Document:

Long-Term Stock Incentive Plan

 Exhibit 10.3 
 SEMTECH CORPORATION 
 LONG-TERM STOCK INCENTIVE PLAN 
 (As Amended and Restated) 
 1. THE PLAN 
 (a) Purpose. The purpose of this Long-Term Stock Incentive Plan (the “Plan”) is to promote the longer-term financial success of Semtech
Corporation (the “Company”) by providing a means to attract, retain and award individuals who can and do contribute to such success. By using stock-based compensation, the recipients of awards under the Plan will further identify their
interests with those of the Company’s stockholders. 
 (b) Effective Date. To serve this purpose, the Plan will become effective upon
its approval by the affirmative vote of a majority of the shares present or represented by proxy at the Company’s 1998 Annual Meeting of Stockholders. 
 2. ADMINISTRATION 
 (a) Committee. The Plan shall be administered by a Committee, appointed by the Board of Directors of the
Company. So long as the Company’s common stock, par value $.01 per share (“Common Stock”) remain registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 16 Participants may
receive awards, any committee authorized by the Board to administer the Plan shall be comprised solely of two or more directors of the Company who are Non-Employee Directors within the meaning of Rule 16b-3(b)(3)(i) promulgated under the Exchange
Act. Notwithstanding the foregoing, the Board of Directors of the Company (the “Board”) may assume, at its sole discretion, administration of the Plan. The administrator of the Plan, whether a committee of the Board or the full Board, is
referred to herein as the “Plan Administrator.” 
 (b) Powers and Authority. The Plan Administrator’s powers and authority
include, but are not limited to, selecting individuals who are (1) employees of the Company or any subsidiary of the Company or other entity in which the Company has a significant equity or other interest as determined by the Plan
Administrator, or (2) members of the Board; determining the types and terms and conditions of all awards granted, including performance and other earnout and/or vesting contingencies; permitting transferability of awards to third parties;
interpreting the Plan’s provisions; and administering the Plan in a manner that is consistent with its purpose. 
 (c) Award Prices. For
Plan purposes, all stock options and stock appreciation rights shall have an exercise price which shall reflect the closing market price of a share of Common Stock, on the date as determined by the Plan Administrator, or if the Common Stock is not
traded on such date, the closing market price on the next succeeding business day (next day on which such Common Stock is traded). The applicable date (date determined by the Plan administrator) shall be the date on which the award is granted.

 3. SHARES SUBJECT TO THE PLAN 
 (a) Maximum
Shares Available for Delivery. Subject to Section 3(c), the maximum number of shares of Common Stock that may be delivered to participants 

  

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and their beneficiaries under the Plan shall be equal to the sum of (i) 2,000,000 shares of Common Stock; (ii) any shares of Common Stock available for
future awards under the Company’s 1994 Long-Term Stock Incentive Plan as of the effective date of this Plan; (iii) any shares of Common Stock available for future awards under the Company’s 1994 Non-Employee Directors Stock Option
Plan as of the effective date of this Plan; (iv) any shares of Common Stock that are represented by awards granted under any prior plan of the Company, which are forfeited, expire or are canceled without the delivery of shares of Common Stock
or which result in the forfeiture of shares of Common Stock back to the Company; and (v) up to 2,000,000 additional shares of Common Stock, if authorized by the Board, which are reacquired in the open market or in a private transaction after
the effective date of this Plan. Collectively the shares of Common Stock subject to this Plan are referred to herein as “Shares.” In addition, any Shares granted under the Plan which are forfeited back to the Company because of the failure
to meet an award contingency or condition shall again be available for delivery pursuant to new awards granted under the Plan. Any Shares covered by an award (or portion of an award) granted under the Plan, which is forfeited or canceled, expires or
is settled in cash, shall be deemed not to have been delivered for purposes of determining the maximum number of Shares available for delivery under the Plan. Likewise, if any stock option is exercised by tendering Shares, either actually or by
attestation, to the Company as full or partial payment in connection with the exercise of a stock option under this Plan or any prior plan of the Company, only the number of Shares issued net of the Shares tendered shall be deemed delivered for
purposes of determining the maximum number of Shares available for delivery under the Plan. Further, Shares issued under the Plan through the settlement, assumption or substitution of outstanding awards or obligations to grant future awards as a
condition of the Company acquiring another entity shall not reduce the maximum number of Shares available for delivery under the Plan. 
 (b)
Other Plan Limits. Subject to Section 3(c), the following additional maximums are imposed under the Plan. The maximum number of Shares that may be covered by stock options intended to comply with Section 422 of the Internal Revenue Code of
1986, as amended (the “Code”), (“Incentive Stock Options”) shall be 2,000,000. The maximum number of Shares that may be issued in conjunction with awards granted pursuant to Section 4(d) shall be 600,000 plus up to an
additional 600,000 to the extent that such Shares are reacquired by the Company pursuant to Section 3(a). The maximum number of Shares that may be covered by awards granted to any one individual pursuant to Sections 4(b) and 4(c) shall be
500,000 during any consecutive three calendar years. The maximum payment that can be made for awards granted to any one individual pursuant to Sections 4(d) and 4(e) shall be $2,500,000 for any single or combined performance goals established for a
specified performance period. If a payment under Sections 4(d) or 4(e) is made in Shares, the value of such Shares for determining this maximum individual payment amount will be the closing price of a Share on the first day of the applicable
performance period. A specified performance period for purposes of this performance goal payment limit shall not exceed a sixty (60) consecutive month period. 
 (c) Payment Shares. Subject to the overall limitation on the number of Shares that may be delivered under the Plan, the Plan Administrator may use available Shares as the form of payment for compensation, grants or
rights earned or due under any other compensation plans or arrangements of the Company, including the plan of any entity acquired by the Company. 
  

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 (d) Adjustments for Corporate Transactions. The Plan Administrator may determine that: 
 (i) In the event that the outstanding shares of Common Stock of the Company are changed into or exchanged for a different number or kind of shares or
other securities of the Company by reason of any recapitalization, reclassification, stock split, stock dividend, combination or subdivision, appropriate adjustment shall be made in the number of shares available under the Plan and under any stock
awards granted under the Plan. Such adjustment to outstanding stock awards shall be made without change in the total price applicable to the unexercised portion of such awards, and a corresponding adjustment in the applicable option price per share
shall be made. No such adjustment shall be made which would, within the meaning of any applicable provisions of the Code, constitute a modification, extension or renewal of any award or a grant of additional benefits to the holder of an award.

 (ii) In case (A) the Company is merged or consolidated with another corporation or other entity and the Company is not the surviving
corporation, (B) all or substantially all of the assets or more than 50% of the outstanding voting stock of the Company is acquired by any other corporation or other entity or (C) of a reorganization or liquidation of the Company, the Plan
Administrator or the governing body of any entity assuming the obligations of the Company, shall, as to outstanding awards, either (x) make appropriate provision for the protection of any such outstanding awards by the substitution on an
equitable basis of appropriate stock of the Company, or of the merged, consolidated or otherwise reorganized corporation which will be issuable in respect of the shares of Common Stock of the Company, provided that no additional benefits shall be
conferred upon participants as a result of such substitution, and the excess of the aggregate fair market value of the shares subject to the awards immediately after such substitution over the purchase price thereof is not more than the excess of
the aggregate fair market value of the shares subject to the award immediately before such substitution over the purchase price thereof, or (y) upon written notice to the participants, provide that all unexercised awards must be exercised within a
specified number of days of the date of such notice or they will be terminated. In any such case, the Plan Administrator may, in its discretion, accelerate the exercise dates of outstanding awards; provided, however, that subsections
(iii) and (iv) of this paragraph (d) shall govern acceleration of awards with respect to the events described therein. 
 (iii) In case of (A) any consolidation or merger involving the Company if the shareholders of the Company immediately before such merger or consolidation do not own, directly or indirectly, immediately following such merger or
consolidation, more than fifty percent (50%) of the combined voting power of the outstanding voting securities or interests of the corporation (or its parent corporation) or other entity resulting from such merger or consolidation in
substantially the same proportion as their ownership of the shares of Common Stock immediately before such merger or consolidation; (B) any sale, lease, license, exchange or other transfer (in one transaction or a series of related
transactions) of all, or substantially all, of the business and/or assets of the Company or assets representing over 50% of the operating revenue of the Company; or (C) any person (as such term is used in Sections 13(d) and 14(d) of the
Exchange Act who is not, on April 16, 1998, a “controlling person” (as defined in Rule 405 promulgated under the Securities Act of 1933, as amended) (a “Controlling Person”) of the Company shall become (x) the
beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of over 50% of the Company’s outstanding Common Stock or the combined voting power of the Company’s then outstanding voting securities entitled to vote
generally or 

  

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(y) a Controlling Person of the Company, all outstanding awards, regardless of the date of grant of such awards, shall immediately become exercisable with
respect to 100% of the Shares subject to such awards. This paragraph 3(d)(iii) shall apply only to awards granted prior to October 3, 2001 and to awards granted on or after October 3, 2001 to participants who are non-employee directors on
the date of grant. 
 (iv) In the event of the termination without cause of a participant within one year following a Change in Control (as
defined below) or a Constructive Termination (as defined below) of a participant, all outstanding awards, regardless of the date of grant of such awards, shall immediately become exercisable with respect to 100% of the Shares subject to such awards.

 For purposes of this paragraph 3(d)(iv), “Constructive Termination” shall mean participant’s voluntary termination within one year
following participant’s knowledge of the occurrence of any of the following: (A) a reduction in participant’s base salary after a “Change in Control” (as defined below) from that in effect immediately prior to the Change in
Control; or (B) a material or substantial reduction or change in job duties, responsibilities and requirements after a Change in Control from participant’s prior duties, responsibilities and requirements immediately prior to the Change in
Control. Notwithstanding the foregoing, a termination shall not be treated as a Constructive Termination if the participant shall have specifically consented in writing to the occurrence of the event giving rise to the claim of Constructive
Termination. 
 For purposes of this paragraph 3(d)(iv), “Change in Control” shall mean the occurrence of any of the following events with respect
to the Company: (A) any consolidation or merger involving the Company if the shareholders of the Company immediately before such merger or consolidation do not own, directly or indirectly, immediately following such merger or consolidation,
more than fifty percent (50%) of the combined voting power of the outstanding voting securities or interests of the corporation (or its parent corporation) or other entity resulting from such merger or consolidation in substantially the same
proportion as their ownership of the shares of Common Stock immediately before such merger or consolidation; (B) any sale, lease, license, exchange or other transfer (in one transaction or a series of related transactions) of all, or
substantially all, of the business and/or assets of the Company or assets representing over 50% of the operating revenue of the Company; or (C) any person (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) who is not, on
October 3, 2001, a Controlling Person of the Company shall become (x) the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of over 50% of the Company’s outstanding Common Stock or the combined
voting power of the Company’s then outstanding voting securities entitled to vote generally or (y) a Controlling Person of the Company. 
 This
paragraph 3(d)(iv) shall apply only to awards granted on or after October 3, 2001 to participants who on the date of grant are other than non-employee directors. 
 4. TYPES OF AWARDS 
 (a) General. An award may be granted singularly, in combination with another award(s) or
in tandem whereby exercise or vesting of one award held by a participant cancels another award held by the participant. Any award granted under the Plan shall be evidenced by a written agreement in form and substance satisfactory to the Plan
Administrator. These agreements must conform to the Plan. The Plan Administrator may include such terms, consistent with the Plan, 
  

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as it determines in its discretion. Subject to Section 2(c), an award may be granted as an alternative to or replacement of an existing award under the
Plan or under any other compensation plans or arrangements of the Company, including the plan of any entity acquired by the Company. The types of awards that may be granted under the Plan include: 
 (b) Stock Option. A stock option represents a right to purchase a specified number of Shares during a specified period at a price per Share which is no
less than that required by Section 2(c). A stock option may be in the form of an incentive stock option or in a form which does not qualify for favorable federal tax treatment. The Shares covered by a stock option may be purchased by means of a
cash payment or such other means as the Plan Administrator may from time to time permit, including without limitation (i) tendering (either actually or by attestation) Shares valued using the market price at the time of exercise, (ii)
authorizing a third party to sell Shares (or a sufficient portion thereof) acquired upon exercise of a stock option and to remit to the Company a sufficient portion of the sale proceeds to pay for all the Shares acquired through such exercise and
any tax withholding obligations resulting from such exercise; (iii) crediting toward the purchase price amounts from individuals’ deferred compensation account balances, including accrued dividend equivalent balances; or (iv) any
combination of the above. (c) Stock Appreciation Right. A stock appreciation right is a right to receive a payment in cash, Shares or a combination, equal to the excess of the aggregate market price at time of exercise of a specified number of
Shares over the aggregate exercise price of the stock appreciation rights being exercised. 
 (d) Stock Award. A stock award is a grant of
Shares or of a right to receive Shares (or their cash equivalent or a combination of both) in the future. Each stock award shall be subject to such conditions, restrictions and contingencies as the Plan Administrator shall determine. These may
include continuous service and/or the achievement of performance goals. The performance goals that may be used by the Plan Administrator for such awards shall consist of cash generation targets, profit, revenue and market share targets,
profitability targets as measured by return ratios, and shareholder returns. The Plan Administrator may designate a single goal criterion or multiple goal criteria for performance measurement purposes with the measurement based on absolute Company
or business unit performances and/or on performance as compared with that of other publicly-traded companies. 
 (e) Cash Award. A cash award
is a right denominated in cash or cash units to receive a payment, which may be in the form of cash, Shares or a combination, based on the attainment of pre-established performance goals and such other conditions, restrictions and contingencies as
the Plan Administrator shall determine. The performance goals that may be used by the Plan Administrator for such awards shall consist of cash generation targets, profits, revenue and market share targets, profitability targets as measured by return
ratios and shareholder returns. The Plan Administrator may designate a single goal criterion or multiple goal criteria for performance measurement purposes with the measurement based on absolute Company or business unit performance and/or on
performance as compared with that of other publicly-traded companies. 
 (f) Special Provisions for Incentive Stock Options. Stock Options
granted under the Plan which are intended to be Incentive Stock Options shall be specifically designated as Incentive Stock Options and shall be subject to the following additional terms and conditions: 
 (i) Dollar Limitation. The aggregate fair market value (determined as of the 

  

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respective date or dates of the grant) of the Shares with respect to which Incentive Stock Options granted to any employee under the Plan (and under any
other incentive stock option plans of the Company and any parent corporation and subsidiary) are exercisable for the first time shall not exceed $100,000 in any one calendar year. In the event that Section 422 of the Code is amended to alter
the limitation set forth therein so that following such amendment such limitation shall differ from the limitation set forth in this paragraph (i), the limitation of this paragraph (i) shall be automatically adjusted accordingly. 
 (ii) 10% Stockholder. If any employee to whom an Incentive Stock Option is to be granted under the Plan is at the time of the grant of such option the
owner of stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or of any parent corporation or any subsidiary, then the following special provisions shall be applicable to the Incentive Stock Option
granted to such individual: 
 (A) The purchase price per Share subject to such Incentive Stock Options shall not be less than 110% of the
fair market value of one share of Common Stock at the time of grant; and 
 (B) The option exercise period shall not exceed five years from
the date of grant. 
 (iii) Section 422. All Incentive Stock Options shall otherwise comply with the provisions of Section 422 of
the Code, as the same shall be amended from time to time. 
 5. AWARD SETTLEMENT AND PAYMENTS 
 (a) Dividends and Dividend Equivalents. An award may contain the right to receive dividends or dividend equivalent payments which may be paid currently
credited to a participant’s account. Any such crediting of dividends or dividend equivalents or reinvestment in Shares may be subject to such conditions, restrictions and contingencies as the Plan Administrator shall establish, including the
reinvestment of such credited amounts in Share equivalents. 
 (b) Payments. Awards may be settled through cash payments, the delivery of
Shares, the granting of awards or combination thereof as the Plan Administrator shall determine. Any award settlement, including payment deferrals, may be subject to such conditions, restrictions and contingencies as the Plan Administrator shall
determine. The Plan Administrator may permit or require the deferral of any award payment, subject to such rules and procedures as it may establish, which may include provisions for the payment or crediting of interest, or dividend equivalents,
including converting such credits into deferred Share equivalents. 
 6. PLAN AMENDMENT AND TERMINATION 
 (a) Amendments. The Company’s Board of Directors may amend this Plan as it deems necessary and appropriate to better achieve the Plan’s purpose;
provided however, that any amendment to the Plan which would require approval of the Company’s stockholders under applicable law, or under the rules or guidelines of any exchange or automatic quotation system on which the Shares are traded or
included, then, in any of such events, such stockholder approval of any such amendment shall also be obtained. 
 (b) Plan Suspensions and
Termination. The Board of Directors of the Company 

  

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may suspend or terminate this Plan at any time. Any such suspension or termination shall not of itself impair any outstanding award granted under the Plan or
the applicable participant’s rights regarding such award. If not earlier terminated, this Plan shall terminate upon the tenth anniversary of the effective date of the Plan. Unless (i)an earlier termination is specified or (ii) a later
termination is specified with respect to awards granted to employees outside of the United States, awards granted under the Plan shall terminate upon the tenth anniversary of their date of grant. 
 7. MISCELLANEOUS 
 (a) No Individual Rights. No person shall
have any claim or right to be granted an award under the Plan. Neither the Plan nor any action taken hereunder shall be construed as giving any employee or other person any right to continue to be employed by or to perform services for the Company,
any subsidiary or related entity. The right to terminate the employment of or performance of 
 services by any Plan participant at any time and for any
reason is specifically reserved to the employing entity. 
 (b) Binding Arbitration. Any dispute or disagreement regarding participation
and/or an award recipient’s rights under the Plan shall be settled solely by binding arbitration in accordance with the applicable rules of the American Arbitration Association. 
 (c) Unfunded Plan. The Plan shall be unfunded and shall not create (or be construed to create) a trust or a separate fund or funds. The Plan shall not
establish any fiduciary relationship between the Company and any participant or beneficiary of a participant. To the extent any person holds any obligation of the Company by virtue of an award granted under the Plan, such obligation shall merely
constitute a general unsecured liability of the Company and accordingly shall not confer upon such person any right, title or interest in any assets of the Company. 
 (d) Other Benefit and Compensation Programs. Unless otherwise specifically determined by the Plan Administrator, settlements of awards received by participants under the Plan shall not be deemed a part of a
participant’s regular, recurring compensation for purposes of calculating payments or benefits from any Company benefit plan or severance program. Further, the Company may adopt other compensation programs, plans or arrangements as it deems
appropriate. 
 (e) No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Plan or any award, and the Plan
Administrator shall determine whether cash shall be paid or transferred in lieu of any fractional Shares, or whether such fractional Shares or any rights thereto shall be canceled. 
 (f) Special Provision Regarding Termination of Directorship. If a participant that is a member of the Board terminates his or her services as a member of
the Board by reason of death, disability or retirement (as defined by the Plan Administrator in the written agreement evidencing the award to such Board member), an award granted hereunder held by such person shall be automatically accelerated with
respect to its exercisability and shall become immediately exercisable in full for the remaining number of Shares subject to such award for three years after the date of such termination or until the expiration of the stated term of such award,
whichever period is shorter, and thereafter such award shall terminate; provided, however, that if such person dies or suffers a disability during said three-year period after retirement such award shall 

  

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remain exercisable in full for a period of three years after the date of such death or disability or until the expiration of the stated term of such award,
whichever period is shorter, and thereafter such award shall terminate. If a participant that is a member of the Board terminates his or her services as a member of the Board for any other reason, any portion of an award granted hereunder held by
such person which is not then exercisable shall terminate and any portion of such award which is then exercisable may be exercised for three months after the date of such termination or until the expiration of the stated term of such award,
whichever period is shorter, and thereafter such award shall terminate; provided, however, that if such person dies or suffers a disability during such three month period, such award may be exercised for a period of one year after the date of such
person’s death or disability or until the expiration of the stated term of such award, whichever period is shorter, in accordance with its terms, but only to the extent exercisable on the date of such person’s death or disability.

 10-26-06 
  

 8 of 8Forms of Stock Option Agreements outstanding under the 2004 Stock Option Plan.

 Exhibit 10.37 
 NON-QUALIFIED STOCK OPTION AGREEMENT 
 OF 
 GOODMAN GLOBAL, INC. 
 THIS
AGREEMENT (the “Agreement”) is entered into as of December 23, 2004 (the “Grant Date”) by and between Goodman Global, Inc., a Delaware corporation (the “Company”) and
                        , an employee of the Company (or one of its Subsidiaries), hereinafter referred to as the
“Optionee.” 
 WHEREAS, the Company wishes to afford the Optionee the opportunity to purchase shares of its common stock,
par value $0.01 per share (“Common Stock”); and 
 WHEREAS, the Company wishes to carry out the 2004 Stock Option Plan of
Goodman Global, Inc. (as it may be amended from time to time, the “Plan”), the terms of which are hereby incorporated by reference and made a part of this Agreement; and 
 WHEREAS, the Committee appointed to administer the Plan pursuant to Section 6.1 of the Plan (the “Committee”) has determined that
it would be to the advantage and best interest of the Company and its shareholders to grant the Non-Qualified Stock Option provided for herein to the Optionee as an inducement to enter into or remain in the service of the Company (or one of its
Subsidiaries) and as an incentive for increased efforts during such service, and has advised the Company thereof and instructed the undersigned officers to issue said Option; 
 NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, receipt of which is hereby
acknowledged, the parties hereto do hereby agree as follows: 
 ARTICLE I. 
 DEFINITIONS 
 Whenever the following terms are used in this Agreement,
they shall have the meaning specified below unless the context clearly indicates to the contrary. Capitalized terms used in this Agreement and not defined below shall have the meaning given such terms in the Plan. The singular pronoun shall include
the plural, where the context so indicates. 
 Section 1.1    “Affiliate” shall mean, with
respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with, such Person where “control” shall have the meaning given such term under Rule 405 of the Securities Act. 

Section 1.2    “Average Invested Capital” for a given year means the quotient of (x) sum of the
Invested Capital of the Company as of the last day of each of the thirteen calendar months commencing with December of the year immediately prior to such year and ending with December of the year in question divided by (y) 13. 
  

 Section 1.3    “Cause” shall mean the Company or a Subsidiary
having “Cause” to terminate the Optionee’s employment, as defined in any employment, severance or other written agreement between the Optionee and the Company or a Subsidiary; provided, that in the absence of an employment,
severance or other written agreement containing such a definition, the Company or a Subsidiary shall have “Cause” to terminate the Optionee’s employment upon: (a) the Optionee’s willful failure to substantially perform his
duties as set forth in any employment or severance agreement or otherwise (other than any such failure resulting from the Optionee’s Disability) which is not remedied within 30 days after receipt of written notice from the Company specifying
such failure; (b) the Optionee’s willful failure to carry out, or comply with, in any material respect any lawful and reasonable directive of the Board or his superiors, which is not remedied within 30 days after receipt of written notice
from the Company specifying such failure; (c) the Optionee’s commission at any time of any act or omission that results in, or that may reasonably be expected to result in, a conviction, plea of no contest or imposition of unadjudicated
probation for any felony or crime involving moral turpitude; (d) the Optionee’s unlawful use (including being under the influence) or possession of illegal drugs on the Company’s premises or while performing the Optionee’s duties
and responsibilities; or (e) the Optionee’s commission at any time of any act of fraud, embezzlement, misappropriation, material misconduct, or breach of fiduciary duty against the Company (or any predecessor thereto or successor thereof).

 Section 1.4    “Change in Control” shall mean the first to occur of the following events:

 (a) The consummation of (i) a direct or indirect sale or other disposition of all or substantially all the assets of
the Company, or (ii) a change in ownership or control of the Company effected through a transaction or series of transactions (other than an offering of common stock of the Company, par value $0.01 per share, by the Company (of either treasury
shares or newly issued shares) to the general public through a registration statement filed with the Securities and Exchange Commission) (each, a “Business Combination”) whereby any “person” or related “group” of
“persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the Exchange Act) (other than the Company, any of its subsidiaries, an employee benefit plan maintained by the Company or any of its subsidiaries, the Principal
Stockholder or any “person” that, prior to such transaction, directly or indirectly controls, is controlled by, or is under common control with, the Company or the Principal Stockholder) (collectively, a “Business Combination
Person”) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company possessing more than (A) fifty percent (50%) of the total combined voting power
of the Company’s securities outstanding immediately after such acquisition, or (B) an amount greater than the amount owned or controlled, directly or indirectly, by the Principal Stockholder of the total combined voting power of the
Company’s securities outstanding immediately after such acquisition; provided that, notwithstanding the foregoing, a Change in Control shall not be deemed to occur pursuant to this Section 1.4 unless a majority of the members of the
board of directors (or similar governing body) of the entity resulting from such Business Combination are employees of the Business Combination Person; or 
 (b) A majority of the members of the Board cease to be Continuing Directors; or 
  

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 (c) Approval by the shareholders of the Company of a complete liquidation or dissolution
of the Company. 
 Section 1.5    “Committee” shall have the meaning set forth in the Recitals
hereto. 
 Section 1.6    “Common Stock” shall have the meaning set forth in the Recitals hereto.

 Section 1.7    “Company” shall have the meaning set forth in the Recitals hereto. 

Section 1.8    “Continuing Director” means any person who either (i) was a member of the Board as of
the date of this Agreement; or (ii) was nominated for election or elected to the Board with the approval of a majority of the Continuing Directors who were members of the Board at the time of such nomination or election. 
 Section 1.9    “Disability” shall mean “Disability” as defined in any employment or severance
agreement between the Optionee and the Company or a Subsidiary; provided, that in the absence of an employment or severance agreement containing such a definition, “Disability” shall mean the Optionee’s inability to perform,
with or without reasonable accommodation, the essential functions of the Optionee’s position for a total of three months during any six month period as a result of incapacity due to mental or physical illness as determined by a physician
selected by the Company or its insurers and acceptable to the Optionee or the Optionee’s legal representative, such agreement as to acceptability not to be unreasonably withheld or delayed. 
 Section 1.10    “EBITDA” for a given period shall mean the sum of (a) the consolidated net income before
interest, taxes, depreciation, amortization, and extraordinary items and (b) any management or similar fees charged to the Company by any Principal Stockholder (but only to the extent such fees are deducted from the net income described in the
preceding subsection (a)), all as reflected on the Company’s audited consolidated financial statements for such period; provided, however, the impact of purchase accounting adjustments on inventory and related cost of sales as a result of the
consummation of the transactions contemplated by that certain Asset Purchase Agreement by and among Goodman Global Holdings, Inc., a Texas corporation (“Goodman (Texas)”), the Company, and Goodman Global Holdings, Inc. (f/k/a Frio,
Inc.), a Delaware corporation, dated as of November 18, 2004, providing for the Company’s purchase of substantially all the assets of Goodman (Texas) shall be excluded in determining EBITDA. Consolidated net income shall be determined in
accordance with generally accepted accounting principles except that gains or losses from extraordinary, unusual or non-recurring items may be excluded in the discretion of the Committee. 
 Section 1.11    “EBITDA Target” for a given period shall be as set forth in Exhibit A of this Agreement,
subject to the provisions of Section 4.6. 
 Section 1.12    “Good Reason” shall mean the
Optionee having “Good Reason” to terminate his employment, as defined in any employment, severance or other written agreement between the Optionee and the Company or an Affiliate; provided, that in the absence of an employment, severance
or other written agreement containing such a definition, the Optionee shall have “Good Reason” to terminate the his employment upon occurrence of any of the following: (i) failure of the Company or its shareholders to continue the
Optionee in that position, or any other substantially similar position, as he holds as of the effective date of this 

  

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Agreement; (ii) a material diminution in the nature or scope of the Optionee’s responsibilities, duties or authority; (iii) failure of the
Company to make any material payment or provide any material benefit under any employment or severance agreement; or (iv) the Company’s material breach of any employment or severance agreement or any Option agreement; provided,
however, that notwithstanding the foregoing the Optionee may not resign his employment for Good Reason unless: (A) the Optionee provides the Company with at least 30 days prior written notice of his intent to resign for Good Reason (which
notice is provided not later than the 30th day following the occurrence of the event constituting Good Reason) and
(B) the Company has not remedied the alleged
 violation(s) within the 30-day period. 
 Section
1.13    “Grant Date” shall have the meaning set forth in the Recitals hereto. 
 Section
1.14    “Invested Capital” means as of a given date, (a) the consolidated total assets of the Company minus (b) the sum of (i) cash, (ii) identifiable and unidentifiable intangibles
including goodwill, (iii) deferred income tax assets, (iv) deferred financing costs, (v) trade accounts payable and (vi) current accrued expenses including warranty expenses of the Company on a consolidated basis, all as
reflected on the Company’s balance sheet as of such date. Invested Capital shall be determined in accordance with generally accepted accounting principles provided that extraordinary, unusual or non-recurring items may be excluded in the
discretion of the Committee. 
 Section 1.15    “Management Stockholders Agreement” shall mean
that certain Stockholders Agreement dated as of December 23, 2004, by and among the Company, Goodman Global Holdings, Inc. (f/k/a Frio, Inc.), a Delaware corporation, Frio Holdings, LLC, a Delaware limited liability company, and certain other
stockholders of the Company who are signatories thereto. 
 Section 1.16    “Option” shall mean
the Non-Qualified Stock Option to purchase Common Stock granted under this Agreement. 
 Section
1.17    “Plan” shall have the meaning set forth in the Recitals hereto. 
 Section
1.18    “Person” shall mean an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, governmental authority or
other entity of whatever nature. 
 Section 1.19    “Preferred Stock” shall mean the
Company’s 9.5% Series A Cumulative Senior Redeemable Exchangeable Preferred Stock, par value $.01 per share, or if the Preferred Stock is no longer outstanding the class of capital stock issued in exchange for, or in lieu of Preferred Stock.

 Section 1.20    “Principal Stockholders” shall mean Frio Holdings, LLC, a Delaware limited
liability company, and its Affiliates. 
 Section 1.21    “Return on Invested Capital” for a
given year means the quotient of (x) the consolidated net income of the Company for such year as reflected on the Company’s audited financial statements for such year divided by (y) Average Invested Capital for such year. Consolidated
net income shall be determined in accordance with generally accepted accounting principles except that gains or losses from extraordinary, unusual or non-recurring items may be excluded in the discretion of the Committee. 
  

 4 

 Section 1.22    “Return on Invested Capital Threshold” for a
given period shall be set forth on Exhibit A of this Agreement, subject to the provisions of Section 4.6. 
 Section
1.23    “Termination of Employment” shall mean the time when the employee-employer relationship between an Optionee and the Company (and all of its subsidiaries or Affiliates) is terminated for any reason,
with or without cause, including, but not by way of limitation, a termination by resignation, discharge, death or retirement, but excluding a termination where there is a simultaneous reemployment by the Company (or one of its subsidiaries or
Affiliates). For the avoidance of doubt, the parties acknowledge and agree that the last sentence of Section 1.30 of the Plan shall not apply with respect to the Option granted hereunder. 
 ARTICLE II. 
 GRANT OF OPTION 
 Section 2.1    Grant of Option. In consideration of the Optionee’s agreement to enter into or remain in the employ
of the Company or one of its Subsidiaries, and for other good and valuable consideration, as of the Grant Date, the Company irrevocably grants to the Optionee the Option to purchase any part or all of an aggregate of
             shares of Common Stock upon the terms and conditions set forth in the Plan and this Agreement; provided, however, that in the event any shares of Common Stock, or any
rights, warrants, options or other securities directly or indirectly exchangeable, convertible or exercisable to purchase Common Stock, are issued in exchange for, in conversion of or as a dividend, interest or other distribution on account of the
Preferred Stock (or any Holdings Notes, as such term is defined in the certificate of designation with respect to the Preferred Stock) (a “Preferred Issuance Event”) the number of shares of Common Stock issuable upon the exercise of
this Option shall be adjusted ratably such that the number of shares of Common Stock issuable upon exercise constitutes the same percentage of the shares of Common Stock outstanding on a Fully Diluted Basis (as defined below) after giving effect to
such adjustment and the Preferred Issuance Event as the percentage which the shares of Common Stock issuable upon the exercise of this Option constituted of the shares of Common Stock outstanding on a Fully Diluted Basis immediately prior to the
Preferred Issuance Event. For the purposes hereof, the term “Fully Diluted Basis” shall mean all shares of Common Stock outstanding or issuable upon the exercise, conversion or exchange of all then outstanding securities, option,
warrants or rights which are, directly or indirectly, exercisable, convertible or exchangeable for Common Stock plus any and all shares reserved pursuant to the Plan, and any other stock option, stock incentive or similar plan, which are not then
the subject of outstanding options or other awards. 
  

 5 

 Section 2.2    Option Subject to Plan. The Option granted hereunder is
subject to the terms and provisions of the Plan, including without limitation, Article V and Sections 7.1, 7.2 and 7.3 thereof. 
 Section
2.3    Option Price. The purchase price of the shares of Common Stock covered by the Option shall be $40 per share (without commission or other charge). 
 ARTICLE III. 
 EXERCISABILITY 
 Section 3.1    Commencement of Exercisability 
 (a) Subject to subsection (e) and Section 3.3, 50% of the Option shall become exercisable in four equal and cumulative
installments provided that the Optionee remains continuously employed in active service by the Company from the Grant Date through such date as follows: 
 (i) The first installment shall consist of 12.5% of the shares covered by the Option and shall become exercisable on December 31, 2005; 
 (ii) The second installment shall consist of 12.5% of the shares covered by the Option and shall become exercisable on December 31,
2006; 
 (iii) The third installment shall consist of 12.5% of the shares covered by the Option and shall become exercisable
on December 31, 2007; and 
 (iv) The fourth installment shall consist of 12.5% of the shares covered by the Option and
shall become exercisable on December 31, 2008. 
 (b) Subject to subsections (c) and (e) and Section 3.3,
50% of the shares subject to the Option shall become fully exercisable on the eighth anniversary of the Grant Date provided that the Optionee remains continuously employed in active service by the Company from the Grant Date through such date.

 (c) Notwithstanding subsection (b) but subject to subsections (e) and (f) and Section 3.3: 

(i) An installment consisting of 10% of the shares covered by the Option shall become exercisable on December 31 of each calendar
year 2005 through 2009 if the EBITDA as of such December 31 equals or exceeds the applicable EBITDA Target for such year and the Return on Invested Capital Threshold for such year is met; provided that such installment shall not be exercisable
until the EBITDA and Return on Invested Capital as of such December 31, have been determined (in all events to occur not more than 80 days following such December 31); provided, that in the event that such targets have been met for a
period, the applicable installments shall be deemed to be exercisable notwithstanding that the Optionee had a Termination of Employment (other than by the Company for Cause or by the Optionee without Good Reason) after such December 31, but
prior to the determination of EBITDA and Return on Invested Capital. 
  

 6 

 (ii) If the EBITDA as of the end of any calendar year 2005 through 2008 is less than the
applicable EBITDA Target with respect to such year (any such year a “Missed Year”), that portion of the Option that was subject to accelerated exercisability pursuant to Section 3.1(c)(i) with respect to the Missed Year (and
which did not become exercisable with respect to such Missed Year) shall become exercisable on December 31 of the calendar year immediately following the Missed Year, provided that the EBITDA as of such immediately following December 31
equals or exceeds the applicable EBITDA Target for the calendar year immediately following the Missed Year; provided that such installment shall not be exercisable until the EBITDA and Return on Invested Capital as of such December 31, have
been determined (in all events to occur not more than 80 days following such December 31); provided, that in the event that such targets have been met for a period, the applicable installments shall be deemed to be exercisable notwithstanding
that the Optionee had a Termination of Employment (other than by the Company for Cause or by the Optionee without Good Reason) after such December 31, but prior to the determination of EBITDA and Return on Invested Capital. 
 (d) The Committee shall make the determination as to whether the respective EBITDA
Targets have been met, and shall determine the extent, if any, to which the Option has become exercisable, on any such date after the applicable date of determination as the Committee in its sole discretion shall reasonably determine in good faith;
provided, however, that with respect to each calendar year such date shall not be later than the 80th day
following December 31 of such calendar year and shall provide prompt written notice to the Optionee of such determination. 
 (e) Notwithstanding the foregoing provisions of this Section 3.1, but subject to Section 3.3, (i) any portion of the Option described in Section 3.1(a) that has not theretofore become vested and exercisable shall become
fully vested and exercisable immediately prior to the effective date of a Change in Control and (ii) the Option shall become vested and exercisable with respect to all shares that, as of the date of a Change in Control (A) are eligible to
become vested pursuant to Section 3.1(c)(i) above and (B) if the Change in Control occurs following July 1 of any year and the Committee determines in good faith that absent such Change in Control the applicable EBITDA Target would be
met with respect to such year, are eligible to become vested pursuant to Section 3.1(c)(ii) above (but the Option shall not become vested with respect to any shares that are eligible to become vested only upon the eighth anniversary of the date
of grant pursuant to Section 3.1(b) above). 
 (f) Except as set forth in Section 3.1(c), no portion of the Option
which is unexercisable at Termination of Employment shall thereafter become exercisable. 
  

 7 

 Section 3.2    Duration of Exercisability. The installments provided
for in Section 3.1 are cumulative. Each such installment which becomes exercisable pursuant to Section 3.1 shall remain exercisable until it becomes unexercisable. 
 Section 3.3    Expiration of Option. The Option may not be exercised to any extent by anyone after the first to occur
of the following events: 
 (a) The tenth anniversary of the Grant Date; or 
 (b) Except as the Committee may otherwise approve, the 90th day following the date of the Optionee’s Termination of Employment for any reason other than (i) termination by the
Company for Cause or due to Disability; or (ii) the Optionee’s death; or 
 (c) Except as the Committee may
otherwise approve, the date of the Optionee’s Termination of Employment by reason of termination by the Company for Cause; or 
 (d) In the case of a Termination of Employment by the Company due to Disability or as a result of the Optionee’s death, the expiration of 12 months from the date of the Optionee’s Termination of Employment; or 
 (e) Unless otherwise determined by the Committee, the occurrence of a Change in Control, provided that any portion of the Option which is
or becomes exercisable as of the occurrence of the Change in Control may be exercised concurrently therewith. 
 Section
3.4    Partial Exercise. Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be exercised in whole or in part at any time prior to the time when the Option or portion thereof
becomes unexercisable; provided, however, that each partial exercise shall be for not less than 100 shares and shall be for whole shares only. 
 Section 3.5    Exercise of Option. The exercise of the Option shall be governed by the terms of this Agreement and the terms of the Plan, including, without limitation, the provisions
of Article V of the Plan; provided, however, that notwithstanding Section 5.3 of the Plan, in the event that Optionee’s Termination of Employment is by the Company without Cause or by the Optionee for Good Reason and such
Termination of Employment occurs prior to an Initial Public Offering: (a) any portion of the Option that is exercisable following the date of such Termination of Employment may be exercised by delivery to the Company’s corporate secretary
of full payment for the shares with respect to which the Option is thereby exercised, which payment may be made in the form of (i) cash or personal, certified, or bank cashier check; or (ii) surrender of shares of Common Stock which have
been owned by the Optionee for more than six months duly endorsed for transfer to the Company with a Fair Market Value (solely for these purposes, as determined in accordance with the terms of the Management Stockholders Agreement) on the date of
delivery equal to the aggregate exercise price of the Option or exercised portion thereof; and (b) the payment to the Company of all amounts necessary to satisfy any and all federal, state and local tax withholding requirements arising in
connection with the exercise of the Option, may be made in shares of Common Stock which have been owned by the Optionee for more than six months, enclosed for transfer to the Company with a Fair Market Value (solely for these purposes, as determined
in accordance with the terms of the Management Stockholders Agreement) on the date of delivery equal to the amounts necessary to 

  

 8 

 
satisfy any and all federal, state and local tax withholding requirements arising in connection with the exercise of the Option; and, provided,
further, that, notwithstanding anything to the contrary in Section 5.3 of the Plan, following an Initial Public Offering, the Optionee may (unless the Committee determines that the method of exercise described in this proviso is reasonably
likely to violate any applicable law, rule or regulation) exercise the Option, or any exercisable portion thereof, by delivery to the corporate secretary of notice that the Optionee has placed a market sell order with a broker with respect to shares
of Common Stock then issuable upon exercise of the Option, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Option exercise price. 
 ARTICLE IV. 
 OTHER PROVISIONS

 Section 4.1    Not a Contract of Employment. Nothing in this Agreement or in the Plan shall
confer upon the Optionee any right to continue in the employ of the Company or any of its Subsidiaries or shall interfere with or restrict in any way the rights of the Company or its Subsidiaries, which are hereby expressly reserved, to discharge
the Optionee at any time for any reason whatsoever, with or without Cause, except as may otherwise be provided by any written agreement entered into by and between the Company and the Optionee. 
 Section 4.2    Shares Subject to Plan and Management Stockholders Agreement; Entire Agreement. The Optionee
acknowledges that any shares acquired upon exercise of the Option are subject to the terms of the Plan and the Management Stockholders Agreement. The terms of this Agreement are intended by the parties to be the final expression of their agreement
with respect to the subject matter hereof and may not be contradicted by evidence of any prior or contemporaneous agreement, including, without limitation, that certain Binding Management Compensation Term Sheet by and between the Optionee and the
Company dated as of November 18, 2004. The parties further intend that this Agreement (together with the Plan and the Management Stockholders Agreement) shall constitute the complete and exclusive statement of its terms and that no extrinsic
evidence whatsoever may be introduced in any judicial, administrative, or other legal proceeding to vary the terms of this Agreement. 
 Section 4.3    Construction. This Agreement shall be administered, interpreted and enforced under the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof, or
principles of conflicts of law of any other jurisdiction which could cause the application of the laws of any jurisdiction other than the State of Delaware. 
 Section 4.4    Conformity to Securities Laws. The Optionee acknowledges that the Plan is intended to conform to the extent necessary with all provisions of the Securities Act and the
Exchange Act and any and all regulations and rules promulgated thereunder by the Securities and Exchange Commission, including without limitation Rule 16b-3. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the
Option is granted and may be exercised, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to
such laws, rules and regulations. 
  

 9 

 Section 4.5    Amendment, Suspension and Termination. The Option may be
wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Committee or the Board, provided that, except as provided by Section 7.1 of the Plan, neither the amendment, suspension nor
termination of this Agreement shall, without the consent of the Optionee, alter or impair any rights or obligations under the Option. 
 Section 4.6    Adjustments in EBITDA and Return on Invested Capital Targets. The EBITDA and Return on Invested Capital Targets specified in Exhibit A are based upon certain revenue and expense assumptions
about the future business of the Company as of the date the Option is granted. Accordingly, in the event that, after such date, the Committee determines, in its sole discretion in consultation with the Company’s Chief Executive Officer, that
any acquisition or disposition of any business by the Company or any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property), recapitalization, reclassification, stock split, reverse stock
split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase Common Stock or other securities of the
Company, any unusual or nonrecurring transactions or events affecting the Company, or the financial statements of the Company, or change in applicable laws, regulations, or accounting principles occurs such that an adjustment is determined by the
Committee to be appropriate in order to prevent dilution, diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to the Option, then the Committee shall, in good faith and in such
manner as it may deem equitable, adjust the amounts set forth on Exhibit A to reflect the projected effect of such transaction(s) or event(s) on EBITDA and/or Return on Invested Capital, subject to Section 7.1 of the Plan. 
 Section 4.7    Corporate Events and Other Adjustments. Any and all adjustments made to this Option pursuant to Sections
7.1(a) or 7.1(b) of the Plan or pursuant to Section 4.6 of this Agreement shall be made by the Committee in consultation with the Company’s Chief Executive Officer, and the Committee shall use its good faith best efforts to make any such
adjustment in a manner that it determines is not reasonably likely to (a) dilute or diminish the potential benefits of this Option, (b) decrease the likelihood of the achievement of EBITDA and Return on Invested Capital Targets, or
(c) otherwise materially reduce the value of the Option (all as compared to the facts and circumstances applicable prior to such adjustment and the applicable transaction or event). 
 [signature page follows] 
  

 10 

 IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto. 
  

									
	GOODMAN GLOBAL, INC.
		
	By:	 	  
		 	Name:	 	  
		 	Title:	 	  
		
		 	  
		 	[Optionee]	 		 		 	
		
		 	Residence Address:
		
		 	  
		
		 	  

  

			
		
	Optionee’s Social Security Number:  	  	  

  

 11 

 EXHIBIT A 
 NON-QUALIFIED STOCK OPTION AGREEMENT 
 EBITDA TARGETS AND RETURN ON INVESTED CAPITAL THRESHOLDS

 ($ Millions) 
 Year Ending
December 31 
  

																					
	  	 	2005	 	 	2006	 	 	2007	 	 	2008	 	 	2009	 
	 EBITDA Target
	 	$	185	 	 	$	230	 	 	$	[      	]	 	$	[      	]	 	$	[      	]
	 Return on Invested Capital Thresholds* 
	 	 	        	%	 	 	        	%	 	 	        	%	 	 	        	%	 	 	        	%

 *    To be established by the Committee in consultation with the Company’s Chief
Executive Officer and Chief Financial Officer in accordance with the principles set forth in that certain letter agreement dated as of December 22, 2004 by and among the Company’s Chief Executive Officer, the Company’s Chief Financial
Officer and a representative of Frio Holdings, LLC. 
  

 A-1 

 FIRST AMENDMENT TO NON-QUALIFIED STOCK OPTION AGREEMENT 
 This First Amendment to the Non-Qualified Stock Option Agreement, dated as of March         , 2006, and
effective only upon the date of the consummation of an Initial Public Offering (as defined in the 2004 Stock Option Plan of Goodman Global, Inc.) (the “Effective Date”), is made by and between Goodman Global, Inc., a Delaware
corporation (the “Company”), and              (the “Executive”). 
 WHEREAS, the Executive entered that certain Non-Qualified Stock Option Agreement (dated and effective as of December 23, 2004, the “Option Agreement”); 
 WHEREAS, the Company and the Executive have mutually agreed that it is in their best interest to amend the Option Agreement pursuant to the terms set
forth herein; 
 NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, receipt
of which is hereby acknowledged, the parties hereto do hereby agree that, effective as of the date hereof, the Agreement is hereby amended as follows: 
 1.    Section 1.10 of the Option Agreement shall be amended by adding a sentence to the end thereof, to read in its entirety as follows: 
 Notwithstanding any of the forgoing, the vesting of the Option pursuant to Section 3.1(b)(i) shall be excluded in determining EBITDA. 
 2.    Section 3.1(b) of the Option Agreement shall be amended by to read in its entirety as follows: 
 (i) An Installment consisting of 10% of the shares covered by the Option shall become exercisable upon the consummation of an Initial Public Offering and
(ii) subject to subsections (c) and (e) and Section 3.3, 40% of the shares subject to the Option shall become fully exercisable on the eighth anniversary of the Grant Date provided that the Optionee remains continuously employed
in active service by the Company from the Grant Date through such date. 
 3.    The number “2009” found in
Section 3.1(c)(i) of the Option Agreement shall be replaced with the number “2008”. 
 4.    Section 3.5 of the Option Agreement shall be amended to read in its entirety as follows: 
 Section 3.5    Exercise of Option. The exercise of the Option shall be governed by the terms of this Agreement and the terms of the Plan, including, without limitation, the provisions of Article V of
the Plan; provided, however, that notwithstanding Section 5.3 of 

 
the Plan: (a) any portion of the Option that is exercisable may be exercised by delivery to the Company’s corporate secretary of full payment for
the shares with respect to which the Option is thereby exercised, which payment may be made in the form of (i) cash or personal, certified, or bank cashier check; (ii) surrender of shares of Common Stock, which have been owned by the
Optionee for at least six months (or such other minimum length of time as the Committee determines from time to time to be necessary to avoid adverse accounting consequences or violation of any applicable law, rule or regulation), duly endorsed for
transfer to the Company with a Fair Market Value (solely for these purposes, as determined in accordance with the terms of the Management Stockholders Agreement) on the date of delivery equal to the aggregate exercise price of the Option or
exercised portion thereof, or (iii) any combination of the foregoing; and (b) the payment to the Company of all amounts necessary to satisfy any and all federal, state and local tax withholding requirements arising in connection with the
exercise of the Option or any portion thereof, may be made in shares of Common Stock, which have been owned by the Optionee for at least six months (or such other minimum length of time as the Committee determines from time to time to be necessary
to avoid adverse accounting consequences or violation of any applicable law, rule or regulation), enclosed for transfer to the Company with a Fair Market Value (solely for these purposes, as determined in accordance with the terms of the Management
Stockholders Agreement) on the date of delivery equal to the amounts necessary to satisfy the portion of such federal, state and local tax withholding requirements arising in connection with the exercise of the Option which the Optionee elects to be
so satisfied; and, provided, further, that, notwithstanding anything to the contrary in Section 5.3 of the Plan, following an Initial Public Offering, the Optionee may (unless the Committee determines that the method of exercise
described in this proviso is reasonably likely to violate any applicable law, rule or regulation) exercise the Option, or any exercisable portion thereof, by delivery to the corporate secretary of notice that the Optionee has placed a market sell
order with a broker with respect to shares of Common Stock then issuable upon exercise of the Option, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Option
exercise price. 
 * * * * * 
 [signature page follows] 
  

 2 

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

			
	EXECUTIVE
	
	  
	 [Name]

	
	 GOODMAN GLOBAL, INC.

	
	  
		
	 By:
	 	  
		
	 Its:
	 	  

  

 3 

 NON-QUALIFIED STOCK OPTION AGREEMENT 
 OF 
 GOODMAN GLOBAL, INC. 
 THIS AGREEMENT (the “Agreement”) is entered into as of             ,
2005 (the “Grant Date”) by and between Goodman Global, Inc., a Delaware corporation (the “Company”) and
                        , an employee of the Company (or one of its Subsidiaries), hereinafter referred to as the
“Optionee.” 
 WHEREAS, the Company wishes to afford the Optionee the opportunity to purchase shares of its common stock,
par value $0.01 per share (“Common Stock”); and 
 WHEREAS, the Company wishes to carry out the 2004 Stock Option Plan of
Goodman Global, Inc. (as it may be amended from time to time, the “Plan”), the terms of which are hereby incorporated by reference and made a part of this Agreement; and 
 WHEREAS, the Committee appointed to administer the Plan pursuant to Section 6.1 of the Plan (the “Committee”) has determined that
it would be to the advantage and best interest of the Company and its shareholders to grant the Non-Qualified Stock Option provided for herein to the Optionee as an inducement to enter into or remain in the service of the Company (or one of its
Subsidiaries) and as an incentive for increased efforts during such service, and has advised the Company thereof and instructed the undersigned officers to issue said Option; 
 NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, receipt of which is hereby
acknowledged, the parties hereto do hereby agree as follows: 
 ARTICLE I. 
 DEFINITIONS 
 Whenever the following terms are used in this Agreement,
they shall have the meaning specified below unless the context clearly indicates to the contrary. Capitalized terms used in this Agreement and not defined below shall have the meaning given such terms in the Plan. The singular pronoun shall include
the plural, where the context so indicates. 
 Section 1.1 “Affiliate” shall mean, with respect to any Person,
any other Person directly or indirectly controlling, controlled by, or under common control with, such Person where “control” shall have the meaning given such term under Rule 405 of the Securities Act. 
 Section 1.2 “Average Invested Capital” for a given year means the quotient of (x) sum of the Invested Capital of the
Company as of the last day of each of the thirteen calendar months commencing with December of the year immediately prior to such year and ending with December of the year in question divided by (y) 13. 
 Section 1.3 “Cause” shall mean the Company or a Subsidiary having “Cause” to terminate the Optionee’s
employment, as defined in any employment, severance or other written agreement between the Optionee and the Company or a Subsidiary; provided, that in the absence of an employment, severance or other written agreement containing such a
definition, the 

 
Company or a Subsidiary shall have “Cause” to terminate the Optionee’s employment upon: (a) the Optionee’s willful failure to
substantially perform his duties as set forth in any employment or severance agreement or otherwise (other than any such failure resulting from the Optionee’s Disability) which is not remedied within 30 days after receipt of written notice from
the Company specifying such failure; (b) the Optionee’s willful failure to carry out, or comply with, in any material respect any lawful and reasonable directive of the Board or his superiors, which is not remedied within 30 days after
receipt of written notice from the Company specifying such failure; (c) the Optionee’s commission at any time of any act or omission that results in, or that may reasonably be expected to result in, a conviction, plea of no contest or
imposition of unadjudicated probation for any felony or crime involving moral turpitude; (d) the Optionee’s unlawful use (including being under the influence) or possession of illegal drugs on the Company’s premises or while
performing the Optionee’s duties and responsibilities; or (e) the Optionee’s commission at any time of any act of fraud, embezzlement, misappropriation, material misconduct, or breach of fiduciary duty against the Company (or any
predecessor thereto or successor thereof). 
 Section 1.4 “Change in Control” shall mean the first to occur of
the following events: 
 (a) The consummation of (i) a direct or indirect sale or other disposition of all or
substantially all the assets of the Company, or (ii) a change in ownership or control of the Company effected through a transaction or series of transactions (other than an offering of common stock of the Company, par value $0.01 per share, by
the Company (of either treasury shares or newly issued shares) to the general public through a registration statement filed with the Securities and Exchange Commission) (each, a “Business Combination”) whereby any “person”
or related “group” of “persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the Exchange Act) (other than the Company, any of its subsidiaries, an employee benefit plan maintained by the Company or any of its
subsidiaries, the Principal Stockholder or any “person” that, prior to such transaction, directly or indirectly controls, is controlled by, or is under common control with, the Company or the Principal Stockholder) (collectively, a
“Business Combination Person”) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company possessing more than (A) fifty percent (50%) of the
total combined voting power of the Company’s securities outstanding immediately after such acquisition, or (B) an amount greater than the amount owned or controlled, directly or indirectly, by the Principal Stockholder of the total
combined voting power of the Company’s securities outstanding immediately after such acquisition; provided that, notwithstanding the foregoing, a Change in Control shall not be deemed to occur pursuant to this Section 1.4 unless a
majority of the members of the board of directors (or similar governing body) of the entity resulting from such Business Combination are employees of the Business Combination Person; or 
 (b) A majority of the members of the Board cease to be Continuing Directors; or 
 (c) Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company. 
 Section 1.5 “Committee” shall have the meaning set forth in the Recitals hereto. 
  

 2 

 Section 1.6 “Common Stock” shall have the meaning set forth in the Recitals
hereto. 
 Section 1.7 “Company” shall have the meaning set forth in the Recitals hereto. 
 Section 1.8 “Continuing Director” means any person who either (i) was a member of the Board as of the date of this
Agreement; or (ii) was nominated for election or elected to the Board with the approval of a majority of the Continuing Directors who were members of the Board at the time of such nomination or election. 
 Section 1.9 “Disability” shall mean “Disability” as defined in any employment or severance agreement between the
Optionee and the Company or a Subsidiary; provided, that in the absence of an employment or severance agreement containing such a definition, “Disability” shall mean the Optionee’s inability to perform, with or without
reasonable accommodation, the essential functions of the Optionee’s position for a total of three months during any six month period as a result of incapacity due to mental or physical illness as determined by a physician selected by the
Company or its insurers and acceptable to the Optionee or the Optionee’s legal representative, such agreement as to acceptability not to be unreasonably withheld or delayed. 
 Section 1.10 “EBITDA” for a given period shall mean the sum of (a) the consolidated earnings before interest, taxes,
depreciation, amortization, and extraordinary items and (b) any management or similar fees charged to the Company by any Principal Stockholder (but only to the extent such fees are deducted from the earnings described in the preceding
subsection (a)), all as reflected on the Company’s audited consolidated financial statements for such period; provided, however, the impact of purchase accounting adjustments on inventory and related cost of sales as a result of the
consummation of the transactions contemplated by that certain Asset Purchase Agreement by and among Goodman Global Holdings, Inc., a Texas corporation (“Goodman (Texas)”), the Company, and Goodman Global Holdings, Inc. (f/k/a Frio, Inc.),
a Delaware corporation, dated as of November 18, 2004, providing for the Company’s purchase of substantially all the assets of Goodman (Texas) shall be excluded in determining EBITDA. Consolidated net income shall be determined in
accordance with generally accepted accounting principles except that gains or losses from extraordinary, unusual or non-recurring items may be excluded in the discretion of the Committee. 
 Section 1.11 “EBITDA Target” for a given period shall be as set forth in Exhibit A of this Agreement, subject to the
provisions of Section 4.6. 
 Section 1.12 “Good Reason” shall mean the Optionee having “Good
Reason” to terminate his employment, as defined in any employment, severance or other written agreement between the Optionee and the Company or an Affiliate; provided, that in the absence of an employment, severance or other written agreement
containing such a definition, the Optionee shall have “Good Reason” to terminate the his employment upon occurrence of any of the following: (i) failure of the Company or its shareholders to continue the Optionee in that position, or
any other substantially similar position, as he holds as of the effective date of this Agreement; (ii) a material diminution in the nature or scope of the Optionee’s responsibilities, duties or authority; (iii) failure of the Company
to make any material payment or provide any material benefit under any employment or severance agreement; or (iv) the Company’s material breach of any employment or severance agreement or any Option agreement; provided, however,

  

 3 

 
that notwithstanding the foregoing the Optionee may not resign his employment for Good Reason unless: (A) the Optionee provides the Company with at
least 30 days prior written notice of his intent to resign for Good Reason (which notice is provided not later than the 30th day following the occurrence of the event constituting Good Reason) and (B) the Company has not remedied the alleged violation(s) within the 30-day period. 
 Section 1.13 “Grant Date” shall have the meaning set forth in the Recitals hereto. 
 Section 1.14 “Invested Capital” means as of a given date, (a) the consolidated total assets of the Company minus
(b) the sum of (i) cash, (ii) identifiable and unidentifiable intangibles including goodwill, (iii) deferred income tax assets, (iv) deferred financing costs, (v) trade accounts payable and (vi) current accrued
expenses including warranty expenses of the Company on a consolidated basis, all as reflected on the Company’s balance sheet as of such date. Invested Capital shall be determined in accordance with generally accepted accounting
principles provided that extraordinary, unusual or non-recurring items may be excluded in the discretion of the Committee. 
 Section 1.15 “Option” shall mean the Non-Qualified Stock Option to purchase Common Stock granted under this Agreement. 
 Section 1.16 “Plan” shall have the meaning set forth in the Recitals hereto. 
 Section 1.17 “Person” shall mean an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, governmental authority
or other entity of whatever nature. 
 Section 1.18 “Principal Stockholders” shall mean Frio Holdings, LLC, a
Delaware limited liability company, and its Affiliates. 
 Section 1.19 “Return on Invested Capital” for a given
year means the quotient of (x) the consolidated net income of the Company for such year as reflected on the Company’s audited financial statements for such year divided by (y) Average Invested Capital for such year. Consolidated net
income shall be determined in accordance with generally accepted accounting principles except that gains or losses from extraordinary, unusual or non-recurring items may be excluded in the discretion of the Committee. 
 Section 1.20 “Return on Invested Capital Threshold” for a given period shall be set forth on Exhibit A of this Agreement,
subject to the provisions of Section 4.6. 
 Section 1.21 “Stockholders Agreement” shall mean the
stockholders agreement by and among the Company, Goodman Global Holdings, Inc., a Delaware corporation, Frio Holdings, LLC, a Delaware limited liability company, and certain other stockholders of the Company who are signatories thereto, in such form
as shall be determined by the Company. 
  

 4 

 ARTICLE II. 
 GRANT OF OPTION 
 Section 2.1 Grant of Option. In consideration of the
Optionee’s agreement to enter into or remain in the employ of the Company or one of its Subsidiaries, and for other good and valuable consideration, as of the Grant Date, the Company irrevocably grants to the Optionee the Option to purchase any
part or all of an aggregate of              shares of Common Stock upon the terms and conditions set forth in the Plan and this Agreement. 
 Section 2.2 Option Subject to Plan. The Option granted hereunder is subject to the terms and provisions of the Plan, including without
limitation, Article V and Sections 7.1, 7.2 and 7.3 thereof. 
 Section 2.3 Option Price. The purchase price of the shares
of Common Stock covered by the Option shall be $40 per share (without commission or other charge). 
 ARTICLE III. 
 EXERCISABILITY 
 Section 3.1 Commencement of Exercisability 
 (a) Subject to subsection (e) and
Section 3.3, 50% of the Option shall become exercisable in four equal and cumulative installments provided that the Optionee remains continuously employed in active service by the Company from the Grant Date through such date as follows:

 (i) The first installment shall consist of 12.5% of the shares covered by the Option and shall become exercisable on
December 31, 2005; 
 (ii) The second installment shall consist of 12.5% of the shares covered by the Option and shall
become exercisable on December 31, 2006; 
 (iii) The third installment shall consist of 12.5% of the shares covered by
the Option and shall become exercisable on December 31, 2007; and. 
 (iv) The fourth installment shall consist of 12.5%
of the shares covered by the Option and shall become exercisable on December 31, 2008. 
 (b) Subject to subsections
(c) and (e) and Section 3.3, 50% of the shares subject to the Option shall become fully exercisable on the eighth anniversary of the Grant Date provided that the Optionee remains continuously employed in active service by the Company
from the Grant Date through such date. 
 (c) Notwithstanding subsection (b) but subject to subsections (e) and
(f) and Section 3.3: 
 (i) An installment consisting of 10% of the shares covered by the Option shall become
exercisable on December 31 of each calendar year 2005 through 2009 if the 

 5 

 
EBITDA as of such December 31 equals or exceeds the applicable EBITDA Target for such year and the Return on Invested Capital Threshold for such year is
met; provided that such installment shall not be exercisable until the EBITDA and Return on Invested Capital as of such December 31, have been determined (in all events to occur not more than 80 days following such December 31).

 (ii) If the EBITDA as of the end of any calendar year 2005 through 2008 is less than the applicable EBITDA Target with
respect to such year (any such year a “Missed Year”), that portion of the Option that was subject to accelerated exercisability pursuant to Section 3.1(c)(i) with respect to the Missed Year (and which did not become exercisable
with respect to such Missed Year) shall become exercisable on December 31 of the calendar year immediately following the Missed Year, provided that the EBITDA as of such immediately following December 31 equals or exceeds the applicable
EBITDA Target for the calendar year immediately following the Missed Year; provided that such installment shall not be exercisable until the EBITDA and Return on Invested Capital as of such December 31, have been determined (in all events to
occur not more than 80 days following such December 31). 
 (d)
The Committee shall make the determination as to whether the respective EBITDA Targets have been met, and shall determine the extent, if any, to which the Option has become exercisable, on any such date after the applicable date of determination as
the Committee in its sole discretion shall determine; provided, however, that with respect to each calendar year such date shall not be later than the 80th day following December 31 of such calendar year and shall provide prompt written notice to the Optionee of such determination. 
 (e) Notwithstanding the foregoing provisions of this Section 3.1, but subject to Section 3.3, (i) any portion of the Option
described in Section 3.1(a) that has not theretofore become vested and exercisable shall become fully vested and exercisable immediately prior to the effective date of a Change in Control and (ii) the Option shall become vested and
exercisable with respect to all shares that, as of the date of a Change in Control (A) are eligible to become vested pursuant to Section 3.1(c)(i) above and (B) if the Change in Control occurs following July 1 of any year and the
Committee determines in good faith that absent such Change in Control the applicable EBITDA Target would be met with respect to such year, are eligible to become vested pursuant to Section 3.1(c)(ii) above (but the Option shall not become
vested with respect to any shares that are eligible to become vested only upon the eighth anniversary of the date of grant pursuant to Section 3.1(b) above). 
 (f) No portion of the Option which is unexercisable at Termination of Employment shall thereafter become exercisable. 
 Section 3.2 Duration of Exercisability. The installments provided for in Section 3.1 are cumulative. Each such installment which
becomes exercisable pursuant to Section 3.1 shall remain exercisable until it becomes unexercisable. 
 Section 3.3
Expiration of Option. The Option may not be exercised to any extent by anyone after the first to occur of the following events: 
 (a) The tenth anniversary of the Grant Date; or 
  

 6 

 (b) Except as the Committee may
otherwise approve, the 90th day following the date of the Optionee’s Termination of Employment for any reason
other than (i) termination by the Company for Cause or due to Disability; or (ii) the Optionee’s death; or 
 (c) Except as the Committee may otherwise approve, the date of the Optionee’s Termination of Employment by reason of termination by the Company for Cause; or 
 (d) In the case of a Termination of Employment by the Company due to Disability or as a result of the Optionee’s death, the
expiration of 12 months from the date of the Optionee’s Termination of Employment; or 
 (e) Unless otherwise determined
by the Committee, the occurrence of a Change in Control, provided that any portion of the Option which is or becomes exercisable as of the occurrence of the Change in Control may be exercised concurrently therewith. 
 Section 3.4 Partial Exercise. Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be exercised
in whole or in part at any time prior to the time when the Option or portion thereof becomes unexercisable; provided, however, that each partial exercise shall be for not less than 100 shares and shall be for whole shares only. 
 Section 3.5 Exercise of Option. The exercise of the Option shall be governed by the terms of this Agreement and the terms of the Plan,
including, without limitation, the provisions of Article V of the Plan. 
 ARTICLE IV. 
 OTHER PROVISIONS 
 Section 4.1 Not a Contract of Employment. Nothing in this Agreement or in the Plan shall confer upon the Optionee any right to continue in the employ of the Company or any of its Subsidiaries or shall interfere with or
restrict in any way the rights of the Company or its Subsidiaries, which are hereby expressly reserved, to discharge the Optionee at any time for any reason whatsoever, with or without Cause, except as may otherwise be provided by any written
agreement entered into by and between the Company and the Optionee. 
 Section 4.2 Shares Subject to Plan and Stockholders
Agreement. The Optionee acknowledges that any shares acquired upon exercise of the Option are subject to the terms of the Plan and the Stockholders Agreement. 
 Section 4.3 Construction. This Agreement shall be administered, interpreted and enforced under the internal laws of the State of Delaware, without regard to the principles of conflicts of law
thereof, or principles of conflicts of law of any other jurisdiction which could cause the application of the laws of any jurisdiction other than the State of Delaware. 
 Section 4.4 Conformity to Securities Laws. The Optionee acknowledges that the Plan is intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and
any and all regulations and rules promulgated thereunder by the Securities and Exchange Commission, including without limitation Rule 16b-3. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Option is granted
and may be 

  

 7 

 
exercised, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and this Agreement
shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. 
 Section 4.5 Amendment,
Suspension and Termination. The Option may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Committee or the Board, provided that, except as provided by Section 7.1 of the
Plan, neither the amendment, suspension nor termination of this Agreement shall, without the consent of the Optionee, alter or impair any rights or obligations under the Option. 
 Section 4.6 Adjustments in EBITDA and Return on Invested Capital Targets. The EBITDA and Return on Invested Capital Targets specified
in Exhibit A are based upon certain revenue and expense assumptions about the future business of the Company as of the date the Option is granted. Accordingly, in the event that, after such date, the Committee determines, in its sole discretion,
that any acquisition or disposition of any business by the Company or any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property), recapitalization, reclassification, stock split, reverse stock
split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase Common Stock or other securities of the
Company, any unusual or nonrecurring transactions or events affecting the Company, or the financial statements of the Company, or change in applicable laws, regulations, or accounting principles occurs such that an adjustment is determined by the
Committee to be appropriate in order to prevent dilution, diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to the Option, then the Committee shall, in good faith and in such
manner as it may deem equitable, adjust the amounts set forth on Exhibit A to reflect the projected effect of such transaction(s) or event(s) on EBITDA and/or Return on Invested Capital, subject to Section 7.1 of the Plan. 
 Section 4.7 Non-Competition; Non-Solicitation. The Optionee agrees to the following obligations that he acknowledges to be reasonably
designed to protect the Company’s legitimate business interests without unnecessarily or unreasonably restricting his post-employment opportunities. 
 (a) The Optionee shall not, at any time during the Optionee’s employment with the Company or during the two year period immediately following the date of the Optionee’s Termination of Employment with the
Company (the “Restricted Period”) directly or indirectly engage in, have any equity interest in, or manage or operate any person, firm, corporation, partnership, business or entity (whether as director, officer, employee, agent,
representative, partner, security holder, consultant or otherwise) that engages in (either directly or through any subsidiary or Affiliate thereof) any business or activity which competes with any of the businesses of the Company or any entity owned
by the Company anywhere in the world. Notwithstanding the foregoing the Optionee shall be permitted to acquire a passive stock or equity interest in such a business provided the stock or other equity interest acquired is not more than five percent
(5%) of the outstanding interest in such business. 
  

 8 

 (b) During the Restricted Period, the Optionee will not directly or indirectly, either
for himself or on behalf of any other entity, recruit or otherwise solicit or induce any employee, customer, distributor, contractor, national builder or supplier of the Company to terminate its employment or arrangement with the Company, otherwise
change its relationship with the Company, or establish any relationship with the Optionee or any of his affiliates for any business purpose deemed competitive with the business of the Company. In addition, during the Restricted Period, the Optionee
shall not, either for himself or on behalf of any other entity, hire or cause to be hired any person who was employed by the Company at any time during the twelve month period immediately prior to the date of his Termination of Employment or who
thereafter becomes employed by the Company. 
 (c) In the event the terms of this Section 4.7 shall be determined by any
court of competent jurisdiction to be unenforceable by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect, it will be interpreted to extend only
over the maximum period of time for which it may be enforceable, over the maximum geographical area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court
in such action. 
 (d) As used in this Section 4.7, the term “Company” shall include the Company, its
Affiliates, its parent, related entities, and any of its direct or indirect subsidiaries. 
 (e) The provisions contained in
Section 4.7(a) and Section 4.7(b) may be altered and/or waived with the prior written consent of the Board or the Committee. 
 Section 4.8 Nondisclosure of Proprietary Information; Non-Disparagement 
 (a) Except as he
reasonably and in good faith determines to be required in the faithful performance of the Optionee’s duties or pursuant to Section 4.8(c), the Optionee shall, during his employment with the Company and after the date of his termination of
employment with the Company, maintain in confidence and shall not directly or indirectly, use, disseminate, disclose or publish, or use for his benefit or the benefit of any person, firm, corporation or other entity any confidential or proprietary
information or trade secrets of or relating to the Company, including, without limitation, information with respect to the Company’s operations, processes, protocols, products, inventions, business practices, finances, principals, vendors,
suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status, compensation paid to employees or other terms of employment (“Proprietary Information”), or deliver to any
person, firm, corporation or other entity any document, record, notebook, computer program or similar repository of or containing any such Proprietary Information. The Optionee’s obligation to maintain and not use, disseminate, disclose or
publish, or use for his benefit or the benefit of any person, firm, corporation or other entity any Proprietary Information after the date of the Optionee’s Termination of Employment will continue so long as such Proprietary Information is not,
or has not by legitimate means become, generally known and in the public domain (other than by means of the Optionee’s direct or indirect disclosure of such Proprietary Information) and is continued to be maintained as Proprietary Information
by the Company. The parties hereby stipulate and agree that as between them, the Proprietary Information identified herein is important, material and affects the successful conduct of the businesses of the Company (and any successor or assignee of
the Company). 
  

 9 

 (b) Upon the Optionee’s Termination of Employment, the Optionee will promptly
deliver to the Company all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the Company’s customers, business plans, marketing strategies,
products or processes. 
 (c) The Optionee may respond to a lawful and valid subpoena or other legal process but shall give
the Company the earliest possible notice thereof, shall, as much in advance of the return date as possible, make available to the Company and its counsel the documents and other information sought and shall assist such counsel in resisting or
otherwise responding to such process. 
 (d) The Optionee agrees not to disparage the Company, any of its products or
practices, or any of its directors, officers, agents, representatives, stockholders or affiliates, either orally or in writing, at any time; provided, that the Optionee may confer in confidence with his legal representatives and make truthful
statements as required by law. 
 (e) The Company agrees to require the members of the Board and the executive officers of the
Company not to disparage the Optionee, either orally or in writing, at any time; provided, that, the Company may confer in confidence with its legal representatives and make truthful statements as required by law. 
 (f) As used in this Section 4.8, the term “Company” shall include the Company, its Affiliates, its parent, related
entities, and any of its direct or indirect subsidiaries. 
 Section 4.9 Injunctive Relief; Right to Cure. It is
recognized and acknowledged by the Optionee that a breach of the covenants contained in Section 4.7 and Section 4.8 will cause irreparable damage to Company and its goodwill, the exact amount of which will be difficult or impossible to
ascertain, and that the remedies at law for any such breach will be inadequate. Accordingly, the Optionee agrees that in the event of a breach of any of the covenants contained in Section 4.7 and Section 4.8, in addition to any other
remedy which may be available at law or in equity, the Company will be entitled to specific performance and injunctive relief. Notwithstanding the foregoing, except in the case of a willful breach of the covenants contained in Section 4.7 and
Section 4.8, the Company shall provide the Optionee with written notice of the breach and 30 days to cure the breach; provided, however, that notwithstanding the foregoing the Company shall be entitled to specific performance and injunctive
relief immediately upon the occurrence of any breach of the covenants contained in Section 4.7 and Section 4.8. 
 Section 4.10 Enforcement. If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during the term of this Agreement, such provision shall be fully
severable; this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a portion of this Agreement; and the remaining provisions of this Agreement shall remain in full force and effect
and shall not be affected by the illegal, invalid or unenforceable provision or by its 

  

 10 

 
severance from this Agreement. Furthermore, in lieu of such illegal, invalid or unenforceable provision there shall be added automatically as part of this
Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable. 
 [signature page follows] 
  

 11 

 IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto. 
  

	
	GOODMAN GLOBAL, INC.
	
	   
	By:    Charles A. Carroll
	Its:     President and Chief Executive Officer

	
	
	   
	 [Name]
  
 Residence Address:

                                        
             Optionee’s Social Security Number:
                                        
                     
  

 12 

 EXHIBIT A 
 NON-QUALIFIED STOCK OPTION AGREEMENT 
 EBITDA TARGETS AND RETURN ON INVESTED CAPITAL THRESHOLDS

 ($ Millions) 
 Year Ending December 31 
  

																					
	 	  	2005	 	 	2006	 	 	2007	 	 	2008	 	 	2009	 
	 EBITDA Target
	  	$	185	 	 	$	230	 	 	$	[      	]	 	$	[      	]	 	$	[      	]
	 Return on Invested Capital Thresholds
	  	 	___	%	 	 	___	%	 	 	___	%	 	 	___	%	 	 	___	%

 NON-QUALIFIED STOCK OPTION AGREEMENT 
 OF 
 GOODMAN GLOBAL, INC. 
 THIS AGREEMENT (the “Agreement”) is entered into as of December 29, 2005 (the “Grant Date”) by and between Goodman
Global, Inc., a Delaware corporation (the “Company”) and [Name of Officer], an employee of the Company (or one of its Subsidiaries), hereinafter referred to as the “Optionee.” 
 WHEREAS, the Company wishes to afford the Optionee the opportunity to purchase shares of its common stock, par value $0.01 per share (“Common
Stock”); and 
 WHEREAS, the Company wishes to carry out the 2004 Stock Option Plan of Goodman Global, Inc. (as it may be amended
from time to time, the “Plan”), the terms of which are hereby incorporated by reference and made a part of this Agreement; and 
 WHEREAS, the Committee appointed to administer the Plan pursuant to Section 6.1 of the Plan (the “Committee”) has determined that it would be to the advantage and best interest of the Company and its shareholders to
grant the Non-Qualified Stock Option provided for herein to the Optionee as an inducement to enter into or remain in the service of the Company (or one of its Subsidiaries) and as an incentive for increased efforts during such service, and has
advised the Company thereof and instructed the undersigned officers to issue said Option; 
 NOW, THEREFORE, in consideration of the mutual
covenants herein contained and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows: 
 ARTICLE I. 
 DEFINITIONS 
 Whenever the following terms are used in this Agreement, they shall have the meaning specified below unless the context clearly indicates to the
contrary. Capitalized terms used in this Agreement and not defined below shall have the meaning given such terms in the Plan. The singular pronoun shall include the plural, where the context so indicates. 
 Section 1.1    “Affiliate” shall mean, with respect to any Person, any other Person directly or
indirectly controlling, controlled by, or under common control with, such Person where “control” shall have the meaning given such term under Rule 405 of the Securities Act. 
 Section 1.2    “Cause” shall mean the Company or a Subsidiary having “Cause” to terminate the
Optionee’s employment, as defined in any employment, severance or other written agreement between the Optionee and the Company or a Subsidiary; provided, that in the absence of an employment, severance or other written agreement
containing such a definition, the Company or a Subsidiary shall have “Cause” to terminate the Optionee’s employment upon: (a) the Optionee’s willful failure to substantially perform his duties as set forth in any employment
or severance agreement or otherwise (other than any such failure resulting from the Optionee’s Disability) which is not remedied within 30 days after receipt of written notice from the Company specifying such failure; (b) the
Optionee’s willful failure to carry out, or comply with, 

  

 1 

 
in any material respect any lawful and reasonable directive of the Board or his superiors, which is not remedied within 30 days after receipt of written
notice from the Company specifying such failure; (c) the Optionee’s commission at any time of any act or omission that results in, or that may reasonably be expected to result in, a conviction, plea of no contest or imposition of
unadjudicated probation for any felony or crime involving moral turpitude; (d) the Optionee’s unlawful use (including being under the influence) or possession of illegal drugs on the Company’s premises or while performing the
Optionee’s duties and responsibilities; or (e) the Optionee’s commission at any time of any act of fraud, embezzlement, misappropriation, material misconduct, or breach of fiduciary duty against the Company (or any predecessor thereto
or successor thereof). 
 Section 1.3    “Change in Control” shall mean the first to occur
of the following events: 
 (a) The consummation of (i) a direct or indirect sale or other disposition of all or
substantially all the assets of the Company, or (ii) a change in ownership or control of the Company effected through a transaction or series of transactions (other than an offering of common stock of the Company, par value $0.01 per share, by
the Company (of either treasury shares or newly issued shares) to the general public through a registration statement filed with the Securities and Exchange Commission) (each, a “Business Combination”) whereby any “person”
or related “group” of “persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the Exchange Act) (other than the Company, any of its subsidiaries, an employee benefit plan maintained by the Company or any of its
subsidiaries, the Principal Stockholder or any “person” that, prior to such transaction, directly or indirectly controls, is controlled by, or is under common control with, the Company or the Principal Stockholder) (collectively, a
“Business Combination Person”) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company possessing more than (A) fifty percent (50%) of the
total combined voting power of the Company’s securities outstanding immediately after such acquisition, or (B) an amount greater than the amount owned or controlled, directly or indirectly, by the Principal Stockholder of the total
combined voting power of the Company’s securities outstanding immediately after such acquisition; provided that, notwithstanding the foregoing, a Change in Control shall not be deemed to occur pursuant to this Section 1.4 unless a
majority of the members of the board of directors (or similar governing body) of the entity resulting from such Business Combination are employees of the Business Combination Person; or 
 (b) A majority of the members of the Board cease to be Continuing Directors; or 
 (c) Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company. 
 Section 1.4    “Committee” shall have the meaning set forth in the Recitals hereto. 
 Section 1.5    “Common Stock” shall have the meaning set forth in the Recitals hereto. 
 Section 1.6    “Company” shall have the meaning set forth in the Recitals hereto. 
  

 2 

 Section 1.7    “Continuing Director” means any person
who either (i) was a member of the Board as of the date of this Agreement; or (ii) was nominated for election or elected to the Board with the approval of a majority of the Continuing Directors who were members of the Board at the time of
such nomination or election. 
 Section 1.8    “Disability” shall mean
“Disability” as defined in any employment or severance agreement between the Optionee and the Company or a Subsidiary; provided, that in the absence of an employment or severance agreement containing such a definition,
“Disability” shall mean the Optionee’s inability to perform, with or without reasonable accommodation, the essential functions of the Optionee’s position for a total of three months during any six month period as a result of
incapacity due to mental or physical illness as determined by a physician selected by the Company or its insurers and acceptable to the Optionee or the Optionee’s legal representative, such agreement as to acceptability not to be unreasonably
withheld or delayed. 
 Section 1.9    “Good
Reason” shall mean the Optionee having “Good Reason” to terminate his employment, as defined in any employment, severance or other written agreement between the Optionee and the Company or an Affiliate; provided, that in the
absence of an employment, severance or other written agreement containing such a definition, the Optionee shall have “Good Reason” to terminate the his employment upon occurrence of any of the following: (i) failure of the Company or
its shareholders to continue the Optionee in that position, or any other substantially similar position, as he holds as of the effective date of this Agreement; (ii) a material diminution in the nature or scope of the Optionee’s
responsibilities, duties or authority; (iii) failure of the Company to make any material payment or provide any material benefit under any employment or severance agreement; or (iv) the Company’s material breach of any employment or
severance agreement or any Option agreement; provided, however, that notwithstanding the foregoing the Optionee may not resign his employment for Good Reason unless: (A) the Optionee provides the Company with at least 30 days prior
written notice of his intent to resign for Good Reason (which notice is provided not later than the 30th day
following the occurrence of the event constituting Good Reason) and (B) the Company has not remedied the alleged violation(s) within the 30-day period. 
 Section 1.10    “Grant Date” shall have the meaning set forth in the Recitals hereto. 
 Section 1.11    “Management Stockholders Agreement” shall mean that certain Stockholders Agreement dated as of December 23, 2004, by and among the Company, Goodman
Global Holdings, Inc. (f/k/a Frio, Inc.), a Delaware corporation, Frio Holdings, LLC, a Delaware limited liability company, and certain other stockholders of the Company who are signatories thereto. 
 Section 1.12    “Option” shall mean the Non-Qualified Stock Option to purchase Common Stock granted
under this Agreement. 
 Section 1.13    “Plan” shall have the meaning set forth in the
Recitals hereto. 
 Section 1.14    “Person” shall mean an individual, partnership,
corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, governmental authority or other entity of whatever nature. 
  

 3 

 Section 1.15    “Principal Stockholders” shall mean Frio
Holdings, LLC, a Delaware limited liability company, and its Affiliates. 
 Section 1.16    “Termination of Employment” shall mean the time when the employee-employer relationship between an Optionee and the Company (and all of its subsidiaries or Affiliates) is
terminated for any reason, with or without cause, including, but not by way of limitation, a termination by resignation, discharge, death or retirement, but excluding a termination where there is a simultaneous reemployment by the Company (or one of
its subsidiaries or Affiliates). For the avoidance of doubt, the parties acknowledge and agree that the last sentence of Section 1.30 of the Plan shall not apply with respect to the Option granted hereunder. 
 ARTICLE II. 
 GRANT OF OPTION

 Section 2.1    Grant of Option. In consideration of the Optionee’s agreement to enter into
or remain in the employ of the Company or one of its Subsidiaries, and for other good and valuable consideration, as of the Grant Date, the Company irrevocably grants to the Optionee the Option to purchase any part or all of an aggregate of
                     shares of Common Stock upon the terms and conditions set forth in the Plan and this Agreement. 
 Section 2.2    Option Subject to Plan. The Option granted hereunder is subject to the terms and provisions of the
Plan, including without limitation, Article V and Sections 7.1, 7.2 and 7.3 thereof. 
 Section 2.3    Option Price. The purchase price of the shares of Common Stock covered by the Option shall be $110 per share (without commission or other charge). 
 ARTICLE III. 
 EXERCISABILITY

 Section 3.1    Commencement of Exercisability 
 (a) Subject to subsection (b) and (c) and Sections 3.3 and 3.4, the Option shall become exercisable in four equal and cumulative
installments provided that the Optionee remains continuously employed in active service by the Company from the Grant Date through such date as follows: 
 (i) The first installment shall consist of 25% of the shares covered by the Option and shall become exercisable on December 22, 2006; 
 (ii) The second installment shall consist of 25% of the shares covered by the Option and shall become exercisable on December 22,
2007; 
 (iii) The third installment shall consist of 25% of the shares covered by the Option and shall become exercisable on
December 22, 2008; and 
  

 4 

 (iv) The fourth installment shall consist of 25% of the shares covered by the Option and
shall become exercisable on December 22, 2009. 
 (b) Notwithstanding Section 3.1(a), but subject to Sections
3.1(c), 3.3 and 3.4, the Option shall become fully vested and exercisable with respect to all shares covered thereby immediately prior to any Change in Control that occurs following an Initial Public Offering. 
 (c) No portion of the Option which is unexercisable at Termination of Employment shall thereafter become exercisable. 
 Section 3.2    Duration of Exercisability. The installments provided for in Section 3.1 are cumulative. Each
such installment which becomes exercisable pursuant to Section 3.1 shall remain exercisable until it becomes unexercisable. 
 Section 3.3    Expiration of Option. The Option may not be exercised to any extent by anyone after the first to occur of the following events: 
 (a) The tenth anniversary of the Grant Date; or 
 (b) Except as the Committee may otherwise approve, the 90th day following the date of the Optionee’s Termination of Employment for any reason other than (i) termination by the
Company for Cause or due to Disability; or (ii) the Optionee’s death; or 
 (c) Except as the Committee may
otherwise approve, the date of the Optionee’s Termination of Employment by reason of termination by the Company for Cause; or 
 (d) In the case of a Termination of Employment by the Company due to Disability or as a result of the Optionee’s death, the expiration of 12 months from the date of the Optionee’s Termination of Employment. 
 Section 3.4    Initial Public Offering. Notwithstanding any other provision in this Agreement to the contrary, if
no Initial Public Offering has occurred on or prior to December 21, 2006, then (a) the Option shall be forfeited in its entirety as of December 21, 2006 and (b) in no event shall any portion of the Option become exercisable
pursuant to Section 3.1(a) following December 21, 2006. 
 Section 3.5    Partial Exercise.
Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be exercised in whole or in part at any time prior to the time when the Option or portion thereof becomes unexercisable; provided, however, that each
partial exercise shall be for not less than 100 shares and shall be for whole shares only. 
 Section 3.6    Exercise of Option. The exercise of the Option shall be governed by the terms of this Agreement and the terms of the Plan, including, without limitation, the provisions of Article V of
the Plan; provided, however, that notwithstanding Section 5.3 of the Plan: (a) any portion of the Option that is exercisable may be exercised by delivery to the Company’s corporate secretary of full payment for the shares with
respect to which the Option is thereby exercised, which payment may be made in the form of (i) cash or personal, certified, or bank cashier check; (ii) surrender of shares of Common Stock, which have been owned by the 

  

 5 

 
Optionee for at least six months (or such other minimum length of time as the Committee determines from time to time to be necessary to avoid adverse
accounting consequences or violation of any applicable law, rule or regulation), duly endorsed for transfer to the Company with a Fair Market Value (solely for these purposes, as determined in accordance with the terms of the Management Stockholders
Agreement) on the date of delivery equal to the aggregate exercise price of the Option or exercised portion thereof or (iii) any combination of the foregoing; and (b) the payment to the Company of all amounts necessary to satisfy any and
all federal, state and local tax withholding requirements arising in connection with the exercise of the Option or any portion thereof, may be made in shares of Common Stock, which have been owned by the Optionee for at least six months (or such
other minimum length of time as the Committee determines from time to time to be necessary to avoid adverse accounting consequences or violation of any applicable law, rule or regulation), enclosed for transfer to the Company with a Fair Market
Value (solely for these purposes, as determined in accordance with the terms of the Management Stockholders Agreement) on the date of delivery equal to the amounts necessary to satisfy the portion of such federal, state and local tax withholding
requirements arising in connection with the exercise of the Option which the Optionee elects to be so satisfied; and, provided, further, that, notwithstanding anything to the contrary in Section 5.3 of the Plan, following an
Initial Public Offering, the Optionee may (unless the Committee determines that the method of exercise described in this proviso is reasonably likely to violate any applicable law, rule or regulation) exercise the Option, or any exercisable portion
thereof, by delivery to the corporate secretary of notice that the Optionee has placed a market sell order with a broker with respect to shares of Common Stock then issuable upon exercise of the Option, and that the broker has been directed to pay a
sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Option exercise price. 
 ARTICLE IV. 

 OTHER PROVISIONS 
 Section 4.1    Not a Contract of Employment. Nothing in this Agreement or in the Plan shall confer upon the Optionee any right to continue in the employ of the Company or any of its Subsidiaries or
shall interfere with or restrict in any way the rights of the Company or its Subsidiaries, which are hereby expressly reserved, to discharge the Optionee at any time for any reason whatsoever, with or without Cause, except as may otherwise be
provided by any written agreement entered into by and between the Company and the Optionee. 
 Section 4.2    Shares Subject to Plan and Management Stockholders Agreement; Entire Agreement. The Optionee acknowledges that any shares acquired upon exercise of the Option are subject to the terms of
the Plan and the Management Stockholders Agreement. The terms of this Agreement are intended by the parties to be the final expression of their agreement with respect to the subject matter hereof and may not be contradicted by evidence of any prior
or contemporaneous agreement, including, without limitation, that certain Binding Management Compensation Term Sheet by and between the Optionee and the Company dated as of November 18, 2004. The parties further intend that this Agreement
(together with the Plan and the Management Stockholders Agreement) shall constitute the complete and exclusive statement of its terms and that no extrinsic evidence whatsoever may be introduced in any judicial, administrative, or other legal
proceeding to vary the terms of this Agreement. 
  

 6 

 Section 4.3    Construction. This Agreement shall be administered,
interpreted and enforced under the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof, or principles of conflicts of law of any other jurisdiction which could cause the application of the laws of any
jurisdiction other than the State of Delaware. 
 Section 4.4    Conformity to Securities Laws. The
Optionee acknowledges that the Plan is intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated thereunder by the Securities and Exchange Commission,
including without limitation Rule 16b-3. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Option is granted and may be exercised, only in such a manner as to conform to such laws, rules and regulations. To the
extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. 
 Section 4.5    Amendment, Suspension and Termination. The Option may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to
time by the Committee or the Board, provided that, except as provided by Section 7.1 of the Plan, neither the amendment, suspension nor termination of this Agreement shall, without the consent of the Optionee, alter or impair any rights or
obligations under the Option. 
 Section 4.6    Corporate Events and Other Adjustments. Any and all
adjustments made to this Option pursuant to Sections 7.1(a) or 7.1(b) of the Plan or pursuant to Section 4.5 of this Agreement shall be made by the Committee in consultation with the Company’s Chief Executive Officer, and the Committee
shall use its good faith best efforts to make any such adjustment in a manner that it determines is not reasonably likely to (a) dilute or diminish the potential benefits of this Option or (b) otherwise materially reduce the value of the
Option (all as compared to the facts and circumstances applicable prior to such adjustment and the applicable transaction or event). 
 Section 4.7    Section 409A. Notwithstanding any other provision of the Plan or this Agreement, the Plan and this Agreement shall be interpreted in accordance with, and incorporate the terms and
conditions required by, Section 409A of the U.S. Internal Revenue Code of 1986, as amended (together with any Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such
regulations or other guidance that may be issued after the date hereof, “Section 409A”). The Committee and the Optionee may, in their mutual discretion, adopt such amendments to the Plan or this Agreement or adopt other
policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Committee determines are necessary or appropriate to exempt the Option from Section 409A or to comply with the
requirements of Section 409A and thereby avoid the penalty taxes under Section 409A, without materially diminishing the economic benefits to the Optionee; provided that no such amendment, suspension nor termination of the Plan or this
Agreement shall, without the consent of the Optionee, impair any rights or obligations of the Optionee under the Option. 
 [signature page
follows] 
  

 7 

 IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto. 
  

			
	GOODMAN GLOBAL, INC.
		
	By:	 	  
	Its:	 	  
		 	
	
	  
	[Name of Optionee]
	
	Residence Address:
	
	  
	
	  

  

			
		
	Optionee’s Social Security Number:  	  	  

  

 8 

 NON-QUALIFIED STOCK OPTION AGREEMENT 
 OF 
 GOODMAN GLOBAL, INC. 
 THIS AGREEMENT (the “Agreement”) is entered into as of December 29, 2005 (the “Grant Date”) by and between Goodman
Global, Inc., a Delaware corporation (the “Company”) and [Name of officer or employee], an employee of the Company (or one of its Subsidiaries), hereinafter referred to as the “Optionee.” 
 WHEREAS, the Company wishes to afford the Optionee the opportunity to purchase shares of its common stock, par value $0.01 per share (“Common
Stock”); and 
 WHEREAS, the Company wishes to carry out the 2004 Stock Option Plan of Goodman Global, Inc. (as it may be amended
from time to time, the “Plan”), the terms of which are hereby incorporated by reference and made a part of this Agreement; and 
 WHEREAS, the Committee appointed to administer the Plan pursuant to Section 6.1 of the Plan (the “Committee”) has determined that it would be to the advantage and best interest of the Company and its shareholders to
grant the Non-Qualified Stock Option provided for herein to the Optionee as an inducement to enter into or remain in the service of the Company (or one of its Subsidiaries) and as an incentive for increased efforts during such service, and has
advised the Company thereof and instructed the undersigned officers to issue said Option; 
 NOW, THEREFORE, in consideration of the mutual
covenants herein contained and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows: 
 ARTICLE I. 
 DEFINITIONS 
 Whenever the following terms are used in this Agreement, they shall have the meaning specified below unless the context clearly indicates to the
contrary. Capitalized terms used in this Agreement and not defined below shall have the meaning given such terms in the Plan. The singular pronoun shall include the plural, where the context so indicates. 
 Section 1.1    “Affiliate” shall mean, with respect to any Person, any other Person directly or
indirectly controlling, controlled by, or under common control with, such Person where “control” shall have the meaning given such term under Rule 405 of the Securities Act. 
 Section 1.2    “Cause” shall mean the Company or a Subsidiary having “Cause” to terminate the
Optionee’s employment, as defined in any employment, severance or other written agreement between the Optionee and the Company or a Subsidiary; provided, that in the absence of an employment, severance or other written agreement
containing such a definition, the Company or a Subsidiary shall have “Cause” to terminate the Optionee’s employment upon: (a) the Optionee’s willful failure to substantially perform his duties as set forth in any employment
or severance agreement or otherwise (other than any such failure resulting from the Optionee’s Disability) which is not remedied within 30 days after receipt of written notice from the Company specifying such failure; (b) the
Optionee’s willful failure to carry out, or comply with, 

 
in any material respect any lawful and reasonable directive of the Board or his superiors, which is not remedied within 30 days after receipt of written
notice from the Company specifying such failure; (c) the Optionee’s commission at any time of any act or omission that results in, or that may reasonably be expected to result in, a conviction, plea of no contest or imposition of
unadjudicated probation for any felony or crime involving moral turpitude; (d) the Optionee’s unlawful use (including being under the influence) or possession of illegal drugs on the Company’s premises or while performing the
Optionee’s duties and responsibilities; or (e) the Optionee’s commission at any time of any act of fraud, embezzlement, misappropriation, material misconduct, or breach of fiduciary duty against the Company (or any predecessor thereto
or successor thereof). 
 Section 1.4    “Change in Control” shall mean the first to occur
of the following events: 
 (a) The consummation of (i) a direct or indirect sale or other disposition of all or
substantially all the assets of the Company, or (ii) a change in ownership or control of the Company effected through a transaction or series of transactions (other than an offering of common stock of the Company, par value $0.01 per share, by
the Company (of either treasury shares or newly issued shares) to the general public through a registration statement filed with the Securities and Exchange Commission) (each, a “Business Combination”) whereby any “person”
or related “group” of “persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the Exchange Act) (other than the Company, any of its subsidiaries, an employee benefit plan maintained by the Company or any of its
subsidiaries, the Principal Stockholder or any “person” that, prior to such transaction, directly or indirectly controls, is controlled by, or is under common control with, the Company or the Principal Stockholder) (collectively, a
“Business Combination Person”) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company possessing more than (A) fifty percent (50%) of the
total combined voting power of the Company’s securities outstanding immediately after such acquisition, or (B) an amount greater than the amount owned or controlled, directly or indirectly, by the Principal Stockholder of the total
combined voting power of the Company’s securities outstanding immediately after such acquisition; provided that, notwithstanding the foregoing, a Change in Control shall not be deemed to occur pursuant to this Section 1.4 unless a
majority of the members of the board of directors (or similar governing body) of the entity resulting from such Business Combination are employees of the Business Combination Person; or 
 (b) A majority of the members of the Board cease to be Continuing Directors; or 
 (c) Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company. 
 Section 1.5    “Committee” shall have the meaning set forth in the Recitals hereto. 
 Section 1.6    “Common Stock” shall have the meaning set forth in the Recitals hereto. 
 Section 1.7    “Company” shall have the meaning set forth in the Recitals hereto. 
  

 2 

 Section 1.8    “Continuing Director” means any person
who either (i) was a member of the Board as of the date of this Agreement; or (ii) was nominated for election or elected to the Board with the approval of a majority of the Continuing Directors who were members of the Board at the time of
such nomination or election. 
 Section 1.9    “Disability” shall mean
“Disability” as defined in any employment or severance agreement between the Optionee and the Company or a Subsidiary; provided, that in the absence of an employment or severance agreement containing such a definition,
“Disability” shall mean the Optionee’s inability to perform, with or without reasonable accommodation, the essential functions of the Optionee’s position for a total of three months during any six month period as a result of
incapacity due to mental or physical illness as determined by a physician selected by the Company or its insurers and acceptable to the Optionee or the Optionee’s legal representative, such agreement as to acceptability not to be unreasonably
withheld or delayed. 
 Section 1.12    “Good
Reason” shall mean the Optionee having “Good Reason” to terminate his employment, as defined in any employment, severance or other written agreement between the Optionee and the Company or an Affiliate; provided, that in the
absence of an employment, severance or other written agreement containing such a definition, the Optionee shall have “Good Reason” to terminate the his employment upon occurrence of any of the following: (i) failure of the Company or
its shareholders to continue the Optionee in that position, or any other substantially similar position, as he holds as of the effective date of this Agreement; (ii) a material diminution in the nature or scope of the Optionee’s
responsibilities, duties or authority; (iii) failure of the Company to make any material payment or provide any material benefit under any employment or severance agreement; or (iv) the Company’s material breach of any employment or
severance agreement or any Option agreement; provided, however, that notwithstanding the foregoing the Optionee may not resign his employment for Good Reason unless: (A) the Optionee provides the Company with at least 30 days prior
written notice of his intent to resign for Good Reason (which notice is provided not later than the 30th day
following the occurrence of the event constituting Good Reason) and (B) the Company has not remedied the alleged violation(s) within the 30-day period. 
 Section 1.13    “Grant Date” shall have the meaning set forth in the Recitals hereto. 
 Section 1.15    “Option” shall mean the Non-Qualified Stock Option to purchase Common Stock granted under this Agreement. 
 Section 1.16    “Plan” shall have the meaning set forth in the Recitals hereto. 
 Section 1.17    “Person” shall mean an individual, partnership, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint venture, governmental authority or other entity of whatever nature. 
 Section 1.18    “Principal Stockholders” shall mean Frio Holdings, LLC, a Delaware limited liability company, and its Affiliates. 
 Section 1.21    “Stockholders Agreement” shall mean the stockholders agreement by and among the Company,
Goodman Global Holdings, Inc., a Delaware corporation, Frio Holdings, 

  

 3 

 
LLC, a Delaware limited liability company, and certain other stockholders of the Company who are signatories thereto, in such form as shall be determined by
the Company. 
 ARTICLE II. 
 GRANT OF OPTION 
 Section 2.1    Grant of Option. In consideration of the
Optionee’s agreement to enter into or remain in the employ of the Company or one of its Subsidiaries, and for other good and valuable consideration, as of the Grant Date, the Company irrevocably grants to the Optionee the Option to purchase any
part or all of an aggregate of                      shares of Common Stock upon the terms and conditions set forth in the Plan and this
Agreement. 
 Section 2.2    Option Subject to Plan. The Option granted hereunder is subject to the
terms and provisions of the Plan, including without limitation, Article V and Sections 7.1, 7.2 and 7.3 thereof. 
 Section 2.3    Option Price. The purchase price of the shares of Common Stock covered by the Option shall be $110 per share (without commission or other charge). 
 ARTICLE III. 
 EXERCISABILITY

 Section 3.1    Commencement of Exercisability 
 (a) Subject to subsection (b) and (c) and Sections 3.3 and 3.4, the Option shall become exercisable in four equal and cumulative
installments provided that the Optionee remains continuously employed in active service by the Company from the Grant Date through such date as follows: 
 (i) The first installment shall consist of 25% of the shares covered by the Option and shall become exercisable on December 22, 2006; 
 (ii) The second installment shall consist of 25% of the shares covered by the Option and shall become exercisable on December 22,
2007; 
 (iii) The third installment shall consist of 25% of the shares covered by the Option and shall become exercisable on
December 22, 2008; and 
 (iv) The fourth installment shall consist of 25% of the shares covered by the Option and shall
become exercisable on December 22, 2009. 
 (b) Notwithstanding Section 3.1(a), but subject to Sections 3.1(c), 3.3
and 3.4, the Option shall become fully vested and exercisable with respect to all shares covered thereby immediately prior to any Change in Control that occurs following an Initial Public Offering. 
 (c) No portion of the Option which is unexercisable at Termination of Employment shall thereafter become exercisable. 
  

 4 

 Section 3.2    Duration of Exercisability. The installments
provided for in Section 3.1 are cumulative. Each such installment which becomes exercisable pursuant to Section 3.1 shall remain exercisable until it becomes unexercisable. 
 Section 3.3    Expiration of Option. The Option may not be exercised to any extent by anyone after the first to
occur of the following events: 
 (a) The tenth anniversary of the Grant Date; or 
 (b) The 90th day following the date of the Optionee’s Termination of Employment for any reason other than (i) termination by the Company for Cause or due to
Disability; or (ii) the Optionee’s death; or 
 (c) The date of the Optionee’s Termination of Employment by
reason of termination by the Company for Cause; or 
 (d) In the case of a Termination of Employment by the Company due to
Disability or as a result of the Optionee’s death, the expiration of 12 months from the date of the Optionee’s Termination of Employment. 
 Section 3.4    Initial Public Offering. Notwithstanding any other provision in this Agreement to the contrary, if no Initial Public Offering has occurred on or prior to December 21, 2006, then
(a) the Option shall be forfeited in its entirety as of December 21, 2006 and (b) in no event shall any portion of the Option become exercisable pursuant to Section 3.1(a) following December 21, 2006. 
 Section 3.5    Partial Exercise. Any exercisable portion of the Option or the entire Option, if then wholly
exercisable, may be exercised in whole or in part at any time prior to the time when the Option or portion thereof becomes unexercisable; provided, however, that each partial exercise shall be for not less than 100 shares and shall be for
whole shares only. 
 Section 3.6    Exercise of Option. The exercise of the Option shall be governed
by the terms of this Agreement and the terms of the Plan, including, without limitation, the provisions of Article V of the Plan. 
 ARTICLE IV. 
 OTHER PROVISIONS 
 Section 4.1    Not a Contract of Employment. Nothing in this Agreement or in the Plan shall confer upon the Optionee any right to continue in the employ of the Company or any of
its Subsidiaries or shall interfere with or restrict in any way the rights of the Company or its Subsidiaries, which are hereby expressly reserved, to discharge the Optionee at any time for any reason whatsoever, with or without Cause, except as may
otherwise be provided by any written agreement entered into by and between the Company and the Optionee. 
 Section 4.2    Shares Subject to Plan and Stockholders Agreement. The Optionee acknowledges that any shares acquired upon exercise of the Option are subject to the terms of the Plan and the
Stockholders Agreement. 
  

 5 

 Section 4.3    Construction. This Agreement shall be administered,
interpreted and enforced under the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof, or principles of conflicts of law of any other jurisdiction which could cause the application of the laws of any
jurisdiction other than the State of Delaware. 
 Section 4.4    Conformity to Securities Laws. The
Optionee acknowledges that the Plan is intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated thereunder by the Securities and Exchange Commission,
including without limitation Rule 16b-3. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Option is granted and may be exercised, only in such a manner as to conform to such laws, rules and regulations. To the
extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. 
 Section 4.5    Amendment, Suspension and Termination. The Option may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to
time by the Committee or the Board, provided that, except as provided by Section 7.1 of the Plan, neither the amendment, suspension nor termination of this Agreement shall, without the consent of the Optionee, alter or impair any rights or
obligations under the Option. 
 Section 4.7    Non-Competition; Non-Solicitation. The Optionee agrees
to the following obligations that he acknowledges to be reasonably designed to protect the Company’s legitimate business interests without unnecessarily or unreasonably restricting his post-employment opportunities. 
 (a) The Optionee shall not, at any time during the Optionee’s employment with the Company or during the two year period immediately
following the date of the Optionee’s Termination of Employment with the Company (the “Restricted Period”) directly or indirectly engage in, have any equity interest in, or manage or operate any person, firm, corporation,
partnership, business or entity (whether as director, officer, employee, agent, representative, partner, security holder, consultant or otherwise) that engages in (either directly or through any subsidiary or Affiliate thereof) any business or
activity which competes with any of the businesses of the Company or any entity owned by the Company anywhere in the world. Notwithstanding the foregoing the Optionee shall be permitted to acquire a passive stock or equity interest in such a
business provided the stock or other equity interest acquired is not more than five percent (5%) of the outstanding interest in such business. 
 (b) During the Restricted Period, the Optionee will not directly or indirectly, either for himself or on behalf of any other entity, recruit or otherwise solicit or induce any employee, customer, distributor,
contractor, national builder or supplier of the Company to terminate its employment or arrangement with the Company, otherwise change its relationship with the Company, or establish any relationship with the Optionee or any of his affiliates for any
business purpose deemed competitive with the business of the Company. In addition, during the Restricted Period, the Optionee shall not, either for himself or on behalf of any other entity, hire or cause to be hired any person who was employed by
the Company at any time during the twelve month period immediately prior to the date of his Termination of Employment or who thereafter becomes employed by the Company. 
  

 6 

 (c) In the event the terms of this Section 4.7 shall be determined by any court of
competent jurisdiction to be unenforceable by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect, it will be interpreted to extend only over the
maximum period of time for which it may be enforceable, over the maximum geographical area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court in such
action. 
 (d) As used in this Section 4.7, the term “Company” shall include the Company, its Affiliates, its
parent, related entities, and any of its direct or indirect subsidiaries. 
 (e) The provisions contained in
Section 4.7(a) and Section 4.7(b) may be altered and/or waived with the prior written consent of the Board or the Committee. 
 Section 4.8    Nondisclosure of Proprietary Information; Non-Disparagement 
 (a) Except as he reasonably and in good faith determines to be required in the faithful performance of the Optionee’s duties or pursuant to Section 4.8(c), the Optionee shall, during his employment with the Company and after the
date of his termination of employment with the Company, maintain in confidence and shall not directly or indirectly, use, disseminate, disclose or publish, or use for his benefit or the benefit of any person, firm, corporation or other entity any
confidential or proprietary information or trade secrets of or relating to the Company, including, without limitation, information with respect to the Company’s operations, processes, protocols, products, inventions, business practices,
finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status, compensation paid to employees or other terms of employment (“Proprietary
Information”), or deliver to any person, firm, corporation or other entity any document, record, notebook, computer program or similar repository of or containing any such Proprietary Information. The Optionee’s obligation to maintain
and not use, disseminate, disclose or publish, or use for his benefit or the benefit of any person, firm, corporation or other entity any Proprietary Information after the date of the Optionee’s Termination of Employment will continue so long
as such Proprietary Information is not, or has not by legitimate means become, generally known and in the public domain (other than by means of the Optionee’s direct or indirect disclosure of such Proprietary Information) and is continued to be
maintained as Proprietary Information by the Company. The parties hereby stipulate and agree that as between them, the Proprietary Information identified herein is important, material and affects the successful conduct of the businesses of the
Company (and any successor or assignee of the Company). 
 (b) Upon the Optionee’s Termination of Employment, the
Optionee will promptly deliver to the Company all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the Company’s customers, business plans,
marketing strategies, products or processes. 
 (c) The Optionee may respond to a lawful and valid subpoena or other legal
process but shall give the Company the earliest possible notice thereof, shall, as much in advance 

  

 7 

 
of the return date as possible, make available to the Company and its counsel the documents and other information sought and shall assist such counsel in
resisting or otherwise responding to such process. 
 (d) The Optionee agrees not to disparage the Company, any of its
products or practices, or any of its directors, officers, agents, representatives, stockholders or affiliates, either orally or in writing, at any time; provided, that the Optionee may confer in confidence with his legal representatives and
make truthful statements as required by law. 
 (e) The Company agrees to require the members of the Board and the executive
officers of the Company not to disparage the Optionee, either orally or in writing, at any time; provided, that, the Company may confer in confidence with its legal representatives and make truthful statements as required by law. 

(f) As used in this Section 4.8, the term “Company” shall include the Company, its Affiliates, its parent, related
entities, and any of its direct or indirect subsidiaries. 
 Section 4.9    Injunctive Relief; Right to
Cure. It is recognized and acknowledged by the Optionee that a breach of the covenants contained in Section 4.7 and Section 4.8 will cause irreparable damage to Company and its goodwill, the exact amount of which will be difficult or
impossible to ascertain, and that the remedies at law for any such breach will be inadequate. Accordingly, the Optionee agrees that in the event of a breach of any of the covenants contained in Section 4.7 and Section 4.8, in addition to
any other remedy which may be available at law or in equity, the Company will be entitled to specific performance and injunctive relief. Notwithstanding the foregoing, except in the case of a willful breach of the covenants contained in
Section 4.7 and Section 4.8, the Company shall provide the Optionee with written notice of the breach and 30 days to cure the breach; provided, however, that notwithstanding the foregoing the Company shall be entitled to specific
performance and injunctive relief immediately upon the occurrence of any breach of the covenants contained in Section 4.7 and Section 4.8. 
 Section 4.10    Enforcement. If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during the term of this
Agreement, such provision shall be fully severable; this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a portion of this Agreement; and the remaining provisions of this Agreement
shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance from this Agreement. Furthermore, in lieu of such illegal, invalid or unenforceable provision there shall be added
automatically as part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable. 
 Section 4.11    Section 409A. Notwithstanding any other provision of the Plan or this Agreement, the Plan and
this Agreement shall be interpreted in accordance with, and incorporate the terms and conditions required by, Section 409A of the U.S. Internal Revenue Code of 1986, as amended (together with any Department of Treasury regulations and other
interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the date hereof, “Section 409A”). The Committee may, in its 

  

 8 

 
discretion, adopt such amendments to the Plan or this Agreement or adopt other policies and procedures (including amendments, policies and procedures with
retroactive effect), or take any other actions, as the Committee determines are necessary or appropriate to exempt the Option from Section 409A or to comply with the requirements of Section 409A and thereby avoid the penalty taxes under
Section 409A. 
 [signature page follows] 
  

 9 

 IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto. 
  

			
	GOODMAN GLOBAL, INC.
		
	By:	 	  
	Its:	 	  
		 	
	
	  
	[Name of Optionee]
	
	Residence Address:
	
	  
	
	  

  

			
		
	Optionee’s Social Security Number:  	  	  

  

 10 

 NON-QUALIFIED STOCK OPTION AGREEMENT 
 OF 
 GOODMAN GLOBAL, INC. 
 THIS AGREEMENT (the “Agreement”) is entered into as of March 1, 2005 (the “Grant Date”) by and between Goodman
Global, Inc., a Delaware corporation (the “Company”) and                     , a non-employee director of the Company,
hereinafter referred to as the “Optionee.” 
 WHEREAS, the Company wishes to afford the Optionee the opportunity to purchase
shares of its common stock, par value $0.01 per share (“Common Stock”); and 
 WHEREAS, the Company wishes to carry out the
2004 Stock Option Plan of Goodman Global, Inc. (as it may be amended from time to time, the “Plan”), the terms of which are hereby incorporated by reference and made a part of this Agreement; and 
 WHEREAS, the Board of Directors of the Company (the “Board”) has determined that it would be to the advantage and best interest of the
Company and its shareholders to grant the Non-Qualified Stock Option provided for herein to the Optionee as an incentive for increased efforts during service as a non-employee director of the Company; 
 NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, receipt of which is hereby
acknowledged, the parties hereto do hereby agree as follows: 
 ARTICLE I. 
 DEFINITIONS 
 Whenever the following terms are used in this Agreement,
they shall have the meaning specified below unless the context clearly indicates to the contrary. Capitalized terms used in this Agreement and not defined below shall have the meaning given such terms in the Plan. The singular pronoun shall include
the plural, where the context so indicates. 
 Section 1.1    “Board” shall have the meaning
set forth in the Recitals hereto. 
 Section 1.2    “Common Stock” shall have the meaning
set forth in the Recitals hereto. 
 Section 1.3    “Company” shall have the meaning set
forth in the Recitals hereto. 
 Section 1.4    “Grant Date” shall have the meaning set
forth in the Recitals hereto. 
 Section 1.5    “Management Stockholders Agreement” shall
mean that certain Stockholders Agreement dated as of December 23, 2004, by and among the Company, Goodman Global Holdings, Inc. (f/k/a Frio, Inc.), a Delaware corporation, Frio Holdings, LLC, a Delaware limited liability company, and certain
other stockholders of the Company who are signatories thereto. 
 Section 1.6    “Option”
shall mean the Non-Qualified Stock Option to purchase Common Stock granted under this Agreement. 
  

 Section 1.7    “Plan” shall have the meaning set forth
in the Recitals hereto. 
 Section 1.8    “Termination of Directorship” shall mean the time
when the Optionee ceases to be a member of the Board for any reason, including but not by way of limitation, a termination by resignation, failure to be elected or appointed, death or retirement. 
 ARTICLE II. 
 GRANT OF OPTION

 Section 2.1    Grant of Option. In consideration of the Optionee’s continued service
as a member of the Board, and for other good and valuable consideration, as of the Grant Date, the Company irrevocably grants to the Optionee the Option to purchase any part or all of an aggregate of 4,000 shares of Common Stock upon the terms and
conditions set forth in the Plan and this Agreement. 
 Section 2.2    Option Subject to Plan. The
Option granted hereunder is subject to the terms and provisions of the Plan, including without limitation, Article V and Sections 7.1, 7.2 and 7.3 thereof. 
 Section 2.3    Option Price. The purchase price of the shares of Common Stock covered by the Option shall be $40 per share (without commission or other charge). 
 ARTICLE III. 
 EXERCISABILITY

 Section 3.1    Exercisability. As of the Grant Date, the Option shall be fully vested and
immediately exercisable with respect to all shares of Common Stock subject thereto. 
 Section 3.2    Expiration of Option. The Option may not be exercised to any extent by anyone after the first to occur of the following events: 
 (a) The tenth anniversary of the Grant Date; or 
 (b) The first anniversary of the Optionee’s Termination of Directorship for any reason. 
 Section 3.4    Partial Exercise. Any portion of the Option or the entire Option may be exercised in whole or in
part at any time prior to the time when the Option or portion thereof becomes unexercisable; provided, however, that each partial exercise shall be for not less than 100 shares and shall be for whole shares only. 
 Section 3.5    Exercise of Option. The exercise of the Option shall be governed by the terms of this Agreement and
the terms of the Plan, including, without limitation, the provisions of Article V of the Plan. 
  

 2 

 ARTICLE IV. 
 OTHER PROVISIONS 
 Section 4.1    Optionee’s Services
as a Director. Nothing in this Agreement or in the Plan shall confer upon the Optionee any right to continue in the service of the Company or any of its affiliates (whether as a director or otherwise). 
 Section 4.2    Shares Subject to Plan and Management Stockholders Agreement. The Optionee acknowledges that any
shares acquired upon exercise of the Option are subject to the terms of the Plan and the Management Stockholders Agreement. 
 Section 4.3    Construction. This Agreement shall be administered, interpreted and enforced under the internal laws of the State of Delaware, without regard to the principles of conflicts of law
thereof, or principles of conflicts of law of any other jurisdiction which could cause the application of the laws of any jurisdiction other than the State of Delaware. 
 Section 4.4    Conformity to Securities Laws. The Optionee acknowledges that the Plan is intended to conform to the extent necessary with all provisions of the Securities Act and
the Exchange Act and any and all regulations and rules promulgated thereunder by the Securities and Exchange Commission, including without limitation Rule 16b-3. Notwithstanding anything herein to the contrary, the Plan shall be administered, and
the Option is granted and may be exercised, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to
such laws, rules and regulations. 
 Section 4.5    Amendment, Suspension and Termination. The Option
may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Board, provided that, except as provided by Section 7.1 of the Plan, neither the amendment, suspension nor termination of
this Agreement shall, without the consent of the Optionee, alter or impair any rights or obligations under the Option. 
 [signature page
follows] 
  

 3 

 IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto. 
  

			
	GOODMAN GLOBAL, INC.
		
	 	 	 
	By:	 	Charles A. Carroll
	Its:	 	President and Chief Executive Officer
		 	
	
	  
	[Name of Non-Employee Director]
	
	Residence Address:
	
	  
	
	  

  

			
		
	Optionee’s Social Security Number:  	  	  

  

 4

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