Document:

First Amendment Agreement as of February 1, 2005 to the Credit Agreement

 Exhibit 10.10 
  
 FIRST AMENDMENT AGREEMENT 
  
 Dated as of February 1, 2005 
  
 among 
  
 LYDALL, INC. 
  
 LYDALL DEUTSCHLAND HOLDING GMBH 
  
 The LENDERS Party
Hereto 
  
 JPMORGAN CHASE BANK, N.A., 
 as Administrative Agent 
  
 and 
  
 THE BANK OF NEW YORK, 
 as Documentation Agent 

 FIRST AMENDMENT AGREEMENT, dated as of February 1, 2005, among LYDALL, INC., a Delaware corporation (the
“Borrower”), LYDALL DEUTSCHLAND HOLDING GMBH, a German corporation (the “Subsidiary Borrower”), the LENDERS party hereto, JPMORGAN CHASE BANK, N.A. (formerly known as JPMorgan Chase Bank), as Administrative Agent, and THE BANK OF
NEW YORK, as Documentation Agent. 
  
 WHEREAS, the Borrower, the
Subsidiary Borrower, the Lenders, the Administrative Agent and Fleet National Bank, as Documentation Agent, have entered into that certain Credit Agreement dated as of July 14, 1999 (as amended and restated as of May 13, 2002, as amended and
restated as of August 29, 2003, as amended as of July 27, 2004 and as in effect prior to the effectiveness of this Agreement, the “Existing Credit Agreement,” and, as amended by this Agreement, the “Amended Credit Agreement”),
pursuant to which the Lenders have agreed, subject to the terms and conditions therein set forth, to make or participate in Loans to, and to issue or participate in Letters of Credit for the account of, the Borrower and the Subsidiary Borrower;

  
 WHEREAS, the Borrower, the Subsidiary Borrower, the Lenders,
the Administrative Agent and the Documentation Agent have agreed to enter into this Agreement to provide for, among other things, the extension of the Revolving Credit Termination Date and the modification of certain covenants and definitions; and

  
 WHEREAS, the Loan Documents (including, without limitation,
this Agreement and the Amended Credit Agreement), as amended and supplemented by this Agreement and as each may be amended or supplemented from time to time, are referred to herein as the “Amended Loan Documents”; 
  
 NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows: 
  
 ARTICLE I. 
  
 Amendments to Existing Credit
Agreement. 
  
 Each of the Borrower and the Subsidiary
Borrower and, subject to the satisfaction of the conditions set forth in Article III, the Lenders hereby consent and agree to the amendments to the Existing Credit Agreement set forth below: 
  
 (a) The “Commitment Fee Rate” established in the definition of
“Applicable Rate” contained in Section 1.01 of the Existing Credit Agreement is hereby amended and restated as follows: (i) for Category 1, the “Commitment Fee Rate” shall be equal to .375%, (ii) for Category 2, the
“Commitment Fee Rate” shall be equal to .325%, (iii) for Category 3, the “Commitment Fee Rate” shall be equal to .275% and (iv) for Category 4, the “Commitment Fee Rate” shall be equal to .225%. 
  
 (b) The definition of “Consolidated EBITDA” contained in Section
1.01 of the Existing Credit Agreement is hereby amended to insert “, plus (f) the aggregate amount of 

 
legal and due diligence expenses arising from litigation with or claims by Walter A. Ruschmeyer not to exceed $1,919,000 for the fiscal period ending
December 31, 2004, $1,877,000 for the fiscal period ending March 31, 2005, $749,000 for the fiscal period ending June 30, 2005, $81,000 for the fiscal period ending September 30, 2005 and $0 thereafter, plus (g) the aggregate amount of non-cash
stock option expense” at the end of clause (e). 
  
 (c) The
definition of “Documentation Agent” contained in Section 1.01 of the Existing Credit Agreement is hereby amended to substitute “The Bank of New York” in place of “Fleet National Bank”. 
  
 (d) The definition of “Indebtedness” contained in Section 1.01 of
the Existing Credit Agreement is hereby amended to insert “Solely for purposes of determining the Leverage Ratio, the amount of obligations of a Consolidated Entity in respect of a Hedging Agreement shall be deemed to be 20% of the notional
amount of such Hedging Agreement.” at the end of such definition. 
  
 (e) The definition of “Revolving Credit Maturity Date” contained in Section 1.01 of the Existing Credit Agreement is hereby amended to substitute “February 1, 2009” in place of “September 30, 2005”. 

 
 (f) The definition of “Swingline Lender” contained in Section
1.01 of the Existing Credit Agreement is hereby amended to delete “or Fleet National Bank, as the case may be, “. 
  
 (g) Section 6.02(e) of the Existing Credit Agreement is hereby amended to substitute “any real property or capital asset” in place of “any
property or asset”. 
  
 (h) Section 6.06(a)(iii) of the
Existing Credit Agreement is hereby amended (i) to substitute “(A) $1,000,000” in place of “$8,000,000” and (ii) to insert “or (B) if the Leverage Ratio did not exceed 1.50 to 1.00 as of the end of the preceding fiscal
quarter (as reported in the Borrower’s compliance certificate delivered under Section 6.01(d)), $1,800,000 during any fiscal quarter; provided that the aggregate amount of Restricted Payments permitted under this clause (B) shall in no event
exceed $5,000,000 during any fiscal year of the Borrower” immediately prior to the end thereof. 
  
 (i) Section 6.13 of the Existing Credit Agreement is hereby amended to substitute “2.75 to 1.00” in place of “2.50 to 1.00”.

  
 (j) Section 6.16 of the Existing Credit Agreement is hereby
amended and restated to read as follows: 
  
 Section 6.16. Minimum EBITDA. The Borrower will not permit Consolidated EBITDA as determined as of the end of each fiscal quarter of the Borrower to be less than (a) for the fiscal quarters ended June 30, 2004, September 30, 2004,
December 31, 2004, March 31, 2005 and June 30, 2005, $18,000,000, (b) for the fiscal quarter ending September 30, 2005, $22,000,000, (c) for the fiscal quarter ending December 31, 2005, 

  

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$22,500,000, (d) for the fiscal quarter ending March 31, 2006, $23,000,000, (e) for the fiscal quarter ending June 30, 2006, $23,500,000, (f) for the fiscal
quarter ending September 30, 2006, $24,000,000, (g) for the fiscal quarter ending December 31, 2006, $24,500,000 and (h) thereafter, $25,000,000. 
  
 (k) Section 10.01 of the Existing Credit Agreement is hereby amended to (i) insert “and” at the end of paragraph (d), (ii) to delete paragraph
(e) and (iii) to substitute “(e)” in place of “(f)”. 
  
 (l) The Schedules to the Existing Credit Agreement are hereby amended and restated as set forth on the Schedules hereto. 
  
 ARTICLE II. 
  
 Representations and Warranties 
  
 The Borrower hereby represents and warrants that as of the Effective Date (as defined in Article III): 
  
 Section 2.01. Existing Representations and Warranties. Each of the
representations and warranties contained in Article III of the Existing Credit Agreement and in each of the other Loan Documents is true and correct, except that (a) any representation or warranty limited by its terms to a specific date shall be
true and correct as of such specific date and (b) the Borrower hereby discloses that (i) the U.S. Food and Drug Administration conducted a full scope directed audit at CML Medical, Ltd., (ii) CML Medical, Ltd. was unable to provide adequate
documentation relating to one of its EtO sterilization validations affecting a portion of its blood products and (iii) CML Medical, Ltd. has recalled such products, all as more fully described in the Memorandum dated January 31, 2005 from Thomas
Smith to the Lenders (the “CML Recall”), which shall constitute a “Disclosed Matter” for purposes of the Existing Credit Agreement. 
  
 Section 2.02. No Defaults. After giving effect to the amendments set forth in Article I and the disclosure of the CML Recall, no event has occurred
and no condition exists which would constitute a Default or an Event of Default under the Existing Credit Agreement, and no event has occurred and no condition exists (including financial performance during the fiscal quarter ending December 31,
2004) which would constitute a Default or an Event of Default under the Amended Credit Agreement. 
  
 Section 2.03. Power and Authority; No Conflicts. The execution, delivery and performance by each of the Loan Parties of the Amended Loan Documents
to which it is a party are within such party’s corporate, partnership or limited liability company powers and have been duly authorized by all necessary corporate, partnership or limited liability company and, if required, stockholder, partner
or member action. Each Amended Loan Document to which any Loan Party is a party has been duly executed and delivered by such party and constitutes a legal, valid and binding obligation of such party, enforceable in accordance with its terms, subject
to 

  

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applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of
equity, regardless of whether considered in a proceeding in equity or at law. 
  
 Section 2.04. Governmental Approvals; No Conflicts. The execution, delivery and performance by each of the Loan Parties of the Amended Loan Documents to which it is a party (a) do not require the Borrower or
any Subsidiary to obtain or make any consent or approval of, registration or filing with, or other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect or that could not reasonably be
expected, individually or in the aggregate, to result in a Material Adverse Effect, (b) will not violate any law or regulation applicable to the Borrower or any Subsidiary, or the charter, by-laws or other organizational documents of any Loan Party,
or any Subsidiary, or any order of any Governmental Authority, except as to any law, regulation or order the violation of which could not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect, (c) will not
violate or result in a default under any indenture, agreement or other instrument binding upon the Borrower or any Significant Subsidiary or their respective assets, or give rise to a right thereunder to require any payment to be made by the
Borrower or any Significant Subsidiary, except for any such violations, defaults or rights to require payment that could not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect, and (d) will not result in
the creation or imposition of any Lien (other than a Permitted Encumbrance) on any asset of the Borrower or any of its Subsidiaries. 
  
 Section 2.05. Financial Condition; No Material Adverse Change. (a) The Borrower has heretofore furnished to the Lenders the consolidated and
consolidating balance sheets of the Borrower and its consolidated Subsidiaries and the related statements of income, stockholders equity and cash flows (i) as of and for the fiscal years ended December 31, 2001, December 31, 2002 and December 31,
2003, such consolidated financial statements being reported on by PricewaterhouseCoopers, LLP, independent public accountants, and (ii) as of and for the fiscal quarter and the portion of the fiscal year ended September 30, 2004. Such financial
statements present fairly, in all material respects, the financial condition and results of operations and cash flows of the Borrower and its consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to
year-end audit adjustments and the absence of footnotes in the case of the statements referred to in clause (ii) above. 
  
 (b) Since September 30, 2004, there has been no material adverse change in the business, assets, operations, prospects or condition, financial or
otherwise, of the Borrower and the Subsidiaries, taken as a whole (other than the CML Recall). 
  

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 ARTICLE III. 
  
 Conditions Precedent 
  

The effectiveness of this Agreement is subject to the condition precedent that the Administrative Agent, the Documentation Agent and the Lenders shall
have received on or before February 1, 2005 (the “Effective Date”) each of the following, in form and substance satisfactory to the Administrative Agent, the Documentation Agent and the Lenders: 
  
 (a) counterparts of this Agreement executed by each of the Borrower, the
Subsidiary Borrower, all of the Lenders, the Administrative Agent and the Documentation Agent; 
  
 (b) evidence that each of the Guarantors shall have reaffirmed its obligations under the Guarantee Agreement to which it is a party; 
  
 (c) evidence that the Loan Parties shall have taken all actions requested by the Administrative Agent to ensure a legal,
valid and enforceable perfected first-priority Lien on the Collateral; 
  
 (d) favorable written opinions (addressed to the Administrative Agent and the Lenders and dated the Effective Date) of Mary A. Tremblay and Linklaters, Oppenhoff & Radler, substantially in the form of Exhibit A-1 and Exhibit A-2,
respectively; the Borrower and the Subsidiary Borrower hereby request such counsel to deliver such opinion; 
  
 (e) such documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization, existence and good
standing of the Loan Parties and the authorization of the Transactions by the Loan Parties; 
  
 (f) a certificate, dated the Effective Date and signed by the President, a Vice President, General Counsel and Secretary or a Financial Officer of the Borrower, confirming compliance with the conditions set forth in
Article III and in paragraphs (a) and (b) of Section 4.02 of the Amended Credit Agreement; and 
  
 (g) evidence that all fees and other amounts required to be paid under Section 4.04 of this Agreement shall have been paid in full. 
  
 ARTICLE IV. 
  
 Miscellaneous 
  
 Section 4.01. Defined Terms. The terms used herein and not defined herein shall have the meanings assigned to such terms in the Existing Credit
Agreement. All references to “JP Morgan Chase Bank” in any Loan Document shall be deemed to be to “JP Morgan Chase Bank, N.A.” 
  

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 Section 4.02. Nonwaiver. The terms of this Agreement shall not operate as a waiver by the
Administrative Agent, the Documentation Agent or the Lenders of any affirmative, negative or financial covenant contained in the Credit Agreement or otherwise prejudice the rights, remedies or powers of the Administrative Agent, the Documentation
Agent or any Lender under the Amended Credit Agreement, the other Amended Loan Documents or applicable law. Except as set forth in Article I: (x) no terms and provisions of the Loan Documents are modified or changed by this Agreement; and (y) the
terms and provisions of the Loan Documents shall continue in full force and effect. 
  
 Section 4.03. Waivers; Amendments. Any provision of this Agreement may be amended or modified only by an agreement or agreements in writing signed by the Borrower, the Subsidiary Borrower and the Required
Lenders, or by the Borrower, the Subsidiary Borrower and the Administrative Agent acting with the consent of the Required Lenders; provided that the consent of each Lender shall be required with respect to any matters as to which such Lender’s
consent is required under Section 10.02(b) of the Amended Credit Agreement. 
  
 Section 4.04. Expenses. The Borrower shall pay to the Administrative Agent, for the account of each Lender, an amendment fee equal to .20% of such Lender’s Commitments as of the Effective Date. The
Borrower shall pay all reasonable documented out-of-pocket expenses incurred by the Administrative Agent, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent, in connection with the preparation and
administration of this Agreement, the other Amended Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated). 
  
 Section 4.05. Notices. All notices and other communications provided
for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy in accordance with the terms of the Amended Credit Agreement. 
  
 Section 4.06. Headings. Article and Section headings used herein are
for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement. 
  
 Section 4.07. Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a
particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 
  
 Section 4.08. Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement, the other Amended Loan Documents and the separate letter agreements with respect to fees
payable to the Administrative Agent and the Documentation Agent constitute the entire contract among the parties relating to the subject matter hereof and 

  

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thereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof and thereof. Subject to the
satisfaction of the conditions set forth in Article III, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken
together, bear the signatures of the Lenders, and thereafter shall be binding upon and inure to the benefit of the parties to the Existing Credit Agreement and their respective successors and assigns. Delivery of an executed counterpart of a
signature page of this Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement. 
  
 Section 4.09. Governing Law. This Agreement shall be construed in accordance with and governed by the law of the State of New York. 
  
 Section 4.10. Reaffirmation. Each of the Borrower and the Subsidiary
Borrower hereby unconditionally and absolutely affirms its obligations under each Loan Document to which it is a party, as herein modified, and agrees that such obligations are valid and binding upon it, and enforceable against it, without defense,
offset or counterclaim and hereby acknowledges and consents to, and waives all objections to, all of the transactions contemplated by or consented to under or in connection with this Agreement. The Board of Directors of the Borrower shall
unconditionally ratify all of its obligations under the Amended Loan Documents at its next regularly scheduled meeting on February 24, 2005. 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the
day and year first above written. 
  

			
	LYDALL, INC., a Delaware corporation
		
	By	 	 /S/    THOMAS P. SMITH

	Name:	 	Thomas P. Smith
	Title:	 	Vice President, Chief Financial Officer and Treasurer
	
	 LYDALL DEUTSCHLAND HOLDING GMBH,
 a
German limited liability company

		
	By	 	 /S/    DAVID FREEMAN

	Name:	 	David Freeman
	Title:	 	Managing Director
	
	JPMORGAN CHASE BANK, N.A. (formerly known as JPMorgan Chase Bank), individually and as Administrative Agent
		
	By	 	 /S/    PETER M. KILLEA

	Name:	 	Peter M. Killea
	Title:	 	Vice President
	
	 THE BANK OF NEW YORK, individually and
 as Documentation Agent

		
	By	 	 /S/    SCOTT BOGNAR

	Name:	 	Scott Bognar
	Title:	 	Vice President

  
 [SIGNATURE
PAGE TO FIRST AMENDMENT AGREEMENT] 

			
	WEBSTER BANK
		
	 By
	 	 /S/    MATTHEW O. RILEY

	 Name:
	 	 Matthew O. Riley

	 Title:
	 	 Senior Vice President

	
	BROWN BROTHERS HARRIMAN & CO.
		
	 By
	 	 /S/    J. EDWARD HALL

	 Name:
	 	 J. Edward Hall

	 Title:
	 	 Managing Director

	
	WACHOVIA BANK, N.A.
		
	 By
	 	 /S/    PHILIP GALIOTO

	 Name:
	 	 Philip Galioto

	 Title:
	 	 Vice President

  
 [SIGNATURE
PAGE TO FIRST AMENDMENT AGREEMENT]Severance Agreement

 Exhibit 10.24 
  
  
 SEVERANCE AGREEMENT 
  
 THIS AGREEMENT is made and entered into as of the 4th day of October, 2004,
by and between LYDALL FILTRATION/SEPARATION, INC., a Connecticut corporation (the “Company”), and Kevin T. Longe of 1030 Southwest Jefferson Street, Portland, Oregon 97201(the “Executive”). 
  
  
 W I T N E S S E T H 
  
 WHEREAS, the Company and
the Executive (the “Parties”) have agreed to enter into this agreement (the “Agreement) relating to
the severance of the employment of the Executive by the Company; 
  
 NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for other good and valuable consideration, the Parties, intending to be legally bound, agree as follows: 
  
 1.0 Termination of Employment by the Company. 
  
 1.1 Involuntary Termination by the Company Other Than For Permanent and
Total Disability or Cause. The Company may terminate the Executive’s employment at any time. If termination is for reasons other than (i) the Executive’s Permanent and Total Disability (as defined in Section 1.2) or (ii) for Cause (as
de-fined in Section 1.3), termination shall be effective upon the Company giving the Executive a written notice of termination at least 30 days before the date of termination (or such lesser notice period as to which the Executive may agree). In the
event of such a termination of employment pursuant to this Section, the Executive shall be entitled to receive (i) the benefits described in Section 3 if such termination of employment does not occur within 12 months following a “Change-of
Control” (as defined in Section 5), or (ii) the benefits described in Section 4 if such termination of employment occurs within 12 months following a “Change of Control” (as defined in Section 5). 
  
 1.2 Termination Due to Permanent and Total Disability. If the Executive
incurs a Permanent and Total Disability, as defined below, the Company may terminate the Executive’s employment by giving the Executive written notice of termination at least 30 days before the date of such termination (or such lesser notice
period as the Executive may agree to). In the event of such termination of the Executive’s employment because of Permanent and Total Disability, the Executive shall be entitled to receive (i) his base salary through the date which is twelve
months following the date of such termination of employment, reduced by any amounts paid to the Executive under any disability program maintained by the Company, such base salary to be paid at the normal time for the payment of such base salary,
(ii) a bonus for the year of termination of employment and for the next succeeding year (to be paid at the normal time for payment of such bonuses) in an amount equal to the average of the three highest annual bonuses earned by the Executive under
the Company’s annual incentive bonus plan for any of the five calendar years preceding the calendar year of his termination of employment (or, if the Executive was not eligible for a bonus for at least three calendar years in such five-year
period, then the average of such bonuses for all of the calendar years in such five-year period for which the Executive was eligible), with any deferred bonuses counting for the year earned rather than the year paid; (iii) any other compensation and
benefits to the extent actually earned by the Executive under any other benefit plan or program of the Company as of the date of such termination of employment, such compensation and benefits, to be paid at the normal time for payment of such
compensation and benefits, and (iv) any reimbursement amounts owed for “Business Expenses” defined herein as: reason-able, documented and necessary expenses incurred by the Executive in performing his duties, provided the Executive
properly ac-counts therefore in accordance with the policies established by the company. In addition, if the Executive elects to continue coverage under the Company’s health plan pursuant to COBRA, the Company for a period of twelve months
following termination of the Executive’s employment by reason of Permanent and Total Disability will pay the same percentage of the Executive’s premium for COBRA coverage for the Executive and, if applicable, his spouse and dependent
children, as the Company paid at the applicable time for coverage under such plan for actively employed senior executives generally. For the period of twelve months following the termination of the Executive’s employment by reason of Permanent
and Total Disability, the Company will continue to provide the life insurance benefits that the Company would have provided to the Executive if the Executive had continued in employment with the Company for such period, but only if the Executive
timely pays the portion of the premium for such coverage that senior executives of the 

  

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Company generally are required to pay for such coverage, if any. For purposes of this Agreement, the Executive shall be considered to have incurred a
Permanent and Total Disability if and only if the Executive has incurred a disability entitling the Executive to disability benefits under the Company’s long-term disability plan. 
  
 1.3 Termination for Cause. The Company may terminate the Executive’s employment immediately for Cause for any of
the following reasons: (i) an act or acts of dishonesty or fraud on the part of the Executive resulting or intended to result directly or indirectly in substantial gain or personal enrichment to which the Executive was not legally entitled at the
expense of the Company or any of its subsidiaries; (ii) a willful material breach by the Executive of his duties or responsibilities under this Agreement resulting in demonstrably material injury to the Company or any of its subsidiaries; (iii) the
Executive’s conviction of a felony or any crime involving moral turpitude, (iv) habitual neglect or insubordination (defined as refusal to execute or carry out directions from the Board or its duly appointed designees) where the Executive has
been given written notice of the acts or omissions constituting such neglect or insubordination and the Executive has failed to cure such conduct, where susceptible to cure, within thirty days following such notice, or (v) a material breach by the
Executive of any of his obligations under the Confidentiality and Non-Compete Agreement executed by the Executive and attached hereto as Exhibit A. The Company shall exercise its right to terminate the Executive’s employment for Cause by giving
the Executive written notice of termination specifying in reasonable detail the circumstances constituting such Cause. In the event of such termination of the Executive’s employment for Cause, the Executive shall be entitled to receive only (i)
his base salary earned through the date of such termination of employment plus his base salary for the period of any vacation time earned but not taken for the year of termination of employment, such base salary to be paid at the normal time for
payment of such base salary, (ii) any other compensation and benefits to the extent actually earned by the Executive under any other benefit plan or program of the Company as of the date of such termination of employment, such compensation and
benefits to be paid and at the normal time for payment of such compensation and benefits and (iii) any reimbursement of Business Expenses. The Executive will not be entitled to a bonus payment. 
  
 2.0 Termination of Employment By Death. 
  
 In the event of the death of the Executive during the course of his
employment hereunder, the Executive’s estate (or other person or entity having such entitlement pursuant to the terms of the applicable plan or program) shall be entitled to receive (i) the Executive’s base salary earned through the date
of the Executive’s death plus the Executive’s base salary for the period of vacation time earned but not taken for the year of the Executive’s death, such base salary to be paid at the normal time for payment of such base salary, (ii)
if earned, a bonus for the year of the Executive’s death (to be paid within 90 days after the Executive’s death) in an amount equal to a pro rata portion of the average of the three highest annual bonuses earned by the Executive under the
Company’s annual incentive bonus plan for any of the five calendar years preceding the calendar year of the Executive’s death (or, if the Executive was not eligible for a bonus for at least three calendar years in such five-year period,
then the average of such bonuses for all of the calendar years in such five-year period for which the Executive was eligible), with any deferred bonuses counting for the year earned rather than the year paid and with the pro rata portion being
determined by dividing the number of days of the Executive’s employment during such calendar year up to his death by 365 (366 if a leap year), (iii) any other compensation and benefits to the extent actually earned by the Executive under any
other benefit plan or program of the Company as of the date of such termination of employment, such compensation and benefits to be paid at the normal time for payment of such compensation and benefits, and (iv) any reimbursement of Business
Expenses. In addition, in the event of such death, the Executive’s beneficiaries shall receive any death benefits owed to them under the Company’s employee benefit plans. If the Executive’s spouse and/or dependent children elect to
continue coverage under the Company’s health plan following the Executive’s death pursuant to COBRA, the Company for a period of 12 months following the Executive’s death will pay the same percent-age of the premium for COBRA coverage
for the Executive’s spouse and/or dependent children, as applicable, as the Company would have paid in respect of the Executive’s coverage under such plan if the Executive had continued in employment with the Company for such period.

  
 3.0 Benefits Upon Termination Without Cause No Chanqe of Control).

  
 If the Executive’s employment hereunder is terminated by
the Company, other than for Cause or Permanent and Total Disability, and such termination of employment does not occur within 12 months following a “Change of Control” of the Company (as defined in Section 5), the Executive shall be
entitled to the following: 
  
 (a) Salary.
The Company shall pay to the Executive his base salary earned through the date of such termination of 

  

 - 2 - 

 
employment and any other compensation and benefits to the extent actually earned by the Executive under any benefit plan or program of the Company as of the
date of such termination of employment, such base salary, compensation and benefits to be paid at the normal time for payment of such base salary, compensation and benefits. 
  
 (b) Expense Reimbursement. The Company shall reimburse the Executive for any Business Expenses.

  
 (c) Severance Payment. The Company
shall pay to the Executive 6 months’ severance, at the Executive’s annual rate of base salary immediately preceding his termination of employment, in equal installments spread over the period of 6 months beginning on the. date of
termination. Upon continuous employment through the first anniversary of the Executive’s hire date, the amount of severance to be paid shall be increased to 12 months at the Executive’s annual rate of base salary immediately preceding his
termination of employment, in equal installments spread over the period of 12 months beginning on the date of termination. 
  
 (d) Bonus. If the date of termination occurs after the first anniversary of the Executive’s hire date, the Company shall pay to the
Executive in addition, the average of his annual bonuses earned under the Company’s annual incentive bonus plan for the three calendar years preceding his termination of employment (or, if the Executive was not eligible for a bonus in each of
those three calendar years, then the average of such bonuses for all of the calendar years in such three-year period for which he was eligible), with any deferred bonuses counting for the year earned rather than the year paid. Such installments
shall be paid at the times that salary payments are normally made by the Company. 
  
 (e) Health Benefits. If the Executive elects to continue coverage under the Company’s health plan pursuant to COBRA, then for
the period beginning on the date of the Executive’s termination of employment and ending on the earlier of (i) the date which is 12 months after the date of such termination of employment or (ii) the date on which the Executive commences
substantially full-time employment as an employee of an employer that offers health benefits, the Company will pay the same percentage of the Executive’s premium for COBRA coverage for the Executive and, if applicable, his spouse and dependent
children, as the Company paid at the applicable time for coverage under such plan for actively employed senior executives generally. The Executive shall notify the Company promptly if he, while eligible for benefits under this subsection (d),
commences substantially full-time employment as an employee of an employer that offers health insurance benefits. 
  
 (f) Outplacement. The Company will provide the Executive with outplacement services selected by the Executive, at the
Company’s expense not to exceed $10,000. 
  
 4.0 Benefits Upon Termination
Without Cause (Chanqe of Control). 
  
 If the Executive’s
employment hereunder is terminated by the Company, other than for Cause or Permanent and Total Disability, and such termination of employment occurs within 12 months following a “Change of Control” of the Company (as defined in
Section 5), the Executive shall be entitled to the following: 
  
 (a) Salary. The Company shall pay to the Executive his base salary earned through the date of such termination of employment and any other compensation and benefits to the extent actually earned by the
Executive under any benefit plan or program of the Company as of the date of such termination of employment, such base salary, compensation and benefits to be paid at the normal time for payment of such base salary, compensation and benefits.

  
 (b) Expense Reimbursement. The Company
shall reimburse the Executive for any Business Expenses. 
  
 (c) Severance. The Company shall pay to the Executive as a severance benefit an amount equal to one (1) times the sum of (i) his annual rate of base salary immediately preceding his termination of employment,
and (ii) the aver-age of his three highest annual bonuses earned under the Company’s annual incentive bonus plan for any of the five calendar years preceding his termination of employment (or, if the Executive was not eligible for a bonus for
at least three calendar years in such five-year period, then the average 

  

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of such bonuses for all of the calendar years in such five-year period for which the Executive was eligible), with any deferred bonuses counting for the year
earned rather than the year paid. Such severance benefit shall be paid in a lump sum within 30 days after the date of such termination of employment. 
  
 (d) Bonus. The Company shall pay to the Executive as a bonus for the year of termination of his employment an amount equal to a
portion (determined as provided in the next sentence) of the Executive’s expected bonus opportunity under the Company’s annual incentive bonus plan for the calendar year of the termination of the Executive’s employment or, if none,
such portion of the bonus awarded to the Executive under the Company’s annual incentive bonus plan for the calendar year immediately preceding the calendar year of the termination of his employment, with deferred bonuses counting for the year
earned rather than the year paid. Such portion shall be determined by the Company, in its sole reasonable discretion, as of the time of the Executive’s termination by dividing the number of days of the Executive’s employment during such
calendar year up to his termination of employment by 365 (366 if a leap year) and prorating accordingly the expected bonus calculated by the Company, based on information available on or about the date of termination of the Executive. Such payment
shall be made in a lump sum within 30 days after the date of such termination of employment, and the Executive shall have no right to any further bonuses under said plan. 
  
 (e) Health Benefit. During the period of 12 months beginning on the date of the Executive’s
termination of employment, the Executive (and, if applicable, the Executive’s spouse and dependent children) shall remain covered by the medical and dental, plans of the Company that covered the Executive immediately prior to his termination of
employment as if the Executive had remained in employment for such period; provided, however, that the coverage under any such plan is conditioned on the timely payment by the Executive (or his spouse or dependent children) of the portion of the
premium for such coverage that other employees with the Company generally are required to pay for such coverage. 
  
 (f) Pension Enhancement. The Company shall supplement the benefits payable in respect of the Executive under the Company’s
Pension Plan (and any successor plans thereto) (collectively, the “Pension Plans”) by paying the difference between (i) the benefits that the Executive would have been entitled to receive under the Pension Plans if he had been credited
with one additional year of service (but no additional years of age) for purposes of the benefit accrual formula under the Pension Plans as of the date of termination of the Executive’s employment and (ii) the benefits that the Executive is
entitled to receive under the Pension Plans determined without regard to this subsection. Such benefits shall be payable in the same form and at the same time as the benefits under the respective Pension Plans. 
  
 (g) Car Allowance. The Company will pay the Executive
a car allowance, in an amount equal to Executive’s lease allowance at the time of termination, per month for 12 months following termination of the Executive’s employment to replace the Company-leased automobile, which leased auto-mobile
will be returned to the Company by the Executive on the date of termination of the Executive’s employment. 
  
 (h) Outplacement. The Company will provide the Executive with out-placement services selected by the Executive, at the
Company’s expense not to exceed $10,000. 
  
 5.0 Change of Control.

  
 For the purposes of this Agreement, a “Change of
Control” shall be deemed to have occurred if (a) any person or persons acting together which would constitute a “group” for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
(other than the Company or any subsidiary of the Company) shall beneficially own. (as defined in Rule 13d-3 of the
Exchange Act), directly or indirectly, at least 25% of the total voting power of all classes of capital stock of the Company entitled to vote generally in the election of the Board; (b) Current Directors (as herein defined) shall cease for any
reason to constitute at least a majority of the members of the Board (for this purpose, a “Current Director” shall mean any member of the Board as of the date hereof and any successor of a Current Director whose election, or nomination for
election by the Company’s shareholders, was approved by at least a majority of the Current Directors then on the Board); (c) the shareholders of the Company approve (i) a plan of complete liquidation of the Company or (ii) an agreement
providing for the merger or 

  

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consolidation of the Company other than a merger or consolidation in which (x) the holders of the common stock of the Company immediately prior to the
consolidation or merger have, directly or indirectly, at least a majority of the common stock of the continuing or surviving corporation immediately after such consolidation or merger or (y) the Board immediately prior to the merger or consolidation
would, immediately after the merger or consolidation, constitute a majority of the board of directors of the continuing or surviving corporation; or (d) the shareholders of the Company approve an agreement (or agreements) providing for the sale or
other disposition (in one transaction or a series of transactions) of all or substantially all of the assets of the Company. 
  
 6.0 Golden Parachute Excise Tax. 
  
 (a) In the event that any payment or benefit received or to be received by the Executive pursuant to this Agreement or any other plan, program or
arrangement of the Company or any of its affiliates would constitute an “excess parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), then the payments under this
Agreement shall be reduced (by the minimum possible amounts) until no amount payable to the Executive under this Agreement constitutes an “excess parachute payment” within the meaning of Section 280G of the Code; provided, however, that no
such reduction shall be made if the net after-tax payment (after taking into account Federal, state, local or other income and excise taxes) to which the Executive would otherwise be entitled without such reduction would be greater than the net
after-tax payment (after taking into account Federal, state, local or other income and excise taxes) to the Executive resulting from the receipt of such payments with such reduction. If, as a result of subsequent events or conditions (including a
subsequent payment or absence of a subsequent payment under this Agreement or other plan, program or arrangement of the Company or any of its affiliates), it is determined that payments under this Agreement have been reduced by more than the minimum
amount required to prevent any payments from constituting an “excess parachute payment”, then an additional payment shall be promptly made to the Executive in an amount equal to the additional amount that can be paid without causing any
payment to constitute an excess parachute payment. 
  
 (b) All
determinations required to be made under this Section shall be made by the Company and reviewed by a nationally recognized independent accounting firm mutually agreeable to the Company and the Executive (the “Accounting Firm”) which shall
provide detailed supporting calculations to the Company and the Executive as requested by the Company or the Executive. All fees and expenses of the Accounting Firm shall be borne solely by the Company and shall be paid by the Company upon demand of
the Executive as incurred or billed by the Accounting Firm. All determinations made by the Accounting Firm pursuant to this Section 11 shall be final and binding upon the Company and the Executive. 
  
 (c) To the extent any payment or benefit is to be reduced pursuant to this
Section, the payments described in this Agreement will be reduced in the following order: the severance payment, then the bonus payment, and then any supplemental pension benefits, in each case only to the extent necessary. 
  
 7.0 Entitlement to Other Benefits. 
  
 Except as otherwise provided in this Agreement, this Agreement shall not be
construed as limiting in any way any rights or benefits that the Executive or his spouse, dependents or beneficiaries may have pursuant to any other plan or program of the Company. 
  
 8.0 General Provisions. 
  
 8.1 Deductions and Withholdinq. All amounts payable or which become payable under any provision of this Agreement shall be subject to any
deductions authorized by the Executive and any deductions and withholdings required by law. 
  
 8.2 Notices. All notices, demands, requests, consents, approvals or other communications (collectively “Notices”) required or permitted to be given hereunder or which are given with respect to this
Agreement shall be in writing and may be personally served or may be faxed with a copy deposited in the United States mail, registered or certified, return receipt requested, postage prepaid, addressed as follows: 
  

	 	To the Company:	Lydall Filtration/Separation, Inc. 

 P.O.
Box 151 
 One Colonial Road 
 Manchester, CT 06045-0151 
 Attn: General Counsel 
  

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	 	To the Executive:	Kevin T. Longe 

 1030 Southwest Jefferson
Street 
 Portland, Oregon 97201 
  
 or such other address as such party shall have specified most recently by written notice. Notice mailed as provided herein shall be deemed given on the fifth business day
following the date so mailed or on the date of actual receipt, whichever is earlier. 
  
 8.3 No Disparaqement. The Executive shall not during the period of his employment with the Company, nor during the two-year period beginning on the date of termination of his employment for any reason,
disparage the Company or any of its subsidiaries or affiliates or any of their shareholders, directors, officers, employees or agents. The Executive agrees that the terms of this Section shall survive the term of this Agreement and the termination
of the Executive’s employment. 
  
 8.4 Proprietary
Information and Inventions. The Confidentiality and Non-Compete Agreement executed on October 4,2004 by the Executive and attached hereto as Exhibit A is incorporated by reference in this Agreement, and the Executive agrees to continue to be
bound thereby. 
  
 8.5 Covenant to Notify Manaqement. The
Executive agrees to abide by the ethics policies of the Company as well as the Company’s other rules, regulations, policies and procedures. The Executive agrees to comply in full with all governmental laws and regulations as well as ethics
codes applicable. In the event that the Executive is aware or suspects the Company, or any of its officers or agents, of violating any such laws, ethics, codes, rules, regulations, policies or procedures, the Executive agrees to bring all such
actual and suspected violations to the attention of the Company immediately so that the matter may be properly investigated and appropriate action taken. The Executive understands that the Executive may be liable for failing to take prompt steps to
stop or eliminate violations of ethical standards, Company policies and governmental laws and regulations once such matters become apparent to the Executive. As a result, the Executive has an affirmative duty to report such alleged violations to the
Company without delay and is precluded from filing a complaint with any court having jurisdiction over wrongful con-duct unless the Executive has first notified the Company of the facts and permits it to investigate and correct the concerns.

  
 8.6 Amendments and Waivers. No provision of this
Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing signed by the Executive and the Company. No waiver by either Party hereto at any time of any breach by the other Party hereto of,
or compliance with, any condition or provision of this Agreement to be per-formed by such other Party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 
  
 8.7 Beneficial Interests. This Agreement shall inure to the benefit of
and be enforceable by a) the Company’s successors and assigns and b) the Executive’s personal and legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If the Executive shall die while
any amounts are still payable to him hereunder, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the Executive’s devisee, legatee, or other designee or, if there be no such
designee, to the Executive’s estate. 
  
 8.8
Successors. The Company will require any successors (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to
perform this Agreement in the same manner and to the same extent that the Company would be required to perform. 
  
 8.9 Assignment. This Agreement and the rights, duties, and obligations hereunder may not be assigned or delegated by any Party without the prior
written consent of the other Party and any attempted assignment or delegation without such prior written consent shall be void and be of no effect. Notwithstanding the foregoing provisions of this Section, the Company may assign or delegate its
rights, duties and obligations hereunder to any affiliate or to- any person or entity which succeeds to all or substantially all of the business of the Company or one of its subsidiaries through merger, consolation, reorganization, or other business
combination or by acquisition of all or substantially all of the assets of the Company or one of its subsidiaries. 
  

 - 6 - 

 8.10 Choice of Law. This Agreement shall be governed by and construed in accordance with the laws
of the State of Connecticut. 
  
 8.11 Statute of
Limitations. The Executive and the Company hereby agree that there shall be a one year statute of limitations for the filing of any requests for arbitration or any law-suit relating to this Agreement or the terms or conditions of
Executive’s employment by the Company. If such a claim is filed more than one year subsequent to the Executive’s last day of employment it shall be precluded by this provision, regardless of whether or not the claim has accrued at that
time. 
  
 8.12 Right to Injunctive and Equitable Relief.
The Executive’s obligations under Section 8.3 are of a special and unique character, which gives them a peculiar value. The Company cannot be reasonably or adequately compensated for damages in an action at law in the event the Executive
breaches such obligations. Therefore, the Executive expressly agrees that the Company shall be entitled to injunctive and other equitable relief without bond or other security in the event of such breach in addition to any other rights or remedies
which the Company may possess or be en-titled to pursue. Furthermore, the obligations of the Executive and the rights and remedies of the Company under Section 8.3 and this Section are cumulative and in addition to, and not in lieu of, any
obligations, rights, or remedies as created by applicable law. 
  
 8.13 Severability or Partial Invalidity. The invalidity or unenforceability of any provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full
force and effect. 
  
 8.14 Entire Aqreement. This
Agreement, along with the Confidentiality and Non-Compete Agreement by and between the Executive and the Company, constitutes the entire agreement of the Parties and supersedes all prior written or oral and all contemporaneous oral agreements,
understandings, and negotiations between the Parties with respect to the subject matter hereof. 
  
 This Agreement may not be changed orally and may only be modified in writing signed by both Parties. This Agreement, along with the Confidentiality and
Non-Compete Agreement, is intended by the Parties as the final expression of their agreement with respect to such terms as are included herein and therein and may not be contradicted by evidence of any prior or contemporaneous agreement. The Parties
further intend that this Agreement, along with the Confidentiality and Non-Compete Agreement, constitutes the complete and exclusive statement of their terms and that no extrinsic evidence may be introduced in any judicial proceeding involving such
agreements. 
  
 8.15 Counterparts. This Agreement may be
executed in any number of counterparts, each of which when so executed shall be deemed an original but all of which together shall constitute one and the same instrument. 
  

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 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer
and the Employee has hereunto set his hand as of the day and year first above written. 
  
  

			
	LYDALL FILTRATION/SEPARATION, INC.
		
	By:  	 	/S/    CHRISTOPHER R. SKOMOROWSKI
	 	 	Christopher R. Skomorowski
	 	 	President
	
	/S/    KEVIN T. LONGE
	Kevin T. Longe

  
  
  
  
  
  
  

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