Document:

Exhibit 10.16

    

      Exhibit
        10.16

      Ply
        Gem Industries, Inc.

      185
        Platte-Clay Way, Suite A

      Kearney,
        MO 64060

      

      

      December
        1, 2005

       

      Jeff
        Klein

      4801
        Hyada Blvd. NE

      Tacoma,
        WA 98422

       

      

       

      Re: Retention
        Agreement

       

      Dear
        Jeff:

       

      Ply
        Gem
        Industries, Inc. (“Ply Gem”) considers the continuity of management essential to
        the best interests of Ply Gem and its stockholders and desires to reinforce
        and
        encourage your continued attention and dedication to your duties to Ply Gem
        and
        its subsidiaries (each, an “Employer”). To assure your continued focus on your
        duties to your Employer, the Board of Directors of Ply Gem (the “Board”) has
        authorized Ply Gem to enter into this letter agreement with you, which sets
        forth the compensation that Ply Gem agrees to pay you if your employment
        is
        terminated under the circumstances described herein.

       

      This
        letter agreement sets forth the terms and conditions of Ply Gem’s agreement to
        pay you the compensation under the circumstances described herein, and the
        parties to this letter agreement acknowledge the receipt and sufficiency
        of good
        and valuable consideration in support of this letter agreement, including
        the
        covenants and agreements set forth herein. 

       

      1.  Term

       

      This
        letter agreement is effective as of the date hereof and shall expire on December
        31, 2007 (the “Expiration Date”) provided, that, Ply Gem shall have the right to
        renew this letter agreement for successive one year periods (each, a “Renewal
        Term”), which right it must exercise prior the second anniversary of the
        Expiration Date, or the last day of any Renewal Term, as applicable.

       

      2.  Compensation

       

      If,
        during the term of this letter agreement, your employment is terminated (A)
        by
        your Employer without “Cause” or (B) by you following a “Material Adverse
        Change” (as such terms are defined below), you will be entitled to receive,
        subject to your execution of and continued compliance with a Release and
        Restrictive Covenant Agreement substantially in the form attached to this
        letter
        agreement as Exhibit A (the “Release and Restrictive Covenant Agreement”):

       

      (a)  An
        amount
        equal to your annual base salary in effect on the date of your termination
        (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 that
        you may
        be entitled to). This salary continuation shall be payable in equal installments
        over the 12-month period following the date of your termination of employment
        (the “Payment Period”), in accordance with your Employer’s normal payroll
        practices;

       

      (b)  An
        amount
        equal to the lesser of (I) your target annual cash bonus with respect to
        the
        fiscal year during which your termination of employment occurs (the “Year of
        Termination”) and (II) the actual annual cash bonus you would have received with
        respect to the Year of Termination based on actual performance during that
        year,
        if you had been employed for the full year, measured as of the time such
        performance is measured for purposes of paying annual cash bonuses to other
        executives of your Employer with respect to such year (the “Actual Bonus”). As
        soon as reasonably practicable following the date that the amount of the
        Actual
        Bonus is determined, you shall be paid a lump sum cash payment equal to the
        portion of the Actual Bonus that you would have been paid prior to such date
        had
        such amount been determined as of the date of your termination of employment.
        

       

      (c)  A
        lump
        sum payment equal to a pro rata portion of any annual cash bonus that you
        would
        have been entitled to receive with respect to the Year of Termination based
        upon
        the percentage of such year that shall have elapsed through the date of your
        termination of employment, and determined as of the date such bonuses are
        determined for other executives of your Employer (the “Pro Rata Bonus”). The Pro
        Rata Bonus shall be payable when annual cash bonuses with respect to the
        Year of
        Termination are paid to other executives of your Employer. 

       

      (d)  Continuation
        of medical and dental benefits for you and your spouse and dependents, if
        any,
        during the Payment Period, in the same plans and on the same basis (including,
        without limitation, contribution rates) as such benefits are provided from
        time
        to time to actively employed executives of your Employer, subject to the
        terms
        of such plans as the same may exist from time to time; provided, that, the
        Employer’s obligation to provide such medical and dental benefits shall cease at
        the time you become eligible for such benefits from another
        employer;

       

      (e)  (i)
        your
        base salary through the date of termination; (ii) any declared but unpaid
        annual
        cash bonus for any fiscal year preceding the year in which the termination
        occurs; (iii) reimbursement for any unreimbursed business expenses properly
        incurred by you in accordance with Employer policy through your date of
        termination; and (iv) any other amounts, including without limitation, accrued
        but unused vacation, required to be paid to you under any applicable state
        statute or regulation.

       

      Your
        termination shall not be deemed to be terminated by your Employer without
        Cause
        or by you following a Material Adverse Change, and you shall not be entitled
        to
        any payments or benefits under this Section 2 solely on account of, the sale
        or
        disposition by Ply Gem or any Employer, or any parent of Ply Gem or any
        Employer, as applicable, of the subsidiary or division for which you are
        employed if you are offered employment by the purchaser or acquirer of such
        subsidiary or division and such acquirer or purchaser agrees to assume the
        terms
        of this letter agreement.

       

      Notwithstanding
        anything to the contrary in this letter agreement, no further payments or
        benefits are due under this Section 2 and, subject to applicable state law,
        Ply
        Gem and any Employer, as applicable, shall have the right to reclaim any
        amounts
        already paid to you under this Section 2 if, at any time during the Restricted
        Period (as such term is defined in the attached Release and Restrictive Covenant
        Agreement) after your employment is terminated, (i) you breach any of the
        provisions of Section VI of the Release and Restrictive Covenant Agreement,
        or
        (ii) the Board determines, in good faith, that grounds existed, on or prior
        to
        the date of termination of your employment with Employer, including prior
        to the
        date of this letter agreement, for your Employer to terminate your employment
        for Cause; provided, that, in all events you will be entitled to receive
        amounts
        in sub-clauses (i), (iii), and (iv) of Section 2(e) above. 

       

      3.  Definitions

       

      For
        purposes of this letter agreement, “Cause” shall mean: (i) your willful and
        continued failure to perform substantially your 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 you by the Board, which notice specifically identifies the manner
        in which you have not substantially performed your material duties, and you
        neglect to cure such failure within 30 days; (ii) a willful failure to follow
        the lawful direction of the Board or of the senior executive officer of Ply
        Gem
        to whom you directly report (if applicable); (iii) your material act of
        dishonesty or breach of trust in connection with the performance of your
        duties
        to Ply Gem or your Employer; (iv) your 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 Employer is awarded damages from you in respect of a claim of loss
        of
        funds through fraud or misappropriation by you, which has become final and
        is
        not subject to further appeal.

       

      For
        purposes of this letter agreement, a “Material Adverse Change” shall mean any of
        the following, without your express written consent:

       

      
        	(1)  	
                Assignment
                  to you of any duties that are inconsistent with your position,
                  duties and
                  responsibilities and status with Employer as of the Expiration
                  Date;

              

      

       

      
        	(2)  	
                Employer’s
                  reduction of your base salary;

              

      

       

      
        	(3)  	
                Any
                  action by Employer that would deprive you of any material employee
                  benefit
                  enjoyed by you, except where such change is applicable to all employees
                  participating in such benefit plan;

              

      

       

      
        	(4)  	
                Any
                  breach by the Company or Employer of any provision of this Letter
                  Agreement or the Release and Restrictive Covenant
                  Agreement.

              

      

       

      4.  Release
        and Restrictive Covenant Agreement

       

      All
        payments and benefits described in Section 2 of this letter agreement are
        conditional upon and subject to your execution of the Release and Restrictive
        Covenant Agreement.

       

      5.  Notices

       

      Any
        notice required by this letter agreement must be in writing and will be deemed
        to have been duly given (i) if delivered personally or by overnight courier
        service,
        sent by
        facsimile transmission or mailed
        by
        United States registered mail, return receipt requested, postage prepaid,
        and
        (ii) addressed to the respective addresses or sent via facsimile to the
        respective facsimile numbers, as the case may be, as set forth below, or
        to such
        other address as either party may have furnished to the other in writing
        in
        accordance herewith, except that notice of change of address shall be effective
        only upon receipt; provided, however, that (X) notices sent by personal delivery
        or overnight courier shall be deemed given when delivered; (Y) notices sent
        by
        facsimile transmission shall be deemed given upon the sender’s receipt of
        confirmation of complete transmission, and (Z) notices sent by United States
        registered mail shall be deemed given two
        days
        after the date of deposit in the United States mail.

       

      If
        to the
        Employee, to the address as shall most currently appear on the records of
        the
        Company

       

      If
        to the
        Company, to:

      

      Ply
        Gem
        Industries, Inc.

      606
        West
        Major Street

      Kearny,
        MO 64060

      Fax:
        (816) 903-4330

       

      Attn:
        President

       

      6.  General

       

      Your
        Employer may withhold from any amounts payable under Section 2 of this letter
        agreement such federal, state, local or other taxes required to be withheld
        pursuant to applicable law or regulation.

       

      The
        payments and benefits provided for in Section 2 of this letter agreement
        shall
        not be counted as compensation for purposes of determining benefits under
        other
        benefit plans, programs, policies and agreements of your Employer, except
        to the
        extent expressly provided therein or herein.

       

      This
        letter agreement is not intended to result in any duplication of payments
        or
        benefits to you and does not give you any right to any compensation or benefits
        from Ply Gem or your Employer except as specifically stated in this letter
        agreement.

       

      For
        you
        to receive the payments and benefits described in Section 2 of this letter
        agreement, you will not be required to seek other employment or otherwise
        mitigate the obligations of your Employer under this letter agreement. There
        will be no offset against any amounts due under this letter agreement on
        account
        of any remuneration attributable to any subsequent employment that you may
        obtain.

       

      This
        letter agreement is not a contract of employment and does not give you any
        right
        of continued employment or limit the right of your Employer to terminate
        or
        change the status of your employment at any time or change any employment
        policies. 

       

      This
        letter agreement is governed by the laws of the state of Delaware, without
        reference to the principles of conflict of laws which would cause the laws
        of
        another state to apply. By signing this letter agreement, you and Ply Gem
        irrevocably agree, for the exclusive benefit of the other, that any and all
        suits, actions or proceedings relating to Section VI of the Release and
        Restrictive Covenant Agreement (collectively, “Proceedings” and, individually, a
“Proceeding”) will 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. You and Ply
        Gem
        irrevocably waive any objection that you or Ply Gem 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 agree that a judgment in any Proceeding brought in the Chosen
        Courts
        shall be conclusive and binding upon you and Ply Gem and may be enforced
        in the
        courts of any other jurisdiction. 

       

      You
        and
        Ply Gem agree that this letter agreement involves at least $100,000 and that
        this letter agreement has been entered into in express reliance on Section
        2708
        of Title 6 of the Delaware Code. You and Ply Gem irrevocably and unconditionally
        agree (i) that, to the extent you or Ply Gem are not otherwise subject to
        service of process in the State of Delaware, you or Ply Gem will appoint
        (and
        maintain an agreement with respect to) an agent in the State of Delaware
        as your
        agent for acceptance of legal process and notify Ply Gem or you, as applicable,
        of the name and address of said agent, (ii) that service of process may also
        be
        made on you or Ply Gem by pre-paid certified mail with a validated proof
        of
        mailing receipt constituting evidence of valid service sent to you or Ply
        Gem at
        the address set forth in this letter 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.

       

      
        
          8

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Your
        rights under this letter agreement are not transferable, assignable or subject
        to lien or attachment.

       

      This
        letter agreement contains the entire understanding and agreement between
        you and
        Ply Gem concerning the matters described herein. This letter agreement may
        not
        be amended except in a writing signed by you and by an authorized officer
        on
        behalf of Ply Gem.

       

                                                      Sincerley,

       

      
        	 	 	 
	 	PLY
                GEM
                INDUSTRIES, INC.
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
                
Name: Lee
                D. Meyer
	 	Title: 
                 President

      

       

      Acknowledged
        and Agreed:

       

       

      ______________________

       

       

      

       

       

      RELEASE
        AND RESTRICTIVE COVENANT AGREEMENT

       

      This
        Release and Restrictive Covenant Agreement (the “Agreement”) is entered into by
        and between Jeff Klein (the “Employee”) and Ply Gem Industries, Inc. (the
“Company”), on December 1, 2005.

       

      I.  Release
        of Claims

       

      In
        partial consideration of the payments and benefits described in Section 2
        of the
        letter agreement between you and the Company, dated December 1, 2005, (the
        “Letter”), to which the Employee agrees the Employee is not entitled until and
        unless he executes this Agreement, the Employee, for and on behalf of himself
        and his heirs and assigns, subject to the last sentence of this paragraph,
        hereby waives and releases any common law, statutory or other complaints,
        claims, charges or causes of action of any kind whatsoever, both known and
        unknown, in law or in equity, which the Employee ever had, now has or may
        have
        against the Company and its shareholders and their respective subsidiaries,
        successors, assigns, affiliates, 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 the 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 Agreement, the Employee
        acknowledges that he intends to waive and release any rights known or unknown
        that he may have against the Releasees under these and any other laws; provided,
        that the Employee does not waive or release claims with respect to the right
        to
        enforce his rights under the Letter (the “Unreleased Claims”).

       

      II.  Proceedings

       

      The
        Employee acknowledges that he has not filed any complaint, charge, claim
        or
        proceeding, except with respect to an Unreleased Claim, if any, against any
        of
        the Releasees before any local, state or federal agency, court or other body
        (each individually a “Proceeding”). The Employee represents that he is not aware
        of any basis on which such a Proceeding could reasonably be instituted. The
        Employee (a) 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 (b) 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 Employee understands that, by
        executing this Agreement, he will be limiting the availability of certain
        remedies that he may have against the Company and limiting also his ability
        to
        pursue certain claims against the Releasees. Notwithstanding the above, nothing
        in Section I of this Agreement shall prevent the Employee from (x) initiating
        or
        causing to be initiated on his behalf any complaint, charge, claim or proceeding
        against the Company before any local, state or federal agency, court or other
        body challenging the validity of the waiver of his claims under the ADEA
        contained in Section I of this Agreement (but no other portion of such waiver);
        or (y) initiating or participating in an investigation or proceeding conducted
        by the EEOC.

       

      III.  Time
        to Consider

       

      The
        Employee acknowledges that he has been advised that he has 21 days from the
        date
        of receipt of this Agreement to consider all the provisions of this Agreement
        and he does hereby knowingly and voluntarily waive said given 21 day period.
        THE
        EMPLOYEE FURTHER ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT CAREFULLY,
        HAS
        BEEN ADVISED BY THE COMPANY 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 SUE OR ASSERT A CLAIM AGAINST ANY OF THE RELEASEES, AS DESCRIBED
        IN
        SECTION I OF THIS AGREEMENT AND THE OTHER PROVISIONS HEREOF. THE EMPLOYEE
        ACKNOWLEDGES THAT HE HAS NOT BEEN FORCED OR PRESSURED IN ANY MANNER WHATSOEVER
        TO SIGN THIS AGREEMENT, AND THE EMPLOYEE AGREES TO ALL OF ITS TERMS
        VOLUNTARILY.

       

      IV.  Revocation

       

      The
        Employee hereby acknowledges and understands that the Employee shall have
        seven
        days from the date of the Employee’s execution of this Agreement to revoke this
        Agreement (including, without limitation, any and all claims arising under
        the
        ADEA) and that neither the Company nor any other person is obligated to provide
        any benefits to the Employee pursuant to Section 2 of the Letter until eight
        days have passed since the Employee’s signing of this Agreement without the
        Employee having revoked this Agreement, in which event the Company immediately
        shall arrange and/or pay for any such benefits otherwise attributable to
        said
        eight-day period, consistent with the terms of the Letter. If the Employee
        revokes this Agreement, the Employee will be deemed not to have accepted
        the
        terms of this Agreement, and no action will be required of the Company under
        any
        section of this Agreement. 

       

      V.  No
        Admission

       

      This
        Agreement does not constitute an admission of liability or wrongdoing of
        any
        kind by the Employee or the Company. 

       

      VI.  Restrictive
        Covenants

       

      A.  Non-Competition/Non-Solicitation
        

       

      The
        Employee 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 date of the Employee’s termination of employment
        and ending on the last day of the Payment Period (the “Restricted Period”), or
        such longer period as described in the last sentence of Section VII of this
        Agreement, the Employee will not, directly or indirectly, (w) engage
        in any “Competitive Business” (defined below) for the 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 Company and customers or suppliers of,
        or
        consultants to, the Company.

       

      2.  For
        purposes of this Section VI, 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 Employee works does business:
        the
        manufacture and sale of vinyl, vinyl clad and aluminum windows.

       

      3.  For
        purposes of this Section VI and of Section VII 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 Employee 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 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.

       

      5.  During
        the Restricted Period, the Employee 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 Employee 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
        Employee understands that the provisions of this Section VI.A may limit the
        Employee’s ability to earn a livelihood in a business similar to the business of
        the Company, but the 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 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 Employee. In consideration
        of
        the foregoing and in light of the Employee’s education, skills and abilities,
        the Employee agrees that he shall not assert that, and it should not be
        considered that, any provisions of Section VI.A. otherwise are void, voidable
        or
        unenforceable or should be voided or held unenforceable.

       

      7.  It
        is
        expressly understood and agreed that, although the Employee and the Company
        consider the restrictions contained in this Section VI.A 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
        VI.A or
        elsewhere in this Agreement is an unenforceable restriction against the
        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.

       

      B.  Nondisparagement

       

        The
          Employee agrees (whether during or after the Employee’s employment with the
          Company) not to issue, circulate, publish or utter any false or disparaging
          statements, remarks or rumors about the Company or the shareholders, officers,
          directors or managers of the Company other than to the extent reasonably
          necessary in order to (i) assert a bona fide claim against the Company
          arising
          out of the Employee’s employment with the Company, 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. 

       

      C.  Company
        Policies

       

      The
        Employee agrees to abide by the terms of any employment policies or codes
        of
        conduct of the Company that apply to the Employee after termination of
        employment. 

       

      D.  Confidentiality/Company
        Property

       

      The
        Employee shall not, without the prior written consent of the Company, 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 Company, in furtherance of the business of and
        for
        the benefit of the Company, or any “Personal Information” (as defined below);
        provided that the 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 the Company and/or its affiliates,
        as
        the case may be, or by any administrative body or legislative body (including
        a
        committee thereof) with jurisdiction to order the Employee to divulge, disclose
        or make accessible such information; provided, further, that in the event
        that
        the Employee is ordered by a court or other government agency to disclose
        any
        Confidential Information or Personal Information, the Employee shall
        (i) promptly notify the Company of such order, (ii) at the written
        request of the Company, diligently contest such order at the sole expense
        of the
        Company as expenses occur, and (iii) at the written request of the Company,
        seek to obtain, at the sole expense of the Company, such confidential treatment
        as may be available under applicable laws for any information disclosed under
        such order. For purposes of this Section VI.D, (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 Company or its
        affiliates or customers, that, in any case, is not otherwise available to
        the
        public (other than by the 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 Company. Upon termination of the Employee’s employment with the
        Company, the Employee shall return all Company property, including, without
        limitation, files, records, disks and any media containing Confidential
        Information or Personal Information.

       

      E.  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 Employee, alone or with others, and in any
        way
        relating to the business or any proposed business of the Company of which
        the
        Employee has been made aware, or the products or services of the Company
        of
        which the 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 the Employee’s employment with the Company or any subsidiary of
        the Company (“Developments”), shall be the sole and exclusive property of the
        Company. The Employee agrees to, and hereby does, assign to the Company,
        without
        any further consideration, all of the Employee’s right, title and interest
        throughout the world in and to all Developments. The 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 Company is the author of such Developments and owns all of the rights
        comprised in the copyright of such Developments, and the Employee hereby
        assigns
        to the Company, without any further consideration, all of the rights comprised
        in the copyright and other proprietary rights the Employee may have in any
        such
        Development to the extent that it might not be considered a work made for
        hire.
        The 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 Company promptly after development of the same, and at any time upon
        request.

       

      F.  Cooperation

       

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

       

      VII.  Enforcement

       

      The
        Employee acknowledges and agrees that the Company’s remedies at law for a breach
        or threatened breach of any of the provisions of Sections VI.A,B,D and E
        of this
        Agreement would be inadequate, and, in recognition of this fact, the Employee
        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, the Company shall be entitled
        to immediately cease paying any amounts remaining due or providing any benefits
        to the Employee pursuant to Section 2 of the Letter and, subject to applicable
        state law, to reclaim any amounts already paid under Section 2 of the Letter
        upon a good faith determination by the Board of Directors of the Company
        that
        the Employee has violated any provision of Section VI of this Agreement,
        subject
        to payment of all such amounts upon a final determination that the Employee
        had
        not violated Section VI of this Agreement. If the Employee breaches any of
        the
        covenants contained in Section VI.A, B, D or E of this Agreement, and the
        Company Group obtains injunctive relief with respect thereto, the period
        during
        which the Employee is required to comply with that particular covenant shall
        be
        extended by the same period that the Employee was in breach of such covenant
        prior to the effective date of such injunctive relief.

       

      VIII.  General
        Provisions

       

      A.  No
        Waiver; Severability

       

      A
        failure
        of the Company or any of the Releasees to insist on strict compliance with
        any
        provision of this Agreement shall not be deemed a waiver of such provision
        or
        any other provision hereof. If any provision of this Agreement is determined
        to
        be so broad as to be unenforceable, such provision shall be interpreted to
        be
        only so broad as is enforceable, and in the event that any provision is
        determined to be entirely unenforceable, such provision shall be deemed
        severable, such that all other provisions of this Agreement shall remain
        valid
        and binding upon the Employee and the Releasees.

       

      B.  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
        VI 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 (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.

       

      C.  Counterparts

       

      This
        Agreement may be signed in counterparts, each of which shall be an original,
        with the same effect as if the signatures thereto and hereto were upon the
        same
        instrument.

       

      D.  Notice

       

      For
        the
        purpose of this Agreement, notices and all other communications provided
        for in
        this Agreement shall be in writing and shall be deemed to have been duly
        given
        if delivered personally, if delivered by overnight courier service,
        if sent
        by facsimile transmission or if mailed
        by
        United States registered mail, return receipt requested, postage prepaid,
        addressed to the respective addresses or sent via facsimile to the respective
        facsimile numbers, as the case may be, as set forth below, or to such other
        address as either party may have furnished to the other in writing in accordance
        herewith, except that notice of change of address shall be effective only
        upon
        receipt; provided, however, that (i) notices sent by personal delivery or
        overnight courier shall be deemed given when delivered; (ii) notices sent
        by
        facsimile transmission shall be deemed given upon the sender’s receipt of
        confirmation of complete transmission, and (iii) notices sent by United States
        registered mail shall be deemed given two
        days
        after the date of deposit in the United States mail.

       

      If
        to the
        Employee, to the address as shall most currently appear on the records of
        the
        Company

       

      If
        to the
        Company, to:

      

      Ply
        Gem
        Industries, Inc.

      606
        West
        Major Street

      Kearny,
        MO 64060

      Fax:
        (816) 903-4330

       

      Attn:
        President

       

      

       

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

       

      

       

                      EMPLOYEE

      

      

                      ______________________________

      

      

                      PLY
        GEM INDUSTRIES,
        INC.

      

      

                      By:___________________________

                      Name:
        Lee D.
        Meyer

                      Title:
        PresidentExhibit 10.17

    KROY
      BUILDING PRODUCTS, INC.

     

    SEPARATION
      AGREEMENT AND GENERAL RELEASE OF ALL CLAIMS

     

    This
      Separation Agreement and General Release of all Claims (the “Agreement”),
      dated
      as of October 16, 2005, is entered into by and between Kroy Building Products,
      Inc., a Delaware corporation (the “Company”),
      David
      S. McCready (the “Executive”)
      and,
      with respect to Section 2C only, Ply Gem Investment Holdings, Inc., a Delaware
      corporation (“PIHI”).

     

    WHEREAS,
      the Executive is currently employed by the Company as its President;
      and

     

    WHEREAS,
      the Company and the Executive have agreed that the Executive’s employment with
      the Company and its subsidiaries and affiliates shall terminate effective
      October 16, 2005 (the “Termination
      Date”),
      and
      the Executive shall relinquish his title of President of the Company and any
      other positions that he presently holds with the Company or any of its
      subsidiaries or affiliates, including, without limitation, PIHI and Ply Gem
      Industries, Inc. (“Ply
      Gem”)
      (collectively, the “Company
      Group”);
      and

     

    WHEREAS,
      the Company desires to provide the Executive with certain benefits upon the
      Executive’s termination of employment with the Company, in exchange for the
      Executive’s agreement to comply with certain restrictive covenants in favor of
      the Company and to release certain claims against the Company and its
      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 Company (the
“Parties”)
      agree
      as follows:

     

    1.  Termination
      of Employment.

     

    The
      Executive and the Company hereby agree that the Executive’s employment and any
      and all titles, positions and appointments he holds with the Company or any
      member of the Company Group, whether as an officer, director, employee,
      consultant, agent or otherwise (including, without limitation as President
      of
      the Company) shall cease as of the Termination Date. Effective as of the
      Termination 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.

     

    2.  Payments
      and Benefits.

     

    In
      consideration for the Executive’s entering into this Agreement, specifically
      including the general release in Section 6 of this Agreement and the restrictive
      covenants contained in Section 5 of this Agreement, the Executive shall be
      entitled to the following payments and benefits, subject to the general release
      becoming effective (i.e., the Executive not exercising his right to revoke
      the
      release as described in Section 6E of this Agreement) and the Executive’s
      continued compliance with the restrictive covenants contained in Section 5
      of
      this Agreement:

     

    A.  Payment
      by the Company of severance pay in an amount equal to $223,600, which represents
      the Executive’s annual base salary as in effect immediately prior to the
      Termination Date (for the avoidance of doubt this amount shall not, and no
      portion of any severance paid to the Executive pursuant to this Agreement shall
      include any amounts in respect of any car allowance or payments for any other
      perquisites or benefits for the Executive) and which is subject to reduction
      by
      the Company to satisfy any applicable federal, state and local income and
      employment tax withholding obligations of the Company. This payment shall be
      made in 12 equal monthly installments during the period from the Termination
      Date until the first anniversary of the Termination Date the (“Severance
      Period”).
      The
      Company shall mail the first payment on the day following the date the general
      release described in Section 6 of this Agreement becomes effective (i.e., the
      Executive’s not exercising his right to revoke the release as described in
      Section 6E of this Agreement) and shall make each of the following 11 payments
      on the 15th day of each of the months of November through September occurring
      during the Severance Period by direct deposit into an account of the Executive;
      provided, that, if the 15th day of any such month falls on a weekend or on
      a
      Company holiday, the Company shall make such direct deposit payment no later
      than the Monday or first business day (as applicable) following the
      15th;

     

    B.  Provided
      that the Executive, or any of his covered dependents, as applicable, timely
      elects to continue medical and dental coverage in accordance with the
      Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
      (“COBRA”),
      payment by the Company of the COBRA premiums for the Executive and each of
      his
      eligible covered dependents for whom continuation coverage is elected, for
      the
      period commencing on the Termination Date and ending on the earlier of (i)
      last
      day of the Severance Period, and (ii) the date on which the Executive’s COBRA
      coverage otherwise terminates as provided by law;

     

    C.  Effective
      as of the Termination Date, an amount equal to $352,500.00 (the “Stock
      Repurchase Amount”),
      paid
      by PIHI, which shall constitute a repurchase by PIHI of (A) the 5,250 shares
      of
      common stock par value $0.01 per share of PIHI (“PIHI
      Stock”)
      held
      by the Executive as of the Termination Date that were purchased by the Executive
      pursuant to the Ply Gem Investment Holdings, Inc. Subscription Agreement, dated
      as of February 12, 2004, by and between PIHI and the Executive (the
“Subscription
      Agreement”)
      and
      (B) the 30,000 shares of PIHI Stock held by the Executive as of the Termination
      Date that were purchased by the Executive pursuant to the Option Agreement,
      dated February 12, 2004, by and between the Executive and Caxton-Iseman (Ply
      Gem), L.P. (the “Option
      Agreement”),
      calculated based on a $10.00 purchase price per share of PHIC Stock. The Stock
      Repurchase Amount shall be mailed to the Executive on a date (the “Stock
      Repurchase Payment Date”)
      that
      is not later than 15 days after the date the Executive signs this Agreement,
      assuming that the general release has become effective as of the Stock
      Repurchase Payment Date, i.e., that the Executive has not exercised his right
      to
      revoke the release as described in Section 6E of this Agreement. The Executive
      acknowledges and agrees that, except as provided in this Section 2C, as of
      the
      date of this Agreement, there are no outstanding stock options or other equity
      awards held by the Executive that were granted to the Executive by the Company,
      PIHI or any other member of the Company Group and the Executive does not hold
      any other shares of PIHI Stock or any other securities of the Company or any
      member of the Company Group;

     

    D.  Regardless
      of whether the Executive signs this Agreement, as soon as reasonably practicable
      following the Termination 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 Termination Date, (ii) payment in respect of any vacation
      time that is accrued but unused through the Termination Date, and (iii)
      reimbursement for all un-reimbursed business expenses properly incurred by
      the
      Executive in accordance with Company policy prior to the Termination Date and
      not yet reimbursed by the Company; provided, that, the Executive must submit
      to
      the Company, within 21 days after the Termination 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.

     

    E.  All
      benefits accrued up to the Termination Date, to the extent vested, under all
      employee benefit plans of the Company and any member of the Company Group,
      except for any plan that provides for severance, separation pay or termination
      benefits, in accordance with the terms of such plans and under the Option
      Agreement, Subscription Agreement, Stockholders Agreement or any other agreement
      governing any securities of any member of the Company Group that are held by
      the
      Executive as of the Termination Date. 

     

    The
      Executive acknowledges and agrees that (i) the Executive’s receipt of all
      payments and benefits provided in Section 2 of this Agreement constitutes full
      and final payment, accord and satisfaction of any and all potential claims
      to
      the extent described in Section 6A of this Agreement, (ii) except for the
      payments and benefits described in Sections 2A through 2C of this Agreement,
      to
      which the Executive is only entitled if he does not revoke the release in
      Section 6 of this Agreement and continues to comply with the restrictive
      covenants contained in Section 5 of this Agreement, the Executive is not
      entitled to any other compensation or benefits from the Company or any member
      of
      the Company Group (including without limitation any severance or termination
      compensation or benefits), and (iii) as of and after the Termination 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 Termination 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, 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 Company group health plan or to any other benefits to which he may
      be
      entitled under applicable law in respect of his services to the Company prior
      to
      the Termination Date.

     

    If
      the
      Executive revokes the release in Section 6 of this Agreement during the
      revocation period described in such section, then this Agreement shall be void
      as of and following the date of this Agreement, and the Executive shall be
      deemed to have resigned from the Company as of such date and the applicable
      provisions of employee benefit plans and of the Ply Gem Investment Holdings,
      Inc. Stockholders Agreement, dated as of February 12, 2004, by and between
      PIHI,
      Caxton-Iseman (Ply Gem), L.P. and certain other investors in and management
      stockholders of PIHI (the “Stockholders
      Agreement”)
      shall
      apply.

     

    3.  Additional
      Consideration.

     

    The
      Executive acknowledges that, except with respect to the payments described
      in
      Section 2D 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.

     

    4.  Return
      of Company Property.

     

      No
      later
      than the Termination Date, the Executive shall return to the Company 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 Company 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 any employment, compensation,
      benefits or shareholders agreements between the Executive and the Company,
      this
      Agreement and any employee benefit plan materials distributed generally to
      participants in any such plan by the Company. On the Termination Date, all
      telephone and other accounts being paid by the Company on the Executive’s
      behalf, shall be terminated and all company credit cards shall be returned
      to
      the Company and canceled. To the extent any charges are made by the Executive
      using company accounts or credit cards after the Termination Date, such charges
      will be solely the Executive’s responsibility. 

    

    5.  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 Employee’s Non-Disclosure Agreement, signed by the Executive on
      January 11, 2005 (the “Non-Disclosure
      Agreement”),
      the
      Kroy Building Products Employee Information Agreement, dated January 15, 2004
      (the “Employee
      Information Agreement”),
      the
      Ply Gem Industries, Inc. Code of Ethics (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 Termination 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
      Company and accordingly agrees as follows:

     

    1.  During
      the period commencing on the Termination Date and ending on the first
      anniversary of such date (the “Restricted
      Period”)
      or
      such longer period as described in the last sentence of Section 5G of this
      Agreement, the Executive will not, directly or indirectly, (w) engage
      in any “Competitive Business” (defined below) for the Executive’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 Company and customers or suppliers of, or
      consultants to the Company.

     

    2.  For
      purposes of this Section 5B, a “Competitive
      Business”
means,
      as of any date, including during the Restricted Period, (A) any person or entity
      (including any joint venture, partnership, firm, corporation or limited
      liability company) that engages in or proposes to engage in the manufacturing
      of
      vinyl and composite fencing, railing and decking, or (B) any business or
      activity that relates to the design, marketing, distribution, resale, wholesale
      or retailing of vinyl and composite fencing, railing and decking, in the case
      of
      clause (A) or (B), in any geographical area in which the Company does
      business.

     

    3.  For
      purposes of this Section 5B, 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.

     

    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
      12-month period preceding such solicitation or encouragement 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 12-month period preceding such hiring activity, an employee
      of
      the Company.

     

    6.  The
      Executive understands that the provisions of this Section 5B 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 5B 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 5B 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 5B 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

     

      The
        Executive agrees not to issue, circulate, publish or utter any false or
        disparaging statements, remarks or rumors about 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 a member of the Company Group arising out of the Executive’s employment
        with the Company, 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.  References

     

    The
      Company agrees that, in response to a request from any person or entity for
      a
      reference check on the Executive, the Company shall only provide such person
      or
      entity with the Executive’s dates of employment and title and position held.
      Nothing herein precludes employees of the Company or any employee of any member
      of the Company Group from providing a reference if so requested by the
      Executive, and the Company agrees not to prohibit such provision.

     

    E.  Confidentiality/Company
      Property

     

    The
      Executive shall not, without the prior written consent of the Company or any
      applicable member of the Company Group, use, divulge, disclose or make
      accessible to any other person, firm, partnership, corporation or other entity,
      any “Confidential Information” or any “Personal Information” (as such terms are
      defined below); provided that the Executive 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 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 applicable member of the Company Group of
      such order, (ii) at the written request of such member, diligently contest
      such order at the sole expense of such member as expenses occur, and
      (iii) at the written request of such member, seek to obtain, at the sole
      expense of the member, such confidential treatment as may be available under
      applicable laws for any information disclosed under such order. For purposes
      of
      this Section 5E, (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 any member of the Company Group or 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 any member of the Company Group.
      Upon
      termination of the Executive’s employment with the Company, and except as
      provided in Section 4 of this Agreement, the Employee shall return all Company
      property, including, without limitation, files, records, disks and any media
      containing Confidential Information or Personal Information.

     

    F.  Cooperation
      and Indemnification

     

    1.  Cooperation.
      At any
      time after the Termination Date, the Executive agrees to cooperate (i) with
      any
      member of the Company Group in the defense of any legal matter involving any
      matter that arose during the Executive’s employment with the Company or service
      to any member of the Company Group and (ii) with all government authorities
      on
      matters pertaining to any investigation, litigation or administrative proceeding
      pertaining to any member of the Company Group. The applicable member of the
      Company Group will reimburse the Executive for any reasonable travel and out
      of
      pocket expenses incurred by the Executive in providing such cooperation. In
      addition, with respect to any time after the Severance Period, the Company,
      or
      any applicable member of the Company Group, as applicable, shall pay the
      Executive a fee equal to $2,000 per day, pro-rated for any partial days, that
      the Executive is required to cooperate with any member of the Company Group
      or
      any government authorities in compliance with this Section 5F.

     

    2.  Indemnification.
      The
      Company, on behalf of its affiliates, successors, employees, agents and assigns,
      hereby agrees to defend, indemnify and hold harmless the Executive, to the
      maximum extent permitted by applicable law, from and against any and all
      actions, causes of action, claims, obligations, liabilities, demands, losses,
      diminutions in value, damages (including incidental and consequential), costs
      and expenses, including without limitation, costs of investigation and defense,
      attorneys’ fees and other professional fees and expenses, of any kind or nature,
      whether matured or hereinafter accruing, directly or indirectly arising from
      any
      act or omission of the Executive by reason of his being an officer, director
      or
      employee of any member of the Company Group. For a period of two years after
      the
      Termination Date, the Company shall provide, at its expense, Directors and
      Officers insurance coverage to cover the Executive at least to the extent such
      coverage was maintained during his employment by the Company.

     

    G.  Enforcement

     

    The
      Executive acknowledges and agrees that the Company Group’s remedies at law for a
      breach or threatened breach of any of the provisions of Sections 5.A, 5B, 5C
      and
      5E 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 Group, 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, and the Executive shall
      reimburse any member of the Company Group for all reasonable attorneys’ fees,
      expenses and costs incurred by such member in connection with such member’s
      efforts to enforce such covenants. In addition, the Company shall be entitled
      to
      immediately cease paying any amounts remaining due or providing any benefits
      to
      the Executive pursuant to Section 2 of this Agreement and, subject to applicable
      state law, to reclaim any amounts already paid to the Executive under this
      Agreement upon a determination by the Company Group that the Executive has
      violated any provision of Section 5 of this Agreement that is listed above,
      subject 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 5 of this Agreement and any member of 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.

     

    6.  Acknowledgment
      and Release.
      

     

    A.  In
      consideration of the Company’s execution of the Agreement, and except with
      respect to the Company’s 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 and other
      complaints, claims, charges and causes of action of any nature whatsoever,
      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, all complaints, claims, charges and causes of
      action arising out of or relating to the Executive’s employment or termination
      of employment with, status as a shareholder of or serving in any capacity in
      respect of, any member of the Company Group and all complaints, claims, charges
      and causes of action 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 and Title VII of the Civil Rights Act of 1964, all as amended, and
      all other federal, state and local laws and in the nature of contract law or
      tort law. By signing the Agreement the Executive 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
      the Executive does not waive or release claims with respect to the right to
      enforce this Agreement.

     

    B.  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 (each individually a “Proceeding”).
      The
      Executive represents that he is not aware of any basis on which such a
      Proceeding could reasonably be instituted.

     

    C.  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 Agreement, he
      will
      be limiting the availability of certain remedies that he may have against the
      Company and also limiting his ability to pursue certain claims against the
      Releasees. Notwithstanding the above, nothing in this Section 6 shall prevent
      the Executive from (i) initiating or causing to be initiated on his behalf
      any
      complaint, charge, claim or proceeding against any member of the Company Group
      before any local, state or federal agency, court or other body challenging
      the
      validity of the waiver of his claims under the ADEA contained in Section 6
      of
      this Agreement (but no other portion of such waiver); or (ii) initiating or
      participating in an investigation or proceeding conducted by the EEOC with
      respect to the ADEA.

     

    D.  The
      Executive acknowledges that he has been given 21 days from the date of receipt
      of this Agreement to consider all the provisions of this Agreement, and he
      does
      hereby knowingly and voluntarily waive said given 21-day period. THE
      EXECUTIVE FURTHER ACKNOWLEDGES THAT HE HAS READ THE AGREEMENT CAREFULLY, HAS
      BEEN ADVISED BY THE COMPANY 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 SECTION 6
      AND
      THE OTHER PROVISIONS HEREOF. THE EXECUTIVE ACKNOWLEDGES THAT HE HAS NOT BEEN
      FORCED OR PRESSURED IN ANY MANNER WHATSOEVER TO SIGN THIS AGREEMENT AND THE
      EXECUTIVE AGREES TO ALL OF ITS TERMS VOLUNTARILY.

     

    E.  The
      Executive shall have seven days from the date of his execution of this Agreement
      to revoke the Agreement, including the release given under this Section 6 with
      respect to all claims referred to herein (including, without limitation, any
      and
      all claims arising under the ADEA). If the Executive revokes this Agreement
      including, without limitation, the release given under this Section 6, the
      Executive will be deemed not to have accepted the terms of this Agreement,
      including any action required of the Company, PIHI or any member of the Company
      Group by any Section of this Agreement.

     

    7.  Miscellaneous.

     

    A.  Entire
      Agreement.
      This
      Agreement is the entire agreement between the Parties with respect to the
      subject matter hereof and contains all agreements, whether written, oral,
      express or implied, between the Parties relating thereto and supersedes and
      extinguishes any other agreement relating thereto, whether written, oral,
      express or implied, between the Parties, including, without limitation, the
      Subscription Agreement and the Option Agreement; provided, that the
      Non-Disclosure Agreement, the Employee Information Agreement and the Executive’s
      obligations pursuant to the Ply Gem Code of Ethics shall not be superseded
      by
      this Agreement and shall remain 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 herein, there are no agreements
      of
      any nature whatsoever between the Executive and any member of the Company Group
      that survive this Agreement. Notwithstanding the foregoing or anything to the
      contrary in this Agreement, the Executive agrees that, as of the Termination
      Date, the Executive shall have no further rights pursuant to the Stockholders
      Agreement; provided that the provisions of Section 6.3 of the Stockholders
      Agreement regarding post-employment covenants of the Executive shall remain
      binding on the Executive and survive in accordance with their
      terms.

     

    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 Parties. 

     

    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
      Company:

     

    Kroy
      Building Products, Inc. 

                1857
      Evans
      Road

    Cary,
      North Carolina 27513

    Attention:  Lee
      Meyer, Chief Executive Officer

     

     

    Paul,
      Weiss, Rifkind, Wharton & Garrison LLP

    1285
      Avenue of the Americas

    New
      York,
      New York 10019-6064

    Attention:  Carl
      Reisner, Esq. 

     

    If
      to the
      Executive:

     

    1132
      Weeping Glen Court

    Raleigh,
      North Carolina 27614

     

     

     

    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 Parties, their
      respective heirs, successors and assigns. In the event the Executive dies at
      any
      time before any amounts payable to him under this Agreement are paid in full,
      the amounts remaining to be paid under this Agreement at the time of his death
      shall be paid (at such times as such amounts would have been paid to the
      Executive) to his surviving spouse, if any, and otherwise to his
      estate.

     

    E.  Taxes.
      Notwithstanding any other provision of this Agreement to the contrary, the
      Company 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. 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.

     

    I.  Venue.
      Any
      action or other legal proceeding arising under or relating to any provision
      of
      this Agreement shall be commenced only in a court of the State of North Carolina
      (or, if appropriate, a federal court located within the State of North
      Carolina), and the Company and the Executive hereby consent to the jurisdiction
      of such a court. 

     

    J.  Governing
      Law/Waiver of Jury Trial.
      The
      Agreement shall be governed by, and construed in accordance with the internal
      laws of the State of North Carolina, without regard to principles of conflicts
      of laws of such state that may cause the laws of another state to apply. The
      Company 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.

     

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

     

                    KROY
      BUILDING
      PRODUCTS, INC.

     

                    By:_________________________________

                    Title:

    

    

    

    

                    _________________________________
      

                    David
      S.
      McCready

    

     

                    With
      respect to
      Section 2C only, 

     

                    PLY
      GEM INVESTMENT
      HOLDINGS, INC.

     

                    By:_________________________________

                    Title:

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