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August 14, 2001

Robert L. Aromando, Jr.
22 Homestead Farm Road
Alexandria Township
Milford, New Jersey 08848

Re: Amendment to Employment Contract dated March 8, 2001

Dear Mr. Aromando:

Pursuant to meetings held on July 18, 2001 by the Compensation Committee and the
Board of Directors of American Bio Medica Corporation, we have outlined below
the amended terms and/or conditions of your original contract dated March 8,
2001. Those terms and/or conditions not noted below will remain unchanged from
your original contract.

                                Salary and Bonus

Your base salary will be $15,000 per month, which is equivalent to $180,000 on
an annualized basis. You will be eligible for your first performance and merit
review by the Board of Directors in May 2001; any merit award will be prorated
for your length of service. In addition, you will be issued options to purchase
300,000 common shares of ABMC at an exercise price determined by the closing
market price on your official start date, March 1, 2001. All of your stock
options will vest over a three-year period in annual increments of 33.3% per
year on the anniversary date of the grant. Also, ABMC will provide you with a
monthly car allowance of $750.00, payable on or about the 1st of each month, and
will also provide reimbursement of all business related expenses including, but
not limited to, gas, tolls, emergency repairs while on ABMC business, telephone
etc.

The bonus plan has been set up to provide rewards to you based on achieving
milestones in both the net sales and net income numbers (as set forth in ABMC's
annual audited financial statements) over a period of time. You will be issued
options to purchase 500,000 common shares of ABMC at an exercise price to be
determined by the closing market price on the date the amendment was approved by
the Compensation Committee, July 18, 2001. The stock options will either vest or
will be cancelled and returned to the option plan, based upon company
performance as indicated below.

                    Net           Net        Cash           Stock
Year               Sales        Income      Bonus          Options

FY 02              $15M         $1.5M      $ 50,000       125,000
FY 03              $25M         $5.0M      $250,000       125,000
FY 04              $40M         $7.5M      $500,000       125,000

The remaining 125,000 options will vest in Fiscal Year 05. Performance criteria
for vesting will be visited at a later date but will not include any additional
large option grants.

Payout of cash bonus and stock options will be contingent upon achieving a
minimum of 90% of the stated goals. Cash bonus will be paid and issued no later
than 30 days after the date ABMC's accountants submit the audited financial
statements to the Board of Directors for its review.

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Sincerely,



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Gerald Moore
Director and Chairman of the Compensation Committee

/s/ Stan Cipkowski
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Stan Cipkowski
President


Accepted this 14th day of August, 2001 by:

/s/ Robert L. Aromando Jr.
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Robert L. Aromando, Jr.
Chief Executive Officer