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                                                                  EXHIBIT 10.12


March 8, 2001

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

Dear Mr. Aromando:

It is our pleasure to formally offer you the position of Chief Executive Officer
for American Bio Medica Corporation (ABMC), reporting directly to the Board of
Directors of ABMC. Your position will be co-located between our Kinderhook
facility and our New Jersey office. Below, we have outlined the major terms and
conditions of this offer for your new position.


TERM

Your employment with ABMC will be for a term of one year, automatically renewed
unless either side gives advance notice of 60 days.

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 300,000 stock
options of ABMC at 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, as indicated below.

                            NET        NET      CASH           STOCK
YEAR                       SALES     INCOME     BONUS        OPTIONS
FY 01                      $10.5M    B/E       $      0       50,000
FY 02                      $15M      $1.5M     $ 50,000      100,000
FY 03                      $25M      $  5M     $250,000      250,000
FY 04                      $40M      $7.5M     $500,000      500,000


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Fiscal Year 05 to 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 and stock options 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. Stock
options will be issued at the closing market price of the common shares on the
date of issuance and vest over a four-year period in annual increments of 25%
per year on the anniversary date of the grant.

BENEFITS

At present time ABMC medical benefits program may not be sufficient to meet your
current family needs, however the existing program will be made available to
your if you elect to participate. In the event you determine the ABMC program to
be insufficient, you will have the option of continuing your coverage from your
existing employer (Covance) once you have separated, for the permitted time
under the law. The cost of this coverage will be paid by ABMC, less the current
dollar contribution under your obligation. At the expiration of that period, or
before, you may initiate in your position a new medical benefits program for all
ABMC employees. In addition, ABMC does not offer a personal life insurance
program at this time, however, ABMC will reimburse you for 75% of the annual
cost of such a policy that you may secure through your current insurance
carrier.

Other benefits include:

-    20 vacation days
-    Usual corporate holidays
-    2 personal days
-    401 (k)


SEVERANCE

In the unlikely event that the Board of Directors of ABMC elects to terminate
your employment for anything other than cause, (defined as commission of a crime
(other than minor traffic offenses), acts of dishonesty, fraud of malfeasance in
connection with your service on behalf of the Company, gross dereliction of
duty, willful failure to carry out any lawful directive of the Board of
Directors, or material violations of Company policies) you will receive
severance pay equal to twelve (12) months of your current base salary at the
time of separation, with continuation of all medical benefits during the
twelve-month period. The severance payment will be made under the current pay
cycle, each pay period, during the 12 months.


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Additionally, you may elect to exercise this severance provision at your option
under the following circumstances:

-    If you are required to relocate by the Board of Directors of ABMC as a
     condition of continued employment
-    A substantial change in responsibilities at the direction of the Board of
     Directors of the responsibilities normally assumed by a president and chief
     executive officer (i.e., demotion)
-    Change in control of the Company, (i.e., if the Company is acquired wholly
     or if another corporate entity becomes the controlling shareholder)

SIGN-ON BONUS

You will receive a sign-on bonus in the amount of $25,000. This will be paid in
the first full payroll cycle after your employment begins. If you voluntarily
terminateyour employment within one (1) year, the net amount of your sign-on
bonus will be subject to repayment according to the following schedule:

               Less than 6 months' services with ABMC - 100%
               6 months' to 1 year's service with ABMC - 50%

This payment will be deducted from your final pay. You will be responsible for
repaying any outstanding balance to ABMC within thirty (30) days of separation.

RESTRICTIVE COVENANTS

     Non-Solicitation

During the twelve (12) months immediately following your termination from
employment with ABMC for any reason, you agree that:

-    you will not, directly or indirectly, accept or solicit in any manner or
     capacity whatsoever, including by way of illustration, but not limitation,
     call upon, mail or e-mail notices to, or make telephone calls to, any
     Customer (defined below) or Customer Prospect (defined below) of ABMC, for
     the purpose of selling any Covered Services (defined below) or engaging in
     any business which directly or indirectly competes with ABMC.

-    you will not solicit, endeavor to entice away from ABMC, or otherwise
     interfere with the relationship of ABMC with any person who is employed
     (or, but for any violation of this agreement, would have been employed) by
     or otherwise engaged to perform services for ABMC, whether for your own
     account or for the account of any other person or entity.




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     CONFIDENTIALITY

You agree not to disclose any Confidential Information (defined below) and you
promise to take all reasonable precautions to prevent its unauthorized
dissemination, both at all times during your employment with ABMC and after your
employment. You agree to limit the disclosure of any Confidential Information to
only those employees and agents of ABMC who have a need to know the information
and who have similarly agreed to keep such information confidential.

You further agree not to use any Confidential Information for your own benefit
of for the benefit of anyone other than ABMC. You acknowledge that all
Confidential Information is and remains the property of ABMC and that no license
or rights in the Confidential Information has been or is granted to you.

               "Confidential Information" means and includes all information
               relating to marketing, advertising, public relations,
               development, services, trade secrets, trade "know-how," business
               plans, Customer (as defined below) and Customer Prospect (as
               defined below) lists, distributor lists, Customers and Customer
               Prospects information, distributor information, financial date,
               personnel date, employee compensation and benefits information,
               new personnel acquisition plans, details of contracts, pricing
               policies, operational methods, marketing plans or strategies,
               service development techniques or plans, business acquisition or
               investment plans, or other confidential and proprietary
               information related to the business or affairs of ABMC and its
               Customers or Customer Prospects.

               The term "Customer" means any person or entity for which ABMC
               performed any Covered Services during the one (1) year period
               immediately preceding the termination of your employment with
               ABMC for any reason whatsoever.

               "Customer Prospect" means any person or entity to which ABMC made
               a new business presentation or proposal related to Covered
               Services during the one (1) year period immediately preceding the
               termination of your employment with ABMC for any reason
               whatsoever.

               "Covered Services" means any services or products of whatever
               kind or character offered or provided by ABMC to any Customer.


               ENFORCEMENT

If any of provision of the restrictive covenants shall be held invalid or
unenforceable, the remainder nevertheless shall remain in full force and effect.
If any provision is held


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invalid or unenforceable with respect to particular circumstances, it
nevertheless shall remain in full force and effect in al other circumstances.

If, in connection with any action taken by ABMC to enforce the provisions of the
restrictive covenants of this agreement, a court shall hold that all or any
portion of the restrictions contained therein a re unreasonable under the
circumstances then existing so as to render such restrictions invalid or
unenforceable, the parties agree that any court of competent jurisdiction may
reform such unreasonable restrictions to the extent necessary to make such
restrictions reasonable under the circumstances then existing so as to render
such restrictions both valid and enforceable.

You agree to indemnify, save and hold harmless ABMC from and against any and all
claims, damages, losses, costs and expenses (including reasonable attorneys'
fees) incurred by ABMC arising out a any action to enforce the terms of the
restrictive covenants of this agreement.


OTHER EMPLOYMENT INFORMATION

In making this offer of employment, ABMC has relied on your representations
that: (a) you are not currently a party to any contract of employment that might
impede your ability to accept this offer or to perform the services completed
thereby; and (b) that you are not subject to any non-competition arrangement or
other restrictive covenants that might restrict your employment at ABMC as
contemplated by this offer.

EXCLUSIVE SERVICE

You will perform services exclusively for ABMC and you will not perform services
for any other entities during the term of this agreement.

Bob, we are enthusiastic about you joining ABMC and our expectation is that you
will make a tremendous contribution to our long-term success.

Sincerely


/s/ Gerald Moore
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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 8th day of March, 2001 by:

/s/ Robert L. Aromando, Jr.
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Robert L. Aromando, Jr.