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 129, 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 51.0201 DepartureEntry ofinto Principala OfficerMaterial Definitive Agreement

~~Lawrence~~On ~~Firestone~~June 9, 2006, Thomas T. Edman, President and Chief Executive Officer of Applied Films Corporation’s (~~the~~ “~~Company~~Applied Films”), ~~Senior~~entered ~~Vice~~into ~~President,~~an ~~Chief~~Amended ~~Financial~~and Restated Severance Agreement with Applied Films ~~Officer~~and Applied Materials, ~~Treasurer~~Inc. (the “Amended and ~~Secretary,~~Restated ~~has~~Severance ~~informed~~Agreement”), which ~~the~~amends ~~Company~~and restates that hecertain ~~intends~~Severance toAgreement ~~accept~~between aMr. Edman and Applied ~~position~~Films, asdated ~~Chief~~July ~~Financial~~26, ~~Officer~~2002 of(the ~~another~~“Severance ~~company~~Agreement”). onPursuant to the ~~earlier~~Amended and ofRestated ~~(a)~~Severance ~~thirty~~Agreement, ~~days after~~Applied Materials, Inc. assumed the ~~closing~~obligations of Applied Films under the Amended and Restated Severance Agreement, and ~~Plan~~as ofaugmented ~~Merger~~by that certain Letter Agreement between ~~the~~Mr. ~~Company,~~Edman and Applied ~~Materials~~ Films, ~~Inc.~~dated May 15, 2006 (the “~~AMAT~~Applied Films Letter Agreement”), ~~and~~contingent ~~Blue~~on ~~Acquisition,~~the ~~Inc.,~~successful aclosing ~~wholly~~of ~~owned subsidiary~~the ofmerger ~~AMAT~~ (the “Merger”), orcontemplated ~~(b)~~by ~~September~~the 1,Agreement ~~2006.~~and ~~Mr.~~Plan ~~Firestone~~of ~~will~~Merger ~~remain with~~among ~~the~~Applied ~~Company~~Films, ~~until~~Blue ~~that~~Acquisition, ~~time~~Inc. and ~~will~~Applied ~~complete~~Materials, ~~his~~Inc., ~~obligations~~dated toMay ~~the~~4, ~~Company~~2006. ~~under his~~The Amended and Restated Severance Agreement ~~with~~is ~~the~~attached ~~Company,~~as ~~dated~~Exhibit ~~July~~10.1 ~~26,~~to ~~2002~~this Current Report on Form 8-K and asis ~~amended~~incorporated herein by ~~the~~reference. ~~letter~~The Applied Films Letter ~~agreement~~Agreement ~~between~~was ~~him~~previously ~~and~~disclosed ~~the~~by ~~Company~~Applied Films pursuant to a Current Report on Form 8-K, dated May 15, 2006.

1If the Merger does not occur, the amendments to the Severance Agreement contained in the Applied Films Letter Agreement and the Amended and Restated Severance Agreement shall be null and void and of no further force and effect.

9.01 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 1215, 2006 APPLIED FILMS CORPORATION By /s/ Thomas T. Edman —————————————— Thomas T. Edman President and Chief Executive Officer

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

FORM 8-K

Item 51.0201 DepartureEntry ofinto Principala OfficerMaterial Definitive Agreement

9.01 Financial Statements and Exhibits

SIGNATURES

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

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