Document:

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                                                                    Exhibit 10.5

(APPLIED FILMS LOGO)

                                                                     1 July 2002

James Scholhamer
9685 I-25 Frontage Road
Longmont, CO 80504

LETTER OF ASSIGNMENT

Dear Jim,

This letter confirms the terms and conditions of your assignment to Applied
Films in Alzenau, Germany from 1 January 2003.

START DATE OF ASSIGNMENT: 1 September 2002.

POSITION: Vice President, Worldwide Operations reporting to Tom Edman, President
and CEO. You will continue to be a member of the Executive Team of Applied
Films. You are considered an employee of Applied Films Corporation in the US.

RESPONSIBILITIES: You should develop specific goals as soon as practical.

DURATION OF ASSIGNMENT: Two years with possible extensions. If the assignment
extends beyond five years, you will become a local employee of the German
organization at a level of compensation and benefits commensurate with your
position.

<TABLE>
<S>                                                      <C>
MONTHLY COMPENSATION:
   Base salary                                           $12500
   Goods and services differential (includes gasoline)      535
                                                         ------
   Total                                                 $12909(1)
   Paid to US bank account(s)                            $ 2500
   Paid to German bank account(s)                     Euro 9929(2)
</TABLE>

Notes: You may designate what portion of your compensation you wish to receive
in each location.

(1). Will be $13409 for first 6 months with domestic assistance as noted below.

(2). Fx: $1=Euro 0.9539

HOUSING: AFC will pay up to Euro 3500 per month for housing rental and
utilities, and the fees associated with securing housing. In addition, the
company will pay for the lease or purchase of necessary furnishings and fit up
of your home. The lease vs purchase decision is your responsibility based on the
least cost to the company.

PTO: You will continue to earn PTO in accordance with the US practice, and you
should notify the US Human Resources department of the use of PTO.

HOLIDAYS: in accordance with German public holidays.

OTHER:

     -    Two leased vehicles (personal/work car and minivan/station wagon).

     -    "American School" education expenses for children (including
          pre-Kindergarten) as necessary during the course of the assignment.

     -    Up to Euro 500 per month for domestic assistance for child care, etc.
          for up to six months.

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(APPLIED FILMS LOGO)

     -    Six round-trip economy/coach air tickets between Frankfurt and Denver
          (or other locations at an equivalent value) per year for
          personal/family use.

     -    German language instruction for you and your family after arrival,
          including an intensive course for you prior to the start of the
          assignment if available in the Denver area.

     -    Relocation (including storage of any items in the US) will be provided
          in accordance with the Applied Films Relocation Policy in effect as of
          the date of this letter.

     -    Tax Equalization will be handled in accordance with Appendix 3 of the
          Applied Films Relocation Policy. This includes the necessary taxes
          and/or tax gross-ups that result from any relocation or related
          expenses that are counted as income.

     -    AFC will pay for (directly or by reimbursement) the cost of passports,
          visas, residency permits, work permits and the like.

There are no other commitments or agreements other than those outlined in this
letter.

Best regards,

/s/ Thomas T. Edman                     7/16/02
-------------------------------------   ----------------------------------------
Thomas T. Edman                         Date
President and CEO

I accept the assignment as outlined
in this letter:

/s/ James Scholhamer                    7/16/02
-------------------------------------   ----------------------------------------
James Scholhamer                        Date
Vice President, Worldwide Operations<PAGE>

                                                                    Exhibit 10.6

                                    CONTRACT

                                       For

                       Applied Films TSIP Facility Phase-I

                                     Between

                         Applied Films Taiwan Co., Ltd.

                                       And

                        Wide Bond Construction Co., Ltd.

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CONTRACT AGREEMENT
for
TURN-KEY BUILDING PROJECT

This Agreement made the 30th day of August 2005

between   Applied Films Taiwan Co., Ltd.
          1F, Building A, No. 3 Nan-Ko Rd. 7
          Science Based Industrial Park
          Tainan, Taiwan, 741, R.O.C.
          (hereinafter called "the Employer") of the one part,

and       Wide Bond Construction Co., Ltd.
          of 9F, No. 35 Kuang Fu North Road
          Talpei, Taiwan, R.O.C.
          (hereinafter called "the Contractor") of the other part

Whereas

(A)  the Employer requests that the Works known as - AF TSIP Facility - shall be
     executed by and through the Contractor as a turn-key project. The Employer
     has accepted a tender made by the Contractor for the design, execution and
     completion of the Works and the remedying of any defects therein
     (hereinafter called "the Project").

(B)  the Contractor is a construction company with the capability, experience
     and resources to execute and complete the Project in accordance with this
     Contract.

(C)  the Employer is a registered company at the Tainan Science Based Industrial
     Park and has an approved land lease application (Dali 1st Rd, land 11-3)
     available and which will be the construction site.

The Employer and the Contractor agree as follows:

     1.   Definitions

          In this Agreement words and expressions shall have the same meanings
          as respectively assigned to them in the General Conditions contained
          in the FIDIC Silver Book Conditions of Contract hereinafter referred
          to as amended in the Particular Conditions.

                                                                        Page 1/5

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     2.   Contract Documents

          The Contract between the Employer and the Contractor shall be deemed
          to comprise the following documents and such documents shall in
          interpreted and take effect between the parties, and any
          inconsistencies shall be resolved, in the following order of priority
          and application:

          (a)  The memoranda annexed hereto (which includes a breakdown of the
               Contract Price);

          (b)  The Particular Conditions of Contract annexed hereto;

          (c)  The General Conditions of Contract annexed hereto;

          (d)  The Employer's Requirements (Rev. B dated July, 30th 2005);

          (e)  The Contractor's Tender (dated August, 3rd 2005); and

          (f)  The Minutes of Meeting from July, 28th 2005 (dated August, 1st
               2005).

          (g)  The Minutes of Meeting from August, 15th to 19th 2005 (dated
               August, 19th 2005).

     3.   Contract Scope

          The Project is planned as a turn-key project based on the FIDIC Silver
          Book for EPC/Turnkey Projects (First Edition 1999-ISBN 2-88432-021-0,
          English language) and shall provide the Employer with a fully
          completed and operational manufacturing facility. The Project
          includes the production building (goods receiving, stock, disposition
          area, assembly hall, packaging and shipping), office building,
          gas/dangerous goods stock, one level parking place and all necessary
          equipment and utilities to operate the building.

     4.   Project Responsibility

          The Contractor shall be solely responsible for and shall execute and
          complete all work and activities required in connection with the
          Project including professional design, engineering, approvals
          (including post-completion approvals) and licenses, sub-contracting
          (where permitted), construction, hire of equipment, purchasing and
          delivery of materials, quality assurance, erection, installation,
          inspection, commissioning and performance testing of civil, structure,
          interior, MEP, air conditioning, HVAC, fire protection, site works,
          landscaping, utilities, plumbing, electrical, gas and otherwise as
          described in this Contract. The Contractor shall be solely responsible
          for the correctness, completeness and accuracy of all information and
          documents used or required in connection with the design and the
          Works.

     5.   Contract Price

          The Employer hereby covenants to pay the Contractor, in consideration
          of the design, execution and completion of the Works and the remedying
          of defects therein, the total maximum guaranteed fixed price of NTD
          227,000,000 (including 5% Value Added Tax) as the Contract Price, with
          the possibility to make

                                                                        Page 2/5
<PAGE>

          adjustment only for any value engineering achieved during the detailed
          design phase agreed and approved by the Employer.

          Certain additional costs to be paid by the Employer other than the
          stated price as above are listed in the "List of all costs to be paid
          by the Employer" included in the memoranda annexed hereto. All other
          permits, fees, approvals, etc. will be born at the expense of the
          Contractor.

     6.   PRICING RISK

          The Contractor is responsible for and assumes all risks of funding,
          profitability, cost increases, resourcing, quality, meeting the
          completion deadline, legal and governmental requirements and safety
          throughout the entire project. The Contractor remains responsible to
          the Employer for all work to be completed by its sub-contractors and
          all other matters in connection with the sub-contractors including
          payment of their sub-contract prices, fees and expenses. The
          Contractor will be committed to integrate all sub-contractors and to
          provide a seamless coordination of all activities during all project
          phases.

      7.   CONSTRUCTION WORKS

          In consideration of the payments to be made by the Employer to the
          Contractor as hereinafter mentioned, the Contractor hereby covenants
          with the Employer to design, execute and complete the Works and remedy
          any defects therein on or before the Time for Completion in accordance
          with the provisions of the Contract and all applicable Laws and
          construction and installation standards.

     8.   ADVANCE PAYMENT

          The Employer hereby covenants to issue a formal purchase order within
          14 days of the date of this Contract and to pay a sum of 10% of the
          Contract Price by way of advance payment (the "Advance Payment")
          within 28 days of the date of this Contract. Upon receiving the
          purchase order but prior to the Employer being obligated to pay the
          Advance Payment, the Contractor shall have delivered to the Employer
          Performance Security of an amount equivalent to the Advance Payment
          and in form and substance acceptable to the Employer.

     9.   APPROVALS AND LICENSES

          The Contractor shall be responsible for obtaining all necessary
          permits, licenses and approvals and where such items must be obtained
          by or in the name of the Employer the Contractor will provide the
          Employer with all the necessary information, documents and assistance
          the Employer may require to apply for such permits, licenses and
          approvals and other things that are to be obtained by the Employer.

     10.  BUILDING USAGE PERMIT

          The Contractor will obtain and deliver to the Employer the Building
          Usage Permit for the Project buildings within 310 days after the
          Commencement Date.

     11.  CONTRACT DATES

          The Base Date shall be the date of this Agreement.

                                                                        Page 3/5

<PAGE>

          The Commencement Date shall be 3 days after the assignment of the
          contract.

          The Time for Completion shall be 310 days after the Commencement Date.

     12.  TSIP REGULATIONS

          Without limiting the provisions of the General Conditions and the
          Particular Conditions, the Contractor shall furthermore observe and
          comply with the rules and regulations of the Tainan Science-Based
          Industrial Park (the "TSIP") throughout the term of the Project. Any
          non-compliance, exception or variations to such rules and regulations
          must be approved in advance in writing by the TSIP Administration and
          promptly notified (with a copy of the TSIP's written approval) to the
          Employer.

     13.  REPRESENTATIONS AND WARRANTIES

          The Contractor represents and warrants to the Employer that:

          (a)  the Contractor is a company duly organized and validly existing
               under the Laws of the Republic of China, has all necessary
               permits and licenses for the conduct of its business and is in
               compliance with all applicable Laws;

          (b)  this Contract constitutes the legal, valid and binding
               obligations of the Contractor enforceable against the Contractor
               in accordance with its terms; and

          (c)  the execution and performance of this Contract has been
               authorised by all necessary corporate and other actions and will
               not conflict with any Laws, permits, licenses, the Contractor's
               articles of incorporation or any agreement or instrument to which
               it is a party.

     14.  ENTIRE AGREEMENT

          This Contract constitutes the entire and only agreement between the
          parties relating to the subject matter of the Contract and supersedes
          and extinguishes any agreements, representations, arrangements,
          discussions and correspondence made or given prior to the date of this
          Contract.

                                                                        Page 4/5

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In Witness whereof the parties hereto have caused this Agreement to be executed
the day and year first before written in accordance with their respective laws.

SIGNED by:                              SIGNED by:

/s/ Lawrence Firestone                  /s/ Sherwin Chien
-------------------------------------   ----------------------------------------
(Signature)                             (Signature)

Lawrence Firestone                      Sherwin Chien
Chief Financial Officer                 Chairman & Chief Executing Officer
Applied Films Cooperation               Wide Bond Construction Co., Ltd.

Alzenau, Germany             30/05/05
-------------------------------------   ----------------------------------------
(Place / Date)                          (Place / Date)

for and on behalf of the Employer in    for and on behalf of the Contractor in
the presence of                         the presence of

/s/ Tiffany Lin                         /s/ Illegible
-------------------------------------   ----------------------------------------
(Witness Signature)                     (Witness Signature)

Alzenau, Germany                        Illegible
-------------------------------------   ----------------------------------------
(Address)                               (Address)

                             30/05/05
-------------------------------------   ----------------------------------------
(Place / Date)                          (Place / Date)

/s/ Eddie Chen
-------------------------------------
(Signature)

Eddie Chen
-------------------------------------
(Name / Title)

Tainan, 09/05/05
-------------------------------------
(Place / Date)

for and on behalf of the Employer in
the presence of

-------------------------------------
(Witness Signature}

-------------------------------------
(Address)

-------------------------------------
(Place / Date)

                                                                        Page 5/5

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