EXHIBIT 10.10.1

                              TERMINATION AGREEMENT

         THIS TERMINATION AGREEMENT, dated as of the 31st day of December, 1996,
by and between TREDEGAR INDUSTRIES, INC., a Virginia corporation (the "Company")
and NORMAN A. SCHER,  an  individual  residing at 5  Cedaridge  Road,  Richmond,
Virginia 23229 ("Executive").

         WHEREAS,  the Company and  Executive  have  entered  into that  certain
Employment  Agreement dated as of June 1, 1989 (the "Employment  Agreement") and
the Company and Executive desire to terminate such Employment Agreement;

         NOW,  THEREFORE,  in consideration of mutual promises contained herein,
and other good and valuable consideration,  the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

         1.  Effective  as of the close of business on December  31,  1996,  the
Employment  Agreement is hereby  terminated  and shall have no further  force or
effect  with  respect to the  employment  relationship  between  the Company and
Executive.

         2. Except for the  termination of the  Employment  Agreement the rights
and obligations of the Company and Executive set forth therein, this Termination
Agreement  shall not otherwise  affect the employment  relationship  between the
Company and Executive,  including  without  limitation  Executive's  obligations
under the Patent and  Confidentiality  Agreement  referred to in the  Employment
Agreement and any  independently  existing  obligations of the Company under the
compensation, benefit and welfare plans in which the Company's senior management
is eligible to participate.

         3. This  Termination  Agreement  shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.

         4. This  Termination  Agreement  shall  be governed by and construed in
conformity with the laws of the Commonwealth of Virginia.

         IN WITNESS  WHEREOF,  parties  hereto have  executed  this  Termination
Agreement as of the date first above written.


                                                     TREDEGAR INDUSTRIES, INC.


                                                     By:  /s/ John D. Gottwald
                                                              John D. Gottwald
                                                              President

                                                       /s/ N. A. Scher
                                                     Norman A. Scher