2007 PERFORMANCE BONUS PROGRAM
This document sets forth the 2007 Performance Bonus Program applicable to domestic Salaried Employees and certain foreign
employees (“Employee”) of Lydall, Inc. and its subsidiaries as approved by the CEO of Lydall and the Compensation Committee
of Lydall’s Board of Directors (BOD), and is subject to audit by the Finance Department. Lydall’s Board of Directors will
establish the Lydall Consolidated Earnings per Share (EPS) threshold on an annual basis.
1. Bonus Percentage is the percentage of your Base Salary as determined on January 1 st of each Program Year or date of hire
for new entrants. Changes made to a Bonus Compensation Percentage will only be effective on January 1 st of a Program
2. Bonus Allocation of your Bonus Percentage is as follows:
Bonus Allocation Percentage
for those with Milestones
Bonus Allocation Percentage for those
For CHQ employees, Lydall Consolidated is the Business Unit.
4. Milestones are required to be set as part of this program by managers who directly report to the Presidents. Managers
hired before July 1 of the current plan year must set milestones for the balance of the year.
5. Base Salary is your regular, overtime, and double time pay earned as an eligible participant in 2007, as indicated on your
final paycheck in the current Program Year, plus any separately recorded holiday and vacation pay. Pay earned as an
hourly employee will not be included as part of this Program. Base Salary will be reduced by earnings attributed to any
leave of absence.
6. Bonus Program Qualifier Only when the company achieves the Lydall Consolidated Earnings per Share (EPS) threshold
will program participants be qualifie