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                                                                  EXHIBIT 10.14


January 10, 2001


Dear Mr. Casterlin:

The following is our formal offer to you to continue in the position of
Executive Vice President of Operations for American Bio Medica Corporation
(ABMC) effective as of January 10, 2001 (the "Commencement Date"). You will
report directly to the President of ABMC and your position will be located in
our Kinderhook facility.


TERM

Your employment with ABMC will be for a term beginning on the Commencement Date
and ending on April 30, 2002, automatically renewed unless either side gives
advance notice of 60 days.


SALARY AND BONUS

Your base salary will be $11,666 per month, which is equivalent to $140,000 on
an annualized basis. In addition, you will be issued 50,000 stock options of
ABMC at the closing market price on the Commencement Date. All of your stock
options will vest over a four-year period in annual increments of 25% 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 Compensation Committee of the Board of Directors intends to establish a
bonus plan by April 30, 2001 in order to provide rewards to executive officers
based on achieving milestones in EBITDA (earnings before interest, taxes,
depreciation and amortization) (as calculated based on ABMC's annual audited
financial statements) during each fiscal year. Beginning with ABMC's 2002 fiscal
year, you will participate in this plan.


BENEFITS

Benefits include:

-    20 vacation days
-    Usual corporate holidays
-    401 (k)
-    Health insurance equal to other ABMC executive officers



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SEVERANCE

In the unlikely event that the Board of Directors of ABMC elects to terminate
your employment for anything other than cause, including failure to renew this
agreement, (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 one (1) month of
your then current base salary for each year or part of a year of service with a
minimum of 6 months and a maximum of 12 months, 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. All unvested
options will vest immediately upon your separation from the Company and remain
vested for the duration of their pre-established term, 10 years. Further, ABMC
will indemnify, or continue to indemnify, you to the full extent permitted by
the New York Business Corporation Law if you are, or become, a party to a matter
by reason of being or having been a director or officer of ABMC. The obligations
of ABMC in this paragraph shall be binding upon and become the obligations of
any successors or assigns of ABMC.

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, defined as moving your primary office
     more than 25 miles from its current location in Kinderhook, New York.
-    A  substantial  change in  responsibilities  at the  direction of the
     Board of  Directors of the  responsibilities normally assumed by your
     position (i.e., demotion); or
-    Change in control of the Company,  (i.e., if the Company is acquired
     wholly or if another corporate entity becomes the controlling shareholder)


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


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     competes with ABMC drugs of abuse testing products or services east of
     the Mississippi River.

-    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.


     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 two (2) 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 two (2) year period immediately preceding the
               termination of your employment with ABMC for any reason
               whatsoever.


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


               ENFORCEMENT

You agree that it is impossible to measure solely in money the damages which
will accrue to ABMC by reason of your failure to perform any or your obligations
set forth in the restrictive covenant paragraphs above. Therefore, if ABMC shall
institute any action or proceeding to enforce the provisions of the restrictive
covenants paragraphs, you hereby waive the claim or defense that there is an
adequate remedy at law and agree in any such action or proceeding not to
interpose the claim or defense that such remedy exists at law. You hereby
specifically affirm the appropriateness of injunctive, specific performance, or
other equitable relief in any such action, in addition to all other remedies
ABMC has at law.

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 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.



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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 without the written
agreement of the ABMC Board of Directors.


Sincerely



/s/ Gerald Moore
--------------------------------
Gerald Moore
Director and Chairman of the Compensation Committee

/s/ Robert Aromando
--------------------------------
Robert Aromando
Chief Executive Officer


Accepted this 10th day of January, 2001 by:

/s/ Douglas Casterlin
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Douglas Casterlin