Exhibit 10.2

 

Date:

  

May 24, 2006

To:

  

Kensey Nash Corporation (Party B)

Attn:

  

Wendy DiCicco

Phone:

  

610-594-7156

Fax:

  

610-331-6662

Email:

  

w.dicicco@kenseynash.com

From:

  

Citibank N.A., New York (Party A)

  

Confirmations Unit

  

333 West 34th Street, 2nd Floor

  

New York, NY 10001, USA

Phone:

  

1-212-615-8398

Fax:

  

1-212-615-8985

Our ref:

  

M062891

Your ref:

  

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TRANSACTION

The purpose of this letter agreement (this ‘Confirmation’) is to set forth the
terms and conditions of the Transaction entered into between Kensey Nash
Corporation (‘Counterparty’) and Citibank N.A., New York (‘Citibank’) on the
Trade Date specified below (the ‘Transaction’).

This Confirmation will supplement, form a part of, and be construed in
conjunction with a standard 1992 ISDA Master Agreement (as published by the
International Swaps and Derivates Association, Inc.) (“Master Agreement”), with
no elections other than New York Law as the Governing Law, U.S. Dollar as the
Settlement Currency and Market Quotation as the payment measure. In the event of
any inconsistency between this Confirmation and the Master Agreement, this
Confirmation will govern.

1. The definitions and provisions contained in the 2000 ISDA Definitions (the
‘Definitions’) (as published by the International Swaps and Derivatives
Association, Inc.) are incorporated into this Confirmation. References herein to
a ‘Transaction’ shall be deemed to be references to a ‘Swap Transaction’ for the
purposes of the Definitions.

U.S. Federal law requires Citibank to obtain, verify and record customer
identification information.

2. The terms of the particular Transaction to which this Confirmation relates
are as follows:

 

Trade Date:

  

May 24, 2006

Effective Date:

  

May 25, 2006

Termination Date:

   May 25, 2016, subject to adjustment in accordance with the Modified Following
Business Day Convention

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Fixed Amounts

 

Fixed Rate Payer:    Counterparty Notional Amount:    With respect to each
Calculation Period, the amount set forth in Exhibit I attached hereto opposite
such Calculation Period under the heading ‘Notional Amount’

Fixed Rate Payer

Payment Dates:

   The 25th calendar day of each month commencing June 25, 2006 through and
including the Termination Date Fixed Rate:    5.62 percent

Fixed Rate

Day Count Fraction:

   Actual/360 Business Days:    New York Business Day Convention:    Modified
Following

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Floating Amounts

 

Floating Rate Payer:    Citibank Notional Amount:    With respect to each
Calculation Period, the amount set forth in Exhibit I attached hereto opposite
such Calculation Period under the heading ‘Notional Amount’

Floating Rate Payer

Payment Dates:

   The 25th calendar day of each month commencing June 25, 2006 through and
including the Termination Date Floating Rate Option:    USD –LIBOR-BBA
Designated Maturity:    One Month Spread:    None

Floating Rate

Day Count Fraction:

   Actual/360 Reset Dates:    The First Day of each Floating Rate Payer
Calculation Period Business Days:    New York Business Day Convention:   
Modified Following Calculation Agent:    Citibank

--------------------------------------------------------------------------------

3. Additional Provisions.

A. Additional Termination Event.

“Additional Termination Events” shall apply. Each of the following shall
constitute an Additional Termination Event and Party B shall be the sole
Affected Party with respect thereto:

(1) At any time, Citibank or any of its Affiliates, as the case may be, ceases
to be a party to the Credit Agreement.

(2) At any time, Citibank or any of its Affiliates receives a notice or letter
or other form of writing (whether from Citibank’s own Affiliates, Party B or
Party B’s Affiliates or any other entity) indicating that a Cancellation Event
has occurred or shall occur or take effect after the delivery of such notice,
letter or form of writing.

(3) At any time, the obligations and liabilities of Counterparty under this
Transaction fail to rank, be secured or be guaranteed, in each case,

 

  (i) on a pari passu basis with or equal in right or priority of payment with
the obligations and liabilities of Counterparty and any of its Affiliates under
the Loan Documents.

B. Additional Event of Default.

Section 5(a) is hereby amended by inserting the following paragraph at the end
thereof:

“(ix) With respect to Counterparty only, at any time a default, event of default
or other similar condition or event (however described) occurs with respect to
Counterparty under the Credit Agreement.”

C. Credit Support Provisions.

 

  (1) Credit Support Documents.

 

  (a) In the case of Citibank, None.

 

  (b) In the case of Counterparty,

 

  (1) each of the Collateral Documents

 

  (2) and the Credit Support Annex.

 

  (2) Credit Support Providers.

 

  (a) In the case of Citibank, None.

 

  (b) In the case of Counterparty,

 

  (i) each party to the Collateral Documents that is an Affiliate of
Counterparty.

 

  (ii) None.

“Credit Agreement”

Means the Secured Commercial Mortgage, dated on or about May, 2006 (as amended,
supplemented, waived or otherwise modified from time to time) by and among
Counterparty, (to the extent applicable) the relevant Affiliates of
Counterparty, and the banks or lenders from time to time parties thereto. For
clarification, said Credit Agreement shall not incorporate or reference any
agreement in respect of (x) any refinancing or extension, in each case, in
whatever form, of the initial credit facility evidenced by said Credit Agreement
(said initial credit facility, the “Initial Credit Facility”) or (y) any
substitute credit facility.

“Collateral Documents”

Means any and all Security Documents and Guarantees that secure or guarantee or
purports to secure or to guarantee, as the case may be, the performance or
payment of the obligations and liabilities of the Counterparty under this
Confirmation or in respect of this Transaction.

“Loan Documents”

Means the collective reference to the Credit Agreement, the Guarantees, the
Security Documents, and any other document or instrument executed and delivered
by Counterparty and/or any of its Affiliates in respect of the Initial Credit
Facility.

“Security Documents”

Means any and all pledge and/or security agreements and any other document
executed and delivered at any time in respect of the granting of any lien
(however described) on any property or asset of Counterparty and/or any of its
Affiliates to secure the performance or payment of the obligations and
liabilities of each of Counterparty and its Affiliates under the Credit
Agreement and the Guarantees.

--------------------------------------------------------------------------------

4. Account Details

 

Payments to Citibank in USD:   

CITIBANK N.A. NEW YORK

BIC: CITIUS33

ACCOUNT NO 00167679

ACCOUNT NAME: FINANCIAL FUTURES

Payments to Counterparty:    Please provide to expedite payment

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If you have any questions regarding this letter agreement, please contact the
Swap Operations Department at the telephone numbers or the facsimile numbers
indicated on this Confirmation.

Please confirm that the foregoing correctly sets forth the terms of our
agreement by executing the copy of this Confirmation enclosed for that purpose
and returning it to us.

 

Very truly yours,

Citibank N.A., New York

By:

 

/s/ FRANK A. LICCIARDELLD

 

Frank A. Licciardelld

Authorised Signatroy

 

Accepted and confirmed as

of the Trade Date:

Kensey Nash Corporation

By:

      

Authorized Signatory

--------------------------------------------------------------------------------

EXHIBIT I-AMORTIZATION SCHEDULE

Our Reference: M062891

 

Calculation Period*
From and including    To but excluding    USD
Notional Amount 5/25/2006    6/26/2006    8,000,000.00 6/26/2006    7/25/2006   
8,000,000.00 7/25/2006    8/25/2006    8,000,000.00 8/25/2006    9/25/2006   
8,000,000.00 9/25/2006    10/25/2006    8,000,000.00 10/25/2006    11/27/2006   
8,000,000.00 11/27/2006    12/26/2006    8,000,000.00 12/26/2006    1/25/2007   
8,000,000.00 1/25/2007    2/26/2007    8,000,000.00 2/26/2007    3/26/2007   
8,000,000.00 3/26/2007    4/25/2007    8,000,000.00 4/25/2007    5/25/2007   
8,000,000.00 5/25/2007    6/25/2007    8,000,000.00 6/25/2007    7/25/2007   
8,000,000.00 7/25/2007    8/27/2007    8,000,000.00 8/27/2007    9/25/2007   
8,000,000.00 9/25/2007    10/25/2007    8,000,000.00 10/25/2007    11/26/2007   
8,000,000.00 11/26/2007    12/26/2007    35,000,000.00 12/26/2007    1/25/2008
   34,883,333.33 1/25/2008    2/25/2008    34,766,666.66 2/25/2008    3/25/2008
   34,649,999.99 3/25/2008    4/25/2008    34,533,333.32 4/25/2008    5/27/2008
   34,416,666.65 5/27/2008    6/25/2008    34,299,999.98 6/25/2008    7/25/2008
   34,183,333.31 7/25/2008    8/25/2008    34,066,666.64 8/25/2008    9/25/2008
   33,949,999.97 9/25/2008    10/27/2008    33,833,333.30 10/27/2008   
11/25/2008    33,716,666.63 11/25/2008    12/26/2008    33,599,999.96 12/26/2008
   1/26/2009    33,483,333.29 1/26/2009    2/25/2009    33,366,666.62 2/25/2009
   3/25/2009    33,249,999.95 3/25/2009    4/27/2009    33,133,333.28 4/27/2009
   5/26/2009    33,016,666.61 5/26/2009    6/25/2009    32,899,999.94 6/25/2009
   7/27/2009    32,783,333.27 7/27/2009    8/25/2009    32,666,666.60 8/25/2009
   9/25/2009    32,549,999.93 9/25/2009    10/26/2009    32,433,333.26
10/26/2009    11/25/2009    32,316,666.59 11/25/2009    12/28/2009   
32,199,999.92

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12/28/2009    1/25/2010    32,083,333.25 1/25/2010    2/25/2010    31,966,666.58
2/25/2010    3/25/2010    31,849,999.91 3/25/2010    4/26/2010    31,733,333.24
4/26/2010    5/25/2010    31,616,666.57 5/25/2010    6/25/2010    31,499,999.90
6/25/2010    7/26/2010    31,383,333.23 7/26/2010    8/25/2010    31,266,666.56
8/25/2010    9/27/2010    31,149,999.89 9/27/2010    10/25/2010    31,033,333.22
10/25/2010    11/26/2010    30,916,666.55 11/26/2010    12/27/2010   
30,799,999.88 12/27/2010    1/25/2011    30,683,333.21 1/25/2011    2/25/2011   
30,566,666.54 2/25/2011    3/25/2011    30,449,999.87 3/25/2011    4/25/2011   
30,333,333.20 4/25/2011    5/25/2011    30,216,666.53 5/25/2011    6/27/2011   
30,099,999.86 6/27/2011    7/25/2011    29,983,333.19 7/25/2011    8/25/2011   
29,866,666.52 8/25/2011    9/26/2011    29,749,999.85 9/26/2011    10/25/2011   
29,633,333.18 10/25/2011    11/25/2011    29,516,666.51 11/25/2011    12/27/2011
   29,399,999.84 12/27/2011    1/25/2012    29,283,333.17 1/25/2012    2/27/2012
   29,166,666.50 2/27/2012    3/26/2012    29,049,999.83 3/26/2012    4/25/2012
   28,933,333.16 4/25/2012    5/25/2012    28,816,666.49 5/25/2012    6/25/2012
   28,699,999.82 6/25/2012    7/25/2012    28,583,333.15 7/25/2012    8/27/2012
   28,466,666.48 8/27/2012    9/25/2012    28,349,999.81 9/25/2012    10/25/2012
   28,233,333.14 10/25/2012    11/26/2012    28,116,666.47 11/26/2012   
12/26/2012    27,999,999.80 12/26/2012    1/25/2013    27,883,333.13 1/25/2013
   2/25/2013    27,766,666.46 2/25/2013    3/25/2013    27,649,999.79 3/25/2013
   4/25/2013    27,533,333.12 4/25/2013    5/28/2013    27,416,666.45 5/28/2013
   6/25/2013    27,299,999.78 6/25/2013    7/25/2013    27,183,333.11 7/25/2013
   8/26/2013    27,066,666.44 8/26/2013    9/25/2013    26,949,999.77 9/25/2013
   10/25/2013    26,833,333.10 10/25/2013    11/25/2013    26,716,666.43
11/25/2013    12/26/2013    26,599,999.76 12/26/2013    1/27/2014   
26,483,333.09 1/27/2014    2/25/2014    26,366,666.42

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2/25/2014    3/25/2014    26,249,999.75 3/25/2014    4/25/2014    26,133,333.08
4/25/2014    5/27/2014    26,016,666.41 5/27/2014    6/25/2014    25,899,999.74
6/25/2014    7/25/2014    25,783,333.07 7/25/2014    8/25/2014    25,666,666.40
8/25/2014    9/25/2014    25,549,999.73 9/25/2014    10/27/2014    25,433,333.06
10/27/2014    11/25/2014    25,316,666.39 11/25/2014    12/26/2014   
25,199,999.72 12/26/2014    1/26/2015    25,083,333.05 1/26/2015    2/25/2015   
24,966,666.38 2/25/2015    3/25/2015    24,849,999.71 3/25/2015    4/27/2015   
24,733,333.04 4/27/2015    5/26/2015    24,616,666.37 5/26/2015    6/25/2015   
24,499,999.70 6/25/2015    7/27/2015    24,383,333.03 7/27/2015    8/25/2015   
24,266,666.36 8/25/2015    9/25/2015    24,149,999.69 9/25/2015    10/26/2015   
24,033,333.02 10/26/2015    11/25/2015    23,916,666.35 11/25/2015    12/28/2015
   23,799,999.68 12/28/2015    1/25/2016    23,683,333.01 1/25/2016    2/25/2016
   23,566,666.34 2/25/2016    3/25/2016    23,449,999.67 3/25/2016    4/25/2016
   23,333,333.00 4/25/2016    5/25/2016    23,216,666.33