Exhibit 10.36

                       AMENDMENT TO EMPLOYMENT AGREEMENT
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                  BETWEEN LYDALL, INC. AND LISA KRALLIS-NIXON
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                              Dated March 1, 2000
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     This is an Amendment of the Employment Agreement between Lydall, Inc. and
Lisa Krallis-Nixon dated March 1, 2000. This Amendment is made in consideration
of the mutual agreements and promises hereinafter set forth and for other good
and valuable consideration.

     All provisions of the Employment Agreement are reaffirmed and will remain
in full force and effect except that the following new section shall be added as
noted:

     9.   Benefits Upon Termination Without Cause or For Good Reason (Change of
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          Control).
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               (h)  The Company will pay the Executive a car allowance, in an
          amount equal to Executive's monthly lease allowance at the time of
          termination, per 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.

     This amendment will be effective as of August 1, 2000.

               IN WITNESS WHEREOF, Lydall, Inc. and Lisa Krallis-Nixon have
caused this Amendment to the Agreement to be executed in duplicate.

LYDALL, INC.

By
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        Walter A. Ruschmeyer                         Lisa Krallis-Nixon
         Executive Vice President -
            Finance and Administration,
            Chief Financial Officer