Document:

exv4w7

 

EXHIBIT 4.7

BRUNSWICK RESTORATION PLAN

(As Amended and Restated Effective December 31, 2002)

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	PAGE
	 	 	 	 	 	 	 	

	 
	 	SECTION 1
	 	General
	 	 	1	 
	 
	 	 	1.1
	 	History, Purpose and Effective Date
	 	 	1	 
	 
	 	 	1.2
	 	Definitions, References
	 	 	1	 
	 
	 	 	1.3
	 	Plan Administration, Source of Benefit Payments
	 	 	1	 
	 
	 	 	1.4
	 	Applicable Laws
	 	 	2	 
	 
	 	 	1.5
	 	Plan Year
	 	 	2	 
	 
	 	 	1.6
	 	Accounting Date
	 	 	2	 
	 
	 	 	1.7
	 	Gender and Number
	 	 	2	 
	 
	 	 	1.8
	 	Notices
	 	 	2	 
	 
	 	 	1.9
	 	Action by Employers
	 	 	2	 
	 
	 	 	1.10
	 	Limitations on Provisions
	 	 	2	 
	 
	 	 	1.11
	 	Claims and Review Procedures
	 	 	2	 
	 
	 	SECTION 2
	 	Participation
	 	 	3	 
	 
	 	 	2.1
	 	Eligibility to Participate
	 	 	3	 
	 
	 	 	2.2
	 	Beneficiary
	 	 	3	 
	 
	 	 	2.3
	 	Restricted Participation
	 	 	3	 
	 
	 	 	2.4
	 	Plan Not Contract of Employment
	 	 	3	 
	 
	 	SECTION 3
	 	Contributions
	 	 	3	 
	 
	 	 	3.1
	 	Participant Accounts
	 	 	3	 
	 
	 	 	3.2
	 	Supplemental Elective Contributions
	 	 	3	 
	 
	 	 	3.3
	 	Restoration Matching Contributions
	 	 	4	 
	 
	 	 	3.4
	 	Restoration Profit Sharing Contributions
	 	 	4	 
	 
	 	SECTION 4
	 	Plan Accounting
	 	 	5	 
	 
	 	 	4.1
	 	Adjustment of Accounts
	 	 	5	 
	 
	 	 	4.2
	 	Statement of Accounts
	 	 	5	 
	 
	 	SECTION 5
	 	Payment of Plan Benefits
	 	 	5	 
	 
	 	 	5.1
	 	Distribution on Termination
	 	 	5	 
	 
	 	 	5.2
	 	Distribution Upon a Change In Control
	 	 	6	 
	 
	 	 	5.3
	 	Distributions To Persons Under Disability
	 	 	7	 
	 
	 	 	5.4
	 	Benefits May Not Be Assigned or Alienated
	 	 	7	 
	 
	 	 	5.5
	 	Withholding for Tax Liability
	 	 	8	 
	 
	 	SECTION 6
	 	Amendment and Termination
	 	 	8	 

i 

 

BRUNSWICK RESTORATION PLAN

SECTION 1

General

     1.1. History, Purpose and Effective Date. Brunswick Corporation (the
“Company”) has previously established the Brunswick Rewards Plan (“Rewards
Plan”) and the Brunswick Retirement Savings Plan (“Savings Plan”) to provide
retirement and other benefits to or on behalf of its eligible employees and
those of its affiliates which, with the consent of the Company, adopt the
Rewards and Savings Plans. Contrary to the desire of the Company, the amount of
the employer contributions which may be made to the Rewards and Savings Plans
by or for the benefit of employees under the Rewards and Savings Plans may be
limited by reason of the application of certain provisions of the Internal
Revenue Code of 1986, as amended (the “Code”). Therefore, the Company
established the Brunswick Restoration Plan (the “Plan”), effective as of
January 1, 2000, to assure that affected individuals would receive benefits in
an amount comparable to the amount that they would have received under the
Rewards and Savings Plans if certain limitations of the Code were not
applicable to the Rewards and Savings Plans. Effective January 1, 2002, the
Plan has been amended and restated to permit Participants to make “Supplemental
Elective Contributions” to the Plan (defined below), to cause the “Restoration
Matching Contributions” (defined below) to be based on such Supplemental
Elective Contributions, and to reflect changes made to the Rewards Plan and
Savings Plan. The Company and any affiliate of the Company which adopts the
Plan for the benefit of its eligible employees are referred to below,
collectively, as the “Employers” and individually as an “Employer”.

     1.2. Definitions, References. Unless the context clearly requires
otherwise, any word, term or phrase used in the Plan shall have the same
meaning given to it under the terms of the Rewards or Savings Plan, whichever
is applicable. Any reference in the Plan to a provision of the Rewards or
Savings Plan shall be deemed to include reference to any comparable provision
of any amendment of that plan.

     1.3. Plan Administration, Source of Benefit Payments. The authority to
control and manage the operation and administration of the Plan shall be vested
in the committee appointed by the Board of Directors of the Company to act
under the Rewards and Savings Plans (the “Committee”). In controlling and
managing the operation and administration of the Plan, the Committee shall have
the same rights, powers and duties as those delegated to it under the Rewards
and Savings Plans. The amount of any benefit payable under the Plan shall be
paid from the general revenues of the Employer with respect to whose former
employee the benefit is payable. If a Participant (as defined in subsection
2.1) has been employed by more than one Employer, the portion of his Plan
benefit payable by each such Employer shall be equal to that portion of such
benefit attributable to the reduction of his compensation from that Employer
which is made pursuant to his Participation Election (as defined in subsection
3.2) or otherwise

 

 

made by that Employer. An Employer’s obligation under the Plan shall be
reduced to the extent that any amounts due under the Plan are paid from one or
more trusts, the assets of which are subject to the claims of general creditors
of the Employer or any affiliate thereof; provided, however, that, nothing in
this Plan shall require the Company or any Employer to establish any trust to
provide benefits under the Plan.

     1.4. Applicable Laws. The Plan shall be construed and administered in
accordance with the laws of the State of Illinois to the extent that such laws
are not preempted by the laws of the United States of America.

     1.5. Plan Year. The “Plan Year” shall be the calendar year.

     1.6. Accounting Date. The “Accounting Date” shall be the last business
day of each month and each additional date specified by the Committee.

     1.7. Gender and Number. Where the context admits, words in one gender
shall include the other gender, words in the singular shall include the plural
and the plural shall include the singular.

     1.8. Notices. Any notice or document required to be filed with the
Committee under the Plan will be properly filed if delivered or mailed by
registered mail, postage prepaid, to the Committee, in care of the Company, at
its principal executive offices. Any notice required under the Plan may be
waived by the person entitled to notice.

     1.9. Action by Employers. Any action required or permitted to be taken
under the Plan by any Employer which is a corporation shall be by resolution of
its Board of Directors, or by a person or persons authorized by its Board of
Directors. Any action required or permitted to be taken by any Employer which
is a partnership shall be by a general partner of such partnership or by a duly
authorized officer thereof.

     1.10. Limitations on Provisions. The provisions of the Plan and the
benefits provided hereunder shall be limited as described herein. Any benefit
payable under the Rewards or Savings Plan shall be paid solely in accordance
with the terms and conditions of the Rewards or Savings Plan and nothing in
this Plan shall operate or be construed in any way to modify, amend, or affect
the terms and provisions of the Rewards or Savings Plan.

     1.11. Claims and Review Procedures. The claims procedure applicable to
claims and appeals of denied claims under the Rewards or Savings Plan shall
apply to any claims for benefits under the Plan and appeals of any such denied
claims.

2

 

SECTION 2

Participation

     2.1. Eligibility to Participate. Each employee of an Employer shall be
eligible to participate in the Plan for a Plan Year if, as of the November 1
preceding such Plan Year, such employee is eligible to participate in the
Rewards or Savings Plan and has annual base pay of at least $100,000.

     2.2. Beneficiary. A Participant’s “Beneficiary” under the Plan shall be
identical to his beneficiary under the Rewards or Savings Plan, whichever the
Participant last participated in at the time of his death.

     2.3. Restricted Participation. Notwithstanding any other provision of
the Plan to the contrary, if the Committee determines that participation by one
or more Participants or Beneficiaries shall cause the Plan as applied to any
Employer to be subject to Part 2, 3 or 4 of Title I of the Employee Retirement
Income Security Act of 1974, as amended, the entire interest of such
Participant or Beneficiary under the Plan shall, in the discretion of the
Committee, be immediately paid to such Participant or Beneficiary by the
applicable Employer or Employers, or shall otherwise be segregated from the
Plan, and such Participant(s) or Beneficiary(ies) shall cease to have any
interest under the Plan.

     2.4. Plan Not Contract of Employment. The Plan does not constitute a
contract of employment, and participation in the Plan will not give any
employee the right to be retained in the employ of any Employer nor any right
or claim to any benefit under the Plan, unless such right or claim has
specifically accrued under the terms of the Plan.

SECTION 3

Contributions

     3.1. Participant Accounts. The Committee shall maintain a “Supplemental
Elective Contribution Account”, a “Restoration Matching Account” and a
“Restoration Profit Sharing Account”, and such subaccounts as the Committee
deems necessary or appropriate, in the name of each person who is a
Participant, for bookkeeping purposes only. Such accounts are sometimes
referred to collectively as the Participant’s Accounts and individually as the
Participant’s “Account”.

     3.2. Supplemental Elective Contributions. For any Plan Year, an eligible
employee may file with the Committee a “Participation Election” in accordance
with uniform rules established by the Committee which, in all events, shall be
filed prior to the first day of the Plan Year to which it relates. A
Participant’s Participation Election shall indicate the Participant’s agreement

3

 

to defer from Compensation and have credited to the Participant’s Accounts
the following amounts:

	 	(a)
	 	the amount of any Pre-Tax Contributions that the
Participant elected to contribute to the Rewards or Savings
Plan for the Plan Year for which the Supplemental Elective
Contributions Participation Election is made, but that cannot
be contributed to such Plan due to the limits under sections
401(a)(17) and 402(g) of the Code or imposed under the Plan to
enable the Plan to pass the nondiscrimination requirements of
sections 401(k)(3) and 401(m)(2) of the Code; and;

	 	(b)
	 	the amounts, if any, refunded to the Participant
by the Rewards or Savings Plan (during the Plan Year for which
the Supplemental Elective Contributions Participation Election
is made) on account of the failure of the Rewards or Savings
Plan, as applicable, to pass the nondiscrimination
requirements of sections 401(k)(3) and 401(m)(2) of the Code
and comply with the limitations of section 415 of the Code.

     3.3. Restoration Matching Contributions. For any Plan Year, a
Participant’s Restoration Matching Account will be credited with an amount
equal to the remainder of (a) minus (b), where

	 	(a)
	 	equals (i) the matching rate applicable to the
Participant under the Rewards or Savings Plan, as applicable,
multiplied by (ii) the amount, up to 6% of the Participant’s
Compensation for such Plan Year, of Pre-Tax Contributions the
Participant elected to contribute to the Rewards or Savings
Plan, as applicable, for the Plan Year (without regard to the
limits under the Code or imposed under the Rewards or Savings
Plan, applicable, enable such Plan to comply with such
limits); and

	 	(b)
	 	equals the Matching Contributions made on the
Participant’s behalf under the Rewards or Savings Plan, as
applicable, for the Plan Year.

     3.4. Restoration Profit Sharing Contributions. For any Plan Year in
which a Participant participates in the Rewards Plan, such Participant’s
Restoration Profit Sharing Account will be credited with an amount equal to the
difference between (a) the employer profit sharing contributions that would
have been contributed on behalf of the Participant to the Rewards Plan for that
Plan Year, in accordance with the terms thereof, determined without regard to
the limitations of sections 415 or 401(a)(17) of the Code, and (b) the amount
of employer profit sharing contributions actually made to the Rewards Plan on
behalf of the Participant. Credits to the Participant’s Restoration Profit
Sharing Account pursuant to this subsection 3.4 (called “Restoration Profit
Sharing Contributions”) shall be made at the same time that employer profit
sharing contributions would otherwise have been credited to his account under
the Rewards Plan.

4

 

SECTION 4

Plan Accounting

     4.1. Adjustment of Accounts. The amounts determined under subsections
3.2, 3.3 and 3.4 shall be credited to a Participant’s Account in accordance
with uniform rules established by the Committee, and thereafter shall be
adjusted from time to time in accordance with procedures established by the
Committee to reflect the increase or decrease in value from the assumed
investment of the Participant’s Account balance in one or more hypothetical
investments that the Committee specifies from time to time. Such amounts may
be adjusted to reflect employment taxes payable with respect to deferred
compensation prior to termination of employment. The Committee may not
retroactively eliminate any assumed investment alternative. To the extent and
in the manner permitted by the Committee, the Participant may elect to have
different portions of his Account balance adjusted for any period on the basis
of different hypothetical investments. Notwithstanding the election by
Participants of certain hypothetical investments and the adjustment of their
Accounts based on such investment decisions in accordance with uniform rules
established by the Committee, the Plan does not require, and no trust or other
instrument maintained in connection with the Plan shall require, that any
assets or amounts which are set aside in trust or otherwise for the purpose of
paying Plan benefits shall actually be invested in the investment alternatives
selected by Participants.

     4.2. Statement of Accounts. As soon as practicable after the last day of
each Plan year, the Committee will cause to be delivered to each Plan
Participant a statement of the balances of his Plan Accounts as of that day.
As of the end of each Plan Year, the Account (including amounts accrued prior
to December 31, 2002) of each Participant on whose behalf a Supplemental Profit
Sharing Contribution is made by the Company for such Plan Year under Section
4.2 of The Brunswick Rewards Plan shall be reduced in accordance with
procedures established by the Committee by the amount of such contribution.

SECTION 5

Payment of Plan Benefits

     5.1. Distribution on Termination. Subject to the following provisions of
this subsection 5.1, as of the Accounting Date coincident with or next
following a Participant’s termination date, there shall be payable to him or,
in the event of his death, to his Beneficiary an amount equal to the entire
balance of his Accounts in a lump sum payment in cash. Payment shall be made
to the Participant (or his Beneficiary) as soon as practicable following such
Accounting Date.

5

 

     5.2. Distribution Upon a Change In Control. In the event of a Change in
Control, a Participant may elect, within the 60-day period following such
Change in Control, to have his entire account paid to him in a lump sum as soon
as practicable after the 90th day following such Change in Control. For this
purpose, “Change in Control” means the occurrence of any of the following
events:

	 	(a)
	 	any Person other than a trustee or other
fiduciary of securities held under an employee benefit plan of
the Company or any of its subsidiaries, is or becomes a
Beneficial Owner, directly or indirectly, of stock of the
Company representing 30% or more of the total voting power of
the Company’s then outstanding stock and securities, excluding
any Person who becomes such a Beneficial Owner in connection
with a transaction described in clause (A) of paragraph (d),
below;

	 	(b)
	 	a tender offer (for which a filing has been made
with the Securities and Exchange Commission (“SEC”) which
purports to comply with the requirements of Section 14(d) of
the Securities Exchange Act of 1934 and the corresponding SEC
rules) is made for the stock of the Company, which has not
been negotiated and approved by the Board of Directors of the
Company, then the first to occur of

	 	(i)
	 	any time during the offer when the
Person making the offer owns or has accepted for payment
stock of the Company with 25% or more of the total
voting power of the Company’s stock, or

	 	(ii)
	 	three business days before the offer
is to terminate unless the offer is withdrawn first if
the Person making the offer could own, by the terms of
the offer plus any shares owned by this Person, stock
with 50% or more of the total voting power of the
Company’s stock when the offer terminates;

	 	(c)
	 	individuals who, as of the date hereof,
constitute the Board of Directors (the “Incumbent Board”) of
the Company, cease for any reason to constitute a majority
thereof, provided, however, that any individual becoming a
director whose election, or nomination for election by the
Company’s stockholders, was approved by a vote of at least 75%
of the directors then comprising the Incumbent Board shall be
considered as though such individual was a member of the
Incumbent Board, but excluding, for this purpose, any such
individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with
respect to the election or removal of directors or other
actual or threatened solicitation of proxies or consents by or
on behalf of a Person other than the Board of Directors of the
Company;

6

 

	 	(d)
	 	there is consummated a merger or consolidation of
the Company (or any direct or indirect subsidiary of the
Company) with any other corporation, other than (A) a merger
or consolidation which would result in the voting securities
of the Company outstanding immediately prior to such merger or
consolidation continuing to represent (either by remaining
outstanding or by being converted into voting securities of
the Company or such surviving entity or any parent thereof) at
least 75% of the combined voting power of the stock and
securities of the Company or such surviving entity or any
parent thereof outstanding immediately after such merger or
consolidation, or (B) a merger or consolidation effected to
implement a recapitalization of the Company (or similar
transaction) in which no Person is or becomes the Beneficial
Owner, directly or indirectly, of stock and securities of the
Company representing more than 25% of the combined voting
power of the Company’s then outstanding stock and securities;
or

	 	(e)
	 	the stockholders of the Company approve a plan of
complete liquidation or dissolution of the Company or there is
consummated an agreement for the sale or disposition by the
Company of all or substantially all of the Company’s assets to
an entity at least 75% of the combined voting power of the
stock and securities which is owned by Persons in
substantially the same proportions as their ownership of the
Company’s voting stock immediately prior to such sale.

	 	
	 	“Person” shall mean any person (as defined in Section 3(a)(9)
of the Securities Exchange Act (the “Exchange Act”), as such
term is modified in Section 13(d) and 14(d) of the Exchange
Act) other than (1) any employee plan established by the
Company, (2) the Company or any of its affiliates (as defined
in Rule 12b-2 promulgated under the Exchange Act), (3) an
underwriter temporarily holding securities pursuant to an
offering of such securities, or (4) a corporation owned,
directly or indirectly, by stockholders of the Company in
substantially the same proportions as their ownership of the
Company. “Beneficial Owner” shall mean beneficial owner as
defined in Rule 13d-3 under the Exchange Act.

     5.3. Distributions To Persons Under Disability. In the event a
Participant or his Beneficiary is declared incompetent and a conservator or
other person legally charged with the care of his person or of his estate is
appointed, any benefit to which such Participant or Beneficiary is entitled
under the Plan shall be paid to such conservator or other person legally
charged with the care of his person or of his estate.

     5.4. Benefits May Not Be Assigned or Alienated. The benefit payable to
any Participant or Beneficiary under the Plan may not be voluntarily or
involuntarily assigned or alienated.

7

 

     5.5. Withholding for Tax Liability. The Company may reduce any Account
balance to reflect the payment of any taxes due on amounts deferred under the
Plan and may withhold or cause to be withheld from any payment of benefits made
pursuant to the Plan any taxes required to be withheld and such sum as the
Company may reasonably estimate to be necessary to cover any taxes for which
the Company may be liable and which may be assessed with regard to such
payment.

SECTION 6

Amendment and Termination

     The Company may, at any time, amend or terminate the Plan; provided,
however, that subject to the provisions of the following sentence, neither an
amendment nor a termination shall adversely affect the rights of any
Participant or Beneficiary under the Plan. The Company, by Plan amendment or
termination, may prospectively (a) modify or eliminate the right to have
amounts credited to any Restoration Matching Account or Restoration Profit
Sharing Account of any Participant and (b) prospectively change the rate at
which earnings are credited to Account balances and or the hypothetical
investment vehicles. Notwithstanding the foregoing provisions of this Section
6, the Company may amend or terminate the Plan at any time, to take effect
retroactively or otherwise, as deemed necessary or advisable for purposes of
conforming the Plan to any present or future law, regulations or rulings
relating to plans of this or a similar nature.

8<PAGE>

                                                                    EXHIBIT 10.5

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT ("Agreement"), is made and entered into as of
the 1st day of October, 2003, by and between Kensey Nash Corporation, a Delaware
corporation (the "Company"), and Wendy F. DiCicco ("Executive").

         WHEREAS, the Company wishes to retain Executive as an executive
employee, and Executive wishes to be employed by the Company in such capacity,
all upon the terms and conditions hereinafter set forth.

         NOW, THEREFORE, in consideration of the mutual covenants of parties
hereinafter set forth, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

1. EMPLOYMENT OF EXECUTIVE. The Company engages and employs Executive in an
executive capacity and Executive accepts such employment and agrees to act as an
employee of the Company in accordance with the terms of employment hereinafter
specified. Executive shall hold the office of Chief Financial Officer and shall,
subject to the direction and supervision of the Company's Board of Directors,
(a) have the responsibilities and authority customarily associated with such
office, and (b) perform such other duties and responsibilities as the Company's
Board of Directors shall from time to time assign to her. Executive agrees
diligently and faithfully to serve the Company and to devote her best efforts,
her full business time and her highest talents and skills to the furtherance and
success of the Company's business.

2. COMPENSATION. As full and complete compensation to Executive for all services
to be rendered by Executive hereunder, the Company shall pay Executive as
follows:

         (a) The Company shall, during the term of Executive's full-time
employment, pay or cause to be paid to Executive a base salary at the rate of
$165,000 per annum, or Executive's most recent per annum base salary, whichever
is greater. Such base salary shall be paid in periodic installments at the
discretion of the Company (but not less frequently than monthly) in accordance
with the Company's normal mode of executive salary payment.

         (b) The Company may, during the term of Executive's employment, pay or
cause to be paid to Executive an annual bonus of cash, stock or other property
in such amounts as the Company's Board of Directors may determine in their sole
discretion, but not to exceed 75% of Executive's base salary.

3. TERM OF EMPLOYMENT; SEVERANCE.

         (a) The term of Executive's employment hereunder (the "Employment
Term") shall commence on the date hereof and shall expire two (2) years after
such date.

         (b) Termination of Executive's employment pursuant to this Agreement or
voluntary termination of employment shall not constitute a waiver of any of
Executive's obligations hereunder which survive termination hereof, including
without limitation those arising under paragraphs 5 through 9 inclusive hereof.

         (c) In the event Executive's employment is terminated by the Company
without cause (as hereinafter determined), Executive shall continue to be
entitled to receive those fringe benefits enumerated in paragraph 4 hereof until
the expiration of the original Employment Term and the Company shall pay to
Executive a severance

                                       28

<PAGE>

fee equal to the greater of (i) any amount of base salary remaining until the
expiration of the original Employment Term and bonus for each remaining year of
the original Employment Term, which bonus shall be based on an average of the
bonuses received by Executive during the last two fiscal years prior to such
termination without cause (the "Estimated Bonus"), to which Executive would
otherwise be entitled but for such termination, or (ii) twelve (12) months of
Executive's salary and Estimated Bonus; provided, however, that Executive shall
not be entitled to receive any fringe benefits or such severance fee if
Executive breaches any of her obligations arising under paragraphs 7 through 9
hereof. The continuance of Executive's fringe benefits and the payment by the
Company of any severance fee to Executive pursuant to this Agreement shall be in
complete satisfaction and settlement of, and as liquidated damages for, any and
all of Executive's claims, damages or causes of action arising directly or
indirectly from this Agreement. In addition, upon the termination of Executive's
employment by the Company without cause, all options to purchase shares of
common stock of the Company ("Options") that were granted to Executive and have
vested prior to the date of such termination without cause shall remain
exercisable for a period of one (1) year from the date of such termination
without cause.

         (d) In the event Executive's employment is terminated with cause, the
Company shall have no further obligations hereunder or otherwise with respect to
Executive's employment from and after the date of such termination, except for
the payment of Executive's base salary accrued through the date of such
termination. For purposes of this Agreement, "cause" for termination shall be
deemed to exist upon (i) a determination by the Company's Board of Directors
that Executive has committed an act of fraud, embezzlement or other act of
dishonesty which would reflect adversely on the integrity of the Company or if
Executive is convicted of any criminal statute involving breach of fiduciary
duty or moral turpitude; (ii) a reasonable determination by the Company's Board
of Directors that Executive has failed to discharge his duties in a reasonably
satisfactory manner which failure is not cured by Executive within thirty (30)
days after delivery of written notice to Executive specifying the nature of such
failure; (iii) the death of Executive; (iv) a mental or physical disability of
Executive which renders Executive, in the reasonable opinion of the Company's
Board of Directors, unable to effectively perform her duties hereunder for a
substantially continuous period of one hundred eighty (180) days; or (v) the
voluntary termination of Executive's employment hereunder other than as a result
of a breach of the Company's obligations hereunder.

         (e) In the event Executive's employment is terminated by the Company
pursuant to a Change in Control (as that term is defined in that certain
Termination and Change in Control Agreement dated of even date herewith between
the Company and Executive (the "Change in Control Agreement")), the Company
shall pay to Executive a severance fee equal to the greater of (i) the amount
Executive would be entitled to receive under paragraph 3(c) of this Agreement
for a termination without cause, or (ii) the amount Executive would be entitled
to receive pursuant to a Change in Control under the Change in Control
Agreement.

         (f) In the event Executive's employment is not renewed by the Company
upon the expiration of the Employment Term for a term (the "Renewal Term") of at
least one (1) year, Executive shall, upon (i) the expiration of the Renewal
Term, if any, or (ii) the Employment Term in the event there is no Renewal Term,
or (iii) upon Executive's voluntary termination within 60 days of the Company's
failure to renew her employment on substantially the same terms as set forth
herein for at least one (1) year, continue to receive those fringe benefits
enumerated in paragraph 4 hereof for a period of twelve (12) months, and the
Company shall pay to Executive a severance fee equal to three (3) months of
Executive's salary and the Estimated Bonus; provided, however, that Executive
shall not be entitled to receive any fringe benefits or such severance fee if
Executive breaches any of her obligations arising under paragraphs 7 through 9
hereof. In addition, all Options that were granted to Executive and have vested
prior to the expiration of the Renewal Term shall remain exercisable for a
period of one (1) year from the expiration of the Renewal Term.

         (g) In the event any payments or benefits received by the Executive
upon her termination of employment (which payments shall include, without
limitation, the vesting of an option or other non-cash benefit

                                       29

<PAGE>

or property), whether pursuant to the terms of this Agreement or any other plan,
arrangement, or agreement with the Company or any affiliated company
(collectively, the "Total Payments") would be subject (in whole or in part) to
the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as
amended (the "Code"), or any similar tax as may hereafter be imposed (the
"Excise Tax"), the following provisions shall apply:

                  (i) In the event that the Total Payments cause the Executive's
         "parachute payments" within the meaning of Section 280G(b)(2) of the
         Code to equal or to exceed three times the Executive's "base amount"
         within the meaning of Section 280G(b)(3) of the Code (the "Trebled Base
         Amount") by an amount which is not greater than 10% of the Trebled Base
         Amount, the Total Payments shall be reduced (or eliminated) such that
         no portion of the Total Payments is subject to the Excise Tax.
         Reductions shall be made first to those Total Payments arising under
         the terms of this Agreement.

                  (ii) In the event that the Total Payments cause the parachute
         payments to exceed 110% of the Trebled Base Amount, the Company shall
         pay to the Executive at the time specified below, an additional amount
         determined as set forth below (the "Gross-up Payment"). The Gross-up
         Payment shall be made with respect to the amount which equals 100% of
         the Executive's "excess parachute payments" subject to the Excise Tax.
         The Gross-up Payment shall be an amount such that the net amount
         retained by Executive with respect to the Total Payments after
         reduction for any Excise Tax on the Total Payments and any federal,
         state and local income or employment tax and Excise Tax payable by the
         Executive on the Gross-up Payment hereunder (provided that such amount
         is actually paid when due) shall be equal to the amount of the Total
         Payments that the Executive would retain if the Total Payments did not
         constitute parachute payments.

                  (iii) For purposes of determining whether any of the Total
         Payments will be subject to the Excise Tax and the amount of any Excise
         Tax:

                                    (a) The Total Payments shall be treated as
                           "parachute payments" within the meaning of Section
                           280G(b)(2) of the Code, and all "excess parachute
                           payments" within the meaning of Section 280G(b)(1) of
                           the Code shall be treated as subject to the Excise
                           Tax, unless, and except that to the extent that, in
                           the written opinion of independent legal counsel,
                           compensation consultants or auditors of nationally
                           recognized standing ("Independent Advisors") selected
                           by the Company and reasonably acceptable to
                           Executive, the Total Payments (in whole or in part)
                           do not constitute parachute payments, or such excess
                           parachute payments (in whole or in part) represent
                           reasonable compensation for services actually
                           rendered within the meaning of Section 280G(b)(4) of
                           the Code in excess of the base amount within the
                           meaning of Section 280G(b)(3) of the Code or are
                           otherwise not subject to the Excise Tax;

                                    (b) The amount of the Total Payments which
                           shall be treated as subject to the Excise Tax shall
                           be equal to the lesser of (i) the total amount of the
                           Total Payments or (ii) the total amount of excess
                           parachute payments within the meaning of Section
                           280G(b)(1) of the Code (after applying Section
                           3(g)(iii)(a) above); and

                                    (c) The value of any non-cash benefits or
                           any deferred payment or benefit shall be determined
                           by the Independent Advisors in accordance with the
                           principles of Sections 280G(d)(3) and (4) of the
                           Code.

                                    In the event that the Excise Tax is
                           subsequently determined to be less than the amount
                           taken into account hereunder at the time the Gross-up
                           Payment is made, Executive shall repay to the Company
                           at the time that the amount of such reduction in

                                       30

<PAGE>

                           Excise Tax is finally determined (but, if previously
                           paid to the taxing authorities, not prior to the time
                           the amount of such reduction is refunded to Executive
                           or otherwise realized as a benefit by Executive) the
                           portion of the Gross-up Payment that would not have
                           been paid if such Excise Tax had been applied to
                           initially calculating the Gross-up Payment, plus
                           interest on the amount of such repayment at the rate
                           provided in Section 1274(b)(2)(B) of the Code. In the
                           event that the Excise Tax is determined to exceed the
                           amount taken into account hereunder at the time the
                           Gross-up Payment is made (including by reason of any
                           payment the existence or amount of which cannot be
                           determined at the time of the Gross-up Payment), the
                           Company shall make an additional Gross-up Payment and
                           shall indemnify and hold Executive harmless in
                           respect of such excess (plus any interest and
                           penalties payable with respect to such excess) at the
                           time that the amount of such excess is finally
                           determined.

                           The Gross-up Payment provided for above shall be paid
                  on the 30th day (or such earlier date as the Excise Tax
                  becomes due and payable to the taxing authorities) after it
                  has been determined that the Total Payments (or any other
                  portion thereof) are subject to the Excise Tax; provided,
                  however, that if the amount of such Gross-up Payment or
                  portion thereof cannot be finally determined on or before such
                  day, the Company shall pay to Executive on such day an
                  estimate, as determined by the Independent Advisors, of the
                  minimum amount of such payments and shall pay the remainder of
                  such payments (together with interest at the rate provided in
                  Section 1274(b)(2)(B) of the Code), as soon as the amount
                  thereof can be determined. In the event that the amount of the
                  estimated payments exceeds the amount subsequently determined
                  to have been due, such excess shall constitute a loan by the
                  Company to Executive, payable on the fifth day after demand by
                  the Company (together with interest at the rate provided in
                  Section 1274(b)(2)(B) of the Code). If more than one Gross-up
                  Payment is made, the amount of each Gross-up Payment shall be
                  computed so as not to duplicate any prior Gross-up Payment.

                           Executive shall notify the Company in writing of any
                  claim by the Internal Revenue Service that, if successful,
                  would require the payment by the Company of the Gross-up
                  Payment. Such notification shall be given as soon as
                  practicable but no later than ten (10) business days after
                  Executive is informed in writing of such claim and shall
                  apprise the Company of the nature of such claim and the date
                  on which such claim is requested to be paid. Executive shall
                  not pay such claim prior to the expiration of the 30-day
                  period following the date on which it gives such notice to the
                  Company (or such shorter period ending on the date that any
                  payment of taxes with respect to such claim is due). If the
                  Company notifies Executive in writing prior to the expiration
                  of such period that it desires to contest such claim,
                  Executive shall:

                           (i)      give the Company any information reasonably
                                    requested by the Company relating to such
                                    claim;

                           (ii)     take such action in connection with
                                    contesting such claim as the Company shall
                                    reasonably request in writing from time to
                                    time, including, without limitation,
                                    accepting legal representation with respect
                                    to such claim by an attorney reasonably
                                    selected by the Company;

                           (iii)    cooperate with the Company in good faith in
                                    order effectively to contest such claim; and

                           (iv)     permit the Company to participate in any
                                    proceedings relating to such claim;

                                       31

<PAGE>

                  provided, however, that the Company shall bear and pay
                  directly all costs and expenses (including additional interest
                  and penalties) incurred in connection with such contest and
                  shall indemnify and hold Executive harmless, on an after-tax
                  basis, for any Excise Tax or income or employment tax
                  (including interest and penalties with respect thereto)
                  imposed as a result of such representation and payment of
                  costs and expenses. Without limitation on the foregoing
                  provisions of this Section 3(g), the Company shall control all
                  proceedings taken in connection with such contest and, at its
                  sole option, may pursue or forgo any and all administrative
                  appeals, proceedings, hearings and conferences with the taxing
                  authority in respect of such claim and proceedings, hearings
                  and conferences with the taxing authority in respect of such
                  claim and may, at its sole option, either direct Executive to
                  pay the tax claimed and sue for a refund or contest the claim
                  in any permissible manner, and Executive agrees to prosecute
                  such contest to a determination before any administrative
                  tribunal, in a court of initial jurisdiction and in one or
                  more appellate courts, as the Company shall determine;
                  provided, however, that if the Company directs Executive to
                  pay such claim and sue for a refund, the Company shall advance
                  the amount of such payment to Executive, on an interest-free
                  basis, and shall indemnify and hold Executive harmless, on an
                  after-tax basis, from any Excise Tax or income or employment
                  (including income or employment or interest or penalties with
                  respect thereto) imposed with respect to such advance or with
                  respect to any imputed income with respect to such advance;
                  and further provided that any extension of the statute of
                  limitations relating to payment of taxes for the taxable year
                  of Executive with respect to which such contested amount is
                  claimed to be due is limited solely to such contested amount.
                  Furthermore, the Company's control of the contest shall be
                  limited to issues with respect to which a Gross-up Payment
                  would be payable hereunder and the Executive shall be entitled
                  to settle or contest, as the case may be, any other issue
                  raised by the Internal Revenue Service or any other taxing
                  authority. If, after the receipt by Executive of an amount
                  advanced by the Company pursuant to this Section 3(g),
                  Executive becomes entitled to receive any refund with respect
                  to such claim, Executive shall (subject to the Company's
                  complying with the requirements of this Section 3(g)) promptly
                  pay to the Company the amount of such refund (together with
                  any interest paid or credited thereon after taxes applicable
                  thereto). If, after the receipt by Executive of an amount
                  advanced by the Company pursuant to this Section 3(g), a
                  determination is made that Executive shall not be entitled to
                  any refund with respect to such claim and the Company does not
                  notify Executive in writing of its intent to contest such
                  denial of refund prior to the expiration of thirty (30) days
                  after such determination, then such advance shall be forgiven
                  and shall not be required to be repaid and the amount of such
                  advance shall offset, to the extent thereof, the amount of
                  Gross-up Payment required to be paid.

4. FRINGE BENEFITS.

         (a) During the Employment Term, Executive shall be entitled to
participate in all health insurance and retirement benefit programs normally
available to other executives of the Company holding positions similar to that
of Executive hereunder (subject to all applicable eligibility rules thereof), as
from time to time in effect. Executive shall also receive the benefits listed on
Exhibit A hereto.

         (b) Executive shall be entitled to paid vacation according to the
normal vacation schedule for other executive employees. Executive shall make
good faith efforts to schedule such vacations so as to least conflict with the
conduct of the Company's business and shall give the Company adequate advance
notice of her planned absences. Accumulated, unused vacation time for Executives
of the Corporation is not vested and will not be paid to Executive either while
employed or upon termination of employment.

                                       32

<PAGE>

         (c) The Company shall reimburse Executive for all business-related
expenses incurred by Executive at the Company's direction. Executive shall
submit to the Company expense reports in compliance with established Company
guidelines.

5. INVENTIONS. Executive agrees, on behalf of herself, her heirs and personal
representatives, that she will promptly communicate, disclose and transfer to
the Company free of all encumbrances and restrictions (and will execute and
deliver any papers and take any action at any time deemed necessary by the
Company to further establish such transfer) all inventions and improvements
relating to Company's business originated or developed by Executive solely or
jointly with others during the term of her employment hereunder. Such inventions
and improvements shall belong to the Company whether or not they are patentable
and whether or not patent applications are filed thereon. Such transfer shall
include all patent rights (if any) to such inventions or improvements in the
United States and in all foreign countries. Executive further agrees, at the
request of Company, to execute and deliver, at any time during the term of her
employment hereunder or after termination thereof, all assignments and other
lawful papers (which will be prepared at the Company's expense) relating to any
aspect of the prosecution of such patent applications and rights in the United
States and foreign countries.

6. EXPOSURE TO PROPRIETARY INFORMATION.

         (a) Executive acknowledges and agrees that during the course of her
employment by Company, she will be in continuous contact with customers,
suppliers and others doing business with the Company throughout the world.
Executive further acknowledges that the performance of her duties hereunder will
expose her to data and information concerning the business and affairs of the
Company, including but not limited to information relative to the Company's
proprietary rights and technology, patents, financial statements, sales
programs, pricing programs, profitability analyses and profit margin
information, customer buying patterns, needs and inventory levels, supplier
identities and other related matters, and that all of such data and information
(collectively "the Proprietary Information") is vital, sensitive, confidential
and proprietary to Company.

         (b) In recognition of the special nature of her employment hereunder,
including but not limited to her special access to the Proprietary Information,
and in consideration of her employment, Executive agrees to the covenants and
restrictions set forth in paragraphs 7 through 9 inclusive hereof. As used in
this Agreement, the term "Company" shall include, where applicable, any parent,
subsidiary, sub-subsidiary, or affiliate of Company.

7. USE OF PROPRIETARY INFORMATION. Executive acknowledges that the Proprietary
Information constitutes a protectible business interest of Company, and
covenants and agrees that during the term of her employment hereunder and after
the termination of such employment, she shall not, directly or indirectly,
whether individually, as a director, stockholder, owner, partner, employee or
agent of any business, or in any other capacity, make known, disclose, furnish,
make available or utilize any of the Proprietary Information, other than in the
proper performance of her duties during the term of her employment hereunder.
Executive's obligations under this paragraph with respect to particular
Proprietary Information shall terminate only at such time (if any) as the
Proprietary Information in question becomes generally known to the public other
than through a breach of Executive's obligations hereunder.

8. RESTRICTION AGAINST COMPETITION AND EMPLOYING OR SOLICITING COMPANY
EMPLOYEES, CUSTOMERS OR SUPPLIERS. Executive covenants and agrees that during
the term hereof and for the one (1) year period immediately following the
effective date of any termination of her employment hereunder (the "Termination
Date"), he shall not, directly or indirectly, whether individually, as a
director, stockholder, partner, owner, employee or agent of any business, or in
any other capacity, (i) engage in a business substantially similar to that which
is conducted by the Company in any market area in which such business is
operated; (ii) solicit any party who is or was a customer or supplier of the
Company on the Termination Date or at any time during the six month period
immediately prior thereto for the sale or purchase of any type or quantity of

                                       33

<PAGE>

products sold by or used in the business of the Company on the Termination Date
or at any time within such six month period; or (iii) solicit for employment any
person who was or is an employee of the Company on the Termination Date or at
any time during the twelve month period immediately prior thereto.

9. RETURN OF COMPANY MATERIALS UPON TERMINATION. Executive acknowledges that all
price lists, sales manuals, catalogs, binders, customer lists and other customer
information, supplier lists, financial information, and other records or
documents containing Proprietary Information prepared by Executive or coming
into her possession by virtue of her employment by the Company is and shall
remain the property of the Company and that upon termination of her employment
hereunder, Executive shall return immediately to the Company all such items in
her possession, together with all copies thereof.

10. EQUITABLE REMEDIES.

         (a) Executive acknowledges and agrees that the covenants set forth in
paragraphs 5 through 9 inclusive hereof are reasonable and necessary for the
protection of the Company's business interests, that irreparable injury will
result to the Company if Executive breaches any of the terms of said covenants,
and that in the event of Executive's actual or threatened breach of any such
covenants, the Company will have no adequate remedy at law. Executive
accordingly agrees that in the event of any actual or threatened breach by her
of any of said covenants, the Company shall be entitled to immediate injunctive
and other equitable relief, without bond and without the necessity of showing
actual monetary damages. Nothing contained herein shall be construed as
prohibiting the Company from pursuing any other remedies available to it for
such breach or threatened breach, including the recovery of any damages which it
is able to prove.

         (b) Each of the covenants in paragraphs 5 through 9 inclusive hereof
shall be construed as independent of any other covenants or other provisions of
this Agreement.

         (c) In the event of any judicial determination that any of the
covenants set forth in paragraphs 5 through 9 inclusive hereof is not fully
enforceable, it is the intention and desire of the parties that the court treat
said covenants as having been modified to the extent deemed necessary by the
court to render them reasonable and enforceable, and that the court enforce them
to such extent.

11. LIFE INSURANCE. The Company may at its discretion and at any time apply for
and procure as owner and for its own benefit and at its own expense, insurance
on the life of Executive in such amounts and in such form or forms as the
Company may choose. Executive shall cooperate with the Company in procuring such
insurance and shall, at the request of Company, submit to such medical
examinations, supply such information and execute such documents as may be
required by the insurance company or companies to whom the Company has applied
for such insurance. Executive shall have no interest whatsoever in any such
policy or policies, except that, upon the termination of Executive's employment
hereunder, Executive shall have the privilege of purchasing any such insurance
from the Company for an amount equal to the actual premiums thereon previously
paid by Company.

12. NOTICES. Any notice required or permitted pursuant to the provisions of this
Agreement shall be deemed to have been properly given if in writing and when
sent by United States mail, certified or registered, postage prepaid, when sent
by facsimile or when personally delivered, addressed as follows:

                                       34

<PAGE>

                  If to Company:

                           Kensey Nash Corporation
                           Marsh Creek Corporate Center
                           55 East Uwchlan Avenue, Suite 204
                           Exton, Pennsylvania  19341
                           Attention: Joseph Kaufmann

                  With a copy to:

                           Katten Muchin & Zavis
                           525 West Monroe Street
                           Suite 1600
                           Chicago, Illinois 60661-3693
                           Attention: David R. Shevitz, Esq.

                  If to Executive:

                           Wendy F. DiCicco
                           205 Roberts Road
                           Ardmore, PA  19003

         Each party shall be entitled to specify a different address for the
receipt of subsequent notices by giving written notice thereof to the other
party in accordance with this paragraph.

13. WAIVER OF BREACHES. No waiver of any breach of any of the terms, provisions
or conditions of this Agreement shall be construed or held to be a waiver of any
other breach, or a waiver of, acquiescence in or consent to any further or
succeeding breach thereof.

14. ASSIGNMENT. This Agreement shall not be assignable by either party without
the written consent of the other; provided, however, that this Agreement shall
be assignable to any corporation or entity which purchases the assets of or
succeeds to the business of the Company (a "Successor Employer"), and the
Company agrees to cause this Agreement to be assumed by any Successor Employer
as a condition to such purchase or succession. Subject to the foregoing, this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective heirs, personal representatives, successors and assigns.

15. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with laws and judicial decisions of the Commonwealth of Pennsylvania.

16. SEVERABILITY. If any term or provision of this Agreement shall be held to be
invalid or unenforceable, the remaining terms and provisions hereof shall not be
affected thereby.

17. MISCELLANEOUS. Paragraph headings herein are for convenience only and shall
not affect the meaning or interpretation of the contents hereof. This Agreement
contains the entire agreement between the parties hereto with respect to the
subject matter hereof and supersedes all prior agreements and understandings
between the parties and all prior obligations of the Company with respect to the
employment of Executive by the Company or the payment to Executive of
compensation of any kind whatsoever. No supplement or modification of this
Agreement shall be binding unless in writing and signed by both parties hereto.
This agreement may be executed in multiple counterparts, each of which shall be
deemed enforceable without production of the others.

                                       35

<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed as of the date first hereinabove set forth.

                                       /s/ Wendy F. DiCicco, CPA
                                       -----------------------------------------
                                       Wendy F. DiCicco

                                       KENSEY NASH CORPORATION

                                       By: /s/ Joseph W. Kaufman
                                          --------------------------------------
                                       Title: Chief Executive Officer
                                              ----------------------------------

                                       36

<PAGE>

                                                                       Exhibit A

                                    BENEFITS

Health/prescription, dental, and vision insurance equal to that provided for all
other full-time exempt Kensey Nash Corporation employees.

Life insurance in the amount of $50,000

Short term disability insurance equal to that provided for all other full-time
exempt Kensey Nash Corporation employees.

Long term disability benefits at 40% of salary

Supplemental long term disability insurance

Three weeks annual vacation accrued at 10 hours per month. Accumulated, unused
vacation time for Executives of the Corporation is not vested and will not be
paid to Executive either while employed or upon termination of employment.

Six days annual personal leave

Eleven holidays each year

401K Plan

Employee Incentive Compensation Plan

                                       37

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00061-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00061-of-00352.parquet"}]]