Exhibit 10 [LETTERHEAD-ENDOGEN] July 2, 1998 Charles R. Burke, Ph.D. Monument Partners, Inc. 1410-1 Monument Street Concord, Mass. 01742 Dear Charlie, Thanks for your continuing interest in Endogen. You have already been a great help to me over the past weeks and months. I know that the entire Board of Directors is enthusiastic about your involvement. The recent meeting, I think, highlighted best just how significant are the opportunities as well as the challenges we face today. Attached I have summarized for you the financial compensation available as a director of Endogen, primarily in the form of stock options. In addition, I have outlined proposed cash compensation on the basis of two to three half days of consulting per month over and above the expected duties as a director. I look forward to reviewing this together and hope that we can move forward as proposed. We're in a great position to build a significant life science enterprise and I think there's a lot of fun we can have along the way. Sincerely, /s/Owen A. Dempsey - ------------------ Owen A. Dempsey President and CEO PROPOSED COMPENSATION - --------------------- I. SIGN-ON STOCK OPTIONS Under Director Plan 6,000 shares @ FMV on 6/25/98 -vesting 1/3 upfront, 1/3 one year, 1/3 two years Under 1992 Plan 6,000 shares @ FMV on 6/25/98 -vesting 1/3 upfront, 1/3 one year, 1/3 two years II. FUTURE STOCK OPTIONS Under Director Plan 6,000 shares annually @ FMV -vesting 1/3 upfront, 1/3 one year, 1/3 two years III. DIRECTOR FEES per meeting $500 (4-5 times annually) per committee meeting $500 (Audit Committee or Compensation Committee) IV. CONSULTING two to three half-days per months? $500 per half day pre-approved travel or other expenses