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                                                               Exhibit 10.23


                      APPLIED EXTRUSION TECHNOLOGIES, INC.
                   1999 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

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         THIS 1999 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (the "PLAN") made and
entered into this 30th day of November, 1999 by APPLIED EXTRUSION TECHNOLOGIES,
INC., a corporation organized and existing under the laws of the State of
Delaware (hereinafter referred to as the "COMPANY").

                              W I T N E S S E T H:

         WHEREAS, the Company desires to provide for an unfunded supplemental
executive retirement plan for the benefit of a select group of its management or
highly compensated employees, subject to certain conditions and pursuant to the
terms and provisions specified in this Plan;

         NOW, THEREFORE, in consideration of the premises and mutual covenants
set forth herein, the Company hereby establishes the Plan pursuant to the
following terms and provisions.

                                    ARTICLE 1

                                   DEFINITIONS

         1.1 "AVERAGE COMPENSATION" shall mean the average Compensation paid by
the Company to the Participant for those three (3) fiscal years (whether or not
consecutive) of the Company ending on or after the Effective Date in which the
Participant earned the highest Compensation (or, if the Participant did not
receive Compensation for at least three (3) fiscal years ending on or after the
Effective Date, then over the number of fiscal years ending on or after the
Effective Date during which the Participant was employed by the Company for the
entire fiscal year); provided, however, that in no event shall the Average
Compensation be less than the Participant's Base Salary for the fiscal year in
which the Participant's Termination Date occurs.

         1.2 "BENEFICIARY" shall mean the person or persons designated by a
Participant, upon such forms as shall be provided by the Company, to receive
payments of the Participant's Normal Retirement Benefit after the Participant's
death. If the Participant shall fail to designate a Beneficiary, or if for any
reason such designation shall be ineffective, or if such Beneficiary shall
predecease the Participant or die simultaneously with him, then the Beneficiary
shall be the Participant's estate.


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         1.3 "BENEFIT PERCENTAGE" shall mean, with respect to a Participant, (a)
twenty-five (25%) if the Performance Target has not been met, and (b) fifty
percent (50%) if the Performance Target has been met; provided, however, that if
the Participant's employment with the Company is terminated pursuant to
subsections 4(b) (Death), 4(c) (Incapacity), 4(e) (Termination by the Employer
Other Than for Death, Incapacity or Cause) or 4(f) (Termination by Executive for
Good Reason) of the Participant's Employment Agreement, the Benefit Percentage
shall be fifty percent (50%).

         1.4 "CHANGE IN CONTROL" shall have the same meaning as set forth in
Exhibit A to the Company's 1991 Stock Option Plan for Directors.

         1.5 "CODE" shall mean the Internal Revenue Code of 1986, as amended,
and successor tax laws.

         1.6 "COMMITTEE" shall mean the persons designated by the Company as the
Administrative Committee for the Plan pursuant to Section 3.1.

         1.7 "COMPANY" shall mean APPLIED EXTRUSION TECHNOLOGIES, INC., a
Delaware corporation, its successors and assigns.

         1.8 "COMPENSATION" shall mean the Base Salary and Bonuses paid by the
Company to the Participant for the fiscal year of the Company pursuant to
subsections 3(a) and 3(b) of the Participant's Employment Agreement.

         1.9 "DISABILITY BENEFIT OFFSET AMOUNT" shall mean the amounts (if any)
that the Participant receives concurrently from any disability insurance policy
paid or reimbursed by the Company for the benefit of the Participant.

         1.10 "EFFECTIVE DATE" shall mean April 1, 1999.

         1.11 "EMPLOYMENT AGREEMENT" shall mean, with respect to a Participant,
the Employment Agreement entered into by and between the Company and the
Participant on or after the Effective Date, as amended from time to time.

         1.12 "NORMAL RETIREMENT BENEFIT" means a monthly benefit, commencing on
the Participant's Retirement Payment Commencement Date and continuing for ten
(10) years thereafter, equal to one twelfth of the amount by which (i) the
product of the Participant's Benefit Percentage multiplied by his or her Average
Compensation, exceeds (ii) the Participant's Disability Benefit Offset Amount,
if any.

         1.13 "PARTICIPANT" shall mean the Chief Executive Officer and any other
officer of the Company designated by the Board of Directors or the Stock Option
and Compensation Committee of the Board of Directors of the Company as being
eligible to participate in the Plan. An employee of the Company shall not be
eligible to be a Participant unless he or she is deemed to be among a select
group of management or highly compensated employees of the Company within the
meaning of Section 201(2) of ERISA.


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         1.14 "PERFORMANCE TARGET" shall have the same meaning as set forth in
subsection 3(f) of the Participant's Employment Agreement.

         1.15 "PLAN" shall mean this 1999 Supplemental Executive Retirement Plan
as herein set forth and as it may be amended from time to time.

         1.16 "PLAN YEAR" shall mean the twelve month period that begins October
1 and ends September 30.

         1.17 "RETIREMENT PAYMENT COMMENCEMENT DATE" shall mean the first day of
the month coincident with or next following the later of (a) the date the
Participant reaches, or would have reached if still living, age sixty (60), and
(b) the Participant's Termination Date.

         1.18 "TERMINATION DATE" shall have the same meaning as set forth in
subsection 4(a) of the Participant's Employment Agreement.

         1.19 "TRUST" shall mean the Applied Extrusion Technologies, Inc. 1999
Deferred Compensation Trust, dated November 30, 1999, entered into by and
between the Company and Comerica Bank.

         1.20 "YEAR OF CREDITED SERVICE" shall mean the number of calendar
months during which a Participant was employed by the Company divided by twelve,
with any remainder rounded up to the next whole year.

                                    ARTICLE 2

                               RETIREMENT BENEFITS

         2.1      NORMAL RETIREMENT BENEFIT.

                  (a) A Participant who has completed a total of not less than
ten (10) Years of Credited Service (of which at least four (4) Years of Credited
Service have been completed subsequent to the Effective Date of this Plan) shall
be entitled to receive payment of his Normal Retirement Benefit commencing on
his Retirement Payment Commencement Date.

                  (b) For purposes of determining Years of Credited Service
pursuant to subsection 2.1(a) hereof, if a Participant's employment with the
Company is terminated pursuant to subsections 4(b) (Death), 4(c) (Incapacity),
4(e) (Termination by the Employer Other Than for Death, Incapacity or Cause) or
4(f) (Termination by Executive for Good Reason) of his or her Employment
Agreement, such Participant shall be deemed to have completed those Years of
Credited Service (or a portion thereof) that the Participant would have
completed if the Participant had been continuously employed with the Company
through the Expiration Date, as that term is used under his Employment
Agreement.


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         2.2 TERMINATION PRIOR TO COMPLETING REQUISITE YEARS OF CREDITED SERVICE
EMPLOYMENT. If a Participant's employment with the Company terminates for any
reason before the Participant has completed ten (10) Years of Credited Service,
or before he has completed four (4) Years of Credited Service after the
Effective Date of this Plan (in each case taking into account any Years of
Credited Service that the Participant may be deemed to have completed under
Section 2.1(b), hereof), then no benefits shall be paid to the Participant or
any Beneficiary of the Participant pursuant to this Plan.

         2.3 DEATH BENEFIT. If the Participant should die before distribution of
his entire Normal Retirement Benefit has been made to him, any remaining amounts
shall be distributed to the Participant's Beneficiary in a lump sum payment,
using a five percent (5%) discount factor per annum, as soon as practicable
after the Participant's death, provided that notwithstanding the foregoing, no
amount shall be payable hereunder until that date on which the deceased
Participant would have reached age sixty (60) if still living.

         2.4 CHANGE IN CONTROL. At any time after a Change in Control has
occurred, a Participant may elect to receive his or her Normal Retirement
Benefit (or if payment thereof has already commenced, any remaining payments of
the Participant's Normal Retirement Benefit) as a lump sum payment, using a five
percent (5%) discount factor per annum, commencing upon the later of (a) the
Participant's Retirement Payment Commencement Date, and (b) the date of the
Change in Control.

                                    ARTICLE 3

                                 ADMINISTRATION

         3.1 ADMINISTRATIVE COMMITTEE. The Company shall appoint a Committee for
the administration of the Plan consisting of one or more persons. Any Committee
member may, but need not, be an officer or employee of the Company and each
shall serve until his successor shall be appointed in like manner. Any member of
the Committee may resign by delivering his written resignation to the Company.
The Company may remove any member of the Committee at any time.

          3.2 POWERS AND DUTIES. The Committee generally shall be responsible
for the discretionary management, operation, interpretation and administration
of the Plan. The Committee shall:

                           (a) Establish procedures for allocation of
         responsibilities of the Plan which are not allocated herein;

                           (b) Determine the names of those employees of the
         Company who are eligible to participate and such other matters as may
         be necessary to enable payment under the Plan;

                           (c) Construe all terms, provisions, conditions and
         limitations of the Plan;

                           (d) Correct any defect, supply any omission or
         reconcile any inconsistency that may appear in the Plan;


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                           (e) Determine the amount, manner and time of payment
         of benefits hereunder and prescribe procedures to be followed by
         Participants to obtain benefits; and

                           (f) Perform such other functions and take such other
         actions as may be required by the Plan or as may be necessary or
         advisable to accomplish the purposes of the Plan.

The Company shall furnish the Committee with all data and information available
which the Committee may reasonably require in order to perform its functions
hereunder. The Committee may rely without question upon any such data or
information furnished by the Company. Any interpretation or other decision made
by the Committee shall be final, binding and conclusive upon all persons in the
absence of clear and convincing evidence that the Committee acted arbitrarily
and capriciously.

         3.3 AGENTS. The Committee may appoint a Secretary who may, but need
not, be a member of the Committee, and may employ such agents for clerical and
other services, and such counsel, accountants and other professional advisors as
may be required for the purpose of administering the Plan. The Committee may
rely on all tables, valuations, reports, certificates and opinions furnished by
its agents.

         3.4 PROCEDURES. A majority of the Committee members shall constitute a
quorum for the transaction of business. No action shall be taken except upon a
majority vote of the Committee. An individual shall not vote or decide upon any
matter relating solely to himself or vote in any case in which his individual
right or claim to any benefit under the Plan is particularly involved. In any
case in which a Committee member is so disqualified to act, and the remaining
members cannot agree on an issue, the Company shall appoint a temporary
substitute member to exercise all of the powers of the disqualified member
concerning the matter in which he is disqualified.

         3.5 CLAIMS PROCEDURE. In the event that any Participant or Beneficiary
claims to be entitled to benefits under the Plan and the Committee determines
that such claim should be denied in whole or in part, the Committee shall, in
writing, notify such claimant within ninety (90) days of receipt of such claim
that his claim has been denied, setting forth the specific reasons for such
denial. Such notification shall be written in a manner reasonably expected to be
understood by such Participant or Beneficiary and shall set forth the pertinent
sections of the Plan relied on, and where appropriate, an explanation of how the
claimant can obtain review of such denial. Within sixty (60) days after the
mailing or delivery by the Committee of such notice, such claimant may request,
by mailing or delivery of written notice to the Committee, a review and/or
hearing by the Committee of the decision denying the claim. If the claimant
fails to request such a review and/or hearing within such sixty (60) day period,
it shall be conclusively determined for all purposes of this Plan that the
denial of such claim by the Committee is correct. If such claimant requests a
hearing within such sixty (60) day period, the Committee shall designate a time
(which time shall not be less than seven (7) nor more than sixty (60) days from
the date of such claimant's notice to the Committee) and a place for such
hearing, and shall promptly notify such claimant of such time and place. A
claimant or his authorized representative shall be entitled to inspect all
pertinent Plan documents and to submit issues and comments in writing. If only a
review is requested, the claimant shall have sixty (60) days after filing a
request for review to submit additional written material in support of the
claim. After such review and/or hearing, the Committee shall promptly


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determine whether such denial of the claim was correct and shall notify such
claimant in writing of its determination with sixty (60) days after such review
and/or hearing or after receipt of any additional information submitted.

         3.6 INDEMNIFICATION. The Company shall indemnify each Committee member,
and each employee who assists the Committee in connection with his or her
employment duties against any liability or loss sustained by reason of any act
or failure to act made in good faith, including, but not limited to, those in
reliance on certificates, reports, tables, opinions or other communications from
any company or agents chosen by the Committee in good faith. Such
indemnification shall include attorneys' fees and other costs and expenses
reasonably incurred in defense of any action brought by reason of any such act
or failure to act.

                                    ARTICLE 4

                                  MISCELLANEOUS

         4.1 UNFUNDED PLAN. The obligations of the Company under this Plan shall
be paid from the general assets of the Company or from the assets of the Trust.
Participants shall have the status of general unsecured creditors of the
Company, and the Plan constitutes a mere promise by the Company to make benefit
payments in the future. It is intended that this Plan shall constitute an
"unfunded" plan for a select group of management or highly compensated employees
under the Employee Retirement Income Security Act of 1974, as amended. Any
assets acquired by the Company relating to this Plan shall be subject to the
claims of the Company's creditors, and shall not be subject to any claims by any
Participant or Beneficiary. The assets of the Trust also shall be subject to the
Company's creditors in the event of the Company's Insolvency, as defined in the
Trust Agreement establishing the Trust. Nothing contained in this Plan shall be
interpreted to grant to any Participant or Beneficiary, any right, title or
interest in any assets of the Company or the Trust.

         4.2 TIMING OF COMPANY CONTRIBUTIONS. For each Plan Year, the Company
shall make contributions to the Trust in an amount that the Committee reasonably
determines to be sufficient to fund the benefits that have accrued and have
become vested under this Plan during that Plan Year. Notwithstanding the
foregoing, in the event of a Change in Control, or if the Committee determines,
in the Committee's view, and notifies the Company that a Change in Control is
imminent, the Company shall make a contribution to the Trust in an amount equal
to the aggregate value of all Participants' benefits hereunder, whether vested
or not.

         4.3 IMPACT ON OTHER PARTICIPANT BENEFITS. This Plan shall not be
construed to impact or cause the denial of any benefits to which any Participant
may be entitled under any other welfare or benefit plan of the Company.

         4.4 OTHER PLANS. Payments made to Participants under this Plan shall
not be includable as salary or compensation for purposes of determining the
amount of employee benefits under any other retirement, pension, profit-sharing
or welfare benefit plans of the Company.


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         4.5 GOVERNING LAW. To the extent not pre-empted by the laws of the
United States, the construction, validity and administration of the Plan shall
be governed by the laws of the State of Delaware without reference to the
principles of conflicts of law therein.

         4.6 NO ASSIGNMENT OR OTHER TRANSFER. The right to receive payment of
any benefits under the Plan shall not be subject in any manner to anticipation,
sale, alienation, transfer, assignment, pledge, encumbrance, attachment, or
garnishment by creditors of a Participant or a Participant's Beneficiary.

         4.7 TAXES. The Company shall withhold from any payment due under the
Plan any taxes it deems to be required to be withheld under applicable Federal,
state or local tax laws or regulations.

         4.8 SEVERABILITY. If any provision of this Plan is found, held or
deemed to be void, unlawful or unenforceable under any applicable statute or
other controlling law, the remainder of the Plan shall continue in full force
and effect.

         4.9 HEADINGS AND SUBHEADINGS. The headings and subheadings of the Plan
are for reference only. In the event of a conflict between a heading or
subheading and the content of an article or paragraph, the content shall
control.

         4.10 GENDER. The masculine, as used herein, shall be deemed to include
the feminine and the singular to include plural, except where the context
requires a different construction.

         4.11     AMENDMENT AND TERMINATION.

                  (a) This Plan may be amended or terminated in any respect at
any time by the Company; provided, however, that no amendment or termination of
the Plan shall be effective to reduce any benefit that accrues before the
adoption of such amendment or termination without the prior written consent of
the Participants whose benefits would be reduced.

                  (b) Notwithstanding any provision to the contrary in this
Plan, in the event that as of the last day of any fiscal quarter of the Company
that occurs after the Effective Date, either (i) the Tangible Net Worth of the
Company is less the $25,000,000, or (ii) the Interest Coverage Ratio of the
Company shall be below .9:1, then the Plan immediately shall terminate, and the
Company shall distribute to each Participant his or her Normal Retirement
Benefit, in a lump sum payment, as soon as practicable thereafter. For purposes
of this Plan:

                           (1) "Tangible Net Worth" shall mean at any date the
                           consolidated stockholders' equity of the Company and
                           its subsidiaries determined as of such date, less any
                           intangible assets included on the balance sheet at
                           the same date;

                           (2) "Interest Coverage Ratio" shall mean the Cash
                           Flow of the Company for the trailing four quarters
                           divided by the Interest Expense of the Company for
                           the trailing four quarters;


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                           (3) "Cash Flow" shall mean for any period, (i) the
                           sum (without duplication), determined on a
                           consolidated basis for the Company and its
                           subsidiaries, of (x) the operating profit of the
                           Company and its subsidiaries (calculated before
                           provision for income taxes, interest expense,
                           extraordinary and non-recurring items and income
                           attributable to equity in affiliates) for such
                           period, plus (y) depreciation, amortization and other
                           non-cash items (to the extent deducted in determining
                           operating profit) for such period minus (ii) proceeds
                           received by the Company and its subsidiaries during
                           such period (to the extent included in determining
                           operating profit) of any property insurance policy.

                           (4) "Interest Expense" shall mean for any period, the
                           sum (determined without duplication) of the aggregate
                           amount of interest accruing during such period on
                           indebtedness of the Company and its subsidiaries (on
                           a consolidated basis), including the interest portion
                           of payments under capital lease obligations and any
                           capitalized interest, and excluding amortization of
                           debt discount and expense.

         4.12 NO EMPLOYMENT CONTRACT. This Plan does not constitute a contract
of employment or impose on any Participant or the Company any obligations to
retain the Participant as an employee, to change the status of the Participant's
employment, or to change the Company's policies regarding termination of
employment.

         IN WITNESS WHEREOF, the Company has caused the Plan to be executed the
day and year first above written.

                                    APPLIED EXTRUSIONS TECHNOLOGIES, INC.

                                           /s/ Gerald M. Haines II
                                    -------------------------------------------
                                    By:      Gerald M. Haines II
                                    Title:   Vice President and General Counsel


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