Document:

Exhibit 10.33

 

Exhibit 10.33

REPURCHASE AGREEMENT

          This Repurchase Agreement (this “Agreement”) is made and entered into as of January 2,
2006, by and between Kenneth L. Bloom (the “Employee”) and AMH Holdings II, Inc., a
Delaware corporation (the “Company”).

          WHEREAS, pursuant to an Employment Agreement, dated as of August 21, 2002, as amended by an
Amended and Restated Employment Agreement, dated as of July 27, 2004, each between the Employee and
Associated Materials Incorporated, a Delaware corporation and a wholly-owned subsidiary of the
Company (“AMI”), the Employee was employed as an executive officer of AMI;

          WHEREAS, pursuant to an Associated Materials Holdings Inc. Stock Option Award Agreement, dated
September 4, 2002 (the “2002 Award Agreement”), between the Employee and Associated
Materials Holdings Inc. (“AMHI”), the Employee was awarded options to purchase shares of
the common and preferred stock of AMHI, subject to the terms and conditions of the 2002 Award
Agreement and of the Associated Materials Holdings Inc. 2002 Stock Option Plan (the “2002
Option Plan”).

          WHEREAS, in connection with two recapitalization transactions that closed on March 4, 2004 and
December 22, 2004, respectively, (i) AMH Holdings, Inc., a Delaware corporation (“AMH”) was
established as the direct parent company AMHI, (ii) the Company was established as the direct
parent company of AMH, (iii) all of the currently outstanding shares of stock issued to the
Employee upon the exercise of options granted pursuant to the 2002 Award Agreement have become
shares of the Class B, Series II (Non-Voting) Common Stock of the Company (“B-II Company Common
Stock”), (iv) the Employee has agreed, pursuant to an Agreement dated as of December 22, 2004,
to exchange all of the shares of stock issuable upon the exercise of his currently unexercised
options granted pursuant to the 2002 Award Agreement for shares of B-II Company Common Stock and
(v) pursuant to an AMH Holdings II, Inc. Stock Option Award Agreement, dated December 22, 2004 (the
“2004 Award Agreement” and, together with the 2002 Award Agreement, the “Award
Agreements”), between the Employee and the Company, the Employee was granted options to
purchase additional shares of B-II Company Common Stock, subject to the terms and conditions of the
2004 Award Agreement and of the AMH Holdings II, Inc. 2004 Stock Option Plan (the “2004 Option
Plan”);

          WHEREAS, the Employee voluntarily terminated his employment by AMI and all of its affiliates
on October 21, 2005;

          WHEREAS, pursuant to Section 5 each Award Agreement, upon the termination under any
circumstances of the Employee’s employment with the Company or any of its affiliates, the Company
has the right to repurchase any or all of the outstanding shares of stock issued upon the exercise
of any options granted pursuant to the applicable Award Agreement, for a purchase price equal to
the lesser of the fair market value thereof and the purchase price paid therefor by the Employee,
in the case of a termination by the Employee;

 

 

           WHEREAS, the Compensation Committee of the Board of Directors of the Company has determined
that the fair market value of the B-II Company Common Stock is currently $0.00 per share (the
“Current FMV”); and

          WHEREAS, in accordance with Section 5(a) of each Award Agreement, the Company has previously
delivered written notice to the Employee of its intent to repurchase all of the shares of B-II
Company Common Stock owned beneficially and of record by the Employee for a purchase price equal to
the Current FMV, and the Company and the Employee desire to enter into this Agreement to effect
such repurchase, in accordance with Section 5(b) of each Award Agreement.

          NOW, THEREFORE, the parties hereto agree as follows:

          1. Repurchase of B-2 Company Common Stock; Waiver of Option Exercise.

          (a) The Employee hereby acknowledges and agrees that the Current FMV represents the current
fair market value of the B-II Company Common Stock as of the date hereof and accordingly, pursuant
to Section 5(b) of each applicable Award Agreement, does hereby sell, assign, transfer and convey
unto the Company, ___ shares of B-II Company Common Stock, such shares constituting all of the
currently outstanding shares of capital stock of the Company issued upon the exercise of options
granted pursuant to either of the Award Agreements, as applicable (collectively the
“Repurchased Stock”). Contemporaneously with the execution and delivery of this Agreement,
the Employee shall deliver to the Company any and all stock certificates representing the
Repurchased Stock, together with duly executed stock powers endorsed in blank or such other
instruments of transfer as are reasonably acceptable to the Company.

          (b) The Employee hereby notifies the Company that he will not exercise any outstanding options
which are currently exercisable pursuant to the terms of either Award Agreement, hereby waives any
applicable post-termination exercise period in respect of such options as provided in Section 2(d)
of the applicable Award Agreement, and hereby agrees that all of such unexercised options are
hereby unconditionally and irrevocably forfeited by the Employee.

          2. Representations and Warranties of the Employee.

          The Employee hereby represents and warrants to the Company as follows:

          (a) The Employee has the legal capacity to execute this Agreement and to consummate the
transactions contemplated hereby. The Employee has duly executed and delivered this Agreement and
this Agreement constitutes a legal, valid and binding obligation of the Employee, enforceable
against the Employee in accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, fraudulent conveyance or other similar laws affecting the
enforcement of creditors’ rights generally and general equitable principles.

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          (b) Neither the execution and delivery by the Employee of this Agreement, nor the consummation
of the transactions contemplated hereby, nor compliance by the Employee with any of the provisions
hereof, will conflict with or result in any violation of or default under, or give rise to a right
of termination, cancellation or acceleration of any obligation or loss of a material benefit under,
(a) any judgment or law applicable to the Employee or (b) any material contract to which the
Employee is a party or by which any of his assets or property are bound.

          (c) The Employee is the sole record and beneficial owner of, and possesses good and marketable
title to, all of the Repurchased Stock, free and clear of any and all liens, security interests,
charges, pledges, encumbrances, restrictions, claims or interests of any kind or nature. The
Repurchased Stock constitutes all of the shares of capital stock of the Company or any of its
affiliates owned of record or beneficially by the Employee or any other person or entity claiming
through the Employee.

          3. Representations and Warranties of the Company.

          The Company hereby represents and warrants to the Employee as follows:

          (a) The Company has been duly incorporated, is validly existing and in good standing under the
laws of its jurisdiction of incorporation, with all requisite corporate power and authority to own
its properties and conduct its business as now conducted.

          (b) The Company has all requisite power and authority to execute this Agreement and consummate
the transactions contemplated hereby. The execution and delivery by the Company of this Agreement
and the consummation of the transactions contemplated hereby have been duly authorized by all
necessary corporate action of the Company. The Company has duly executed and delivered this
Agreement and this Agreement constitutes its legal, valid and binding obligation, enforceable
against the Company in accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium, or other similar laws
affecting the enforcement of creditors’ rights generally and by general equitable principles.

          (c) The execution and delivery by the Company of this Agreement does not, and the consummation
of the transactions contemplated hereby and compliance by the Company with the terms hereof will
not, conflict with or result in any violation of any provision of (i) the certificate of
incorporation or by-laws of the Company or (ii) any judgment or law applicable to the Company or
its properties or assets.

          4. Tax Matters. The Employee shall be solely responsible for, and shall indemnify,
defend and hold harmless the Company and each of its affiliates (and their respective officers,
directors, employees and members) for, any liability associated with federal, state or local income
tax withholding and employment tax withholding in respect of the Employee or his transferees
(including all interest, penalties and additions to tax with respect thereto) resulting from, or
arising with respect to, the issuance to the Employee (or transfer to any such transferee) of any
equity interests in the Company or any of its affiliates, whether acquired by purchase from the
Company or otherwise, or the holding by the Employee or his transferees of any such equity
interests.

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          5. Successors and Assigns. All covenants and agreements contained in this Agreement
by or on behalf of any of the parties hereto shall bind and inure to the benefit of the respective
successors and permitted assigns of the parties hereto whether so expressed or not.

          6. Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall
be ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of this Agreement.

          7. Counterparts. This Agreement may be executed simultaneously in two (2) or more
counterparts, each of which shall constitute an original, but all of which taken together shall
constitute one and the same Agreement.

          8. Descriptive Headings. The descriptive headings of this Agreement are inserted for
convenience only and do not constitute a part of this Agreement.

          9. Governing Law. This Agreement, and the legal relations between the parties hereto,
shall be governed by and construed in accordance with the laws of the State of New York applicable
to agreements executed and to be performed solely within such state.

          10. Notices. All notices and other communications under this Agreement shall be in
writing and shall be deemed given (i) when delivered by hand, (ii) when transmitted by prepaid
cable, telex or telecopier (provided that a copy is sent at about the same time by registered mail,
return receipt requested), or (iii) three (3) days after mailing, if sent by Express Mail, Fed Ex
or other express delivery service to the addressee at the following addresses or telecopier numbers
(or to such other address or telecopier number as a party may specify by notice given to the other
party pursuant to this provision):

If to the Employee to:

Mr. Kenneth L. Bloom

6487 Dorset Lane

Solon, Ohio 44139

If to the Company, to:

AMH Holdings II, Inc.

3737 State Road

Cuyahoga Falls, Ohio 44223

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

White & Case LLP

1155 Avenue of the Americas

New York, NY 10036-2787

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Attention: Oliver C. Brahmst, Esq.

Facsimile: (212) 354-8113

          11. Jurisdiction. Any legal action or proceeding with respect to this Agreement may
be brought in the courts of the United States or America for the Southern District of New York and,
by execution and delivery of this Agreement, the Employee hereby accepts for himself and in respect
of his property, generally and unconditionally, the jurisdiction of the aforesaid courts. The
Employee further irrevocably consents to the service of process out of any of the aforementioned
courts in any action or proceeding by the mailing of copies thereof by guaranteed overnight courier
to the Employee at his address set forth in Section 10 hereof, such service to become effective
seven (7) days after such mailing. Nothing herein shall affect the right of the Company to serve
process in any other manner permitted by law or to commence legal proceedings or otherwise proceed
against the Employee in any other jurisdiction. The Employee hereby irrevocably waives any
objection which he may now or hereafter have to the laying of venue of any of the aforesaid actions
or proceedings arising out of or in connection with this Agreement brought in the courts referred
to above and hereby further irrevocably waives and agrees not to plead or claim in any such court
that any such action or proceeding brought in any such court has been brought in an inconvenient
forum.

          12. Waiver of Jury Trial. The parties hereto each waive their respective rights to a
trial by jury of any claim or cause of action based upon or arising out of or related to this
Agreement or the transactions contemplated hereby in any action, proceeding or other litigation of
any type brought by any of the parties against any other party or parties, whether with respect to
contract claims, tort claims, or otherwise. The parties hereto each agree that any such claim or
cause of action shall be tried by a court trial without a jury. Without limiting the foregoing,
the parties further agree that their respective right to a trial by jury is waived by operation of
this Section 12 as to any action, counterclaim or other proceeding which seeks, in whole or in
part, to challenge the validity or enforceability of this Agreement or any provision hereof. This
waiver shall apply to any subsequent amendments, renewals, supplements or modifications to this
Agreement.

          13. Entire Agreement. This Agreement constitutes the entire understanding between the
Employee and the Company with respect to the subject matter hereof and supersedes all other
agreements, whether written or oral, with respect to the subject matter hereof.

          14. Effectiveness. This Agreement shall become effective upon the date hereof.

* * *

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

	 	 	 	 	 
	 	AMH HOLDINGS II, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

KENNETH L. BLOOM, as the EmployeeExhibit 10.32

 

Exhibit 10.32

December 28, 2005                    

Kenneth L. Bloom

c/o Benesch, Friedlander, Coplan & Aronoff LLP

	 	 	 	 	 
	 

	 	Re:
	 	Separation Agreement and General Release

Dear Ken:

          This letter confirms the resignation of your employment with Associated Materials Incorporated
(“AMI”), with your last day of employment being December 31, 2005. You understand and agree that,
effective October 21, 2005, you have no longer been authorized to incur any expenses or obligations
or liabilities on behalf of AMI and you represent that you have not incurred any such expenses or
obligations or liabilities on behalf of AMI.

          In connection with your resignation, AMI is prepared to provide you with severance pay equal
to four (4) months of your current base salary (less applicable deductions and withholdings). You
will receive this severance pay by remaining on the payroll through April 30, 2006. In addition,
your group medical, dental and life insurance benefits (as may be amended from time to time for
active employees and provided that you will continue to be responsible for that portion of the
monthly premiums for which you would be responsible as an active employee) will remain in effect
until the earlier of April 30, 2006 or the date on which such coverage is available to you from
other employment.

          In order to be eligible to receive the severance payment and other benefits to which you are
not otherwise entitled, you are required to (i) agree to the terms contained in this letter,
including the General Release, indicate your agreement by signing and returning this letter, and
not revoke this agreement as provided below, and (ii) sign the Stock Repurchase Agreement, a copy
of which is attached hereto.

          In consideration for AMI’s payment of the severance payment and other benefits to which you
are not otherwise entitled, you hereby agree to release AMI and any and all of AMI’s predecessors,
successors, assigns, subsidiaries, parents, branches, divisions, affiliates, related entities and
present and former owners, stockholders, officers, directors, employees, insurers, representatives,
attorneys and agents (of either AMI or any and all of AMI’s predecessors, successors, assigns,
subsidiaries, parents, branches, divisions, affiliates and related entities) (collectively, “AMI
Officials”), individually and in their official capacities, of and from all causes of action,
claims, damages, judgments or agreements of any kind including, but not limited to, all matters
arising out of your employment with AMI and the cessation thereof. This

 

 

release includes, but is not limited to, any and all alleged claims based on Title VII of the
Civil Rights Act of 1964, the Civil Rights Act of 1866, the Age Discrimination in Employment Act
(including the Older Workers Benefit Protection Act), the Americans with Disabilities Act, the Ohio
State Labor and Industry Law (including, but not limited to, the Ohio Civil Rights Act), the
Employee Retirement Income Security Act of 1974, the Family and Medical Leave Act of 1993, the
Worker Adjustment and Retraining Notification Act, or any common law, public policy, contract
(whether oral or written, express or implied) or tort law, or any other local, state or federal
law, regulation, ordinance or rule having any bearing whatsoever on the terms and conditions of
your employment and the cessation thereof.

          In addition, you will keep in confidence and will not, except as specifically authorized in
writing by AMI or as otherwise required by law, disclose to any third party or use for the benefit
of himself or any third party any confidential or proprietary information about AMI (or its
parents, subsidiaries, affiliates or related entities) which you acquired, developed or created by
reason of your employment, except for information that is or becomes public other than through your
breach of this paragraph.

          You will also promptly return to AMI all documents, materials and property in your possession,
custody or control that are the property of AMI or any AMI Officials, including but not limited to
all AMI information and related reports, maps, files, memoranda and records, credit cards, cardkey
passes, door and file keys, computer access codes, software and including all copies, duplicates,
reproductions or excerpts thereof.

          You agree not to criticize, denigrate, disparage or impair the commercial reputation, goodwill
or interests of AMI or any AMI Officials in any manner whatsoever.

          You agree that you will cooperate with AMI (or its parents, subsidiaries, affiliates or
related entities) and its legal counsel in connection with any current or future investigation or
litigation relating to any matter with which you were involved or of which you have knowledge or
which occurred during your employment at AMI. Such assistance shall include, but not be limited
to, depositions and testimony and shall continue until such matters are resolved. AMI will
reimburse you for any reasonable and pre-approved travel-related expenses and reasonable telephone
and facsimile expenses that you incur as a result of your cooperation.

          You acknowledge and agree that you continue to be bound by the terms of the covenants set
forth in Section 5 of your employment agreement, dated as of August 21, 2002 and amended and
restated as of July 27, 2004 (and attached hereto and incorporated herein as Exhibit A), including
but not limited to the covenants regarding Noncompetition and Nonsolicitation, each of which
continues for two (2) years following the date of your termination, and the covenants regarding
Nondisclosure and Nondisparagement.

          This Agreement and Release is not an admission of any liability or wrongdoing by AMI or any
AMI Officials, and AMI and AMI Officials expressly deny any such wrongdoing or liability.

          By signing this Agreement and Release, you are providing a complete waiver of all claims that
may have arisen, whether known or unknown, up until the time that this

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Agreement and Release is executed. If you breach this Agreement and Release, AMI will seek
restitution and/or offset of any payments or benefits provided to the extent permitted by law.

          This Agreement and Release does not affect your entitlement to previously accrued or vested
benefits to which you may be entitled, which are summarized as follows:

	 	•	 	You have no accrued but unused vacation days.
	 
	 	•	 	Your group medical and dental benefits will remain in effect until December 31,
2005. Upon the termination of your group medical and dental benefits, you will be
provided separate information regarding your right thereafter to continue group
coverage as required by the Consolidated Omnibus Budget Reconciliation Act of 1985
(“COBRA”).
	 
	 	•	 	Your group life insurance will remain in effect until December 31, 2005, which
is the last day of your employment. Upon the termination of your group life
insurance, you will be provided separate information regarding your right to
convert your group life insurance to an individual policy.
	 
	 	•	 	You will be provided a separate statement of your benefits, if any, under any
AMI savings and/or pension plan. Your rights to benefits under any AMI savings
and/or pension plan will be determined by law and in accordance with the terms of
the specific plan.

          Since your execution of this Agreement and Release releases AMI and any AMI Officials from all
claims you may have, you should review this carefully before signing it. You can take at least
twenty-one (21) days from your receipt of this Agreement and Release to consider its meaning and
effect and to determine whether you wish to enter into it. During that time, you are advised to
consult with anyone of your choosing, including an attorney, prior to executing this Agreement and
Release.

          Once you have signed this Agreement and Release, you may choose to revoke your execution
within seven (7) days. Any revocation of this Agreement and Release must be in writing and
personally delivered to John Haumesser, Associated Materials Incorporated, 3773 State Road,
Cuyahoga Falls, Ohio 44223, or if mailed, postmarked within seven (7) days of the date upon which
it was signed by you.

          TO RECEIVE THE SEVERANCE PAYMENT AND OTHER BENEFITS, YOU MUST SIGN AND RETURN THE AGREEMENT
AND RELEASE NO EARLIER THAN DECEMBER 31, 2005 AND NO LATER THAN JANUARY 21, 2006, AND DELIVER THE
ATTACHED LETTER INDICATING THAT YOU DO NOT WISH TO REVOKE YOUR AGREEMENT SEVEN (7) DAYS AFTER THE
DATE YOU SIGN THIS AGREEMENT AND RELEASE. This Agreement and Release should be returned to John
Haumesser, Associated Materials Incorporated, 3773 State Road, Cuyahoga Falls, Ohio 44223. AMI
will not make any payments or provide any other benefits pursuant to this Agreement and Release
until after the seven (7) day period expires and AMI receives the attached letter indicating that
you have not revoked your agreement.

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          This Agreement and Release (including the attached Stock Repurchase Agreement and attached
employment agreement) contains the entire understanding of the parties relating to the subject
matter hereof, and supersedes and replaces the Separation Agreement and General Release, dated
December 27, 2005, which you previously received from AMI. You acknowledge that no
representations, oral or written, have been made other than those expressly set forth herein, and
that you have not relied on any other representations in executing this Agreement and Release.
This Agreement and Release may be modified only in a document signed by the parties and referring
specifically hereto.

Sincerely yours,

Associated Materials Incorporated

John Haumesser

Vice President, Human Resources

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ACKNOWLEDGMENT

          I AGREE TO THE TERMS AND CONDITIONS SPECIFIED IN THIS AGREEMENT AND RELEASE AND I INTEND TO
WAIVE AND RELEASE ALL CLAIMS THAT I MAY HAVE AGAINST AMI AND ANY AMI OFFICIALS. I UNDERSTAND THAT
THIS WAIVER AND RELEASE CREATES A TOTAL AND UNLIMITED RELEASE OF ALL CLAIMS, WHETHER KNOWN OR
UNKNOWN, EXISTING AS OF THIS DATE THAT I MAY HAVE AGAINST AMI AND ANY AMI OFFICIALS.

          I HAVE HAD AMPLE TIME TO REVIEW THIS AGREEMENT AND TO CONSIDER MY GENERAL RELEASE OF ALL
CLAIMS AS SET FORTH IN THIS AGREEMENT AND RELEASE. I AM SIGNING THIS AGREEMENT AND RELEASE
KNOWINGLY, VOLUNTARILY AND WITH FULL UNDERSTANDING OF ITS TERMS AND EFFECTS. I UNDERSTAND THAT I
CAN TAKE AT LEAST TWENTY-ONE (21) DAYS FROM RECEIPT OF THIS AGREEMENT AND RELEASE TO DETERMINE
WHETHER I WISH TO SIGN IT, THAT I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY PRIOR TO SIGNING
IT, AND THAT I HAVE SEVEN (7) DAYS FROM THE DATE I SIGN THIS AGREEMENT AND RELEASE TO REVOKE IT.

          I ACKNOWLEDGE THAT I HAVE NOT RELIED ON ANY REPRESENTATIONS OR STATEMENTS NOT SET FORTH
HEREIN. I WILL NOT DISCLOSE THIS AGREEMENT AND RELEASE TO ANYONE EXCEPT TO MY IMMEDIATE FAMILY AND
ANY TAX, LEGAL OR OTHER COUNSEL THAT I HAVE CONSULTED REGARDING THE MEANING OR EFFECT OF THIS
AGREEMENT, EXCEPT AS OTHERWISE REQUIRED BY LAW.

          In
witness hereof, I have executed this Separation Agreement and General Release this ___ day
of                     , 200___.

	 	 	 	 	 	 	 
	 

Kenneth L. Bloom

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	STATE OF OHIO

	 	 	)	 	 	 
	 

	 	 	 	 	 	ss.:
	COUNTY OF                                                     

	 	 	)	 	 	 

          On this                      day of                     , 200___, before me, a Notary Public of the State of Ohio,
personally appeared KENNETH L. BLOOM, to me known and known to me to be the person described and
who executed the foregoing agreement and release and did then and there acknowledge to me that s/he
voluntarily executed the same.

	 	 	 
	 

	 	 
	 

	 	Notary Public

YOU
MUST RETURN THE ENTIRE SEPARATION AGREEMENT AND GENERAL RELEASE (INCLUDING THIS ACKNOWLEDGMENT PAGE).

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                                        , 200____

John Haumesser

Vice President, Human Resources

Associated Materials Incorporated

3773 State Road

Cuyahoga Falls, Ohio 44223

	 	 	 	 	 
	 

	 	Re:
	 	Separation Agreement and General Release

Dear John:

          On                     , 200___, I executed a Separation Agreement and General Release between
Associated Materials Incorporated and me. I was advised in writing to consult with an attorney of
my choosing prior to signing the Agreement and Release.

          At least seven (7) days have elapsed since I executed the above-mentioned Agreement and
Release, and I have not revoked my acceptance or execution thereof. I hereby request payment of
the monies and other benefits described in that Agreement and Release.

	 	 	 
	 

	 	Very truly yours,

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