Document:

Form of Benefits Allocation Agreement

  
 Confidential treatment has been requested by
 Constar International Inc.
pursuant to Rule 406.
 All non-public information has been filed  
with the Securities and Exchange Commission. 
  
 Exhibit 10.10 
  
 BENEFITS ALLOCATION AGREEMENT 
  
 dated as of 
  
                                       
      , 2002 
  
 between 
  
 CROWN CORK & SEAL COMPANY, INC. 
  
 and

  
 CONSTAR INTERNATIONAL INC. 

 TABLE OF CONTENTS 
  
 
	  	 	 Page
 

	 ARTICLE I    DEFINITIONS
 	 	 1
 
	 Section 1.1      Definitions.
 	 	 1
 
	 
	 ARTICLE II    EMPLOYEES AND ALLOCATIONS OF LIABILITIES
 	 	 4
 
	 Section 2.1      Identification and Employment.
 	 	 4
 
	 Section 2.2      Constar Assumption of Liabilities.
 	 	 4
 
	 
	 ARTICLE III    RETIREMENT PLANS
 	 	 5
 
	 Section 3.1      General Principles.
 	 	 5
 
	 Section 3.2      Defined Benefit Pension Plans.
 	 	 5
 
	 Section 3.3      Defined Contribution Plans.
 	 	 7
 
	 
	 ARTICLE IV    WELFARE PLANS
 	 	 8
 
	 Section 4.1      General Principles.
 	 	 8
 
	 Section 4.2      Establishment of Welfare Plans.
 	 	 9
 
	 Section 4.3      Vacation and Sick Pay Liabilities.
 	 	 9
 
	 Section 4.4      Medical Spending/Dependent Care Accounts.
 	 	 9
 
	 Section 4.5      Severance.
 	 	 10
 
	 Section 4.6      Vendor Contracts.
 	 	 10
 
	 Section 4.7      Workers’ Compensation and Unemployment Compensation.

	 	 11
 
	 Section 4.8      Retiree Medical Benefits
 	 	 11
 
	 Section 4.9      HIPAA Business Associate Provisions
 	 	 11
 
	 
	 ARTICLE V    EXECUTIVE COMPENSATION PROGRAMS
 	 	 14
 
	 Section 5.1      Excess Benefit Plan.
 	 	 14
 
	 Section 5.2      Incentive Plans.
 	 	 14
 
	 Section 5.3      Supplemental Executive Retirement Plan
 	 	 14
 
	 Section 5.4      Split Dollar Life Insurance Policies
 	 	 14
 
	 
	 ARTICLE VI    EQUITY-BASED PLANS
 	 	 14
 
	 Section 6.1      Stock Option Awards
 	 	 14
 
	 Section 6.2      Stock Purchase Plan.
 	 	 15
 
	 
	 ARTICLE VII    FOREIGN PLANS AND TRANSITION EMPLOYEES
 	 	 16
 
	 Section 7.1      Foreign Retirement Plans.
 	 	 16
 
	 Section 7.2      Foreign Welfare Plans.
 	 	 16
 
	 Section 7.3      Transition Employees.
 	 	 16
 

 

 
 i 

 
	 
	 ARTICLE VIII    GENERAL
 	 	 16
 
	 Section 8.1      Payment of and Accounting Treatment for Expenses and Balance Sheet
Amounts.
 	 	 16
 
	 Section 8.2      Accounting Adjustments.
 	 	 17
 
	 Section 8.3      Notices.
 	 	 17
 
	 Section 8.4      Amendment and Waiver.
 	 	 18
 
	 Section 8.5      Sharing of Participant Information.
 	 	 18
 
	 Section 8.6      Entire Agreement.
 	 	 18
 
	 Section 8.7      Parties in Interest.
 	 	 18
 
	 Section 8.8      No Third-Party Beneficiaries; No Termination of Employment.

	 	 18
 
	 Section 8.9      Right to Amend or Terminate Any Plans.
 	 	 18
 
	 Section 8.10    Effect if Offering Does Not Occur.
 	 	 19
 
	 Section 8.11    Relationship of Parties.
 	 	 19
 
	 Section 8.12    Affiliates.
 	 	 19
 
	 Section 8.13    Audits.
 	 	 19
 
	 Section 8.14    Further Assurances and Consents
 	 	 19
 
	 Section 8.15    Severability.
 	 	 20
 
	 Section 8.16    Governing Law.
 	 	 20
 
	 Section 8.17    Counterparts.
 	 	 20
 
	 Section 8.18    Disputes.
 	 	 20
 
	 Section 8.19    Assignment.
 	 	 21
 
	 Section 8.20    Interpretation.
 	 	 21
 
	 Section 8.21    Headings.
 	 	 21
 

 
  
  
 TABLE OF APPENDICES

  
 Appendix A—Welfare Plans  
 Appendix
B—Retirement Plans 
 Appendix C—Transition Employees 
 Appendix D—Informal Pensions

 Appendix E—Annuity Payments 
 Appendix F—Split Dollar Insurance Policies 

Appendix G—Transferred Former Constar Salaried Employees 

 
 ii 

 BENEFITS ALLOCATION AGREEMENT 
  
 THIS IS A BENEFITS ALLOCATION AGREEMENT, dated as of                     , 2002 (the
“Agreement”), by and between Crown Cork & Seal Company, Inc., a Pennsylvania corporation (together with its successors and permitted assigns, “Crown”), and Constar International Inc., a Delaware corporation (together with its
successors and permitted assigns, “Constar”) (collectively, the “Parties” or individually, a “Party”). 
  
 Background 
  
 A.  The Board of Directors of Crown has authorized an initial public
offering of Constar’s common stock (the “Offering”). 
  
 B.  Upon the closing of the
Offering, Crown and Constar will enter into a number of agreements that will govern certain matters relating to the Offering and the relationship of Crown and Constar and their respective subsidiaries and affiliates following the Offering.

  
 C.  This Agreement sets forth the arrangements between the Parties relating to certain employee benefit
and compensation matters. 
  
 Terms 
  
 THEREFORE, in consideration of the foregoing premises and the mutual agreements and covenants contained in this Agreement, the Parties hereby agree as follows:

  
 ARTICLE I 
 DEFINITIONS

  
 Section 1.1  Definitions.  The following words and phrases used in this
Agreement shall have the meanings set forth below unless a different meaning is plainly required by the context. 
  
 “ACTIVE CONSTAR EMPLOYEE” means: 
  
 (a)  Any Employee who is
performing services for the Constar Group on the Closing Date, including any such Employee who is not actively performing such service as a result of sick leave, workers’ compensation leave, short-term disability or other authorized leave of
absence; and 
  
 (b)  Any Employee of the Crown Group who is designated by Crown and
Constar as an Employee to whom Constar offers employment beginning on or before the Closing Date and who has accepted such offer. 
  
 “ASO CONTRACT” means an administrative services only contract or other contract with a third-party administrator or service provider that pertains to any Crown Welfare Plan or Constar Welfare Plan. 

 
 1 

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

 
 2 

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

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

 
 3 

  
 “RETIREMENT PLANS”, when immediately preceded by “Crown,”
means the retirement plans listed in Part 1 of Appendix B to this Agreement that are sponsored by a member of the Crown Group. When immediately preceded by “Constar,” RETIREMENT PLANS means the retirement plans listed in Part 2 of Appendix
B to this Agreement that are sponsored by a member of the Constar Group for periods immediately after the Closing Date. 
  
 “SAVINGS PLANS” means the Retirement Plans designated as such in Part 1 or Part 2 of Appendix B, as applicable. 
  
 “SUBSIDIARY” means, with respect to any specified Person, any corporation or other legal entity of which such Person or any of its Subsidiaries owns or controls, directly or indirectly, more than 50% of the stock
or other equity interest entitled to vote on the election of members to the board of directors or similar governing body. 
  
 “WELFARE PLANS,” when immediately preceded by “Crown,” means the welfare benefit plans, programs, and policies listed in Part 1 of Appendix A to this Agreement that are sponsored by a member of the Crown Group.
When immediately preceded by “Constar,” WELFARE PLANS means the welfare benefit plans, programs, and policies listed in Part 2 of Appendix A to this Agreement that are sponsored by a member of the Constar Group for all periods after the
Closing Date. 
  
 ARTICLE II 
 EMPLOYEES AND ALLOCATIONS OF LIABILITIES 
  
 Section 2.1  Identification and
Employment.  Effective as of the Closing Date, Crown and Constar shall jointly compile a list by name, social security number, job title and assigned location of all Active Constar Employees. Effective as of the Closing Date, Constar
shall employ all such identified Active Constar Employees. Effective as of the Closing Date, Crown and Constar shall jointly compile a list by name and social security number of all Former Constar Employees who are identifiable at such time. An
individual who would be classified as a Former Constar Employee shall be treated as such for all purposes of this Agreement notwithstanding that such individual is not on the list provided for in the preceding sentence. 
  
 Section 2.2  Constar Assumption of Liabilities.  Except as specifically provided otherwise in this Agreement,
Constar shall, on behalf of itself and its Subsidiaries, assume, or cause another member of the Constar Group to assume (i) all Liabilities related to Active Constar Employees and Former Constar Employees incurred in connection with their employment
by the Constar Group (or the predecessor of any member of such Group) or the Crown Group (or the predecessor of any member of such Group) prior to the Closing Date; (ii) all Liabilities related to Active Constar Employees and Former Constar
Employees arising on or after the Closing Date relating to employment with any member of the Constar Group; and (iii) all other Liabilities related to, arising out of, or resulting from obligations, liabilities and responsibilities assumed or
retained by Constar or any member of the Constar Group under this Agreement or a Plan sponsored or maintained by any member of the Constar Group. 

 
 4 

  
 ARTICLE III 
 RETIREMENT PLANS 
  
 Section 3.1  General Principles. 

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

 
 5 

  
 (i)  Prior to the Closing Date, Crown shall
cause all liabilities accrued under the Crown Salaried Pension Plan with respect to the Former Constar Employees listed on Appendix G to be transferred together with an equivalent amount of assets to the Crown Hourly Pension Plan for Constar
Employees. 
  
 (ii)  Effective as of the Closing Date, Crown shall transfer sponsorship of
the Crown Hourly Pension Plan for Constar Employees together with all related liabilities and assets to Constar and Constar shall accept sponsorship of such Plan together with all related assets and liabilities. 
  
 (iii)  Effective as of the Closing Date, Constar will cause the Crown Hourly Pension Plan for Constar Employees
to be renamed as the Constar Pension Plan. Constar shall thereafter amend the Constar Pension Plan to provide benefits with respect to Active Constar Employees who are compensated on a salaried basis, their Beneficiaries and their respective
alternate payees immediately after the Closing Date that are at least substantially equivalent in all Material Features to those provided under the Crown Salaried Pension Plan immediately before the Closing Date and such benefits will be subject to
an offset for all benefits earned under the Crown Salaried Pension Plan immediately before the Closing Date. For purposes of eligibility (including early retirement eligibility), vesting and benefit accrual, all service recognized under the
applicable Crown Pension Plan (for periods immediately before the Closing Date) shall, as of immediately after the Closing Date be recognized and taken into account under the Constar Pension Plan. For purposes of benefit accrual, all compensation
recognized under the applicable Crown Pension Plan shall, be recognized and taken into account under the Constar Pension Plan. 
  
 (b)  Establishment of Pension Trust.  Effective as of the Closing Date, Constar shall establish or cause to be established with respect to the Constar Pension Plan, a trust(s) which shall be exempt from taxation
under Code section 501(a) (the “Constar Pension Trust”). On the first business day of the month commencing immediately after the month in which the Closing Date occurs, Crown will cause the Crown Cork & Seal Company, Inc. Master
Retirement Trust (the “Master Trust”) to transfer to the Constar Pension Trust an amount of cash equal to 90 percent of the value of the assets of the Crown Hourly Pension Plan for Constar Employees determined as of the last business day
of the month immediately preceding the month in which the Closing Date occurs. As soon as practicable thereafter, the Parties will cause a final transfer, either from or to the Master Trust and the Constar Pension Trust, of the balance of the assets
(either positive or negative) of the Crown Hourly Pension Plan for Constar Employees determined as of the last business day of the month in which the Closing Date occurs. Such transfer shall be in cash and shall be appropriately adjusted to account
for benefit payments and administrative expenses. 
  
 (c)  Retention of Liabilities.  Except as
specifically provided in this Section 3.2(c), effective as of the Closing Date, the Active Constar Employees (compensated on a salaried basis) shall cease to accrue benefits under the Crown Salaried Pension Plan. Notwithstanding the preceding
sentence, for purposes of early retirement eligibility and vesting, all service recognized under the Constar Pension Plan for periods following the Closing Date shall be recognized and taken into account under the Crown Salaried Pension Plan.
Following the Closing Date, and notwithstanding Section 2.2, the Crown Salaried Pension Plan shall retain
 

 
 6 

 
all liabilities and assets related to benefits earned prior to the Closing Date by Active Constar Employees (compensated on a salaried basis) and the Former Constar Employees (compensated on a
salaried basis) who are not listed on Appendix G. 
  
 (d)  PBGC Intervention.  Notwithstanding
any provision of this Agreement to the contrary, in the event that at any time the Pension Benefit Guaranty Corporation (PBGC) or any other Governmental Authority asserts that the Offering may provide justification for the PBGC to seek termination
of any Crown Pension Plan or Constar Pension Plan under ERISA or otherwise asserts that the Offering may increase unreasonably the long-run loss to the PBGC (within the meaning of ERISA section 4042(a)(4)) with respect to any Crown Pension Plan or
Constar Pension Plan, Crown may, in its sole discretion: 
  
 (i)  Enter into negotiations
with the PBGC to resolve these issues and, upon satisfactorily resolving such issues, Constar shall fully comply with the terms of any agreement entered into by Crown with the PBGC; or 
  
 (ii)  Transfer all assets and liabilities with respect to some or all of the Active Constar Employees and/or Former Constar Employees and their
respective alternate payees arising prior to the Closing Date under the applicable Crown Pension Plan to the corresponding Constar Pension Plan in a manner acceptable to the PBGC. 
  
 Section 3.3  Defined Contribution Plans. 
  
 (a)  Establishment of Savings Plan.  Effective as of the Closing Date, Constar shall adopt the Constar Savings Plan, which, subject to the asset transfer provided for in Section 3.3(c) below, shall
provide benefits with respect to Active Constar Employees, their Beneficiaries and their respective alternate payees immediately after the Closing Date that are at least substantially equivalent in all Material Features to those provided under the
Crown Savings Plans immediately before the Closing Date. For purposes of eligibility (including early retirement eligibility) and vesting, all service recognized under the corresponding Crown Savings Plan (for periods immediately before the Closing
Date) shall, as of immediately after the Closing Date be recognized and taken into account under the Constar Savings Plan. 
  
 (b)  Establishment of Savings Trust.  Effective on the Closing Date, Constar shall establish or cause to be established with respect to the Constar Savings Plan, a trust, which shall be exempt from taxation under
Code section 501(a). 
  
 (c)  Transfer of Savings Plan Assets. 
  
 (i)  Transfer of Assets to the Constar Savings Plan. As soon as practicable after the Closing Date, Crown shall
cause the accounts of the Active Constar Employees, their Beneficiaries and their respective alternate payees, if any, under the applicable Crown Savings Plan that are held by its related trust to be transferred to the Constar Savings Plan and its
related trust, and Constar shall cause such transferred accounts to be accepted by such plan and trust. The transfer of such accounts shall be made: (A) in kind, to the extent the assets consist of investments in a Crown Common Stock fund and (B)
otherwise in cash, interests in mutual funds, securities, or other property or in a combination thereof, as the Parties may agree, but, to the extent practicable, shall be invested initially in comparable investment options in the
 

 
 7 

 
Constar Savings Plan as such accounts were invested immediately before the date of transfer. Any outstanding loan balances under any Crown Savings Plans to Active Constar Employees shall be
transferred with the underlying accounts. 
  
 (ii)  Non-Employer Stock Funds. Effective
immediately after the Closing Date, the Constar Savings Plan shall provide for both a Crown Common Stock fund and a Constar Common Stock fund as investment options. The Crown Common Stock fund in the Constar Savings Plan shall be referred to as the
Non-Employer Stock Fund. The Non-Employer Stock Fund will be maintained under the Constar Savings Plan until at least December 31, 2004, or for such longer period as the applicable Constar Savings Plan fiduciaries determine the Non-Employer Stock
Fund to be an appropriate investment under the Constar Savings Plan. The Constar Savings Plan shall provide that, after the Closing Date, no new contributions may be invested in, and no amounts may be transferred from other investment options to,
the Non-Employer Stock Fund. The Constar Savings Plan shall provide that no earnings or dividends attributable to the Non-Employer Stock Fund may be reinvested in the Non-Employer Stock Fund. 
  

(iii)  Provision of Disclosure Materials Relating to Non-Employer Stock Funds. Crown shall provide to Constar in a timely manner such proxy
statements, annual reports, and other materials with respect to Crown stock held in the Non-Employer Stock Fund under the Constar Savings Plan as may be reasonably requested by Constar. 
  
 ARTICLE IV 
 WELFARE PLANS 
  

Section 4.1    General Principles. 
  
 (a)  Assumption of Welfare Plan Liabilities. Effective as of the Closing Date, all Liabilities relating to Active Constar Employees and Former Constar Employees and their Beneficiaries under
the Crown Welfare Plans shall cease to be Liabilities of Crown or the Crown Welfare Plans and shall be assumed by the Constar Group and the Constar Welfare Plans including, without limitation, retiree medical benefits. Except as specifically set
forth in Sections 4.4 and 4.8, Constar shall not be entitled to assets associated with any Crown Welfare Plan. 
  
 (b)  Continuation of Elections. Constar shall cause the Constar Welfare Plans to recognize and maintain all coverage and contribution elections made by Active Constar Employees (and Former Constar Employees, if applicable)
under the Crown Welfare Plans in effect for the period immediately before the Closing Date and shall apply such elections under the Constar Welfare Plans for the remainder of the period or periods for which such elections are by their terms
applicable. Constar shall provide coverage to Active Constar Employees (and Former Constar Employees, if applicable) under the Constar Welfare Plans without the need to undergo a physical examination or otherwise provide evidence of insurability,
will not impose pre-existing condition exclusions and will recognize and maintain all irrevocable assignments and elections made by Active Constar Employees (and Former Constar Employees, if applicable) in connection with any life insurance coverage
under the Crown Welfare Plans. 

 
 8 

  
 (c)  Continuation of Co-Payments. Constar shall cause the Constar
Welfare Plans to recognize and give credit for all amounts applied to deductibles, out-of-pocket maximums, and other applicable benefit coverage limits for expenses that have been incurred by Active Constar Employees (and Former Constar Employees,
if applicable) under the Crown Welfare Plans for the remainder of the benefit limit year in which the Closing Date occurs. 
  
 (d)  Continuation of Maximum Benefits. Constar shall cause the Constar Welfare Plans to recognize and give credit for all benefits paid to Active Constar Employees and Former Constar Employees under the Crown Welfare Plans,
before and during the benefit limit year in which the Closing Date occurs, for purposes of determining when such persons have reached their lifetime maximum benefits under the Constar Welfare Plans. 
  
 (e)  COBRA and HIPAA Obligations. For the period before the Closing Date and for the period following the Closing Date that
Crown is providing administrative services with respect to the Constar Welfare Plans pursuant to the terms of the Transition Services Agreement, Crown shall be responsible for administering compliance with the continuation coverage requirements for
“group health plans” under Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (COBRA), and the portability requirements under the Health Insurance Portability and Accountability Act of 1996, as amended
(HIPAA), with respect to Active Constar Employees, Former Constar Employees and their Beneficiaries and shall be responsible for furnishing all necessary employee change notices with respect to these persons in accordance with applicable Crown
policies and procedures. Following the time periods described in the preceding sentence, Constar shall be solely responsible for administering compliance with and satisfying any outstanding COBRA or HIPAA obligation with respect to Active Constar
Employees, Former Constar Employees and their Beneficiaries. 
  
 (f)  Subrogation. If Constar recovers any
amounts through subrogation or reimbursement for claims paid by Crown to Active Constar Employees, Former Constar Employees or their Beneficiaries, Constar shall pay such amounts to Crown. 
  
 Section 4.2  Establishment of Welfare Plans.  Effective as of the Closing Date, Constar shall take all actions necessary or appropriate to
establish the Constar Welfare Plans to provide Active Constar Employees (and Former Constar Employees, if applicable) benefits that are identical in all Material Features to those benefits provided under the Crown Welfare Plans from time to time
during the period that Crown is providing administrative services with respect to the Constar Welfare Plans pursuant to the terms of the Transition Services Agreement. 
  
 Section 4.3  Vacation and Sick Pay Liabilities.  Effective as of the Closing Date, Constar shall assume all Liabilities for vacation, sick
leave and other paid time off in respect of all Active Constar Employees (and Former Constar Employees, if applicable) as of the Closing Date. 
  
 Section 4.4  Medical Spending/Dependent Care Accounts.  For the calendar year that includes the Closing Date, the Constar Cafeteria Plan shall recognize all elections,
contributions and related claims by Active Constar Employees (and Former Constar Employees, if applicable) to flexible spending or dependent care assistance accounts under the Crown 

 
 9 

 
Cafeteria Plan. As soon as practicable after the close of such calendar year, Crown shall reimburse Constar for the aggregate contributions to such accounts withheld by Crown from Active Constar
Employees (and Former Constar Employees, if applicable) prior to the Closing Date to the extent that Crown did not exhaust such contributions by providing benefits to Active Constar Employees (and Former Constar Employees, if applicable) prior to
the Closing Date, or if benefits paid by Crown to Active Constar Employees (and Former Constar Employees, if applicable) prior to the Closing Date exceeds the contributions withheld by Crown from Active Constar Employees (and Former Constar
Employees, if applicable), Constar shall reimburse Crown for such difference. 
  
 Section
4.5  Severance.  The Parties agree that, with respect to Active Constar Employees who, in connection with the Offering, cease to be employees of the Crown Group and become Employees of the Constar Group, such cessation
shall not be deemed a severance of employment for purposes of any Plan that provides for the payment of severance, salary continuation or similar benefits. The Parties shall take all such action, including, but not limited to amending any Plan to
give effect to the provisions of this Section 4.5. 
  
 Section 4.6  Vendor Contracts. 

  
 (a)  Pre-Closing Date Negotiation. Before the Closing Date, Crown shall take such steps as are
necessary under each ASO Contract, Group Insurance Policy and HMO Agreement in existence as of the date of this Agreement to permit Constar to participate in the terms and conditions of such ASO Contract, Group Insurance Policy or HMO Agreement
beginning immediately after the Closing Date. 
  
 (b)  Terms of Constar Participation. Crown shall
determine, and shall promptly notify Constar of, the manner in which Constar’s participation in the terms and conditions of ASO Contracts, Group Insurance Policies and HMO Agreements, as set forth above is to be effectuated. Constar hereby
authorizes Crown to act on its behalf to extend to Constar the terms and conditions of the ASO Contracts, Group Insurance Policies and HMO Agreements. Constar shall fully cooperate with Crown in such efforts. 
  
 (c)  Premium/Administration Rates. Crown and Constar shall use their reasonable best efforts to cause each of the insurance
companies, HMOs, paid provider organizations and third-party administrators providing services and benefits under the Crown Welfare Plans and the Constar Welfare Plans to maintain the premium and/or administrative rates, based on the aggregate
number of participants in both the Crown Welfare Plans, after the Closing Date, and the Constar Welfare Plans. 
  
 (d)  Management of the ASO Contracts, Group Insurance Policies and HMO Agreements. Constar shall be responsible, subject to the direction and control of Crown, for the management of the existing contractual and other
arrangements pertaining to the administration of the Constar Welfare Plans. Immediately after the Closing Date, Constar shall be responsible for the management and control of the ASO contracts, Group Insurance Policies and HMO Agreements and other
vendor contracts and relationships to the extent such contracts, policies and agreements apply to the Constar Welfare Plans. Notwithstanding the foregoing, nothing contained in this Section 4.6(d) shall permit Constar to direct any insurance
carrier, third-party
 

 
 10 

 
vendor or claims administrator with respect to any contractual arrangement, policy or agreement under any Crown Welfare Plan. 
  
 Section 4.7  Workers’ Compensation and Unemployment Compensation. Effective as of the Closing Date, Constar shall assume all Liabilities for
Active Constar Employees and Former Constar Employees related to any and all workers’ compensation and unemployment compensation matters under any law of any state, territory, or possession of the United States or the District of Columbia and
Constar shall be fully responsible for the administration of all such claims. If Constar is unable to assume any of such Liabilities or the administration of any such claim because of the operation of applicable state law or for any other reason,
Constar shall reimburse Crown for all such Liabilities. 
  
 Section 4.8  Retiree Medical
Benefits. Following the Closing Date, Crown shall continue to permit Former Constar Employees (and Active Constar Employees, who subsequently become eligible and elect to do so), to pay their portion of the cost of retiree medical benefits
through a voluntary deduction from their benefit payments under the applicable Crown Pension Plan. Crown shall cause such deduction to be made and to be remitted to Constar within 30 days of when such amount would otherwise have been paid to such
Former Constar Employee (or Active Constar Employee, if applicable). 
  
 Section 4.9  HIPAA
Business Associate Provisions. 
  
 (a)  Definitions. For purposes of this Section 4.9,
the following words and phrases shall have the meanings set forth below. 
  
 “Designated Record Set” shall
have the meaning set out in its definition at 45 C.F.R. §164.501, as such provision is currently drafted and as subsequently amended. 
  
 “Record” means any item, collection, or grouping of information that includes Protected Health Information and is maintained, collected, used, or disseminated by or for Constar. 
  
 “Individually Identifiable Health Information” shall have the meaning set out in its definition at 45 C.F.R. §164.501, as
such provision is currently drafted and as subsequently amended. 
  
 “Privacy Standards” shall mean the
Standards for Privacy of Individually Identifiable Health Information promulgated under the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”), 45 C.F.R. Parts 160 and 164. 
  
 “Protected Health Information” (“PHI”) shall have the meaning set out in its definition at 45 C.F.R. §164.501, as
such provision is currently drafted and as subsequently amended. 
  
 (b)  Use and Disclosure of PHI.
Crown may use and disclose PHI received from Constar or created or received by Crown on behalf of Constar solely as permitted or required by this Agreement or as otherwise required by law. Crown shall not use and disclose 

 
 11 

 PHI received from Constar or created or received by Crown on behalf of Constar in any manner that would constitute a violation of the Privacy
Standards if used in such manner by Constar. 
  
 (c) Safeguards. Crown agrees that it will use commercially
reasonable efforts to safeguard PHI and to prevent use or disclosure of PHI other than as provided for under this Section 4.9. 
  
 (d) Reporting of Disclosures of PHI. Crown shall report to Constar any use or disclosure of PHI in violation of this Section 4.9 of which it becomes aware. 
  
 (e) Agreements with Third Parties. Crown shall obtain agreement with any agent or subcontractor that will have access to PHI that is received from, or created or
received by Crown on behalf of Constar, to be bound by the same restrictions, terms, and conditions that apply to Crown pursuant to this Section 4.9 with respect to such PHI. 
  
 (f) Access to Information. Within twenty-five (25) days of receipt of a request by Constar for access to PHI in a Designated Record Set concerning an individual
whose PHI is held by Crown under this Agreement, Crown will provide such access to an individual in accordance with 45 C.F.R. § 164.524. 
  
 (g) Availability of PHI for Amendment. Within fifty (50) days of receipt of a request from Constar for the amendment of an individual’s PHI contained in a Designated Record Set, Crown
agrees to make any amendment to PHI in a Designated Record Set that Constar directs or agrees to pursuant to 45 C.F.R. §164.526. 
  
 (h) Accounting of Disclosures. Within fifty (50) days of receipt of a notice from Constar to Crown stating that Constar has received a request for an accounting of disclosures of PHI regarding an individual, Crown
shall make available to Constar such information as is in Crown’s possession and is required for Constar to make the accounting under 45 C.F.R. §164.528. Crown agrees to document such disclosures of PHI and information related to such
disclosures as would be required for Constar to respond to a request by an individual for an accounting of disclosures of PHI in accordance with 45 C.F.R. § 164.528. 
  
 (i) Availability of Books and Records. Crown agrees to make its internal policies, procedures, practices, books, records and agreements relating to the use and
disclosure of PHI received from, or created or received by Crown on behalf of, Constar available to the Secretary of the Department of Health and Human Services (“Secretary”) for purposes of determining Constar’s compliance with the
Privacy Standards, subject to attorney-client and other applicable legal privileges. 
  
 (j) Return of PHI upon
Termination. Upon termination of the Agreement for any reason, Crown shall return to Constar all PHI received from Constar or created or received by Crown on behalf of Constar and which Crown still maintains in any form. Prior to doing so, Crown
further agrees to recover any PHI in the possession of its subcontractors or agents. Crown shall not retain any copies of such PHI. If it is not feasible to return such PHI as determined by Constar, Crown agrees to extend any and all protections,
limitations, and restrictions in this Section 4.9 to Crown’s use and disclosure of any PHI retained after the termination of the Agreement, and to limit any further uses and disclosures to the purpose or
 

 
 12 

 purposes that make the return of PHI infeasible. If it is not feasible for Crown to obtain from a subcontractor or agent any PHI in the
possession of the subcontractor or agent, Crown will require the subcontractor and/or agent to agree to extend any and all protections, limitations, and restrictions in this Section 4.9 to the subcontractors’ and/or agents’ use and
disclosure of any PHI retained after the termination of the Agreement, and to limit any further uses and disclosures to the purposes that make the return of the PHI infeasible. 
  
 (k)  Termination.  Pursuant to 45 C.F.R. §164.504(e)(2)(iii), Constar may upon ten (10) days notice terminate the provisions of any
agreement that relates to the administration of any Welfare Plan determined to be a health plan under the Privacy Standards if Constar determines that Crown has breached a material term of this Section 4.9. Alternatively, Constar may (i) provide
Crown with 30 days written notice of the existence of an alleged material breach; and (ii) afford Crown an opportunity to cure said alleged material breach to Constar’s satisfaction within the stated time period. Failure to cure the alleged
breach is grounds for immediate termination of the provisions of any agreement that relates to the administration of any Welfare Plan determined to be a health plan under the Privacy Standards; provided, however, that in the event that Constar
determines that such termination is not feasible, Crown hereby acknowledges that Constar shall have the right to report the breach to the Secretary, notwithstanding any other provision of the Agreement to the contrary. Constar reserves the right to
cure any breach by Crown of any provision of this Section 4.9; provided, however, that Constar retains its right to terminate relevant provision of an agreement as provided under this Section 4.9(k) and its right to seek related remedies, even if
Constar is able to cure the breach. 
  
 (l)  Constar’s Obligations.  Constar shall
notify Crown of any limitation(s) in its notice of privacy practices, to the extent that such limitation may affect Crown’s use or disclosure of PHI. Constar also shall notify Crown of any changes in, or revocation of, permission by an
individual to use or disclose PHI, to the extent that such changes may affect Crown’s use or disclosure of PHI. Constar also shall notify Crown of any restriction to the use or disclosure of PHI that Constar has agreed to in accordance with 45
C.F.R. § 164.522, to the extent that such restriction may affect Crown’s use or disclosure of PHI. 
  
 (m)  Management and Administration.  Except as otherwise limited in this Agreement, Crown may use PHI for the proper management and administration of the Constar health plan or to carry out the legal
responsibilities of Crown. Except as otherwise limited in this Agreement, Crown may disclose PHI for the proper management and administration of the Constar health plan, provided that disclosures are required by law, or Crown obtains reasonable
assurances from the person to whom the information is disclosed that it will remain confidential and used or further disclosed only as required by law or for the purposes for which it was disclosed to the person. The person also must agree to notify
Crown of any instances of which it is aware in which the confidentiality of the information has been breached. 
  
 (n)  Amendment.  The parties agree to take such action as is necessary to amend this Section 4.9 from time to time as is necessary for Constar to comply with the requirements of the Privacy Standards.

 
 13 

  
 ARTICLE V 
 EXECUTIVE COMPENSATION PROGRAMS 
  
 Section 5.1  Excess Benefit Plan.

  
 (a)  Cessation of Participation.  All Active Constar Employees shall cease to be
eligible to participate in the Crown Excess Benefit Plan as of the Closing Date. 
  
 (b)  Retention of
Liabilities.  Notwithstanding any provision of this Agreement to the contrary, effective as of the Closing Date, the Crown Group shall retain all Liabilities in connection with the Crown Excess Benefit for Active Constar Employees (and
Former Constar Employees, if applicable) and the Constar Group shall have no responsibility with respect to such Liabilities. 
  
 Section 5.2  Incentive Plans.  Constar shall assume all Liabilities for or related to Active Constar Employees (and Former Constar Employees, if applicable) payable under the Crown Incentive Plans with
respect to the period prior to the Closing Date; provided, however, that Crown and Constar may jointly make such adjustments to the financial goals, targets, payments and forms of payment as they deem appropriate to reflect the Offering. As of the
Closing Date, Constar shall establish the Constar Incentive Plan covering such of its Active Constar Employees as it in its sole discretion deems appropriate. 
  
 Section 5.3  Supplemental Executive Retirement Plan.  As of the Closing Date, Constar shall retain or assume all liability and responsibility for the payment of the informal
pension amounts and the annuity payments specified in Appendix D and Appendix E, respectively. In conjunction with Constar’s assumption of liability for the annuity payments described in the preceding sentence, Crown shall transfer to Constar
all of its interest, rights and obligations under the annuity contracts identified in Appendix E and Constar shall assume all such interest, rights and obligations. In addition, as of the Closing Date, Constar may establish a non-qualified
supplemental executive retirement plan (“SERP”) covering such of its Active Constar Employees as it in its sole discretion deems appropriate. The SERP shall provide eligible employees with supplemental retirement benefits equal to the
additional benefit that would be payable under the applicable Constar Pension Plan if not for the limitations imposed by sections 401(a)(17) and 415 of the Code or any successor provisions. 
  
 Section 5.4  Split Dollar Life Insurance Policies.  As of the Closing Date, Crown shall transfer to Constar all of it interest, rights and
obligations with respect to the split dollar life insurance policies identified in Appendix F and Constar shall assume all of Crown’s liability and responsibility with respect to such policies. 
  
 ARTICLE VI 
 EQUITY-BASED PLANS 

 
 Section 6.1  Stock Option Awards. 

 
 14 

  
 (a)  The employment of each Active Constar Employee shall be considered
terminated by Crown for purposes of the Crown Equity Plans as of the Closing Date. As of the Closing Date, each stock option awarded under a Crown Equity Plan to an Active Constar Employee which is not exercisable or which has an exercise price
above the then fair market value of Crown Common Stock shall be cancelled. Each stock option awarded under a Crown Equity Plan to an Active Constar Employee which is not described in the preceding sentence shall continue to be exercisable under the
applicable Crown Equity Plan for a period of 60 days after the Closing Date (the “Exercise Period”). Any such stock option that is not exercised within the Exercise Period shall be cancelled. With respect to any stock option for Crown
Common Stock exercised by an Active Constar Employees or Former Constar Employee, Crown shall be entitled to any tax deduction and in its sole discretion shall determine the treatment related to any such tax deduction with respect to the exercise of
such stock options. 
  
 (b)  Effective as of the Closing Date, Constar shall establish an equity-based
incentive plan and shall make awards thereunder to Active Constar Employees as it in its sole discretion deems appropriate. 
  
 Section 6.2  Stock Purchase Plan. 
  
 (a)  Establishment of Stock Purchase
Plan.  Effective as of the Closing Date, Constar shall establish an employee stock purchase plan (the “Constar ESPP”) that will provide benefits for a period of one year after the Closing Date that are at least substantially
equivalent in all Material Features to those provided under the Crown Employee Stock Purchase Plan (the “Crown ESPP”) immediately before the Closing Date. 
  
 (b)  Asset Transfer.  Prior to the Closing Date, all Active Constar Employees (and Former Constar Employees, if applicable) currently participating in
the Crown ESPP shall be given an election to have the total amount of cash credited to their account under the Crown ESPP as of the Closing Date returned to them in a cash lump sum payment (without interest) or to have such amount transferred to the
Constar ESPP. 

 
 15 

  
 ARTICLE VII 
 FOREIGN PLANS AND TRANSITION EMPLOYEES 
  
 Section 7.1  Foreign
Retirement Plans.  Crown and Constar shall use their reasonable best efforts so that, as soon as practicable after the Closing Date, all Crown Foreign Plans which provide retirement benefits solely to Active Constar Employees and
Former Constar Employees shall be assumed by Constar together with all related assets and liabilities and neither the Crown Group nor any Crown Group Plan shall retain any liability with respect to such Foreign Plans. 
  
 Section 7.2  Foreign Welfare Plans.  Crown and Constar shall use their reasonable best efforts, effective as of
the Closing Date, and to the extent allowed under foreign laws, to handle the Foreign Plans which provide welfare benefits in a manner which mirrors the approach outlined in this Agreement for the various employee benefit plans. 

 
 Section 7.3  Transition Employees.  Crown and Constar have agreed that the employees listed in
Appendix C will be classified as “Transition Employees.” For the “Applicable Period” (as described below), these Transition Employees will continue to be employed by Crown but will provide services exclusively to Constar in
accordance with the Research and Development Agreement. At the end of the Applicable Period, or earlier, if mutually agreed to by the Parties, the Transition Employees shall be terminated by Crown and shall be offered employment with Constar. The
“Applicable Period” with respect to Transition Employees who, as of the Closing Date, are in the process of seeking permanent residency in the United States, shall be the later of (i) 18 months from the Closing Date, and (ii) the period
from the Closing Date until the date permanent residency is granted. The “Applicable Period” with respect to Transition Employees who, as of the Closing Date, are not in the process of seeking permanent residency shall be six months from
the Closing Date. At such time as the Transition Employees become employed by Constar (the “Transition Date”), the Transition Employees shall be considered Active Constar Employees and will subject to all of the terms of this Agreement as
of the Transition Date. 
  
 ARTICLE VIII 
 GENERAL 
  
 Section 8.1  Payment of and Accounting Treatment for Expenses and
Balance Sheet Amounts. 
  
 (a)  Expenses.  Except as specifically provided in this
Agreement, all expenses (and the accounting treatment related to such expenses) related to liabilities through the Closing Date regarding matters addressed in this Agreement shall be handled and administered in the ordinary course by Crown and
Constar in accordance with past Crown accounting and financial practices and procedures pertaining to such matters. To the extent such expenses are unpaid as of the Closing Date that pertain to Active Constar Employees or Former Constar Employees,
Constar shall be solely responsible for such payment, without regard to any accounting treatment to be accorded such expense by Crown or Constar on their respective books and records. The 

 
 16 

 
accounting treatment to be accorded all such expenses, whether such expenses are paid by Crown or Constar, shall be determined by Crown. 
  
 (b)  Balance Sheet Amounts.  Constar shall assume any balance sheet liability for any Liabilities assumed by it under this Agreement as of the
Closing Date or thereafter, with respect to any Active Constar Employee or Former Constar Employees. The determination of any balance sheet liability as of the Close of the Closing Date shall be determined by Crown consistent with past accounting
practices, consistently applied. 
  
 Section 8.2  Accounting Adjustments.  Before the
Closing Date, Constar will have established on its books for financial accounting purposes liabilities and reserves for deferred compensation, welfare and other employee benefit plan obligations that will be retained or assumed by Constar under this
Agreement, and Crown will have adjusted the liabilities and reserves on its books for financial accounting purposes to take into account Constar’s assumption or retention of Liabilities under this Agreement. The initial adjustments as of the
Closing Date, will be made on an estimated basis. After the Parties have finally calculated the actual liabilities under this Agreement, each Party shall appropriately adjust its liabilities and reserves to reflect the amount of the liabilities and
reserves that are properly allocable to that Party. Except as otherwise provided in Article III and Article VI, neither Party shall have any obligation to make payments or transfer assets to the other Party with respect to such adjustments.

  
 Section 8.3  Notices.  All notices, requests, claims and other communications
hereunder shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery by hand, by reputable overnight courier service, by facsimile transmission, or by registered or certified mail
(postage prepaid, return receipt requested) to the respective parties at the addresses listed below: 
  
 
	 if to Crown, to:
 	  	 Crown Cork & Seal Company, Inc.                            
                            
 One Crown
Way
 Philadelphia, PA 19154
 Attn.: Gary L. Burgess
 Fax No. 215-676-7245
 
	 
	 if to Constar, to:
 	  	 Constar International Inc.
 One Crown
Way
 Philadelphia, PA 19154
 Attn.: Jerry A. Gunderson
 Fax No. 215-552-3715
 

 
  
 or to such other address as any Party may, from time to time, designate in a written
notice given in accordance with this Section 8.3. Notice given by hand shall be deemed delivered when received by the recipient. Notice given by mail as set out above shall be deemed delivered five calendar days after the date the same is mailed.
Notice given by reputable overnight courier shall be deemed delivered on the next following business day after the same is sent. Notice given by facsimile transmission shall be deemed delivered on the day of transmission provided telephone
confirmation of receipt is obtained promptly after completion of transmission. 

 
 17 

  
 Section 8.4  Amendment and Waiver.  This
Agreement may not be altered or amended, nor may rights hereunder be waived, except by an instrument in writing executed by the Party or Parties to be charged with such amendment or waiver. No waiver of any term, provision or condition of or failure
to exercise or delay in exercising any rights or remedies under this Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, provision, condition, right or remedy or as a
waiver of any other term, provision or condition of this Agreement. 
  
 Section 8.5  Sharing of
Participant Information.  Crown and Constar shall share, Crown shall cause each applicable member of the Crown Group to share, and Constar shall cause each applicable member of the Constar Group to share, with each other and their
respective agents and vendors (without obtaining releases) all participant information necessary for the efficient and accurate administration of each of the Crown Plans and the Constar Plans. Crown and Constar and their respective authorized agents
shall, subject to applicable laws on confidentiality, be given reasonable and timely access to, and may make copies of, all information relating to the subjects of this Agreement in the custody of the other Party, to the extent necessary for such
administration. 
  
 Section 8.6  Entire Agreement.  This Agreement constitutes the
entire understanding of the Parties with respect to the subject matter herein addressed, superseding all negotiations, prior discussions and prior agreements and understandings relating to such subject matter. 
  
 Section 8.7  Parties in Interest.  Neither of the Parties may assign its rights or delegate any of its
duties under this Agreement without the prior written consent of the other Party (which consent shall not be unreasonably withheld or delayed). This Agreement shall be binding upon, and shall inure to the benefit of, the Parties and their respective
successors and permitted assigns. 
  
 Section 8.8  No Third-Party Beneficiaries; No Termination
of Employment.  No provision of this Agreement shall be construed to create any right, or accelerate entitlement, to any compensation or benefit whatsoever on the part of any Active Constar Employee or Former Constar Employee under any
Crown Plan or Constar Plan or otherwise. Without limiting the generality of the foregoing, neither the Offering nor the termination of the controlled group status of a member of the Constar Group shall cause any employee to be deemed to have
incurred a termination of employment that by itself entitles such individual to the commencement of benefits under any of the Crown Plans, any of the Constar Plans, or any individual agreements. 
  

Section 8.9  Right to Amend or Terminate Any Plans.  Nothing in this Agreement other than those provisions specifically set forth in
this Agreement to the contrary shall preclude Constar or Crown, at any time after the Closing Date, from amending, merging, modifying, terminating, eliminating, reducing, or otherwise altering in any respect any Constar Plan or Crown Plan,
respectively, any benefit under any Plan or any trust, insurance policy or funding vehicle related to any Constar Plan or Crown Plan. 

 
 18 

  
 Section 8.10  Effect if Offering Does Not
Occur.  If the Offering does not occur, then all actions and events that are, under this Agreement, to be taken or occur effective as of the Closing Date, immediately after the Closing Date, or otherwise in connection with the
Offering, shall not be taken or occur except to the extent specifically agreed to in writing by Constar and Crown. 
  
 Section 8.11  Relationship of Parties.  Nothing in this Agreement shall be deemed or construed by the Parties or any third party as creating the relationship of principal and agent, or a partnership
or joint venture between the Parties, it being understood and agreed that no provision contained in this Agreement, and no act of the Parties, shall be deemed to create any relationship between the Parties other than the relationship set forth in
this Agreement. 
  
 Section 8.12  Affiliates.  Each of Crown and Constar shall
cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth in this Agreement to be performed by members of the Crown Group or members of the Constar Group, respectively, where relevant.

  
 Section 8.13  Audits.  
  
 (a)  Audit Rights With Respect to Information Provided. 
  
 (i)  Each of Crown and Constar, and their duly authorized representatives, shall have the right to conduct audits at any time upon reasonable prior notice, at their own expense, with respect
to all information provided to it or to any Plan trustee, recordkeeper or third-party administrator by the other Party. The Party conducting the audit shall have the sole discretion to determine the procedures and guidelines for conducting audits
and the selection of audit representatives under this Section. The auditing Party shall have the right to make copies of any records at its expense. The Party being audited shall provide the auditing Party’s representatives with reasonable
access during normal business hours to its operations, computer systems and paper and electronic files, and provide workspace to its representatives. After any audit is completed, the Party being audited shall have the right to review a draft of the
audit findings and to comment on those findings in writing within ten business days after receiving such draft. 
  
 (ii)  The auditing Party’s audit rights under this Section shall include the right to audit, or participate in an audit facilitated by the Party being audited, of any Subsidiaries and affiliates of the Party being
audited and of any benefit providers and third parties with whom the Party being audited has a relationship, or agents of such Party, to the extent any such persons are affected by or addressed in this Agreement. The Party being audited shall, upon
written request from the auditing Party, provide an individual (at the auditing Party’s expense) to supervise any audit of any such benefit provider or third-party. The auditing Party shall be responsible for supplying, at its expense,
additional personnel sufficient to complete the audit in a reasonably timely manner. 
  
 Section
8.14  Further Assurances and Consents.  In addition to the actions specifically provided for elsewhere in this Agreement, each of the Parties will use its reasonable best efforts to (a) execute and deliver such further
instruments and documents and take such 

 
 19 

 
other actions as any other Party may reasonably request in order to effectuate the purposes of this Agreement and to carry out the terms of this Agreement and (b) take, or cause to be taken, all
actions, and to do, or cause to be done, all things, reasonably necessary, proper or advisable under applicable laws, regulations and agreements or otherwise to consummate and make effective the transactions contemplated by this Agreement,
including, without limitation, using its reasonable best efforts to obtain any consents and approvals and to make any filings and applications necessary or desirable in order to consummate the transactions contemplated by this Agreement; provided
that no Party shall be obligated to pay any consideration therefor (except for filing fees and other similar charges) to any third-party from whom such consents, approvals and amendments are requested or to take any action or omit to take any action
if the taking of or the omission to take such action would be unreasonably burdensome to the Party. 
  
 Section
8.15  Severability.    The provisions of this Agreement are severable and should any provision of this Agreement be void, voidable or unenforceable under any applicable law, such provision shall not affect or
invalidate any other provision of this Agreement, which shall continue to govern the relative rights and duties of the Parties as though such void, voidable or unenforceable provision were not part of this Agreement. 
  
 Section 8.16  Governing Law.    Subject to federal law, this Agreement shall be construed in
accordance with, and governed by, the laws of the Commonwealth of Pennsylvania, without regard to the conflicts of law rules of such state. 
  
 Section 8.17  Counterparts.    This Agreement may be executed in one or more counterparts each of which shall be deemed an original instrument, but all of
which together shall constitute but one and the same Agreement. 
  
 Section 8.18  Disputes. 

  
 (a)  Resolution of any and all disputes arising from or in connection with this Agreement, whether
based on contract, tort, statute or otherwise, including, but not limited to, disputes in connection with claims by third parties (collectively, “Disputes”), shall be subject to the provisions of this Section 8.18; provided, however, that
nothing contained in this Agreement shall preclude either Party from seeking or obtaining (i) injunctive relief or (ii) equitable or other judicial relief to enforce the provisions of this Agreement or to preserve the status quo pending resolution
of Disputes hereunder. 
  
 (b)  Either Party may give the other Party written notice of any Dispute not
resolved in the normal course of business. The parties shall attempt in good faith to resolve any Dispute promptly by negotiation between executives of the parties who have authority to settle the controversy and who are at a higher level of
management than the persons with direct responsibility for administration of this Agreement. Within 30 days after delivery of the notice, the foregoing executives of both parties shall meet at a mutually acceptable time and place, and thereafter as
often as they reasonably deem necessary for a period not to exceed 15 business days, to attempt to resolve the Dispute. All reasonable requests for information made by one Party to the other will be honored. If the parties do not resolve the Dispute
within such 45 business day period (the “Initial Negotiation Period”), the Parties shall attempt in good faith to resolve the Dispute by negotiation between (a) in the case of Crown, the Chief Financial Officer
 

 
 20 

 
and (b) in the case of Constar, the Chief Financial Officer (collectively, “Designated Officers”). Such officers shall meet at a mutually acceptable time and place (but in any event no
later than 15 business days following the expiration of the Initial Negotiation Period) and thereafter as often as they reasonably deem necessary for a period not to exceed 15 business days, to attempt to resolve the Dispute. 

 
 (c)  If the Dispute has not been resolved by negotiation within 75 business days of the first Party’s notice, or
if the Parties failed to meet within 30 business days of the first Party’s notice, or if the Designated Officers failed to meet within 60 business days of the first Party’s notice, either Party may commence any litigation or other
procedure allowed by law. 
  
 Section 8.19  Assignment.    Neither of the
parties may assign or delegate any of its rights or duties under this Agreement without the prior written consent of the other party, which consent will not be unreasonably withheld. This Agreement shall be binding upon, and shall inure to the
benefit of, the Parties and their respective successors and permitted assigns. 
  
 Section
8.20  Interpretation.    Words in the singular shall be held to include the plural and vice versa and words of one gender shall be held to include the other genders as the context requires. The word
“including” and words of similar import when used in this Agreement means “including, without limitation,” unless the context otherwise requires or unless otherwise specified. 
  

Section 8.21  Headings.    The Article and Section headings contained in this Agreement are solely for the purpose of
reference, are not part of the agreement of the Parties and shall not in any way affect the meaning or interpretation of this Agreement. 
  
 *    *    *    *    * 

 
 21 

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

  
  
 
	 CROWN CORK & SEAL COMPANY, INC.
 
	 
	 By:
 	 	 

	  	 	 Name:
 
	  	 	 Title:
 

 
  
 
	 
	 By:
 	 	 

	  	 	 Name:
 
	  	 	 Title:
 

 
  
 
	 CONSTAR INTERNATIONAL INC. 
 
	 
	 By:
 	 	 

	  	 	 Name:
 
	  	 	 Title:
 

 
  

 
 22 

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

 
 23 

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

 
 24 

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

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

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

 
 25 

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

	[***]
	 
	Confidential treatment requested 
 

 
 26Employee Stock Purchase Plan

  
 Exhibit 10.21 
  
  
  
  
  
  
 CONSTAR INTERNATIONAL INC. 
  
 EMPLOYEE STOCK PURCHASE PLAN 

  
 CONSTAR INTERNATIONAL INC. 
  

EMPLOYEE STOCK PURCHASE PLAN 
  
 The
Constar International Inc. Employee Stock Purchase Plan (the “Plan”) is intended to provide the eligible employees of Constar International Inc. (the “Company”) and its participating Subsidiaries a convenient means of purchasing
shares of the Company’s common stock, par value $.01 per share (the “Stock”). The Plan is intended to qualify as an “employee stock purchase plan” under section 423 of the Internal Revenue Code of 1986, as amended (the
“Code”), and shall be administered, interpreted and construed in a manner consistent with the requirements of that section of the Code. 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 1.1. “Account” means the bookkeeping account established on behalf of each Participant by the Committee to record payroll deduction contributions made by such
Participant and shares of Stock purchased on his behalf. 
  
 1.2. “Board” means the Board of Directors of
the Company. 
  
 1.3. “Business Day” means each day on which the principal national securities exchange on
which the Stock is listed is open for business. 
  
 1.4. “Change in Control” means: 

 
 1 

  

	 	1.4.1.
	 
	The acquisition, after the Effective Date, by an individual, entity or group (within the meaning of Section 13(d)(3) or 14 (d)(2) of the 1934 Act) 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: (i) 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, (ii) any acquisition by any underwriter in connection with any firm commitment underwriting of securities to be issued by the Company, or (iii) 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 
 

 
 2 

 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, (i) a complete liquidation or substantial dissolution of the Company, or (ii) 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 
 

 
 3 

  

	 	1.4.4.
	 
	During any period of twenty-four (24) consecutive months commencing upon the Effective 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. 
 

  
 1.5.  “Company 401(k) Plan” means the Constar International Inc. 401(k) Retirement Savings Plan. 
  
 1.6.  “Compensation” means all regular salary, wages or earnings but excluding overtime, commissions, bonuses, amounts realized from the exercise of a
qualified or non-qualified stock option and other special incentive payments, fees or allowances; provided that the maximum amount of annual Compensation taken into account for any purpose under the Plan is $50,000. 

 
 4 

  
 1.7. “Committee” means the committee appointed pursuant to Article IX
to administer the Plan. 
  
 1.8. “Employee” means any person who is employed on a full-time or part-time
basis by the Company or a Subsidiary. 
  
 1.9. “Effective Date” means the date of the Company’s
initial public offering. 
  
 1.10. “Entry Date” means the Effective Date and each January 1, April 1, July
1 and October 1 of each Plan Year thereafter. 
  
 1.11. “1934 Act” means the Securities Exchange Act of
1934, as amended. 
  
 1.12. “Non-Vested Shares” means shares of Stock that have been allocated to a
Participant’s Account for less than 24 months. 
  
 1.13. “Offering Commencement Date” means the first
Business Day of each Offering Period, except that the initial Offering Commencement Date shall mean the Effective Date. 
  
 1.14. “Offering Period” means each calendar quarter except that the initial Offering Period shall mean the period from the Effective Date to the end of the calendar quarter in which the Effective Date occurs. 

 
 1.15. “Offering Termination Date” means the last Business Day of each Offering Period. 

 
 5 

  
 1.16. “Participant” means an Employee of the Company or a Participating
Subsidiary who has met the eligibility requirements of Article II and who has elected to participate pursuant to an election under Section 3.1. 
  
 1.17. “Participating Subsidiary” means each United States Subsidiary that has elected to participate in the Plan. 
  
 1.18. “Plan Year” means the period commencing on the Effective Date and ending on the following December 31 and thereafter the 12-month period ending December 31.

  
 1.19. “Subsidiary” means a subsidiary corporation of the Company as that term is defined in section
424(f) of the Code. 
  
 1.20. “Vested Shares” means shares of Stock that have been allocated to a
Participant’s Account for at least 24 months. 
  
 1.21. “Year of Service” means a consecutive 12-month
period during which an individual was an Employee. For purposes of determining an Employee’s Years of Service, all service performed for Crown Cork & Seal Company Inc. or its subsidiaries as of the Effective Date shall be counted.

  
 ARTICLE II 
  
 ELIGIBILITY 
  
 2.1.    Eligibility.     Except as provided in Section 2.2 and Section 2.3, an Employee who has completed one Year of Service prior to the Effective Date and who continues 

 
 6 

 to be employed by the Company or a Participating Subsidiary shall be eligible to participate in the Plan as of the Effective Date. All other
Employees, except as provided in Section 2.2 and Section 2.3, shall be eligible to participate in the Plan as of the Entry Date coinciding with or next following the completion of one Year of Service. 
  
 2.2.  Ineligible Employees.    Notwithstanding any provision of the Plan to the contrary, each of the
following Employees shall be ineligible to participate in the Plan: 
  

	 	2.2.1.
	 
	An Employee whose base compensation from the Company or any Subsidiary as of January 1 (or the Employee’s employment commencement date, if later) of the
then current-year exceeds $100,000. 
 

  

	 	2.2.2.
	 
	An Employee who is employed by a Subsidiary that is not a Participating Subsidiary; and 
 

  

	 	2.2.3.
	 
	An Employee who is treated as owning stock possessing five percent or more of the total combined voting power or value of all classes of stock of the Company or
any of its Subsidiaries (for purposes of this provision, the rules of section 424(d) of the Code shall apply in determining stock ownership of any Employee). 
 

  
 2.3.  Eligibility Restrictions.    An Employee who elects to terminate participation in the Plan in accordance with Section 3.5, who
sells Non-Vested Shares in accordance with Section 6.2 or who makes a hardship withdrawal from the Company 401(k) 

 
 7 

 Plan shall be prohibited from participating in the Plan until the Entry Date coinciding with or next following the six month anniversary of the
date of such withdrawal. 
  
 ARTICLE III 
  
 PARTICIPATION 
  
 3.1.  Commencement of Participation.    An eligible Employee may become a Participant in the Plan on any Entry Date by completing an enrollment and payroll deduction form and delivering it to the
Company in accordance with procedures established by the Committee. 
  
 3.2.  Payroll
Deduction.    At the time a Participant files his enrollment and payroll deduction form, he shall elect to have after-tax contributions made from his Compensation at the rate of any whole percentage from 2% through 15%. A
Participant may contribute no more than $625 per month to the Plan. 
  
 3.3.  Participants’
Accounts.    All payroll deductions made from a Participant’s Compensation shall be credited to his Account and used to purchase shares of Stock in accordance with Article V. 
  
 3.4.  Changes in Payroll Deductions.    The percentage designated by a Participant as his rate of
contribution under Section 3.2 shall automatically apply to increases and decreases in his Compensation. Except as provided in Section 3.5, a Participant may elect to change the rate of his contributions to any other permissible rate effective as of
the first day of the first payroll period of any Offering Period provided the Participant timely files an election to 

 
 8 

 change his contribution rate in accordance with procedures established by the Committee before the effective date of the election. 

 
 3.5.  Suspension and Resumption of Payroll Deductions.    A Participant may terminate
contributions under the Plan as of the first day of any payroll period by filing a timely election in accordance with procedures established by the Committee before the effective date of the termination. In addition, all contributions by a
Participant shall be automatically suspended upon such Participant’s sale of Non-Vested Shares in accordance with Section 6.2 or a hardship withdrawal from the Company 401(k) Plan. A Participant whose contributions have been terminated in
accordance with the preceding provisions, may resume contributions under the Plan in accordance with Section 2.3. 
  
 3.6.  Statutory Limitation.    No Employee shall be granted an option which permits his rights to purchase Stock under the Plan and all other employee stock purchase plans (as described in section
423 of the Code) of the Company or any of its Subsidiaries to accrue at a rate which exceeds $25,000 of fair market value of such Stock (determined at the time such option is granted) for each calendar year in which such option is outstanding at any
time. For purposes of this Section 3.6: 
  

	 	3.6.1.
	 
	the right to purchase stock under an option accrues when the option (or any portion thereof) first becomes exercisable during the calendar year; 

 
 9 

  

	 	3.6.2.
	 
	the right to purchase stock under an option accrues at the rate provided in the option, but in no case may such rate exceed $25,000 of fair market value of such
stock (determined at the time such option is granted) for any one calendar year; and 
 

  

	 	3.6.3.
	 
	a right to purchase stock which has accrued under one option granted pursuant a plan may not be carried over to any other option. 

  
 ARTICLE IV 
  
 OFFERINGS 
  
 4.1.  Quarterly
Offerings.    The Plan shall be implemented through quarterly offerings of the Company’s Stock. Each Offering Period shall begin on the Offering Commencement Date and shall end on the Offering Termination Date.

  
 4.2.  Purchase Price.    The “Purchase Price” per share of Stock
with respect to each Offering Period shall be 85 percent of the official closing price of the Stock on the Offering Termination Date on the national securities exchange upon which the Stock may then be listed (the “Exchange”) or if no sale
of Stock occurred on such date, the official closing price on the next preceding date on which a sale did occur. 
  
 4.3.  Maximum Offering.    The maximum number of shares of Stock which shall be issued under the Plan, subject to adjustment upon changes in capitalization of the Company as provided in Section
10.3, shall be 190,000 shares. If the total number of shares 

 
 10 

 which would be purchased during any Offering Period exceeds the maximum number of available shares, the Committee shall make a pro rata
allocation of the available shares in a manner that it determines to be equitable and the balance of payroll deductions credited to the Accounts of Participants shall be returned to such Participants as soon as administratively practicable.

  
 ARTICLE V 
  
 PURCHASE OF STOCK 
  
 5.1.    Automatic
Exercise.    On each Offering Termination Date, each Participant shall automatically and without any act on his part be deemed to have purchased Stock to the full extent of the payroll deductions credited to his Account
during the Offering Period ending on such Offering Termination Date. 
  
 5.2.    Fractional
Shares.    Fractional shares of Stock may be purchased under the Plan. 
  
 5.3.    Acquisition of Stock.    The Company may acquire Stock for use under the Plan from authorized but unissued shares, treasury shares, in the open market or in privately negotiated
transactions. 
  
 ARTICLE VI 
  
 VESTING 
  
 6.1.    Vesting of
Purchased Stock.    All shares of Stock purchased pursuant to Section 5.1 shall be allocated as Non-Vested Shares to the appropriate Participant’s Account as 

 
 11 

 of the Offering Termination Date on which such shares are purchased and subject to Section 6.3 shall become Vested Shares on the second annual
anniversary of such Offering Termination Date. 
  
 6.2.    Sale of Non-Vested
Shares.    A Participant may not withdraw Non-Vested Shares allocated to his Account but may sell such Non-Vested Shares in accordance with the following rules: 
  

	 	6.2.1.
	 
	A Participant who elects to sell Non-Vested Shares must notify the Company in accordance with procedures established by the Committee and must sell all
Non-Vested Shares allocated to his Account; 
 

  

	 	6.2.2.
	 
	All sales of Non-Vested Shares shall be executed by the Company on the first Offering Termination Date that occurs at least 10 Business Days after the date the
Participant properly notifies the Company of his election to sell; 
 

  

	 	6.2.3.
	 
	The Company may (i) elect to purchase the Non-Vested Shares or (ii) arrange a sale of the Non-Vested Shares to a third party; 
 

 

	 	6.2.4.
	 
	The amount a Participant shall receive for the Non-Vested Shares he elects to sell shall be 85% of the official closing price of the Stock on the Exchange on
the applicable Offering Termination Date; and 
 

 
 12 

  

	 	6.2.5.
	 
	The proceeds from the sale of Non-Vested Shares, as described in Section 6.2.4, shall be paid to the Participant as soon as administratively practicable
following the applicable Offering Termination Date. 
 

  
 6.3.    Change in
Control.    Upon a Change in Control, all Non-Vested Shares shall become fully vested. 
  
 ARTICLE
VII 
  
 ACCOUNTING 
  
 7.1.    General.    The Committee shall establish procedures to account for payroll deductions made by a Participant, the number of shares of Stock
purchased on a Participant’s behalf and the number of Vested Shares and Non-Vested Shares allocated to a Participant’s Account. 
  
 7.2.    Allocation of Stock.    Shares of Stock allocated to a Participant’s Account shall be registered in the name of the Company or its nominee for the benefit of the
Participant on whose behalf such shares were purchased. 
  
 7.3.    Accounting for
Distributions.    Shares of Stock distributed or sold from a Participant’s Account shall be debited from his Account on a first-in first-out basis. 
  
 7.4.    Account Statements.    Each Participant shall receive at least semi-annual statements of all payroll deductions and
shares of Stock allocated to his Account together with all other transactions affecting his Account. 

 
 13 

  
 ARTICLE VIII 
  
 WITHDRAWALS AND DISTRIBUTIONS 
  
 8.1.    Withdrawal of Vested Shares.    A Participant may elect to withdraw any number of Vested Shares allocated to his Account by providing notification to the Company in accordance
with procedures established by the Committee. As soon as administratively practicable following notification of a Participant’s election to withdraw Vested Shares, the Committee shall cause a certificate representing the number of shares to be
withdrawn to be delivered to the Participant. 
  
 8.2.    Withdrawal of Non-Vested
Shares.    A Participant may not withdraw any Non-Vested Shares allocated to his Account, but may elect to sell all of his Non-Vested Shares in accordance with the procedures set forth in Section 6.2. 
  
 8.3.    Distribution Upon Termination.    A terminated Participant’s Vested Shares
shall remain allocated to his Account until such Participant (or his executor, in the event of his death) elects to withdraw such shares in accordance with Section 8.1. A terminated Participant’s Non-Vested Shares shall remain allocated to his
Account until the earlier of: (i) the date the Participant (or his executor, in the event of his death) elects to sell such shares to the Company pursuant to Section 6.2, or (ii) such shares become Vested Shares pursuant to Section 6.1.

  
 8.4.    Distribution of Payroll Deductions.    In the event a
Participant terminates his employment with the Company or his participation in the Plan is terminated pursuant to Section 3.5, any payroll deductions allocated to his Account and not yet applied to purchase 

 
 14 

 Stock in accordance with Section 5.1 shall be distributed to him in a cash lump sum as soon as administratively practicable thereafter.

  
 ARTICLE IX 
  
 ADMINISTRATION 
  
 9.1.  Appointment of
Committee.    The Board shall appoint a Committee to administer the Plan, which shall consist of no fewer than three members. The Board may from time to time appoint members to the Committee in substitution for or in addition
to members previously appointed and may fill vacancies, however caused, in the Committee. 
  
 9.2.  Authority of Committee.    The Committee shall have the exclusive power and authority to administer the Plan, including without limitation the right and power to interpret the provisions of
the Plan and make all determinations deemed necessary or advisable for the administration of the Plan. All such actions, interpretations and determinations which are done or made by the Committee in good faith shall be final, conclusive and binding
on the Company, the Subsidiaries, the Participants and all other parties and shall not subject the Committee to any liability. 
  
 9.3.  Committee Procedures.    The Committee may select one of its members as its Chairman and shall hold its meetings at such times and places as it shall deem advisable and may hold telephone
meetings. A majority of its members shall constitute a quorum. All determinations of the Committee shall be made by a majority of its members. Any decision or determination reduced to writing and signed by a majority of the members of the Committee

 
 15 

 shall be as fully effective as if it had been made by a majority vote at a meeting duly called and held. The Committee may appoint a secretary
and shall make such rules and regulations for the conduct of its business as it shall deem advisable. 
  
 9.4.  Expenses.    The Company and its Subsidiaries will pay all expenses incident to the operation of the Plan, including the costs of recordkeeping, accounting fees, legal fees and the costs of
delivery of stock certificates to Participants. However, neither the Company nor any of the Subsidiaries will pay any expenses incurred in connection with the sale of Vested Shares of Stock credited to a Participant’s Account. Expenses in
connection with any such sale will be deducted from the proceeds of sale prior to any remittance to the Participant. 
  
 ARTICLE X 
  
 MISCELLANEOUS 
  
 10.1.  Transferability.    Neither payroll deductions credited to a Participant’s Account nor any rights with regard to the
purchase of Stock under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way by the Participant other than by will or the laws of descent and distribution. 
  
 10.2.  Status as Owner.    Each Participant shall be deemed to legally own all shares of Stock allocated to his Account and, subject to
the vesting requirements of Article VI, shall be entitled to exercise all rights associated with ownership of the shares, including, without limitation, the right to vote such shares in all matters for which Stock is entitled to vote, receive
dividends, if any, and tender such shares in response to a tender offer. 

 
 16 

  
 10.3.  Adjustment 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, or any distribution to stockholders other than a cash dividend, or any change in the corporate structure of a Subsidiary, the Board may make appropriate adjustment in the number and kind
of shares authorized by the Plan and any other adjustments to outstanding options as it determines appropriate. 
  
 10.4.  Amendment and Termination.    The Board or its authorized delegate shall have the power and authority to terminate or amend the Plan (including without limitation the power and authority to
make any amendment that may be deemed to effect the interests of any Participant adversely); provided, however, that the Board or its authorized delegate shall not, without the approval of the shareholders of the Company (i) increase the maximum
number of shares which may be offered under the Plan (except pursuant to Section 10.3); (ii) modify the requirements as to eligibility for participation in the Plan; or (iii) in any other way cause the Plan to fail the requirements of section 423 of
the Code. 
  
 The Plan and all rights of Employees hereunder shall terminate: (i) at any time, at the discretion of
the Board, in which case any cash balance in Participants’ Accounts shall be refunded to such Participants as soon as administratively possible; or (ii) on the Offering Termination Date on which Participants become entitled to purchase a number
of shares of Stock that exceeds the maximum number of shares available under the Plan. 

 
 17 

  
 10.5.  No Employment Rights.    The Plan
does not, directly or indirectly, create in any Employee any right with respect to continuation of employment by the Company or any Subsidiary and it shall not be deemed to interfere in any way with the Company’s or any Subsidiary’s right
to terminate, or otherwise modify, an Employee’s terms of employment at any time. 
  
 10.6.  Withholding.    To the extent any payments or distributions under this Plan are subject to Federal, state or local taxes, the Company or any Subsidiary are authorized to withhold all
applicable taxes. The Company or any Subsidiary may satisfy its withholding obligation by (i) withholding shares of Stock allocated to a Participant’s Account, (ii) deducting cash from a Participant’s Account, or (iii) deducting cash from
a Participant’s other compensation. A Participant’s election to participate in the Plan authorizes the Company or the appropriate Subsidiary to take any of the actions described in the preceding sentence. 
  
 10.7.  Use of Funds.    All payroll deductions held by the Company under this Plan may be used by the
Company for any corporate purpose and the Company shall not be obligated to hold such payroll deductions in trust or otherwise segregate such amounts. 
  
 10.8.  Governing Law.    Except to the extent superseded by Federal law, the laws of the State of Delaware will govern all matters relating to the Plan.

  
 * * * * 

 
 18 

  
 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:
 	 	 

 

 
 19

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]