Document:

exhibit10_2.htm

    
      FOURTH
        AMENDMENT TO REVOLVING
        CREDIT

      AND
        TERM LOAN
        AGREEMENT

      

      

      THIS
        FOURTH AMENDMENT TO REVOLVING CREDIT AND TERM LOAN AGREEMENT (“Amendment”) is
        made effective this 27th day of November, 2007, by and between ADDVANTAGE TECHNOLOGIES
        GROUP,
        INC., an Oklahoma corporation (“Borrower”) and BANK OF OKLAHOMA,
        N.A.
        (“Lender”).

      

      RECITALS

      

      A.           Reference
        is made to the Revolving Credit and Term Loan Agreement between Borrower
        and
        Lender dated September 30, 2004, and amended September 30, 2005, September
        30,
        2006, and November 20, 2006 (as amended, the “Credit Agreement”), pursuant to
        which exists a $7,000,000 Revolving Line, an $8,000,000 Term Loan with an
        outstanding balance of $4,300,000 as of the date hereof, and a $2,760,000
        Term
        Loan with an outstanding balance of $2,591,326 as of the date
        hereof.  Terms used herein shall have the meanings ascribed to them in
        the Credit Agreement unless otherwise defined herein.

      

      B.           Borrower
        has requested that Lender (i) extend the maturity of the $7,000,000 Revolving
        Line and (ii) extend the maturity of and increase the $8,000,000 Term Loan
        to
        $16,300,000, with the additional proceeds to be used for the purpose of purchase
        of the remaining $12,000,000 preferred stock owned by Ken and David Chymiak;
        and
        Lender is willing to accommodate such requests pursuant to the terms and
        conditions set forth in this Amendment.

      AGREEMENT

      

      NOW,
        THEREFORE, in consideration of the mutual covenants contained herein, Borrower
        and Lender do hereby agree as follows:

      

      1.  AMENDMENTS
        TO THE CREDIT
        AGREEMENT.

      

      1.1.  Section
        1.30 (Letter of Credit Fee) is hereby amended to reflect that the Letter
        of
        Credit Fee, formerly “one and one-half percent (1.50%) per annum” shall now be
“one and four 

          tenths
        percent
        (1.40%) per annum”.

      1.2.  Section
        1.39 (Note Rate) is hereby deleted and replaced with the following:

       

                    “1.38.  ‘Note
        Rate’ shall mean
        the LIBOR Rate plus
        one and
        four tenths percent (1.40%) per annum.”

      

      1.3.  Section
        2.1 ($8,000,000 Term Loan) is hereby amended to reflect that the principal
        amount of said loan is being increased to $16,300,000.  All references
        throughout the Credit   

          Agreement
        and other
        Loan Documents to the “$8,000,000 Term Loan” and the “$8,000,000 Term Note”
shall now mean and read “$16,300,000 Term Loan” and
        

          “$16,300,000
        Term
        Note”, respectively.

      

      1.4.  A
        new
        Section 2.4 is hereby added, as follows:

       

                
“2.4.  Interest
        Credit.  Lender shall attempt to provide Borrower $300,000 in
        Oklahoma state income tax credits each year (“Tax Credits”), commencing with the
        calendar year ending 

          December
        31, 2008 and
        ending with the calendar year ending December 31, 2012.  For any said
        calendar year in which Lender is not able to provide the Tax Credits, Lender
        

          shall
        provide an
        interest credit to Borrower in an amount equal to fifteen hundredths of one
        percent (0.15%) of the average outstanding balance under the Revolving Credit
        and 

          Term
        Loan Agreement
        (including the $7,000,000 Revolving Line, the $16,300,000 Term Loan, and
        the
        $2,760,000 Term Loan) during that year, effective for the first interest

          payment
        due in the
        following calendar year.”

      1.5.  A
        new
        Section 3.3 is hereby added, as follows:

      

      “3.3.  Key
        Man Life
        Insurance.  As additional security for the Loan, Borrower shall
        maintain a life insurance policy on the life of David Chymiak in an amount
        of
        not less than $5,000,000, 

          the
        proceeds of which
        shall be assigned to Lender pursuant to the Assignment of Life Insurance
        Policy
        as Collateral, in form and content as set forth on Schedule ‘3.3’
        hereto.”

      1.6.  Section
        7.11 (Dividends, Stock Redemptions) is hereby deleted and replaced with the
        following:

      

      “7.11.  Dividends,
        Stock
        Redemptions.  Directly or indirectly declare or pay any
        dividend on, or make any other distribution with respect to (whether by
        reduction of capital or otherwise), 

          any
        shares of its
        capital stock or make any advances or loans to stockholders; provided, however,
        that this covenant shall terminate upon the earlier to occur of (i) the payment
        

          in
        full of all
        Obligations under the $16,300,000 Term Loan, or (ii) Borrower’s maintaining a
        Leverage Ratio of less than 1.5 to 1.0 for four (4) consecutive
        quarters.”

      1.7.  Section
        8.3 (Effective Net Worth) is hereby deleted in its entirety.

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      2.  CONDITIONS
        PRECEDENT.  This Amendment and Lender's commitments under the
        Credit Agreement as amended hereby are conditioned upon satisfaction of the
        following at or before closing:

      

                  
        

      
                         
          2.1.  Borrower
          shall execute and /or deliver to Lender the following:

         

      

      2.1.1.  This
        Amendment;

      

      2.1.2.  The
        $7,000,000 promissory Note in form and content set forth on Schedule “2.1.2” to
        this Amendment;

      

      2.1.3.  The
        $16,300,000 promissory Note in form and content set forth on Schedule “2.1.3” to
        this Amendment;

      

      2.1.4.  The
        Assignment of Life Insurance Policy as Collateral in form and content set
        forth
        on Schedule
“2.1.4” to this
        Amendment;

      

      2.1.5.  Certificates
        of Good Standing from the Borrower and each of the Guarantors; and

      

      2.1.6.  any
        other
        instruments, documents or agreements reasonably requested by Lender in
        connection herewith.

      

      3.  Representations.  As
        inducement for Lender to agree to this Amendment, the Borrower represents
        and
        warrants to Lender as follows: (i) all representations and warranties set
        forth
        in the Credit Agreement and other Loan Documents remain true and correct
        as of
        the date hereof, and all schedules remain true and correct; (ii) no Initial
        Default or Matured Default exists under the Credit Agreement or any other
        Loan
        Documents, and none shall arise as a result of the execution and performance
        under this Amendment and/or any documents executed and/or delivered by Borrower
        in connection herewith.

      

      4.  Ratification
        of and
        Amendment to Documents.  Borrower hereby ratifies and confirms
        the Credit Agreement, together with all security agreements, financing
        statements, instruments, documents and/or agreements executed and/or delivered
        by Borrowers to Lender in connection therewith (ALoan
        Documents@),
        and Borrower acknowledges, agrees, represents and warrants that the Loan
        Documents are in full force and effect, binding and enforceable in accordance
        with their terms.

      

      5.  Ratification
        of
        Guaranty.  Each Guarantor, by execution of the ratification
        following the signature page hereof, hereby agrees to the renewal of the
        $7,000,000 Revolving Line and the increase of the $8,000,000 Term Loan to
        $16,300,000, and hereby ratifies and confirms its Guaranty Agreement; and
        further confirms that, after giving effect to the amendments provided for
        herein, the Guaranty Agreement shall continue in full force and effect, and
        that
        each representation and warranty set forth therein remains true and correct
        as
        of the date hereof, and that the guaranteed indebtedness additionally includes
        the $16,300,000 Promissory Note, together with extensions and renewals
        thereto.

      

      6.  Governing
        Law and Binding
        Effect.  This Amendment shall be governed by and construed in
        accordance with the laws of the State of Oklahoma, and it, together with
        all
        documents executed and delivered in connection herewith, shall be binding
        upon
        the parties hereto, their respective successors and assigns.

      

      7.  USA
        Patriot Act
        Notification.  IMPORTANT INFORMATION ABOUT PROCEDURES FOR
        OPENING A NEW ACCOUNT.  To help the government fight the funding of
        terrorism and money laundering activities, Federal law requires all financial
        institutions to obtain, verify, and record information that identifies each
        person or entity that opens an account, including any deposit account, treasury
        management account, loan, other extension of credit, or other financial services
        product.  What this means for Borrower:  When Borrower opens
        an account, if Borrower is an individual, Lender will ask for Borrower's
        name,
        taxpayer identification number, residential address, date of birth, and other
        information that will allow Lender to identify Borrower, and, if Borrower
        is not
        an individual, Lender will ask for Borrower's name, taxpayer identification
        number, business address, and other information that will allow Lender to
        identify Borrower.  Lender may also ask, if Borrower is an individual,
        to see Borrower's driver’s license or other identifying documents, and, if
        Borrower is not an individual, to see Borrower's legal organizational documents
        or other identifying documents.

      

      8.   Fees.  Borrower
        shall not be obligated to pay the attorney fees incurred by Bank in connection
        with the preparation of this Amendment.

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
        by
        their respective officers thereunto duly authorized, as of the date first
        above
        written.

      "Borrower"

      

      ADDVANTAGE
        TECHNOLOGIES GROUP,
        INC., an Oklahoma corporation

      

      

      By
/s/
        Ken
        Chymiak

            Ken
        Chymiak, President and Chief

                        Executive
        Officer

      

      

      

      “Lender"

      

      BANK
        OF OKLAHOMA,
        N.A.

      

      

      By
/s/
        W. Mack
        Renner

           W.
        Mack Renner, Vice President

       

      RATIFICATION
        OF
        GUARANTY

      

      As
        inducement for the Lender to enter into the Fourth Amendment to Revolving
        Credit
        and Term Loan Agreement (“Amendment”) dated effective November 27, 2007, to
        which this Ratification is affixed, the undersigned Guarantors each hereby
        agree
        to Section 5 of the Amendment and further hereby ratifies and confirms its
        Guaranty Agreement.

      

      

      Tulsat
        Corporation, an
        Oklahoma corporation

      

      

      By
/s/
        David
        Chymaik

            David
        Chymiak, President

      

      ADDvantage
        Technologies Group of
        Missouri, Inc., a Missouri corporation

      

      

      By
/s/
        David
        Chymiak

           David
        Chymiak, Vice President

      

      ADDvantage
        Technologies Group of
        Nebraska, Inc., a Nebraska corporation

      

      

      By
/s/
        Ken
        Chymiak

           Ken
        Chymiak, Vice President

      

      ADDvantage
        Technologies Group of
        Texas, Inc., a Texas corporation

      

      

      By
/s/
        Ken
        Chymiak

            Ken
        Chymiak, Vice President

      

      NCS
        Industries, Inc., a
        Pennsylvania corporation

      

      

      By
/s/
        David
        Chymiak

            David
        Chymiak, President

      

      Tulsat-Atlanta,
        L.L.C., an
        Oklahoma limited liability company

      (a
        subsidiary of Tulsat Corporation)

      

      By:   ADDvantage
        Technologies Group, Inc.,

              Its
        sole member and Manager

      

      

      By
/s/
        David
        Chymaik

                   David
        Chymiak, Chairman of the Board

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      Schedule
        "2.1.2"

      

      PROMISSORY
        NOTE

      

      $7,000,000 November
        27, 2007

       Tulsa,
        Oklahoma

      

      FOR
        VALUE
        RECEIVED, the undersigned, ADDVANTAGE TECHNOLOGIES
        GROUP,
        INC., an Oklahoma corporation ("Maker"), promises to pay to the order
        of
BANK OF OKLAHOMA, N.A.
        ("Lender"), at its offices in Tulsa, Oklahoma, the principal sum of SEVEN
        MILLION AND NO/100 DOLLARS ($7,000,000.00) or, if less, the aggregate sum
        of
        advances made by Lender to Maker under the Revolving Credit and Term Loan
        Agreement between Maker and Lender dated September 30, 2004 (as amended,
        the
“Credit Agreement”), payable as follows:

      

      
        	
                 

              	
                a.

              	
                Principal.  Principal
                  shall be payable on November 30,
                  2010.

              

      

      

      
        	
                 

              	
                b.

              	
                Interest.  Interest
                  shall be payable quarterly on the last day of each February, May,
                  August,
                  and November, commencing February 29, 2008, and at
                  maturity.  Interest shall accrue on the principal balance
                  outstanding hereunder and on any past due interest hereunder at
                  a rate at
                  all times equal to the Note Rate (defined in the Credit
                  Agreement).

              

      

      

      If
        any
        payment shall be due on a Saturday or Sunday or upon any other day on which
        state or national banks in the State of Oklahoma are closed for business
        by
        virtue of a legal holiday for such banks, such payment shall be due and payable
        on the next succeeding banking day and interest shall accrue to such
        day.  All interest due hereon shall be computed on the actual number
        of days elapsed (365 or 366) based upon a 360-day year.

      

      Such
        installment payments are to be applied first to the payment of interest on
        the
        principal balance from time to time remaining unpaid at the aforesaid rate,
        and
        any balance shall be used to reduce the principal balance; except that if
        any
        advances made by the holder hereof under the terms of any instrument, document
        or agreement executed by Maker in connection herewith have not been repaid,
        any
        monies received may, at the option of holder, be applied first to repay such
        advances and interest thereon, and the balance, if any, applied to any
        installment then due.  Any prepayments shall be applied to
        installments in the inverse order of occurrence.

      

      All
        payments under this Note shall be made in legal tender of the United States
        of
        America or in other immediately available funds at Lender's office described
        above, and no credit shall be given for any payment received by check, draft
        or
        other instrument or item until such time as the holder hereof shall have
        received credit therefor from the holder's collecting agent or, in the event
        no
        collecting agent is used, from the bank or other financial institution upon
        which said check, draft or other instrument or item is drawn.

      

      From
        time
        to time the maturity date of this Note may be extended or this Note may be
        renewed, in whole or in part, or a new note of different form may be substituted
        for this Note and/or the rate of interest may be changed, or changes may
        be made
        in consideration of loan extensions, and the holder, from time to time, may
        waive or surrender, either in whole or in part, any rights, guarantees, security
        interests or liens given for the benefit of the holder in connection herewith;
        but no such occurrences shall in any manner affect, limit, modify or otherwise
        impair any rights, guarantees or security of the holder not specifically
        waived,
        released or surrendered in writing, nor shall any maker, guarantor, endorser
        or
        any person who is or might be liable hereon, either primarily or contingently,
        be released from such liability by reason of the occurrence of any such
        event.  The holder hereof, from time to time, shall have the unlimited
        right to release any person who might be liable hereon; and such release
        shall
        not affect or discharge the liability of any other person who is or might
        be
        liable hereon.

      

      If
        any
        payment required by this Note to be made is not made within five (5) days
        of
        when due, or if any default occurs under any loan agreement or under the
        provisions of any mortgage, security agreement, assignment, pledge or other
        document or agreement which provides security for the indebtedness evidenced
        by
        this Note, the holder hereof may, at its option, without notice or demand,
        declare this Note in default and all indebtedness due and owing hereunder
        immediately due and payable.  Interest from the date of default on
        such principal balance and on any past due interest hereunder shall accrue
        at
        the rate of two percent (2%) per annum above the nondefault interest rate
        accruing hereunder.  The Maker and any endorsers, guarantors and
        sureties hereby severally waive protest, presentment, demand, and notice
        of
        protest and nonpayment in case this Note or any payment due hereunder is
        not
        paid when due; and they agree to any renewal, extension, acceleration,
        postponement of the time of payment, substitution, exchange or release of
        collateral and to the release of any party or person primarily or contingently
        liable without prejudice to the holder and without notice to the Maker or
        any
        endorser, guarantor or surety.  Maker and any guarantor, endorser,
        surety or any other person who is or may become liable hereon will, on demand,
        pay all costs of collection, including reasonable attorney fees of the holder
        hereof in attempting to enforce payment of this Note and reasonable attorney
        fees for defending the validity of any document securing this Note as a valid
        first and prior lien.

      

      Upon
        the
        occurrence of any default hereunder, Lender shall have the right, immediately
        and without further action by it, to set off against this Note all money
        owed by
        Lender in any capacity to the Maker or any guarantor, endorser or other person
        who is or might be liable for payment hereof, whether or not due, and also
        to
        set off against all other liabilities of Maker to Lender all money owed by
        Lender in any capacity to Maker; and Lender shall be deemed to have exercised
        such right of setoff and to have made a charge against such money immediately
        upon the occurrence of such default even though such charge is made or entered
        into the books of Lender subsequently thereto.

      

      The
        holder of this Note may collect a late charge not to exceed an amount equal
        to
        five percent (5%) of the amount of any payment which is not paid within ten
        (10)
        days from the due date thereof, for the purposes of covering the extra expenses
        involved in handling delinquent payments.  This late charge provision
        shall not be applicable in the event the holder hereof, at its option, elects
        to
        receive interest at the increased rate as provided hereunder in the event
        of
        default.

      

      This
        Note
        is given for an actual loan of money for business purposes and not for personal,
        agricultural or residential purposes, and is executed and delivered in the
        State
        of Oklahoma and shall be governed by and construed in accordance with the
        laws
        of the State of Oklahoma.

      

      This
        Note
        constitutes an extension of the $7,000,000 Promissory Note from Maker to
        Lender
        dated November 20, 2006.

      

      

      [Signature
        page follows.]

      

      [Signature
        Page to $7,000,000 Promissory Note]

      

      

      

      ADDVANTAGE
        TECHNOLOGIES GROUP,
        INC., an Oklahoma corporation

      

      

      By
/s/
        Ken
        Chymiak

                      Ken
        Chymiak, President and Chief

                       Executive
        Officer

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      Schedule
        "2.1.3"

      

      PROMISSORY
        NOTE

      

      $16,300,000 November
        27, 2007

       Tulsa,
        Oklahoma

      

      FOR
        VALUE
        RECEIVED, the undersigned, ADDVANTAGE TECHNOLOGIES
        GROUP,
        INC., an Oklahoma corporation ("Maker"), promises to pay to the order
        of
BANK OF OKLAHOMA, N.A.
        ("Lender"), at its offices in Tulsa, Oklahoma, the principal sum of SIXTEEN
        MILLION THREE HUNDRED THOUSAND AND NO/100 DOLLARS ($16,300,000.00) pursuant
        to
        the terms of the Revolving Credit and Term Loan Agreement between Maker and
        Lender dated September 30, 2004, and amended of even date herewith (as amended,
        the “Credit Agreement”).  Payments shall be due quarterly, on the last
        day of each February, May, August, and November, commencing February 28,
        2009,
        with the last payment, due November 30, 2012, equal to the outstanding balance
        of principal and interest hereunder.  Each payment shall consist of
        principal payments of $407,500 plus
        accrued
        interest.  Interest shall accrue on the principal balance outstanding
        hereunder and on any past due interest hereunder at a rate at all times equal
        to
        the Note Rate (defined in the Credit Agreement).

      

      If
        any
        payment shall be due on a Saturday or Sunday or upon any other day on which
        state or national banks in the State of Oklahoma are closed for business
        by
        virtue of a legal holiday for such banks, such payment shall be due and payable
        on the next succeeding banking day and interest shall accrue to such
        day.  All interest due hereon shall be computed on the actual number
        of days elapsed (365 or 366) based upon a 360-day year.

      

      All
        payments under this Note shall be made in legal tender of the United States
        of
        America or in other immediately available funds at Lender's office described
        above, and no credit shall be given for any payment received by check, draft
        or
        other instrument or item until such time as the holder hereof shall have
        received credit therefor from the holder's collecting agent or, in the event
        no
        collecting agent is used, from the bank or other financial institution upon
        which said check, draft or other instrument or item is drawn.

      

      From
        time
        to time the maturity date of this Note may be extended or this Note may be
        renewed, in whole or in part, or a new note of different form may be substituted
        for this Note and/or the rate of interest may be changed, or changes may
        be made
        in consideration of loan extensions, and the holder, from time to time, may
        waive or surrender, either in whole or in part, any rights, guarantees, security
        interests or liens given for the benefit of the holder in connection herewith;
        but no such occurrences shall in any manner affect, limit, modify or otherwise
        impair any rights, guarantees or security of the holder not specifically
        waived,
        released or surrendered in writing, nor shall any maker, guarantor, endorser
        or
        any person who is or might be liable hereon, either primarily or contingently,
        be released from such liability by reason of the occurrence of any such
        event.  The holder hereof, from time to time, shall have the unlimited
        right to release any person who might be liable hereon; and such release
        shall
        not affect or discharge the liability of any other person who is or might
        be
        liable hereon.

      

      If
        any
        payment required by this Note to be made is not made within five (5) days
        of
        when due, or if any default occurs under any loan agreement or under the
        provisions of any mortgage, security agreement, assignment, pledge or other
        document or agreement which provides security for the indebtedness evidenced
        by
        this Note, the holder hereof may, at its option, without notice or demand,
        declare this Note in default and all indebtedness due and owing hereunder
        immediately due and payable.  Interest from the date of default on
        such principal balance and on any past due interest hereunder shall accrue
        at
        the rate of two percent (2%) per annum above the nondefault interest rate
        accruing hereunder.  The Maker and any endorsers, guarantors and
        sureties hereby severally waive protest, presentment, demand, and notice
        of
        protest and nonpayment in case this Note or any payment due hereunder is
        not
        paid when due; and they agree to any renewal, extension, acceleration,
        postponement of the time of payment, substitution, exchange or release of
        collateral and to the release of any party or person primarily or contingently
        liable without prejudice to the holder and without notice to the Maker or
        any  endorser, guarantor or surety.  Maker and any
        guarantor, endorser, surety or any other person who is or may become liable
        hereon will, on demand, pay all costs of collection, including reasonable
        attorney fees of the holder hereof in attempting to enforce payment of this
        Note
        and reasonable attorney fees for defending the validity of any document securing
        this Note as a valid first and prior lien.

      

      Upon
        the
        occurrence of any default hereunder, Lender shall have the right, immediately
        and without further action by it, to set off against this Note all money
        owed by
        Lender in any capacity to the Maker or any guarantor, endorser or other person
        who is or might be liable for payment hereof, whether or not due, and also
        to
        set off against all other liabilities of Maker to Lender all money owed by
        Lender in any capacity to Maker; and Lender shall be deemed to have exercised
        such right of setoff and to have made a charge against such money immediately
        upon the occurrence of such default even though such charge is made or entered
        into the books of Lender subsequently thereto.

      

      The
        holder of this Note may collect a late charge not to exceed an amount equal
        to
        five percent (5%) of the amount of any payment which is not paid within ten
        (10)
        days from the due date thereof, for the purposes of covering the extra expenses
        involved in handling delinquent payments.  This late charge provision
        shall not be applicable in the event the holder hereof, at its option, elects
        to
        receive interest at the increased rate as provided hereunder in the event
        of
        default.

      

      This
        Note
        is given for an actual loan of money for business purposes and not for personal,
        agricultural or residential purposes, and is executed and delivered in the
        State
        of Oklahoma and shall be governed by and construed in accordance with the
        laws
        of the State of Oklahoma.

      

      This
        Note
        constitutes an increase and extension of the $8,000,000 Promissory Note from
        Maker to Lender dated September 30, 2004.

      

      

      [Signature
        Page to Follow]

      

      [Signature
        Page to $16,300,000 Promissory Note]

      

      

      ADDVANTAGE
        TECHNOLOGIES GROUP,
        INC., an Oklahoma corporation

      

      

      By
/s/
        Ken
        Chymiak

           Ken
        Chymiak, President and Chief

           Executive
        Officer

      

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      Schedule
        "2.1.4"

      

      ASSIGNMENT
        OF LIFE INSURANCE POLICY
        AS COLLATERAL

      

      

      "Insured"                                                                           "Bank"

      
        	
                 

                David
                  Chymiak

                ______________________

                ______________________

                 

              	 	
                 

                BANK
                  OF OKLAHOMA, N.A.

                P.O.
                  Box 2300

                Tulsa,
                  OK  74192

                 

                Attn:
                  W. Mack Renner

              
	 	 	 

      

      "Insurer"

      Policy
        Number: _______________________

      _____________________________

      _____________________________                                                                                                Date
        of Assignment:

      

      

      A.           For
        value received, and as of the Date shown above, the undersigned hereby assign,
        transfer and set over to the Bank named herein, its successors and assigns
        (herein called the "Assignee") the Life Insurance Policy numbered above issued
        by the Insurer shown above (herein called the "Insurer") and any supplementary
        contracts issued in connection therewith (said Policy and contracts being
        herein
        called the "Policy") upon the life of the above named Insured and all claims,
        options, privileges, rights, title and interest therein and thereunder (except
        as provided in Paragraph C hereof), subject to all the terms and conditions
        of
        the Policy and to all superior liens, if any, which may exist against the
        Policy.  The undersigned by this instrument jointly and severally
        agree and the Assignee by the acceptance of this Assignment agrees to the
        conditions and provisions herein set forth.

      

      B.           It
        is expressly agreed that, without detracting from the generality of the
        foregoing, the following specific rights are included in this Assignment
        and
        pass by virtue hereof:

      

      
        	
                 

              	
                1.

              	
                The
                  sole right to collect from the Insurer the net proceeds of the
                  Policy when
                  it becomes a claim by death or
                  maturity;

              

      

      

      
        	
                 

              	
                2.

              	
                The
                  sole right to surrender the Policy and receive the surrender value
                  thereof
                  at any time provided by the terms of the Policy and at such other
                  times as
                  the Insurer may allow;

              

      

      

      
        	
                 

              	
                3.

              	
                The
                  sole right to obtain one or more loans or advances on the Policy,
                  either
                  from the Insurer or, at any time, from other persons, and to pledge
                  or
                  assign the Policy as security for such loans or
                  advances;

              

      

      

      
        	
                 

              	
                4.

              	
                The
                  sole right to collect and receive all distributions or shares of
                  surplus,
                  dividend deposits or additions to the Policy now or hereafter made
                  or
                  apportioned thereto, and to exercise any and all options contained
                  in the
                  Policy with respect thereto; provided, that unless and until the
                  Assignee
                  shall notify the Insurer in writing to the contrary, the distributions
                  or
                  share of surplus, dividend deposits and additions shall continue
                  on the
                  plan in force at the time of this Assignment;
                  and

              

      

      

      
        	
                 

              	
                5.

              	
                The
                  sole right to exercise all nonforfeiture rights permitted by the
                  terms of
                  the Policy or allowed by the Insurer and to receive all benefits
                  and
                  advantages derived therefrom.

              

      

      

      C.           It
        is expressly agreed that the following specific rights, so long as the Policy
        has not been surrendered, are reserved and excluded from this Assignment
        and do
        not pass by virtue hereof:

      

      
        	
                 

              	
                1.

              	
                The
                  right to collect from the Insurer any disability benefit payable
                  in cash
                  that does not reduce the amount of
                  insurance;

              

      

      

      
        	
                 

              	
                2.

              	
                The
                  right to designate and change the
                  beneficiary;

              

      

      

      
        	
                 

              	
                3.

              	
                The
                  right to elect any optional mode of settlement permitted by the
                  Policy or
                  allowed by the Insurer;

              

      

      

      but
        the
        reservation of these rights shall in no way impair the right of the Assignee
        to
        surrender the Policy completely with all its incidents or impair any other
        right
        of the Assignee hereunder, and any designation or change of beneficiary or
        election of a mode of settlement shall be made subject to this Assignment
        and to
        the rights of the Assignee hereunder.

      

      D.           This
        Assignment is made and the Policy is to be held as collateral security for
        any
        and all liabilities of the undersigned, or any of them, to the Assignee,
        either
        now existing or that may hereafter arise between any of the undersigned and
        the
        Assignee (all of which liabilities secured or to become secured are herein
        called "Liabilities").

      

      E.           The
        Assignee covenants and agrees with the undersigned as follows:

      

      
        	
                 

              	
                1.

              	
                That
                  any balance of sums received hereunder from the Insurer remaining
                  after
                  payment of the then existing Liabilities, matured or unmatured,
                  shall be
                  paid by the Assignee to the persons entitled thereto under the
                  terms of
                  the policy had this Assignment not been
                  executed;

              

      

      

      
        	
                 

              	
                2.

              	
                That
                  the Assignee will not exercise either the right to surrender the
                  Policy or
                  (except for the purpose of paying premiums) the right to obtain
                  policy
                  loans from the Insurer, until there has been default in any of
                  the
                  Liabilities or a failure to pay any premium when due, nor until
                  twenty
                  days after the Assignee shall have mailed, by first-class mail,
                  to the
                  undersigned at the addresses last supplied in writing to the Assignee
                  specifically referring to this Assignment, notice of intention
                  to exercise
                  such right; and

              

      

      
        	
                 

              	
                3.

              	
                That
                  the Assignee will upon request forward without reasonable delay
                  to the
                  Insurer the Policy for endorsement of any designation or change
                  of
                  beneficiary or any election of an optional mode of
                  settlement.

              

      

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      F.           The
        Insurer is hereby authorized to recognize the Assignee's claims to rights
        hereunder without investigating the reason for any action taken by the Assignee,
        or the validity or the amount of the Liabilities or the existence of any
        default
        therein, or the giving of any notice under Paragraph E(2) above or otherwise,
        or
        the application to be made by the Assignee of any amounts to be paid to the
        Assignee.  The sole signature of the Assignee shall be sufficient for
        the exercise of any rights under the Policy assigned hereby and the sole
        receipt
        of the Assignee for any sums received shall be a full discharge and release
        therefor to the Insurer.  Checks for all or any part of the sums
        payable under the Policy and assigned herein, shall be drawn to the exclusive
        order of the Assignee if, when, and in such amounts as may be required by
        the
        Assignee.

      

      G.           The
        Assignee shall be under no obligation to pay any premium, or the principal
        of or
        interest on any loans or advances on the Policy whether or not obtained by
        the
        Assignee, or any other charges on the Policy, but any such amounts so paid
        by
        the Assignee from its own funds, shall become a part of the Liabilities hereby
        secured, shall be due immediately, and shall draw interest at a rate fixed
        by
        the Assignee from time to time not exceeding the maximum allowed by
        law.

      

      H.           The
        exercise of any right, option, privilege or power given herein to the Assignee
        shall be at the option of the Assignee, but (except as restricted by Paragraph
        E(2) above) the Assignee may exercise any such right, option, privilege or
        power
        without notice to, or assent by, or affecting the liability of, or releasing
        any
        interest hereby assigned by the undersigned, or any of them.

      

      I.           The
        Assignee may take or release other security, may release any party primarily
        or
        secondarily liable for any of the Liabilities, may grant extensions, renewals
        or
        indulgences with respect to the Liabilities, or may apply to the Liabilities
        in
        such order as the Assignee shall determine, the proceeds of the Policy hereby
        assigned or any amount received on account of the Policy by the exercise
        of any
        right permitted under this Assignment, without resorting to other
        security.

      

      J.           In
        the event of any conflict between the provisions of this Assignment and
        provisions of the note or other evidence of any Liability, with respect to
        the
        Policy or rights of collateral security therein, the provisions of this
        Assignment shall prevail.

      

      K.           Each
        of the undersigned declares that no proceedings in bankruptcy are pending
        against him and that his property is not subject to any assignment for the
        benefit of creditors.

      

 

      [Signature
        Page Follows]

      

      
        	
                WITNESSES:

                 

                ______________________________

                 

                ______________________________

                 

                ______________________________

              	 	
                SIGNATURES:

                 

                ____________________________________

                OWNER

                 

                ____________________________________

                OWNER

                 

                ____________________________________

                BENEFICIARY

                 

                ____________________________________

                BENEFICIARY

                 

              
	 	 	 

      

      

      ACKNOWLEDGEMENT

      

      STATE
        OF                                                                 )

      )
        ss.

      COUNTY
        OF
        ________________                                                                           )

      

      The
        foregoing instrument was acknowledged before me this ______ day of November,
        2007, by ________________________________________.

      

      My
        Commission Expires:

      ____________________________________

      Notary
        PublicExhibit 10(n)(i)

                           ALBANY INTERNATIONAL CORP.
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

                                                                 Effective as of
                                                                 January 1, 1994

                                                         As amended and restated
                                                           as of January 1, 2008

<PAGE>

ARTICLE 1              DEFINITIONS .......................................     1

         A.            Actuarial Equivalent ..............................     1

         B.            Aggregate Credited Service ........................     1

         C.            Beneficiary .......................................     1

         D.            Benefit ...........................................     1

         E.            Board of Directors ................................     1

         F.            Committee .........................................     1

         G.            Compensation ......................................     1

         H.            Compensation Limit ................................     1

         I.            Corporation .......................................     1

         J.            Employee ..........................................     1

         K.            ERISA .............................................     1

         L.            IRC ...............................................     1

         M.            Participant .......................................     2

         N.            Pension Plus Plan .................................     2

         O.            Plan ..............................................     2

         P.            Prosperity Plus Plan ..............................     2

ARTICLE 2              EFFECTIVE DATE ....................................     2

ARTICLE 3              PARTICIPATION IN THE PLAN .........................     2

ARTICLE 4              BENEFITS ..........................................     2

         A.            Determination of Benefits .........................     2

         B.            Form and Timing of Benefit Payments ...............     3

         C.            Vesting ...........................................     4

ARTICLE 5              PLAN ADMINISTRATION ...............................     4

         A.            The Committee .....................................     4

         B.            Power, Duties, Etc ................................     4

ARTICLE 6              MISCELLANEOUS .....................................     5

         A.            Amendment .........................................     5

         B.            Termination .......................................     5

         C.            Funding ...........................................     6

         D.            Benefits Not Assignable ...........................     7

         E.            Plan Not a Contract of Employment .................     7

         F.            Benefits Payable to Minors, Incompetents and
                         Others ..........................................     7

         G.            Construction ......................................     7

                                       i

<PAGE>

                                   ARTICLE 1

                                   DEFINITIONS

      A. Actuarial  Equivalent.  The determination of one benefit as actuarially
equivalent  to another  benefit using the  actuarial  assumptions  used for such
purpose under the Pension Plus Plan.

      B. Aggregate Credited Service.  "Aggregate Credited Service" as defined in
the Pension Plus Plan.

      C. Beneficiary. Any person entitled to receive any payment of benefits due
under  the  Pension  Plus  Plan  with  respect  to  a   Participant   after  the
Participant's  death,  whether  pursuant  to the  Participant's  designation  or
otherwise.

      D. Benefit.  The benefit payable to a Participant or Beneficiary  pursuant
to  Article  IV of the Plan.  A  Participant's  Benefit  under the Plan shall be
segregated into a "Grandfathered" Benefit and a "Non-Grandfathered" Benefit. The
Grandfathered  Benefit  means the portion of a  Participant's  Benefit  that was
earned and vested as of December 31, 2004. The  Non-Grandfathered  Benefit means
the portion of a Participant's Benefit that accrued or became vested on or after
January 1, 2005.

      E. Board of Directors. The Board of Directors of the Corporation,  and any
persons  empowered  by  the  Corporation's  certificate  of  incorporation,  the
Corporation's   by-laws  or   resolution  of  the  Board  of  Directors  of  the
Corporation, to exercise the powers of the Board of Directors of the Corporation
with respect to the Plan.

      F. Committee.  The Employee Benefits  Committee  appointed by the Board of
Directors to be the  administrator  of the Pension Plus Plan pursuant to Article
VII thereof.

      G.  Compensation.  "Compensation" as defined in the Pension Plus Plan, but
determined without regard to the Compensation Limit.

      H.   Compensation   Limit.  The  limitations   contained  in  IRC  Section
401(a)(17), as amended from time to time.

      I. Corporation. Albany International Corp. and any successor thereto.

      J. Employee.  Any person employed by the  Corporation or a  "Participating
Affiliate"  (as defined in the Pension Plus Plan) on a salaried  basis who is an
"Eligible Employee" (as defined in the Pension Plus Plan) under the Pension Plus
Plan.

      K. ERISA. The Employee Retirement Income Security Act of 1974, as amended.

      L. IRC. The Internal Revenue Code of 1986, as amended.

      M.  Participant.  Any Employee who is eligible to  participate in the Plan
pursuant to Article III hereof.

                                       3
<PAGE>

      N. Pension Plus Plan. The Albany International Corp. Pension Plus Plan, as
it may be amended from time to time.

      O. Plan. The Albany International Corp.  Supplemental Executive Retirement
Plan, as it may be amended from time to time.

      P. Prosperity Plus Plan. The Albany  International  Corp.  Prosperity Plus
Plan, as it may be amended from time to time.

                                   ARTICLE 2

                                 EFFECTIVE DATE

      The Plan shall be effective  January 1, 1994 with respect to  Participants
whose benefit  payments under the Pension Plus Plan commence or will commence on
or after January 1, 1994.  Effective as of January 1, 2008,  the Plan is amended
and restated to comply with the  requirements  of IRC Section 409A.  The Plan is
intended, and shall be construed, to comply with IRC Section 409A so as to avoid
the excise tax penalties,  interest penalties, and income inclusion rules of IRC
Section 409A.

                                   ARTICLE 3

                            PARTICIPATION IN THE PLAN

      An Employee who is a  participant  in the Pension Plus Plan shall become a
Participant in this Plan effective as of the date on which (a) his  Compensation
during any  calendar  year  beginning  on or after  January 1, 1994  exceeds the
limitations  set forth in IRC Section  401(a)(17) or (b) his benefits  under the
Pension Plus Plan are limited by reason of the application of the limitations of
IRC Sections 401(a)(4) or 415 (including the combined  limitations  contained in
IRC  Section  415 on  benefits  payable  under  the  Pension  Plus  Plan and the
Prosperity   Plus  Plan),   including  the  treasury   regulations   promulgated
thereunder.  An Employee who becomes a Participant shall remain a Participant so
long as he is entitled to any benefits under the Plan.

                                   ARTICLE 4

                                    BENEFITS

      A. Determination of Benefits

            1. Excess  Article IV Benefits.  A  Participant's  or  Beneficiary's
      Benefit  under this Section  IV.A.1 of the Plan shall be determined as the
      excess, if any, of:

                  (a) the Actuarial Equivalent of the amount of monthly benefits
            to which such  Participant or  Beneficiary  would have been entitled
            under Article IV of the Pension Plus Plan, determined without regard
            to Appendix

                                       4
<PAGE>

            L  of  such  plan,  and   determined   without  regard  to  (i)  the
            Compensation Limit and (ii) the limitations  imposed pursuant to IRC
            Sections 401(a)(4) and 415, expressed as a single life annuity; over

                  (b) the Actuarial Equivalent of the amount of monthly benefits
            to which such  Participant or Beneficiary  actually is entitled from
            time to time under  Article IV of the Pension Plus Plan,  determined
            without regard to Appendix L of such plan, and expressed as a single
            life annuity.

            2. Excess  Appendix L Benefits.  A  Participant's  or  Beneficiary's
      benefit  under this Section  IV.A.2 of the Plan shall be determined as the
      excess,  if any, of (1) the Account  credits  provided for in Section I of
      Appendix L of the Pension Plus Plan, over (2) the Account credits actually
      credited to and payable from such  Participant's  Account under Appendix L
      of the Pension Plus Plan,  after  application  of the limits  described in
      Section II of Appendix L.

      B. Form and Timing of Benefit Payments

            1.  Excess  Article  IV  Benefits.  The  Actuarial  Equivalent  of a
      Participant's  or  Beneficiary's  Benefit under Section IV.A.1 of the Plan
      shall be paid to the  Participant  or  Beneficiary  at the time and in the
      form as provided below:

                  (a) Payment of a  Participant's  Grandfathered  Benefit  shall
            commence  at the  same  time  as  benefits  to such  Participant  or
            Beneficiary  under  the  Pension  Plus  Plan  commence,  unless  the
            Committee directs that the Actuarial Equivalent of the Participant's
            Grandfathered   Benefit  shall  be  paid  at  a  different  time.  A
            Participant's Non-Grandfathered Benefit shall be paid or commence as
            of the  first  day of the  month  following  the date  that is sixth
            months  following  the  date  of the  Participant's  termination  of
            employment with the Corporation.

                  (b) A Participant's Grandfathered Benefit shall be paid in the
            form as benefits are paid to such  Participant or Beneficiary  under
            the  Pension  Plus  Plan,  unless  the  Committee  directs  that the
            Actuarial  Equivalent  of the  Participant's  Grandfathered  Benefit
            shall be paid in a different form. A Participant's Non-Grandfathered
            Benefit  shall be paid in the form  elected  by the  Participant.  A
            Participant with a  Non-Grandfathered  Benefit shall be permitted to
            elect any one of the following forms of payment:  a 50%, 66 2/3%, or
            100% joint and survivor  annuity;  a life  annuity,  a five (5) year
            certain annuity, or a ten (10) year certain annuity.  However,  such
            election  must  be made  within  thirty  days of when a  Participant
            commences  participation  in the Plan,  and such  election  shall be
            irrevocable.  For purposes of this  subsection (b), a Participant is
            considered to commence participation in the Plan as of the January 1
            following the first year the Participant accrues a Benefit under the
            Plan.  In the event a  Participant  or  Beneficiary  fails to timely
            elect  a form of  payment  for the  Non-Grandfathered  Benefit,  the
            Non-Grandfathered Benefit shall be paid in the form of a single life
            annuity.

                                       5
<PAGE>

            2.   Excess   Appendix  L  Benefits.   The  actual   amount  of  any
      Participant's  Benefit under  Section  IV.A.2 of the Plan shall be paid to
      the Participant in cash as soon as practicable after it accrues.

            3. Taxes. Any payments  hereunder shall be subject to any applicable
      tax withholding requirements.

      C. Vesting

      Notwithstanding  anything in this Plan to the contrary,  no Participant or
Beneficiary  shall be entitled to receive any benefits  under Section  IV.A.1 of
this Plan unless the Participant (1) is actually  employed by the Corporation or
an "Affiliate"  (as defined in the Pension Plus Plan) on or after his attainment
of age 55 and (2) has completed ten years of Aggregate Credited Service.

                                   ARTICLE 5

                               PLAN ADMINISTRATION

      A. The Committee

            1. The Plan shall be administered by the Committee.

            2. The Committee  shall act by a majority of its members at any time
      in office and such action may be taken either by a vote at a meeting or in
      writing  without a meeting.  The  Committee  may  authorize  any person to
      execute  any  document or  documents  on its  behalf,  and any  interested
      person,  upon receipt of notice of such authorization  directed to it, may
      thereafter  accept and rely upon any document  executed by such authorized
      person  until the  Committee  shall  deliver to such  interested  person a
      revocation of such authorization.

            3. A member  of the  Committee  who also is a  Participant  shall be
      disqualified  from voting or acting upon any matter relating  specifically
      to the Participant.

      B. Power, Duties, Etc. of the Committee

            1. The  Committee  shall have the power to construe  the Plan and to
      determine  all questions of fact that may arise  thereunder,  and any such
      construction  or  determination  shall be  conclusively  binding  upon all
      persons interested in the Plan.

            2. Subject to the terms of the Plan,  the  Committee  may  establish
      rules and procedures satisfactory to it for the administration of the Plan
      and the transaction of its business.

            3. All payments of benefits or expenses of the Plan shall be made by
      the Corporation at the direction of the Committee.

                                       6
<PAGE>

            4. The  Committee  shall  have all the  rights,  powers,  duties and
      obligations granted or imposed upon it elsewhere in the Plan.

            5. The  Committee  may  designate  other  persons  to carry  out the
      responsibilities of the Committee provided for hereunder.

            6. To the extent permitted under applicable law, the Committee shall
      not be  subject to and shall be  indemnified  by the  Corporation  for any
      liabilities arising from any action or omission respecting the Plan.

                                   ARTICLE 6

                                  MISCELLANEOUS

      A. Amendment

      The Board of Directors and the Employee Benefits Committee (each acting by
an appropriately  adopted resolution at a meeting or action in writing without a
meeting)  shall each have the right at any time to amend the Plan in whole or in
part,  effective  retroactively,   or  otherwise;  provided,  however,  that  no
amendment  shall  decrease the amount that would be payable to a Participant  or
Beneficiary  hereunder  determined as if the Participant  terminated  employment
with the  Corporation  immediately  prior  to such  amendment  and had  begun to
receive  retirement  benefits  under  the  Pension  Plus  Plan,  so  long as the
Participant  had  attained  age 55 and had  completed  ten  years  of  Aggregate
Credited  Service  under the  Pension  Plus Plan on the date such  amendment  is
adopted.

      B. Termination

      The Board of Directors (acting by an appropriately adopted resolution at a
meeting or action in writing without a meeting)  reserves the right to terminate
the Plan; provided, however, that such termination shall not decrease the amount
payable  to  a  Participant  or  Beneficiary  hereunder  determined  as  if  the
Participant had terminated employment with the Corporation  immediately prior to
the termination of the Plan and had begun to receive  retirement  benefits under
the Pension Plus Plan,  so long as the  Participant  had attained age 55 and had
completed ten years of Aggregate Credited Service under the Pension Plus Plan on
the date on which the Plan is terminated. All other provisions of the Plan shall
remain in effect unless otherwise amended.

      Unless payment is permitted  earlier under IRC Section 409A,  payment of a
Participant's  Grandfathered  Benefit  shall be made in a lump sum within thirty
days   of  the   termination   of  the   Plan.   Payment   of  a   Participant's
Non-Grandfathered  Benefit shall be made in a lump sum within thirty days of the
one year anniversary of the termination of the Plan.  Notwithstanding the above,
Participants who are receiving  payments of their  Non-Grandfathered  Benefit on
the date the Plan is  terminated  shall  continue  to receive  distributions  in
accordance with their payment  election during this one year period.  At the end
of the period such  Participant  will receive a  distribution  of the balance of
his/her Non-Grandfathered Benefit.

                                       7
<PAGE>

      C. Funding

      The Benefits payable under the Plan shall be unfunded.  Benefits under the
Plan shall be paid from the general assets of the  Corporation.  The Corporation
may  establish a trust  pursuant  to a trust  agreement  and make  contributions
thereto for the purpose of assisting the  Corporation in meeting its obligations
in respect of Benefits  payable under the Plan. Any such trust  agreement  shall
contain procedures to the following effect:

            (a) In the event of the  insolvency  of the  Corporation,  the trust
      fund  will  be  available  to  pay  the  claims  of  any  creditor  of the
      Corporation  to whom a distribution  may be made in accordance  with state
      and  federal  bankruptcy  laws.  The  Corporation  is subject to a pending
      proceeding as a debtor under the federal Bankruptcy Code (or any successor
      federal   statute)  or  any  state  bankruptcy  code.  In  the  event  the
      Corporation becomes insolvent,  the Board of Directors and chief executive
      officer of the Corporation  shall notify the trustee of that event as soon
      as practicable.  Upon receipt of such notice,  or if the trustee  receives
      other written  allegation  of the  Corporation's  insolvency,  the trustee
      shall cease making  payments of benefits  from the trust fund,  shall hold
      the trust fund for the benefit of the Corporation's  creditors,  and shall
      take such steps that are necessary to determine within 30 days whether the
      Corporation is insolvent. In the case of the trustee's actual knowledge of
      or other determination of the Corporation's  insolvency,  the trustee will
      deliver  assets of the trust fund to satisfy  claims of the  Corporation's
      creditors as directed by a court of competent jurisdiction;

            (b) The trustee  shall  resume  payment of benefits  under the trust
      agreement  only after the trustee has determined  that the  Corporation is
      not insolvent (or is no longer  insolvent,  if the trustee had  previously
      determined the Corporation to be insolvent) or upon receipt of an order of
      a court of competent  jurisdiction  requiring such payment. If the trustee
      discontinues payment of benefits pursuant to Paragraph (a) of this Section
      and subsequently  resumes such payment,  the first payment on account of a
      Participant  following  such  discontinuance  shall  include an  aggregate
      amount equal to the difference  between the payments which would have been
      made on  account of such  Participant  under the trust  agreement  and the
      aggregate  payments  actually made on account of such  Participant  by the
      Corporation  during any such period of  discontinuance,  plus  interest on
      such amount at a rate  equivalent  to the net rate of return earned by the
      trust fund during the period of such discontinuance.

      D. Benefits Not Assignable

      Benefits provided under the Plan may not be anticipated,  assigned (either
at law or in equity),  alienated or subject to  attachment,  garnishment,  levy,
execution or other legal or equitable process other than pursuant to the laws of
descent and  distribution.  The foregoing  notwithstanding,  a valid beneficiary
designation  filed in accordance  with

                                       8
<PAGE>

Appendix  L of the  Pension  Plus Plan  shall  also  govern  the  payment of any
benefits  under  Section  IV.A.2  of  this  Plan  in  case  of  the  death  of a
Participant.

      E. Plan Not a Contract of Employment

      The Plan is not a contract of  employment,  and the terms of employment of
any employee of the Corporation or its  "Affiliates"  (as defined in the Pension
Plus Plan) shall not be  affected in any way by the Plan or related  instruments
except as  specifically  provided in the Plan or such related  instruments.  The
establishment  of the Plan shall not be construed as conferring any legal rights
upon any Employee for a continuation of employment,  nor shall it interfere with
the right of the  Corporation or an "Affiliate"  (as defined in the Pension Plus
Plan) to discharge  any  employee and to treat him without  regard to the effect
which such treatment might have upon him as a Participant.  Each Participant and
all persons who may have or claim any right by reason of his participation shall
be bound by the  terms of the Plan  and all  Agreements  entered  into  pursuant
thereto.

      F. Benefits Payable to Minors, Incompetents and Others

      In the event any benefit is payable to a minor or an  incompetent  or to a
person otherwise under a legal disability, or who, in the sole discretion of the
Committee,  is by reason of advanced  age,  illness or other  physical or mental
incapacity incapable of handling and disposing of his property,  or otherwise is
in such position or condition that the Committee believes that such person could
not utilize the benefit  for his support or welfare,  the  Committee  shall have
discretion to apply the whole or any part of such benefit  directly to the care,
comfort, maintenance, support, education or use of such person, or pay the whole
or any  part  of such  benefit  to the  parent  of such  person,  the  guardian,
committee,  conservator or other legal  representative,  wherever appointed,  of
such  person,  the person  with whom such  person is  residing,  or to any other
person  having the care and  control  of such  person.  The  receipt of any such
person to whom such payment on behalf of any  Participant or Beneficiary is made
shall be sufficient discharge therefor.

      G. Construction

            1. The Plan is intended to qualify as an  unfunded  plan  maintained
      primarily for the purpose of providing deferred  compensation for a select
      group of  management  or highly  compensated  employees  as referred to in
      Section 201(2) of ERISA,  and its terms shall be interpreted  accordingly.
      Otherwise,   the  laws  of  the  State  of  New  York  shall  control  the
      interpretation and performance of the terms of the Plan.

            2. If any  provision  of the Plan,  or the  application  of any such
      provision  to any  person or  circumstances,  shall be  invalid  under any
      federal or state law, neither the application of such provision to persons
      or  circumstances  other than

                                       9
<PAGE>

      those as to which such  provision is invalid nor any other  provisions  of
      the Plan shall be affected thereby.

            3. The headings and in the Plan have been  inserted for  convenience
      of  reference  only,  and are to be  ignored  in any  construction  of the
      provisions thereof.

      IN WITNESS WHEREOF, the Corporation has caused this Restatement to be duly
executed on December 10, 2007 but effective as of January 1, 2008.

                                           ALBANY INTERNATIONAL CORP.

                                           By: /s/ Charles J. Silva, Jr.
                                               ---------------------------------

                                           Its:  Vice President- General Counsel
                                               ---------------------------------

ATTEST:

/s/ Joseph M. Gaug
------------------

                                       10

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