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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNITED
      STATES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>WASHINGTON,
      DC 20549</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>FORM
      8-K</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT PURSUANT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>TO
      SECTION 13 OR 15(D) OF THE</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      EXCHANGE ACT OF 1934</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
      report (Date of earliest event reported)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>April
      19, 2006</u></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>iCAD,
      INC.</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      Name of Registrant as Specified in Its Charter)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Delaware
      </u></font></div>
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      or
      Other Jurisdiction</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of
      Incorporation)</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission
                  File Number)</font></div>
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              <td valign="top" width="37%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                  Employer Identification No.)</font></div>
              </td>
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            <tr>
              <td valign="top" width="37%">&#160;</td>
              <td valign="top" width="37%">&#160;</td>
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                  Townsend West, Suite 17, Nashua, New Hampshire</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">03063</font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="37%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
                  of Principal Executive Offices)</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Zip
                  Code)</font></div>
              </td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(603)
      882-5200</font>&#160;&#160;</div>
    <div>
      <hr style="COLOR: black" align="left" noshade size="2" width="100%">
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant&#8217;s
      Telephone Number, Including Area Code)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
      Name or Former Address, if Changed Since Last Report)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>see
      </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General
      Instruction A.2. below):</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font></div>
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    <div><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      1.01. Entry into a Material Definitive Agreement.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><strong><font size="2">Item
      3.02.&#160; Unregistered Sales of Equity
      Securities.</font></strong></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April
      19, 2006, iCAD, Inc (the &#8220;Company&#8221;) entered into an employment agreement with
      Kenneth Ferry that provides for Mr. Ferry&#8217;s employment as the Company&#8217;s Chief
      Executive Officer and President for a term commencing on May 15, 2006 and
      expiring on December 31, 2008, subject to automatic one-year renewals after
      the
      expiration of the initial term under certain conditions, at an annual base
      salary of $300,000. </font><a name="tx34394_11"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      agreement also provided for Mr. Ferry to receive a signing bonus of $35,000
      and
      for his eligibility to receive during each employment year during the term
      of
      the Agreement an annual incentive bonus (&#8220;Incentive Bonus&#8221;) in each calendar
      year of up to $100,000 (except for the 2006 fiscal year where the Incentive
      Bonus will not be less than $50,000) if the Company achieves goals and
      objectives mutually agreed upon by the Board and Mr. Ferry. </font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Ferry
      is also entitled to customary benefits, including participation in employee
      benefit plans, and reasonable travel and entertainment expenses as well as
      a
      monthly automobile allowance. The employment agreement provides that if his
      employment is terminated without cause, Mr. Ferry will receive an amount equal
      to his base salary then in effect for the greater of the remainder of his
      original term of employment or one (1) year plus the pro rata portion of any
      Incentive Bonus earned in any employment year through the date of his
      termination. In the event that within six months of a &#8220;change in control&#8221;,
      either (i)&#160;Mr. Ferry is terminated by the Company without &#8220;cause&#8221; or
      (ii)&#160;he terminates his agreement for &#8220;good reason,&#8221; as all such terms are
      defined in the employment agreement, he will be entitled to receive his base
      salary then in effect for the greater of the remainder of his original term
      of
      employment or two (2) years from the date of termination plus any Incentive
      Bonus which otherwise would have been payable to him for any employment year
      in
      which the date of his termination occurred.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the agreement and as an inducement to his joining the Company,
      Mr.&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ferry
      was
      also granted on April 19, 2006 </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-Qualified
      Stock Options outside of a shareholder approved plan to purchase 800,000 shares
      of the Company's common stock, par value $0.01 per share, with an exercise
      price
      equal to $1.59, the closing sale price of the common stock on April 17, 2006,
      which was the employment inducement date. The options become exercisable as
      to
      (i)&#160;160,000 shares&#160;on May&#160;15, 2006, (ii)&#160;an additional
      160,000 shares on December&#160;31, 2006; (iii)&#160;an additional 160,000
      shares on May&#160;15, 2007; (iv)&#160;an additional 160,000 shares on
      May&#160;15, 2008 and (v)&#160;an additional 160,000 shares on May&#160;15,
      2009. Vesting of the options accelerates as to the 160,000 shares to which
      the
      options become exercisable at the latest date (to the extent any such shares
      remain unvested at the time), upon the closing sale price of the Company&#8217;s
      common stock for a period of twenty&#160;(20) consecutive trading days exceeding
      (i)&#160;200% of the exercise price of the per share of the options;
      (ii)&#160;300% of the exercise price per share of the options or (iv) 400% of
      the exercise price per share of the options. The options expire on
      March&#160;15, 2011, subject to earlier expiration under certain conditions. The
      unvested portion of these options will automatically vest if Mr. Ferry&#8217;s
      employment is terminated without cause within six (6) months of a change in
      control. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April&#160;19, 2006, the Company entered into an employment agreement with
      Jeffrey Barnes that provides for Mr. Barnes&#8217; employment as the Company&#8217;s Senior
      Vice President of Sales for a term commencing on May&#160;15, 2006 and expiring
      on December&#160;31, 2006 subject to automatic one year renewals at the end of
      the initial term, subject to certain conditions, at an annual base salary of
      $185,000. The agreement also provided for Mr.&#160;Barnes to receive a signing
      bonus of $20,000 and for his eligibility to receive during each employment
      year
      during the term of the Agreement an annual Incentive Bonus in each calendar
      year
      of up to $74,000 (except for the 2006 fiscal year where the Incentive Bonus
      will
      not be less than $37,000) if the Company achieves goals and objectives mutually
      agreed upon by the Board and Mr. Barnes. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Barnes is also entitled to customary benefits, including participation in
      employee benefit plans and reasonable travel and entertainment expenses. The
      employment agreement provides that if his employment is terminated without
      cause, Mr. Barnes will receive an amount equal to his base salary then in effect
      for the greater of the remainder of his original term of employment or one
      (1)
      year from the date of termination plus the pro rata portion of any Incentive
      Bonus earned in any employment year through the date of his termination. In
      the
      event that within three months of a &#8220;change in control&#8221; either (i)&#160;Mr.
      Barnes is terminated by the Company without &#8220;cause&#8221; or (ii)&#160;he terminates
      his agreement for &#8220;good reason,&#8221; as all such terms are defined in the employment
      agreement, he will be entitled to receive his base salary then in effect for
      the
      greater of the remainder of his original term of employment or one (1) year
      from
      the date of termination plus any Incentive Bonus which otherwise would have
      been
      payable to him for any employment year in which the date of his termination
      occurred.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the agreement </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
      as an
      inducement to his joining the Company, Mr.&#160;Barnes was also granted on April
      19, 2006 </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-Qualified
      Stock Options outside of a shareholder approved plan to purchase 225,000 shares
      of the Company's common stock on, with an exercise price equal to $1.59, the
      closing sale price of the common stock on April 17, 2006. The options become
      exercisable as to (i)&#160;45,000 shares&#160;on May&#160;15, 2006, (ii)&#160;an
      additional 45,000 shares on December&#160;31, 2006; (iii)&#160;an additional
      45,000 shares on May&#160;15, 2007; (iv)&#160;an additional 45,000 shares on
      May&#160;15, 2008 and (v)&#160;an additional 45,000 shares on May&#160;15, 2009.
      Vesting of the options accelerates as to the 45,000 shares to which the options
      become exercisable at the latest date (to the extent any such Shares remain
      unvested at the time), upon the closing sale price of the Company&#8217;s common stock
      for a period of twenty&#160;(20) consecutive trading days exceeding
      (i)&#160;200% of the exercise price of the per share of the option;
      (ii)&#160;300% of the exercise price per share of the options or (iv)&#160;400%
      of the exercise price per share of the options. The options expire on
      March&#160;15, 2011, subject to earlier expiration under certain conditions. The
      unvested portion of these options will automatically vest if Mr.&#160;Barnes&#8217;
employment is terminated without cause within six (6) months of a change in
      control. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        options granted to Mr. Ferry and Mr. Barnes were issued in private transactions
        pursuant to exemptions from registration under Section 2(a)(3) or Section
        4(2)
        of the Securities Act of 1933, as amended. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April&#160;19, 2006 the Company entered into a separation agreement and release
      with W. Scott Parr, its Chief Executive Officer and President, providing for
      his
      resignation from those positions with the Company effective May&#160;15, 2006.
      Pursuant to the agreement Mr.&#160;Parr will receive his current salary through
      May&#160;15, 2006 and a separation payment equal to $480,000 less applicable
      taxes and withholding, payable in 24 monthly installments. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April&#160;19, 2006 the Board agreed to enter into Indemnification agreement
      with each of the Company&#8217;s directors and officers which will provide for the
      Company to Indemnify each of such persons to the fullest extent authorized
      or
      permitted by the Delaware General Corporation law.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      5.02. Departure of Directors or Principal Officers; Election of Directors;
      Appointment of Principal Officers</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April&#160;19, 2006, W. Scott Parr resigned as Chief Executive Officer and
      President of the Company effective May&#160;15, 2006. Mr. Parr will remain as a
      Director of the Company and was appointed by the Board as its Vice Chairman,
      a
      non-officer position. On April 19, 2006, the Board of Directors of
      the&#160;Company appointed Kenneth M. Ferry as the Company&#8217;s President, Chief
      Executive Officer and a Class I member of the Company&#8217;s Board of Directors
      effective May 15, 2006.&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Ferry, age 52, &#160;has over 20 years of experience in the healthcare
      technology field, with more than 10 years experience in senior management
      positions with P&amp;L responsibilities. He was most recently Senior Vice
      President and General Manager for the Global Patient Monitoring business for
      Philips Medical Systems, the market leader in a $2.5 billion industry. In this
      role he was responsible for Research &amp; Development, Marketing, Business
      Development, Supply Chain and Manufacturing, Quality and Regulatory, Finance
      and
      Human Resources. Since 2001, Mr. Ferry was also a Senior Vice President for
      the
      parent company, Philips Electronics Medical Systems Division.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">From
      1983
      to 2001, Mr. Ferry served in a number of management positions with Hewlett
      Packard and Agilent Technologies. As a Vice President and General Manager in
      the
      Hewlett Packard / Agilent Technologies Healthcare Solutions Group, he was one
      of
      the key executives responsible for the sale of Agilent&#8217;s Medical Solutions Group
      to Philips in August 2001. Prior to this, beginning in 1997, he served as Vice
      President and General Manager of North American Field Operations for Hewlett
      Packard and Agilent Technologies. He was responsible for sales, service, and
      marketing for Patient Monitoring, Cardiac Ultrasound, Defibrillation, Diagnostic
      EKG and Information Technology solutions. Mr.&#160;Ferry is a graduate of the
      Boston College School of Management in Newton, Massachusetts.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      description of Mr. Ferry&#8217;s employment agreement contained in Item 1.01 of this
      Form 8-K is incorporated by reference into this Item 5.02. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal
      Year</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April&#160;19, 2006 the Company amended its By Laws as follows:</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Article
      II, Section 2.11 was amended to provide that special meetings of the Company&#8217;s
      shareholders may be called by the Board of Directors or the Secretary at the
      request in writing of holders of a majority of shares entitled to vote at a
      meeting. The prior provision provided that special meetings of shareholders
      could be called by the board or the President or holders of record of a majority
      of the outstanding shares entitled to vote at the meeting. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Article
      III, Section 3.11 was added to provide for the directors to elect a Chairman
      and
      Vice Chairman from its members, to specify that the Chairman, or in the
      Chairman&#8217;s absence, the Vice Chairman, or in the absence of both, a director or
      officer of the Company chosen by the directors shall preside over meetings
      of
      shareholders.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Article
      IV, Section 4.10 was amended to delete the reference to Chairman as an officer
      position.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Article
      IV, Section&#160;4.30 was amended to delete the sentence relating to the duties
      of the Chairman of the Board and the sentence that provided that in the absence
      of the Chairman, the President shall perform all of the duties of the Chairman.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      8.01. Other Events</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April&#160;19, 2006 the panel of arbitrators in the case entitled R2 Technology
      (&#8220;R2&#8221;) and Shih-Ping Wang vs. iCAD, Inc. rejected all of the claims of R2 ,
      finding that the Company did not infringe any patent asserted by R2. The
      arbitrators also found that R2 did not infringe any of the Company&#8217;s
      patents.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>9.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
      Statements and Exhibits.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
      3(ii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendment
      dated April 19, 2006 to the Company&#8217;s Bylaws</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this report to be signed on its behalf by the undersigned thereunto
      duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td colspan="2">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">iCAD,
                INC.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Registrant)</font></div>
            </td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td>&#160;</td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/&#160;Annette
              Heroux</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="FONT-FAMILY: " size="1">&#160;</font></td>
            <td align="left">
              <hr style="COLOR: black" align="left" noshade size="2" width="80%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Annette
                Heroux</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vice
                President of Finance, Chief Financial Officer</font></div>
            </td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td>&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" colspan="2" valign="top" width="43%">&#160;</td>
          </tr>
          <tr>
            <td align="left" colspan="2" valign="top" width="43%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:&#160;&#160;April
                25, 2006</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div><br>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXHIBIT
      INDEX</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div align="center">
        <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="white">
              <td width="10%"><u><font size="2">Exhibit No.</font></u></td>
              <td width="2%">&#160;</td>
              <td width="88%"><u><font size="2">Description of Document</font></u></td>
            </tr>
            <tr bgcolor="white">
              <td width="10%">&#160;</td>
              <td width="2%">&#160;</td>
              <td width="88%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="10%"><u><font size="2">3.ii</font></u></td>
              <td width="2%">&#160;</td>
              <td width="88%"><font size="2">Amendment dated April 19, 2006 to
                the
                Registrant&#8217;s By-Laws. </font></td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB2" style="COLOR: black; LETTER-SPACING: 135pt"></font>&#160;</div>
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        </div>
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{"company-data": {"conformed-name": "ICAD INC", "cik": "0000749660", "assigned-sic": "3577", "irs-number": "020377419", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-09341", "film-number": "06778915"}, "business-address": {"street1": "4 TOWNSEND WEST, SUITE 17", "city": "NASHUA", "state": "NH", "zip": "03063", "phone": "603-882-5200"}, "mail-address": {"street1": "4 TOWNSEND WEST, SUITE 17", "city": "NASHUA", "state": "NH", "zip": "03063"}, "former-company": {"former-conformed-name": "HOWTEK INC", "date-changed": "19920703"}}
Unassociated Document
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
WASHINGTON,
      DC 20549
FORM
      8-K
CURRENT
      REPORT PURSUANT
TO
      SECTION 13 OR 15(D) OF THE
SECURITIES
      EXCHANGE ACT OF 1934
Date
      of
      report (Date of earliest event reported)
April
      19, 2006
iCAD,
      INC.
(Exact
      Name of Registrant as Specified in Its Charter)
Delaware
(State
      or
      Other Jurisdiction
of
      Incorporation)
1-9341
02-0377419
(Commission
                  File Number)
(IRS
                  Employer Identification No.)
4
                  Townsend West, Suite 17, Nashua, New Hampshire
03063
(Address
                  of Principal Executive Offices)
(Zip
                  Code)
(603)
      882-5200
(
Registrant's
      Telephone Number, Including Area Code)
(Former
      Name or Former Address, if Changed Since Last Report)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (
see
General
      Instruction A.2. below):
o
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
o
Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
o
Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))
o
Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))
Item
      1.01. Entry into a Material Definitive Agreement.
Item
      3.02.  Unregistered Sales of Equity
      Securities.
On
      April
      19, 2006, iCAD, Inc (the "Company") entered into an employment agreement with
      Kenneth Ferry that provides for Mr. Ferry's employment as the Company's Chief
      Executive Officer and President for a term commencing on May 15, 2006 and
      expiring on December 31, 2008, subject to automatic one-year renewals after
      the
      expiration of the initial term under certain conditions, at an annual base
      salary of $300,000.
The
      agreement also provided for Mr. Ferry to receive a signing bonus of $35,000
      and
      for his eligibility to receive during each employment year during the term
      of
      the Agreement an annual incentive bonus ("Incentive Bonus") in each calendar
      year of up to $100,000 (except for the 2006 fiscal year where the Incentive
      Bonus will not be less than $50,000) if the Company achieves goals and
      objectives mutually agreed upon by the Board and Mr. Ferry.
Mr.
      Ferry
      is also entitled to customary benefits, including participation in employee
      benefit plans, and reasonable travel and entertainment expenses as well as
      a
      monthly automobile allowance. The employment agreement provides that if his
      employment is terminated without cause, Mr. Ferry will receive an amount equal
      to his base salary then in effect for the greater of the remainder of his
      original term of employment or one (1) year plus the pro rata portion of any
      Incentive Bonus earned in any employment year through the date of his
      termination. In the event that within six months of a "change in control",
      either (i) Mr. Ferry is terminated by the Company without "cause" or
      (ii) he terminates his agreement for "good reason," as all such terms are
      defined in the employment agreement, he will be entitled to receive his base
      salary then in effect for the greater of the remainder of his original term
      of
      employment or two (2) years from the date of termination plus any Incentive
      Bonus which otherwise would have been payable to him for any employment year
      in
      which the date of his termination occurred.
Pursuant
      to the agreement and as an inducement to his joining the Company,
      Mr.
Ferry
      was
      also granted on April 19, 2006
Non-Qualified
      Stock Options outside of a shareholder approved plan to purchase 800,000 shares
      of the Company's common stock, par value $0.01 per share, with an exercise
      price
      equal to $1.59, the closing sale price of the common stock on April 17, 2006,
      which was the employment inducement date. The options become exercisable as
      to
      (i) 160,000 shares on May 15, 2006, (ii) an additional
      160,000 shares on December 31, 2006; (iii) an additional 160,000
      shares on May 15, 2007; (iv) an additional 160,000 shares on
      May 15, 2008 and (v) an additional 160,000 shares on May 15,
      2009. Vesting of the options accelerates as to the 160,000 shares to which
      the
      options become exercisable at the latest date (to the extent any such shares
      remain unvested at the time), upon the closing sale price of the Company's
      common stock for a period of twenty (20) consecutive trading days exceeding
      (i) 200% of the exercise price of the per share of the options;
      (ii) 300% of the exercise price per share of the options or (iv) 400% of
      the exercise price per share of the options. The options expire on
      March 15, 2011, subject to earlier expiration under certain conditions. The
      unvested portion of these options will automatically vest if Mr. Ferry's
      employment is terminated without cause within six (6) months of a change in
      control.
On
      April 19, 2006, the Company entered into an employment agreement with
      Jeffrey Barnes that provides for Mr. Barnes' employment as the Company's Senior
      Vice President of Sales for a term commencing on May 15, 2006 and expiring
      on December 31, 2006 subject to automatic one year renewals at the end of
      the initial term, subject to certain conditions, at an annual base salary of
      $185,000. The agreement also provided for Mr. Barnes to receive a signing
      bonus of $20,000 and for his eligibility to receive during each employment
      year
      during the term of the Agreement an annual Incentive Bonus in each calendar
      year
      of up to $74,000 (except for the 2006 fiscal year where the Incentive Bonus
      will
      not be less than $37,000) if the Company achieves goals and objectives mutually
      agreed upon by the Board and Mr. Barnes.
Mr.
      Barnes is also entitled to customary benefits, including participation in
      employee benefit plans and reasonable travel and entertainment expenses. The
      employment agreement provides that if his employment is terminated without
      cause, Mr. Barnes will receive an amount equal to his base salary then in effect
      for the greater of the remainder of his original term of employment or one
      (1)
      year from the date of termination plus the pro rata portion of any Incentive
      Bonus earned in any employment year through the date of his termination. In
      the
      event that within three months of a "change in control" either (i) Mr.
      Barnes is terminated by the Company without "cause" or (ii) he terminates
      his agreement for "good reason," as all such terms are defined in the employment
      agreement, he will be entitled to receive his base salary then in effect for
      the
      greater of the remainder of his original term of employment or one (1) year
      from
      the date of termination plus any Incentive Bonus which otherwise would have
      been
      payable to him for any employment year in which the date of his termination
      occurred.
Pursuant
      to the agreement
and
      as an
      inducement to his joining the Company, Mr. Barnes was also granted on April
      19, 2006
Non-Qualified
      Stock Options outside of a shareholder approved plan to purchase 225,000 shares
      of the Company's common stock on, with an exercise price equal to $1.59, the
      closing sale price of the common stock on April 17, 2006. The options become
      exercisable as to (i) 45,000 shares on May 15, 2006, (ii) an
      additional 45,000 shares on December 31, 2006; (iii) an additional
      45,000 shares on May 15, 2007; (iv) an additional 45,000 shares on
      May 15, 2008 and (v) an additional 45,000 shares on May 15, 2009.
      Vesting of the options accelerates as to the 45,000 shares to which the options
      become exercisable at the latest date (to the extent any such Shares remain
      unvested at the time), upon the closing sale price of the Company's common stock
      for a period of twenty (20) consecutive trading days exceeding
      (i) 200% of the exercise price of the per share of the option;
      (ii) 300% of the exercise price per share of the options or (iv) 400%
      of the exercise price per share of the options. The options expire on
      March 15, 2011, subject to earlier expiration under certain conditions. The
      unvested portion of these options will automatically vest if Mr. Barnes'
employment is terminated without cause within six (6) months of a change in
      control.
The
        options granted to Mr. Ferry and Mr. Barnes were issued in private transactions
        pursuant to exemptions from registration under Section 2(a)(3) or Section
        4(2)
        of the Securities Act of 1933, as amended.
On
      April 19, 2006 the Company entered into a separation agreement and release
      with W. Scott Parr, its Chief Executive Officer and President, providing for
      his
      resignation from those positions with the Company effective May 15, 2006.
      Pursuant to the agreement Mr. Parr will receive his current salary through
      May 15, 2006 and a separation payment equal to $480,000 less applicable
      taxes and withholding, payable in 24 monthly installments.
On
      April 19, 2006 the Board agreed to enter into Indemnification agreement
      with each of the Company's directors and officers which will provide for the
      Company to Indemnify each of such persons to the fullest extent authorized
      or
      permitted by the Delaware General Corporation law.
Item
      5.02. Departure of Directors or Principal Officers; Election of Directors;
      Appointment of Principal Officers
On
      April 19, 2006, W. Scott Parr resigned as Chief Executive Officer and
      President of the Company effective May 15, 2006. Mr. Parr will remain as a
      Director of the Company and was appointed by the Board as its Vice Chairman,
      a
      non-officer position. On April 19, 2006, the Board of Directors of
      the Company appointed Kenneth M. Ferry as the Company's President, Chief
      Executive Officer and a Class I member of the Company's Board of Directors
      effective May 15, 2006.
Mr.
      Ferry, age 52,  has over 20 years of experience in the healthcare
      technology field, with more than 10 years experience in senior management
      positions with P&L responsibilities. He was most recently Senior Vice
      President and General Manager for the Global Patient Monitoring business for
      Philips Medical Systems, the market leader in a $2.5 billion industry. In this
      role he was responsible for Research & Development, Marketing, Business
      Development, Supply Chain and Manufacturing, Quality and Regulatory, Finance
      and
      Human Resources. Since 2001, Mr. Ferry was also a Senior Vice President for
      the
      parent company, Philips Electronics Medical Systems Division.
From
      1983
      to 2001, Mr. Ferry served in a number of management positions with Hewlett
      Packard and Agilent Technologies. As a Vice President and General Manager in
      the
      Hewlett Packard / Agilent Technologies Healthcare Solutions Group, he was one
      of
      the key executives responsible for the sale of Agilent's Medical Solutions Group
      to Philips in August 2001. Prior to this, beginning in 1997, he served as Vice
      President and General Manager of North American Field Operations for Hewlett
      Packard and Agilent Technologies. He was responsible for sales, service, and
      marketing for Patient Monitoring, Cardiac Ultrasound, Defibrillation, Diagnostic
      EKG and Information Technology solutions. Mr. Ferry is a graduate of the
      Boston College School of Management in Newton, Massachusetts.
The
      description of Mr. Ferry's employment agreement contained in Item 1.01 of this
      Form 8-K is incorporated by reference into this Item 5.02.
Item
      5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal
      Year
On
      April 19, 2006 the Company amended its By Laws as follows:
1)
Article
      II, Section 2.11 was amended to provide that special meetings of the Company's
      shareholders may be called by the Board of Directors or the Secretary at the
      request in writing of holders of a majority of shares entitled to vote at a
      meeting. The prior provision provided that special meetings of shareholders
      could be called by the board or the President or holders of record of a majority
      of the outstanding shares entitled to vote at the meeting.
2)
Article
      III, Section 3.11 was added to provide for the directors to elect a Chairman
      and
      Vice Chairman from its members, to specify that the Chairman, or in the
      Chairman's absence, the Vice Chairman, or in the absence of both, a director or
      officer of the Company chosen by the directors shall preside over meetings
      of
      shareholders.
3)
Article
      IV, Section 4.10 was amended to delete the reference to Chairman as an officer
      position.
4)
Article
      IV, Section 4.30 was amended to delete the sentence relating to the duties
      of the Chairman of the Board and the sentence that provided that in the absence
      of the Chairman, the President shall perform all of the duties of the Chairman.
Item
      8.01. Other Events
On
      April 19, 2006 the panel of arbitrators in the case entitled R2 Technology
      ("R2") and Shih-Ping Wang vs. iCAD, Inc. rejected all of the claims of R2 ,
      finding that the Company did not infringe any patent asserted by R2. The
      arbitrators also found that R2 did not infringe any of the Company's
      patents.
9.01
Financial
      Statements and Exhibits.
(d)
Exhibits
Exhibit
      3(ii)
Amendment
      dated April 19, 2006 to the Company's Bylaws
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this report to be signed on its behalf by the undersigned thereunto
      duly authorized.
iCAD,
                INC.
(Registrant)
By:
/s/ Annette
              Heroux
Annette
                Heroux
Vice
                President of Finance, Chief Financial Officer
Date:  April
                25, 2006
EXHIBIT
      INDEX
Exhibit No.
Description of Document
3.ii
Amendment dated April 19, 2006 to
                the
                Registrant's By-Laws.