Document:

exv4w1

Exhibit 4.1

EXECUTION COPY

CRICKET COMMUNICATIONS, INC.

$400,000,000

7.75% Senior Notes due 2020

REGISTRATION RIGHTS AGREEMENT

New York, New York

May 23, 2011

Goldman, Sachs & Co.

200 West Street

New York, New York 10282

Morgan Stanley & Co. Incorporated

1585 Broadway

New York, New York 10036

Deutsche Bank Securities Inc.

60 Wall Street, Floor 43

New York, New York 10005

As Representatives of the Initial Purchasers

Ladies and Gentlemen:

     Cricket Communications, Inc., a corporation organized under the laws of the State of Delaware
(the “Company”), proposes to issue and sell to certain purchasers (the “Initial
Purchasers”), for whom you (the “Representatives”) are acting as representatives, $400
million in aggregate principal amount of additional 7.75% Senior Notes due 2020 of the Company (the
“Notes”), upon the terms set forth in the Purchase Agreement among the Company, the
Guarantors (as defined herein) and the Initial Purchasers dated May 18, 2011 (the “Purchase
Agreement”) relating to the initial placement (the “Initial Placement”) of the Notes.
The Notes will be unconditionally guaranteed on a senior basis by each of the entities listed on
Schedule I (the “Guarantors”) as provided for in the Indenture (as defined herein) (the
“Guarantees” and, together with the Notes, the “Securities”). To induce the
Initial Purchasers to enter into the Purchase Agreement and to satisfy a condition to your
obligations thereunder, the Company and the Guarantors, jointly and severally, agree with you for
your benefit and the benefit of the holders from time to time of the Securities (including the
Initial Purchasers) and the Exchange Notes (as defined herein) (each a “Holder” and,
collectively, the “Holders”), as follows:

     1. Definitions. Capitalized terms used herein without definition shall have their
respective meanings set forth in the Purchase Agreement. As used in this Agreement, the following
capitalized defined terms shall have the following meanings:

 

 

     “Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of
the Commission promulgated thereunder.

     “Additional Interest” shall have the meaning set forth in Section 8 hereof.

     “Affiliate” shall have the meaning specified in Rule 405 under the Act and the terms
“controlling” and “controlled” shall have meanings correlative thereto.

     “Broker-Dealer” shall mean any broker or dealer registered as such under the Exchange Act.

     “Business Day” shall mean any day other than a Saturday, a Sunday or a federal legal holiday
or a day on which banking institutions or trust companies are authorized or obligated by law to
close in New York City.

     “Closing Date” shall mean the date of the first issuance of the Securities.

     “Commission” shall mean the Securities and Exchange Commission.

     “Deferral Period” shall have the meaning indicated in Section 4(k)(ii) hereof.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission promulgated thereunder.

     “Exchange Notes” shall mean debt securities of the Company and the related guarantees of the
Guarantors as provided for in the Indenture identical in all material respects to the Securities
(except that the Additional Interest provisions and transfer restrictions shall be eliminated) to
be issued under the Indenture.

     “Exchange Offer Registration Period” shall mean the one year period following the consummation
of the Registered Exchange Offer, exclusive of any period during which any stop order shall be in
effect suspending the effectiveness of the Exchange Offer Registration Statement, or such shorter
period as will terminate when all Securities covered by the Exchange Offer Registration Statement
have been exchanged pursuant thereto.

     “Exchange Offer Registration Statement” shall mean a registration statement of the Company and
the Guarantors on an appropriate form under the Act with respect to the Registered Exchange Offer,
all amendments and supplements to such registration statement, including post-effective amendments
thereto, in each case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

     “Exchanging Dealer” shall mean any Holder (which may include any Initial Purchaser) that is a
Broker-Dealer and elects to exchange for Exchange Notes any Securities that it acquired for its own
account as a result of market-making activities or other trading activities (but not directly from
the Company, any Guarantor, or any Affiliate of either the Company or any Guarantor).

     “Final Memorandum” shall have the meaning set forth in the Purchase Agreement.

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     “FINRA Rules” shall mean the Conduct Rules and the By-Laws of the Financial Industry
Regulatory Authority (the successor to the National Association of Securities Dealers, Inc.).

     “Guarantors” shall have the meaning set forth in the preamble hereto.

     “Holder” shall have the meaning set forth in the preamble hereto.

     “Indenture” shall mean the indenture relating to the Notes, dated as of November 19, 2010
among the Company, the Guarantors and the Trustee (as defined herein), as the same may be amended
and/or supplemented from time to time in accordance with the terms thereof.

     “Initial Placement” shall have the meaning set forth in the preamble hereto.

     “Initial Purchasers” shall have the meaning set forth in the preamble hereto.

     “Known Exchanging Dealer” shall have the meaning set forth in Section 4(c) hereof.

     “Losses” shall have the meaning set forth in Section 6(d) hereof.

     “Majority Holders” shall mean, on any date, Holders of a majority of the aggregate principal
amount of Securities and/or Exchange Notes, as applicable, registered under a Registration
Statement.

     “Managing Underwriters” shall mean the investment banker or investment bankers and manager or
managers that administer an underwritten offering, if any, under a Shelf Registration Statement.

     “Notes” shall have the meaning set forth in the preamble hereto.

     “Prospectus” shall mean the prospectus included in any Registration Statement (including,
without limitation, a prospectus that discloses information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A under the Act), as
amended or supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Securities or the Exchange Notes covered by such Registration Statement, and all
amendments and supplements thereto, including post-effective amendments and any and all information
incorporated by reference therein.

     “Purchase Agreement” shall have the meaning set forth in the preamble hereto.

     “Registered Exchange Offer” shall mean the offer of the Company and the Guarantors to issue
and deliver to Holders that are not prohibited by any law or policy of the Commission from
participating in such offer, in exchange for the Securities, a like aggregate principal amount of
the Exchange Notes.

     “Registrable Securities” shall mean the Securities; provided, however, that the Securities
shall cease to be Registrable Securities upon the earliest to occur of the following: (i) in the
circumstances contemplated by Section 2, the Securities have been exchanged for Exchange Notes in a
Registered Exchange Offer as contemplated in Section 2; (ii) in the circumstances

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contemplated by
Section 3, a Shelf Registration Statement registering such Securities under the Act has been
declared or becomes effective and such Securities have been sold or otherwise transferred by the
holder thereof pursuant to and in a manner contemplated by such effective Shelf Registration
Statement; (iii) subject to the following sentence, such Securities are actually sold by the holder
thereof pursuant to Rule 144 under the Act under circumstances in which any legend borne by such
Securities relating to restrictions on transferability thereof, under the Act or otherwise, is
removed by the Company or pursuant to the Indenture; or (iv) such Securities shall cease to be
outstanding. The fact that holders of Registrable Securities may become eligible to sell such
Registrable Securities pursuant to Rule 144 under the Act shall not (1) cause such Securities to
cease to be Registrable Securities or (2) excuse the Company’s and the Guarantor’s obligations set
forth in Sections 2 and 3 of this Agreement, including without limitation the obligations in
respect of a Registered Exchange Offer and/or Shelf Registration.

     “Registration Default” shall have the meaning set forth in Section 8 hereof.

     “Registration Statement” shall mean any Exchange Offer Registration Statement or Shelf
Registration Statement that covers any of the Securities or the Exchange Notes pursuant to the
provisions of this Agreement, any amendments and supplements to such registration statement,
including post-effective amendments (in each case including the Prospectus contained therein), all
exhibits thereto and all material incorporated by reference therein.

     “Securities” shall have the meaning set forth in the preamble hereto.

     “Shelf Registration” shall mean a registration effected pursuant to Section 3 hereof.

     “Shelf Registration Period” has the meaning set forth in Section 3(b) hereof.

     “Shelf Registration Statement” shall mean a “shelf” registration statement of the Company and
the Guarantors pursuant to the provisions of Section 3 hereof which covers some or all of the
Securities or Exchange Notes, as applicable, on an appropriate form under Rule 415 under the Act,
or any similar rule that may be adopted by the Commission, amendments and supplements to such
registration statement, including post-effective amendments, in each case including the Prospectus
contained therein, all exhibits thereto and all material incorporated by reference therein.

     “Trustee” shall mean Wells Fargo Bank, National Association, as trustee with respect to the
Securities under the Indenture.

     “Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended, and the rules
and regulations of the Commission promulgated thereunder.

     “underwriter” shall mean any underwriter of Securities in connection with an offering thereof
under a Shelf Registration Statement.

     2. REGISTERED EXCHANGE OFFER. (a) The Company and the Guarantors shall use their
respective reasonable best efforts to prepare and file with the Commission the Exchange Offer
Registration Statement with respect to the Registered Exchange Offer within 150 days after the
Closing Date (or, if such 150th day is not a Business Day, the next succeeding Business Day).

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The Company and the Guarantors shall use their respective reasonable best efforts to cause the Exchange
Offer Registration Statement to become effective under the Act within 270 days after the Closing
Date (or, if such 270th day is not a Business Day, the next succeeding Business Day).

          (b) Upon the effectiveness of the Exchange Offer Registration Statement, the Company and
the Guarantors shall promptly commence the Registered Exchange Offer, it being the objective of
such Registered Exchange Offer to enable each Holder electing to exchange Securities for Exchange
Notes (assuming that such Holder is not an Affiliate of the Company or any Guarantor, acquires the
Exchange Notes in the ordinary course of such Holder’s business, has no arrangements with any
person to participate in the distribution of the Exchange Notes and is not prohibited by any law or
policy of the Commission from participating in the Registered Exchange Offer) to trade such
Exchange Notes from and after their receipt without any limitations or restrictions under the Act.

          (c) In connection with the Registered Exchange Offer, the Company and the Guarantors shall:

               (i) mail or cause to be mailed to each Holder a copy of the Prospectus forming part of the
Exchange Offer Registration Statement, together with an appropriate letter of transmittal and
related documents;

               (ii) keep the Registered Exchange Offer open for not less than 20 Business Days after the date
notice thereof is mailed to the Holders (or longer if required by applicable law);

               (iii) use their respective reasonable best efforts to keep the Exchange Offer Registration
Statement continuously effective under the Act, supplemented and amended as required under the Act,
to ensure that it is available for sales of Exchange Notes by Exchanging Dealers during the
Exchange Offer Registration Period;

               (iv) utilize the services of a depositary for the Registered Exchange Offer, which may be the
Trustee or an Affiliate of the Trustee;

               (v) permit Holders to withdraw tendered Securities at any time prior to the close of business,
New York time, on the last Business Day on which the Registered Exchange Offer is open;

               (vi) prior to effectiveness of the Exchange Offer Registration Statement, if requested by the
staff of the Commission, provide a supplemental letter to the Commission (A) stating that the
Company and the Guarantors are conducting the Registered Exchange Offer in reliance on the position
of the Commission in Exxon Capital Holdings Corporation (pub. avail. May 13, 1988), and
Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991); and (B) including a representation
that the Company and the Guarantors have not entered into any arrangement or understanding with any
person to distribute the Exchange Notes to be received in the Registered Exchange Offer and that,
to the best of the Company’s and the Guarantors’ information and belief, each Holder participating
in the Registered Exchange Offer

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is acquiring the Exchange Notes in the ordinary course of business
and has no arrangement or understanding with any person to participate in the distribution of the
Exchange Notes; and

               (vii) comply in all material respects with all applicable laws.

          (d) As soon as practicable after the close of the Registered Exchange Offer, the Company and
the Guarantors shall:

               (i) accept for exchange all Securities properly tendered and not validly withdrawn pursuant to
the Registered Exchange Offer on or prior to its expiration;

               (ii) deliver or cause to be delivered to the Trustee for cancellation in accordance with
Section 4(r) all Securities so accepted for exchange; and

               (iii) cause the Trustee promptly to authenticate and deliver to each Holder of Securities a
principal amount of Exchange Notes equal to the principal amount of the Securities of such Holder
so accepted for exchange.

          (e) Each Holder hereby acknowledges and agrees that any Broker-Dealer and any such Holder
using the Registered Exchange Offer to participate in a distribution of the Exchange Notes (x)
could not under Commission policy as in effect on the date of this Agreement rely on the position
of the Commission in Exxon Capital Holdings Corporation (pub. avail. May 13, 1988) and
Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991), as interpreted in the Commission’s
letter to Shearman & Sterling dated July 2, 1993 and similar no-action letters; and (y) must comply
with the registration and prospectus delivery requirements of the Act in connection with any
secondary resale transaction, which must be covered by an effective registration statement
containing the selling security holder information required by Item 507 or 508, as applicable, of
Regulation S-K under the Act if the resales are of Exchange Notes obtained by such Holder in
exchange for Securities acquired by such Holder directly from the Company, the Guarantors or one of
their respective Affiliates. Accordingly, each Holder participating in the Registered Exchange
Offer shall be required to represent to the Company and the Guarantors that, at the time of the
consummation of the Registered Exchange Offer:

               (i) any Exchange Notes received by such Holder will be acquired in the ordinary course of
business;

               (ii) such Holder will have no arrangement or understanding with any person to participate in
the distribution of the Securities or the Exchange Notes within the meaning of the Act; and

               (iii) such Holder is not an Affiliate of the Company or any of the Guarantors.

          (f) If any Initial Purchaser determines that it is prohibited by law or Commission policy from
participating in the Registered Exchange Offer with respect to the exchange of Securities
constituting any portion of an unsold allotment, at the request of such Initial Purchaser, the
Company and the Guarantors shall issue and deliver to the person purchasing Securities registered
under a Shelf Registration Statement as contemplated by

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Section 3 hereof from such Initial
Purchaser, in exchange for such Securities, a like principal amount of Exchange Notes.

     3. Shelf Registration. (a) If (i) due to any change in law or applicable interpretations
thereof by the Commission’s staff, the Company determines upon advice of its outside counsel that
it is not permitted to effect the Registered Exchange Offer as contemplated by Section 2 hereof;
(ii) for any other reason the Exchange Offer Registration Statement is not declared effective
within 270 days of the Closing Date (or if such 270th day is not a Business Day, by the next
succeeding Business Day) or the Registered Exchange Offer is not consummated within 30 Business
Days after the Exchange Offer Registration Statement is declared effective; (iii) any Initial
Purchaser so requests with respect to Securities that are not eligible to be exchanged for Exchange
Notes in the Registered Exchange Offer and that are held by it following consummation of the
Registered Exchange Offer; or (iv) any Holder notifies the Company that (A) it is prohibited by law
or Commission policy from participating in the Registered Exchange Offer; (B) it may not resell the
Exchange Notes acquired by it in the Registered Exchange Offer to the public without delivering a
prospectus and the prospectus contained in the Exchange Offer Registration Statement is not
appropriate or available for such resales; or (C) it is a Broker-Dealer and owns Securities
acquired directly from the Company or an Affiliate of the Company, then the Company and the
Guarantors shall effect a Shelf Registration Statement in accordance with subsection (b) below.

          (b) (i) The Company and the Guarantors shall use their respective reasonable best
efforts to file with the Commission within 30 days after such filing obligation arises (or, if
later, 150 days after the Closing Date) and shall use their respective reasonable best efforts to
cause to be declared effective under the Act within 75 days of such filing (or, if later, 270 days
after the Closing Date), pursuant to subsection (a) of this Section 3, a Shelf Registration
Statement relating to the offer and sale of the Securities or the Exchange Notes, as applicable, by
the Holders thereof from time to time in accordance with the methods of distribution elected by
such Holders and set forth in such Shelf Registration Statement; provided, however, that no Holder
shall be entitled to have the Securities held by it covered by such Shelf Registration Statement or
be entitled to use a Prospectus forming a part thereof unless such Holder agrees in writing to be
bound by all of the provisions of this Agreement applicable to such Holder and has returned to the
Company a completed and signed selling security holder questionnaire in reasonable and customary
form by the reasonable deadline for responses set forth therein; and provided further, that with
respect to Exchange Notes received by an Initial Purchaser in exchange for Securities constituting
any portion of an unsold allotment, the Company and the Guarantors may, if permitted by current
interpretations by the Commission’s staff, file a post-effective amendment to the Exchange Offer
Registration Statement containing the information required by Item 507 or 508 of Regulation S-K, as
applicable, in satisfaction of their obligations under this subsection with respect thereto, and
any such Exchange Offer Registration Statement, as so amended, shall be referred to herein as, and
governed by the provisions herein applicable to, a Shelf Registration Statement.

               (ii) The Company and the Guarantors shall use their respective reasonable best efforts to keep
the Shelf Registration Statement continuously effective, supplemented and amended as required by
the Act, in order to permit the Prospectus forming part thereof to be usable by Holders for a
period (the “Shelf Registration Period”) from the date

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the Shelf Registration Statement is
declared effective by the Commission until the first to occur of (A) the second anniversary thereof
or (B) the date upon which all the Securities or Exchange Notes, as applicable, covered by the
Shelf Registration Statement have been sold pursuant to the Shelf Registration Statement or cease
to be outstanding.

               (iii) Subject to the provisions of Section 4 hereof, the Company and the Guarantors shall cause
the Shelf Registration Statement and the related Prospectus and any amendment or supplement
thereto, as of the effective date of the Shelf Registration Statement or such amendment or
supplement, (A) to comply as to form in all material respects with the applicable requirements of
the Act; and (B) not to contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements therein (in the
case of the Prospectus, in the light of the circumstances under which they were made) not
misleading.

     4. Additional Registration Procedures. In connection with any Shelf Registration Statement
and, to the extent applicable, any Exchange Offer Registration Statement, the following provisions
shall apply.

          (a) The Company and the Guarantors shall:

               (i) furnish to the Representatives, not less than five Business Days prior to the filing
thereof with the Commission, a copy of any Exchange Offer Registration Statement and any Shelf
Registration Statement, and each amendment thereof and each amendment or supplement, if any, to the
Prospectus included therein (but excluding all documents incorporated by reference therein after
the initial filing) and shall use their respective reasonable best efforts to reflect in each such
document, when so filed with the Commission, such comments as the Representatives reasonably
propose;

               (ii) include the information (as may be revised at the request or requirement of the
Commission) substantially in the form set forth in Annex A hereto on the facing page of the
Exchange Offer Registration Statement, in Annex B hereto in the forepart of the Exchange Offer
Registration Statement in a section setting forth details of the Registered Exchange Offer, in
Annex C hereto in the underwriting or plan of distribution section of the Prospectus contained in
the Exchange Offer Registration Statement, and in Annex D hereto in the letter of transmittal
delivered pursuant to the Registered Exchange Offer;

               (iii) if requested by an Initial Purchaser, include the information required by Item 507 or
508 of Regulation S-K, as applicable, in the Prospectus contained in the Exchange Offer
Registration Statement; and

               (iv) in the case of a Shelf Registration Statement, include the names of the Holders (to the
extent provided by such Holders) that propose to sell Securities pursuant to the Shelf Registration
Statement as selling security holders; provided, that, the Company shall not be required to include
the name of any Holder that has not complied with the requirements set forth in Section 3(b)(i)
hereof.

     (b) Subject to the following provisions of this Section 4, the Company and the Guarantors
shall use their respective reasonable best efforts to ensure that:

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               (i) any Registration Statement and any amendment thereto and any Prospectus forming a part
thereof and any amendment or supplement thereto complies as to form in all material respects with
the Act; and

               (ii) any Registration Statement and any amendment thereto does not, as of the effective date
of the Registration Statement or such amendment, contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make the statements
therein (in the case of the Prospectus, in light of the circumstances under which they were made)
not misleading.

          (c) The Company and the Guarantors shall advise the Representatives, the Holders of Securities
covered by any Shelf Registration Statement and any Exchanging Dealer under any Exchange Offer
Registration Statement that has provided in writing to the Company or any Guarantor a telephone or
facsimile number and address for notices (a “Known Exchanging Dealer”), and, if requested
by the Representatives or any such Holder or Known Exchanging Dealer, shall confirm such advice in
writing (which notice pursuant to clauses (ii)-(v) hereof shall be accompanied by an instruction to
suspend the use of the Prospectus until the Company and the Guarantors shall have remedied the
basis for such suspension):

               (i) when the relevant Registration Statement and any amendment thereto has been filed with the
Commission and when the Registration Statement or any post-effective amendment thereto has become
effective;

               (ii) of any request by the Commission for any amendment or supplement to the Registration
Statement or the Prospectus or for additional information;

               (iii) of the issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement or the initiation of any proceeding for that purpose;

               (iv) of the receipt by the Company or the Guarantors of any notification with respect to the
suspension of the qualification of the securities included therein for sale in any jurisdiction or
the initiation of any proceeding for such purpose; and

               (v) at a time when a Prospectus is required to be delivered under the Act, of the happening of
any event that requires any change in the Registration Statement or the Prospectus so that, as of
such date, they (A) do not contain any untrue statement of a material fact and (B) do not omit to
state a material fact required to be stated therein or necessary to make the statements therein (in
the case of the Prospectus, in the light of the circumstances under which they were made) not
misleading.

          (d) The Company and the Guarantors shall use their respective reasonable best efforts to
prevent the issuance of any order suspending the effectiveness of any Registration Statement or the
qualification of the securities therein for sale in any jurisdiction, and if issued to obtain as
soon as possible the withdrawal thereof.

          (e) The Company and the Guarantors shall furnish to each Holder of Securities covered by any
Shelf Registration Statement, without charge, at least one copy of such

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Shelf Registration
Statement and any post-effective amendment thereto, and, if the Holder so requests in writing, all
material incorporated therein by reference and all exhibits thereto (including exhibits
incorporated by reference therein).

          (f) The Company and the Guarantors shall, during the Shelf Registration Period, deliver to
each Holder of Securities covered by any Shelf Registration Statement, without charge, as many
copies of the Prospectus (including the preliminary Prospectus) included in such Shelf Registration
Statement and any amendment or supplement thereto as such Holder may reasonably request. Subject
to the provisions of this Section 4, the Company and the Guarantors consent to the use of the
Prospectus or any amendment or supplement thereto by each of the selling Holders of Securities in
connection with the offering and sale of the Securities covered by the Prospectus, or any amendment
or supplement thereto, included in the Shelf Registration Statement (in each case, if such Holder
is properly named in such Prospectus, as amended and supplemented), except during any suspension
period referred to in Section 4(c) above or Section 4(k) below.

          (g) The Company and the Guarantors shall furnish to each Exchanging Dealer which so requests,
without charge, at least one copy of the Exchange Offer Registration Statement and any
post-effective amendment thereto, and, if the Exchanging Dealer so requests in writing, all
material incorporated therein by reference and all exhibits thereto (including exhibits
incorporated by reference therein).

          (h) The Company and the Guarantors shall promptly deliver to each Initial Purchaser, each
Exchanging Dealer and each other person required to deliver a Prospectus during the Exchange Offer
Registration Period, without charge, as many copies of the Prospectus included in such Exchange
Offer Registration Statement and any amendment or supplement thereto as any such person may
reasonably request. Subject to the provisions of this Section 4, the Company and the Guarantors
consent to the use of the Prospectus or any amendment or supplement thereto by any Initial
Purchaser, any Exchanging Dealer and any such other person that may be required to deliver a
Prospectus following the Registered Exchange Offer in connection with the offering and sale of the
Exchange Notes covered by the Prospectus, or any amendment or supplement thereto, included in the
Exchange Offer Registration Statement (in each case, if such Initial Purchaser, Exchanging Dealer
or other person is properly named in such Prospectus, as amended and supplemented), except during
any suspension period referred to in Section 4(c) above or Section 4(k) below.

          (i) Prior to the Registered Exchange Offer or any other offering of Securities pursuant to any
Registration Statement, the Company and the Guarantors shall arrange, if necessary, for the
qualification of the Securities or the Exchange Notes for sale under the laws of such jurisdictions
as any Holder shall reasonably request and shall maintain such qualification in effect so long as
required; provided that in no event shall the Company or any Guarantor be obligated to qualify to
do business in any jurisdiction where it is not then so qualified or to take any action that would
subject it to service of process in suits, other than those arising out of the Initial Placement,
the Registered Exchange Offer or any offering pursuant to a Shelf Registration Statement, in any
such jurisdiction where it is not then so subject, or to subject itself to taxation in any
jurisdiction where it is not now subject.

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          (j) The Company and the Guarantors shall cooperate with the Holders of Securities to
facilitate the timely preparation and delivery of certificates representing Exchange Notes or
Securities to be issued or sold pursuant to any Registration Statement free of any restrictive
legends and in such denominations and registered in such names as Holders may request.

          (k) (i) Upon the occurrence of any event contemplated by subsections (c)(ii) through (v)
above or subsection (k)(ii) below, the Company and the Guarantors shall promptly (or within the
time period provided for by clause (ii) hereof, if applicable) prepare and file a post-effective
amendment to the applicable Registration Statement or an amendment or supplement to the related
Prospectus or file any other required document so that, as thereafter delivered to the Initial
Purchasers of the securities included therein, the Prospectus will not include an untrue statement
of a material fact or omit to state any material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they were made, not
misleading. In such circumstances, the Exchange Offer Registration Period and the Shelf
Registration Period shall be extended by the number of days from and including the date of the
giving of a notice of suspension pursuant to Section 4(c) or Section 4(k)(ii), as applicable, to
and including the date when the Initial Purchasers, the Holders of the Securities covered by any
Shelf Registration Statement and any Known Exchanging Dealer shall have received such amended or
supplemented Prospectus pursuant to this Section or shall have been advised in writing by the
Company and the Guarantors that the Prospectus may be used.

               (ii) Upon the occurrence of any event contemplated by subsections (c)(ii) through (v) above, or
the occurrence or existence of any pending corporate development or any other material event that,
in the reasonable judgment of the Company and the Guarantors, makes it appropriate to suspend the
availability of a Registration Statement and the related Prospectus, the Company and the Guarantors
shall give notice (without notice of the nature or details of such events) to the Holders of the
Securities covered by any Shelf Registration Statement, the Initial Purchasers and any Known
Exchanging Dealer, as applicable, that the Registration Statement is suspended and, upon actual
receipt of any such notice, each such Holder, Initial Purchaser and Exchanging Dealer, as
applicable, agrees not to sell any Registrable Securities pursuant to the Registration Statement
until such Holder, Initial Purchaser or Exchanging Dealer, as applicable, shall have received such
amended or supplemented Prospectus pursuant to this Section or have been advised in writing by the
Company and the Guarantors that the Prospectus may be used. The period during which the
availability of the Shelf Registration and any Prospectus is suspended (the “Deferral
Period”) shall not exceed 45 days in any three-month period or 90 days in any twelve-month
period.

          (l) The Company and the Guarantors shall comply in all material respects with all applicable
rules and regulations of the Commission and shall make generally available to its security holders
an earnings statement satisfying the provisions of Section 11(a) of the Act as soon as practicable
after the effective date of the applicable Registration Statement.

          (m) The Company and the Guarantors may require each Holder of Registrable Securities to be
sold pursuant to any Registration Statement to furnish to the Company and the Guarantors such
information regarding the Holder and the distribution of such securities as the

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Company and the
Guarantors may from time to time reasonably require for inclusion in such Registration Statement,
including such information requested or required by the Commission. The Company and the Guarantors
may exclude from such Registration Statement the Registrable Securities of any Holder that fails to
furnish such information within a reasonable time after receiving such request. Each Holder as to
which Registrable Securities are being included in a Registration Statement agrees to furnish to
the Company all information with respect to such Holder necessary to make any information
previously furnished to the Company by such Holder pursuant to this Section 4(m) or otherwise not
materially misleading.

          (n) In the case of any Shelf Registration Statement, the Company and the Guarantors shall
enter into reasonable and customary agreements (including, if requested, an underwriting agreement
in reasonable and customary form) and take all other reasonably appropriate actions in order to
expedite or facilitate the registration or the disposition of the Securities, and in connection
therewith, if an underwriting agreement is entered into, cause the same to contain indemnification
provisions and procedures no less favorable than those set forth in Section 6 hereof.

          (o) In the case of any Shelf Registration Statement, the Company and the Guarantors shall, if
requested:

               (i) subject to the execution of confidentiality agreements reasonably satisfactory to the
Company, upon reasonable prior written notice and during regular business hours, make reasonably
available for inspection by the Holders of Securities to be registered thereunder, any underwriter
participating in any disposition pursuant to such Registration Statement, and any attorney,
accountant or other agent retained by the Holders or any such underwriter, at the Company’s
principal place of business, all relevant financial and other records and pertinent corporate
documents of the Company, the Guarantors and their respective subsidiaries reasonably requested by
the Holders or any such underwriter, attorney, accountant or agent in connection with any such
Registration Statement as is customary for similar due diligence examinations; provided, however,
that with respect to any attorney engaged by the Holders or any underwriter, the foregoing
inspection and information gathering shall be coordinated by one counsel designated by the Holders
and one counsel designated by the underwriter or underwriters;

               (ii) subject to the execution of confidentiality agreements reasonably satisfactory to the
Company, upon reasonable prior written notice and during regular business hours, cause the
Company’s or Guarantors’ respective officers, directors, employees, accountants and auditors to
supply, at the Company’s principal place of business, all relevant information reasonably requested
by the Holders or any such underwriter, attorney, accountant or agent in connection with any such
Registration Statement as is customary for similar due diligence examinations; provided, however,
that with respect to any attorney engaged by the Holders or any underwriter, the foregoing
inspection and information gathering shall be coordinated by one counsel designated by the Holders
and one counsel designated by the underwriter or underwriters;

               (iii) in connection with an underwritten offering pursuant to such Shelf Registration
Statement, make such representations and warranties to the underwriters, in form,

12

 

substance and
scope as are reasonably and customarily made by issuers to underwriters in primary underwritten
offerings and covering matters including, but not limited to, those set forth in the Purchase
Agreement;

               (iv) in connection with an underwritten offering pursuant to such Shelf Registration
Statement, use reasonable best efforts to obtain opinions of counsel to the Company and the
Guarantors and updates thereof (which counsel and opinions (in form, scope and substance) shall be
reasonably satisfactory to the Managing Underwriters, if any) addressed to the underwriters,
covering such matters concerning the Company and the Guarantors as are customarily covered in
opinions requested in underwritten offerings and such other matters as may be reasonably requested
by such underwriters;

               (v) in connection with an underwritten public offering pursuant to such Shelf Registration
Statement, use reasonable best efforts to obtain “comfort” letters and updates thereof from the
independent certified public accountants of the Company (and, if necessary, any other independent
certified public accountants of any subsidiary of the Company or of any business acquired by the
Company for which financial statements and financial data are, or are required to be, included in
the Registration Statement), addressed to the underwriters, in customary form reasonably acceptable
to such independent certified public accountants and covering matters of the type customarily
covered in “comfort” letters in connection with primary underwritten offerings; and

               (vi) deliver such documents and certificates as may be reasonably requested by the Managing
Underwriters, including those to evidence compliance with Section 4(k) and with any customary
conditions contained in the underwriting agreement or any other customary agreement entered into by
the Company in connection therewith.

The actions set forth in clauses (iii), (iv), (v) and (vi)
of this paragraph (o) shall be performed at each closing under any
underwriting or similar customary agreement as and to the extent
required thereunder.

          (p) In the case of any Exchange Offer Registration Statement, the Company and the Guarantors
shall, if requested by an Initial Purchaser, or by a Broker-Dealer that holds Securities that were
acquired as a result of market making or other trading activities:

               (i) subject to the execution of confidentiality agreements reasonably satisfactory to the
Company, upon reasonable prior written notice and during regular business hours, make reasonably
available for inspection by the requesting party, and any attorney, accountant or other agent
retained by the requesting party, at the Company’s principal place of business, all relevant
financial and other records, pertinent corporate documents and properties of the Company, the
Guarantors and their respective subsidiaries reasonably requested by the requesting party or any
such attorney, accountant or agent in connection with any such Registration Statement as is
customary for similar due diligence examinations; and

               (ii) subject to the execution of confidentiality agreements reasonably satisfactory to the
Company, upon reasonable prior written notice and during regular business hours, cause the
Company’s and the Guarantors’ respective officers, directors, employees,

13

 

accountants and auditors
to supply, at the Company’s principal place of business, all relevant information reasonably
requested by the requesting party as is customary for similar due diligence examinations; provided,
however, that with respect to any attorney engaged by the requesting party, the foregoing
inspection and information gathering shall be coordinated by one counsel designated by the
requesting party.

          (q) If a Registered Exchange Offer is to be consummated, upon delivery of the Securities by
Holders to the Company (or to such other person as directed by the Company) in exchange for the
Exchange Notes, the Company and the Guarantors shall mark, or caused to be marked, on the
Securities so exchanged that such Securities are being cancelled in exchange for the Exchange
Notes. In no event shall the Securities be marked as paid or otherwise satisfied.

          (r) In the event that any Broker-Dealer shall underwrite any Securities or participate as a
member of an underwriting syndicate or selling group or “assist in the distribution” (within the
meaning of the FINRA Rules) thereof, whether as a Holder of such Securities or as an underwriter, a
placement or sales agent or a broker or dealer in respect thereof, or otherwise, the Company and
the Guarantors shall provide reasonable assistance to such Broker-Dealer in making filings in
accordance with the FINRA Rules (which filings shall be at the expense of such Broker-Dealer).

          (s) The Company and the Guarantors shall use their respective reasonable best efforts to take
all other steps necessary to effect the registration of the Securities or the Exchange Notes, as
the case may be, covered by a Registration Statement.

     5. Registration Expenses. The Company and the Guarantors shall bear all expenses incurred
in connection with the performance of their obligations under Sections 2, 3 and 4 hereof (except as
set forth in Section 4(r)) and, in the event of any Shelf Registration Statement, will reimburse
the Holders for the reasonable fees and disbursements of one firm of counsel (which shall initially
be Shearman & Sterling LLP, but which may be another nationally recognized law firm experienced in
securities matters designated by the Majority Holders) in connection with the preparation, filing
and effectiveness of such Shelf Registration Statement. Notwithstanding the foregoing, the Holders
of the Securities or Exchange Notes being registered shall pay all agency fees and commissions and
underwriting discounts and commissions attributable to the sale of such Registrable Securities and
the fees and disbursements of any counsel or other advisors or experts retained by or on behalf of
such Holders (severally or jointly), other than the counsel specifically referred to above.

     6. Indemnification and Contribution. (a) The Company and the Guarantors, jointly and
severally, agree to indemnify and hold harmless each Holder of Securities or Exchange Notes, as the
case may be, covered by any Registration Statement, each Initial Purchaser and, with respect to any
Prospectus delivery as contemplated in Section 4(h) hereof, each Exchanging Dealer, the directors,
officers, employees, Affiliates and agents of each such Holder, Initial Purchaser or Exchanging
Dealer and each person who controls any such Holder, Initial Purchaser or Exchanging Dealer within
the meaning of either Section 15 of the Act or Section 20 of the Exchange Act against any and all
losses, claims, damages or liabilities, joint or several, to which they or any of them may become
subject under the Act, the Exchange Act or other federal or

14

 

state statutory law or regulation, at
common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of
a material fact contained in the Registration Statement as originally filed or in any amendment
thereof, or in any preliminary Prospectus or the Prospectus, or in any amendment thereof or
supplement thereto, or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein
(in the case of any preliminary Prospectus or the Prospectus, in the light of the circumstances
under which they were made) not misleading, and agrees to reimburse each such indemnified party, as
incurred, for any legal or other expenses reasonably incurred by it in connection with
investigating or defending any such loss, claim, damage, liability or action; provided,
however, that the Company and any Guarantor will not be liable in any such case to the
extent that any such loss, claim, damage or liability arises out of or is based upon any such
untrue statement or alleged untrue statement or omission or alleged omission made therein in
reliance upon and in conformity with written information furnished to the Company or any Guarantor
by or on behalf of the party claiming indemnification specifically for inclusion therein. This
indemnity agreement shall be in addition to any liability that the Company and any Guarantor may
otherwise have.

     The Company and the Guarantors also, jointly and severally, agree to indemnify as
provided in this Section 6(a) or contribute as provided in Section 6(d) hereof to Losses of each
underwriter, if any, of Securities or Exchange Notes, as the case may be, registered under a Shelf
Registration Statement, their directors, officers, employees, Affiliates and agents and each person
who controls such underwriter on substantially the same basis as that of the indemnification of the
Initial Purchasers and the selling Holders provided in this Section 6(a) and shall, if requested by any Holder, enter into an
underwriting agreement reflecting such agreement, as provided in Section 4(o) hereof.

          (b) Each Holder of securities covered by a Registration Statement (including each Initial
Purchaser as a Holder, in such capacity) severally and not jointly agrees to indemnify and hold
harmless the Company and the Guarantors, each of their respective directors, officers, employees,
Affiliates and agents and each person who controls the Company or any Guarantor within the meaning
of either the Act or the Exchange Act, to the same extent as the foregoing indemnity from the
Company and the Guarantors to each such Holder, but only with reference to written information
relating to such Holder furnished to the Company or any Guarantor by or on behalf of such Holder
specifically for inclusion in the documents referred to in the foregoing indemnity. This indemnity
agreement will be in addition to any liability that any such Holder may otherwise have.

          (c) Promptly after receipt by an indemnified party under this Section 6 of notice of the
commencement of any action, such indemnified party will, if a claim in respect thereof is to be
made against the indemnifying party under this Section, notify the indemnifying party in writing of
the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve
it from liability under paragraph (a) or (b) above unless and to the extent such failure results in
the forfeiture by the indemnifying party of substantial rights or defenses; and (ii) will not, in
any event, relieve the indemnifying party from any obligations to any indemnified party other than
the indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party
shall be entitled to appoint counsel (including local counsel) of the

15

 

indemnifying party’s choice
at the indemnifying party’s expense to represent the indemnified party in any action for which
indemnification is sought (in which case the indemnifying party shall not thereafter be responsible
for the fees and expenses of any separate counsel, other than local counsel if not appointed by the
indemnifying party, retained by the indemnified party or parties except as set forth below);
provided, however, that such counsel shall be reasonably satisfactory to the indemnified party.
Notwithstanding the indemnifying party’s election to appoint counsel (including local counsel) to
represent the indemnified party in an action, the indemnified party shall have the right to employ
separate counsel (including local counsel), and the indemnifying party shall bear the reasonable
fees, costs and expenses of such separate counsel if (i) the use of counsel chosen by the
indemnifying party to represent the indemnified party would present such counsel with a conflict of
interest; (ii) the actual or potential defendants in, or targets of, any such action include both
the indemnified party and the indemnifying party and the indemnified party shall have reasonably
concluded that there may be legal defenses available to it and/or other indemnified parties that
are different from or additional to those available to the indemnifying party; (iii) the
indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party
to represent the indemnified party within a reasonable time after notice of the institution of such
action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate
counsel at the expense of the indemnifying party; provided that, in each case, not more than one
such separate counsel shall be employed for all indemnified parties. An indemnifying party will
not, without the prior written consent of the indemnified parties (such consent not to be
unreasonably withheld, conditioned or delayed), settle or compromise or consent to the entry of any
judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of
which indemnification or contribution may be sought hereunder (whether or not the indemnified
parties are actual or potential parties to such claim or action) unless such settlement, compromise
or consent (i) includes an unconditional release of each indemnified party from all liability
arising out of such claim, action, suit or proceeding, and (ii) does not include any statement as
to or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified
party. In addition, no indemnified party shall, without the written consent of the indemnifying
party (such consent not to be unreasonably withheld, conditioned or delayed), effect the settlement
or compromise of, or consent to the entry of any judgment with respect to, any pending or
threatened action, claim, suit or proceeding in respect of which indemnification or contribution
may be sought hereunder.

     (d) In the event that the indemnity provided in paragraph (a) or (b) of this Section is
unavailable to or insufficient to hold harmless an indemnified party for any reason, then each
applicable indemnifying party shall have a joint and several obligation to contribute to the
aggregate losses, claims, damages and liabilities (including legal or other expenses reasonably
incurred in connection with investigating or defending any loss, claim, liability, damage or
action) (collectively “Losses”) to which such indemnified party may be subject in such
proportion as is appropriate to reflect the relative benefits received by such indemnifying party,
on the one hand, and such indemnified party, on the other hand, from the Initial Placement and the
Registration Statement which resulted in such Losses; provided, however, that in no
case shall any Initial Purchaser be responsible, in the aggregate, for any amount in excess of the
purchase discount or commission applicable to such Securities, or in the case of an Exchange Note,
as applicable to such Securities, as set forth in the Final Memorandum, nor shall any underwriter
be responsible for any amount in excess of the underwriting discount or commission applicable to
the securities purchased by such underwriter under the Registration Statement

16

 

which resulted in
such Losses. If the allocation provided by the immediately preceding sentence is unavailable for
any reason, the indemnifying party and the indemnified party shall contribute in such proportion as
is appropriate to reflect not only such relative benefits but also the relative fault of such
indemnifying party, on the one hand, and such indemnified party, on the other hand, in connection
with the statements or omissions which resulted in such Losses as well as any other relevant
equitable considerations. Benefits received by the Company and the Guarantors shall be deemed to
be equal to the total net proceeds from the Initial Placement (before deducting expenses) as set
forth in the Final Memorandum. Benefits received by the Initial Purchasers shall be deemed to be
equal to the total purchase discounts and commissions as set forth on the cover page of the Final
Memorandum, and benefits received by any other Holders shall be deemed to be equal to the value of
receiving Securities or Exchange Notes, as applicable, registered under the Act. Benefits received
by any underwriter shall be deemed to be equal to the total underwriting discounts and commissions,
as set forth on the cover page of the Prospectus forming a part of the Registration Statement which
resulted in such Losses. Relative fault shall be determined by reference to, among other things,
whether any untrue or any alleged untrue statement of a material fact or omission or alleged
omission to state a material fact relates to information provided by the indemnifying party, on the
one hand, or by the indemnified party, on the other hand, the intent of the parties and their
relative knowledge, access to information and opportunity to correct or prevent such untrue
statement or omission. The parties agree that it would not be just and equitable if contribution
were determined by pro rata allocation (even if the Holders were treated as one entity for such
purpose) or any other method of allocation which does not take account of the equitable
considerations referred to above. Notwithstanding the provisions of this paragraph (d), no person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.
For purposes of this Section, each person who controls a Holder within the meaning of either the
Act or the Exchange Act and each director, officer, employee and agent of such Holder shall have
the same rights to contribution as such Holder, and each person who controls the Company or any
Guarantor within the meaning of either the Act or the Exchange Act, and each director, officer,
employee, Affiliate and agent of either the Company or any Guarantor shall have the same rights to
contribution as the Company or any Guarantor, subject in each case to the applicable terms and
conditions of this paragraph (d).

          (e) The provisions of this Section will remain in full force and effect, regardless of any
investigation made by or on behalf of any Holder or the Company or any Guarantor or any of the
indemnified parties referred to in this Section 6, and will survive the sale by a Holder of
securities covered by a Registration Statement.

     7. Underwritten Registrations. (a) If any of the Securities or Exchange Notes, as the case
may be, covered by any Shelf Registration Statement are to be sold in an underwritten offering, the
Managing Underwriters shall be selected by the Majority Holders, such selection to be subject to
the Company’s prior written approval, not to be unreasonably withheld, conditioned or delayed.

          (b) No person may participate in any underwritten offering pursuant to any Shelf
Registration Statement, unless such person (i) agrees to sell such person’s Securities or Exchange
Notes, as the case may be, on the basis reasonably provided in any underwriting

17

 

arrangements
approved by the persons entitled hereunder to approve such arrangements; and (ii) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other
documents reasonably required under the terms of such underwriting arrangements.

     8. Registration Defaults and Additional Interest. If (a) on or prior to the 150th day (or,
if such day is not a Business Day, the next succeeding Business Day) following the Closing Date,
the Exchange Offer Registration Statement has not been filed, (b) on or prior to the
30th day after such filing obligation arises (or, if later, the 150th day following the
Closing Date), the Shelf Registration Statement has not been filed, (c) on or prior to the 270th
day (or, if such day is not a Business Day, the next succeeding Business Day) following the Closing
Date the Exchange Offer Registration Statement has not been declared effective, (d) on or prior to
the 75th day after the filing of a Shelf Registration Statement (or, if later, the 270th day
following the Closing Date) such Shelf Registration Statement has not been declared effective, (e)
on or prior to the 30th Business Day following the date the Exchange Offer Registration Statement
is first declared effective, neither the Registered Exchange Offer has been consummated nor the
Shelf Registration Statement has been declared effective, or (f) after the Shelf Registration
Statement has been declared effective, such Registration Statement thereafter ceases to be
effective or usable in connection with resales of Securities or Exchange Notes in accordance with
and during the periods specified in this Agreement (other than as permitted pursuant to Section
4(c) or Section 4(k)(ii)) (each such event referred to in clauses (a) through (f), (a
“Registration Default”), interest (“Additional Interest”) will accrue on the
principal amount of the Securities and the Exchange Notes (in addition to the stated interest on
the Securities and Exchange Notes) from and including the date on which any such Registration
Default shall occur to but excluding the date on which all Registration Defaults have been cured.
During the continuation of a Registration Default, Additional Interest will accrue at a rate of
0.50% per annum during the 90-day period immediately following the occurrence of such Registration
Default and shall increase by 0.50% per annum at the end of each subsequent 90-day period, but in
no event shall such rate exceed 1.50% per annum. If, after the cure of all Registration Defaults
then in effect, there is a subsequent Registration Default, the rate of Additional Interest for
such subsequent Registration Default shall initially be 0.50% regardless of the rate in effect with
respect to any prior Registration Default at the time of cure of such Registration Default.

     All obligations of the Company and the Guarantors set forth in the preceding paragraph
that are outstanding with respect to any Security at the time such Security is exchanged for an
Exchange Note shall survive until such time as all such obligations with respect to such Security
have been satisfied in full.

     9. No Inconsistent Agreements. The Company and each of the Guarantors have not entered
into, and agree not to enter into, any agreement with respect to its securities that is
inconsistent with the rights granted to the Holders herein or that otherwise conflicts with the
provisions hereof.

     10. Amendments and Waivers. The provisions of this Agreement may not be amended,
qualified, modified or supplemented, and waivers or consents to departures from the provisions
hereof may not be given at any time, unless the Company and the Guarantors have obtained the
written consent of the Holders of a majority of the aggregate principal amount of the

18

 

Registrable
Securities then outstanding; provided that, with respect to any matter that directly or
indirectly affects the rights of any Initial Purchaser hereunder, the Company and the Guarantors
shall obtain the written consent of each such Initial Purchaser against which such amendment,
qualification, supplement, waiver or consent is to be effective; provided, further,
that no amendment, qualification, supplement, waiver or consent with respect to Section 8 hereof
shall be effective as against any Holder of Registered Securities unless consented to in writing by
such Holder; and provided, further, that the provisions of this Section 10 may not
be amended, qualified, modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given, unless the Company and the Guarantors have obtained the written
consent of each Holder. Notwithstanding the foregoing (except the foregoing provisos), a waiver or
consent to departure from the provisions hereof with respect to a matter that relates exclusively
to the rights of Holders whose Securities or Exchange Notes, as the case may be, are being sold
pursuant to a Registration Statement and that does not directly or indirectly affect the rights of
other Holders in any material respect may be given by the Majority Holders, determined on the basis
of Securities or Exchange Notes, as the case may be, being sold rather than registered under such
Registration Statement.

     11. notices. All notices and other communications provided for or permitted hereunder
shall be made in writing by hand-delivery, first-class mail, telex, telecopier or air courier
guaranteeing overnight delivery:

          (a) if to a Holder, at the most current address given by such holder to the Company in
accordance with the provisions of this Section 11, which address initially is, with respect to each
Holder, the address of such Holder maintained by the registrar under the Indenture;

          (b) if to the Representatives, initially at the address or addresses set forth in the Purchase
Agreement; and

          (c) if to the Company or any Guarantor, initially at its address set forth in the Purchase
Agreement.

     All such notices and communications shall be deemed to have been duly given when received.

     The Initial Purchasers, the Company and the Guarantors by notice to the other parties may
designate additional or different addresses for subsequent notices or communications.

     12. Remedies. Each Holder, in addition to being entitled to exercise all rights provided to
it herein, in the Indenture or in the Purchase Agreement (if an Initial Purchaser) or granted by
law, including recovery of liquidated or other damages, will be entitled to specific performance of
its rights under this Agreement. The Company and each of the Guarantors agree that monetary
damages would not be adequate compensation for any loss incurred by reason of a breach by it of the
provisions of this Agreement and hereby agrees to waive in any action for specific performance the
defense that a remedy at law would be adequate.

     13. Successors. This Agreement shall inure to the benefit of and be binding upon the
parties hereto, their respective successors and assigns, including, without the need for an express

19

 

assignment or any consent by the Company or any Guarantor thereto, subsequent Holders of Securities
and the Exchange Notes, and the indemnified persons referred to in Section 6 hereof. The Company
and the Guarantors hereby agree to extend the benefits of this Agreement to any Holder of
Securities and the Exchange Notes, and any such Holder may specifically enforce the provisions of
this Agreement as if an original party hereto.

     14. Counterparts. This Agreement may be signed in one or more counterparts, each of
which shall constitute an original and all of which together shall constitute one and the same
agreement.

     15. Headings. The section headings used herein are for convenience only and shall not
affect the construction hereof.

     16. Applicable Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York applicable to contracts made and to be performed in the
State of New York. The parties hereto each hereby waive any right to trial by jury in any action,
proceeding or counterclaim arising out of or relating to this Agreement.

     17. Severability. In the event that any one or more of the provisions contained herein,
or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any
respect for any reason, the validity, legality and enforceability of any such provision in every
other respect and of the remaining provisions hereof shall not be in any way impaired or affected
thereby, it being intended that all of the rights and privileges of the parties shall be
enforceable to the fullest extent permitted by applicable law.

     18. Securities Held by the Company, etc. Whenever the consent or approval of Holders of
a specified percentage of principal amount of Securities or Exchange Notes is required hereunder,
Securities or Exchange Notes, as applicable, held by the Company, the Guarantors or any of their
respective Affiliates (other than subsequent Holders of Securities or Exchange Notes if such
subsequent Holders are deemed to be Affiliates solely by reason of their holdings of such
Securities or Exchange Notes) shall not be counted in determining whether such consent or approval
was given by the Holders of such required percentage.

[Signature Page Follows]

20

 

If the foregoing is in accordance with your understanding of our agreement, please sign and return
to us the enclosed duplicate hereof, whereupon this letter and your acceptance shall represent a
binding agreement between the Company, the Guarantors and the several Initial Purchasers.

	 	 	 	 	 
	 	Very truly yours,

Cricket Communications, Inc.

 	 
	 	By:  	/s/ Walter Z. Berger
 	 
	 	 	Name:  	Walter Z. Berger 	 
	 	 	Title:  	Executive Vice President and

Chief Financial Officer 	 
	 
	 	Leap Wireless International, Inc.

 	 
	 	By:  	/s/ Walter Z. Berger
 	 
	 	 	Name:  	Walter Z. Berger 	 
	 	 	Title:  	Executive Vice President and

Chief Financial Officer 	 
	 
	 	Cricket License Company, LLC

 	 
	 	By:  	  /s/ Walter Z. Berger
 	 
	 	 	Name:  	Walter Z. Berger 	 
	 	 	Title:  	Executive Vice President and

Chief Financial Officer 	 
	 

 

 

The foregoing Agreement is hereby confirmed and accepted as of the date first above written.

	 	 	 	 	 
	 	
Goldman, Sachs & Co.

Morgan Stanley & Co. Incorporated

Deutsche Bank Securities Inc.

 	 
	 	By:  	Goldman, Sachs & Co.
 	 
	 
	 	By:  	                         /s/ Goldman, Sachs & Co.
 	 
	 	 	(Goldman, Sachs & Co.) 	 
	 	 	 
	 	By:  	                         Morgan Stanley & Co. Incorporated
 	 
	 	 	 
	 	By:  	                         /s/ Shamoon Atique
 	 
	 	 	Name:  	Shamoon Atique 	 
	 	 	Title:  	Authorized Signatory 	 
	 	 	 
	 	By:  	                         Deutsche Bank Securities Inc.
 	 
	 	 	 
	 	By:  	                         /s/ Kevin Sherlock
 	 
	 	 	Name:  	Kevin Sherlock 	 
	 	 	Title:  	Managing Director 	 
	 
	 	By:  	                         /s/ Scott Sartorius
 	 
	 	 	Name:  	Scott Sartorius 	 
	 	 	Title:  	Managing Director 	 
	 

For themselves and the other several

Initial Purchasers named in Schedule I

to the Purchase Agreement.

 

 

Schedule I

Guarantors

Leap Wireless International, Inc.

Cricket License Company, LLC

Sch-1

 

 

ANNEX A

     Each broker-dealer that receives exchange notes for its own account pursuant to the exchange
offer must acknowledge that it will deliver a prospectus in connection with any resale of such
exchange notes. The Letter of Transmittal states that by so acknowledging and by delivering a
prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter” within the
meaning of the Act. This prospectus, as it may be amended or supplemented from time to time, may
be used by a broker-dealer in connection with resales of exchange notes received in exchange for
securities where such securities were acquired by such broker-dealer as a result of market-making
activities or other trading activities. Cricket has agreed that, starting on the expiration date
and ending on the close of business one year after the expiration date, it will make this
prospectus available to any broker-dealer for use in connection with any such resale. See “Plan of
Distribution.”

A-1

 

ANNEX B

     Each broker-dealer that receives exchange notes for its own account in exchange for
securities, where such securities were acquired by such broker-dealer as a result of market-making
activities or other trading activities, must acknowledge that it will deliver a prospectus in
connection with any resale of such exchange notes. See “Plan of Distribution.”

B-1

 

ANNEX C

PLAN OF DISTRIBUTION

     Each broker-dealer that receives exchange notes for its own account pursuant to the exchange
offer must acknowledge that it will deliver a prospectus in connection with any resale of such
exchange notes. This prospectus, as it may be amended or supplemented from time to time, may be
used by a broker-dealer in connection with resales of exchange notes received in exchange for
securities where such securities were acquired as a result of market-making activities or other
trading activities. Cricket has agreed that, beginning on the date of consummation of the exchange
offer and ending on the close of business one year after the consummation of the exchange offer, it
will make this prospectus, as amended or supplemented, available to any broker-dealer for use in
connection with any such resale. In addition, until _______, ____, all dealers effecting
transactions in the exchange notes may be required to deliver a prospectus.

     The company will not receive any proceeds from any sale of exchange notes by broker-dealers.
Exchange notes received by broker-dealers for their own account pursuant to the exchange offer may
be sold from time to time in one or more transactions in the over-the-counter market, in negotiated
transactions, through the writing of options on the exchange notes or a combination of such methods
of resale, at market prices prevailing at the time of resale, at prices related to such prevailing
market prices or negotiated prices. Any such resale may be made directly to purchasers or to or
through brokers or dealers who may receive compensation in the form of commissions or concessions
from any such broker-dealer and/or the purchasers of any such exchange notes. Any broker-dealer
that resells exchange notes that were received by it for its own account pursuant to the exchange
offer and any broker or dealer that participates in a distribution of such exchange notes may be
deemed to be an “underwriter” within the meaning of the Act and any profit of any such resale of
exchange notes and any commissions or concessions received by any such persons may be deemed to be
underwriting compensation under the Act. The Letter of Transmittal states that by acknowledging
that it will deliver and by delivering a prospectus, a broker-dealer will not be deemed to admit
that it is an “underwriter” within the meaning of the Act.

     For a period of one year after the consummation of the exchange offer, Cricket will promptly
send a reasonable number of additional copies of this prospectus and any amendment or supplement to
this prospectus to any broker-dealer that requests such documents in the Letter of Transmittal.
Cricket has agreed to pay all expenses incident to the exchange offer (including the expenses of
one counsel for the holder of the securities) other than commissions or concessions of any brokers
or dealers and will indemnify the holders of the securities (including any broker-dealers) against
certain liabilities, including liabilities under the Act.

C-1

 

ANNEX D

Rider A

PLEASE FILL IN YOUR NAME AND ADDRESS BELOW IF YOU ARE A
BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE
PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

Name:

Address:

Rider B

If the undersigned is not a Broker-Dealer, the undersigned
represents that it acquired the Exchange Notes in the ordinary
course of its business, it is not engaged in, and does not intend to
engage in, a distribution of Exchange Notes and it has no
arrangements or understandings with any person to participate in a
distribution of the Exchange Notes. If the undersigned is a
Broker-Dealer that will receive Exchange Notes for its own account
in exchange for Securities, it represents that the Securities to be
exchanged for Exchange Notes were acquired by it as a result of
market-making activities or other trading activities and
acknowledges that it will deliver a prospectus in connection with
any resale of such Exchange Notes; however, by so acknowledging and
by delivering a prospectus, the undersigned will not be deemed to
admit that it is an “underwriter” within the meaning of the Act.

D-1exv10w1

Exhibit 10.1

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

     THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into as
of the 19th day of May, 2011 by and between A. SCHULMAN, INC., a Delaware corporation (the
“Employer” or “Company”), and Joseph M. Gingo (the “Employee”).

     WHEREAS, the Employer and the Company are parties to the Employment Agreement, dated as of
December 17, 2007, as amended by the First Amendment to Employment Agreement, dated December 17,
2008 and the Second Amendment to Employment Agreement, dated January 9, 2009 (as so amended, the
“Original Employment Agreement”); and

     WHEREAS, the Board of Directors of the Company and the Employee desire to amend and restate
the Original Employment Agreement;

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained,
the parties hereto agree as follows:

     1. DEFINED TERMS

     The definitions of capitalized terms used in this Agreement (unless stated where first used)
are provided in Section 20 hereof.

     2. EMPLOYMENT

     During the Term of this Agreement, the Employer hereby agrees to employ Employee as President
and Chief Executive Officer for the Employer, and the Employee hereby accepts such employment on
the terms and conditions herein contained.

     3. DUTIES AND CONDITIONS OF EMPLOYMENT

          3.1 DUTIES. The Employee shall devote his entire business time, attention and energies to the
Employer and shall not engage in any conduct which shall reflect adversely upon the Employer. The
Employee shall perform such duties for the Employer as may be assigned to one in his executive
status and capacity by the Board. The Employee shall serve diligently and to the best of his
ability.

          During his employment by the Employer, the Employee shall not, without the Company’s prior
written consent, be engaged in any other business activity, whether or not such business activity
is pursued for gain, profit or other pecuniary advantage, except that notwithstanding the
foregoing, he may invest his personal funds for his own account; provided that such investment
shall be passive and not controlling in any such investment and subject to the provisions of
Section 13.2 hereof and provided further that he will not be required to provide any substantial
services on behalf of such enterprise. Notwithstanding the foregoing, the Employee may serve on the
Boards of Directors of

 

 

other corporations during the Term as long as such service does not interfere with the
performance of his duties hereunder.

          3.2 CONDITIONS. The Employee shall be provided with suitable office space, furnishings,
secretarial and administrative assistance. Without the Employee’s consent, the Employee shall not
be required to report principally to an office located more than five hundred (500) miles from his
principal office at the date of this Agreement, except to the extent the Employee may be required
to report to the Company’s principal office. In addition to the foregoing, Employee shall be
entitled to receive the benefits and other compensation described in Exhibit A attached hereto, the
terms of which are incorporated herein.

     4. TERM OF AGREEMENT; TERMINATION OF EMPLOYMENT; ESCROW DURING DISPUTE

          4.1 TERM OF AGREEMENT. The “Term” for this Agreement shall have commenced on May 1, 2011 and
shall end on December 31, 2014. If a Change in Control shall have occurred during the Term of this
Agreement, Sections 7 and 8 and 10 through 21 of this Agreement shall continue in effect until at
least the end of the Change-in-Control Protective Period (whether or not the Term of the Agreement
shall have expired for other purposes). Nothing in the Agreement shall amend, modify or alter
compensation paid or awards settled to the Employee prior to the commencement of the Term.

          4.2 TERMINATION OF EMPLOYMENT. The Company may terminate the employment of the Employee for
Cause pursuant to this Agreement. Prior to any Change in Control, the Employee may terminate his
employment pursuant to this Agreement if the Employer fails to make full and timely payments of all
sums provided for in Exhibit A, Sections 5 and 6 hereof (subject to Section 7.2 hereof), or
otherwise shall breach its covenants hereunder in any material respect (“Resignation for Cause”).
A termination of employment by the Employee due to Resignation for Cause will entitle the Employee
to the same benefits as if the Employee’s employment was terminated without Cause.

          4.3 ESCROW DURING A TERMINATION DISPUTE. Prior to any Change in Control, if the Employee shall
be terminated for Cause, and, within thirty (30) days of such termination, shall notify the
Employer of his intention to adjudicate such termination as improper, the Employer agrees that it
will deposit with KeyBank National Association, Cleveland, Ohio (or any successor thereto), as
Escrow Agent the installments of the Employee’s Base Salary and any bonuses due to be paid (as
provided in Section 5 below) as the same would have become payable but for such termination
(“Escrow Amount”). In the event of a final adjudication by a tribunal of competent jurisdiction
that such termination was not for Cause, then the Escrow Amount, plus any interest earned by the
Escrow Agent thereon, shall be delivered promptly to the Employee. If such adjudication shall be in
favor of the Employer, the Escrow Agent shall return the Escrow Amount, plus such interest, to the
Employer.

-2-

 

     The Escrow Amount shall not be deemed to be liquidated damages but the Employer shall be
entitled to a credit against any such award to the extent of the sums so delivered to the Employee.

     5. COMPENSATION

     The Employer agrees to pay to the Employee as compensation for his services hereunder a Base
Salary equal to the fixed annual salary as shown on Exhibit A hereto and as will be shown on the
Employer’s employment records, payable in substantially bimonthly or monthly installments, as the
case may be, in the manner consistent with the Employer’s payroll practices. Employee is eligible
for and may receive annual merit increases in his Base Salary. Employer shall consider Employee
for annual merit increases at the time the other employees of Employer are being considered for the
merit pool or such other merit increase program that may be adopted by Employer and the effective
date for any annual merit increase granted to Employee will be the same as the other employees
granted merit increases pursuant to the merit pool or other merit increase program. The Base Salary
may be discretionarily increased by the Board from time to time as the Board deems appropriate in
its reasonable business judgment.

     The Base Salary in effect from time to time shall not be decreased during the Term (except as
provided in Section 7.2).

     It is understood and agreed that the Employee’s compensation may not be limited to his Base
Salary and that the Employee may receive an annual bonus in the amount, if any, determined annually
by the Employer.

     The Employee shall also participate in employee compensation and benefit plans available
generally to executives of the Employer (including, without limitation, any tax-qualified profit
sharing plan, nonqualified profit sharing plan, life insurance plan and health insurance plan) on a
level appropriate to his position and shall receive the employee fringe benefits available
generally to executives of the Employer (including, without limitation, the use of a company car,
cellular telephone/pager, laptop computer and printer) in accordance with Employer policies.

     The Employee will also be entitled to the other compensation elements described in Exhibit A
in the manner set forth therein.

     6. EXPENSES

     The Employee is authorized to incur reasonable expenses for promoting the business of the
Employer, including expenses for entertainment, travel and similar items. The Employer shall
reimburse the Employee in accordance with the Employer’s policy for all such expenses upon the
presentation by the Employee, from time to time, of an itemized account of such expenditures.

-3-

 

     7. PRE-TERMINATION COMPENSATION; DISABILITY

          7.1 NORMAL PRE-TERMINATION COMPENSATION. If the Employee’s employment shall be terminated for
any reason during the Term (or, if later, prior to the end of the Change-in-Control Protective
Period), the Employer shall pay the Employee’s Base Salary to the Employee through the Date of
Termination at the rate in effect at the time the Notice of Termination is given (subject to
Section 7.2 hereof) within thirty (30) days following the Date of Termination, together with all
compensation and benefits payable to the Employee through the Date of Termination under the terms
of any compensation or benefit plan, program or arrangement maintained by the Employer during such
period. Subject to Sections 8, 9, 10 and 11 hereof, after completing the expense reimbursements
required by Section 6 hereof and making the payments and providing the benefits required by this
Section 7, the Employer shall have no further obligations to the Employee under this Agreement.

          7.2 DISABILITY ADJUSTMENT TO BASE SALARY PAYMENTS. During the Term (or, if later, at any time
prior to the end of the Change-in-Control Protective Period), during any period that the Employee
is Disabled, but in no event for more than twenty-four (24) months (the “Disability Period”), the
Employer shall pay only sixty percent (60%) of the Employee’s Base Salary to the Employee at the
rate in effect at the commencement of any such Disability Period (less amounts, if any, payable to
the Employee at or prior to the time of any such Base Salary payment under disability benefit plans
of the Employer or under the Social Security disability insurance program). After six (6) months of
Disability, the Employer shall have the right to terminate the Employee’s employment pursuant to
this Agreement and all Base Salary payments shall cease; provided, however, that the sixty percent
(60%) payments described in the foregoing sentence shall continue for the Disability Period. All
payments made pursuant to this Section 7.2 shall be made in accordance with the regular payroll
practices of the Employer. Except to the extent provided in this Section 7.2, all Base Salary
payments to the Employee shall be abated during the Disability Period. Subject to Sections 8, 9, 10
and 11 hereof, after completing the expense reimbursements required by Section 6 hereof and making
the payments and providing the benefits required by this Section 7, the Employer shall have no
further obligations to the Employee under this Agreement.

     8. NORMAL POST-TERMINATION PAYMENTS; CONTINUATION PAY; TERMINATION PAY; PROMPT PAYMENT

     Wherever used in this Agreement, the words “terminate,” “terminated” or “termination” in
connection with the Employee’s employment shall mean the Employee’s “separation from service,”
within the meaning of Section 409A of the Code and Treasury Regulation Section 1.409A-1(h), from
the Employer and any person with whom the Employer would be considered a single employer under
Sections 414(b) and (c) of the Code.

          8.1 NORMAL POST-TERMINATION PAYMENTS. If the Employee’s employment shall be terminated for any
reason during the Term of this Agreement (or, if later, prior to the end of the Change-in-Control
Protective Period), the Employer shall pay

-4-

 

the Employee’s normal post-termination compensation and benefits to the Employee as such
payments become due. Such post-termination compensation and benefits shall be determined under,
and paid in accordance with, the Employer’s retirement, insurance and other compensation or benefit
plans, programs and arrangements (other than this Agreement).

          8.2 CONTINUATION PAY; TERMINATION PAY. Notwithstanding anything to the contrary in Sections
7.2, 9.1 or 10.1 hereof, if the laws governing this Agreement shall require that the Employer
continue to pay or otherwise compensate the Employee for any period of time following termination
of the Employee’s employment (“Continuation Pay”) or if such laws require certain amounts of
severance pay, termination compensation or the like (collectively, “Termination Pay”), then to the
fullest extent permitted by law any payments to the Employee pursuant to Section 7.2, 9.1 or 10.1
hereof shall be included in the calculation of Continuation Pay and Termination Pay and such
payments shall be deducted from the amount of Continuation Pay or Termination Pay due the Employee.

          8.3 TIME OF PAYMENTS. Any payments due under Sections 5, 6, 7 or 9 hereof or this Section 8
shall be made as specified in such sections and shall be made to the Employee or in accordance with
Section 14.2 hereof, as the case may be. Notwithstanding anything in this Agreement to the
contrary, if the Employee is a “specified employee,” within the meaning of Section 409A of the Code
and as determined under the Company’s policy for determining specified employees, on the Date of
Termination, all payments under this Agreement and Exhibit A that are subject to Section
409A of the Code and become payable in connection with the Employee’s termination shall not be paid
(or commence to be paid) until the first business day of the seventh month following the Date of
Termination (or, if earlier, the Employee’s death). The first payment that can be made shall
include the cumulative amount of any amounts that could not be paid during such postponement
period.

     9. POST-TERMINATION PAYMENTS UPON TERMINATION (PRIOR TO A CHANGE IN CONTROL) BY DEATH OR BY
THE EMPLOYER WITHOUT CAUSE

          9.1 DEATH BENEFIT. If the Employee’s employment shall be terminated by death during the Term
(or, if later, prior to the end of the Change-in-Control Protective Period), then, in addition to
the compensation and benefits provided by Sections 7.1 and 8 hereof, within ninety (90) days
following the Employee’s death, the Employer shall pay a lump sum amount equal to sixty percent
(60%) of the Base Salary for twenty-four (24) months in accordance with Section 14.2.

          9.2 TERMINATION BY THE EMPLOYER WITHOUT CAUSE. If the Employer shall terminate the Employee’s
employment during the Term and prior to a Change in Control, without Cause (and not for Disability
or in connection with the Employee’s death), the Employer shall pay the Employee:

     (A) His Base Salary throughout the remaining Term in accordance with the regular payroll
practices of the Employer;

-5-

 

     (B) Annual Bonuses during the remaining Term, each of which bonus shall be equal to either
the greater of (i) $490,000 or (ii) the average annual bonus paid to the Employee during the
most recent three (3) calendar years of the Employee’s employment by the Company. The amount
payable under this Section 9.2(B) shall be paid in a lump sum within ninety (90) days following
the Employee’s termination of employment; and

     (C) Any compensation attributable to LTIP RS Awards (at the target grant value)
that have not been issued as provided in, and pursuant to the terms of, Exhibit A
through the remaining Term.

     10. SEVERANCE PAYMENTS; BEST NET EFFECTS

          10.1 SEVERANCE PAYMENTS. The Employer shall pay the Employee the payments described in this
Section 10.1 (the “Severance Payments”) upon the termination of the Employee’s employment following
a Change in Control and prior to the end of the Change-in-Control Protective Period, in addition to
any payments and benefits to which the Employee is entitled under Sections 5, 6, 7 and 8.1 hereof,
unless such termination is (i) by the Employer for Cause, (ii) by reason of death or Disability, or
(iii) by the Employee without Good Reason. For purposes of this Agreement, the Employee’s
employment shall be deemed to have been terminated by the Employer without Cause following a Change
in Control or by the Employee with Good Reason following a Change in Control, as the case may be,
if (I) the Employee’s employment is terminated without Cause prior to a Change in Control and such
termination was at the request or direction of a Person who has entered into an agreement with the
Employer the consummation of which would constitute a Change in Control, (II) the Employee
terminates his employment with Good Reason prior to a Change in Control and the circumstance or
event which constitutes Good Reason occurs at the request or direction of such Person, or (III) the
Employee’s employment is terminated by the Employer without Cause prior to a Change in Control (but
following a Potential Change in Control) and such termination is otherwise in connection with or in
anticipation of a Change in Control which actually occurs. For purposes of any determination
regarding the applicability of the immediately preceding sentence, any position taken by the
Employee shall be presumed to be correct unless the Employer establishes to the Committee by clear
and convincing evidence that such position is not correct.

     (A) In lieu of any further salary payments to the Employee for periods subsequent to the
Date of Termination and in lieu of any severance benefit otherwise payable to the Employee, the
Employer shall pay to the Employee a lump sum severance payment, in cash, equal to (i) the
Employee’s Base Salary in effect immediately prior to the occurrence of the event or
circumstance upon which the Notice of Termination is based multiplied by three (3), and (ii)
the average annual bonus, including but not limited to the Annual Bonus described in Exhibit A,
earned by the Employee under the Employer’s annual incentive plan in the Employer’s three
fiscal years immediately preceding the fiscal year in which the Date of Termination occurs
multiplied by three (3). In addition, Employee will be entitled to receive any

-6-

 

unpaid compensation and/or compensation attributable to LTIP RS Awards (at the target
grant value) that have not been issued as provided in, and pursuant to the terms of, Exhibit A
through the remainder of the Term. Of the foregoing payments, an amount equal to one year’s
Base Salary plus one year’s Annual Bonus shall be in consideration of and allocated to
Employee’s obligations under Section 13.2.

     (B) For the a period beginning on the Date of Termination and ending at the end of the
Term, as it may be extended, the Employer shall arrange to provide the Employee with life,
disability, accident and health insurance benefits substantially similar to those which the
Employee is receiving immediately prior to the Notice of Termination (without giving effect to
any amendment to such benefits made subsequent to a Change in Control, which amendment
adversely affects in any manner the Employee’s entitlement to or the amount of such benefits);
provided, however, that, unless the Employee consents to a different method, such health
insurance benefits shall be provided through a third-party insurer. Benefits otherwise
receivable by the Employee pursuant to this Section 10.1(B) shall be reduced to the extent
comparable benefits are actually received by or made available to the Employee without cost
during the benefit period following the Employee’s termination of employment (and any such
benefits actually received by or made available to the Employee shall be reported to the
Employer by the Employee). Notwithstanding the foregoing, any benefits or payments provided
under this Section 10.1(B) shall be subject to the following: (i) the amount of expenses
eligible for reimbursement or benefits provided under this Section 10.1(B) during any taxable
year of the Employee may not affect the expenses eligible for reimbursement or the benefits to
be provided to the Employee in any other taxable year; (ii) the reimbursement of an eligible
expense must be made on or before the last day of the Employee’s taxable year following the
taxable year in which the expense was incurred; and (iii ) the right to reimbursement or such
benefits may not be subject to liquidation or exchange for another benefit.

          10.2 EXCESS PARACHUTE PAYMENT. Notwithstanding anything to the contrary in this Agreement, if
any payments or benefits paid or payable to the Employee pursuant to this Agreement or any other
plan, program or arrangement maintained by the Company or an Affiliate would constitute a
“parachute payment” within the meaning of Section 280G of the Code, then the Employee shall receive
the greater of: (a) one dollar ($1.00) less than the amount which would cause the payments and
benefits to constitute a “parachute payment” or (b) the amount of such payments and benefits, after
taking into account all federal, state and local taxes, including the excise tax imposed under
Section 4999 of the Code payable by the Employee on such payments and benefits, if such amount
would be greater than the amount specified in Section 10.2(a), after taking into account all
federal, state and local taxes payable by the Employee on such payments and benefits. Any
reduction to any payment made pursuant to this Section 10.2 shall be made consistent with the
requirements of Section 409A of the Code.

          10.3 Except as provided in Section 8.3 hereof, the payments provided in Sections 10.1(A)
hereof shall be made within thirty (30) days following the later of (A) the Date of Termination or
(B) the Change in Control.

-7-

 

          10.4 The Employer also shall pay to the Employee all legal fees and expenses incurred by the
Employee (i) in disputing in good faith any issue relating to the termination of the Employee’s
employment following a Change in Control and prior to the end of the Change-in-Control Protective
Period, (ii) in seeking in good faith to obtain or enforce any benefit or right provided by this
Agreement, or (iii) in connection with any tax audit or proceeding to the extent attributable to
the application of Section 4999 of the Code to any payment or benefit provided hereunder. Such
payments shall be made within five (5) business days after delivery of the Employee’s written
requests for payment accompanied with such evidence of fees and expenses incurred as the Employer
reasonably may require.

     11. TERMINATION PROCEDURES

          11.1 NOTICE OF TERMINATION. During the Term (and, if longer, until the end of the
Change-in-Control Protective Period), any purported termination of the Employee’s employment (other
than by reason of death) shall be communicated by written Notice of Termination from one party
hereto to the other party hereto in accordance with Section 15 hereof. For purposes of this
Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in reasonable detail the
facts and circumstances claimed to provide a basis for termination of the Employee’s employment
under the provision so indicated. Further, with respect to any purported termination of the
Employee’s employment after a Change in Control and prior to the end of the Change-in-Control
Protective Period, a Notice of Termination for Cause is required to include a copy of a resolution
duly adopted by the affirmative vote of not less than three-quarters (3/4) of the entire membership
of the Board at a meeting of the Board which was called and held for the purpose of considering
such termination (after reasonable notice to the Employee and an opportunity for the Employee,
together with the Employee’s counsel, to be heard before the Board) finding that, in the good faith
opinion of the Board, the Employee was guilty of conduct set forth in clause (I) or (II) of the
definition of Cause herein, and specifying the particulars thereof in detail.

11.2 DATE OF TERMINATION. “Date of Termination,” with respect to any purported termination of the
Employee’s employment during the Term (and, if longer, prior to the end of the Change-in-Control
Protective Period), shall mean the date of the Employee’s “separation from service” within the
meaning of Section 409A of the Code and Treasury Regulation Section 1.409A-1(h). Any Notice of
Termination relating to a termination for Disability shall be provided thirty (30) days prior to
the Date of Termination (provided that the Employee shall not have returned to the full-time
performance of the Employee’s duties during such thirty (30) day period). Any Notice of Termination
relating to the termination of the Employee’s employment by the Employer for any other reason shall
be provided not less than thirty (30) days prior to the Date of Termination (except in the case of
a termination for Cause). Any Notice of Termination relating to the termination of the Employee’s
employment by the Employee for any other reason shall be provided not less than fifteen (15) days
nor more than sixty (60) days prior to the Date of Termination.

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     12. NO MITIGATION

     The Employer agrees that, if the Employee’s employment with the Employer terminates following
a Change in Control and prior to the end of the Change-in-Control Protective Period, the Employee
is not required to seek other employment or to attempt in any way to reduce any amounts payable to
the Employee by the Employer pursuant to Section 10 hereof. Further, the amount of any payment or
benefit provided for in this Agreement (other than Section 10.1 hereof) shall not be reduced by any
compensation earned by the Employee as the result of employment by another employer, by retirement
benefits, by offset against any amount claimed to be owed by the Employee to the Employer, or
otherwise.

     13. CONFIDENTIALITY; NON-COMPETITION AND NON-SOLICITATION

          13.1 CONFIDENTIALITY. The Companies’ methods, plans for doing business, processes, pricing,
compounds, customers and supplies are vital to the Companies and, to the extent not made public by
the Companies, constitute confidential information subject to the Companies’ proprietary rights
therein. The Employee covenants and agrees that during the Term and at all times thereafter, the
Employee will not, directly or indirectly, make known, divulge, furnish, make available or use,
otherwise than in the regular course of the Employee’s employment by the Employer, any invention,
product, process, apparatus or design of any of the Companies, or any knowledge or information in
respect thereof (including, but not limited to, business methods and techniques), or any other
confidential or so-called “insider” information of any of the Companies. This covenant shall apply
without regard to the time or circumstances of any termination of the Employee’s employment.

          13.2 NON-COMPETITION AND NON-SOLICITATION. The Employee covenants and agrees that during the
period of one (1) year following any termination of the Employee’s employment, the Employee will
not, directly or indirectly, either as an individual for the Employee’s own account or as an
investor, or other participant in, or as an employee, agent, or representative of, any other
business enterprise:

     (i) solicit, employ, entice, take away or interfere with, or attempt to solicit, employ,
entice, take away or interfere with, any employee of the Employer or the Companies; or

     (ii) engage or participate in or finance, aid or be connected with any enterprise which
competes with the business of the Companies, or any of them.

     The geographical limitations of the foregoing shall include any country in which the Companies
or any of them shall be doing business as of such date of such termination.

     The Employee shall be compensated an amount equal to one year’s Base Salary plus one year’s
Annual Bonus in consideration of Employee’s obligations under this Section 13.2, provided that
Employee’s compensation therefore shall be netted against the

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Severance Payments under Section 10.1.A.

          13.3 The Employee acknowledges that the covenants contained in this Section 13 are of the
essence of this Agreement and said covenants shall be construed as independent of any other
provisions of this Agreement. Recognizing the irreparable nature of the injury that could result
from the Employee’s violation of any of the covenants and agreement to be performed and/or observed
by the Employee pursuant to the provisions of this Section 13, and that damages would be inadequate
compensation, it is agreed that any violations by the Employee of the provisions of this Section
13, shall be the proper subject for immediate injunctive and other equitable relief to the
Employer.

     14. SUCCESSORS; BINDING AGREEMENT

          14.1 In addition to any obligations imposed by law upon any successor to the Employer, the
Employer will require any successor (whether direct or indirect, by purchase, merger, consolidation
or otherwise) to all or substantially all of the business and/or assets of the Employer to
expressly assume and agree to perform this Agreement in the same manner and to the same extent that
the Employer would be required to perform it if no such succession had taken place. Failure of the
Employer to obtain such assumption and agreement prior to the effectiveness of any such succession
shall be a breach of this Agreement and shall entitle the Employee to terminate the Employee’s
employment for Good Reason. Except as provided in this Section 14.1, this Agreement shall not be
assignable by either party without the written consent of the other party hereto.

          14.2 This Agreement shall inure to the benefit of and be enforceable by the Employee’s
personal or legal representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. If the Employee shall die while any amount would still be payable to the
Employee hereunder (other than amounts which, by their terms, terminate upon the death of the
Employee) if the Employee had continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to the executors, personal
representatives or administrators of the Employee’s estate.

     15. NOTICES

     For purposes of this Agreement, notices and all other communications provided for in the
Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed
by United States registered mail, return receipt requested, postage prepaid, addressed, if to the
Employee, to the address shown for the Employee in the personnel records of the Employer and, if to
the Employer, to the address set forth below, or to such other address as either party may have
furnished to the other in writing in accordance herewith, except that notice of change of address
shall be effective only upon actual receipt:

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To the Employer:

David C. Minc

A. Schulman, Inc.

P.O. Box 1710

Akron, Ohio 44309-1710

With a copy to:

J. Bret Treier

Vorys, Sater, Seymour and Pease LLP

106 South Main Street, Suite 1100

Akron, Ohio 44308

     16. MISCELLANEOUS

     No provision of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by the Employee and such officer as
may be specifically designated by the Board. No waiver by either party hereto at any time of any
breach by the other party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time. This Agreement supersedes
any other agreements or representations, oral or otherwise, express or implied, with respect to the
subject matter hereof which have been made by either party, except as expressly set forth in this
Agreement. The validity, interpretation, construction and performance of this Agreement shall be
governed by the laws of the State of Ohio. All references to sections of the Exchange Act or the
Code shall be deemed also to refer to any successor provisions to such sections. Any payments
provided for hereunder shall be paid net of any applicable withholding required under federal,
state or local law and any additional withholding to which the Employee has agreed. The obligations
of the Employer and the Employee under this Agreement which by their nature may require (partial or
total) performance after the expiration of the Term or the Change-in-Control Protective Period
(including, without limitation, those under Sections 5 through 11 and Section 13 hereof) shall
survive such expiration. If the Employee’s employment is terminated for any reason, additional
services, if any, provided by Employee to the Company shall be provided only pursuant to a separate
written agreement mutually acceptable to the parties.

     17. VALIDITY

     The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, which shall remain in full
force and effect.

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     18. COUNTERPARTS

     This Agreement may be executed in several counterparts, each of which shall be deemed to be an
original but all of which together will constitute one and the same instrument.

     19. SETTLEMENT OF DISPUTES AFTER CHANGE IN CONTROL; ARBITRATION

     After a Change in Control and prior to the end of the Change-in-Control Protective Period, all
claims by the Employee for benefits under this Agreement shall be directed to and determined by the
Committee and shall be in writing. Any denial by the Committee of a claim for benefits under this
Agreement shall be delivered to the Employee in writing and shall set forth the specific reasons
for the denial and the specific provisions of this Agreement relied upon. The Committee shall
afford a reasonable opportunity to the Employee for a review of the decision denying a claim and
shall further allow the Employee to appeal to the Committee a decision of the Committee within
sixty (60) days after notification by the Committee that the Employee’s claim has been denied. Any
further dispute or controversy arising under or in connection with this Agreement shall be settled
exclusively by arbitration in Akron, Ohio, in accordance with the rules of the American Arbitration
Association then in effect. Judgment may be entered on the arbitrator’s award in any court having
jurisdiction. Notwithstanding any provision of this Agreement to the contrary, the Employee shall
be entitled to seek specific performance of the Employee’s right to be paid until the Date of
Termination during the pendency of any dispute or controversy arising under or in connection with
this Agreement.

     20. DEFINITIONS

     For purposes of this Agreement, the following terms shall have the meanings indicated below:

     (A) “Accounting Firm” shall have the meaning stated in Section 10.2(B) hereof.

     (B) “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange
Act.

     (C) “Board” shall mean the Board of Directors of the Employer.

     (D) “Cause” for termination by the Employer of the Employee’s employment shall mean the
following:

(I) Any act of fraud, embezzlement, misappropriation or conversion by the
Executive of the assets or business opportunities of the Employer;

(II) Conviction of the Employee of (or plea by the Executive of guilty to) a felony
(or a misdemeanor that originally was charged as a felony but was reduced to a
misdemeanor as part of a plea bargain);

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(III) Intentional and repeated material violations by the Employee of the
Employer’s written policies or procedures or intentional and material breach of any
contract with or violation of any legal obligation owed to the Employer provided
that a breach or violation shall be considered intentional and material only if the
Employee fails to cure to the best of the Employee’s ability such breach within
thirty (30) days after delivery to the Employee of a notice from the Board
specifying such breach; or

(IV) Willful engagement in gross misconduct or intentional misrepresentation that
is materially and demonstrably injurious to the Employer, provided that such breach
is not cured within thirty (30) days after delivery to the Employee of a notice
from the Board requesting cure.

     For purposes of the above definition, no act or failure to act, on Employee’s part shall
be deemed “willful” unless done, or omitted to be done, by the Employee not in good faith and
without reasonable belief that the Employee’s act or failure to act, was in the best interest
of the Employer. In the event of a dispute concerning the application of the definition of
Cause, no claim by the Employer that Cause exists shall be given effect unless the Employer
establishes by clear and convincing evidence that Cause exists.

     (E) A “Change in Control” shall be deemed to have occurred if the event set forth in any
one of the following paragraphs shall have occurred:

     (I) the acquisition by any person (as defined under Section 409A of the Code), or more
than one person acting as a group (as defined under Section 409A of the Code), of stock of
the Company that, together with the stock of the Company held by such person or group,
constitutes more than fifty percent (50%) of the total fair market value or total voting
power of the stock of the Company;

     (II) the acquisition by any person, or more than one person acting as a group, within
any twelve (12) month period, of stock of the Company possessing thirty percent (30%) or
more of the total voting power of the stock of the Company;

     (III) a majority of the members of the Board is replaced during any twelve (12) month
period by directors whose appointment or election is not endorsed by a majority of the
members of the Board prior to the date of the appointment or election; or

     (IV) the acquisition by any person, or more than one person acting as a group, within
any twelve (12) month period, of assets from the Company that have a total gross fair
market value equal to or more than forty percent (40%) of the total gross fair market value
of all of the assets of the Company immediately prior to such acquisition or acquisitions.

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     This definition of Change in Control shall be interpreted in a manner that is consistent
with the definition of “change in control event” under Section 409A of the Code and the
Treasury Regulations promulgated thereunder.

     Notwithstanding the foregoing, no “Change in Control” shall be deemed to have occurred if
there is consummated any transaction or series of integrated transactions immediately following
which the record holders of the common stock of the Employer immediately prior to such
transaction or series of transactions continue to have substantially the same proportionate
ownership in an entity which owns all or substantially all of the assets of the Employer
immediately following such transaction or series of transactions.

     Further, notwithstanding the foregoing, any event or transaction which would otherwise
constitute a Change in Control (a “Transaction”) shall not constitute a Change in Control for
purposes of this Agreement if, in connection with the Transaction, the Employee participates as
an equity investor in the acquiring entity or any of its affiliates (the “Acquiror”). For
purposes of the preceding sentence, the Employee shall not be deemed to have participated as an
equity investor in the Acquiror by virtue of (i) obtaining beneficial ownership of any equity
interest in the Acquiror as a result of the grant to the Employee of an incentive compensation
award under one or more incentive plans of the Acquiror (including, but not limited to, the
conversion in connection with the Transaction of incentive compensation awards of the Employer
into incentive compensation awards of the Acquiror), on terms and conditions substantially
equivalent to those applicable to other executives of the Employer immediately prior to the
Transaction, after taking into account normal differences attributable to job responsibilities,
title and similar matters, (ii) obtaining beneficial ownership of any equity interest in the
Acquiror on terms and conditions substantially equivalent to those obtained in the Transaction
by all other stockholders of the Employer, or (iii) passive ownership of less than three
percent (3%) of the stock of the Acquiror.

     (F) “Change-in-Control Protective Period” shall mean the period from the occurrence of a
Change in Control until the second anniversary of such Change in Control.

     (G) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

     (H) “Committee” shall mean (i) the individuals (not fewer than three (3) in number) who,
immediately prior to a Potential Change in Control, constitute the Compensation Committee of
the Board, plus (ii) in the event that fewer than three (3) individuals are available from the
group specified in clause (i) above for any reason, such individuals as may be appointed by the
individual or individuals so available (including for this purpose any individual or
individuals previously so appointed under this clause (ii)); provided, however, that the
maximum number of individuals constituting the Committee shall not exceed five (5).

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     (I) “Companies” shall mean, collectively, the Employer and each entity which is now and
hereafter shall become a subsidiary of, or a parent of, the Employer, together with their
respective successors and assigns.

     (J) “Continuation Pay” shall mean those payments so described in Section 8.2 hereof.

     (K) “Date of Termination” shall have the meaning stated in Section 11.2 hereof.

     (L) “Disability” or “Disabled” shall mean: (i) the Employee is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to last for a continuous
period of not less than twelve (12) months; or (ii) the Employee is, by reason of any medically
determinable physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than twelve (12) months, receiving income
replacement benefits for a period of not less than three (3) months under an accident and
health plan covering employees of the Employer; or (iii) the Employee is determined to be
totally disabled by the Social Security Administration or the Railroad Retirement Board.

     (M) “Disability Period” shall have the meaning stated in Section 7.2 hereof.

     (N) “Employee” shall mean the individual named in the first paragraph of this Agreement.

     (O) “Employer” shall mean A. Schulman, Inc. and, except in determining under Section 20(E)
hereof whether or not any Change in Control of the Employer has occurred, any successor to its
business and/or assets which assumes and agrees to perform this Agreement by operation of law,
or otherwise.

     (P) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

     (Q) “Good Reason” for termination by the Employee of the Employee’s employment shall mean
the occurrence (without the Employee’s express prior written consent) after any Change in
Control, or after any Potential Change in Control under the circumstances described in the
second sentence of Section 10.1 hereof (treating all references in paragraphs (I) through (VII)
below to a “Change in Control” as references to a “Potential Change in Control”), of any one of
the following acts by the Employer, or failures by the Employer to act, unless, in the case of
any act or failure to act described in paragraph (I), (V), (VI) or (VII) below, such act or
failure to act is corrected prior to the Date of Termination specified in the Notice of
Termination given in respect thereof:

     (I) a diminution in the Employee’s title, authority, duties, responsibilities or
reporting relationships;

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     (II) a diminution in the Employee’s base compensation or incentive compensation
opportunity;

     (III) the relocation of the Employer’s principal executive offices to a location
twenty-five (25) miles or more from the location of such offices immediately prior to the
Change in Control or the Employer’s requiring the Employee to be based anywhere other than
the Employer’s principal executive offices except for required travel on the Employer’s
business to an extent substantially consistent with the Employee’s present business travel
obligations; or the failure by the Employer, in the event the Employee consents to a
relocation at the request of the Employer or its successor, to pay (or reimburse the
Employee) for all reasonable moving expenses incurred by the Employee relating to a change
of the Employee’s principal residence in connection with such relocation and to indemnify
the Employee against any loss realized on the sale of the Employee’s principal residence in
connection with any such change of residence;

     (IV) the failure by the Employer, without the Employee’s consent, to pay to the
Employee any portion of the Employee’s current compensation, or to pay to the Employee any
portion of an installment of deferred compensation under any deferred compensation program
of the Employer, within seven (7) days of the date such compensation is due;

     (V) the failure by the Employer to continue in effect any compensation plan in which
the Employee participates immediately prior to the Change in Control which is material to
the Employee’s total compensation, including but not limited to the Employer’s Nonqualified
Profit Sharing Plan or any substitute plans adopted prior to the Change in Control, unless
an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been
made with respect to such plan, or the failure by the Employer to continue the Employee’s
participation therein (or in such substitute or alternative plan) on a basis not materially
less favorable, both in terms of the amount of benefits provided and the level of the
Employee’s participation relative to other participants, as existed at the time of the
Change in Control;

     (VI) the failure by the Employer to continue to provide the Employee with benefits
substantially similar to those enjoyed by the Employee under any of the Employer’s pension,
life insurance, medical, health and accident, or disability plans in which the Employee was
participating at the time of the Change in Control, the taking of any action by the
Employer which would directly or indirectly materially reduce any of such benefits or
deprive the Employee of any material fringe benefit enjoyed by the Employee at the time of
the Change in Control, or the failure by the Employer to provide the Employee with the
number of paid vacation days to which the Employee is entitled on the basis of years of
service with the Employer in accordance with the Employer’s normal vacation policy in
effect at the time of the Change in Control; or

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     (VII) any purported termination of the Employee’s employment which is not effected
pursuant to a Notice of Termination satisfying the requirements of Section 11.1 hereof; for
purposes of this Agreement, no such purported termination shall be effective.

     The Employee’s right to terminate the Employee’s employment for Good Reason shall not be
affected by the Employee’s incapacity due to physical or mental illness. The Employee’s
continued employment shall not constitute consent to, or a waiver of rights with respect to,
any act or failure to act constituting Good Reason hereunder.

     For purposes of any determination regarding the existence of Good Reason, any claim by the
Employee that Good Reason exists shall be presumed to be correct unless the Employer
establishes to the Committee by clear and convincing evidence that Good Reason does not exist.

     (R) “Notice of Termination” shall have the meaning stated in Section 11.1 hereof.

     (S) “Person” shall have the meaning given in Section 3(a) (9) of the Exchange Act, as
modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include
(i) the Employer or any of its subsidiaries, (ii) a trustee or other fiduciary holding
securities under an employee benefit plan of the Employer or any of its subsidiaries, (iii) an
underwriter temporarily holding securities pursuant to an offering of such securities, or (iv)
a corporation owned, directly or indirectly, by the stockholders of the Employer in
substantially the same proportions as their ownership of stock of the Employer.

     (T) “Potential Change in Control” shall be deemed to have occurred if the event set forth
in any one of the following paragraphs shall have occurred:

     (1) the Employer enters into an agreement, the consummation of which would result in
the occurrence of a Change in Control;

     (2) the Employer or any Person publicly announces an intention to take or to consider
taking actions which, if consummated, would constitute a Change in Control;

     (3) any Person becomes the Beneficial Owner, directly or indirectly, of securities of
the Employer representing fifteen percent (15%) or more of either the
then outstanding shares of common stock of the Employer or the combined voting power of the Employer’s then
outstanding securities; or

     (4) the Board adopts a resolution to the effect that, for purposes of this Agreement,
a Potential Change in Control has occurred.

     (U) “Severance Payments” shall mean those payments described in Section 10.1 hereof.

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     (W) “Term” shall mean the period of time described in Section 4.1 hereof (including any
extension or continuation described therein).

     (X) “Termination Pay” shall mean those payments so described in Section 8.2 hereof.

     (Y) “Payment” and “Payments” shall have the meanings stated in Section 10.2(A) hereof.

     21. SECTION 409A OF THE CODE

     It is intended that this Agreement comply with Section 409A of the Code and the Treasury
Regulations promulgated thereunder (and any subsequent notices or guidance issued by the Internal
Revenue Service), and this Agreement will be interpreted, administered and operated accordingly.
Nothing herein shall be construed as an entitlement to or guarantee of any particular tax treatment
to the Employee.

     IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed (the
corporate signatory by the respective officer duly authorized) as of the day and year first above
written.

	 	 	 	 	 	 	 	 	 

	EMPLOYEE:	 	 	 	EMPLOYER:	 	 
	 	 	 	 	A. Schulman, Inc.	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Joseph M. Gingo
 

	 	 
	 	By:
	 	/s/ David C. Minc
 

	 	 
	Name: Joseph M. Gingo

	 	 	 	 	 	Name: David C. Minc 

Its: Vice President, Chief Legal

Officer and Secretary	 	 

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EXHIBIT A

	1.	 	Employee’s annual Base Salary will be $810,000.
	 
	2.	 	Employee will be entitled to participate in the Company’s management bonus
program (“Bonus Program”) each fiscal year or partial fiscal year of the Company
occurring during the Term of the Agreement. Unless otherwise mutually agreed, the
Employee will participate in the Bonus Program at the 100% target level with leverage
ranging from 0% to 200% based upon performance metrics to be agreed upon by the
Compensation Committee of the Board of Directors and the Employee (“Annual Bonus”).
	 
	3.	 	Each year during the Term of the Agreement, Employee is entitled to receive
an award of restricted shares of common stock or restricted stock units, as the case
may be, as long-term incentive compensation under the Company’s then effective equity
incentive plan based on a target grant value of 200% of the Employee’s Base Salary
(“LTIP RS Award”), with vesting based upon performance metrics or other criteria to be
agreed upon by the Compensation Committee of the Board and the Employee. Vesting of
the LTIP RS Awards shall be as follows:

	 	a.	 	In addition to any vesting criteria set forth in any LTIP RS
Award agreement that is performance based (a “Performance Award”), and
including Performance Awards made prior to the date hereof, in the event of
termination of Employee’s employment (i) due to Resignation for Cause as
described in Section 4.2 of the Agreement, or (ii) without Cause and Prior to
a Change in Control, Employee will be entitled to vesting of shares
represented by the Performance Award on a pro rata basis for the period of
time then elapsed, but only if the performance criteria described in the
awards are satisfied at the end of the applicable performance period.
	 
	 	b.	 	In addition to any vesting criteria set forth in any LTIP RS
Award agreement that is not performance based (a “Time-Based Award”), and
including Time-Based Awards made prior to the date hereof, in the event of
termination of Employee’s employment (i) due to Resignation for Cause as
described in Section 4.2 of the Agreement, or (ii) without Cause prior to a
Change in Control, Employee will be entitled to vesting of shares represented
by the Time-Based Award on a pro rata basis for the period of time then
elapsed.
	 
	 	c.	 	In addition to any vesting criteria set forth in any LTIP RS
Award agreement, and including Time-Based Awards and Performance Awards made
prior to the date hereof (collectively, “Prior Awards”), in the event of
termination of Employee’s employment due to a retirement (as defined in the
applicable LTIP RS Award Agreement and the

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	 	 	 	related equity incentive plan), Employee will be entitled to vesting of shares
represented by: (i) the Performance Award on a pro rata basis for the period of
time then elapsed, but only if the performance criteria described in the awards
are satisfied at the end of the applicable performance period; and (ii) the
Time-Based Award on a pro rata basis for the period of time then elapsed.

	 	d.	 	In addition to any vesting criteria set forth in any LTIP RS
Award agreement, and including the Prior Awards, in the event of termination
of Employee’s employment due to death or Disability, Employee will be entitled
to vesting of shares represented by: (i) the Performance Award on a pro rata
basis for the period of time then elapsed, but only if the performance
criteria described in the awards are satisfied at the end of the applicable
performance period; and (ii) the Time-Based Award in full.
	 
	 	e.	 	Vesting upon any Change in Control shall be as set forth in
the applicable LTIP RS Award agreement, including any Prior Award.
	 
	 	f.	 	For clarity, if the LTIP RS Awards vest either (i) under any
of the criteria set forth in this Agreement or (ii) by application of the
criteria set forth in the LTIP RS Award Agreement, then the Employee shall be
entitled to such vesting.
	 
	 	g.	 	The Company and the Employee agree that, at the expiration of
the Term, Employee shall be deemed to have retired and any provisions of
additional services by the Employee to the Company, so long as such services
are not performed as an employee of the Company, shall not affect his
retirement.

	4.	 	Employee will also be eligible for future stock options/grants and
discretionary awards and/or cash equivalents as approved by the Company’s Board of
Directors consistent with the Company’s practice and custom for the chief executive
officer under the Company’s incentive compensation plans.
	 
	5.	 	Employee will be eligible for four weeks of paid vacation during each
calendar year as an executive officer of the Company.

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