TERMINATION AGREEMENT OF "MANUFACTURING AND SUPPLY AGREEMENT

Manufacturing Agreement

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This Manufacturing Agreement involves

SOUTHWALL TECHNOLOGIES INC /DE/

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Title: TERMINATION AGREEMENT OF "MANUFACTURING AND SUPPLY AGREEMENT
Date: 2/6/2008
Industry: Fabricated Plastic and Rubber Sector: Basic Materials

Exhibit 10.1

TERMINATION AGREEMENT OF

"MANUFACTURING AND SUPPLY AGREEMENT"

This Termination Agreement of the Manufacturing and Supply Agreement between Mitsui Chemicals, Inc. (hereinafter referred to as "MCI") and Southwall Technologies Inc. (hereinafter referred to at "STI") dated June 26, 2003 (hereinafter referred to as the "Agreement") amends and supersedes the Agreement.

This Termination Agreement is effective as of November 15, 2007 (the "Effective Date"). This Termination Agreement documents the agreement between the parties hereto with regard to early termination of the Agreement.

Unless otherwise specifically provided for or amended in this Termination Agreement, all capitalized definitions used herein shall have the meanings provided for them in the Agreement.

According to Article 14 (Term and Termination) of the Agreement, the Agreement was scheduled to remain in effect until December 31, 2007. As a result of MCI's decision to cease purchasing PDP Films, and in consi

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