Document:

<PAGE>

                                                                   Exhibit 10.47

                                ESCROW AGREEMENT

         This ESCROW AGREEMENT (this "Agreement") is made and entered into as of
this 25th day of October, 2000 by and among ATRIUM COMPANIES, INC., a Delaware
corporation ("Buyer"), THE ELLISON COMPANY, INC., a North Carolina corporation
("Seller"), and BANK ONE, TEXAS, N.A., as escrow agent (the "Escrow Agent").

                                    RECITALS:

         WHEREAS, pursuant to a Second Amended and Restated Purchase Agreement,
dated as of October 17, 2000 (the "Purchase Agreement"), by and among D and W
Holdings, Inc., Buyer and Seller, Buyer has agreed to purchase from Seller and
Seller has agreed to sell and transfer to Buyer (the "Acquisition"), all of the
issued and outstanding shares of capital stock of VES, Inc., a Delaware
corporation doing business in North Carolina as Ellison Extrusions Systems, Inc.
("EES"), and substantially all of the operating assets of Seller's Windows and
Doors Division, on the terms and subject to the conditions set forth in the
Purchase Agreement; and

         WHEREAS, as an inducement for Buyer to enter into the Purchase
Agreement and as a condition precedent to the consummation of the Acquisition,
Buyer has required that certain amounts be deposited into escrow accounts,
subject to the terms and conditions set forth herein; and

         WHEREAS, Seller has determined to enter into this Agreement and to
establish the escrow arrangement required by Buyer on the terms and conditions
set forth herein; and

         WHEREAS, Buyer, Seller and the Escrow Agent desire to set forth the
terms and conditions pursuant to which the Escrow Fund (defined below) and the
Payment Fund (defined below) will be held by the Escrow Agent and disbursed to
Buyer and/or Seller, as the case may be.

         NOW, THEREFORE, in consideration of the mutual premises, agreements and
covenants set forth herein and in the Purchase Agreement, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties hereto (the "Parties"), intending legally to be bound,
hereby agree as follows:

<PAGE>

                                    ARTICLE 1

                                   DEFINITIONS
                                   -----------

         All capitalized terms not otherwise defined herein and defined in the
Purchase Agreement shall have the meanings attributed to them in the Purchase
Agreement.

                                   ARTICLE 2

                              TERM OF THE AGREEMENT
                              ---------------------

         The term of this Agreement shall commence on the date of this Agreement
and shall continue in effect until the distribution in full of the Escrow Fund
and the Payment Fund pursuant to the terms and conditions set forth herein (the
"Term").

                                    ARTICLE 3

                      ESTABLISHMENT OF THE ESCROW FUND AND
                      ------------------------------------
                                THE PAYMENT FUND
                                ----------------

         3.01 DELIVERY OF THE ESCROW FUND AND THE PAYMENT FUND; RECEIPT BY
ESCROW AGENT.

                  (a) On the Closing Date, Buyer, on behalf and at the direction
of Seller, shall, in accordance with Section 2.2 of the Purchase Agreement,
deliver to the Escrow Agent (i) cash in the aggregate amount of $7,000,000 (the
"Escrow Fund"), which shall be deposited in a segregated account (the "Escrow
Account"), and (ii) cash in the aggregate amount of $90,999,992 (the "Payment
Fund"), which shall be deposited in a segregated account (the "Payment
Account"). The Escrow Fund shall be invested and reinvested as provided in
Section 3.02 below. Any interest that accrues on and any gains on any portion of
the Escrow Fund from such investments and reinvestments (the "Additional Escrow
Amount") shall not be considered part of the Escrow Fund, and shall be deposited
by the Escrow Agent in a segregated account (the "Additional Escrow Account") in
the name of Seller, which account shall be under the sole control and dominion
of Seller and paid out at the direction of Seller, except as set forth in
Section 6.02 hereof.

                  (b) The Escrow Agent agrees to hold and dispose of the Escrow
Fund, the Payment Fund and the Additional Escrow Account in accordance with the
terms and conditions of this Agreement. The Parties acknowledge and agree that
the Escrow Fund and the Payment Fund may not be insured by the Federal Deposit
Insurance Corporation. The Escrow Account and the Payment Account shall be under
the sole control and dominion of the Escrow Agent, subject to the terms of this
Agreement, and shall require an authorized signature of the Escrow Agent in
order to make withdrawals therefrom.

                                       2
<PAGE>

         3.02 INVESTMENT OF THE ESCROW FUND.

                  (a) The Escrow Fund shall be invested, at the written
direction of Seller in any of the following (collectively, the "Permitted
Investments"): (i) United States Treasury Bills maturing within ninety-one (91)
days of the date of purchase; (ii) demand deposit accounts, money market deposit
accounts and certificates of deposit with a term not greater than ninety (90)
days with a United States depository having a reported capital and surplus of
not less than $50 million; (iii) commercial paper which is rated on the date of
purchase in one of the two highest rating categories by both Standard & Poor's
Ratings Group and Moody's Investors Service, Inc. (together, the "Rating
Agencies") and matures not more than ninety (90) days from the date of purchase;
and (iv) investment agreements, guaranteed investment contracts, repurchase
agreements and similar investment instruments, the issuer or guarantor of which
is rated in one of the two highest rating categories by both of the Rating
Agencies, which instruments have a term not greater than ninety (90) days. In
the absence of any direction for investing the Escrow Fund, the Escrow Agent
shall invest the Escrow Fund in One Group Treasury Only Money Market Fund.

                  (b) The Escrow Agent shall have no liability for any loss
incurred as a result of investments made or liquidated by it in accordance with
the provisions of this Agreement.

                                   ARTICLE 4

                         DISTRIBUTION OF THE ESCROW FUND
                         -------------------------------
                              AND THE PAYMENT FUND
                              --------------------

         4.01 DISTRIBUTION OF THE ESCROW FUND AND THE PAYMENT FUND.

                  (a) Unless otherwise set forth herein and subject to the terms
and conditions of this Agreement, the Escrow Fund minus (i) any Pending Claims
Amount (defined below), (ii) any amounts previously distributed to Buyer
pursuant to the terms of this Agreement, and (iii) any amounts that the Escrow
Agent is required to withhold pursuant to applicable law for Taxes, with respect
to income earned on, or derived from, the Escrow Fund shall, if such amount is
positive, be distributed to Seller on February 25, 2002 (the "Distribution
Date") in the manner set forth in a written notice given to the Escrow Agent by
Seller prior to the Distribution Date. The Distribution Date may be extended in
accordance with Section 4.02(b) hereof.

                  (b) The Payment Fund shall be distributed on the Closing Date
in the manner set forth on Schedule A hereto.

         4.02 INDEMNIFICATION CLAIMS MADE AGAINST THE ESCROW FUND.

                  (a) Subject to the terms and conditions set forth in the
Purchase Agreement, at any time following the Closing Date and prior to the
Distribution Date, Buyer may deliver written notice (a "Notice of Claim") to the
Escrow Agent and to Seller, to the effect that Buyer is entitled to
indemnification by Seller pursuant to the

                                       3
<PAGE>

Purchase Agreement and is entitled to receive payment therefor out of the Escrow
Fund, and such Notice of Claim shall constitute the assertion of a claim by
Buyer against the Escrow Fund. Each Notice of Claim shall be given in good faith
and shall set forth in reasonable detail the nature and estimated amount of the
losses, damages, demands, claims, assessments, actions, Taxes, penalties,
interest, reasonable attorneys' and accountants' fees, settlement costs and
other costs and expenses incurred by Buyer (collectively, "Losses") giving rise
to a right of indemnification. Upon receipt by the Escrow Agent of any Notice of
Claim, the Escrow Agent shall retain in the Escrow Fund an amount equal to the
Losses claimed by Buyer (a "Pending Claims Amount") until such time as there has
been a determination of such Losses in accordance with the terms and provisions
of the Purchase Agreement.

                  (b) Seller and Buyer shall follow the procedures and be
subject to the limitations set forth in Article 11 and Article 12 of the
Purchase Agreement, in connection with any claim for indemnification. Delivery
of a Notice of Claim pursuant to Section 4.02(a) shall extend the Distribution
Date solely with respect to the Pending Claims Amount until such time as there
has been a final determination of such Losses in accordance with the terms and
provisions of the Purchase Agreement.

                  (c) For purposes hereof, the term "final determination" means
any decision, order, judgment, decree or award from which no appeal or petition
for certiorari or application to vacate is available. Except as hereinafter
provided, within ten (10) business days after the receipt by Seller and the
Escrow Agent of any notice of final determination in favor of Buyer with respect
to Seller's indemnification obligations (which notice shall be accompanied by a
copy of any document, agreement, award or order, judgment or decree evidencing
such final determination) or upon written instructions from Seller, the Escrow
Agent shall deliver to Buyer from the Escrow Fund, free and clear of any
interest of Seller, an amount equal to the amount of such Losses as finally
determined in accordance with Article 11 of the Purchase Agreement or as set
forth in any written instructions from Seller, as the case may be.
Notwithstanding the foregoing, no payment shall be made by the Escrow Agent to
Buyer if, within the aforesaid ten-business day period, the Escrow Agent and
Buyer receive an opinion of counsel for Seller, addressed to the Escrow Agent
and Buyer, stating that in such counsel's opinion the determination relied upon
by Buyer is not a final determination (as defined above) and outlining the
action to be taken by Seller to have that determination reviewed or vacated. In
the event of a final determination in favor of Seller after the initial
Distribution Date has occurred, the Escrow Agent shall deliver to Seller, in the
manner set forth in a notice given to the Escrow Agent by Seller prior to such
delivery, that amount of the Pending Claims Amount relating to such final
determination, if any, in excess of any other remaining Pending Claims Amounts.

         4.03 PROVISIONS OF THE PURCHASE AGREEMENT. Nothing in this Agreement
shall derogate from, or modify in any respect any of the terms and provisions of
the Purchase Agreement, including, without limitation, Article 11 thereof with
respect to indemnification. Nothing in this Agreement shall prevent Buyer from
exercising its rights to receive indemnification from Seller, subject to any
applicable limitations, pursuant to the Purchase Agreement for amounts in excess
of the Escrow Fund.

                                       4
<PAGE>

                                   ARTICLE 5

                             SETTLEMENT OF DISPUTES
                             ----------------------

         5.01 SETTLEMENT OF DISPUTES. Any dispute that may arise under this
Agreement with respect to (a) the facts upon which the Escrow Agent's
determinations are based, (b) the duties of the Escrow Agent hereunder, and (c)
any other questions arising under this Agreement, shall be finally determined
(i) by mutual agreement of Buyer and Seller (evidenced by appropriate
instructions in writing to the Escrow Agent signed by Buyer and Seller), within
thirty (30) days after such dispute arises, or (ii) as described in Article 12
of the Purchase Agreement; provided, however, that the foregoing shall not be
construed to preclude Buyer and Seller from resolving any dispute arising
hereunder by mutual agreement in accordance with clause (i) above at any time;
provided further, that if the Escrow Agent has deposited the amount remaining in
the Escrow Fund with a court pursuant to Section 6.08 hereof, the dispute shall
be determined by such court. The Escrow Agent shall be under no duty to
institute or defend any proceeding relating to any such dispute and none of the
costs and expenses of any such proceeding shall be borne by the Escrow Agent.
Pending the resolution of any dispute as provided in this Article 5, the Escrow
Agent is authorized and directed to retain in its possession the portion of the
Escrow Fund that is the subject of or involved in the dispute.

         5.02 ATTORNEYS' FEES AND EXPENSES. In the event action is brought to
enforce the provisions of this Agreement pursuant to this Article 5, the
non-prevailing Party shall be required to pay the reasonable attorneys' fees and
expenses of the prevailing Party, except that if in the opinion of the court
deciding such action there is no prevailing Party, each Party shall pay its own
attorneys' fees and expenses.

                                   ARTICLE 6

                     PROVISIONS CONCERNING THE ESCROW AGENT
                     --------------------------------------

         6.01 AMENDMENTS AND MODIFICATIONS. Subject to the provisions of Section
7.06 hereof, the Escrow Agent shall not in any way be bound or affected by any
amendment, modification or cancellation of this Agreement which increases or
alters the obligations of the Escrow Agent under or pursuant to this Agreement,
unless the same shall have been agreed to in writing by the Escrow Agent.

         6.02 COMPENSATION. The Escrow Agent shall be entitled to the fees set
forth on Schedule B attached hereto and to reimbursement for all reasonable
out-of-pocket expenses (including the reasonable fees and expenses of counsel)
incurred in connection with the performance of its services hereunder. Each of
Buyer, on the one hand, and Seller, on the other hand, shall bear one-half of
any liability for fees owed to and reimbursement of expenses incurred by the
Escrow Agent pursuant to this Section 6.02. Upon receipt by Buyer and Seller of
the Escrow Agent's written notice itemizing such fees and out-of-pocket
expenses, the Escrow Agent shall be entitled to the payment thereof within
thirty (30) days after such written notice is given. Notwithstanding anything to
the contrary contained herein, the Escrow Agent shall be entitled to retain

                                       5
<PAGE>

from any disbursements requested hereunder any outstanding fees and/or expenses
due from the Party to whom such funds are to be disbursed. The Escrow Agent is
hereby granted a first lien on the portion of the Escrow Fund and the Additional
Escrow Amount otherwise payable to a Party for all indebtedness that may become
owing to the Escrow Agent by such Party pursuant to this Escrow Agreement. In
the event that such fees or expenses are not paid to the Escrow Agent within
thirty (30) days of written notice, the Escrow Agent may charge such fee against
that portion of the Escrow Fund and the Additional Escrow Amount, if any,
determined to be due to the Party from whom such fees and expenses are owed;
provided that any amounts owing by Buyer hereunder shall only be charged against
the Escrow Account and any amounts owing by Seller hereunder shall first be
charged against the Additional Escrow Account.

         6.03 DUTIES OF THE ESCROW AGENT. This Agreement sets forth the duties
and obligations of the Escrow Agent with respect to any and all matters
pertinent to its acting as such hereunder. The Escrow Agent shall not have
duties or responsibilities under this Agreement other than those specifically
set forth herein and shall act only in accordance with the provisions hereof.
Without limiting the generality of the foregoing, the Escrow Agent shall not
have any duty or responsibility (i) to enforce or cause to be enforced any of
the terms and conditions contained in the Purchase Agreement, or (ii) to verify
the accuracy or sufficiency of any notice or other document received by it in
connection with this Agreement. The Escrow Agent shall be entitled to rely upon
any instructions or directions to it in writing under this Agreement signed by
the proper Party or Parties and shall be entitled to treat as genuine any
instruction or document delivered to the Escrow Agent hereunder and reasonably
believed by the Escrow Agent to be genuine and to have been presented by the
proper Party or Parties, without being required to determine the authenticity or
correctness of any fact stated therein, or the authority or authorization of the
person or persons making and/or delivering the same.

         6.04 LIABILITY OF THE ESCROW AGENT. Neither the Escrow Agent nor any of
its officers, directors, employees, shareholders, representatives or agents
shall be liable to Buyer or Seller, or any other person or entity for or in
respect of any Losses resulting from or arising out of any act or failure to act
by it in connection with this Agreement, other than for any Loss which shall be
finally adjudicated to be the result of gross negligence or willful misconduct
on the part of the Escrow Agent or any such officers, directors, employees,
shareholders, representatives or agents. The Escrow Agent shall not be liable or
responsible because of the loss of any monies arising as a result of investments
made in accordance with this Agreement or through the insolvency or the act of
default or omission of any depository in which such monies shall have been
deposited. Any payments of income from (i) the Escrow Fund, or the Additional
Escrow Account, as the case may be, and (ii) the Payment Fund, or the Payment
Account, as the case may be, shall be subject to withholding regulations then in
force with respect to United States Taxes. If applicable, the Parties will
provide the Escrow Agent with appropriate Internal Revenue Service Forms W-9 for
tax identification number certification, or non-resident alien certifications.
This Section 6.03 shall survive notwithstanding any termination of this
Agreement or the resignation of the Escrow Agent. The Escrow Agent shall provide
all appropriate forms and documentation to Seller (with copies thereof to Buyer)
so as to permit Seller to file Tax Returns, and pay all Taxes with respect to
income earned on (i)

                                       6
<PAGE>

the Escrow Fund, or the Additional Escrow Account, as the case may be, and (ii)
the Payment Fund, or the Payment Account, as the case may be.

         6.05 INDEMNITY OF THE ESCROW AGENT. Buyer, other than with respect to
the matters described in Section 7.13 hereof, and Seller hereby agree, severally
but not jointly, to protect, defend, indemnify and hold harmless the Escrow
Agent against any and all costs, losses, damages, liabilities, claims, expenses
(including the reasonable fees and expenses of counsel) and claims incurred by
it without gross negligence or willful misconduct on the indemnified Party's
part arising out of or in connection with its entering into this Escrow
Agreement and the carrying out of its duties hereunder, including the reasonable
costs and expenses of defending itself against any claim of liability relating
to this Escrow Agreement. Buyer and Seller agree that any amounts due to the
Escrow Agent pursuant to the preceding sentence shall be borne equally by them.

         6.06 RESIGNATION OF THE ESCROW AGENT. At any time that the Escrow Agent
so chooses, the Escrow Agent may resign from its duties hereunder by giving not
less than thirty (30) days' prior written notice to Buyer and Seller and shall
designate, by mutual consent, a successor escrow agent; provided, that
notwithstanding any resignation date set forth in the Escrow Agent's notice,
such resignation shall not take effect until receipt by the Escrow Agent of an
instrument duly executed by a successor escrow agent evidencing its appointment
as Escrow Agent hereunder and acceptance of this Agreement. If no successor
escrow agent is appointed within such thirty (30) day period, the Escrow Agent
may deposit the amount remaining in the Escrow Fund with a court of competent
jurisdiction as provided in Section 6.08 hereof, whereupon the Escrow Agent
shall be discharged of all duties and obligations hereunder.

         6.07 REMOVAL OF ESCROW AGENT. The Escrow Agent may be removed at any
time by mutual agreement of Buyer and Seller by giving not less than thirty (30)
days' prior written notice to the Escrow Agent. Prior to the expiration of such
thirty (30) day period, Buyer and Seller shall designate, by mutual consent, a
successor escrow agent. If no successor escrow agent is appointed within such
thirty (30) day period, the Escrow Agent may deposit the amount remaining in the
Escrow Fund with a court of competent jurisdiction as provided in Section 6.08
hereof, whereupon the Escrow Agent shall be discharged of all duties and
obligations hereunder.

         6.08 DEPOSIT WITH COURT. Notwithstanding anything herein to the
contrary, in the event of any disagreement between any of the Parties to this
Agreement, or between them and any other person, resulting in adverse claims or
demands being made against the Escrow Fund, or in the event the Escrow Agent in
good faith is in doubt as to what action it should take hereunder, the Escrow
Agent may be discharged of its duties and obligations hereunder upon its
deposit, at any time after ten (10) days' written notice to Buyer and Seller of
the amount remaining in the Escrow Fund with a court of competent jurisdiction
in Wilmington, Delaware. The Parties hereby submit to the personal jurisdiction
of any such court, waive any and all right to contest the jurisdiction of such
court, and consent to service of process by hand delivery or mail delivery
thereof to their respective addresses set forth in Section 7.01 hereof.

                                       7
<PAGE>

         6.09 ABILITY TO CONSULT COUNSEL. The Escrow Agent may confer with legal
counsel in the event of any dispute or question as to the construction of any of
the provisions hereof, or its duties hereunder, and it shall incur no liability
and it shall be fully protected in acting in accordance with the opinions of
such counsel.

                                    ARTICLE 7

                                  MISCELLANEOUS
                                  -------------

         7.01 NOTICES. All notices, requests and other communications which are
required or permitted hereunder shall be sufficient if given in writing and
shall be deemed effective (i) when delivered personally, (ii) when delivered by
registered or certified mail, postage prepaid,, or (iii) when delivered by an
overnight carrier, as follows (or to such other address as shall be set forth in
a notice given in the same manner):

         NOTICES TO BUYER:

                           Atrium Companies, Inc.
                           1341 W. Mockingbird Lane
                           Suite 1200W
                           Dallas, Texas 75247
                           Facsimile Number: (214) 630-5001
                           Attention: Jeff L. Hull

                                 - and -

                           Atrium Companies, Inc.
                           c/o Ardshiel, Inc.
                           230 Park Avenue
                           New York, NY 10169
                           Facsimile Number: (212) 972-1809
                           Attention: Daniel T. Morley

                  with a copy to:

                           Paul, Hastings, Janofsky & Walker LLP
                           399 Park Avenue
                           New York, NY 10022-4697
                           Facsimile Number: (212) 319-4090
                           Attention: Joel M. Simon, Esq.
                                      Marie Censoplano, Esq.

                                       8
<PAGE>

         NOTICES TO SELLER:

                           The Ellison Company, Inc.
                           706 Green Valley Road
                           Suite 406
                           Greensboro, North Carolina  27408
                           Facsimile Number:  (336) 274-9217
                           Attention: John Ellison, Jr.

                  with a copy to:

                           Schell Bray Aycock Abel & Livingston P.L.L.C.
                           230 North Elm Street
                           Suite 1500
                           Greensboro, North Carolina  27401
                           Facsimile Number:  (336) 370-8830
                           Attention: Michael R. Abel, Esq.

         NOTICES TO THE ESCROW AGENT:

                           Bank One, Texas, N.A.
                           1717 Main Street
                           4th Floor
                           Dallas, Texas  75201
                           Facsimile 214-290-3624
                           Attention: Corporate Trust Department

         A copy of any notice or other communication given or made to or by the
Escrow Agent pursuant to this Agreement shall in addition be given or made to
each of the other Parties.

         7.02 COUNTERPARTS. This Agreement may be executed in several
counterparts each of which is an original and all of which, taken together,
shall constitute a single instrument.

         7.03 CONTENTS OF AGREEMENT: PARTIES IN INTEREST, ETC. This Agreement
and the Purchase Agreement and the documents referred to therein set forth the
entire understanding of the Parties. Any previous agreements or understandings
between the Parties regarding the subject matter hereof are merged into and
superseded by this Agreement. 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 Parties. Neither this
Agreement nor any rights, interest or obligations hereunder may be assigned by
any Party without the prior written consent of all other Parties.

                                       9
<PAGE>

         7.04 GOVERNING LAW; VENUE. This Agreement shall be construed and
enforced in accordance with the laws of the State of New York without regard to
the principles of conflict of laws.

         7.05 SECTION HEADINGS. The section headings herein have been inserted
for convenience of reference only and shall in no way modify or restrict any of
the terms or provisions hereof.

         7.06 MODIFICATION AND WAIVER. Any of the terms or conditions of this
Agreement may be waived in writing at any time by the Party which is entitled to
the benefits thereof, and this Agreement may be modified or amended at any time
by Buyer, Seller and the Escrow Agent. No supplement, modification or amendment
of this Agreement shall be binding unless executed in writing by Buyer and
Seller and, in the case of Article 6 hereof only, the Escrow Agent. No waiver of
any of the provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provision hereof nor shall such waiver constitute a
continuing waiver.

         7.07 INVALID PROVISIONS. If any provision of this Agreement is held to
be illegal, invalid or unenforceable under present or future laws, 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 part 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.

         7.08 THIRD PARTY BENEFICIARIES. Except as otherwise expressly set forth
herein, no individual or entity shall be a third-Party beneficiary of the
representations, warranties, covenants and agreements made by any Party.

         7.09 TERMINATION.

                  (a) This Agreement may, by written notice given prior to or at
the Closing, be terminated:

                      (1) By any of the Parties if the Purchase Agreement is
terminated pursuant to its terms; or

                      (2) By mutual written consent of Buyer and Seller.

                  (b) The Escrow Agent's rights to indemnity and to receive
payment of its fees and expenses shall survive any termination of this Escrow
Agreement.

                                       10
<PAGE>

         7.10 SECURITIES STATEMENTS. Pursuant to the regulations of the Office
of the Comptroller of the Currency, 12 C.F.R. 12.5(a), Buyer and Seller have the
right to receive, at no additional cost and within five (5) business days of the
transaction, a written notification disclosing certain information relating to
securities purchase and sale transactions in the Escrow Account. The Escrow
Agent has the option of furnishing to Buyer and Seller either (i) a copy of the
broker-dealer confirmation relating to the transaction, or (ii) a written
notification disclosing the Escrow Agent's name, the account name, the Escrow
Agent's capacity in the transaction, the date of execution (and, upon the
Buyer's and Seller's written request, the time of execution) of the transaction,
the identity, price and number of shares involved, the remuneration to the
broker-dealer and its identity, the total remuneration to be received by the
Escrow Agent and, if no broker-dealer was involved, the identity of the person
from whom the security was purchased or to whom it was sold.

         In lieu of the foregoing time and form of notification, Buyer and
Seller agree that the Escrow Agent's periodic statements, transmitted pursuant
to the terms of this Escrow Agreement, will suffice.

         7.11 FORM 1099. The Escrow Agent shall provide any Form 1099 required
to be provided in respect of the Escrow Account, Payment Account and Additional
Escrow Account to Seller.

         7.12 AUTHORIZED SIGNATORIES. The following persons are authorized to
direct the Escrow Agent regarding any transactions to this Escrow Agreement
including, but not limited to, investment and/or disbursement of the funds and
securities held hereunder.

        ------------------------------        ------------------------------
        Daniel T. Morley,                     John Ellison, Jr.,
           on behalf of Buyer                    on behalf of Seller

        ------------------------------
        Jeff L. Hull,
           on behalf of Buyer

         7.13 TAX LIABILITIES. Seller hereby agrees to indemnify the Escrow
Agent and the Buyer and its affiliates fully from any Tax liability, penalties
or interest incurred by the Escrow Agent arising as a result of or with respect
to any or all of the Escrow Fund, the Payment Fund and the Additional Escrow
Account and agrees to pay in full any such Tax liability together with penalty
and interest, if any, that is ultimately assessed against the Escrow Agent
and/or the Buyer or its affiliate for any reason as a result of or with respect
to any or all of the Escrow Fund, the Payment Fund and the Additional Escrow
Account. Seller agrees that, for purposes of federal and other Taxes, Seller
will be treated as the owner of one hundred percent (100%) of the Escrow Fund,

                                       11
<PAGE>

Payment Fund and Additional Escrow Account and that Seller will report all
income, if any, that is earned on, or derived from, the Escrow Fund, Payment
Fund and Additional Escrow Account as Seller's income, in the taxable year or
years in which such income is properly includible and pay any and all Taxes
attributable thereto, regardless of whether any distributions are made to such
Seller. The Parties agree that this provision will be consistently applied by
the Parties and is intended to satisfy Proposed Treasury Regulation
ss.1.468B-8(h)(2).

                           [Signature pages to follow]

                                       12
<PAGE>

         IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
date and the year first above written.

                              ATRIUM COMPANIES, INC.

                              By:
                                 ------------------------------
                                 Name: Jeff L. Hull
                                 Title: President

                              THE ELLISON COMPANY, INC.

                              By:
                                 ------------------------------
                                 Name: John Ellison, Jr.
                                 Title: President

                              BANK ONE, TEXAS, N.A.

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

                                       13
<PAGE>

                                   SCHEDULE A

          PAYMENTS TO BE MADE ON THE CLOSING DATE FROM THE PAYMENT FUND

<TABLE>
<S>                                                                                <C>
1.     Bank of America                                                                $653,345.28
       Charlotte, NC
       ABA 053000196
       Beneficiary: Commercial Loan Services
                    GL Account #13662109198000
                    Obligor #176403
                    Obligation #513

2.     First Union National Bank                                                       $1,198,177
       Charlotte, NC
       Attn:  Joseph McCall
       Account Name: First Union Securities, Inc.
                     Market Access Account
       Account Number: 2070498150299
       Routing Number: 053000219
       Reference: Ellison Window & Doors

3.     Bank of America                                                                $10,000,000
       Charlotte, NC
       ABA 053000196
       Account Name: The Ellison Company, Inc.
                     Greensboro NC
       Account Number: 000021239322

4.     Chase Manhattan Bank, N.A.                                                  $79,148,469.72
       ABA 021000021
       For the account of United States Trust Company of New York
       A/C #920-1-073195
       For further credit to A/C #60736500
       In the name of Ellison Company, Inc.
</TABLE>

                                       14
<PAGE>

                                   SCHEDULE B

                                ESCROW AGENT FEES

                               BANK ONE, TEXAS, NA
                               ESCROW FEE SCHEDULE

RE:      PROPOSED ESCROW AGREEMENT AMONG D AND W HOLDINGS, INC., THE ELLISON
COMPANY, INC.,
         AND BANK ONE, TEXAS, NA

ANNUAL ADMINISTRATION FEE..............................................$2,000.00

EXTRAORDINARY TIME CHARGES.............................$200 PER HOUR (SEE BELOW)

ADDITIONAL TERMS AND CONDITIONS:

         ACCEPTANCE OF THE APPOINTMENT IS SUBJECT TO DOCUMENT PROVISIONS BEING
         SATISFACTORY TO BANK ONE.

         AFTER INITIAL REVIEW AND COMMENT ON THE ESCROW DOCUMENT, ANY ADDITIONAL
         REVIEW, COMMENT AND NEGOTIATION ON MATERIAL CHANGES TO THE DOCUMENT
         WILL BE BILLED AS EXTRAORDINARY TIME CHARGES.

         THE FEES QUOTED IN THIS LETTER APPLY TO SERVICES ORDINARILY RENDERED IN
         THE ADMINISTRATION OF AN AGENCY ACCOUNT. THEY ARE SUBJECT TO REASONABLE
         ADJUSTMENT BASED ON FINAL REVIEW OF DOCUMENTS. FEES CAN ALSO BE
         ADJUSTED WHEN THE AGENT IS CALLED UPON TO UNDERTAKE UNUSUAL DUTIES OR
         RESPONSIBILITIES, OR AS CHANGES IN LAW, PROCEDURES, OR THE COST OF
         DOING BUSINESS DEMAND. SERVICES IN ADDITION TO AND NOT CONTEMPLATED IN
         THE AGREEMENT, INCLUDING BUT NOT LIMITED TO DOCUMENT AMENDMENTS AND
         REVISIONS, NONSTANDARD CASH AND/OR INVESTMENT TRANSACTIONS,
         CALCULATIONS, NOTICES, REPORTS, AND DEFAULT ADMINISTRATION MAY BE
         BILLED AS EXTRAORDINARY TIME CHARGES.

         UNLESS OTHERWISE INDICATED, THE ABOVE FEES PROVIDE FOR THE
         ESTABLISHMENT OF ONE ACCOUNT. ADDITIONAL SUB-ACCOUNTS GOVERNED BY THE
         SAME ESCROW AGREEMENT MAY BE ESTABLISHED AT AN ADDITIONAL CHARGE OF
         $250 PER ACCOUNT.

         THE ACCEPTANCE FEE AND THE FIRST YEAR ANNUAL ADMINISTRATION FEE ARE
         PAYABLE UPON EXECUTION OF THE ESCROW DOCUMENTS. IN THE EVENT THE ESCROW
         IS NOT FUNDED, THE ACCEPTANCE FEE AND ALL RELATED EXPENSES WILL NOT BE
         REFUNDED. ANNUAL ADMINISTRATION FEES COVER A FULL YEAR IN ADVANCE, OR
         ANY PART THEREOF, AND THUS ARE NOT PRO-RATED IN THE YEAR OF
         TERMINATION.

         UPON A CLIENT'S DIRECTION, CASH BALANCES WILL BE INVESTED IN ANY ONE OF
         THE FOLLOWING:

                                       15
<PAGE>

                  CASH BALANCES MAY BE INVESTED IN THE ONE GROUP(R) MONEY MARKET
                  FUNDS IN WHICH EVENT BANK ONE WILL CHARGE A 50 BASIS POINT
                  (.005) CASH MANAGEMENT FEE. THE ONE GROUP(R) WILL PAY BANC ONE
                  INVESTMENT ADVISORS CORPORATION, AN AFFILIATE OF BANK ONE, AN
                  INVESTMENT ADVISORY FEE AS DESCRIBED IN THE PROSPECTUSES.

                  CASH BALANCES MAY BE INVESTED IN AN ALTERNATIVE SHORT-TERM
                  INVESTMENT FUND IN WHICH EVENT BANK ONE WILL CHARGE A 50 BASIS
                  POINT (.005) CASH MANAGEMENT FEE.

         IN DETERMINING THE GENERAL SCHEDULE OF FEES, BANK ONE TAKES INTO
         CONSIDERATION THE VARIOUS INCIDENTAL BENEFITS ACCRUING TO IT FROM THE
         OPERATION OF THE ACCOUNTS. COLLECTED FUNDS MUST BE ON DEPOSIT PRIOR TO
         DISBURSEMENT OF PAYMENTS. IN ADDITION, BANK ONE HAS THE USE OF FUNDS
         DEPOSITED TO PAY CHECKS THAT HAVE NOT YET BEEN PRESENTED FOR PAYMENT.
         NO INTEREST SHALL BE PAID TO THE CLIENT ON THESE FUNDS, IT BEING
         UNDERSTOOD THAT THE FLOAT ON THESE FUNDS IS CONSIDERED IN THE
         CALCULATION OF OUR FEES.

SHOULD YOU ELECT TO APPOINT BANK ONE AS YOUR ESCROW AGENT, WE REQUEST THAT YOU
SIGN AND RETURN THE ENCLOSED COPY OF THIS ATTACHMENT ACKNOWLEDGING YOUR
AGREEMENT TO THESE FEES, TERMS, AND CONDITIONS.

ACKNOWLEDGMENT AND ACCEPTANCE:
------------------------------

THE UNDERSIGNED AGREES TO THE ABOVE-QUOTED FEES, TERMS, AND CONDITIONS.

BY: ___________________________________________

DATE: _________________________________________

NOT FDIC INSURED * NO BANK GUARANTEE * MAY LOSE VALUE
ONE GROUP MUTUAL FUNDS DISTRIBUTED BY THE ONE GROUP SERVICES COMPANY, 3435
STELZER ROAD, COLUMBUS, OHIO 43219 WHICH IS NOT AFFILIATED WITH BANK ONE
CORPORATION. BANC ONE INVESTMENT ADVISORS CORPORATION SERVES AS AN INVESTMENT
ADVISOR TO THE ONE GROUP FOR WHICH IT RECEIVES ADVISORY FEES. CALL INVESTOR
SERVICES AT THE ONE GROUP SERVICES COMPANY AT 1-800-480-4111 FOR A PROSPECTUS
CONTAINING COMPLETE INFORMATION ABOUT CHARGES AND EXPENSES. READ CAREFULLY
BEFORE INVESTING.

                                       16<PAGE>

                                                                   Exhibit 10.51

                            INDEMNIFICATION AGREEMENT

         This INDEMNIFICATION AGREEMENT (the "Agreement") is made and entered
into as of this 31st day of August, 2000, by and between D and W Holdings, Inc.,
a Delaware corporation (including any successors thereto, the "Company"), and
Daniel T. Morley ("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 Board of Directors of the Company (the "Board") has 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 Company's stockholders,
and that the Company should act to assure its directors and officers that there
will be increased certainty of adequate protection in the future.

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

         E. Indemnitee is willing to serve and continue to serve the Company 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
Company.

                                   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 Company, and the covenants contained in this Agreement, the Company and
Indemnitee hereby covenant and agree as follows:

<PAGE>

         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 Company (the "Outstanding Company Common Stock") or
                      (y) the combined voting power of the then outstanding
                      voting securities of the 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 Company or any Subsidiary
                      thereof, (B) any acquisition by the Company or any
                      Subsidiary thereof, (C) any acquisition by any employee
                      benefit plan (or related trust) sponsored or maintained by
                      the Company or any Subsidiary of the 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

                (ii)  Individuals who, as of the date of this Agreement,
                      constitute the Board (the "Incumbent Board") cease for any
                      reason to constitute at least a majority of the 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 Company's
                      stockholders, was approved by a vote of at least a
                      majority of the directors then comprising the Incumbent
                      Board, shall be considered as though such individual were
                      a member of the Incumbent Board, but excluding, for this
                      purpose, any such

                                       2
<PAGE>

                      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 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 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 Company or all or substantially all
                      of the 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 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 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 Board, providing for such Business Combination; or

                                       3
<PAGE>

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

            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 the Company, or is or was serving at the request
                of the Company 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 Company
                agrees that Indemnitee's service on behalf of or with respect to
                any Subsidiary or employee benefits plan of the Company or any
                Subsidiary of the Company shall be deemed to be at the request
                of the 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 Company's 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.

                                       4
<PAGE>

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

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

            j.  Special Counsel: shall mean special, independent legal counsel
                selected by Indemnitee and approved by the Company (which
                approval shall not be unreasonably withheld), and who has not
                otherwise performed material services for the Company 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 Company shall 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 Company, from and against any and all
                Indemnifiable Liabilities. Notwithstanding the foregoing, the
                obligations of the Company under 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.

                                       5
<PAGE>

            b.  If so requested by Indemnitee, the Company 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
                business days after such request (an "Expense Advance"). The
                Company 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 Company,
                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 Advance by the Company. 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 Company shall be
                entitled to be reimbursed by Indemnitee and Indemnitee hereby
                agrees to reimburse the Company without interest (which
                agreement shall be an unsecured obligation of Indemnitee) for
                (x) all related Expense Advances theretofore made or paid by the
                Company 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 Company 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, 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

                                       6
<PAGE>

                Company hereby consents 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 Company and
                Indemnitee.

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

         3. Change of Control. The Company agrees that, if there is a Potential
Change of Control or a Change of Control 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 Company agrees 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 Company and
Indemnitee that the Company was not or is 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 Company 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
Company agrees to pay the 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, the Company 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, (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 Company for Expense Advances under this
Agreement), (iii) the Trust shall continue to be funded by the Company in

                                       7
<PAGE>

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 Company 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 Company of any of its obligations under this Agreement.

         5. Indemnification for Additional Expenses. The Company 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 wider this Agreement, (b) seeks to enforce Indemnitee's
rights to expense advancement or indemnification under any other agreement or
provision of the Company's 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 Company, 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 Company for all amounts previously
advanced to Indemnitee pursuant to this Section 5. Subject to the provisos
contained in the preceding sentence, to the fullest extent permitted by law, the
Company waives any and all rights that it 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 Company for some, but not all, of
Indemnitee's Indemnifiable Liabilities, the Company 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 Company, 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.

                                       8
<PAGE>

                The amount the Company contributes shall be in such proportion
                as is appropriate to reflect the relative fault of Indemnitee,
                on the one hand, and of the Company and any and all other
                parties (including officers and directors of the Company other
                than Indemnitee) who may be at fault (collectively, including
                the Company, the "Third Parties"), on the other hand.

            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 Company 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 take account of
                the equitable considerations referred to in this Section 7(b).

         8. Assumption of Defense by the Company. Except as otherwise provided
below, the Company, 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 the Company 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 Company, (ii) Indemnitee shall
have reasonably concluded that there may be a conflict of interest between the
Company and Indemnitee in the conduct of such defense or (iii) the Company 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 Company shall
not be entitled to assume Indemnitee's defense of any Claim brought by the
Company 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 Company to establish that Indemnitee is not so
entitled.

                                       9
<PAGE>

         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.

         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
Company.

         12. Liability Insurance. Except as otherwise agreed to by the Company
and Indemnitee in a written agreement, to the extent the Company maintains 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 Company, 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.

                                       10
<PAGE>

         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 Company actually indemnifies Indemnitee or advances
him Expenses, the Company 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 Company 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 Company shall be relieved of its 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 Company or another enterprise at the
Company's 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 the Company shall be deemed receipt of such notice by the Company.

                                       11
<PAGE>

         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 October 2,
1998.

         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.

               [THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK]

                                       12
<PAGE>

         EXECUTED as of the date first written above.

                                    D AND W HOLDINGS, INC.

                                    By:
                                        --------------------------

                                    INDEMNITEE

                                    ------------------------------

                                       13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00019-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00019-of-00352.parquet"}]]