Document:

Prepared by R.R. Donnelley Financial -- Form of Faba Supply Agreement

 Exhibit 10.12 
  
  
 FABA PET BOTTLE SUPPLY AGREEMENT 
  
 THIS IS A FABA PET BOTTLE SUPPLY AGREEMENT (the “Agreement”), dated as of             
            , 2002, by and among Faba Sirma SPA, an indirect subsidiary of Crown (“Supplier”) and Constar Plastics of Italy S.r.l., an indirect subsidiary of Constar
(“Purchaser”). 
  
 Background 
  
 Supplier will supply directly to the Constar Customers on Purchaser’s behalf and Purchaser will purchase from Supplier on the terms and conditions set forth herein,
PET Bottles blown at Supplier’s facility in Reggio Emilia, Italy (the “Faba Facility”). 
  
 Terms 
  
 NOW, THEREFORE, in consideration of the mutual covenants herein and intending
to be legally bound hereby, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 1.1.    Certain Definitions.  Capitalized terms not defined in this Agreement shall have the meanings ascribed to them in the Corporate Agreement, dated as of the date hereof, between Crown and
Constar. As used in this Agreement, the following terms shall have the respective meanings set forth below: 
  
 1.1.1. “AAA” has the meaning set forth in Section 7.4. 
  
 1.1.2.    “Affiliate” of any Person means any Person, directly or indirectly, controlling, controlled by or under common control with such Person. 
  
 1.1.3. “Agreement” has the meaning set forth in the preamble to the Agreement. 
  
 1.1.4. “Bankruptcy Event” means with respect to any party, as applicable, (a) the making by such party of
any assignment for the benefit of creditors of all or substantially all of its assets or the admission by such party in writing of inability to pay all or substantially all of its debts as they become due; (b) the adjudication of such party as
bankrupt or insolvent or the filing by such party of a petition or application to any tribunal for the appointment of a trustee or receiver for such party or any substantial part of the assets of such party; or (c) the commencement of any voluntary
or involuntary bankruptcy proceedings (and, with respect to involuntary bankruptcy proceedings, the failure to be discharged within 60 days), reorganization 
 

 
proceedings or similar proceeding with respect to such party or the entry of an order appointing a trustee or receiver or approving a petition in any such proceeding. 
  
 1.1.5. “Blow Molds” has the meaning set forth in Section 5.1. 
  
 1.1.6. “Business Day” shall mean any day other than a Saturday, a Sunday or a day on which banks in Rome,
Italy are authorized or obligated by law or executive order to not open or remain closed. 
  
 1.1.7.
“Constar” means Constar International Inc., a Delaware corporation. 
  
 1.1.8.
“Constar Customers” has the meaning set forth in Section 2.1. 
  
 1.1.9.
“Control,” “controlled by” and “under common control with”, as applied to any Person, means the possession, directly or indirectly, of the power to direct the vote of a majority of the votes that
may be cast in the election of directors (or other Persons acting in similar capacities) of such Person or otherwise to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities
or by contract or otherwise. 
  
 1.1.10. “Crown” means Crown Cork & Seal
Company, Inc., a Pennsylvania corporation. 
  
 1.1.11. “Faba Facility” has the
meaning set forth in the Background section of this Agreement. 
  
 1.1.12. “Force Majeure
Event” has the meaning set forth in Section 6.4. 
  
 1.1.13. “Initial Term”
has the meaning set forth in Section 6.1. 
  
 1.1.14. “Person” means an individual,
a corporation, a partnership, an association, a governmental entity, a trust or other entity or organization. 
  
 1.1.15. “PET” shall mean polyethylene terephthalate. 
  
 1.1.16.
“PET Bottles” means all PET Bottles blown at the Faba Facility as of the Initial Public Offering Date, which types of PET Bottles are set forth, for the avoidance of doubt, on Schedule A hereto (the “Existing PET
Bottles”). PET Bottles shall also include any other PET Bottles that are identified and mutually agreed upon by Supplier and Purchaser after the Initial Public Offering Date from time to time (the “New PET Bottles”).

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

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

 

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 1.1.19. “Release Request” has the meaning set
forth in Section 2.1. 
  
 1.1.20. “Supplier” has the meaning set forth in the
preamble to the Agreement. 
  
 1.1.21. “Term” has the meaning set forth in Section
6.1. 
  
 1.1.22. “Transfer Date” has the meaning set forth in Section 5.1.

  
 ARTICLE II 
  
 PURCHASE OF REQUIREMENTS 
  
 2.1.     Purchase
Requirements. 
  
 (a)  Subject to the other provisions of this Article II, Purchaser
agrees to purchase from Supplier 100% of Purchaser’s requirements for PET Bottles for Purchaser’s customers specified on Schedule B hereto (the “Constar Customers”). 
  
 (b)  At least 31 days prior to the beginning of each year, Purchaser shall provide Supplier with a non-binding
forecast for the PET Bottles that it will purchase from Supplier during such year, which shall represent a good faith estimate of Purchaser’s requirements for PET Bottles for the Constar Customers. On or before the 15th day of each month, Purchaser shall submit a firm order for production during the following month (a
“Production Request”), which shall not exceed the maximum capacity of the [***] blowing machine located at the Faba Facility, and a non-binding forecast for the following two months, which forecast shall represent a good faith
estimate of Purchaser’s requirements for such two months. Purchaser shall be deemed to purchase, and shall be responsible for payment to Supplier for, any PET Bottles blown by Supplier in response to a Production Request, regardless of whether
Purchaser submits a Release Request for such PET Bottles. In addition, to maximize utilization of the Faba Facility, Supplier may blow PET Bottles based upon Purchaser’s non-binding forecasts. If Purchaser provides its written consent to such
production, Purchaser shall be deemed to purchase, and shall be responsible for payment to Supplier for, any PET Bottles blown by Supplier in response to such forecast, regardless of whether Purchaser submits a Release Request for such PET Bottles.
At any time that Supplier is holding greater than [***] PET Bottles in inventory at the Faba Facility in response to Production Requests or approved production based on Purchaser’s forecasts, Supplier shall promptly notify Purchaser of the
number and type of PET Bottles held in inventory and shall not be obligated to accept Production Requests or to produce and hold PET Bottles until such inventory is reduced below [***] PET Bottles. 
  
 (c)  From time to time Purchaser may submit requests to release PET Bottles for shipment (“Release
Requests”) to Supplier. So long as the aggregate amount of PET Bottles released during a month does not exceed that month’s Production Request and agreed existing 

	 	

 [***] Confidential treatment  requested 
 

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stockholdings, Supplier shall satisfy any Release Request; provided, that Supplier shall not be obligated, but shall use commercially reasonable efforts, to ship PET Bottles pursuant to a
Release Request on less than 5 days notice. In the event that the aggregate amount of PET Bottles requested for release during a month exceeds that month’s Production Request and agreed existing stockholdings, Supplier shall use its
commercially reasonable efforts to satisfy the Release Request. With respect to Release Requests that (in the aggregate, if applicable) do not exceed the relevant month’s Production Request, Supplier will ship no less than [***] of the released
PET Bottles to the Constar Customers or to any other location directed by Purchaser, OTIF (on time, in full). The measurement of OTIF shipments shall conform to historic practices at Constar facilities located in Europe. If Supplier is unable to
satisfy a Release Request, Supplier shall promptly notify Purchaser. If Supplier is unable to satisfy a Release Request that (in the aggregate, if applicable) did not exceed the relevant month’s Production Request and Purchaser is able to
secure an alternative supply, such PET Bottles shall not be included in calculating the requirements commitment in clause (a) above. Purchaser shall be deemed to purchase, and shall be responsible for payment to Supplier for, any PET Bottles shipped
by Supplier in response to a Release Request, regardless of whether the Constar Customer ultimately pays Purchaser for such PET Bottles. Supplier shall not be responsible for collecting payment from the Constar Customers for PET Bottles blown and
shipped hereunder. 
  
 (d)  Purchaser shall provide Supplier, or shall direct the Constar
Customers to provide Supplier, at Supplier’s cost, with multi-layer PET preforms necessary to blow any multi-layer PET Bottles. In addition, Purchaser may, at its option, provide Supplier, or direct the Constar Customers to provide Supplier, at
Supplier’s cost, with monolayer PET preforms necessary to blow monolayer PET Bottles. All invoices from Purchaser to Supplier for multi-layer or monolayer preforms shall be paid by Supplier on a net-30 days basis from the last day of the month
in which such invoice was dated. Supplier shall not be deemed to breach this Agreement as a result of, and shall have no liability to Purchaser for, any failure to perform its obligations hereunder that results from the failure of Purchaser to
provide Supplier with multi-layer PET preforms or, if Purchaser so elects, monolayer PET preforms necessary to blow PET Bottles. 
  
 (e)  Within 30 calendar days of the end of each three-month period ending March 31, June 30, September 30 and December 31 of each year during the Term, Purchaser shall provide Supplier a
certificate from a member of it’s senior management attesting to Purchaser’s conformance to its obligations under Section 2.1(a) of this Agreement during such three-month period. If Purchaser does not provide such certificate to Supplier
within such 30 calendar day period or upon Supplier’s request, Purchaser shall permit Supplier’s outside accountants access to the books and records of Purchaser in order to review the books and records relating to purchases of such PET
Bottles by the Constar Customers. 
  
 (f)  Notwithstanding the foregoing, Supplier shall
not be required to blow and/or ship any specific PET Bottles if Supplier reasonably determines that any such blowing or shipping will result in a material violation of any applicable governmental laws or regulations. 

	 	

	 	[***]    Confidential
	 treatment requested 
 

 

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 (g)  The parties agree to use good faith efforts to
modify the provisions of this Section 2 if either party is unsatisfied with the operation of such provisions; provided, that no party shall be under any obligation to agree to any such changes. 
  
 ARTICLE III 
  
 PRICE 
  
 3.1.    Pricing.  (a) For Existing PET Bottles,
Purchaser will pay to Supplier the prices set forth on Schedule A hereto for the relevant PET Bottles purchased pursuant to this Agreement. 
  
 (b) For New PET Bottles, mutually agreeable pricing will be established between Supplier and Purchaser on a case-by-case basis. Supplier shall have no obligation to supply, and Purchaser shall have no
obligation to purchase, New PET Bottles for which pricing cannot be agreed upon and any such New PET Bottles shall not be calculated in the requirements commitment set forth in Section 2.1(a). If pricing of New PET Bottles is agreed upon, such New
PET Bottles shall be calculated in such requirements commitment. 
  
 (c) In the event that Supplier is unable to blow
multi-layer beer bottles that meet the specifications of the Constar Customers, Purchaser shall provide commercially reasonable technical support to assist Supplier in meeting those standards. If, after the provision of such support for a period of
at least 14 days, Supplier is unable to meet the multi-layer specifications, the parties will negotiate in good faith to establish specifications that Supplier can reasonably meet and shall adjust the price for such multi-layer beer bottles
accordingly. 
  
 ARTICLE IV 
  
 DELIVERY 
  
 4.1.    Delivery.  Delivery of all PET Bottles sold under this Agreement shall be F.O.B. Supplier at the Faba Facility. Title and risk of loss or damages to all PET Bottles shall pass to Purchaser
upon shipment, F.O.B. point, by Supplier to Purchaser. Purchaser shall pay for all freight and other costs associated with shipment of PET Bottles to the location of delivery. For PET Bottles delivered F.O.B. Supplier, Supplier shall furnish the
facilities and personnel for loading PET Bottles at the F.O.B. point. 
  
 4.2.    Payment.  Supplier shall provide invoices to Purchaser for PET Bottles and, if applicable, shipping or other charges upon the earlier of (i) release of such PET Bottles pursuant to a
Release Request or (ii) 90 days from the date of acceptance of the Production Request pursuant to which such PET Bottles were produced. All invoices from Supplier to Purchaser for PET Bottles shall be paid by Purchaser on a net-30 days basis from
the last day of the month in which such invoice was provided. 
 

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 ARTICLE V 
  
 BLOW MOLDS 
  
 5.1.    Provision of Blow Molds.  The blow
molds necessary to blow the PET Bottles (the “Blow Molds”) shall be provided to Supplier by Purchaser or by a Constar Customer at Purchaser’s direction. The Blow Molds shall remain the property of Purchaser or the Constar
Customer, as the case may be, and shall be held at the Faba Facility by Supplier. Within 90 days after the last day of the Term, Purchaser shall remove, at its expense, and shall be solely responsible for removing, the Blow Molds from the Faba
Facility (the “Transfer Date”). Purchaser shall provide Supplier with written notice of the Transfer Date at least 60 Business Days prior to the Transfer Date. If the Blow Molds shall not be removed on or prior to the Transfer Date,
Purchaser shall reimburse Supplier all costs and expenses incurred by Supplier on account of maintaining and storing the Blow Molds at the Faba Facility, and any other incidental, consequential or other damages or losses incurred by Supplier as a
result of such non-removal until Purchaser removes the Blow Molds. Notwithstanding the preceding sentence or anything else in this Agreement to the contrary, Supplier shall have no responsibilities or obligations of any kind, including, without
limitation, as to operation, storage, insurance or maintenance, with respect to the Blow Molds after the Transfer Date. 
  
 5.2.    Insurance.  Supplier shall maintain adequate insurance with respect to the Blow Molds insuring against such risks customarily insured against in accordance with Supplier’s practice
until their removal from the Faba Facility by Purchaser in accordance with Section 5.1 or until 90 days after the Term, whichever is earlier. Supplier shall, upon Purchaser’s reasonable request, provide evidence of insurance and appropriate
loss payable endorsements in favor of Purchaser. Supplier hereby assumes and shall bear the entire risk of damage, whether or not insured against, of the Blow Molds arising out of the operation of the Blow Molds while such Blow Molds are in the
possession of Supplier or arising out of Supplier’s breach of this Agreement, negligence or willful misconduct. 
  
 5.3.    Maintenance and Improvements.  During the Term, Supplier shall perform all maintenance, excluding mold refurbishments, reasonably required to keep the Blow Molds in good operating order,
repair, condition and appearance and in accordance with normal industry standards, normal wear and tear and impairments of value excepted. Purchaser shall be responsible for the cost of repairing or replacing any Blow Molds that are defective or
malfunctioning (except to the extent that such defects or malfunctions arise as a result of Supplier’s failure to maintain the Blow Molds in accordance with the first sentence of this Section 5.3). Any modifications, refurbishments or
improvements to the Blow Molds shall be made, and any new Blow Molds necessary to blow PET Bottles shall be provided, by Purchaser at no cost to Supplier. 
  
 5.4.    Access.  Prior to the Transfer Date, representatives of Purchaser may, at their own expense, during normal business hours and upon reasonable notice,
inspect the Blow Molds and have access to the employees whose primary responsibilities relate to the blowing of PET Bottles
 
 

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hereunder; provided, that a representative of Supplier shall be present at all such times; and, provided, further, that no exercise of such inspection shall materially
interfere with the normal operation of the Blow Molds or the business of Supplier. 
  
 5.5.    Permitted Use.  Supplier shall not use the Blow Molds for any use other than the production of PET Bottles for Purchaser hereunder. 
  

ARTICLE VI 
  
 TERM, DEFAULT AND OTHER
PROVISIONS 
  
 6.1.    Term.  This Agreement shall commence upon the Initial
Public Offering Date and shall continue until December 31, 2003 (the “Initial Term”). Purchaser may, at its option, extend the Initial Term until June 30, 2004 on the terms contained herein (the Initial Term, as so extended, the
“Term”), by giving Supplier written notice of such extension no more than 120 or less than 60 days written notice thereof. 
  
 6.2.    Events of Default.  (a) The following shall be considered events of default and shall give rise to a right of Supplier to terminate this Agreement within 45
days of Supplier’s discovery of such event of default: (i) Purchaser fails to make timely payments for invoiced PET Products, subject to a 10-day cure period after notice regarding such breach, (ii) Purchaser or Constar suffers a Bankruptcy
Event, (iii) Purchaser materially breaches any other applicable provision of this Agreement, subject to a 30-day cure period after notice regarding such breach or (iv) Purchaser or Constar experiences a change of Control such that Purchaser or
Constar is controlled by a competitor of either Constar or Crown. 
  
 (b)  The following shall be
considered events of default and shall give rise to a right of Purchaser to terminate this Agreement within 45 days of Purchaser’s discovery of such event of default: (i) Supplier or Crown suffers a Bankruptcy Event, (ii) Supplier materially
breaches any other applicable provision of this Agreement, subject to a 30-day cure period after notice regarding such breach or (iii) Supplier or Crown experiences a change of Control such that Supplier or Crown is controlled by a competitor of
either Constar or Crown. 
  
 (c)  Each party shall provide the other party with prompt notice upon
discovery of a default by the other party; provided, that failure to give such notice shall not limit or restrict the ability of a party to terminate this Agreement subject to the cure periods provided in this Section 6.2. 
  
 6.3.    No Waiver.  If the party not in default continues to make or accept shipments, as the case
may be, despite the other party’s default, such action shall not constitute a waiver of the default, or in any way affect the rights under this Agreement of the party not in default. A waiver by either party of any breach of any provision shall
not constitute a waiver of any other breach of such provision or of any other provision. 
 

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 6.4.    Force Majeure.  Neither Supplier nor
Purchaser shall be responsible for any failure or delay in performance due to causes beyond the reasonable control of the affected party that render performance commercially impracticable (a “Force Majeure Event”). Any party, if
affected by any such cause, may, upon written notice to the other specifying the reasons therefor, reduce its obligations to the other by an amount not in excess of the quantity that it is unable to deliver or purchase due to such cause. In the
event such a curtailment by either party continues in whole or in part for a period of 5 continuous days, then, in the case of a Supplier Force Majeure Event, Purchaser may arrange for temporary supply of its requirements until Supplier can resume
delivery of PET Bottles to Purchaser, and, in the case of a Purchaser Force Majeure Event, Purchaser shall use its best efforts to sell to third parties those PET Bottles which would have been delivered to the Constar Customers on Purchaser’s
behalf (in accordance with Purchaser’s delivery schedule) in the absence of such curtailment. Notwithstanding anything to the contrary in this Agreement, this provision shall not apply to or otherwise excuse the failure to pay any uncontested
costs or fees due under this Agreement when due (including payment for PET Bottles produced in accordance with Section 2.1(b), regardless of whether Purchaser submits a Release Request for such PET Bottles). 
  
 6.5.    Warranty; Limitation of Liability.  (a) Supplier warrants that all PET Bottles sold to
Purchaser (i) shall be free from defects in workmanship and materials, except for any defects arising out of actions taken by or at the direction of Purchaser or materials provided by or on behalf of Purchaser and (ii) shall comply with the
historical specifications for Existing PET Bottles and with any agreed upon specifications for New PET Bottles. Supplier’s liability under this warranty, whether in contract or tort, shall be limited exclusively to the repayment of the purchase
price of the defective PET Bottles. Supplier will make no other warranties with respect to the PET Bottles. OTHER THAN THE ABOVE WARRANTY, SUPPLIER MAKES NO WARRANTY, WHETHER OF MERCHANTABILITY, FITNESS OR OTHERWISE, EXPRESS OR IMPLIED, IN FACT OR
BY LAW, AND SUPPLIER SHALL HAVE NO FURTHER OBLIGATION OR LIABILITY UNDER THE ABOVE WARRANTY OR WITH RESPECT TO THE PET BOTTLES. SUBJECT TO THE FOLLOWING SENTENCE, SUPPLIER SHALL IN NO EVENT BE LIABLE FOR PUNITIVE, CONSEQUENTIAL OR INCIDENTAL
DAMAGES. 
  
 (b)  Purchaser agrees to waive all claims for shortages in the PET Bottles ordered and
received hereunder unless such claims are submitted in writing to Supplier within 30 days after receipt of notice from the Constar Customer of such shortage. 
  
 (c)  Subject to the above provisions, Purchaser shall not bring any other action arising hereunder unless such action is brought within one year after the date such cause of action accrues.

  
 (d)  Supplier shall not be liable for, and Purchaser assumes responsibility for, all personal injury
and property damage resulting from the handling, possession, use or resale of the PET Bottles produced hereunder after such PET Bottles are delivered to the Constar Customer, whether the same is used alone or in combination with other substances,
except to the
 
 

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

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transfers to Purchaser all rights of every kind, nature or description that Supplier may have in or to such inventions, discoveries, technological knowledge or know-how. 
  
 6.6.4    Return of Confidential Information.  Upon the written request of a party which has disclosed
information covered by Section 6.6 in written, printed or other tangible form, all such readily available information and all copies thereof, including samples or materials, and all notes or other materials derived from such information shall be
returned to the party which disclosed such information. 
  
 6.7.    Right of
Setoff.  Purchaser and Supplier shall waive all rights of setoff and recoupment either may have against the other or any of the other’s Affiliates with respect to all amounts which may be owed from time to time pursuant to this
Agreement. 
  
 6.8.    Indemnification.    With respect to PET Bottles
blown by Supplier pursuant to this Agreement, Purchaser shall defend, indemnify and hold Supplier and its Affiliates and their respective officers, directors, employees, successors and permitted assigns harmless against any and all liability,
damage, loss, cost or expense arising out of (i) the manufacture, use or sale of such PET Bottles or any products liability arising therefrom (except any liability directly related to and directly caused by the gross negligence or willful misconduct
of Supplier in manufacturing the PET Bottles) and (ii) all claims, suits or actions for bodily injuries suffered in connection with the operations or maintenance of the Blow Molds and arising out of Purchaser’s breach of this Agreement,
negligence or willful misconduct. Furthermore, Purchaser shall indemnify, defend and hold Supplier and its Affiliates and their respective officers, directors, employees, successors and permitted assigns harmless against all damages, claims,
judgments, decrees, costs, expenses and demands for unfair competition or infringement of any United States or foreign trademark or copyright as a direct result of Supplier’s manufacture of PET Bottles for Purchaser conforming to the
specifications required by Purchaser or the failure of such conforming PET Bottles to comply with any federal, state, local or other law or regulation. Supplier shall not settle any claim for which it is entitled to indemnification hereunder without
the written consent of Purchaser, which consent shall not be unreasonably withheld. 
  
 ARTICLE VII 
  
 MISCELLANEOUS 
 7.1.    Notices. 
  
 All notices and other communications required or
permitted hereunder shall be in writing, shall be deemed duly given upon actual receipt, and shall be delivered (a) in person, (b) by registered or certified mail, postage prepaid, return receipt requested or (c) by facsimile or other generally
accepted means of electronic transmission (provided that a copy of any notice delivered pursuant to this clause (c) shall also be sent pursuant to clause (b)), addressed as follows: 
  
 if to Purchaser, to: 
 

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 Constar International Inc. 
 One Crown Way 
 Philadelphia, PA 19154-4599 
 Attention: 
 Facsimile: 

 
 if to Supplier, to: 
  
 Faba Sirma SPA 
 Sant’llario d’Enza
(Reggio Emilia) 
 Stada XXV Luglio, 172 
 Italy 
 Attention: Paolo Minardi 
 Facsimile: 
  
 with a copy to: 
  
 Crown Cork & Seal Company, Inc. 
 One Crown Way 
 Philadelphia, PA 19154 
 Attention: 
 Facsimile: 
  
 or to such other addresses or telecopy numbers as may be specified by like notice to the other parties. 
  
 7.2.    Independent Contractor.  None of the parties is now, nor shall it be made by this Agreement, an agent or legal representative
of the other party for any purpose, and neither party has any right or authority to create any obligation, express or implied, on behalf of the other party, to accept any service of process upon it, or to receive any notices of any kind on its
behalf. All activities by Supplier hereunder shall be carried on by Supplier as an independent contractor and not as an agent for Purchaser. 
  
 7.3.    Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. 
  
 7.4.    Dispute Resolution: Negotiation and Arbitration. 
  

7.4.1.  The parties shall attempt to resolve any dispute arising out of or relating to this Agreement promptly by negotiation in good faith between
executives who have authority to settle the dispute. A party shall give the other party written notice of any dispute not resolved in the ordinary course of business. Within 10 Business Days after delivery of such notice, the party receiving notice
shall submit to the other a written response thereto. The notice and the response shall include: (i) a statement of each party’s position(s) regarding the matter(s) in dispute and a
 
 

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summary of arguments in support thereof, and (ii) the name and title of the executive who will represent that party and any other Person who will accompany that executive. 

 
 7.4.2.  Within 10 Business Days after delivery of the notice, the designated executives shall meet at
a mutually acceptable time and place, and thereafter, as often as they reasonably deem necessary, to attempt to resolve the dispute. All reasonable requests for information made by one party to any other shall be honored in a timely fashion. All
negotiations conducted pursuant to this Section 7.4 (and any of the parties’ submissions in contemplation hereof) shall be deemed Confidential Information and shall be treated by the parties and their representatives as compromise and
settlement negotiations under the United States Federal Rules of Evidence and any similar state rules. 
  
 7.4.3.  If the matter in dispute has not been resolved within 30 days after the first meeting of the executives to attempt to resolve the dispute, either party may submit the dispute to binding arbitration to the
Philadelphia, Pennsylvania office of the American Arbitration Association (“AAA”) in accordance with the procedures set forth in the Commercial Arbitration Rules of the AAA. 
  
 7.4.4.  The Commercial Arbitration Rules of the AAA, as modified or revised by the provisions of this Section 7.4, shall govern any arbitration
proceeding hereunder. The arbitration shall be conducted by three arbitrators selected pursuant to Rule 13 of the Commercial Arbitration Rules, and pre-hearing discovery shall be permitted if and only to the extent determined by the arbitrator to be
necessary in order to effectuate resolution of the matter in dispute. The arbitrator’s decision shall be rendered within 30 days of the conclusion of any hearing hereunder and the arbitrator’s judgment and award may be entered and enforced
in any court of competent jurisdiction. 
  
 7.4.5.  Resolution of disputes under the
procedures of this Section 7.4 shall be the sole and exclusive means of resolving disputes arising out of or relating to this Agreement; provided, however, that nothing herein shall preclude the Parties from seeking in any court of competent
jurisdiction temporary or interim injunctive relief to the extent necessary to preserve the subject matter of the dispute pending resolution under this Section 7.4. 
  
 7.5.  Consent to Jurisdiction. 
  
 Supplier and Purchaser hereby agree and consent to be subject to the exclusive jurisdiction of the United States District Court for the Eastern District of Pennsylvania, and in the absence of such
Federal jurisdiction, the parties consent to be subject to the exclusive jurisdiction of any state court located in the City of Philadelphia and hereby waive the right to assert the lack of personal or subject matter jurisdiction or improper venue
in connection with any such suit, action or other proceeding. In furtherance of the foregoing, each of the parties (i) waives the defense of inconvenient forum, (ii) agrees not to commence any suit, action or other proceeding arising out of this
Agreement or any transactions contemplated hereby other than in any such court (other than the mandatory submission to arbitration in accordance with Section 7.4), and (iii) agrees that a final judgment in any such suit, action or other proceeding
shall be conclusive
 
 

 12 

 
and may be enforced in other jurisdictions by suit or judgment or in any other manner provided by law. 
  
 7.6.    Entire Agreement.  This Agreement constitutes the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes any
prior agreement or understanding, written or oral, relating to the subject matter of this Agreement. 
  
 7.7.    Successors/No Third Party Beneficiaries.  This Agreement shall not be assignable, except that Supplier may, after giving notice to Purchaser, assign its rights and obligations under this
Agreement so long as the assignee agrees in writing to assume Supplier’s obligations hereunder; provided, that Supplier shall not assign its rights and obligations under this Agreement to a competitor of Purchaser in the PET preform and
container industry without the prior written consent of Purchaser. This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and permitted assigns. Nothing in this Agreement, express
or implied, is intended to or shall (a) confer on any person other than the parties hereto and their respective successors or permitted assigns any rights (including third party beneficiary rights), remedies, obligations or liabilities under or by
reason of this Agreement, or (b) constitute the parties hereto as partners or as participants in a joint venture. This Agreement shall not provide third parties with any remedy, claim, liability, reimbursement, cause of action or other right in
excess of those existing without reference to the terms of this Agreement. 
  
 7.8.    Severability.  If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be held invalid or unenforceable by a court of
competent jurisdiction, the remainder of this Agreement or the application of any such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term and
provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. If any of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, scope, activity or subject,
it shall be construed by limiting and reducing it, so as to be valid and enforceable to the extent compatible with the applicable law or the determination by a court of competent jurisdiction. 
  

7.9.    Counterparts.  This Agreement and any amendments hereto may be executed in any number of counterparts, each of which shall
be deemed an original instrument, but all of which together shall constitute but one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile shall be as effective as delivery of a manually
executed counterpart of this Agreement. 
  
 7.10.    Section Headings; Interpretive
Issues.  The section and paragraph headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. Supplier and Purchaser have participated jointly
in the drafting and negotiation of this Agreement. In the event any ambiguity or question of
 
 

 13 

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

 14 

  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written. 
  
  
 CONSTAR PLASTICS OF ITALY
S.R.L. 
  
 By:                                     
                                        
                  
 Name: 
 Title: 
  
 CROWN CORK ITALY S.P.A. 
  
 By:
                                        
                                        
               
 Name: 
 Title: 
 

 15 

 Schedule A 
  
 Existing PET Bottles and Prices 
  
 [***] 
  

	 	

	 	[***]    Confidential
	 treatment requested 
 

 

 Schedule B 
  
 Constar Customers 
  
 [***] 
  

	 	

	 	[***]    Confidential 
	treatment requestedPrepared by R.R. Donnelley Financial -- Tax Sharing and Indemnfication Agreement

  Exhibit 10.13 
   
 TAX SHARING AND INDEMNIFICATION AGREEMENT 
  
 THIS IS A
TAX SHARING AND INDEMNIFICATION AGREEMENT (the “Agreement”), dated as of the Effective Date, made by and among Crown, Cork & Seal Company Inc., a Pennsylvania corporation (“Crown”) on behalf of itself and each member of the
Crown Group, Constar International Inc., a Delaware corporation (“Constar”), on behalf of itself and each member of the Constar Group, and their respective successors. 
  
 Background 
  
  A.    Crown plans to sell approximately 55% of its Constar stock to the public in a public offering (the “Offering”). As a result of the Offering, Constar and members of the Constar Group will no longer
be members of the Crown Group for the purpose of filing consolidated federal income Tax Returns. Pursuant to this Agreement, Members of the Constar Group will no longer file consolidated, combined or unitary income Tax Returns (or participate in
group relief or any similar arrangement) with any members of the Crown Group for foreign Tax purposes and for state Tax purposes unless otherwise required by law; 
   
 B.    The Parties are entering into this Agreement: to provide for the Parties’ respective liabilities for Taxes; to provide certain indemnities;
and to provide for various administrative matters relating to Taxes including: (1) the preparation and filing of Tax Returns along with the payment of Taxes due and payable, (2) the retention and maintenance of relevant records necessary to prepare
and file appropriate Tax Returns, as well as the provision for appropriate access to those records by the Parties to this Agreement, (3) the conduct of audits, examinations, and proceedings by appropriate governmental entities that could result in a
redetermination of Taxes, and (4) the cooperation of all Parties with one another in order to fulfill their duties and responsibilities under this Agreement and under the Code and other applicable law; and 
  
 C.    It is the intent of the Parties that Crown shall economically bear the burden of all Taxes that are due under
any consolidated, combined or unitary Tax Return (or group relief or similar arrangement) that includes any member or members of the Constar Group and at least one member of the Crown Group that is not a member of the Constar Group for periods up to
and ending with the completion of the Offering (a “Crown Consolidated Return”) and that Constar or the appropriate member of the Constar Group shall economically bear the burden of all Taxes otherwise imposed upon or attributable to the
members of the Constar Group. 
  
 Terms 
  
 THEREFORE, in consideration of the mutual promises, covenants, and conditions contained in this Agreement, and intending to be legally bound hereby, the Parties hereto
agree as follows: 

 ARTICLE I 
 DEFINITIONS

  
  Section 1.1.  Definitions.    As used in this Agreement (including
the introduction and Background section hereof), the following definitions apply (such meanings to be equally applicable to both the singular and plural focus of the terms involved): 
   
 ADJUSTMENT means any proposed or final change in the Tax Liability of a Taxpayer. 
  
 CODE means the Internal Revenue Code of 1986, as amended, and the Treasury regulations promulgated thereunder, including any comparable successor
legislation. 
  
 COMBINED STATE TAX RETURN means a consolidated, combined or unitary state Tax Return
for a taxable period beginning after the Effective Date that is required to include one or more members of the Crown Group and one or more members of the Constar Group. 
  
 CONSTAR GROUP means: (i) as of any relevant date after the Effective Date, Constar and its Subsidiaries determined as of such date; and (ii) as of any
relevant date on or before the Effective Date, Constar and those Persons that are Subsidiaries of Constar immediately after the Effective Date, whether or not such Persons were Subsidiaries of Constar before the Offering. 
  
 CONSTAR RETURNS is defined at Section 2.2 hereof. 
  
 CROWN CONSOLIDATED RETURN has the meaning set forth in paragraph C of the Background section hereof. 
  

CROWN GROUP means, as of any relevant date, Crown and its Subsidiaries, determined as of such date. 
  
 DISPUTES is defined at Section 6.1(a) hereof. 
  
 EFFECTIVE DATE means the date on which the Offering closes. 
  
 FINAL DETERMINATION means the final resolution of any Tax matter. A Final Determination shall result from the first to occur of: 
  

	 	1.
	the expiration of 30 days after the IRS’ acceptance of a Waiver of Restrictions on Assessment and Collection of Deficiency in Tax and Acceptance of
Overassessment on Form 870 or 870-AD (or any successor comparable form) (the “Waiver”), except as to reserved matters specified therein, or the expiration of 30 days after acceptance by any other taxing authority of a comparable agreement
or form under the laws of any other 
 

 

 2 

	 	
jurisdiction, including state, local, and foreign jurisdictions; unless, within such period, the Taxpayer gives notice to the other Party to this Agreement of the Taxpayer’s intention to
attempt to recover all or part of any amount paid pursuant to the Waiver by the filing of a timely claim for refund; 
 

  

	 	2.
	a decision, judgment, decree, or other order by a court of competent jurisdiction that is not subject to further judicial review (by appeal or otherwise) and
has become final; 
 

  

	 	3.
	the execution of a closing agreement under Code section 7121, the acceptance by the IRS of an offer in compromise under Code section 7122, or resolution of any
Tax matter under Code section 7123 or any similar resolution program, or comparable agreements or resolution program under the laws of any other jurisdiction, including state, local, and foreign jurisdictions; except as to reserved matters specified
therein; 
 

  

	 	4.
	the expiration of the time for filing a claim for refund or for instituting suit in respect of a claim for refund that was disallowed in whole or part by the
IRS or any other taxing authority; 
 

  

	 	5.
	the expiration of the applicable statute of limitations; or 
 

  

	 	6.
	an agreement by the Parties hereto that a Final Determination has been made. 
 

  
 FINAL STATEMENT is defined at Section 3.3 hereof. 
  
 INTERIM STATEMENT is defined at Section 3.3 hereof. 
  
 IRS means the U.S. Internal Revenue Service. 
  
 IRS INTEREST RATE means the rate of
interest imposed from time to time on underpayments of income tax pursuant to Code section 6621(a)(2). 
  
 NON-PRIMARY PARTY is defined at Section 4.3(a) hereof. 
  
 OFFERING has the meaning
set forth in paragraph A of the Background section hereof. 
  
 PARTY means, on the one hand, Crown
and any member of the Crown Group and, on the other hand, Constar and any member of the Constar Group, as the case may be. 
  
 PERSON means any corporation, business trust, joint venture, association, company, partnership or limited liability company. 
 

 3 

  
 PRIMARY PARTY is defined at Section 4.3(a) hereof. 

 
 STRADDLE PERIOD is defined at Section 3.2(a) hereof. 
  
 STRADDLE PERIOD RETURN is defined at Section 3.2(a) hereof. 
  
 SUBSIDIARY means with respect to Crown or Constar, any Person of which Crown or Constar, respectively, controls or owns, directly or indirectly, more than
50% of the stock or other equity interest entitled to vote on the election of members of the board of directors or similar governing body except that neither Constar nor any Subsidiary of Constar shall be considered a Subsidiary of Crown after the
Effective Date. 
  
 TAXES means all federal, state, local and foreign gross or net income, gross
receipts, withholding, payroll, franchise, transfer, sales, use, value added, estimated or other taxes of any kind whatsoever or similar charges and assessments, including all interest, penalties and additions imposed with respect to such amounts
which any member of the Crown Group or the Constar Group is required to pay, collect or withhold, together with any interest and any penalties, additions or additional amounts imposed with respect thereto. 
  
 TAXPAYER means the Crown Group, the Constar Group or any member thereof as the context may require. 

 
 TAX BENEFIT means a reduction in the Tax Liability of a Taxpayer for any taxable period. Except as otherwise
provided in this Agreement, a Tax Benefit shall be deemed to have been realized or received from a Tax Item in a taxable period only if and to the extent that the Tax Liability of the Taxpayer for such period, after taking into account the effect of
the Tax Item on the Tax Liability of such Taxpayer in all prior periods, is less than it would have been if such Tax Liability were determined without regard to such Tax Item. 
  
 TAX ITEM means any item of income, gain, loss, deduction, credit, recapture of credit, or any other item which may have the effect of increasing or
decreasing Taxes paid or payable. 
  
 TAX LIABILITY means the net amount of Taxes due and paid or
payable for any taxable period (including, as the context may require, the amount of such Taxes that would be due if computed on a separate company basis), determined after applying all Tax credits and all applicable carrybacks or carryovers for net
operating losses, net capital losses, unused general business Tax credits, or any other Tax Items arising from a prior or subsequent taxable period, and all other relevant adjustments. 
  
 TAX RETURNS means all reports, estimates, declarations of estimated tax, information statements and returns relating to, or required to be filed in
connection with any Taxes, including information returns or reports with respect to backup withholding and other payments to third parties. 
 

 4 

 ARTICLE II 
 PREPARATION AND
FILING OF TAX RETURNS 
  
  Section 2.1.  Returns Prepared by
Crown.    Crown shall prepare and file, or cause to be prepared and filed, all Crown Consolidated Returns (including all Straddle Period Returns) and all Combined State Tax Returns. 
   
 Section 2.2.  Returns Prepared by Constar.    Constar shall prepare and file, or cause to be prepared
and filed, all Tax Returns of, or with respect to, one or more members of the Constar Group other than the Crown Consolidated Returns (the “Constar Returns”). 
  
  Section 2.3.  Taxable Period Ends on Effective Date.    Unless prohibited under applicable law, a taxable period of each member of the
Constar Group that is included in a Crown Consolidated Return that includes the Effective Date shall end at the close of the Effective Date. 
   
 Section 2.4.  Combined State Tax Returns.    Crown and Constar shall take all actions permitted by applicable law to file their returns other than on the basis of a
Combined State Tax Return and if permitted by law, shall cooperate to revoke any existing elections to file Combined State Tax Returns or to make any election, filing, statement or any similar action necessary to permit filing on a separate company
basis and to avoid filing Combined State Tax Returns. 
  
  
 ARTICLE III

 PAYMENT OF TAXES UPON FILING AND UPON SUBSEQUENT ADJUSTMENT 
  
 Section 3.1.  Taxes Generally.    Except as provided in Section 3.2 of this Agreement, Crown shall pay or cause to be paid and shall indemnify and hold Constar and
the members of the Constar Group harmless against all Tax Liabilities that arise under each Crown Consolidated Return. Constar shall pay or cause to be paid and shall indemnify and hold Crown and the members of the Crown Group harmless against all
Tax Liabilities that arise under each Constar Return. Crown and Constar shall share all Tax Liabilities arising under Combined State Tax Returns in accordance with Section 3.3 hereof. 
  
 Section 3.2.  Straddle Periods.    If, for purposes of a Crown Consolidated Return, a taxable period of any member of the Constar Group
includes the Effective Date but does not end on the Effective Date (as otherwise generally provided under Section 2.3 of this Agreement) (a “Straddle Period”), Crown shall pay or cause to be paid and shall indemnify and hold Constar and
the members of the Constar Group harmless against the Tax Liabilities attributable to the affected member or members of the Constar Group for the portion of such tax period ending on the Effective Date and Constar shall pay or cause to be paid and
shall indemnify and hold Crown and the members of the Crown Group harmless against the Tax Liabilities attributable to the affected member or members of the Constar Group for the remainder of such tax period beginning with the day after the
Effective Date. Tax Returns for such Straddle Periods shall be referred to as “Straddle Period Returns.” The determination of 
 

 5 

 
Tax Liabilities up to and following the Effective Date shall be based upon an interim closing of the books of the affected member or members of the Constar Group as of the opening of the day
following the Effective Date and shall otherwise follow the principles of Section 3.3. Crown shall determine the amounts owed by Constar under this Section 3.2 and provide to Constar a statement showing the amount owed by Constar within 20 days of
the due date of any Straddle Period Return (determined without regard to applicable extensions). Constar shall pay to Crown its portion of Taxes determined under this Section 3.2 for Straddle Period Returns to Crown no less than 10 days prior to the
due date of any Straddle Period Return (determined without regard to applicable extensions). Interest shall accrue at a rate of 8% on any payment required by this Section 3.2 not made within the time specified in the immediately preceding sentence.
Crown shall refund to Constar the excess of any payment made by Constar over the amount calculated following the principles of this Section 3.2 applied to the tax shown due and payable on any Straddle Period Return as filed. Crown shall prepare a
second statement showing any additional amount owed by Constar or any amount payable by Crown to Constar 30 days after the filing of any Combined State Tax Return. Constar shall pay to Crown any amount owed under this Section 3.3 no less than 5 days
after receiving an Interim Statement or Final Statement. Crown shall pay any amount owed to Constar under this Section 3.2 no less than 5 days after Crown delivers the Final Statement. Interest shall accrue at a rate of 8% on any payment required by
this Section 3.2 not made within the time specified in the two preceding sentences. 
  
  Section
3.3.  Tax Liability under Combined State Tax Returns.    Crown shall pay or cause to be paid and shall indemnify and hold Constar and the members of the Constar Group harmless against, all Tax Liabilities due and
payable with respect to each Combined State Tax Return to the extent such Tax Liabilities are attributable to any member of the Crown Group. Constar shall pay or cause to be paid to Crown and shall indemnify and hold Crown and the members of the
Crown Group harmless against all Tax Liabilities due and payable with respect to each Combined State Tax Return to the extent such Tax Liabilities are attributable to any member of the Constar Group. For purposes of this Section 3.3, the portion of
Tax Liabilities attributable to a member shall be determined by allocating the Tax due and payable with respect to a Combined State Tax Return among the members in the same proportion that each such member’s taxable income, determined on a
separate company basis, bears to the sum of the separate taxable incomes of all members having separate taxable income (and disregarding losses of any member). The excess of the Tax Liability of a member determined on a separate company basis over
the allocable portion of the Tax Liability of such member as determined under the immediately preceding sentence shall be paid by such member to the other member or members having losses in direct proportion to the reduction in Tax Liability
resulting from the inclusion of such loss member or members. In no event shall this Section 3.3 require a member of either the Constar Group or Crown Group to make a payment to another member in the same group. Crown shall determine the amounts owed
under this Section 3.3 and provide to Constar, on a quarterly basis, a statement showing the amount owned by Constar (an “Interim Statement”). Crown shall prepare a final statement showing any additional amount owed by Constar or any
amount payable by Crown to Constar 30 days after the filing of any Combined State Tax Return (a “Final Statement”). Constar shall pay to Crown any amount owed under this Section 3.3 no less than 5 days after receiving an Interim Statement
or Final Statement. Crown 
  

 6 

 
shall pay any amount owed to Constar under this Section 3.3 no less than 5 days after Crown delivers the Final Statement. Interest shall accrue at a rate of 8% on any payment required by this
Section 3.3 not made within the time specified in the two preceding sentences. 
  
  Section
3.4.  Adjustments.    If any Tax Return is examined by a taxing authority and an Adjustment results from such examination, the Party bearing responsibility for such Taxes determined under this Article III shall pay
its share of any additional Tax Liability resulting from the Adjustment, determined in accordance with the principles set forth in Section 3.3, within 30 days following a Final Determination of such Adjustment and any refund, credit or similar
reduction in Tax Liability arising from such Adjustment shall be apportioned among the Parties in accordance with the principles set forth in Section 3.3, provided, however, that if the Adjustment results in an increase in the Tax Liability
of one Party and a Tax Benefit to the other Party, the Party receiving such Tax Benefit, to the extent it is equal to or less than the other Party’s additional Tax Liability, shall pay the amount of such Tax Benefit to such other Party within
30 days after such Tax Benefit is realized. Promptly after receiving notice from the Party having the Adjustment that results in additional Tax Liability, the other Party shall make a claim for any Tax Benefit resulting from such Adjustment, on an
amended Tax Return or in a formal or informal claim filed with the IRS or other taxing authority, unless the amount of such Tax Benefit is immaterial or unless otherwise agreed by the Parties. 
   
 Section 3.5.  Refunds.    If one Party receives a refund in respect of amounts paid by the other
Party to any taxing authority on its behalf, or should any such amounts that would otherwise be refundable to one Party be applied by the taxing authority to obligations of the other Party as determined under this Agreement, then the Party in
receipt of such refund or notification of credit, shall promptly following receipt (or notification of credit), remit such refund (or the amount of such credit) and any related interest to the other Party. 
  
  
 ARTICLE IV 
 COOPERATION AND EXCHANGE OF INFORMATION; AUDITS AND ADJUSTMENTS 
  
 Section
4.1.  Waiver of Carrybacks.    If any member of the Constar Group generates a net operating loss in a taxable period beginning after the Effective Date, Constar hereby agrees to waive (or cause such other member of
the Constar Group to waive) the right to carry back such net operating loss pursuant to Code Section 172(b)(3), so that no such net operating losses will be carried back to any Crown Consolidated Return. Similar procedures shall be followed in any
state or locality where Constar might otherwise have the right to carry back a net operating loss to a Crown Group combined, consolidated or unitary Tax Return. In no circumstances shall Constar have the right to carry back a net operating loss to a
Crown Consolidated Return, and any refund or credit that may be paid to or received by the Crown Group on account of any such carryback shall remain the sole property of the Crown Group. 
  
 Section 4.2.  Tax Return Information. 
  
 (a)  Constar shall, and shall cause each appropriate member of the Constar Group to, provide Crown with all information and other assistance reasonably requested by 
 

 7 

 
Crown to enable Crown to prepare and file Crown Consolidated Returns and Combined State Tax Returns. 
  
  (b)  Crown shall, and shall cause each appropriate member of the Crown Group to, provide Constar with all information and other assistance
reasonably requested by Constar to enable Constar to prepare and file Constar Returns. 
   
 (c)  After filing of the final Crown Consolidated Returns, Crown will inform Constar of the amount of consolidated carryovers which are attributed to Constar and each member of the Constar Group as provided by Treasury
Regulation Section 1.1502-21 or any other similar law or regulation. 
  
 Section 4.3.  Audits and
Adjustments. 
  
 (a)  If Crown or Constar receives in writing from the IRS or any other
taxing authority notice of an Adjustment that may give rise to a payment from the other Party under this Agreement or otherwise affect the other Party’s Taxes, Crown or Constar, as the case may be, shall give written notice of the Adjustment to
the other Party within 30 days of becoming aware of the Adjustment but in no case later than 10 days before Crown or Constar, as the case may be, is required to respond to the IRS or other taxing authority, provided that failure to give such timely
notice shall not relieve the Party entitled to such notification of its obligations hereunder except to the extent actually prejudiced thereby. The Party primarily liable for any Tax Liability with respect to the Adjustment under Article III (the
“Primary Party”) at its own expense shall have control over all matters relating to the Adjustment that may give rise to a payment obligation by the Primary Party, provided, however, that the other Party (the “Non-Primary
Party”) may settle, partially settle, or otherwise resolve any controversy involving the Non-Primary Party’s Taxes to which the particular Adjustment relates, so long as the Non-Primary Party does not settle, partially settle, or otherwise
resolve the controversy in a manner inconsistent with the Primary Party’s position, without the prior written consent of the Primary Party, which consent shall not be unreasonably withheld. 
  

(b)  Constar agrees reasonably to cooperate with Crown in the negotiation, settlement, or litigation of any liability for Taxes of any member
of the Crown Group. 
  
 (c)  Crown agrees reasonably to cooperate with Constar in the
negotiation, settlement, or litigation of any liability for Taxes of any member of the Constar Group. 
  
 (d)  Crown will promptly notify Constar in writing of any Adjustment involving a change in the tax basis of any asset of Constar or any change in any Tax attribute of Constar, specifying the nature of the change so that the
Constar Group will be able to reflect the revised basis or attribute in its tax books and records for periods beginning on or after the Effective Date. 
 

 8 

 ARTICLE V 
 RETENTION OF RECORDS;
STATUTE OF LIMITATIONS 
  
  Section 5.1.  Retention of Records.    Crown
and Constar agree to retain the appropriate records which may affect the determination of the liability for Taxes of any member of the Crown Group or the Constar Group, respectively, until such time as there has been a Final Determination with
respect to such liability for Taxes. A Party may satisfy its obligations under the preceding sentence by allowing the other Party to duplicate records at such other Party’s request and expense. 
   
 Section 5.2.  Statute of Limitations.    Crown and Constar will notify each other in writing of any
waivers or extensions of the applicable statute of limitations that may affect the period for which any materials, records, or documents must be retained. 
  
  

ARTICLE VI 
 RESOLUTION OF DISPUTES 
  
 Section 6.1.  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 6.1; provided, however, that nothing contained herein shall preclude either
Party from seeking or obtaining (i) injunctive relief or (ii) equitable or other judicial relief to enforce the provisions hereof 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 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 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 Executive Officer, and (b) in the case of Constar, the Chief Executive Officer (collectively, the
“Designated Officers”). Such officers shall meet at a mutually acceptable time and place (but in any event no later than 15 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 days, to attempt to resolve the Dispute. 
  
 (c)  If the Dispute has not been resolved by negotiation within 75 days of the first Party’s notice, or if the Parties failed to meet within 30 days of the first Party’s notice, or if 
 

 9 

 
the Designated Officers failed to meet within 60 days of the first Party’s notice, either Party may commence any litigation or other procedure allowed by law. 
  
  
 ARTICLE VII 
 GENERAL 
  
  Section 7.1.  Term of the
Agreement.    This Agreement shall become effective as of the Effective Date and, except as otherwise expressly provided herein, shall continue in full force and effect indefinitely. 
   
 Section 7.2.  Elections Under Code Section 1552.    Nothing in this Agreement is intended to change
or otherwise affect any election made by or on behalf of the Crown Group with respect to the calculation of earnings and profits under Code Section 1552. 
  
 Section 7.3.  Injunctions.    The Parties acknowledge that irreparable damage would occur in the event that any of the provisions of this Agreement were not
performed in accordance with its specific terms or were otherwise breached. The Parties hereto shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically the terms and
provisions hereof in any court having jurisdiction, such remedy being in addition to any other remedy to which they may be entitled at law or in equity. 
  
 Section 7.5.  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 hereto and their respective successors and permitted assigns. 
  
 Section 7.6.  Further Assurances.    Subject to the provisions hereof, the Parties hereto shall make,
execute, acknowledge, and deliver such other instruments and documents, and take all such other actions, as may be reasonably required in order to effectuate the purposes of this Agreement and to consummate the transactions contemplated hereby.
Subject to the provisions hereof, each of the Parties shall, in connection with entering into this Agreement, performing its obligations hereunder and taking any and all actions relating hereto, comply with all applicable laws, regulations, orders,
and decrees, and promptly provide the other Parties with all such information as they may reasonably request in order to be able to comply with the provisions of this sentence. Constar shall cause any Subsidiaries of Constar formed after the date
hereof to comply with all terms of this Agreement and shall use its best efforts to cause Constar Ambalaj Sanayi ve Ticaret A.S. to comply with all terms of this Agreement. 
  
 Section 7.6.  Waivers.    No failure or delay on the part of the Parties in exercising any power or right hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such right or power, preclude any other or further exercise thereof or the exercise of any other right or
power. No modification or waiver of any provision of this Agreement nor consent to any departure by the Parties therefrom shall in any event be effective unless the same shall be 
 

 10 

 
in writing, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. 
  
 Section 7.7.  Change of Law.    If, due to any change in applicable law or regulations or their interpretation by any court of law or
other governing body having jurisdiction subsequent to the date of this Agreement, performance of any provision of this Agreement or any transaction contemplated thereby shall become impracticable or impossible, the Parties hereto shall use their
best efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such provision. 
  
 Section 7.8.  Confidentiality.    Subject to any contrary requirement of law and the right of each Party to enforce its rights hereunder in any legal action, each
Party agrees that it shall keep strictly confidential, and shall cause its employees and agents to keep strictly confidential, any information which it or any of its employees or agents may acquire pursuant to, or in the course of performing its
obligations under, any provision of this Agreement. 
  
 Section
7.9.  Headings.    Descriptive headings are for convenience only and shall not control or affect the meaning or construction of any provision of this Agreement. 
  

Section 7.10.  Counterparts.    For the convenience of the Parties, any number of counterparts of this Agreement may be executed
by the Parties hereto, and each such executed Counterpart shall be, and shall be deemed to be, an original instrument. 
  
 Section 7.11.  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 (or at such other address for
a Party as shall be specified in a notice given in accordance with this Section 7.11 listed below): 
  
  
	 Crown at:
 	    	 Crown Cork & Seal Company, Inc.
 One Crown Way
 Philadelphia, PA 19154
 Attention: Reda Amiry
 Facsimile:
(215) 698-6050
 
	 
	 Constar at:
 	    	 Constar International Inc.
 One Crown Way
 Philadelphia, PA 19154
 Attention: James Cook
 Facsimile:
(215) 552-3700
 

 
   
 or to such other address as any Party may, from time to time, designate in a written
notice given in a like manner. Notice given by hand shall be deemed delivered when received by the 
 

 11 

 recipient. Notice given by mail as set out above shall be deemed delivered 5 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. 
  
 Section 7.12.  Costs and
Expenses.    Unless otherwise specifically provided herein, each Party agrees to pay its own costs and expenses resulting from the fulfillment of its respective obligations hereunder. 
  
 Section 7.13.  Cancellation of Prior Tax Allocation or Tax-Sharing Agreements.    Except as otherwise
expressly provided herein, on or prior to the Effective Date, Crown shall cancel or cause to be canceled all agreements (other than this Agreement) providing for the allocation or sharing of Taxes to which any member of the Constar Group would
otherwise be bound following the Offering. 
  
 Section 7.14.  Interest on Late
Payments.    If a Party delays making any payment beyond the due date hereunder, such Party shall pay interest on the amount unpaid at the IRS Interest Rate for each day and the actual number of days for which any amount due
hereunder is unpaid. 
  
 Section 7.15.  General.    This Agreement shall
constitute the entire agreement between the Parties hereto with respect to the subject matter hereof and shall supersede all prior agreements and undertakings, both written and oral, between the Parties with respect to the subject matter hereof and
thereof. This Agreement may not be amended or modified except (a) by an instrument in writing signed by, or on behalf of, the Parties or (b) by a waiver in accordance with Section 7.6. This Agreement shall be binding upon and inure solely to the
benefit of the Parties hereto and their respective present and future Subsidiaries, and nothing herein, express or implied, is intended to or shall confer upon any third parties any legal or equitable right, benefit or remedy of any nature
whatsoever under or by reason of this Agreement. 
  
 Section 7.16.  Governing Law and
Severability.    This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Pennsylvania. If any term or other provision of this Agreement is invalid, illegal or incapable of being
enforced by any law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any
manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the
original intent of the Parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible. 
 

 12 

 IN WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed by their respective officers, each of
whom is duly authorized, all as of the Effective Date. 
  
  
 
	 CROWN CORK & SEAL COMPANY,
INC.
 
	 
	 By:
 	 	 

	  	 	 Name:
 Title:
 

 
  
  
  
 
	 CROWN CORK & SEAL COMPANY,
INC.
 
	 
	 By:
 	 	 

	  	 	 Name:
 Title:
 

 
  
  
  
 
	 CONSTAR INTERNATIONAL INC.
 
	 
	 By:
 	 	 

	  	 	 Name:
 Title:
 

 
  
  
  
 
	 CONSTAR FOREIGN HOLDINGS, INC.

	 
	 By:
 	 	 

	  	 	 Name:
 Title:
 

 
 

 13 

  
   
  
	 CONSTAR , INC.
 
	 
	 By:
 	 	 

	  	 	 Name:
 Title:
 

 
   
  
  
 
	 CONSTAR INTERNATIONAL HOLLAND (PLASTICS)
B.V.
 
	 
	 By:
 	 	 

	  	 	 Name:
 Title:
 

 
  
  
  
 
	 CONSTAR INTERNATIONAL UK LTD.
 
	 
	 By:
 	 	 

	  	 	 Name:
 Title:
 

 
  
  
  
 
	 CONSTAR PLASTICS OF CANADA
LIMITED
 
	 
	 By:
 	 	 

	  	 	 Name:
 Title:
 

 
  
  
  
 
	 CONSTAR PLASTICS LLC
 
	 
	 By:
 	 	 

	  	 	 Name:
 Title:
 

 
 

 14

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