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                                                                  EXHIBIT 10.11


                            [Brean Murray Letterhead]


                          FINANCIAL ADVISORY AGREEMENT
                          ----------------------------


                                   May 2, 2001

American Bio Medica Corporation
122 Smith Road
Kinderhook, New York 12106

Attention:     Stan Cipkowski
               President

Gentlemen:

     This will confirm that Brean Murray & Co., Inc. ("Brean Murray") has been
retained as a financial advisor to American Bio Medica Corporation (the
"Company") to perform such financial consulting services as the Company may
reasonably request. The term of this agreement (the "Agreement") shall extend
through May 2, 2002, provided, however, that either the Company or Brean Murray
may terminate this Agreement prior to such date and as of the end of any month
upon no less than 30 days' prior written notice.

     Brean Murray intends to report on the Company from a research perspective
and to continue to make a market in the Company's common stock. However, Brean
Murray reserves the right in its sole discretion to cease acting as a market
maker or reporting on the Company from a research perspective based upon market
factors in general or the business, financial or other condition of the Company
or market factors affecting the Company. One of the objectives of Brean Murray's
financial consulting services, among others, is to cause the investment
community to become aware of the Company's business so that its potential may be
realized in the financial markets.

     As compensation for Brean Murray's services as a financial advisor, the
Company will issue to Brean Murray upon execution of this Agreement, warrants to
purchase 200,000 shares of the Company's common stock at $1.50 per share, the
terms and conditions governing such issue of warrants to be substantially in the
form of Appendix B hereto annexed.




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Financial Advisory Agreement-Brean Murray & ABMC
May 2, 2001
Page 2

     It is contemplated that from time to time the Company may request Brean
Murray to perform investment banking services (as distinguished from financial
consulting services) in connection with matters involving the Company, such as
the private placement of securities, mergers, acquisitions, divestitures,
valuations and corporate reorganizations. Any fees which Brean Murray shall
become entitled to receive from the Company in connection with the performance
of any such investment banking services shall be set forth in a separate
agreement between the Company and Brean Murray and shall be in addition to the
compensation provided herein. Neither the Company nor Brean Murray, however,
will have any obligation to enter into any separate agreement, and if a separate
agreement were to be made, the terms and conditions thereof would have to be
negotiated between Brean Murray and the Company. Nothing contained in the
Agreement shall preclude the Company from engaging any other party or person to
provide financial advisory or investment banking services to the Company.

     In order to enable Brean Murray to render its services hereunder, the
Company, subject to its obligation under Federal and State Securities laws,
agrees to provide Brean Murray, among other things, all reasonable information
requested or required by Brean Murray including, but not limited to, information
concerning historical and projected financial results and possible and known
litigious, environmental and other contingent liabilities. The Company, subject
to its obligations under Federal and State Securities laws, will promptly advise
Brean Murray of any material changes in its business or finances during the term
of this Agreement. The Company represents that, to the best of its knowledge,
all information made available to Brean Murray by the Company will be accurate.
In rendering its services hereunder, Brean Murray will be using and relying
primarily on such information without independent verification thereof or
independent appraisal of any of the Company's assets. Brean Murray does not
assume responsibility for the accuracy or completeness of the information to
which reference is made hereto and Brean Murray will hold such information
confidential.

     The services herein provided are to be rendered solely to the Company. They
are not being rendered by Brean Murray as an agent or as a fiduciary of the
shareholder of the Company and Brean Murray shall not have any liability or
obligation with respect to its services hereunder to such shareholders or any
other person, firm or corporation.

     This Agreement sets forth the entire understanding of the parties relating
to the subject matter hereof and supersedes and cancels any prior
communications, understanding and agreements between the parties. This Agreement
cannot be terminated or changed, nor can any of its provisions be waived, except
by written agreement signed by all parties hereto or except as otherwise
provided herein.



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Financial Advisory Agreement-Brean Murray & ABMC
May 2, 2001
Page 3

     This Agreement shall be governed by and construed in accordance with the
laws of the State of New York applicable to contracts made and to be performed
solely in such State by citizens thereof. Any dispute arising out of this
Agreement shall be adjudicated in the courts of the State of New York or in the
federal courts sitting in the Southern District of New York and the Company
hereby agrees that service of process upon it by registered or certified mail at
its address set forth above shall be deemed adequate and lawful. The parties
hereto shall deliver notices to each other by personal delivery or by registered
or certified mail (return receipt requested) at the address set forth above, if
to the Company and if the Brean Murray, Brean Murray & Co., Inc., ATTN: A. Brean
Murray, 570 Lexington Ave, 11th Floor, New York, NY 10016.


                                               Very truly yours,

                                               Brean Murray & Co., Inc.



                                               By:/s/ A. Brean Murray
                                                  -----------------------------
                                                        A. Brean Murray
                                                        Chairman and CEO


ACCEPTED AND AGREED TO:

American Bio Medica Corporation



By: /s/ Stan Cipkowski
    ---------------------------
         Stan Cipkowski
         President

Date: May 2, 2001