Document:

Exhibit 10.l

                                    AGREEMENT

AGREEMENT  made and entered  into this the 24th day of February,  2002,  between
ATRION CORPORATION,  a Delaware corporation (the "Company") and EMILE A. BATTAT,
a resident of the State of Connecticut ("Battat").

                                R E C I T A L S:

WHEREAS,  in 1999 the Company adopted an Incentive  Compensation  Plan for Chief
Executive  Officer  (the  "Plan")  for the purpose of  securing  the  continuing
services of Battat as Chief  Executive  Officer of the Company and to provide an
opportunity for Battat to receive incentive compensation tied to the enhancement
of shareholder value;

WHEREAS,  the  financial  reporting  for the Plan would be  different  than that
anticipated by the Company at the time of its adoption;

WHEREAS,  in light of such  difference in financial  reporting for the Plan, the
Company  and  Battat  desire  that  neither  party  hereto  have any  rights  or
obligations in or under the Plan; and

WHEREAS, the Board of Directors of the Company has approved nullification of the
Plan, subject to Battat's release of all of his rights under the Plan, including
any  benefits  and  payments  that he may now or in the  future be  entitled  to
thereunder.

NOW,  THEREFORE,  in  consideration  of the Company's  payment of Ten and 00/100
Dollars ($10.00) to Battat, receipt of which is hereby acknowledged,  and of the
premises,  mutual covenants,  and releases  contained herein, the parties hereby
agree as follows:

1. Nullification and Release. The Company and Battat hereby agree that effective
December 31, 2001 the Plan is null and void and is of no further force or effect
and that  neither  party  shall have any rights or  obligations  under the Plan.
Battat  hereby  relinquishes  all of his rights  under the Plan,  including  any
benefits or payments that he may now or in the future be entitled to thereunder,
and he hereby  releases,  acquits,  and  discharges  forever  the  Company,  its
subsidiaries  and  their  respective  past  and  present  officers,   directors,
shareholders,  agents, servants, employees, attorneys,  affiliates,  successors,
and assigns of and from any and all claims, demands,  actions, causes of action,
suits, and liabilities of every kind, character, and description,  either direct
or consequential, past, present or future, and whether known or unknown, at law,
in  equity,  or  otherwise,  arising  out  of or  related  to  the  Plan  or the
nullification thereof.

2.  Arbitration.  Any claim or  controversy  arising  out of or relating to this
Agreement  shall be  settled  by  binding  arbitration  in  accordance  with the
Commercial Arbitration Rules of the American Arbitration  Association as then in
effect, and judgment upon the award rendered by the arbitrator(s) may be entered
in any court having jurisdiction thereof.

3. Binding Effect. This Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective heirs, successors,  assigns and legal
representatives.

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4.  Construction.  The parties  hereto  acknowledge  that the Agreement has been
jointly  negotiated  and  drafted.  The  language  of this  Agreement  shall  be
construed  as a whole  according  to its fair  meaning,  and not strictly for or
against either of the parties. This Agreement shall be governed by and construed
in accordance  with the laws of the State of Delaware,  applied  without  giving
effect to conflict-of-laws principles. The invalidity or unenforceability of any
particular  provision of this  Agreement  shall not affect the other  provisions
hereof, and this Agreement shall be construed in all respects as if such invalid
or unenforceable provision were omitted.

5. Counterparts. This Agreement may be executed in separate counterparts each of
which  shall be an  original  and all of which shall be deemed to be one and the
same instrument.

6.  Agreement  Under Seal. The parties hereto intend for this Agreement to be an
instrument under seal.

7. Entire Agreement. This Agreement contains the entire agreement of the parties
with respect to the subject matter hereof.

IN WITNESS  WHEREOF,  each of the parties has  hereunto  set its or his hand and
seal on the date first above written.

                                                   ATRION CORPORATION (SEAL)

                                                   By:/s/ Jeffery Strickland
                                                   -----------------------------
                                                   Vice President and Chief
                                                   Financial Officer, Secretary
                                                   and Treasurer

                                                   /s/ Emile A. Battat    (SEAL)
                                                   -----------------------------
                                                   EMILE A. BATTAT

                                     - 59 -Exhibit 10m

                              EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT  AGREEMENT (this "Agreement") is entered into as of the 1st
day  of  January,   2002,  (the  "Commencement  Date")  by  and  between  Atrion
Corporation,  a Delaware  corporation (the "Company"),  and Emile A. Battat (the
"Executive").

                              W I T N E S S E T H:
                               - - - - - - - - - -

WHEREAS,  the Executive  currently is employed by the Company as the Chairman of
the Board of  Directors of the Company (the  "Board") and as its  President  and
Chief Executive Officer;

WHEREAS,  the  Company and the  Executive  desire to  continue  the  Executive's
employment by the Company upon the terms and conditions hereinafter set forth.

NOW,  THEREFORE,  in  consideration  of the  foregoing,  the  mutual  provisions
contained  herein,  and for other good and valuable  consideration,  the parties
hereto agree as follows:

1.   EMPLOYMENT.

     (a)  Continuation  of Employment.  The Company hereby agrees to continue to
employ the Executive and the Executive  hereby accepts  continued  employment as
the  Company's  Chairman  of the  Board  ("Chairman")  and  President  and Chief
Executive  Officer  on the terms  and  conditions  hereinafter  set  forth.  The
Executive shall perform such duties, and have such powers, authority, functions,
and  responsibilities  (commensurate  with his  position  and title),  as may be
reasonably  assigned to him from time to time by the Board which are not (except
with the Executive's  prior written consent)  inconsistent with and which do not
interfere  with or  detract  from  those  vested  in or being  performed  by the
Executive for the Company.

     (b) Duties.  During the Employment Term (as defined  below),  the Executive
shall  devote  such time and effort as is  reasonably  necessary  to perform his
duties and  responsibilities  as  Chairman  and  President  and Chief  Executive
Officer of the Company;  provided,  however that the Executive shall be allowed,
to the  extent  that  such  activities  do not  materially  interfere  with  the
performance of his duties and responsibilities hereunder, to manage his personal
financial affairs and to serve on corporate, civic,  not-for-profit,  charitable
industry boards and advisory committees.

2.   TERM. The initial term of the Executive's  employment  under this Agreement
shall be for period of five (5) years from the  Commencement  Date (the "Initial
Term").  The term of the  Executive's  employment  under this Agreement shall be
automatically  renewed for additional one (1) year terms (each referred to as an
"Additional  Term")  at the  end of the  Initial  Term

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and at the end of each Additional  Term, as the case may be, unless either party
delivers  written  notice of  termination to the other at least thirty (30) days
prior to the end of the Initial Term or Additional Term, as the case may be. The
Initial  Term and the  Additional  Terms  shall be  referred  to  herein  as the
"Employment Term."

3.   COMPENSATION. The Company shall pay the Executive the following, subject to
withholding and other applicable employment taxes:

     (c) Base Salary and  Bonuses.  The Company  shall pay the  Executive a base
salary  (the  "Base  Salary")  of  Five  Hundred  Thousand  and  no/100  Dollars
($500,000.00)  for  calendar  year  2002,  and  for  each  calendar  year in the
Employment  Term after 2002 the Base Salary shall be increased by twelve percent
(12%) over the Base Salary for the preceding calendar year.

     In addition to the Base Salary,  the Company shall pay the Executive a cash
bonus (the "Annual Bonus") for each calendar year in the Employment Term in such
amount as the Board may determine but in no event less than, or in the event the
Board makes no such  determination in an amount equal to, fifty percent (50%) of
the Base Salary for such calendar year.

     The Base Salary shall be payable in intervals consistent with the Company's
normal payroll  schedules (but in no event less  frequently  than monthly).  The
Base Salary,  as in effect from time to time,  may be increased  but not reduced
without the written consent of the Executive. The Annual Bonus for each calendar
year in the  Employment  Term shall be payable  during the  January  immediately
following the end of such calendar year.

     In addition to the Base Salary and the Annual Bonus,  the Company shall pay
the Executive such other incentive  compensation as the Company may from time to
time determine.

     (d)  Benefits  and  Expenses.   The  Executive  shall  have  the  right  to
participate  in the  employee  benefit  plans,  insurance  contracts,  policies,
arrangements  or  agreements  maintained  by the  Company for the benefit of its
employees and relating to  retirement,  health,  disability  and other  employee
benefits,  subject to the Executive's  qualification  for  participation in such
benefit  plans  pursuant to the terms and  conditions  under which such  benefit
plans are offered,  at a level commensurate with the Executive's  position.  The
Executive's  rights and entitlements  with respect to any such benefits shall be
subject to the  provisions  of the  relevant  agreements,  contracts,  policies,
arrangements or plans providing such benefits. Nothing contained herein shall be
deemed to impose any  obligation  on the Company to adopt or  maintain  any such
plans, policies,  arrangements,  contracts or agreements. In accordance with its
policies and  procedures,  the Company  shall pay or reimburse the Executive for
all reasonable or necessary travel and other out-of-pocket  expenses incurred by
the Executive in performing his obligations under this Agreement.  The Executive
shall comply with all such policies and  procedures  applicable to the Company's
senior  executive  employees  relating to the nature and extent of  reimbursable
expenses,  the manner of accounting  therefor and the manner or reimbursement of
same. The Company shall also furnish the Executive with such office and clerical
assistance  as shall be suitable to the  character of the  Executive's  position
with the Company and adequate for the performance of his duties hereunder.

     (e) Vacation and Holidays. The Executive shall be entitled to such vacation
with

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pay during each fiscal year of the Company as determined by the Company,  but in
no event less than four (4) weeks per year,  such  vacation  to be taken at such
time or times as shall be approved by the Company,  which  approval shall not be
unreasonably  withheld.  In addition,  the  Executive  shall be entitled to such
holidays with pay as the Company makes  available to its other senior  executive
employees.  Unless otherwise agreed between the parties, unused days of vacation
and unused  holidays may not be carried over from one fiscal year of the Company
to another.

4.   TERMINATION.

     (f) Termination by the Company. The Company may terminate the employment of
the  Executive  prior to the  expiration  of the  Employment  Term (i) for "just
cause" (as defined  below) by delivering  written  notice of  termination to the
Executive or (ii) without  "just cause" upon thirty (30) days written  notice of
termination to the Executive.

     (g)  Termination  by Executive.  The Executive may terminate his employment
under this Agreement  prior to the  expiration of Employment  Term (i) for "good
reason" (as  defined  below) by written  notice to the  Company or (ii)  without
"good  reason" by giving the  Company  thirty  (30) days  written  notice of his
intention to terminate such employment.

     (h) Termination Upon Death or Disability.  The Executive's employment shall
terminate  immediately  upon his death. In the event that the Executive  becomes
subject to a Disability (as defined below),  the  Executive's  employment may be
terminated upon thirty (30) days written notice by either party to the other.

     (i) Definitions.  For purposes of this Agreement, the following terms shall
have the respective meanings indicated below:

          (i) Just Cause.  The term "just cause" shall mean (A) the  Executive's
     continuing  willful  failure to perform his material duties and obligations
     under this  Agreement  (except by reason of his death or incapacity  due to
     his  Disability)  after  written  notice  thereof  by  the  Company  to the
     Executive,  and the  Executive's  failure or refusal to perform such duties
     and obligations within thirty (30) days after the receipt of such notice by
     the Executive or (B) the  conviction  of, or the entering of a plea of nolo
     contendere  by, the  Executive  with  respect to a felony  (other than as a
     result  of a traffic  violation  or as a result  of  vicarious  liability),
     provided  that on or after a Change in  Control  (as  defined  in Exhibit A
     hereto),  "just cause" shall be limited to only  subsection (B) above.  For
     purposes of this Section 4(d)(i), no act, or failure to act, on Executive's
     part shall be considered  "willful"  unless done, or omitted to be done, by
     him not in good  faith and  without  reasonable  belief  that his action or
     omission was in the best interests of the Company.  The Company must assert
     a "just  cause"  termination  event no later  than  ninety  (90) days after
     discovery of such event.

          The date of  termination  for a termination  for "just cause" shall be
     the date  indicated in the Notice of  Termination  (as defined  herein).  A
     "Notice of  Termination"  for "just  cause"  shall mean a notice that shall
     indicate the specific termination  provision in Section 4(d)(i) relied upon
     and shall set forth in reasonable detail the facts and circumstances  which
     provide for a basis for termination for "just cause." Further, a Notice for
     Termination  for "just  cause"  shall be  required  to  include a copy of a
     resolution  duly  adopted  by at  least  two-thirds  (2/3)  of  the  entire
     membership  of the

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     Board at a  meeting  of the Board  which  was  called  for the  purpose  of
     considering such termination and which Executive and his representative had
     the right to attend and address the Board,  finding that, in the good faith
     of the Board,  Executive  engaged in conduct set forth in the definition of
     "just cause" herein and  specifying the  particulars  thereof in reasonable
     detail.  Any  purported  termination  for "just  cause" which is held by an
     arbitrator  not to  have  been  based  on the  grounds  set  forth  in this
     Agreement  or not to  have  followed  the  procedures  set  forth  in  this
     Agreement  shall be  deemed a  termination  by the  Company  without  "just
     cause."

          (ii) Good Reason. The term "good reason" shall mean any one or more of
     the following:

               (A)  Without  the  Executive's   express  written  consent,   any
          diminution in the Executive's titles, authorities, responsibilities or
          the  assignment of the Executive to any duties  inconsistent  with his
          position, duties,  responsibilities and status with the Company as its
          Chairman,  President and Chief Executive Officer or the removal by the
          Board,  or the  failure  or  refusal  of the  Board to  re-elect,  the
          Executive as the Chairman,  President and Chief  Executive  Officer of
          the  Company  at any  time  during  the  term of this  Agreement.  For
          purposes hereof, a "diminution in the Executive's titles,  authorities
          or  responsibilities"  shall be deemed to have occurred if the Company
          is no longer  required  to file  reports  pursuant  to  Section  13 or
          Section 15(d) of the Securities Exchange Act of 1934, as amended.

               (B) The Company's  breach of any  provision of this  Agreement or
          any other agreement between the Company and the Executive and failure,
          within the ten (10) day period following its receipt of written notice
          from the Executive  describing  such breach in reasonable  detail,  to
          promptly  commence  in good faith to cure such  breach  (if  curable);
          provided  that such cure must be  effected  no later than  thirty (30)
          days following  such notice and provided  further that such cure right
          shall not be  available  on more than one  occasion in any twelve (12)
          month period.

               (C)  Adoption  by a majority  of the Board of any  resolution  or
          series of related resolutions that, individually or collectively,  has
          or could  reasonably  be  expected  to have a  material  effect on the
          strategic  direction,  operations,  financial  condition or results of
          operations  of the Company and that is voted  against by the Executive
          in a good  faith  exercise  of his  fiduciary  duty or the  failure or
          refusal of a majority of the Board to adopt a proposed  resolution  or
          series of related resolutions that, individually or collectively,  has
          or could  reasonably  have been expected to have a material  effect on
          the strategic direction, operations, financial condition or results of
          operations of the Company and that the Executive proposed, by a motion
          or series of  motions  (whether  or not  seconded),  be adopted by the
          Board in a good faith exercise of his fiduciary duty.

               (D) Failure of the Company to obtain the assumption in writing (a
          copy  of  which  is  delivered  to the  Executive)  of  the  Company's
          obligations hereunder to the Executive by any successor to the Company
          prior  to or at the  time  of a  merger,  acquisition,  consolidation,
          disposition of substantially all of the

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          assets of the Company or similar transaction.

     The Executive must assert a "good reason"  termination  event no later than
     ninety (90) days after the Executive discovers such event.

               (iii) Disability. The Executive shall be considered to be subject
          to a  "Disability"  if, as a result of physical or mental  sickness or
          incapacity or accident,  the Executive is unable to perform the normal
          duties of his employment  with the Company for a period of ninety (90)
          days in any one  hundred  twenty  (120)  day  period.  If there is any
          disagreement  between the Company and the  Executive as to whether the
          Executive  was unable to perform the normal  duties of his  employment
          due to Disability,  the same shall be determined after  examination of
          the  Executive by a physician  selected by the  Executive  (or, if the
          Executive  is unable to make such  selection,  it shall be made by the
          Executive's  spouse  or, if the  Executive  is not  married  or if his
          spouse is  unable or  unwilling  to make the  selection,  by any other
          adult member of the Executive's  immediate family) and approved by the
          Company.  The costs and expenses of such examination shall be borne by
          the Company.  The  determination of such physician shall be conclusive
          evidence as to whether the  Executive was unable to perform the normal
          duties of his employment due to Disability.  If the Executive does not
          permit such examination by such physician,  then, for purposes hereof,
          the  determination  as to whether the  Executive was unable to perform
          the normal duties of his employment due to Disability shall be made by
          the Board.  Nothing herein shall have any effect upon the  Executive's
          eligibility  to  receive  any  disability  benefits  from the  Company
          pursuant to the terms and conditions of any  disability  plan or other
          arrangement which the Company may have in effect from time to time.

     (j)  Termination Payment.

               (i)  Termination  for  Just  Cause.  In  the  event  the  Company
          terminates the Executive's  employment  pursuant to Section 4(a)(i) of
          this Agreement, the Company shall have no further obligation hereunder
          except to pay the Executive any compensation  earned but not yet paid,
          including without limitation, the Base Salary and Annual Bonus for the
          calendar  year in which the date of  termination  falls,  in each case
          prorated  for the  number of days of the  calendar  year that  elapsed
          prior to the date of  termination,  any accrued  vacation  pay payable
          pursuant to the  Company's  policies,  and any  unreimbursed  business
          expenses (collectively the "Accrued Amounts").

               (ii)  Termination  Without  Just Cause.  In the event the Company
          terminates Executive's employment pursuant to Section 4(a)(ii) of this
          Agreement,  the  Executive's  employment  under this  Agreement  shall
          terminate at the  expiration  of said thirty (30) day period,  and the
          Company shall have no further  obligation  hereunder  except to pay to
          the Executive a cash lump sum amount equal to the sum of:

               (A)  the Accrued Amounts; and

               (B)  the  Executive's  Base  Salary  and  Annual  Bonus  for  the
                    remainder  of  the  Initial  Term  or  Additional  Term,  as
                    applicable (collectively, the "Severance Payment");

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                    which  sum  shall  be  paid  by  the   Company  as  soon  as
                    practicable  after  the  termination  date,  but in no event
                    later  than ten  (10)  days  after  the  termination  of the
                    Executive's  employment.  Notwithstanding the foregoing,  in
                    the  event the  Company  terminates  Executive's  employment
                    pursuant  to  Section  4(a)(ii),  the  Company  may,  at its
                    option,  require the Executive to cease  providing  services
                    hereunder  and  serving as an employee of the Company at any
                    time during said thirty (30) day period.  In  addition,  all
                    stock options and/or equity  granted to the Executive  shall
                    fully vest and become exercisable upon the termination date.
                    The Company shall continue to provide the Executive (and his
                    spouse and  dependents)  with group health plan benefits (or
                    substantially similar substitute arrangements),  at its sole
                    expense, for the remainder of the Initial Term or Additional
                    Term, as applicable (the "Medical Benefits").

               (iii)  Termination  for Good Reason.  In the event the  Executive
          terminates the Executive's  employment  pursuant to Section 4(b)(i) of
          this Agreement, the Company shall have no further obligation hereunder
          except to pay to the  Executive  a cash lump sum equal to the  Accrued
          Amounts and the Severance Payment,  which shall be paid by the Company
          as soon as  practicable  after the  termination  date, but in no event
          later  than ten (10) days  after the  termination  of the  Executive's
          employment.  In addition,  all stock options  and/or equity granted to
          the  Executive  shall  fully  vest  and  become  exercisable  upon the
          termination  date.  The Company shall also provide the Executive  (and
          his spouse and dependents) with the Medical Benefits for the remainder
          of the Initial Term or Additional Term, as applicable.

               (iv) Termination  Without Good Reason. In the event the Executive
          terminates the Executive's  employment pursuant to Section 4(b)(ii) of
          this Agreement,  the Executive's employment under this Agreement shall
          terminate at the  expiration  of said thirty (30) day period,  and the
          Company shall have no further  obligation  hereunder except to pay the
          Executive  a cash lump sum  equal to the  Accrued  Amounts  as soon as
          practicable after the termination date, but in no event later than ten
          (10)  days   after  the   termination   of   Executive's   employment.
          Notwithstanding the foregoing,  in the event the Executive  terminates
          his employment  pursuant to Section 4(b)(ii),  the Company may, at its
          option,  require the Executive to cease providing  services  hereunder
          and  serving as an  employee  of the  Company at any time  during said
          thirty (30) day period;  provided that the Executive shall be entitled
          to such  payments  as  would  have  otherwise  been  due to him had he
          continued  in the  employment  of the Company for such thirty (30) day
          period, including, without limitation, payments of the Accrued Amounts
          and amounts to be paid under any other plan, agreement or policy which
          survives the termination of this Agreement.

               (v)  Termination  upon  Death or  Disability.  In the  event  the
          Executive's  employment is terminated pursuant to Section 4(c) hereof,
          the Company shall have no further  obligation  hereunder except to pay
          to the Executive (or his personal  representative  or guardian) a cash
          lump  sum  amount  equal  to the  Accrued  Amounts  and the  Severance
          Payment,  which  shall be paid by the  Company as soon as  practicable
          after the  termination  date, but in no event later than ten (10) days
          after the termination of the Executive's employment.  In addition, all
          stock options and/or equity granted to the Executive  shall fully vest
          and become  exercisable  upon the termination  date. The Company shall
          also provide the Executive  (and his spouse and  dependents)  with the
          Medical  Benefits for the  remainder of the Initial Term or Additional
          Term, as applicable.

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5.   WITHHOLDING.  The Company  shall be entitled to withhold from amounts to be
paid to the Executive  hereunder any federal,  state,  or local  withholding  or
other  taxes or  charges  which it is from time to time  required  to  withhold;
provided,  that the  amount so  withheld  shall not exceed  the  minimum  amount
required to be withheld by law in light of the circumstances.  The Company shall
be  entitled  to rely on an opinion of tax  counsel  if any  question  as to the
amount or requirement of any such withholding shall arise.

6.   NOTICES. All notices provided for by this Agreement shall be in writing and
shall  be (a)  personally  delivered  to the  party  thereunto  entitled  or (b)
deposited in the United States mail, postage prepaid,  addressed to the party to
be notified at the address  listed  below (or at such other  address as may have
been designated by written notice), certified or registered mail, return receipt
requested.  The  notice  shall  be  deemed  to be  received  (a) if by  personal
delivery, on the date of its actual receipt by the party entitled thereto or (b)
if by mail,  two (2) days  following  the date of deposit  in the United  States
mail.

                            To the Company:  Atrion Corporation
                                             One Allentown Parkway
                                             Allen, TX 75002
                                             Attention: Chief Financial Officer

                            To Executive:    Emile A. Battat
                                             To the most recent address
                                             on file with the Company.

7.   PARTIES  BOUND.  This  Agreement and the rights and  obligations  hereunder
shall be binding  upon and inure to the benefit of the Company,  Executive,  and
their  respective  heirs,  personal  representatives,  successors  and  assigns;
provided,  however,  that  Executive  may not assign  any rights or  obligations
hereunder  without the express written consent of Company.  This Agreement shall
also bind and inure to the benefit of any  successor of the Company by merger or
consolidation,  or any  assignee of all or  substantially  all of the  Company's
properties.

8.   INVALID  PROVISIONS.  If any  provision  of  this  Agreement  is held to be
illegal, invalid, or unenforceable under present or future laws effective during
the term hereof,  such provision shall be fully severable;  this Agreement shall
be  construed  and  enforced  as if  such  illegal,  invalid,  or  unenforceable
provision had never comprised a part hereof; and the remaining provisions hereof
shall  remain in full force and effect and shall not be affected by the illegal,
invalid, or unenforceable provision or by its severance herefrom.

9.   EXCISE TAX GROSS-UP.

     (k)  Payment  of Excise Tax  Amount.  In the event any of the  payments  or
benefits provided to the Executive hereunder or under any other plan,  agreement
or arrangement (the "Company  Payments") will be subject to the tax (the "Excise
Tax")  imposed by Section 4999 of the Internal  Revenue Code of 1986, as amended
(the  "Code") (or any similar tax that may be imposed by any taxing  authority),
the Company shall pay to the Executive at the time specified below an additional
amount  (the  "Gross-up  Payment")  such  that the net  amount  retained  by the
Executive, after the deduction of any Excise Tax on the Company Payments and any
U.S.  federal,  state and local  income or payroll tax on the  Gross-Up  Payment

                                     - 66 -
<PAGE>

provided for herein but before deduction for any federal,  state or local income
or payroll tax on the Company Payments, shall be equal to the Company Payments.

     (l) Applicability of Excise Tax. For purposes of determining whether any of
the Company Payments and Gross-up  Payments  (collectively the "Total Payments")
will be subject to the Excise  Tax and the amount of such  Excise  Tax,  (x) the
Total  Payments shall be treated as "parachute  payments"  within the meaning of
Section  280G(b)(2) of the Code, and all  "parachute  payments" in excess of the
"base amount" (as defined under Section 280G(b)(3) of the Code) shall be treated
as subject to the Excise Tax, to the extent  that,  in the opinion of a national
independent  accounting  firm  designated by the Executive or tax counsel with a
nationally-recognized law firm selected by such accountants (the "Accountants"),
such Total Payments (in whole or in part)  constitute  "parachute  payments," do
not represent reasonable  compensation for services actually rendered within the
meaning of Section  280G(b)(4) of the Code in excess of the "base amount" or are
otherwise  subject to the Excise Tax, and (y) the value of any non-cash benefits
or any deferred  payment or benefit shall be determined  by the  Accountants  in
accordance with the principles of Section 280G of the Code.

     (m) Amount of Gross-Up  Payment.  For purposes of determining the amount of
the Gross-up  Payment,  the Executive shall be deemed to pay U.S. federal income
taxes at the  highest  marginal  rate of U.S.  federal  income  taxation  in the
calendar  year in which the  Gross-up  Payment is to be made and state and local
income taxes at the highest  marginal rate of taxation in the state and locality
of the Executive's  residence for the calendar year in which the Company Payment
is to be made, net of the maximum  reduction in U.S.  federal income taxes which
could be obtained  from  deduction of such state and local taxes if paid in such
year.  In the  event  that the  Excise  Tax is  subsequently  determined  by the
Accountants to be less than the amount taken into account  hereunder at the time
the Gross-up  Payment is made, the Executive shall repay to the Company,  at the
time that the amount of such reduction in Excise Tax is finally determined,  the
portion of the prior Gross-up  Payment  attributable to such reduction (plus the
portion of the Gross-up Payment attributable to the Excise Tax and U.S. federal,
state and local income tax imposed on the portion of the Gross-up  Payment being
repaid by the Executive if such  repayment  results in a reduction in Excise Tax
or a U.S. federal,  state and local income tax deduction),  plus interest on the
amount of such  repayment at the rate provided in Section  1274(b)(2)(B)  of the
Code.  Notwithstanding  the foregoing,  in the event any portion of the Gross-up
Payment to be refunded to the Company has been paid to any U.S.  federal,  state
and local tax authority,  repayment  thereof (and related  amounts) shall not be
required  until  actual  refund or credit of such  portion  has been made to the
Executive,  and  interest  payable to the Company  shall not exceed the interest
received or credited to the  Executive by such tax  authority  for the period it
held such portion.  The Executive and the Company shall  mutually agree upon the
course  of action to be  pursued  (and the  method  of  allocating  the  expense
thereof) if the Executive's claim for refund or credit is denied.

     In the event that the Excise Tax is later  determined by the Accountants or
the Internal  Revenue Service 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 in respect of
such excess (plus any interest or penalties payable with respect to such excess)
at the time that the amount of such excess is finally determined.

                                     - 67 -
<PAGE>

     (n) Time of Payment.  The Gross-up  Payment or portion thereof provided for
in subsection  (c) above shall be paid not later than the  thirtieth  (30th) day
following an event  occurring  which  subjects the  Executive 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 the Executive on such day an estimate, as determined in good faith by the
Accountants,  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),  subject to further payments  pursuant to subsection
(c) hereof,  as soon as the amount thereof can reasonably be determined,  but in
no event  later  than the  ninetieth  day  after  the  occurrence  of the  event
subjecting  the Executive to the Excise Tax. 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 the 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).

     (o) Procedures.  In the event of any controversy  with the Internal Revenue
Service (or other taxing authority) with regard to the Excise Tax, the Executive
shall  permit the  Company to control  issues  related to the Excise Tax (at its
expense),  provided  that such issues do not  potentially  materially  adversely
affect the Executive,  but the Executive shall control any other issues.  In the
event the issues are  interrelated,  the Executive and the Company shall in good
faith cooperate so as not to jeopardize  resolution of either issue,  but if the
parties  cannot  agree the  Executive  shall make the final  determination  with
regard to the issues.  In the event of any conference with any taxing  authority
as to the Excise Tax or associated  income taxes, the Executive shall permit the
representative  of the Company to accompany the Employee,  and the Executive and
the  Executive's  representative  shall  cooperate  with  the  Company  and  its
representative.

     (p)  Costs.  The  Company  shall  be  responsible  for all  charges  of the
Accountant.

     (q) Notices.  The Company and the Executive shall promptly  deliver to each
other  copies  of any  written  communications,  and  summaries  of  any  verbal
communications, with any taxing authority regarding the Excise Tax.

10.  NO MITIGATION; NO SET-OFF.

     (a) No Duty to  Mitigate.  In the event of any  termination  of  employment
hereunder,  Executive shall be under no obligation to seek other  employment and
there shall be no offset against any amounts due Executive  under this Agreement
on account of any  remuneration  attributable to any subsequent  employment that
Executive may obtain.

     (b) Other Payments.  Any amounts or benefits payable to the Executive under
this Agreement  are, in addition to, and are not in lieu of, amounts  payable to
the Executive under any other salary continuation or cash severance  arrangement
of the Company or any other type of agreement  entered into between the parties,
and to the extent paid or provided under any other such arrangement or agreement
shall not be offset from the amounts or benefits  due  hereunder,  except to the
extent expressly provided in such other arrangement or agreement.

11.  ATTORNEYS' FEES AND COSTS.  In the event that it becomes  necessary for the
Executive to seek legal  counsel with regard to a dispute , claim or issue under
this  Agreement

                                     - 68 -
<PAGE>

or the Executive deems it necessary to initiate  arbitration in order to enforce
his rights hereunder,  then the Company shall bear and, upon notification to the
Company by the Executive,  immediately  advance to the Executive all expenses of
such dispute,  claim,  issue or  arbitration,  including the reasonable fees and
expenses  of the  counsel of the  Executive  incurred  in  connection  with such
dispute,  claim, issue or arbitration,  unless an arbitrator determines that the
Executive's  position was  frivolous or otherwise  taken in bad faith,  in which
case an arbitrator may determine  that Executive  shall bear his own legal fees.
Notwithstanding any existing or prior  attorney-client  relationship between the
Company  and the  counsel  selected by the  Executive,  the Company  irrevocably
consents to the Executive's  entering into an attorney-client  relationship with
such counsel,  and in that connection the Company and the Executive agree that a
confidential relationship shall exist between the Executive and such counsel.

12.  ARBITRATION.  All disputes and controversies arising under or in connection
with this Agreement,  shall be settled by arbitration  conducted  before one (1)
arbitrator  sitting in New York, New York, or such other location  agreed by the
parties  hereto,  in accordance  with the National  Rules for the  Resolution of
Employment Disputes of the American Arbitration  Association then in effect. The
determination  of the  arbitrator  shall be final and  binding  on the  parties.
Judgment  may be  entered  on the award of the  arbitrator  in any court  having
proper  jurisdiction.  All expenses of such arbitration,  including the fees and
expenses of the counsel of the  Executive,  shall be borne by the Company unless
the arbitrator  determines that Executive's  position was frivolous or otherwise
taken in bad faith,  in which case the  arbitrator  may determine that Executive
shall bear his own legal fees.

13.  LEGAL FEES. The Company shall pay the Executive's reasonable legal fees and
costs associated with entering into this Agreement.

14.  INDEMNIFICATION. The Company shall indemnify and hold harmless Executive to
the fullest  extent  permitted  under the  Company's  Bylaws as in effect on the
Commencement Date or the date of termination of employment,  if on such date the
Bylaws provide the Executive with greater rights to indemnification,  and to the
fullest  extent  permitted by law for any action or inaction of Executive  while
serving as an officer or director of the Company or, at the  Company's  request,
as an officer or director of any other  entity or as a fiduciary  of any benefit
plan.  The Company  shall  cover the  Executive  under  directors  and  officers
liability insurance both during and, while potential liability exists, after the
Employment  Term (but in no event for a period  which is less than six (6) years
after  termination)  in the same  amount and to the same  extent as the  Company
covers its other officers and directors as of the Commencement  Date or the date
of termination of employment, if on such date the Executive will receive greater
coverage under such insurance.

15.  WAIVERS AND  CONSENTS.  One or more waivers of any breach of any  covenant,
term or  provision  of this  Agreement  by any party shall not be construed as a
waiver of a subsequent breach of the same covenant, term or provision, nor shall
it be considered a waiver of any other then  existing or subsequent  breach of a
different covenant,  term or provision.  The consent or approval of either party
to or of any act by the other party requiring such consent or approval shall not
be  deemed  to  waive  or  render  unnecessary  consent  to or  approval  or any
subsequent  similar act. No custom or practice of the parties shall constitute a
waiver of either party's rights to insist upon strict  compliance with the terms
hereof.

                                     - 69 -
<PAGE>

16.  SECTION  HEADINGS.  The  headings  contained  in  this  Agreement  are  for
reference   purposes  only  and  do  not  affect  in  any  way  the  meaning  or
interpretation of this Agreement.

17.  MULTIPLE COUNTERPARTS. This Agreement may be executed in counterparts, each
of  which  for all  purposes  is to be  deemed  an  original,  and both of which
constitute,  collectively, one agreement; but in making proof of this Agreement,
it  shall  not be  necessary  to  produce  or  account  for  more  than one such
counterpart.

18.  GOVERNING  LAW.  This  Agreement  shall be  governed  by and  construed  in
accordance  with  the  laws  of  the  State  of  Texas,  without  regard  to its
conflict-of-law rules.

19.  ENTIRE  AGREEMENT.  This  Agreement  contains  the entire  agreement of the
parties hereto, and supersedes all prior agreements and understandings,  oral or
written,  if any, between the parties hereto, with respect to the subject matter
hereof.  No  modification  or  amendment  of any of the  terms,  conditions,  or
provisions  herein may be made otherwise than by written agreement signed by the
parties hereto.

     IN WITNESS  WHEREOF,  the parties  have caused  this  Agreement  to be duly
executed and delivered as of the date first above written.

                                 ATRION CORPORATION

                                 By:/s/ Jeffery Strickland
                                    --------------------------------------------
                                    Vice President and Chief Financial Officer,
                                    Secretary and Treasurer

                                 /s/ Emile A. Battat
                                 -----------------------------------------------
                                     EMILE A. BATTAT

                                     - 70 -
<PAGE>

                                    Exhibit A

(a)  For purposes of the Agreement,  the term "Change in Control" shall mean the
occurrence of any one of the following events:

          (i) any person (as the term  "person" is used in Section  13(d) (3) or
Section  14(d) (2) of the  Securities  Exchange  Act of 1934,  as  amended  (the
"Exchange  Act"))  (other  than the  Company,  any of its  subsidiaries,  or any
trustee or other fiduciary  holding  securities of the Company under an employee
benefit plan of the Company or any of its  subsidiaries)  becomes the beneficial
owner  (as the term  "beneficial  owner"  is  defined  under  Rule  13d-3 or any
successor rule or regulation  promulgated  under the Exchange Act) of securities
of the Company  representing  25% or more of the  combined  voting  power of the
then-outstanding voting securities of the Company

          (ii) the Company is merged,  consolidated or reorganized  into or with
another   corporation   or  other  person  and  as  a  result  of  such  merger,
consolidation  or  reorganization  less than 75% of the combined voting power of
the then-outstanding  securities of such corporation or person immediately after
such  transaction are held in the aggregate by the holders of voting  securities
of the Company immediately prior to such transaction;

          (iii) the  stockholders  of the  Company  approve  a plan of  complete
liquidation of the Company or the Company sells all or substantially  all of its
assets to any other  corporation  or other  person  and as a result of such sale
less  than  75% of the  combined  voting  power of the  then-outstanding  voting
securities of such corporation or person  immediately after such transaction are
held in the  aggregate  by the  holders  of  voting  securities  of the  Company
immediately prior to such sale; or

          (iv) during any period of two consecutive  years,  individuals who, at
the beginning of any such period,  constitute the directors of the Company cease
for any reason to constitute at least a majority  thereof unless the election or
the  nomination for election by the Company's  stockholders  of each director of
the Company first elected  during such period was approved by a vote of at least
two-thirds  of the  directors  of the  Company  then  still in  office  who were
directors of the Company at the beginning of any such period.

                                     - 71 -

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