UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 930, 2006

APPLIED FILMS CORPORATION
(Exact name of Registrant as specified in its charter)

Colorado(State or Other Jurisdictionof Incorporation) 000-23103(Commission File No.) 84-1311581(IRS EmployerIdentification No.)

9586 I-25 Frontage Road, Suite 200, Longmont, Colorado
(Address of Principal Executive Offices)

80504
(Zip Code)

303-774-3200 (Registrant’s Telephone Number, Including Area Code)

Not Applicable
(Former Name or Former Address, if changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).

[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)).

[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).

Item 17.01 EntryRegulation intoFD a Material Definitive AgreementDisclosure

On June 930, 2006, ~~Thomas~~the T.shareholders ~~Edman, President and Chief Executive Officer~~ of Applied Films Corporation ~~(“Applied Films”),~~approved ~~entered into an Amended and Restated Severance Agreement with Applied Films and Applied Materials, Inc. (~~the ~~“Amended and Restated Severance~~ Agreement~~”), which~~ ~~amends~~ and ~~restates~~Plan ~~that~~of ~~certain Severance Agreement between Mr. Edman and Applied Films~~Merger, dated ~~July~~May 264, ~~2002~~2006, ~~(the~~by ~~“Severance Agreement”). Pursuant to the Amended~~ and ~~Restated~~among ~~Severance Agreement,~~ Applied Materials, Inc., ~~assumed~~Blue ~~the obligations of Applied Films under the Amended and Restated Severance Agreement~~Acquisition, ~~and as augmented by that certain Letter Agreement between Mr~~Inc. ~~Edman and Applied Films~~, ~~dated~~a ~~May~~wholly-owned ~~15,~~subsidiary ~~2006 (the “Applied Films Letter Agreement”), contingent on the successful closing~~ of ~~the merger (the “Merger”) contemplated by the Agreement and Plan of Merger among~~ Applied ~~Films, Blue Acquisition, Inc. and Applied~~ Materials, Inc., ~~dated May 4, 2006. The Amended~~ and ~~Restated~~Applied ~~Severance Agreement is attached as Exhibit 10.1 to this Current~~Films ~~Report on Form 8-K and is incorporated herein by reference~~Corporation. The ~~Applied~~closing ~~Films~~of ~~Letter Agreement~~the ~~was~~merger ~~previously~~remains ~~disclosed~~subject ~~by Applied Films pursuant~~ to aother ~~Current~~customary ~~Report~~closing ~~on Form 8-K, dated May 15, 2006~~conditions.

IfThe ~~the~~above ~~Merger~~statements ~~does~~are being furnished pursuant to this Item 7.01 of this Current Report on Form 8-K and shall not ~~occur,~~be ~~the~~deemed “filed” for purposes of ~~amendments~~Section to18 of the ~~Severance~~Securities ~~Agreement~~Exchange ~~contained~~Act inof ~~the~~1934, ~~Applied~~as ~~Films~~amended ~~Letter~~(the ~~Agreement~~“Exchange ~~and~~Act”), or otherwise subject to the ~~Amended~~liabilities ~~and~~of ~~Restated~~that ~~Severance~~Section, ~~Agreement~~nor shall they be ~~null~~deemed ~~and~~incorporated ~~void~~by ~~and~~reference in any filing under the Securities Act of no1933, ~~further force~~as ~~and~~amended, ~~effect~~or the Exchange Act.

~~9.01~~1 ~~Financial Statements and Exhibits~~

(d) Exhibits

10.1 Amended and Restated Severance Agreement, dated June 9, 2006.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: June 1530, 2006 APPLIED FILMS CORPORATION By /s/ ~~Thomas~~Lawrence TD. ~~Edman~~Firestone —————————————— ~~Thomas~~Lawrence TD. ~~Edman~~Firestone ~~President and~~ Chief ~~Executive~~Financial Officer

UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 8-K

Item 17.01 EntryRegulation intoFD a Material Definitive AgreementDisclosure

SIGNATURES

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

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