Exhibit 10(e)

                      KEY EMPLOYEE SEVERANCE PAY AGREEMENT

     This agreement is made effective as of October 12th, 1995,  between MET-PRO
CORPORATION,  a Delaware corporation with principal offices at 160 Cassell Road,
Box  144,   Harleysville,   Pennsylvania,   (hereinafter   referred  to  as  the
"Corporation")  and WILLIAM L. KACIN,  of 451 Country Club Drive,  Lansdale,  PA
19446 (hereinafter referred to as the "Employee").

                                    RECITALS

     A. Employee has been employed by the  Corporation  since November 17, 1975.
During the period of his employment,  and particularly in his present  capacity,
he has performed his duties ably,  demonstrating  loyalty to the Corporation and
greatly benefiting it.

     B. In recognition of Employee's status as a key employee and to provide the
Employee with a deserved measure of security in the event of a change in control
of the Corporation, the Corporation is willing to enter into this Agreement.

     C. The Employee and the Corporation  believe that the benefits conferred by
this  Agreement  will  encourage  the  Employee  to  continue  his high level of
performance of his duties during the period of instability which could result if
hostile attempts to take control of the Corporation should occur.

     NOW, THEREFORE, the parties hereto hereby agree as follows:

     1. Definitions.

          (a) Change in Control. A change in control shall be deemed to have
     occurred as of the date on which either of the following events occurs:

               (i) Any "person" or "group of persons acting in concert", who are
          not part of the present Management, becomes the "beneficial owner,
          directly or indirectly, of securities of the Corporation representing
          thirty-five (35%) or more of the combined voting power of the
          Corporation's then outstanding securities; or

               (ii)  There  shall  be  a  change  in  the   composition  of  the
          Corporation's  Board of Directors so that a majority of the  Directors
          in office on the effective date of this Agreement no longer constitute
          a majority thereof; provided,  however, that any Director elected upon
          the recommendation of the present majority shall be considered to be a
          part of the present majority.

          (b) Person. A "Person" shall be as defined in the Securities  Exchange
     Act of 1934, as amended.

          (c) Beneficial Owner of Securities. A "Beneficial Owner of Securities"
     shall be as defined in Rule 13d-3 promulgated under the Securities Exchange
     Act of 1934, as amended.

          (d) Management.   "Management"   shall  mean   the  officers   of  the
     Corporation  in office at the  effective  date of this  Agreement  or their
     successors elected by a majority of the present Directors.

          (e) Compensation.   "Compensation"   shall  mean  the   annual  salary
     (exclusive of bonuses, sick leave, vacation pay or other extra compensation
     or  benefits)  being  paid to the  Employee  at the time  when a Change  in
     Control occurs or thereafter, whichever is higher.

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          (f) Involuntary Termination of Employment. "Involuntary Termination of
     Employment" shall mean

               (i) Termination of employment without cause; or

               (ii) Termination of employment by the Employee as a result of a
          reduction in his status, or duties, or responsibilities, or rate of
          compensation, or the imposition of intolerable working conditions.

          (g) Cause. "Cause" for the purposes of Section 1(f)(i) shall mean
     conviction for a felony, commission of any act constituting common law
     fraud, habitual drunkenness or drug abuse, significant malfeasance or
     nonfeasance of duty or disloyalty to the Corporation.

     2. Severance Pay. In the event of a change in control of the Corporation
and the involuntary termination of Employee's employment within eighteen (18)
months thereafter, the Employee shall be entitled to receive severance pay equal
to two years' compensation, as defined herein. Such severance pay shall be due
and payable in full at the time of Employee's receipt of final payment of his
regular compensation.

     3. Continued  Performance by Employee.  In consideration of the granting of
benefits to him by this Agreement, Employee agrees:

          (a) That he will  continue  to use his best  efforts  to  perform  his
     duties as assigned by the Corporation; and

          (b) That, in the event a Change in Control is pending or threatened,
     he will not voluntarily terminate his employment by the Corporation prior
     to an actual Change in Control, but will continue to perform his duties in
     the same manner as with the same effort as he had employed prior to the
     occurrence of such events.

     4. Rights to Terminate  Employment.  This  Agreement  is not an  employment
agreement.  Nothing  contained  herein  shall be deemed to preclude  the present
management  of the  Corporation  or the  Employee  from  terminating  Employee's
employment, with or without cause, at any time.

     5. No  Obligation to Maintain  Reserves.  Nothing in this  Agreement  shall
obligate the  Corporation  to set aside or earmark any of its assets to fund the
obligation hereunder.

     6. Binding  Effect.  This Agreement  shall be binding upon and enure to the
benefit  of  the  parties  hereto,  their  heirs,   executors,   administrators,
successors and assigns.

     7. Applicable  Law. This Agreement shall be interpreted  under and governed
by the laws of the State of Delaware.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.


                                                    MET-PRO CORPORATION


 /s/ William L. Kacin                               By: /s/ Walter A. Everett
---------------------------                            -------------------------
                                                         Chairman
        Employee                                       [Corporation]

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