Document:

<PAGE>

                                                                   EXHIBIT 4.2

                          REGISTRATION RIGHTS AGREEMENT

                            Dated as of May 23, 2003

                                 by and between

                               KAYDON CORPORATION,
                                 as the Company,

                                       and

                         DEUTSCHE BANK SECURITIES INC.,

                         BANC ONE CAPITAL MARKETS, INC.,

                                       and

                         SUNTRUST CAPITAL MARKETS, INC.,
                            as the Initial Purchasers

         4.0% Contingent Convertible Senior Subordinated Notes Due 2023

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                                 <C>
1.    Definitions.............................................................................................       1

2.    Shelf Registration......................................................................................       4

3.    Liquidated Damages......................................................................................       6

4.    Registration Procedures.................................................................................       8

5.    Registration Expenses...................................................................................      13

6.    Indemnification.........................................................................................      13

7.    Rules 144 and 144A......................................................................................      17

8.    Underwritten Registrations..............................................................................      17

9.    Miscellaneous...........................................................................................      17
</TABLE>

                                      -i-

<PAGE>

                          REGISTRATION RIGHTS AGREEMENT

                  This Registration Rights Agreement (this "Agreement") is dated
as of May 23, 2003, by and between Kaydon Corporation, a Delaware corporation
(the "Company"), and Deutsche Bank Securities Inc., Banc One Capital Markets,
Inc. and SunTrust Capital Markets, Inc. (collectively, the "Initial
Purchasers").

                  This Agreement is entered into in connection with that certain
Purchase Agreement, dated May 20, 2003 (the "Purchase Agreement"), by and
between the Company and the Initial Purchasers, which provides for the sale by
the Company to the Initial Purchasers of $170,000,000 aggregate principal amount
of the Company's 4.0% Contingent Convertible Senior Subordinated Notes Due 2023
(the "Firm Notes"), plus up to an additional $30,000,000 aggregate principal
amount of the same which the Initial Purchasers may subsequently elect to
purchase pursuant to the terms of the Purchase Agreement (the "Option Notes"
and, together with the Firm Notes, the "Notes"), which are convertible into
common stock, par value $0.10 per share, of the Company (the "Underlying
Shares"). The Notes are being issued pursuant to an Indenture dated as of the
date hereof (the "Indenture"), by and between the Company and SunTrust Bank, a
bank and trust company organized under the laws of the State of Georgia, as
Trustee.

                  In order to induce the Initial Purchasers to enter into the
Purchase Agreement, the Company has agreed to provide the registration rights
set forth in this Agreement for the benefit of the Initial Purchasers and
certain subsequent holder or holders of the Notes or Underlying Shares as
provided herein. The execution and delivery of this Agreement is a condition to
the Initial Purchasers' obligation to purchase the Firm Notes under the Purchase
Agreement.

                  The parties hereto hereby agree as follows:

1.       Definitions. As used in this Agreement, the following terms shall have
the following meanings:

                  "Agreement": See the first introductory paragraph hereto.

                  "Amendment Effectiveness Deadline Date": See Section 2(d)(i)
hereof.

                  "Amount of Registrable Securities": (a) With respect to Notes
constituting Registrable Securities, the aggregate principal amount of all such
Notes outstanding, (b) with respect to Underlying Shares constituting
Registrable Securities, the aggregate number of such Underlying Shares
outstanding multiplied by the Conversion Price (as defined in the Indenture
relating to the Notes upon the conversion of which such Underlying Shares were
issued) in effect at the time of computing the Amount of Registrable Securities
or, if no such Notes are then outstanding, the last Conversion Price that was in
effect under such Indenture when any such Notes were last outstanding, and (c)
with respect to combinations thereof, the sum of (a) and (b) for the relevant
Registrable Securities.

                  "Business Day": Any day that is not a Saturday, Sunday or a
day on which banking institutions in New York are authorized or required by law
to be closed.

<PAGE>

                  "Closing Date": May 23, 2003.

                  "Company": See the first introductory paragraph hereto.

                  "Controlling Person": See Section 6(a) hereof.

                  "Damages Payment Date": See Section 3(c) hereof.

                  "Deferral Period": See Section 3(b) hereof.

                  "Depositary": The Depository Trust Company until a successor
is appointed by the Company.

                  "Designated Counsel": One firm of counsel chosen by the
Holders of a majority in Amount of Registrable Securities to be included in a
Registration Statement for a Shelf Registration and identified to the Company in
writing prior to the filing of such Registration Statement.

                  "Effectiveness Date": The 180th day after the Closing Date.

                  "Effectiveness Period": See Section 2(a) hereof.

                  "Exchange Act": The Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC promulgated thereunder.

                  "Filing Date": The 90th day after the Closing Date.

                  "Firm Notes": See the second introductory paragraph hereto.

                  "Holder": Any holder of Registrable Securities.

                  "Indemnified Holder": See Section 6 hereof.

                  "Indemnified Person": See Section 6 hereof.

                  "Indemnifying Person": See Section 6 hereof.

                  "Indenture": See the second introductory paragraph hereto.

                  "Initial Purchasers": See the first introductory paragraph
hereto.

                  "Initial Shelf Registration": See Section 2(a) hereof.

                  "Inspectors": See Section 4(k) hereof.

                  "Liquidated Damages": See Section 3(a) hereof.

                  "Notes": See the second introductory paragraph hereto.

                                      -2-

<PAGE>

                  "Notice and Questionnaire": means a written notice delivered
to the Company containing substantially the information called for by the Form
of Selling Securityholder Notice and Questionnaire attached as Appendix A to the
Offering Memorandum of the Company relating to the Notes.

                  "Option Notes": See the second introductory paragraph hereto.

                  "Person": An individual, partnership, corporation, limited
liability company, unincorporated association, trust or joint venture, or a
governmental agency or political subdivision thereof.

                  "Prospectus": The prospectus included in any Registration
Statement (including, without limitation, any prospectus subject to completion
and a prospectus that includes any information previously omitted from a
prospectus filed as part of an effective registration statement in reliance upon
Rule 430A promulgated under the Securities Act), as amended or supplemented by
any prospectus supplement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated
by reference or deemed to be incorporated by reference in such Prospectus.

                  "Purchase Agreement": See the second introductory paragraph
hereto.

                  "Records": See Section 4(k) hereof.

                  "Registrable Securities": All Notes and all Underlying Shares
upon original issuance thereof and at all times subsequent thereto until the
earliest to occur of (i) a Registration Statement covering such Notes and
Underlying Shares having been declared effective by the SEC and such Notes and
Underlying Shares having been disposed of in accordance with such effective
Registration Statement, (ii) such Notes and Underlying Shares having been sold
in compliance with Rule 144 or could (except with respect to affiliates of the
Company within the meaning of the Securities Act) be sold in compliance with
Rule 144(k), or (iii) such Notes and any Underlying Shares ceasing to be
outstanding.

                  "Registration Default": See Section 3(a) hereof.

                  "Registration Statement": Any registration statement of the
Company filed with the SEC pursuant to the provisions of this Agreement,
including the Prospectus, amendments and supplements to such registration
statement, including post-effective amendments, all exhibits and all documents
incorporated by reference or deemed to be incorporated by reference in such
registration statement.

                  "Rule 144": Rule 144 promulgated under the Securities Act, as
such Rule may be amended from time to time, or any similar rule (other than Rule
144A) or regulation hereafter adopted by the SEC providing for offers and sales
of securities made in compliance therewith resulting in offers and sales by
subsequent holders that are not affiliates of an issuer of such securities being
free of the registration and prospectus delivery requirements of the Securities
Act.

                                      -3-

<PAGE>

                  "Rule 144A": Rule 144A promulgated under the Securities Act,
as such Rule may be amended from time to time, or any similar rule (other than
Rule 144) or regulation hereafter adopted by the SEC.

                  "Rule 415": Rule 415 promulgated under the Securities Act, as
such Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the SEC.

                  "SEC": The Securities and Exchange Commission.

                  "Securities Act": The Securities Act of 1933, as amended, and
the rules and regulations of the SEC promulgated thereunder.

                  "Selling Holder": On any date, any Holder that has delivered a
Notice and Questionnaire to the Company on or prior to such date.

                  "Shelf Registration": See Section 2(b) hereof.

                  "Shelf Registration Statement": See Section 2(b) hereof.

                  "Subsequent Shelf Registration": See Section 2(b) hereof.

                  "TIA": The Trust Indenture Act of 1939, as amended, and the
rules and regulations of the SEC promulgated thereunder.

                  "Trustee": The Trustee under the Indenture.

                  "Underlying Shares": See the second introductory paragraph
hereto.

                  "Underwritten Registration" or "Underwritten Offering": A
registration in which securities of the Company are sold to an underwriter for
reoffering to the public.

2.       Shelf Registration.

                  (a)      Shelf Registration. The Company shall file with the
SEC a Registration Statement for an offering to be made on a continuous basis
pursuant to Rule 415 covering all of the Registrable Securities (the "Initial
Shelf Registration") on or prior to the Filing Date.

                  The Initial Shelf Registration shall be on Form S-3 or another
appropriate form permitting registration of such Registrable Securities for
resale by Holders in the manner or manners designated by them (excluding
Underwritten Offerings). The Company shall not permit any securities other than
the Registrable Securities to be included in the Initial Shelf Registration or
any Subsequent Shelf Registration (as defined below).

                  The Company shall use all reasonable efforts to cause the
Initial Shelf Registration to be declared effective under the Securities Act on
or prior to the Effectiveness Date and to keep such Initial Shelf Registration
continuously effective under the Securities Act until the date that is two years
after the Closing Date (such period, as it may be shortened pursuant to clauses
(i), (ii) or (iii) immediately following, the "Effectiveness Period"), or such

                                      -4-

<PAGE>

shorter period ending when (i) all of the Registrable Securities covered by the
Initial Shelf Registration have been sold in the manner set forth and as
contemplated in the Initial Shelf Registration, (ii) the date on which all the
Registrable Securities (x) held by Persons who are not affiliates of the Company
may be resold pursuant to Rule 144(k) under the Securities Act or (y) cease to
be outstanding, or (iii) a Subsequent Shelf Registration covering all of the
Registrable Securities has been declared effective under the Securities Act.

                  (b)      Subsequent Shelf Registrations. If the Initial Shelf
Registration or any Subsequent Shelf Registration (as defined below) ceases to
be effective for any reason at any time during the Effectiveness Period (other
than because of the sale of all of the Registrable Securities registered
thereunder), the Company shall use all reasonable efforts to obtain the prompt
withdrawal of any order suspending the effectiveness thereof, and in any event
shall within 45 days of such cessation of effectiveness amend the Initial Shelf
Registration in a manner to obtain the withdrawal of the order suspending the
effectiveness thereof, or file an additional "shelf" Registration Statement
pursuant to Rule 415 covering all of the Registrable Securities (a "Subsequent
Shelf Registration"). If a Subsequent Shelf Registration is filed, the Company
shall use all reasonable efforts to cause the Subsequent Shelf Registration to
be declared effective under the Securities Act as soon as practicable after such
filing and to keep such Registration Statement continuously effective for a
period equal to the number of days in the Effectiveness Period less the
aggregate number of days during which the Initial Shelf Registration or any
Subsequent Shelf Registration was previously continuously effective. As used
herein, the term "Shelf Registration" means the Initial Shelf Registration and
any Subsequent Shelf Registration and the term "Shelf Registration Statement"
means any Registration Statement filed in connection with a Shelf Registration.

                  (c)      Supplements and Amendments. The Company shall
promptly supplement and amend the Shelf Registration if required by the rules,
regulations or instructions applicable to the registration form used for such
Shelf Registration, if required by the Securities Act, or if reasonably
requested by the Holders of the majority in Amount of Registrable Securities
covered by such Registration Statement.

                  (d)      Notice and Questionnaire. Each Holder agrees that if
such Holder wishes to sell Registrable Securities pursuant to a Shelf
Registration Statement and related Prospectus, it will do so only in accordance
with this Section 2(d) and Section 4 hereof. Each Holder wishing to sell
Registrable Securities pursuant to a Shelf Registration Statement and related
Prospectus agrees to deliver a Notice and Questionnaire to the Company at least
five (5) Business Days prior to any intended distribution of Registrable
Securities under the Shelf Registration Statement. From and after the date the
Initial Shelf Registration Statement is declared effective, the Company shall,
as promptly as practicable after the date a Notice and Questionnaire is
delivered, and in any event upon the later of (x) five (5) Business Days after
such date or (y) five (5) Business Days after the expiration of any Deferral
Period in effect when the Notice and Questionnaire is delivered or put into
effect within five (5) Business Days of such delivery date:

                           (i)      if required by applicable law, file with the
                  SEC a post-effective amendment to the Shelf Registration
                  Statement or prepare and, if required by applicable law, file
                  a supplement to the related Prospectus or a supplement or
                  amendment to any document incorporated therein by reference or
                  file any other

                                      -5-

<PAGE>

                  required document so that the Holder delivering such Notice
                  and Questionnaire is named as a selling securityholder in the
                  Shelf Registration Statement and the related Prospectus in
                  such a manner as to permit such Holder to deliver such
                  Prospectus to purchasers of the Registrable Securities in
                  accordance with applicable law and, if the Company shall file
                  a post-effective amendment to the Shelf Registration
                  Statement, use all reasonable efforts to cause such
                  post-effective amendment to be declared effective under the
                  Securities Act as promptly as is practicable, but in any event
                  by the date (the "Amendment Effectiveness Deadline Date") that
                  is forty-five (45) days after the date such post-effective
                  amendment is required by this clause to be filed;

                           (ii)     provide such Holder copies of any documents
                  filed pursuant to Section 2(d)(i); and

                           (iii)    notify such Holder as promptly as
                  practicable after the effectiveness under the Securities Act
                  of any post-effective amendment filed pursuant to Section
                  2(d)(i); provided that if such Notice and Questionnaire is
                  delivered during a Deferral Period (as defined in Section
                  3(b)), the Company shall so inform the Holder delivering such
                  Notice and Questionnaire and shall take the actions set forth
                  in clauses (i), (ii) and (iii) above upon expiration of the
                  Deferral Period. Notwithstanding anything contained herein to
                  the contrary, (i) the Company shall be under no obligation to
                  name any Holder that has not delivered a Notice and
                  Questionnaire to the Company in accordance with this Section
                  2(d) and (ii) the Amendment Effectiveness Deadline Date shall
                  be extended by up to ten (10) Business Days from the
                  expiration of a Deferral Period (and the Company shall incur
                  no obligation to pay Liquidated Damages during such extension)
                  if such Deferral Period shall be in effect on the Amendment
                  Effectiveness Deadline Date.

3.       Liquidated Damages.

                  (a)      The Company and the Initial Purchasers agree that the
Holders of Registrable Securities will suffer damages if the Company fails to
fulfill certain of its obligations under Section 2 hereof or otherwise permits
certain circumstances to exist and that it would not be feasible to ascertain
the extent of such damages with precision. Accordingly, the Company agrees to
pay liquidated damages on the Registrable Securities ("Liquidated Damages")
under the circumstances and to the extent set forth below (each of which shall
be given independent effect; each a "Registration Default"):

                           (i)      if the Initial Shelf Registration is not
                  filed on or prior to the Filing Date, then commencing on the
                  day after the Filing Date, Liquidated Damages shall accrue on
                  the Registrable Securities at a rate of 0.50% per annum on the
                  Amount of Registrable Securities;

                           (ii)     if the Initial Shelf Registration or
                  Subsequent Shelf Registration is not declared effective by the
                  SEC on or prior to the Effectiveness Date, then commencing on
                  the day after the Effectiveness Date, Liquidated Damages shall

                                      -6-

<PAGE>

                  accrue on the Registrable Securities at a rate of 0.50% per
                  annum on the Amount of Registrable Securities; and

                           (iii)    if a Shelf Registration has been declared
                  effective and such Shelf Registration ceases to be effective
                  at any time during the Effectiveness Period (other than as
                  permitted under Section 3(b)), then commencing on the day
                  after the date such Shelf Registration ceases to be effective,
                  Liquidated Damages shall accrue on the Registrable Securities
                  at a rate of 0.50% per annum on the Amount of Registrable
                  Securities;

provided, however, that Liquidated Damages on the Registrable Securities may not
accrue under more than one of the foregoing clauses (i), (ii) or (iii) at any
one time; and provided further, however, that (1) upon the filing of the Initial
Shelf Registration as required hereunder (in the case of clause (a)(i) of this
Section 3), (2) upon the effectiveness of the Initial Shelf Registration or
Subsequent Shelf Registration as required hereunder (in the case of clause
(a)(ii) of this Section 3), or (3) upon the effectiveness of a Shelf
Registration which had ceased to remain effective (in the case of (a)(iii) of
this Section 3), Liquidated Damages on the Registrable Securities as a result of
such clause (or the relevant subclause thereof), as the case may be, shall cease
to accrue. It is understood and agreed that, notwithstanding any provision to
the contrary, no Liquidated Damages shall accrue on any Registrable Securities
that are then covered by an effective Shelf Registration Statement.

                  (b)      Notwithstanding paragraph (a) of this Section 3, the
Company, upon written notice to the Holders, shall be permitted to suspend the
effectiveness of a Registration Statement covering the Registrable Securities
for any bona fide reason whatsoever for up to 45 consecutive days (the "Deferral
Period") in any 90 day period without paying Liquidated Damages; provided,
however, that in the event the disclosure relates to a previously undisclosed
proposed or pending material business transaction, the disclosure of which the
Company determines in good faith would be reasonably likely to impede the
Company's ability to consummate such transaction, the Company may extend a
Deferral Period from 45 days to 60 days without paying Liquidated Damages;
provided further, however, that Deferral Periods may not total more than 90 days
in the aggregate in any twelve-month period. The Company shall not be required
to specify in the written notice to the Holders the nature of the event giving
rise to the Deferral Period.

                  (c)      So long as Notes remain outstanding, the Company
shall notify the Trustee within five Business Days after each and every date on
which an event occurs in respect of which Liquidated Damages are required to be
paid. Any amounts of Liquidated Damages due pursuant to clause (a)(i), (a)(ii)
or (a)(iii) of this Section 3 will be payable in cash semi-annually on each May
23 and November 23 (each, a "Damages Payment Date"), commencing with the first
such date occurring after any such Liquidated Damages commences to accrue, to
Holders to whom regular interest is payable on such Damages Payment Date, with
respect to Notes that are Registrable Securities, and to Persons that are
registered Holders on May 1 or November 1 immediately prior to a Damages Payment
Date with respect to Underlying Shares that are Registrable Securities. The
amount of Liquidated Damages for Registrable Securities will be determined by
multiplying the applicable rate of Liquidated Damages by the Amount of
Registrable Securities outstanding on the Damages Payment Date following such
Registration

                                      -7-

<PAGE>

Default in the case of the first such payment of Liquidated Damages with respect
to a Registration Default (and thereafter at the next succeeding Damages Payment
Date until the cure of such Registration Default), multiplied by a fraction, the
numerator of which is the number of days such Liquidated Damages rate was
applicable during such period (determined on the basis of a 360-day year
comprised of twelve 30-day months and, in the case of a partial month, the
actual number of days elapsed), and the denominator of which is 360.

4.       Registration Procedures.

                  In connection with the filing of any Registration Statement
pursuant to Section 2 hereof, the Company shall effect such registrations to
permit the sale of the securities covered thereby in accordance with the
intended method or methods of disposition thereof, and pursuant thereto and in
connection with any Registration Statement filed by the Company hereunder the
Company shall:

                  (a)      Prepare and file with the SEC, on or prior to the
Filing Date, a Registration Statement or Registration Statements as prescribed
by Section 2 hereof, and use all reasonable efforts to cause each such
Registration Statement to become effective and remain effective as provided
herein; provided, however, that before filing any Registration Statement or
Prospectus or any amendments or supplements thereto, the Company shall furnish
to and afford the Holders of the Registrable Securities covered by such
Registration Statement a reasonable opportunity to review copies of all such
documents proposed to be filed (in each case, where possible, at least three
Business Days prior to such filing, or such later date as is reasonable under
the circumstances). The Company shall not file any Registration Statement or
Prospectus or any amendments or supplements thereto if the Holders of a majority
in Amount of Registrable Securities covered by such Registration Statement shall
reasonably object in writing within such period.

                  (b)      Prepare and file with the SEC such amendments and
post-effective amendments to each Shelf Registration, as may be necessary to
keep such Registration Statement continuously effective for the Effectiveness
Period; cause the related Prospectus to be supplemented by any Prospectus
supplement required by applicable law, and as so supplemented to be filed
pursuant to Rule 424 (or any similar provisions then in force) promulgated under
the Securities Act; and comply with the provisions of the Securities Act and the
Exchange Act applicable to it with respect to the disposition of all Registrable
Securities covered by such Registration Statement as so amended or in such
Prospectus as so supplemented. The Company shall be deemed not to have used all
reasonable efforts to keep a Registration Statement effective during the
Effectiveness Period if it voluntarily takes any action that would result in
Selling Holders of the Registrable Securities covered thereby not being able to
sell such Registrable Securities during that period unless such action is
required by applicable law or unless the Company complies with this Agreement,
including without limitation the provisions of Section 4(i) hereof.

                  (c)      Notify the Selling Holders and Designated Counsel, if
any, promptly (but in any event within two Business Days), (i) when a Prospectus
or any prospectus supplement or post-effective amendment has been filed, and,
with respect to a Registration Statement or any post-effective amendment, when
the same has become effective under the Securities Act

                                      -8-

<PAGE>

(including in such notice a written statement that any Holder may, upon request,
obtain, at the sole expense of the Company, one conformed copy of such
Registration Statement or post-effective amendment including financial
statements and schedules, documents incorporated or deemed to be incorporated by
reference and exhibits), (ii) of the issuance by the SEC of any stop order
suspending the effectiveness of a Registration Statement or of any order
preventing or suspending the use of any preliminary prospectus or the initiation
of any proceedings for that purpose, (iii) of the happening of any event, the
existence of any condition or any information becoming known that makes any
statement made in such Registration Statement or related Prospectus or any
document incorporated or deemed to be incorporated therein by reference untrue
in any material respect or that requires the making of any changes in or
amendments or supplements to such Registration Statement, Prospectus or
documents so that, in the case of the Registration Statement, it will not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein
not misleading, and that in the case of the Prospectus, it will not contain any
untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading and (iv) of the
Company's determination that a post-effective amendment to a Registration
Statement would be appropriate.

                  (d)      Use all reasonable efforts to prevent the issuance of
any order suspending the effectiveness of a Registration Statement or of any
order preventing or suspending the use of a Prospectus and, if any such order is
issued, to use all reasonable efforts to obtain the withdrawal of any such order
at the earliest possible moment, and provide immediate notice to the Selling
Holders of the withdrawal of any such order.

                  (e)      Furnish to each Selling Holder and Designated
Counsel, if any, at the sole expense of the Company, one conformed copy of the
Registration Statement or Registration Statements and each post-effective
amendment thereto, including financial statements and schedules, and, if
requested, all documents incorporated or deemed to be incorporated therein by
reference and all exhibits.

                  (f)      Deliver to each Selling Holder and Designated
Counsel, if any, at the sole expense of the Company, as many copies of the
Prospectus (including each form of preliminary prospectus) and each amendment or
supplement thereto and any documents incorporated by reference therein as such
Persons may reasonably request; and, subject to the second paragraph of Section
4(q) hereof, the Company hereby consents to the use of such Prospectus and each
amendment or supplement thereto by each of the Selling Holders of Registrable
Securities and dealers, if any, in connection with the offering and sale of the
Registrable Securities covered by such Prospectus and any amendment or
supplement thereto.

                  (g)      The Company agrees to cause the Company's counsel to
perform Blue Sky investigations and file registrations and qualifications
required to be filed in connection with the registration or qualification (or
exemption from such registration or qualification) of such Registrable
Securities or offer and sale under the securities or Blue Sky laws of such
jurisdictions within the United States as any Selling Holder reasonably
requests, keep each such registration or qualification (or exemption therefrom)
effective during the period such Registration Statement is required to be kept
effective and do any and all other acts or things

                                      -9-

<PAGE>

reasonably necessary or advisable under Blue Sky laws to enable the disposition
in such jurisdictions of the Registrable Securities covered by the applicable
Registration Statement; provided, however, that the Company shall not be
required to (i) qualify generally to do business in any jurisdiction where it is
not then so qualified, (ii) take any action that would subject it to general
service of process in any such jurisdiction where it is not then so subject or
(iii) subject itself to taxation in any such jurisdiction where it is not then
so subject.

                  (h)      Cooperate with the Selling Holders and their
respective counsel to facilitate the timely preparation and delivery of
certificates representing shares of Registrable Securities to be sold, which
certificates shall not bear any restrictive legends and shall be in a form
eligible for deposit with The Depository Trust Company; and enable such shares
of Registrable Securities to be in such denominations and registered in such
names as the Selling Holders may reasonably request.

                  (i)      Upon the occurrence of any event contemplated by
Section 4(c)(ii), 4(c)(iii) or 4(c)(iv) hereof, as promptly as practicable
prepare and (subject to Section 4(a) hereof) file with the SEC, at the sole
expense of the Company, a supplement or post-effective amendment to the
Registration Statement or a supplement to the related Prospectus or any document
incorporated or deemed to be incorporated therein by reference, or file any
other required document so that, as thereafter delivered to the purchasers of
the Registrable Securities being sold thereunder, any such Prospectus will not
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading.

                  (j)      Prior to the effective date of the first Registration
Statement relating to the Registrable Securities, (i) provide the Trustee with
certificates for the Registrable Securities in a form eligible for deposit with
The Depository Trust Company and (ii) provide a CUSIP number for the Registrable
Securities.

                  (k)      During the Effectiveness Period, make available at
reasonable times for inspection by one or more representatives of the Selling
Holders, designated in writing by Holders of a majority in Amount of Registrable
Securities to be included in such Registration Statement of such Registrable
Securities being sold, and any attorney or accountant retained by any such
Selling Holders (collectively, the "Inspectors"), at the offices where normally
kept, during reasonable business hours, at such time or times as shall be
mutually convenient for the Company and the Inspectors as a group, all financial
and other records, pertinent corporate documents and instruments of the Company
and its subsidiaries (collectively, the "Records") as shall be reasonably
necessary to enable them to exercise any applicable due diligence
responsibilities, and cause the officers, directors and employees of the Company
and its subsidiaries to supply all information reasonably requested by any such
Inspector in connection with such Registration Statement; provided, however,
that the Company shall have no obligation to provide any such information prior
to the execution by the party receiving such information of a confidentiality
agreement in a form reasonably acceptable to the Company. Records that the
Company determines, in good faith, to be confidential and any Records that it
notifies the Inspectors are confidential shall not be disclosed by any Inspector
unless (i) the disclosure of such Records is necessary to avoid or correct a
material misstatement or material omission in such Registration Statement, (ii)
the release of such Records is ordered pursuant to a subpoena or

                                      -10-

<PAGE>

other order from a court of competent jurisdiction, (iii) disclosure of such
information is, in the opinion of counsel for any Inspector, necessary or
advisable in connection with any action, claim, suit or proceeding, directly
involving or potentially involving such Inspector and arising out of, based
upon, relating to, or involving this Agreement or any transactions contemplated
hereby or arising hereunder or (iv) the information in such Records has been
made generally available to the public other than through the acts of such
Inspector; provided, however, that prior notice shall be provided as soon as
practicable to the Company of the potential disclosure of any information by
such Inspector pursuant to clauses (ii) or (iii) of this sentence to permit the
Company to obtain a protective order (or waive the provisions of this paragraph
(k)). Each Inspector shall take such actions as are reasonably necessary to
protect the confidentiality of such information (if practicable) to the extent
such actions are otherwise not inconsistent with, an impairment of or in
derogation of the rights and interests of the Holder or any Inspector, unless
and until such information in such Records has been made generally available to
the public other than as a result of a breach of this Agreement.

                  (l)      Provide (i) the Holders of the Registrable Securities
to be included in such Registration Statement and Designated Counsel, if any,
(ii) the sales or placement agent, if any, thereof, and (iii) one counsel for
such agents, reasonable opportunity to participate in the preparation of such
Registration Statement, each prospectus included therein or filed with the SEC,
and each amendment or supplement thereto.

                  (m)      During the Effectiveness Period, comply with all
applicable rules and regulations of the SEC and make generally available to its
security holders earning statements satisfying the provisions of Section 11(a)
of the Securities Act and Rule 158 thereunder (or any similar rule promulgated
under the Securities Act) no later than 45 days after the end of any 12-month
period (or 90 days after the end of any 12-month period if such period is a
fiscal year) commencing on the first day of the first fiscal quarter of the
Company after the effective date of a Registration Statement, which statements
shall cover said 12-month periods.

                  (n)      Cause the Indenture to be qualified under the TIA not
later than the effective date of the first Registration Statement relating to
the Registrable Securities; and in connection therewith, cooperate with the
Trustee and the Holders of the Registrable Securities and their respective
counsel to effect such changes to the Indenture as may be required for the
Indenture to be so qualified in accordance with the terms of the TIA; and
execute, and use all reasonable efforts to cause the Trustee to execute, all
documents as may be required to effect such changes and all other forms and
documents required to be filed with the SEC to enable the Indenture to be so
qualified in a timely manner.

                  (o)      Use all reasonable efforts to cause the Registrable
Securities covered by any Shelf Registration Statement to be registered with or
approved by such other governmental agencies or authorities as may be reasonably
necessary to enable the Selling Holder or Holders thereof to consummate the
disposition of such Registrable Securities, except as may be required solely as
a consequence of the nature of such selling Holder's business, in which case the
Company will cooperate in all reasonable respects with the filing of such
Registration Statement and the granting of such approvals.

                                      -11-

<PAGE>

                  (p)      If requested by Designated Counsel, if any, or the
Holders of the majority in Amount of Registrable Securities (i) promptly
incorporate in a prospectus supplement or post-effective amendment such
information as the Designated Counsel, if any, or such Holders reasonably
determine is necessary to be included therein, (ii) make all required filings of
such prospectus supplement or such post-effective amendment as soon as
reasonably practicable after the Company has received notification of the
matters to be incorporated in such prospectus supplement or post-effective
amendment and (iii) supplement or make amendments to such Registration
Statement.

                  (q)      Use all reasonable efforts to take all other steps
necessary or advisable to effect the registration of the Registrable Securities
covered by a Registration Statement contemplated hereby.

                  Each Holder agrees, by acquisition of the Registrable
Securities, that no Holder shall be entitled to sell any of such Registrable
Securities pursuant to a Registration Statement or to receive a Prospectus
relating thereto, unless such Holder has furnished the Company with a Notice and
Questionnaire as required pursuant to Section 2(d) hereof (including the
information required to be included in such Notice and Questionnaire) and the
information set forth in the next sentence. Each Selling Holder agrees promptly
to furnish to the Company all information required to be disclosed in order to
make the information previously furnished to the Company by such Selling Holder
not misleading and any other information regarding such Selling Holder and the
distribution of such Registrable Securities as the Company may from time to time
reasonably request. Any sale of any Registrable Securities by any Holder shall
constitute a representation and warranty by such Holder that the information
relating to such Holder and its plan of distribution is as set forth in the
Prospectus delivered by such Holder in connection with such disposition, that
such Prospectus does not as of the time of such sale contain any untrue
statement of a material fact relating to or provided by such Holder or its plan
of distribution and that such Prospectus does not as of the time of such sale
omit to state any material fact relating to or provided by such Holder or its
plan of distribution necessary to make the statements in such Prospectus, in the
light of the circumstances under which they were made, not misleading.

                  The Company may require each Selling Holder of Registrable
Securities as to which any registration is being effected to furnish to the
Company such additional information regarding such Holder and its plan of
distribution of such Registrable Securities as the Company may, from time to
time, reasonably request to the extent necessary or advisable to comply with the
Securities Act. The Company may exclude from such registration the Registrable
Securities of any Selling Holder if such Holder fails to furnish such additional
information within 20 Business Days after receiving such request. Each Selling
Holder as to which any Shelf Registration is being effected agrees to furnish
promptly to the Company all information required to be disclosed so that the
information previously furnished to the Company by such Holder is not materially
misleading and does not omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading in light of
the circumstances under which they were made.

                  Each Holder of Registrable Securities agrees by acquisition of
such Registrable Securities that, upon actual receipt of any notice from the
Company of the Company suspending the effectiveness of the Registration
Statement pursuant to Section 3(b) hereof, or upon the

                                      -12-

<PAGE>

happening of any event of the kind described in Section 4(c)(ii), 4(c)(iii) or
4(c)(iv) hereof, such Holder will forthwith discontinue disposition of such
Registrable Securities covered by such Registration Statement or Prospectus
until such Holder's receipt of the copies of the supplemented or amended
Prospectus contemplated by Section 4(i) hereof, or until it is advised in
writing by the Company that the use of the applicable Prospectus may be resumed,
and has received copies of any amendments or supplements thereto. Each Holder
agrees to keep any such notice in confidence.

5.       Registration Expenses.

                  (a)      All fees and expenses incident to the performance of
or compliance with this Agreement by the Company shall be borne by the Company,
including, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses of compliance with state securities or
Blue Sky laws, including, without limitation, reasonable fees and disbursements
of counsel in connection with Blue Sky qualifications of the Registrable
Securities and determination of the eligibility of the Registrable Securities
for investment under the laws of such jurisdictions as provided in Section 4(g)
hereof), (ii) printing expenses, including, without limitation, expenses of
printing certificates for Registrable Securities in a form eligible for deposit
with The Depository Trust Company and of printing prospectuses if the printing
of prospectuses is requested by the Holders of the majority in Amount of
Registrable Securities included in any Registration Statement, (iii) messenger,
telephone and delivery expenses, (iv) fees and disbursements of counsel for the
Company, (v) Securities Act liability insurance, if the Company desires such
insurance, (vi) fees and expenses of all other Persons retained by the Company,
(vii) internal expenses of the Company (including, without limitation, all
salaries and expenses of officers and employees of the Company performing legal
or accounting duties), (viii) the expense of any annual audit, (ix) the fees and
expenses incurred in connection with the listing of the securities to be
registered on any securities exchange, if applicable, and (x) the expenses
relating to printing, word processing and distributing all Registration
Statements and any other documents necessary in order to comply with this
Agreement. Notwithstanding anything in this Agreement to the contrary, each
Holder shall pay all brokerage commissions with respect to any Registrable
Securities sold by it and, except as set forth in Section 5(b) below the Company
shall not be responsible for the fees and expenses of any counsel, accountant or
advisor for the Holders.

                  (b)      The Company shall reimburse the Holders of the
Registrable Securities being registered in a Shelf Registration for the
reasonable fees and disbursements, of Designated Counsel.

6.       Indemnification.

                  The Company agrees to indemnify and hold harmless (a) each
Holder (which, for the absence of doubt, for purposes of this Section 6 shall
include the Initial Purchasers), (b) each Person, if any, who controls (within
the meaning of either Section 15 of the Securities Act or Section 20 of the
Exchange Act) any Holder (any of the Persons referred to in this clause (b)
being hereinafter referred to as a "Controlling Person"), (iii) the respective
officers, directors, partners, employees, representatives and agents of any
Holder (including any predecessor holder)or any controlling person (any person
referred to in clause (a), (b) or (c) may hereinafter

                                      -13-

<PAGE>

be referred to as an "Indemnified Holder"), against any losses, claims, damages
or liabilities to which such Indemnified Holder may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) arise out of or are
based upon (i) any untrue statement or alleged untrue statement of any material
fact contained in any Registration Statement or Prospectus, or any amendment or
supplement thereto or any related preliminary prospectus or (ii) the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, in the light of the
circumstances in which they were made; provided, however, that the Company will
not be liable under this paragraph, (x) to the extent that any such loss, claim,
damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement, or omission or alleged omission made in any such
Registration Statement or Prospectus, or any amendment or supplement thereto or
any related preliminary prospectus in reliance upon and in conformity with
written information relating to any Holder furnished to the Company by or on
behalf of such Holder specifically for use therein or (y) with respect to any
untrue statement or alleged untrue statement, or omission or alleged omission
made in any preliminary prospectus if the person asserting any such loss, claim,
damage or liability who purchased Registrable Securities which are the subject
thereof did not receive a copy of the Prospectus (or of the preliminary
prospectus as then amended or supplemented if the Company shall have furnished
such Indemnified Holder with such amendment or supplement thereto on a timely
basis) at or prior to the written confirmation of the sale of such Registrable
Securities to such person and, in any case where such delivery is required by
applicable law and the untrue statement or alleged untrue statement or omission
or alleged omission of a material fact made in such preliminary prospectus was
corrected in the Prospectus (or the preliminary prospectus as then amended or
supplemented if the Company shall have furnished such Indemnified Holder with
such amendment or supplement thereto on a timely basis). The Company shall
notify such Indemnified Holder promptly of the institution, threat or assertion
of any claim, proceeding (including any governmental investigation) or
litigation in connection with the matters addressed by this Agreement that
involves the Company or such Indemnified Holder.

                  The Company agrees to reimburse each Indemnified Holder upon
demand for any legal or other out-of-pocket expenses reasonably incurred by such
Indemnified Holder in connection with investigating or defending any such loss,
claim, damage or liability, any action or proceeding or in responding to a
subpoena or governmental inquiry related to the offering of the Registrable
Securities, whether or not such Indemnified Holder is a party to any action or
proceeding. In the event that it is finally judicially determined that an
Indemnified Holder was not entitled to receive payments for legal and other
expenses pursuant to this paragraph, such Indemnified Holder will promptly
return all sums that had been advanced pursuant hereto.

                  Each Holder agrees, severally and not jointly, to indemnify
and hold harmless the Company, its directors and officers and each Person who
controls the Company (within the meaning of either Section 15 of the Securities
Act or Section 20 of the Exchange Act) to the same extent as the indemnity
provided in the first paragraph of this Section 6 from the Company to each
Holder, but only with reference to such losses, claims, damages or liabilities
which are caused by any untrue statement or omission or alleged untrue statement
or omission made in reliance upon and in conformity with information relating to
a Holder furnished to the Company in writing by such Holder expressly for use in
any Registration Statement or Prospectus, or any amendment or supplement thereto
or any related preliminary prospectus. The liability of any

                                      -14-

<PAGE>

Holder under this paragraph shall in no event exceed the proceeds received by
such Holder from sales of Registrable Securities giving rise to such obligation.

                  In case any suit, action, proceeding (including any
governmental or regulatory investigation), claim or demand shall be brought or
asserted against any Person in respect of which indemnity may be sought pursuant
to either of the first and third paragraphs of this Section 6, such Person (the
"Indemnified Person") shall promptly notify the Person or Persons against whom
such indemnity may be sought (each an "Indemnifying Person") in writing. No
indemnification provided for in the first or third paragraphs of this Section 6
shall be available to any Person who shall have failed to give notice as
provided in this paragraph if the party to whom notice was not given was unaware
of the proceeding to which such notice would have related and was materially
prejudiced by the failure to give such notice, but the failure to give such
notice shall not relieve the Indemnifying Person or Persons from any liability
which it or they may have to the Indemnified Person for contribution or
otherwise than on account of the provisions of the first and third paragraphs of
this Section 6. In case any such proceeding shall be brought against any
Indemnified Person and it shall notify the Indemnifying Person of the
commencement thereof, the Indemnifying Person shall be entitled to participate
therein and, to the extent that it shall wish, jointly with any other
Indemnifying Person similarly notified, to assume the defense thereof, with
counsel reasonably satisfactory to such Indemnified Person and shall pay as
incurred (or within 30 days of presentation) the fees and disbursements of such
counsel related to such proceeding. In any such proceeding, any Indemnified
Person shall have the right to retain its own counsel at its own expense.
Notwithstanding the foregoing, the Indemnifying Person shall pay as incurred (or
within 30 days of presentation) the fees and expenses of the counsel retained by
the Indemnified Person in the event (i) the Indemnifying Person and the
Indemnified Person shall have mutually agreed to the retention of such counsel,
(ii) the named parties to any such proceeding (including any impleaded parties)
include both the Indemnifying Person and the Indemnified Person and
representation of both parties by the same counsel would be inappropriate due to
actual or potential differing interests between them or (iii) the Indemnifying
Person shall have failed to assume the defense and employ counsel reasonably
acceptable to the Indemnified Person within a reasonable period of time after
notice of commencement of the action. It is understood that the Indemnifying
Person shall not, in connection with any proceeding or related proceedings in
the same jurisdiction, be liable for the reasonable fees and expenses of more
than one separate firm for all such Indemnified Persons. Such firm shall be
designated in writing by Holders of a majority in Amount of Registrable
Securities in the case of parties indemnified pursuant to the first paragraph of
this Section 6 and by the Company in the case of parties indemnified pursuant to
the third paragraph of this Section 6. The Indemnifying Person shall not be
liable for any settlement of any proceeding effected without its written consent
but if settled with such consent or if there be a final judgment for the
plaintiff, the Indemnifying Person agrees to indemnify the Indemnified Person
from and against any loss or liability by reason of such settlement or judgment.
In addition, the Indemnifying Person will not, without the prior written consent
of the Indemnified Person, settle or compromise or consent to the entry of any
judgment in any pending or threatened claim, action or proceeding of which
indemnification may be sought hereunder (whether or not any Indemnified Person
is an actual or potential party to such claim, action or proceeding) unless such
settlement, compromise or consent includes an unconditional release of each
Indemnified Person from all liability arising out of such claim, action or
proceeding.

                                      -15-

<PAGE>

                  To the extent the indemnification provided for in this Section
6 is unavailable to or sufficient to hold harmless an Indemnified Person under
the first or third paragraph of this Section 6 in respect of any losses, claims,
damages or liabilities (or actions or proceedings in respect thereof) referred
to therein, except by reason of the exceptions set forth in the first or third
paragraphs of this Section 6 or the failure of the Indemnified Person to give
notice as required in the fourth paragraph of this Section 6, then each
Indemnifying Person shall contribute to the amount paid or payable by such
Indemnified Person as a result of such losses, claims, damages or liabilities
(or actions or proceedings in respect thereof) in such proportion as is
appropriate to reflect the relative benefits received by the Indemnifying Person
on the one hand and the Indemnified Person on the other hand from the offering
of the Notes pursuant to the Purchase Agreement and the Registrable Securities
pursuant to any Shelf Registration. If, however, the allocation provided by the
immediately preceding sentence is not permitted by applicable law then each
Indemnifying Person shall contribute to such amount paid or payable by such
Indemnified Person in such proportion as is appropriate to reflect not only such
relative benefits but also the relative fault of the Indemnifying Person on the
one hand and the Indemnified Person on the other in connection with the
statements or omissions which resulted in such losses, claims, damages or
liabilities (or actions or proceedings in respect thereof), as well as any other
relevant equitable considerations. The relative benefits received by the Company
on the one hand and any Indemnified Holder on the other shall be deemed to be in
the same proportion as the total net proceeds (before deducting expenses)
received by the Company from the offering and sale of the Notes bear to the
total net proceeds received by such Indemnified Holder from sales of Registrable
Securities giving rise to such obligations. The relative fault shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the Company on the one hand
or such Indemnified Holder on the other and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.

                  The Company and the Initial Purchasers agree that it would not
be just and equitable if contributions pursuant to the immediately preceding
paragraph of this Section 6 were determined by pro rata allocation or by any
other method of allocation which does not take account of the equitable
considerations referred to in the immediately preceding paragraph. The amount
paid or payable by an Indemnified Person as a result of the losses, claims,
damages or liabilities (or actions or proceedings in respect thereof) referred
to in the immediately preceding paragraph shall be deemed to include any legal
or other expenses reasonably incurred by such Indemnified Person in connection
with investigating or defending any such action or claim or enforcing any rights
hereunder. Notwithstanding the provisions of this paragraph and the immediately
preceding paragraph of this Section 6, (i) in no event shall any Holder be
required to contribute any amount in excess of the amount by which the net
proceeds received by such Holder from the offering or sale of the Registrable
Securities pursuant to a Shelf Registration Statement exceeds the amount of
damages which such Holder would have otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission and (ii)
no Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation.

                                      -16-

<PAGE>

                  Except as otherwise provided in this Section 6, any losses,
claims, damages, liabilities or expenses for which an Indemnified Person is
entitled to indemnification or contribution under this Section 6 shall be paid
by the Indemnifying Person to the Indemnified Person as such losses, claims,
damages, liabilities or expenses are incurred (or within 30 days of
presentation).

                  The remedies provided for in this Section 6 are not exclusive
and shall not limit any rights or remedies that may otherwise be available to
any indemnified party at law or in equity.

                  The indemnity and contribution agreements contained in this
Section 6 shall remain operative and in full force and effect regardless of (i)
any termination of this Agreement, (ii) any investigation made by or on behalf
of any Holder or any Person controlling any Holder or by or on behalf of the
Company, its officers or directors or any other Person controlling any of the
Company and (iii) acceptance of and payment for any of the Registrable
Securities.

7.       Rules 144 and 144A.

                  The Company covenants that it will file the reports required
to be filed by it under the Securities Act and the Exchange Act and the rules
and regulations adopted by the SEC thereunder in a timely manner in accordance
with the requirements of the Securities Act and the Exchange Act and, for so
long as any Registrable Securities remain outstanding, if at any time the
Company is not required to file such reports, it will, upon the request of any
Holder or beneficial owner of Registrable Securities, make available such
information necessary to permit sales pursuant to Rule 144A under the Securities
Act. The Company further covenants that, for so long as any Registrable
Securities remain outstanding, it will use all reasonable efforts to take such
further action as any Holder of Registrable Securities may reasonably request,
all to the extent required from time to time to enable such holder to sell
Registrable Securities without registration under the Securities Act within the
limitation of the exemptions provided by (a) Rule 144 and Rule 144A under the
Securities Act, as such rules may be amended from time to time, or (b) any
similar rule or regulation hereafter adopted by the SEC. The Company will
provide a copy of this Agreement to prospective purchasers of Registrable
Securities identified to the Company by the Initial Purchasers upon request.
Upon the request of any Holder, the Company shall deliver to such Holder a
written statement as to whether it has complied with such requirements.
Notwithstanding the foregoing, nothing in this Section 7 shall be deemed to
require the Company to register any of its securities pursuant to the Exchange
Act.

8.       Underwritten Registrations.

                  No Holder of Registrable Securities may participate in any
Underwritten Registration hereunder.

9.       Miscellaneous.

                  (a)      No Inconsistent Agreements. The Company has not, as
of the date hereof, and the Company shall not, after the date of this Agreement,
enter into any agreement with respect to any of its securities that is
inconsistent with the rights granted to the Holders of Registrable Securities in
this Agreement or otherwise conflicts with the provisions hereof.

                                      -17-

<PAGE>

                  (b)      Adjustments Affecting Registrable Securities. The
Company shall not, directly or indirectly, take any action with respect to the
Registrable Securities as a class that would adversely affect the ability of the
Holders of Registrable Securities to include such Registrable Securities in a
registration undertaken pursuant to this Agreement.

                  (c)      Amendments and Waivers. The provisions of this
Agreement may not be amended, modified or supplemented, and waivers or consents
to departures from the provisions hereof may not be given, otherwise than with
the prior written consent of the Company and the Holders of not less than the
majority in Amount of Registrable Securities; provided, however, that Section 6
and this Section 9(c) may not be amended, modified or supplemented without the
prior written consent of the Company and each Holder (including, in the case of
an amendment, modification or supplement of Section 6, any Person who was a
Holder of Registrable Securities disposed of pursuant to any Registration
Statement). Notwithstanding the foregoing, a waiver or consent to depart from
the provisions hereof with respect to a matter that relates exclusively to the
rights of Holders of Registrable Securities whose securities are being sold
pursuant to a Registration Statement and that does not directly or indirectly
affect, impair, limit or compromise the rights of other Holders of Registrable
Securities may be given by Holders of at least a majority in principal amount of
the Registrable Securities being sold by such Holders pursuant to such
Registration Statement.

                  (d)      Notices. All notices and other communications
(including without limitation any notices or other communications to the
Trustee) provided for or permitted hereunder shall be made in writing by
hand-delivery, registered first-class mail, next-day air courier or facsimile:

                           (1)      if to a Holder of Registrable Securities, at
the most current address of such Holder set forth on the records of the
registrar under the Indenture, in the case of Holders of Notes, and the stock
ledger of the Company, in the case of Holders of common stock of the Company,
unless, in either such case, any Holder shall have provided notice information
in a Notice and Questionnaire or any amendment thereto, in which case such
information shall control.

                           (2)      if to the Initial Purchasers:

                                    c/o Deutsche Bank Securities Inc.
                                    31 West 52nd Street
                                    New York, New York 10019
                                    Facsimile No.: (212) 469-3665
                                    Attention: General Counsel

                               with copies to:

                                    Willkie Farr & Gallagher
                                    787 Seventh Avenue
                                    New York, New York 10019
                                    Facsimile No.: (212) 728-8111
                                    Attention: Jeffrey R. Poss, Esq.

                                      -18-

<PAGE>

                           (3)      if to the Company:

                                    Kaydon Corporation
                                    Suite 300, 315 East Eisenhower Parkway
                                    Ann Arbor, Michigan 48108
                                    Facsimile No.: (734) 747-6928
                                    Attention: President

                               with copies to:

                                    Dykema Gossett PLLC
                                    400 Renaissance Center
                                    Detroit, Michigan 48243
                                    Facsimile No.: (313) 568-6915
                                    Attention: Paul Rentenbach, Esq.

                  All such notices and communications shall be deemed to have
been duly given: when delivered by hand, if personally delivered; five (5)
Business Days after being deposited in the mail, postage prepaid, if mailed; one
Business Day after being timely delivered to a next-day air courier; and when
the addressor receives facsimile confirmation, if sent by facsimile during
normal business hours, and otherwise on the next Business Day during normal
business hours.

                  (e)      Successors and Assigns. This Agreement shall inure to
the benefit of and be binding upon the successors and assigns of each of the
parties hereto, including the Holders; provided, however, that this Agreement
shall not inure to the benefit of or be binding upon a successor or assign of a
Holder unless and except to the extent such successor or assign holds
Registrable Securities.

                  (f)      Counterparts. This Agreement may be executed in any
number of counterparts and by the parties hereto in separate counterparts,
including via facsimile, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement.

                  (g)      Headings. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

                  (h)      Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED
TO CONTRACTS MADE AND PERFORMED WHOLLY WITHIN THE STATE OF NEW YORK, WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAW. EACH OF THE PARTIES HERETO AGREES TO
SUBMIT TO THE JURISDICTION OF THE FEDERAL AND NEW YORK STATE COURTS SITTING IN
MANHATTAN, NEW YORK CITY, THE STATE OF NEW YORK, IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT.

                  (i)      Severability. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction to be
invalid, illegal, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions set forth herein

                                      -19-

<PAGE>

shall remain in full force and effect and shall in no way be affected, impaired
or invalidated, and the parties hereto shall use their best efforts to find and
employ an alternative means to achieve the same or substantially the same result
as that contemplated by such term, provision, covenant or restriction. It is
hereby stipulated and declared to be the intention of the parties that they
would have executed the remaining terms, provisions, covenants and restrictions
without including any of such that may be hereafter declared invalid, illegal,
void or unenforceable.

                  (j)      Securities Held by the Company or Its Affiliates.
Whenever the consent or approval of Holders of a specified percentage in Amount
of Registrable Securities is required hereunder, Registrable Securities held by
the Company or its affiliates (as such term is defined in Rule 405 under the
Securities Act) shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage.

                  (k)      Third-Party Beneficiaries. Holders of Registrable
Securities are intended third party beneficiaries of this Agreement and this
Agreement may be enforced by such Persons.

                  (l)      Entire Agreement. This Agreement, together with the
Purchase Agreement and the Indenture, is intended by the parties as a final and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein and therein and any and all prior
oral or written agreements, representations, or warranties, contracts,
understandings, correspondence, conversations and memoranda between the Initial
Purchasers on the one hand and the Company on the other, or between or among any
agents, representatives, parents, subsidiaries, affiliates, predecessors in
interest or successors in interest with respect to the subject matter hereof and
thereof are merged herein and replaced hereby.

                            [Signature page follows]

                                      -20-

<PAGE>

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

                                           KAYDON CORPORATION

                                           By: /S/ BRIAN P. CAMPBELL
                                               --------------------------------
                                               Name: Brian P. Campbell
                                               Title: President and Chief
                                                      Executive Officer

                                           DEUTSCHE BANK SECURITIES INC.

                                           By: /S/ RICHARD W. THALER
                                               --------------------------------
                                               Name: Richard W. Thaler
                                               Title: Managing Director

                                           By: /S/ PAUL FREIPORT
                                               --------------------------------
                                               Name: Paul Freiport
                                               Title:  Director

                                           BANC ONE CAPITAL MARKETS, INC.

                                           By: /S/ DAVID P. STOWELL
                                               --------------------------------
                                               Name: David P. Stowell
                                               Title: Managing Director

                                           SUNTRUST CAPITAL MARKETS, INC.

                                           By: /S/ CHARLES W. MILLS
                                               --------------------------------
                                               Name: Charles W. Mills
                                               Title: Director

                [Signature Page to Registration Rights Agreement]<PAGE>

                                                                    EXHIBIT 10.1

                               KAYDON CORPORATION

                                  $170,000,000

         4.0% CONTINGENT CONVERTIBLE SENIOR SUBORDINATED NOTES DUE 2023

                               PURCHASE AGREEMENT
                                                                   May 20, 2003

DEUTSCHE BANK SECURITIES INC.
BANC ONE CAPITAL MARKETS, INC.
SUNTRUST CAPITAL MARKETS, INC.
c/o Deutsche Bank Securities Inc.
31 West 52nd Street
New York, New York 10019

Ladies and Gentlemen:

                 Kaydon Corporation ("Kaydon"), a Delaware corporation, hereby
confirms its agreement with Deutsche Bank Securities Inc. ("DBS"), Banc One
Capital Markets, Inc. and SunTrust Capital Markets, Inc. (each an "Initial
Purchaser" and together, the "Initial Purchasers"), as set forth below.

                 1. The Notes. Subject to the terms and conditions herein
contained, Kaydon proposes to issue and sell to the Initial Purchasers
$170,000,000 aggregate principal amount of Kaydon's 4.0% Contingent Convertible
Senior Subordinated Notes due 2023 (the "Firm Notes"). Kaydon also proposes to
issue and sell to the Initial Purchasers at the Initial Purchasers' option an
additional $30,000,000 aggregate principal amount of its 4.0% Contingent
Convertible Senior Subordinated Notes due 2023 (the "Option Notes" and together
with the Firm Notes, the "Notes"). The Notes are to be issued pursuant to the
terms of an Indenture (the "Indenture") between Kaydon and National City Bank of
Michigan/Illinois, as trustee (the "Trustee").

                 The Notes will be offered and sold to you without being
registered under the Securities Act of 1933, as amended (the "Act"), in reliance
on exemptions therefrom.

                 In connection with the sale of the Notes, Kaydon has prepared
a final offering memorandum, dated May 20, 2003 (including Appendix A thereto
and the information incorporated by reference therein, the "Memorandum"),
setting forth or incorporating a description of the terms of the Notes, the
terms of the offering of the Notes, a description of Kaydon and any material
developments relating to Kaydon occurring after the date of the most recent
historical financial statements, if any, included or incorporated therein.
Kaydon hereby confirms that it has authorized the use of the Memorandum, and any
amendment or supplement thereto, in connection with the resale of the Notes by
the Initial Purchasers.

<PAGE>

                 Kaydon understands that the Initial Purchasers propose to make
an offering of the Notes only on the terms and in the manner set forth in the
Memorandum and Section 8 hereof as soon as the Initial Purchasers deem advisable
after this Agreement has been executed and delivered, to persons in the United
States whom the Initial Purchasers reasonably believe to be qualified
institutional buyers ("Qualified Institutional Buyers" or "QIBs") as defined in
Rule 144A under the Act, as such rule may be amended from time to time ("Rule
144A"), in transactions under Rule 144A.

                 The Notes are convertible into shares of common stock, par
value $.10 per share (the "Common Stock"), of Kaydon. The Initial Purchasers and
the direct and indirect transferees of the Notes will be entitled to the
benefits of the Registration Rights Agreement, substantially in the form
attached hereto as Exhibit A (the "Registration Rights Agreement"), to be dated
as of the Closing Date (as defined in Section 3 below), pursuant to which Kaydon
will agree, among other things, to file a registration statement (the
"Registration Statement") with the Securities and Exchange Commission (the
"Commission") registering the Notes and the shares of Common Stock issuable upon
conversion of the Notes under the Act.

                 2.       Representations and Warranties of Kaydon.  Kaydon
represents and warrants to and agrees with the Initial Purchasers that:

                 (a)      Neither the Memorandum nor any amendment or supplement
thereto as of the date thereof and at all times subsequent thereto up to the
Closing Date or the relevant Option Closing Date (as defined in Section 3
below), as the case may be, contained or will contain any untrue statement of a
material fact or omitted or will omit to state a material fact necessary to make
the statements therein, in the light of the circumstances under which they were
made, not misleading, except that the representations and warranties set forth
in this Section 2(a) do not apply to statements or omissions made in reliance
upon and in conformity with information relating to the Initial Purchasers or to
their resale of the Notes furnished to Kaydon in writing by the Initial
Purchasers expressly for use in the Memorandum or any amendment or supplement
thereto, it being understood and agreed that the only such information is that
as described in Section 9(b) hereof.

                 (b)      Kaydon has been duly organized and is validly
existing as a corporation in good standing under the laws of the State of
Delaware, with corporate or other power and authority to own or lease its
properties and conduct its business as described or incorporated by reference in
the Memorandum and as being conducted as of the date of this Agreement. Each of
the Subsidiaries (as defined below) has been duly organized and is validly
existing as a corporation, limited liability company or partnership, as
applicable, in good standing or active status under the laws of the jurisdiction
of its incorporation or formation, with corporate or other power and authority
to own or lease its properties and conduct its business as described or
incorporated by reference in the Memorandum and as being conducted as of the
date of this Agreement. Each of Kaydon and the Subsidiaries is duly qualified to
transact business and in good standing in all jurisdictions in which it owns or
leases real property or in which the conduct of its business requires such
qualification, except where the failure to be so qualified or to be in good
standing would not, individually or in the aggregate, have a material adverse
effect on the condition, financial or otherwise, of Kaydon and the Subsidiaries
taken as a whole or the business, management, properties, assets, rights,
operations or prospects of Kaydon and the

                                        2

<PAGE>

Subsidiaries taken as a whole (a "Material Adverse Effect"). The outstanding
shares of capital stock of each of the Subsidiaries have been duly authorized
and validly issued, are fully paid and non-assessable and are owned by Kaydon or
another Subsidiary (except (i) to the extent set forth as "minority interests"
on the consolidated balance sheet of Kaydon and (ii) for director qualifying
shares) free and clear of all liens, encumbrances, equities, claims and
restrictions on transferability (other than those imposed by the Act and the
securities or "Blue Sky" laws of certain jurisdictions) or voting; and no
options, warrants or other rights to purchase, agreements or other obligations
to issue or other rights to convert any obligations into shares of capital stock
or ownership interests in the Subsidiaries are outstanding. None of the
outstanding shares of capital stock of the Subsidiaries was issued in violation
of any preemptive or similar rights of any security holder of such Subsidiary or
any federal or state securities laws. For purposes of this Agreement, a
"Subsidiary" means those direct or indirect "significant subsidiaries" of Kaydon
within the meaning of Rule 1-02(w) of the Commission's Regulation S-X and set
forth on Schedule 2(b) attached hereto.

                 (c)      The information set forth under the caption
"Capitalization" in the Memorandum is true and correct as of its date. The
outstanding shares of Common Stock have been duly authorized and validly issued
and are fully paid and non-assessable and no preemptive rights of stockholders
exist with respect to the capital stock or any other securities of Kaydon or the
issue and sale thereof. None of the outstanding shares of capital stock of
Kaydon was issued in violation of any preemptive or similar rights of any
security holder of Kaydon or any federal or state securities laws. The shares of
Common Stock to be issued upon conversion of the Notes have been duly authorized
and reserved, and when issued upon conversion of the Notes will be validly
issued, fully paid and non-assessable; no preemptive rights of stockholders
exist with respect to any of the shares of Common Stock to be issued upon
conversion of the Notes. Except as set forth or incorporated by reference in the
Memorandum, there are no preemptive rights or other rights to subscribe for or
to purchase, or any restriction upon the voting or transfer of, any shares of
Common Stock pursuant to Kaydon's certificate of incorporation, by-laws or any
agreement or other instrument to which Kaydon is a party or by which Kaydon is
bound, or, to the knowledge of Kaydon, to which any stockholder is a party or by
which any stockholder is bound. Neither the offering or sale of the Notes nor
the filing of the Registration Statement as contemplated by this Agreement gives
rise or shall give rise to any rights, other than those that have been waived or
satisfied, for or relating to the registration of any securities of Kaydon.

                 (d)      Kaydon has all requisite corporate power and
authority to execute, deliver and perform each of its obligations under the
Notes. The Notes, when issued, shall be in the form contemplated by the
Indenture. The Notes have each been duly and validly authorized by Kaydon and,
when executed and issued by Kaydon and authenticated by the Trustee in
accordance with the provisions of the Indenture and delivered to and paid for by
the Initial Purchasers in accordance with the terms of this Agreement, shall
have been duly executed, issued and delivered and shall constitute valid and
legally binding obligations of Kaydon (assuming the due authorization, execution
and delivery of the Indenture by the Trustee and the due authorization and
delivery of the Notes by the Trustee in accordance with the Indenture), entitled
to the benefits of the Indenture, and enforceable against Kaydon in accordance
with their terms, except that the enforcement thereof may be subject to (i)
bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or
other similar laws now or hereafter in effect relating to creditors' rights
generally, and (ii) general principles of equity and the

                                       3

<PAGE>

discretion of the court before which any proceeding therefor may be brought
(regardless of whether such enforcement is considered in a proceeding in equity
or at law).

                 (e)      Kaydon has all requisite corporate power and
authority to execute, deliver and perform its obligations under the Indenture.
The Indenture will be duly qualified under the Trust Indenture Act of 1939, as
amended (the "Trust Indenture Act"). The Indenture has been duly and validly
authorized by Kaydon, and, when duly executed and delivered by Kaydon (assuming
the due authorization, execution and delivery by the Trustee), will have been
duly executed and delivered and will constitute a valid and legally binding
agreement of Kaydon, enforceable against Kaydon in accordance with its terms,
except that the enforcement thereof may be subject to (i) bankruptcy,
insolvency, reorganization, fraudulent conveyance, moratorium or other similar
laws now or hereafter in effect relating to creditors' rights generally and (ii)
general principles of equity and the discretion of the court before which any
proceeding therefor may be brought (regardless of whether such enforcement is
considered in a proceeding in equity or at law).

                 (f)      Each of the Indenture, the Notes, the Registration
Rights Agreement and the Common Stock conforms in all material respects to the
description thereof contained or incorporated by reference in the Memorandum.

                 (g)      Kaydon has all requisite corporate power and
authority to execute, deliver and perform its obligations under the Registration
Rights Agreement. The Registration Rights Agreement has been duly and validly
authorized by Kaydon and, when executed and delivered by Kaydon (assuming due
authorization, execution and delivery by the Initial Purchasers), will have been
duly executed and delivered and will constitute a valid and legally binding
agreement of Kaydon, enforceable against Kaydon in accordance with its terms,
except that (i) the enforcement thereof may be subject to (A) bankruptcy,
insolvency, reorganization, fraudulent conveyance, moratorium or other similar
laws now or hereafter in effect relating to creditors' rights generally and (B)
general principles of equity and the discretion of the court before which any
proceeding therefor may be brought (regardless of whether such enforcement is
considered in a proceeding in equity or at law) and (ii) any rights to indemnity
or contribution thereunder may be limited by federal and state securities laws
and public policy considerations.

                 (h)      Kaydon has all requisite corporate power and
authority to execute, deliver and perform its obligations under this Agreement
and to consummate the transactions contemplated hereby. This Agreement and the
consummation by Kaydon of the transactions contemplated hereby have been duly
and validly authorized by Kaydon. This Agreement has been duly executed and
delivered by Kaydon and (assuming the due authorization, execution and delivery
of this Agreement by the Initial Purchasers) is a valid and legally binding
agreement of Kaydon.

                 (i)      The consolidated financial statements of Kaydon and
the Subsidiaries, together with related notes and schedules, set forth or
incorporated by reference in the Memorandum present fairly the financial
position and the results of operations, stockholders' equity and cash flows of
Kaydon and the consolidated Subsidiaries, at the indicated dates and for the
indicated periods. Such financial statements and related schedules have been
prepared in accordance with generally accepted accounting principles,
consistently applied throughout the

                                       4

<PAGE>

periods involved, except as disclosed therein, and all adjustments necessary for
a fair presentation of results for such periods have been made. The summary
financial and statistical data included or incorporated by reference in the
Memorandum presents fairly the information shown therein and such data has been
compiled on a basis consistent with the financial statements presented therein
and the books and records of Kaydon. The pro forma financial statements and
other pro forma financial information included or incorporated by reference in
the Memorandum present fairly the information shown therein, have been prepared
in accordance with the Commission's rules and guidelines with respect to pro
forma financial statements, have been properly compiled on the pro forma bases
described therein, and, in the opinion of Kaydon, the assumptions used in the
preparation thereof are reasonable and the adjustments used therein are
appropriate to give effect to the transactions or circumstances referred to
therein.

                 (j)      Ernst & Young LLP, who has certified certain of the
financial statements of Kaydon as set forth in its reports incorporated by
reference in the Memorandum, is an independent public accountant as required by
the Act and the applicable rules and regulations thereunder.

                 (k)      There is no action, suit, claim or proceeding pending
or, to the knowledge of Kaydon, threatened against or affecting Kaydon or any of
the Subsidiaries before any court or administrative agency, domestic or foreign,
or otherwise which if determined adversely to Kaydon or any of its Subsidiaries
might result in a Material Adverse Effect or might prevent the consummation of
the transactions contemplated hereby or in the Indenture, the Notes or the
Registration Rights Agreement, except as set forth or incorporated by reference
in the Memorandum.

                 (l)      Each of Kaydon and the Subsidiaries has good and
marketable title to all of the properties and assets described or incorporated
by reference in the Memorandum, subject to no lien, mortgage, pledge, charge or
encumbrance of any kind except as described or incorporated by reference in the
Memorandum or which are not material in amount. Each of Kaydon and the
Subsidiaries occupy its leased properties under valid and binding leases or
subleases conforming in all material respects to the description thereof set
forth or incorporated by reference in the Memorandum and no default by Kaydon or
such Subsidiary, as the case may be, has occurred or is continuing thereunder
which would reasonably be expected to result in a Material Adverse Effect.
Neither Kaydon nor any of the Subsidiaries has any notice of any material claim
of any sort that has been asserted by anyone adverse to the rights of Kaydon or
any of the Subsidiaries under any of the leases or subleases mentioned above, or
affecting or questioning the rights of Kaydon or any of the Subsidiaries to the
continued possession of the leased or subleased premises under any such lease or
sublease.

                 (m)      Kaydon and the Subsidiaries have timely filed all
federal, state, local and foreign tax returns that have been required to be
filed (taking into account any applicable extensions) and have paid all taxes
indicated by said returns and all assessments received by them or any of them
through the date hereof, as of the Closing Date and the relevant Option Closing
Date, as the case may be, to the extent that such taxes have become due and are
not being contested in good faith and for which an adequate reserve for accrual
has been established in accordance with generally accepted accounting
principles. All tax liabilities (including those being contested in good faith)
of Kaydon and the Subsidiaries have been adequately provided for

                                       5

<PAGE>

in the consolidated financial statements of Kaydon, and Kaydon does not know of
any actual or proposed additional material tax assessments.

                 (n)      Since the respective dates as of which information is
given or incorporated by reference in the Memorandum, (i) there has not been any
material adverse change or, to the knowledge of Kaydon, any development
involving a prospective material adverse change in or otherwise materially
affecting the earnings, business, management, properties, assets, rights,
operations, condition (financial or otherwise), or prospects of Kaydon and the
Subsidiaries taken as a whole, whether or not occurring in the ordinary course
of business, (ii) there has not been any material transaction entered into or
any material transaction that is probable of being entered into by Kaydon or the
Subsidiaries, other than transactions in the ordinary course of business and
changes and transactions described in the Memorandum, (iii) there has not been
any change in the capital stock or long-term indebtedness of Kaydon or any of
the Subsidiaries that is material to the business, condition (financial or
other) or results of operations or prospects of Kaydon and the Subsidiaries and
(iv) there has been no dividend or distribution of any kind declared, paid or
made by Kaydon or any of the Subsidiaries on any class of their capital stock.
Kaydon and the Subsidiaries have no material liabilities or obligations, direct
or contingent, that are not disclosed in Kaydon's financial statements that are
incorporated by reference in the Memorandum.

                 (o)      Neither Kaydon nor any of the Subsidiaries is, or
with the giving of notice or lapse of time or both will be, in violation of or
in default under its certificate of incorporation or by-laws or other comparable
documents or under any agreement, lease, contract, indenture or other instrument
or obligation to which Kaydon or any of the Subsidiaries is a party or by which
any of them, or any of their properties, is bound, in any such case which would
reasonably be expected to have a Material Adverse Effect. The execution,
delivery and performance of this Agreement, the Indenture, the Notes and the
Registration Rights Agreement, the issuance and sale of the Notes to the Initial
Purchasers by Kaydon pursuant to this Agreement, the issuance by Kaydon of the
shares of Common Stock issuable upon conversion of the Notes and the
consummation of the transactions herein and therein contemplated and the
fulfillment of the terms hereof and thereof shall not conflict with or result in
a breach of any of the terms or provisions of, or constitute a default or
Repayment Event (as defined below) under (or an event that with the giving of
notice or lapse of time or both would constitute a default or Repayment Event
under), or result in the imposition or creation of (or the obligation to create
or impose) a lien, charge or encumbrance on any property or assets of Kaydon or
any Subsidiary with respect to, (i) the certificate of incorporation or by-laws
or other comparable documents of Kaydon or any Subsidiary or (ii) except as
would not be reasonably expected, individually or in the aggregate, to have a
Material Adverse Effect, any statute, agreement or instrument to which Kaydon or
any of the Subsidiaries is a party or by which any of them is bound or to which
any of their properties is subject (assuming Kaydon uses the proceeds of the
issuance and sale of the Notes as described in the Memorandum), or (iii) any
order, rule, regulation or decree of any court or governmental agency or body
having jurisdiction over Kaydon or any of the Subsidiaries or any of their
properties. As used in this Agreement, a "Repayment Event" means any event or
condition which gives the holder of any note, debenture or other evidence of
indebtedness (or any person acting on such holder's behalf) the right to require
the repurchase, redemption or repayment of all or a portion of such indebtedness
by Kaydon or any of the Subsidiaries.

                                       6

<PAGE>

                 (p)      Each approval, consent, order, authorization,
designation, declaration or filing by or with any regulatory, administrative or
other governmental body necessary in connection with the execution and delivery
by Kaydon of this Agreement, the Indenture, the Notes and the Registration
Rights Agreement, the consummation of the transactions herein contemplated and
the application of the proceeds from the issuance and sale of the Notes has been
obtained or made and is in full force and effect, except for (i) the
qualification of the Indenture under the Trust Indenture Act and compliance with
state securities or "Blue Sky" laws, in each case as contemplated by the
Registration Rights Agreement and (ii) such additional steps as may be necessary
to qualify the Notes for offering by the Initial Purchasers under state
securities or "Blue Sky" laws.

                 (q)      Each of Kaydon and the Subsidiaries now holds and at
the Closing Date and the relevant Option Closing Date, as the case may be, will
hold all licenses, certificates, approvals, consents, permits and other
authorizations, except those for which the failure of which to hold would not
reasonably be expected to have a Material Adverse Effect (collectively,
"Permits") from all federal, state, foreign and other governmental or regulatory
authorities that are necessary to the conduct of its businesses as such business
is currently conducted and as described in the Memorandum, and has fulfilled and
performed in all material respects its obligations with respect to the Permit.
All such Permits are valid and in full force and effect, except where the
invalidity of such Permit or the failure of such Permit to be in full force and
effect would not reasonably be expected to have a Material Adverse Effect (and
there is no proceeding pending or, to the knowledge of Kaydon, threatened which
may cause any such Permit to be withdrawn, cancelled, suspended or not renewed
which would reasonably be expected to have a Material Adverse Effect).

                 (r)      Except as set forth or incorporated by reference in
the Memorandum or for which the failure to possess would not, individually or in
the aggregate, result in a Material Adverse Effect, each of Kaydon and the
Subsidiaries owns or possesses adequate rights to use all material designs,
patents, patent applications, trademarks, service marks, trade names, trademark
registrations, service mark registrations, copyrights, licenses, inventions,
trade secrets and rights necessary for the conduct of the business of Kaydon and
the Subsidiaries as currently carried on and as described or incorporated by
reference in the Memorandum ("Intellectual Property Rights"). Except as stated
or incorporated by reference in the Memorandum or for which the failure to
possess would not, individually or in the aggregate, result in a Material
Adverse Effect, (i) no name that Kaydon or any of the Subsidiaries uses and no
other aspect of the business of Kaydon or any of the Subsidiaries involves or
gives rise to, or will involve or give rise to, any infringement of, or license
or similar fees for, the Intellectual Property Rights or other similar rights of
others material to the business or prospects of Kaydon or the Subsidiaries and
neither Kaydon nor any of the Subsidiaries has received any notice alleging any
such infringement or fee, (ii) neither Kaydon nor any of the Subsidiaries is
under any obligation to pay any material third-party royalties or fees of any
kind whatsoever with respect to the Intellectual Property Rights developed,
employed or used in Kaydon's or any Subsidiaries' business as currently
conducted and as proposed to be conducted as discussed or incorporated by
reference in the Memorandum, (iii) there is no pending or, to Kaydon's
knowledge, threatened action, suit, proceeding or claim by others challenging
Kaydon's or any Subsidiaries' rights to the Intellectual Property Rights, (iv)
there is no pending or, to Kaydon's knowledge, threatened action, suit,
proceeding or claim by others challenging the validity or scope of any such

                                       7

<PAGE>

Intellectual Property Rights, and (v) there is no pending or, to Kaydon's
knowledge, threatened action, suit, proceeding or claim by others that Kaydon or
any of the Subsidiaries infringes or otherwise violates any patent, trademark,
service mark, trade name, trademark registrations, service mark registrations,
copyrights, licenses, inventions or trade secrets or other proprietary rights of
others. To Kaydon's knowledge, none of the Intellectual Property Rights licensed
to or by Kaydon or any of the Subsidiaries is unenforceable or invalid; and
Kaydon is not aware of the granting rights of third parties to, or conflicting
with, any Intellectual Property Rights owned by Kaydon or any of the
Subsidiaries.

                 (s)      To Kaydon's knowledge, there is no U.S. patent or
published U.S. patent application which contains claims that dominate or may
dominate any Intellectual Property Rights described or incorporated by reference
in the Memorandum as being owned or licensed to Kaydon or any of the
Subsidiaries or that interferes with the issued or pending claims of any such
Intellectual Property Rights that would be reasonably expected, individually or
in the aggregate, to result in a Material Adverse Effect. Kaydon is unaware of
any prior art that may render any U.S. patent held by Kaydon or any of the
Subsidiaries invalid or any U.S. patent application held by Kaydon or the
Subsidiaries unpatentable which has not been disclosed to the U.S. Patent and
Trademark Office and which would be reasonably expected, individually or in the
aggregate, to result in a Material Adverse Effect.

                 (t)      Neither Kaydon, nor to Kaydon's knowledge, any of its
affiliates, has taken or will take, directly or indirectly, any action designed
to cause or result in, or which has constituted or which might reasonably be
expected to constitute, the stabilization or manipulation of the price of the
Notes to facilitate the sale or resale of the Notes. Kaydon acknowledges that
the Initial Purchasers may engage in stabilizing transactions in the Notes in
accordance with Regulation M under the Securities Exchange Act of 1934, as
amended (the "Exchange Act").

                 (u)      Neither Kaydon nor any Subsidiary is, and after giving
effect to the offering and sale of the Notes and the application of the proceeds
as described in the Memorandum will not be, an "investment company" or an entity
"controlled" by an "investment company" as such terms are defined in the
Investment Company Act of 1940, as amended (the "Investment Company Act"), and
the rules and regulations of the Commission thereunder.

                 (v)      Kaydon and the Subsidiaries maintain a system of
internal accounting controls sufficient to provide reasonable assurances that
(i) transactions are executed in accordance with management's general or
specific authorization; (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted
accounting principles and to maintain accountability for assets; (iii) access to
assets is permitted only in accordance with management's general or specific
authorization; and (iv) the recorded accountability for assets is compared with
existing assets at reasonable intervals and appropriate action is taken with
respect to any differences.

                 (w)      Neither Kaydon nor any of the Subsidiaries nor any
agent acting on their behalf has taken or will take any action that might cause
this Agreement or the sale of the Notes to violate Regulation T, U or X of the
Board of Governors of the Federal Reserve System, in each case as in effect, or
as the same may hereafter be in effect, on the Closing Date and the relevant
Option Closing Date.

                                       8

<PAGE>

                 (x)      Except as described or incorporated by reference in
the Memorandum or as would not have a Material Adverse Effect, (i) each of
Kaydon and the Subsidiaries is in compliance with and not subject to liability
under applicable Environmental Laws (as defined below), (ii) each of Kaydon and
the Subsidiaries has made all filings and provided all notices required under
any applicable Environmental Law to conduct their respective businesses, and is
and has at all times since their issuance been in compliance with all Permits
required under any applicable Environmental Laws and each such filing, notice
and Permit is in full force and effect, (iii) there is no civil, criminal or
administrative action, suit, demand, claim, hearing, notice of violation,
investigation, proceeding, notice or demand letter or request for information
pending or, to the knowledge of Kaydon, threatened against Kaydon or any
Subsidiary under any Environmental Law, (iv) no lien, charge, encumbrance or
restriction has been recorded under any Environmental Law with respect to any
assets, facility or property owned, operated, leased or controlled by Kaydon or
any Subsidiary, (v) neither Kaydon nor any Subsidiary has received notice that
it has been identified as a potentially responsible party under the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended ("CERCLA"), or any comparable state or foreign law, (vi) no property or
facility of Kaydon or any Subsidiary is (A) listed or, to the knowledge of
Kaydon, proposed for listing on the National Priorities List under CERCLA or (B)
listed in the Comprehensive Environmental Response, Compensation, Liability
Information System List promulgated pursuant to CERCLA, or on any comparable
list maintained by any foreign, federal, state or local governmental authority
and (vii) there are no events or circumstances that would reasonably be expected
to form the basis of an order for clean-up or remediation, or an action, suit,
or proceeding by any private or governmental body or agency, against or
affecting Kaydon or any of the Subsidiaries relating to Environmental Laws.

                 For purposes of this Agreement, "Environmental Laws" means the
common law and all applicable federal, state, foreign and local laws or
regulations, codes, orders, decrees, judgments or injunctions issued,
promulgated, approved or entered thereunder, relating to pollution or protection
of public or employee health and safety or the environment, including, without
limitation, laws relating to (i) emissions, discharges, releases or threatened
releases of hazardous materials into the environment (including, without
limitation, ambient air, surface water, groundwater, land surface or subsurface
strata), (ii) the manufacture, processing, distribution, use, generation,
treatment, storage, disposal, transport or handling of hazardous materials, and
(iii) underground and aboveground storage tanks, and related piping, and
emissions, discharges, releases or threatened releases therefrom.

                 (y)      Kaydon and the Subsidiaries have not incurred any
costs or liabilities associated with Environmental Laws (including, without
limitation, any capital or operating expenditures required for clean-up, closure
of properties or compliance with Environmental Laws or Permits or any potential
liabilities to third parties) which are ongoing and which would reasonably be
expected to have a Material Adverse Effect.

                 (z)      There is no strike, labor dispute, slowdown or work
stoppage with the employees of Kaydon or the Subsidiaries that is pending or, to
the knowledge of Kaydon, threatened, that would have a Material Adverse Effect.
Neither Kaydon nor any of the Subsidiaries is aware of any existing or imminent
labor disturbance by the employees of any of Kaydon's or any of the
Subsidiaries' principal suppliers, manufacturers, customers or

                                       9

<PAGE>

contractors, which, in either case, would reasonably be expected to result in a
Material Adverse Effect.

                 (aa)     Kaydon and the Subsidiaries carry, or are covered by,
insurance with insurers of nationally recognized reputation in such amounts and
covering such risks as is adequate for the conduct of their respective
businesses and the value of their respective properties and as is customary for
companies engaged in similar industries, and all such insurance is in full force
and effect.

                 (bb)     Each of Kaydon and the Subsidiaries is in compliance
in all material respects with all presently applicable provisions of the
Employee Retirement Income Security Act of 1974, as amended, including the
regulations and published interpretations thereunder ("ERISA"); no "reportable
event" (as defined in ERISA) has occurred with respect to any "pension plan" (as
defined in ERISA) for which Kaydon or any Subsidiary would have any liability;
Kaydon and the Subsidiaries have not incurred and do not expect to incur
liability under (i) Title IV of ERISA with respect to termination of, or
withdrawal from, any "pension plan" or (ii) Sections 412 or 4971 of the Internal
Revenue Code of 1986, as amended, including the regulations and published
interpretations thereunder (the "Code"); and each "pension plan" for which
Kaydon or any Subsidiary would have any liability that is intended to be
qualified under Section 401(a) of the Code is so qualified in all material
respects and nothing has occurred, whether by action or by failure to act, which
would cause the loss of such qualification.

                 (cc)     Neither Kaydon nor any of its Affiliates (as defined
in Rule 501(b) of Regulation D under the Act) has directly, or through any
agent, (i) sold, offered for sale, solicited offers to buy or otherwise
negotiated in respect of any "security" (as defined in the Act) which is or
could be integrated with the sale of the Notes in a manner that would require
the registration under the Act of the Notes or (ii) engaged in any form of
general solicitation or general advertising (as those terms are used in
Regulation D under the Act) in connection with the offering of the Notes or in
any manner involving a public offering within the meaning of Section 4(2) of the
Act.

                 (dd)     Assuming the accuracy of the representations and
warranties of the Initial Purchasers in Section 8 hereof, it is not necessary in
connection with the offer, sale and delivery of the Notes to the Initial
Purchasers in the manner contemplated by this Agreement to register any of the
Notes under the Act or to qualify the Indenture under the Trust Indenture Act.

                 (ee)     The Notes are not of the same class (within the
meaning of Rule 144A) as any class of Kaydon's securities which are listed on a
national securities exchange registered under Section 6 of the Exchange Act, or
quoted in a U.S. automated inter-dealer quotation system.

                 (ff)     Except as disclosed in the Memorandum or as
incorporated by reference in Kaydon's Annual Report on Form 10-K for the fiscal
year ended December 31, 2002, there are no business relationships or related
party transactions which would be required to be disclosed in a registration
statement under the Act by Item 404 of Regulation S-K of the Commission, and
each business relationship or related party transaction described in the
Memorandum is a fair and accurate description of the relationships and
transactions so described in all material respects.

                                       10

<PAGE>

                 (gg)     Except as described in or contemplated by the
Memorandum or in documents incorporated by reference therein, there are no
outstanding securities of Kaydon convertible or exchangeable into or evidencing
the right to purchase or subscribe for any shares of capital stock of Kaydon and
there are no outstanding or authorized options, warrants or rights of any
character obligating Kaydon to issue any shares of its capital stock or any
securities convertible or exchangeable into or evidencing the right to purchase
or subscribe for any shares of such stock.

                 (hh)     Kaydon is subject to and in compliance with the
reporting requirements of Section 13 or Section 15(d) of the Exchange Act and is
eligible to file a Registration Statement on Form S-3. Each document filed, or
to be filed prior to the closing of transactions contemplated by this Agreement,
by Kaydon pursuant to the Exchange Act and incorporated, or to be incorporated,
by reference in the Memorandum (or any amendment or supplement thereto) at the
time filed with the Commission conformed, or will conform, in all material
respects with the Exchange Act and the applicable rules and regulations
thereunder, and, when read together and with the other information in the
Memorandum and as such documents may be modified or superseded by the
Memorandum, did not and will not contain an untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under
which they were or are made, not misleading.

                 (ii)     The Notes satisfy the eligibility requirements of Rule
144A(d)(3) under the Act.

                 (jj)     To Kaydon's knowledge, there are no affiliations or
associations between any member of the NASD and any of Kaydon's officers,
directors or 5% or greater security holders, except as set forth or incorporated
by reference in the Memorandum.

                 (kk)     Except as set forth or incorporated by reference in
the Memorandum, there are no contracts, agreements or understandings between
Kaydon and any person that would give rise to a valid claim against Kaydon or
any Initial Purchaser for a brokerage commission, finder's fee or other like
payment.

        Any certificate signed by any officer of Kaydon and delivered to the
Initial Purchasers or to counsel for the Initial Purchasers shall be deemed a
representation and warranty by Kaydon to the Initial Purchasers as to the
matters covered thereby.

                 3.       Purchase, Sale and Delivery of the Notes.

                 (a)      On the basis of the representations, warranties,
agreements and covenants herein contained and subject to the terms and
conditions herein set forth, Kaydon agrees to issue and sell to each Initial
Purchaser, and each of the Initial Purchasers agrees severally but not jointly
to purchase from Kaydon, the aggregate principal amount of Firm Notes set forth
opposite such Initial Purchaser's name on Schedule I attached hereto, at a
purchase price of 97.0% of their principal amount. Each Note will be convertible
into shares of Common Stock at the conversion price set forth in the Notes (the
"Conversion Price"), which Conversion Price is subject to adjustment upon the
occurrence of certain events as provided in the Notes and the

                                       11
<PAGE>

Indenture. One or more global securities representing the Firm Notes shall be
registered by the Trustee in the name of the nominee of The Depository Trust
Company ("DTC"), Cede & Co., credited to the accounts of such of its
participants as the Initial Purchasers shall request, upon notice to Kaydon at
least 48 hours prior to the Closing Date (as defined below), with any transfer
taxes payable in connection with the transfer of the Notes to the Initial
Purchasers duly paid, and deposited with the Trustee as custodian for DTC on the
Closing Date, against payment by or on behalf of the Initial Purchasers to the
account of Kaydon of the aggregate purchase price therefor by wire transfer in
immediately available funds. Delivery of and payment for the Firm Notes shall be
made at the offices of Willkie Farr & Gallagher, 787 Seventh Avenue, New York,
NY 10019, at 9:30 A.M., New York City time, on May 23, 2003, or at such other
place, time or date not later than five business days (as defined below)
thereafter as the Initial Purchasers and Kaydon may agree upon. Such time and
date of delivery against payment are herein referred to as the "Closing Date."
As used herein, "business day" means a day on which The New York Stock Exchange
is open for trading and on which banks in New York are open for business and are
not permitted by law or executive order to be closed.

                 (b)      In addition, on the basis of the representations,
warranties, and covenants herein contained, and subject to the terms and
conditions herein set forth, Kaydon hereby grants an option, exercisable in
whole or from time to time, to the several Initial Purchasers to purchase the
Option Notes at a purchase price of 97.0% of the principal amount of the Option
Notes being purchased by the Initial Purchasers, plus accrued interest, if any,
from May 23, 2003 to the relevant Option Closing Date (as defined below). The
Option Notes may be purchased in whole or in part (on not more than three
occasions) (i) on the Closing Date or (ii) within 13 days after the Closing
Date, in either case by Deutsche Bank Securities Inc. delivering prior written
notice to Kaydon setting forth the aggregate principal amount of Option Notes as
to which the several Initial Purchasers are exercising the option and the time
and date for delivery of and payment for such Option Notes. The time and date
for delivery of and payment for such Option Notes shall be determined by the
Initial Purchasers but shall not be earlier than three nor later than 10 full
business days after delivery of notice of the Initial Purchasers' election to
exercise the option, nor in any event prior to the Closing Date or later than 13
days following the Closing Date (each such time and date being herein referred
to as an "Option Closing Date"). If a date of exercise of the option is two or
more days before the Closing Date, the notice of exercise shall set the Closing
Date as the Option Closing Date. The Initial Purchasers may cancel such option
at any time prior to its expiration by giving written notice of such
cancellation to Kaydon. The aggregate principal amount of Option Notes to be
purchased by each Initial Purchaser shall be in the same proportion to the total
aggregate principal amount of Option Notes being purchased as the aggregate
principal amount of Firm Notes being purchased by such Initial Purchaser bears
to $170,000,000 adjusted by the Initial Purchasers in such manner as to provide
denominations of principal amount of $1,000 or integral multiples thereof. To
the extent, if any, that the option is exercised, payment of the purchase price
for the Option Notes shall be made on the relevant Option Closing Date to the
account of Kaydon by wire transfer in immediately available funds.

                 4.       Offering by the Initial Purchasers.

                 (a)      It is understood that each of the Initial Purchasers
will offer and sell the Notes in accordance with this Section as soon as it
deems it advisable to do so. The Notes are to

                                       12

<PAGE>

be initially offered at the offering price set forth in the Memorandum. The
Initial Purchasers may from time to time thereafter change the price and other
selling terms.

                 (b)      Each Initial Purchaser severally represents and agrees
that neither it nor any person acting on its behalf has engaged or will engage
in any form of general solicitation or general advertising (as those terms are
used in Regulation D under the Act).

                 (c)      Each Initial Purchaser also severally represents and
agrees that it has not entered and will not enter into any contractual
arrangement with any distributor with respect to the distribution or delivery of
the Notes, except with its affiliates or with the prior written consent of
Kaydon.

                 5.       Covenants of Kaydon.  Kaydon covenants and agrees with
the Initial Purchasers that:

                 (a)      Kaydon will cooperate with the Initial Purchasers in
arranging for the qualification of the Notes for offering and sale under the
securities or "Blue Sky" laws of such jurisdictions as the Initial Purchasers
may designate and will continue such qualification in effect for as long as may
be necessary to complete the resale of the Notes by the Initial Purchasers;
provided, however, that in connection therewith Kaydon shall not be required to
qualify as a foreign corporation or to execute a general consent to service of
process in any jurisdiction.

                 (b)      If, at any time prior to the completion of the resale
of the Notes by the Initial Purchasers, any event occurs or information becomes
known as a result of which the Memorandum as then amended or supplemented would
include an untrue statement of a material fact, or omit to state a material fact
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, or if for any other reason it is
necessary at any time to amend or supplement the Memorandum in order to comply
with applicable law, Kaydon will promptly notify the Initial Purchasers thereof
and will prepare, at Kaydon's expense, an amendment or supplement to the
Memorandum that corrects such statement or omission or effects such compliance.

                 (c)      Kaydon will, as promptly as practicable, without
charge, provide to the Initial Purchasers and to counsel for the Initial
Purchasers as many copies of the Memorandum, any documents incorporated by
reference therein and any amendment or supplement thereto as the Initial
Purchasers may reasonably request.

                 (d)      Kaydon shall apply the net proceeds from the sale of
the Notes as set forth under "Use of Proceeds" in the Memorandum.

                 (e)      For so long as any Notes remain outstanding, Kaydon
will furnish to the Initial Purchasers copies of all reports and other
communications (financial or otherwise) furnished by Kaydon to the Trustee or
the holders of the Notes and, as soon as available, copies of any reports or
financial statements filed by Kaydon with the Commission or furnished to any
national securities exchange on which any class of securities of Kaydon may be
listed.

                 (f)      Neither Kaydon nor any of its Affiliates (as defined
in Rule 501(b) of Regulation D under the Act) will sell, offer for sale or
solicit offers to buy or otherwise negotiate

                                       13
<PAGE>

in respect of any "security" (as defined in the Act) that could be integrated
with the sale of the Notes in a manner that would require the registration under
the Act of the Notes.

                 (g)      Kaydon will furnish to the Initial Purchasers a copy
of each proposed amendment or supplement to the Memorandum, and not use any such
proposed amendment or supplement to which the Initial Purchasers reasonably
object in writing; after the date hereof and prior to the completion of the
distribution of the Notes by the Initial Purchasers (as determined by the
Initial Purchasers), Kaydon will not file any document under the Exchange Act
which is incorporated by reference in the Memorandum, in each case unless the
Initial Purchasers previously have been advised of, and furnished with a copy
within a reasonable period of time prior to, the proposed filing. Kaydon will
advise the Initial Purchasers of the time when any amendment or supplement to
the Memorandum has been made or when any document filed under the Exchange Act
which is incorporated by reference in the Memorandum has been filed with the
Commission and will provide evidence satisfactory to the Initial Purchasers of
each such amendment, supplement or filing.

                 (h)      No offering, sale, short sale or other disposition of
any shares of Common Stock or other securities convertible into or exchangeable
or exercisable for shares of Common Stock or derivative of Common Stock (or
agreement for such) will be made for a period of 90 days after the date of the
Offering Memorandum, directly or indirectly, by Kaydon otherwise than hereunder
or with the prior written consent of the Initial Purchasers. The foregoing
sentence shall not apply to the issuance by Kaydon of any shares of Common Stock
upon (i) the exercise of outstanding options or options issued pursuant to
Kaydon's existing stock option or other equity incentive plans, described or
incorporated by reference in the Memorandum or (ii) the conversion of the Notes.

                 (i)      Kaydon shall have caused each of its directors and
senior officers that owns securities of Kaydon to furnish to the Initial
Purchasers, on or prior to the date of this Agreement, a letter or letters, in
form and substance satisfactory to the Initial Purchasers, pursuant to which
each such person shall agree not to offer, sell, sell short or otherwise dispose
of any shares of Common Stock or other capital stock of Kaydon, or any other
securities convertible, exchangeable or exercisable for shares of Common Stock
or derivative of Common Stock owned by such person or request the registration
for the offer or sale of any of the foregoing (or as to which such person has
the right to direct the disposition of) for a period of 90 days after the date
of the Memorandum, directly or indirectly, except with the prior written consent
of the Initial Purchasers or except as permitted by the terms of such letter
("Lockup Agreements").

                 (j)      Kaydon will not, nor will it permit any of its
Affiliates (as defined in Rule 501(b) under the Act) to, during the two-year
period following the Closing Date, resell any Notes that have been acquired by
any of them.

                 (k)      Except as contemplated by the Registration Rights
Agreement, neither Kaydon, nor any of its respective Affiliates (as defined in
Rule 501(b) of Regulation D under the Act), nor any authorized person acting on
its or their behalf will, directly or indirectly, make offers or sales of any
security, or solicit offers to buy any security, under circumstances that

                                       14

<PAGE>

would require the registration of the Notes or the shares of Common Stock
issuable upon conversion thereof under the Act.

                 (l)      Neither Kaydon nor any of its respective Affiliates
(as defined in Rule 501(b) of Regulation D under the Act), nor any person acting
on its or their behalf will engage in any form of general solicitation or
general advertising (as those terms are used in Rule 502(c) under the Act) in
connection with any offer or sale of the Notes in the United States.

                 (m)      So long as any of the Notes or the shares of Common
Stock issuable upon conversion thereof are "restricted securities" within the
meaning of Rule 144(a)(3) under the Act, Kaydon will, during any period in which
it is not subject to and in compliance with Section 13 or 15(d) of the Exchange
Act, provide to each holder of such restricted securities and to each
prospective purchaser (as designated by such holder) of such restricted
securities, upon the request of such holder or prospective purchaser, any
information required to be provided by Rule 144A(d)(4) under the Act. This
covenant is intended to be for the benefit of the holders, and the prospective
purchasers designated by such holders, from time to time of such restricted
securities.

                 (n)      Kaydon will cooperate with the Initial Purchasers and
use all reasonable efforts to (i) permit the Notes to be eligible for clearance
and settlement through the facilities of DTC and such other clearance and
settlement systems that the Initial Purchasers may designate and (ii) arrange to
have the Notes be designated as PORTAL-eligible securities in accordance with
the rules and regulations of the NASD relating to the PORTAL Market.

                 (o)      Kaydon will use all reasonable efforts to cause the
shares of Common Stock issuable upon conversion of the Notes to be duly
authorized for listing by The New York Stock Exchange on or prior to the Closing
Date and ensure that the shares of Common Stock issuable upon conversion of the
Notes remain authorized for listing following the Closing Date.

                 (p)      Kaydon will not take, directly or indirectly, any
action designed to cause or result in, or that has constituted or could
reasonably be expected to constitute, the unlawful stabilization or manipulation
of the price of any securities of Kaydon.

                 (q)      For as long as any Notes remain outstanding, Kaydon
shall take such steps as shall be necessary to ensure that neither Kaydon nor
any subsidiary of Kaydon shall become an "investment company" within the meaning
of the Investment Company Act and the rules and regulations thereunder if
Kaydon's becoming an investment company would affect the ability of Kaydon to
perform any of its obligations with regard to the Notes or would affect any
holder's rights with regard to the Notes or restrict any holder's ability to
transfer the Notes.

                 6.       Expenses. Kaydon agrees to pay all costs and expenses
incident to the performance of its obligations under this Agreement, whether or
not the transactions contemplated herein are consummated or this Agreement is
terminated pursuant to Section 11 hereof, including all costs and expenses
incident to: (i) the printing, word processing or other production of documents
with respect to such transactions, including any costs of printing the
Memorandum and any amendments or supplements thereto, and any "Blue Sky"
memoranda, (ii) all arrangements relating to the delivery to the Initial
Purchasers of copies of the foregoing

                                       15

<PAGE>

documents, (iii) the fees and disbursements of the counsel, the accountants and
any other experts or advisors retained by Kaydon, (iv) the preparation
(including printing), issuance and delivery to the Initial Purchasers of the
Notes, (v) the qualification of the Notes under state securities and "Blue Sky"
laws, including filing fees and reasonable fees and disbursements of counsel for
the Initial Purchasers relating thereto, (vi) the expenses of Kaydon in
connection with any meetings with prospective investors in the Notes, (vii) the
fees and expenses of the Trustee, including fees and expenses of its counsel,
(viii) all expenses and listing fees incurred in connection with the application
for quotation of the Notes on the PORTAL Market, (ix) the listing fee of The New
York Stock Exchange and (x) any fees charged by investment rating agencies for
the rating of the Notes. If the issuance and sale of the Notes provided for
herein is not consummated because any condition to the obligation of the Initial
Purchasers set forth in Section 7 hereof is not satisfied (other than solely by
reason of a default by the Initial Purchasers of their obligations hereunder
after all conditions hereunder have been satisfied in accordance herewith),
because this Agreement is terminated pursuant to Sections 11(a)(i) and
11(a)(vii) hereof or because of any failure, refusal or inability on the part of
Kaydon to perform all obligations and satisfy all conditions on its part to be
performed or satisfied hereunder (other than solely by reason of a default by
the Initial Purchasers of their obligations hereunder after all conditions
hereunder have been satisfied in accordance herewith), Kaydon will promptly
reimburse the Initial Purchasers upon demand for reasonable out-of-pocket
expenses (including fees, disbursements and charges of Willkie Farr & Gallagher,
counsel for the Initial Purchasers) that shall have been incurred by the Initial
Purchasers in connection with the proposed purchase and sale of the Notes but
Kaydon shall not in any event be liable to any of the Initial Purchasers for
damages on account of loss of anticipated profits from the sale by them of the
Notes.

                 7.       Conditions of the Initial Purchasers' Obligations. The
several obligation of the Initial Purchasers to purchase the Firm Notes on the
Closing Date and any Option Notes on an Option Closing Date are subject to the
accuracy, as of the Closing Date or the relevant Option Closing Date, as the
case may be, of the representations and warranties of Kaydon contained herein,
and to the performance by Kaydon of its covenants and obligations hereunder and
to the following additional conditions (any of which may be waived in writing by
the Initial Purchasers):

                 (a)      On the Closing Date or the relevant Option Closing
Date, as the case may be, the Initial Purchasers shall have received the
opinion, dated as of the Closing Date or the relevant Option Closing Date, as
the case may be, and addressed to the Initial Purchasers (and stating that it
may be relied upon by counsel to the Initial Purchasers), of Dykema Gossett
PLLC, counsel for Kaydon, in form and substance satisfactory to counsel for the
Initial Purchasers, to the effect that:

                          (i)      Each of Kaydon and the Subsidiaries is duly
          organized, validly existing and, as to Kaydon and the Subsidiaries
          that are corporations, in good standing under the laws of its
          jurisdiction of organization, and has all requisite corporate or other
          power and authority to own, lease and operate its properties and to
          conduct its business as described in the Memorandum. Each of Kaydon
          and the Subsidiaries is duly qualified to do business and in good
          standing in each jurisdiction where the ownership or leasing of its
          properties or the conduct of its business requires such qualification,
          except to the

                                       16

<PAGE>

         extent that the failure to be so qualified or in good standing would
         not have a Material Adverse Effect on Kaydon and its Subsidiaries,
         taken as a whole.

                          (ii)     Kaydon has the authorized capital stock as
         set forth under "Capitalization" in the Memorandum; all of the
         outstanding shares of Common Stock are fully paid and non-assessable
         and were not issued in violation of any preemptive or similar rights
         or any federal or state securities laws; all of the outstanding shares
         of capital stock of the Subsidiaries are owned by Kaydon or another
         Subsidiary, to such counsel's knowledge, free and clear of all liens,
         encumbrances, equities and claims or restrictions on transferability
         (other than those imposed by the Act and the securities or "Blue Sky"
         laws of certain jurisdictions) or voting.

                          (iii)    To such counsel's knowledge, except as set
         forth in the Memorandum or in a document incorporated by reference into
         the Memorandum, (A) there are no outstanding options, warrants or other
         rights to purchase from Kaydon or any Subsidiary shares of capital
         stock or ownership interests in Kaydon or any Subsidiary, (B) there are
         no outstanding agreements or other obligations of Kaydon or any
         Subsidiary to issue, or other rights to cause Kaydon or any Subsidiary
         to convert, any obligation into, or exchange any securities for, shares
         of capital stock or ownership interests in Kaydon or any Subsidiary and
         (C) no holder of securities of Kaydon or Subsidiary (other than the
         Notes) is entitled to have such securities registered under a
         registration statement filed by Kaydon.

                          (iv)     Kaydon has all requisite corporate power and
         authority to execute, deliver and perform its obligations under the
         Notes, the Indenture and the Registration Rights Agreement.

                          (v)      The Indenture conforms in all material
         respects with the requirements of the Trust Indenture Act and the
         rules and regulations of the Commission applicable to an indenture
         that is qualified thereunder. The Indenture has been duly and validly
         authorized, executed and delivered by Kaydon, and (assuming the due
         authorization, execution and delivery of the Indenture by the Trustee)
         constitutes the valid and binding agreement of Kaydon, enforceable
         against Kaydon in accordance with its terms, except to the extent that
         the enforcement thereof may be affected by (A) bankruptcy, insolvency,
         reorganization, fraudulent conveyance, moratorium or other similar
         laws now or hereafter in effect relating to creditors' rights
         generally and (B) general principles of equity and the discretion of
         the court before which any proceeding therefor may be brought
         (regardless of whether such enforcement is considered in a proceeding
         in equity or at law).

                          (vi)     The Notes are in the form contemplated by the
         Indenture. The Notes have each been duly and validly authorized,
         executed and delivered by Kaydon and, when paid for by the Initial
         Purchasers in accordance with the terms of this Agreement (assuming
         the due authorization, execution and delivery of the Indenture by the
         Trustee and due authentication and delivery of the Notes by the
         Trustee in accordance with the Indenture), will constitute the valid
         and binding obligations of Kaydon, entitled to the benefits of the
         Indenture and the Registration Rights Agreement, and enforceable

                                       17

<PAGE>

         against Kaydon in accordance with their terms, except to the extent
         that the enforcement thereof may be affected by (A) bankruptcy,
         insolvency, reorganization, fraudulent conveyance, moratorium or other
         similar laws now or hereafter in effect relating to creditors' rights
         generally and (B) general principles of equity and the discretion of
         the court before which any proceeding therefor may be brought
         (regardless of whether such enforcement is considered in a proceeding
         in equity or at law).

                          (vii)    The Registration Rights Agreement has been
         duly and validly authorized, executed and delivered by Kaydon, and
         (assuming due authorization, execution and delivery thereof by the
         Initial Purchasers) constitutes the valid and binding agreement of
         Kaydon enforceable against Kaydon in accordance with its terms, except
         to the extent that (A) the enforcement thereof may be affected by (i)
         bankruptcy, insolvency, reorganization, fraudulent conveyance,
         moratorium or other similar laws now or hereafter in effect relating
         to creditors' rights generally and (ii) general principles of equity
         and the discretion of the court before which any proceeding therefor
         may be brought (regardless of whether such enforcement is considered
         in a proceeding in equity or at law) and (B) any rights to indemnity
         or contribution thereunder may be limited by federal and state
         securities laws and public policy considerations.

                          (viii)   Kaydon has all requisite corporate power and
         authority to execute, deliver and perform its obligations under this
         Agreement and to consummate the transactions contemplated hereby. This
         Agreement and the consummation by Kaydon of the transactions
         contemplated hereby have been duly and validly authorized by Kaydon.
         This Agreement has been duly executed and delivered by Kaydon.

                          (ix)     To such counsel's knowledge, there are (A) no
         legal or governmental proceedings pending or threatened to which Kaydon
         or any Subsidiary is a party or to which the property or assets of
         Kaydon or any Subsidiary is subject which would be required under the
         Act to be described in a registration statement or in a prospectus and
         are not described or incorporated by reference in the Memorandum, or
         which seek to restrain, enjoin, prevent the consummation of or
         otherwise challenge the issuance or sale of the Notes to be sold
         hereunder or the consummation of the other transactions described or
         incorporated by reference in the Memorandum and (B) no contracts,
         agreements or other documents to which Kaydon or any Subsidiary is a
         party which would be required under the Act to be described in a
         registration statement or prospectus and are not described in the
         Memorandum.

                          (x)      To such counsel's knowledge, neither Kaydon
         nor any Subsidiary is in violation of its certificate of incorporation
         or by-laws or other comparable organizational documents.

                          (xi)     The execution, delivery and performance of
         this Agreement, the Indenture and the Registration Rights Agreement,
         and the consummation of the transactions contemplated hereby and
         thereby (including, without limitation, the issuance and sale of the
         Notes to the Initial Purchasers) will not conflict with or constitute
         or result in a breach or a default or Repayment Event under (or an
         event which with notice or passage of time or both would constitute a
         default or Repayment Event under), or in the

                                       18

<PAGE>

         imposition or creation of (or the obligation to create or impose) a
         lien, charge or encumbrance on any property or assets of Kaydon or any
         Subsidiary with respect to, (i) the certificate of incorporation or
         by-laws or other comparable documents of Kaydon or any Subsidiary,
         (ii) except as would not be reasonably expected, individually or in
         the aggregate, to have a Material Adverse Effect on Kaydon and the
         Subsidiaries, taken as a whole, any statute, agreement or instrument
         to which Kaydon or any of the Subsidiaries is a party or by which any
         of them is bound or to which any of their properties is subject, or
         (iii) any order, rule, regulation or decree of any court or
         governmental agency or body having jurisdiction over Kaydon or any of
         the Subsidiaries or any of their properties.

                          (xii)    No consent, approval, authorization or order
         of any governmental authority is required for the issuance and sale by
         Kaydon of the Notes to the Initial Purchasers or the other
         transactions contemplated in this Agreement, except (A) as may be
         required under applicable securities laws in connection with the
         registration under the Act of the Notes, and the shares of Common
         Stock issuable upon conversion of the Notes, pursuant to the
         Registration Rights Agreement and (B) as may be required under state
         securities or "Blue Sky" laws (as to which such counsel need express
         no opinion).

                          (xiii)   Neither Kaydon nor any of the Subsidiaries
         is, or immediately after the sale of the Notes to be sold hereunder
         and the application of the proceeds from such sale (as described in
         the Memorandum under the caption "Use of Proceeds") will be, an
         "investment company" or "controlled" by an "investment company" as
         such terms are defined in the Investment Company Act, and the rules
         and regulations thereunder.

                          (xiv)    No registration under the Act of the Notes is
         required in connection with the sale of the Notes to the Initial
         Purchasers as contemplated by this Agreement and the Memorandum or in
         connection with the initial resale of the Notes by the Initial
         Purchasers in accordance with Section 8 of this Agreement, the
         Indenture is not required to be qualified under the Trust Indenture
         Act, in each case assuming (A) that the purchasers who buy such Notes
         in the initial resale thereof are QIBs or Accredited Investors, (B) the
         accuracy of the Initial Purchasers' representations in Section 8 and
         those of Kaydon contained in this Agreement regarding the absence of a
         general solicitation in connection with the sale of such Notes to the
         Initial Purchasers and the initial resale thereof and (C) the due
         performance by the Initial Purchasers of the agreements set forth in
         Section 8 hereof and the offering and transfer procedures set forth in
         the Memorandum.

                          (xv)     Neither the sale, issuance, execution or
         delivery of the Notes nor any other transaction contemplated by this
         Agreement will violate Regulation G, T, U or X of the Board of
         Governors of the Federal Reserve System.

                          (xvi)    The statements under the captions
         "Description of Notes," "Description of Capital Stock" and "Notice to
         Investors; Transfer Restrictions" in the Memorandum or incorporated
         therein by reference, insofar as such statements constitute a summary
         of the documents referred to therein or matters of law, provide a fair
         and accurate summary in all material respects of such documents and
         matters.

                                       19

<PAGE>

                          (xvii)   The shares of Common Stock initially issuable
         upon conversion of the Notes have been duly authorized and reserved for
         issuance upon conversion of the Notes by all necessary corporate action
         of Kaydon and when issued will be validly issued, fully paid and
         non-assessable; and no preemptive rights of stockholders exist with
         respect to any of the shares of Common Stock to be issued upon
         conversion of the Notes.

                          (xviii)  The statements under the caption "Certain
         U.S. Federal Income Tax Considerations" in the Memorandum, insofar as
         such statements constitute a summary of matters of U.S. federal tax
         laws referred to therein, provide a fair and accurate summary in all
         material respects of such matters under current law.

                 At the time the foregoing opinion is delivered, Dykema Gossett
PLLC shall additionally state that it has participated in conferences with
officers and other representatives of Kaydon, representatives of the independent
public accountants for Kaydon, representatives of the Initial Purchasers and
counsel for the Initial Purchasers, at which conferences the contents of the
Memorandum and related matters were discussed. Although it has not independently
verified and is not passing upon and assumes no responsibility for the accuracy,
completeness or fairness of the statements contained in the Memorandum (except
to the extent specified in subsection 7(a)(xvii) and 7(a)(xix)), nothing has
come to its attention that causes it to believe that the Memorandum, on the date
thereof or at the Closing Date or the relevant Option Closing Date, as the case
may be, contained or contains any untrue statement of a material fact or omitted
or omits to state a material fact required to be stated therein or necessary to
make the statements contained therein, in the light of the circumstances under
which they were made, not misleading (it being understood that such firm need
express no belief with respect to the financial statements and related notes
thereto and the other financial or statistical data included in, or incorporated
by reference into, the Memorandum).

                 In rendering its opinion, Dykema Gossett PLLC may state that
they express no opinion as to the laws of any jurisdiction other than the
federal laws of the United States and the laws of the States of New York and
Delaware.

                 (b)      The Initial Purchasers shall have received an opinion,
dated the Closing Date or the relevant Option Closing Date, as the case may be,
of Willkie Farr & Gallagher, counsel for the Initial Purchasers, with respect to
certain legal matters relating to this Agreement, and such other related matters
as the Initial Purchasers may reasonably require. In rendering such opinion,
Willkie Farr & Gallagher shall have received and may rely upon such certificates
and other documents and information as they may reasonably request to pass upon
such matters.

                 (c)      The Initial Purchasers shall have received from Ernst
& Young LLP, independent public accountants for Kaydon, comfort letters, dated
the date hereof, the Closing Date, and, if applicable, any Option Closing Date,
in form and substance reasonably satisfactory to the Initial Purchasers and
counsel for the Initial Purchasers.

                 (d)      The representations and warranties of Kaydon contained
in this Agreement shall be true and correct in all material respects on and as
of the Closing Date as if made on and as of the Closing Date or the relevant
Option Closing Date, as the case may be; Kaydon shall have performed in all
material respects all covenants and agreements and satisfied

                                       20

<PAGE>

all conditions on its part to be performed or satisfied hereunder at or prior to
the Closing Date or the relevant Option Closing Date, as the case may be; and,
except as set forth in the Memorandum (exclusive of any amendment or supplement
thereto after the date hereof) subsequent to the date of the most recent
financial statements in such Memorandum, there shall have been no event or
development that, individually or in the aggregate, has or would be reasonably
likely to have a Material Adverse Effect.

                 (e)      The issuance and sale of the Notes pursuant to this
Agreement shall not be enjoined (temporarily or permanently) and no restraining
order or other injunctive order shall have been issued or any action, suit or
proceeding shall have been commenced with respect to this Agreement before any
court or governmental authority.

                 (f)      The Initial Purchasers shall have received a
certificate, dated the Closing Date or the relevant Option Closing Date, as the
case may be, signed by Kaydon's chief executive officer and its treasurer to the
effect that:

                          (i)      The representations and warranties of Kaydon
         in this Agreement are true and correct in all material respects as if
         made on and as of the Closing Date or the relevant Option Closing
         Date, as the case may be, and Kaydon has performed in all material
         respects all covenants and agreements and satisfied all conditions on
         its part to be performed or satisfied hereunder at or prior to the
         Closing Date;

                          (ii)     At the Closing Date or the relevant Option
         Closing Date, as the case may be, since the date hereof or since the
         date of the most recent financial statements in, or incorporated by
         reference in, the Memorandum (exclusive of any amendment or supplement
         thereto after the date hereof), no event or events have occurred, no
         information has become known nor does any condition exist that,
         individually or in the aggregate, would have a Material Adverse Effect;

                          (iii)    Such officer has carefully examined the
         Memorandum; in such officer's opinion and to the best of such officer's
         knowledge, neither the Memorandum nor any amendment or supplement
         thereto includes any untrue statement of a material fact or omits to
         state any material fact required to be stated therein or necessary to
         make the statements therein, in light of the circumstances under which
         they were made, not misleading;

                          (iv)     Since the date hereof or since the date of
         which information is given in the Memorandum, except as described in
         or contemplated by the Memorandum, neither Kaydon nor any of the
         Subsidiaries has incurred any liabilities or obligations direct or
         contingent (other than in the ordinary course of business) that are
         material to Kaydon and the Subsidiaries taken as a whole or entered
         into any transactions not in the ordinary course of business that are
         material to the business, condition (financial or other) or results of
         operations or prospects of Kaydon and the Subsidiaries, taken as a
         whole, and there has not been any change in the capital stock or
         long-term indebtedness of Kaydon or any of the Subsidiaries that is
         material to the business, condition (financial or other) or results of
         operations or prospects of Kaydon and the Subsidiaries at and as of

                                       21

<PAGE>

         the Closing Date or the relevant Option Closing Date, as the case may
         be, taken as a whole; and

                          (v)      The sale of the Notes hereunder has not been
         enjoined (temporarily or permanently).

                 (g)      On the Closing Date, the Initial Purchasers shall have
received the Registration Rights Agreement executed by Kaydon and such agreement
shall be in full force and effect at all times from and after the Closing Date.

                 (h)      The Indenture shall have been duly executed and
delivered by Kaydon and the Trustee, and the Notes shall have been duly executed
by Kaydon, and the Notes shall have been duly authenticated by the Trustee.

                 (i)      On or before the Closing Date, the Initial Purchasers
and counsel for the Initial Purchasers shall have received such further
documents, certificates and schedules or instruments relating to the business,
corporate, legal and financial affairs of Kaydon as they shall have heretofore
reasonably requested from Kaydon.

                 (j)      The shares of Common Stock issuable upon conversion
of the Notes shall have been duly listed, subject to notice of issuance, on The
New York Stock Exchange and the Notes shall have been designated as
PORTAL-eligible securities.

                 (k)      The Lockup Agreements described in Section 5(j) shall
be in full force and effect.

                 All such documents, opinions, certificates and schedules or
instruments delivered pursuant to this Agreement will comply with the provisions
hereof only if they are reasonably satisfactory in all material respects to the
Initial Purchasers and counsel for the Initial Purchasers. Kaydon shall furnish
to the Initial Purchasers such conformed copies of such documents, opinions,
certificates and schedules or instruments in such quantities as the Initial
Purchasers shall reasonably request.

                 8.       Offering of Notes, Restrictions on Transfer. Each of
the Initial Purchasers, severally and not jointly, agrees with Kaydon that (i)
it has not and will not solicit offers for, or offer or sell, the Notes by any
form of general solicitation or general advertising (as those terms are used in
Regulation D under the Act) or in any manner involving a public offering within
the meaning of Section 4(2) of the Act; and (ii) it has and will solicit offers
for the Notes only from, and will offer and sell the Notes only to in the case
of offers inside the United States, persons whom the Initial Purchasers
reasonably believe to be QIBs or, if any such person is buying for one or more
institutional accounts for which such person is acting as fiduciary or agent,
only when such person has represented to the Initial Purchasers or the Initial
Purchasers reasonably believe, that each such account is a QIB, to whom notice
has been given that such sale or delivery is being made in reliance on Rule
144A, and, in each case, in transactions under Rule 144A.

                 9.       Indemnification and Contribution.

                                       22

<PAGE>

                 (a)      Kaydon will indemnify and hold harmless each Initial
Purchaser, its affiliates, partners, directors, officers, agents,
representatives and employees, and each person, if any, who controls such
Purchaser within the meaning of Section 15 of the Act and Section 20 of the
Exchange Act, against any losses, claims, damages or liabilities, joint or
several, to which such Initial Purchaser or any such affiliate, partner,
director, officer, agent, representative, employee or controlling person may
become subject under the Act, the Exchange Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon any untrue statement or alleged untrue statement of any
material fact contained or incorporated by reference in: (i) the Memorandum, or
any amendment or supplement thereto, or (ii) any application or other document,
or any amendment or supplement thereto, executed by Kaydon or based upon written
information furnished by or on behalf of Kaydon filed in any jurisdiction in
order to qualify the Notes under the securities or "Blue Sky" laws thereof or
filed with any securities association or securities exchange (each, an
"Application"); or arise out of or are based upon the omission or alleged
omission to state therein a material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading, including any losses, claims, damages or liabilities arising out
of or based upon Kaydon's failure to perform its obligations under Section 5(b)
of this Agreement, and will reimburse each Initial Purchaser and each such
affiliate, partner, director, officer, agent, representative, employee and
controlling person for any legal or other expenses reasonably incurred by such
Initial Purchaser, such affiliate, partner, director, officer, agent,
representative, employee and controlling person in connection with investigating
or defending appearing as a third party witness in connection with any such
loss, claim, damage, liability or action as such expenses are incurred;
provided, however, that Kaydon will not be liable in any such case to the extent
that any such loss, claim, damage or liability arises out of or is based upon an
untrue statement or alleged untrue statement in or omission or alleged omission
from any of such documents in reliance upon and in conformity with written
information concerning the Initial Purchasers or their resale of the Notes
furnished to Kaydon by such Initial Purchaser specifically for use therein, it
being understood and agreed that the only such information consists of the
information described as such in subsection (b) below.

                 (b)      Each Initial Purchaser will, severally and not
jointly, indemnify and hold harmless Kaydon, its affiliates, directors,
officers, agents, representatives and employees and each person, if any, who
controls Kaydon within the meaning of Section 15 of the Act and Section 20 of
the Exchange Act, against any losses, claims, damages or liabilities to which
Kaydon or any such affiliate, director, officer, agent, representative, employee
or controlling person may become subject under the Act or the Exchange Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in the Memorandum, or any
amendment or supplement thereto, or arise out of or are based upon the omission
or the alleged omission to state therein a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading, in each case to the extent, but only to the extent,
that such untrue statement or alleged untrue statement or omission or alleged
omission was made in reliance upon and in conformity with written information
concerning the Initial Purchasers furnished to Kaydon by such Initial Purchaser
specifically for use therein, and, subject to the limitation set forth
immediately preceding this clause, will reimburse, any legal or other expenses
reasonably incurred by Kaydon or any such affiliate, director, officer, agent,
representative, employee or

                                     23

<PAGE>

controlling person in connection with investigating or defending any such loss,
claim, damage, liability or action as such expenses are incurred; it being
understood and agreed that the only such information furnished by any Initial
Purchaser consists of the following information in the Memorandum furnished on
behalf of each Initial Purchaser: the first sentence of the second paragraph and
the eighth and ninth paragraphs under the caption "Plan of Distribution";
provided, however, that the Initial Purchasers shall not be liable for any
losses, claims, damages or liabilities arising out of or based upon Kaydon's
failure to perform its obligations under Section 5(b) of this Agreement.

                 (c)      Promptly after receipt by an indemnified party under
this Section of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against the indemnifying party
under subsection (a) or (b) above, notify the indemnifying party of the
commencement thereof; but the failure to so notify the indemnifying party of
substantial rights and defenses shall not relieve it from any liability that it
may have under subsection (a) or (b) above except to the extent that it has been
materially prejudiced (through the forfeiture of substantive rights or defenses)
by such failure; and provided further that the failure to so notify the
indemnifying party shall not relieve it from any liability that it may have to
an indemnified party otherwise than under subsection (a) or (b) above. In case
any such action is brought against any indemnified party and it notifies the
indemnifying party of the commencement thereof, the indemnifying party will be
entitled to participate therein and, to the extent that it may wish, jointly
with any other indemnifying party similarly notified, to assume the defense
thereof, with counsel reasonably satisfactory to such indemnified party (who
shall not, except with the consent of the indemnified party, be counsel to the
indemnifying party), and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the
indemnifying party will not be liable to such indemnified party under this
Section for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable
costs of investigation. No indemnifying party shall, without the prior written
consent of the indemnified party (which consent shall not be unreasonably
withheld), effect any settlement of any pending or threatened action in respect
of which any indemnified party is or could have been a party and indemnity could
have been sought hereunder by such indemnified party unless such settlement
includes (i) an unconditional release of such indemnified party from all
liability on any claims that are the subject matter of such action and (ii) does
not include a statement as to or an admission of fault or failure to act by or
on behalf of any indemnified party.

                 (d)      If the indemnification provided for in this Section
is unavailable or insufficient to hold harmless an indemnified party under
subsection (a) or (b) above, then each indemnifying party shall contribute to
the amount paid or payable by such indemnified party as a result of the losses,
claims, damages or liabilities referred to in subsection (a) or (b) above (i) in
such proportion as is appropriate to reflect the relative benefits received by
Kaydon on the one hand and the Initial Purchasers on the other from the offering
of the Notes or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) above but also the relative
fault of Kaydon on the one hand and the Initial Purchasers on the other in
connection with the statements or omissions which resulted in such losses,
claims, damages or liabilities as well as any other relevant equitable
considerations. The relative benefits received by Kaydon on the one hand and the
Initial Purchasers on the other shall be deemed to be in the same proportion

                                       24

<PAGE>

as the total net proceeds from the offering (before deducting expenses) received
by Kaydon bear to the total discounts and commissions received by the Initial
Purchasers from Kaydon under this Agreement. The relative fault shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by Kaydon or the Initial
Purchasers and the parties' relative intent, knowledge, access to information
and opportunity to correct or prevent such untrue statement or omission. The
amount paid by an indemnified party as a result of the losses, claims, damages
or liabilities referred to in the first sentence of this subsection (d) shall be
deemed to include any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any action or
claim which is the subject of this subsection (d). Notwithstanding the
provisions of this subsection (d), no Initial Purchaser shall be required to
contribute any amount in excess of the amount by which the total price at which
the Notes purchased by it were resold exceeds the amount of any damages which
such Initial Purchaser has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission. The Initial
Purchasers' obligations in this subsection (d) to contribute are several in
proportion to their respective purchase obligations and not joint.

                 (e)      The obligations of Kaydon under this Section shall be
in addition to any liability which Kaydon may otherwise have and shall extend,
upon the same terms and conditions, to each person, if any, who controls any
Initial Purchaser within the meaning of the Act or the Exchange Act; and the
obligations of the Initial Purchasers under this Section shall be in addition to
any liability which the respective Initial Purchasers may otherwise have and
shall extend, upon the same terms and conditions, to each person, if any, who
controls Kaydon within the meaning of the Act or the Exchange Act.

                 10.      Survival Clause. The respective representations,
warranties, agreements, covenants, indemnities and other statements of Kaydon,
its officers or directors and the Initial Purchasers set forth in this Agreement
or made by or on behalf of them, respectively, pursuant to this Agreement shall
remain in full force and effect, regardless of (i) any investigation made by or
on behalf of Kaydon, any of its officers or directors, the Initial Purchasers or
any controlling person referred to in Section 9 hereof and (ii) delivery of and
payment for the Notes. The respective agreements, covenants, indemnities and
other statements set forth in Sections 6, 9 and 14 hereof shall remain in full
force and effect, regardless of any termination or cancellation of this
Agreement.

                 11.      Termination.

                 (a)      This Agreement may be terminated in the sole
discretion of DBS by notice to Kaydon given prior to the Closing Date or any
Option Closing Date (if different from the Closing Date and then only to the
Option Notes to be purchased on such Option Closing Date) in the event that
Kaydon shall have failed, refused or been unable to perform all obligations and
satisfy all conditions on its part to be performed or satisfied hereunder at or
prior thereto or, if after the date of this Agreement and at or prior to the
Closing Date or the relevant Option Closing Date, as the case may be:

                          (i)      either (A) Kaydon or any of the Subsidiaries
         shall have sustained any loss or interference with respect to its
         businesses or properties from fire, flood,

                                       25

<PAGE>

         hurricane, accident or other calamity, whether or not covered by
         insurance, or from any strike, labor dispute, slow down or work
         stoppage or any legal or governmental proceeding, which loss or
         interference, in the reasonable judgment of DBS, individually or in
         the aggregate, has had or has a Material Adverse Effect, (B) there
         shall have been any change, or any development or event involving a
         prospective change, in the condition (financial or other), business,
         properties or results of operations of Kaydon and the Subsidiaries
         taken as one enterprise which, in the reasonable judgment of DBS, is
         material and adverse and makes it impractical or inadvisable to
         proceed with completion of the offering or the delivery of the Notes
         as contemplated by the Memorandum or to enforce contracts for the sale
         of the Notes, or (C) any downgrading in the rating of any debt
         securities of Kaydon by any "nationally recognized statistical rating
         organization" (as defined for purposes of Rule 436(g) under the Act),
         or any public announcement that any such organization has under
         surveillance or review its rating of any debt securities of Kaydon
         (other than an announcement with positive implications of a possible
         upgrading, and no implication of a possible downgrading, of such
         rating) or any announcement that Kaydon has been placed on negative
         outlook;

                          (ii)     trading in securities generally on The New
         York Stock Exchange, the American Stock Exchange or the Nasdaq National
         Market shall have been suspended, limited or maximum or minimum prices
         shall have been established on any such exchange or market;

                          (iii)    a banking moratorium shall have been declared
         by New York or United States authorities;

                          (iv)     there shall have been (A) any attack on,
         outbreak or escalation of hostilities or act of terrorism involving the
         United States, (B) any declaration of war, an outbreak or escalation of
         any other insurrection or armed conflict involving the United States or
         any other national or international calamity, crisis or emergency or
         (C) any change in the political or economic conditions or any material
         change in the financial markets of the United States or currency
         exchange rate or exchange controls as would, in the case of (A), (B) or
         (C) above and in the reasonable judgment of DBS, make it impractical or
         inadvisable to proceed with the completion of the offering or the
         delivery of the Notes as contemplated by the Memorandum or to enforce
         contracts for the sale of the Notes;

                          (v)      the enactment, publication, decree or other
         promulgation of any statute, regulation, rule or order of any court or
         other governmental authority which in DBS's reasonable opinion
         materially and adversely affects or may materially and adversely
         affect, individually or in the aggregate, the business or operations of
         Kaydon;

                          (vi)     the occurrence of a material disruption in
         securities settlement, payment or clearance services in the United
         States shall have occurred;

                          (vii)    the suspension or limitation of trading of
         the Common Stock by The New York Stock Exchange, the Commission or any
         other governmental authority; or

                                       26
<PAGE>

                          (viii)   the taking of any action by any governmental
         body or agency in respect of its monetary or fiscal affairs which in
         DBS's reasonable opinion has a material adverse effect on the
         securities markets in the United States and would make it impractical
         or inadvisable to market the Notes or to enforce contracts for the sale
         of the Notes.

                 Termination of this Agreement pursuant to this Section 11(a)
shall be without liability of any party to any other party except as provided in
Section 9 hereof.

                 12.      Notices.  All communications hereunder shall be in
writing and, if sent to the Initial Purchasers, shall be mailed or delivered or
telecopied and confirmed in writing to:

                 Deutsche Bank Securities Inc.
                 31 West 52nd Street
                 New York, New York 10019
                 Attention:  Corporate Finance Department

                 with a copy to:

                 Willkie Farr & Gallagher
                 787 Seventh Avenue
                 New York, New York  10019
                 Attention:  Jeffrey R. Poss, Esq.

                 and if sent to Kaydon, shall be mailed, delivered or
                 telecopied and confirmed in writing to Kaydon at:

                 Suite 300, 315 East Eisenhower Parkway
                 Ann Arbor, Michigan  48108
                 Attention:  President

                 with a copy to:

                 Dykema Gossett PLLC
                 400 Renaissance Center
                 Detroit, Michigan  48243
                 Attention:  Paul Rentenbach, Esq.

                 13.      Successors. This Agreement shall inure to the benefit
of and be binding upon the Initial Purchasers, Kaydon and their respective
successors, assigns and legal representatives, and nothing expressed or
mentioned in this Agreement is intended or shall be construed to give any other
person any legal or equitable right, remedy or claim under or in respect of this
Agreement, or any provisions herein contained; this Agreement and all conditions
and provisions hereof being intended to be and being for the sole and exclusive
benefit of the Initial Purchasers, Kaydon and their respective successors,
assigns and legal representatives and for the benefit of no other person except
that (i) the indemnities of Kaydon contained in Section 9 of this Agreement
shall also be for the benefit of the affiliates, directors, officers, agents,
representatives and employees of the Initial Purchasers and any person or
persons who control

                                       27

<PAGE>

the Initial Purchasers within the meaning of Section 15 of the Act or Section 20
of the Exchange Act and (ii) the indemnities of the Initial Purchasers contained
in Section 9 of this Agreement shall also be for the benefit of the affiliates,
directors, officers, agents, representatives and employees of Kaydon and any
person or persons who control Kaydon within the meaning of Section 15 of the Act
or Section 20 of the Exchange Act. No purchaser of any of the Notes from the
Initial Purchasers will be deemed a successor because of such purchase.

                 14.      APPLICABLE LAW. THE VALIDITY AND INTERPRETATION OF
THIS AGREEMENT, AND THE TERMS AND CONDITIONS SET FORTH HEREIN SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
GIVING EFFECT TO ANY PROVISIONS RELATING TO CONFLICTS OF LAW.

                            [Signature page follows]

                                       28
<PAGE>

                 15.      Counterparts. This Agreement may be executed in two
or more counterparts, including via facsimile, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument. If the foregoing correctly sets forth our understanding, please
indicate your acceptance thereof in the space provided below for that purpose,
whereupon this letter shall constitute a binding agreement among Kaydon and the
Initial Purchasers.

                              Very truly yours,

                              KAYDON CORPORATION

                              By: /S/ BRIAN P. CAMPBELL
                                   Name:  Brian P. Campbell
                                   Title:  President and Chief Executive Officer

The foregoing Agreement is hereby confirmed
and accepted as of the date first above written.

DEUTSCHE BANK SECURITIES INC.

By: /S/ RICHARD W. THALER, SR.
     Name: Richard W. Thaler, Sr.
     Title:  Managing Director

By: /S/ PAUL FREIPORT
     Name: Paul Freiport
     Title: Director

BANC ONE CAPITAL MARKETS, INC.

By: /S/ J.D. CRONIN, JR.
     Name: J.D. Cronin, Jr.
     Title: Managing Director

SUNTRUST CAPITAL MARKETS, INC.

By: /S/ CHARLES W. MILLS
     Name: Charles W. Mills
     Title: Director

                                       29

<PAGE>

                                                                    SCHEDULE I

                         Schedule of Initial Purchasers
                         ------------------------------

                                                 Principal Amount of Firm
Initial Purchaser                                Notes to be Purchased
-----------------                                ---------------------

Deutsche Bank Securities Inc.                    $144,500,000

Banc One Capital Markets, Inc.                   $ 17,000,000

SunTrust Capital Markets, Inc.                   $  8,500,000
                                          ---------------------------------
      Total                                      $170,000,000
                                          =================================

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}]]