Document:

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

          THIS  EMPLOYMENT  AGREEMENT  made as of the 1st day of November,  1999
("Employment  Agreement") between EPIGEN,  INC., a Delaware  corporation,  North
Tower Hill Road, PO Box L, Millbrook,  NY 12545 (the "Company"),  and RICHARD E.
KENT ("Employee"), residing at 49 Bournes Point Road, Wareham, MA 02571.

                                   WITNESSETH:

          WHEREAS, Employee is presently employed as Vice Chairman and Secretary
of the Company; and

          WHEREAS,  the  Company  and  Employee  desire to assure the  continued
services of Employee to the Company on the terms and conditions set forth below.

          NOW,  THEREFORE,  in  consideration of the mutual covenants herein set
forth and other good and valuable consideration,  the receipt and sufficiency of
which is hereby acknowledged, the Company and Employee agree as follows:

          1. EMPLOYMENT.  The Company agrees to continue to  employ  Employee to
render  executive and  managerial  services to the Company and Employee  accepts
such  appointment  with the title of Vice Chairman and Secretary of the Company.
In such capacity,  Employee shall be Vice Chairman and Secretary of the Company,
possessing   such  powers  and  authority  and  charged  with  such  duties  and
responsibilities  in relation to the  business and affairs of the Company as are
customarily associated with such offices,  subject to the direction of the Board
of Directors of the company and subject to the  understanding  that Employee may
give  priority to and attend to his primary  employment  provided  such  primary
employment is not competitive with the business of the Company.

          2. TERM.  The term of  Employee's  employment  under  this  Employment
Agreement  commenced as of June 1, 1994 through the date hereof, and, subject to
the terms and  conditions of this  Employment  Agreement,  shall  continue for a
period  of five  years  from the date  hereof  and  thereafter  as such  term is
extended.  On June 1 of each year,  beginning  June 1,  2000,  such term of this
Employment  Agreement  shall be  automatically  extended for an additional  year
unless  Employee or the company shall have notified the other in writing  within
90 days of such date of its determination, by director

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resolution  if by the  Company,  not to  extend  the  term  of  this  Employment
Agreement.  The term of this Agreement shall continue  without regard to whether
Employee continues to serve as a Director of the company or its successor.

          3. COMPENSATION.

             (a) Employee  shall receive as full  compensation  for his services
hereunder,  direct from the  Company,  a salary at the rate of $18,000 per annum
until  March 31, 1998 and at the rate of $36,000  per annum  beginning  April 1,
1998, paid by monthly installments. At the discretion of the Board of Directors,
Employee may be given merit increases and bonuses during the term hereof.

             (b) Employee shall be granted  pursuant to the terms and conditions
of the form of option  agreement  set forth on  Exhibit A hereto  the  following
nonqualifying  options  ("Stock  Options") to purchase  shares of the  Company's
Common  Stock,  par value $0.001 per share (the "Common  Stock"),  at a purchase
price of $.50 per share upon the occurrence of the following events:

                 (i) upon the execution and delivery of this  Agreement,  47,000
shares of Common Stock; and

                (ii) on  June 1 of each year in which this Employment  Agreement
remains in effect, 37,000 shares of Common Stock.

             (c) The Company will undertake to file as promptly as practicable a
Registration  Statement  on Form S-8 with  respect to the shares of Common Stock
underlying the Stock Options.

          4. EXPENSES.   Employee  shall  be  reimbursed  for all  ordinary  and
reasonable  out-of-pocket  expenses  properly  incurred  while  engaged  in  the
business of the company pursuant to the Company policy then in effect,  provided
that such are  itemized  and  presented  to the Company in  accordance  with the
Company policy then in effect.

          5. BENEFITS.

             (a) The  Company  shall  provide  Employee  or  Employee  shall  be
entitled  to  reimbursement  for the  premium  costs of a  $100,000  whole  life
insurance  policy under which  Employee is the insured and has the sole right to
designate the beneficiary thereunder.

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             (b) For so long as  Employee  is a  Director  of the  Company,  the
Company will pay  Employee  such  directors'  and meeting fees as may be paid to
directors who are not employees of the Company.

          6. CHANGE IN CONTROL.

             (a) DEFINITIONS.  For  purposes of  this  Section 6, the  following
terms shall have the following meanings:

                 (i) "ANNUAL  BASE  SALARY"  shall mean the average  annual base
gross  salary  plus  cash  bonus,  but  excluding   fringe  benefits,   deferred
compensation  payments,  contributions to retirement plans or any other payment,
paid  accrued or payable by the Company to  Employee  for the fiscal year before
the Change in Control.

                (ii) "CHANGE IN CONTROL"  shall be deemed  to  occur (x) when a
person, corporation,  partnership,  association,  entity or group (as defined in
Section  13(d) (3) of the  Securities  Exchange  Act of 1934,  as  amended)  (I)
acquires 25 percent or more of the Company's  outstanding voting securities,  or
(ii)  acquires  securities  constituting  25 percent or more of the voting power
with respect to election of  directors  of the Company or (iii)  acquires all or
substantially  all of the assets of the Company,  or (iv) enters into a contract
with respect to any of the foregoing or (v) when the directors of the Company as
a the date  hereof  cease to  constitute  a  majority  of all  directors  of the
Company;  provided,  however,  that for  purposes  of this clause any person who
replaces a director  with the support of Employee  shall be deemed a director as
of the date hereof.

               (iii) "FIRST  ANNIVERSARY"  shall  mean  the date  twelve  months
after a Change in Control.

                (iv) "GOOD  REASON"  shall  mean (v) a change in the status or
position of Employee which reflects a change from the status and  position(s) as
were  in  effect  immediately  prior  to  such  Change  in  Control,  or (w) the
assignment to Employee of any duties or  responsibilities  which,  in Employee's
reasonable judgment, are inconsistent with his status or position(s), or

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(x)removal  of Employee  from his current  position or  reduction  in his pay or
requiring him to relocate, or (y) any refusal by the Company or its successor to
continue  to allow  Employee  to attend to matters or engage in  activities  not
directly  related to the business of the Company,  which prior to such Change in
Control,  he was  permitted  to attend or to engage  in, or (z) the  removal  of
Employee,   without  his  consent,  to  any  location  outside  of  the  Boston,
Massachusetts area.

             (b) If in the  event  that  sixty  (60)  days  prior to a Change in
Control  or at any time  after a  Change  in  Control  but  prior  to the  First
Anniversary  Employee shall be discharged for any reason (other than for cause),
Employee shall receive, within thirty (30) days after such discharge, a lump sum
severance  payment  equal to five (5) times his Annual Base Salary  (hereinafter
referred to as "5X Base".

             (c) If in the  event  that  sixty  (60)  days  prior to a Change in
Control or any time after a Change in Control but prior to the Fist  Anniversary
thereof, Employee terminates employment for Good Reason, Employee shall receive,
within thirty (30) days after such discharge, a lump sum severance payment equal
to 5X Base.

             (d) If in the event that after a Change in Control but prior to the
First Anniversary thereof, Employee voluntarily leaves the employ of the company
for reasons other than  discharge or for Good Reason,  Employee  shall  receive,
within thirty (30) days, a lump sum  severance  payment equal to three (3) times
his Annual Base Salary.

          7. TERMINATION OF EMPLOYMENT.

             (a) This Agreement shall terminate  automatically upon the death of
Employee.

             (b) The Board of Directors may terminate Employee's employment upon
one (1)  week's  notice  to  Employee  for  "cause"  as  hereinafter  defined  n
subparagraph (d) below.

             (c) Upon the  termination  of  Employee's  employment  pursuant  to
subparagraph  (a) or  (b)  above,  Employee  shall  be  entitled  to no  further
compensation  other than  accrued  and unpaid  compensation  through the date of
termination.

             (d) The term "cause", as used in subsection 5(b) above with respect
to the termination of Employee's employment by the Company, shall mean

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(i) embezzlement or other  misappropriation  of property of the Company; or (ii)
conviction of a crime which constitutes a felony.

          8. EMPLOYEE'S REPRESENTATIONS AND WARRANTIES.

Employee hereby represents and warrants to the Company as follows:

             (a) Employee has full legal capacity to enter into this  Employment
Agreement.  This  Employment  Agreement  has been duly executed and delivered by
Employee.

             (b) The  execution,  delivery and  performance  by Employee of this
Employment  Agreement will not conflict with or result in a breach of any of the
terms,  conditions or provisions of, or constitute  (with due notice or lapse of
time or both) a default under, any material indenture, mortgage, lease agreement
or other  agreement or instrument to which Employee is a party or by which he is
bound, subject to the understanding set forth in Section 1 hereof.

          9. EMPLOYEE'S COVENANTS.  Upon and subject to the terms and conditions
of this  Employment  Agreement,  Employee  hereby  covenants  to the  Company as
follows:

             (a)  Employee  will  remain in the employ of the  Company  and will
carry out the duties and  responsibilities  assigned to him from time to time by
the Company's Board of Directors;

             (b) Employee will observe the policies and practices established by
the Company's Board of Directors and will otherwise  conduct himself in a manner
reasonably calculated to benefit the Company; and

             (c) During the term of this  Employment  Agreement,  Employee  will
promptly advise the Company's  Board of Directors of any business  opportunities
of which he may become aware related to the business and corporate  goals of the
Company.

         10. CONFIDENTIALITY.   Employee  shall   not,  during any period of his
employment by the Company or thereafter  for any reason,  divulge,  furnish,  or
make accessible to or use for the benefit of, anyone other than the Company, its
directors and officers,  otherwise than in the regular course of the business of
the Company, or with the prior written consent of the company,  any trade secret
or confidential  knowledge or information  relating in any way to the scientific
research of the  Company,  the  customers  of the Company or to the  business or
manufacturing  processes  from  time to time  carried  out or  conducted  by the
Company.

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         11. INDENMIFICATION AND DIRECTORS AND OFFICERS LIABILITY INSURANCE. The
Company  shall  indemnify  Employee  and advance  expenses  with  respect to any
indemnifiable  matter to Employee to the fullest extent  permitted by applicable
law. To the extent that the Company  maintains an  insurance  policy or policies
providing  liability  insurance for directors,  officers,  employees,  agents or
fiduciaries  of the  Company,  the  Employee  shall be covered by such policy or
policies in  accordance  with their terms to the maximum  extent of the coverage
available for any such director, officer, employee, agent or fiduciary under any
such policy or policies.

         12. REGISTRATION RIGHTS. The Employee shall have all of the rights and
benefits,  pari  passu,  with  the  beneficiaries  of  any  Registration  Rights
Agreement binding upon the Company.

         13. WAIVER.  Failure to insist upon  compliance  with any of the terms,
covenants  or  conditions  hereof  shall not be  deemed a waiver  of such  term,
covenant or condition,  nor shall any waiver or  relinquishment  of any right or
power  hereunder  at  any  one  time  or  more  times  be  deemed  a  waiver  or
relinquishment of such right or power at any other time or times.

         14. SEVERABILITY.  The invalidity or unenforceability of any provision
hereof  shall in no way  affect  the  validity  or  enforceability  of any other
provision.  The parties to this Employment  Agreement agree and intend that this
Employment Agreement shall be enforced as fully as it may be enforced consistent
with applicable statues and rules of law.

         15. NOTICES. Any notices required or permitted hereunder shall be given
in writing by  registered  or  certified  first  class  mail,  postage  prepaid,
addressed to the parties at their respective addresses first above set forth, or
to such other address as either party may from time to time  designate by notice
to the other hereunder.

         16. GOVERNING LAW.  This Employment  Agreement shall be governed by and
construed in accordance  with the internal laws of the State of New York without
regard to conflicts of laws principles  thereof.  In the event that an action is
commended by Employee under this Agreement for failure of the Company to perform
its  obligations  hereunder,  the Company  shall pay the legal fees and expenses
incurred by  Employee  with  respect to such action if Employee  prevails on the
merits of such action as determined by a court of competent jurisdiction.

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         17. ENTIRE AGREEMENT.  This Employment  Agreement represents the entire
agreement of the parties hereto, and supersedes any other agreements between the
parties  with  respect to the  subject  matter  hereof,  and may not be amended,
modified or supplemented in any respect, except by a subsequent writing executed
by both parties hereto.

         18. MISCELLANEOUS.  Neither this  Employment  Agreement,  nor any term
hereof, may be amended,  changed, waived,  discharged or terminated except by an
instrument in writing signed by the party against which such amendment,  change,
waiver,  discharge  or  termination  is sought to be enforced.  This  Employment
Agreement  may be executed in one or more  counterparts,  each of which shall be
deemed an original,  and all of which together shall constitute one and the same
instrument.  The  headings  contained  in  this  Employment  Agreement  are  for
reference  purposes  only  and  shall  not  affect  in any  way the  meaning  or
interpretation  of this  Employment  Agreement.  This Agreement shall be binding
upon the successors and assigns of the Company.

         IN WITNESS  WHEREOF,  the parties hereto have executed this  Employment
Agreement as of the day and year first above written.

                                       EPIGEN, INC.

                                       By:  /s/:  Donald C. Fresne
                                            ------------------------------------
                                            Name:  Donald C. Fresne
                                            Title:    Chairman

                                       /s/:  Richard E. Kent
                                       --------------------------------------
                                       Richard E. Kent

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                                                                       Exhibit A

                                  EPIGEN, INC.
                                    PO Box L
                              North Tower Hill Road

                               Millbrook, NY 12545

                                       ____________, 20__

Mr. Richard E. Kent
49 Bournes Point Road
Wareham, MA  02571

Re:      Grant of Nonqualifying Stock Options to Purchase Shares of
         Common Stock of Epigen, Inc. to Donald C. Fresne (the "Optionee")
         -----------------------------------------------------------------

Dear Optionee:

          You and Epigen, Inc., a Delaware  corporation (the "Company"),  hereby
agree as follows:

          1. GRANT OF OPTION.  The Company  hereby  grants to the  Optionee  the
option (the "Stock Option") to purchase  __________  shares of Common Stock, par
value $.001 per share (the "Common Stock") , of the Company for a purchase price
of $_____ per share (the  "Option  Price") . The Optionee may exercise the Stock
Option in  accordance  with this  Agreement no earlier than [six months from the
date of grant] (the "Exercise Date') and no later than seven years from the date
of grant (the  "Expiration  Date") unless  earlier  terminated  according to the
terms of this  Agreement.  The Stock  Option is not  intended  to  qualify as an
incentive  stock  option  within the  meaning of  Section  422A of the  Internal
Revenue Code of 1986, as amended.

          2. EXERCISE OF STOCK OPTION.   The  Optionee  may  exercise  the Stock
Option in whole or in part by written  notice  delivered  to the  Company in the
form of either Schedule A or Schedule B to this Agreement. Payment of the Option
Price for the shares of Common Stock purchased upon exercise of the Stock Option
shall be made by  delivery to the  Company of (i) a  certified or bank cashier's

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check  payable to the  Company  in the amount of the Option  Price or (ii) stock
certificates,   duly   endorsed  in  blank  and  with   signatures   guaranteed,
representing  a number of shares of Common  Stock having a Fair Market Value (as
hereinafter defined) equal to the Option Price.

          Upon the exercise of the Stock  Option,  the  Optionee  shall have the
right,  in lieu of receiving  shares of Common Stock and making any cash payment
to the  Company,  to  receive a cash  payment  (the  "Stock  Appreciation  Right
Payment")  from the Company equal to the  difference  between the aggregate Fair
Market  Value of the  number of  shares  of  Common  Stock as to which the Stock
Option  is being  exercised  and the  aggregate  Option  Price  of such  shares,
provided,  however,  the  Company  shall  not be  obligated  to make  the  Stock
Appreciation  Right  Payment to the  Optionee  if the Board of  Directors  shall
determine,  in its sole  discretion,  that the Company does not have  sufficient
cash available to make the Stock  Appreciation  Right  Payment.  If the Board of
Directors shall make such a determination,  the Optionee shall receive shares of
Common Stock upon the exercise of the Stock Option.

          "Fair  Market  Value"  means (i) the closing  sale price of the Common
Stock on any  national  securities  exchange on which the Common  Stock shall be
registered  and listed on the business  day  immediately  preceding  the date of
exercise  of the  Stock  Option,  or (ii) if the  Common  Stock is traded in the
over-the-counter  market and quoted on the National  Association  of  Securities
Dealers Inc.  National Market System  ("NASDAQ- NMS"), the closing sale price of
the Common Stock on  NASDAQ-NMS  on the business day  immediately  preceding the
date of exercise of the Stock Option,  or (iii) if the Common Stock is listed on
a national securities exchange or is quoted on NASDAQ- NMS, but there shall have
been no sale of such stock on the business day immediately preceding the date of
exercise  of the Stock  Option,  the closing  sale price on such  exchange or on
NASDAQ-NMS on the most recent  business day prior to the date of exercise of the
Stock  Option on which  there was a sale of such  stock,  or (iv) if the  Common
Stock  shall  not at the  time be  listed  on any such  exchange  or  quoted  on
NASDAQ-NMS,  but is  traded in the  over-the-counter  market  and  quoted by the
National  Association of Securities Dealers Inc., the average of the closing bid
and asked prices for such stock on the business day  immediately  preceding  the
date of exercise  of the Stock  Option as  reported  by the  National  Quotation
Bureau,  or (v) if the  Common  Stock is not listed on any  national  securities
exchange and is not quoted by NASDAQ-NMS or the National  Quotation Bureau,  the
fair value per share of the Common  Stock as  determined  in good faith and on a
reasonable basis by the Board of Directors of the Company.

          3. DELIVERY  OF SHARES OF COMMON  STOCK AND STOCK  APPRECIATION  RIGHT
PAYMENT.  The Company shall, upon payment of the Option Price  for the shares of

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Common Stock,  make prompt delivery of certificates  representing  the shares of
Common Stock to the Optionee. The Company shall, at all times during the term of
this  Agreement,  reserve and keep  available,  solely for issuance and delivery
upon  exercise of the Stock  Option,  all shares of Common Stock  issuable  upon
exercise of the Stock Option.  All shares of Common Stock issuable upon exercise
of the Stock Option shall , upon issuance,  be duly authorized,  validly issued,
fully  paid and  non-assessable,  with no  liability  on the part of the  holder
thereof.  The Company shall pay allo original issue taxes on the exercise of the
Stock  Option,  and all other  fees and  expenses  necessarily  incurred  by the
Company in connection  therewith.  The Stock Appreciation Right Payment shall be
made by  delivery  to the  Optionee  of a check  payable to the  Optionee in the
amount of the Stock Appreciation Right Payment.

          4. NO RIGHTS IN OPTION STOCK.  The Optionee  shall have no rights as a
stockholder  in  respect of any shares  subject to the Stock  Option  unless and
until the Optionee has  exercised the Stock Option in complete  accordance  with
the terms hereof,  and shall have no rights with respect to shares not expressly
conferred by this Agreement.

          5. CERTAIN ADJUSTMENTS

             (a)  Subject  to any  required  action by the  stockholders  of the
Company,  in the event that the outstanding shares of Common Stock are hereafter
increased or decreased  or changed into or exchanged  for a different  number or
kind of shares or other  securities of the Company or of another  corporation by
reason   of    reorganization,    merger,    consolidation,    recapitalization,
reclassification,  stock split,  combination of shares or share  dividends,  the
Board of Directors of the Company shall adjust the number and kind of securities
subject to the Stock  Option.  In any such case,  the Board of  Directors of the
Company  shall make such  adjustment to the Stock Option  without  change in the
total price applicable to the unexercised portion of the Stock Option and with a
corresponding  adjustment in the Option  Price.  In the event that the number of
shares of Common Stock is increased by sale of  additional  shares or conversion
of  securities  convertible  into such  shares or any  other  similar  event not
referred to in the first sentence of this Section 5 (a) , the Board of Directors
of the Company may in its discretion,  but shall not be obligated to, adjust the
number or kind of securities subject to the Stock Option.

             (b) Should the Company sell all or substantially  all of its assets
and discontinue its business,  or merge or consolidate  with another entity,  or
liquidate or dissolve in  connection  with those  events,  then,  in lieu of its
obligation  under Section 5 (a), the Board of Directors of the Company may amend
or adjust the Stock Option so as to terminate it completely,  or to continue the
Stock  Option if  exercisable  at the date the Board of Directors of the Company
adopted the plan of sale, merger, consolidation or

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liquidation, or may take other actions as it deems desirable and appropriate. In
any such case, however,  the Optionee will be given either (i) a reasonable time
in which to exercise the Stock Option before the  effectiveness  of the sale and
discontinuation,  merger,  consolidation  or  liquidation,  or (ii) the right to
obtain  for his  payment  of the  Option  Price,  an  equivalent  amount  of any
securities  the Optionee  would have been entitled to obtain in  consequence  of
that- event,  had he exercised the Stock Option  immediately  before the plan of
sale and discontinuation, merger, consolidation or liquidation was adopted.

             (c)  Should the  Company  be  recapitalized  in a  transaction  not
covered  by  Section  5(a) by the  issuance  of any other  class or  classes  of
securities  in exchange  for the Common  Stock,  the Board of  Directors  of the
Company  shall amend the Stock  Option to reflect an adjusted  option  price per
unit of such  securities as would  equitably be obtained in accordance  with the
terms otherwise applicable to the actual exchange.

             (d) The  Company  shall not be  required  upon the  exercise of the
Stock Option to issue or deliver fractional shares as a result of any adjustment
pursuant  to this  Section 5. The  Optionee  shall be entitled to receive a cash
payment in lieu of such fractional shares.

          6. NONASSIGNABILITY.  The Stock Option and this Agreement shall not be
encumbered,  disposed of, assigned or transferred in whole or part, and may only
be exercised by the Optionee unless the prior written consent of the Company has
been obtained.

          7. EFFECT UPON EMPLOYMENT.  Nothing  contained in this Agreement shall
be deemed to require  the Company to continue  the  employment  of, or any other
contractual arrangement with, the Optionee.

          8. MISCELLANEOUS.  If any term, provision,  covenant or restriction of
this Agreement is held by a court of competent  jurisdiction to be invalid, void
or  unenforceable,  the  remainder  of  the  terms,  provisions,  covenants  and
restrictions  of this Agreement  shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.  This Agreement shall be binding
upon,  inure to the benefit of and be  enforceable by the successors and assigns
of the parties hereto. This Agreement may not be modified or supplemented except
upon the execution and delivery of a written  agreement  executed by each of the
parties hereto. All notices,  requests, claims, demands and other communications
hereunder  shall be in  writing  and shall be given (and shall be deemed to have
been duly given if so given) if  delivered  in  person,  by cable,  telegram  or
telex,  or by registered or certified  mail,  postage  prepaid,  return  receipt
requested to the  respective  parties at their  respective  addresses or to such
other address as either party may

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have  furnished  to the other in writing in  accordance  herewith,  except  that
notices for  termination  for cause need not be in writing and notices of change
of  address  shall only be  effective  upon  receipt.  This  Agreement  shall be
governed by and construed in accordance with the substantive law of the State of
New York without  giving  effect to the  principles of conflict of laws thereof.
This  Agreement  may be  executed  in  counterparts,  each of which  shall be an
original,  but  both of  which  together  shall  constitute  one  and  the  same
agreement.

          In order to indicate your  acceptance of the Stock Option on the above
terms and conditions, kindly sign the enclosed copy of this Agreement and return
it to the Company.

                                       EPIGEN, INC.

                                       By:
                                            ------------------------------------
                                            [Officer]

Accepted and Agreed to:

------------------------------------
Richard E. Kent

                                     Page 12

<PAGE>

                                                                      Schedule A

                         NOTICE OF ELECTION TO EXERCISE

Epigen, Inc.
PO Box L
North Tower Hill Road
Millbrook, NY  12545

Attention:

Gentlemen:

          I hereby  irrevocably  elect to exercise  the Stock  Option held by me
pursuant to the Option Agreement,  dated ____________ (the "Option  Agreement"),
between me and Epigen,  Inc. (the  "Company")  to purchase  shares of the Common
Stock,  par value  $0.001 per share (the "Common  Stock"),  of the Company at an
option price of $_________ per share.

          Enclosed is either (a) a certified or bank cashier's check, payable to
the order of the  Company,  in the  amount of  $______  in full  payment  of the
purchase  price or (b)  stock  certificates,  duly  endorsed  in blank  and with
signature guaranteed, representing _____ shares of Common Stock, in full payment
of the purchase price.

          Please instruct American Stock Transfer & Trust Company (the "Transfer
Agent"),  to  issue  _____   certificate(s)  for  ______  shares  each  and,  if
applicable,  a separate  certificate for the remaining  __________  shares in my
name as shown below.  The  following  address is for the records of the Transfer
Agent for mailing stockholder communications:

                                       -----------------------------------------
                                       Name

                                       -----------------------------------------
                                       Taxpayer I.D. Number
                                       (i.e. Social Security/Insurance Number

                                     Page 13

<PAGE>

                                       -----------------------------------------
                                                 Number and Street

                                       -----------------------------------------
                                                City State Zip Code

Please forward the certificate(s) to me at the following address:

                                       -----------------------------------------
                                       Number and Street

                                       -----------------------------------------
                                       City State Zip Code

          This  election  incorporates,   and  is  subject  to,  all  terms  and
conditions of the Option Agreement.

          I am acquiring the foregoing shares for investment  purposes only, and
not with a view to their sale or distribution.

Dated:
        --------------------

                                       -----------------------------------------
                                       Signature

                                       -----------------------------------------
                                       Print Name

                                     Page 14

<PAGE>

                                                                      Schedule B

               NOTICE OF ELECTION TO EXERCISE - STOCK APPRECIATION
                                  RIGHT PAYMENT

Epigen, Inc.
PO Box L
North Tower Hill Road
Millbrook, NY  12545

Attention:

Gentlemen:

          I hereby  irrevocably  elect to exercise  the Stock  Option held by me
pursuant to the Option Agreement,  dated _____________ (the "Option Agreement"),
between me and Epigen,  Inc. (the  "Company") to purchase _____ shares of Common
Stock,  par value $0.001 per share (the  "Shares"),  of the Company at an option
price of $________ per share.

          I also hereby  irrevocably  elect  pursuant to Section 2 of the Option
Agreement,  in lieu of  receiving  the Shares and making any cash payment to the
Company,  to receive a cash  payment  from the Company  equal to the  difference
between the aggregate Fair Market Value (as defined in the Option  Agreement) of
the Shares and the aggregate Option Price of the Shares (the "Stock Appreciation
Right Payment")

          Please  forward  the Stock  Appreciation  Right  Payment  to me at the
following address:

                                       -----------------------------------------
                                       Number and Street

                                       -----------------------------------------
                                       City State Zip Code

Dated:
        --------------------

                                       -----------------------------------------
                                       Signature

                                       -----------------------------------------
                                       Print Name

                                     Page 15Federal Express

                                        December 16, 1999

Thomas J. McQuaid, CPA
Assistant Director and CEO
Boston Biomedical Research Institute, Inc.
20 Staniford Street
Boston, MA 02114

Re: Restated Agreement dated as of February 25, 1992
    ------------------------------------------------

Dear Tom:

         In  accordance  with our recent  discussions  and  correspondence,  the
purpose of this letter is to set forth our understanding  regarding amendment of
the royalty provisions of the captioned Agreement, as previously amended.

         We propose:

          1.   that the first  sentence  of Section  5(a) of such  Agreement  be
               amended as follows:

          (a)  Epigen  agrees to pay to BBRI a royalty of 3% of the NET  SELLING
               PRICE of any product,  article,  or composition sold by Epigen or
               any affiliate of Epigen,  which product,  article, or composition
               utilizes  either the HC Antigen  or  epiglycanin,  whether or not
               developed via the CARCINOMA  ASSAY RESEARCH  PROGRAM,  for a term
               ending on the tenth (10th)  anniversary  of the first sale of any
               such product.

          2.   that the first  sentence  of Section  5(b) of such  Agreement  be
               amended as follows:

          (a)  Epigen  agrees  to pay to  BBRI  one-half  of  any  royalties  or
               payments and  considerations  in lieu thereof  received by Epigen
               under  any  sub-license  agreement  granted  by  Epigen  for  any
               product,  article,  or composition sold by such sublicensee which
               is  not  an  affiliate  of  Epigen  which  product,  article,  or
               composition  utilizes  either  the  HC  Antigen  or  epiglycanin,
               whether  or  not  developed  via  the  CARCINOMA  ASSAY  RESEARCH
               PROGRAM,  not to exceed 3% of the NET SELLING PRICE thereof for a
               term ending on the tenth (10th)  anniversary of the first sale of
               any such product.

          3.   that in all other respects such Agreement, as previously amended,
               shall remain unchanged.

         Should the foregoing  accurately  set forth our  understanding,  please
sign and return to us a copy of this letter.

                                       Sincerely,

                                       EPIGEN, INC.

                                       By:  /s/:  Donald C. Fresne
                                            ------------------------------------
                                            Donald C. Fresne, Chairman,
                                            President and Chief
                                            Executive Officer

AGREED TO AND ACCEPTED:

BOSTON BIOMEDICAL RESEARCH INSTITUTE, INC.

By:  /s/:  Kathleen G. Morgan
     -------------------------------
Name:  Kathleen G. Morgan, Ph.D.
Title: Director and CEO
Date:  December 17, 1999

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}]]