APPLIED EXTRUSION TECHNOLOGIES INC /DE
EMPLOYMENT AGREEMENT MODIFICATION-TERRY SMITH
<DOCUMENT>
<TYPE>EX-10.24.1
<SEQUENCE>8
<FILENAME>dex10241.txt
<DESCRIPTION>EMPLOYMENT AGREEMENT MODIFICATION-TERRY SMITH
<TEXT>
<PAGE>


                                                                 Exhibit 10.24.1

                        EMPLOYMENT AGREEMENT MODIFICATION

     THIS Employment Agreement Modification (the "Modification") is made as of
the 24th day of June, 2002 by and between Applied Extrusion Technologies, Inc.,
a Delaware corporation (the "Employer"), and Terry E. Smith (the "Executive").

                                    RECITALS

     1. The Executive is currently employed by the Employer as its Vice
President Manufacturing of the Employer's Films Division pursuant to an
Employment Agreement dated as of April 1, 2001, as in effect on the date hereof
(the "Agreement").

     2. The Employer desires to modify the Agreement of the Executive and to
further make secure for itself the experience, abilities and services of the
Executive and to prevent the loss of such experience, services and abilities.

     3. In consideration of the employment to be provided hereby and the amounts
to be paid as provided herein, the Executive desires to continue to be employed
by the Employer and to agree with the Employer as further provided herein.

     NOW THEREFORE, the parties hereto hereby agree as follows:

          Section 3(f) of the Agreement shall be deleted and replaced in its
          entirety with the following:

     (f) Change in Control. If a "Change in Control" (as such term is defined in
Exhibit A to the Employer's 1991 Stock Option Plan for Directors) shall occur,
then (i) all stock options previously granted to the Executive which, by their
terms, have not yet vested, shall immediately vest and become exercisable, (ii)
all contributions to Employee's Supplemental Executive Retirement Plan which, by
their terms, have not yet vested, shall immediately vest, (iii) Section 4(d)
hereof shall be amended by deleting clauses 4(d)(iii) and 4(d)(iv), and (iv) the
Executive shall be entitled to carry out his duties and responsibilities
hereunder primarily from Executive's current office in New Castle, Delaware (or
another facility serving such purpose and located within 15 miles of such
current office) and will not be required to locate his primary place of business
outside such area without his consent (which may be given or withheld in his
sole discretion).

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Employment
Agreement as of the date first written above.

                                           APPLIED EXTRUSION TECHNOLOGIES, INC.


                                           By:  /s/ David N. Terhune
                                               -----------------------
                                                David N. Terhune
                                                Chief Operating Officer and
                                                   Executive Vice President

                                                /s/ Terry Smith
                                               -----------------------
                                                Terry Smith

</TEXT>
</DOCUMENT>
