Document:

ex10-4.htm

Exhibit 10.4

 

	
Schedule A

	
Death Benefit Amounts

	  	 	  
	
Robert Johnson

	 
	
AS OF

	 	
DEATH BENEFIT

	  	 	  
	
Jan. 2012

	 	
902,977

	
Jan. 2013

	 	
924,138

	
Jan. 2014

	 	
959,856

	
Jan. 2015

	 	
996,534

	
Jan. 2016

	 	
1,034,157

	
Jan. 2017

	 	
1,072,708

	
Jan. 2018

	 	
1,112,162

	
Jan. 2019

	 	
1,148,809

	
Jan. 2020

	 	
1,099,831

	
Jan. 2021

	 	
1,047,915

	
Jan. 2022

	 	
992,884

	
Jan. 2023

	 	
934,551

	
Jan. 2024

	 	
872,718

	
Jan. 2025

	 	
807,176

	
Jan. 2026

	 	
737,700

	
Jan. 2027

	 	
664,056

	
Jan. 2028

	 	
585,993

	
Jan. 2029

	 	
503,247

	
Jan. 2030

	 	
415,536

	
Jan. 2031

	 	
322,562

	
Jan. 2032

	 	
224,010

	
Jan. 2033

	 	
118,001

 

  

  

  

 

	
Schedule A

	
Death Benefit Amounts

	  
	
Lee Washam

	 
	
AS OF

	 	
DEATH BENEFIT

	  	 	  
	
Jan. 2012

	 	
346,348

	
Jan. 2013

	 	
357,413

	
Jan. 2014

	 	
377,074

	
Jan. 2015

	 	
397,807

	
Jan. 2016

	 	
419,671

	
Jan. 2017

	 	
442,726

	
Jan. 2018

	 	
467,037

	
Jan. 2019

	 	
492,672

	
Jan. 2020

	 	
519,701

	
Jan. 2021

	 	
548,200

	
Jan. 2022

	 	
569,652

	
Jan. 2023

	 	
545,083

	
Jan. 2024

	 	
519,040

	
Jan. 2025

	 	
491,435

	
Jan. 2026

	 	
462,173

	
Jan. 2027

	 	
431,155

	
Jan. 2028

	 	
398,277

	
Jan. 2029

	 	
363,426

	
Jan. 2030

	 	
326,483

	
Jan. 2031

	 	
287,324

	
Jan. 2032

	 	
245,816

	
Jan. 2033

	 	
201,817

	
Jan. 2034

	 	
155,178

	
Jan. 2035

	 	
104,300

  

  

  

 

	
Schedule A

	
Death Benefit Amounts

	  
	
Curt Kollar

	 
	
AS OF

	 	
DEATH BENEFIT

	  	 	  
	
Jan. 2012

	 	
115,208

	
Jan. 2013

	 	
110,802

	
Jan. 2014

	 	
100,995

	
Jan. 2015

	 	
89,611

	
Jan. 2016

	 	
76,498

	
Jan. 2017

	 	
61,489

	
Jan. 2018

	 	
60,559

	
Jan. 2019

	 	
59,554

	
Jan. 2020

	 	
58,487

	
Jan. 2021

	 	
57,357

	
Jan. 2022

	 	
56,159

	
Jan. 2023

	 	
54,889

	
Jan. 2024

	 	
53,543

	
Jan. 2025

	 	
52,117

	
Jan. 2026

	 	
50,604

	
Jan. 2027

	 	
49,001

	
Jan. 2028

	 	
47,302

	
Jan. 2029

	 	
44,657

	
Jan. 2030

	 	
31,434

	
Jan. 2031

	 	
17,418ex10-5.htm

Exhibit 10.5

 

CHARTERBANK

AMENDMENT TO THE CHARTERBANK

SPLIT DOLLAR AGREEMENT

THIS Amendment is made and entered into this 25th day of September, 2012, by and among CHARTERBANK (the “Bank”) and the undersigned INSURED (the “Insured”).

WITNESSETH THAT:

WHEREAS, the Bank and the Insured executed a Split Dollar Agreement on June 18, 2010 known as the "Split Dollar Agreement" (the "Agreement"); and

WHEREAS, the Bank desires to modify the amount of the death benefit in the Agreement;

 

NOW, THEREFORE, in consideration of the mutual promises contained in the Agreement, the Bank and the Insured agree as follows:

	
1.

	
The death benefit amounts as indicated in Schedule A, attached to this Amendment, are hereby established as additional amounts payable as part of the Agreement.

	
2.

	
Such death benefit amounts are subject to all terms and conditions of the Agreement.

 

	
3.

	
In all other respects, the Bank and the Insured ratify the terms of the Agreement.

The parties have executed this Agreement as of the day and year first above written.

 

	 	 	 	CHARTERBANK:	 
	 	 	 	 	 
	 	 	 	By: /s/ Thomas M. Lane	 
	 	 	 	 	 
	 	/s/ Bill C Gladden	 	Chair of Board P&C	 
	 	Attest	 	Title	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	ROBERT JOHNSON	 
	 	 	 	 	 
	 	/s/ Curt Johnson	 	Robert L Johnson	 
	 	Witness 	 	Insured/Employeeex10-6.htm

Exhibit 10.6

 

CHARTERBANK

AMENDMENT TO THE CHARTERBANK

SPLIT DOLLAR AGREEMENT

THIS Amendment is made and entered into this 25th day of September, 2012, by and among CHARTERBANK (the “Bank”) and the undersigned INSURED (the “Insured”).

WITNESSETH THAT:

WHEREAS, the Bank and the Insured executed a Split Dollar Agreement on June 18, 2010 known as the "Split Dollar Agreement" (the "Agreement"); and

WHEREAS, the Bank desires to modify the amount of the death benefit in the Agreement;

 

NOW, THEREFORE, in consideration of the mutual promises contained in the Agreement, the Bank and the Insured agree as follows:

	
1.

	
The death benefit amounts as indicated in Schedule A, attached to this Amendment, are hereby established as additional amounts payable as part of the Agreement.

	
2.

	
Such death benefit amounts are subject to all terms and conditions of the Agreement.

 

	
3.

	
In all other respects, the Bank and the Insured ratify the terms of the Agreement.

The parties have executed this Agreement as of the day and year first above written.

 

	 	 	 	CHARTERBANK:	 
	 	 	 	 	 
	 	 	 	By: /s/ Thomas M. Lane	 
	 	 	 	 	 
	 	/s/ Bill C Gladden	 	Chair of Board P&C	 
	 	Attest	 	Title	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	LEE WASHAM	 
	 	 	 	 	 
	 	/s/ Tawanna B Giles	 	/s/ Lee Washam	 
	 	Witness 	 	Insured/Employeeex10-7.htm

Exhibit 10.7

 

CHARTERBANK

AMENDMENT TO THE CHARTERBANK

SPLIT DOLLAR AGREEMENT

THIS Amendment is made and entered into this 25th day of September, 2012, by and among CHARTERBANK (the “Bank”) and the undersigned INSURED (the “Insured”).

WITNESSETH THAT:

WHEREAS, the Bank and the Insured executed a Split Dollar Agreement on June 18, 2010, known as the "Split Dollar Agreement" (the "Agreement"); and

WHEREAS, the Bank desires to modify the amount of the death benefit in the Agreement;

 

NOW, THEREFORE, in consideration of the mutual promises contained in the Agreement, the Bank and the Insured agree as follows:

	
1.

	
The death benefit amounts as indicated in Schedule A, attached to this Amendment, are hereby established as additional amounts payable as part of the Agreement.

	
2.

	
Such death benefit amounts are subject to all terms and conditions of the Agreement.

 

	
3.

	
In all other respects, the Bank and the Insured ratify the terms of the Agreement.

The parties have executed this Agreement as of the day and year first above written.

 

 

	 	 	 	CHARTERBANK:	 
	 	 	 	 	 
	 	 	 	By: /s/ Thomas M. Lane	 
	 	 	 	 	 
	 	/s/ Bill C Gladden	 	Chair of Board P&C	 
	 	Attest	 	Title	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	CURT KOLLAR	 
	 	 	 	 	 
	 	/s/ Curt Johnson	 	/s/ Curtis R Kollar	 
	 	Witness 	 	Insured/EmployeeExhibit 10.5 

Employment Agreement

     EMPLOYMENT
AGREEMENT dated as of August 18, 2010
between PALL CORPORATION, a New York corporation (the “Company”), and Yves Baratelli (“Executive”) (this “Agreement”). 

    
In consideration of the mutual agreements hereinafter set forth,
effective as of August 18, 2010 (the “Effective Date”), the
parties hereto agree as follows. 

Section 1. Employment

    
The Company hereby employs Executive, and Executive hereby agrees to
serve, as President, Pall Life Sciences with the duties set forth in Section 2,
until such time as Executive’s employment terminates in accordance with the
terms of Section 4 hereof. 

Section 2. Duties

    
(a) Executive agrees that during Executive’s employment Executive will
perform such duties and have such authority as is customarily assigned to and
possessed by the President of Pall Life Sciences, and further agrees that
Executive will hold such other 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 Executive’s experience and
qualifications.

1

     (b) 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
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. 

    
(c) During Executive’s employment, Executive shall, except during
customary vacation periods and periods of illness, devote substantially all of
Executive’s business time and attention to the performance of Executive’s duties
hereunder, to the business and affairs of the Company and its subsidiaries and
to promoting the best interests of the Company and its subsidiaries, and
Executive shall not, either during or outside of such normal business hours,
engage in any activity inimical to such best interests. 

Section 3. Compensation

    
(a) Base Salary. During Executive’s employment, the Company shall pay
Executive a base salary (“Base
Salary”) at the rate of no less than $487,000
per annum. Base Salary shall be paid in such periodic installments as the
Company may determine but not less often than monthly. The Chief Executive
Officer of the Company will review Base Salary annually and may, in the Chief
Executive Officer’s discretion, recommend to the Compensation Committee of the
Board of Directors of the Company (the “Compensation Committee”) that an
increase be made in Base Salary. Any such recommended increase shall take effect
only if, and to the extent that, it is approved by the Compensation Committee in
its sole discretion. For the avoidance of doubt, with respect to each fiscal
year of the Company (a “Fiscal Year”) beginning with the Fiscal Year which
starts on the first day of August next following the Effective Date, the Company
shall pay Executive Base Salary at such rate as the Compensation Committee shall
determine but not less than the amount of Base Salary payable to Executive in
the preceding Fiscal Year. 

2

     (b)
Bonus Compensation.

          (i)
Plan Bonus.
With respect to each Fiscal Year of the Company falling in whole or in part
during Executive’s employment following the Effective 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 Pall Corporation
2004 Executive Incentive Bonus Plan as it may be amended from time to time, a
copy of which is annexed hereto and incorporated herein by reference (the
“Bonus Plan”). Words and terms used herein with initial capital letters and not
defined herein are used herein as defined in the Bonus Plan. For purposes of
determining the amount of the bonus payable to Executive for any Fiscal Year
under the Bonus Plan (the “Plan
Bonus”), Executive’s Target Bonus Percentage
shall be 105% for such Fiscal Year. 

          (ii)
Payment of Plan Bonus. Executive’s Plan Bonus shall be paid in accordance with §5 of the Bonus Plan. With respect to any
Fiscal Year which falls in part but not in whole during the period of
Executive’s employment, the pro rata portion of the Plan Bonus to which
Executive is entitled under this Section 3(b) shall be determined in accordance
with §3(c) of the Bonus Plan. 

3

     (c)
Fringe Benefits and
Perquisites. During Executive’s employment,
Executive shall enjoy the customary perquisites of office, including, but not
limited to, office space and furnishings, expense reimbursements and any similar
emoluments customarily afforded to executives of the Company at the same level.
During Executive’s employment, 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 executives or management personnel generally (such
as, but not limited to, group hospitalization, medical, life and disability
insurance, and pension, 401(k) 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

Section 4. Separation from Service; Change in
Control 

     (a) Separation from
Service. Subject to Section 17 below, if for
any reason Executive experiences a “separation
from service” as defined under Section 409A of the Internal Revenue Code
of 1986, as amended (the “Code”) and the rules and regulations issued thereunder
(“Section 409A”), Executive (or Executive’s estate in the event of Executive’s death)
shall be entitled to (i) any accrued but unpaid Base Salary as of the date of
such separation, (ii) any Plan Bonus earned but unpaid for the Fiscal Year
preceding the Fiscal Year that includes the date of such separation, paid to the
extent payable under and in accordance with the terms of the Bonus Plan, (iii)
any Plan Bonus or pro rata portion thereof that Executive may be entitled to
receive under the Bonus Plan with respect to the Fiscal Year in which the
separation from service takes place, paid to the extent payable under and in
accordance with the terms of the Bonus Plan, (iv) any unreimbursed business
expenses as of the date of such separation, paid within thirty (30) days of the
separation from service upon presentation of supporting documentation in
accordance with normal practice and (v) any vested benefits as of the date of
such separation under any benefit plans maintained, or contributed to, by the
Company, or any disability benefits program sponsored by the Company, in
accordance with the terms and conditions of each such plan or program.

5

    
(b) Disability or Death. If Executive shall die during Executive’s employment or if
Executive experiences a separation from service because the Company terminates
Executive’s employment by reason of Executive becoming Disabled, 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, subject, other than in the event of death, to Executive’s compliance
with Sections 5, 6, 7, 9 and 10 below and subject, other than in the event of
death, to Sections 17 and 18 below: (i) the benefits set forth under Section
4(a), (ii) Executive’s Base Salary to the end of the month in which a separation
from service under this Section 4(b) occurs, paid in accordance with the
Company’s normal payroll practices, and (iii) a cash payment equal to (x) 50% of
Base Salary plus (y) 50% of Executive’s Target Bonus Percentage multiplied by
Base Salary, in each case, as such Base Salary and Target Bonus Percentage were
in effect for Executive immediately prior to the date on which separation from
service under this Section 4(b) occurs, paid in twelve (12) equal monthly
installments commencing on the Company’s first regularly scheduled payroll date
in the month following the month in which separation from service under this
Section 4(b) occurs and on the Company’s first regularly scheduled payroll date
in each of the next eleven (11) months thereafter. 

     “Disabled” means that
Executive is, by reason of physical or mental disability, incapable of
performing Executive’s principal duties hereunder for an aggregate of one
hundred thirty (130) working days out of any period of twelve (12) consecutive
months.

     In the event that
Executive’s employment terminates as described in this Section 4(b), Executive
shall have no right to any compensation or any other benefits under this
Agreement except as set forth in Section 4(a) and this Section 4(b).

6

    
(c) Involuntary Separation From Service
Without Cause; Resignation for Good Reason. In
the event that Executive experiences a separation from service with the Company
due to (1) the Company’s termination of his
employment without Cause (as defined below)
or (2) Executive’s termination of his
employment for Good Reason (as defined
below), then subject to Executive’s compliance with Sections 5, 6, 7, 9 and 10
below (where applicable), subject to Sections 17 and 18 below and other than in
circumstances set forth in Sections 4(b), 4(e) or 4(f), Executive will receive
the following compensation and benefits under this Agreement in lieu of any
compensation or benefits to which he might otherwise be entitled under Section 3
of this Agreement or any benefit plans referenced therein: 

	          	(i)	     	Each month for a period of
      twenty-four (24) consecutive months, beginning with the month following
      the month in which Executive’s separation from service occurs, the Company
      shall make a payment in an amount equal to (X) the sum of (1) Base Salary
      at the annual rate at which Executive’s Base Salary was payable
      immediately prior to Executive’s separation from service and (2) the
      amount determined under clause (X)(1) multiplied by 70% of the Target
      Bonus Percentage as in effect immediately prior to separation from
      service, divided by (Y) 12. Each installment will be paid on the Company’s
      first regularly scheduled payroll date in the applicable
  month.
		 
		(ii)		During the period beginning on
      the date of Executive’s separation from service and ending on the two-year
      anniversary thereof, any of Executive’s restricted stock units and stock
      options that are (A) not yet vested under the 2005 Stock Compensation
      Plan, as amended (the “Stock
      Plan”), and (B) outstanding, in each
      case as of the date of Executive’s separation from service, will not be
      cancelled, but will continue to vest and be settled or become exercisable,
      as applicable, in the manner and at the times set forth in the applicable
      grant agreements and the Stock Plan as though Executive had not
      experienced a separation from service until such two-year
      anniversary.
		 
		(iii)		(A) During the period beginning
      on the date of Executive’s separation from service and ending on the
      two-year anniversary thereof, any of Executive’s restricted stock units
      and stock options that are (A) not yet vested under the 2005 Stock
      Compensation Plan, as amended (the “Stock Plan”), and (B)
      outstanding in each case as of the date of Executive’s separation from
      service, will not be cancelled, but will continue to vest and be settled
      or become exercisable, as applicable, in the manner and at the times set
      forth in the applicable grant agreements and the Stock Plan as though
      Executive had not experienced a separation from service until such
      two-year anniversary in the MSPP), Executive will be deemed to have
      Retired as of the date of separation from service under the MSPP and to have been “Involuntarily Terminated” (as defined in
      the MSPP) as of the second anniversary of separation from service under
      the MSPP.

      (B) Any vested units Executive had
      previously deferred under the MSPP, to the extent payable upon a
      Termination of Employment (as defined in the MSPP), will be paid on the
      two-year anniversary of Executive’s separation from service.
      

7

	          	(iv)	     	Any monthly pension to which
      Executive is entitled under the Pall Corporation Supplementary Pension
      Plan (the “SPP”) will be calculated at the time of the two-year
      anniversary of Executive’s separation from service and will commence
      payment on the later of the first day of the month after Executive has
      attained his Early Retirement Date (as defined in the SPP) and the
      two-year anniversary of Executive’s separation from service. Upon
      separation from service, Executive shall be credited with two (2) years of
      age and two (2) years of service for purposes of eligibility and vesting
      under the SPP.
		 
		(v)		During the period beginning on
      the date of Executive’s separation from service and ending on the date
      that is eighteen (18) months after active employee group medical coverage
      is terminated on account of such separation from service, Executive shall,
      to the extent Executive elects to continue to participate in the
      continuation coverage under the Company’s Comprehensive Welfare Benefits
      Plan offered by the Company under the Consolidated Omnibus Budget
      Reconciliation Act of 1985 (“COBRA”), be provided with a
      taxable reimbursement payment equal to the amount of the COBRA premium
      payable by Executive. All expenses shall be reimbursed within twelve (12)
      months following the two-year anniversary of Executive’s separation from
      service.

     “Good Reason” shall mean any
of the following conditions arising without Executive’s written consent: (i) a
material diminution in Executive’s Base Salary, (ii) a material diminution in
Executive’s authority, duties, or responsibilities, (iii) a material diminution
in the authority, duties, or responsibilities of the person to whom Executive is
required to report (Executive’s “Direct
Report”), or Executive’s being required to
report to a different person whose authority, duties, or responsibilities are
materially diminished as compared with the authority, duties, or responsibilities of the Direct Report to whom Executive
reported immediately prior to such change, (iv) a material diminution in the
budget over which Executive retains authority, (v) a material change in the
geographic location at which Executive must perform services or (vi) any other
action or inaction that constitutes a material breach by the Company of this
Agreement; provided that (A) Executive must provide notice to the Company of the existence
of the condition described in this paragraph within a period not to exceed
ninety (90) days of the initial existence of the condition and (B) the Company
must be provided with a period of at least thirty (30) days during which it may
remedy the condition and not be required to pay the amounts described in this
Section 4(c). If the Company does not remedy the condition during such period,
Executive’s employment shall terminate on the thirty-first (31st) day
following the initial notice.

8

     In the event that
the Company terminates Executive’s employment without Cause, or Executive
terminates his employment for Good Reason, Executive shall have no right to any
compensation or any other benefits under this Agreement except as set forth in
Section 4(a) and this Section 4(c). 

    
(d) Change in Control. If a Change in Control (as defined in the MSPP or the Stock
Plan, as applicable) occurs, then any of Executive’s (i) restricted units not
yet vested under the MSPP (if the Change in Control constitutes a Change in
Control as defined in the MSPP) and/or (ii) restricted stock units and stock
options not yet vested under the Stock Plan (if the Change in Control
constitutes a Change in Control as defined in the Stock Plan), as applicable,
that are outstanding on the date of such Change in Control will vest on such
date. 

9

     (e)
Voluntary Separation or Involuntary Separation
from Service For Cause. “Cause” shall mean
Executive’s (i) failure or refusal to substantially perform the material duties
of Executive’s employment or other violation of this Agreement in a material
manner, (ii) failure in a material manner to comply with the written rules and
policies of the Company that has caused or would reasonably be expected to
result in material injury to the Company, (iii) willful and serious misconduct
in connection with Executive’s employment that has caused or would reasonably be
expected to result in material injury to the Company, (iv) dishonesty or
fraudulent conduct in regards to the Company or (v) conviction of, or plea of
nolo contendere to, a crime that constitutes a felony. The Company may terminate
Executive’s employment for Cause with immediate effect; provided that, prior to
termination for any of the reasons in (i) or (ii) above, Executive shall have
thirty (30) days after notice from the Company to remedy such matter if such
matter is reasonably capable of being remedied. 

    
In the event that the Company terminates Executive’s employment for
Cause, or Executive terminates his employment without Good Reason, in each case
except under the circumstances set forth in Sections 4(b), 4(c) or 4(f),
Executive shall have no right to any compensation or any other benefits under
this Agreement except as set forth in Section 4(a). 

    
(f) Retirement. This Agreement shall automatically expire and be of no
further force and effect on Executive’s
sixty-fifth (65th) birthday. 

10

     Anything
hereinabove to the contrary notwithstanding, if any provision of this Section
4(f) 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. 

    
(g) Supplementary Pension
Plan. In no event will any monthly pension to
which Executive is entitled under the SPP commence payment prior to the two-year
anniversary of Executive’s separation from service, except that on or after the
date Executive attains sixty-five (65) years of age, upon separation from
service for any reason, the monthly pension shall be payable at the time and in
the form set forth under the terms of the SPP.

Section 5. Restrictive Covenants 

    
During Executive’s employment and for the longer of (a) any period for
which Executive is receiving any payments or benefits under Sections 4(b), 4(c)
or 4(f) or (b) one (1) year following Executive’s separation from service with
the Company (the “Restrictive Covenant
Period”), Executive shall not, without the
written permission of the Company, render services to any corporation,
individual or other entity engaged in any activity, or himself 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. 

11

Section 6. Non-Disparagement

     While employed by
the Company, and during the Restrictive Covenant Period, Executive shall not make any disparaging or untruthful remarks concerning
the Company or any of its subsidiaries, or their officers, directors, employees
or agents, whether acting in their individual or representative capacities.
Executive shall not be deemed to have breached Executive’s obligations under the
foregoing sentence if during Executive’s employment with the Company Executive
criticizes the job performance of employees who report to Executive, or makes
remarks which Executive believes to be truthful about any Company employee as
part of performing his duties hereunder, as part of such employees’ performance
reviews and evaluations, provided such remarks are made in the ordinary course
of business, not malicious or unfounded, are not publicly made or widely
disseminated and are not in violation of Executive’s obligations to comply with
laws, regulations and Company policies and procedures. Additionally, in the event that Executive is requested or required (by
oral questions, interrogatories, requests for information or documents, subpoena
or similar process) to disclose during the Restrictive Covenant Period any
information that may be disparaging, Executive shall comply with such requests,
provided that Executive shall give the Company prompt notice of any such request
so that the Company may seek an appropriate protective order, and provided that
Executive shall comply with the terms of any protective order so obtained.
Similarly, during the Restrictive Covenant Period, the Company shall not make
any disparaging or untruthful remarks concerning Executive, except that the
Company shall not be deemed to have breached its obligations hereunder: (a) if
during Executive’s employment with the Company, any Company director, employee, agent or representative criticizes
Executive’s job performance as part of performance reviews and evaluations or in
response to questions from members of management, the board of directors or
Company advisors, provided such remarks are made in the ordinary course of
business, not malicious or unfounded, are not publicly made or widely
disseminated and are not in violation of laws, regulations and Company policies
and procedures, or (b) in the event that the Company is requested or required
(by oral questions, interrogatories, requests for information or documents,
subpoena or similar process) to disclose during the Restrictive Covenant Period
any information that may be disparaging, the Company complies with such
requests, provided that the Company shall give Executive prompt notice of any
such request so that Executive may seek an appropriate protective order, and
provided that the Company shall comply with the terms of any protective order so
obtained. 

12

Section 7. Non-Solicitation of Employees or
Customers 

     While employed by
the Company, and during the Restrictive Covenant Period, Executive will not (i) indirectly or directly solicit, encourage, induce,
or recruit any person who is then an employee of the Company or any of its
subsidiaries to seek or accept employment with any other employer, or (ii)
indirectly or directly solicit, encourage, or induce any customer of the Company
to become the customer of any business that is competitive to any material
extent with the business of the Company or any of its subsidiaries. 

13

Section 8. Company’s Right to Injunctive Relief 

    
Executive acknowledges that Executive’s 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. The parties also acknowledge and agree
that, if, in any judicial proceeding, a court shall deem any of the restrictive
covenants in Sections 5 or 7, invalid, illegal or unenforceable because its
scope is considered excessive, such restrictive covenant shall be modified so
that the scope of the restrictive covenant is reduced only to the minimum extent
necessary to render the modified covenant valid, legal and enforceable, and if
any such restrictive covenant (or portion thereof) is deemed invalid, illegal or
unenforceable in any jurisdiction, as to that jurisdiction such restrictive
covenant (or portion thereof) shall be ineffective to the extent of such
invalidity, illegality or enforceability, without affecting in any way the
remaining restrictive covenants (or portion thereof) in such jurisdiction or
rendering that or any other restrictive covenant (or portion thereof) invalid,
illegal, or unenforceable in any other jurisdiction. The parties hereto intend
that the validity and enforceability of any provision of this Agreement shall
not affect or render invalid any other provision of this Agreement. 

14

Section 9. 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 Executive’s employment with the Company, 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. 

Section 10. Trade Secrets and Confidential
Information 

    
Executive shall not, either directly or indirectly, except as required in
the course of employment by the Company, disclose or use at any time, whether
during or subsequent to Executive’s employment with the Company, 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 Executive in the performance
of Executive’s 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 separation from service of Executive’s 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.

15

Section 11. Mergers and Consolidations;
Assignability 

     In the event that
the Company, or any entity resulting from any merger or consolidation referred
to in this Section 11 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 Section 11,
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 Executive’s death it shall be
binding upon and inure to the benefit of Executive’s legal representatives to
the extent required to effectuate the terms hereof. 

16

Section 12. 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. 

Section 13. 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, regardless of conflict of law principles. 

Section 14. 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. 

17

Section 15. Notices

    
All notices given hereunder shall be in writing and shall be sent by
registered or certified mail or overnight courier service such as Federal
Express or UPS 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 Executive personally or shall be addressed to Executive (if sent
by mail or overnight courier service) at Executive’s 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
of mailing thereof or delivery to the overnight courier service, or if delivered
personally, on the date so delivered.

Section 16. Termination of Any 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 Effective 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 Effective Date shall be credited against
the corresponding payment obligations of the Company under this Agreement with
respect to such period. 

18

Section 17. Section 409A of the Internal Revenue
Code 

    
(a) Compliance. This Agreement is intended to comply with the requirements
of Section 409A, or an exemption and shall in all respects be administered and
interpreted in accordance with Section 409A. Notwithstanding anything in the
Agreement to the contrary, distributions upon termination of employment may only
be made upon a separation from service (as determined under Section 409A). Each
installment of any payments and benefits provided to Executive under this
Agreement that would be considered to be deferred compensation (within the
meaning of Treasury Regulation Section 1.409A-1(b)(1)) will be treated as a
separate “payment” for purposes of Section 409A. In no event may Executive,
directly or indirectly, designate the calendar year of any payment to be made
under this Agreement if such designation would violate Section 409A. All
reimbursements and in-kind benefits provided under this Agreement shall be made
or provided in accordance with the requirements of Section 409A. In the event
the parties determine that the terms of this Agreement do not comply with
Section 409A, they will negotiate reasonably and in good faith to amend the
terms of this Agreement such that it complies (in a manner that attempts to
minimize the economic impact of such amendment on Executive and the Company)
within the time period permitted by Section 409A. In no event shall the Company
be required to pay Executive any gross-up or other payment with respect to any
taxes or penalties imposed under Section 409A with respect to any benefit paid
to Executive hereunder. 

19

    
(b) Delay in Payment. If Executive is a “specified employee” (as such term is
defined in Section 409A) at the time of Executive’s separation from service, any
payments under this Agreement that would be considered to be deferred
compensation (within the meaning of Treasury Regulation §1.409A-1(b)(1)) to
which Executive would otherwise be entitled during the first six (6) months
following Executive’s “separation from service” and payable as a result of such
“separation from service” shall be deferred and accumulated for a period of six
(6) months and paid in a lump sum on the first day of the seventh
(7th) month following such separation from service (or, if earlier,
the date of Executive’s death) (the “Delayed
Payment Date”). On the Delayed Payment Date,
there shall be paid to Executive (or if Executive has died, to Executive’s
Successor defined below), in a single cash lump sum, an amount equal to the
aggregate amount of all payments delayed pursuant to the preceding sentence,
plus interest thereon at the Delayed Payment Interest Rate (as defined below)
computed from the date on which each such delayed payment otherwise would have
been made to Executive until the Delayed Payment Date. For purposes of the
foregoing: (i) “Executive’s
Successor” shall mean such payee or payees as
Executive shall at any time designate by written notice to the Company or in
Executive’s last will and testament or, if no such designation is made, then to
the legal representatives of Executive’s estate, and (ii) the “Delayed Payment Interest Rate” shall mean the national average annual rate of interest payable on
jumbo six-month bank certificates of deposit, as quoted in the business section
of the most recently published Sunday edition of the New York Times preceding
the date as of which Executive is treated as having incurred a “separation from
service” for purposes of Section 409A. 

20

Section 18. Release

    
The payments and benefits under Sections 4(b)(other than in the event of
death) and 4(c) are subject to the condition that Executive has delivered to the
Company an executed copy of a release substantially in the form attached hereto
as Exhibit A (with such changes as may be required under applicable law) and
such release has become irrevocable within thirty (30) days after the date of
Executive’s “separation from service” as determined under Section 409A. In that
event, payments that would have been made within such 30-day period shall be
paid at the expiration of such 30-day period; provided that any payments or
benefits payable by reason of the death of Executive shall not be subject to the
condition set forth in this Section 18. 

21

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 and
		President
			 
			 
			 
		EXECUTIVE
			 
			 
			 
		 	/s/ Yves
Baratelli

22

Exhibit A 

GENERAL RELEASE 

       1.
Release of Claims and Waiver of
Rights. 

       (a)
In consideration of any payments and benefits being provided to me under Section
4(b)(other than in the event of death) or 4(c) of the amended and restated
employment agreement (the “Employment
Agreement”) dated August 18, 2010, as it may
have been amended to the date hereof, between me and Pall Corporation (the
“Company”),
those payments and benefits being good and valuable consideration, the adequacy
and sufficiency of which are acknowledged by me (the “Payments”), I, Yves Baratelli, hereby
release, remise and acquit Company, its present and past parents, subsidiaries
and affiliates, their successors, assigns, benefit plans and/or committees, and
their respective present or past officers, directors, managers, supervisors,
employees, shareholders, attorneys, advisors, agents and representatives in
their individual and corporate capacity, and their successors and assigns (the
“Releasees”), from, and hold them harmless against, any and all claims,
obligations, or liabilities (including attorneys, fees and expenses), asserted
or unasserted, known or unknown, that I, my heirs, successors or assigns have or
might have, which have arisen by reason of any matter, cause or thing whatsoever
on or prior to the date on which this General Release is signed. 

       (b)
The terms “claims, obligations, or liabilities” (whether denominated claims,
demands, causes of action, obligations, damages or liabilities) include, but are
not limited to, any and all claims under any contract with the Company, claims
of age, disability, race, religion, national origin, sex, retaliation, and/or
other forms of employment discrimination, breach of express or implied contract,
breach of employee handbook, practices or procedures, libel, slander,
intentional tort or wrongful dismissal, claims for reinstatement or
reemployment, arising under any federal, state, or local common or statutory
law; claims for unpaid salary, commission or fringe benefits; or any other
statutory claim before any state or federal court, tribunal or administrative
agency, arising out of or in any way related to my employment relationship with
the Company and its affiliates and the termination of that relationship. I will
not file or permit to be filed on my behalf any such claim. 

       (c)
This General Release constitutes, among other things, a waiver of all rights and
claims I may have under the Age Discrimination in Employment Act of 1967 (29
U.S.C. 621, et seq.) (“ADEA”), the Americans with Disabilities Act of 1990, the Family
and Medical Leave Act of 1993, Title VII of the United States Civil Rights Act
of 1964, all as amended including the amendment set forth in 42 U.S.C. § 1981
concerning damages in cases of intentional discrimination in employment, the New
York State Human Rights Law, including N.Y. Exec. Law § 296, the New York City
Human Rights Law, including § 8-107 of the Administration Code and Charter of
New York City, and the New York Labor Law, and any other comparable national or
state laws, all as amended. 

1 

       (d)
Notwithstanding the preceding paragraph (c) or any other provision of this
Agreement, this General Release is not intended to interfere with my right to
file a charge with the Equal Employment Opportunity Commission (the
“EEOC”) in
connection with any claim I believe I may have against the Company or its
affiliates. However, by executing this General Release, I hereby waive the right
to recover in any proceeding I may bring before the EEOC or any state human
rights commission or in any proceeding brought by the EEOC or any state human
rights commission on my behalf. In addition, this General Release is not
intended to interfere with my right to challenge that my waiver of any and all
ADEA claims pursuant to this General Release is a knowing and voluntary waiver,
notwithstanding my specific representation that I have entered into this General
Release knowingly and voluntarily. 

       (e)
This General Release is for any relief, no matter how denominated, including,
but not limited to, injunctive relief, wages, back pay, front pay, compensatory
damages, or punitive damages. 

       (f)
This General Release shall not apply to any rights in the nature of
indemnification which I may have with respect to claims against me relating to
or arising out of my employment with the Company and its affiliates or my
service on their respective boards of directors, or any vested benefit to which
I am entitled under any tax qualified pension plan of the Company or its
affiliates, COBRA continuation coverage benefits or any other similar benefits
required to be provided by statute. Notwithstanding anything to the contrary
contained in this Section 1, I do not release any of the Releasees from the
Company’s obligation to timely provide me with all payments and benefits to
which I am entitled pursuant to the terms of the Employment Agreement, or any
other obligations of the Company under the Employment Agreement. 

       2.
Continued
Cooperation. In consideration of the Payments, I also agree to fully
cooperate with the Company with respect to any reasonable assistance the Company
may request from me upon reasonable notice to me, including but not limited to
in connection with any legal claims, demands, or causes of action against the
Company which relate to or are based on events that arose during the period of
my employment with the Company. The Company shall pay me for such cooperation,
at an hourly rate, calculated on the basis of my regular salary (not including
bonus or any benefits) immediately prior to the termination of my employment
with the Company, for each hour of assistance that I provide to the Company at
its request, and shall reimburse me for all expenses I reasonably incur in
connection with such cooperation, provided I deliver to the Company an
invoice(s) in respect of such amounts, which invoice details with reasonable
sufficiency the assistance provided and the number of hours spent providing such
assistance. Notwithstanding the foregoing, in no case shall the Company require
me to provide such assistance on more than 20 (twenty) days in any year, nor
shall the Company require me to travel outside the United States to provide such
assistance. A condition for me providing any such assistance is that the Company
shall agree to indemnify me for any and all liability I may incur in connection
with providing such assistance to the same extent as if I was still an executive
officer of the Company. 

       3.
Representations and
Covenants. I hereby represent and agree to all of the following: 

             
(a) I have carefully read this General Release. 

             
(b) I understand it fully. 

2 

             
(c) I am freely, voluntarily and knowingly releasing the Releasees in accordance
with the terms contained above. 

             
(d) Before executing this General Release, I had twenty-one (21) days to
consider my rights and obligations under this General Release. 

             
(e) The period of time I had to consider my rights and obligations under this
General Release was reasonable. 

             
(f) Before signing this General Release, I was advised to consult with an
attorney and given a reasonable period of time to do so and in executing this
General Release have not relied on any representation or statement not set forth
herein. 

             
(g) Execution of this General Release and the General Release becoming
enforceable (in accordance with paragraph (h) below) within thirty (30) days
from the date of my “separation from service” (as determined under Section 409A
of the Internal Revenue Code of 1986, as amended, and the rules and regulations
issued thereunder) is a condition to the Payments, which payments and benefits
are in addition to anything of value to which I am already entitled to receive
from the Company and its affiliates. 

             
(h) For a period of seven (7) days following the date on which I sign this
General Release, I may revoke it. Any such revocation must be made in writing
and received by the Corporate Secretary of the Company, by the seventh day
following the date on which I sign this General Release. The Company’s
obligation to pay the consideration as set forth in Section 1 above shall not
become effective or enforceable until this seven (7) day revocation period has
expired without my having exercised my right to revoke. 

             
(i) I have reported to the Company any and all work-related injuries incurred by
me during my employment by the Company. 

             
(j) There are no pending lawsuits, charges, employee dispute resolution
proceedings, administrative proceedings or other claims of any nature
whatsoever, that I have brought (and which are pending) against any Releasee, in
any state or federal court, before any agency or other administrative body or in
any other forum. 

             
(k) I am not aware of any material violation of any laws or Company policies or
procedures by a Company employee or officer that has not been reported to
Company officials. 

             
(l) My obligations under the Employee Agreement (attached hereto) including my
obligations under the sections entitled Covenant Not to Compete,
Non-Disparagement, Non-Solicitation, Inventions and Patents, Trade Secrets and
Confidential Information, are reasonable, are necessary to protect legitimate
interests of the Company, and continue beyond the termination of my employment
and the execution of this General Release. If I violate my obligations under the
Employee Agreement and such violation causes material harm to the Company, I
understand that, in addition to other relief to which the Company may be
entitled, the Company shall be entitled to cease providing the Payments and
benefits provided to me pursuant to Section 1 above unless such violation is
cured (if capable of being cured) within 30 days of notification by the Company
to me of such violation (and, following such cure, all suspended payments shall
be made in a single lump sum), and this General Release will remain in full
force and effect.

3 

             
(m) If I should hereafter make any claim or demand or commence or threaten to
commence any action, claim or proceeding against the Releasees with respect to
any matter, cause or thing which is the subject of the release under Section 1
of this General Release, this General Release may be raised as a complete bar to
any such action, claim or proceeding, and the applicable Releasee may recover
from me all costs incurred in connection with such action, claim or proceeding,
including attorneys’ fees. 

             
(n) If any provision of this General Release is declared illegal, invalid, or
unenforceable by any court of competent jurisdiction and cannot be modified to
be enforceable, such provisions will immediately become null and void, leaving
the remainder of this General Release in full force and effect, provided,
however, that if the general release of all claims given by me herein is
declared illegal, invalid, or unenforceable, this General Release will become
null and void and, to the fullest extent permitted by law, any Payments (which
are being provided to me as a result of my execution of this General Release)
which have not yet been made by the Company to me shall no longer be required to
be made. 

             
(o) Except as necessary to enforce my rights under this General Release or
except as required to comply with requirements of applicable law or an order or
subpoena of a court of competent jurisdiction (as to which I will notify the
Company reasonably in advance of disclosure) or except to the extent such
information has become public knowledge, I shall keep confidential and not
disclose to any person, other than my spouse or attorneys, accountants and/or
tax advisors who shall be obligated to and agree to keep confidential, the
existence, nature and terms of this General Release, the amount and fact of any
payment to me, any and all discussions, communications, and correspondence
leading to this General Release and any and all events, conduct, statements
and/or communications giving rise to or relating in any way to any and all
claims, obligations or liabilities, I have or may have. This General Release
shall not be construed as an admission by the Company or any other Releasee of
any liability whatsoever for any damages, injuries or other claims, obligations
or liabilities alleged or which may be alleged by me. 

             
(p) This General Release shall be governed by and construed in accordance with
the laws of the State of New York, without regard to conflicts of laws
principles. 

       4.
Declaration. I declare under penalty
of perjury under the laws of the State of New York that the foregoing is true and
correct. 

		Signature:
		 
		 
		Date:
		 
		 
		Name: Yves Baratelli

4 

		Acknowledged before me this
____ day of ___________,
      ________
		 
		 
		NOTARY PUBLIC
		 

5 

PALL CORPORATION 

2004 EXECUTIVE INCENTIVE BONUS PLAN

_______

1. Purpose 

       This
document set forth the Pall Corporation 2004 Executive Incentive Bonus Plan as
adopted by the Compensation Committee of the Board of Directors on October 16,
2003 effective for the fiscal year beginning August 3, 2003 and subsequent
fiscal years, approved by shareholders at the Annual Meeting on November 19,
2003 and amended by the Board of Directors, acting by it Compensation Committee,
on July 19, 2005 and January 18, 2006. 

       The
purpose of the Plan is to encourage greater focus on performance among the key
executives of the Corporation by relating a significant portion of their total
compensation to the achievement of annual financial objectives. 

2. Certain Definitions

       As
used herein with initial capital letters, the following terms shall have the
following meanings: 

      
“Average Equity” shall mean, for
any Fiscal Year, the average of stockholders’ equity as shown on the fiscal
year-end consolidated balance sheet of the Corporation and its subsidiaries as
of the end of the Fiscal Year and as of the end of the immediately preceding
Fiscal Year except that the amounts shown on said balance sheets as “Accumulated
other comprehensive” income or loss, as the case may be, shall be disregarded.

      
“Base Salary” shall mean, with
respect to any Executive and for and Fiscal Year, the annual rate of base salary
in effect for the Executive as of the first day of such year or, if later, as of
the first day of the Executive’s Term of Employment, as determined under the
Executive’s Employment Agreement. 

      
“Board of Directors” shall mean
the Board of Directors of the Corporation. 

      
“Bonus” shall mean the bonus
payable to an Executive under this Plan for any Fiscal Year. 

       “CEO” shall mean the Chief Executive
Officer of the Corporation. 

       “Change in Control” means the occurrence
of any of the following: 

	       	(a)	       	
      the “Distribution Date” as
      defined in Section 3 of the Rights Agreement dated as of November 17, 1989
      between the Corporation and United States Trust Company of New York as
      Rights Agent, as amended by Amendment No. 1 thereto dated April 20, 1999
      and as the same may have been further amended or extended to the time in
      question or in any successor agreement (the “Rights Agreement”);
      or

		 
		(b)		any event described in Section
      11(a)(ii)(B) of the Rights Agreement; or

6 

	       	(c)	       	any event described in Section 13
      of the Rights Agreement; or
		 
		(d)		
      the date on which the number of
      duly elected and qualified directors of the Corporation who were not
      either elected by the Board of Directors or nominated by the Board of
      Directors or its Nominating Committee for election by the shareholders
      shall equal or exceed one-third of the total number of directors of the
      Corporation as fixed by its by-laws;

provided, however, that no Change in Control shall be deemed to have occurred,
and no rights arising upon a Change in Control as provided in Section 6 shall
exist, to the extent that the Board of Directors so determines by resolution
adopted prior to the Change in Control.

      
“Code” shall mean the Internal Revenue Code
of 1986, as amended. 

      
“Committee” shall mean the
Compensation Committee of the Board of Directors. 

      
“Corporation” shall mean Pall
Corporation. 

      
“Covered Executive” shall mean,
with respect to any Fiscal Year, each individual who is a “Covered Employee” of
the Corporation for such year for the purpose of section 162M of the Code.

      
“Employment Agreement” shall mean,
with respect to any executive employee of the Corporation, an employment agreement between the Corporation and such
employee which provides that the employee shall be eligible to receive annual
bonuses under this Plan. 

      
“Executive” shall mean an
executive employee of the Corporation with whom the Corporation has entered into
an Employment Agreement. 

      
“Fiscal Year” shall mean the
fiscal year of the Corporation ending on July 31, 2004, and each subsequent
fiscal year of the Corporation. 

      
“Maximum R.O.E. Target” shall
mean, for any Fiscal Year, the Return on Equity that must be achieved or
exceeded in order for the Performance Percentage for the year to equal 100% as
determined by the Committee prior to the first day of such year or within such
period of time thereafter as may be permitted under the regulations issued under
§162(m) of the Code. 

      
“Minimum R.O.E. Target” shall mean
for any Fiscal Year, the Return on Equity that must be exceeded in order for any
Bonus to be paid to any Executive for the year, as determined by the Committee
prior to the first day of such year of within such period of time thereafter as
may be permitted under the regulations issued in §162(m) of the Code.

      
“Net Earnings” shall mean, for any
Fiscal Year, the after-tax consolidated net earnings of the Corporation and its
subsidiaries, either (i) as certified by the Corporation’s independent auditors
for inclusion in the annual report to shareholders (“Annual Report”) for such
year or (ii) as reported to such auditors by the chief financial officer of the
Corporation at a meeting of the Corporation’s Audit Committee, held prior to the
date on which the Corporation’s annual report on Form 10-K for such year is
filed with the U.S. Securities and Exchange Commission, and accepted by the
auditors at such meeting (including any adjournment
thereof) subject only to events occurring after that meeting and prior to the
auditors’ written certification of the financial statements for the year, but in
either case adjusted so as to eliminate the effects of (I) any decreases in or
changes to earnings for (a) the translational effect of foreign currency
exchange rates, (b) any acquisitions, divestitures, discontinuance of business
operations, restructuring or any other special charges, (c) the cumulative
effect of any accounting changes, and (d) any “extraordinary items” as
determined under generally accepted accounting principles, to the extent such
decreases or charges referred to in clause (a) through (d) are separately
disclosed in the Corporation’s Annual Report for the year and (II) any increase
in earnings for the translational effect of foreign currency exchange rates.

7 

       “Plan” shall mean the Pall Corporation Executive Incentive Bonus Plan, as set
for the herein and as amended from time to time. 

       “Return on Equity” shall mean, for any Fiscal Year, the percentage determined by
dividing the Net Earnings for the year by the Average Equity for the year.

       “Target Bonus
Percentage” shall mean, with respect to any
Executive, the target bonus percentage specified for such Executive in his or
her Employment Agreement. 

3. Determination of Bonus Amounts

       For each Fiscal
Year falling in whole or in part within an Executive’s Term of Employment, as
defined in his or her Employment Agreement, the Executive shall be entitled to
receive a Bonus in an amount determined in accordance with the provisions of the
Section 3, subject however, to the provision of Section 4. 

       (a) The amount of
the Bonus payable to an Executive for each such Fiscal Year shall be equal to
(i) the Target Bonus Percentage of the Executive’s Base Salary for such year,
multiplied by (ii) the Performance Percentage for such year as determined under
(b) below. 

       (b) The Performance
Percentage for any Fiscal Year shall be determined in accordance with the
following provisions: 

             
(i) If the Return on Equity equals or exceeds the Maximum R.O.E. Target
for the year, the Performance Percentage for the year shall be 100% 

             
(ii) If the Return on Equity equals or is less than the Minimum R.O.E.
Target for the year, the Performance Percentage for the year shall be zero, and
no Bonus shall be payable under the Plan for such year to any Executive.

             
(iii) Except as other provided in (iv) below, if the Return of Equity
is less than the Maximum R.O.E. Target for the year but exceeds the Minimum
R.O.E. Target for the year, the Performance Percentage for the year shall be
equal to the quotient resulting from dividing (A) the excess of the Return on
Equity for the year over the Minimum R.O.E. Target for the year, by (B) the
excess of the Maximum R.O.E. Target for the year over the Minimum R.O.E. Target
for the year. 

8 

             
(iv) At the time it establishes the Minimum and Maximum R.O.E. Targets
for any Fiscal Year beginning on or after August 3, 2003, the Committee may also
(A) establish one or more R.O.E. targets (each, an “Intermediate R.O.E. Target”)
for such year that are greater than the Minimum R.O.E. Target but less
than the Maximum R.O.E. Target for such year, and (B) determine the Performance
Percentage that will apply if the Return on Equity exceeds the Minimum R.O.E.
Target, or equals any of the Intermediate R.O.E. Targets established for such
year. If one or more Intermediate R.O.E. Targets are established for any such
Fiscal Year and the Return on Equity for such year exceed the Minimum R.O.E.
Target or any Intermediate R.O.E. Target established for the year (the “Achieved
Target”) but is less than the next highest Intermediate R.O.E. Target
established for the year (the “Next Highest Target”), the Performance Percentage
for such year shall be equal to the Performance Percentage that would apply if
the Return on Equity were equal to the Next Highest Target, over the performance
Percentage that would apply if the Return on Equity were equal to the Achieved
Target, by (2) the percentage resulting from dividing (x) the excess of the
Return on Equity over the Achieved Target, by (y) the excess of the Next Highest
Target of the Achieved Target. If the Return on Equity for the year exceeds the
highest Intermediate R.O.E. Target for the year but is less then the Maximum
R.O.E. Target for the year, the Performance Percentage for the year shall be
determined in the manner described in the preceding sentence but for this
purpose, the Maximum R.O.E. Target for the year shall be treated as the next
Highest Target for the year. 

       (c)
If an Executive’s Term of Employment commences after the start of the Fiscal
Year, or ends prior to the close of the Fiscal Year, the amount of the Bonus
payable to the Executive for the Fiscal Year in which the Executive’s Term of
Employment commences, or for the Fiscal Year in which the Executive’s Term of
Employment ends, as determined in accordance with the other applicable provision
of the Plan, shall be prorated on the basis of the number of days of such Fiscal
Year that fall within the Executives Term of Employment; provided, however, that
(i) if an Executive’s Term of Employment ends within 5 days prior to the close
of the Fiscal Year, there shall be no proration and the Executive shall be
entitled to receive the entire amount of the Bonus payable to the Executive for
such year, as determined in accordance with such other provisions and (ii) if
the Executive’s Term of Employment ends within 5 days following the start of a
Fiscal Year, the Executive shall not be entitled to receive any Bonus with
respect to such Fiscal Year. 

4. Adjustment of and Limitation on
Bonus Amounts 

       The amount of the Bonus otherwise
payable to an Executive for any Fiscal Year in accordance with Section 3 shall
be subject to the following adjustments and limitations: 

       (a)
The Committee may, in its discretion, reduce the amount of the Bonus otherwise
payable to any Executive in accordance with Section 3, (i) to reflect any
decreases in or charges to earnings that were not taken into account in
determining Net Earnings for the year pursuant to clause (a), (b), (c) or (d)
contained in the definition of such term in Section 2, (ii) to reflect any
credits to earnings for extraordinary items of income or gain that were taken
into account in determining Net Earnings for the year, (iii) to reflect the
Committee’s evaluation of the Executive’s individual performance, or (iv) to
reflect any other events, circumstances or factors which the Committee believes
to be appropriate in determining the amount of the Bonus to be paid to the
Executive for the year. 

       (b)
The Committee may, in its discretion, increase the amount of the Bonus otherwise
payable to any Executive who is not a Covered Executive, as determined under
Section 3, to reflect the Committee’s evaluation of the Executive’s individual
performance, or to reflect such other circumstances or factors as the Committee
believes to be appropriate in determining the amount of the Bonus to be paid to
the Executive for the year. The Committee shall not have any discretion to
increase the amount of the Bonus payable to any Covered Executive for the
year.

9 

       (c)
Notwithstanding any other provision herein to the contrary, the amount of the
Bonus otherwise payable to any Executive for any Fiscal Year beginning on or
after August 3, 2003, shall not exceed the lesser of (i) $2.0 million and (ii)
150% of the Executive’s Base Salary for such Fiscal Year. 

5. Payment of Bonuses 

       The
Bonus payable to an Executive for any Fiscal Year shall be paid in accordance
with the following provisions. 

       (a)
Except as otherwise provided in (b) or (c) below, 

       (i) if the Executive is not a
Covered Executive for such year, not less than 50% of the amount of the
Executive’s Bonus shall be paid to the Executive on such date following the
close of such year, not later than the date on which the Corporation files its
Form 10-K Annual Report with the Securities and Exchange Commission, as the
Committee in its discretions shall determine (the first “Bonus Payment Date”),
and any remaining amount of the Executive’s Bonus shall be paid to the Executive
by no later than January 15, next following the close of such year.

       (ii) if the Executive is a Covered
Executive for such year, not less than 50% of the amount of the Executive’s
Bonus shall be paid to the Executive on the later of (x) the first Bonus Payment
Date fixed by the Committee in accordance with §5(a)(i) above or (y) on the
first business day following the date on which the Committee has certified in
writing that all conditions for the payment of such Bonus to the Executive for
such year have been satisfied, and any remaining amount of the Executive’s Bonus
shall be paid to the Executive by no later than January 15 next following the
close of such year; 

       (iii) each amount payable to an
Executive under (i) and (ii) above, reduced by the amount of all federal, state
and local taxes required by law to be withheld there from, shall be paid to the
Executive in the form of a single lump sum cash payment. 

       (b)
To the extent that an Executive has elected under the applicable provisions of
the Pall Corporation Management Stock Purchase Plan (the “MSPP”) to have any
part of the Bonus payable to the Executive for any Fiscal Year paid in the form
of Restricted Units to be credited to the Executive’s account under the MSPP, no
cash payments shall be made to the Executive pursuant to (a) above with respect
to the part of the Executive Bonus that is subject to such election, and the
obligation of the Corporation under this Plan with respect to payment of such
part of the Executive’s Bonus shall be fully discharged upon the crediting of
Restricted Units to the Executive’s account under the MSPP in accordance with
the applicable provisions of such Plan. 

       (c)
To the extent that an Executive has elected under the applicable provisions of
the Pall Corporation Profit-Sharing Plan (the “Profit-Sharing Plan”) to have any
part of the Bonus payable to the Executive for any Fiscal Year reduced, and to
have an amount equal to such part of the Executive’s Bonus contributed to the
Profit-Sharing Plan as a 401(k) Contribution on the Executive’s behalf, an
amount equal to such part of the Executive’s Bonus shall be contributed to the
Profit-Sharing Plan on behalf of the Executive, and thereupon, the obligation of
the Corporation under this Plan with respect to payment of such part of the
Executive’s Bonus shall be fully discharged. However, no such contribution shall
be made to the extent it would cause any limitation applicable under the 401(k)
Plan to be exceeded. 

10 

6. Change in Control 

      
Notwithstanding any other provision in the Plan to the contrary (but subject to
the “provided, however” clause contained in the definition of “Change in Control” in Section 2),
upon the occurrence of a Change in Control, the following provisions shall
apply. 

       (a)
The amount of the Bonus payable to any Executive for the Fiscal Year in which a
Change in Control occurs shall be at least equal to the Target Bonus Percentage
of the Executive’s Base Salary for such year or, in the case of any Executive
whose Term of Employment commences after the start of such year or ends prior to
the close of such year, a pro rata portion thereof determined on the basis of
the number of days of such Fiscal Year that fall within the Executive’s Term of
Employment. 

       (b)
Each Executive whose Term of Employment has not ended prior to the occurrence of
a Change in Control shall be entitled to receive a Bonus for each Contract Year
(as defined in the Executive’s Employment Agreement) that falls in whole or in
part within the Executive’s Term of Employment and that ends after the Fiscal
Year in which the Change in Control occurs. The amount of the Bonus payable to
the Executive for each such Contract Year shall be at least equal to the Target
Bonus Percentage of the Executive’s Base Salary for such Contract Year or, in
the case of any Executive whose Term of Employment ends after the start of such
Contract Year but prior to the close of such year, a pro rata portion thereof
determined on the basis of the number of days of such Contract Year that fall
within the Executive’s Term of Employment.

       (c)
The entire amount of the Bonus payable to and Executive for any Fiscal Year or
Contract Year pursuant to (a) or (b) above, reduced by the amount of all
federal, state and local taxes required to be withheld therefrom, shall be paid
to the Executive in a single cash lump sum as soon as practicable after the
close of such Fiscal Year or Contract Year. 

7. Rights of Executives 

       An
Executive’s rights and interests under the Plan shall be subject to the
following provisions: 

       (a)
An Executive’s rights to payments under the Plan shall not be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, attachment, or garnishment by creditors of the Executive.

       (b)
Neither the Plan nor any action taken hereunder shall be construed as giving any
Executive any right to be retained in the employment of the Corporation or any
of its subsidiaries. 

8. Administration 

       The
Plan shall be administered by the Committee. A majority of the members of the
Committee shall constitute a quorum. The Committee may act at a meeting,
including a telephone meeting, by action of a majority of the members present,
or without a meeting by unanimous written consent. In addition to the
responsibilities and powers assigned to the Committee elsewhere in the Plan, the
Committee shall have the authority, in its discretion, to establish from time to
time guidelines or regulations for the administration of the Plan, interpret the
Plan, and make all determinations considered necessary or advisable for the
administration of the Plan. 

11 

       The
Committee may delegate any ministerial or nondiscretionary function pertaining
to the administration of the Plan to any one or more officers of the
Corporation. 

       All
decision, actions or interpretations of the Committee under the Plan shall be
final, conclusive and binding upon all parties. Notwithstanding the foregoing,
any determination made by the Committee after the occurrence of a Change in
Control that denies in whole or in part any claim made by any individual for
benefits under the Plan shall be subject to judicial review, under a “de novo”,
rather than a deferential standard. 

9. Amendment or
Termination 

       The
Board of Director may, (acting by the Committee if the by-laws of the
Corporation so provide), with prospective or retroactive effect, amend, suspend
or terminate the Plan or any portion thereof at any time; provided, however,
that (a) no amendment, suspension or termination of the Plan shall adversely
affect the rights of any Executive with respect to any Bonus that has become
payable to the Executive under the Plan, without his or her written consent, and
(b) following a Change in Control, no amendment to Section 6, and no termination
of the Plan, shall be effective if such amendment or termination adversely
affects the rights of any Executive under the Plan. 

10. Successor
Corporation 

       The
obligation of the Corporation under the Plan shall be binding upon any successor
corporation or organization resulting from the merger, consolidation or other
reorganization of the Corporation, or upon any successor corporation or
organization succeeding to substantially all of the assets and business of the
Corporation. The Corporation agrees that it will make appropriate provision for
the preservation of Executives’ rights under the Plan in any agreement or plan
which it may enter into or adopt to effect any such merger, consolidation,
reorganization or transfer of assets. 

11. Governing Law 

       The
Plan shall be governed by and construed in accordance with the laws of the State
of New York. 

12. Effective Date 

       The
Plan was adopted by the Committee on October 16, 2003 effective for the Fiscal
Year beginning August 3, 2003, subject, however, to approval by the shareholders
of the Corporation at the 2003 annual meeting of the shareholders, including any
adjournment thereof. 

12

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