Document:

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                                                                    EXHIBIT 10.5

                              EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT ("Agreement"), is made and entered into as of
the 1st day of September, 2001, 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 him/her. Executive agrees diligently and faithfully to serve the
   Company and to devote his/her best efforts, his/her full business time and
   his/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 $119,103 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

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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 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 his 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 his 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.

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     (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 his 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 his 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
his termination of employment (which payments shall include, without limitation,
the vesting of an option or other non-cash benefit 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:

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                    (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 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

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          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;

          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),

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          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

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Company adequate advance notice of his planned absences. Accumulated, unused
vacation time for Officers of the Corporation is not vested and will not be paid
to Executive either while employed or upon termination of employment.

         (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 himself, his heirs and personal
representatives, that he 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 his 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 his
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 his
employment by Company, he 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 his duties hereunder will
expose him 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 his employment hereunder,
including but not limited to his special access to the Proprietary Information,
and in consideration of his 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 his employment hereunder and after
the termination of such employment, he 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 his

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duties during the term of his 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 his 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
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 his possession by virtue of his employment by the Company is and shall
remain the property of the Company and that upon termination of his employment
hereunder, Executive shall return immediately to the Company all such items in
his 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 him
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

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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:

                  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

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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 State 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.

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

                              -----------------------------------
                              Wendy F. DiCicco

                              KENSEY NASH CORPORATION

                              By:
                                 --------------------------------
                              Title:
                                    -----------------------------

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                                    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 Officers 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

                                      -11-<PAGE>   1
                                                                    EXHIBIT 10.7

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT ("Agreement"), is made and entered into as of
the 1st day of July, 2001, by and between Kensey Nash Corporation, a Delaware
corporation (the "Company"), and Douglas G. Evans (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 Operating Officer and shall,
subject to the direction and supervision of the Company's of 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 him. Executive agrees
diligently and faithfully to serve the Company and to devote his best efforts,
his full business time and his 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 employment, pay
or cause to be paid to Executive a base salary at the rate of $200,000 per
annum. 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 three (3) 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

<PAGE>   2

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 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 his 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 his 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.

                                      -2-
<PAGE>   3

         (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 two (2) years, 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 his employment on substantially the same terms as set forth
herein for at least two (2) years, 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 twelve (12) 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 his 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 his termination of employment (which payments shall include, without
limitation, the vesting of an option or other non-cash benefit 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

                                      -3-
<PAGE>   4

                        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 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

                                      -4-
<PAGE>   5

                  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;

                  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

                                      -5-
<PAGE>   6

                  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 his planned absences.

                                      -6-
<PAGE>   7

         (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 himself, his heirs and personal
representatives, that he 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 his 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 his
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 his
employment by Company, he 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 his duties hereunder will
expose him 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 his employment hereunder,
including but not limited to his special access to the Proprietary Information,
and in consideration of his 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 his employment hereunder and after
the termination of such employment, he 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 his duties during the term of his 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.

                                      -7-
<PAGE>   8

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 his 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
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 his possession by virtue of his employment by the Company is and shall
remain the property of the Company and that upon termination of his employment
hereunder, Executive shall return immediately to the Company all such items in
his 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 him
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

                                      -8-
<PAGE>   9

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:

                  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:

                           Douglas G. Evans
                           202 Foxtail Lane
                           Dowington, PA  19335

         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

                                      -9-
<PAGE>   10

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 State 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.

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

                                             -----------------------------------
                                             Douglas G. Evans

                                             KENSEY NASH CORPORATION

                                             By:
                                                --------------------------------
                                             Title:
                                                   -----------------------------

                                      -10-
<PAGE>   11

                                    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 benefits

Three weeks annual vacation

Six days annual personal leave

Eleven holidays each year

401K Plan

Employee Incentive Compensation Plan

                                      -11-

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