I know that this thread is a couple of months old, but as it’s still open, I’d like to add that I’ve got what appears to be the same problem.
WP 3.9
Easy Watermark 0.5.2
Using the plugin with Gravity Forms for front-end uploads and photos larger than about 1mb are timing out (internal server error). I raised the issue with my host and after some back and forth, they tell me:
In the end, the issue appears to be a memory limitation
Fatal error: Out of memory (allocated 106168320) (tried to allocate 33544 bytes) in /home/domain/public_html/URL.com/wp-content/plugins/easy-watermark/lib/EasyWatermark.php on line 851
This runs out of memory at 100MB which shouldn’t be the case as we have your account set to be able to max out at 256M(per php script) total of 1GB. This usually means this limitation is set within a PHP script somewhere but I have been unable to find it.
Any new ideas? Love the plugin, but for now it’s not usable.
