Document:

EX-10.1.IV

 

Exhibit 10.1(iv)

     THIRD AMENDMENT AND WAIVER dated as of March 25, 2008 (this
“Amendment”), to the FIVE-YEAR CREDIT AGREEMENT dated as of June
21, 2006 (as amended, supplemented or otherwise modified from time to time
the “Credit Agreement”), among PALL CORPORATION (the
“Company”), the Subsidiaries of the Company named on the signature
pages thereto, the LENDERS from time to time party thereto, JPMORGAN CHASE
BANK, N.A., as facility agent for the Lenders (the “Facility
Agent”) and J.P. MORGAN EUROPE LIMITED, as London agent for the
Lenders (the “London Agent” and, together with the Facility Agent,
the “Agents”).

          WHEREAS the Company has informed the Agents and the Lenders that (a) it has understated its
U.S. income tax payments and its provision for income taxes, (b) the understatement relates (i)
primarily to the taxation of certain intercompany payable balances that mainly resulted from sales
of products by a foreign subsidiary of the Company to a U.S. subsidiary of the Company and (ii) to
certain other tax matters giving rise to the Restatement Provision (as defined below) (the matters
referred to in this clause (b) and in the preceding clause (a) being called the “Specified
Matters”), (c) as of the date of this Amendment, the Company has paid $135,000,000 in respect
of the Specified Matters, (d) the Company plans to restate (the “Restatement”) its
financial statements for the fiscal years 1999 through 2006 (including the interim periods within
those years) and each of the fiscal quarters ended October 31, 2006, January 31, 2007 and April 30,
2007 (the “Affected Periods”) in its Annual Report on Form 10-K for the fiscal year ended
July 31, 2007 (the “2007 Form 10-K”), and (e) the aggregate incremental addition to the
Company’s provision for income taxes with respect to the Affected Periods to be recorded in the
consolidated financial statements of the Company included in the 2007 Form 10-K and attributable to
the Restatement (the “Restatement Provision”) will exceed $225,000,000, but as of the date
hereof, the Company does not believe that it will exceed $300,000,000.

          WHEREAS the Company has further informed the Agents and the Lenders that, as a result of the
Specified Matters, (a) certain certifications, representations and warranties of the Company
contained in or made pursuant to the Credit Agreement or other Loan Documents (or any document
delivered in connection therewith) may have been inaccurate when made or may not be accurate if
required to be made in the event of additional borrowings under the Credit Agreement, (b) the
covenants set forth in Sections 5.01, 5.02, 5.03, 5.04, 5.08 or 5.09 of the Credit Agreement may
have been violated, (c) certain defaults may have occurred under other agreements or instruments of
the Company, (d) the Company was not able to deliver its Annual Report on Form 10-K for the fiscal
year ended July 31, 2007 (the “Affected Annual Report”) or its Quarterly Reports on Form
10-Q for its fiscal quarters ending October 31, 2007 and January 31, 2008 (the “Affected
Quarterly Reports”), to the Facility Agent as and when it was required to do so by Section 5.01
of the Credit Agreement and (e) the foregoing inaccuracies, violations and other matters may, if
not waived by the Lenders, have resulted in or will result in Events of Default pursuant to Section
7.01 of the Credit Agreement.

 

 

 2

          WHEREAS the Company has requested that the Lenders waive, and the Lenders have agreed to
waive, certain Defaults and failures of conditions precedent arising from the Specified Matters and
the Company has requested that the Lenders amend, and the Lenders have agreed to amend, Section
5.01 to extend the period of time during which the Company must deliver the Affected Annual Report
and Affected Quarterly Reports on the terms and subject to the conditions set forth herein.

          NOW, THEREFORE, in consideration of the above premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

          SECTION 1. Defined Terms. Each capitalized term used and not defined herein shall
have the meaning assigned to it in the Credit Agreement (as modified hereby).

          SECTION 2. Waiver. Effective as of the Third Amendment and Waiver Effective Date (as
defined below), the Lenders hereby waive (a) all breaches of representations and warranties under
the Credit Agreement, Defaults caused by violations of Sections 5.01, 5.02, 5.03, 5.04, 5.08 and
5.09 of the Credit Agreement and failures to satisfy conditions precedent set forth in Section 4.02
of the Credit Agreement (including conditions precedent to any further borrowing under the Credit
Agreement) resulting from the Specified Matters and (b) any Default that may occur pursuant to
Section 7.01(e)(i)(B) or 7.01(e)(ii)(A) of the Credit Agreement as a result of violations of the
Other Debt Agreements (as defined below) due to (i) the Specified Matters or (ii) until March 31,
2008, the failure to file with the Securities and Exchange Commission (the “SEC”) or to
transmit to holders thereunder the Affected Annual Report or the Affected Quarterly Reports as and
when required by the terms of the Other Debt Agreements and the Material Debt Agreements (as
defined below).

          SECTION 3. Amendment to Section 5.01. Effective as of the Third Amendment and Waiver
Effective Date, Section 5.01 of the Credit Agreement is hereby amended by:

          (a) replacing paragraph (a) of such Section with the following paragraph:

          (a) (i) with respect to each Fiscal Year of the Company (other than the Fiscal Year ended July
31, 2007), as soon as available, but in any event within 90 days after the end of each such Fiscal
Year or at such earlier time as the SEC may require the Company to deliver its Form 10-K
(commencing with the Fiscal Year ended July 31, 2006) and (ii) with respect to the Fiscal Year of
the Company ended July 31, 2007, as soon as available, but in any event by March 31, 2008, a
consolidated balance sheet of the Company and the Subsidiaries as at the end of such Fiscal Year,
and the related consolidated statements of earnings, shareholders’ equity and cash flows for such
Fiscal Year, setting forth in each case in comparative form the figures for the previous Fiscal
Year, all in reasonable detail and prepared in accordance with GAAP consistently applied throughout
the periods covered thereby, except as otherwise expressly noted therein,

 

 

 3

audited and accompanied
by a report and opinion of an independent certified public accountant of nationally recognized
standing reasonably acceptable to the Required Lenders, which report and opinion shall be prepared
in accordance with generally accepted auditing standards and shall not be subject to any “going
concern” or like qualification or exception or any qualification or exception as to the scope of
such financial statement audit; provided that (i) the requirements of this paragraph shall
be deemed satisfied by delivery within the time period specified above of (A) a copy of the
Company’s Annual Report on Form 10-K for such Fiscal Year (together with the Company’s annual
report to shareholders, if any, prepared pursuant to Rule 14a-3 under the Exchange Act) (“Form
10-K”) prepared in accordance with the requirements therefor and filed with the SEC or (B) a
notice setting forth a written reference to a website that contains such Form 10-K (together with
the Company’s annual report to shareholders, if any, prepared pursuant to Rule 14a-3 under the
Exchange Act); and

          (b) replacing paragraph (b) of such Section with the following paragraph:

          (b) (i) with respect to each of the first three fiscal quarters of the Company in any Fiscal
Year (other than the fiscal quarters ending October 31, 2007 and January 31, 2008), as soon as
available, but in any event within 45 days after the end of each such fiscal quarter or at such
earlier time as the SEC may require the Company to deliver its Form 10-Q (commencing with the
fiscal quarter ended October 31, 2006) and (ii) with respect to the fiscal quarters of the Company
ending October 31, 2007 and January 31, 2008, as soon as available, but in any event by March 31,
2008, (A) a consolidated balance sheet of the Company and the Subsidiaries as at the end of such
quarter and (B) consolidated statements of earnings of the Company and its Subsidiaries for such
quarter and (in the case of the second and third quarters) for the portion of the Fiscal Year
ending with such quarter, and a statement of cash flows for the portion of the Fiscal Year ending
with such quarter, setting forth in each case in comparative form the figures for the corresponding
periods in the previous Fiscal Year, all in reasonable detail, prepared in accordance with GAAP
applicable to quarterly financial statements generally consistently applied throughout the periods
covered thereby, except as otherwise expressly noted therein, and certified by a Responsible
Officer of the Company as fairly presenting, in all material respects, the financial position of
the Company and its Subsidiaries being reported on and their results of operations and cash flows,
subject to the changes resulting from year-end adjustments; provided that (i) the
requirements of this paragraph shall be deemed satisfied by delivery within the time period
specified above of (A) a copy of the Company’s Quarterly Report on Form 10-Q (“Form 10-Q”)
prepared in compliance with the requirements therefor and filed with the SEC or (B) a notice
setting forth a written reference to a website that contains such Form 10-Q, (ii) on or prior to
December 10, 2007, the Company shall deliver to the Facility Agent, in form and detail reasonably
satisfactory to the Facility Agent and the Lenders, an unaudited condensed consolidated statement
of earnings before interest and taxes, setting forth in comparative form the figures for the
corresponding period in the previous Fiscal Year, and balance sheet highlights comprised of
accounts receivable, inventory and indebtedness, in each case with respect to the Company and its
Subsidiaries as of and for the fiscal quarter ending October 31, 2007 and (iii) on or prior to
March 11, 2008, the Company shall deliver to

 

 

 4

 the Facility Agent, in form and detail reasonably
satisfactory to the Facility Agent and the Lenders, an unaudited condensed consolidated statement
of earnings before interest and taxes, setting forth in comparative form the figures for the
corresponding period in the previous Fiscal Year, and balance sheet highlights comprised of
accounts receivable, inventory and indebtedness, in each case with respect to the Company and its
Subsidiaries as of and for the fiscal quarter ending January 31, 2008.

          SECTION 4. Limitation on Waiver and Amendment. The waivers set forth in Section 2
extend only to the provisions referred to therein and shall not, directly or by implication,
constitute a waiver of any other provision of the Credit Agreement. Such waivers and the
amendments set forth in Section 3 shall automatically expire and be of no further force or effect,
with the same effect as if they had not been granted, without the necessity of any action by the
Agents or any Lender, if:

          (a) at any time (i) any Default or Event of Default (other than those waived pursuant
to Section 2) occurs under the Credit Agreement or (ii) the Facility Agent, acting at the
direction of the Required Lenders, provides written notice to the Company that the Required
Lenders have become aware, after the date of this Amendment, of information that, in the
Required Lenders’ reasonable judgment (consistent with U.S. generally accepted accounting
principles), renders the Restatement Provision inadequate in any material respect as of the
date of the filing of the 2007 Form 10-K with the SEC or would require a further
restatement of the Company’s financial statements in connection with the Specified Matters
or (iii) the Company shall have become aware that the Company’s counterparties under the
Material Debt Agreements or any other agreement governing Indebtedness of the Company or
its Subsidiaries (together with the Material Debt Agreements, the “Other Debt
Agreements”) (A) shall have declared the unpaid principal amount of the notes or the
loans or the other obligations thereunder, as the case may be, immediately due and payable
as a result of any violation or default attributable to the Specified Matters or (B) are
unwilling to grant a waiver as required hereunder of any violation or default existing
under the Other Debt Agreements, as the case may be;

          (b) on or prior to March 31, 2008, the Company shall have failed to deliver to the
Facility Agent counterparts of waivers of any violations or defaults under the Material
Debt Agreements duly executed and delivered by each of the parties thereto and containing
termination provisions with respect to developments in respect of the Specified Matters not
less favorable to the Company than those set forth in clause (ii) of paragraph (a) above;
or

          (c) on or prior to March 31, 2008, the Company shall have failed to deliver to the
Facility Agent counterparts of waivers of any violations or defaults under the Other Debt
Agreements, other than the Material Debt Agreements, duly executed and delivered by each of
the parties thereto.

The following agreements constitute the “Material Debt Agreements”: (i) the Second Amended
and Restated Term Note, dated as of June 20, 2007 (the “Yen Term Note”),

 

 

 5

among the Company
and Bank of America, N.A. and (ii) the ISDA Master Agreement and the related Schedule thereto, each
dated as of October 15, 1997 (the “Bank of America ISDA”), between Fleet National Bank and
Pall Corporation.

          SECTION 5. Fees. The Company agrees to pay on the Third Amendment and Waiver
Effective Date to the Facility Agent, for the account of each Lender that executes and delivers a
copy of this Amendment to the Administrative Agent (or its counsel) at or prior to 12:00 noon, New
York City time, on March 25, 2008, an amendment fee (the “Amendment Fee”) in the amount of
0.05% on the amount of such Lender’s Commitment. All such fees shall be payable in immediately
available funds and shall not be refundable.

          SECTION 6. Representations and Warranties. The Company hereby represents and
warrants to the Agents and the Lenders that, as of the Third Amendment and Waiver Effective Date
and after giving effect hereto:

          (a) This Amendment has been duly authorized, executed and delivered by the Company,
and each of this Amendment and the Credit Agreement (as modified hereby) constitutes the
Company’s legal, valid and binding obligation, enforceable against it in accordance with
its terms, except to the extent enforcement may be limited by applicable bankruptcy,
reorganization, moratorium, insolvency and similar laws affecting creditors’ rights
generally or by equitable principles of general application, regardless of whether
considered in a proceeding in equity or at law.

          (b) Except for the Specified Matters, all representations and warranties of each Loan
Party contained in the Loan Documents (as modified hereby) are true and correct in all
material respects on and as of the Third Amendment and Waiver Effective Date (except with
respect to representations and warranties expressly made only as of an earlier date, in
which case such representations and warranties were true and correct in all material
respects as of such earlier date).

          (c) Except for the Specified Matters, no Default or Event of Default has occurred and
is continuing.

          SECTION 7. Effectiveness. This Amendment shall become effective on the first date
(the “Third Amendment and Waiver Effective Date”) on which the Facility Agent shall have
received (i) counterparts hereof duly executed and delivered by the Company and the Required
Lenders and (ii) the Amendment Fees.

          SECTION 8. No Amendments or Other Waivers; Confirmation. (a) Except as expressly set
forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a
waiver of, or otherwise affect the rights and remedies of the Agents or the Lenders under the
Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way
affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit
Agreement or any other

 

 

 6

Loan Document, all of which are ratified and affirmed in all respects and
shall continue in full force and effect. Nothing herein shall be deemed to entitle any Loan Party
to a consent to, or a waiver, amendment, modification or other change of, any of the terms,
conditions, obligations, covenants or agreements contained in the Credit Agreement or any other
Loan Document in similar or different circumstances. This Amendment shall apply and be effective
only with respect to the provisions of the Credit Agreement specifically referred to herein. This
Amendment shall constitute a Loan Document.

          (b) On and after the Third Amendment and Waiver Effective Date, each reference in the
Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like
import, and each reference to the Credit Agreement in any other Loan Document, shall be
deemed a reference to the Credit Agreement as modified hereby.

          SECTION 9. Expenses. The Company agrees to reimburse the Agents for their
out-of-pocket expenses in connection with this Amendment, including the reasonable and documented
fees, charges and disbursements of counsel for the Agents.

          SECTION 10. Governing Law; Counterparts. (a) This Amendment shall be governed by, and
construed in accordance with, the laws of the State of New York.

          (b) This Amendment may be executed in any number of counterparts and by different
parties hereto in separate counterparts, and all such counterparts together shall
constitute one and the same instrument. Delivery of an executed counterpart of a signature
page of this Amendment by facsimile transmission or other electronic imaging means shall be
as effective as delivery of a manually executed counterpart hereof.

          SECTION 11. Headings. The headings of this Amendment are for purposes of reference
only and shall not limit or otherwise affect the meaning hereof.

[Signature pages to follow]

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment and Waiver to
be duly executed by their duly authorized officers, all as of the date and year first above
written.

	 	 	 	 	 
	 	PALL CORPORATION,

 	 
	 	    by	/s/ LISA MCDERMOTT
 	 
	 	 	Name:  	Lisa McDermott 	 
	 	 	Title:  	CFO & Treasurer 	 
	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,

as Facility Agent and as a Lender,

 	 
	 	    by	/s/ TARA LYNNE MOORE
 	 
	 	 	Name:  	Tara Lynne Moore 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	J.P. MORGAN EUROPE LIMITED,

as London Agent,

 	 
	 	    by	          
       /s/ CHING LOH
 	 
	 	 	Name:  	Ching Loh 	 
	 	 	Title:  	Associate 	 

 

 

	 	 	 	 	 

Lender signature page to the

Third Amendment and Waiver to the

Pall Corporation Credit Agreement

To approve the Third Amendment and Waiver:

Name of Lender,

	 	 	 	 	 
	     Bank of America, N.A.	 	 
	 	 	 
	 
	 	 	 	 
	     by

	 	/s/ MARTHA NOVAK	 	 
	 

	 	 	 	 
	 

	 	Name: Martha Novak	 	 
	 

	 	Title: Senior Vice President	 	 

	 	 	 	 	 
	For any Lender requiring a second signature line:	 	 
	 
	 	 	 	 
	     by

	 	 
	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

 

 

Lender signature page to the

Third Amendment and Waiver to the

Pall Corporation Credit Agreement

To approve the Third Amendment and Waiver:

Name of Lender,

	 	 	 	 	 
	     The Bank of New York	 	 
	 	 	 
	 
	 	 	 	 
	     by

	 	/s/ KENNETH P. SNEIDER, JR.	 	 
	 

	 	 	 	 
	 

	 	Name: Kenneth P. Sneider, Jr.	 	 
	 

	 	Title: Vice President	 	 

	 	 	 	 	 
	For any Lender requiring a second signature line:	 	 
	 
	 	 	 	 
	     by

	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

 

 

Lender signature page to the

Third Amendment and Waiver to the

Pall Corporation Credit Agreement

To approve the Third Amendment and Waiver:

Name of Lender,

	 	 	 	 	 
	     Bank of Tokyo-Mitsubishi UFJ Trust Company	 	 
	 	 	 
	 
	 	 	 	 
	     by

	 	/s/ GEORGE STOECKLEIN
	 	 
	 

	 	 	 	 
	 

	 	Name: George Stoecklein	 	 
	 

	 	Title: Vice President	 	 

	 	 	 	 	 
	For any Lender requiring a second signature line:	 	 
	 
	 	 	 	 
	     by

	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

 

 

Lender signature page to the

Third Amendment and Waiver to the

Pall Corporation Credit Agreement

To approve the Third Amendment and Waiver:

Name of Lender,

	 	 	 	 	 
	     BNP Paribas	 	 
	 	 	 
	 
	 	 	 	 
	     by

	 	/s/ ANEGLA B. ARNOLD
	 	 
	 

	 	 	 	 
	 

	 	Name: Angela B. Arnold	 	 
	 

	 	Title: Director	 	 

	 	 	 	 	 
	For any Lender requiring a second signature line:	 	 
	 
	 	 	 	 
	     by

	 	/s/ RICHARD DACOSTA
	 	 
	 

	 	 	 	 
	 

	 	Name: Richard DaCosta	 	 
	 

	 	Title: Director	 	 

 

 

Lender signature page to the

Third Amendment and Waiver to the

Pall Corporation Credit Agreement

To approve the Third Amendment and Waiver:

Name of Lender,

	 	 	 	 	 
	     Comerica Bank	 	 
	 	 	 
	 
	 	 	 	 
	     by

	 	/s/ SARAH R. WEST
	 	 
	 

	 	 	 	 
	 

	 	Name: Sarah R. West	 	 
	 

	 	Title: Assistant Vice President	 	 

	 	 	 	 	 
	For any Lender requiring a second signature line:	 	 
	 
	 	 	 	 
	     by

	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

 

 

Lender signature page to the

Third Amendment and Waiver to the

Pall Corporation Credit Agreement

To approve the Third Amendment and Waiver:

Name of Lender,

	 	 	 	 	 
	     Commerzbank AG, London Branch	 	 
	 	 	 
	 
	 	 	 	 
	     by

	 	/s/ M. TOTMAN
	 	 
	 

	 	 	 	 
	 

	 	Name:  M. Totman	 	 
	 

	 	Title: Associate Director	 	 

	 	 	 	 	 
	For any Lender requiring a second signature line:	 	 
	 
	 	 	 	 
	     by

	 	/s/  S. CHANDLER
	 	 
	 

	 	 	 	 
	 

	 	Name:  S. Chandler	 	 
	 

	 	Title: Director	 	 

 

 

Lender signature page to the

Third Amendment and Waiver to the

Pall Corporation Credit Agreement

To approve the Third Amendment and Waiver:

Name of Lender,

	 	 	 	 	 
	     HSBC Bank USA, National Association	 	 
	 	 	 
	 
	 	 	 	 
	     by

	 	/s/ GARY SARRO
	 	 
	 

	 	 	 	 
	 

	 	Name: Gary Sarro	 	 
	 

	 	Title: First Vice President	 	 

	 	 	 	 	 
	For any Lender requiring a second signature line:	 	 
	 
	 	 	 	 
	     by

	 	 
	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

 

 

Lender signature page to the

Third Amendment and Waiver to the

Pall Corporation Credit Agreement

To approve the Third Amendment and Waiver:

Name of Lender,

	 	 	 	 	 
	     INTESA SANPAOLO

     New York Branch	 	 
	 	 	 
	 
	 	 	 	 
	     by

	 	/s/ FRANK MAFFEI
	 	 
	 

	 	 	 	 
	 

	 	Name: Frank Maffei	 	 
	 

	 	Title: Vice President	 	 

	 	 	 	 	 
	For any Lender requiring a second signature line:	 	 
	 
	 	 	 	 
	     by

	 	/s/ JOHN J. MICHALISIN
	 	 
	 

	 	 	 	 
	 

	 	Name: John J. Michalisin	 	 
	 

	 	Title: First Vice President	 	 

 

 

Lender signature page to the

Third Amendment and Waiver to the

Pall Corporation Credit Agreement

To approve the Third Amendment and Waiver:

Name of Lender,

	 	 	 	 	 
	     The Royal Bank of Scotland plc	 	 
	 	 	 
	 
	 	 	 	 
	     by

	 	/s/ L. PETER YETMAN
	 	 
	 

	 	 	 	 
	 

	 	Name: L. Peter Yetman	 	 
	 

	 	Title: Senior Vice President	 	 

 

 

Lender signature page to the

Third Amendment and Waiver to the

Pall Corporation Credit Agreement

To approve the Third Amendment and Waiver:

Name of Lender,

	 	 	 	 	 
	     Sumitomo Mitsui Banking Corporation	 	 
	 	 	 
	 
	 	 	 	 
	     by

	 	/s/ YOSHIHIRO HYAKUTOME
	 	 
	 

	 	 	 	 
	 

	 	Name: Yoshihiro Hyakutome	 	 
	 

	 	Title: General Manager	 	 

 

 

Lender signature page to the

Third Amendment and Waiver to the

Pall Corporation Credit Agreement

To approve the Third Amendment and Waiver:

Name of Lender,

	 	 	 	 	 
	     UBS Loan Finance LLC	 	 
	 	 	 
	 
	 	 	 	 
	     by

	 	/s/ MARY E. EVANS
	 	 
	 

	 	 	 	 
	 

	 	Name: Mary E. Evans	 	 
	 

	 	Title: Associate Director	 	 

	 	 	 	 	 
	For any Lender requiring a second signature line:	 	 
	 
	 	 	 	 
	     by

	 	/s/ IRJA R. OTSA
	 	 
	 

	 	 	 	 
	 

	 	Name: Irja R. Otsa	 	 
	 

	 	Title: Associate Director	 	 

 

 

Lender signature page to the

Third Amendment and Waiver to the

Pall Corporation Credit Agreement

To approve the Third Amendment and Waiver:

Name of Lender,

	 	 	 	 	 
	     Wachovia Bank, N.A.	 	 
	 	 	 
	 
	 	 	 	 
	     by

	 	/s/ ROBERT J. MILAS
	 	 
	 

	 	 	 	 
	 

	 	Name: Robert J. Milas	 	 
	 

	 	Title: Vice President	 	 

	 	 	 	 	 
	For any Lender requiring a second signature line:	 	 
	 
	 	 	 	 
	     by

	 	 
	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:EX-10.8

 

Exhibit 10.8

[Senior Vice President

Single Bonus]

     EMPLOYMENT AGREEMENT dated August 1, 2005 between PALL CORPORATION, a New York corporation
(the “Company”), and Mary Ann Bartlett (“Executive”).

     In consideration of the mutual agreements hereinafter set forth, the parties hereto agree as
follows:

     §1. Employment and Term

     The Company hereby employs Executive, and Executive hereby agrees to serve, as an executive
employee of the Company with the duties set forth in §2, for a term (hereinafter called the “Term
of Employment”) beginning August 1, 2005 (the “Term Commencement Date”) and ending, unless sooner
terminated under §4, on the effective date specified in a notice of termination given by either
party to the other except that such effective date shall not be earlier than the second
anniversary of the date on which such notice is given.

     §2. Duties.

     Executive agrees that during the Term of Employment she will hold such offices or positions
with the Company, and perform such duties and assignments relating to the business of the Company,
as the chief executive officer of the Company shall direct except that Executive shall not be
required to hold any office or position or to perform any duties or assignment inconsistent with
her experience and qualifications or not customarily performed by a corporate officer.

     If the chief executive officer of the Company so directs, Executive shall serve as an officer
of one or more subsidiaries of the Company (provided that the duties of such office are not
inconsistent with Executive’s experience and qualifications and are duties customarily performed
by a corporate officer) and part or all of the compensation to which Executive is entitled
hereunder may be paid by such subsidiary or subsidiaries. However, such employment and/or payment
of Executive by a subsidiary or subsidiaries shall not relieve the Company from any of its
obligations under this Agreement except to the extent of payments actually made to Executive by a
subsidiary.

     During the Term of Employment Executive shall, except during customary vacation periods and
periods of illness, devote substantially all of her business time and attention to the performance
of her duties hereunder and to the business and affairs of the Company and its

 

 

subsidiaries and to promoting the best interests of the Company and its subsidiaries and she shall
not, either during or outside of such normal business hours, engage in any activity inimical to
such best interests.

     §3. Compensation During Term of Employment.

     (a) Base Salary. With respect to the period beginning on the Term Commencement
Date and ending on the 31st day of July next following the Term Commencement Date, the
Company shall pay Executive a Base Salary (in addition to the compensation provided for elsewhere
in this Agreement) at the rate of $215,000 per annum (hereinafter called the “Original Base
Salary”). With respect to each Contract Year beginning with the Contract Year which starts on the
first day of August next following the Term Commencement Date, the Company shall pay Executive a
Base Salary at such rate as the Board of Directors may determine but not less than the Original
Base Salary adjusted as follows: The term “Contract Year” as used herein means the period from
August 1 of each year through July 31 of the following year. The term “Consumer Price Index” as
herein used means the “Consumer Price Index for all Urban Consumers” compiled and published by the
Bureau of Labor Statistics of the United States Department of Labor for “New York — Northern N.J. -
Long Island, NY-NJ-CT-PA”, For each Contract Year during the Term of Employment beginning with the
Contract Year which starts on the first day of August next following the Term Commencement Date,
the minimum compensation payable to Executive under this §3(a) (hereinafter called the “Minimum
Base Salary”) shall be determined by increasing (or decreasing) the Original Base Salary by the
percentage increase (or decrease) of the Consumer Price Index for the month of June immediately
preceding the start of the Contract Year in question over (or below) the Consumer Price Index for
the month of June next preceding the Term Commencement Date. [To illustrate the operation of the
foregoing provisions of this paragraph: In an Employment Agreement as to which the Term
Commencement Date was August 1, 2003, the executive’s base salary for the Contract Year August 1,
2004 through July 31, 2005 would be not less than the Original Base Salary under that Employment
Agreement adjusted by the percentage increase (or decrease) of the Consumer Price Index for June
2004 over (or below) said Index for June 2003.] Further adjustment in the Minimum Base Salary shall
be made for each ensuing Contract Year, in each case (i) using the Consumer Price Index for the
month of June next preceding the Term
Commencement Date as the base except as provided in the immediately following paragraph

 - 2 - 

 

hereof and (ii) applying the percentage increase (or decrease) in the Consumer Price Index since
said base month to the Original Base Salary to determine the Minimum Base Salary. The Base Salary
shall be paid in such periodic installments as the Company may determine but not less often than
monthly.

     If with respect to any Contract Year (including the Contract Year beginning on the first day
of August next following the Term Commencement Date) the Board of Directors fixes the Base Salary
at an amount higher than the Minimum Base Salary, then (unless the resolution fixing such higher
Base Salary provides otherwise), for the purpose of determining the Minimum Base Salary for
subsequent Contract Years: (1) the amount of the higher Base Salary so fixed shall be deemed
substituted for the Original Base Salary wherever the Original Base Salary is referred to in the
immediately preceding paragraph hereof, and (ii) the base month for determining the Consumer Price
Index adjustment shall be June of the calendar year in which the Contract Year to which such higher
Base Salary is applicable begins. [To illustrate the operation of the foregoing provisions of this
paragraph: If the Board of Directors were to fix a Base Salary for a Contract Year beginning, say,
August 1, 2005 which is higher than the Minimum Base Salary for that Contract Year, then June 2005
would become the base month for the purposes of making the Consumer Price Index adjustment to
determine the Minimum Base Salary for subsequent Contract Years unless and until the Board of
Directors were to fix a Base Salary higher than the Minimum Base Salary for a subsequent Contract
Year.]

     (b) Bonus Compensation. As used herein, the term “Bonus Plan” means the Pall
Corporation Executive Incentive Bonus Plan adopted by the Compensation Committee of the Board of
Directors of the Company on October 16, 2003, approved by shareholders at the annual meeting of
shareholders on November 19, 2003 and amended by the Compensation Committee on July 19, 2004, a
copy of which is annexed hereto and incorporated herein by reference. Words and terms used herein
with initial capital letters and not defined herein are used herein as defined in the Bonus Plan.
With respect to each Fiscal Year of the Company falling in whole or in part within the Term of
Employment beginning with the Fiscal Year ending on the Saturday nearest to the 31st day
of the month of July next following the Term Commencement Date,
Executive shall be entitled to receive a Bonus pursuant to this Agreement in an amount
determined in accordance with and subject to all of the terms of the Bonus Plan.

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     For purposes of determining the amount of the Bonus payable to Executive for any Fiscal Year
as provided in this §3(b) (the “Plan Bonus”), Executive’s Target Bonus Percentage shall be 105% of
her Base Salary for such Fiscal Year.

     (c) Fringe Benefits and Perquisites. During the Term of Employment, Executive
shall enjoy the customary perquisites of office, including, but not limited to, office space
and furnishings, secretarial services, expense reimbursements and any similar
emoluments customarily afforded to senior executive officers of the Company at the same level as
Executive. Executive shall also be entitled to receive or participate in all “fringe benefits” and
employee benefit plans provided or made available by the Company to its executives or management
personnel generally (such as, but not limited to, group hospitalization, medical, life and
disability insurance, and pension, retirement, profit-sharing and stock option or purchase plans), at
such time and on such terms and conditions as each such plan provides.

     (d) Vacations. Executive shall be entitled each year to a vacation or vacations in
accordance with the policies of the Company as determined by the Board or by an authorized
senior officer of the Company from time to time. The Company shall not pay Executive any
additional compensation for any vacation time not used by Executive.

	 	 	 	 	 
	 

	  §4.
 Termination by Reason of Disability, Death, Retirement or Change in Control.

     (a) Disability or Death. If, during the Term of Employment, Executive, by reason
of physical or mental disability, is incapable of performing her principal duties hereunder for an
aggregate of 130 working days out of any period of twelve consecutive months, the Company at its
option may terminate the Term of Employment effective immediately by notice to Executive given
within 90 days after the end of such twelve-month period. If Executive shall die during the
Term of Employment or if the Company terminates the Term of Employment pursuant to the
immediately preceding sentence by reason of Executive’s disability, the Company shall pay to
Executive, or to Executive’s legal representatives, or in accordance with a direction given by
Executive to the Company in writing, the following: (i) Executive’s Base Salary to the end of the
month in which such death or termination for disability occurs and any Plan Bonus or pro rata
portion thereof that Executive is entitled to receive in accordance with §3(b) hereof and (ii) for
each month in the period from the end of the month in which such death or termination for
disability occurs until the earlier of (x) the first anniversary of the date of death or
termination and (y) the date on which the Term of Employment would have ended but for such death or

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termination for disability, monthly payments of an amount equal to 1/12th of 102.5% of the annual
rate of Base Salary in effect for Executive immediately prior to the date on which Executive’s
death or termination for disability occurs (such 102.5% being comprised of one-half of such Base
Salary and one-half of Executive’s Target Bonus Percentage set forth in §3 (b) hereof).

     (b) Retirement. (i) The Term of Employment shall end automatically, without
action by either party, on Executive’s 65th birthday unless, prior to such birthday, Executive and
the Company have agreed in writing that the Term of Employment shall continue past such 65th
birthday. In the latter event, unless the parties have agreed otherwise, the Term of Employment
shall be automatically renewed and extended each year, as of Executive’s birthday, for an
additional one-year term, unless either party has given a Non-Renewal Notice. A Non-Renewal Notice
shall be effective as of Executive’s ensuing birthday only if given not less than 60 days before
such birthday, and shall state that the party giving such notice elects that this Agreement shall
not automatically renew itself further, with the result that the Term of Employment shall end on
Executive’s ensuing birthday.

          (ii) If the Term of Employment ends pursuant to this §4(b) by reason of a notice given by
either party as herein permitted or automatically at age 65 or any subsequent birthday, the
Company shall pay to Executive, or to another payee specified by Executive to the Company in
writing, (i) Executive’s Base Salary prorated to the date on which the Term of Employment ends and
(ii) any Plan Bonus or pro rata portion thereof that Executive is entitled to receive in
accordance with §3(b) hereof.

          (iii) Anything hereinabove to the contrary notwithstanding, if any provision of
this §4(b) violates federal or applicable state law relating to discrimination on account of
age, such provision shall be deemed modified or suspended to the extent necessary to eliminate such
violation of law. If at a later date, by reason of changed circumstances or otherwise, the
enforcement of such provision as set forth herein would no longer constitute a violation of law,
then it shall be enforced in accordance with its terms as set forth herein.

     (c) Change in Control. In the event of a Change in Control (as defined in the
Bonus Plan), Executive shall have the right to terminate the Term of Employment, by notice to the
Company given at any time after such Change in Control, effective on the date specified in such
notice, which date shall not be more than (but can be less than) one year after the giving of such
notice.

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     §5. Covenant Not to Compete.

     For a period of eighteen months after the end of the Term of Employment if the Term of
Employment is terminated by notice to the Company given by Executive under §1 or §4 hereof, or for
a period of twelve months after the end of the Term of Employment if the Term of Employment is
terminated by notice to Executive given by the Company under § 1 or §4 hereof or terminates under
§4 by reason of Executive’s attaining the age of 65, Executive shall not render services to any
corporation, individual or other entity engaged in any activity, or herself engage directly or
indirectly in any activity, which is competitive to any material extent with the business of the
Company or any of its subsidiaries, provided, however, that if the Company terminates
under §1 following a Change in Control (as defined in the Bonus Plan), the foregoing covenant not
to compete shall not apply.

     §6. Company’s Right to Injunctive Relief.

     Executive acknowledges that her services to the Company are of a unique character, which
gives them a peculiar value to the Company, the loss of which cannot be reasonably or adequately
compensated in damages in an action at law, and that therefore, in addition to any other remedy
which the Company may have at law or in equity, the Company shall be entitled to injunctive relief
for a breach of this Agreement by Executive.

     §7. Inventions and Patents.

     All inventions, ideas, concepts, processes, discoveries, improvements and trademarks
(hereinafter collectively referred to as intangible rights), whether patentable or registrable or
not, which are conceived, made, invented or suggested either by Executive alone or by Executive in
collaboration with others during the Term of Employment, and whether or not during regular
working hours, shall be disclosed to the Company and shall be the sole and exclusive property of
the Company. If the Company deems that any of such intangible rights are patentable or otherwise
registrable under any federal, state or foreign law, Executive, at the expense of the Company,
shall execute all documents and do all things necessary or proper to obtain patents and/or
registrations and to vest the Company with full title thereto.

 - 6 - 

 

     §8. Trade Secrets and Confidential Information.

     Executive shall not, either directly or indirectly, except as required in the course of her
employment by the Company, disclose or use at any time, whether during or subsequent to the Term
of Employment, any information of a proprietary nature owned by the Company, including, but not
limited to, records, data, formulae, documents, specifications, inventions, processes, methods and
intangible rights which are acquired by her in the performance of her duties for the Company and
which are of a confidential information or trade secret nature. All records, files, drawings,
documents, equipment and the like, relating to the Company’s business, which Executive shall
prepare, use, construct or observe, shall be and remain the Company’s sole property. Upon the
termination of her employment or at any time prior thereto upon request by the Company, Executive
shall return to the possession of the Company any materials or copies thereof involving any
confidential information or trade secrets and shall not take any material or copies thereof from
the possession of the Company.

     §9. Mergers and Consolidations; Assignability.

     In the event that the Company, or any entity resulting from any merger or consolidation
referred to in this §9 or which shall be a purchaser or transferee so referred to, shall at any
time be merged or consolidated into or with any other entity or entities, or in the event that
substantially all of the assets of the Company or any such entity shall be sold or otherwise
transferred to another entity, the provisions of this Agreement shall be binding upon and shall
inure to the benefit of the continuing entity in or the entity resulting from such merger or
consolidation or the entity to which such assets shall be sold or transferred. Except as provided
in the immediately preceding sentence of this §9, this Agreement shall not be assignable by the
Company or by any entity referred to in such immediately preceding sentence. This Agreement
shall not be assignable by Executive, but in the event of her death, it shall be binding upon
and inure to the benefit of her legal representatives to the extent required to effectuate the
terms hereof.

 - 7 - 

 

     §10. Captions.

     The captions in this Agreement are not part of the provisions hereof, are merely for the
purpose of reference and shall have no force or effect for any purpose whatsoever, including the
construction of the provisions of this Agreement, and if any caption is inconsistent with any
provisions of this Agreement, said provisions shall govern.

     §11. Choice of Law.

     This Agreement is made in, and shall be governed by and construed in accordance with the laws
of, the State of New York.

     §12. Entire Contract.

     This instrument contains the entire agreement of the parties on the subject matter hereof
except that the rights of the Company hereunder shall be deemed to be in addition to and not in
substitution for its rights under the Company’s standard printed form of “Employee’s Secrecy and
Invention Agreement” or “Employee Agreement” if heretofore or hereafter entered into between the
parties hereto so that the making of this Agreement shall not be construed as depriving the
Company of any of its rights or remedies under any such Secrecy and Invention Agreement or
Employee Agreement. This Agreement may not be changed orally, but only by an agreement in writing
signed by the party against whom enforcement of any waiver, change, modification, extension or
discharge is sought.

     §13. Notices.

     All notices given hereunder shall be In writing and shall be sent by registered or certified
mail, overnight courier service such as Federal Express or UPS Next Day Air or delivered by hand,
and, if intended for the Company, shall be addressed to it (if sent by mail or overnight courier
service) or delivered to it (if delivered by hand) at its principal office for the attention of the
Chief Executive Officer of the Company, or at such other address and for the attention of such
other person of which the Company shall have given notice to Executive in the manner herein
provided, and, if intended for Executive, shall be delivered to her personally or shall be
addressed to her (if sent by mail or overnight delivery service) at her most recent residence
address shown in the Company’s employment records or at such other address or to such designee
of which Executive shall have given notice to the Company in the manner herein provided. Each such
notice shall be deemed to be given on the date on which it is mailed or delivered to the overnight
courier service or, if delivered personally, on the date so delivered.

 - 8 - 

 

     §14. Termination of Existing Agreement.

     Any employment agreement between the parties hereto which is in effect on the date hereof is
hereby terminated and replaced and superseded by this Agreement effective on the Term Commencement
Date. All payments, of Base Salary or otherwise, made by the Company under any such existing
agreement with respect to any period commencing on or after the Term Commencement Date shall be
credited against the corresponding payment obligations of the Company under this Agreement with
respect to such period.

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

	 	 	 	 	 	 	 
	 	 	PALL CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/  Eric Krasnoff
 

Name: Eric Krasnoff
	 	 
	 

	 	 	 	Title: Chairman & Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Mary Ann Bartlett	 	 
	 	 	 	 	 
	 	 	Mary Ann Bartlett	 	 

     [Form prepared 2/03]

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