Document:

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT is made and entered into as
of the 11th day of October, 2019, by and between LYDALL, INC., a Delaware corporation (the “Company”), and
Sara A. Greenstein (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 employment of the
Executive by the Company and/or one of its subsidiaries;

 

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.               
Term of Employment.

 

1.1             
The Company (and/or one of its subsidiaries for payroll and benefits purposes) agrees to employ the Executive, and the Executive
accepts such employment, commencing on November 18, 2019 (the “Effective Date”), in accordance with the terms and provisions
of this Agreement.

 

1.2             
The term of this Agreement and the “Employment Period” under this Agreement shall be the period commencing on
the Effective Date and, ending on the date of termination of the Executive’s employment pursuant to Section 5, 6 or 7 below,
whichever is applicable.

 

2.               
Duties. During the Employment Period, the Executive will serve as President and Chief Executive Officer of the Company,
reporting to the Board of Directors of the Company (the “Board”). In such capacity, the Executive will devote her full
business time and attention and best efforts to the affairs of the Company and its subsidiaries and her duties. The Executive will
have such duties as are appropriate to her position, and will have such authority as required to enable the Executive to perform
these duties. Consistent with the foregoing, the Executive shall comply with all reasonable instructions of the Board or a committee
thereof. Subject to and in accordance with the Company charter or by-laws, the Executive shall be appointed a member of the Board
effective as soon as practical following the Effective Date (with the Board using all reasonable efforts to effect such appointment
within five (5) business days following the Effective Date) and shall thereafter be nominated by the Board to serve as a director
for each succeeding director term of service during the Employment Period.

 

     

     

    

 

3.                 
Compensation and Benefits.

 

3.1             
Base Salary. During the Employment Period, the Company will pay the Executive a base salary at an initial
annual rate of Seven Hundred Fifty Thousand Dollars ($750,000). The Company may, in its sole and absolute discretion, increase
the Executive’s base salary in light of the Executive’s performance, inflation, changes in the cost of living and other
factors deemed relevant by the Company (which increased amount shall thereafter be the Executive’s “base salary”
for all purposes under this Agreement). The Executive’s base salary may not be decreased during the Employment Period, other
than in connection with an across-the-board decrease affecting all members of senior management of the Company on substantially
the same proportional basis. The Chairman of the Board (or a designee) shall meet with the Executive annually to review the Executive’s
performance, objectives and compensation, including salary and bonus compensation. The Executive’s base salary will be paid
in accordance with the standard practices for other members of senior management of the Company.

 

3.2             
Bonuses; Inducement Equity Grants.

 

(a)             
Annual Bonus. The Executive will be eligible to participate in the Company’s Annual Incentive Performance (“AIP”)
program on a full-year basis beginning in fiscal year 2020, at an on-going target bonus opportunity level of not less than one
hundred percent (100%) of base salary and a maximum bonus of not less than two hundred percent (200%) of base salary, in accordance
with the AIP plan provisions. For fiscal year 2020 only, the Executive is guaranteed a bonus payout under the AIP program of not
less than eighty-five percent (85%) of base salary.

 

(b)            
Signing Bonus. In consideration of Executive’s execution and delivery of this Agreement and her commencement
of employment with the Company, the Company will pay to Executive a one-time lump sum cash payment in the gross amount of $1,330,000,
less required and authorized deductions and withholdings (the “Signing Bonus”), which shall be payable in two equal
installments, respectively (i) within thirty (30) days following the Effective Date and (ii) during January 2020. If Executive’s
employment ends prior to the first anniversary of the Effective Date due to termination by the Company for Cause (as defined below)
or resignation by Executive other than for either Good Reason (as defined below), the Company shall not pay to the Executive any
remaining balance of the Signing Bonus after the termination date, if applicable, and the Executive will repay to the Company the
full amount of the Signing Bonus paid to her as of the termination date. Similarly, if the Executive’s employment ends prior
to the payment of the Signing Bonus due to termination by the Company other than for Cause or resignation by Executive for Good
Reason, the Company will make payment to the Executive of the full amount of the Signing Bonus, to the extent then unpaid, in accordance
with the timing set forth in this Section 3.2(b)(i) and (ii).

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 2 -

     

    

 

(c)           
Equity Awards. Pursuant to separate agreements, as an inducement material to the Executive to accept Employment
with the Company, the Company will grant to Executive the following equity awards:

 

(i)            A
long-term incentive stock award having a grant value of $1,700,000, split as follows:

 

(A) that number of shares of performance-based
restricted stock (with a performance period of 2020-2022) determined by dividing $950,000 by the price per share of the Company’s
common stock as of the close of business on the Date of Grant (as defined below), and

 

(B) non-qualified stock options,
having a grant value of $750,000, an exercise price equal to the Fair Market Value (as defined in the grant document) of a share
of Company common stock on the Date of Grant, a ten (10)-year term and that vest in three equal annual installments on the first,
second and third anniversaries of the Effective Date, respectively (the number of shares of the Company’s common stock to
which the Executive will be entitled to exercise shall be determined using the Black-Scholes model for option pricing); and

 

(ii)          A
time-based restricted stock award covering that number of shares of the Company’s common stock determined by dividing $1,050,000
by the price per share of the Company’s common stock as of the close of business on the Date of Grant, vesting in three equal
annual installments on the first, second and third anniversaries of the Effective Date, respectively. Notwithstanding anything
to the contrary set forth in this Agreement, in the event that the Executive’s employment is terminated at any time by the
Company for any reason other than for Cause or is terminated by the Executive for Good Reason, those shares of the time-based restricted
stock award set forth in this Subsection 3.2(c)(ii) above are not vested, will become fully-vested.

 

For purposes of this Section 3.2(c),
the “Date of Grant” shall be the date that is two (2) full trading days following the Effective Date. To the extent
that the equity awards under this Section 3.2(c) are not granted pursuant to the Company’s 2012 Stock Incentive Plan, the
Company shall take all steps necessary to satisfy the applicable rules of the New York Stock Exchange and to promptly register
the shares comprising these grants via SEC Form S-8.

 

3.3             
Benefit Programs. During the Employment Period, the Executive will be entitled to participate on substantially
the same terms as other members of senior management of the Company in all employee benefit plans and programs of the Company (other
than any severance plan, program or policy), subject to any restrictions or eligibility requirements under such plans and programs,
from time to time in effect for the benefit of senior management of the Company, including, but not limited to, retirement plans,
profit sharing plans, stock incentive and annual bonus plans, group life insurance, and supplemental executive short-term and long-term
disability.

 

3.4             
Relocation Expense. The Company will pay the Executive’s expenses incurred in any relocation of her
principal residence occurring on or before the first anniversary of the Effective Date, pursuant to the Company’s full relocation
assistance as outlined in the Company’s benefits program. The Company will pay the Executive’s reasonable expenses
for temporary housing and commuting travel expenses incurred prior the Executive’s relocation of her principal residence.
All temporary housing and commuting travel expenses and relocation expenses will be fully grossed up for all taxes incurred by
the Executive thereon. The Executive is subject to repay the relocation expenses (along with all grossed up amounts paid to or
otherwise covered by the Company on behalf of the Executive) to the Company in the event of termination by the Company for Cause
or resignation by Executive other than either for Good Reason occurring on or prior to the first anniversary of the date of the
last relocation expense reimbursed to the Executive.

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 3 -

     

    

 

3.5             
Vacations and Holidays. During the Employment Period, the Executive will be entitled to vacation leave of
four (4) weeks per year at full pay or such greater vacation benefits as may be provided for by the Company’s vacation policies
applicable to senior management. The Executive will be entitled to such holidays as are established by the Company for all employees.

 

3.6             
Automobile Allowance. During the Employment Period, the Company will provide the Executive with an automobile allowance
in accordance with Company policy.

 

4.                 
Expenses.

 

4.1             
Business Expenses. The Executive will be entitled to prompt reimbursement for all reasonable, documented and necessary
expenses incurred by the Executive in performing her services hereunder in accordance with the policies of the Company, provided
that the Executive properly accounts therefor in accordance with the policies and procedures established by the Company.

 

4.2             
Legal Fees. The Company will pay, promptly upon presentation of one or more invoices, the Executive’s reasonable
professional legal fees incurred to negotiate and prepare this Agreement and all related agreements hereto.

 

5.                 
Termination of Employment by the Company.

 

5.1             
Termination by the Company Other Than For Disability or Cause. The Company may terminate the Executive’s employment
at any time other than (a) by reason of the Executive’s Disability (as defined in Section 5.2) or (b) for
Cause (as defined in Section 5.3), by giving the Executive a written notice of termination at least 30 days before the date of
termination (or such lesser notice period as the Executive may agree to). In the event of such a termination of employment pursuant
to this Section 5.1, the Executive shall be entitled to receive (i) the benefits described in Section 8 if such termination
of employment does not occur within 18 months following a Change of Control, or (ii) the benefits described in Section 9 if
such termination of employment occurs on or within 18 months following a Change of Control, in addition to the waiver of any refund
obligation under Section 3.2(b).

 

5.2             
Termination Due to Disability. If the Executive incurs a 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 Disability, the Executive shall be entitled to receive (a) her base salary pursuant to Section 3.1 through
the first anniversary of 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, as reduced, to be paid in accordance with the standard payroll practices of
the Company; (b) a pro rata bonus for the fiscal year of termination, calculated as the product of (x) the annual performance-based
bonus that would have been payable to the Executive for the fiscal year of termination (determined as of the end of such fiscal
year) and (y) a fraction, the numerator of which is the number of days in the current fiscal year through the date of termination
and the denominator of which is 365 (366 if a leap year), to be paid at the normal time for payment of such bonus in the fiscal
year following the fiscal year to which the bonus relates; (c) any unpaid annual bonus earned for a prior completed fiscal year,
which bonus shall be paid at the normal time for payment of such bonus in the fiscal year in which such termination occurs; (d)
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 to the extent not previously paid, and (e) any reimbursement amounts owing under Section 4. In
addition, if the Executive elects to continue coverage under the Company’s health plan pursuant to the Consolidated Omnibus
Budget Reconciliation Act (“COBRA’), then for the period beginning on the date of the Executive’s termination
of employment and ending on the earlier of (i) the first anniversary of such termination of employment or (ii) the date the Executive
becomes eligible for health insurance benefits under the group health plan of another employer, the Company will pay the same percentage
of the Executive’s premium for COBRA coverage for the Executive and, if applicable, her spouse and dependent children, as
the Company paid at the applicable time for coverage under such plan for actively employed members of senior management generally.
For the period beginning on the date of the Executive’s termination of employment and ending on the earlier of (A) the
first anniversary of the date of such termination of employment or (B) the date on which the Executive becomes eligible for
life insurance benefits from another employer, 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 members of senior management of the Company generally
are required to pay for such coverage, if any. The Executive shall notify the Company promptly if she, while eligible for benefits
under this Section 5.2, becomes eligible to receive health and/or life insurance benefits from another employer. In the event
that the Executive’s participation in the Company’s group life insurance plan is barred, the Company shall arrange
to provide the Executive with comparable life insurance coverage to the extent available at a cost not to exceed 125% of the cost
of the group life insurance coverage offered to the Executive through the Company’s group life insurance plan; provided that
the Executive shall pay the same proportionate share of the premium for such coverage that members of senior management of the
Company generally are required to pay for group life insurance coverage under the Company’s group life insurance plan, if
any.

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 4 -

     

    

 

For purposes of this Agreement, the Executive
shall be considered to have incurred a “Disability” if and only if the Executive is by reason of any medically determinable
physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not
less than 12 months (i) unable to engage in any substantial gainful activity, or (ii) receiving income replacement benefits for
a period of not less than 3 months under an accident and health plan covering employees of the Company.

 

5.3             
Termination for Cause. The Company may terminate the Executive’s employment immediately for “Cause”
for any of the following reasons: (a) an act or acts of dishonesty or fraud by the Executive relating to the performance of
her services to the Company; (b) a breach by the Executive of her duties or responsibilities under this Agreement resulting
in significant demonstrable injury to the Company or any of its subsidiaries; (c) the Executive’s conviction of a felony
or any crime involving moral turpitude; (d) the Executive’s material failure (for reasons other than death or Disability)
to perform her duties under this Agreement 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 failure
or insubordination and the Executive has failed to cure such conduct, where susceptible to cure, within ten days following such
notice; or (e) a breach by the Executive of any provision of any material policy of the Company or of her obligations under the
confidentiality, non-competition and invention ownership agreement executed by the Executive and attached hereto as Exhibit
A (the “Confidentiality Agreement”). 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) her base salary pursuant to Section 3.1 earned through the date of such termination of employment plus her
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 in a lump sum no later than the next payroll date following the Executive’s date of termination to the extent
not previously paid, (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
at the normal time for payment of such compensation and benefits to the extent not previously paid and (iii) any reimbursement
amounts owing under Section 4.

 

6.                
Termination of Employment by the Executive.

 

(a)              
Good Reason. The Executive may terminate her employment for Good Reason by giving the Company a written notice of
termination at least 30 days before the date of such termination (or such lesser notice period as the Company may agree to) specifying
in reasonable detail the circumstances constituting such Good Reason. In the event of the Executive’s termination of her
employment for Good Reason, the Executive shall be entitled to receive (A) the benefits described in Section 8 if such termination
of employment does not occur within 18 months following a Change of Control, or (B) the benefits described in Section 9 if
such termination of employment occurs on or within 18 months following a Change of Control, in addition to the waiver of any refund
obligation under Section 3.2(b). For purposes of this Agreement, Good Reason shall mean, without the Executive’s written
consent, (i) a significant reduction in the scope of the Executive’s authority, functions, duties or responsibilities
(including reporting responsibilities) from that which is contemplated by this Agreement; provided that a change in scope solely
as a result of the Company no longer being public shall not constitute Good Reason, (ii) any material reduction in the Executive’s
base salary, other than an across-the-board reduction affecting substantially all members of senior management of the Company on
substantially the same proportional basis, (iii) any material breach by the Company of any provision of this Agreement without
the Executive having committed any material breach of the Executive’s obligations hereunder or under the Confidentiality
Agreement, in each case, which breach is not cured within thirty (30) days following written notice thereof to the Company of such
breach, or (iv) the relocation of the Executive’s office location to a location more than 50 miles away from the Executive’s
then current principal place of employment or the Company’s Corporate Headquarters (principal place of business). For purposes
of this Agreement, Good Reason shall not include the failure of the Executive to reelected to the Board of Directors by a vote
of the shareholders in accordance with the Company’s charter and/or bylaws,. If an event constituting a ground for termination
of employment for Good Reason occurs, and the Executive fails to give notice of termination within 30 days after the occurrence
of such event, the Executive shall be deemed to have waived her right to terminate employment for Good Reason in connection with
such event (but not for any other event for which the 30-day period has not expired).

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 5 -

     

    

 

(b)              
Other. The Executive may terminate her employment at any time and for any reason, other than pursuant to subsection (a)
above, by giving the Company a written notice of termination to that effect at least 30 days before the date of termination (or
such lesser notice period as the Company may agree to); provided, however, that the Company following receipt of such notice from
the Executive may elect to have the Executive’s employment terminate immediately following its receipt of such notice. In
the event of the Executive’s termination of her employment pursuant to this subsection (b), the Executive shall be entitled
to receive only (i) her base salary pursuant to Section 3.1 earned through the date of such termination of employment
plus her base salary for the period of vacation time earned but not taken for the year of termination of employment, such base
salary to be paid in a lump sum no later than the next payroll date following the Executive’s date of termination to the
extent not previously paid, (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 at the normal time for payment of such compensation and benefits to the extent not previously paid, and (iii) any
reimbursement amounts owing under Section 4.

 

7.                 
Termination of Employment By Death. In the event of the death of the Executive during the course of her 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 (a) the Executive’s base salary pursuant to Section 3.1 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 in a lump sum no later than the next payroll date following
the Executive’s date of termination to the extent not previously paid, (b) 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 bonus plan for any of the five fiscal
years preceding the calendar year of the Executive’s death (or, if the Executive was not eligible for a bonus for at least
three fiscal 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, and if occurring during the first such year then the average shall be deemed to be a target
level bonus), 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 her death by 365
(366 if a leap year), (c) any unpaid annual bonus earned for a prior completed fiscal year, which bonus shall be paid at the
normal time for payment of such bonus in the fiscal year of the Executive’s death; (d) 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 to the
extent not previously paid, and (e) any reimbursement amounts owing under Section 4. 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 percentage 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.

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 6 -

     

    

 

8.                 
Benefits Upon Termination Without Cause or For Good Reason (No Change of Control). If (a) the Executive’s employment
hereunder shall terminate (i) because of termination by the Company pursuant to Section 5.1, or (ii) because of termination
by the Employee for Good Reason pursuant to Section 6(a), and (b) such termination of employment does not occur on or within 18
months following a Change of Control of the Company, the Executive shall be entitled to the following:

 

(a)              
The Company shall pay to the Executive her base salary pursuant to Section 3.1 earned through the date of such termination
of employment, plus the Executive’s base salary for the period of vacation time earned but not taken for the year of the
Executive’s termination, in a lump sum no later than the next payroll date following the Executive’s date of termination
to the extent not previously paid, 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, any such compensation and benefits
to be paid at the normal time for payment of such compensation and benefits to the extent not previously paid.

 

(b)              
The Company shall pay the Executive any reimbursement amounts owing under Section 4.

 

(c)              
The Company shall pay to the Executive in equal installments spread over the period of 12 months beginning on the date of
the Executive’s termination of employment an amount equal in the aggregate to the sum of (i) the Executive’s annual
rate of base salary in effect immediately preceding her termination of employment, and (ii) the average of her annual bonuses
earned under the Company’s annual bonus plan for the three fiscal years preceding her termination of employment (or, if the
Executive was not eligible for a bonus in each of those three fiscal years, then the average of such bonuses for all of the fiscal
years in which the Executive was eligible, and if occurring prior to the end of the first such year for which the Executive was
eligible, then the average shall be deemed to be a target level bonus), with any subjective performance requirements for any unpaid
bonus earned for a prior fiscal year deemed fully satisfied, and with any deferred bonuses counting for the year earned rather
than the year paid (such sum the “Severance Benefit”). The Severance Benefit shall be paid in equal installments over
a twelve (12) month period at the same intervals that salary payments are normally made by the Company; provided that, if at the
time of the Employee's termination of employment, (A) the Employee is a “specified employee” as defined in subsection
(a)(2)(B)(i) of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) (a “Specified Employee”),
and (B) the Severance Benefit is nonqualified deferred compensation under Code Section 409A, then the portion of the Severance
Benefit that is nonqualified deferred compensation subject to Code Section 409A shall be paid as provided in Section 12, below.

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 7 -

     

    

 

(d)              
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 first anniversary
of the date of such termination of employment or (ii) the date the Executive becomes eligible for health insurance benefits under
the group health plan of another employer, the Company will pay the same percentage of the Executive’s premium for COBRA
coverage for the Executive and, if applicable, her spouse and dependent children, as the Company paid at the applicable time for
coverage under such plan for actively employed members of senior management generally. In addition, for the period beginning on
the date of the Executive’s termination of employment and ending on the earlier of (A) the first anniversary of the
date of such termination of employment or (B) the date on which the Executive becomes eligible for life insurance benefits
from another employer, 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 members of senior management of the Company generally are required to pay for
such coverage, if any. The Executive shall notify the Company promptly if she, while eligible for benefits under this subsection (d),
becomes eligible to receive health and/or life insurance benefits from another employer. In the event that the Executive’s
participation in the Company’s group life insurance plan is barred, the Company shall arrange to provide the Executive with
comparable life insurance coverage to the extent available at a cost not to exceed 125% of the cost of the group life insurance
coverage offered through the Company’s group life insurance plan; provided that the Executive shall pay the same proportionate
share of the premium for such coverage that members of senior management of the Company generally are required to pay for group
life insurance coverage under the Company’s group life insurance plan, if any.

 

(e)              
The Executive shall be entitled to any unpaid annual bonus earned for a prior completed fiscal year, which bonus shall be
paid at the normal time for payment of such bonus in the fiscal year in which such termination occurs;

 

(f)               
The Company will pay to the outplacement services provider reasonably selected by the Executive an amount not to exceed
$10,000 for outplacement services costs incurred by Executive within the twelve months following the Executive’s termination
of employment.

 

(g)              
The Company’s obligation to provide the severance benefits set forth in Sections 8(c), (d) and (e) upon the Executive’s
termination of employment without Cause or for Good Reason, which does not occur on or within 18 months following a Change of Control,
is subject to the Executive’s execution without revocation of a valid release in within 60 days of Executive’s termination
of employment or such shorter period as the Company may require at the time substantially the form attached to this Agreement as
Exhibit B (the “Release”).

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 8 -

     

    

 

9.                 
Benefits Upon Termination Without Cause or For Good Reason (Change of Control). If (a) the Executive’s employment
hereunder shall terminate (i) because of termination by the Company pursuant to Section 5.1, or (ii) because of termination by
the Employee for Good Reason pursuant to Section 6(a), and (b) such termination of employment occurs on or within 18 months following
a Change of Control of the Company, the Executive shall be entitled to the following:

 

(a)              
The Company shall pay to the Executive her base salary pursuant to Section 3.1 earned through the date of such termination
of employment in a lump sum no later than the next payroll date following the Executive’s date of termination to the extent
not previously paid, 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, any such compensation and benefits to be paid at the
normal time for payment of such compensation and benefits to the extent not previously paid.

 

(b)              
The Company shall pay the Executive any reimbursement amounts owing under Section 4.

 

(c)              
The Company shall pay to the Executive as a severance benefit an amount equal to two (2) times the sum of (i) her annual
rate of base salary in effect immediately preceding her termination of employment, and (ii) the average of her three highest
annual bonuses earned under the Company’s annual bonus plan for any of the five fiscal years preceding her termination of
employment (or, if the Executive was not eligible for a bonus for at least three fiscal 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, and if occurring
during the first such fiscal year, such average shall be deemed to be a target bonus amount), with any deferred bonuses counting
for the year earned rather than the year paid (the “COC Severance Benefit”). The COC Severance Benefit shall be paid
in a lump sum within thirty (30) days after the date of such termination of employment; provided that, if at the time of the Employee's
termination of employment, (i) the Employee is a Specified Employee, and (ii) the COC Severance Benefit is nonqualified deferred
compensation subject to the provisions of Code Section 409A, then any portion of the COC Severance Benefit that is nonqualified
deferred compensation subject to Code Section 409A shall be paid as provided in Section 12, below.

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 9 -

     

    

 

(d)              
The Executive shall be entitled to any unpaid annual bonus earned for a prior completed fiscal year, which bonus shall be
paid at the normal time for payment of such bonus in the fiscal year in which such termination occurs. The Company shall also pay
to the Executive as a bonus for the year of termination of her employment an amount equal to a portion (determined as provided
in the next sentence) of the Executive’s target bonus opportunity under the Company’s annual bonus plan for the fiscal
year of termination of the Executive’s employment or, if none, such portion of the bonus awarded to the Executive under the
Company’s annual bonus plan for the fiscal year immediately preceding the fiscal year of the termination of the Executive’s
employment, with deferred bonuses counting for the year earned rather than the year paid. Such portion shall be determined by dividing
the number of days of the Executive’s employment during such calendar year up to her termination of employment by 365 (366
if a leap year). 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; provided that, if at the time of the Executive’s
termination of employment, the Executive is a Specified Employee, then any portion of such payment that is nonqualified deferred
compensation subject to Code Section 409A shall be made in a lump sum then any portion of the COC Severance Benefit that is nonqualified
deferred compensation subject to Code Section 409A shall be paid as provided in Section 12, below, and the Executive shall
have no right to any further bonuses under said plan.

 

(e)              
For the period beginning on the date of the Executive’s termination of employment and ending on the earlier of (i)
the second anniversary of such termination of employment or (ii) the date the Executive becomes eligible for comparable benefits
from another employer, the Executive (and, if applicable, the Executive’s spouse and dependent children) shall remain covered
by the medical, dental, life insurance, and, if reasonably commercially available through nationally reputable insurance carriers,
long-term disability plans of the Company that covered the Executive immediately prior to her 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 her spouse or dependent children) of the portion of the premium for such coverage that
actively employed members of senior management of the Company generally are required to pay for such coverage. In the event that
the Executive’s participation in any such plan is barred, the Company shall arrange to provide the Executive (and, if applicable,
her spouse and dependent children) with comparable benefits to the extent available at a cost not to exceed 125% of the cost of
providing benefits to the Executive under the Company’s plan or plans. The Executive shall notify the Company promptly if
she, while eligible for benefits under this subsection (e), becomes eligible to receive benefits from another employer.

 

(f)               Each
stock option granted by the Company to the Executive and outstanding immediately prior to termination of her employment shall
be fully vested and immediately exercisable and may be exercised by the Executive (or, following her death, by the person or entity
to which such option passes) at any time prior to the expiration date of the applicable option (determined without regard to any
earlier termination of the option that would otherwise occur by reason of termination of her employment). Each restricted stock
award and performance share award granted by the Company to the Executive and outstanding immediately prior to termination of
the Executive’s employment shall be fully vested upon such termination of employment, with any such performance share award
deemed earned at the greater of (i) target and (ii) the amount reasonably projected to be earned under the terms of the award
based on the performance achievement through the date of termination.

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 10 -

     

    

 

(g)              
The Company will pay to the outplacement services provider reasonably selected by the Executive an amount not to exceed
$10,000 for outplacement services costs incurred by Executive within the twelve months following the Executive’s termination
of employment.

 

(h)              
The Company shall promptly pay all reasonable attorneys’ fees and related expenses incurred by the Executive in seeking
to obtain or enforce any right or benefit under this Section 9 or to defend against any claim or assertion in connection with this
Section 9, but only if and to the extent that the Executive substantially prevails on at least one material issue in such dispute.

 

(i)                
The Company will pay to the Executive an automobile allowance, in an amount equal to the Executive’s monthly allowance
at the time of termination, each month for 24 months following termination of the Executive’s employment; provided that,
if at the time of the Executive’s termination of employment, the Executive is a Specified Employee, then twenty-five percent
(25%) of the automobile allowance shall be paid in a lump sum on the date that is six (6) months after the date of termination,
and the remaining seventy-five percent (75%) of the automobile allowance shall be paid in eighteen (18) equal monthly installments,
beginning in the seventh month following the date of termination.

 

(j)                
The Company’s obligation to provide the severance benefits set forth in Sections 9(c), (d), (e), (f), (g) and (i)
upon the Executive’s termination of employment without Cause or for Good Reason on or within 18 months following a Change
of Control is subject to the Executive’s execution without revocation of the Release within 60 days of Executive’s
termination of employment or such shorter period as the Company may require at the time.

 

10.             
Change of Control. For the purposes of this Agreement, a “Change of Control” shall be deemed to occur
upon the consummation of any of the following events provided that such event constitutes a change in control event within the
meaning of Treasury Regulation §1.409A-3(i)(5) where required for compliance with Code Section 409A: (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) (i) the complete liquidation of the Company or (ii) the merger or 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, which liquidation, merger or consolidation
has been approved by the shareholders of the Company; or (d) the sale or other disposition (in one transaction or a series of transactions)
of all or substantially all of the assets of the Company pursuant to an agreement (or agreements) which has (have) been approved
by the shareholders of the Company.

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 11 -

     

    

 

11.             
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 Code (“Excess Parachute Payment”), 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; provided, however, that no such reduction shall be made if the net after-tax payment (after taking into
account Federal, state, local or other employment, 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
employment, 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 11 shall be made 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 11, the severance payment described in Section
8(c) or 9(c) will first be reduced and then the bonus described in Section 9(d), in each case only to the extent necessary.

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 12 -

     

    

 

12.             
Section 409A of the Code.

 

(a)             If (i) the Executive
is determined to be a “specified employee” within the meaning of Code Section 409A(a)(2)(B)(i), (ii) any amounts
payable under this Agreement are “nonqualified deferred compensation” subject to Code Section 409A, and (iii) such
amounts are payable on the Employee’s “separation from service,” as defined in Treasury Regulation Section 1.409A-1(h),
then such amounts will be payable on a monthly basis after Executive’s termination of employment (or, if earlier, the date
of death of Employee).  To the maximum extent permitted by applicable law, amounts payable to the Executive pursuant to Section
8 or Section 9 herein shall be made in reliance upon the exception for certain involuntary terminations under a separation pay
plan or as short-term deferral under Code Section 409A. Payments under this Section to which an Executive would otherwise be entitled
during the first six (6) months following Executive’s termination date will be accumulated and paid on the day that is six
(6) months after the termination date.

 

(b)              Any taxable reimbursements
under this Agreement will be made no later than the end of the calendar year following the calendar year the expense was incurred.
For purposes of complying with Section 409A: (i) payment of such reimbursements or in-kind benefits during one calendar year will
not affect the amount of such reimbursement or in-kind benefits provided during a subsequent calendar year; and (ii) such reimbursement
benefit or rights or in-kind benefits may not be exchanged or substituted for another form of compensation to the Executive. The
Executive’s right to receive installment payments pursuant to this Agreement shall be treated as a right to receive a series
of separate and distinct payments.

 

(c)             Any
severance payments due as a result of Executive’s termination of employment with the Company will be made only upon a “separation
from service,” as defined in Treasury Regulation Section 1.409A-1(h).

 

(d)             Any
other provision of this Agreement to the contrary notwithstanding, in no event shall any payment or benefit under this Agreement
that constitutes nonqualified deferred compensation for purposes of Code Section 409A be subject to offset by any other amount
unless otherwise permitted by Code Section 409A.

 

(e)             To
the extent any amount payable to the Executive is subject to her entering into a Release and any such amount is nonqualified deferred
compensation under Code Section 409A and which amount could be payable in either of two taxable years for the Executive, such payments
shall be made or commence, as applicable, on the first business day of the later such taxable year (or any later date within seven
(7) days after the Release becomes irrevocable) and shall include all payments that otherwise would have been made before such
date.

 

(f)             In
no event shall the Company be liable to the Executive for or with respect to any taxes, penalties or interest which may be imposed
upon the Executive pursuant to Section 409A other than caused by the gross negligence or willful misconduct of any Company employee
in the administration of the terms of this Agreement. The Executive hereby acknowledges that she has been advised to seek and has
sought the advice of a tax advisor with respect to the tax consequences to the Executive of all payments pursuant to this Agreement,
including any adverse tax consequences or penalty taxes under Code Section 409A and applicable state tax law. The Executive
hereby agrees that no representations have been made to the Executive relating to the tax treatment of any payment pursuant to
this Agreement under Code Section 409A and the corresponding provisions of any applicable state income tax laws.

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 13 -

     

    

 

13.             
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 her spouse, dependents or beneficiaries may have pursuant to
any other plan or program of the Company; provided that the Executive shall not be eligible to receive any benefits under any circumstances
under any severance plan or policy of the Company.

 

14.             
General Provisions.

 

14.1         
No Duty to Seek Employment; No Mitigation or Offset. The Executive shall not be under any duty or obligation to seek
or accept other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the
provisions of this Agreement and, except as specifically provided otherwise under this Agreement, and no amount, payment or benefits
due to the Executive hereunder shall be reduced or suspended if the Executive accepts subsequent employment or self-employment
activity after the Executive’s termination of employment from the Company, except as expressly set forth herein.

 

14.2         
Deductions and Withholding. All amounts payable or which become payable under any provision of this Agreement shall
be subject to any deductions authorized by the Executive and/or any deductions and withholdings required by law.

 

14.3         
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 shall be
delivered personally, sent by facsimile transmission with a copy deposited in the United States mail, registered or certified,
return receipt requested, postage prepaid, or sent by overnight mail addressed as follows:

 

	To the Company:	Lydall, Inc.
	 	One Colonial Road
	 	Manchester, CT 06045-0151
	 	Attn:  General Counsel (on behalf of the Board of Directors)
	 	 
	To the Executive:	Sara A. Greenstein
	 	Address:  At the most recent address shown on the payroll records of the Company

 

or such other address as such party shall have specified most
recently by written notice. Notice mailed as provided herein shall be deemed given when so delivered personally or sent by facsimile
transmission, or, if sent by overnight mail, on the day after the date of mailing.

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 14 -

     

    

 

 

14.4         
No Disparagement. Neither the Executive nor the Company (via any authorized public statement) or its officers or
directors shall, during the period of the Executive’s employment with the Company, nor following the date of termination
of her employment for any reason, publish or communicate to any person or entity any Disparaging (as defined below) remarks, comments
or statements concerning (i) by the Executive: the Company, or any of its subsidiaries or affiliates or any of their shareholders,
directors, officers, employees or agents or (ii) by the Company, any officer or director: the Executive. “Disparaging”
remarks, comments or statements are those that impugn the character, honesty, integrity or morality or business acumen or abilities
in connection with any aspect of the operation of business of the individual or entity being disparaged. The parties agree that
the terms of this Section 14.4 shall survive the term of this Agreement and the termination of the Executive’s employment.

 

14.5         
Obligation to Resign upon Termination The Executive must resign from any office held in the Company and/or any of
its subsidiaries if requested in writing to do so by the Company (or, with respect to the Executive’s position as a member
of the Board, by the Board) on the termination of her employment. If the Executive does not do so on being requested to do so,
the Company is hereby irrevocably authorized to appoint a person in her name to sign and deliver any required letter(s) of
resignation to the Company.

 

14.6         
Proprietary Information and Inventions. The Confidentiality Agreement is incorporated by reference in this Agreement,
and the Executive agrees to continue to be bound thereby.

 

14.7         
Covenant to Notify Management. 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 as may be 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. Notwithstanding anything to the contrary, the Executive is not prohibited from
reporting possible violations of law or regulations to any governmental agency or entity, including but not limited to the Department
of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General, or making other disclosures
that are protected under the whistleblower provisions of applicable law or regulation, and the Executive is not required to obtain
the Company’s approval or notify the Company that the Executive intends to make or has made such a report or disclosure.

 

14.8         
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 performed
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.

 

14.9         
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 her 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.

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 15 -

     

    

 

 

14.10         
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.

 

14.11         
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 14.11, 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
without the Executive’s consent.

 

14.12         
Choice of Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Connecticut
without regard to the conflicts of law provisions thereof.

 

14.13         
Indemnification. On or prior to the Effective Date, the Company and the Executive shall enter into and indemnification
agreement in the form of agreement provided to the Executive with this Agreement (“Indemnification Agreement”). At
all times during the Employment Period and thereafter during which the Executive may be subject to liability, the Company will
cover the Executive as an insured under any contract of directors and officers liability insurance that covers members of the Board.

 

14.14         
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 lawsuit in a court of competent jurisdiction relating to this Agreement or
the terms or conditions of Executive’s employment by the Company (other than as may be provided under the Indemnification
Agreement or any indemnification otherwise provided under the Company charter or by-laws or applicable law). 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.

 

14.15         
Right to Injunctive and Equitable Relief. The parties’ respective obligations under Section 14.4 are of
a special and unique character, which gives them a peculiar value. An aggrieved party cannot be reasonably or adequately compensated
for damages in an action at law in the event an others party breaches such obligations. Therefore, the parties expressly agree
that the aggrieved party 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 aggrieved party may possess or be entitled to pursue. Furthermore,
the respective obligations of each party and the rights and remedies of the other party under Section 14.4 and this Section
14.15 are cumulative and in addition to, and not in lieu of, any obligations, rights, or remedies as created by applicable law.
The parties agree that the terms of this Section 14.15 shall survive the term of this Agreement and the termination of the Executive’s
employment.

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 16 -

     

    

 

14.16         
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.

 

14.17         
Entire Agreement. This Agreement, along with the exhibits hereto, the equity award agreements under Section 3.2(c),
the Indemnification Agreement and the Confidentiality Agreement, constitute 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 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 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.
For the avoidance of doubt, the terms of the Confidentiality Agreement do not prevent the Executive from communicating directly
with a government agency regarding any potential or pending investigation, either during or after my employment with the Company.

 

14.18         
Counterparts. This Agreement may be executed in any number of counterparts (including any electronic exchange via
Adobe pdf signed copies), each of which when so executed shall be deemed an original but all of which together shall constitute
one and the same instrument.

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 17 -

     

    

 

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

 

	 	LYDALL, INC.	 	 
	 	 	 	 
	          		 	 
	 	By:	/S/
Marc T. Giles	 	October 11, 2019
	 	 	Marc T. Giles	 	Date
	 	 	Chairman of the Board	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	/S/ Sara A. Greenstein	 	October 11, 2019
	 	 	Sara A. Greenstein	 	Date

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 18 -

     

    

 

EXHIBIT A

 

Lydall, Inc.

(Also referred to as the “Company”)

 

Confidentiality,
Invention and Non-Compete Agreement

 

In consideration of my employment by the
Company, or future employment with an affiliate to whom I am transferred (together the “Company”), the compensation
and other benefits to be received by me from the Company, I agree that:

 

1.     Definitions

The term “Confidential
Information” as used in this Agreement includes all business information and records which relate to the Company or to parties
working with the Company under a confidentiality agreement, and which are not known to the public generally, including, but not
limited to, technical notebook records, technical reports, patent applications, machine equipment, computer software, models, process
and product designs including any drawings and descriptions, unwritten knowledge and “know-how”, operating instructions,
training manuals, production and development processes, production or other schedules, customer lists, customer buying records,
product sales records, sales requests, territory listings, market surveys, plans including marketing plans and long-range plans,
salary information, contracts, supplier lists, product costs, policy statements, policy procedures, policy manuals, flowcharts,
computer printouts, program listings, reproductions and correspondence.

 

The term “Invention”
as used in this Agreement includes any discovery, improvement, design or idea, patentable, copywriteable or otherwise, which relates
to any activity or business in which the Company is engaged or any process, equipment, material, product or method (including computer
software) in which the Company has any direct or indirect interest.

 

2.     Inventions

I will disclose promptly to
the Company any Invention conceived, developed or perfected by me, either alone or jointly with another or others, while I am an
employee, whether or not such conception, development or perfection occurs during the hours of my employment.

 

I grant to the Company without
further compensation, all my right, title and interest in and to any such Invention for the sole use and benefit of the Company,
together with all U.S. and foreign patents, trademarks or copyrights that may at any time be granted, and all reissues, renewals
and extensions of such patents, trademarks or copyrights. At the request and expense of the Company, I will at any time do what
the Company reasonably believes to be necessary to assist the Company to vest full right and title to each such Invention in the
Company, enable the Company to obtain and maintain full right and title in any country, prosecute applications for and secure patents
(including their reissue, renewal and extension), trademarks, copyrights and any other form of protection for each such Invention,
and prosecute or defend any interference or opposition which may be declared involving any such application or patent and any litigation
in which the Company may be involved concerning any such Invention. This will include preparing, executing and delivering any written
document, drawings, flowcharts, or computer printouts. The provisions of this section will continue after I stop working for the
Company and shall be binding on my executors, administrators and assigns, unless waived in writing by the Company.

 

3.     Confidential Information

I have not disclosed and will
not disclose to the Company, and I will not use, in the discharge of my duties as an employee of the Company, any trade secret
or confidential or proprietary information belonging to a former employer or other person. The limitation set forth in this section
shall not apply to matters which (a) are or become public knowledge, (b) were previously known to the Company, (c) are subsequently
received by the Company from a third party, or (d) are independently derived by the Company.

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 19 -

     

    

 

I will not, directly or indirectly,
during or at any time after the period of my employment by the Company, use for myself or others, or disclose to others, any Confidential
Information, no matter how such information becomes known to me, unless I first obtain the Company’s written consent.

 

When I leave the Company’s
employ, or at any other time upon request by the Company, I will promptly deliver to the Company all documents and records, including
but not limited to those listed under the definition of Confidential Information, which are in my possession or under my control
and which pertain to the Company, any of its activities or any of my activities while in the course of my employment and all copies
thereof. I will not retain or deliver to any others copies of these documents or records.

 

4.     Non-Competition

I acknowledge and agree that
the Company’s business competes upon a worldwide basis, and that the degree of competition in that business is high. I recognize
that, in my capacity, my responsibilities are global in nature but that there are specific markets in which the Company competes.
I agree that, unless I first obtain the Company’s written consent, I will not during my employment with the Company and for
a period of one (1) year following the termination of my employment (provided, however, that if I am employed by the Company
for less than one (1) year, the post-employment period to which this section applies shall be the greater of six (6) months or
the length of my employment in any capacity), directly or indirectly or through others, individually, or as a member, officer,
director, employee, agent, or investor of any partnership or entity (except ownership of not more than one percent (1%) of the
outstanding publicly traded stock of any company):

 

		(i)	participate in the ownership, management, operation or control of, or work for (as an employee,
consultant or independent contractor) or have any material financial interest in a business competitive with the Company;

 

		(ii)	induce or encourage any employee of the Company to terminate his or her employment with the Company,
or

 

		(iii)	solicit, induce or encourage any person, business or entity which is a supplier of, a purchaser
from, or a contracting party with, the Company to terminate any written or oral agreement, order or understanding with the Company
or to conduct business in a way that results in an adverse impact to the Company.

 

For purposes of this Section
4, a “business competitive with the Company” is the business of  designing, manufacturing, marketing, distributing
and/or selling the (a) specialty engineered products for the thermal/acoustical and filtration/separation markets, sold by
the Company, including air or liquid filtration media, industrial thermal insulating solutions, and automotive thermal and acoustical
barriers and (b) such other products in those industries in which the Company operates, during the last twelve (12) months of my
employment or has taken substantial steps to operate as planned during my employment.

 

I further understand and agree
that the remedy at law for any breach or threatened breach of my agreement not to compete contained in this section would be inadequate
and that any breach or attempted breach would result in irreparable damage to the Company, the monetary amount of which would be
impossible to ascertain. Thus, I agree that in the event of any breach or threatened breach of my agreement not to compete, in
addition to all other available legal or equitable remedies, the Company may obtain injunctive relief to remedy damage caused by
such breach or threatened breach, and that the Company shall be entitled to recover from me its costs and expenses, including reasonable
attorney fees, incurred in remedying such breach or threatened breach.

 

5.     General Terms

I represent and agree that I
have and will assume no obligations to others inconsistent with any of my obligations to the Company under this Agreement. I represent
and agree that the performance of my duties and obligations as an employee of the Company does not, and shall not, breach any agreement
that obligates me to refrain from competing, directly or indirectly, with the business of any other party.

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 20 -

     

    

 

In consideration of my employment,
I agree to conform to the policies of the Company. I understand that my employment is for an indefinite period and can be terminated
at any time, with or without cause or prior notice by either the Company or me. No other representations or agreements have been
made regarding the term or termination of my employment.

 

This Agreement, which is ancillary
to any other agreement I may have with the Company, (a) is intended as the complete and exclusive statement of my agreement with
the Company with respect to its subject matter, (b) shall be binding upon my heirs, executors and administrators, (c) shall be
assignable by the Company to its successors; (d) shall not be modified unless in writing and signed by me and the Company, (e)
shall be governed by and construed in accordance with the law of the State of Connecticut, the Company’s home office state,
and (f) if any part of this Agreement is found invalid by any court, the remainder shall be valid and enforceable in law and equity.

 

I understand that the terms of this confidentiality
covenant are not intended to prevent me from communicating directly with a government agency regarding any potential or pending
investigation, either during or after my employment with the Company.

 

	 	 	 	 	Lydall, Inc.
	 	 	 	 	 
	Employee Name:	Sara A. Greenstein	 	By:	/S/ Chad A. McDaniel
	 	 	 	 	 
	Employee Signature:	/S/ Sara A. Greenstein	 	Title:	SVP, GC & Chief Admin Officer
	 	 	 	 	 
	Date:	October 11, 2019	 	 	 

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 21 -

     

    

 

EXHIBIT B

 

TERMINATION, VOLUNTARY RELEASE AND WAIVER
OF RIGHTS AGREEMENT *

 

I, Sara A. Greenstein, unqualifiedly accept
and agree to the relinquishment of my title, responsibilities and obligations as an employee of Lydall, Inc. (“the Company”),
and concurrently and unconditionally agree to sever my relationship as an employee of the Company, in consideration for the voluntary
payment to me by the Company of the separation benefits set forth in Section __ of the Employment Agreement dated as of October
11, 2019 by and between me and the Company (the “Employment Agreement”), which is made a part hereof.

 

1.       In
exchange for this consideration, which I understand that the Company is not otherwise obligated to provide to me, I voluntarily
agree to waive and forego any and all claims, rights, interests, covenants, contracts, warranties, promises, undertakings, actions,
suits, causes of action, obligations, debts, attorneys’ fees or other expenses, accounts, judgments, fines, fees, losses
and liabilities, of any kind, nature or description, in law, equity or otherwise (collectively, “Claims”) that I may
have against the Company and to release the Company and their respective affiliates, subsidiaries, officers, directors, employees,
representatives, agents, successors and assigns (hereinafter collectively referred to as “Releasees”) from any obligations
any of them may owe to me, accepting the aforestated consideration as full settlement of any monies or obligations owed to me by
Releasees that may have arisen at any time prior to the date of my execution of this Termination, Voluntary Release and Waiver
of Rights Agreement (the “Agreement”), except as specifically provided below in the following paragraph number 2.

 

2.       I
do not waive, nor has the Company asked me to waive, any rights arising exclusively under the Fair Labor Standards Act, except
as such waiver may henceforth be made in a manner provided by law. I do not waive, nor has the Company asked me to waive, any vested
benefits that I may have or that I may have derived from the course of my employment with the Company. I understand that such vested
benefits will be subject to and administered in accordance with the established and usual terms governing same. I do not waive
any rights which may in the future, after the execution of this Agreement, arise exclusively from a substantial breach by the Company
of a material obligation of the Company expressly undertaken in consideration of my entering into this Agreement. I do not waive
any rights that I may have as a stockholder of the Company. I do not waive any rights that I may have under the Indemnification
Agreement (as defined in the Employment Agreement), the Company charter or by-laws, or applicable law, to be indemnified and held
harmless for my acts and omissions to act while an officer or member of the Board of Directors of the Company, or for coverage
as an insured under any applicable contract of directors and officers liability insurance.

 

3.       Except
as set forth in paragraph 2, I do fully, irrevocably and forever waive, relinquish and agree to forego any and all Claims whatsoever,
whether known or unknown, that I may have or may hereafter have against the Releasees or any of them arising out of or by reason
of any cause, matter or thing whatsoever from the beginning of the world to the date hereof, including without limitation any and
all matters relating to my employment with the Company and the cessation thereof and all matters arising under Title VII of the
Civil Rights Act of 1964, 42 U.S.C. § 2000 et seq., the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101
et seq., the Family and Medical Leave Act of 1993, 29 U.S.C. § 2601 et seq., the Age Discrimination in
Employment Act of 1967, 29 U.S.C. § 621 et seq., the Employee Retirement Income Security Act of 1974, 29 U.S.C.
 § 1001 et seq., all as amended, or under any other laws, ordinances, executive orders, regulations or administrative
or judicial case law arising under the statutory or common laws of the United States, the State of Connecticut or any other applicable
county or municipal ordinance.

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 22 -

     

    

 

4.       As
a material inducement to the Company to enter into this Agreement, I, the undersigned, recognize that I may have been privy to
certain confidential, proprietary and trade secret information of the Company which, if known to third parties, could be used in
a manner that would reduce the value of the Company for its shareholders. In order to reduce the risk of that happening, I, the
undersigned, agree that for a period of two (2) years after termination of employment, I, the undersigned, will not, directly or
indirectly, assist, or be part of or have any involvement in, any effort to acquire control of the Company through the acquisition
of its stock or substantially all of its assets, without the prior consent of the Board of Directors of the Company. This provision
shall not prevent the undersigned from owning up to not more than one percent (1%) of the outstanding publicly traded stock of
any company.

 

5.       I
further acknowledge pursuant to the Older Worker’s Benefit Protection Act (29 U.S.C. § 626(f)), I expressly agree that
the following statements are true:

 

a.       The
payment of the consideration described in Section __ of the Employment Agreement is in addition to the standard employee benefits
and anything else of value which the Company owes me in connection with my employment with the Company or the separation of employment.

 

b.       I
have [twenty-one days] days from [date of receipt] to consider and sign this agreement. If I choose to sign this Agreement before
the end of the [twenty-one] day period, that decision is completely voluntary and has not been forced on me by the Company.

 

c.       I
will have seven (7) days after signing the Agreement in which to revoke it, and the Agreement will not become effective or enforceable
until the end of those seven (7) days.

 

d.       I
am now being advised in writing to consult an attorney before signing this Agreement.

 

I acknowledge that I have been given sufficient
time to freely consult with an attorney or counselor of my own choosing and that I knowingly and voluntarily execute this Agreement,
after bargaining over the terms hereof, with knowledge of the consequences made clear, and with the genuine intent to release claims
without threats, duress, or coercion on the part of the Company. I do so understanding and acknowledging the significance of such
waiver.

 

6.       Further,
in view of the above-referenced consideration voluntarily provided to me by the Company, after due deliberation, I agree to waive
any right to further litigation or claim against any or all of the Releasees except as specifically provided in paragraph number
2 above. I hereby agree to indemnify and hold harmless the Releasees and their respective agents or representatives from and against
any and all losses, costs, damages or expenses, including, without limitation, attorneys fees incurred by said parties, or any
of them, arising out of any breach of paragraph 1 or paragraph 3 of this Agreement by me or by any person acting at my direction,
or the fact that any representation made herein by the undersigned was false when made.

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 23 -

     

    

 

7.       As
a material inducement to the Company to enter into this Agreement, I, the undersigned, understand and agree that if I should fail
to comply with the conditions of paragraphs 1, 3 or 4 hereof, all amounts previously paid under this Agreement shall be immediately
forfeited to the Company and that the right or claim to further payments and/or benefits hereunder would likewise be forfeited.

 

8.       As
a further material inducement to the Company to enter into this Agreement, the undersigned provides as follows:

 

First. I represent that I have not
filed any complaints or charges against the Company, or any of the Releasees relating to the relinquishment of my former titles
and responsibilities at the Company or the terms of my employment with the Company and that if any agency or court assumes jurisdiction
of any complaint or charge against the Company or any of the Releasees on behalf of me concerning my employment with the Company,
I understand and agrees that I have, by my knowing and willing execution of this Agreement waived my rights to any form of recovery
or relief against the Company, or any of the Releasees, including but not limited to, attorney’s fees. Provided, however,
that this provision shall not preclude the undersigned from pursuing appropriate legal relief against the Company for redress of
a substantial breach of a material obligation of the Company expressly undertaken in consideration of my entering into this Agreement.

 

Second. I acknowledge and understand
that the consideration for this release shall not be in any way construed as an admission by the Company or any of the Releasees
of any improper acts or any improper employment decisions, and that the Company, specifically disclaims any liability on the part
of itself, the Releasees, and their respective agents, employees, representatives, successors or assigns in this regard.

 

Third. I acknowledge and agree that
this Agreement shall be binding upon me, upon the Company, and upon our respective administrators, representatives, executives,
successors, heirs and assigns and shall inure to the benefit of said parties and each of them.

 

Fourth. I represent, understand and
agree that this Agreement sets forth the entire agreement between the parties hereto, and fully supersedes any and all prior agreements
or understandings between the parties pertaining to the subject matter hereof, except for the confidentiality and non-competition
agreement previously executed by me (a copy of which is attached to the Employment Agreement as Exhibit A and is made a part hereof)
and the Indemnification Agreement entered into by the parties, the terms of which retain their full force and effect, and which
are in no way limited or curtailed by this Agreement.

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 24 -

     

    

 

Fifth. Modification. This Agreement
may not be altered or changed except by an agreement in writing that has been properly executed by the party against whom any waiver,
change, modification or discharge is sought.

 

Sixth. Severability. All provisions
and terms of this Agreement are severable. The invalidity or unenforceability of any particular provision(s) or term(s) of this
Agreement shall not affect the validity or enforceability of the other provisions and such other provisions shall be enforceable
in law or equity in all respects as if such particular invalid or unenforceable provision(s) or term(s) were omitted. Notwithstanding
the foregoing, the language of all parts of this Agreement shall, in all cases, be construed as a whole, according to its fair
meaning, and not strictly for or against any of the parties.

 

Seventh. Mutual No Disparagement.
The Company and undersigned affirm their respective rights and obligations pursuant to Section 14.4 of the Employment Agreement.

 

Eighth. Confidentiality. The
Company and the undersigned agree to refrain from disclosing to third parties and to keep strictly confidential all details of
this Agreement and any and all information relating to its negotiation, except as necessary to each party’s accountants or
attorneys.

 

Ninth.       Termination
of Agreement. Notwithstanding anything to the contrary in this Agreement, this Agreement may be terminated by the Company and
all further payment obligations of the Company will cease, if: (a) the undersigned is terminated for Cause prior to the undersigned’s
separation date; or (b) facts are discovered after the undersigned’s separation date that would have supported a termination
for Cause had such facts been discovered prior to the undersigned’s separation date. “Cause” has the meaning
defined in the Employment Agreement.

 

[Signature page follows]

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 25 -

     

    

 

AFFIRMATION OF RELEASOR

 

I, Sara A. Greenstein, warrant that I am
competent to execute this Termination, Voluntary Release and Waiver of Rights Agreement and that I accept full responsibility thereof.

 

I, Sara A. Greenstein, warrant that I have
had the opportunity to consult with an attorney of my choosing with respect to this matter and the consequences of my executing
this Termination, Voluntary Release and Waiver of Rights Agreement.

 

I, Sara A. Greenstein, have read this Termination,
Voluntary Release and Waiver of Rights Agreement carefully and I fully understand its terms. I execute this document voluntarily
with full and complete knowledge of its significance.

 

Executed this       
 day of                        
, 20          at                                                         .

 

 

	 	 
		SARA A. GREENSTEIN

 

Accepted and agreed by the Company:

 

	LYDALL,
INC.	 	 
	 	 	 
	 	 	 
	By:  	 	 	Date:_____________,
20__
	 	 	 
	Its:	 	 	 

 

* Note to Draft:  The Parties
agree that the Company may revise this form of release to reflect changes in law, additional statutes or claims, benefits, or your
circumstances, so that the Company receives the benefit of the most complete release of claims that is legally permissible and
may also change the timing, if required to obtain such release.  This endnote is part of the form of release agreement and
is to be removed only when the Company finalizes this Termination, Voluntary Release and Waiver of Rights Agreement.

 

    	Greenstein
                                         – Employment Agreement (2019)	 

 
- 26 -Exhibit 10.2

  

INDEMNIFICATION AGREEMENT

 

This Agreement, made and entered into this
11th day of October, 2019 (“Agreement”), by and between Lydall, Inc., a Delaware corporation (“Company”),
and Sara A. Greenstein (“Indemnitee”):

 

WHEREAS, highly competent persons are becoming
more reluctant to serve publicly-held corporations as directors or in other capacities unless they are provided with adequate protection
through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their
service to and activities on behalf of the corporation; and

 

WHEREAS, the current impracticability of
obtaining adequate insurance and the uncertainties relating to indemnification have increased the difficulty of attracting and
retaining such persons;

 

WHEREAS, the Board of Directors of the Company
has determined that the inability to attract and retain such persons is detrimental to the best interests of the Company’s
stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in
the future; and

 

WHEREAS, it is reasonable, prudent and necessary
for the Company contractually to obligate itself to indemnify such persons to the fullest extent permitted by applicable law so
that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; and

 

WHEREAS, Indemnitee is willing to serve,
continue to serve and to take on additional service for or on behalf of the Company on the condition that she be so indemnified;

 

NOW, THEREFORE, in consideration of the
premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

 

Section 1. Services by Indemnitee.
Indemnitee agrees to serve as a director and officer of the Company and of such of the Company’s subsidiaries as the Company
may designate. Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation
or any obligation imposed by operation of law), in which event, without limiting the obligations of the Company under this Agreement
with respect to the Indemnitee’s service while in such position, the Company shall have no obligation under this Agreement
to continue Indemnitee in such position.

 

Section 2. Indemnification - General.
The Company shall indemnify, and advance Expenses (as hereinafter defined) to, Indemnitee (a) as provided in this Agreement and
(b) to the fullest extent permitted by applicable law in effect on the date hereof and as amended from time to time. The rights
of Indemnitee provided under the preceding sentence shall include, but shall not be limited to, the rights set forth in the other
Sections of this Agreement.

 

    1

     

    

 

Section 3. Proceedings Other than Proceedings
by or in the Right of the Company. Indemnitee shall be entitled to the rights of indemnification provided in this Section 3
if, by reason of her Corporate Status (as hereinafter defined), she is, or is threatened to be made, a party to any threatened,
pending, or completed Proceeding (as hereinafter defined), other than a Proceeding by or in the right of the Company. Pursuant
to this Section 3, Indemnitee shall be indemnified against all expenses, judgements, penalties, fines, and amounts paid in settlement
actually and reasonably incurred by her or on her behalf in connection with such Proceeding or any claim, issue or matter therein,
if she acted in good faith and in a manner be reasonably believed to be in or not opposed to the best interests of the Company
and, with respect to any criminal Proceeding, had no reasonable cause to believe her conduct was unlawful.

 

Section 4. Proceedings by or in the Right
of the Company. Indemnitee shall be entitled to the rights of indemnification provided in this Section 4 if, by reason of her
Corporate Status, she is, or is threatened to be made, a party to any threatened, pending or completed Proceeding brought by or
in the right of the Company to procure a judgment in its favor. Pursuant to this Section, Indemnitee shall be indemnified against
all Expenses actually and reasonably incurred by her or on her behalf in connection with such Proceeding if she acted in good faith
and in a manner she reasonably believed to be in or not opposed to the best interests of the Company; provided, however, that if
applicable law so provides, no indemnification against such Expenses shall be made in respect of any claim, issue or matter in
such Proceeding as to which Indemnitee shall have been adjudged to be liable to the Company unless and to the extent that the Court
of Chancery of the State of Delaware, or the court in which such Proceeding shall have been brought or is pending, shall determine
that such indemnification may be made.

 

Section 5. Indemnification for Expenses
of a Party Who is Wholly or Partly Successful. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee
is, by reason of her Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding, she shall be
indemnified against all Expenses actually and reasonably incurred by her or on her behalf in connection therewith. If Indemnitee
is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all
claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all expenses actually and reasonably
incurred by her or on her behalf in connection with each successfully resolved claim, issue or matter. For purposes of this Section
and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice,
shall be deemed to be a successful result as to such claim, issue or matter.

 

Section 6. Indemnification for Expenses
of a Witness. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of her Corporate
Status, a witness in any Proceeding to which Indemnitee is not a party, she shall be indemnified against all Expenses actually
and reasonably incurred by her or on her behalf in connection therewith.

 

    2

     

    

 

Section 7. Advancement of Expenses.
The Company shall advance all reasonable Expenses incurred by or on behalf of Indemnitee in connection with any Proceeding within
ten days after the receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from
time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence
the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by an undertaking by or on behalf of Indemnitee
to repay any Expenses advanced if it shall ultimately be determined that Indemnitee is not entitled to be indemnified against such
Expenses.

 

Section 8. Procedures for Determination
of Entitlement to Indemnification.

 

(a)       To
obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith
such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and
to what extent Indemnitee is entitled to indemnification. The Secretary of the Company shall, promptly upon receipt of such a request
for indemnification, advise the Board of Directors in writing that Indemnitee has requested indemnification.

 

(b)       Upon
written request by Indemnitee for indemnification pursuant to the first sentence of Section 8(a) hereof, a determination, if required
by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case; (i)if a Change in
Control (as hereinafter defined) shall be made in the Independent Counsel (as hereinafter defined) in a written opinion to the
Board of Directors, a copy of which shall be delivered to Indemnitee; or (ii) if a Change of Control shall not have occurred, (A)
by the Board of Directors by a majority vote of a quorum consisting of Disinterested Directors (as hereinafter defined), or (B)
if a quorum of the Board of Directors consisting of Disinterested Directors is not obtainable or, even if obtainable, such quorum
of Disinterested Directors so directs, by Independent Counsel in a written opinion to the Board of Directors, a copy of which shall
be delivered to Indemnitee or (C) if so directed by the Board of Directors, by the stockholders of the Company; and, if it is so
determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such
determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s
entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation
or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and
reasonably necessary to such determination. Any costs or expenses (including attorneys’ fees and disbursements) incurred
by Indemnitee in so cooperating with this person, persons or entity making such determination shall be borne by the Company (Irrespective
of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to
hold Indemnitee harmless therefrom.

 

    3

     

    

 

(c)       In
the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 8(b) hereof,
the Independent Counsel shall be selected as provided in this Section 8(c). If a Change of Control shall not have occurred, the
Independent Counsel shall be selected by the Board of Directors, and the Company shall give written notice to Indemnitee advising
her of the identity of the Independent Counsel so selected. If a Change of Control shall have occurred, the Independent Counsel
shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board of Directors, in which
event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the identity
of the Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within 10 days after
such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written
objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent
Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 17 of this Agreement,
and the objection shall set forth with particularity the factual basis of such assertion. If such written objection is so made
and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is
withdrawn or a court has determined that such objection is without merit. If, within 20 days after submission by Indemnitee of
a written request for indemnification pursuant to Section 8(a) hereof, no Independent Counsel shall have been selected and not
objected to, either the Company or Indemnitee may petition the Court of Chancery of the State of Delaware or other court of competent
jurisdiction for resolution of any objection which shall have been made the Company or Indemnitee to the other’s selection
of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the Court of by such other person
as the Court shall designate, and the person with respect to whom all objections are so resolved or the person so appreciated shall
act as Independent Counsel under Section 8(b) hereof. The Company shall pay any and all reasonable fees and expenses of Independent
Counsel incurred by such Independent Counsel in connection with acting pursuant to Section 8(b) hereof, and the Company shall pay
all reasonable fees and expenses incident to the procedures of this Section 8(c), regardless of the manner in which such Independent
Counsel was selected or appointed. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 10(a)(iii)
of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject
to the applicable standards of professional conduct then prevailing).

 

Section 9. Presumptions and Effect
of Certain Proceedings.

 

(a)       If
a Change of Control shall have occurred, in making a determination with respect to entitlement to indemnification hereunder, the
person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement
if Indemnitee has submitted a request for indemnification in accordance with Section 8(a) of this Agreement, and the Company shall
have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any determination
contrary to that presumption.

 

(b)       The
termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement of conviction, or upon a
plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely
affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner
which she reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding,
that Indemnitee had reasonable cause to believe that her conduct was unlawful.

  

    4

     

    

 

Section 10. Remedies of
Indemnitee.

 

(a)       In
the event that (i) a determination is made pursuant to Section 8 of this Agreement that Indemnitee is not entitled to indemnification
under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 7 of this Agreement, (iii) no determination
of entitlement to indemnification shall have been made pursuant to Section 8(b) of this Agreement within 90 days after receipt
by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 5 or 6 of this
Agreement within ten (10) days after receipt by the Company of a written request therefor, or (v) payment of indemnification is
not made within 10 (10) days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall
be entitled to an adjudication in an appropriate court of the State of Delaware, or in any other court of competent jurisdiction,
of her entitlement to such indemnification or advancement of Expenses. Alternatively, Indemnitee, at her option, may seek an award
in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration
Association. Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration within 180 days following
the data on which Indemnitee first has the right to commence such proceeding pursuant to this Section 10(a); provided, however,
that the foregoing clause shall not apply in respect of a proceeding brought by Indemnitee to enforce her rights under Section
5 of this Agreement.

 

(b)       In
the event that a determination shall have been made pursuant to Section 8(b) of this Agreement that Indemnitee is not entitled
to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 10 shall be conducted in all respects
as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination.
If a Change of Control shall have occurred, in any judicial proceeding or arbitration commenced pursuant to this Section 10 the
Company shall have the burden of proving that Indemnitee is not entitled to indemnification or advancement of Expenses, as the
case may be.

 

(c)       If
a determination shall have been made pursuant to Section 8(b) of this Agreement that Indemnitee is entitled to indemnification,
the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 10,
absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification
under applicable law.

 

    5

     

    

 

(d)       In
the event that Indemnitee, pursuant to this Section 10, seeks a judicial adjudication of or an award in arbitration to enforce
her rights under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the Company,
and shall be indemnified by the Company against, any and all expenses (of the types described in the definition of Expenses in
Section 17 of this Agreement) actually and reasonably incurred by her in such judicial adjudication or arbitration, but only if
she prevails therein. If it shall be determined in said judicial adjudication or arbitration that Indemnitee is entitled to receive
part but not all of the indemnification or advancement of expenses sought, the expenses incurred by Indemnitee in connection with
such judicial adjudication or arbitration shall be appropriately prorated.

 

Section 11. Non-Exclusivity; Survival of
Rights; Insurance; Subrogation.

 

(a)       The
rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of
any other rights to which Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation, the By-Laws,
any agreement, a vote of stockholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of this Agreement
or of any provision hereof shall limit or restrict any right of Indemnitee in her Corporate Status prior to such amendment, alteration
or repeal.

 

(b)       To
the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees,
or agents of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise
which such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance with
its or their terms to the maximum extent of the coverage available for any such director, officer, employee or agent under such
policy or policies.

 

(c)       In
the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnities, who shall execute all papers required and take all action necessary to secure such rights, including
execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

 

(d)       The
Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the
extent that Indemnities has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

 

Section 12. Duration of
Agreement. This Agreement shall continue until and terminate upon the later of: (a) 10 years after the date that
Indemnitee shall have ceased to serve as a director, officer, employee, or agent of the Company or of any other corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise which Indemnitee served at the request of the
Company; or (b) the final termination of any Proceeding then pending in respect of which Indemnitee is granted rights of
indemnification or advancement of expenses hereunder and of any proceeding commenced by Indemnitee pursuant to Section 10 of
this Agreement relating thereto. This Agreement shall be binding upon the Company and its successors and assigns and shall
inure to the benefit of Indemnitee and her heirs, executors and administrators.

 

    6

     

    

 

Section 13. Severability. If
any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason
whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without
limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or
unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby;
and (b) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any
Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself
invalid, illegal or unenforceable) shall be construed to as to give effect to the intent manifested thereby.

 

Section 14. Exception to Right of
Indemnification or Advancement of Expenses. Notwithstanding any other provision of this Agreement, Indemnitee shall not
be entitled to indemnification or advancement of Expenses under this Agreement with respect to any Proceeding brought by
Indemnitee, or any claim therein prior to a Change in Control, unless the bringing of such Proceeding or making of such claim
shall have been approved by the Board of Directors.

 

Section 15. Identical Counterparts.
This agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but
all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability
is sought needs to be produced to evidence the existence of this Agreement.

 

Section 16. Headings. The
headings of the paragraphs of this Agreement re inserted for convenience only and shall not be deemed to constitute part of
this Agreement or to affect the construction thereof.

 

Section 17. Definitions.

 

(a)       The
phrase “Change of Control,” as used in this Agreement, shall mean i) an acquisition of the Company by means of a merger
or consolidation or purchase of substantially all of its assets if and when incident thereto (A) the composition of the Board of
Directors of the Company (the “Board”) or its successor changes so that a majority of the Board is not comprised of
individuals who were members of the board immediately prior to such merger, consolidation or purchase of assets or (B) the stockholders
of the Company acquire a right to receive, in exchange for or upon surrender a majority of their stock, cash or other securities
or a combination of the two; and/or ii) the acquisition by a person (as that term is hereafter defined) of the voting rights with
respect to 25 percent or more of the outstanding Common Stock of the Company if such person was not an officer or director of the
Company on the date of this Agreement; and/or iii) the election or appointment to the Board of any director or directors whose
appointment or election or nomination for election was not approved by a vote of at least a majority of the directors then still
in office who were either directors on the date hereof or whose election, appointment or nomination for election was previously
so approved.

 

    7

     

    

 

(b)       “Corporate
Status” describes the status of a person who is or was a director, officer, employee or agent of the Company or of any other
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person is or was serving at
the request of the Company.

 

(c)       “Disinterested
Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification
is sought by Indemnitee.

 

(d)       “Expenses”
shall include all reasonable attorney’s fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel
expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements
or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating,
or being or preparing to be a witness in a Proceeding.

 

(e)       “Independent
Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently
is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either
such party, or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the
foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional
conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement.

 

(f)       “Proceeding”
includes any action, suit, arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any other
proceeding, whether civil, criminal, administrative, or investigative, except one (i) initiated by an Indemnitee pursuant to Section
10 of this Agreement to enforce her rights under this Agreement or (ii) pending on or before the date of this Agreement.

 

Section 18. Modification and Waiver. No
supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties
hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

 

    8

     

    

 

Section 19. Notice by
Indemnitee. Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation,
subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to
indemnification or advancement of Expenses covered hereunder.

 

Section 20. Notices. All
notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given
if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed,
or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is
so mailed:

 

(a)      If
to Indemnitee, to:

Sara A. Greenstein

Address: At the most recent address shown

on the payroll records of the Company

 

(b)      If
to the Company to:

Lydall, Inc.

P.O. Box 151

One Colonial Road

Manchester, CT 06045-0151

Attn: General Counsel (on behalf of Board
of Directors)

 

or to such other address as may have been furnished to Indemnitee
by the Company or to the Company by Indemnitee, as the case may be.

 

Section 21. Governing Law. The
parties agree that this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State
of Delaware.

 

Section 22. Miscellaneous. Use
of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate.

   

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IN WITNESS WHEREOF, the parties hereto have
executed this Indemnification Agreement on the day and year first written.

 

	 	LYDALL, INC.	 	 
	 	 	 	 
	          		 	 
	 	By:	/S/
Marc T. Giles	 	October 11, 2019
	 	 	Marc T. Giles	 	Date
	 	 	Chairman of the Board	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	/S/ Sara A. Greenstein	 	October 11, 2019
	 	 	Sara A. Greenstein	 	Date

 

    10

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