March 8, 1999 Jackie Altman, Director Office of Grants and Contracts North Shore-Long Island Jewish Health System North Shore University Hospital 300 Community Drive Manhasset, New York 11030 Re: Research/Development of Colon Cancer Test Kit-Dr....

March 8, 1999

Xxxxxx Xxxxxx, Director
Office of Grants and Contracts
North Shore-Long Island Jewish Health System
North  Shore University Hospital
000 Xxxxxxxxx Xxxxx
Xxxxxxxxx, Xxx Xxxx 00000

Re:      Research/Development of Colon Cancer Test Kit-Xx. Xxxxxxxxxx

Dear Xx. Xxxxxx,

         Reference is made to that certain  Sponsored  Research  Agreement  into
which Lexon, Inc. funded $311,250 for additional  research and development costs
to be incurred by Xx. Xxxxxx  Xxxxxxxxxx in  connection  with a blood  screening
test for the detection of colon, ovarian and testicular cancer.

         Xx. Xxxxxxxxxx has expressed a desire to hire two additional persons to
devote their time,  energy and efforts in  expediting  the  continuing  research
being conducted by Xx. Xxxxxxxxxx at an aggregate additional cost of $81,162, in
accordance with the Budget attached hereto.

1.       Lexon  requests that North Shore  University-Long  Island Jewish Health
         System,   North  Shore  University  Hospital   ("University")  and  the
         University agrees to apply existing funds on hand and dedicated to this
         Sponsored  Research  Agreement  to pay $81,162 in order to expedite the
         development  of a  prototype  ELISA  test  kit in  accordance  with the
         attached Budget.

2.       Xxxxx  agrees  to  pay  the  University  into  the  Sponsored  Research
         Agreement  Fund 6




          installments  of $13,527 each,  payable on or before  October 1, 1999,
          December 1, 1999,  February 1, 2000,  April 1, 2000,  June 1, 2000 and
          August 1, 2000.

3.       The University agrees to provide Xxxxx with a general accounting of the
         funds  deposited by Xxxxx with the  University in accordance  with this
         Sponsored Research  Agreement on a quarterly basis,  beginning with the
         quarter ended March 31, 1999, in order for Lexon to


         know what  expenses  have been spent,  what funds are committed but not
         yet spent, and what funds remain on account for future expenditure with
         respect to Xx. Xxxxxxxxxx with respect to this research.

         We are  delighted  to be able to  continue  our  relationship  with the
University and with Xx. Xxxxxxxxxx in this very exciting research. We appreciate
your  cooperation  and your  support of Xx.  Xxxxxxxxxx.  If you agree that this
letter  sets  forth our  mutual  understanding,  please  will  sign this  letter
evidencing the University's agreement. Thank you again for all your support.

                                          Very truly yours,
                                          Lexon, Inc.


                                          By:  /s/ XXXXXX XXXXXXXX, M.D.
                                          Vice President

Agreed this 24th day of March, 1999

North Shore University Hospital


By: /s/ XXXXXX X. XXXXXX, MD
Title: Chair, Dept. of Research