Document:

EXHIBIT
            10.1

            EMPLOYMENT
            AGREEMENT

            THIS EMPLOYMENT
            AGREEMENT (“Agreement”) entered into as of the 27th day of June
            2007.

            
            BETWEEN

            
                                   E-Z-EM,
            Inc., with its principal office at 1111 Marcus Avenue, Lake Success, NY 11042
            (hereinafter referred to as the “Company”)

            AND

            
                                   Anthony
            A. Lombardo (hereinafter referred to as the “Employee”).

            
            WITNESSETH

            
                                   WHEREAS,
            the Company and Employee entered into an Employment Agreement dated April 3, 2000
            (“Original Agreement”) and entered into a First Amendment to the Original
            Agreement effective June 1, 2004 (“First Amendment”) (collectively, the
            Original Agreement and the First Amendment are hereinafter referred to as the
            “Original Employment Agreement”);

            
                                   WHEREAS,
            the Original Employment Agreement expired on May 31, 2007 and the parties wish to
            provide for the continued employment of the Employee after that date on the terms and
            subject to the conditions set forth herein;

            
                                   NOW,
            THEREFORE, in consideration of the foregoing premises and the mutual covenants and
            agreements herein contained, the Company and the Employee do hereby agree as
            follows:

            	
                         

                    	
                         

                    
	
                        
                        1

                    	
                        
                        SCOPE OF
                        EMPLOYMENT

                    

            
                      1.1        Subject
            to the terms and conditions hereof, the Company hereby employs the Employee to render
            services to the Company as President and Chief Executive Officer, subject to the
            direction of the Board of Directors of the Company (the “Board”) or any
            committee thereof. Subject to the foregoing, the Employee shall be responsible,
            consistent with his position, for all aspects of the management, business, personnel,
            activities and affairs of the Company as such responsibilities reasonably are defined
            by the Board from time to time.

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                      1.2        The
            Employee hereby accepts such employment and agrees faithfully to render the services
            described above and to promote the interests of the Company to the best of his ability.
            The Employee further agrees to devote his full working time, attention, skill and best
            efforts to the performance of his duties under this Agreement. The Employee shall not
            engage in any other business or occupation during the term of employment under this
            Agreement without the prior written consent of the Board, which consent the Board may
            withhold in its sole discretion.

            
                      1.3        The
            Employee shall have such power and authority, consistent with his position, as shall
            reasonably be required to enable him to perform his duties hereunder in an efficient
            manner, provided that in exercising such power and authority and performing such
            duties, he shall at all times be subject to the authority and control of the Board or
            any committee thereof and shall report directly to the Board.

            
                      1.4        The
            Employee shall perform his duties hereunder principally at the Company’s offices
            at 1111 Marcus Avenue, Lake Success, N.Y., provided, however, that he will be required
            to travel and render services in different locations, from time to time as appropriate
            in connection with the performance of such duties.

            
                      1.5        Throughout
            the term of employment under this Agreement, the Company agrees to seek to cause the
            Employee to be elected to the Board. Employee understands and agrees that he shall not
            be eligible to receive any non-employee director fees or other compensation for his
            service on the Board, other than the salary and other compensation described in Section
            3 of this Agreement. Upon the termination of the Employee’s employment under this
            Agreement for any reason, the Employee shall be deemed to have automatically resigned
            from any position he may then hold on the Board. Such resignation shall be deemed
            effective immediately without the requirement that a written resignation be
            delivered.

            	
                         

                    	
                         

                    
	
                        
                        2

                    	
                        
                        TERM OF
                        EMPLOYMENT

                    

            
                      2.1        The
            Employee’s employment pursuant to this Agreement shall commence on June 1, 2007
            and terminate on May 31, 2010, unless terminated sooner in accordance with the terms
            and conditions contained herein. This Agreement may be renewed by the mutual written
            consent of the Company and Employee.

            	
                         

                    	
                         

                    
	
                        
                        3

                    	
                        
                        COMPENSATION,
                        BENEFITS AND VACATION

                    

            
                      3.1        The
            Company agrees to pay the Employee, during the term of his employment, a base salary of
            Three Hundred Sixty Thousand Dollars ($360,000) per year of employment (the “Base
            Salary”). Base Salary shall be payable in equal installments on a monthly basis,
            less such deductions or amounts to be withheld as shall be required by applicable law
            and regulations. The Company shall be under no obligation to increase the Base Salary,
            but may review the Employee’s Base Salary at its sole discretion.

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                      3.2        For
            each fiscal year of the Company that commences or terminates during the
            Employee’s employment hereunder the Employee shall have the opportunity to earn
            an annual bonus at the President/CEO level in accordance with and subject to the terms
            and conditions of the Company’s Annual Incentive Plan (“AIP”), as
            such plan may be modified from time to time by the Company; provided that any bonus for
            less than a full fiscal year of employment may be prorated.

            
                      Notwithstanding
            any provision of this Agreement to the contrary, (a) In the event the Employee’s
            employment is terminated by the Company for Cause, as such term is defined in Section 4
            of this Agreement, the Employee shall not be eligible for the accrued bonus under the
            AIP; and (b) In the event the Employee’s employment is terminated by the Company
            without Cause or by the Employee, or terminates at the expiration of the term of
            employment set forth in Section 2.1, the Employee shall only be eligible to receive a
            pro-rata portion of the bonus, if any, for the fiscal year in which his employment
            terminates (based on the portion of such fiscal year elapsed through the date of
            termination), and only when bonuses are paid for such fiscal year under the AIP but in
            no event later than the later of (i) the 15th day of the third month
            following the end of the Employee’s taxable year in which the Employee’s
            employment terminates, or (ii) the 15th day of the third month following the
            end of the Company’s taxable year in which the Employee’s employment
            terminates.

            
                      3.3        The
            Employee shall be eligible for long-term incentive awards under the Company’s
            Stock and Incentive Award Plan as in effect from time to time (the “Stock
            Plan”) or any successor plan that the Company may adopt during the term of
            employment, the amount, timing, type and terms and conditions of any such awards to be
            determined in the sole discretion of the Company’s Board of Directors or its
            Compensation Committee.

            
                      3.4        The
            Company shall pay or reimburse the Employee for all reasonable expenses actually and
            properly (in accordance with the Company’s policy) incurred or paid by him in
            connection with the performance of his services under this Agreement upon presentation
            of expense statements or vouchers or such other supporting documentation in such form
            and containing such information as the Company may from time to time reasonably
            require. In order to comply with Treasury Regulation section 1.409A-3(i)(1)(iv), any
            payment or reimbursement of expenses pursuant to this Section 3.4 that will not be
            excluded from the Employee’s income when received (within the meaning of Treasury
            Regulation section 1.409A-1(b)(1)) is subject to the following requirements: (a) the
            expenses that are eligible for reimbursement are those expenses that have been properly
            reimbursed prior to the date of this Agreement pursuant to the Company’s expense
            reimbursement policy as in effect on the date of this Agreement; (b) the expenses to be
            reimbursed must be incurred during calendar year 2007 or otherwise during the
            Employee’s employment by the Company pursuant to this Agreement; (c) the amount
            of expenses eligible for reimbursement, or in-kind benefits provided, during a taxable
            year of the Employee may not affect the expenses eligible for reimbursement, or in-kind
            benefits to be provided in any other taxable year; (d) the reimbursement of the
            eligible expense must be made on or before the last day of the Employee’s taxable
            year following the taxable year in which the expense was incurred; and (e) the right to
            reimbursement or in-kind benefits is

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            not subject to
            liquidation or exchange for another benefit. For purposes of this Agreement,
            “in-kind benefits” has the meaning set forth in Treasury Regulation section
            1.409A-1(p).

            
                      3.5        The
            Employee shall be entitled to four (4) weeks of paid vacation during each fiscal year
            of employment with the Company. Vacation time shall not accrue and may not be carried
            forward to future years.

            
                      3.6        The
            Company shall provide the Employee with health, accident, disability and life insurance
            in accordance with its standard policies for Company executives as adopted from time to
            time by the Board. The Company’s obligation to provide any such coverage shall be
            contingent on the Employee’s continued employment pursuant to this Agreement and
            shall continue only for so long as the Employee continues to be employed by the Company
            pursuant to this Agreement, unless otherwise required by law.

            
                      3.7        The
            Company shall enter into a Change in Control Agreement with the Employee as such
            agreement may be modified from time to time by the mutual written consent of the
            parties. In the event of any conflict between this Agreement and the terms and
            conditions of the Change in Control Agreement, the terms and conditions of the Change
            in Control Agreement shall prevail.

            
                      3.8        The
            Company shall provide the Employee, at no cost, an automobile in accordance with the
            Company’s standard automobile policy for Company executives as adopted from time
            to time by the Board. The Company’s obligation to provide an automobile shall be
            contingent on the Employee’s continued employment pursuant to this Agreement and
            shall continue only for so long as the Employee continues to be employed by the Company
            pursuant to this Agreement. Any payment (within the meaning of Treasury Regulation
            section 1.409A-2(b)(2), which includes the provision of any taxable benefit, including
            payment in cash or in kind) pursuant to such policy shall be paid to the Employee on or
            before the later of (i) the 15th day of the third month following the end of
            the Employee’s taxable year in which the Employee rendered the services which
            entitled him to such payment pursuant to the preceding sentence, or (ii) the
            15th day of the third month following the end of the Company’s taxable
            year in which the Employee rendered the services which entitled him to such payment
            pursuant to the preceding sentence. The amount of any expenses eligible for
            reimbursement pursuant to such policy, or in-kind benefits (as defined in Treasury
            Regulation section 1.409A-1(p)) provided, during a taxable year of the Employee may not
            affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in
            any other taxable year, and any right to reimbursement or in-kind benefits pursuant to
            such policy is not subject to liquidation or exchange for another benefit.

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                        4.

                    	
                        
                        TERMINATION

                    

            
                      4.1        Notwithstanding
            anything contained herein to the contrary, it is agreed that the Employee’s
            employment pursuant to this Agreement may be terminated without Cause upon the giving
            of thirty (30) days written notice by the Company to the Employee or the Employee to
            the Company.

            
                      4.2        The
            Employee’s employment pursuant to this Agreement shall automatically terminate
            upon the occurrence of the first to occur of the following events or
            conditions:

            	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        
                         (a)

                    	
                        the
                        death of the Employee; or

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        
                         (b)

                    	
                        the
                        delivery by the Company to the Employee of written notice that his
                        employment is terminated for “disability” (as defined in
                        Section 4.3 hereof); or

                    
	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        
                         (c)

                    	
                        the
                        delivery by the Company to the Employee of written notice that his
                        employment is terminated for “Cause” (as defined in Section 4.4
                        hereof).

                    

            
                      4.3       
            “Disability” shall mean the good faith determination by the Company that by
            reason of a physical or mental illness the Employee is unable to perform the essential
            functions of his position as contemplated by this Agreement, with or without reasonable
            accommodations by the Company, continuing for more than 60 consecutive business days or
            for more than an aggregate of 90 business days in any period of 365 days. Such
            determination shall not be arbitrary or unreasonable, and the Company shall take into
            consideration the opinion of a physician retained by the Company, if reasonably
            available, as well as the applicable provisions, if any, of the Americans with
            Disabilities Act. In the event the Employee’s employment is terminated pursuant
            to Section 4.2 (b), the Company shall be obligated to continue to pay the compensation
            provided for in Section 3.1 to the Employee until the end of the Company’s fiscal
            year in which the Company provides notice to the Employee that his employment is so
            terminated. During the period of time that the Company agrees to continue to pay the
            Employee as set forth in Section 4.3, any disability insurance that the Employee
            receives under the Company’s disability plan shall be offset against any payments
            made by the Company pursuant to Section 4.3.

            
                      4.4        As
            used herein “Cause” shall mean the following:

            	
                         

                    	
                         

                    
	
                         

                    	
                        (i)
                        the good faith determination by the Company that there has been continued
                        neglect by the Employee of his duties hereunder;

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        (ii)
                        the good faith determination by the Company that there has been willful
                        misconduct on the Employee’s part in connection with the performance
                        of such duties;

                    

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                        (iii) any willful
                        violation of any express direction or rule or regulation established by the
                        Board;

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        (iv)
                        any commission of any act of fraud, embezzlement or dishonesty by the
                        Employee;

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        (v)
                        the commission by the Employee of a crime or offense amounting to a felony
                        or a crime involving moral turpitude or theft.

                    

            
                      Provided,
            however that prior to terminating Employee’s employment for “Cause “
            pursuant to Section 4.4 (i) and (ii), the Company shall provide the Employee with
            written notice of the continued neglect or willful misconduct in reasonable detail and
            the Employee shall have ten (10) days from receipt of such notice to cure such neglect
            or misconduct to the reasonable satisfaction of the Company and such termination shall
            be effective upon the Employee’s failure to cure such neglect or misconduct
            within such ten (10) days period. Notwithstanding anything herein to the contrary, the
            Employee shall only be entitled to one notice and cure period during any twelve (12)
            month period of employment for any act constituting continued neglect and one notice
            and cure period during any twelve (12) month period of employment for any act
            constituting willful misconduct.

            
                      4.5        (a)        If
            the Employee’s employment is terminated by the Company pursuant to Section 4.1
            without Cause, he shall be entitled to severance pay equal to two (2) years Base
            Salary, payable in twenty four (24) equal monthly installments on the second regular
            pay day of each calendar month commencing in the first calendar month following the
            calendar month in which termination occurs, provided that the Company’s
            obligation to make each installment of severance payments pursuant to this sentence is
            contingent on (i) the Employee’s having executed and delivered to the Company a
            general release in the form attached as Exhibit A hereto or in such other form similar
            in substance to the form attached hereto as the Company’s General Counsel may
            prescribe at the time of termination of employment, (ii) the Employee’s having
            executed such release on or after the date of termination of employment and delivered
            same to the Company no later than eight (8) days before the installment of severance
            pay in question is to be paid, and (iii) the Employee’s not having revoked such
            release before the date of payment of such installment. For the avoidance of doubt, if
            on the date on which an installment of severance pay is to be paid any of the
            conditions set forth in clauses (i), (ii) and (iii) of the preceding sentence is not
            satisfied, the Employee shall forfeit the right to payment of such installment but
            shall not forfeit the right to payment of any later installment if all such conditions
            are satisfied on the date on which such later installment is to be paid. All severance
            payments made pursuant to this Agreement shall be subject to all applicable Federal,
            State and Local taxes and deductions, including without limitation FICA, Federal, State
            and Local withholding.

            
                                   (b)        For
            purposes of Internal Revenue Code section 409A and the Treasury Regulations thereunder,
            including without limitation Treasury Regulation sections 1.409A-2(b)(2),
            1.409A-2(b)(2)(iii) and 1.409A-1(b)(4), the Employee’s right to the series
            of

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            installment
            payments of severance pay described in the first sentence of this Section 4.5 is to be
            treated as a right to a series of separate payments, so that those installments that
            are paid within the “Short-Term Deferral Period” as hereafter defined will
            be treated as short-term deferrals within the meaning of Treasury Regulation section
            1.409A-1(b)(4). As used in this Agreement, the “Short-Term Deferral Period”
            means the period ending on the later of the 15th day of the third month
            following the end of the Employee’s taxable year in which his employment is
            terminated by the Company without Cause or the 15th day of the third month
            following the end of the Company’s taxable year in which the Employee’s
            employment is terminated by the Company without Cause.

            
                                   (c)        Notwithstanding
            any provision of this Agreement to the contrary, any installment of severance pay
            referred to in the first sentence of this Section 4.5 that is not payable within the
            Short-Term Deferral Period and that, but for this sentence, would be paid before the
            date that is six months after the date of the Employee’s Separation from Service
            shall not be paid until the date that is six months after the date of the
            Employee’s Separation from Service (or, if earlier than the end of the six month
            period, the date of the Employee’s death); provided, however, that the preceding
            provisions of this sentence shall not apply to any installment of severance pay if and
            to the extent that such installment of severance pay is deemed to be paid under a
            separation pay plan that does not provide for a deferral of compensation by reason of
            the application of Treasury Regulation section 1.409A-1(b)(9)(iii) (relating to
            separation pay due to involuntary separation from service) or another Treasury
            Regulation. For purposes of this Agreement, “Separation from Service” means
            a separation from service as defined in Treasury Regulation section
            1.409A-1(h).

            
                                   (d)        In
            addition to the foregoing severance payments, the Company shall continue to provide the
            Employee with medical and dental benefits similar to those as are in effect at the time
            of termination for a period of two (2) years following the date of termination;
            provided that the Company’s obligation to provide medical and dental benefits
            pursuant to this sentence is contingent on (i) the Employee’s having executed and
            delivered to the Company a general release in the form attached as Exhibit A hereto or
            in such other form similar in substance to the form attached hereto as the
            Company’s General Counsel may prescribe at the time of termination of employment
            or within twenty (20) days thereafter, and (ii) the Employee has not revoked such
            general release. Provided further that, in order to comply with Treasury Regulation
            section 1.409A-3(i)(1)(iv), any right to medical or dental expenses pursuant to this
            sentence that applies after the period of time during which the Employee would be
            entitled (or would, but for this sentence, be entitled) to continuation coverage under
            a group health plan of the Company under section 4980B (COBRA) if the Employee elected
            such coverage and paid the applicable premiums (all within the meaning of Treasury
            Regulation section 1.409A-1(b)(9)(v)(B)) and that will not be excluded from the
            Employee’s gross income when received (within the meaning of Treasury Regulation
            section 1.409A-1(b)(1)) is subject to the following requirements: (i) the expenses that
            are eligible for reimbursement at such time are the same expenses (if any) that are
            reimbursable on the date of this Agreement pursuant to the medical and dental
            reimbursement plans of the Company that apply to the Employee and that are not
            excludable from the Employee’s gross income; (ii) the expenses to be reimbursed
            must be

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            incurred no
            later than two (2) years following the date of termination; (iii) the amount of
            expenses eligible for reimbursement, or in-kind benefits provided, during a taxable
            year of the Employee may not affect the expenses eligible for reimbursement, or in-kind
            benefits to be provided in any other taxable year; (iv) the reimbursement of the
            eligible expense must be made on or before the last day of the Employee’s taxable
            year following the taxable year in which the expense was incurred; and (v) the right to
            reimbursement or in-kind benefits is not subject to liquidation or exchange for another
            benefit.

            
                                   (e)        In
            the event the Employee’s termination is covered under the Change in Control
            Agreement referred to in Section 3.7 of this Agreement, the obligations of the Company
            to make payments and provide continued medical and dental benefits pursuant to this
            Section 4.5 shall terminate and the Employee shall only be entitled to such severance
            amount and benefits as are set forth in the Change in Control Agreement.

            
                                   (f)        If
            following the termination of the Employee by the Company pursuant to Section 4.1 of
            this Agreement, the Employee breaches any provisions of Section 5 of this Agreement,
            the obligations of the Company to make payments and provide medical and dental benefits
            pursuant to this Section 4.5 shall immediately terminate.

            
                                   (g)        Except
            as provided in Sections 4.5 and 3.2, the Employee shall not be entitled to any
            severance pay or to any other compensation, payments or benefit (by way of salary,
            bonus, stock options, stock appreciation rights, restricted stock units or other
            awards, damages or otherwise) of any nature relating to this Agreement or otherwise
            relating to or arising out of his employment by the Company, for any period subsequent
            to the date of termination. Furthermore, upon termination of Employee’s
            employment pursuant to this Agreement, the applicable provisions of any stock option,
            stock appreciation right, restricted stock unit or other award agreement theretofore
            entered into with or issued to the Employee under the Stock Plan or any predecessor or
            successor plan shall determine the Employee’s rights, if any, with respect to the
            stock options, stock appreciation rights, restricted stock units or other awards
            documented thereby.

            
                                   (h)        The
            Employee’s rights to severance payments and medical and dental benefits pursuant
            to this Section 4.5, and any other rights the Employee may have under this Agreement,
            are not subject to anticipation, alienation, sale, transfer, assignment, pledge,
            encumbrance, attachment, or garnishment by creditors of the Employee or the
            Employee’s beneficiary, and any attempt to effectuate any of the foregoing with
            respect to any of the aforementioned rights of the Employee shall be null and void and
            of no force or effect to the fullest extent permitted by law.

            
                      4.6        Upon
            the termination of the Employee’s employment under this Agreement for any reason,
            the Employee shall be deemed to have automatically resigned from any position he may
            then hold as an officer and/or director of the Company, and any of its affiliates or
            subsidiaries including without limitation E-Z-EM, Ltd., E-Z-EM Canada, Inc., E-Z-EM
            Caribe, Inc. and E-Z-EM Nederlands, B.V. Such resignation shall be deemed effective
            immediately without the requirement that a written resignation be delivered.

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            Employee agrees
            to execute any and all documents necessary or required by applicable laws to effectuate
            such resignation.

            
                      4.7        Following
            any termination of the Employee’s employment, other than a termination of
            employment by the Company for Cause, the Company shall continue to indemnify, defend,
            and hold the Employee harmless in connection with any “bona fide claim”
            (within the meaning of Treasury Regulation section 1.409A-1(b)(10)) that may be brought
            against him related to his lawful performance of his duties during his employment with
            the Company, to the same extent as during his employment, as provided for under the
            Company’s bylaws, certificate of incorporation, and directors and officers
            liability insurance.

            	
                         

                    	
                         

                    
	
                        
                        5

                    	
                        
                        EMPLOYMENT AND POST
                        EMPLOYMENT RESTRICTIONS

                    

            
                      5.1        Employee
            acknowledges that the Company’s business is highly specialized and operates in a
            competitive market, and that in rendering his services to the Company the Employee has
            had or will have access to or will be exposed to valuable trade secrets, and
            confidential and proprietary information belonging to the Company. Because of the
            nature of the business, the Company may be unfairly harmed by certain activities of its
            present and former employees. These activities may include disclosure or use of trade
            secrets or confidential and proprietary information, entering into or participating in
            a competing business of the Company, appropriating or diverting business or customers
            of the Company and inducing employees of the Company to leave the employment of the
            Company, all of which are in violation of recognized employee obligations. Employees
            may be able to do these unfair acts because of information which was learned and
            contacts which were made while in the employment of the Company. Therefore, the Company
            desires to protect itself by requiring that certain persons working for it agree to
            reasonable restrictions concerning their employment and post employment activities.
            These restrictions are necessarily designed to prevent harm to the Company (as well as
            to other employees of the Company whose business or compensation depends upon the
            continuous success of the business) through indirect methods as well as through direct
            activities.

            
                      5.2        For
            the reasons set forth above, and in consideration of the salary and other compensation
            and benefits including without limitation the severance and benefits payable under
            Section 4.5 received and to be received by the Employee, the Employee agrees as
            follows:

            	
                         

                    	
                         

                    
	
                         

                    	
                        (a)
                        The Employee agrees that during the period of his employment under this
                        Agreement and for a period of twenty-four (24) months following the
                        termination of his employment for any reason, he shall not in any state or
                        territory of the United States in which the Company conducts business,
                        directly or indirectly, own, manage, operate, control, be employed by, be a
                        shareholder of, be an officer of, participate in, contract with or be
                        connected in any capacity or any manner with any business that directly or
                        indirectly (whether through related companies or otherwise) manufactures,
                        develops, designs, distributes, sells, or markets any product, device
                        or

                    

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                        equipment substantially
                        similar to any product, device or equipment which at the time during the
                        term of Employee’s employment has been manufactured, marketed, sold,
                        or distributed by the Company or any product, device or equipment which the
                        Company was developing or designing during the Employee’s employment
                        with the Company for future manufacture, marketing, sale or distribution;
                        provided, however that nothing herein shall prohibit the Employee from
                        owning, directly or indirectly, as a passive investor, in the aggregate not
                        more than one percent (1%) of the outstanding publicly traded stock of any
                        company that competes with the Company.

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        (b)
                        The Employee agrees that during the period of his employment under this
                        Agreement and for a period of twenty four (24) months following the
                        termination of his employment for any reason, he will not, directly or
                        indirectly, solicit or hire or attempt to solicit or hire any employee of
                        the Company or otherwise induce any employee of the Company to leave the
                        employment of the Company.

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        (c)
                        The Employee agrees that during the period of his employment under this
                        Agreement and for a period of twenty-four (24) months following the
                        termination of his employment for any reason, he will not appropriate,
                        divert or assist another to appropriate or divert any business or customer
                        away from the Company or attempt to do any of the foregoing.

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        (d)
                        The Employee agrees that during the period of his employment under this
                        Agreement and following the termination of his employment, he will not
                        disclose, cause to be disclosed or otherwise allow the following
                        information to come into the possession of any person or entity (other than
                        those persons and entities that the Company has determined as being
                        entitled thereto) or use the following information, whether such
                        information is on the Company’s forms, memos, computer disc or tape,
                        or otherwise and whether such information is in written or verbal form:
                        sales information, operations information, financial information,
                        administrative information, research information, technical information,
                        scientific information, data, designs, formulas, and any other information
                        concerning the Company, its business, its properties or its affairs that
                        the Company deems to be confidential or that is confidential according to
                        industry practices. The Employee understands and agrees that his
                        obligations set forth herein shall continue for so long as any information
                        as set forth above is deemed confidential and/or proprietary by the Company
                        or according to industry practices. The Employee further agrees that upon
                        termination of his employment for any reason, he will promptly return to
                        the Company all information of the type described above within his
                        possession or within his power to control, including, without limitation
                        all copies of such information, all abstracts of such information and any
                        other information containing such information in whole or in
                        part.

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        (e)
                        The Employee agrees to assign and transfer to the Company his entire right,
                        title and interest in and to any and all inventions, discoveries,
                        improvements,

                    

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                        innovations, know-how,
                        new ideas, formulas, processes, techniques or concepts (collectively
                        “Inventions”) created, conceived or developed by Employee,
                        either solely or jointly with others, arising out of or during the course
                        of employment with the Company relating to the business of the Company
                        together with all rights to letters patent which may be granted thereon and
                        that such Inventions shall inure to and be the sole property of the
                        Company. Immediately upon the making any Inventions, Employee shall notify
                        the Company thereof and shall thereafter execute and deliver to the Company
                        without further compensation such documents as may be necessary to prepare
                        and prosecute applications for letters patent upon any such Inventions, and
                        to assign and transfer to the Company the Employee’s entire right,
                        title and interest in and to any and all Inventions. The Employee agrees
                        that he will cooperate with the Company in connection with the foregoing
                        after termination of his employment.

                    

            
                      5.3        In
            the event of a violation of Section 5.2, if the Employee is prevented by a court from
            committing any further violation, whether by a temporary restraining order, injunction
            or otherwise, the time periods set forth in Section 5.2 shall be computed by commencing
            the periods on the date of the applicable court order and continuing them from that
            date for the full period provided.

            
                      5.4        In
            the event of a violation of Section 5.2, the Company shall be entitled to seek
            injunctive relief in addition to damages and other remedies for the violation, and
            additionally, the Company shall be entitled to reasonable attorneys’ fees and all
            costs incurred for the enforcement of this Agreement and the Company shall be relieved
            of any further obligation to pay any compensation or severance to Employee and the
            Employee shall have no further rights with respect to benefits, including but not
            limited to stock options not already vested which shall expire, except as is required
            by law and Employee shall repay all monies and benefits received from the Company
            pursuant to Section 4.5 to that point in time under this Agreement.

            
                      5.5        The
            Employee shall have the right to request a waiver of all or part of the restrictions
            contained in Section 5.2 by providing the Company with a written statement containing
            all relevant details. The Company may, in its sole discretion, waive all or part of the
            restrictions contained in Section 5.2 on such terms and conditions, and to such extent,
            as it, in its sole discretion, deems appropriate. Such waiver must be in
            writing.

            
                      5.6        As
            an essential part of the material consideration for this Agreement, the Employee agrees
            that while employed by the Company and after the termination of such employment for any
            reason he will cooperate with the Company fully and to the best of his abilities with
            regard to the Company’s defense of any legal claim pending or hereafter brought
            or threatened against the Company or any of its officers, directors or employees. Such
            cooperation shall include, but is not limited to: (i) providing truthful and
            comprehensive testimony in depositions, arbitrations, hearings, trials, and other
            proceedings, as requested by Company counsel; (ii) providing truthful and comprehensive
            affidavits as requested by Company counsel; (iii) meeting with the Company’s
            counsel and

            11

            

            

            

            employees as
            requested to prepare for such testimony, to facilitate the preparation of such
            affidavits, and/or to aid the Company otherwise in defending any such claim. The
            obligations agreed to in this paragraph shall survive for seven years after termination
            of the Employee’s employment for any reason and the Company agrees to reimburse
            Employee for all reasonable travel, hotel and food expenses incurred in connection with
            Employee’s cooperation and assistance under this Section 5.6 during that seven
            year period. The amount of such expenses eligible for reimbursement during a taxable
            year of the Employee may not affect the expenses eligible for reimbursement in any
            other taxable year. The reimbursement of an eligible expense shall be made on or before
            the last day of Employee’s taxable year following the taxable year in which the
            expense was incurred, and the right to reimbursement is not subject to liquidation or
            exchange for another benefit. In order to enable the Company to contact the Employee
            for the purposes set forth in this paragraph, Employee shall keep the Company informed
            at all times of his addresses and telephone numbers at home and at work. To the extent
            permitted by the exigencies of litigation and the schedules of other persons involved,
            the Company shall give the Employee reasonable notice of the times when he will be
            required to fulfill his obligations under this paragraph. In the event that the
            Employee fails to fulfill his obligations under this paragraph, he shall forfeit his
            right to any further payments under Section 4.5 above, and the Company shall have the
            right, to the extent permitted by law, to seek recovery from the Employee: (x) all such
            payments that have already been made under Section 4.5, (y) any sum that the Company
            has been compelled to pay to anyone as a result of litigation with regard to which the
            Employee breached this paragraph, and (z) any attorneys’ fees expended by the
            Company in order to obtain such recovery.

            
                      5.7        Notwithstanding
            the termination of Employee’s employment pursuant to this Agreement, Section 5
            hereof shall continue in full force and effect for the periods of time provided for
            therein.

            	
                         

                    	
                         

                    
	
                        
                        6

                    	
                        
                        MISCELLANEOUS

                    

            
                      6.1        This
            Agreement expresses the entire understanding and agreement of the parties and
            supersedes any and all prior agreements and understandings, whether written or oral,
            relating in any way to the subject matter of this Agreement. This Agreement cannot be
            modified, amended or supplemented except by a written instrument or instruments
            executed by each of the parties hereto.

            
                      6.2        All
            notices concerning this Agreement shall be deemed to have been received two (2) days
            after being properly sent by commercial overnight courier to the address
            below:

            12

            

            

            

            	
                         

                    	
                         

                    
	
                        If
                        to the Company:

                    	
                        
                        E-Z-EM, Inc.

                    
	
                         

                    	
                        1111
                        Marcus Avenue

                    
	
                         

                    	
                        Lake
                        Success, NY 11042

                    
	
                         

                    	
                        
                        Attn: Chairman of
                        Board

                    
	
                         

                    	
                         

                    
	
                        With
                        a copy to:

                    	
                        
                        E-Z-EM, Inc.

                    
	
                         

                    	
                        1111
                        Marcus Avenue

                    
	
                         

                    	
                        Lake
                        Success, NY 11042

                    
	
                         

                    	
                        
                        Attn: Senior Vice
                        President – Chief Legal Officer

                    
	
                         

                    	
                         

                    
	
                        If
                        to Employee:

                    	
                        To
                        his most recent address shown on the books and records of the
                        Company.

                    

            
                      6.3        All
            rights and remedies herein granted or referred to are cumulative, resort to one shall
            not preclude resort to another. No waiver by either party of a breach of this
            Agreement, or any part hereof, shall be deemed to be a waiver of any other prior,
            concurrent or subsequent breach of the same or different provisions of this
            Agreement.

            
                      6.4        If
            an action is commenced to enforce the performance of any part of this Agreement,
            including, without limitation, any order or release made hereunder, the prevailing
            party shall be reimbursed by the other party for all reasonable attorneys’ fees
            and expenses.

            
                      6.5        This
            Agreement shall be governed by and construed under the laws of the State of New York
            without reference to or application of its choice laws provisions. If any provision of
            this Agreement shall be invalid or unenforceable, this Agreement shall be deemed
            amended but only to the extent required to make it valid and enforceable, and this
            Agreement as thereby amended shall remain in full force and effect.

            
                      6.6        Employee
            represents and warrants that Employee is not subject to any agreement, whether written
            or oral, contract, order, judgement, or decree of any kind that would prevent Employee
            from entering into this Agreement or performing his duties and obligations
            hereunder.

            
                      6.7        The
            section headings appearing in this Agreement are inserted only as a matter convenience
            and in no way define, limit, construe or describe the scope or extent of such section
            or in any way affect such section.

            [Remainder of
            this page intentionally left blank]

            13

            

            

            

            
                      IN
            WITNESS WHEREOF, the Company and the Employee have executed this Agreement as of the
            day and year set forth above.

            	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                        
                           
                        E-Z-EM, Inc.

                    	
                         

                    	
                         

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                              /s/  Paul S.
                        Echenberg     
                                        

                    	
                        
                                    
                        /s/ Anthony A .
                        Lombardo            

                    	
                         

                    
	
                    	
                     Paul S. Echenberg,
                    Chairman of the Board 	
                                            
                    Anthony A. Lombardo  	
                    
	
                         

                    	
                         

                    	
                    	
                         

                    

            14

            

            

            

            Exhibit
            A

            GENERAL
            RELEASE AGREEMENT

            This GENERAL
            RELEASE AGREEMENT (“Agreement”) is executed on the ___ day of _______,
            20__ by Anthony A. Lombardo (herein called the
            “Employee”).

            In consideration
            of valuable severance benefits to be paid or provided by E-Z-EM, Inc. (the
            “Employer”) to the Employee in connection with the termination of the
            Employee’s employment pursuant to Section 4.5 of that certain employment
            agreement dated June 27, 2007 between the Employer and the Employee (the
            “Employment Agreement”), the Employee hereby agrees as follows:

            	
                         

                    	
                         

                    
	
                        
                        1.

                    	
                        The
                        foregoing preamble shall form an integral part of this Agreement and shall
                        serve for the purpose of its interpretation.

                    
	
                         

                    	
                         

                    
	
                        
                        2.

                    	
                        
                        Except for those
                        obligations created by or arising out of Section 4.5 and Section 4.7 of the
                        Employment Agreement, and except as otherwise provided below, the Employee
                        on behalf of himself, his descendants, ancestors, dependents, heirs,
                        executors, insurers, administrators, assigns, and successors, and each of
                        them, hereby waives, covenants not to sue and fully releases and discharges
                        the Employer, all affiliates and subsidiaries (whether or not wholly-owned)
                        of the Employer, and all trustees, directors, officers, employees, agents,
                        attorneys, insurers, stockholders and representatives of the Employer and
                        its affiliates and subsidiaries, past and present, and all of such
                        persons’ assigns and successors, and each of them, hereinafter
                        together and collectively referred to as “Releasees”, with
                        respect to and from any and all claims, wages, demands, rights, liens,
                        agreements, contracts, covenants, actions, suits, causes of action,
                        obligations, debts, costs, expenses, attorneys’ fees, damages,
                        judgments, orders and liabilities of whatever kind or nature in law, equity
                        or otherwise, whether now known or unknown, suspected or unsuspected, and
                        whether or not concealed or hidden, which he now owns or holds or he has at
                        any time heretofore owned or held as against said Releasees, arising out of
                        or in any way connected with his employment relationship with the Employer,
                        or the severance of his employment or any other transactions, occurrences,
                        acts or omissions or any loss, damage or injury whatever, known or unknown,
                        suspected or unsuspected, resulting from any act or omission by or on the
                        part of said Releasees, or any of them, committed or omitted prior to the
                        date of this Agreement, including, but not limited to, any claim under the
                        Civil Rights Act of 1866, 1871, 1964 and/or 1991, the Age Discrimination in
                        Employment Act (the “ADEA”), the Older Worker Benefit
                        Protection Act of 1990 (“OWBPA”) the New York Human Rights Act,
                        the Equal Pay Act, the Americans with Disabilities Act, the Employee
                        Retirement Income Security Act, the Rehabilitation Act of 1973, the Family
                        and Medical Leave Act, the Fair Credit Reporting Act, any federal, state,
                        or local “whistleblower” or similar employee disclosure
                        protection law, and/or any other federal, state or local laws or
                        regulations prohibiting discrimination on the basis of age, race, color,
                        creed, national origin, sex, sexual orientation, marital status, or any
                        other form of illegal discrimination or any claim for wrongful termination,
                        premature or discriminatory termination of Employee’s employment, or
                        discriminatory

                    

            

            

            

            

            	
                         

                    	
                         

                    
	
                         

                    	
                        
                        terms and conditions of
                        employment, infliction of emotional distress, or any claim for salary,
                        wages, severance pay, bonus, sick leave, holiday pay, vacation pay, life
                        insurance, health or medical insurance or any other fringe benefit,
                        workman’s compensation or disability benefit. Notwithstanding the
                        foregoing, nothing in this Agreeement shall be construed to prohibit
                        Employee from filing a charge with or participating in any investigation or
                        proceedings conducted by the Equal Employment Opportunity Commission
                        (“EEOC”) or a comparaible state or local agency, provided,
                        however, that Employee hereby waives his/her right to recover monetary
                        damages in any charge, complaint or lawsuit filed by Employee or by anyone
                        else on Employee’s behalf. Further, Employee represents that no
                        claims, complaints, charges or other proceedings are pending in any court,
                        administrative agency, commission or other forum relating directly or
                        indirectly to Employee’s employment by Employer. Provided, however,
                        that notwithstanding this paragraph, Employee retains his claims for vested
                        benefits under the Employer’s 401(k) plan or other benefit plans, for
                        vested stock options and stock appreciation rights, and for restricted
                        stock units issued in partial payment of awards under the Annual Incentive
                        Plan.

                    
	
                         

                    	
                         

                    
	
                        
                        3.

                    	
                        
                        Except as otherwise
                        provided in Section 2 of this Agreement, the Employee agrees that he will
                        not provide consulting advice or counsel to or otherwise cooperate with or
                        assist employees or former employees of Releasees to pursue legal actions
                        against Releasees on or in connection with any matter relating to their
                        employment or the termination of their employment, provided that the
                        Employee may comply with any subpoena or other legal process so long as the
                        Employee gives immediate written notice to the Employer that he has
                        received such subpoena or other legal process and provides the Employer
                        with a copy of such subpoena or other legal process. The Employee further
                        agrees that he will not participate, directly or indirectly, as a party,
                        witness or otherwise, in any action at law, proceeding in equity or in any
                        administrative proceeding in which Releasees or Releasees’ personnel
                        are parties or attempt to offer into evidence against Releasees or
                        Releasees’ personnel any fact concerning any act or omission of
                        Releasees or Releasees’ personnel, provided that the Employee may
                        comply with any subpoena or other legal process so long as the Employee
                        gives immediate written notice to the Employer that he has received such
                        subpoena or other legal process and provides the Employer with a copy of
                        such subpoena or other legal process.

                    
	
                         

                    	
                         

                    
	
                        
                        4.

                    	
                        
                        Should the Employee
                        commence or prosecute any action or proceeding contrary to the provisions
                        of this Agreement, the Employee agrees to indemnify Releasees and/or the
                        affected personnel for all court costs and attorneys’ fees incurred
                        by Releasees and personnel in the defense of such action or in establishing
                        or maintaining the application or validity of this Agreement or provisions
                        thereof, except as to claims enforced by the EEOC. Accordingly, this
                        provision shall not be applicable to any action or proceeding brought by
                        Employee for the purpose of challenging the validity and/or enforceability
                        of any waiver of any employment discrimination claim Employee may have
                        against the Employer, in which case court costs and attorneys fees shall be
                        payable by Employee to Employer only if such challenge is unsuccessful and
                        applicable law permits such recovery under the circumstances. In addition,
                        this provision shall not be applicable to

                    

            2

            

            

            

            	
                         

                    	
                         

                    
	
                         

                    	
                        any
                        action or proceeding brought by Employee for the purpose of enforcing his
                        rights pursuant to Section 4.5 or Section 4.7 of the Employment
                        Agreement.

                    
	
                         

                    	
                         

                    
	
                        
                        5.

                    	
                        The
                        Employee shall not disparage the Employer or any of the Employer’s
                        employees.

                    
	
                         

                    	
                         

                    
	
                        
                        6.

                    	
                        If
                        any provision of this Agreement or the application thereof is held invalid,
                        the invalidity shall not affect other provisions or applications of the
                        Agreement which can be given effect without the invalid provisions or
                        applications and to this end the provisions of this Agreement are declared
                        to be severable.

                    
	
                         

                    	
                         

                    
	
                        
                        7.

                    	
                        This
                        Agreement shall be deemed to have been executed and delivered within the
                        State of New York, and the rights and obligations of the the Employee and
                        the Employer hereunder shall be construed and enforced in accordance with,
                        and governed by, the laws of the State of New York without regard to
                        principles of conflict of laws.

                    
	
                         

                    	
                         

                    
	
                        
                        8.

                    	
                        In
                        the event of any dispute between the Employer and the Employee in
                        connection with or concerning the subject matter of this Agreement, except
                        as otherwise provided in Section 2 and 4 of this Agreement, in which the
                        Employer is the prevailing party, the Employer shall be entitled to recover
                        from the Employee all costs and expenses incurred by the Employer in
                        connection herewith, including reasonable attorneys’ fees.

                    
	
                         

                    	
                         

                    
	
                        
                        9.

                    	
                        It
                        is recognized that in the event of the Employee’s breach of Sections
                        2 and/or 3 the damages resulting from such breach would be difficult, if
                        not impossible, to ascertain and that Employer would be subject to
                        irreparable injury therefrom. The Employee therefore agrees that Employer,
                        in addition to and without limiting any other remedy or right it may have,
                        shall be entitled to such equitable and injunctive relief as may be
                        available to restrain Employee from violation of any of said covenants,
                        such right to injunctive and equitable relief, however, to be cumulative
                        and in addition to whatever other remedies Employer may have in the
                        premises, including the recovery of damages from Employee. Further, in the
                        event that the provisions of Sections 2 and/or 3 should ever be adjudicated
                        to exceed limitations permitted by applicable law, the Employee agrees that
                        it is his intent that the court reviewing same shall modify and enforce any
                        or all such paragraphs to the maximum extent that it believes to be
                        reasonable under the circumstances existing at that time.

                    
	
                         

                    	
                         

                    
	
                        
                        10.

                    	
                        Upon
                        any material breach of this Agreement by the Employee, including without
                        limitation reneging on or making challenges to any waivers, the Employee
                        agrees that the obligation of the Employer to make payments or provide
                        benefits pursuant to Section 4.5 of the Employment Agreement shall
                        immediately terminate, provided, however, the Employer first gives written
                        notice to Employee of the alleged breach and the Employer’s basis for
                        believing there has been a breach, including the source of the
                        Employer’s information and a brief description of the actions
                        believed to constitute a breach, and a reasonable opportunity for Employee
                        to cure the breach.

                    

            3

            

            

            

            	
                         

                    	
                         

                    
	
                        
                        11.

                    	
                        The
                        terms and conditions of this Agreement shall be binding upon the Employee,
                        his heirs, executors, administrators, successors and assigns and shall
                        enure to the benefit of the Employer.

                    
	
                         

                    	
                         

                    
	
                        
                        12.

                    	
                        This
                        Agreement may not be changed orally, and no modification, amendment or
                        waiver of any of the provisions contained in this Agreement shall be
                        binding upon the Employee unless made in writing and signed by both the
                        Employer and the Employee.

                    
	
                         

                    	
                         

                    
	
                        
                        13.

                    	
                        The
                        Employee agrees to cooperate fully and to execute any and all supplementary
                        documents and to take all additional actions that may be necessary or
                        appropriate to give full force to the basic terms and intent of this
                        Agreement and which are not inconsistent with its terms.

                    
	
                         

                    	
                         

                    
	
                        
                        14.

                    	
                        The
                        Employee hereby acknowledges having read this Agreement and having had the
                        opportunity to discuss it with Employee’s attorney, and specifically
                        declares that he understands and is satisfied with the terms and conditions
                        hereof and that his signature hereto shall bind him to all of the terms and
                        conditions herein contained. The Employee acknowledges further that it is
                        not the custom of Employer to pay severance in the amounts set forth in
                        Section 4.5 of the Employment Agreement, and that the amounts set forth in
                        Section 4.5 of the Employment Agreement arise solely out of the Employment
                        Agreement and this Agreement and are in consideration for Employee’s
                        promises set forth herein, and that this obligation does not arise out of
                        any agreement with or obligation of Employer other than the Employment
                        Agreement and this Agreement.

                    
	
                         

                    	
                         

                    
	
                        
                        15.

                    	
                        
                        Except as set forth in
                        the Employment Agreement, no other monies shall be paid to the
                        Employee.

                    
	
                         

                    	
                         

                    
	
                        
                        16.

                    	
                        
                        Employee agrees that he
                        will not apply or otherwise seek employment with the Employer, and that its
                        officers, employees, agents and representatives have no obligation to
                        rehire, reemploy, recall or hire him in the future.

                    
	
                         

                    	
                         

                    
	
                        
                        17.

                    	
                        
                        Employee represents
                        that he is not aware at the time of signing this Agreement of any ailment,
                        illness or any other malady which arose from or is related to employment
                        with the Employer.

                    
	
                         

                    	
                         

                    
	
                        
                        18.

                    	
                        
                        Words in the masculine
                        gender shall include the feminine.

                    
	
                         

                    	
                         

                    
	
                        
                        19.

                    	
                        For
                        purposes of this Agreement, references made to Employer shall include
                        E-Z-EM, Inc., its divisions, subsidiaries and affiliates, its successors
                        and assigns and their respective shareholders, officers, directors,
                        employees, agents and representatives.

                    

            PLEASE READ
            CAREFULLY. THIS AGREEMENT IS A LEGAL DOCUMENT AND INCLUDES A RELEASE BY THE EMPLOYEE OF
            ALL KNOWN AND UNKNOWN CLAIMS, AS DETAILED IN THIS AGREEMENT, THAT EMPLOYEE MAY HAVE AT
            THE TIME OF SIGNING OF THIS AGREEMENT.

            4

            

            

            

            EMPLOYEE
            ACKNOWLEDGES AND AGREES THAT HE:

            	
                         

                    	
                         

                    
	
                        
                        •

                    	
                        
                        HAS HAD THE
                        OPPORTUNITY TO TAKE A FULL TWENTY-ONE (21) DAYS WITHIN WHICH TO CONSIDER
                        THIS AGREEMENT BEFORE EXECUTING IT.

                    
	
                         

                    	
                         

                    
	
                        
                        •

                    	
                        
                        HAS CAREFULLY READ
                        AND FULLY UNDERSTANDS ALL OF THE PROVISIONS OF THIS
                        AGREEMENT.

                    
	
                         

                    	
                         

                    
	
                        
                        •

                    	
                        
                        IS, THROUGH THIS
                        AGREEMENT, RELEASING THE RELEASEES FROM ANY AND ALL CLAIMS HE MAY HAVE
                        AGAINST THE RELEASEES AS MORE FULLY SET FORTH ABOVE.

                    
	
                         

                    	
                         

                    
	
                        
                        •

                    	
                        
                        KNOWINGLY AND
                        VOLUNTARILY AGREES TO ALL OF THE TERMS SET FORTH IN THIS
                        AGREEMENT.

                    
	
                         

                    	
                         

                    
	
                        
                        •

                    	
                        
                        KNOWINGLY AND
                        VOLUNTARILY INTENDS TO BE LEGALLY BOUND BY THE SAME.

                    
	
                         

                    	
                         

                    
	
                        
                        •

                    	
                        
                        WAS ADVISED AND
                        HEREBY IS ADVISED IN WRITING TO CONSIDER THE TERMS OF THIS AGREEMENT AND TO
                        CONSULT WITH AN ATTORNEY OF HIS CHOICE PRIOR TO EXECUTING THIS
                        AGREEMENT.

                    
	
                         

                    	
                         

                    
	
                        
                        •

                    	
                        
                        HAS A FULL SEVEN (7)
                        DAYS FOLLOWING THE EXECUTION OF THIS AGREEMENT TO REVOKE THE WAIVER AND
                        RELEASE SET FORTH IN THIS AGREEMENT, IN WHICH CASE THIS AGREEMENT SHALL BE
                        NULL AND VOID.

                    
	
                         

                    	
                         

                    
	
                        
                        •

                    	
                        
                        UNDERSTANDS THAT
                        RIGHTS OR CLAIMS THAT MAY ARISE AFTER THE EFFECTIVE DATE OF THIS AGREEMENT,
                        INCLUDING WITHOUT LIMITATION CLAIMS UNDER THE AGE DISCRIMINATION IN
                        EMPLOYMENT ACT, ARE NOT WAIVED.

                    

            THE EMPLOYEE
            DECLARES UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF NEW YORK THAT THE
            FOREGOING IS TRUE AND CORRECT.

            5

            

            

            

            IN WITNESS
            WHEREOF, the Employee has duly executed this Agreement as of the date set forth
            above, intending that the Employer should rely hereon.

            
            Employee:

            	
                         

                    	
                         

                    	
                         

                    
	
                        

                    	
                         

                    
	
                        
                        Anthony A.
                        Lombardo

                    	
                         

                    
	
                         

                    	
                         

                    
	
                        
                        Witness:

                    	
                         

                    	
                         

                    
	
                         

                    	
                        

                    	
                         

                    
	
                         

                    	
                        
                             (signature)

                    	
                         

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        

                    	
                         

                    
	
                         

                    	
                        
                             (print
                        name of witness)

                    	
                         

                    

            6Exhibit 10.4(z)

    
      

    

     

    Exhibit
      10.4(z)

     

     

     

    

      

       

      

       

      FOURTH
        AMENDMENT AGREEMENT

       

      THIS
        FOURTH AMENDMENT AGREEMENT (hereinafter
        referred to as this “Agreement”) is made and entered into as of June 29, 2007,
        by and between INNOTRAC
        CORPORATION,
        a Georgia corporation (hereinafter referred to as “Borrower”), and WACHOVIA
        BANK, NATIONAL ASSOCIATION
        (hereinafter referred to as “Bank”). 

       

      BACKGROUND
        STATEMENT

       

      A.    Borrower
        and Bank are parties to that certain Third Amended and Restated Loan and
        Security Agreement dated March 28, 2006 (as previously amended, the “Loan
        Agreement”). Capitalized terms used herein, unless otherwise defined, shall have
        the meanings ascribed to them in the Loan Agreement. 

       

      B.    The
        Borrower has requested that the Bank amend certain provisions of the Loan
        Agreement as hereinafter set forth and the Bank has agreed, subject to all
        of
        the terms and conditions set forth below.

       

      AGREEMENT

       

      FOR
        AND IN CONSIDERATION of the sum of Ten and No/100 Dollars ($10.00), the
        foregoing recitals, and other good and valuable consideration, the receipt
        and
        sufficiency of which are hereby acknowledged, Borrower and Bank do hereby
        agree
        as follows:

       

      1.    Amendments.
        Upon the satisfaction of the conditions precedent set forth in paragraph
        9
        below, the Loan Agreement is amended as set forth below.

       

      (a)    The
        following new definitions are hereby added to Section 1.1 of the Loan Agreement
        in alphabetical order as follows:

       

      "Eligible
        Unbilled Accounts"
        means Accounts which are Eligible Accounts (including, without limitation,
        under
        clause (t) of the definition of Eligible Accounts from time to time) with
        the
        sole exception that an invoice for the sale of the relevant Inventory (or
        provision of services) has not yet been rendered to the relevant Account
        Debtor.

       

      "Unbilled
        Accounts Eligibility Notice"
        means, without obligating Bank to do so, a written notice sent by Bank, in
        the
        exercise of its sole discretion, to Borrower informing Borrower that Bank
        has
        agreed to include Eligible Unbilled Accounts in the Borrowing Base in accordance
        with the terms of this Agreement, as more fully set forth in the definition
        of
        Borrowing Base in this Agreement.

       

      (b)    The
        definition of "Availability Reserve" contained in Section 1.1 of the Loan
        Agreement is hereby amended and restated in its entirety as
        follows:

       

      "Availability
        Reserve"
        means $500,000; provided, however, upon the earlier to occur of (x) December
        31,
        2007, or (y) the date of the Bank's delivery to Borrower of an Unbilled Accounts
        Eligibility Notice, then, upon such earlier date, such $500,000 amount shall
        be
        increased to $2,000,000 on and after such date.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      (c)    The
        definition of "Borrowing Base" contained in Section 1.1 of the Loan Agreement
        is
        hereby amended and restated in its entirety as follows:

       

      "Borrowing
        Base"
        means, on any date of determination thereof, an amount equal to:

       

      (i)       
        up
        to 85% of the total amount of Eligible Accounts, plus 

       

      (ii)      
        without
        requiring Bank to so send any such notice, upon Bank sending Borrower an
        Unbilled Accounts Eligibility Notice, in the exercise of Bank's sole discretion
        (which sole discretion shall include, without limitation, Bank's prior
        satisfaction in all respects as to Borrower's ability to report information
        concerning Eligible Unbilled Accounts to Bank from time to time and with
        such
        frequency as may be required by the Bank), then, in such event, but solely
        during the period from June 30, 2007, though and including December 31, 2007,
        the lesser of (a) $3,000,000 or (b) up to 50% of the total amount of Eligible
        Unbilled Accounts, plus 

       

      (iii)     
        up
        to 75% of the Fair Market Value of the Eligible Pledged Securities Collateral,
        plus

       

      (iv)     
        the
        lesser of (a) $1,000,000 or (b) up to 50% of the total amount of Eligible
        Inventory; minus 

       

      (v)      
        any
        Reserves.

       

      (d)    Section
        8.1(n) of the Loan Agreement is hereby amended and restated in its entirety
        as
        follows:

       

      (n)    Either
        or both of the following shall occur: (1) Scott D. Dorfman shall (i) fail
        to
        deliver to Bank an executed and delivered Control Agreement granting the
        Bank
        sole control over, and a sole, first priority and perfected security interest
        in, securities account no. 614-443409 (or its successor account no.) maintained
        with Fidelity Brokerage Service LLC and its affiliates (the "Controlled
        Account") on or before July 13, 2007, (ii) permit any party to acquire control
        over, or otherwise obtain a security interest in, any other Pledged Securities
        Collateral, (iii) fail to maintain at all times a Fair Market Value of all
        Pledged Securities Collateral equal to at least $1,800,000; provided, however,
        to the extent trades are permitted under the Dorfman Security Agreement or
        any
        applicable Control Agreement at such time, during any period not exceeding
        10
        days, it shall not constitute an Event of Default in the event that the Fair
        Market Value of all Pledged Securities Collateral is less than $1,800,000
        solely
        as a result of any such trade or settlement with respect to any Pledged
        Securities Collateral, (iv) fail to maintain at all times a Fair Market Value
        of
        the Pledged Securities Collateral in the Controlled Account equal to at least
        $1,100,000 or (v) on a fully diluted basis, cease to control, with sole power
        to
        vote, at least 40% of each class of voting stock or other equity or income
        interests of Borrower, or (2) the individual holding the position of chief
        financial officer of the Borrower is no longer employed in such position
        and
        Borrower shall not have replaced such individual within 60 days thereafter
        with
        a new chief financial officer acceptable to the Bank.

       

      2.    Acknowledgments
        and Stipulations.
        Borrower hereby acknowledges, stipulates, and agrees: (a) that (i) the total
        outstanding principal balance of the Revolver Loans on the date of this
        Agreement is due and owing, in accordance with the terms of the Loan Agreement
        and the Revolver 

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Note,
        without any defense, counterclaim, deduction, recoupment or offset and (ii)
        to
        the extent that Borrower has any defense, counterclaim, deduction, recoupment
        or
        offset with respect to the payment by the Borrower of the Obligations or
        the
        payment or performance of Borrower of its obligations under the terms of
        any
        Loan Agreement to which it is a party, the same is hereby waived; (b) the
        Loan
        Documents executed by the Borrower are legal, valid, and binding obligations
        enforceable against the Borrower in accordance with their terms (subject
        to
        bankruptcy, insolvency, reorganization, arrangement, moratorium, or other
        similar laws relating to or affecting the rights of creditors generally and
        general principles of equity) and (c) in paragraph 2(b) of that certain Second
        Waiver and Amendment Agreement executed in April 2007, by and among the parties
        hereto, in the introductory clause of such paragraph 2(b), the reference
        to
        "definition of 'Availability Reserve'" is amended to read "each definition
        of
        'Applicable Margin' and 'Availability Reserve'". 

       

      3.    Representations
        and Warranties.
        Borrower represents and warrants that (a) no Default or Event of Default
        exists
        under the Loan Documents; (b) the representations and warranties of Borrower
        contained in the Loan Documents were true and correct in all material respects
        when made and continue to be true and correct in all material respects on
        the
        date hereof; (c) the execution, delivery, and performance by Borrower of
        this
        Agreement and the consummation of the transactions contemplated hereby are
        within the power and authority of Borrower and have been duly authorized
        by all
        necessary corporate action on the part of Borrower, do not require any
        governmental approvals, do not violate any provisions of any applicable law
        or
        any provision of the organizational documents of Borrower, and do not result
        in
        a breach of or constitute a default under any agreement or instrument to
        which
        Borrower are parties or by which they or any of their properties are bound;
        (d)
        this Agreement constitutes the legal, valid, and binding obligation of Borrower,
        enforceable against Borrower in accordance with its terms (subject to
        bankruptcy, insolvency, reorganization, arrangement moratorium or other similar
        laws relating to or affecting the rights of creditors generally and general
        principles of equity); and (e) Borrower has freely and voluntarily agreed
        to the
        releases and undertakings set forth in this Agreement.

       

      4.    Relationship
        of Parties.
        This Agreement is not intended, nor shall it be construed, to create a
        partnership or joint venture relationship between or among any of the parties
        hereto. No Person other than a party hereto is intended to be a beneficiary
        hereof, and no Person other than a party hereto shall be authorized to rely
        upon
        or enforce the contents of this Agreement.

       

      5.    No
        Novation.
        This Agreement is not intended to be, nor shall it be construed to create,
        a
        novation or accord and satisfaction, and the Loan Agreement and the other
        Loan
        Documents are hereby ratified and affirmed and remain in full force and effect.
        Notwithstanding any prior mutual temporary disregard of any of the terms
        of any
        of the Loan Documents, the parties agree that the terms of each of the Loan
        Documents shall be strictly adhered to on and after the date hereof, except
        as
        expressly modified by this Agreement.

       

      6.    Bank's
        Amendment Fee; Reimbursement of Expenses.
        Borrower agrees to pay Bank a fully earned and non-refundable amendment fee
        on
        the date of this Agreement in immediately available funds in the amount of
        $5,000.00 (the "Amendment Fee"). Borrower agrees to reimburse the Bank, on
        demand, for any costs and expenses, including, without limitation, legal
        fees,
        incurred by Bank in connection with the drafting, negotiation, execution,
        closing and execution of the transactions contemplated by this
        Agreement.

       

      7.    Release.
        To induce the Bank to enter into this Agreement, Borrower hereby releases,
        acquits, and forever discharges Bank and its respective officers, directors,
        attorneys, agents, employees, successors, and assigns, from all liabilities,
        claims, demands, actions, or causes of action of any kind (if there be any),
        whether absolute or contingent, due or to become due, disputed or undisputed,
        liquidated or unliquidated, at law or in equity, or known or unknown, that
        any
        one or more of them now have or, prior 

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      to
        the date hereof, ever have had against Bank, whether arising under or in
        connection with any of the Loan Documents or otherwise, and Borrower covenants
        not to sue at law or at equity Bank with respect to any of the foregoing
        liabilities, claims, demands, actions, or causes of action (if there be any).
        Borrower hereby acknowledges and agrees that the execution of this Agreement
        by
        Bank shall not constitute an acknowledgment of or admission by Bank of the
        existence of any claims or of liability for any matter or precedent upon
        which
        any claim or liability may be asserted. Borrower further acknowledges and
        agrees
        that, to the extent any such claims may exist, they are of a speculative
        nature
        so as to be incapable of objective valuation and that, in any event, the
        value
        to Borrower of the agreements of Bank contained in this Agreement and any
        other
        documents executed and delivered in connection with this Agreement substantially
        and materially exceeds any and all value of any kind or nature whatsoever
        of any
        such claims. Borrower further acknowledges and agrees Bank is in no way
        responsible or liable for the previous, current or future condition or
        deterioration of the business operations and/or financial condition of Borrower
        and that Bank has not breached any agreement or commitment to loan money
        or
        otherwise make financial accommodations available to Borrower or to fund
        any
        operations of Borrower at any time. Borrower represents and warrants to Bank
        that Borrower has not transferred or assigned to any Person any claim, demand,
        action or cause of action that Borrower has or ever had against Bank.

       

      8.    Miscellaneous.
        This Agreement and the Loan Documents constitute the entire understanding
        of the
        parties with respect to the subject matter hereof and thereof; may not be
        modified, altered, or amended except by agreement in writing signed by all
        the
        parties hereto; shall be governed by and construed in accordance with the
        internal laws of the State of Georgia; shall be binding upon and inure to
        the
        benefit of the parties hereto and their respective successors and assigns;
        and
        may be executed and then delivered via facsimile transmission, via the sending
        of PDF or other copies thereof via email and in one or more counterparts,
        each
        of which shall be an original but all of which taken together shall constitute
        one and the same instrument. Time is of the essence of this Agreement. A
        default
        by Borrower under this Agreement shall constitute a Default and Event of
        Default
        under the Loan Agreement and the other Loan Documents. This Agreement is
        a Loan
        Document.

       

      9.    Conditions
        Precedent.
        This Agreement shall become effective only upon (i) payment by Borrower to
        Bank
        of the Amendment Fee in immediately available funds and (ii) execution and
        delivery of this Agreement by all parties hereto.

       

      [signatures
        set forth on the next page]

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF, this Agreement has been duly executed and under seal by
        Borrower and Bank, as of the day and year first above written.

       

       

       

      
        	 	
                BORROWER:

                 

                INNOTRAC
                  CORPORATION, a Georgia corporation (SEAL)

                 

                

                 

                By:_/s/
                  Scott D. Dorfman___________________________

                Scott
                  D. Dorfman, President

                 

                BANK:

                 

                

                 

                WACHOVIA
                  BANK, NATIONAL ASSOCIATION

                 

                

                 

                By:_/s/
                  Jeanette Childress___________________________

                Jeanette
                  Childress, Director

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