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                                                                    Exhibit 10.7


                         AMENDMENT DATED AUGUST 4, 1999
                                     to the
                      APPLIED EXTRUSION TECHNOLOGIES, INC.
                             1991 STOCK OPTION PLAN


Section 6(f) of the Applied Extrusion Technologies, Inc. 1991 Stock Option Plan
for Directors is hereby amended and restated in its entirety to read as follows:

                           "(f) LIMITED TRANSFERABILITY OF OPTIONS. No option
                  may be transferred, except (i) by will or by the laws of
                  descent and distribution or (ii) to parties that are eligible
                  to have such transferred options and the underlying securities
                  registered on the Plan's existing Form S-8 Registration
                  Statements, such eligibility to be determined in accordance
                  with the General Instructions to Form S-8 and other rulings
                  and pronouncements of the Securities and Exchange Commission
                  as may be in effect from time to time."


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