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Exhibit 10(j)(ii)(a)  

 
  ALBANY INTERNATIONAL RECEIVABLES CORPORATION    
  

Albany
International Corp.

Geschmay Corp.

Albany International Research Co.

Albany International Techniweave, Inc.

Albany International Canada Inc.

M & I Door Systems Ltd. 

	 
	 	 

	Re:	 	Exhibit A to Purchase and Sale Agreement dated as of

September 28, 2001 (the "Agreement")

Ladies
and Gentlemen: 

        The
undersigned, Albany International Receivables Corporation, as Buyer under the Agreement, hereby proposes to amend Exhibit A of the Agreement as follows: 

	1.
	The
Historical Loss Factor, which is described as 0.6% of the Face Amount of receivables sold to Buyer, is amended to 0.1%.

	2.
	The
Payment Timing Adjustment shall be revised so that it is equal to the product of (i) the Face Amount of receivables purchased pursuant to the Purchase Agreement, multiplied
by (ii) 0.40% of the Discount Rate applicable to such purchased receivables under the Receivables Sale Agreement (for calculation of the initial Payment Timing Adjustment applicable on
September 28, 2001, the Discount Rate is deemed to be 2.7%), multiplied by (iii) the fraction the numerator of which is the average tenor, expressed in days, of each Originator's pool,
and the denominator of which is 360. 

        These
changes in pricing terms shall be effective March 1, 2002. Capitalized terms used but not defined above shall have the meanings ascribed to them in the Agreement. 

        Please
indicate your acceptance of the foregoing by executing in the space provided below your name. 

	 	 	Very truly yours,
	

 	
 	
ALBANY INTERNATIONAL

RECEIVABLES CORPORATION
	

 	
 	
By:	

/s/  DAVID C. MICHAELS      
 David C. Michaels, President & Treasurer

2

 

	ACCEPTED BY:	 
	
ALBANY INTERNATIONAL CORP.	

 
	

By:	

/s/  JOHN C. TREANOR      
	

 
	Name: John C. Treanor

Title: Treasurer	 
	
GESCHMAY CORP.	

 
	

By:	

/s/  CHARLES J. SILVA, JR.      
	

 
	Name: Charles J. Silva, Jr.

Title: Vice President and Secretary	 
	
ALBANY INTERNATIONAL RESEARCH CO.	

 
	

By:	

/s/  CHARLES J. SILVA, JR.      
	

 
	Name: Charles J. Silva, Jr.

Title: Vice President	 
	
ALBANY INTERNATIONAL TECHNIWEAVE, INC.	

 
	

By:	

/s/  CHARLES J. SILVA, JR.      
	

 
	Name: Charles J. Silva, Jr.

Title: Secretary	 
	
ALBANY INTERNATIONAL CANADA INC.	

 
	

By:	

/s/  WILLIAM M. MCCARTHY      
	

 
	Name: William M. McCarthy

Title: President	 
	
M & I DOOR SYSTEMS LTD.	

 
	

By:	

/s/  CHARLES J. SILVA, JR.      
	

 
	Name: Charles J. Silva, Jr.

Title: Vice President	 

3

 
 
 

EXHIBIT A
  
    See Attached    
  

4

 
 
 

Flow of Funds; Determination of Purchase Price of Receivables    
  

        Reference is made herein to (a) the Purchase and Sale Agreement (the "Purchase Agreement"), dated as of September 28, 2001, among Albany
International Corp. ("Parent"), Albany International Receivables Corporation ("AIRC"), and certain other subsidiaries of Albany International Corp. (Parent, AIRC and such other subsidiaries,
collectively, the "Originators"), relating, among other things, to the purchase by AIRC of accounts receivable from the Originators, and (b) the Receivables Sale Agreement (the "Receivables
Sale Agreement"), also dated as of September 28, 2001, among AIRC, Parent as Collection Agent, ABN AMRO Bank N.V. as Agent, the Committed Purchasers described therein and Amsterdam Funding
Corporation, relating, among other things, to the financing by the AIRC of certain receivables which it purchases from the Originators. 

        The
undersigned agree that, in connection with the closing of the initial purchase of receivables pursuant to the Purchase Agreement, the following information is accurate: 

	Originator
 
	 	Face

Amount of

receivables

sold to

AIRC
	 	Historical

Loss Factor

(0.6% of

Face

Amount of

receivables

sold to

AIRC)
	 	Payment

Timing

Adjustment1
	 	Net Purchase

Price (Face

amount less

Historical

Loss Factor

less Payment

Timing

Adjustment)

paid by AIRC
	 	Cash Portion

of Net

Purchase

Price Paid by

AIRC
	 	Portion of Net

Purchase Price

evidenced by

AIRC

Promissory Note to

indicated

Originator

	Albany International Corp.	 	$	44,070,896	 	$	264,425	 	$	154,033	 	$	43,652,437	 	$	26,219,573	 	$	16,682,8652
	Albany International Research Co.	 	$	194,498	 	$	1,167	 	$	430	 	$	192,901	 	$	115,715	 	$	77,186
	Geshmay Corp.	 	$	4,645,683	 	$	27,874	 	$	14,085	 	$	4,603,723	 	$	2,763,906	 	$	1,839,817
	Albany International Techniweave, Inc.	 	$	1,645,187	 	$	9,871	 	$	7,684	 	$	1,627,631	 	$	978,789	 	$	648,843
	Albany International Canada, Inc.	 	$	15,313,387	 	$	91,880	 	$	135,152	 	$	15,086,355	 	$	9,110,558	 	$	5,975,797
	M&I Door Systems, Ltd.	 	$	657,285	 	$	3,944	 	$	4,686	 	$	648,656	 	$	391,046	 	$	257,610
	TOTALS:	 	$	66,526,936	 	$	390,719	 	$	316,071	 	$	65,811,703	 	$	39,579,5863	 	$	25,482,117

	1.
	Payment
Timing Adjustment equals the product of (i) the face amount of receivables purchased pursuant to the Purchase Agreement, multiplied by (ii) 0.25% plus the
Discount Rate applicable to such purchased receivables under the Receivables Sale Agreement (for calculation of the initial Payment Timing Adjustment applicable on September 28, 2001, the
Discount Rate is deemed to be 2.7%), multiplied by (iii) the fraction the numerator of which is the average tenor, expressed in days, of each originators' pool, less 13 days to adjust
for the approximate number of days elapsed from the original date of sale to the date of the receivable sale, over 360.

	2.
	Albany
International Corp. has made a $750,000 contribution to the capital of Albany International Holdings Two, Inc., which has made a back-to-back
$750,000 contribution to the capital of AIRC. This series of capital contributions has been effected by reducing the principal amount of the Promissory Note payable by AIRC to Albany International
Corp. by $750,000.

	3.
	This
cash amount equals the amount of cash which AIRC received on the date hereof from Amsterdam Funding Corporation in respect of transactions closed under the Receivables Sale
Agreement. 

                        *                
        *                        *          
              *                        *   
                     *                     
   
 

5

 

        The
following transactions occurred on the date hereof: 

	a.
	The
capital contributions referred to in note 1 above were made, through reduction of the principal amount of the Promissory Note payable to Albany International Corp.

	b.
	The
applicable cash portion of the Net Purchase Price was paid by AIRC to each Originator.

	c.
	Each
Originator (other than Albany International Corp.) paid the cash portion so received to Albany International Corp. as a dividend, return of capital, or repayment of intercompany
indebtedness.

	d.
	Albany
International Corp. made a payment in reduction of its bank debt in an aggregate amount equal to the aggregate cash portion received by all Originators (i.e. the amount shown in
the "TOTALS" row for the column entitled "Cash Portion of Net Purchase Price Paid by AIRC").

	e.
	To
effect the foregoing transactions, the Originators and AIRC hereby agree that AIRC will instruct Amsterdam to pay, pursuant to the Receivables Sale Agreement, an amount equal to
such aggregate cash portion directly to Albany International Corp.'s bank lenders in accordance with the instructions of Albany International Corp. 

        The
undersigned further agree that the purchase price for receivables purchased by AIRC from time to time pursuant to the Purchase Agreement will equal (i) the face amount of such
receivables, less (ii) the Historical Loss Factor (computed as indicated above), less (iii) the Payment Timing Adjustment (computed as indicated above). 

        [Signature
Page Follows] 

6

 

        IN
WITNESS WHEREOF, the undersigned have executed this Flow of Funds as of this 28th day of September, 2001. 

	 
	 	 
	 	 
	 	 

	ALBANY INTERNATIONAL CORP.	 	ALBANY INTERNATIONAL RESEARCH CO.
	

By:	
 	

 	
 	

By:	
 	

 
	 	 	
 Name: William M. McCarthy

Title: Group Vice President

Secretary	 	 	 	
 Name: Charles J. Silva, Jr.

Title: Vice President & Assistant
	
GESHMAY CORP.	
 	

ALBANY INTERNATIONAL TECHNIWEAVE, INC.
	

By:	
 	

 	
 	

By:	
 	

 
	 	 	
 Name: John C. Treanor

Title: Treasurer & Assistant Secretary	 	 	 	
 Name: John C. Treanor

Title: Treasurer & Assistant Secretary
	
ALBANY INTERNATIONAL CANADA, INC.	
 	

M&I DOOR SYSTEMS, LTD.
	

By:	
 	

 	
 	

By:	
 	

 
	 	 	
 Name: William M. McCarthy

Title: President	 	 	 	
 Name: Charles J. Silva, Jr.

Title: Vice President & Secretary
	
ALBANY INTERNATIONAL RECEIVABLES CORPORATION
	

By:	
 	

 	
 	

 	
 	

 
	 	 	
 Name: David C. Michaels

Title: President	 	 	 	 
	
ALBANY INTERNATIONAL HOLDINGS TWO, INC.
	

By:	
 	

 	
 	

 	
 	

 
	 	 	
 Name: Charles J. Silva, Jr.

Title: Vice President & Secretary	 	 	 	 

7

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ALBANY INTERNATIONAL RECEIVABLES CORPORATION

EXHIBIT A See Attached

Flow of Funds; Determination of Purchase Price of Receivables<PAGE>

EXHIBIT 10.7

                        INCENTIVE STOCK OPTION AGREEMENT

INCENTIVE STOCK OPTION AGREEMENT made as of the 28th day of January, 2003 (the
"Grant Date"), between Marine Products Corporation, a Delaware corporation
(hereinafter called the "Company"), and ((Employee Name)), an employee of the
Company or one or more of its subsidiaries (hereinafter called the "Employee").

WHEREAS, the Company desires to afford the Employee an opportunity to purchase
shares of its Common Stock, par value $0.10 per share (hereinafter called the
"Common Stock"), pursuant to the terms and provisions of the Company's 2001
Employee Stock Incentive Plan (hereinafter called the "Plan"), as hereinafter
provided.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth
and Employee's employment by the Company, the parties hereto agree as follows:

         THE PLAN. This Option Agreement is made pursuant to and in accordance
with the terms and provisions of the Plan. Anything in this Option Agreement to
the contrary notwithstanding, the terms and provisions of the Plan, all of which
are hereby incorporated herein by reference, shall be controlling in the event
of any inconsistency herewith.

       1.     GRANT OF OPTION. The Company hereby irrevocably grants to the
              Employee the right and option (hereinafter called the "Option"),
              to purchase all or any part of an aggregate of
                  ((Grant Amount)) shares of Common Stock (subject to adjustment
                  as provided in Paragraph 8 hereof), on the terms and
                  conditions hereinafter set forth.

       2.     PURCHASE PRICE. The purchase price of the shares of Common Stock
              covered by the Option shall be $10.22 per share, which amount is
              at least 100% of fair market value of such shares at the date
              hereof, determined in accordance with the Plan, or 110% of such
              value if Employee owns more than 10% of the voting stock of the
              Company.

       3.     VESTING. No portion of the Option shall be exercisable prior to
              January 28, 2004; beginning on such date, the Option shall become
              exercisable as follows:

                     With respect to X shares, on or after January 28, 2004;

                     With respect to X shares, on or after January 28, 2005;

                     With respect to X shares, on or after January 28, 2006;

                     With respect to X shares, on or after January 28, 2007;
                     and,

<PAGE>

                     With respect to X shares, on or after January 28, 2008.

       4.     TERM OF OPTION. To the extent vested pursuant to Section 3, each
              portion of the Option shall remain exercisable through the period
              ending ten (10) years after the date of the grant, subject to
              earlier termination as provided in Section 7 hereof.

       5.     ADMINISTRATION. Unless administration of the Plan is assumed by
              the Board of Directors of the Company, the Plan shall be
              administered by a committee of the Board of Directors of the
              Company constituted in accordance with the Plan, (hereinafter
              referred to as the "Committee".) The Committee is authorized and
              empowered to administer and interpret the Plan and this Option
              Agreement. Any interpretations of this Option Agreement or of the
              Plan made by the Committee shall be final and binding upon the
              parties hereto.

       6.     NON-TRANSFERABILITY. The Option shall not be assignable nor
              transferable except by will or by the laws of descent and
              distribution and shall not be subject to execution, attachment or
              other process. Except as set forth in the Plan, during the
              lifetime of the Employee, the Option shall be exercisable only by
              the Employee. After the death of the Employee, the Option may be
              exercised prior to its termination as set forth in Section 7(b)
              hereof. Employee hereby agrees to retain ownership of, and to
              refrain from transferring, all shares of Common Stock obtained
              upon exercise of the Option for a period of twelve months after
              the date on which such Common Stock is obtained pursuant to the
              exercise of the Option; provided, however, that such twelve month
              transfer restriction shall be rescinded and shall no longer have
              any applicability following Employee's death, Normal Retirement
              (as defined in the Plan) or permanent disability (as determined by
              the Committee in accordance with the Plan). The Company may, at
              its discretion, place a legend to such effect on the certificates
              representing the shares of Common Stock obtained upon exercise of
              the option and issue appropriate stop transfer instructions to the
              Company's transfer agent.

       7.     TERMINATION. The Option may not be exercised by the Employee
              unless he/she, at the time of the exercise, shall have been in the
              continuous employ of the Company or a subsidiary thereof, in a
              position of equivalent or greater responsibility as on the Grant
              Date, except as follows:

              (a)    If, prior to the expiration of the Option, Employee's
                     employment terminates by reason of permanent disability (as
                     determined by the Committee in accordance with the Plan),
                     Employee or his/her guardian may exercise the Option
                     through the earlier of (i) such date of expiration, or (ii)
                     one year after the date of termination of employment, to
                     the extent that the Option was exercisable at the date of
                     termination of employment.

                                       2
<PAGE>

              (b)    If Employee dies while in the employ of the Company or a
                     subsidiary without having fully exercised the Option, the
                     Option may be exercised prior to its expiration and within
                     six (6) months of the date of death, to the extent the
                     Option was exercisable at the date of death, by the legal
                     representative of the estate or by the legatee of the
                     Employee under the Employee's will.

              (c)    If, prior to the expiration of the Option, Employee's
                     employment terminates by reason of Normal or Early
                     Retirement (as defined in the Plan), Employee may exercise
                     the Option through the earlier of (i) such date of
                     expiration, or (ii) one day less than three months after
                     the Retirement date, to the extent the Option was
                     exercisable at such Retirement date.

              The termination of employment of an Employee for any reason shall
              not accelerate or otherwise affect the number of shares with
              respect to which the Option may be exercised.

       8.     CHANGE IN CAPITALIZATION. In general, if the Company is merged
              into or consolidated with another corporation under circumstances
              in which the Company is not the surviving corporation, or if the
              Company is liquidated, or sells or otherwise disposes of
              substantially all of its assets to another corporation (any such
              merger, consolidation, etc. being hereinafter referred to as a
              "Non-Acquiring Transaction") while the Option is outstanding under
              the Plan, after the effective date of a Non-Acquiring Transaction
              Employee shall be entitled, upon exercise of the Option, to
              receive such stock or other securities as the holders of the same
              class of stock as those shares subject to the Option shall be
              entitled to receive in such Non-Acquiring Transaction based upon
              the agreed upon conversion ratio or per share distribution.
              However, in the discretion of the Board of Directors, any
              limitations on exercisability of the Option may be waived so that
              the Option, from and after a date prior to the effective date of
              such Non-Acquiring Transaction, shall be exercisable in full.
              Furthermore, in the discretion of the Board of Directors, the
              right to exercise may be given to Employee during a 30-day period
              preceding the effective date of such Non-Acquiring Transaction. If
              the Option is not exercised within such 30-day period it may be
              canceled by the Board of Directors as of the effective date of any
              such Non-Acquiring Transaction. To the extent that the foregoing
              adjustments relate to stock or securities of the Company, such
              adjustments shall be made by the Board of Directors, whose
              determination in that respect shall be final, binding and
              conclusive. The Committee need not treat other optionees and/or
              options in the same manner as Employee and the Option are treated.
              In no case shall the Company be required to sell a fractional
              share of Common Stock, and the total adjustment as set forth above
              shall be limited accordingly.

                                       3
<PAGE>

       9.     METHOD OF EXERCISING THE OPTION. Subject to the vesting provisions
              of Section 4 hereof, the Employee may exercise the Option in full
              or in part by written notice to the Company, delivered in person
              to the Treasurer of the Company or mailed, by registered mail,
              return receipt requested, to the Company's principal office at
              Atlanta, Georgia, attention of the Treasurer of the Company;
              provided, however, that if exercised in part, the Option may not
              be exercised for fewer than 100 shares, unless the remaining
              balance of the Option is less than 100 shares, in which case the
              Option may be exercised for the remaining balance. The written
              notice shall state the Employee's intention to exercise the Option
              and the number of shares in respect to which it is being exercised
              and shall be signed by the Employee or a legatee or personal
              representative of the Employee, as applicable. Such notice shall
              be accompanied by payment of the full purchase price of the
              shares, and instructions shall be given as to the address to which
              the stock certificates shall be mailed. The purchase price for the
              shares as to which the Option shall be exercised from time to time
              shall be paid in full in cash and/or unrestricted shares of Common
              Stock already owned by the optionee for a period of at least six
              months, based, in each case, on the Fair Market Value (as defined
              in the Plan) of the shares on the date the Option is exercised,
              unless it shall be determined by the Committee, at any time
              hereafter, in its sole discretion, that unrestricted shares of
              Common Stock are not a permissible form of payment with respect to
              the Option. No shares may be purchased if the Employee is not at
              the time of exercise in the employ of the Company, or a
              subsidiary, except as provided in Section 8.

       10.    REQUIREMENT OF LAW. If any law, regulation of the Securities and
              Exchange Commission, or any regulation of any other commission or
              agency having jurisdiction shall require the Company or the
              Employee to take any action with respect to the shares of Common
              Stock acquired by the exercise of the Option, then the date upon
              which the Company shall deliver or cause to be delivered the
              certificate or certificates for the shares of Common Stock shall
              be postponed until full compliance has been made with all such
              requirements or law or regulations. Further, at or before the time
              of the delivery of the shares with respect to which exercise of
              the Option has been made, the Employee shall, if requested by the
              Company, deliver to the Company his/her written statement that
              he/she intends to hold the shares so acquired by him on exercise
              of the Option for investment and not with a view to resale or
              other distribution thereof to the public. Further, in the event
              the Company shall determine that, in compliance with the
              Securities Act of 1933, as amended, or other applicable statute or
              regulation, it is necessary to register any of the shares of
              Common Stock with respect to which an exercise of the Option has
              been made, or to qualify any such shares for exemption from any of
              the requirements of the Securities Act of 1933, as amended, or
              other applicable statute or regulations, then the Company shall
              take such action at its own expense, but not until such action has
              been completed shall the Option shares be delivered to the
              Employee.

                                       4
<PAGE>

       11.    NO EFFECT ON EMPLOYMENT. Nothing herein shall be construed to
              grant Employee the right to continued employment with the Company,
              to limit or restrict the right of the Company or any of its
              subsidiaries to terminate an Employee's employment at any time,
              with or without cause, or to increase or decrease the compensation
              of the Employee from the rate in existence at the date hereof.

       12.    INCENTIVE STOCK OPTION. The Option granted hereunder has been
              designated as an "Incentive Stock Option" pursuant to Section 422
              of the Code (as defined in the Plan); provided, however, that to
              the extent that the Option fails for any reason to comply with the
              provisions of Section 422, it shall be treated as a Non-Qualified
              Stock Option (as defined in the Plan). The Company shall have no
              liability whatsoever to Employee in the event the Option fails for
              any reason to satisfy the requirements for Incentive Stock Options
              set forth in Section 422.

       13.    GOVERNING LAW. This Agreement and all awards made and actions
              taken hereunder shall be governed by and construed in accordance
              with the Delaware General Corporation Law, to the extent
              applicable, and in accordance with the laws of the State of
              Georgia in all other respects.

IN WITNESS WHEREOF, the Company has caused this Incentive Stock Option Agreement
to be duly executed by an authorized officer, and the Employee has hereunto set
his/her hand, all as of the day and year first above written.

                                    Marine Products Corporation

                                    By:
                                        ----------------------------------
                                    Its:  President

                                    --------------------------------------
                                    Employee Name

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