Document:

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                                                                   EXHIBIT 10.25

                              EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into as of
September 30, 2002, by and between Atrium Corporation (f/k/a D and W Holdings,
Inc.), a Delaware corporation (together with its successors and assigns
permitted hereunder, the "Company"), Atrium Companies, Inc., a Delaware
corporation ("ACI"), and Philip J. Ragona (the "Employee").

                                    RECITALS

     A. The Board of Directors of the Company (the "Board") determined that it
is in the best interest of the Company and its stockholders to employ the
Employee on the terms and conditions set forth herein.

     B. ACI and its subsidiaries will benefit from the services to be provided
by the Employee hereunder.

                                   AGREEMENTS

     NOW, THEREFORE, in consideration of the respective agreements and covenants
set forth herein and other good and valuable consideration, the receipt of which
is hereby acknowledged, the parties hereto, intending to be legally bound,
hereby agree as follows:

     1. Employment Period. Subject to Section 3, the Company hereby agrees to
employ the Employee, and the Employee hereby agrees to be employed by the
Company in accordance with the terms and provisions of this Agreement, for a
period commencing on the date hereof and ending on the third anniversary of such
date (the "Employment Period"). None of the parties hereto is under any
obligation to extend or renew this Agreement. Any new employment agreement shall
only be effective after having been reduced to writing and executed by all the
parties hereto. In the event the Employee continues to perform services after
the Employment Period, and pending execution of a new employment agreement, if
any, such services shall constitute employment for an unspecified term,
terminable at will, with or without cause or reason, with or without advance
notice, and with or without pay in lieu of advance notice.

     2. Terms of Employment.

          (a) Position and Duties.

               (i) During the term of the Employee's employment, the Employee
shall serve as Senior Vice President and General Counsel of the Company and, in
so doing, shall perform normal duties and responsibilities associated with such

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position, subject to the general direction, approval and control of the
President and Chief Executive Officer ("Chief Executive") or equivalent position
and the Board of Directors.

               (ii) During the term of the Employee's employment, and excluding
any periods of vacation and other leave to which the Employee is entitled, the
Employee agrees to devote substantially all his business time to the business
and affairs of the Company and to use the Employee's best efforts to perform
faithfully, effectively and efficiently his duties and responsibilities.

               (iii) During the term of the Employee's employment, it shall not
be a violation of this Agreement for the Employee to (1) serve on industry
trade, civic or charitable boards or committees, (2) deliver lectures or fulfill
speaking engagements or (3) manage personal investments, so long as such
activities do not interfere with the performance of the Employee's duties and
responsibilities as an employee of the Company.

               (iv) The Employee agrees to observe and comply with the Company's
rules and policies as adopted by the Company from time to time.

         (b) Compensation.

               (i) Base Salary. During the Employment Period, the Employee shall
receive an annual base salary ("Annual Base Salary"), which shall be paid in
accordance with the customary payroll practices of the Company in an amount
equal to $185,000 per annum. The Chief Executive and the Board, in their
discretion, may at any time increase the amount of the Annual Base Salary to
such greater amount as it may deem appropriate, and the term "Annual Base
Salary," as used in this Agreement, shall refer to the Annual Base Salary as it
may be so increased. It is understood that the Company may, at any time, in the
discretion of the Board, increase, but not decrease, the amount of the Annual
Base Salary.

               (ii) Incentive Bonus. The Employee shall be entitled to an
Incentive Bonus as set forth on Schedule A hereto. The Incentive Bonus, if any,
shall be paid to the Employee on or before April 1st of the calendar year
immediately following the year with respect to which the calculation of the
Incentive Bonus is made.

               (iii) Incentive Savings, Stock Option and Retirement Plans.
During the term of the Employee's employment, the Employee shall be entitled to
participate in all incentive, savings, stock option and retirement plans,
practices, policies and programs applicable generally to other employees of the
Company ("Investment Plans"), as amended from time to time.

               (iv) Welfare Benefit Plans. During the term of the Employee's
employment, the Employee and/or the Employee's family, as the case may be, shall
be eligible for participation in and shall receive all benefits under the
welfare benefit plans,

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practices, policies and programs ("Welfare Plans") provided by the Company
(including medical, prescription, dental, disability, salary continuance,
employee life, group life, accidental death and travel accident insurance plans
and programs), as amended from time to time, to the extent applicable generally
to other employees of the Company.

               (v) Perquisites. During the term of the Employee's employment,
the Employee shall be entitled to receive (in addition to the benefits described
above) such perquisites and fringe benefits appertaining to his position in
accordance with any policies, practices and procedures established by the Board,
as amended from time to time.

               (vi) Expenses. During the term of the Employee's employment, the
Employee shall be entitled to receive prompt reimbursement for all reasonable
employment expenses incurred by the Employee in accordance with the Company's
policies, practices and procedures, as amended from time to time. Upon
commencing the Employment Period, the Employee will be paid $25,000, less
applicable taxes, for relocation expenses associated with his move to Dallas,
Texas.

               (vii) Automobile. The Company recognizes the Employee's need for
an automobile for business purposes. The Company shall provide the Employee with
a monthly automobile allowance of $650 per month.

               (viii) Vacation. During the term of the Employee's employment,
the Employee shall be entitled to four (4) weeks paid vacation each calendar
year. Any vacation shall be taken at the reasonable and mutual convenience of
the Company and the Employee. Accrued vacation not taken in any calendar year
will not be carried forward or used in any subsequent calendar year and the
Employee shall not be entitled to receive pay in lieu of accrued but unused
vacation in any calendar year. Vacation will be deemed to accrue daily for
purposes of the payments described in Sections 4 and 5 hereof.

               (ix) Stock Options. Upon the effective date of this Agreement,
the Employee will be entitled to the stock options described on Schedule B
hereto.

          (c) Key-Man Insurance. At any time during the Employment Period, the
Company shall have the right to insure the life of the Employee for the
Company's sole benefit, and to determine the amount of insurance and the type of
policy. The Employee shall cooperate with the Company in taking out such
insurance by submitting to physical examinations, by supplying all information
required by the insurance company, and by executing all necessary documents. The
Employee shall incur no financial obligation by executing any required document,
and shall have no interest in any such policy.

     3. Termination of Employment.

          (a) Death or Disability. The Employee's employment shall terminate
automatically upon the Employee's death during the Employment Period. If the

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Disability (as defined below) of the Employee has occurred during the Employment
Period, the Company may give to the Employee written notice in accordance with
Section 13(b) of its intention to terminate the Employee's employment. In such
event, the Employee's employment with the Company shall terminate effective on
the 30th day after receipt of such notice by the Employee (the "Disability
Effective Date"), if, within the 30 days after such receipt, the Employee shall
not have returned to perform, with or without reasonable accommodation, the
essential functions of his position. For purposes of this Agreement,
"Disability" shall mean the Employee's inability to perform, with or without
reasonable accommodations, the essential functions of his position hereunder for
a period of 120 days, consecutive or non-consecutive, in any 12-month period due
to mental or physical incapacity, as determined by a physician selected by the
Company or its insurers and acceptable to the Employee or the Employee's legal
representative, such agreement as to acceptability not to be unreasonably
withheld or delayed. Any refusal by the Employee to submit to a medical
examination for the purpose of determining Disability under this Section 3(a)
shall be deemed to constitute conclusive evidence of the Employee's Disability.

          (b) Cause or Without Cause. The Company may terminate the Employee's
employment during the Employment Period for Cause or without Cause. For purposes
of this Agreement, "Cause" shall mean (i) a breach by the Employee of the
Employee's obligations under Section 2(a) (other than as a result of physical or
mental incapacity) which constitutes a continued material nonperformance by the
Employee of his obligations and duties thereunder, as determined by the Board,
and which is not remedied within 30 days after receipt of written notice from
the Company specifying such breach, (ii) commission by the Employee of an act of
fraud, embezzlement, misappropriation, willful misconduct or breach of fiduciary
duty against the Company, as reasonably determined by a majority of the members
of the Board after a hearing by the Board following ten days' notice to the
Employee of such hearing; (iii) a material breach by the Employee of Sections 7,
8, 10 or 11; (iv) the Employee's conviction, plea of no contest or nolo
contendere, or unadjudicated probation for any felony or crime involving moral
turpitude; (v) the failure of the Employee to carry out, or comply with, in any
material respect any lawful and reasonable directive of the Board consistent
with the terms of this Agreement, which is not remedied within 30 days after
receipt of written notice from the Company specifying such failure; or (vi) the
Employee's unlawful use (including being under the influence) or possession of
illegal drugs on the Company's premises or while performing the Employee's
duties and responsibilities under this Agreement. For purposes of this
Agreement, "without Cause" shall mean a termination by the Company of the
Employee's employment during the Employment Period for any reason other than a
termination based upon Cause, death, Disability or upon a Change of Control, as
defined below. The Company may suspend the Employee's title and authority
pending the hearing provided for in clause (ii) above, and such suspension shall
not constitute "Good Reason" as defined below.

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          (c) Good Reason. The Employee's employment may be terminated during
the Employment Period by the Employee for Good Reason or without Good Reason;
provided, however, that the Employee agrees not to terminate his employment for
Good Reason unless (i) the Employee has given the Company at least 30 days'
prior written notice of his intent to terminate his employment for Good Reason,
which notice shall specify the facts and circumstances constituting Good Reason,
and (ii) the Company has not remedied such facts and circumstances constituting
Good Reason within such 30-day period. For purposes of this Agreement, "Good
Reason" shall mean:

               (i) any significant reduction, approved by the Board without the
Employee's consent in the Employee's position, authority, duties or
responsibilities as contemplated in Section 2(a) or any other action by the
Company which results in a material diminution in such position, authority,
duties or responsibilities, excluding for this purpose an inadvertent action not
taken in bad faith and which is remedied by the Company promptly after receipt
of written notice thereof given by the Employee;

               (ii) any termination or material reduction of a material benefit
under any Investment Plan or Welfare Plan in which the Employee participates
unless (A) there is substituted a comparable benefit that is economically
substantially equivalent to the terminated or reduced benefit prior to such
termination or reduction or (B) benefits under such Investment Plan or Welfare
Plan are terminated or reduced with respect to all employees previously granted
benefits thereunder;

               (iii) any failure by the Company to comply with any of the
provisions of Section 2(b), other than an inadvertent failure not occurring in
bad faith and which is remedied by the Company promptly after receipt of written
notice thereof given by the Employee; or

               (iv) without limiting the generality of the foregoing, any
material breach by the Company or any of its subsidiaries or other affiliates
(as defined below) of (A) this Agreement or (B) any other agreement between the
Employee and the Company or any such subsidiary or other affiliate.

     As used in this Agreement, "affiliate" means, with respect to a person, any
other person controlling, controlled by or under common control with the first
person; the term "control," and correlative terms, means the power, whether by
contract, equity ownership or otherwise, to direct the policies or management of
a person; and "person" means an individual, partnership, corporation, limited
liability company, trust or unincorporated organization, or a government or
agency or political subdivision thereof.

          (d) Change of Control. If a Change of Control (as defined below)
occurs during the Employment Period and the Board determines in good faith that
it is in the Company's best interest to terminate the Employee's employment with
the Company, within one year of such Change of Control the Company may terminate
the Employee's employment by giving the Employee written notice in accordance
with Section 13(b) of

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its intention to terminate the Employee's employment. Any such termination by
the Company as contemplated in this Section 3(d) is referred to herein as a
termination "upon a Change of Control."

          As used in this Agreement, "Change of Control" means the first to
occur of: (i) any sale, lease, exchange or other transfer of all or
substantially all of the assets of the Company (including capital stock or
assets of operating subsidiaries) to any person or group of persons, (ii) a
majority of the Board of Directors of the Company shall consist of persons who
are not nominated collectively by Ardshiel, Inc. and its affiliates and GE
Investment Private Placement Partners II, a Limited Partnership or (iii) the
acquisition by any person or group (other than Ardshiel, Inc., GE Investment
Private Placement Partners II, a Limited Partnership and their affiliates) of
the power to vote or direct the voting of securities having more than 50% of the
ordinary voting power for the election of directors of the Company.

          (e) Notice of Termination. Any termination by the Company for Cause or
without Cause or upon a Change of Control, or by the Employee for Good Reason or
without Good Reason, shall be communicated by Notice of Termination to the other
party hereto given in accordance with Section 13(b). For purposes of this
Agreement, a "Notice of Termination" means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Employee's employment under
the provision so indicated and (iii) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the
termination date (which date shall not be more than 15 days after the giving of
such notice). The failure by the Employee or the Company to set forth in the
Notice of Termination any fact or circumstance which contributes to a showing of
Good Reason or Cause or a termination upon a Change of Control shall not waive
any right of the Employee or the Company hereunder or preclude the Employee or
the Company from asserting such fact or circumstance in enforcing the Employee's
or the Company's rights hereunder.

          (f) Date of Termination. "Date of Termination" means (i) if the
Employee's employment is terminated by the Company for Cause or upon a Change of
Control, or by the Employee for Good Reason or without Good Reason, the date of
receipt of the Notice of Termination or any later date specified therein
pursuant to Section 3(e), as the case may be, (ii) if the Employee's employment
is terminated by the Company other than for Cause or upon a Change of Control,
the date on which the Company notifies the Employee of such termination and
(iii) if the Employee's employment is terminated by reason of death or
Disability, the date of death of the Employee or the Disability Effective Date,
as the case may be.

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     4. Obligations of the Company upon Termination.

          (a) For Cause; Without Good Reason; Other Than for Death, Disability
or Upon a Change of Control. If, during the Employment Period, the Company shall
terminate the Employee's employment for Cause or the Employee shall terminate
his employment without Good Reason, and the termination of the Employee's
employment in any case is not due to his death or Disability or upon a Change of
Control, the Employee shall forfeit all rights to the Incentive Bonus otherwise
due to him or to which he may be entitled, all unexercised stock options held by
the Employee shall lapse and expire, and the Company shall have no further
payment obligations to the Employee or his legal representatives, other than for
the payment of: (i) in a lump sum in cash within ten (10) days after the Date of
Termination the sum of the Employee's Annual Base Salary through the Date of
Termination to the extent not theretofore paid, any compensation previously
deferred by the Employee (together with any accrued interest or earnings
thereon) and any accrued vacation pay (collectively, the "Accrued Obligations");
and (ii) any amount arising from the Employee's participation in, or benefits
under, any Investment Plans (the "Accrued Investments"), which amounts shall be
payable in accordance with the terms and conditions of such Investment Plans.

          (b) Death. If the Employee's employment is terminated by reason of the
Employee's death during the Employment Period, all unexercised stock options
held by the Employee shall immediately vest (in his legal representatives) and
become exercisable for a period of thirty (30) days from the Date of
Termination. Immediately following such period, all unexercised stock options
shall lapse and expire. The Company shall have no further payment obligations to
the Employee or his legal representatives, other than for payment of: (i) in a
lump sum in cash within ten (10) days after the Date of Termination the Accrued
Obligations; (ii) the Accrued Investments, which shall be payable in accordance
with the terms and conditions of the Investment Plans; and (iii) the Incentive
Bonus prorated from the first day of the Company's then current fiscal year to
the Date of Termination (the "Prorated Incentive Bonus"), payable following
calculation of the Incentive Bonus in accordance with Section 2(b)(ii) hereof.

          (c) Disability. If the Employee's employment is terminated by reason
of the Employee's Disability during the Employment Period, all unexercised stock
options held by the Employee shall immediately vest and become exercisable for a
period of thirty (30) days from the Date of Termination. Immediately following
such period, all unexercised stock options shall lapse and expire. The Company
shall have no further payment obligations to the Employee or his legal
representatives, other than for payment of: (i) in a lump sum in cash within ten
(10) days after the Date of Termination the Accrued Obligations; (ii) the
Accrued Investments, which shall be payable in accordance with the terms and
conditions of the Investment Plans; and (iii) the Prorated Incentive Bonus,
payable following calculation of the Incentive Bonus in accordance with Section
2(b)(ii) hereof.

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          (d) Without Cause or for Good Reason. If the Employee's employment is
terminated by the Company without Cause or by the Employee for Good Reason, all
unvested stock options held by the Employee (the "Unvested Options") shall
immediately vest and become exercisable for a period of thirty (30) days from
the Date of Termination (the "Exercise Period") and the Company shall have no
further payment obligations to the Employee or his legal representatives other
than for: (i) payment of, in a lump sum in cash within ten (10) days after the
Date of Termination, the Accrued Obligations; (ii) payment of the Accrued
Investments shall be payable in accordance with the terms and conditions of the
Investment Plans; (iii) payment of the Prorated Incentive Bonus, payable
following calculation of the Incentive Bonus in accordance with Section 2(b)(ii)
hereof; and (iv) payment for each month during a period of twelve months
following the Date of Termination (the "Severance Period") of one-twelfth of the
sum of the Employee's Annual Base Salary on the Date of Termination, in
accordance with the customary payroll practices of the Company.

     5. Change of Control. If the Employee's employment is terminated upon a
Change of Control as contemplated in Section 3(d), all unexercised stock options
held by the Employee shall immediately vest and become exercisable for a period
of 30 days from the Date of Termination. Immediately following such period all
unexercised stock options shall lapse and expire. The Company shall have no
further payment obligations to the Employee or his legal representatives, other
than for (i) payment of, in a lump sum in cash within ten (10) days after the
Date of Termination, the Accrued Obligations; (ii) payment of the Accrued
Investments, which shall be payable in accordance with the terms and conditions
of the Investment Plans; (iii) payment of the Prorated Incentive Bonus, payable
following calculation of the Incentive Bonus in accordance with Section 2(b)(ii)
hereof; and (iv) payment for each month during the Severance Period of
one-twelfth of the sum of the Employee's Annual Base Salary on the Date of
Termination, in accordance with the customary payroll practices of the Company.

     6. Full Settlement; Mitigation. In no event shall the Employee be obligated
to seek other employment or take any other action by way of mitigation of the
amounts payable to the Employee under any of the provisions of this Agreement
and such amounts shall not be reduced whether or not the Employee obtains other
employment. Neither the Employee nor the Company shall be liable to the other
party for any damages in addition to the amounts payable under Section 4 arising
out of the termination of the Employee's employment prior to the end of the
Employment Period; provided, however, that the Company shall be entitled to seek
damages from the Employee for any breach of Sections 7, 8, 9, 10, or 11 by the
Employee and either party shall be entitled to seek damages for criminal
misconduct.

     7. Confidential Information.

          (a) The Employee acknowledges that the Company and its affiliates have
trade, business and financial secrets and other confidential and proprietary
information

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(collectively, the "Confidential Information"). "Confidential Information"
includes sales materials, technical information, processes and compilations of
information, records, specifications and information concerning customers or
vendors, manuals relating to suppliers' products, customer lists, information
regarding methods of doing business, and the identity of suppliers.
"Confidential Information" shall not include (i) information that is generally
known to other persons or entities who can obtain economic value from its
disclosure or use and (ii) information required to be disclosed by the Employee
pursuant to a subpoena or court order, or pursuant to a requirement of a
governmental agency or law of the United States of America or a state thereof or
any governmental or political subdivision; provided, however, that the Employee
shall take all reasonable steps to prohibit disclosure pursuant to subsection
(ii) above.

          (b) During and following the Employee's employment by the Company, the
Employee shall hold in confidence and not directly or indirectly disclose or use
or copy or make lists of any Confidential Information or proprietary data of the
Company or its affiliates except to the extent authorized in writing by the
Board or required by any court or administrative agency, other than to an
employee of the Company or its affiliates or a person to whom disclosure is
reasonably necessary or appropriate in connection with the performance by the
Employee of his duties as an employee of the Company.

          (c) The Employee further agrees not to use any Confidential
Information for the benefit of any person or entity other than the Company or
its affiliates.

          (d) As used in this Section 7, "Company" shall include Atrium
Corporation and any of its direct or indirect subsidiaries.

     8. Responsibilities Upon Termination. Upon the termination of his
employment by the Company for whatever reason and irrespective of whether or not
such termination is voluntary on his part:

          (a) The Employee shall advise the Company of the identity of his new
employer within ten (10) days after accepting new employment and further agrees
to keep the Company so advised of any change in employment during the term of
Non-Competition set forth in Section 10 hereof;

          (b) The Company in its sole discretion may notify any new employer of
the Employee that he has an obligation not to compete with the Company during
such term;

          (c) The Employee shall deliver to the Company any and all records,
forms, contracts, memoranda, work papers, customer data and any other documents
which have come into his possession by reason of his employment with the Company
(including Atrium Corporation and its direct and indirect subsidiaries),
irrespective of whether or not any of said documents were prepared for him, and
he shall not retain memoranda in respect of or copies of any of said documents;
and

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          (d) The Employee shall participate in an exit interview with the
Company.

     9. Successors. The Company may assign its rights and obligations under this
Agreement without the consent of the Employee to any successor to all or
substantially all the assets of the Company, by merger or otherwise, subject,
however, to the Employee's right to terminate this Agreement for Good Reason as
provided in Section 3(c), and may assign or encumber this Agreement and its
rights hereunder as security for indebtedness of the Company and its affiliates.
All representations, warranties, covenants, terms, conditions and provisions of
this Agreement shall be binding upon and inure to the benefit of, and be
enforceable by the respective heirs, legal representatives, successors and
permitted assigns of the Company and the Employee. Neither this Agreement nor
any rights, interests or obligations hereunder may be assigned by the Employee
without the prior written consent of the Company.

     10. Non-Competition.

          (a) The term of Non-Competition (herein so called) shall be for a term
beginning on the effective date hereof and continuing until (i) the first
anniversary of the Date of Termination if the Employee's employment is
terminated by the Company for Cause or due to Disability or by the Employee
without Good Reason, or (ii) the last day of the Severance Period if the
Employee's employment is terminated by the Company without Cause (and not due to
Disability) or upon a Change of Control or by the Employee for Good Reason.

          (b) During the term of Non-Competition, the Employee shall not (other
than for the benefit of the Company or its affiliates pursuant to this
Agreement) directly or indirectly, render services to, assist, participate in
the affairs of, or otherwise be connected with, any person or enterprise (other
than the Company), which person or enterprise is engaged in, or is planning to
engage in, and shall not personally engage in, any business that is in any
respect competitive with the business of the Company, with respect to any
products of the Company that were within the Employee's management
responsibility at any time within the twelve-month period immediately prior to
the termination of the Employee's employment with the Company, in any capacity
which would (i) utilize the Employee's services with respect to such business
within any state of the United States, or any substantially comparable political
subdivision of any other country, wherein the Company sold or actively attempted
to sell, such products within the twelve-month period immediately prior to the
termination of the Employee's employment with the Company; or (ii) utilize the
Employee's services in selling any products similar to such products of the
Company to any person or entity to which the Company sold or actively attempted
to sell such products within the twelve-month period immediately prior to the
termination of the Employee's employment with the Company (a "Competing
Business"). Notwithstanding the foregoing, the Company agrees that the Employee
may own less than five percent of the outstanding voting securities of any
publicly traded

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company that is a Competing Business so long as the Employee does not otherwise
participate in such Competing Business in any way prohibited by the preceding
clause.

          (c) During the term of Non-Competition, the Employee will not, and
will not permit any of his affiliates to, directly or indirectly, recruit or
otherwise solicit or induce any employee, customer, subscriber 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 Employee or any of his affiliates for any business purpose deemed
competitive with the business of the Company.

          (d) The Employee acknowledges that the geographic boundaries, scope of
prohibited activities, and time duration of the preceding paragraphs are
reasonable in nature and are no broader than are necessary to maintain the
goodwill of the Company and its affiliates and the confidentiality of their
Confidential Information, and to protect the other legitimate business interests
of the Company and its affiliates.

          (e) If any court determines that any portion of this Section 10 is
invalid or unenforceable, the remainder of this Section 10 shall not thereby be
affected and shall be given full effect without regard to the invalid
provisions. If any court construes any of the provisions of this Section 10, or
any part thereof, to be unreasonable because of the duration or scope of such
provision, such court shall have the power to reduce the duration or scope of
such provision and to enforce such provision as so reduced.

          (f) As used in this Section 10, "Company" shall include Atrium
Corporation and any of its direct or indirect subsidiaries.

     11. Inventions; Assignment. All rights to discoveries, inventions,
improvements and innovations (including all data and records pertaining thereto)
related to the Company's business, whether or not patentable, copyrightable,
registrable as a trademark, or reduced to writing, that the Employee may
discover, invent or originate during the Employment Period, and for a period of
twelve (12) months thereafter, either alone or with others and whether or not
during working hours or by the use of the facilities of the Company
("Inventions"), shall be the exclusive property of the Company. The Employee
shall promptly disclose all Inventions to the Company, shall execute at the
request of the Company any assignments or other documents the Company may deem
necessary to protect or perfect its rights therein, and shall assist the
Company, at the Company's expense, in obtaining, defending and enforcing the
Company's rights therein. The Employee hereby appoints the Company as his
attorney-in-fact to execute on his behalf any assignments or other documents
deemed necessary by the Company to protect or perfect its rights to any
Inventions.

     12. ACI. At any time during the Employment Period, any of the obligations
of the Company to make payments hereunder, including the obligation to pay any
compensation to the Employee under Section 2(b), may, at the sole discretion of
the Company, be discharged and satisfied by ACI.

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     13. Miscellaneous.

          (a) Construction. This Agreement shall be deemed drafted equally by
both the parties. Its language shall be construed as a whole and according to
its fair meaning. Any presumption or principle that the language is to be
construed against any party shall not apply. The headings in this Agreement are
only for convenience and are not intended to affect construction or
interpretation. Any references to paragraphs, subparagraphs, sections or
subsections are to those parts of this Agreement, unless the context clearly
indicates to the contrary. Also, unless the context clearly indicates to the
contrary, (a) the plural includes the singular and the singular includes the
plural; (b) "and" and "or" are each used both conjunctively and disjunctively;
(c) "any," "all," "each," or "every" means "any and all," and "each and every";
(d) "includes" and "including" are each "without limitation"; (e) "herein,"
"hereof," "hereunder" and other similar compounds of the word "here" refer to
the entire Agreement and not to any particular paragraph, subparagraph, section
or subsection; and (f) all pronouns and any variations thereof shall be deemed
to refer to the masculine, feminine, neuter, singular or plural as the identity
of the entities or persons referred to may require.

          (b) Notices. All notices and other communications hereunder shall be
in writing and shall be given by hand delivery to the other party or by
registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

     If to the Employee:        Philip J. Ragona
                                3225 Turtle Creek Boulevard
                                Dallas, Texas  75201

     If to the Company:         Atrium Companies, Inc.
                                Attn:  Jeff L. Hull
                                1341 W. Mockingbird, Suite 1200W
                                Dallas, Texas  75247
                                (214) 630-5058

                                Atrium Corporation
                                c/o Ardshiel, Inc.
                                Two Greenwich Office Park
                                Greenwich, Connecticut  06831
                                Attention: Daniel T. Morley
                                Fax: (203) 661-8210

                                       12
<PAGE>

                                with a copy to:

                                Joel M. Simon
                                Marie Censoplano
                                Paul, Hastings, Janofsky & Walker LLP
                                75 East 55th Street
                                New York, New York 10022
                                Fax: (212) 319-4090

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

          (c) 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.

          (d) Withholding. The Company shall be entitled to withhold from any
amounts payable under this Agreement any federal, state, local or foreign
withholding or other taxes or charges which it is from time to time required to
withhold. The Company shall be entitled to rely on an opinion of counsel if any
questions as to the amount or requirement of such withholding shall arise.

          (e) No Waiver. No waiver by either party at any time of any breach by
the other party of, or compliance with, any condition or provision of this
Agreement to be performed by the other party shall be deemed a waiver of similar
or dissimilar provisions or conditions at any time.

          (f) Equitable Relief. The Employee acknowledges that money damages
would be both incalculable and an insufficient remedy for a breach of Section 7,
8, 9, 10 or 11 by the Employee and that any such breach would cause the Company
irreparable harm. Accordingly, the Company, in addition to any other remedies at
law or in equity it may have, shall be entitled, without the requirement of
posting of bond or other security, to equitable relief, including injunctive
relief and specific performance, in connection with a breach of Section 7, 8, 9,
10 or 11 by the Employee.

                                       13
<PAGE>

          (g) Complete Agreement. The provisions of this Agreement constitute
the entire and complete understanding and agreement between the parties with
respect to the subject matter hereof, and supersedes all prior and
contemporaneous oral and written agreements, representations and understandings
between the Employee and the Company, or its affiliates and subsidiaries, which
are hereby terminated. Other than expressly set forth herein, the Employee and
the Company acknowledge and represent that there are no other promises, terms,
conditions or representations (oral or written) regarding any matter relevant
hereto. This Agreement may be executed in two or more counterparts.

          (h) Mediation; Arbitration. (i) The Company and the Employee shall
mediate any claim or controversy arising out of or relating to this Agreement or
any breach thereof if either of them requests mediation and gives written notice
to the other (the "Mediation Notice"). Any notice given pursuant to the
preceding sentence shall include a brief statement of the claim or controversy.
If the Company and the Employee do not resolve the claim or controversy within
five (5) days after the date of the Mediation Notice, the Company and the
Employee shall then use reasonable efforts to agree upon an independent
mediator. If the Company and the Employee do not agree upon an independent
mediator within ten (10) days after the date of the Mediation Notice, either
party may request that JAMS/Endispute ("JAMS"), or a similar mediation service
of a similar national scope if JAMS no longer then exists, appoint an
independent mediator. The Company and the Employee shall share the costs of
mediation equally and shall pay such costs in advance upon the request of the
mediator or any party. Within ten (10) days after selection of the mediator, the
mediator shall set the mediation. If the Company and the Employee do not resolve
the dispute within thirty (30) days after the date of the Mediation Notice, the
dispute shall be decided by arbitration as set forth below.

               (ii) Any claim or controversy arising out of or relating to this
Agreement or any breach thereof shall be settled by arbitration if such claim or
controversy is not settled pursuant to mediation as set forth above. The venue
for any such arbitration shall be Dallas, Texas, or such other location as the
parties may mutually agree. Except as expressly set forth herein, all
arbitration proceedings under this Section 13(h)(ii) shall be undertaken in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association (the "AAA") then in force. Only individuals who are (i) lawyers
engaged full-time in the practice of law and (ii) on the AAA register of
arbitrators shall be selected as an arbitrator. There shall be one arbitrator
who shall be chosen in accordance with the rules of the AAA. Within twenty (20)
days of the conclusion of the arbitration hearing, the arbitrator shall prepare
written findings of fact and conclusions of law. Judgment on the written award
may be entered and enforced in any court of competent jurisdiction. It is
mutually agreed that the written decision of the arbitrator shall be valid,
binding, final and non-appealable; provided however, that the parties hereto
agree that the arbitrator shall not be empowered to award punitive damages
against any party to such arbitration. The arbitrator shall require the
non-prevailing party

                                       14
<PAGE>

to pay the arbitrator's full fees and expenses or, if in the arbitrator's
opinion there is no prevailing party, the arbitrator's fees and expenses will be
borne equally by the parties thereto. In the event action is brought to enforce
the provisions of this Agreement pursuant to this Section 13(h)(ii), the
non-prevailing parties shall be required to pay the reasonable attorneys' fees
and expenses of the prevailing parties, except that if in the opinion of the
court or arbitrator deciding such action there is no prevailing party, each
party shall pay its own attorneys' fees and expenses.

          (i) Survival. Sections 4, 5, 6, 7, 8, 9, 10, 11, 12 and 13 of this
Agreement shall survive the termination of this Agreement.

          (j) Choice of Law. This Agreement and the rights and obligations
hereunder shall be governed by and construed in accordance with the laws of the
State of Texas without reference to principles of conflicts of law of Texas or
any other jurisdiction, and, where applicable, the laws of the United States.

          (k) Amendment. This Agreement may not be amended or modified at any
time except by a written instrument approved by the Board and executed by the
Company and the Employee.

          (l) Employee Acknowledgment. The Employee acknowledges that he has
read and understands this Agreement, is fully aware of its legal effect, has not
acted in reliance upon any representations or promises made by the Company other
than those contained in writing herein, and has entered into this Agreement
freely based on his own judgment.

                                       15
<PAGE>

     IN WITNESS WHEREOF, the Employee has hereunto set the Employee's hand and,
pursuant to the authorization from the Board, the Company has caused this
Agreement to be executed in its name on its behalf, as of the day of , 2002.

                                        EMPLOYEE

                                        -----------------------------------
                                        Philip J. Ragona

                                        ATRIUM CORPORATION

                                        By:
                                           --------------------------------
                                        Name:
                                             ------------------------------
                                        Title:
                                              -----------------------------

                                        ATRIUM COMPANIES, INC.

                                        By:
                                           --------------------------------
                                        Name:
                                             ------------------------------
                                        Title:
                                              -----------------------------

                                       16
<PAGE>

                                   SCHEDULE A
                   TO PHILIP J. RAGONA'S EMPLOYMENT AGREEMENT

      A. The Employee shall be entitled to a target bonus (the "Incentive
Bonus") for the period beginning September 30, 2002 and ending on December 31,
2002, in an amount of $25,000 and for the period beginning on January 1, 2003
and ending at the end of the Employment Period, in an amount of $100,000 per
annum as follows:

      B. 75% of the Employee's Incentive Bonus ("EBITDA Bonus") shall be payable
based upon achievement of the following targets:

      (i)   If the Company achieves 80% of its budgeted EBITDA, the Employee
            shall receive 50% of the EBITDA Bonus.

      (ii)  If the Company achieves 90% of its budgeted EBITDA, the Employee
            shall receive 75% of the EBITDA Bonus.

      (iii) If the Company achieves 100% of its budgeted EBITDA, the Employee
            shall receive 100% of the EBITDA Bonus.

      (iv)  If the Company achieves 110% of its budgeted EBITDA, the Employee
            shall receive 125% of the EBITDA Bonus.

      (v)   The EBITDA Bonus will be paid on a sliding scale on a pro rated
            basis. For example, if 95% of budgeted EBITDA is achieved, the
            Employee is entitled to 87.5% of the EBITDA Bonus. No EBITDA Bonus
            will be paid if the Company achieves less than 80% of the budgeted
            EBITDA and in no event will the Company pay in excess of 125% of the
            EBITDA Bonus.

      (vi)  For purposes of the EBITDA Bonus, EBITDA shall be defined as
            earnings from operations before interest, taxes, depreciation,
            amortization and extraordinary gains or losses of the Company and
            all of its subsidiaries on a consolidated basis. Budgeted EBITDA
            shall be such amount as is set by the Chief Executive and Board of
            Directors annually as adjusted from time to time to reflect
            acquisitions/divestitures by the Company or its subsidiaries.

      C. 25% of the Employee's Incentive Bonus shall be payable based upon
achievement of management objectives to be set from year to year by the Chief
Executive.

                                       1
<PAGE>

                                   SCHEDULE B
                   TO PHILIP J. RAGONA'S EMPLOYMENT AGREEMENT

Stock Options:

Effective as of September 30, 2002, the Employee has been granted options to
purchase 300 shares of common stock (the "Common Stock") of the Company pursuant
to the D and W Holdings, Inc. 1998 Stock Option Plan (the "Plan"). The options
will vest pro-rata over a five-year period and will have an exercise price of
$1,300.00 per share.<PAGE>
                                                                   EXHIBIT 10.46

                            INDEMNIFICATION AGREEMENT

      This INDEMNIFICATION AGREEMENT (the "Agreement") is made and entered into
as of this 30th day of September, 2002, by and between Atrium Corporation, a
Delaware corporation and each entity listed on Schedule A hereto, as the same
may be amended, modified or supplemented from time to time or at any time, (each
a "Company" and, collectively, including any successors thereto, the
"Companies"), and Philip J. Ragona ("Indemnitee").

                                    RECITALS:

A.          Competent and experienced persons are reluctant to serve or to
continue to serve corporations as directors, officers or in other capacities
unless they are provided with adequate protection through insurance or
indemnification (or both) against claims and actions against them arising out of
their service to and activities on behalf of those corporations.

B.          The current uncertainties relating to the availability of adequate
insurance for directors and officers have increased the difficulty for
corporations to attract and retain competent and experienced persons.

C.          The Boards of Directors of each of the Companies (the "Boards") have
determined that the continuation of present trends in litigation will make it
more difficult to attract and retain competent and experienced persons, that
this situation is detrimental to the best interests of the Companies'
stockholders, and that the Companies should act to assure their directors and
officers that there will be increased certainty of adequate protection in the
future.

D.          It is reasonable, prudent and necessary for the Companies to
obligate themselves contractually to indemnify their directors and officers to
the fullest extent permitted by applicable law in order to induce them to serve
or continue to serve the Companies.

E.          Indemnitee is willing to serve and continue to serve the Companies
on the condition that he be indemnified to the fullest extent permitted by law.

F.          Concurrently with the execution of this Agreement, Indemnitee is
agreeing to serve or to continue to serve as a director or officer of the
Companies.

<PAGE>

                                   AGREEMENTS:

      NOW, THEREFORE, in consideration of the foregoing premises, Indemnitee's
agreement to serve or continue to serve as a director or officer of the
Companies, and the covenants contained in this Agreement, the Companies and
Indemnitee hereby covenant and agree as follows:

      1.    Certain Definitions:

            For purposes of this Agreement:

            a.    Affiliate: shall mean any Person that directly, or indirectly,
                  through one or more intermediaries, controls, is controlled
                  by, or is under common control with the Person specified.

            b.    Change of Control: shall mean the occurrence of any of the
                  following events:

                  (i)   The acquisition after the date of this Agreement by any
                        individual, entity, or group (within the meaning of
                        Section 13(d)(3) or 14(d)(2) of the Securities Exchange
                        Act of 1934, as amended (the "Exchange Act")) (a
                        "Person") of beneficial ownership (within the meaning of
                        Rule 13d-3 promulgated under the Exchange Act) of 50% or
                        more of either (x) the then outstanding shares of common
                        stock of the relevant Company (the "Outstanding Company
                        Common Stock") or (y) the combined voting power of the
                        then outstanding voting securities of the relevant
                        Company entitled to vote generally in the election of
                        directors (the "Outstanding Company Voting Securities");
                        provided, however, that for purposes of this paragraph
                        (i), the following acquisitions shall not constitute a
                        Change of Control: (A) any acquisition directly from the
                        relevant Company or any Subsidiary thereof, (B) any
                        acquisition by the relevant Company or any Subsidiary
                        thereof, (C) any acquisition by any employee benefit
                        plan (or related trust) sponsored or maintained by the
                        relevant Company or any Subsidiary of the relevant
                        Company, (D) any acquisition by one or more members of
                        the Investor Group, or (E) any acquisition by any entity
                        or its security holders pursuant to a transaction which
                        complies with clauses (A), (B), and (C) of paragraph
                        (iii) below; or

                                       2
<PAGE>

                  (ii)  Individuals who, as of the date of this Agreement,
                        constitute the Boards (the "Incumbent Boards") cease for
                        any reason to constitute at least a majority of the
                        relevant Board; provided, however, that any individual
                        becoming a director subsequent to the date of this
                        Agreement (A) who is appointed by a member of the
                        Investor Group, or (B) whose election, or nomination for
                        election by the relevant Company's stockholders, was
                        approved by a vote of at least a majority of the
                        directors then comprising the relevant Incumbent Board,
                        shall be considered as though such individual were a
                        member of the relevant Incumbent Board, but excluding,
                        for this purpose, any such individual whose initial
                        assumption of office occurs as a result of an actual or
                        threatened election contest with respect to the election
                        or removal of directors or other actual or threatened
                        solicitation of proxies or consents by or on behalf of a
                        Person other than the relevant Board; or

                  (iii) Consummation of a reorganization, merger, or
                        consolidation or sale or other disposition of all or
                        substantially all of the assets of the relevant Company
                        or an acquisition of assets of another entity (a
                        "Business Combination"), other than a Business
                        Combination with one or more members of the Investor
                        Group, in each case, unless, immediately following such
                        Business Combination, (A) all or substantially all of
                        the individuals and entities who were the beneficial
                        owners, respectively, of the Outstanding Company Common
                        Stock and Outstanding Company Voting Securities
                        immediately prior to such Business Combination
                        beneficially own, directly or indirectly, more than 50%
                        of, respectively, the then outstanding shares of common
                        stock or other equity interests and the combined voting
                        power of the then outstanding voting securities entitled
                        to vote generally in the election of directors (or
                        similar governing body), as the case may be, of the
                        entity resulting from such Business Combination
                        (including, without limitation, an entity which as a
                        result of such transaction owns the relevant Company or
                        all or substantially all of the relevant Company's
                        assets either directly or through one or more
                        Subsidiaries) in proportions not materially different
                        from their ownership, immediately prior to such Business
                        Combination, of the Outstanding

                                       3
<PAGE>

                        Company Common Stock and Outstanding Company Voting
                        Securities, as the case may be, (B) no Person (excluding
                        any entity resulting from such Business Combination or
                        any employee benefit plan (or related trust) of the
                        relevant Company or such entity resulting from such
                        Business Combination or any Subsidiary of either of
                        them) beneficially owns, directly or indirectly, 20% or
                        more of, respectively, the then outstanding shares of
                        common stock of the entity resulting from such Business
                        Combination or the combined voting power of the then
                        outstanding voting securities of such entity except to
                        the extent that such ownership existed prior to the
                        Business Combination, and (C) at least a majority of the
                        members of the board of directors (or similar governing
                        body) of the entity resulting from such Business
                        Combination were members of the Incumbent Board at the
                        time of the execution of the initial agreement, or of
                        the action of the relevant Board, providing for such
                        Business Combination; or

                  (iv)  Approval by the stockholders of the relevant Company of
                        a complete liquidation or dissolution of such Company.

            c.    Claim: shall mean any threatened, pending, or completed
                  action, suit or proceeding (including, without limitation,
                  securities laws actions, suits and proceedings and also any
                  cross claim or counterclaim in any action, suit or
                  proceeding), whether civil, criminal, arbitral, administrative
                  or investigative in nature, or any inquiry or investigation
                  (including discovery), whether conducted by the Companies or
                  any other Person, that Indemnitee in good faith believes might
                  lead to the institution of any action, suit or proceeding.

            d.    Expenses: shall mean all costs, expenses (including attorneys'
                  and expert witnesses' fees) and obligations paid or incurred
                  in connection with investigating, defending (including
                  affirmative defenses and counterclaims), being a witness in,
                  or participating in (including on appeal), or preparing to
                  defend, be a witness in, or participate in, any Claim relating
                  to any Indemnifiable Event.

                                       4
<PAGE>

            e.    Indemnifiable Event: shall mean any actual or alleged act,
                  omission, statement, misstatement, event or occurrence related
                  to the fact that Indemnitee is or was a director, officer,
                  agent or fiduciary of any of the Companies, or is or was
                  serving at the request of any of the Companies as a director,
                  officer, trustee, agent or fiduciary of another corporation,
                  partnership, joint venture, employee benefit plan, trust, or
                  other enterprise, or by reason of any actual or alleged thing
                  done or not done by Indemnitee in any such capacity. For
                  purposes of this Agreement, the Companies agree that
                  Indemnitee's service on behalf of or with respect to any
                  Subsidiary or employee benefits plan of any of the Companies
                  or any Subsidiary of any of the Companies shall be deemed to
                  be at the request of such Company.

            f.    Indemnifiable Liabilities: shall mean all Expenses and all
                  other liabilities, damages (including, without limitation,
                  punitive, exemplary, and the multiplied portion of any
                  damages), judgments, payments, fines, penalties, amounts paid
                  by Indemnitee in settlement solely with the Companies' consent
                  (such consent not to be unreasonably withheld), and awards
                  paid or incurred that arise out of, or in any way relate to,
                  any Indemnifiable Event.

            g.    Investor Group: shall include Ardshiel, Inc., Ardatrium
                  L.L.C., Arddoor L.L.C., Ardwing L.LC., Wing Partners L.L.C.,
                  GE Investment Private Placement Partners II, a Limited
                  Partnership and each of their respective Affiliates.

            h.    Potential Change of Control: shall be deemed to have occurred
                  if (i) any of the Companies enters into an agreement, the
                  consummation of which would result in the occurrence of a
                  Change of Control of any of the Companies; (ii) any Person
                  (including any of the Companies) commences a tender offer
                  that, if consummated, would constitute a Change of Control of
                  any of the Companies; or (iii) any of the Boards adopts a
                  resolution to the effect that, for purposes of this Agreement,
                  a Potential Change of Control of any of the Companies has
                  occurred.

            i.    Reviewing Party: shall mean (i) a member or members of the
                  relevant Board who are not parties to the particular Claim for
                  which Indemnitee is seeking indemnification or (ii) if a
                  Change of Control of any of the Companies has occurred and
                  Indemnitee so requests, or if the members of the relevant
                  Board so elect, or if all of the members of the relevant Board
                  are parties to such Claim, Special Counsel.

                                       5
<PAGE>

            j.    Special Counsel: shall mean special, independent legal counsel
                  selected by Indemnitee and approved by the Companies (which
                  approval shall not be unreasonably withheld), and who has not
                  otherwise performed material services for any of the Companies
                  or for Indemnitee within the last three years (other than as
                  Special Counsel under this Agreement or similar agreements).

            k.    Subsidiary: shall mean, with respect to any Person, any
                  corporation or other entity of which a majority of the voting
                  power of the voting equity securities or equity interest is
                  owned, directly or indirectly, by that Person.

2.          Indemnification and Expense Advancement.

            a.    The Companies shall, jointly and severally, indemnify
                  Indemnitee and hold Indemnitee harmless to the fullest extent
                  permitted by Section 145 of the Delaware General Corporation
                  Law, as soon as practicable but in any event no later than 30
                  days after written demand is presented to the Companies, from
                  and against any and all Indemnifiable Liabilities.
                  Notwithstanding the foregoing, the obligations of the
                  Companies under this Section 2(a) shall be subject to the
                  condition that the Reviewing Party shall not have determined
                  (in a written opinion in any case in which Special Counsel is
                  involved) that Indemnitee is not permitted to be indemnified
                  under applicable law. Nothing contained in this Agreement
                  shall require any determination under this Section 2(a) to be
                  made by the Reviewing Party prior to the disposition or
                  conclusion of the Claim against the Indemnitee.

            b.    If so requested by Indemnitee, the Companies shall advance to
                  Indemnitee all reasonable Expenses incurred by Indemnitee to
                  the fullest extent permitted by law (or, if applicable,
                  reimburse Indemnitee for any and all reasonable Expenses
                  incurred by Indemnitee and previously paid by Indemnitee)
                  within ten (10) business days after such request (an "Expense
                  Advance"). The Companies shall be obligated from time to time
                  at the request of Indemnitee to make or pay an Expense Advance
                  in advance of the final disposition or conclusion of any
                  Claim. In connection with any request for an Expense Advance,
                  if requested by the Companies, Indemnitee or Indemnitee's
                  counsel shall submit an affidavit stating that the Expenses to
                  which the Expense Advances relate are reasonable. Any dispute
                  as to the reasonableness of any Expense shall not delay an
                  Expense

                                       6
<PAGE>

                  Advance by the Companies. If, when, and to the extent that the
                  Reviewing Party determines that (i) Indemnitee would not be
                  permitted to be indemnified with respect to a Claim under
                  applicable law or (ii) the amount of the Expense Advance was
                  not reasonable, the Companies shall be entitled to be
                  reimbursed by Indemnitee and Indemnitee hereby agrees to
                  reimburse the Companies without interest (which agreement
                  shall be an unsecured obligation of Indemnitee) for (x) all
                  related Expense Advances theretofore made or paid by the
                  Companies in the event that it is determined that
                  indemnification would not be permitted or (y) the excessive
                  portion of any Expense Advances in the event that it is
                  determined that such Expenses Advances were unreasonable;
                  provided, however, that if Indemnitee has commenced legal
                  proceedings in a court of competent jurisdiction to secure a
                  determination that Indemnitee could be indemnified under
                  applicable law, or that the Expense Advances were reasonable,
                  any determination made by the Reviewing Party that Indemnitee
                  would not be permitted to be indemnified under applicable law
                  or that the Expense Advances were unreasonable shall not be
                  binding, and the Companies shall be obligated to continue to
                  make Expense Advances, until a final judicial determination is
                  made with respect thereto (as to which all rights of appeal
                  therefrom have been exhausted or lapsed), which determination
                  shall be conclusive and binding. If there has been a Change of
                  Control of any of the Companies, the Reviewing Party shall be
                  Special Counsel, if Indemnitee so requests. If there has been
                  no determination by the Reviewing Party or if the Reviewing
                  Party determines that Indemnitee substantively is not
                  permitted to be indemnified in whole or part under applicable
                  law or that any Expense Advances were unreasonable, Indemnitee
                  shall have the right to commence litigation in any court in
                  the states of Texas, New York or Delaware having subject
                  matter jurisdiction thereof and in which venue is proper
                  seeking an initial determination by the court or challenging
                  any such determination by the Reviewing Party or any aspect
                  thereof, and the Companies hereby consent to service of
                  process and to appear in any such proceeding. Any
                  determination by the Reviewing Party otherwise shall be
                  conclusive and binding on the Companies and Indemnitee.

            c.    Nothing in this Agreement, however, shall require the
                  Companies to indemnify Indemnitee with respect to any Claim
                  initiated by Indemnitee, other than a Claim solely seeking
                  enforcement of the Companies' indemnification obligations to
                  Indemnitee or a Claim authorized by the relevant Board.

                                       7
<PAGE>

3.          Change of Control. The Companies agree that, if there is a Potential
Change of Control or a Change of Control of any of the Companies and if
Indemnitee requests in writing that Special Counsel be the Reviewing Party, then
Special Counsel shall be the Reviewing Party. In such a case, the Companies
agree not to request or seek reimbursement from Indemnitee of any
indemnification payment or Expense Advances unless Special Counsel has rendered
its written opinion to the Companies and Indemnitee that the Companies were not
or are not permitted under applicable law to indemnify Indemnitee or that such
Expense Advances were unreasonable. However, if Indemnitee has commenced legal
proceedings in a court of competent jurisdiction to secure a determination that
Indemnitee could be indemnified under applicable law or that the Expense
Advances were reasonable, any determination made by Special Counsel that
Indemnitee would not be permitted to be indemnified under applicable law or that
the Expense Advances were unreasonable shall not be binding, and the Companies
shall be obligated to continue to make Expense Advances, until a final judicial
determination is made with respect thereto (as to which all rights of appeal
therefore have been exhausted or lapsed), which determination shall be
conclusive and binding. The Companies agree to pay all reasonable fees of
Special Counsel and to indemnify Special Counsel against any and all expenses
(including attorneys' fees), claims, liabilities, and damages arising out of or
relating to this Agreement or Special Counsel's engagement pursuant hereto.

4.          Establishment of Trust. In the event of a Potential Change of
Control or a Change of Control of any of the Companies, the Companies shall,
upon written request by Indemnitee, create a trust for the benefit of Indemnitee
(the "Trust") and from time to time upon written request of Indemnitee shall
fund the Trust in an amount equal to all Indemnifiable Liabilities reasonably
anticipated at the time to be incurred in connection with any Claim. The amount
to be deposited in the Trust pursuant to the foregoing funding obligation shall
be determined by the Reviewing Party. The terms of the Trust shall provide that,
upon a Change of Control of any of the Companies, (i) the Trust shall not be
revoked or the principal thereof invaded, without the written consent of
Indemnitee; (ii) the trustee of the Trust shall advance, within ten business
days of a request by Indemnitee, any and all reasonable Expenses (any
determination concerning the reasonableness of the Expenses shall be made by the
Reviewing Party) to Indemnitee (and Indemnitee hereby agrees to reimburse the
Trust under the circumstances in which Indemnitee would be required to reimburse
the Companies for Expense Advances under this Agreement), (iii) the Trust shall
continue to be funded by the Company in accordance with the funding obligation
set forth above; (iv) the trustee of the Trust shall promptly pay to Indemnitee
all amounts for which Indemnitee shall be entitled to indemnification pursuant
to this Agreement; and (v) all unexpended funds in the Trust shall revert to the
Companies upon a final determination by the Reviewing Party or a court of
competent jurisdiction, as the case may be, that Indemnitee has been fully
indemnified under the terms of this Agreement. The trustee of the Trust shall be
chosen by Indemnitee, and shall be a financial institution that is not
affiliated with Indemnitee. Nothing in this Section 4 shall relieve the
Companies of any of their obligations under this Agreement.

                                       8
<PAGE>

5.          Indemnification for Additional Expenses. The Companies shall
indemnify Indemnitee against any and all costs and expenses (including
attorneys' and expert witnesses' fees) and, if requested by Indemnitee, shall
(within two business days of that request) advance those costs and expenses to
Indemnitee that are incurred by Indemnitee if Indemnitee, whether by formal
proceedings or through demand and negotiation without formal proceedings: (a)
seeks to enforce Indemnitee's rights under this Agreement, (b) seeks to enforce
Indemnitee's rights to expense advancement or indemnification under any other
agreement or provision of any of the Companies' Certificate of Incorporation
(the "Certificate of Incorporation") or Bylaws (the "Bylaws") now or hereafter
in effect relating to Claims for Indemnifiable Events, or (c) seeks recovery
under any directors' and officers' liability insurance policies maintained by
the Companies, in each case regardless of whether Indemnitee ultimately
prevails; provided that a court of competent jurisdiction has not found
Indemnitee's claim for indemnification or expense advancements under the
foregoing clauses (a), (b) or (c) to be frivolous, presented for an improper
purpose, without evidentiary support, or otherwise sanctionable under Federal
Rule of Civil Procedure No. 11 or an analogous rule or law, and provided
further, that if a court makes such a finding, Indemnitee shall reimburse the
Companies for all amounts previously advanced to Indemnitee pursuant to this
Section 5. Subject to the provisos contained in the preceding sentence, the
Companies waive, to the fullest extent permitted by law, any and all rights that
they may have to recover its costs and expenses from Indemnitee.

6.          Partial Indemnity. If Indemnitee is entitled under any provision of
this Agreement to indemnification by the Companies for some, but not all, of
Indemnitee's Indemnifiable Liabilities, the Companies shall indemnify Indemnitee
for the portion thereof to which Indemnitee is entitled.

7.          Contribution.

            a.    Contribution Payment. To the extent the indemnification
                  provided for under any provision of this Agreement is
                  determined (in the manner herein above provided) not to be
                  permitted under applicable law, the Companies, in lieu of
                  indemnifying Indemnitee, shall, to the extent permitted by
                  law, contribute to the amount of any and all Indemnifiable
                  Liabilities incurred or paid by Indemnitee for which such
                  indemnification is not permitted. The amount the Companies
                  contribute shall be in such proportion as is appropriate to
                  reflect the relative fault of Indemnitee, on the one hand, and
                  of the Companies and any and all other parties (including
                  officers and directors of the Companies other than Indemnitee)
                  who may be at fault (collectively, including the Companies,
                  the "Third Parties"), on the other hand.

                                       9
<PAGE>

            b.    Relative Fault. The relative fault of the Third Parties and
                  the Indemnitee shall be determined (i) by reference to the
                  relative fault of Indemnitee as determined by the court or
                  other governmental agency or (ii) to the extent such court or
                  other governmental agency does not apportion relative fault,
                  by the Reviewing Party after giving effect to, among other
                  things, the relative intent, knowledge, access to information,
                  and opportunity to prevent or correct the relevant events, of
                  each party, and other relevant equitable considerations.

            c.    The Companies and Indemnitee agree that it would not be just
                  and equitable if contribution were determined by pro rata
                  allocation or by any other method of allocation that does not
                  take account of the equitable considerations referred to in
                  this Section 7(b).

8.          Assumption of Defense by the Companies. Except as otherwise provided
below, any of the Companies, jointly with any other indemnifying party similarly
notified, will be entitled to assume the defense of any Claim, with counsel
reasonably satisfactory to Indemnitee. Indemnitee shall have the right to employ
his own counsel in connection with such Claim but the fees and expenses of such
counsel incurred after notice from any of the Companies of its assumption of the
defense thereof shall be at the expense of Indemnitee unless (i) the employment
of counsel by Indemnitee has been authorized by the Companies, (ii) Indemnitee
shall have reasonably concluded that there may be a conflict of interest between
the Companies and Indemnitee in the conduct of such defense or (iii) the
Companies shall not in fact have employed counsel to assume the defense of such
action, in each of which cases the fees and expenses of Indemnitee's counsel
shall be subject to reimbursement in accordance with the terms of this
Agreement. The Companies shall not be entitled to assume Indemnitee's defense of
any Claim brought by the Companies or as to which Indemnitee shall have reached
the conclusion provided for in clause (ii) above.

9.          Burden of Proof. In connection with any determination by the
Reviewing Party or otherwise as to whether Indemnitee is entitled to be
indemnified under any provision of this Agreement or to receive contribution
pursuant to Section 7 of this Agreement, to the extent permitted by law the
burden of proof shall be on the Companies to establish that Indemnitee is not so
entitled.

10.          No Presumption. For purposes of this Agreement, the termination of
any Claim by judgment, order, settlement (whether with or without court
approval), or conviction, or upon a plea of nolo contendere, or its equivalent,
or an entry of an order of probation prior to judgment shall not create a
presumption (other than any presumption arising as a matter of law that the
parties may not contractually agree to disregard) that Indemnitee did not meet
any particular standard of conduct or have any particular belief or that a court
has determined that indemnification is not permitted by applicable law.

                                       10
<PAGE>

11.          Non-exclusivity. The rights of Indemnitee hereunder shall be in
addition to any other rights Indemnitee may have under the Bylaws or Certificate
of Incorporation or the Delaware General Corporation Law or otherwise. To the
extent that a change in the Delaware General Corporation Law (whether by statute
or judicial decision) permits greater indemnification by agreement than would be
afforded currently under this Agreement, it is the intent of the parties hereto
that Indemnitee shall enjoy by this Agreement the greater benefits so afforded
by that change. Indemnitee's rights under this Agreement shall not be diminished
by any amendment to the Certificate of Incorporation or Bylaws, or of any other
agreement or instrument to which Indemnitee is not a party, and shall not
diminish any other rights that Indemnitee now or in the future has against the
Companies.

12.          Liability Insurance. Except as otherwise agreed to by the Companies
and Indemnitee in a written agreement, to the extent the Companies maintain an
insurance policy or policies providing directors' and officers' liability
insurance, Indemnitee shall be covered by that policy or those policies, in
accordance with its or their terms, to the maximum extent of the coverage
available for any Company director or officer.

13.          Period of Limitations. No action, lawsuit, or proceeding may be
brought against Indemnitee or Indemnitee's spouse, heirs, executors, or personal
or legal representatives, nor may any cause of action be asserted in any such
action, lawsuit or proceeding, by or on behalf of the Companies, after the
expiration of two years after the statute of limitations commences with respect
to Indemnitee's act or omission that gave rise to the action, lawsuit,
proceeding or cause of action; provided, however, that, if any shorter period of
limitations is otherwise applicable to any such action, lawsuit, proceeding or
cause of action, the shorter period shall govern.

14.          Amendments. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by both of the parties
hereto. No waiver of any provision of this Agreement shall be effective unless
in a writing signed by the party granting the waiver. No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of any
other provisions hereof (whether or not similar) nor shall that waiver
constitute a continuing waiver.

15.          Other Sources. Indemnitee shall not be required to exercise any
rights that Indemnitee may have against any other Person (for example, under an
insurance policy) before Indemnitee enforces his rights under this Agreement.
However, to the extent the Companies actually indemnify Indemnitee or advances
him Expenses, the Companies shall be subrogated to the rights of Indemnitee and
shall be entitled to enforce any such rights which Indemnitee may have against
third parties. Indemnitee shall assist the Companies in enforcing those rights
if it pays his costs and expenses of doing so. If Indemnitee is actually
indemnified or advanced Expenses by any third party, then, for so long as
Indemnitee is not required to disgorge the amounts so received, to that extent
the

                                       11
<PAGE>

Companies shall be relieved of their obligation to indemnify Indemnitee or
advance Indemnitee Expenses.

16.          Binding Effect. This Agreement shall be binding upon and inure to
the benefit of and be enforceable by the parties hereto and their respective
successors, assigns (including any direct or indirect successor by merger or
consolidation), spouses, heirs and personal and legal representatives. This
Agreement shall continue in effect regardless of whether Indemnitee continues to
serve as an officer or director of the Companies or another enterprise at the
Companies' request.

17.          Severability. If any provision of this Agreement is held to be
illegal, invalid, or unenforceable under present or future laws effective during
the term hereof, that provision shall be fully severable; this Agreement shall
be construed and enforced as if that illegal, invalid, or unenforceable
provision had never comprised a part hereof; and the remaining provisions 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 that illegal, invalid, or unenforceable provision, there
shall be added automatically as a part of this Agreement a provision as similar
in terms to the illegal, invalid, or unenforceable provision as may be possible
and be legal, valid, and enforceable.

18.          Governing Law. This Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of Delaware applicable to
contracts made and to be performed in that state without giving effect to the
principles of conflicts of laws.

19.          Headings. The headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

20.          Notices. Whenever this Agreement requires or permits notice to be
given by one party to the other, such notice must be in writing to be effective
and shall be deemed delivered and received by the party to whom it is sent upon
actual receipt (by any means) of such notice. Receipt of a notice by the
Secretary of a Company shall be deemed receipt of such notice by such Company.

21.          Complete Agreement. This Agreement constitutes the complete
understanding and agreement among the parties with respect to the subject matter
hereof and supersedes all prior agreements and understandings between the
parties with respect to the subject matter hereof, other than any
indemnification rights that Indemnitee may enjoy under the Certificate of
Incorporation, the Bylaws or the Delaware General Corporation Law.

22.          Effective Date. This Agreement shall be effective as of September
30, 2002.

                                       12
<PAGE>

23.          Counterparts. This Agreement may be executed in two or more
counterparts, all of which were taken together shall be deemed one and the same
instrument.

      EXECUTED as of the date first written above.

                                        ATRIUM CORPORATION

                                        By:
                                           -------------------------------------
                                           Jeff L. Hull
                                           President and Chief Executive Officer

                                        ATRIUM COMPANIES, INC.

                                        By:
                                           -------------------------------------
                                           Jeff L. Hull
                                           President and Chief Executive Officer

                                        INDEMNITEE

                                        ----------------------------------------
                                        Philip J. Ragona

                                       13
<PAGE>

                                   SCHEDULE A

Atrium Companies, Inc., a Delaware corporation

                                       14

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