Document:

Exhibit 10.7

Exhibit 10.7

A. SCHULMAN, INC.

AMENDED AND RESTATED

2006 INCENTIVE PLAN

RESTRICTED STOCK UNIT AWARD AGREEMENT

GRANTED TO

JOSEPH M. GINGO on JANUARY                     , 2009

A. Schulman, Inc. (“Company”) believes that its business interests are best served by extending to
you an opportunity to earn additional compensation based on the growth of the Company’s business.
To this end, the Company adopted, and its stockholders approved, the A. Schulman, Inc. Amended and
Restated 2006 Incentive Plan (“Plan”) as a means through which employees like you may share in the
Company’s success. Capitalized terms that are not defined herein shall have the same meanings as
in the Plan.

This Award Agreement describes many features of your Award and the terms and conditions of your
Award. To ensure you fully understand these terms and conditions, you should:

	 	•	 	Read the Plan carefully to ensure you understand how the Plan works;
	 
	 	•	 	Read this Award Agreement carefully to ensure you understand the nature of your Award
and what you must do to earn it; and
	 
	 	•	 	Contact Rand Torgler at (330) 668-7224 if you have any questions about your Award.

Also, no later than                     , 2009, you must return a signed copy of the Award Agreement to:

Rand Torgler

A. Schulman, Inc.

3550 West Market Street

Akron, Ohio 44333

Nature of Your Award

You have been granted Restricted Stock Units. Each Restricted Stock Unit represents the right to
receive cash equal to the Fair Market Value of a Share, subject to the terms and conditions of this
Award Agreement and the Plan. The terms and conditions affecting your Restricted Stock Units are
described in this Award Agreement and the Plan, both of which you should read carefully.

Grant Date:                     , 2009.

Number of Restricted Stock Units: You have been granted                      Restricted Stock Units (“Total
Units”), subject to the terms and conditions of this Award Agreement and the Plan.

 

 

 

When Your Award Will Vest

Your Restricted Stock Units will be settled or will be forfeited depending on whether the
applicable terms and conditions have been met. For purposes of this Award Agreement,
[a] “Performance Period” shall mean the period beginning on September 1, 2008 and ending on August
31, 2009 and [b] “Normal Vesting Date” shall mean August 31, 2009.

Normal Vesting Date: Except as otherwise provided in this Award Agreement, the number of
Total Units that will vest on the Normal Vesting Date will depend on the achievement of the
following Performance Objectives during the Performance Period: Net Income, Operating Income
and Days of Working Capital, as set forth in the 2009 Bonus Plan approved by the Committee
on October 16, 2008. The Performance Objectives will be dependent upon the Company’s
consolidated worldwide performance during the Performance Period. With respect to each
Performance Objective, the number of Restricted Stock Units that will vest on the Normal
Vesting Date will equal: [a] 33.33% of the Total Units, multiplied by [b] the indicated
percentage at the Threshold, Target, Stretch Budget, Maximum and high performance levels as
set forth in the 2009 Bonus Plan approved by the Committee on October 16, 2008; provided,
however, that if a Performance Objective is not achieved or is achieved at a performance
level which is less than Threshold, all of your Restricted Stock Units with respect to that
Performance Objective will be forfeited. If the achievement of a Performance Objective is
between performance levels, the number of Restricted Stock Units that vest will be
interpolated by the Company. Any Restricted Stock Units that do not vest as of the Normal
Vesting Date shall be forfeited.

Notwithstanding the foregoing, your Restricted Stock Units may vest earlier in the
circumstances described below.

How Your Restricted Stock Units Might Vest Earlier Than the Normal Vesting Date: Your
Restricted Stock Units will immediately vest and all Performance Objectives will be deemed
to have been met at the Super Maximum performance level if there is a Change in Control.

How Your Termination Will Affect Your Restricted Stock Units: You may forfeit your
Restricted Stock Units if you Terminate before the Normal Vesting Date, although this will
depend on why you Terminate.

[a] If you Terminate because of [i] death, [ii] Disability or [iii] after qualifying for
Retirement if the Committee agrees to treat your Termination as a Retirement, a prorata
portion of your Restricted Stock Units granted through this Award Agreement will vest
but only if the Performance Objectives described above are actually met at the Normal
Vesting Date:

	 	 	 	 	 	 	 
	 

	 	Number of Restricted Stock

Units that would have vested 

if you had not Terminated

before the Normal Vesting Date
	 	
X
	 	the number of whole months between

 the Grant Date and your Termination date

7

If those Performance Objectives are not met, all of your Restricted Stock Units will be
forfeited.

[b] If you Terminate under any other circumstances, all of the Restricted Stock Units
granted through this Award Agreement will be forfeited.

 

2

 

Settling Your Award

Your vested Restricted Stock Units will be settled no later than the 15th day of the third month
following the applicable vesting date for a cash payment equal to the whole number of vested
Restricted Stock Units to be settled, multiplied by the Fair Market Value of a Share on the
applicable settlement date. All Restricted Stock Units relating to fractional Shares will be
cancelled without any consideration.

Other Rules Affecting Your Award

Rights During the Performance Period: During the Performance Period, you will have no voting
rights with respect to the Shares underlying your Restricted Stock Units. You shall be entitled to
receive any cash dividends that are declared and paid during the Performance Period with respect to
the Shares underlying one-half of your Total Units (the “Target Units”), subject to the terms and
conditions of the Plan and this Award Agreement. If a cash dividend is declared and paid during
the Performance Period on the Shares underlying the Target Units, you will be deemed to have been
credited with a cash amount equal to the product of [a] the number of the Target Units that have
not been settled or forfeited as of the dividend payment date, multiplied by [b] the amount of the
cash dividend paid per Share. Such amount shall be subject to the same terms and conditions as the
related Target Units and shall vest and be settled in cash if, when and to the extent the related
the Target Units vest and are settled. In the event a Target Unit is forfeited under this Award
Agreement, the related dividends will also be forfeited.

Beneficiary Designation: You may name a beneficiary or beneficiaries to receive any portion of
your Award and any other right under the Plan that is unsettled at your death. To do so, you must
complete a beneficiary designation form by contacting Rand Torgler at (330) 668-7224 or the address
below. If you previously completed a valid beneficiary designation form, such form shall apply to
the Award until changed or revoked. If you die without completing a beneficiary designation form
or if you do not complete that form correctly, your beneficiary will be your surviving spouse or,
if you do not have a surviving spouse, your estate.

Tax Withholding: Applicable withholding taxes must be withheld with respect to your Award. These
taxes may be paid in one of several ways. They are:

	 	•	 	By the Company withholding this amount from other amounts owed to you (e.g., from
your salary);
	 
	 	•	 	By giving the Company a check (payable to “A. Schulman, Inc.”) in an amount equal to
the taxes that must be withheld; or
	 
	 	•	 	By having the Company withhold a portion of the cash payment that otherwise would be
distributed to you equal to the taxes that must be withheld.

You must choose the approach you prefer before the Restricted Stock Units are settled, although the
Company may reject your preferred method for any reason (or for no reason). If this happens or if
you do not choose a method within 30 days of the applicable settlement date, the Company will
specify (from among the alternatives just listed) how these taxes are to be paid.

 

3

 

Transferring Your Restricted Stock Units: Normally, your Restricted Stock Units may not be
transferred to another person. However, as described above, you may complete a beneficiary
designation form to name the person to receive any Restricted Stock Units that are settled after
you die. Also, the Committee may allow you to transfer your Restricted Stock Units to certain
Permissible Transferees, including a trust established for your benefit or the benefit of your
family. Contact Rand Torgler at the address or number given below if you are interested in doing
this.

Governing Law: This Award Agreement will be construed in accordance with and governed by the laws
(other than laws governing conflicts of laws) of the State of Ohio, except to the extent that the
Delaware General Corporation Law is mandatorily applicable.

Other Agreements: Also, your Restricted Stock Units will be subject to the terms of any other
written agreements between you and the Company or a Related Entity to the extent that those other
agreements do not directly conflict with the terms of the Plan or this Award Agreement.

Adjustments to Your Restricted Stock Units: Subject to the terms of the Plan, your Award will be
adjusted, if appropriate, to reflect any change to the Company’s capital structure (e.g., the
number of your Restricted Stock Units will be adjusted to reflect a stock split).

Other Rules: Your Restricted Stock Units also are subject to more rules described in the Plan.
You should read the Plan carefully to ensure you fully understand all the terms and conditions of
this Award.

*****

You may contact Rand Torgler at the address or number given below if you have any questions about
your Award or this Award Agreement.

*****

 

4

 

Your Acknowledgment of Award Conditions

Note: You must sign and return a copy of this Award Agreement to Rand Torgler at the address given
below no later than                     , 2009.

By signing below, I acknowledge and agree that:

	 	•	 	A copy of the Plan has been made available to me;
	 
	 	•	 	I understand and accept the conditions placed on my Award and understand what I must
do to earn my Award;
	 
	 	•	 	I will consent (in my own behalf and in behalf of my beneficiaries and without any
further consideration) to any change to my Award or this Award Agreement to avoid
paying penalties under Section 409A of the Code, even if those changes affect the terms
of my Award and reduce its value or potential value; and
	 
	 	•	 	I must return a signed copy of this Award Agreement to the address shown below by
                    , 2009.

	 	 	 	 	 	 	 	 	 	 	 
	JOSEPH M. GINGO	 	 	 	A. SCHULMAN, INC.
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	   
	(signature)
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date signed:	 	 	 	Date signed:	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

A signed copy of this Award Agreement must be sent to the following address no later than                     ,
2009:

Rand Torgler

A. Schulman, Inc.

3550 West Market Street

Akron, Ohio 44333

(330) 668-7224

 

5Exhibit 10.16

Exhibit 10.16

AMH HOLDINGS II, INC.

STOCK OPTION AWARD AGREEMENT

This Stock Option Award Agreement (this “Agreement”), dated May 30, 2008, is made between AMH
Holdings II, Inc. (the “Company”) and                      (the “Optionee”). All capitalized terms used
herein that are not defined herein shall have the respective meanings given to such terms in the
AMH Holdings II, Inc. 2004 Stock Option Plan (the “Plan”).

 W I T N E S S E T H : 

1. Grant of Option. Pursuant to the provisions of the Plan, the Company hereby grants
to the Optionee, subject to the terms and conditions of the Plan and subject further to the terms
and conditions herein set forth, the right and option to purchase from the Company all or any part
of an aggregate of XX shares of the Class B, Series II (Non-Voting) Common Stock of the Company,
$0.01 par value per share (“Stock”), at a per share purchase price equal to $1.00 (the “Option”),
such Option to be exercisable as hereinafter provided; provided, however, that if and when the
Investcorp Investors (defined as set forth in Schedule II attached hereto) shall have
exercised their right to convert all, but not less than all, of the shares of preferred stock of
the Company into common stock of the Company (the “Conversion”), then the number of shares of Stock
set forth in this Section 1 shall be adjusted by the Committee as provided in Schedule I
attached hereto, in accordance with Section 10(b) of the Plan. The Option shall not be treated as
an “incentive stock option,” as defined in Section 422 of the Code.

2. Terms and Conditions. It is understood and agreed that the Option evidenced hereby
is subject to the following terms and conditions:

(a) Expiration Date. The Option shall expire ten (10) years after the date indicated
above.

(b) Exercise of Option. (i) Subject to the other terms of this Agreement and the
Plan, the Option may become exercisable with respect to the shares of Stock set forth in Section 1
of this Agreement to the extent provided in Schedule I and Schedule II attached
hereto.

(ii) Any exercise of all or any part of the Option shall be accompanied by Notice to the
Company specifying the number of shares of Stock as to which the Option is being exercised
and shall only be effective upon delivery to the Company of (x) the consideration required
pursuant to Section 2(c) below and (y) an executed joinder to the Stockholders Agreement (as
defined below) pursuant to Section 6.5 therein. Upon the valid exercise of all or any part
of the Option, a certificate (or certificates) for the number of shares of Stock with
respect to which the Option is exercised shall be issued in the name of the Optionee,
subject to the other terms and conditions of this Agreement and the Plan. Notation of any
partial exercise shall be made by the Company on Schedule III attached hereto.

 

 

 

(c) Consideration. At the time of any exercise of the Option, the purchase price of
the shares of Stock as to which the Option shall be exercised shall be paid to the Company (i) in
United States dollars by personal check, bank draft or money order; (ii) if permitted by applicable
law and approved by the Committee, with Common Stock already owned by the Optionee, and purchased
or held for the requisite period of time as necessary to avoid a charge to the Company’s or any
Affiliate’s earnings for financial reporting purposes, having a total Fair Market Value on the date
of such exercise of the Option equal to such purchase price of the shares of Stock for which the
Option is so exercised; or (iii) a combination of the consideration provided for in the foregoing
clauses (i) through (ii).

(d) Exercise Upon Death, Disability or Termination of Employment. The Option shall
terminate upon the termination, for any reason, of the Optionee’s employment with the Company or an
Affiliate, and no shares of Stock may thereafter be purchased under the Option except as follows:

(i) In the event of the death of the Optionee while an employee of the Company or an
Affiliate, the Option, to the extent the Option would be exercisable in accordance with
Section 2(b) hereof as of the date of his death, may be exercised after his death by his
designated beneficiary, his heir, the legal representative of the Optionee’s estate or by
the legatee of the Optionee under his last will for a period of one (1) year from the date
of his death or until the expiration of the stated period of the Option, whichever period is
the shorter.

(ii) If the Optionee’s employment with the Company or an Affiliate shall terminate by
reason of Disability, the Option, to the extent exercisable in accordance with Section 2(b)
hereof as of the date of such termination of employment, may be exercised after such
termination but may not be exercised after the expiration of the period of one (1) year from
the date of such termination of employment or of the stated period of the Option, whichever
period is the shorter.

(iii) If the Optionee voluntarily terminates his employment with the Company or an
Affiliate, or the Company or such Affiliate terminates the Optionee’s employment without
“Cause” (within the meaning of the employment agreement between Associated Materials
Incorporated, an indirect wholly-owned subsidiary of the Company, and the Optionee (the
“Employment Agreement”), or, if no such employment agreement is in effect, as determined by
the Committee in its discretion), the Option, to the extent exercisable in accordance with
Section 2(b) hereof as of the date of such termination, may thereafter be exercised but may
not be exercised after the expiration of the period of three (3) months from the date of
such termination of employment or of the stated period of the Option, whichever period is
the shorter.

(iv) If the Optionee dies after termination of his employment with the Company and/or
an Affiliate under paragraph (ii) or (iii) of this Section 2(d) above during the one (1)
year or three (3) month period following such termination specified in such paragraphs, the
Option, to the extent the Option would have been exercisable in accordance with such
applicable paragraph (ii) or (iii) as of the date of the Optionee’s death, may be exercised
after his death by his designated beneficiary, his heir, the legal
representative of his estate or by the legatee of the Optionee under his last will
until the expiration of the period of one (1) year from the date of his death or of the
stated period of the Option, whichever period is the shorter.

 

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(v) If the Optionee’s employment is terminated by the Company or an Affiliate for
Cause, the Option shall automatically, without any further action required by the Company,
terminate on the date of such termination of employment and no shares of Stock may
thereafter be purchased under the Option.

(e) Nontransferability. The Option shall not be transferable by the Optionee except
that the Optionee may transfer the Option to (a) his or her spouse, child, estate, personal
representative, heir or successor, (b) a trust for the benefit of the Optionee or his or her
spouse, child or heir, or (c) a partnership or limited liability company the partners or members of
which consist solely of the Optionee and/or his or her spouse, child, heir, and/or successor (each,
a “Permitted Transferee”) and the Option is exercisable, during the Optionee’s lifetime, only by
him or her or a Permitted Transferee, or, in the event of the Optionee’s death or Disability, his
or her executor, guardian or legal representative. More particularly (but without limiting the
generality of the foregoing), the Option may not be assigned, transferred (except as aforesaid),
pledged or hypothecated in any way (whether by operation of law or otherwise), and shall not be
subject to execution, attachment or similar process. Any assignment, transfer, pledge,
hypothecation or other disposition of the Option contrary to the provisions hereof, and the levy of
any attachment or similar process upon the Option that would otherwise effect a change in the
ownership of the Option, shall terminate the Option; provided, however, that, in the case of the
involuntary levy of any attachment or similar involuntary process upon the Option, the Optionee
shall have thirty (30) days after notice thereof to cure such levy or process before the Option
terminates. This Agreement shall be binding on and enforceable against any person who is a
Permitted Transferee of the Option.

(f) Withholding Taxes. At the time of receipt of Stock upon the exercise of all or
any part of the Option, the Optionee shall be required to pay to the Company in cash (or make other
arrangements, in accordance with Section 9 of the Plan, for the satisfaction of) any taxes of any
kind required by law to be withheld with respect to such Stock. In no event shall Stock be
delivered to the Optionee until the Optionee has paid to the Company in cash, or made arrangements
satisfactory to the Company regarding the payment of, the amount of any taxes of any kind required
by law to be withheld with respect to the Stock subject to the Option, and the Company shall have
the right to deduct any such taxes from any payment of any kind otherwise due to the Optionee.

(g) No Rights as Stockholder. Neither the Optionee nor any other person shall become
the beneficial owner of the shares of Stock subject to the Option, nor have any rights to dividends
or other rights as a stockholder with respect to any such shares, until the Optionee has exercised
the Option in accordance with the provisions hereof and of the Plan.

 

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(h) No Right to Continued Employment. Neither the Option nor any terms contained in
this Agreement shall confer upon the Optionee any express or implied right to be retained in the
service of the Company or an Affiliate for any period or at all, nor restrict in any way the right
of the Company or any Affiliate, which right is hereby expressly reserved, to
terminate his employment at any time with or without cause. The Optionee acknowledges and
agrees that any right to exercise the Option is earned only by continuing as an employee of the
Company and the Affiliates, or satisfaction of any other applicable terms and conditions contained
in this Agreement and the Plan, and not through the act of being hired, being granted the Option or
acquiring shares of Stock hereunder.

(i) Inconsistency with Plan. Notwithstanding any provision herein to the contrary,
the Option provides the Optionee with no greater rights or claims than are specifically provided
for under the Plan. If and to the extent that any provision contained in this Agreement conflicts
with the Plan, the Plan shall govern.

(j) Compliance with Laws, Regulations and Stockholders Agreement. The Option and the
obligation of the Company to sell and deliver shares of Stock hereunder shall be subject in all
respects to (i) all applicable Federal and state laws, rules and regulations; (ii) any
registration, qualification, approvals or other requirements imposed by any government or
regulatory agency or body which the Committee shall, in its sole discretion, determine to be
necessary or applicable; and (iii) the terms, conditions and limitations of the Stockholders
Agreement, dated as of December 22, 2004, by and among the Company, Harvest Partners III, L.P.,
Harvest Partners III Beteiligungsgesellschaft Bürgerlichen Rechts (mit Haftungsbeschränkung),
Harvest Partners IV, L.P., and Harvest Partners IV GmbH & Co. KG (collectively, the “Harvest
Funds”), and AM Holding Limited, AM Equity Limited, AM Investments Limited, Associated Equity
Limited and Associated Investments Limited, and the other parties named therein (as such agreement
may be amended from time to time, the “Stockholders Agreement”). Moreover, the Option may not be
exercised if its exercise, or the receipt of shares of Stock pursuant thereto, would be contrary to
applicable law. If at any time the Company shall determine, in its discretion, that the listing,
registration or qualification of shares of Stock upon any national securities exchange or under any
state or Federal law, or the consent or approval of any governmental regulatory body, is necessary
or desirable, the Company shall not be required to deliver any certificates for shares of Stock to
the Optionee or any other person unless and until such listing, registration, qualification,
consent or approval shall have been effected or obtained, or otherwise provided for, free of any
conditions not acceptable to the Company.

3. Investment Representation. If at the time of exercise of all or part of the Option
the Stock is not registered under the Securities Act and/or there is no current prospectus in
effect under the Securities Act with respect to the Stock, the Optionee shall execute, prior to the
issuance of any shares of Stock to the Optionee by the Company, an agreement (in such form as the
Committee may specify) in which the Optionee, among other things, represents, warrants and agrees
that the Optionee is purchasing or acquiring the shares acquired under this Agreement for the
Optionee’s own account, for investment only and not with a view to the resale or distribution
thereof, that the Optionee has knowledge and experience in financial and business matters, that the
Optionee is capable of evaluating the merits and risks of owning any shares of Stock purchased or
acquired under this Agreement, that the Optionee is a person who is able to bear the economic risk
of such ownership and that any subsequent offer for sale or distribution of any of such shares
shall be made only pursuant to (i) a registration statement on an appropriate form under the
Securities Act, which registration statement has become effective and is current with
regard to the shares being offered or sold, or (ii) a specific exemption from the registration
requirements of the Securities Act, it being understood that to the extent any such exemption is
claimed, the Optionee shall, prior to any offer for sale or sale of such shares, obtain a prior
favorable written opinion, in form and substance satisfactory to the Committee, from counsel for or
approved by the Committee, as to the applicability of such exemption thereto.

 

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4. Lock-Up Period. In the event and to the extent requested by the managing
underwriter or, if the securities of the Company are not being disposed of in an underwritten
public offering pursuant to an effective registration statement filed with the Securities and
Exchange Commission, if requested by the Company, the Optionee agrees not to offer, pledge, lend,
sell, contract to sell, make any short sale of, grant any option, right or warrant for the purchase
of, enter into any swap, hedging or other arrangement that transfers to another, in whole or in
part, any of the economic consequences of ownership of, or otherwise transfer or dispose, directly
or indirectly, of any securities of the Company (each such action, a “Transfer”), other than those
securities included in such registration pursuant to the Stockholders Agreement for the thirty (30)
days prior to and the ninety days (90) days (one hundred and eighty (180) days in the case of the
initial public offering of the common stock of the Company pursuant to an effective registration
statement filed with the Securities Exchange Commission) after the effectiveness of the
registration statement pursuant to which such public offering shall be made (or such shorter period
of time as is sufficient and appropriate, in the opinion of the managing underwriter or, as the
case may be, the Company in order to complete the sale and distribution of the securities included
in such public offering; provided that in no event shall such shorter period of time with respect
to the Optionee be shorter than any such period for any other stockholder of the Company); provided
that the limitations contained in this Section 4 shall not apply to the extent the Optionee is
prohibited by applicable law from so withholding such securities from sale during such period.

5. Company’s Right to Purchase Stock. (a) (i) Upon termination under any
circumstances of the Optionee’s employment with the Company or an Affiliate, the Company shall have
the right, but not the obligation, to purchase any or all of the shares of Stock which have been
purchased by the Optionee, or any person permitted to exercise the Option under Section 2(d)
hereof, pursuant to exercise of the Option (“Option Stock”), and which the Optionee, such other
person, or any permitted donee of such Stock, under Section 6 hereof, then holds by delivering
written notice (the “Repurchase Notice”) to the Optionee and/or such donee of Option Stock or other
person permitted to exercise the Option, as applicable, within sixty (60) calendar days after the
last date on which the Option may be exercised in accordance with Section 2(d) hereof at the
purchase price determined in accordance with subparagraph (ii) or (iii), as applicable, of this
Section 5(a); provided, however, that if any Option Stock has been held by the Optionee or such
donee or other person, as the case may be, for six (6) months or less at any time the Company is
entitled to exercise its right to purchase such Option Stock under this Section 5(a)(i) but for
this proviso, the Company may exercise such right to purchase such Option Stock within sixty (60)
calendar days after such Option Stock has first been held by the Optionee or such donee or other
person for greater than six (6) months.

 

-5-

 

(ii) If such termination of the Optionee’s employment is by the Company or an
Affiliate other than for Cause, the purchase price to be paid by the Company for any
 shares of Option Stock to be purchased by the Company pursuant to this Section 5(a)
shall be the fair market value of such shares of Option Stock as of the date the Company
purchases such shares in accordance with this Section 5, as determined in good faith by the
Committee (without discount for lack of marketability or minority interest), based upon a
customary appraisal prepared by an independent appraisal company, or such other reasonable
valuation method as the Committee shall select and apply as of the given date.

(iii) If such termination of the Optionee’s employment is by the Company or an
Affiliate for Cause, or is by the Optionee, the purchase price to be paid by the Company for
any shares of Option Stock to be purchased by the Company pursuant to this Section 5(a)
shall be the lesser of: (A) the fair market value (as determined by the Committee in
accordance with subparagraph (ii) of this Section 5(a)) of such shares of Option Stock as of
the date the Company purchases such shares in accordance with this Section 5 and (B) the
purchase price set forth in Section 1 hereof for such shares of Option Stock.

(b) If the Company shall elect to exercise its right to purchase any Option Stock under this
Section 5, the closing of such purchase by the Company shall take place no later than forty-five
(45) days after the exercise of such right, which time in the case of the death of the Optionee may
be extended to provide for probate of the Optionee’s estate. On the date scheduled for such
closing, the price for the shares of Option Stock to be purchased by the Company, determined in
accordance with paragraph (a) of this Section 5, shall be paid by the Company by check or checks to
the record holder of such shares against delivery of a certificate or certificates representing the
purchased shares in proper form for transfer. Notwithstanding the immediately preceding sentence
to the contrary, the Company may pay such price for the shares of Option Stock to be purchased by
the Company, in whole or in part, by offsetting amounts outstanding under any indebtedness or
obligations owed by the Optionee or any other person permitted to exercise the Option under Section
2(d) hereof to the Company or any Affiliate. In connection with such closing, such record holder
shall warrant in writing to the Company good and marketable title to Option Stock, free and clear
of all claims, liens, charges, encumbrances and security interests of any nature whatsoever except
those under this Agreement. Notwithstanding anything to the contrary contained herein, all
repurchases of Option Stock by the Company will be subject to applicable restrictions contained
under Delaware law and in the Company’s and any Affiliate’s debt and equity financing agreements.
If any such restrictions prohibit the Company’s purchase of Option Stock pursuant to this Section 5
which the Company is otherwise entitled to make, the Company may make such purchases as soon as it
is permitted to do so under such restrictions, and all restrictions on the transfer of Option Stock
in effect on the date such Company purchase right arose shall remain in effect until fifteen (15)
days after the end of the period in which the Company is permitted to make such purchases.

 

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(c) None of the shares of Option Stock shall be transferred on the Company’s books nor shall
the Company recognize any such purported Transfer of any such shares or any interest therein unless
and until all applicable provisions of Sections 4, 5 and 6 of this Agreement have been complied
with in all respects. The certificates evidencing shares of Option Stock shall bear the legend
required in the Stockholders Agreement, as well as the legend to the following effect:

“The shares represented by this certificate are subject to certain restrictions against
transfer set forth in a Stockholders Agreement, dated as of December 22, 2004, by and among
AMH Holdings II, Inc. (the “Company”), Harvest Partners III, L.P., Harvest Partners III
Beteiligungsgesellschaft Bürgerlichen Rechts (mit Haftungsbeschränkung), Harvest Partners
IV, L.P., and Harvest Partners IV GmbH & Co. KG, and AM Holding Limited, AM Equity Limited,
AM Investments Limited, Associated Equity Limited and Associated Investments Limited, and
the other parties named therein (as such agreement may be amended from time to time), and a
Stock Option Award Agreement between the stockholder to whom the shares were originally
issued and the Company, dated May
 _____, 2008, as may be amended from time to time. Such
 shares are also subject to a call option of the Company as described in Section 5 of such
Stock Option Award Agreement.”

(d) The parties agree that irreparable damage would occur in the event that any of the
provisions of this Section 5 were not performed in accordance with their specific terms or were
otherwise breached. Accordingly, the parties shall be entitled to an injunction or injunctions to
prevent breaches of this Section 5 and to enforce specifically the terms and provisions of this
Section 5, in addition to any other remedy to which they are entitled at law or in equity.

6. Restrictions on Transfer of Option Stock. The Optionee shall not Transfer shares
of Option Stock received by the Optionee (or any interest or right in such shares) except: (a) to
the Company, to the extent permitted under the Stockholders Agreement; (b) pursuant to a
registration statement filed pursuant to the Securities Act or, at any time after an initial public
offering of the Company, pursuant to Rule 144 under the Securities Act in an unsolicited brokerage
transaction to the public; or (c) as otherwise permitted under the Stockholders Agreement.

7. Certain Other Representations and Covenants of the Optionee. The Optionee hereby
acknowledges receipt of a copy of the Plan and the Stockholders Agreement, and represents that he
is familiar with the terms and provisions thereof. The Optionee hereby represents and acknowledges
that he has reviewed the Plan, this Agreement and the Stockholders Agreement in their entirety, has
had an opportunity to obtain the advice of counsel prior to executing this Agreement and the
Stockholders Agreement, and fully understands all provisions of the Plan, this Agreement and the
Stockholders Agreement. The Optionee hereby agrees to be bound by all of the terms and provisions
of the Plan, this Agreement and the Stockholders Agreement, including the terms and provisions
adopted after the granting of the Option but prior to the complete exercise hereof, subject to the
last paragraph of Section 13 of the Plan as in effect on the date hereof. The Optionee hereby
agrees to accept as binding, conclusive and final all decisions and interpretations of the
Committee or the Board made in good faith upon any questions arising under the Plan, this
Agreement, the Stockholders Agreement or otherwise relating to the Option.

8. Forfeiture. Notwithstanding any other provisions of this Agreement to the
contrary, in the event of a breach by the Optionee of any of the Optionee’s covenants set forth in
the Employment Agreement, or in the event that the Optionee’s employment is terminated by the
Company or an Affiliate for Cause, then the Option shall thereupon automatically terminate and
cease to thereafter be exercisable with respect to any shares of Stock without any further
action required by the Company.

 

-7-

 

9. Notices. Any Notice or other communication required or permitted hereunder shall
be in writing and in accordance with the Plan, and shall deemed to have been duly given if
delivered in person or by facsimile or sent by nationally-recognized overnight courier or first
class registered or certified mail, return receipt requested, postage prepaid, to the other party
at the following addresses (or at such other address as shall be given in writing by either party
to the other):

If to the Company to:

AMH Holdings II, Inc.

3737 State Road

Cuyahoga Falls, Ohio 44223

Attention: Chief Financial Officer

Facsimile: (330) 922-2312

with copies (which shall not constitute notice) to:

Harvest Partners, Inc.

280 Park Avenue, 33rd Floor

New York, New York 10017

Attention: Ira D. Kleinman

Christopher D. Whalen

Facsimile: (212) 812-0100

and

White & Case LLP

1155 Avenue of the Americas

New York, New York 10036

Attention: John Reiss, Esq.

Oliver C. Brahmst, Esq.

Facsimile: (212) 354-8113

a copy (which shall not constitute notice) to:

Investcorp Management Services Limited

c/o Investcorp Bank B.S.C.

P.O. Box 5340

Investcorp House

Manama, Bahrain

Attention: Gary S. Long

Facsimile: 011-973-536-541

 

-8-

 

with a copy (which shall not constitute notice) to:

Gibson, Dunn & Crutcher LLP

200 Park Avenue

New York, New York 10166

Attention: William M. Rustum

Facsimile: (212) 351-4035

If to the Optionee to the address set forth below his signature hereon.

10. Governing Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of New York applicable to contracts executed
and to be performed entirely within such state, without regard to the conflict of law provisions
thereof.

11. Severability. If any of the provisions of this Agreement should be deemed
unenforceable, the remaining provisions shall remain in full force and effect.

12. Modification. Except as otherwise permitted by the Plan, this Agreement may not
be modified or amended, nor may any provision hereof be waived, in any way except in writing signed
by the parties hereto.

13. Counterparts. This Agreement has been executed in two counterparts, each of which
shall constitute one and the same instrument.

[signature page follows]

 

-9-

 

IN WITNESS WHEREOF, AMH Holdings II, Inc. has caused this Agreement to be executed by a duly
authorized officer and the Optionee has executed this Agreement, both as of the day and year first
written above.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	AMH HOLDINGS II, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	By: 	 	 	 
	 

	 	 

	 	 	 	 	Name: 	 
Cynthia Sobe
	 	 
	 

	 	 	 	 	 	 	Title: 	 Vice President, CFO	 	 
	Date:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	Name: 	 	 	 
	 

	 	 	 	 	 	 	Address: 	 	 

 

-10-

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