| | (e) Compensatory Arrangements On February 25, 2008, Met-Pro Corporation’s (the “Company”) Board of Directors approved and adopted a Non-Qualified Defined Contribution Supplemental Executive Retirement Plan (“SERP”). The purpose of the SERP, which is expected to take effect on May 1, 2008, is to provide supplemental retirement benefits to senior executives of the Company and others, presently totaling eleven persons including the Company’s Chief Executive and Chief Financial Officers, as determined by the Company’s Board of Directors. The Company will make annual contributions to the SERP in order to provide participants with up to 30% to 60% of projected retirement age compensation (based upon base salary and bonus) assuming thirty years of service to the Company, after taking into account all Company-provided retirement income as well as the employee’s social security benefit at a defined age. The Company’s initial contribution to the SERP, which will cover all eligible participants, is expected to be less than $250,000. At the time of the establishment of the SERP, the Company will freeze and cease to make further contributions to an existing Non-Qualified Pension Restoration Plan with respect to which the only employee participants are the Chief Executive Officer and the Chief Financial Officer. The Company expects to recognize a curtailment expense of approximately $20,000 in connection with the freezing of this plan during the fiscal year ending January 31, 2009. Also on February 25, 2008, the Board of Directors approved an increase in the base salaries of the Chief Executive Officer and the Chief Financial Officer to $341,000 and $220,000, respectively, effective February 1, 2008 and approved bonus awards to such officers in the amounts of $69,821 and $37,838, respectively, under the terms of the Company’s fiscal year ended January 31, 2008 Management Incentive Plan.
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