Exhibit 10.21


	
  

  	
   

  	
  Indalex Inc., Suite 450

  
	
   

  	
   

  	
  75 Tri-State International

  
	
   

  	
   

  	
  Lincolnshire, IL 60069

  



 


 


2006 Company Bonus Program


 


2006 Bonus Plan


 


Dear Colleague:


 


I am pleased to enclose
details of the 2006 Bonus Plan.  This plan applies to the portion of your bonus based
on the performance of the total business, also known as Indalex “Sector”
performance.


For many last year was
your first year in the “Sector” wide plan where you had 100% of your potential
in this plan. The feedback we received from many of you was a preference for
more control over your own destiny and a desire to have a higher portion of
your bonus tied directly to your local plant KPI’s.  We listened and agreed and therefore this
year will be moving your “Sector” portion down to 50% while   raising your local KPI portion to 50%.  Unless otherwise notified, if you are not
tied directly to one plant you will remain at 100% Sector.


This modified plan in
part continues to support   our “one
company” philosophy and our efforts to deliver an acceptable level of
profitability. While also keeping each of us more focused on items, which are
in our “line of sight” and will drive improvement at local facilities. As we
now have interest to pay on debt, the entry point for the plan has been raised
to a level which will allow the Company to pay its debt service costs. While
the entry level has been raised, once we hit 80% of budgeted earnings the
payout potential remains the same as in the last two years. Furthermore once we
exceed 80% of budget, we can earn more than in the past two years and unlike in
the past there is no cap of 115%.


This year there is an
additional change for those folks who are at a Bonus Potential level above or
equal to 35%, that is, 25 % of your bonus potential will be directly related to
your individual performance as  “discretionary”.  As an example, if your potential is 30%,
beginning this year, 25% of the 30% (7.5%) is discretionary and directly
related to your individual performance. In a worst-case scenario if the company
does not generate enough income for a profit-based payout, you, depending on
attainment of individual objectives may still be eligible to receive up to 25%
of your bonus potential. Conversely however if the company generates earnings allowing
a payout and you do not meet your individual objectives you may not receive any
of the discretionary portion of your bonus potential. This discretionary piece
has been added allowing us to reward high performers in good times and in bad.


Your specific plan design
is contained in the enclosed letter.


We will continue to keep
you informed how we are doing through the year with periodic emails and or
intranet links. 


Every extra piece of
profitable business and every dollar saved will make a difference.


Best Regards,


Tim Stubbs


CEO


Indalex Holding Corp.









 



Individual
Incentive Statement


(Example)


 


Colleague Name:


 


	
  Bonus Potential (%):

  	
   

  	
  30% (25% or one quarter of the bonus potential being

  discretionary)

  
	
   

  	
   

  	
   

  
	
  Bonus  Weighting:

  	
   

  	
  50% Sector,  50% local KPIs

  
	
   

  	
   

  	
   

  



Note
if you are not directly related to a plant you will remain 100% “Sector”


 


Incentive Plan Rules:


The
following notes summarize the terms of the Indalex Aluminum Solutions Colleague
Bonus Plan (“the Plan”).


1.               The Plan will apply to the colleagues of
Indalex Aluminum Solutions and any division or subsidiary company nominated by
the Chief Executive of Indalex Aluminum Solutions (“the Chief Executive”) or
such other person(s) as he shall appoint.


2.               Bonuses payable under the Plan will be paid
by reference to the financial year of Indalex Aluminum Solutions (“the Bonus
Year”).  Each bonus will be calculated as
a percentage of year-end eligible earnings (basic wages, plus overtime pay
where applicable, but exclusive of any other bonuses, fees/allowances or other
additional remuneration) paid to the relevant Colleague by his/her employing
company (“the Company”) during the Bonus Year.


3.               The bonus will be payable by the Company as
soon as is practicable after the announcement of the annual results of Indalex
Aluminum Solutions for the relevant Bonus Year.


4.               A Colleague joining the Company, or changing
assignments within the organization, during the Bonus Year will be eligible for
the Plan on a pro rata basis.  Colleagues joining in November or December
will not be eligible to join the Scheme in that Bonus Year.


5.               If a colleague exits the organization prior
to the payment of the bonus, they will be ineligible to receive a bonus.


6.               In the event of a Colleague being absent from
work, for any reason, for more than 3 months, paid or unpaid, in any Bonus
Year, any bonus payment will be calculated on a pro-rata basis.


7.               Colleagues out on leave at time of payout
will receive eligible payout upon return to active status.


8.               The achievement of the criteria, including
eligible profits, relevant to the payment of any bonus will be determined
according to the accounts of the company or division and in the event of any
criteria, which are not apparent from the accounts, will be determined by the Chief
Executive whose decision shall be final and binding.









 



9.               In the event of any material change in
business profitability during the year unrelated to base business performance,
for example as a result of acquisition or disposal of assets, the final profit
may be adjusted, at the sole discretion of the Chief Executive.  Such decision shall be final and binding.


10.         Any changes to the plan, including bonus targets, will be at the
discretion of the Chief Executive.


11.         Payments made under the Plan will not be eligible for inclusion in
redundancy or termination settlement.


12.         Any colleague who commits a gross safety violation during the year will
not be eligible for a payout if achieved.


13.         The Plan is to be self-financing and, therefore, profits will be stated
after deducting the cost of all bonuses.


14.         Bonus payments will be calculated based on
the bonus percent multiple as of April 1 of the bonus year.  Pro-rata calculations may be made where bonus
potential, or assigned bonus criteria have changed during the course of the
year.


15.         Individuals incented against the performance
of multiple plants will have the KPI’s split evenly on the KPI weighting.


16.         Discretionary bonus payout, dollars and /or
percentage, is at the sole discretion of the Chief Executive Officer.


Colleague
Signature________________________________Date:___________________


Print
Name_______________________________________________________________


Please send a signed copy to Deb DiStephano in Girard (for US
participants) or Lisa Justa in Mississauga (for Canadian participants) no later
than May 31, 2006.