Document:

Exhibit 10.1

    RETIREMENT
      AND CONSULTING AGREEMENT

     

    This
      Retirement and Consulting Agreement (this “Agreement”)
      is
      entered into effective as of October 13, 2006 (the “Effective
      Date”)
      by and
      between the “Company,” “Ply Gem Holdings,” “PIHI”, “Prime Holdings,” Lee Meyer
      (the “Executive”)
      and,
      for purposes of Section IID only, the Meyer Family Investment, L.P (the
“Meyer
      Family Trust”).
      For
      purposes of this Agreement, (i) “PIHI”
shall
      mean Ply Gem Investment Holdings, Inc., a Delaware corporation, (ii)
“Ply
      Gem Holdings”
shall
      mean Ply Gem Holdings, Inc., a Delaware corporation and wholly-owned subsidiary
      of PIHI, (iii) “Prime
      Holdings”
shall
      mean Ply Gem Prime Holdings, Inc., a Delaware corporation and parent of PIHI,
      and (iv) the “Company”
shall
      mean Ply Gem Industries, Inc., a Delaware corporation and wholly-owned
      subsidiary of Ply Gem Holdings.

     

    WHEREAS,
      the Executive is currently employed by the Company and holds the positions
      of
      Chief Executive Officer and President of each of PIHI, Ply Gem Holdings, Prime
      Holdings and the Company (collectively, the “Companies”);
      and

     

    WHEREAS,
      the Companies and the Executive have agreed that the Executive’s employment with
      the Company shall terminate, and the Executive shall resign from his positions
      as Chief Executive Officer and President of the Companies, in each case,
      effective as of the Effective Date; and 

     

    WHEREAS,
      the Companies desire to provide the Executive with certain benefits upon the
      Executive’s retirement from employment with the Companies, in exchange for the
      Executive’s agreement to provide certain consulting services to the Companies
      after such termination, comply with certain restrictive covenants in favor
      of
      the Companies and release certain claims against the Companies and their
      subsidiaries, parents, shareholders and their respective executives, officers,
      directors, partners, members and agents, on the terms and subject to the
      conditions more fully set forth in this Agreement.

     

    NOW
      THEREFORE, in consideration of the promises, mutual covenants and other good
      and
      valuable consideration set forth in this Agreement, the receipt and sufficiency
      of which is hereby acknowledged, the Executive and the Companies agree as
      follows:

     

    I.  Termination
      of Employment; Resignation from Positions

     

    The
      Executive’s employment by the Company and any and all titles, positions and
      appointments the Executive holds with the Companies or any of their subsidiaries
      (collectively with the Companies, the “Company
      Group”),
      whether as an officer, director, employee, consultant (except
      pursuant to Section III of this Agreement),
      agent
      or otherwise (including, without limitation,
      as Chief
      Executive Officer and President and as a member of the Board of Directors of
      each of the Companies) shall cease as of the Effective Date. Effective
      as of the Effective Date, the Executive shall have no authority to act on behalf
      of any member of the Company Group and shall not hold himself out as having
      such
      authority, enter into any agreement or incur any obligations on behalf of any
      member of the Company Group, commit any member of the Company Group in any
      manner or otherwise act in an executive or other decision-making capacity with
      respect to any member of the Company Group. The Executive agrees to make himself
      available to provide consulting services pursuant to the terms of Section III
      of
      this Agreement.

     

    
      
        IRS
          Circular 230 disclosure:
          To ensure compliance with requirements imposed by the IRS, we inform you
          that
          any U.S. federal tax advice contained in this document is not intended
          or
          written to be used, and cannot be used, for the purpose of (i) avoiding
          penalties under the Internal Revenue Code or (ii) promoting, marketing
          or
          recommending to another party any transaction or matter that is contained
          in
          this document.

        

        Doc
          #:NY7:103390.11

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    II.  Payments
      and Benefits

     

      In
        consideration for the Executive’s entering into this Agreement, specifically
        including the restrictive covenants contained in Section VI of this Agreement
        and the Executive’s execution on the Effective Date of a release of claims
        substantially in the form attached to this Agreement as Exhibit A (the “Release”),
        the Executive shall be entitled to receive the payments and benefits described
        in Sections IIA, IIB and IIC of this Agreement, subject to the
        Executive’s (i) executing the Release on the Effective Date and not revoking the
        Release before expiration of the seven-day revocation period described therein,
        and (ii) continued compliance with the covenants set forth in Section VI
        of this
        Agreement on the terms described in Section VIH of this
        Agreement.

     

    A.  Continued
      payment during the period commencing on the Effective Date and ending on the
      second anniversary of the Effective Date (the “Consulting
      Period”)
      of the
      Executive’s annual base salary in effect immediately prior to the Effective Date
      (which, for the avoidance of doubt, shall not include any amounts in respect
      of
      any car allowance or payments for any other perquisites or benefits for the
      Executive), in 24 equal monthly installments during the Consulting
      Period;

     

    B.  Medical
      and dental benefit coverage during the Consulting Period; provided that, with
      respect to the period commencing on the Effective Date and ending on the date
      on
      which the Executive’s coverage under the Consolidated Omnibus Budget
      Reconciliation Act of 1985, as amended (“COBRA”)
      terminates as provided by law, such coverage shall be provided in the form
      of
      payment by the Company of the Executive’s and his dependents’ COBRA premiums,
      and, with respect to any portion of the Consulting Period that continues after
      COBRA coverage terminates, the Company shall provide such additional coverage
      by
      either allowing the Executive to continue to participate in the Company’s
      medical and dental plans at the Company’s sole cost, or, if such continued
      participation is not permitted by the plan or by an insurance policy paying
      for
      benefits under the plan or if such continued participation would have an adverse
      impact on the tax-free nature of the medical and dental benefits provided to
      any
      other participant in the plan, then, the Company agrees to provide such coverage
      by purchasing for the Executive a medical and dental insurance policy that
      provides coverage that is as comparable as is commercially available to the
      coverage under the medical and dental plans in effect
      as
      of the Effective Date.
      If the
      Executive is required to pay tax with respect to the premium paid by the Company
      for such insurance policy, the Company shall pay the Executive 25% of the total
      amount of such taxable
      premium;

     

    C.  Payment
      by Prime Holdings of the “Stock Repurchase Amount”, subject to and in accordance
      with the terms and
      conditions of this Section IIC.

     

    
      
        
        

      

      
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    1.  Stock
      Repurchase Amount Definition.
      The
“Stock
      Repurchase Amount”
shall
      be an amount that constitutes the repurchase by Prime Holdings of the 112,800
      shares (the “Sweet
      Equity Shares”)
      of
      common stock, par value $0.01 per share, of Prime Holdings (“Prime
      Holdings Common Stock”)
      held
      by the Meyer Family Trust as of the Effective Date, and that were: (i) initially
      acquired by the Executive as 112,800 shares of common stock, par value $0.01
      per
      share, of PIHI (“PIHI
      Common Stock”)
      pursuant to an agreement between PIHI and the Executive dated July 28, 2005
      pursuant to which 112,800 phantom incentive stock units awarded to the Executive
      by PIHI on February 12, 2004 pursuant to the Ply Gem Investment Holdings, Inc.
      Phantom Plan (which was assumed by Prime Holdings in connection with the
      transactions contemplated by the Agreement and Plan of Merger and Contribution,
      dated February 24, 2006, by and between the Companies, Ply Gem Merger Sub,
      Inc.,
      a Delaware corporation and then a wholly-owned subsidiary of Prime Holdings,
      and
      certain executives of AWC Holding Company (the “Merger
      and Contribution Agreement”),
      and
      amended and restated as the Ply Gem Prime Holdings, Inc. Amended and Restated
      Phantom Stock Plan (the “Phantom
      Plan”))
      cancelled in exchange for the grant to the Executive of 112,800 shares of PIHI
      Common Stock, (ii) transferred by the Executive to the Meyer Family Trust on
      September
      28,
      2005,
      and (iii) converted into the Sweet Equity Shares pursuant to the transactions
      contemplated by the Merger and Contribution Agreement. 

     

    (a)  Stock
      Repurchase Amount Calculation.
      The
      Stock
      Repurchase Amount shall be $1,128,000, which represents the product of 112,800
      (the number of Sweet Equity Shares) and $10.00. 

     

    2.  Timing
      of Payment.
      The
      Stock Repurchase Amount shall be paid to the Executive as soon as reasonably
      practicable following the expiration of the revocation period set forth in
      the
      Release, subject to the Executive’s not having revoked the Release as of such
      date. 

     

    3.  Stock
      Repurchase Amount Upon Release Revocation, Other Executive
      Breach.
      If the
      Executive revokes the Release or otherwise breaches any of his obligations
      under
      this Agreement prior to the payment of the Stock Repurchase Amount, then this
      Section IIC shall be null and void, and the terms of the Ply
      Gem
      Prime Holdings, Inc. Stockholders Agreement, dated as of February 24, 2006,
      by
      and between Prime Holdings, PIHI, Caxton-Iseman (Ply Gem), L.P. and certain
      other investors in and management stockholders of Prime Holdings, as amended
      from time to time (the “Stockholders
      Agreement”)
      shall
      govern any rights of the Executive in respect of the Prime Holdings Common
      Stock.

     

    4.  PIHI
      Call.
      The
      Stock Repurchase Amount shall only be paid pursuant to this Section IIC
      following PIHI’s purchase of 112,800 shares of PIHI Common Stock from Prime
      Holdings, at a purchase price per share equal to the
      amount described in Section IIC2 above,
      pursuant
      to PIHI’s exercise of its “Call Right” set forth in
      the
      Stockholders’ Agreement, which purchase shall occur immediately prior to the
      repurchase contemplated by paragraph 1 of this Section IIC. 

     

    D.  Other
      Equity Holdings.
      The
      Executive acknowledges and agrees that, as of the Effective Date, in addition
      to
      the Sweet Equity Shares, the Executive holds (i) 8,780 shares of Prime Holdings
      Common Stock and 4,724 shares of senior preferred stock, par value $0.01 of
      Prime Holdings (“Prime
      Holdings Senior Preferred Stock”),
      which
      the Executive initially purchased as shares of PIHI Common Stock and shares
      of
      senior preferred stock, par value $0.01 per share, of PIHI (“PIHI
      Senior Preferred Stock”),
      pursuant to the Ply Gem Investment Holdings, Inc. Subscription Agreement -
      Strip, dated as of August 27, 2004, by and between PIHI and the Executive (the
      “Subscription
      Agreement”),
      and
      which were converted into 8,780 shares of Prime Holdings Common Stock and 4,724
      shares of Prime Holdings Senior Preferred Stock, respectively, in connection
      with the transactions contemplated by the Merger and Contribution Agreement,
      and
      (ii) 31,766
      shares of Prime Holdings Common Stock, which the Executive purchased on
      September 25

     

    
      
        
        

      

      
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    E.  ,
      2006 in
      connection with the termination of his award of phantom additional units under
      the Phantom Plan.
      The
      Companies and the Executive agree that the Stockholders’ Agreement shall remain
      in full force and effect with respect to the holdings described in the preceding
      sentence. The Executive acknowledges and agrees that, except as set forth in
      this Section II, as of the Effective Date, the Executive does not hold any
      outstanding shares of Prime Holdings Common Stock, Prime Holdings Senior
      Preferred Stock, PIHI Common Stock, PIHI Senior Preferred Stock, phantom
      incentive stock units, phantom additional units, stock options or other
      equity-based compensation awards or hold or have any rights relating to any
      other securities of Prime Holdings or PIHI or any member of the Company
      Group.

     

    F.  The
      Executive’s annual cash bonus for the 2006 fiscal year, calculated based on
      actual performance during 2006, pro-rated based on the Executive’s employment
      with the Company during 2006 until the Effective Date (the “Pro-Rated
      Bonus”),
      and
      payable at such time as annual cash bonuses in respect of fiscal year 2006
      are
      paid to other senior executives of the Company; provided, that, the bonus shall
      be paid in no event later than the date that is 2 1⁄2 months after the end of the
      2006 fiscal year.

     

    G.  As
      soon
      as reasonably practicable following the Effective Date or such earlier date
      as
      may be required by applicable state statute or regulation, (i) any annual base
      salary earned but unpaid through the Effective Date, (ii) payment in respect
      of
      any vacation time that is accrued but unused through the Effective Date, and
      (iii) reimbursement for all un-reimbursed business expenses properly incurred
      by
      the Executive in accordance with policies of the Companies prior to the
      Effective Date and not yet reimbursed by any of the Companies; provided, that,
      the Executive must submit to the applicable Company, within 30 days after the
      Effective Date, any outstanding expense reports within his possession, and
      the
      Executive shall not receive reimbursement in respect of any expense reports
      submitted after such date. For the avoidance of doubt, the payments described
      in
      this Section IIF are not intended to result in any duplication of any
      payments or benefits described in this Agreement or any compensation or benefits
      plans, policies, programs, agreements or arrangements of any of the
      Companies.

     

    H.  All
      benefits accrued up to the Effective Date, to the extent vested, under all
      employee benefit plans of the Companies and any members of the Company Group
      in
      accordance with the terms of such plans, except for under the Ply
      Gem
      Industries, Inc. Change in Control Severance Benefit Plan for Key Employees,
      dated October 30, 2003, as amended for the Executive, dated February 12, 2004
      (the “Change
      in Control Plan”),
      the
      Stockholders Agreement, the Ply Gem Investment Holdings, Inc. 2004 Stock Option
      Plan or under any plan, policy, program, practice, agreement or arrangement
      that
      provides for severance or separation pay or benefits or for any equity-based
      compensation award. 

     

    
      
        
        

      

      
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    I.  Full
      Satisfaction

     

    The
      Executive acknowledges and agrees that the Executive is not entitled to any
      other compensation or benefits from any of the Companies or any member of the
      Company Group (including without limitation any severance or retirement
      compensation or benefits), and as of and after the Effective Date, the Executive
      shall no longer participate in, accrue service credit or have contributions
      made
      on his behalf under any employee benefit plan sponsored by any member of the
      Company Group in respect of periods commencing on and following the Effective
      Date, including without limitation any plan which is intended to qualify under
      Section 401(a) of the Internal Revenue Code of 1986, as amended (a “Qualified
      Plan”);
      provided, that, except as expressly provided herein, nothing in this Agreement
      shall constitute a waiver by the Executive of his rights to vested benefits,
      if
      any, under any Qualified Plan or under any group health plan of any of the
      Companies or to any other fringe benefits to which he may be entitled under
      applicable law in respect of his services to the Company prior to the Effective
      Date.

     

    J.  Release

     

      The
        payments and benefits described in Sections IIA, IIB and IIC above shall
        be
        contingent on the Executive’s entering into the Release and not revoking such
        Release during the applicable seven-day revocation period set forth therein.
        If
        the Executive revokes such Release during the period described in the
        immediately preceding sentence, this Agreement shall be void as of and following
        the Effective Date, and applicable provisions of the Change in Control Plan,
        the
        Stockholders Agreement and other employee benefit plans of the Companies
        or
        members of the Company Group shall apply.

     

    K.  Continued
      Compliance with Certain Covenants

     

      Upon
        a determination by the Boards of Directors of the Companies that the Executive
        has violated (i) the Employee’s Non-Disclosure Agreement, previously signed by
        the Executive (the “Non-Disclosure
        Agreement”),
        the Ply Gem Industries, Inc. Employee Information Agreement, (the “Employee
        Information Agreement”) or any of Sections VIB, VIC, VIE, VIF or VIG
        of this Agreement, the Companies shall be entitled to immediately cease paying
        any amounts remaining due or providing any payments or benefits to the Executive
        pursuant to Sections IIA, IIB or IIC of this Agreement,
        and (ii) Section VIB of this Agreement, subject to applicable state law,
        the
        Companies shall be entitled to reclaim any amounts already paid to the Executive
        under Section IIA of this Agreement.

     

    III.  Consulting
      Services

     

    A.  With
      respect to the Consulting Period, the Companies hereby retain the Executive,
      and
      the Executive hereby agrees to serve, as a consultant to the Companies, on
      the
      terms and subject to the conditions of this Section III. During the Consulting
      Period, the Executive shall, from time to time at the request of any of the
      Companies, upon reasonable advance notice, engage in those consulting services
      and activities as may be requested by such Company (the “Consulting
      Services”),
      at
      such times and places as mutually agreed upon by the Executive and the Company;
      provided that the aggregate time or times that the Executive provides Consulting
      Services to any of the Companies shall not exceed three days per any calendar
      quarter occurring during the Consulting Period, or such greater amount of time
      agreed to by the Executive. 

     

    
      
        
        

      

      
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    B.  The
      Companies shall reimburse the Executive for all reasonable travel and related
      out-of-pocket expenses incurred by the Executive in performing the Consulting
      Services; provided that such expenses are incurred with the prior approval
      of
      the Companies, and the Executive provides the Companies with an itemized invoice
      of the expenses incurred. 

     

    C.  The
      Executive acknowledges that, during the Consulting Period, as a consultant,
      the
      Executive shall be an independent contractor and, by virtue of his being an
      independent contractor, shall not be eligible to actively participate in or
      accrue benefits under any employee benefit plan or program offered by any member
      of the Company Group to its employees; provided, however, that, subject to
      the
      terms of this Agreement, the Executive shall continue to receive the benefits
      set forth in Section IIA of this Agreement. The Parties agree that, during
      the
      Consulting Period, Executive shall be an independent contractor for purposes
      of
      all federal, state and local laws governing worker’s compensation
      insurance.

     

    D.  In
      performing the Consulting Services, the Executive shall have no authority to
      act
      as an agent of any of the Companies, except on authority specifically so
      delegated in writing, and he shall not represent contrary to any person, and
      shall only consult, render advice and perform such tasks as the Executive deems
      are necessary to achieve the results specified by the Companies. 

     

    E.  The
      Executive acknowledges and agrees that he shall not be entitled to receive
      any
      compensation, fees or benefits in addition to those described in this Agreement
      in exchange for his agreement to provide the Consulting Services pursuant to
      this Section III.

     

    IV.  Additional
      Consideration

     

    The
      Executive acknowledges that, except with respect to the payments described
      in
      Section IIF of this Agreement, pursuant to this Agreement he is receiving
      consideration in addition to any amounts to which he would have otherwise been
      entitled but for this Agreement.

     

    V.  Return
      of Company Property

     

      No
        later than the Effective Date, the Executive shall return to the Companies
        all
        originals and copies of papers, notes and documents (in any medium, including
        computer disks), whether property of any member of the Company Group or not,
        prepared, received or obtained by the Executive during the course of, and
        in
        connection with, his employment with or services for the Companies or any
        member
        of the Company Group, and all equipment and property of any member of the
        Company Group which may be in the Executive’s possession or under his control,
        whether at the Company’s offices, the Executive’s home or elsewhere, including
        all such papers, work papers, notes, documents and equipment in the possession
        of the Executive. The Executive agrees that he and his family shall not retain
        copies of any such papers, work papers, notes and documents. Notwithstanding
        the
        foregoing, the Executive may retain copies of the Change in Control Plan,
        the
        Phantom Plan, the Stockholders Agreement and any employment, compensation
        or
        benefits agreements between the Executive and any of the Companies, this
        Agreement and any employee benefit plan materials distributed generally to
        participants in any such plan by the Companies. On the Effective Date, all
        telephone and other accounts being paid by the Companies on the Executive’s
        behalf shall be terminated and all company credit cards shall be returned
        to the
        Companies and canceled. To the extent any charges are made by the Executive
        using company accounts or credit cards after the Effective Date, such charges
        will be solely the Executive’s responsibility. 

     

    
      
        
        

      

      
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    VI.  Restrictive
      Covenants

     

    A.  Survival
      of Non-Disclosure Agreement; Employee Information Agreement; Ply Gem Code of
      Ethics

     

      Notwithstanding
        anything to the contrary in this Agreement, the covenants and other provisions
        set forth in the Non-Disclosure Agreement, the Employee Information Agreement,
        the Ply Gem Industries, Inc. Code of Ethics as constituted on the Effective
        Date (the “Ply
        Gem Code of Ethics”) and Section 6.3 of the Stockholders Agreement
        that expressly survive termination of the Executive’s employment shall survive
        the Effective Date and be effective for the periods described
        therein.

     

    B.  Non-Competition/Non-Solicitation

     

    The
      Executive acknowledges and recognizes the highly competitive nature of the
      businesses of the Company and its subsidiaries and controlled affiliates and
      accordingly agrees as follows:

     

    1.  During
      the period commencing on the Effective Date and ending on the second anniversary
      of the Effective Date (the “Restricted
      Period”),
      or
      such longer period as described in the last sentence of Section VIH of this
      Agreement, the Executive will not, directly or indirectly, (a)
      engage in any “Competitive Business” (defined below) for the Executive’s own
      account, (b) enter the employ of, or render any services to, any person engaged
      in any Competitive Business, (c) acquire a financial interest in, or otherwise
      become actively involved with, any person engaged in any Competitive Business,
      directly or indirectly, as an individual, partner, shareholder, officer,
      director, principal, agent, trustee or consultant, or (d) interfere with
      business relationships between the Company and customers or suppliers of, or
      consultants to, the Company.

     

    2.  For
      purposes of this Section VIB, a “Competitive Business” means, as of any date,
      including during the Restricted Period, any person or entity (including any
      joint venture, partnership, firm, corporation or limited liability company)
      that
      engages in or proposes to engage in the following activities in any geographical
      area in which the business unit for which the Executive works does business:
      the
      manufacture and sale of vinyl, aluminum or wood windows and doors; vinyl, metal
      or composite siding and accessories; and vinyl or composite fencing and
      decking.

     

    3.  For
      purposes of Section VIB of this Agreement, the Company shall be construed to
      include the Company and its subsidiaries and controlled affiliates.

     

    4.  Notwithstanding
      anything to the contrary in this Agreement, the Executive may, directly or
      indirectly, own, solely as an investment, securities of any person engaged in
      the business of the Company which are publicly traded on a national or regional
      stock exchange or on the over-the-counter market if the Executive (A) is not
      a
      controlling person of, or a member of a group which controls, such person and
      (B) does not, directly or indirectly, own one percent (1%) or more of any class
      of securities of such person.

     

    
      
        
        

      

      
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    5.  During
      the Restricted Period, the Executive will not, directly or indirectly, without
      the Company’s written consent, solicit or encourage to cease to work with the
      Company any employee or any consultant of the Company or any person who was
      an
      employee of or consultant then under contract with the Company within the
      six-month period preceding such activity. In addition, during the Restricted
      Period, the Executive will not, without the Company’s written consent, directly
      or indirectly hire any person who is or who was, within the six-month period
      preceding such activity, an employee of the Company.

     

    6.  The
      Executive understands that the provisions of this Section VIB may limit the
      Executive’s ability to earn a livelihood in a business similar to the business
      of the Company, but the Executive nevertheless agrees and hereby acknowledges
      that (a) such provisions do not impose a greater restraint than is necessary
      to
      protect the goodwill or other business interests of the Company, (b) such
      provisions contain reasonable limitations as to time and scope of activity
      to be
      restrained, (c) such provisions are not harmful to the general public and (d)
      such provisions are not unduly burdensome to the Executive. In consideration
      of
      the foregoing and in light of the Executive’s education, skills and abilities,
      the Executive agrees that he shall not assert that, and it should not be
      considered that, any provisions of Section VIB of this Agreement otherwise
      are
      void, voidable or unenforceable or should be voided or held
      unenforceable.

     

    7.  It
      is
      expressly understood and agreed that, although the Executive and the Company
      consider the restrictions contained in this Section VIB to be reasonable, if
      a
      judicial determination is made by a court of competent jurisdiction that the
      time or territory or any other restriction contained in this Section VIB or
      elsewhere in this Agreement is an unenforceable restriction against the
      Executive, the provisions of the Agreement shall not be rendered void but shall
      be deemed amended to apply as to such maximum time and territory and to such
      maximum extent as such court may judicially determine or indicate to be
      enforceable. Alternatively, if any court of competent jurisdiction finds that
      any restriction contained in this Agreement is unenforceable, and such
      restriction cannot be amended so as to make it enforceable, such finding shall
      not affect the enforceability of any of the other restrictions contained
      herein.

     

    C.  Nondisparagement

     

    1.  The
      Executive agrees (whether before or after the Effective Date) not to issue,
      circulate, publish or utter any false or disparaging statements, remarks or
      rumors about any of the Companies or any member of the Company Group or any
      of
      their respective shareholders, officers, directors or managers, other than
      to
      the extent reasonably necessary in order to (i) assert a bona fide claim against
      any of the Companies or any member of the Company Group arising out of the
      Executive’s employment with the Companies, or (ii) respond in a truthful and
      appropriate manner to any legal process or give truthful and appropriate
      testimony in a legal or regulatory proceeding. 

     

    
      
        
        

      

      
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    2.  The
      Companies agree to instruct their respective shareholders, officers, directors
      and managers, (whether before or after the Effective Date) not to issue,
      circulate, publish or utter any false or disparaging statements, remarks or
      rumors about the Executive other than to the extent reasonably necessary in
      order to (i) assert a bona fide claim against the Executive arising out of
      the
      Executive’s employment with the Companies, or (ii) respond in a truthful and
      appropriate manner to any legal process or give truthful and appropriate
      testimony in a legal or regulatory proceeding. 

     

    D.  Company
      Policies

     

    The
      Executive agrees to abide by the terms of any policies or codes of conduct
      of
      the Companies that (i) expressly apply
      to
      the Executive after
      termination of employment,
      or
      (ii) during the Consulting Period apply to consultants to the
      Companies.

     

    E.  Confidentiality

     

      The
        Executive shall not, without the prior written consent of the Companies,
        use,
        divulge, disclose or make accessible to any other person, firm, partnership,
        corporation or other entity, any “Confidential Information” (as defined below)
        except while employed by the Companies, in furtherance of the business of
        and
        for the benefit of the Companies, or any “Personal Information” (as defined
        below); provided that the Executive may disclose such information in any
        proceeding in which he is making a bona fide claim against the Companies
        or
        defending any claim of the Companies, when required to do
        so by a court of competent jurisdiction, by any governmental agency having
        supervisory authority over the business of the Companies and/or any member
        of
        the Company Group, as the case may be, or by any administrative body or
        legislative body (including a committee thereof) with jurisdiction to order
        the
        Executive to divulge, disclose or make accessible such information; provided,
        further, that in the event that the Executive is ordered by a court or other
        government agency to disclose any Confidential Information or Personal
        Information, the Executive shall (i) promptly notify the Companies of such
        order, (ii) at the written request of the Companies, diligently contest such
        order at the sole expense of the Companies as expenses occur, and (iii) at
        the
        written request of the Companies, seek to obtain, at the sole expense of
        the
        Companies, such confidential treatment as may be available under applicable
        laws
        for any information disclosed under such order. For purposes of this Section
        VIE, (i) “Confidential
        Information” shall mean non-public information concerning the
        financial data, strategic business plans, product development (or other
        proprietary product data), customer lists, marketing plans and other non-public,
        proprietary and confidential information relating to the business of the
        Companies or any member of the Company Group or any of their customers, that,
        in
        any case, is not otherwise available to the public (other than by the
        Executive’s breach of the terms hereof) and (ii) “Personal
        Information” shall mean any information concerning the personal,
        social or business activities of the shareholders, officers or directors
        of the
        Companies. 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    F.  Developments

     

    All
      discoveries, inventions, ideas, technology, formulas, designs, software,
      programs, algorithms, products, systems, applications, processes, procedures,
      methods and improvements and enhancements conceived, developed or otherwise
      made
      or created or produced by the Executive, alone or with others, and in any way
      relating to the business or any proposed business of the Companies of which
      the
      Executive has been made aware, or the products or services of the Companies
      of
      which the Executive has been made aware, whether or not subject to patent,
      copyright or other protection and whether or not reduced to tangible form,
      at
      any time during the Executive’s employment with the Companies or any member of
      the Company Group (“Developments”),
      shall
      be the sole and exclusive property of the Companies. The Executive agrees to,
      and hereby does, assign to the Companies, without any further consideration,
      all
      of the Executive’s right, title and interest throughout the world in and to all
      Developments. The Executive agrees that all such Developments that are
      copyrightable may constitute works made for hire under the copyright laws of
      the
      United States and, as such, acknowledges that the applicable Company is the
      author of such Developments and owns all of the rights comprised in the
      copyright of such Developments, and the Executive hereby assigns to the
      Companies, without any further consideration, all of the rights comprised in
      the
      copyright and other proprietary rights the Executive may have in any such
      Development to the extent that it might not be considered a work made for hire.
      The Executive shall make and maintain adequate and current written records
      of
      all Developments and shall disclose all Developments promptly, fully and in
      writing to the Companies promptly after development of the same, and at any
      time
      upon request.

     

    G.  Cooperation

     

      At
        any time after the date of the Executive’s
        termination of employment, the Executive agrees to reasonably cooperate (i)
        with
        the Companies in the defense of any legal matter involving any matter that
        arose
        during the Executive’s employment with the Companies and (ii) with all
        government authorities on matters pertaining to any investigation, litigation
        or
        administrative proceeding pertaining to the Companies. The Companies will
        reimburse the Executive for any earnings lost, and any reasonable travel
        and out
        of pocket expenses incurred, by the Executive in providing such
        cooperation.

     

    H.  Enforcement

     

      The
        Executive acknowledges and agrees that the Companies’ remedies at law for a
        breach or threatened breach of any of the provisions of Sections VIB, VIC,
        VIE
        and VIF of this Agreement would be inadequate, and, in recognition of this
        fact,
        the Executive agrees that, in the event of such a breach or threatened breach,
        in addition to any remedies at law, the Company, without posting any bond,
        shall
        be entitled to obtain equitable relief in the form of specific performance,
        temporary restraining order, temporary or permanent injunction or any other
        equitable remedy which may then be available. In addition, upon a determination
        by the Boards of Directors of the Companies that the Executive has violated
        (i)
        the Non-Disclosure Agreement, the Employee Information Agreement or any
        provision of Section VIB, VIC, VIE, VIF or VIG of this Agreement, the Companies
        shall be entitled to immediately cease paying any amounts remaining due or
        providing any benefits to the Executive pursuant to Sections
        IIB or IIC of the Agreement, and (ii) with respect to
        the Executive’s violation of Section VIB of this Agreement, subject to
        applicable state law, the Company shall be entitled to reclaim any amounts
        already paid under Section IIB of this Agreement, subject,
        in the case of clauses (i) and (ii), above, to payment of all such amounts
        upon
        a final determination that the Executive had not violated such Section. If
        the
        Executive breaches any of the covenants contained in Section VIB, VIC, VIE
        or
        VIF of this Agreement, and the Company Group obtains injunctive relief with
        respect thereto, the period during which the Executive is required to comply
        with that particular covenant shall be extended by the same period that the
        Executive was in breach of such covenant prior to the effective date of such
        injunctive relief.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    VII.  Miscellaneous

     

    A.  Entire
      Agreement.
      This
      Agreement is the entire agreement between the Executive and the Companies with
      respect to the subject matter hereof and contains all agreements, whether
      written, oral, express or implied, between the Executive and the Companies
      relating thereto and, effective as of the Effective Date, supersedes and
      extinguishes any other agreement relating thereto, whether written, oral,
      express or implied, between the Executive and any of the Companies, including,
      without limitation, the Change in Control Plan; provided, that (i) the
      Non-Disclosure Agreement, the Employee Information Agreement and the Ply Gem
      Code of Ethics shall not be superseded by this Agreement and shall remain in
      full force and effect, (ii) the continuing effect of the Stockholders Agreement
      and the Subscription Agreement, as applied to the Executive, shall
      be as
      set forth in Section II
      of this
      Agreement, and (iii) the Executive’s awards under the Phantom Plan, including
      any amendments to such awards as of the Effective Date or amendments to such
      awards after the Effective Date shall not be superseded or amended in any way
      by
      this Agreement and all agreements and documents relating to the Executive’s
      awards under the Phantom Plan (and any aforementioned amendments) shall continue
      to be in full force and effect, and provided, further, that, no rights or
      obligations established under any superseded agreement and specifically
      preserved by this Agreement are extinguished. Other than this Agreement and
      as
      otherwise explicitly stated in this Agreement, including, without
      limitation, in Section IIC
      of this
      Agreement and in clause (iii) of the preceding sentence, there are no agreements
      of any nature whatsoever between the Executive and any member of the
      Company
      Group that survive this Agreement. 

     

    B.  Modification.
      This
      Agreement may not be modified or amended, nor may any rights under it be waived,
      except in a writing signed and agreed to by the Companies and the Executive.
      

     

    C.  Notices.
      Any
      notice given pursuant to the Agreement to any party hereto shall be deemed
      to
      have been duly given when mailed by registered or certified mail, return receipt
      requested, or by overnight courier, or when hand delivered as
      follows:

     

    If
      to the
      Companies:

     

    Ply
      Gem
      Prime Holdings, Inc.

    P.O.
      Box
      1017

    Kearney,
      MO 64060

    Attention:
      Shawn Poe, Chief Financial Officer 

    
 

    Paul,
      Weiss, Rifkind, Wharton & Garrison LLP

    1285
      Avenue of the Americas

    New
      York,
      New York 10019-6064

    Attention:
      Carl Reisner, Esq. 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    If
      to the
      Executive:

     

    208
      Shawna Drive

    Kearney,
      MO 64060

     

    or
      at
      such other address as either party shall from time to time designate by written
      notice, in the manner provided herein, to the other party hereto.

     

    D.  Successors;
      Death Benefit.
      The
      Agreement shall be binding upon and inure to the benefit of the Companies,
      the
      Executive and their respective heirs, successors and assigns. In the event
      the
      Executive dies at any time after the Effective Date and before any amounts
      payable to him under this Agreement are paid in full, the amounts remaining
      to
      be paid under Sections IIA,
      IIB,
      IIC,
IIE
      and IIF
      of this Agreement at the time of his death shall be paid (at such times as
      such
      amounts would have been paid to the Executive and,
      with
      respect to Sections IIA and IIB, for the full Consulting Period)
      to his
      surviving spouse, if any, and otherwise to his estate.

     

    E.  Taxes.
      Notwithstanding any other provision of this Agreement to the contrary, the
      Companies or any member of the Company Group, as applicable, may withhold from
      all amounts payable under this Agreement all federal, state, local and foreign
      taxes that are required to be withheld pursuant to any applicable laws and
      regulations. Notwithstanding anything to the contrary in Section III of this
      Agreement, the Companies and the Executive acknowledge that the
      payments
      described in Section IIA
      of this
      Agreement shall be treated as wages for all income and employment tax purposes.
      The Executive shall be responsible for the payment of his portion of any and
      all
      required federal, state, local and foreign taxes incurred, or to be incurred,
      in
      connection with any amounts payable to the Executive under this Agreement.
      

     

    F.  Severability.
      In the
      event that any provision of the Agreement is determined to be invalid or
      unenforceable, the remaining terms and conditions of the Agreement shall be
      unaffected and shall remain in full force and effect. In addition, if any
      provision is determined to be invalid or unenforceable due to its duration
      and/or scope, the duration and/or scope of such provision, as the case may
      be,
      shall be reduced, such reduction shall be to the smallest extent necessary
      to
      comply with applicable law, and such provision shall be enforceable, in its
      reduced form, to the fullest extent permitted by applicable law.

     

    G.  Non-Admission.
      Nothing
      contained in the Agreement shall be deemed or construed as an admission of
      wrongdoing or liability on the part of the Executive or on the part of any
      member of the Company Group.

     

    H.  No
      Mitigation.
      The
      Executive shall not be required to mitigate the amount of any payment provided
      for pursuant to this Agreement by seeking other employment and, to the extent
      that the Executive obtains or undertakes other employment, the payment will
      not
      be reduced by the earnings of the Executive from the other
      employment.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    I.  Governing
      Law.

     

    THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF DELAWARE APPLICABLE TO AGREEMENTS MADE AND TO BE WHOLLY PERFORMED
      WITHIN THAT STATE, WITHOUT REGARD TO ITS CONFLICT OF LAWS PROVISIONS OR THE
      CONFLICT OF LAWS PROVISIONS OF ANY OTHER JURISDICTION WHICH WOULD CAUSE THE
      APPLICATION OF ANY LAW OTHER THAN THAT OF THE STATE OF DELAWARE.

     

      Each
        party to this Agreement irrevocably agrees for the exclusive benefit of the
        other that any and all suits, actions or proceedings relating to Section
        VIB of
        this Agreement (collectively, “Actions”
        and, individually, an “Action”) may
        be maintained in either the courts of the State of Delaware or the federal
        District Courts sitting in Wilmington, Delaware (collectively, the “Chosen
        Courts”) and that the Chosen Courts shall have jurisdiction to
        hear and determine or settle any such Action and that any such Actions may
        be
        brought in the Chosen Courts. Each party irrevocably waives any objection
        that
        it may have now or hereafter to the laying of the venue of any Actions in
        the
        Chosen Courts and any claim that any Actions have been brought in an
        inconvenient forum and further irrevocably agrees that a judgment in any
        Action
        brought in the Chosen Courts shall be conclusive and binding upon it and
        may be
        enforced in the courts of any other jurisdiction. 

     

    Each
      party to this Agreement agrees that this Agreement involves at least $100,000
      and that this Agreement has been entered into in express reliance on Section
      2708 of Title 6 of the Delaware Code. Each of the parties to this Agreement
      irrevocably and unconditionally agrees (i) that, to the extent such party is
      not
      otherwise subject to service of process in the State of Delaware, it will
      appoint (and maintain an agreement with respect to) an agent in the State of
      Delaware as such party’s agent for acceptance of legal process and notify the
      other parties hereto of the name and address of said agent, (ii) that service
      of
      process may also be made on such party by pre-paid certified mail with a
      validated proof of mailing receipt constituting evidence of valid service sent
      to such party at the address set forth in this Agreement, as such address may
      be
      changed from time to time pursuant hereto, and (iii) that service made pursuant
      to clause (i) or (ii) above shall, to the fullest extent permitted by applicable
      law, have the same legal force and effect as if served upon such party
      personally within the State of Delaware.

     

    J.  Waiver
      of Jury Trial.
      The
      Companies and the Executive each hereby waive any right to a trial by jury
      in
      any action, suit or other legal proceeding arising under or relating to any
      provision of this Agreement.

     

    K.  Counterparts.
      The
      Agreement may be executed by one or more of the parties hereto on any number
      of
      separate counterparts and all such counterparts shall be deemed to be one and
      the same instrument. Each party hereto confirms that any facsimile copy of
      such
      party’s executed counterpart of the Agreement (or its signature page thereof)
      shall be deemed to be an executed original thereof.

     

    [Remainder
      of Page Intentionally Left Blank; Signature Page to
      Follow]

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the undersigned have executed the Agreement on the date first
      written above.

     

    _________________________________
      

    Lee
      Meyer

     

    PLY
      GEM
      INDUSTRIES, INC.

     

    _________________________________

    Shawn
      Poe

    Chief
      Financial Officer

    

    PLY
      GEM
      HOLDINGS, INC.

     

    By:_________________________________

    Title:
      Chief Financial Officer

     

    PLY
      GEM
      INVESTMENT HOLDINGS, INC.

     

    By:_________________________________

    Title:
      Chief Financial Officer

     

    PLY
      GEM
      PRIME HOLDINGS, INC.

     

    By:_________________________________

    Title:
      Chief Financial Officer

     

    For
      purposes of Section IIC only, 

     

    THE
      MEYER
      FAMILY INVESTMENT, L.P.

     

    By:_________________________________

    Title:

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

        
        

      

    

    RELEASE
      OF CLAIMS

     

    Ply
      Gem
      Prime Holdings, Inc., a Delaware corporation (“Prime
      Holdings”),
      Ply
      Gem Investment Holdings, Inc., a Delaware corporation and wholly-owned
      subsidiary of Prime Holdings (“PIHI”),
      Ply
      Gem Holdings, Inc., a Delaware corporation and wholly-owned subsidiary of PIHI
      (“Ply
      Gem Holdings”),
      Ply
      Gem Industries, Inc., a Delaware corporation and wholly-owned subsidiary of
      Ply
      Gem Holdings (the “Company”),
      Lee
      Meyer (the “Executive”)
      and,
      for certain purposes only, the Meyer Family Investment, L.P (the “Meyer
      Family Trust”)
      are
      parties to a Retirement and Consulting Agreement, effective as of October 13,
      2006 (the “Agreement”),
      under
      which the parties mutually agreed to terminate the Executive’s employment with
      each of Prime Holdings, PIHI, Ply Gem Holdings and the Company (collectively,
      the “Companies”),
      effective upon the Effective Date, as defined in the Agreement. In consideration
      of the promises set forth in this Release and the Agreement, the Executive
      agrees as follows:

     

    1.  Acknowledgment
      and Release

     

    In
      consideration of the Companies’ execution of the Agreement, and except with
      respect to the Companies’ obligations arising under or preserved in the
      Agreement, the Executive, for and on behalf of himself and his heirs and
      assigns, hereby waives and releases all common law, statutory or other
      complaints, claims, charges or causes of action arising out of or relating
      to
      the Executive’s employment or termination of employment with, or his serving in
      any capacity in respect of, any member of the “Company
      Group”
(as
      defined in the Agreement), both known and unknown, in law or in equity, which
      the Executive may now have or ever had against any member of the Company Group
      or any shareholder, employee, director or officer of any member of the Company
      Group (collectively, the “Releasees”),
      including, without limitation, any complaint, charge or cause of action arising
      out of the Executive’s employment with the Company Group under the Age
      Discrimination in Employment Act of 1967 (the “ADEA,”
a
      law
      which prohibits discrimination on the basis of age), the National Labor
      Relations Act, the Civil Rights Act of 1991, the Americans With Disabilities
      Act
      of 1990, Title VII of the Civil Rights Act of 1964, the Employee Retirement
      Income Security Act of 1974, all as amended; and all other federal, state and
      local laws. By signing this Release the Executive acknowledges that he intends
      to waive and release all rights known or unknown he may have against the
      Releasees under these and any other laws; provided, that the Executive does
      not
      waive or release claims with respect to the right to enforce this Release or
      the
      Agreement.

     

    The
      Executive acknowledges that he has not filed any complaint, charge, claim or
      proceeding against any of the Releasees before any local, state or federal
      agency, court or other body relating to his employment or the resignation
      thereof (each individually a “Proceeding”).
      The
      Executive represents that he is not aware of any basis on which such a
      Proceeding could reasonably be instituted.

     

    The
      Executive (i) acknowledges that he will not initiate or cause to be initiated
      on
      his behalf any Proceeding and will not participate in any Proceeding, in each
      case, except as required by law; and (ii) waives any right he may have to
      benefit in any manner from any relief (whether monetary or otherwise) arising
      out of any Proceeding, including any Proceeding conducted by the Equal
      Employment Opportunity Commission (“EEOC”).
      Further, the Executive understands that by entering into this Release, he will
      be limiting the availability of certain remedies that he may have against the
      Companies and also limiting his ability to pursue certain claims against the
      Releasees. Notwithstanding the above, nothing in this Release shall prevent
      the
      Executive from (i) initiating or causing to be initiated on his behalf any
      complaint, charge, claim or proceeding against the Companies before any local,
      state or federal agency, court or other body challenging the validity of the
      waiver of his claims under ADEA contained in this Release (but no other portion
      of such waiver); or (ii) initiating or participating in an investigation or
      proceeding conducted by the EEOC with respect to ADEA.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      Executive acknowledges that he has been given 21 days from the date of receipt
      of this Release to consider all the provisions of this Release and he does
      hereby knowingly and voluntarily waive said given 21 day period. THE
      EXECUTIVE FURTHER ACKNOWLEDGES THAT HE HAS READ THIS RELEASE CAREFULLY, HAS
      BEEN
      ADVISED BY THE COMPANIES TO CONSULT AN
      ATTORNEY, AND FULLY UNDERSTANDS THAT, BY SIGNING BELOW, HE IS GIVING UP CERTAIN
      RIGHTS WHICH HE MAY HAVE TO SUE OR ASSERT A CLAIM AGAINST ANY OF THE RELEASEES,
      AS DESCRIBED IN THIS RELEASE AND THE OTHER PROVISIONS HEREOF. THE EXECUTIVE
      ACKNOWLEDGES THAT HE HAS NOT BEEN FORCED OR PRESSURED IN ANY MANNER WHATSOEVER
      TO SIGN THIS RELEASE, AND THE EXECUTIVE AGREES TO ALL OF ITS TERMS
      VOLUNTARILY.

     

    The
      Executive shall have seven days from the date of his execution of this Release
      to revoke this Release. If the Executive revokes this Release, the Executive
      will be deemed not to have accepted the terms of the Agreement, including any
      action required of the Companies after the Effective Date by any Section of
      the
      Agreement.

     

    The
      Executive acknowledges that nothing in this Release shall constitute any
      admission of wrongdoing by the Companies or any Releasee.

     

    

    _________________________________
      

    Lee
      Meyer

    

     

    Dated: __________,
      200_exhibit 10.2

    EMPLOYMENT
      AGREEMENT

     

    THIS
      AGREEMENT is
      entered into on Aug
      14th ,
      2006
      (the “Execution
      Date”),
      by
      and between PLY
      GEM INDUSTRIES, INC.,
      a
      Delaware corporation (“Employer”)
      and
GARY
      E. ROBINETTE
      (“Employee”).
      For
      purposes of this Agreement, the “Companies”
shall
      mean, collectively, Employer and any affiliates of Employer with whom Employee
      is employed during the Term (as defined below).

     

    WHEREAS,
      the
      Companies desire to employ Employee and to enter into an agreement embodying
      the
      terms of such employment and considers it essential to their best interests
      and
      the best interests of their stockholders to foster the employment of Employee
      by
      the Companies during the term of this Agreement;

     

    WHEREAS,
      Employee desires to accept such employment with and participation in the
      ownership of the Companies and to enter into this Agreement; 

     

    WHEREAS,
      Employee is willing to accept employment on the terms hereinafter set forth
      in
      this Agreement; 

     

    WHEREAS,
      the
      parties desire that Employee commence his employment with the Companies as
      of a
      date (the “Effective
      Date”)
      not
      later than October 6, 2006, to be designated by Employee by advance written
      notice to the Companies of at least ten (10) days; and 

     

    WHEREAS,
      except
      as specifically provided herein, this Agreement shall become effective, and
      Employee’s employment with the Companies shall commence, as of the Effective
      Date.

     

    NOW
      THEREFORE,
      in
      consideration of the premises and mutual covenants herein and for other good
      and
      valuable consideration, the parties agree as follows:

     

    1.  Employment.
      The
      Companies agree to employ Employee, and Employee accepts employment with the
      Companies pursuant to the terms and conditions set forth in this Agreement.
      Employee will devote his full business time, attention and best effort to the
      performance of his duties and responsibilities as an Employee of the Companies
      for the benefit of the Companies and will not engage in any other business,
      profession or occupation for compensation or otherwise which would conflict
      or
      interfere with the rendition of such services either directly or indirectly,
      without the prior written consent of the Board of Directors of Employer (the
      “Board”).
      Without limiting the foregoing, Employee may continue to serve as a member
      of
      the Boards of Directors of the organizations listed on Exhibit A and may serve
      as a member of the Boards of Directors of such other organizations as approved
      by the Board at its discretion, so long as Employee’s service on such Boards
      does not conflict or interfere, either directly or indirectly, with the
      rendition of his services to the Companies. Employee shall serve as President
      and Chief Executive Officer of Employer and as a member of the Board and shall
      have such duties and responsibilities as are consistent with the duties and
      responsibilities of a President and Chief Executive Officer. Employee shall
      also
      serve as President and Chief Executive Officer and/or a member of the Board
      of
      Directors of any of the other Companies as the Board may determine from time
      to
      time.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.  Term
      and Termination.

     

    (a)  Subject
      to Section 2(b) below, the term of this Agreement will commence as of the
      Effective Date and continue until the second anniversary of the Effective Date;
      provided, however, that, commencing with such second anniversary date and on
      each anniversary of such date thereafter (each an “Extension
      Date”),
      this
      Agreement will automatically renew for an additional one (1) year term, unless
      the Companies or Employee provides the other party hereto 60 days’ prior written
      notice before the Extension Date that the term shall not be extended. The
      initial two-year term of this Agreement (the “Initial
      Term”)
      and
      any renewal thereof shall be referred to herein as the Term. 

     

    (b)  This
      Agreement and Employee’s employment hereunder may be terminated by the Companies
      with or without “Cause” or by Employee whether or not following a “Material
      Adverse Change” (as such terms are defined below). In the case of a termination
      by the Companies without Cause or by Employee whether or not following a
      Material Adverse Change, such termination shall be effective upon 60 days’
advance written notice to the other party. During the Term, if Employee’s
      employment is terminated by the Companies without Cause or by Employee following
      a Material Adverse Change, subject to Employee’s execution of a release of all
      claims against the Companies in a form provided by the Companies, which shall
      be
      substantially in the form attached hereto as Exhibit B, and to his continued
      compliance with the provisions of Sections 4, 5, 6 and 7 of this Agreement,
      Employee shall be entitled to receive (i) continued payment of the “Salary” (as
      defined below) for two years following the date of such termination (such
      two-year period, the “Severance
      Period”),
      payable in accordance with the normal payroll practices of the Companies, (ii)
      continuation of medical and dental benefits at the cost of the Companies,
      pursuant to the same benefit plans as in effect for active employees of the
      Companies, until the earlier to occur of the end of the Severance Period and
      the
      date on which Employee becomes eligible to receive comparable health benefits
      from any subsequent employer; provided, that if continuation of such benefits
      would be inconsistent with the terms of such benefit plans, the Companies will
      reimburse Employee for amounts incurred in maintaining substantially similar
      coverage under an individual policy in an amount not to exceed $20,000 per
      year
      and (iii) payment of the “Bonus” (as defined below) in respect of the fiscal
      year of termination (the “Year
      One Bonus”),
      the
      Bonus for the fiscal year following the year of termination (the “Year
      Two Bonus”)
      and a
      pro-rated portion of the Bonus for the fiscal year ending two years after the
      year of termination (the “Pro-Rated
      Year Three Bonus”),
      in
      each case, based on actual achievement for the full year of termination. The
      Year One Bonus will be an amount equal to the Bonus that Employee would have
      received with respect to the fiscal year of termination had his employment
      continued through the end of such year, and will be paid when the Bonus for
      such
      year would otherwise have been paid to Employee had his employment continued
      through the end of such year. The Year Two Bonus will be an amount equal to
      the
      Year One Bonus, and will be paid when the Bonus for the fiscal year following
      the year of termination would otherwise have been paid to Employee had his
      employment continued through the end of such year. The
      Pro-Rated
      Year Three Bonus will be an amount equal to (x) the Year One Bonus multiplied
      by
      (y) a fraction, the denominator of which is 365 and the numerator of which
      is
      the number of days that Employee was employed by the Companies in the year
      of
      termination, and will be paid when the Bonus for the fiscal year ending two
      years after the year of termination would otherwise have been paid to Employee
      had his employment continued through the end of such year. The severance
      payments and benefits described in (i) through (iii) of this paragraph shall
      be
      referred to herein, collectively, as the “Severance”.
      Employee shall have no further rights to any compensation or any other benefits
      under this Agreement or under any severance policy or program of the Companies.
      In the event that either party elects not to extend the Term pursuant to Section
      2(a) above, unless Employee’s employment is earlier terminated pursuant to this
      Section 2(b), Employee’s termination of employment hereunder (whether or not
      Employee continues as an employee of the Companies thereafter) shall be deemed
      to occur upon expiration of the Term, and Employee shall not be entitled to
      the
      payments described in this Section 2(b). Employee may terminate his employment
      with the Companies for any reason; provided, that Employee will be required
      to
      give the Companies at least 60 days’ advanced notice of such resignation. If
      Employee’s employment by the Companies continues beyond the end of the Term
      without extension pursuant to Section 2(a) above, Employee shall be an employee
      at will and upon termination from such employment at will, he will be entitled
      to severance only under the Companies’ plan or policy applicable to similarly
      situated senior executives. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (c)  For
      purposes of the Agreement, “Cause”
shall
      mean the following actions of Employee: (i) Employee’s willful and continued
      failure to perform substantially his material duties (other than any such
      failures resulting from, or contributed to by, incapacity due to physical or
      mental illness), after a written demand for substantial performance is delivered
      to him by the Board, which notice specifically identifies the manner in which
      he
      has not substantially performed his material duties, and his neglect to cure
      such failure within 30 days; (ii) Employee’s willful failure to follow the
      lawful direction of the Board; (iii) Employee’s material act of dishonesty or
      breach of trust in connection with the performance of his duties to the
      Companies; (iv) Employee’s conviction of, or plea of guilty or no contest to,
      (x) any felony or (y) any misdemeanor having as its predicate element fraud,
      dishonesty or misappropriation; or (v) a civil judgment in which any of the
      Companies is awarded damages from Employee in respect of a claim of loss of
      funds through fraud or misappropriation by Employee, any of which has become
      final and is not subject to further appeal.

     

    (d)  For
      purposes of this Agreement, “Material
      Adverse Change”
shall
      mean any of the following, without Employee’s express written consent: (i)
      assignment to Employee of any duties that are inconsistent with his position,
      duties and responsibilities and status with the Companies as President and
      Chief
      Executive Officer; (ii) reduction of the Salary or “Target Bonus” (as defined
      below); or (iii) any action by the Companies that would reduce or deprive
      Employee of any material employee benefit enjoyed by Employee, except where
      such
      change is applicable to all employees participating in such benefit plan;
      provided, that a Material Adverse Change shall cease to exist for an event
      on
      the 60th day following the later of its occurrence or Employee’s actual
      knowledge thereof, unless Employee has given the Companies written notice
      thereof prior to such date. 

     

    (e)  If
      the
      payment of the Severance pursuant to this Section 2 causes Employee to become
      subject to the golden parachute excise tax rules of Internal Revenue Code
      Section 4999, then the Companies will pay Employee a gross-up amount calculated
      so that after all taxes are paid on the gross-up, Employee will have sufficient
      funds remaining to pay the Section 4999 tax imposed on the Severance. This
      gross-up will be calculated and administered by the Companies under procedures
      developed by them with their auditors, and Employee agrees to cooperate as
      reasonably requested by the Companies (including, without limitation, by
      claiming any available tax refunds) with a view to achieving the purpose of
      this
      Section 2(e), which is to keep Employee whole with respect to the Severance
      (that is, as if the parachute tax had not applied to the Severance) rather
      than
      to confer any additional compensatory benefit.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    3.  Salary
      and Benefits.

     

    (a)  Salary.
      During
      the Term, Employee shall be entitled to an annual base salary, payable in
      accordance with the normal payroll practices of the Companies (the “Salary”).
      The
      Salary shall be paid at the annual rate of $530,000 with respect to the period
      commencing on the Effective Date and ending on the last day of fiscal year
      2006.
      With respect to any fiscal year during the Term following 2006, the Salary
      shall
      be determined by the Compensation Committee of the Board (the “Compensation
      Committee”),
      and
      shall in no event be paid at an annual rate less than $530,000 per fiscal
      year.

     

    (b)  Benefits.
      During
      the Term, Employee will have the right to participate in and receive benefits
      under the Companies’ employee benefit plans (other than any severance plan) at
      the same level as other senior executives of the Companies, subject to
      compliance with each plan’s requirements for participation, including 401K,
      medical insurance, life insurance, disability insurance, expense reimbursement,
      car allowance and holidays. The benefits identified herein are not intended
      to
      be exclusive, but are not intended to include any severance plan.

     

    (c)  Vacation.
      During
      the Term, Employee shall be entitled to approximately four weeks of paid
      vacation each fiscal year, with the exact amount of such vacation determined
      at
      Employee’s reasonable discretion. 

     

    (d)  Temporary
      Living and Relocation Expenses.
      During
      the period of time commencing on the Effective Date and ending on the date
      that
      Employee relocates his principal residence from Raleigh, North Carolina to
      Employer’s headquarters in Kearney, Missouri or a subsequent headquarters of
      Employer (the “Headquarters”),
      the
      Companies will reimburse Employee for reasonable expenses incurred in connection
      with (i) locating and maintaining temporary housing and an automobile in the
      Headquarters area and (ii) air travel between Raleigh and the Headquarters.
      In
      addition, if Employee relocates his principal residence from Raleigh to the
      Headquarters area, the Companies will reimburse him for reasonable moving
      expenses incurred in connection with such relocation.

     

    (e)  Bonus.
      With
      respect to each fiscal year during the Term, commencing with the 2006 fiscal
      year, Employee will be entitled to receive a bonus (the “Bonus”)
      upon
      the achievement of the “Executive
      Compensation Goals”,
      which
      shall be set by the Compensation Committee. The target Bonus (the “Target
      Bonus”)
      with
      respect to any fiscal year during the Term will be an amount equal to 100%
      of
      the Salary; provided, that for fiscal year 2006, Employee will be guaranteed
      a
      minimum Bonus equal to the Target Bonus multiplied by a fraction, the
      denominator of which is 365 and the numerator of which is the number of days
      that Employee was employed by the Companies in such fiscal year. The Bonus
      shall
      be paid as soon as reasonably practicable following the end of the fiscal year
      to which such Bonus relates, but in no event later than the date that is 2
1⁄2
months after the end of such fiscal year.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (f)  Equity.
      

     

    (i)  Incentive
      Stock.
      Employee will have the right to purchase 110,000 shares of common stock of
      Ply
      Gem Prime Holdings, Inc. (the “Incentive
      Stock”)
      at the
      fair market value price of $10 per share. 

     

    (ii)  Strip
      Equity.
      Employee will also have the right to purchase shares of preferred stock and
      additional shares of common stock of Ply Gem Prime Holdings, Inc. (the
“Strip
      Equity”)
      on the
      same terms and conditions pursuant to which Caxton-Iseman Capital, Inc. acquired
      its Strip Equity. 

     

    (iii)  Stockholders’
      and Subscription Agreements.
      As a
      condition precedent to the purchase and receipt of the Incentive Stock and/or
      the Strip Equity, Employee agrees to execute and be bound by the Ply Gem Prime
      Holdings, Inc. Stockholders’ Agreement, dated as of February 24, 2006 (the
“Stockholders’
      Agreement”),
      substantially in the form attached hereto as Exhibit C, and to enter into a
      Subscription Agreement with Ply Gem Prime Holdings, Inc., substantially in
      the
      form attached hereto as Exhibit D.

     

    (g)  D&O
      Insurance.
      The
      Companies shall at all times during Employee’s employment maintain directors’
and officers’ liability insurance coverage for the benefit of Employee and his
      estate in an amount of at least Three Million Dollars $(3,000,000.00).

     

    4.  Developments.
      All
      discoveries, inventions, ideas, technology, formulas, designs, software,
      programs, algorithms, products, systems, applications, processes, procedures,
      methods and improvements and enhancements conceived, developed or otherwise
      made
      or created or produced by Employee, alone or with others, and in any way
      relating to the business or any proposed business of the Companies of which
      Employee has been made aware, or the products or services of the Companies
      of
      which Employee has been made aware, whether or not subject to patent, copyright
      or other protection and whether or not reduced to tangible form, at any time
      during Employee’s employment with the Companies (“Developments”),
      shall
      be the sole and exclusive property of the Companies. Employee agrees to, and
      hereby does, assign to the Companies, without any further consideration, all
      of
      Employee’s right, title and interest throughout the world in and to all
      Developments. Employee agrees that all such Developments that are copyrightable
      may constitute works made for hire under the copyright laws of the United States
      and, as such, acknowledges that the Companies are the authors of such
      Developments and own all of the rights comprised in the copyright of such
      Developments, and Employee hereby assigns to the Companies, without any further
      consideration, all of the rights comprised in the copyright and other
      proprietary rights Employee may have in any such Development to the extent
      that
      it might not be considered a work made for hire. Employee shall make and
      maintain adequate and current written records of all Developments and shall
      disclose all Developments promptly, fully and in writing to the Companies
      promptly after development of the same, and at any time upon
      request.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    5.  Confidentiality/
      Property of the Companies. Employee
      shall not, without the prior written consent of the Companies, use, divulge,
      disclose or make accessible to any other person, firm, partnership, corporation
      or other entity, any “Confidential Information” (as defined below) except while
      employed by the Companies, in furtherance of the business of and for the benefit
      of the Companies, or any “Personal Information” (as defined below); provided,
      that Employee may disclose such information when required to do so by a court
      of
      competent jurisdiction, by any governmental agency having supervisory authority
      over the business of any of the Companies or by any administrative body or
      legislative body (including a committee thereof) with jurisdiction to order
      Employee to divulge, disclose or make accessible such information; provided,
      further, that in the event that Employee is ordered by a court or other
      government agency to disclose any Confidential Information or Personal
      Information, Employee shall (i) promptly notify the Companies of such order,
      (ii) at the written request of the Companies, diligently contest such order
      at
      the sole expense of the Companies as expenses occur, and (iii) at the written
      request of the Companies, seek to obtain, at the sole expense of the Companies,
      such confidential treatment as may be available under applicable laws for any
      information disclosed under such order. For purposes of this Section 5, (i)
      “Confidential
      Information”
shall
      mean non public information concerning the financial data, strategic business
      plans, product development (or other proprietary product data), customer lists,
      marketing plans and other non public, proprietary and confidential information
      relating to the business of the Companies or their customers, that, in any
      case,
      is not otherwise available to the public (other than by Employee’s breach of the
      terms hereof) and (ii) “Personal
      Information”
shall
      mean any information concerning the personal, social or business activities
      of
      the shareholders, officers or directors of the Companies. Upon termination
      of
      Employee’s employment with the Companies, Employee shall return all property of
      the Companies, including, without limitation, files, records, disks and any
      media containing Confidential Information or Personal Information.

     

    6.  Non-Competition/Non-Solicitation.
      Employee
      acknowledges and recognizes the highly competitive nature of the businesses
      of
      the Companies and accordingly agrees as follows:

     

    (i)  During
      the two-year period commencing on the date of Employee’s termination of
      employment (the “Restricted
      Period”),
      or
      such longer period as described in the last sentence of Section 9 of this
      Agreement, Employee will not, directly or indirectly, (w) engage in any
“Competitive Business” (as defined below) for Employee’s own account, (x) enter
      the employ of, or render any services to, any person engaged in any Competitive
      Business, (y) acquire a financial interest in, or otherwise become actively
      involved with, any person engaged in any Competitive Business, directly or
      indirectly, as an individual, partner, shareholder, officer, director,
      principal, agent, trustee or consultant, or (z) interfere with business
      relationships between the Companies and customers or suppliers of, or
      consultants to, the Companies. 

     

    (ii)  For
      purposes of this Section 6, a “Competitive
      Business”
means
      as of any date, including during the Restricted Period, any person or entity
      (including any joint venture, partnership, firm, corporation or limited
      liability company) that engages in or proposes to engage in the following
      activities in any geographical area in which Employee works: (x) the manufacture
      and sale of windows; vinyl and composite siding, fencing, decking and railing;
      and entry and patio doors
      and (y)
      any new product lines and businesses entered into by the Companies during the
      Term.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (iii)  Notwithstanding
      anything to the contrary in this Agreement, Employee may, directly or
      indirectly, own, solely as an investment, securities of any person engaged
      in
      the business of the Companies which are publicly traded on a national or
      regional stock exchange or on the over-the-counter market if Employee (A) is
      not
      a controlling person of, or a member of a group which controls, such person
      and
      (B) does not, directly or indirectly, own one percent (1%) or more of any class
      of securities of such person. 

     

    (iv)  During
      the Restricted Period, Employee will not, directly or indirectly, without the
      Companies’ written consent, solicit or encourage to cease to work with the
      Companies any employee or any consultant of the Companies or any person who
      was
      an employee of or consultant then under contract with the Companies within
      the
      six-month period preceding such activity. In addition, during the Restricted
      Period, Employee will not, without the Companies’ written consent, directly or
      indirectly hire any person who is or who was, within the six-month period
      preceding such activity, an employee of any of the Companies. 

     

    (v)  Employee
      understands that the provisions of this Section 6 may limit Employee’s ability
      to earn a livelihood in a business similar to the business of the Companies,
      but
      Employee nevertheless agrees and hereby acknowledges that (A) such provisions
      do
      not impose a greater restraint than is necessary to protect the goodwill or
      other business interests of the Companies, (B) such provisions contain
      reasonable limitations as to time and scope of activity to be restrained, (C)
      such provisions are not harmful to the general public and (D) such provisions
      are not unduly burdensome to Employee. In consideration of the foregoing and
      in
      light of Employee’s education, skills and abilities, Employee agrees that he
      shall not assert that, and it should not be considered that, any provisions
      of
      Section 6 otherwise are void, voidable or unenforceable or should be voided
      or
      held unenforceable.

     

    (vi)  It
      is
      expressly understood and agreed that, although Employee and the Companies
      consider the restrictions contained in this Section 6 to be reasonable, if
      a
      judicial determination is made by a court of competent jurisdiction that the
      time or territory or any other restriction contained in this Section 6 or
      elsewhere in this Agreement is an unenforceable restriction against Employee,
      the provisions of the Agreement shall not be rendered void but shall be deemed
      amended to apply as to such maximum time and territory and to such maximum
      extent as such court may judicially determine or indicate to be enforceable.
      Alternatively, if any court of competent jurisdiction finds that any restriction
      contained in this Agreement is unenforceable, and such restriction cannot be
      amended so as to make it enforceable, such finding shall not affect the
      enforceability of any of the other restrictions contained herein.

     

    (vii)  Employee
      shall be required to comply with the requirements of this Section 6 during
      the
      Restricted Period only for so long as the Companies provide him with the
      Severance. 

     

    (viii)  The
      provisions of this Section 6 shall not limit, or be limited by, the
      Stockholders’ Agreement, including the non-competition and non-solicitation
      provisions thereof.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    7.  Nondisparagement.
      At any
      time following termination of this Agreement and Employee’s employment
      hereunder, (i) Employee agrees not to issue, circulate, publish or utter any
      false or disparaging statements, remarks or rumors about the Companies or the
      shareholders, officers, directors or managers of the Companies and (ii) the
      Companies agree to instruct their executives, and the members of their
      respective Boards of Directors, not to issue, circulate, publish or utter any
      false or disparaging statements, remarks or rumors about Employee, in each
      case,
      other than to the extent reasonably necessary in order to (x) assert a bona
      fide
      claim against Employee or the Companies, as applicable, arising out of
      Employee’s employment with the Companies or (y) respond in a truthful and
      appropriate manner to any legal process or give truthful and appropriate
      testimony in a legal or regulatory proceeding.

     

    8.  Policies
      of the Companies.
      Employee agrees to abide by the terms of any employment policies or codes of
      conduct of the Companies that apply to Employee after termination of employment.
      

     

    9.  Enforcement.
      Employee acknowledges and agrees that the Companies’ remedies at law for a
      breach or threatened breach of any of the provisions of Sections 4, 5, 6 and
      7
      of this Agreement would be inadequate, and, in recognition of this fact,
      Employee agrees that, in the event of such a breach or threatened breach, in
      addition to any remedies at law, the Companies shall be entitled to obtain
      equitable relief in the form of specific performance, temporary restraining
      order, temporary or permanent injunction or any other equitable remedy which
      may
      then be available. In addition, the Companies shall, (a) upon the Board’s
      determination that Employee has violated any provision of Section 4, 5, 6 or
      7,
      be entitled to immediately cease paying any amounts remaining due or providing
      any benefits to Employee pursuant to Section 2 and (b) upon a final,
      non-appealable judicial determination made by a court of competent jurisdiction
      that Employee has violated any provision of Section 4, 5, 6 or 7 and subject
      to
      applicable state law, to reclaim any amounts already paid under Section 2.
      If
      Employee breaches any of the covenants contained in Section 4, 5, 6 or 7 of
      this
      Agreement, and the Companies obtain injunctive relief with respect thereto,
      the
      period during which Employee is required to comply with that particular covenant
      shall be extended by the same period that Employee was in breach of such
      covenant prior to the effective date of such injunctive relief.

     

    10.  Assignment
      and Survival.
      This
      Agreement, and all of Employee’s rights and duties hereunder, shall not be
      assignable or delegable by Employee. This Agreement may be assigned by the
      Companies to any of their affiliates, provided that the Companies will remain
      jointly and severally liable for all obligations hereunder. The obligations
      under Sections 2(b), 4, 5, 6, 7, 8, 9 and 10 of this Agreement will survive
      termination of this Agreement in accordance with their terms.

     

    11.  Severability.
      If any
      provision of this Agreement is held to be invalid or unenforceable, the
      remainder of the provision and any other provisions of this Agreement will
      remain in full force and effect.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    12.  Governing
      Law.
      

     

    THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF DELAWARE APPLICABLE TO AGREEMENTS MADE AND TO BE WHOLLY PERFORMED
      WITHIN THAT STATE, WITHOUT REGARD TO ITS CONFLICT OF LAWS PROVISIONS OR THE
      CONFLICT OF LAWS PROVISIONS OF ANY OTHER JURISDICTION WHICH WOULD CAUSE THE
      APPLICATION OF ANY LAW OTHER THAN THAT OF THE STATE OF DELAWARE.

     

    Each
      party to this Agreement irrevocably agrees for the exclusive benefit of the
      other that any and all suits, actions or proceedings relating to Section 4,
      5,
      6, 7 or 8 of this Agreement (collectively, “Proceedings”
and,
      individually, a “Proceeding”)
      shall
      be maintained in either the courts of the State of Delaware or the federal
      District Courts sitting in Wilmington, Delaware (collectively, the “Chosen
      Courts”)
      and
      that the Chosen Courts shall have exclusive jurisdiction to hear and determine
      or settle any such Proceeding and that any such Proceedings shall only be
      brought in the Chosen Courts. Each party irrevocably waives any objection that
      it may have now or hereafter to the laying of the venue of any Proceedings
      in
      the Chosen Courts and any claim that any Proceedings have been brought in an
      inconvenient forum and further irrevocably agrees that a judgment in any
      Proceeding brought in the Chosen Courts shall be conclusive and binding upon
      it
      and may be enforced in the courts of any other jurisdiction. 

     

    Each
      of
      the parties hereto agrees that this Agreement involves at least $100,000 and
      that this Agreement has been entered into in express reliance on Section 2708
      of
      Title 6 of the Delaware Code. Each of the parties hereto irrevocably and
      unconditionally agrees that (i) service of process may be made on such party
      by
      pre-paid certified mail with a validated proof of mailing receipt constituting
      evidence of valid service sent to such party at the address set forth in this
      Agreement, as such address may be changed from time to time pursuant hereto,
      and
      (ii) service made pursuant to clause (i) above shall, to the fullest extent
      permitted by applicable law, have the same legal force and effect as if served
      upon such party personally within the State of Delaware.

     

    13.  Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which will
      be
      deemed an original and all of which taken together will constitute but one
      and
      the same instrument.

     

    14.  Notice.
      Any
      notice intended to be given hereunder will be sufficiently given if sent by
      national overnight carrier, shipping charges prepaid, addressed to the party
      at
      the address listed below or any subsequent address of which the parties have
      been given written notice. Any such notice will be effective within three (3)
      days of being deposited with the national overnight carrier.

     

    If
      to the
      Companies:

     

    Ply
      Gem
      Industries, Inc.

    600
      West
      Major Street

    Kearney,
      Missouri 64060

    Attention:
      _______________

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    Paul,
      Weiss, Rifkind, Wharton & Garrison LLP

    1285
      Avenue of the Americas

    New
      York,
      New York 10019-6064

    Attention:
      Carl Reisner, Esq.

    

    If
      to
      Employee:

    

    2701
      Glenwood Garden Lane, Unit 208

    Raleigh,
      North Carolina 27608

    

    15.  Entire
      Agreement/Amendment.
      This
      Agreement contains the entire agreement between the parties and supersedes
      all
      prior agreements and understandings (including verbal agreements) between
      Employee and the Companies regarding the terms and conditions of Employee’s
      employment with the Companies. This Agreement may not be amended or modified
      except in writing, signed by both parties and will be binding upon the parties,
      their heirs, successors, legal representatives and assigns.

     

    16.  Withholding
      Taxes.
      The
      Companies may withhold from any amounts payable under this Agreement such
      Federal, state and local taxes as may be required to be withheld pursuant to
      any
      applicable law or regulation.

     

    17.  No
      Waiver.
      The
      failure of a party to insist upon strict adherence to any term of this Agreement
      on any occasion shall not be considered a waiver of such party’s rights or
      deprive such party of the right thereafter to insist upon strict adherence
      to
      that term or any other term of this Agreement.

     

    18.  Successor;
      Binding Agreement.
      This
      Agreement shall inure to the benefit of and be binding upon personal or legal
      representatives, executors, administrators, successors, heirs, distributees,
      devisees and legatees.

     

    19.  Employee
      Representation.
      Employee hereby represents to the Companies that the execution and delivery
      of
      this Agreement by Employee and the Companies and/or the performance by Employee
      of Employee’s duties hereunder shall not constitute a breach of, or otherwise
      contravene, the terms of any employment agreement or other agreement or policy
      to which Employee is a party or otherwise bound, and such
      execution, delivery and/or performance shall not result in any breach or
      violation of, or a material default under, any law, order, judgment, decree,
      rule or regulation applicable to him, or subject the Companies to any liability
      in respect thereof.

     

    20.  No
      Third Party Beneficiaries.
      Subject
      to Section 10 of this Agreement, nothing herein shall confer upon any person
      not
      a party to this Agreement any rights or remedies of any nature or kind
      whatsoever, directly or indirectly, under or by reason of the
      Agreement.

     

    21.  Expenses.
      The
      Companies agree to reimburse Employee for actual and reasonable legal expenses
      incurred in relation to the negotiation and execution of this Agreement, his
      employment and the other transactions contemplated hereby in an amount up to
      $10,000.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    22.  Initial
      Effectiveness.
      This
      Section 22 and the following provisions of this Agreement shall be effective
      as
      of the Execution Date: all Recitals to this Agreement; Section 3(f) (generally
      relating to Employee’s opportunity to purchase equity in Ply Gem Prime Holdings,
      Inc.); Section 19 (generally, Employee’s representation regarding the right to
      enter into and perform in all respects this Agreement); and Sections 12 through
      18 (generally relating to choice of law and various other matters). All other
      provisions of this Agreement shall become effective as of the Effective
      Date.

     

    

     

    [Remainder
      of Page Intentionally Left Blank]

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

     

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Agreement as of the date first written
      above.

     

    GARY
      E. ROBINETTE 

    

    

     

    Name:

    Date:

    

    

    PLY
      GEM INDUSTRIES, INC. 

    

    

    By:
            

    Title:

    Date:

    

    
      
        
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            #:NY7:198344.18

        

        
        

      

      
        12

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      A

    

    [List
      of
      company boards on which Employee serves.]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    

    RELEASE
      OF CLAIMS

    

    I.  Release.

     

    In
      consideration for the payments and benefits received by Employee (as defined
      below) pursuant to that certain employment agreement dated _______ __, 2006
      (the
“Employment
      Agreement”),
      by
      and between Ply Gem Industries, Inc., a Delaware corporation (“Employer”)
      and
      Gary E. Robinette (“Employee”),
      to
      which Employee agrees Employee is not otherwise entitled, Employee, for and
      on
      behalf of himself and his heirs and assigns, subject to the following sentence
      hereof, hereby waives and releases any common law, statutory or other
      complaints, claims, charges or causes of action arising out of or relating
      to
      Employee’s employment or termination of employment with, his serving in any
      capacity in respect of, or his status as a shareholder of, Employer and its
      affiliates (collectively, the “Companies”),
      both
      known and unknown, in law or in equity, which Employee ever had, now has or
      may
      have against the Companies and their shareholders and any of their respective
      subsidiaries, affiliates, predecessors, successors, assigns and any of their
      respective directors, officers, partners, members, employees or agents
      (collectively, the “Releasees”)
      by
      reason of facts or omissions which have occurred on or prior to the date that
      Employee signs this Agreement, including, without limitation, any complaint,
      charge or cause of action arising under federal, state or local laws pertaining
      to employment, including the Age Discrimination in Employment Act of 1967
      (“ADEA,”
a
      law
      which prohibits discrimination on the basis of age), the National Labor
      Relations Act, the Civil Rights Act of 1991, the Americans With Disabilities
      Act
      of 1990, Title VII of the Civil Rights Act of 1964, all as amended; and all
      other federal, state and local laws and regulations. By signing this release,
      Employee acknowledges that he intends to waive and release any rights known
      or
      unknown he may have against the Releasees under these and any other laws;
      provided, that Employee does not waive or release claims with respect to the
      right to enforce the release, his right to receive severance payments on the
      terms set forth in the Employment Agreement, his rights under Sections 3(e)
      and
      7 of the Employment Agreement, his rights under the Ply Gem Prime Holdings,
      Inc.
      Stockholders’ Agreement between Employee and Ply Gem Prime Holdings, Inc., a
      Delaware corporation, dated as of February 24, 2006, or his right to
      indemnification as an officer of the Companies as provided in the Companies’
by-laws and other constituent documents, as the same shall exist from time
      to
      time.

     

    II.  Proceedings.

     

    Employee
      acknowledges that he has not filed any complaint, charge, claim or proceeding,
      against any of the Releasees before any local, state or federal agency, court
      or
      other body (each individually a “Proceeding”).
      Employee represents that he is not aware of any basis on which such a Proceeding
      could reasonably be instituted. Employee (i) acknowledges that he will not
      initiate or cause to be initiated on his behalf any Proceeding and will not
      participate in any Proceeding, in each case, except as required by law; and
      (ii)
      waives any right he may have to benefit in any manner from any relief (whether
      monetary or otherwise) arising out of any Proceeding, including any Proceeding
      conducted by the Equal Employment Opportunity Commission (“EEOC”).
      Further, Employee understands that by signing the release, he will be limiting
      the availability of certain remedies that he may have against the Companies
      and
      limiting also his ability to pursue certain claims against the Releasees.
      Notwithstanding the above, nothing in Section I of this release shall prevent
      Employee from (i) initiating or causing to be initiated on his behalf any
      complaint, charge, claim or proceeding against the Companies before any local,
      state or federal agency, court or other body challenging the validity of the
      waiver of his claims under ADEA contained in Section I of the Agreement (but
      no
      other portion of such waiver); or (ii) initiating or participating in an
      investigation or proceeding conducted by the EEOC.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    III.  Time
      to Consider.
      

     

    Employee
      acknowledges that he has been advised that he has twenty-one (21) days from
      the
      date of receipt of this release to consider all the provisions of the release,
      and he does hereby knowingly and voluntarily waive said given twenty-one (21)
      day period. EMPLOYEE FURTHER ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT
      CAREFULLY, HAS BEEN ADVISED BY THE COMPANIES TO, AND HAS IN FACT, CONSULTED
      AN
      ATTORNEY, AND FULLY UNDERSTANDS THAT BY SIGNING BELOW HE IS GIVING UP CERTAIN
      RIGHTS WHICH HE MAY HAVE TO ASSERT A CLAIM AGAINST ANY OF THE RELEASEES, AS
      DESCRIBED IN SECTION I OF THIS AGREEMENT AND THE OTHER PROVISIONS HEREOF.
      EMPLOYEE ACKNOWLEDGES THAT HE HAS NOT BEEN FORCED OR PRESSURED IN ANY MANNER
      WHATSOEVER TO SIGN THE AGREEMENT, AND EMPLOYEE AGREES TO ALL OF ITS TERMS
      VOLUNTARILY.

     

    IV.  Revocation.
      

     

    Employee
      hereby acknowledges and understands that Employee shall have seven (7) days
      from
      the date of his execution of this release to revoke the releases contained
      herein (including, without limitation, any and all claims arising under ADEA)
      and that neither the Companies nor any other person is obligated to provide
      any
      benefits to Employee pursuant to the Employment Agreement until eight (8) days
      have passed since Employee’s signing of this release without Employee’s
      signature having been revoked. If Employee revokes the releases set forth in
      this release, Employee will be deemed not to have accepted the terms of the
      release, the release shall be void and no action will be required of the
      Companies under any section of the release. 

     

    V.  Non-Admission.

     

    Nothing
      contained in this release shall be deemed or construed as an admission of
      wrongdoing or liability on the part of the Companies or Employee.

     

    

     

    Date:___________

     

     

    __________________________

    Gary
      E.
      Robinette

     

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      C

    

    [Stockholders’
      Agreement]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

    

    [Subscription
      Agreement]

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