Document:

EX-10.20

 

Exhibit 10.20

NONQUALIFIED STOCK OPTION

To Purchase Common Stock of Pall Corporation

Granted to:

Date of Grant:

Number of Shares:

	 	 	 	 	 
	Purchase Price Per Share:

	 	$
		 
	 
	 	 	 	 
	Granted under:

	 	2005 Stock Compensation Plan

     §1.     Pursuant to the Pall Corporation 2005 Stock Compensation Plan (the “Plan”), Pall Corporation
(the “Company”) hereby grants to you, as of the Date of Grant set forth above, an option to
purchase the number of shares of common stock of the Company (the “Common Stock”) set forth above
at the Purchase Price per Share set forth above, which price is the Fair Market Value per share of
such shares on the Date of Grant.

     §2.    (a) A copy of the Plan is being sent to you with this option. Words and terms used in this
option with initial capital letters and not defined herein are used herein as defined in the Plan.
You should carefully examine the Plan, and also the Plan prospectus, which is being furnished to
you, before you make any decision to exercise this option. The Plan is hereby incorporated by
reference in this option and made a part of it. This option is subject to all of the terms and
provisions of the Plan as in effect from time to time but subject to the limitation on amendments
set forth in Section 16 of the Plan.

               (b) This option is not intended to be an incentive stock option within the meaning of Section
422 of the Internal Revenue Code.

     §3. No part of this option may be exercised (i) before the first anniversary of the
Date of Grant set forth above or (ii) after the seventh anniversary of the Date of Grant.
This option may not be exercised at any one time as to fewer than 100 shares of Common
Stock, or fewer than the number of shares as to which this option is then exercisable if
that number is fewer than 100 shares. Subject to the foregoing and to the provisions of §4
hereof, you may exercise this option as follows:

 

 

          (a) at any time or times from the first anniversary of the Date of Grant to the day preceding
the second anniversary, both such dates inclusive, you may exercise this option as to any number of
shares up to 25% of the total number of shares covered hereby;

          (b) at any time or times from the second anniversary of the Date of Grant to the day preceding
the third anniversary, both such dates inclusive, you may exercise this option as to any number of
shares which, when added to the shares as to which you have theretofore exercised this option, will
not exceed 50% of the total number of shares covered hereby;

          (c) at any time or times from the third anniversary of the Date of Grant to the day preceding
the fourth anniversary, both of such dates inclusive, you may exercise this option as to any number
of shares which, when added to the shares as to which you have theretofore exercised this option,
will not exceed 75% of the total number of shares covered hereby; and

          (d) at any time or times from the fourth anniversary of the Date of Grant to the seventh
anniversary, both such dates inclusive, you may exercise this option as to any number of shares
which, when added to the shares as to which you have theretofore exercised this option, will not
exceed the total number of shares covered hereby.

     §4. This option may not be exercised by you unless all of the following conditions are met:

          (a) Counsel for the Company must be satisfied at the time of exercise that the issuance of
shares upon exercise of this option will be in compliance with the Securities Act of 1933, as
amended, and other applicable federal and state laws.

          (b) You must give the Company written notice of exercise specifying the number of shares with
respect to which this option is being exercised, and at the time of exercise pay the full purchase
price for the shares being acquired either (i) in cash (the word “cash” being deemed to include a
check) or (ii) in Common Stock, or partly in cash and partly in Common Stock, in accordance with §8
hereof.

          (c) You must at all times during the period beginning with the Date of Grant of this option
and ending on the date of such exercise have been an employee of the Company or of one of its
subsidiary corporations (or of a corporation or a parent or subsidiary of a corporation assuming
this option by reason of a corporate merger, consolidation, acquisition of property or stock,
separation, reorganization or liquidation in a transaction to which Section 424(a) of the Code
applies), provided, however, that (i) in the event of your death, the provisions of
§5(c) hereof shall govern, and (ii) if you cease to be an employee by reason of your disability or
retirement under an approved retirement program of the Company or a subsidiary thereof while
holding this option which has not expired and has not been fully exercised, this option will remain
in full force and effect and may be exercised in accordance with its terms until it expires by its
terms by the passage of time or is canceled or terminated in accordance with its terms. As used in
the preceding sentence, “retirement under an approved retirement program of the

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Company or a
subsidiary thereof” means retirement at or after age 65 unless the Committee determines, for
reasons satisfactory to it, that retirement at an earlier age shall be deemed an “approved”
retirement for purposes of this option..

          (d) You (or your estate or any person exercising this option pursuant to §5 hereof) must make
payment to the Company by cash or check of such amount as is sufficient to satisfy the Company’s
obligation, if any, to withhold federal, state and local taxes by reason of such exercise or make
such other arrangement satisfactory to the Committee as will enable the Company to satisfy any such
obligation.

          (e) The shares covered by this option have been listed (subject only to official notice of
issuance) on any national securities exchange on which the Common Stock is then listed.

     §5. (a) This option is not transferable by you otherwise than by will or the laws of descent and
distribution and is exercisable during your lifetime only by you or, if a legal guardian or other
representative has been appointed for you, by such guardian or representative, provided,
however, that this option in its entirety (or any portion hereof remaining after any partial
exercise hereof) is transferable by gift or domestic relations order to any of your “family
members” (as hereinafter defined), subject to the following conditions:

	 	•	 	not less than 20 days before any such transfer, you have notified
the Secretary of the Company of your intention to make such transfer
and have furnished such information regarding the proposed
transferee and the terms of the proposed transfer as the Company may
request;
	 
	 	•	 	the proposed transfer complies with such conditions and
limitations as the Committee, in its sole discretion, may have
established, and
	 
	 	•	 	at the time of such transfer, the issuance and sale to the
transferee of the shares issuable upon exercise of this option can
be registered under the Securities Act of 1933 by a registration
statement on Form S-8 (or any successor form adopted by the
Securities and Exchange Commission under the said Act, the use of
which does not, in the judgment of the Committee, impose any
significant additional expense on the Company).

          (b) The term “family member” means any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships,
any person sharing your household (other than a tenant or employee), a trust in which your family
members have more than 50% of the beneficial interest, a foundation in which you or your family
members control the management of assets, and any other entity in which you or your family members
own 50% or more of the voting interests.

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          (c) If at the time of your death this option has not been fully exercised, your estate or any
person who acquires the right to exercise this option by bequest or inheritance or by reason of
your death may, at any time within one year after the date of your death (but in no event after the
seventh anniversary of the Date of Grant), exercise this option with respect to the number of
shares as to which you could have exercised this option at the time of your death. It shall be a
condition to the exercise of this option after your death that the Company shall have been
furnished evidence satisfactory to it of the right of the person exercising this option to do so
and that all estate, transfer, inheritance or death taxes payable with respect to this option or
the shares to which it relates have been paid or otherwise provided for to the satisfaction of the
Company.

     §6. As provided in Section 13 of the Plan, if there is any change in the shares of Common Stock by
reason of any stock dividend, stock split, recapitalization, reorganization, merger, consolidation,
split-up, combination or exchange of shares, or any rights offering to purchase shares of Common
Stock at a price substantially below fair market value, or any similar change affecting the Common
Stock, the number and kind of shares that may be issued and delivered to you upon your exercise of
this option, and the Purchase Price Per Share of this option, will be appropriately adjusted
consistent with such change in such manner as the Committee, in its sole discretion, may deem
equitable to prevent substantial dilution or enlargement of the rights granted to, or available
for, you under this option.

     §7. (a) In the event of a “Change in Control” of the Company (as defined in subparagraph (b)
below), this option, to the extent not fully exercised by the day preceding the date on which the
Change in Control occurs (x) will become exercisable in full on the date of the Change in Control
(i.e., to the extent that this option or portion thereof is not yet exercisable, the right to
exercise this option in full shall be accelerated) and (y) will remain fully exercisable,
irrespective of whether you cease to be an employee of the Company or a subsidiary, until the date
on which this option would otherwise expire by its terms by the passage of time.

          (b) A “Change in Control” for purposes of this §7 shall mean the occurrence of any of the
following:

	 	•	 	the tenth day after the first date of public announcement that
any person has become an “Acquiring Person,” meaning in general any
person who or which, together with all such person’s affiliates and
associates, is the beneficial owner of 20% or more of the Company’s
Common Stock; or
	 
	 	•	 	the tenth business day (or such later date as may be determined
by the Company’s board of directors prior to such time as any person
becomes an Acquiring Person) after either the date on which any
person (other than the Company, any subsidiary of the Company or any
employee benefit plan of the Company or any of its subsidiaries)
commences a tender or exchange offer, or the date of the first
public announcement that any such person intends to commence a
tender or exchange offer, the

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	 	 	 	consummation of which in either case
would result in any person becoming the beneficial owner of shares
of Common Stock aggregating 20% or more of the shares of Common
Stock then outstanding; or
	 
	 	•	 	the occurrence, at any time when there is an Acquiring Person, of
a reclassification of securities (including any reverse stock
split), or recapitalization or reorganization of the Company or
other transaction or series of transactions involving the Company
which has the effect, directly or indirectly, of increasing by more
than 1% the proportionate share of the outstanding shares of any
class of equity securities of the Company or any of its subsidiaries
beneficially owned by any Acquiring Person or any affiliate or
associate of an Acquiring Person; or
	 
	 	•	 	(1) the consolidation of the Company with, or its merger with and
into, any other person, or (2) the consolidation of any person with,
or its merger with and into, the Company, if in connection with such
merger, all or part of the Common Stock will be changed into or
exchanged for stock or securities of any other person, or cash or
any other property, or (3) a sale or other transfer by the Company
or one or more of its subsidiaries, in one or more transactions, of
assets or earning power aggregating 50% or more of the assets or
earning power of the Company and its subsidiaries taken as a whole
to any other person other than the Company or one or more of its
wholly-owned subsidiaries; or
	 
	 	•	 	the date on which the number of duly elected and qualified
directors of the Company who were not either elected by the
Company’s 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
Company as fixed by its by-laws;

provided, however, that no Change in Control will be deemed to have occurred, and
no rights arising upon a Change in Control pursuant to paragraph (a) of this §7 will exist, to the
extent that the board of directors of the Company so determines by resolution adopted prior to the
Change in Control. Any such resolution may be rescinded or countermanded by the board at any time.
If the board so determines by such resolution, and such resolution has not been rescinded or
countermanded as permitted by the preceding sentence, the board shall have the right to authorize
(I) the cancellation and termination of this option as of a date to be fixed by the board,
provided, however, that not less than 30 days written notice of the date so fixed
will be given to you, and you will have the right during such period (irrespective of whether you
cease to be an employee of the Company or a subsidiary during such period) to exercise this option
as to all or any part of the shares covered hereby, including any shares as to which the option has
not yet become exercisable, or (II) the substitution for this option of a new

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option, provided that
the new option has a value at the time it is granted that is at least equal to the value of this
option, and contains terms and conditions no less favorable to you than those contained in this
option.

     §8. In addition to the methods of payment of the option purchase price authorized by subparagraph
(b) of §4 hereof, you will have the right to make payment at the time of exercise by delivering to
the Company shares of Common Stock of the Company having a total Fair Market Value equal to the
option exercise price, or a combination of cash and such shares having a total Fair Market Value
equal to the option exercise price. For the purposes of the preceding sentence, the Fair Market
Value of a share of Common Stock is the closing price of the Common Stock on the trading day
preceding the option exercise date as such price is reported by and for New York Stock Exchange
Composite Transactions. Certificates representing shares delivered to the Company pursuant to this
paragraph shall be duly endorsed or accompanied by the appropriate stock powers, in either case
with signature guaranteed if so required by the Company.

     §9. By your exercise of this option, you acknowledge that, prior to such exercise, you have
received a prospectus relating to the Plan and the shares of Common Stock issuable upon the
exercise of this option, either by electronic transmission (e-mail) or by delivery to you of a hard
copy thereof.

	 	 	 	 	 
	 	PALL CORPORATION

 	 
	 	By:  	 	 
	 	 	Corporate Secretary 	 
	 	 	 	 
	 

- 6 -EX-10.37

 

Exhibit 10.37

AMENDMENT TO EMPLOYMENT AGREEMENT

     The EMPLOYMENT AGREEMENT dated August 1, 2005, between PALL CORPORATION, a New York
corporation (the “Company”) and Mary Ann Bartlett (“Executive”), (“the Employment Agreement”), is
hereby amended as follows:

     WHEREAS, Section 3(b) of the Employment Agreement provides for a bonus to Executive computed
under the 2004 Executive Incentive Bonus Plan adopted by the Company in 2003, a copy of which is
annexed to and incorporated by reference into the Agreement (the “Original 2004 Bonus Plan”), and

     WHEREAS, by action of the Compensation Committee of the Board of Directors on January 18,
2006 the Original 2004 Bonus Plan was amended in certain respects so that the amended Bonus Plan
should be substituted for the Original 2004 Bonus Plan as the attachment to the Employment
Agreement, and

     WHEREAS, none of said amendments will decrease or diminish the amount of the bonus which
Executive is entitled to receive under the Employment Agreement and accordingly this Amendment may
be made by the Company without execution by Executive,

     NOW, THEREFORE, the Employment Agreement is hereby amended, effective for the Company’s fiscal
year ending July 31,2006 and subsequent fiscal years, by substituting the 2004 Executive Incentive
Bonus Plan in the form annexed hereto for the Original 2004 Bonus Plan for all purposes of the
Employment Agreement.

	 	 	 	 	 
	 	 	PALL CORPORATION
	 
	 	 	 	 
	Dated: May 3, 2006
	 	 	 	 
	 

	 	By:
	 	/s/ Marcus Wilson
	 

	 	 	 	 
	 

	 	 	 	Marcus Wilson
	 

	 	 	 	President

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