--- applet.c.orig	2008-11-09 00:20:44.000000000 -0500
+++ applet.c	2008-11-09 01:35:28.000000000 -0500
@@ -67,6 +67,8 @@
 	g_signal_connect (G_OBJECT (applet->applet), "button-press-event", G_CALLBACK (icon_clicked_cb), NULL);
 	g_signal_connect (G_OBJECT (applet->dialog), "focus-out-event", G_CALLBACK (focus_out_cb), NULL);
 	g_signal_connect (G_OBJECT (applet->dialog), "key-press-event", G_CALLBACK (key_press_cb), applet->terminal);
+	g_signal_connect (G_OBJECT (applet->terminal), "child-exited", G_CALLBACK (exited_cb), NULL);
+
 	// Set up the config client
 	init_settings (applet);
 	//Show the applet

--- awnterm.h.orig	2008-11-09 00:06:08.000000000 -0500
+++ awnterm.h	2008-11-09 01:34:54.000000000 -0500
@@ -46,6 +46,7 @@
 // Callback when a key is pressed. We check for the keyboard shortcuts for copy and paste. If they're found, we act accordingly.
 gboolean key_press_cb (GtkWidget *window, GdkEventKey *event, GtkWidget *terminal);
 
-// Callback when the vte terminal widget quits. This doesn't do anything yet.
+// Callback when "exit" command is executed
 void exited_cb (GtkWidget *terminal, gpointer null);
+
 #endif /*AWNTERM_H_*/

--- awnterm.c.orig	2008-11-09 00:06:08.000000000 -0500
+++ awnterm.c	2008-11-09 01:45:47.000000000 -0500
@@ -96,8 +96,17 @@
 	}
 }
 
-// This doesn't get called yet...
+// Callback when "exit" command is executed
 void exited_cb (GtkWidget *terminal, gpointer null)
 {
-	printf ("exited");
+	// fork new vte
+	vte_terminal_fork_command (VTE_TERMINAL (terminal),
+                                             NULL,
+                                             NULL,
+                                             NULL,
+                                             "~/",
+                                             FALSE,
+                                             FALSE,
+                                             FALSE);
+	gtk_widget_hide (applet->dialog);
 }