Document:

Articles Supplementary

 Exhibit 4.1 
 FEDERAL REALTY INVESTMENT TRUST 
 ARTICLES SUPPLEMENTARY 
 ESTABLISHING AND FIXING THE RIGHTS AND 
 PREFERENCES OF A SERIES OF PREFERRED SHARES 
 Federal Realty Investment Trust, a Maryland real estate investment trust (the
“Trust”), certifies to the State Department of Assessments and Taxation of the State of Maryland that: 
 FIRST: Under a
power contained in Article VI of the Trust’s Declaration of Trust (the “Declaration of Trust”) and in accordance with Section 2-208(b) of the Maryland General Corporation Law, the Board of Trustees (the “Board”)
classified and designated 399,896 Preferred Shares (as defined in the Declaration of Trust) as “5.417% Series 1 Cumulative Convertible Preferred Shares of Beneficial Interest”, with the preferences, conversion and other rights, voting
powers, restrictions, limitations as to distributions, qualifications and terms and conditions of shares as follows: 
 (1)
Definitions. In these Articles Supplementary, the following terms shall have the following meanings: 
 (a) “Board” or
“Board of Trustees” shall mean the Board of Trustees of the Trust or any committee authorized by the Board of Trustees to perform any of its responsibilities with respect to the Series 1 Preferred Shares. 
 (b) “Business Day” shall mean any day other than a Saturday, Sunday or day on which state or federally chartered banking institutions in New
York City, New York are not required to be open. 
 (c) “Capital Gains Amount” shall have the meaning set forth in
Section 4(d). 
 (d) [Intentionally Omitted.] 
 (e) “Code” shall mean the Internal Revenue Code of 1986, as amended. 
 (f) “Common
Shares” shall mean the common shares of beneficial interest of the Trust, par value $0.01 per share. 
 (g) “Constituent
Person” shall have the meaning set forth in Section 7(f). 
 (h) “Conversion Price” shall have the meaning set forth in
Section 7(e). 
 (i) “Current Market Price” of publicly traded common shares or any other class of shares of beneficial
interest or other security of the Trust or any other issuer for any day shall mean the last reported sales price, regular way, on such day or, if no sale takes place on such day, the average of the reported closing bid and asked prices on such day,
regular way, in either case as reported on the New York Stock Exchange (“NYSE”) or, if such security is not listed or admitted for trading on the NYSE, on the principal national securities exchange on which such security is listed or
admitted for trading or, if not listed or admitted for trading on any national securities exchange, the average of the closing bid and asked 

 
prices on such day in the over-the-counter market as reported by the National Association of Securities Dealers (NASD) or, if bid and asked prices for such
security on such day shall not have been reported by the NASD, the average of the bid and asked prices on such day as furnished by any NYSE member firm regularly making a market in such security and selected for such purpose by the Chief Executive
Officer of the Trust or the Board. 
 (j) “Dividend Payment Date” shall mean
(i) the date on which a regular, quarterly dividend (excluding any special or other extraordinary dividends) is paid on the Common Shares or, if no regular, quarterly dividend is paid on the Common Shares in respect of a given Dividend Period,
then (ii) the fifteenth (15th) calendar day (or, if such day is not a Business Day, the next Business Day
thereafter) of the month following the end of the applicable Dividend Period, commencing on the first Dividend Payment Date occurring after April 1, 2007. 
 (k) “Dividend Periods” shall mean quarterly dividend periods commencing on the
first (1st) day of each calendar quarter of each year and ending on and including the last day of each calendar
quarter of each year (other than the initial Dividend Period, which shall commence on the Issue Date and end on the last day of the calendar quarter in which the Issue Date occurs). 
 (l) “Elevated Price Level” shall have the meaning set forth in Section 7(b). 
 (m) “Fair Market Value” shall mean the average of the daily Current Market Prices of a Common Share during the five consecutive Trading Days
selected by the Trust commencing not more than 20 Trading Days before, and ending not later than, the earlier of the day in question and the day before the “ex date” with respect to the issuance or distribution requiring such computation.
The term “ex date” when used with respect to any issuance or distribution, means the first day on which the Common Shares trade regular way, without the right to receive such issuance or distribution, on the exchange or in the market, as
the case may be, used to determine that day’s Current Market Price. 
 (n) “Initial Mandatory Conversion Trigger Price” shall
mean $115.50. 
 (o) “Initial Optional Conversion Price” shall mean $104.69. 
 (p) “Issue Date” shall mean the first date on which the pertinent Series 1 Preferred Shares are issued and sold. 
 (q) “Junior Shares” shall mean the Common Shares and any other class or series of shares of beneficial interest of the Trust now or hereafter
issued and outstanding over which the Series 1 Preferred Shares has preference or priority in the payment of dividends or in the distribution of assets on any liquidation, dissolution or winding up of the Trust. 
 (r) “Liquidation Price” shall mean twenty-five dollars ($25.00) per Series 1 Preferred Share. 
 (s) “Mandatory Conversion Date” shall have the meaning set forth in Section 7(b). 
 (t) “Mandatory Conversion Trigger Price” shall have the meaning set forth in Section 7(e). 
 (u) “Mandatory Conversion Notice” shall have the meaning set forth in Section 7(b). 
 (v) “Non-Electing Share” shall have the meaning set forth in Section 7(f). 
  

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 (w) “Optional Conversion Date” shall have the meaning set forth in Section 7(a).

 (x) “Optional Conversion Notice” shall have the meaning set forth in Section 7(a). 
 (y) “Optional Conversion Price” shall have the meaning set forth in Section 7(e). 
 (z) “Parity Shares” shall have the meaning set forth in Section 3(b). 
 (aa) “Preferred Shares” shall mean the preferred shares of the Trust, $.01 par value per share. 
 (bb) “Series 1 Preferred Shares” shall have the meaning set forth in Section 2. 
 (cc) “Set apart for payment” shall be deemed to include, without any action other than the following, the recording by the Trust in its
accounting ledgers of any accounting or bookkeeping entry which indicates, pursuant to a declaration of dividends or other distribution by the Board of Trustees, the allocation of funds to be so paid on any series or class of shares of beneficial
interest of the Trust; provided, however, that if any funds for any class or series of Junior Shares or any class or series of shares of beneficial interest ranking on a parity with the Series 1 Preferred Shares as to the payment of dividends are
placed in a separate account of the Trust or delivered to a disbursing, paying or other similar agent, then “set apart for payment” with respect to the Series 1 Preferred Shares shall mean placing such funds in such separate account or
delivering such funds to a disbursing, paying or other similar agent. 
 (dd) “Total Dividends” shall have the meaning set forth in
Section 4(c). 
 (ee) “Trading Day” shall mean any day on which the securities in question are traded on the New York
Stock Exchange, or if such securities are not listed or admitted for trading on the NYSE, on the principal national securities exchange on which such securities are listed or admitted, or if not listed or admitted for trading on any national
securities exchange, in the applicable securities market in which the securities are traded. 
 (ff) “Transaction” shall have the
meaning set forth in Section 7(f). 
 (gg) “Transfer Agent” shall mean American Stock Transfer & Trust
Company, or such other agent or agents of the Trust as may be designated by the Board of Trustees or their designee as the transfer agent, registrar and dividend disbursing agent for the Series 1 Preferred Shares. 
 (2) Designation and Number. A series of Preferred Shares, designated the “5.417% Series 1 Cumulative Convertible Preferred Shares of
Beneficial Interest” (the “Series 1 Preferred Shares”), is hereby established. The number of Series 1 Preferred Shares shall be 399,896. 
 (3) Rank. Any class or series of shares of beneficial interest of the Trust shall be deemed to rank: 
 (a) prior to the Series 1 Preferred Shares, as to the payment of dividends and as to distribution of assets upon liquidation, dissolution or winding up, if the holders of such class or series shall be entitled to the receipt of dividends or
of amounts distributable upon liquidation, dissolution or winding up, as the case may be, in preference or priority to the holders of Series 1 Preferred Shares; 
  

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 (b) on a parity with the Series 1 Preferred Shares, as to the payment of dividends and as to distribution
of assets upon liquidation, dissolution or winding up, whether or not the dividend rates, dividend payment dates or redemption or liquidation prices per share thereof be different from those of the Series 1 Preferred Shares, if the holders of such
class or series of shares, which shall include the Series 1 Preferred Shares, shall be entitled to the receipt of dividends and of amounts distributable upon liquidation, dissolution or winding up in proportion to their respective amounts of accrued
and unpaid dividends per share or liquidation preferences, without preference or priority one over the other (“Parity Shares”); and 
 (c) junior to the Series 1 Preferred Shares, as to the payment of dividends or as to the distribution of assets upon liquidation, dissolution or winding up, if such shares shall be Junior Shares. 
 (4) Dividends. 
 (a) The holders of
Series 1 Preferred Shares shall be entitled to receive, when, as and if authorized by the Board of Trustees out of funds legally available for that purpose, cumulative, preferential dividends payable in cash at the rate of 5.417% of the Liquidation
Price per year (an amount of $1.35425 per annum per share). Such dividends shall begin to accrue and shall be fully cumulative from the Issue Date, whether or not the Trust has earnings, and whether or not in any Dividend Period or Periods there
shall be funds of the Trust legally available for the payment of such dividends, and shall be payable quarterly, when, as and if authorized by the Board of Trustees, in arrears, on Dividend Payment Dates, commencing on the first Dividend Payment
Date occurring after April 1, 2007. Such dividends shall be payable in arrears to the holders of record of Series 1 Preferred Shares, as they appear on the stock records of the Trust at the close of business on the record date as shall be fixed
by the Board of Trustees. Accrued and unpaid dividends for any past Dividend Periods may be declared and paid on any date and for such interim periods, without reference to any regular Dividend Payment Date, to holders of record on such date, as may
be fixed by the Board of Trustees. Any dividend payment made on the Series 1 Preferred Shares shall first be credited against the earliest accrued but unpaid dividend due with respect to the Series 1 Preferred Shares which remains payable.

 (b) The amount of dividends referred to in Section 4(a) payable for each full Dividend Period for the Series 1 Preferred
Shares shall be computed by dividing the annual dividend rate by four, except that the amount of dividends payable for the initial Dividend Period, and for any Dividend Period shorter than a full Dividend Period, shall be computed for the Series 1
Preferred Shares on the basis of the actual number of days in such Dividend Period. Holders of Series 1 Preferred Shares shall not be entitled to any dividends, whether payable in cash, property or shares of stock, in excess of cumulative dividends,
as herein provided, on the Series 1 Preferred Shares. No interest, or sum of money in lieu of interest, shall be payable in respect of any dividend payment or payments on the Series 1 Preferred Shares that may be in arrears. 
 (c) If, for any taxable year, the Trust elects to designate as “capital gain dividends” (as defined in Section 857 of the Code) any
portion (the “Capital Gains Amount”) of the total dividends (within the meaning of the Code) paid or made available for the year to holders of all classes of shares of beneficial interest (the “Total Dividends”), then the portion
of the Capital Gains Amount that shall be allocated to holders of Series 1 Preferred Shares shall be in the same portion that the Total Dividends paid or made available to the holders of Series 1 Preferred Shares for the year bears to the Total
Dividends. 
 (d) So long as any Series 1 Preferred Shares are outstanding, no dividends, except as described in the immediately following
sentence, shall be declared or paid or set apart for payment on any class or series of Parity Shares for any period unless full cumulative dividends have been or contemporaneously are declared and paid or declared and a sum sufficient for the
payment thereof set 

  

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apart for such payment on the Series 1 Preferred Shares for all Dividend Periods terminating on or prior to the dividend payment date for such class or
series of Parity Shares. When dividends are not paid in full or a sum sufficient for such payment is not set apart, as aforesaid, all dividends declared upon Series 1 Preferred Shares and all dividends declared upon any other class or series of
Parity Shares shall be declared ratably in proportion to the respective amounts of dividends accumulated and unpaid on the Series 1 Preferred Shares and accumulated and unpaid on such Parity Shares. 
 (e) So long as any Series 1 Preferred Shares are outstanding, no dividends (other than dividends or distributions paid solely in shares of, or options,
warrants or rights to subscribe for or purchase shares of, Junior Shares) shall be declared or paid or set apart for payment or other distribution declared or made upon Junior Shares, nor shall any Junior Shares be redeemed, purchased or otherwise
acquired (other than a redemption, purchase or other acquisition of Common Shares made for purposes of any employee incentive or benefit plan of the Trust or any subsidiary) for any consideration (or any moneys be paid to or made available for a
sinking fund for the redemption of any such shares) by the Trust, directly or indirectly (except by conversion into or exchange for shares of Junior Shares), unless in each case (i) the full cumulative dividends on all outstanding Series 1
Preferred Shares and any other Parity Shares of the Trust shall have been or contemporaneously are declared and paid or declared and set apart for payment for all past Dividend Periods with respect to the Series 1 Preferred Shares and all past
dividend periods with respect to such Parity Shares and (ii) sufficient funds shall have been or contemporaneously are declared and paid or declared and set apart for payment of the dividend for the current Dividend Period with respect to the
Series 1 Preferred Shares and the current dividend period with respect to such Parity Shares. 
 (f) No dividends on Series 1 Preferred
Shares shall be authorized by the Board of Trustees or paid or set apart for payment by the Trust at such time as the terms and provisions of any agreement of the Trust, including any agreement relating to its indebtedness, prohibits such
authorization, payment or setting apart for payment or provides that such authorization, payment or setting apart for payment would constitute a breach thereof or a default thereunder, or if such authorization or payment shall be restricted or
prohibited by law. 
 (5) Liquidation Preference. 
 (a) In the event of any liquidation, dissolution or winding up of the Trust, whether voluntary or involuntary, before any payment or distribution of the assets of the Trust (whether capital or surplus) shall be made
to or set apart for the holders of Junior Shares, the holders of the Series 1 Preferred Shares shall be entitled to receive the Liquidation Price per share of Series 1 Preferred Shares plus an amount equal to all dividends (whether or not earned or
declared) accrued and unpaid thereon to the date of final distribution to such holders; but such holders shall not be entitled to any further payment. If, upon any liquidation, dissolution or winding up of the Trust, the assets of the Trust, or
proceeds thereof, distributable among the holders of the Series 1 Preferred Shares shall be insufficient to pay in full the preferential amount aforesaid and liquidating payments on any other shares of any class or series of Parity Shares, then such
assets, or the proceeds thereof, shall be distributed among the holders of the Series 1 Preferred Shares and any such other Parity Shares ratably in accordance with the respective amounts that would be payable on such Series 1 Preferred Shares and
any such other Parity Shares if all amounts payable thereon were paid in full. For the purposes of this Section 5: (i) a consolidation or merger of the Trust with one or more corporations, real estate investment trusts or other
entities, (ii) a sale, lease or transfer of all or substantially all of the Trust’s assets or (iii) a statutory share exchange shall not be deemed to be a liquidation, dissolution or winding up, voluntary or involuntary, of the Trust.

 (b) Subject to the rights of the holders of shares of any series or class of beneficial interest ranking on a parity with or prior to the
Series 1 Preferred Shares upon liquidation, dissolution or 

  

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winding up, upon any liquidation, dissolution or winding up of the Trust, after payment shall have been made in full to the holders of the Series 1 Preferred
Shares, as provided in this Section 5, any other series or class of Junior Shares shall, subject to the respective terms and provisions (if any) applying thereto, be entitled to receive any and all assets remaining to be paid or
distributed, and the holders of the Series 1 Preferred Shares shall not be entitled to share therein. 
 (6) Voting Rights. The Series
1 Preferred Shares shall have no voting rights. 
 (7) Conversion. 
 (a) Holder Conversion Rights. 
 (1)
Subject to the limitations set forth in Section 7(a)(4), holders of Series 1 Preferred Shares shall have the right, at such holder’s option at any time after the Issue Date, to convert such shares into a number of fully paid and
nonassessable Common Shares determined by dividing (A) the product obtained by multiplying: (i) the number of Series 1 Preferred Shares being converted by (ii) the Liquidation Price; by (B) the Optional Conversion Price as in
effect immediately prior to the close of business on the Optional Conversion Date (defined below). All dividends payable on any Series 1 Preferred Shares that are converted shall cease to accrue on the Optional Conversion Date. 
 (2) Any holder of Series 1 Preferred Shares may exercise its optional right to convert to Common Shares by delivering an irrevocable written notice in
the form attached hereto as Exhibit A (the “Optional Conversion Notice”) by first class mail, postage prepaid, to the Trust at 1626 East Jefferson Street, Rockville, Maryland 20852, Attention: Chief Accounting Officer.

 (3) Within five (5) Business Days after receipt of an Optional Conversion Notice from a holder of Series 1 Preferred Shares, the
Trust shall establish a date for closing the conversion (“Optional Conversion Date”) which date shall not be more than fifteen (15) days after the date of the Optional Conversion Notice; provided, however, if the Trust receives the
Optional Conversion Notice more than seven (7) days after the date thereof, then the Trust shall be entitled to extend the Optional Conversion Date for the number of days after such seven-day period that the Trust received the Optional
Conversion Notice. Also within five (5) Business Days after receipt of an Optional Conversion Notice from a holder of Series 1 Preferred Shares, the Trust shall deliver instructions to the Transfer Agent to retire the Series 1 Preferred Shares
being converted, reflect such retirement on the books and records of the Trust, issue the number of Common Shares to be issued to the converting holder as a result of such conversion, and reflect such issuance on the books and records of the Trust,
in each case whether or not a certificate representing the Common Shares has been or will be issued and delivered to the converting holder as of such date. 
 (4) Except as may be approved by the Trust in writing in its sole and absolute discretion, the right for holders to convert Series 1 Preferred Shares to Common Shares shall be subject to the following restrictions and
limitations: (A) no conversion shall result in a holder and any related party, after giving effect to the conversion, owning Common Shares of the Trust in excess of the ownership limits specified in the Trust’s Declaration of Trust as in
effect on the Optional Conversion Date after taking into account the actual and constructive stock ownership rules of the Code and any other additional Common Shares of the Trust which such holder has acquired or intends to acquire prior to the
closing of such conversion; (B) no holder of Series 1 Preferred Shares may effect a conversion for Series 1 Preferred Shares having an aggregate value (determined by multiplying the number of Series 1 Preferred Shares to be converted by the
Liquidation Price) of less than $50,000, or, if such holder holds less than $50,000 of Series 1 Preferred Shares, less than all of the Series 1 Preferred Shares held by such 

  

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holder; (C) no holder may effect a conversion more than three (3) times during any consecutive twelve-month period; and (D) no holder may
effect a conversion within ninety (90) days following the closing of any public offering of Common Shares by the Trust. 
 (b) Trust
Conversion Rights. 
 (1) The Trust shall have the right, at any time and from time to time, after the Issue Date and after the Elevated
Price Level (defined below) has occurred, subject to the provisions of this Section 7(b), to convert all or any outstanding Series 1 Preferred Shares into a number of fully paid and nonassessable Common Shares determined by dividing
(A) the product obtained by multiplying: (i) the number of Series 1 Preferred Shares being converted by (ii) the Liquidation Price; by (B) the Optional Conversion Price as in effect immediately prior to the close of business on
the Mandatory Conversion Date (defined below). All dividends payable on any Series 1 Preferred Shares that are converted shall cease to accrue on the Mandatory Conversion Date. 
 (2) The “Elevated Price Level” shall mean any time at which the trailing 200 consecutive Trading Day average closing price of the Common
Shares as reported on the New York Stock Exchange (or if such securities are not listed or admitted for trading on the NYSE, on the principal national securities exchange on which such securities are listed or admitted, or if not listed or admitted
for trading on any national securities exchange, in the applicable securities market in which the securities are traded) is greater than the Mandatory Conversion Trigger Price; provided, however, that the first day of any such 200-Trading Day period
shall not be earlier than the Closing Date. 
 (3) The Trust shall exercise its election to convert Series 1 Preferred Shares by delivering
written notice in the form attached hereto as Exhibit B (the “Mandatory Conversion Notice”) by first class mail, postage prepaid, to each holder of record of Series 1 Preferred Shares to be converted at the addresses shown
on the Trust’s records on the date of the Mandatory Conversion Notice. The Trust shall establish a date for closing the conversion (“Mandatory Conversion Date”) which date shall not be more than fifteen (15) days after the date
of the Mandatory Conversion Notice. In addition to delivering the Mandatory Conversion Notice, the Trust shall also issue a press release containing the information in the Mandatory Conversion Notice, excepting any information that is personal to
particular holders, and shall publish such information on its website, provided, however, that failure to issue such press release or publish such information on the Trust’s website shall not act to prevent, delay or void any conversion
pursuant to this Section 7(b). If fewer than all the outstanding Series 1 Preferred Shares are to be converted pursuant to this Section 7(b), shares to be so converted shall be selected by the Trust by lot or pro rata (as
nearly as may be) or by any other method determined by the Trust in its sole discretion to be equitable. Notwithstanding the foregoing, the Trust shall not be entitled to deliver a Mandatory Conversion Notice unless: (i) the Elevated Price
Level shall have occurred no more than six (6) months prior to the date of the Mandatory Conversion Notice; and (ii) the Current Market Price of the Common Shares on the date of the Mandatory Conversion Notice shall be equal to or exceed
the Mandatory Conversion Price. The Trust shall deliver instructions to the Transfer Agent to retire the Series 1 Preferred Shares being converted, reflect such retirement on the books and records of the Trust, issue the number of Common Shares
to be issued to the converting holder as a result of such conversion, and reflect such issuance on the books and records of the Trust, in each case whether or not a certificate representing the Common Shares has been, or will be, issued and
delivered to the converting holder as of such date. 
 (c) Conversion Mechanics. 
 (1) Generally, all Common Shares issued on conversion will be issued in the same name as the name in which the Series 1 Preferred Shares are issued. If
Common Shares are to be 

  

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issued in any other name, then the holder or such holder’s duly authorized attorney shall deliver to the office of the Trust instruments of transfer, in
form satisfactory to the Trust, duly executed by the holder or such holder’s duly authorized attorney, and an amount sufficient to pay any transfer or similar tax (or evidence reasonably satisfactory to the Trust demonstrating that such taxes
have been paid). 
 (2) Holders of Series 1 Preferred Shares at the close of business on a record date for any dividend payment shall be
entitled to receive the distribution payable on such shares on the corresponding Dividend Payment Date notwithstanding the conversion thereof following such dividend payment record date and prior to such Dividend Payment Date. However, Series 1
Preferred Shares surrendered for conversion during the period between the close of business on any dividend payment record date and the opening of business on the corresponding Dividend Payment Date must be accompanied by payment of an amount equal
to the distribution payable on such shares on such Dividend Payment Date. A holder of Series 1 Preferred Shares on a dividend payment record date who (or whose transferee) tenders any such shares for conversion into Common Shares on such Dividend
Payment Date will receive the dividend payable by the Trust on such Series 1 Preferred Shares on such date, and the converting holder need not include payment of the amount of such dividend upon surrender of Series 1 Preferred Shares for conversion.
Except as provided above, the Trust shall make no payment or allowance for unpaid dividends, whether or not in arrears, on converted shares or for distributions on the Common Shares issued upon such conversion. 
 (3) As promptly as practicable after the retirement of Series 1 Preferred Shares, as aforesaid, the Trust shall issue and shall deliver to such holder
any amounts payable to such holder as a result of any fractional interest in respect of a Common Share arising upon such conversion as provided in Section 7(d). 
 (4) A conversion shall be deemed to have been effected: (A) in the case of optional conversion pursuant to Section 7(a), immediately
prior to the close of business on the Optional Conversion Date set by the Trust; and (B) in the case of a mandatory conversion pursuant to Section 7(b), immediately prior to the close of business on the Mandatory Conversion Date, in
each case provided that the provisions of Section 7(a) and Section 7(b), as applicable, have been satisfied; and in each case, the Person or Persons in whose name or names the Common Shares shall be issuable upon such
conversion shall be deemed to have become the holder or holders of record of the shares represented thereby at such time on such date, and such conversion shall be at the Mandatory Conversion Price or Optional Conversion Price, as applicable, in
effect at such time and on such date unless the share transfer books of the Trust shall be closed on that date, in which event such Person or Persons shall be deemed to have become such holder or holders of record at the close of business on the
next succeeding day on which such share transfer books are open, but such conversion shall be at the Mandatory Conversion Price or Optional Conversion Price, as applicable, in effect on the Optional Conversion Date or the Mandatory Conversion Date,
as applicable. 
 (d) Fractional Shares. No fractional shares or scrip representing fractions of Common Shares shall be issued upon
conversion of Series 1 Preferred Shares. Instead of any fractional interest in a Common Share that would otherwise be deliverable upon the conversion of a Series 1 Preferred Share, the Trust shall pay to the holder of such share an amount in cash
based upon the Current Market Price of Common Shares on the Business Day immediately preceding the date of conversion. If more than one Series 1 Preferred Share shall be surrendered for conversion at one time by the same holder, the number of full
Common Shares issuable upon conversion thereof shall be computed on the basis of the aggregate number of Series 1 Preferred Shares so surrendered. 
 (e) Adjustment of Conversion Price. The Conversion Price shall be adjusted from time to time as follows (for purposes of this Section 7, “Mandatory Conversion Trigger Price” shall refer 

  

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to the Initial Mandatory Conversion Trigger Price as adjusted from time to time pursuant to this Section 7(e), and “Optional Conversion
Price” shall refer to the Initial Optional Conversion Price, as adjusted from time to time pursuant to this Section 7(e), and “Conversion Price” shall refer to the Mandatory Conversion Trigger Price or the Optional
Conversion Price, as applicable): 
 (1) If the Trust shall after the Issue Date: (A) pay or make a distribution on its Common Shares in
Common Shares; (B) subdivide its outstanding Common Shares into a greater number of shares; (C) combine its outstanding Common Shares into a smaller number of shares; or (D) issue any shares of beneficial interest by reclassification
of its Common Shares, then in each such case the Conversion Price in effect at the opening of business on the day following the date fixed for the determination of shareholders entitled to receive such distribution or at the opening of business on
the day following the day on which such subdivision, combination or reclassification becomes effective, as the case may be, shall be adjusted so that the holder of any Series 1 Preferred Shares thereafter surrendered for conversion shall be entitled
to receive the number of Common Shares that such holder would have owned or have been entitled to receive after the happening of any of the events described above had such shares been converted immediately prior to the record date in the case of a
distribution or the effective date in the case of a subdivision, combination or reclassification. An adjustment made pursuant to this Section 7(e)(1) shall become effective immediately after the opening of business on the day next
following the record date (except as provided in Section 7(i) below) in the case of a dividend and shall become effective immediately after the opening of business on the day next following the effective date in the case of a
subdivision, combination or reclassification. Such adjustment(s) shall be made successively whenever any of the events listed above shall occur. 
 (2) If the Trust shall issue after the Issue Date rights, options or warrants to all holders of Common Shares entitling them (for a period expiring within 45 days after the record date mentioned below) to subscribe for or purchase
Common Shares at a price per share less than the Fair Market Value per Common Share on the record date for the determination of shareholders entitled to receive such rights, options or warrants, then the Conversion Price in effect at the opening of
business on the day next following such record date shall be adjusted to equal the price determined by multiplying: (A) the Conversion Price in effect immediately prior to the opening of business on the day following the date fixed for such
determination by (B) a fraction, the numerator of which shall be the sum of: (1) the number of Common Shares outstanding on the close of business on the date fixed for such determination and (2) the number of Common Shares that the
aggregate proceeds to the Trust from the exercise of such rights, options or warrants for Common Shares would purchase at such Fair Market Value, and the denominator of which shall be the sum of: (X) the number of Common Shares outstanding on
the close of business on the date fixed for such determination and (Y) the number of additional Common Shares offered for subscription or purchase pursuant to such rights, options or warrants. Such adjustments shall be made successively
whenever any such rights, options or warrants are issued, and shall become effective immediately after the opening of business on the day next following such record date (except as provided in Section 7(i) below). In determining whether
any rights, options or warrants entitle the holders of Common Shares to subscribe for or purchase Common Shares at less than the Fair Market Value, there shall be taken into account any consideration received by the Trust upon issuance and upon
exercise of such rights, options or warrants, the value of such consideration, if other than cash, to be determined by the Chief Executive Officer of the Trust or the Board of Trustees. 
 (3) No adjustment in the Conversion Price shall be required unless such adjustment would require a cumulative increase or decrease of at least 1% in
such price; provided, however, that any adjustments that by reason of this Section 7(e)(3) are not required to be made shall be carried forward and taken into account in any subsequent adjustment until made. Notwithstanding any other
provisions of this Section 7, the Trust shall not be required to make any adjustment of the Conversion Price for the issuance of any Common Shares pursuant to any plan providing for the 

  

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reinvestment of distributions or interest payable on securities of the Trust and the investment of additional optional amounts in Common Shares under such
plan. All calculations under this Section 7 shall be made to the nearest cent (with $.005 being rounded upward) or to the nearest one-ten-thousandth of a share (with .0005 of a share being rounded upward), as the case may be. 

(f) Transactions. If the Trust shall be a party to any transaction (including without limitation a merger, consolidation, statutory share
exchange, self tender offer for all or substantially all of the Common Shares, sale of all or substantially all of the Trust’s assets or recapitalization of the Common Shares and excluding any transaction as to which Section 7(e)
applied) (each of the foregoing being referred to herein as a “Transaction”), in each case as a result of which Common Shares shall be converted into the right to receive shares, stock, securities or other property (including cash or any
combination thereof), each Series 1 Preferred Share which is not converted into the right to receive shares, stock, securities or other property in connection with such Transaction shall thereafter be convertible into the kind and amount of shares,
stock, securities and other property (including cash or any combination thereof) receivable upon the consummation of such Transaction by a holder of that number of Common Shares into which one Series 1 Preferred Share was convertible immediately
prior to such Transaction, assuming such holder of Common Shares (1) is not a Person with which the Trust consolidated or into which the Trust merged or which merged into the Trust or to which such sale or transfer was made, as the case may be
(a “Constituent Person”), or an affiliate of a Constituent Person and (2) failed to exercise his rights of election, if any, as to the kind or amount of shares, stock, securities and other property (including cash) receivable upon
such Transaction (each a “Non-Electing Share”) (provided that if the kind or amount of shares, stock, securities and other property (including cash) receivable upon such Transaction by each Non-Electing Share is not the same for each
Non-Electing Share, then the kind and amount of shares, stock, securities and other property (including cash) receivable upon such Transaction for each Non-Electing Share shall be deemed to be the kind and amount so receivable per share by a
plurality of the Non-Electing Shares). The Trust shall not be a party to any Transaction unless the terms of such Transaction are consistent with the provisions of this Section 7(f), and it shall not consent or agree to the occurrence of
any Transaction until the Trust has entered into an agreement with the successor or purchasing entity, as the case may be, for the benefit of the holders of the Series 1 Preferred Shares that will require such successor or purchasing entity, as the
case may be, to make provision in its certificate or articles of incorporation or other constituent documents to the end that the provisions of this Section 7(f) shall thereafter correspondingly be made applicable, as nearly as may
reasonably be, in relation to any shares of stock or other securities or property thereafter deliverable upon conversion of the Series 1 Preferred Shares. The provisions of this Section 7(f) shall similarly apply to successive
Transactions. 
 (g) If: 
 (1)
the Trust shall authorize the granting to all holders of the Common Shares of rights, options or warrants to subscribe for or purchase any shares of any class or any other rights, options or warrants; or 
 (2) there shall be any reclassifications of the Common Shares (other than an event to which Section 7(e)(1) applied) or any consolidation or
merger to which the Trust is a party and for which approval of any shareholders of the Trust is required, or a statutory share exchange involving the conversion or exchange of Common Shares into securities or other property, or a self tender offer
by the Trust for all or substantially all of its outstanding Common Shares, or the sale or transfer of all or substantially all of the assets of the Trust and for which approval of any stockholder of the Trust is required; or 
  

 10 

 (3) there shall occur the voluntary or involuntary liquidation, dissolution or winding up of the Trust,

 then the Trust shall cause to be filed with the Transfer Agent and shall cause to be mailed to the holders of the Series 1 Preferred Shares at their
addresses as shown on the share records of the Trust, as promptly as possible, but at least fifteen (15) days prior to the applicable date hereinafter specified, a notice stating: (A) the date on which a record is to be taken for the
purpose of such grant of rights, options or warrants, or, if a record is not to be taken, the date as of which the holders of Common Shares of record to be entitled to such grant of rights, options or warrants are to be determined, provided,
however, that no such notification need be made in respect of a record or determination date for a grant of rights unless the corresponding adjustment in the Conversion Price would be an increase or decrease of at least 1%; or (B) the date on
which such reclassification, consolidation, merger, statutory share exchange, self tender offer, sale, transfer, liquidation, dissolution or winding up is expected to become effective, and the date as of which it is expected that holders of Common
Shares of record shall be entitled to exchange their Common Shares for securities or other property, if any, deliverable upon such reclassification, consolidation, merger, statutory share exchange, self tender offer, sale, transfer, liquidation,
dissolution or winding up. Failure to give or receive such notice or any defect therein shall not affect the legality or validity of the proceedings described in this Section 7. 
 (h) Notification of Adjustment. Whenever the Conversion Price is adjusted as herein provided, the Trust shall promptly file with the Transfer
Agent an officer’s certificate setting forth the Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment, which certificate shall be conclusive evidence of the correctness of such
adjustment absent manifest error. 
 (i) In any case in which Section 7(c) provides that an adjustment shall become effective on
the date next following the record date for an event, the Trust may defer until the occurrence of such event: (A) issuing to the holder of any Series 1 Preferred Shares converted after such record date and before the occurrence of such event
the additional Common Shares issuable upon such conversion by reason of the adjustment required by such event over and above the Common Shares issuable upon such conversion before giving effect to such adjustment; and (B) fractionalizing any
Series 1 Preferred Share and/or paying to such holder any amount of cash in lieu of any fraction pursuant to Section 7(d). 
 (j)
There shall be no adjustment of the Conversion Price in case of the issuance of any shares of beneficial interest of the Trust in a reorganization, acquisition or other similar transaction except as specifically set forth in this
Section 7. If any action or transaction would require adjustment of the Conversion Price pursuant to more than one subsection of this Section 7, only one adjustment shall be made to the Conversion Price, and such adjustment
shall be the amount of adjustment that has the highest absolute value. 
 (k) If the Trust shall take any action affecting the Common Shares,
other than action described in this Section 7, that in the opinion of the Board of Trustees would materially adversely affect the conversion rights of the holders of the Series 1 Preferred Shares, the Conversion Price may be adjusted, to
the extent permitted by law, in such manner, if any, and at such time, as the Board of Trustees, in its sole discretion, may determine to be equitable in the circumstances. 
 (l) The Trust covenants that it will at all times reserve and keep available, free from preemptive rights, out of the aggregate of its authorized but
unissued Common Shares, for the purpose of effecting conversion of the Series 1 Preferred Shares, the maximum number of Common Shares deliverable upon the conversion of all outstanding Series 1 Preferred Shares not theretofore converted. For
purposes of this Section 7(l), the number of Common Shares that shall be deliverable upon the 

  

 11 

 
conversion of all outstanding Series 1 Preferred Shares shall be computed as if at the time of computation all such outstanding shares were held by a single
holder. The Trust covenants that any Common Shares issued upon conversion of the Series 1 Preferred Shares shall be validly issued, fully paid and nonassessable. Before taking any action that would cause an adjustment reducing the Conversion Price
below the then par value of the Common Shares deliverable upon conversion of the Series 1 Preferred Shares, the Trust will take any action that, in the opinion of its counsel, may be necessary in order that the Company may validly and legally issue
fully paid and nonassessable Common Shares at such adjusted Conversion Price. The Trust shall endeavor to list the Common Shares required to be delivered upon conversion of the Series 1 Preferred Shares, prior to such delivery, upon each national
securities exchange, if any, upon which the outstanding Common Shares are listed at the time of such delivery. 
 (m) The Trust will pay any
and all documentary stamp or similar issue or transfer taxes payable in respect of the issue or delivery of Common Shares or other securities or property on conversion of the Series 1 Preferred Shares pursuant hereto; provided, however, that the
Trust shall not be required to pay any tax that may be payable in respect of any transfer involved in the issue or delivery of Common Shares or other securities or property in a name other than that of the holder of the Series 1 Preferred Shares to
be converted, and no such issue or delivery shall be made unless and until the Person requesting such issue or delivery has paid to the Trust the amount of any such tax or has established, to the reasonable satisfaction of the Trust, that such tax
has been paid. 
 (8) Application of Article VII. The designations, powers, preferences and relative participating, optional or other
special rights, and the qualifications, limitations or restrictions, of the Series 1 Preferred Shares shall be subject in all cases to the provisions of Article VII of the Declaration of Trust regarding limitations on beneficial
ownership of the Trust’s equity securities. 
 (9) Shares to be Retired. All Series 1 Preferred Shares which shall have been
issued and reacquired in any manner by the Trust shall be restored to the status of authorized but unissued Preferred Shares, without designation as to class or series. 
 (10) Record Holders. The Trust and the Transfer Agent may deem and treat the record holder of any Series 1 Preferred Shares as the true and lawful owner thereof for all purposes, and neither the Trust nor the
Transfer Agent shall be affected by any notice to the contrary. 
 (11) Sinking Fund. The Series 1 Preferred Shares shall not be
entitled to the benefits of any retirement or sinking fund. 
 (12) Certificates; Registration. The Series 1 Preferred Shares shall
not be certificated at any time. Upon issuance, the Series 1 Preferred Shares shall be registered at the Transfer Agent in the names of the holders thereof, as applicable. The holders of the Series 1 Preferred Shares may not transfer the Series 1
Preferred Shares to brokerage accounts to be held in “street name” or otherwise at any time. 
 SECOND: The Series 1
Preferred Shares have been classified and designated by the Board under the authority contained in the Declaration of Trust. 
 THIRD:
These Articles Supplementary have been approved by the Board in the manner and by the vote required by law. 
 FOURTH: These Articles
Supplementary shall be effective at the time the State Department of Assessments and Taxation of Maryland accepts these Articles Supplementary for record. 
  

 12 

 FIFTH: The undersigned President of the Trust acknowledges these Articles Supplementary to be the
act of the Trust and, as to all matters or facts required to be verified under oath, the undersigned President acknowledges that to the best of his knowledge, information and belief, these matters and facts are true in all material respects and that
this statement is made under the penalties for perjury. 
 *        *        *        *        * 
  

 13 

 IN WITNESS WHEREOF, the Trust has caused these
Articles Supplementary to be executed under seal in its name and on its behalf by its President and attested to by its Secretary on this 8th day of March, 2007. 
  

			
	FEDERAL REALTY INVESTMENT TRUST
		
	By:	 	 /s/ Donald C. Wood

		 	Donald C. Wood
		 	President and Chief Executive Officer

  

			
	[SEAL]
	
	ATTEST:
		
	By:	 	 /s/ Dawn M. Becker

		 	Dawn M. Becker
		 	Executive Vice President-General Counsel and Secretary

 EXHIBIT A 
 OPTIONAL CONVERSION NOTICE 
 SERIES 1 PREFERRED SHARES 
 A RESPONSE TO THIS NOTICE IS REQUIRED WITHIN FIVE (5) BUSINESS 
 DAYS AFTER RECEIPT 
                     , 20     
 Federal Realty Investment Trust 
 1626 East Jefferson Street 
 Rockville, Maryland 20852 
 Attention: Chief Accounting Officer 
 Re: Optional Conversion of Series 1 Preferred Shares 
 Pursuant to
the Articles Supplementary Establishing and Fixing the Rights and Preferences of a Series of Preferred Shares dated                     ,
200    (“Articles Supplementary”), the undersigned holder of Series 1 Preferred Shares (“Holder”) hereby tenders to Federal Realty Investment Trust (the “Trust”) for conversion all or a
portion of his/her/its Series 1 Preferred Shares into Common Shares of the Trust as follows: 
  

			
	Total Number of Series 1 Preferred Shares Held as of the date of this Notice:	 	  

		
	Total Number of Series 1 Preferred Shares to be Converted:	 	  

 The undersigned Holder hereby represents, warrants, certifies and agrees as of the date of this Optional
Conversion Notice and as of the date of the closing of the conversion that: 
 (a) the undersigned Holder has, and at the
closing of the conversion will have, good, marketable and unencumbered title to the Series 1 Preferred Shares being tendered for conversion, free and clear of the rights or interests of any other person or entity; 
 (b) the undersigned Holder has, and at the closing of the conversion will have, the full right, power and authority to tender and
surrender the Series 1 Preferred Shares being tendered for conversion; 
 (c) the undersigned Holder has obtained the consent
or approval of all persons and entities, if any, having the right to consent to or approve such conversion; and 
 (d) after
giving effect to the conversion, the undersigned Holder (or any related party) will not own Common Shares of the Trust in excess of the ownership limit specified in the Trust’s Declaration of Trust as in effect on the date hereof after taking
into account (i) the actual and constructive stock ownership rules of the Internal Revenue Code of 1986, as amended, and (ii) any other additional Common Shares of the Trust which the undersigned Holder has acquired or intends to acquire
prior to the closing the conversion. 
  

 Exhibit A-1 

 If the Common Shares to be issued upon this conversion are to be certificated, then the certificates will be delivered to
the address for the Holder currently maintained on the books and records of the Trust unless a different address is specified below. If the Common Shares to be issued upon this conversion are not to be certificated, then the change in the
Holder’s ownership of Common Shares shall be reflected in the books and records of the Trust and/or Transfer Agent, as applicable. 
 All capitalized
terms used herein and not otherwise defined shall have the meanings set forth in the Articles Supplementary Establishing and Fixing the Rights and Preferences of a Series of Preferred Shares dated
                    , 200    . 
 Dated:                      
  

	
	  

	(Signature of Holder)
	
	  

	(Printed name of Holder)
	
	  

	(Street Address)
	
	  

	(City)        (State)        (Zip Code)
	
	  

	(Facsimile Number)
	
	  

	(email address)
	
	  

	Signature Guaranteed by:

  

 Exhibit A-2 

 EXHIBIT B 
 MANDATORY CONVERSION NOTICE 
 SERIES 1 PREFERRED SHARES 
                     , 20    

  

	
	  

	  

	  

	  

 Re: Mandatory Conversion of Series 1 Preferred Shares 
 Dear                     : 
 Pursuant to the Articles Supplementary Establishing and Fixing the Rights and Preferences of a Series of Preferred Shares dated
                    , 200    (“Articles Supplementary”), Federal Realty Investment Trust (the
“Trust”) hereby elects to convert to Common Shares all or a portion of your Series 1 Preferred Shares as follows: 
  

			
	 Number of Series 1 Preferred Shares to be Converted:
	  	  

		
	Mandatory Conversion Price:	  	  

		
	Number of Common Shares to be Issued upon Conversion:	  	  

		
	Mandatory Conversion Date:	  	  

		
	Amount of Accrued Dividends to be Paid on the Mandatory Conversion Date:	  	  

		
	Amount of Cash Payable for Fractional Shares upon Conversion:	  	  

 All capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Articles
Supplementary. 
 Sincerely, 
 [Name] 
 [Title] 
 [Address]Employment Agreement with Mona G. Estey

 Exhibit 10.14 
 EMPLOYMENT AGREEMENT 
 THIS AGREEMENT is made and entered into by and between LYDALL, INC., a
Delaware corporation (the “Company”), and Mona G. Estey (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; Termination of Prior Agreement. 
 1.1 The Company and/or one of its subsidiaries agrees to continue to employ the
Executive, and the Executive agrees to remain in the employment of the Company and/or one of its subsidiaries, in accordance with the terms and provisions of this Agreement. 
 1.2 The Employment Period under this Agreement shall be the period commencing as of the date of this Agreement and, ending on the date of termination of
the Executive’s employment pursuant to Section 5, 6 or 7 below, whichever is applicable. 
 Immediately upon the commencement of the
Executive’s employment pursuant to the terms of this Agreement, that certain Agreement by and between the Executive and the Company dated as of March 1, 2000 shall terminate and shall be of no further force or effect, except that the
Indemnification Agreement signed on March 1, 2000 will continue in full force and effect.” 
 2. Duties. It is the intention
of the Parties that during the term of the Executive’s employment under this Agreement, the Executive will serve as Vice President Human Resources of the Company or in such other senior management position as the Company shall determine. During
the Employment Period, 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 of Directors of the Company (the “Board”) or a
committee thereof. 

 3. Compensation and Benefits. 
 3.1 Salary. During the Employment Period, the Company will pay the Executive a base salary at an initial annual rate of one hundred ninety-seven
thousand Dollars ($197,000). 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. The Executive’s base salary may not be decreased during the term of this Agreement, other than in connection with an across-the-board decrease affecting substantially all members of senior management of the Company on substantially
the same proportional basis. The Chief Executive Officer of the Company shall meet with the Executive annually to review the Executive’s performance, objectives and compensation, including salary and bonus compensation, and the Chief Executive
Officer shall then meet with the Compensation Committee of the Board to discuss the same. If the Compensation Committee determines that any adjustments thereto are appropriate, such committee shall make a recommendation to the full Board and the
Board shall make such adjustments, if any, as the Board deems appropriate and consistent with this Agreement. 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. 
 (a) Annual Bonus. During the Employment Period, the Executive will be eligible to receive annually or otherwise such bonus awards, if any, as shall be determined by the Board in its sole and absolute discretion after receiving the
recommendation of the Compensation Committee. 
 (b) Performance Bonus. If the Executive is employed by the Company on
October 26, 2006, the Company will pay to the Executive a performance bonus equal to three (3) months’ base pay on the six-month anniversary of such date (the “Anniversary Date”), provided that (i) the Company does not
terminate the Executive’s employment for Cause, the Executive does not terminate her employment with the Company (other than for Good Reason) or the Executive’s employment is not terminated due to her death or Disability prior to the
Anniversary Date and (ii) the Executive maintains a satisfactory level of performance through the Anniversary Date as determined by the Compensation Committee in its sole discretion after receiving input from the CEO. 
 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, hospitalization and surgical and major medical
coverages (excluding the Lydall, Inc. Executive Medical Plan), short-term and long-term disability. 
  

 -2- 

 3.4 Vacations and Holidays. During the Employment Period, the Executive will be entitled to
vacation leave of five (5) 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. 
 3.5 Automobile. During the Employment Period, the Company will provide the Executive
with an automobile in accordance with Company policy. 
 4. 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. 
 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 (i) by reason of the Executive’s Disability (as defined in Section 5.2) or (ii) 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” (as defined in Section 10), or (ii) the benefits described in Section 9 if such termination of employment
occurs within 18 months following a Change of Control. 
 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 (i) her base salary pursuant to Section 3.1 through the date which is twelve months following the date of such
termination of employment, reduced by any amounts paid to the Executive under any disability program maintained by the Company, such base salary, as reduced, to be paid in accordance with the standard payroll practices of the Company; (ii) a
prorata bonus for the calendar year of termination, calculated as the product of (x) the annual performance-based bonus that would have been payable to the Executive for the calendar year of termination (determined as of the end of such
calendar year) and (y) a fraction, the numerator of which is the number of days in the current calendar 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 calendar year following the calendar year to which the bonus relates; (iii) any other compensation and benefits to the extent actually earned by the Executive under any other benefit plan or program of the Company as of the
date of such termination of employment, such compensation and benefits to be paid at the normal time for payment of such compensation and benefits to the extent not previously paid, and (iv) any 

  

 -3- 

 
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 date which is 12 months after 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. For the period beginning on the
date of the Executive’s termination of employment and ending on the earlier of (i) the date which is 12 months after the date of such termination of employment or (ii) the date on which the Executive 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. 
 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:
(i) an act or acts of dishonesty or fraud by the Executive relating to the performance of her services to the Company; (ii) 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; (iii) the Executive’s conviction of a felony or any crime involving moral turpitude; (iv) 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 (v) a breach by the Executive of any provision of any material policy
of the Company or of her 

  

 -4- 

 
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
(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 within
18 months following a Change of Control. 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 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 or becoming a subsidiary of another corporation shall not constitute Good Reason,
(ii) any 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, or (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 days following written notice thereof to the Company of such breach. In addition, in the case of a termination of employment within 18 months following a Change of Control, Good Reason shall also include 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. 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). 
  

 -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 (i) 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, (ii) 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 calendar years preceding the calendar year of the Executive’s death (or, if the Executive was not eligible for a bonus for at least three calendar years in such five-year period, then the
average of such bonuses for all of the calendar years in such five-year period for which the Executive was eligible), with any deferred bonuses counting for the year earned rather than the year paid and with the pro rata portion being determined by
dividing the number of days of the Executive’s employment during such calendar year up to her death by 365 (366 if a leap year), (iii) any other compensation and benefits to the extent actually earned by the Executive under any other
benefit plan or program of the Company as of the date of such termination of employment, such compensation and benefits to be paid at the normal time for payment of such compensation and benefits to the extent not previously paid, and (iv) 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. 
  

 -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 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 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 calendar years preceding her termination of employment
(or, if the Executive was not eligible for a bonus in each of those three calendar years, then the average of such bonuses for all of the calendar years in such three-year period for which she was eligible), with any deferred bonuses counting for
the year earned rather than the year paid (the “Severance Benefit”). The Severance Benefit installments shall be paid at the times that salary payments are normally made by the Company; provided that, if at the time of the Executive’s
termination of employment, the Executive is a “specified employee” as defined in Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations and guidance issued thereunder (a
“Specified Employee”), then fifty percent (50%) of the Severance Benefit shall be paid in a lump sum on the first payroll date that occurs six (6) months after the date of the Executive’s termination of employment, and the
remaining fifty percent (50%) of the Severance Benefit shall be paid in equal installments spread over six (6) months at the times that salary payments are normally made by the Company, beginning on the second payroll date that occurs six
(6) months after the date of the Executive’s termination of employment. 
 (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 date which is 12 months after 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 

  

 -7- 

 
generally. In addition, for the period beginning on the date of the Executive’s termination of employment and ending on the earlier of (i) the date
which is 12 months after the date of such termination of employment or (ii) the date on which the Executive 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 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. 
 (f) 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 within 18 months following a
Change of Control, is subject to the Executive’s execution without revocation of a valid release in substantially the form attached to this Agreement as Exhibit B (the “Release”). 
 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 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. 
  

 -8- 

 (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
calendar years preceding her termination of employment (or, if the Executive was not eligible for a bonus for at least three calendar years in such five-year period, then the average of such bonuses for all of the calendar years in such five-year
period for which the Executive was eligible), with any deferred bonuses counting for the year earned rather than the year paid (the “COC Severance Benefit”). The COC Severance Benefit shall be paid in a lump sum within 30 days after the
date of such termination of employment; provided that, if at the time of the Executive’s termination of employment, the Executive is a Specified Employee, then the COC Severance Benefit shall be paid in a lump sum on the date that is six
(6) months after the date of such termination of employment. 
 (d) The Company shall 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 calendar 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 calendar year immediately preceding the calendar 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 such payment shall be made in a lump sum on the date that is six (6) months after the date of such termination of employment, 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 date which is 24 months after the date 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. 
  

 -9- 

 (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 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. 
 (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. 
 (i) The Company will pay to the Executive an automobile allowance, in an amount equal to the Executive’s monthly lease allowance at the time of
termination, each month for 24 months following termination of the Executive’s employment to replace the Company-leased automobile, which leased automobile will be returned to the Company by the Executive on the date of 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), (h) and (i) upon the Executive’s termination of employment without Cause or for Good Reason within 18 months following a Change of Control is subject to the Executive’s execution of the Release. 
 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: (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 

  

 -10- 

 
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. 
 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 income and excise taxes) to which the Executive would
otherwise be entitled without such reduction would be greater than the net after-tax payment (after taking into account Federal, state, local or other income and excise taxes) to the Executive resulting from the receipt of such payments with such
reduction. If, as a result of subsequent events or conditions (including a subsequent payment or absence of a subsequent payment under this Agreement or other plan, program or arrangement of the Company or any of its affiliates), it is determined
that payments under this Agreement have been reduced by more than the minimum amount required to prevent any payments from constituting an Excess Parachute Payment, then an additional payment shall be promptly made to the Executive in an amount
equal to the additional amount that can be paid without causing any payment to constitute an Excess Parachute Payment. 
 (b) All
determinations required to be made under this Section 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. 
  

 -11- 

 (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. 
 12. 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,
including, without limitation, the Lydall, Inc. Severance Plan. 
 13. General Provisions. 
 13.1 No Duty to Seek Employment. The Executive shall not be under any duty or obligation to seek or accept other employment following termination
of employment, and no amount, payment or benefits due to the Executive hereunder shall be reduced or suspended if the Executive accepts subsequent employment, except as expressly set forth herein. 
 13.2 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 any deductions and withholdings required by law. 
 13.3 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.
		  		  	P.O. Box 151
		  		  	One Colonial Road
		  		  	Manchester, CT 06045-0151
		  		  	Attn: Chief Executive Officer
			
	 To the Executive:
	  		  	Mona G. Estey
		  		  	 XXXXX

		  		  	 XXXXX

  

 -12- 

 
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. 
 13.4 No
Disparagement. The Executive shall not during the period of her 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 the Company, or any of its subsidiaries or affiliates or any of their shareholders, directors, officers, employees or agents. “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 Executive agrees that the terms of this
Section 14.4 shall survive the term of this Agreement and the termination of the Executive’s employment. 
 13.5 Proprietary
Information and Inventions. The Confidentiality Agreement is incorporated by reference in this Agreement, and the Executive agrees to continue to be bound thereby. 
 13.6 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 applicable. In the event that the Executive is aware or suspects the Company, or any of its officers or agents, of violating any such laws, ethics, codes, rules,
regulations, policies or procedures, the Executive agrees to bring all such actual and suspected violations to the attention of the Company immediately so that the matter may be properly investigated and appropriate action taken. The Executive
understands that the Executive is precluded from filing a complaint with any governmental agency or court having jurisdiction over wrongful conduct unless the Executive has first notified the Company of the facts and permits it to investigate and
correct the concerns. 
 13.7 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. 
 13.8 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. 
  

 -13- 

 13.9 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. 
 13.10 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 14.10, 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. 
 13.11 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. 
 13.12 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 relating to this Agreement or the terms or conditions of Executive’s employment by the Company. If such a claim is filed more than one year
subsequent to the Executive’s last day of employment it shall be precluded by this provision, regardless of whether or not the claim has accrued at that time. 
 13.13 Right to Injunctive and Equitable Relief. The Executive’s obligations under Section 13.4 are of a special and unique character, which gives them a peculiar value. The Company cannot be
reasonably or adequately compensated for damages in an action at law in the event the Executive breaches such obligations. Therefore, the Executive expressly agrees that the Company shall be entitled to injunctive and other equitable relief without
bond or other security in the event of such breach in addition to any other rights or remedies which the Company may possess or be entitled to pursue. Furthermore, the obligations of the Executive and the rights and remedies of the Company under
Section 13.4 and this Section 13.13 are cumulative and in addition to, and not in lieu of, any obligations, rights, or remedies as created by applicable law. The Executive agrees that the terms of this Section 13.13 shall survive the
term of this Agreement and the termination of the Executive’s employment. 
 13.14 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. 
 13.15 Entire Agreement. This Agreement, along with the Confidentiality Agreement, constitutes the entire agreement of the Parties and supersedes
all prior written or oral and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof. This Agreement may not be changed orally 

  

 -14- 

 
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. 
 13.16 Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed an original but
all of which together shall constitute one and the same instrument. 
 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. 
  

 -15- 

							
	LYDALL, INC.	 	
				
	By:	 	 /s/ David Freeman
	 		 	1/10/07
		 	David Freeman	 		 	Date
		 	President and Chief Executive Officer	 		 	
				
		 	 /s/ Mona G. Estey
	 		 	1/10/07
		 	Mona G. Estey	 		 	Date
		 	Vice President – Human Resources	 		 	

  

 -16- 

 EXHIBIT A 
 CONFIDENTIALITY AGREEMENT 
 LYDALL EMPLOYEE AGREEMENT 
 In consideration of my employment by any subsidiary or affiliated company of Lydall, Inc., (“Lydall”) and of the compensation and other benefits to be received
by me from Lydall, I, Mona G. Estey agree that: 
  

	 	1.	The term “Confidential Information” as used in this Agreement includes all business information and records which relate to Lydall 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 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 or otherwise, which relates to any activity or business in which Lydall is engaged or any process, equipment, material, product or method (including computer software) in which Lydall has any direct
or indirect interest. 
  

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

  

	 	3.	I grant to Lydall without further compensation, all my right, title and interest in and to any such Invention for the sole use and benefit of Lydall, 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 Lydall, I will at any time do what Lydall reasonably
believes to be necessary to assist Lydall to vest full right and title to each such Invention in Lydall, Inc.; enable Lydall 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 Lydall may be involved concerning any such Invention. This will include preparing, executing and delivering any written document, drawings, flowcharts, or computer printouts. The provision of this paragraph will continue after I
stop working for Lydall and shall be binding on my executors, administrators and assigns, unless waived in writing by Lydall. 

  

	 	4.	I have not disclosed and will not disclose to Lydall, and I will not use, in the discharge of my duties as an employee of Lydall, any trade secret or confidential information
belonging to a former employer or other person and which has been classified by the former employer or other person as a trade secret or confidential information. The limitation set forth in this paragraph 4 shall not apply to matters which
(a) are or become public knowledge, (b) were previously known to Lydall, (c) are subsequently received by Lydall from a third party, or (d) are independently derived by Lydall. 

  

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

  

	 	6.	When I leave Lydall’s employ, or at any other time upon request by Lydall, I will promptly deliver to Lydall 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 Lydall, 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. 

  

	 	 7.
	 I acknowledge and agree that Lydall’s business competes upon a nationwide and worldwide basis, and that the degree
of competition in that business is high; I recognize that Lydall may assign me responsibilities in geographic regions of Lydall’s selection. Accordingly, I agree that, unless I first obtain Lydall’s written consent, I will not during my
employment with Lydall and for a period of two (2) years following the termination of my employment with Lydall (provided, however, that if I am employed by Lydall for less than two (2) years, the post-employment period to which this
paragraph 7 applies shall be the greater of six (s) months or a period of time equal to the duration of my employment by Lydall in any capacity,1) directly or indirectly: 

  

	 	(i)	own, manage, operate, join, control or 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, any business competitive with Lydall in (a) any market in which the Division(s) of Lydall for which I have worked in the two (2) preceding years has sold or attempted to sell any of its product in the
two (2) years preceding such termination or (b) if Lydall has assigned me a specific geographic area for responsibility, within two hundred fifty (250) miles of any geographic location in which Lydall has assigned me responsibilities
in the two (2) years preceding such termination; 

  

	 	(ii)	induce or attempt to induce any person who is an employee of Lydall to terminate his or her employment with Lydall; or 

  

	 	(iii)	induce or attempt to induce any person, business or entity which, as of the date of the termination of my employment, is a supplier of, a purchaser from , or a contracting party
with Lydall to terminate any written or oral agreement, order or understanding with Lydall. 

  

	 	8.	I further understand and agree that the remedy at law for any breach or threatened breach of my agreement not to compete contained in paragraph 7 would be inadequate and that any
breach or attempted breach would result in irreparable damage to Lydall, 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 contained in
paragraph 7, in addition to any and all other legal or equitable remedies which may be available, Lydall may obtain preliminary injunctive relief to remedy damage caused by such breach or threatened breach, and that Lydall shall be entitled to
recover from me its costs and expenses including reasonable attorney fees incurred in remedying such breach or threatened breach. 

  

 -17- 

	 	9.	Should any claim or dispute relating to this agreement arise, I agree that the claim will be settled by arbitration in the state of the Division of Lydall for which I was last
working, in accordance with the Commercial Arbitration Rules of the American Arbitration Association, and judgment will be binding and may be entered in any court with jurisdiction. 

  

	 	10.	I represent and agree that I have and will assume no obligations to others inconsistent with any of my obligations to Lydall under this Agreement. 

  

	 	11.	In consideration of my employment, I agree to conform to the policies of Lydall. 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 Lydall or me, and will remain so unless a written agreement for a specific term is entered into and executed by me and Lydall’s CEO. No other representations or agreements have been made regarding the
term or termination of my employment. I understand that no employee of Lydall other than its CEO has the authority to enter into any agreement, commitment or guarantees binding on Lydall regarding my employment and then only by a signed, written
document. 

  

	 	12.	This Agreement, which is ancillary to any other agreement I may have with Lydall, (a) is intended as the complete and exclusive statement of my agreement with Lydall with
respect to its subject matter; (b) shall be binding upon my heirs, executors and administrators; (c) shall not be modified unless in writing and signed by me and Lydall; and (d) shall be governed by and construed in accordance with
the law of the State of Connecticut, Lydall’s home office state. 

  

	 	13.	Should any part of this Employee Agreement be found invalid by any court, the remainder shall be valid and enforceable in law and equity. 

	 1
	 individually; or as a member, employee or agent of any partnership; or as an officer, agent, employee,
director, or investor of any other corporation or entity; or as a stockholder (except of not more than two percent (2%) of the outstanding stock of any company listed on a national securities exchange or actively traded in the over-the-counter
securities market) or investor of any other corporation or entity; 

 Signed at
                        Manchester,
CT                                       
                                        
      on             7/21/97             
                                        
     (City/State)                                 
                                        
                                 (Date) 
  

									
	 Employee’s Name:
                    Mona G.
Estey                                  
	 	Lydall	 	Corporate                 Division
		 	                                       
   (Print or Type)	 		 	
					
	 By:
	 	 /s/ Mona G. Estey
	 		 	By	 	 /s/ Leonard R. Jaskol

		 	(Employee Signature)	 		 		 	(Division President)
					
	 S.S.#
	 	 ###-##-####
	 		 	Witness:	 	 /s/ Nancy H. Poulin

 Acknowledgement of Receipt 
 I acknowledge receipt of a copy of this document on
            7/21/1997                 
                                        
                                        
                      (date) 
 Employee’s
Signature         /s/ Mona G.
Estey                               
  

 -18- 

 EXHIBIT B 
 TERMINATION, VOLUNTARY RELEASE AND WAIVER OF RIGHTS AGREEMENT 
 I,
                        , 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
                        , 2006 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. 
 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 

  

 -19- 

 
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. 
 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 

  

 -20- 

 
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 this Agreement by me or by any person acting on my behalf, or the fact that any representation made herein by the undersigned was false when made. 
 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 hereof or to carry out the agreement set forth herein, 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, the terms of which retain their full force
and effect, and which are in no way limited or curtailed by this Agreement. (A copy of that agreement is attached to the Employment Agreement as Exhibit A and is made a part hereof.) 
  

 -21- 

 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. No
Disparagement. Unless otherwise required by a court of competent jurisdiction or pursuant to any recognized subpoena power, I agree and promise that I will not make any oral or written statements or reveal any information to any person, company,
or agency which is disparaging or damaging to the reputation or business of the Company, its subsidiaries, directors, officers or affiliates, or which would interfere in any way with the business relations between the Company or any of its
subsidiaries or affiliates and any of their customers, suppliers or vendors whether present or in the future. 
 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. 
 AFFIRMATION OF RELEASOR 
 I,
                        , warrant that I am competent to execute this Termination, Voluntary Release and Waiver of Rights
Agreement and that I accept full responsibility thereof. 
 I,
                        , 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,
                        , 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. 
  

 -22- 

 Executed this              day
of                         , 2006, at
                                        
        . 
  

							
		 		 		 	NAME
				
	STATE OF	 	  
	 	    )	 	
		 		 	    )	 	SS:
	 COUNTY OF
	 	  
	 	    )	 	

 Subscribed and sworn to before me, a Notary Public in and for said County and State, this
             day of
                        , 2006, under the pains and penalties of perjury. 
 , Notary Public 
 My Commission Expires: 
 County of Residence: 
  

 -23-

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