such Plastic Components. Supplier shall not be responsible for collecting payment from the Crown Customer for
Plastic Components manufactured and shipped hereunder. 
  
 (d) Consistent with historic practices at
the Newark Facility, Purchaser shall provide Supplier, at Supplier’s cost, with resin necessary to produce the Plastic Components. Supplier shall not be deemed to breach this Agreement as a result of, and shall have no liability to Purchaser
for, any failure to perform its obligations hereunder that results from the failure of Purchaser to provide Supplier with resin necessary to produce the Plastic Components. 
  
 (e) Notwithstanding the foregoing, Supplier shall not be required to manufacture and/or ship any specific Plastic Components if Supplier reasonably
determines that any such manufacture or shipment will result in a material violation of any applicable governmental laws or regulations. 
  
 ARTICLE III 
  
 PRICE 
  
 3.1. Pricing. (a) For Existing Plastic Components, Purchaser will pay to Supplier the prices set forth on Schedule A hereto for the relevant Plastic
Components purchased pursuant to this Agreement. 
 

	[***]
	Confidential treatment requested 
 

 

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 (b) For New Plastic Components, mutually agreeable pricing will
be established between Supplier and Purchaser on a case-by-case basis. Supplier shall have no obligation to supply, and Purchaser shall have no obligation to purchase, New Plastic Components for which pricing cannot be agreed upon and any such New
Plastic Components shall not be calculated in the requirements commitment set forth in Section 2.1(a). If pricing of New Plastic Components is agreed upon, such New Plastic Components shall be calculated in such requirements commitment.

  
 ARTICLE IV 
  
 DELIVERY 
  
 4.1. Delivery. All Plastic Components sold under this Agreement
shall be delivered at the designated customer specified on Schedule B hereto (the “Crown Customer”) or at one of Purchaser’s facilities specified on Schedule B hereto (the “Crown Facilities”).
Title and risk of loss or damages to all Plastic Components shall pass to Purchaser upon acceptance by the Crown Customer or Crown Facility. Purchaser shall pay for all freight and other costs associated with shipment of Plastic Components to the
location of delivery and any such costs incurred by Supplier shall be included on the invoice for the relevant Plastic Components. Supplier shall furnish the facilities and personnel for loading Plastic Components at the Newark Facility.

  
 4.2. Payment. Supplier shall provide invoices to Purchaser for Plastic Components and, if applicable,
shipping or other charges upon the earlier of (i) shipment of such Plastic Components pursuant to a Release Request or (ii) 90 days from the date of acceptance of the Production Request pursuant to which such Plastic Components were produced. All
invoices from Supplier to Purchaser for Plastic Components shall be paid by Purchaser (i) by the last Business Day of the month for invoices dated on or before the 14th day of any month or (ii) by the 15th day of the following month for invoices dated on or after the 15th
day of any month. 
  
 4.3. Security Documents. Purchaser agrees to take all such actions and execute all such
documents and instruments as are reasonably requested by Supplier to establish and protect Supplier’s first priority purchase money security interest in all Plastic Components directly or indirectly supplied to or on behalf of Purchaser as
security for Purchaser’s obligations to pay Supplier for Plastic Components supplied hereunder. 
  
 4.4.
Documents and Reporting. Each party agrees to execute and deliver to the other party in a timely fashion all such documents and reports as are reasonably requested by the other party with respect to forecasting and budgeting, production,
inventory, equipment maintenance, parts usage, and shipments, including Bills of Lading, routine correspondence with customers, releases, and all reports and supporting documents that were commonly provided prior to the Initial Public Offering Date.

  
 4.5. Packaging Materials. Pallets, topframes, and tier sheets shall be provided by Purchaser, and shall
remain the property of the Purchaser. Purchaser may supply such packaging materials directly, or may agree to reimburse Supplier for purchases made by Supplier at the
 
 

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written instruction of Purchaser. Supplier agrees to maintain and report inventory of all such packaging materials in use or on hand, and with respect to packaging materials at the Crown Customer
site, shall be responsible for customary practices of managing the prompt and complete return of packaging materials in good usable form from the Crown Customer, and for maintaining a perpetual inventory of packaging materials at the customer
location (which packaging materials shall be supplied at Purchaser’s cost). Supplier shall maintain packaging materials in such a way that the number of times materials are re-used is consistent with historical trends. Supplier shall provide at
least 60 days forecast to Purchaser of packaging requirements or surplus. 
  
 ARTICLE V 
  
 LEASE OF RELATED ASSETS 
  
 5.1. Lease and Removal of Newark Assets. The Newark Assets shall remain at the Newark Facility and Supplier shall, subject to the terms and conditions set forth in this Article V, lease the Newark Assets from
Purchaser for the Term (the “Lease”). Within 90 days after the last day of the Term, Purchaser shall remove, at its expense, and shall be solely responsible for removing, the Newark Assets from the Newark Facility (the
“Transfer Date”). Purchaser shall provide Supplier with written notice of the Transfer Date at least 60 Business Days prior to the Transfer Date. If the Newark Assets shall not be removed on or prior to Transfer Date, Purchaser
shall reimburse Supplier for all costs and expenses incurred by Supplier on account of maintaining and storing the Newark Assets at the Newark Facility as a result of such non-removal until Purchaser removes the Newark Assets. Notwithstanding the
preceding sentence or anything else in this Agreement to the contrary, Supplier shall have no responsibilities or obligations of any kind, including, without limitation, as to operation, storage, insurance or maintenance, with respect to the Newark
Assets after the Transfer Date. 
  
 5.2. Rent. Consideration for the lease of Newark Assets from Purchaser to
Supplier for the Term is incorporated in the prices for Existing Plastic Components included in Schedule A and will be included in the prices for any New Plastic Components. 
  
 5.3. Insurance. Supplier shall maintain adequate insurance with respect to the Newark Assets insuring against such risks customarily insured against in accordance
with Supplier’s practice until their removal from the Newark Facility by Purchaser in accordance with Section 5.1 or until 90 days after the Term, whichever is earlier. Supplier shall, upon Purchaser’s reasonable request, provide evidence
of insurance and appropriate loss payable endorsements in favor of Purchaser. 
  
 5.4. Employees.
Notwithstanding the provisions of the Non-Competition Agreement, dated as of the date hereof, between Crown and Constar, on the Transfer Date, Purchaser shall have the option to offer employment to those employees whose primary responsibilities
relate to the Newark Assets (the “Employees”). Regardless of whether Purchaser exercises such option, Purchaser shall pay, and shall indemnify the Supplier and its Affiliates for any costs related to,
 
 

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any severance payments payable to the Employees in connection with the termination of their employment with the Supplier or its Affiliates if (i) such termination occurs, or notice of such
termination is provided to such Employee, during the Term of this Agreement or within 120 days after the termination or expiration of this Agreement and (ii) such termination relates to or results from the loss of sales governed by this Agreement or
a reduction in the volume of PET Products sold under this Agreement. Supplier shall use its commercially reasonable efforts to re-deploy the Employees within Supplier’s workforce to reduce the amount payable pursuant to this Section 5.4.

  
 5.5. Maintenance and Improvements. During the Term, Supplier shall keep the Newark Assets in good
operating order, repair condition and appearance and in accordance with normal industry standards, normal wear and tear and impairments of value excepted. The Newark Assets shall be maintained by Supplier as directed by Purchaser and consistent with
Purchaser’s then-current procedures for preventative maintenance and operating procedures including weekly and annual preventative maintenance work. Consideration for the maintenance of Newark Assets by Supplier for the Term is incorporated in
the prices for Existing Plastic Components included in Schedule A and will be included in the prices for any New Plastic Components. Notwithstanding the foregoing, Purchaser, and not Supplier or any of its Affiliates, shall be obliged to
conduct, or cause to be conducted, mold refurbishments reasonably required to maintain the Newark Assets and shall be responsible for the cost of repairing or replacing any Newark Assets that are defective or malfunctioning (except to the extent
that such defects or malfunctions arise as a result of Supplier’s failure to maintain the Newark Assets in accordance with the first two sentences of this Section 5.5). Prior to the start of each calendar year, Supplier shall provide Purchaser
with an estimate of capital investments with respect to the Newark Assets for the next year. Neither Supplier nor any of its Affiliates shall make any capital expenditures with respect to the Newark Assets without the prior written consent of
Purchaser. Upon receipt of such consent, Supplier shall make, or cause to be made, such capital expenditures and shall invoice Purchaser for any expenses incurred in undertaking such capital expenditures. If Purchaser does not consent to, or agree
to reimburse Supplier for any such capital expenditures, neither Supplier nor any of its Affiliates shall have any obligation to make such capital expenditures and none of them shall be liable for any interruptions or deficiencies if the supply of
Plastic Components under this Agreement, any deterioration of the Newark Assets or any other liability, arising out of or resulting from the failure to make any such capital expenditure. The parties agree that capital expenditures subject to
approval and reimbursement by Purchaser shall not include costs associated with routine maintenance (other than mold refurbishments) covered by the first two sentences of this Section 5.5. 
  
 5.6. Warranties. During the Term, Purchaser assigns to Supplier, and Supplier may have the benefit of any and all manufacturers’ warranties, service agreements
and patent indemnities (copies of same to be provided to Supplier), if any, with respect to the Newark Assets, to the extent assignable by Purchaser, until they are removed by Purchaser. 
  
 5.7. No Interference. Purchaser covenants that it shall not grant or convey any interest that, if used or enjoyed in accordance with its terms, would interfere with
the use, enjoyment, or
 
 

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operation of the Newark Assets by Supplier, its Affiliates or their respective permitted successors, assigns or subtenants at any time prior to the removal of the Newark Assets by Purchaser;
provided, that Purchaser shall be permitted to grant a security interest in the Newark Assets to secure the indebtedness of Purchaser or any of its Affiliates. 
  
 5.8. Possession and Quiet Enjoyment. Purchaser covenants with Supplier that Supplier and its Affiliates will enjoy quiet possession of the Newark Assets and the
right to use the Newark Assets free from claims of persons in possession and third parties claiming rights thereto. 
  
 5.9. Access. Prior to the Transfer Date, representatives of Purchaser may, at their own expense, during normal business hours and upon reasonable notice, inspect the Newark Assets and have access to the Employees;
provided, that a representative of Supplier shall be present at all such times; and, provided, further, that no exercise of such inspection shall materially interfere with the normal operation of the Newark Assets or the
business of Supplier. 
  
 ARTICLE VI 
  
 TERM, DEFAULT AND OTHER PROVISIONS 
  
 6.1. Term. This
Agreement shall commence upon the Initial Public Offering Date and shall continue for a period of 2 years (such 2 year period, the “Initial Term”). The Initial Term may be extended for an additional 2 years upon mutual written
agreement between Supplier and Purchaser on the terms contained therein (the Initial Term, as so extended, the “Term”). 
  
 6.2. Events of Default. (a) The following shall be considered events of default and shall give rise to a right of Supplier to terminate this Agreement within 45 days of Supplier’s discovery of such event of
default: (i) Purchaser fails to make timely payments for invoiced Plastic Components, subject to a 10 day cure period after notice regarding such breach, (ii) Purchaser or Crown suffers a Bankruptcy Event, (iii) Purchaser materially breaches any
other applicable provision of this Agreement, subject to a 30-day cure period after notice regarding such breach or (iv) Purchaser or Crown experiences a change of Control such that Purchaser or Crown is controlled by a competitor of either Constar
or Crown. 
  
 (b) The following shall be considered events of default and shall give rise to a right
of Purchaser to terminate this Agreement within 45 days of Purchaser’s discovery of such event of default: (i) Supplier or Constar suffers a Bankruptcy Event, (ii) Supplier materially breaches any other applicable provision of this Agreement,
subject to a 30-day cure period after notice regarding such breach or (iii) Supplier or Constar experiences a change of Control such that Supplier or Constar is controlled by a competitor of either Constar or Crown. 
  
 (c) Each party shall provide the other party with prompt notice upon discovery of a default by the other party;
provided, that failure to give such notice shall not limit or restrict the ability of a party to terminate this Agreement subject to the cure periods provided in this Section 6.2. 
 

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 6.3. No Waiver. If the party not in default continues to make or accept
shipments, as the case may be, despite the other party’s default, such action shall not constitute a waiver of the default, or in any way affect the rights under this Agreement of the party not in default. A waiver by either party of any breach
of any provision shall not constitute a waiver of any other breach of such provision or of any other provision. 
  
 6.4. Force Majeure. Neither Supplier nor Purchaser shall be responsible for any failure or delay in performance due to causes beyond their respective control, including, without limitation, earthquake, fire, storm, flood,
freeze, labor disputes, transportation embargoes, acts of God or of any government and acts of war or terrorism (any of the foregoing, a “Force Majeure Event”) Any party, if affected by any such cause, may, upon written notice to
the other specifying the reasons therefor, reduce its obligations to the other by an amount not in excess of the quantity that it is unable to deliver or purchase due to such cause. In the event such a curtailment by either party continues in whole
or in part for a period of 5 continuous days, then, in the case of a Supplier Force Majeure Event, Purchaser may arrange for temporary supply of its requirements until Supplier can resume delivery of Plastic Components to Purchaser, and, in the case
of a Purchaser Force Majeure Event, Purchaser shall use its best efforts to sell to third parties those Plastic Components which would have been delivered to a Crown Facility or the Crown Customer on Purchaser’s behalf (in accordance with
Purchaser’s delivery schedule) in the absence of such curtailment. Notwithstanding anything to the contrary in this Agreement, this provision shall not apply to or otherwise excuse the failure to pay any uncontested costs or fees due under this
Agreement when due (including payment for Plastic Components produced in accordance with Section 2.1, regardless of whether Purchaser submits a Release Request for such Plastic Components). 
  
 6.5. Warranty; Limitation of Liability. (a) Supplier warrants that all Plastic Components sold to Purchaser (i) shall be free from defects in workmanship and
materials, except for any defects arising out of actions taken by or at the direction of Purchaser or materials provided by or on behalf of Purchaser and (ii) shall comply with the historical specifications for Existing Plastic Components and with
any agreed upon specifications for New Plastic Components. Supplier’s liability under this warranty, whether in contract or tort, shall be limited exclusively to the repayment of the purchase price of the defective Plastic Components. Supplier
will make no other warranties with respect to the Plastic Components. OTHER THAN THE ABOVE WARRANTY, SUPPLIER MAKES NO WARRANTY, WHETHER OF MERCHANTABILITY, FITNESS OR OTHERWISE, EXPRESS OR IMPLIED, IN FACT OR BY LAW, AND SUPPLIER SHALL HAVE NO
FURTHER OBLIGATION OR LIABILITY UNDER THE ABOVE WARRANTY OR WITH RESPECT TO THE PLASTIC COMPONENTS. SUBJECT TO THE FOLLOWING SENTENCE, SUPPLIER SHALL IN NO EVENT BE LIABLE FOR PUNITIVE, CONSEQUENTIAL OR INCIDENTAL DAMAGES. 
  
 (b) Purchaser agrees to waive all claims for shortages in the Plastic Components ordered and received hereunder unless
such claims are submitted in writing to Supplier within 30 days after receipt of the Plastic Components by the Crown Facility or receipt of notice from the Crown Customer of such shortage. 
 

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 (c) Subject to the above provisions, Purchaser shall not bring
any other action arising hereunder unless such action is brought within one year after the date such cause of action accrues. 
  
 (d) Supplier shall not be liable for, and Purchaser assumes responsibility for, all personal injury and property damage resulting from the handling, possession, use or resale of the Plastic Components
produced hereunder after such Plastic Components are delivered to the Crown Facility or the Crown Customer, whether the same is used alone or in combination with other substances, except to the extent any such personal injury or property damage
results from the willful misconduct of Supplier. 
  
 6.6. Confidentiality; Disclosures. 

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

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appropriate measures to preserve the confidentiality of such information at the expense of such party. 
 

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

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

 Attention: 
 Facsimile:

  
 if to Purchaser, to: 
  
 Crown Cork & Seal Company (USA), Inc. 
 One Crown Way 
 Philadelphia, PA 19154 
 Attention: 
 Facsimile: 
  
 or to such other addresses or telecopy numbers as may be specified by like notice to the other parties. 
  
 7.2. Independent Contractor. None of the parties is now, nor shall it be made by this Agreement, an agent or legal representative
of the other party for any purpose, and neither party has any right or authority to create any obligation, express or implied, on behalf of the other party, to accept any service of process upon it, or to receive any notices of any kind on its
behalf. All activities by Supplier hereunder shall be carried on by Supplier as an independent contractor and not as an agent for Purchaser. 
  
 7.3. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. 
  
 7.4. Dispute Resolution: Negotiation and Arbitration. 
 

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 7.4.1. The parties shall attempt to resolve any dispute arising
out of or relating to this Agreement promptly by negotiation in good faith between executives who have authority to settle the dispute. A party shall give the other party written notice of any dispute not resolved in the ordinary course of business.
Within ten Business Days after delivery of such notice, the party receiving notice shall submit to the other a written response thereto. The notice and the response shall include: (i) a statement of each party’s position(s) regarding the
matter(s) in dispute and a summary of arguments in support thereof, and (ii) the name and title of the executive who will represent that party and any other Person who will accompany that executive. 
  
 7.4.2. Within 10 Business Days after delivery of the notice, the designated executives shall meet at a mutually acceptable
time and place, and thereafter, as often as they reasonably deem necessary, to attempt to resolve the dispute. All reasonable requests for information made by one party to any other shall be honored in a timely fashion. All negotiations conducted
pursuant to this Section 7.4 (and any of the parties’ submissions in contemplation hereof) shall be deemed Confidential Information and shall be treated by the parties and their representatives as compromise and settlement negotiations under
the United States Federal Rules of Evidence and any similar state rules. 
  
 7.4.3. If the matter in
dispute has not been resolved within 30 days after the first meeting of the executives to attempt to resolve the dispute, either party may submit the dispute to binding arbitration to the Philadelphia, Pennsylvania office of the American Arbitration
Association (“AAA”) in accordance with the procedures set forth in the Commercial Arbitration Rules of the AAA. 
  
 7.4.4. The Commercial Arbitration Rules of the AAA, as modified or revised by the provisions of this Section 7.4, shall govern any arbitration proceeding hereunder. The arbitration shall be conducted
by three arbitrators selected pursuant to Rule 13 of the Commercial Arbitration Rules, and pre-hearing discovery shall be permitted if and only to the extent determined by the arbitrator to be necessary in order to effectuate resolution of the
matter in dispute. The arbitrator’s decision shall be rendered within 30 days of the conclusion of any hearing hereunder and the arbitrator’s judgment and award may be entered and enforced in any court of competent jurisdiction.

  
 7.4.5. Resolution of disputes under the procedures of this Section 7.4 shall be the sole and
exclusive means of resolving disputes arising out of or relating to this Agreement; provided, however, that nothing herein shall preclude the Parties from seeking in any court of competent jurisdiction temporary or interim injunctive
relief to the extent necessary to preserve the subject matter of the dispute pending resolution under this Section 7.4. 
  
 7.5. Consent to Jurisdiction. 
  
 Supplier and Purchaser hereby agree and
consent to be subject to the exclusive jurisdiction of the United States District Court for the Eastern District of Pennsylvania, and in the absence of such Federal jurisdiction, the parties consent to be subject to the exclusive jurisdiction of any
state court located in the City of Philadelphia and hereby waive the right to assert the lack
 
 

 13 

 
of personal or subject matter jurisdiction or improper venue in connection with any such suit, action or other proceeding. In furtherance of the foregoing, each of the parties (i) waives the
defense of inconvenient forum, (ii) agrees not to commence any suit, action or other proceeding arising out of this Agreement or any transactions contemplated hereby other than in any such court (other than the mandatory submission to arbitration in
accordance with Section 7.4), and (iii) agrees that a final judgment in any such suit, action or other proceeding shall be conclusive and may be enforced in other jurisdictions by suit or judgment or in any other manner provided by law.

  
 7.6. Entire Agreement. This Agreement constitutes the entire understanding of the parties hereto with
respect to the subject matter hereof and supersedes any prior agreement or understanding, written or oral, relating to the subject matter of this Agreement. 
  
 7.7. Successors/No Third Party Beneficiaries. This Agreement shall not be assignable, except that either party may, after giving notice to the other party, assign its rights and obligations
under this Agreement so long as the assignee agrees in writing to assume such party’s obligations hereunder; provided, that neither party shall assign its rights and obligations under this Agreement to a competitor of the other party
without the prior written consent of the other party. This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and permitted assigns. Nothing in this Agreement, express or implied,
is intended to or shall (a) confer on any person other than the parties hereto and their respective successors or permitted assigns any rights (including third party beneficiary rights), remedies, obligations or liabilities under or by reason of
this Agreement, or (b) constitute the parties hereto as partners or as participants in a joint venture. This Agreement shall not provide third parties with any remedy, claim, liability, reimbursement, cause of action or other right in excess of
those existing without reference to the terms of this Agreement. 
  
 7.8. Severability. If any term or
provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be held invalid or unenforceable by a court of competent jurisdiction, the remainder of this Agreement or the application of any such term or
provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by
law. If any of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, scope, activity or subject, it shall be construed by limiting and reducing it, so as to be valid and enforceable to the
extent compatible with the applicable law or the determination by a court of competent jurisdiction. 
  
 7.9.
Counterparts. This Agreement and any amendments hereto may be executed in any number of counterparts, each of which shall be deemed an original instrument, but all of which together shall constitute but one and the same agreement. Delivery of
an executed counterpart of a signature page to this Agreement by facsimile shall be as effective as delivery of a manually executed counterpart of this Agreement. 
 

 14 

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

 15 

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

	  	 	 Name:
 Title:
 
	 
	 CROWN CORK & SEAL
 COMPANY (USA), INC.
 
	 
	 By:
 	 	  
	 	
	

	  	 	 Name:
 Title:
 

 
 

 16 

  
 Schedule A 
  
 Existing Plastic Components and Prices 
  
 [***] 
  
 

	[***] Confidential
	treatment requested 
 

 

  
 Schedule B 
  
 Crown Customer and Facilities 
  
 [***]

  
 

	[***] Confidential
	treatment requested 
 

 

  
 Schedule C 
  
 Newark Assets 
  
 [***] 

 
 

	[***] Confidential
	treatment requestedPrepared by R.R. Donnelley Financial -- Form of Research & Development Agreement

 Exhibit 10.8 
  
 RESEARCH AND DEVELOPMENT AGREEMENT 
  
 This RESEARCH AND
DEVELOPMENT AGREEMENT (this “Agreement”) is entered into as of             
                , 2002 between CarnaudMetalbox plc, a public limited company formed under the laws of England and Wales (“Carnaud”), Crown
Cork & Seal Technologies Corporation (“Crown Technologies” and, collectively with Carnaud, the “Crown Entities”) and Constar International Inc., a Delaware corporation (“Constar”). 

 
 BACKGROUND 
  
 A.    The Crown Entities currently provide certain research and development services to Constar. 
  
 B.    Crown Cork & Seal Company, Inc. (“Crown”) and Constar are contemplating that an initial public offering will be made of a portion of the capital stock of
Constar (the “Initial Public Offering”), resulting in partial public ownership of Constar, and Crown and Constar both desire for the Crown Entities to continue to provide certain services to Constar following the Initial Public
Offering. 
  
 C.    The Crown Entities and Constar desire to enter into this Agreement to set
forth the roles and responsibilities with regard to research and development services to be provided by the Crown Entities to Constar following the Initial Public Offering. 
  
 TERMS 
  
 NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Crown Entities and Constar, for themselves and their successors and assigns, and intending to be legally bound hereby, hereby agree as follows: 

 
 1.    Definitions.    Capitalized terms not defined in this Agreement shall have
the meanings ascribed to them in the Corporate Agreement, dated as of the date hereof, between Crown and Constar. As used in this Agreement, the following terms shall have the respective meanings set forth below: 
  
 1.1.    “AAA” shall have the meaning set forth in Section 13.5. 

 
 1.2.    “Additional Services” shall have the meaning set forth in Section
2.4 below. 
  
 1.3.    “Benefits Allocation Agreement” shall mean the Benefits
Allocation Agreement, dated as of the date hereof, between Crown and Constar. 

  
 1.4.    “Commitment
Percentage” shall have the meaning set forth in Section 2.1 below. 
  
 1.5.    “Commitment Period” shall have the meaning set forth in Section 2.1 below. 
  
 1.6.    “Confidential Information” shall have the meaning set forth in Section 8 below. 
  
 1.7.    “Costs” shall have the meaning set forth in Section 3.1 below. 
  
 1.8.    “Developed Intellectual Property” shall have the meaning set forth in Section
6.1 below. 
  
 1.9.    “Force Majeure Event” shall have the
meaning set forth in Section 13.2 below. 
  
 1.10.    “Key Carnaud
Individuals” shall mean the individuals specified as such on Schedule A and/or such other individuals that are designated as Key Carnaud Individuals by the parties pursuant to Section 2 from time to time. 
  
 1.11.    “Key Crown Individuals” shall mean the individuals specified as such on
Schedule A and/or such other individuals that are designated as Key Crown Individuals by the parties pursuant to Section 2 from time to time. 
  
 1.12.    “Key Individuals” shall mean the Key Crown Individuals, the Key Carnaud Individuals and the Key Transferred
Individuals and/or such other individuals that are designated as Key Individuals by the parties pursuant to Section 2 from time to time. 
  
 1.13.    “Key Transferred Individuals” shall mean the individuals specified as such on Schedule A and/or such other individuals that are designated as Key
Transferred Individuals by the parties pursuant to Section 2 from time to time. 
  
 1.14.    “Key Individual Fees” shall have the meaning set forth in Section 2.1 below. 
  
 1.15.    “Key Individual Services” shall mean the reasonable services, consistent with past practice of the Crown Entities with respect to similar projects,
performed for Constar by Key Individuals in accordance with and subject to this Agreement. 
  
 1.16.    “Non-Dedicated Equipment” shall have the meaning set forth in Section 2.3 below. 
  
 1.17.    “Proprietary Rights” shall mean any intellectual property and other proprietary rights, including, without limitation, any patents, patent applications,
industrial design rights, copyrights (and any registration or applications therefor), database rights, trade secrets, all other rights in and to any inventions, discoveries, processes, formulae, technology, works of authorship and any writings,
diagrams, computer programs, compilations and pictorial representations and other works (whether or not copyrightable) relating thereto. 

  
 1.18.    “R&D Fees”
shall mean Key Individual Fees and any fees payable for Additional Services. 
  
 1.19.    “R&D Services” shall mean Additional Services and Key Individual Services. 
  
 1.20.    “Term” shall have the meaning set forth in Section 5 below. 
  
 2.    Services. 
  
 2.1.    Key Individuals.    During the Term, and during the Commitment Period for each Key Individual set forth on Schedule A (the “Commitment Period”), the
applicable Crown Entity under whose name such Key Individual is listed on Schedule A shall make such Key Individual available to provide such support and assistance to Constar as is consistent with the skills and experience of such Key
Individual, for the applicable percentage of the Key Individual’s working hours per month that is indicated on, and modified in accordance with the terms set forth on, Schedule A (the “Commitment Percentage”). Constar
shall have the right to approve the activities of Key Carnaud Individuals and the Key Crown Individuals while providing Key Individual Services in a manner consistent with the skills and experience of such Key Individuals and shall define and
approve the scope of Key Individual Services provided by Key Individuals pursuant to this Agreement. In consideration for such access to each Key Individual, Constar agrees to pay the applicable Crown entity under whose name such Key Individual is
listed on Schedule A[***]. The Key Individuals shall, subject to the terms of this Agreement and the Benefits Allocation Agreement, at all times remain employees of the applicable Crown Entity, or one of its Affiliates, and shall remain
subject to the applicable Crown Entity’s policies applicable to its employees. The Crown Entities’ obligation under this Agreement to make a given Key Individual available to Constar and the Constar Entities’ obligation to pay Key
Individual Fees shall continue for the duration of such Key Individual’s Commitment Period, except that in no event shall such obligations continue beyond the Key Individual’s employment with the applicable Crown Entity. In the event that
a Key Individual ceases to be an employee of the applicable Crown Entity for any reason during the Term other than by taking up employment with Constar, the applicable Crown Entity shall make commercially reasonable efforts to find a qualified
replacement, whom the applicable Crown Entity may then, with Constar’s prior written consent designate as a Key Individual for purposes of this Agreement, to be treated as if such individual were the replaced Key Individual under the terms of
this Agreement; provided, that the applicable Crown Entity shall not be deemed to be in breach of this Agreement (a) if the applicable Crown Entity is unable to hire a qualified replacement for any reason or (b) as a result of any delay of
whatever duration in the hiring of a qualified replacement. In the event that Constar does not consent to a replacement being designated as a Key Individual, neither the applicable Crown Entity nor any of its Affiliates shall be obligated to
provide, or otherwise arrange for the provision of, the Key Individual Services that were previously provided under this Agreement by the Key Individual whose employment with the applicable Crown Entity has terminated and the applicable Crown Entity
shall not be deemed to be in breach of this 
 

	[***]    Confidential
	treatment requested 
 

 
Agreement. In the event that a Key Individual ceases to be an employee of the applicable Crown Entity for any reason, the Commitment Period for such Key Individual shall end; provided,
that if such Key Individual is replaced pursuant to this Section 2.1, the replacement Key Individual shall assume the balance of the replaced Key Individual’s Commitment Period. 
  
 2.2.    Activity Reports.    Within 30 days after the end of each calendar month during the Term, the
applicable Crown Entity shall provide Constar with monthly reports (based on, and in accordance with, the applicable Crown Entity’s then existing reporting system) on the availability during such month of Key Individuals to provide Key
Individual Services and all Key Individual Services actually provided under this Agreement. In connection with such monthly reports, Key Individuals shall keep a log setting forth the time each such Key Individual worked in performing the Key
Individual Services under this Agreement which shall be supported by weekly time allocation reports with details to be mutually agreed, reviewed by the Constar Vice President of Research and Development or his designee. Any charges above the
applicable Commitment Percentage of any Key Individual must be approved by the Constar Vice President of Research and Development or his designee in advance. The applicable Crown Entity shall from time to time provide Constar with meeting records,
technical records and project review presentations relating to the Key Individual Services provided in connection with Constar projects as reasonably appropriate and in accordance with past practices and in accordance with such reasonable protocols
and procedures as the Parties shall mutually agree. So long as the Crown Entities make Key Individuals available to Constar in accordance with Section 2.1, Constar shall pay the full Key Individual Fees regardless of the actual time spent on Key
Individual Services during any month. Constar shall from time to time provide the applicable Crown Entity with meeting records and technical records relating to Constar’s services to Crown as reasonably appropriate and in accordance with past
practices and in accordance with such reasonable protocols and procedures as the parties shall mutually agree. 
  
 2.3.    Resources. 
  
 (a)    During
the Term, Crown shall have no right to use and no right to access the Constar owned equipment for any other purpose than the research and development services rendered under this agreement for Constar. However, when mutually agreed, Constar will use
commercially reasonable efforts to provide Crown with R&D services at the same standard billing rate and other terms, including, without limitation, warranty and indemnification, provided in this Agreement as used by Crown for Additional
Services to Constar. 
  
 (b)    During the Term, the Crown Entities shall make
available to the Key Individuals, the non-dedicated equipment set forth on Schedule B (the “Non-Dedicated Equipment”) to the extent necessary for performance of the Key Individual Services on a reasonable basis during normal
business hours or such hours as the parties shall mutually agree, and in accordance with such reasonable protocols and procedures as the parties shall mutually agree from time to time; provided, that the Crown Entities shall not be obligated
to make Non-Dedicated Equipment available for Key Individual Services to the extent that such Non-Dedicated Equipment is reasonably required for other activities of the Crown Entities or their
 

 
Affiliates. Nothing in this Agreement shall require the Crown Entities to develop or acquire any facilities or equipment other than as exists as of the Initial Public Offering Date. In lieu of
the then existing Non-Dedicated Equipment, the applicable Crown Entity may, in its sole discretion, from time to time make available to the Key Individuals equivalent alternative equipment, which equipment shall be deemed to be Non-Dedicated
Equipment. 
  
 (c)    The Crown Entities shall permit employees of Constar to
visit the facilities where Key Individual Services are performed. Any such visits shall be reasonable in scope and duration and shall be conducted during normal business hours. 
  
 (d)    In consideration for the R&D Fees provided herein, Carnaud agrees to allow Constar to store and use the equipment identified
on Schedule C in Carnaud’s Wantage facility, consistent with historical practices in Wantage, until the date which is 3 months from the Initial Public Offering Date or to charge a reasonable fee to be mutually agreed for an extended
period of storage. 
  
 2.4.    Additional
Services.    The Crown Entities will use commercially reasonable efforts to provide Constar with (a) research and development services other than the Key Individual Services and (b) Key Individual Services in excess of a Key
Individual’s Commitment Percentage during any month (collectively, “Additional Services”). Such Additional Services shall be provided at the Crown Entities’ standard billing rate [***], prorated for the amount of time
spent providing Additional Services. In the event that Constar receives Key Individual Services from a Key Individual that exceed such Key Individual’s Commitment Percentage during a month, such excess Key Individual Services shall be
considered Additional Services. 
  
 2.5.    [***] 
  
 2.6.    Employees.    Notwithstanding the provisions of the Non-Competition
Agreement between Crown and Constar, Constar shall have the option [***] as indicated on Schedule A. After the Initial Public Offering Date, and on 45 days notice, Constar and the Crown Entities can mutually agree to modify the Commitment
Percentage or the Commitment Period, or Constar can [***]. Beginning 90 days after the Initial Public Offering Date, Constar may, at its option, [***]. Crown agrees to extend the Commitment Period with regard to [***] upon Constar’s request at
terms to be mutually agreed. Constar shall inform the Crown Entities of its intention [***]. 
 
[***]    Confidential treatment requested 

  
 3.    Payment for Costs. 
  
 3.1.    Constar shall reimburse the Crown Entities for all third party costs that the Crown Entities
incur in connection with the performance of the R&D Services and for which Crown has obtained written prior approval from Constar (the “Costs”), including, by way of example without limitation, equipment repair and maintenance,
materials costs, subcontractor costs, and reasonable travel and accommodation expenses. Without limiting the foregoing Constar shall reimburse the applicable Crown Entity for any and all costs associated with repair of equipment that is damaged,
becomes inoperable, or otherwise malfunctions specifically because of the use of such equipment in performing the R&D Services. 
  
 4.    Invoicing and Payment. 
  
 4.1.    The Crown Entities shall present invoices for R&D Fees and Costs to Constar on a monthly basis. All R&D Fees and Costs shall be due within thirty (30) days of receipt of an invoice therefor.

  
 4.2.    The Crown Entities shall keep reasonably accurate and timely books
and records relating to the R&D Fees and Costs in accordance with the Crown Entities’ standard record-keeping procedures and which shall be supported by purchase approval documents and weekly timekeeping reports available to the Constar
Vice President of Research and Development or his designate, and shall maintain such books and records until one year after the termination or expiration of this Agreement. Constar shall have the right, during the Term, at Constar’s own
expense, to audit the Crown Entities’ books and records for the purpose of verifying the R&D Fees and Costs. Such audits shall be made not more than once per year, on not less than 15 days’ written notice, during regular business hours
and by independent auditors selected by Constar and acceptable to the Crown Entities, such acceptance not to be unreasonably withheld, conditioned or delayed. In the event such audit reveals any inaccuracies in the R&D Fees and Costs reported by
the Crown Entities, the parties shall take action promptly to correct such inaccuracies, including, without limitation, the payment or refund, as the case may be, of R&D Fees and Costs to the extent that the amount actually paid by Constar is
more or less than the amount accurately due. 
  
 4.3.    All sums referenced in
this Agreement are expressed exclusive of VAT or other sales tax, which shall be paid by Constar at the time and manner prescribed by law. 
  
 5.    Term. 
  
 5.1.    The
term of this Agreement shall begin on the Initial Public Offering Date and, unless terminated as provided for herein, shall continue until December 31, 2003 (the “Term”). The Term of this Agreement can be extended beyond this date,
if mutually agreed by Constar and the Crown Entities. 
  
 5.2.    The following
shall be considered events of default and shall give rise to a right of either Crown Entity to terminate this Agreement: (i) Constar fails to make timely payments for
 

 
invoiced R&D Fees and Costs, subject to a 10 day cure period after notice regarding such breach, (ii) Constar suffers a Bankruptcy Event, (iii) Constar materially breaches any other
applicable provision of this Agreement, subject to a 30-day cure period after notice regarding such breach, or (iv) Constar experiences a change of Control such that Constar is controlled by a competitor of Crown or Constar. 
  
 5.3.    The following shall be considered events of default and shall give rise to a right of Constar
to terminate this Agreement: (i) either Crown Entity or Crown suffers a Bankruptcy Event or (ii) either Crown Entity materially breaches any other applicable provision of this Agreement, subject to a 30-day cure period after notice regarding such
breach (iii) either Crown Entity or Crown experiences a change of Control such that either Crown Entity or Crown is controlled by a competitor of Constar or Crown. 
  
 6.    Intellectual Property. 
  
 6.1.    As between the Crown Entities and Constar, Constar shall own all right, title and interest in and to any Proprietary Rights that are developed, generated or created in the
performance of the R&D Services (the “Developed Intellectual Property”). Notwithstanding anything to the contrary in this Agreement, Developed Intellectual Property shall not include any Proprietary Rights that either of the
Crown Entities hold or own prior to, or as a result of activities other than, performance of the R&D Services, and as between the Crown Entities and Constar, the Crown Entities own and at all times shall own all right, title and interest in and
to such Proprietary Rights and to any improvements or modifications of such Proprietary Rights. The Crown Entities hereby irrevocably and unconditionally assign and transfer to Constar all rights of every kind, nature or description, whether now
known or hereafter devised, that the Crown Entities may have in or to Developed Intellectual Property. The Crown Entities shall, at Constar’s request, obtain, execute and deliver such other instruments and documents, in form and substance
reasonably satisfactory to Constar, as may be necessary to further evidence, perfect, maintain and effectuate the rights granted to Constar hereunder, including without limitation causing the Key Individuals and/or any other inventors to execute and
deliver such assignments and inventions disclosures as may be necessary to transfer the Developed Intellectual Property to Constar. In addition, at Constar’s request and expense, Crown shall provide reasonable cooperation to Constar in the
event that Constar elects at its discretion to file and prosecute any patent applications as part of the Developed Intellectual Property. 
  
 6.2.    For Developed Intellectual Property, Constar will bear all patent filing fees, renewal fees, and external legal fees. For Developed Intellectual Property, the Crown Entities
will charge as Additional Services any labor costs incurred by Crown Entities personnel in the preparation and filing for registered patent and trademark protection. 
  
 7.    Warranty; Limitation of Liability. 
  
 7.1.    The Crown Entities warrant that the R&D Services shall be performed in a workmanlike manner. In the case of any work which is not in compliance with this warranty that
is brought to its attention within a commercially reasonable time, but no more than 90 days, after the work is performed, the Crown Entities agree (i) to refund to Constar any charges for services
 

 
or materials pertaining to such work or (ii) to re-perform the work. OTHER THAN THE ABOVE WARRANTY, THE CROWN ENTITIES MAKE NO WARRANTY, WHETHER OF MERCHANTABILITY, FITNESS OR OTHERWISE, EXPRESS
OR IMPLIED, IN FACT OR BY LAW, AND THE CROWN ENTITIES SHALL HAVE NO FURTHER OBLIGATION OR LIABILITY UNDER THE ABOVE WARRANTY OR WITH RESPECT TO THE R&D SERVICES. THE CROWN ENTITIES SHALL IN NO EVENT BE LIABLE FOR PUNITIVE, CONSEQUENTIAL OR
INCIDENTAL DAMAGES. 
  
 7.2.    Subject to the above provisions, Constar shall
not bring any other action arising hereunder unless such action is brought within one year after the date such cause of action accrues. 
  
 7.3.    The Crown Entities shall not be liable for, and Constar assumes responsibility for, all personal injury and property damage resulting from the provision of R&D Services
hereunder, except to the extent any such personal injury or property damage results from the willful misconduct of the Crown Entities. 
  
 8.    Confidentiality; Disclosures. 
  
 8.1.    Confidentiality.    Each party agrees to maintain (a) all information, whether in written, oral, electronic or other form, necessary for or utilized or received by such party
pursuant to any terms of this Agreement, as the case may be, including, without limitation, prices, payment terms, technical knowledge, know-how, material, manufacturing, Proprietary Rights, tooling and equipment specifications and other information
necessary to carry out the terms of this Agreement and any proprietary or confidential inventions, discoveries, processes, formulae or technology developed, generated or created in the performance of the R&D Services, as the case may be (the
“Confidential Information”), as secret and confidential and (b) not to disclose the Confidential Information to any third person or party (except for employees, counsel, contractors, customers, consultants or vendors who have a need
to know and are informed of the confidential nature of such information by the disclosing party). Each party shall accept responsibility and be liable for a violation of the terms of this Section 8 by any third person with respect to Confidential
Information disclosed to the third person by such party. The parties will use the same measures to maintain the confidentiality of the Confidential Information of any other party in its possession or control that it uses to maintain the
confidentiality of its own Confidential Information of similar type and importance.  Notwithstanding the foregoing, any party or their Affiliates may describe this Agreement in, and include this Agreement with, filings with the U.S.
Securities and Exchange Commission and any related prospectuses, including such filings or prospectuses in connection with any offering of securities. Confidential Information will not include information that (i) is in or enters the public domain
without breach of this Agreement, or (ii) the receiving party lawfully receives from a third party without restriction on disclosure and, to the receiving party’s knowledge, without breach of a nondisclosure obligation. 

  
 8.2.    Disclosure to Governmental
Agency.    Notwithstanding the foregoing, each party shall be permitted to disclose the Confidential Information and/or any portion thereof (i) to a governmental agency or authority as required in response to a subpoena
therefor, (ii) in connection with formal requests for discovery under applicable rules of civil procedure in a legal action before a court of competent jurisdiction to which such party is a party and (iii) as otherwise required by law;
provided, however, that, in any such case, each party shall notify the other party as early as reasonably practicable prior to disclosure to allow such party to take appropriate measures to preserve the confidentiality of such
information at the expense of such party. 
  
 8.3.    Ownership of
Information.    All Confidential Information supplied or developed by either party will be and remain the sole and exclusive property of the party who supplied or developed it. Nothing in this Section 8.3 shall derogate
Constar’s ownership rights in Developed Intellectual Property as provided in Section 6. 
  
 8.4.    Return of Confidential Information.    Upon the written request of a party which has disclosed information covered by this Section 8 in written, printed or other tangible form,
all such readily available information, all copies thereof, including samples or materials, and all notes or other materials derived from such information shall be returned to the party which disclosed such information. 
  
 9.    Independent Contractors.    None of the parties is now, nor shall it be made by this
Agreement, an agent or legal representative of any other party for any purpose, and no party has any right or authority to create any obligation, express or implied, on behalf of any other party, to accept any service of process upon it, or to
receive any notices of any kind on its behalf. All activities by the Crown Entities hereunder shall be carried on by the Crown Entities as independent contractors and not as agents for Constar. 
  

10.    Security.    Crown will provide commercially reasonable physical protection and shall put in place commercially
reasonable procedures to restrict access by unauthorized persons to the Constar work area, documents, work product, laboratory and equipment environment, and to all forms of access to computerized information by unauthorized persons. Crown shall not
be responsible or liable for any breach of security that arises out of conduct by Constar’s employees, counsel, contractors, consultants or vendors. Access to Constar restricted areas and sources of information must be made only upon
authorization by Constar’s Vice President of Research and Development (or a designee) for any third person or party who is not an employee, counsel, contractor, consultant or vendor of Constar with a project-related need to such access and who
has not executed a confidentiality agreement which conforms to the requirements of Section 8 above concerning confidentiality. Access to Crown Entity restricted areas and sources of information must be made only upon authorization by Crown’s
Executive Vice President of Research and Development (or a designee) for any third person or party who is not an employee, counsel, contractor, consultant or vendor of Crown with a project-related need to such access and who has not executed a
confidentiality agreement which conforms to the requirements of section 8 above concerning confidentiality. Constar will bear the one-time costs of modifications, and, if
 

 
needed, removal, to conform to this requirement at Wantage and Alsip subject to Constar’s prior approval. 
  
 11.    Other Development Activities.  Constar acknowledges that the Crown Entities currently undertake, and may undertake in the future, various research and
development activities for other businesses. Subject to Sections 6 and 9, nothing in this Agreement shall be construed to prohibit the Crown Entities from continuing to undertake any such activities; provided, that nothing in this Section 11 shall
relieve Crown of its obligations under the Non-Competition Agreement, dated as of the date hereof, between Crown and Constar. 
  
 12.    Indemnification.  With respect to R&D Services, Constar shall defend, indemnify and hold the Crown Entities and their Affiliates and their respective officers, directors, employees,
successors and permitted assigns harmless against any and all liability, damage, loss, cost or expense arising out of (i) the provision of R&D Services or any products liability arising therefrom (except any liability directly related to and
directly caused by the gross negligence or willful misconduct of the Crown Entities in providing such R&D Services) and (ii) all claims, suits or actions for bodily injuries suffered in connection with the provision of the R&D Services and
arising out of Constar’s breach of this Agreement, negligence or misconduct. Furthermore, Constar shall indemnify, defend and hold the Crown Entities and their Affiliates and their respective officers, directors, employees, successors and
permitted assigns harmless against all damages, claims, judgments, decrees, costs, expenses and demands for unfair competition or infringement of any United States or foreign trademark or copyright as a direct result of the provision of R&D
Services conforming to the specifications required by Constar or the failure of the provision of such R&D Services to comply with any federal, state, local or other law or regulation. The Crown Entities shall not settle any claim for which it is
entitled to indemnification hereunder without the written consent of Purchaser, which shall not be unreasonably withheld. 
  
 13.    Miscellaneous. 
  
 13.1.    Successors/No
Third Party Beneficiaries.  This Agreement shall not be assignable, except that a Crown Entity may, after giving notice to Constar, assign its rights and obligations under this Agreement; provided, that a Crown Entity shall not
assign its rights and obligations under this Agreement to a competitor of Constar in the PET preform and container industry without the prior written consent of Constar. This Agreement shall be binding upon, and shall inure to the benefit of, the
parties hereto and their respective successors and permitted assigns. Nothing in this Agreement, express or implied, is intended to or shall (a) confer on any person other than the parties hereto and their respective successors or permitted assigns
any rights (including third party beneficiary rights), remedies, obligations or liabilities under or by reason of this Agreement, or (b) constitute the parties hereto as partners or as participants in a joint venture. This Agreement shall not
provide third parties with any remedy, claim, liability, 

 reimbursement, cause of action or other right in excess of those existing without reference to the terms of this Agreement. 

 
 13.2.    Force Majeure.  Neither Supplier nor Purchaser shall be responsible for any
failure or delay in performance due to causes beyond their respective control, including, without limitation, earthquake, fire, storm, flood, freeze, labor disputes, transportation embargoes, acts of God or of any government and acts of war or
terrorism (any of the foregoing, a “Force Majeure Event”). Any party, if affected by any such cause, may, upon written notice to the other parties specifying the reasons therefor, reduce its obligations to the other to the extent it
is necessarily prevented, hindered or delayed as a result of the Force Majeure Event. Notwithstanding anything to the contrary in this Agreement, this provision shall not apply to or otherwise excuse the failure to pay any uncontested R&D Fees
or Costs due under this Agreement when due. 
  
 13.3.    Notices.  All notices
and other communications required or permitted hereunder shall be in writing, shall be deemed duly given upon actual receipt, and shall be delivered (a) in person, (b) by registered or certified mail, postage prepaid, return receipt requested or (c)
by facsimile or other generally accepted means of electronic transmission (provided that a copy of any notice delivered pursuant to this clause (c) shall also be sent pursuant to clause (b)), addressed as follows: 
  
 if to Carnaud, to: 
  
 CarnaudMetalbox plc 
 Downsview Road

 Wantage 
 Oxfordshire
OX12 9 BP 
 Attention: 
 Facsimile: 44.1235.402578 
  
 if to Crown Technologies, to: 
  
 Crown Cork & Seal Technologies Corporation 
 11535 S. Central Avenue 
 Alsip, IL 60482-2523 
 Attention: 
 Facsimile: 

 
 if to either Crown Entity, with a copy to: 
  
 Crown Cork & Seal Company, Inc. 
 One
Crown Way 
 Philadelphia, PA 19154 
 Attention: 
 Facsimile: 

  
 if to Constar, to: 
  
 Constar International Inc. 
 One Crown Way 
 Philadelphia, PA 19154-4599 
 Attention: Chief Financial Officer 
 Facsimile: 
  
 or to such other addresses or telecopy numbers as may be specified by like notice to the other parties. 
  
 13.4.    Governing Law.  This Agreement shall be governed by and construed in accordance with the
laws of the Commonwealth of Pennsylvania. 
  
 13.5.    Dispute
Resolution:  Negotiation and Arbitration. 
  
     (a)  The parties shall
attempt to resolve any dispute arising out of or relating to this Agreement promptly by negotiation in good faith between executives who have authority to settle the dispute. A party shall give the other parties written notice of any dispute not
resolved in the ordinary course of business. Within ten Business Days after delivery of such notice, the party receiving notice shall submit to the others a written response thereto. The notice and the response shall include: (i) a statement of each
party’s position(s) regarding the matter(s) in dispute and a summary of arguments in support thereof, and (ii) the name and title of the executive who will represent that party and any other Person who will accompany that executive.

  
     (b)  Within 10 Business Days after delivery of the notice, the designated
executives shall meet at a mutually acceptable time and place, and thereafter, as often as they reasonably deem necessary, to attempt to resolve the dispute. All reasonable requests for information made by one party to any other shall be honored in
a timely fashion. All negotiations conducted pursuant to this Section 13.5 (and any of the parties’ submissions in contemplation hereof) shall be deemed Confidential Information and shall be treated by the parties and their representatives as
compromise and settlement negotiations under the United States Federal Rules of Evidence and any similar state rules. 
  
     (c)  If the matter in dispute has not been resolved within 30 days after the first meeting of the executives to attempt to resolve the dispute, either party may submit the dispute to binding
arbitration to the Philadelphia, Pennsylvania office of the American Arbitration Association (“AAA”) in accordance with the procedures set forth in the Commercial Arbitration Rules of the AAA. 
  
     (d)  The Commercial Arbitration Rules of the AAA, as modified or revised by the provisions of this
Section 13.5, shall govern any arbitration proceeding hereunder. The arbitration shall be conducted by three arbitrators selected pursuant to Rule 13 of the Commercial Arbitration Rules, and pre-hearing discovery shall be permitted if and only to
the
 

 extent determined by the arbitrator to be necessary in order to effectuate resolution of the matter in dispute. The arbitrator’s decision
shall be rendered within 30 days of the conclusion of any hearing hereunder and the arbitrator’s judgment and award may be entered and enforced in any court of competent jurisdiction. 
  
     (e)  Resolution of disputes under the procedures of this Section 13.5 shall be the sole and exclusive means of resolving disputes arising
out of or relating to this Agreement; provided, however, that nothing herein shall preclude the Parties from seeking in any court of competent jurisdiction temporary or interim injunctive relief to the extent necessary to preserve the
subject matter of the dispute pending resolution under this Section 13.5. 
  
 13.6.    Consent to
Jurisdiction.  The Crown Entities and Constar hereby agree and consent to be subject to the exclusive jurisdiction of the United States District Court for the Eastern District of Pennsylvania, and in the absence of such Federal
jurisdiction, the parties consent to be subject to the exclusive jurisdiction of any state court located in the City of Philadelphia and hereby waive the right to assert the lack of personal or subject matter jurisdiction or improper venue in
connection with any such suit, action or other proceeding. In furtherance of the foregoing, each of the parties (i) waives the defense of inconvenient forum, (ii) agrees not to commence any suit, action or other proceeding arising out of this
Agreement or any transactions contemplated hereby other than in any such court (other than the mandatory submission to arbitration in accordance with Section 13.5), and (iii) agrees that a final judgment in any such suit, action or other proceeding
shall be conclusive and may be enforced in other jurisdictions by suit or judgment or in any other manner provided by law. 
  
 13.7.    Entire Agreement.  This Agreement constitutes the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes any prior agreement or understanding,
written or oral, relating to the subject matter of this Agreement. 
  
 13.8.    Section Headings; Interpretive
Issues.  The section and paragraph headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. The Crown Entities and Constar have participated
jointly in the drafting and negotiation of this Agreement. In the event any ambiguity or question of interpretation or intent arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall
arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement. 
  
 13.9.    Counterparts.  This Agreement and any amendments hereto may be executed in any number of counterparts, each of which shall be deemed an original instrument, but all of which together
shall constitute but one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile shall be as effective as delivery of a manually executed counterpart of this Agreement. 
  
 13.10.    Severability.  If any term or provision of this Agreement or the application thereof to any person or circumstance
shall, to any extent, be held invalid or unenforceable by a court of competent jurisdiction, the remainder of this Agreement or the application of any such term or
 

 provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each
term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. If any of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, scope, activity or
subject, it shall be construed by limiting and reducing it, so as to be valid and enforceable to the extent compatible with the applicable law or the determination by a court of competent jurisdiction. 
  
 13.11.    Effectiveness.  The terms of this Agreement shall not become effective until the Initial
Public Offering Date. 
  
 13.12.    Pronouns.  Whenever the context may require,
any pronouns used herein shall be deemed also to include the corresponding neuter, masculine or feminine forms. 
  
 13.13.    Further Assurances.  The parties shall execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such instruments and take such other action as may be
necessary or advisable to carry out their obligations under this Agreement and under any exhibit, document or other instrument delivered pursuant hereto. 
  
 13.14.    Amendment and Modification.  This Agreement may not be amended or modified except by written instrument duly executed by the parties hereto. No course of
dealing between or among any persons having any interest in this Agreement will be deemed effective to modify, amend or discharge any part of this Agreement or any rights or obligations of any person under or by reason of this Agreement.

  
 [Signatures appear on next page] 

  
 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the
day and year first above written. 
  
 
	 CARNAUDMETALBOX PLC
 
	 
	 By:
 	 	  
 

	 Name:
 	 	  
	 Title:
 	 	  
	 
	 CROWN CORK & SEAL TECHNOLOGIES CORPORATION
 
	 
	 By:
 	 	  
 

	 Name:
 	 	  
	 Title:
 	 	  
	 
	 CONSTAR INTERNATIONAL INC.
 
	 
	 By:
 	 	  
 

	 Name:
 	 	  
	 Title:
 	 	  

 

  
 SCHEDULE A  —  KEY INDIVIDUALS 
  
 [***] 
  
  
  

 
  
  
  
  
 

	[***]  Confidential  treatment  requested
	
 

  
 SCHEDULE B — NON-DEDICATED EQUIPMENT 
  
 [***] 
  
  
 

	[***]  Confidential  treatment  requested
	
 

  
 SCHEDULE C — CONSTAR WANTAGE EQUIPMENT 
  
 [***] 
  
 

	[***]    Confidential  treatment  requested

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