EMPLOYMENT AGREEMENT


This  Employment  Agreement is entered into as of  September  29, 2000,  between
William M.  Hinchey  ("Employee")  and OraSure  Technologies,  Inc.,  a Delaware
corporation (the "Company").

          1.   SERVICES.

               1.1  EMPLOYMENT.  The Company  agrees to employ  Employee as Vice
President  of  Marketing  of the  Company,  and  Employee  hereby  accepts  such
employment in accordance with the terms and conditions of this Agreement.

               1.2 DUTIES. Employee shall have the position named in Section 1.1
with such powers and duties appropriate to that office (a) as may be provided by
the bylaws of the Company,  (b) as otherwise  set forth in Exhibit A attached to
this  Agreement,  and (c) as determined  by the board of directors  from time to
time. Subject to the provisions of Section 6.4 hereof,  Employee's  position and
duties  may be  changed  from time to time  during  the term of this  Agreement.
Employee's  place of work shall be the  Company's  headquarters,  at its present
location or as it may be relocated.

               1.3 OUTSIDE ACTIVITIES.  Employee shall obtain the consent of the
board of directors  before he engages,  either  directly or  indirectly,  in any
other  professional  or  business  activities  that may  require an  appreciable
portion of Employee's time or effort to the detriment of the Company's business.

               1.4 DIRECTION OF SERVICES.  Employee shall at all times discharge
his duties in  consultation  with and under the supervision and direction of the
Chief  Executive  Officer  of the  Company  or such  other  officer as the Chief
Executive Officer or the board of directors may designate.

          2.   TERM.  The initial term of this  Agreement  shall begin as of the
date first written above and end on the second  anniversary of that date, unless
sooner terminated in accordance with Section 6 below. Thereafter, this Agreement
shall  automatically  renew from year to year for successive  one-year terms (a)
unless either party gives the other party written  notice of that party's intent
not to renew  this  Agreement  at least 120 days  before the  expiration  of its
current term,  or (b) the  Agreement is terminated in accordance  with Section 6
below.

          3.   COMPENSATION AND EXPENSES.

               3.1 SALARY.  As  compensation  for services under this Agreement,
the Company  shall pay to  Employee a regular  salary of  $12,500.00  per month.
Subject to the  provisions  of Section 6.4  hereof,  such salary may be adjusted
from time to time in the discretion of the board of directors.  Payment shall be
made on a bi-weekly  basis,  less all amounts  required by law or  authorized by
Employee to be withheld or deducted.

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               3.2 BONUS.  The Company shall  establish an executive bonus plan,
on such terms as may be  approved  by the board of  directors  or its  executive
compensation  committee.  In  addition  to the salary  described  in Section 3.1
above, Employee shall be entitled to participate in the executive bonus plan.

               3.3  LONG-TERM  INCENTIVE.   To  the  extent  otherwise  ligible,
Employee shall be entitled to  participate  in accordance  with the terms of the
plan in any  long-term  incentive  plan that may from time to time be adopted by
the board of  directors or its  executive  compensation  committee,  in its sole
discretion.

               3.4  ADDITIONAL  EMPLOYEE  BENEFITS.   To  the  extent  otherwise
eligible, Employee shall be entitled to receive or participate in any additional
benefits,  including without limitation  medical and dental insurance  programs,
profit sharing or pension plans, and medical reimbursement plans, which may from
time to time be made available by the Company to corporate officers. The Company
may change or discontinue such benefits at any time in its sole discretion.

               3.5  EXPENSES.  The  Company  shall  reimburse  Employee  for all
reasonable and necessary expenses incurred in carrying out his duties under this
Agreement, subject to compliance with the Company's reasonable policies relating
to expense reimbursement.

               3.6  FEES.  All  compensation  earned  by  Employee,  other  than
pursuant to this Agreement,  as a result of services  performed on behalf of the
Company or as a result of or arising out of any work done by Employee in any way
related to the scientific or business  activities of the Company shall belong to
the  Company.  Employee  shall pay or deliver such  compensation  to the Company
promptly upon receipt. For the purposes of this provision,  "compensation" shall
include,  but is not  limited to, all  professional  and  nonprofessional  fees,
lecture fees, expert testimony fees, publishing fees, royalties, and any related
income,  earnings,  or other  things  of  value;  and  "scientific  or  business
activities of the Company" shall include,  but not be limited to, any project or
projects  in which the  Company  is  involved  and any  subject  matter  that is
directly or indirectly researched,  tested, developed,  promoted, or marketed by
the Company.

          4.   STOCK  OPTIONS.  Employee shall be entitled to participate in the
Company  stock  option  plan.  The number of stock  options  that are granted to
Employee  under the plan shall be  determined  by the board of  directors or its
executive compensation committee.

          5.   BUSINESS  PROTECTION  AGREEMENT.  Employee  and the  Company  are
concurrently  entering a Business Protection  Agreement.  Employee's  compliance
with  the  terms  of  the  Business  Protection  Agreement,   including  without
limitation the noncompetition  provisions of the Business Protection  Agreement,
is  a  material  requirement  of  this  Agreement.  Employee  acknowledges  that
employment  on the  terms  stated  in this  Agreement  constitutes  a bona  fide
advancement.

                                      -2-



          6.   TERMINATION.

               6.1  TERMINATION  UPON  DEATH.  This  Agreement  shall  terminate
immediately upon Employee's death.

               6.2   TERMINATION   BY  EMPLOYEE.   Employee  may  terminate  his
employment under this Agreement by 60 days' written notice to the Company.

               6.3 TERMINATION BY THE COMPANY FOR CAUSE.  Employee's  employment
under this  Agreement  may be  terminated  by the Company at any time for cause.
Only the following actions,  failures,  or events by or affecting Employee shall
constitute  "cause" for termination of Employee by the Company:  (i) willful and
continued  failure by Employee  to  substantially  perform  his duties  provided
herein  after a written  demand for  substantial  performance  is  delivered  to
Employee by the  chairman of the board of the Company,  which demand  identifies
with reasonable  specificity the manner in which Employee has not  substantially
performed his duties, and Employee's failure to comply with such demand within a
reasonable  time;  (ii) the  engaging by Employee in gross  misconduct  or gross
negligence materially injurious to the Company;  (iii) the commission of any act
in direct  competition  with or materially  detrimental to the best interests of
the  Company;  or (iv)  Employee's  conviction  of  having  committed  a felony.
Notwithstanding  the  foregoing,  Employee  shall  not be  deemed  to have  been
terminated  by the  Company  for cause  unless and until  there  shall have been
delivered to him a copy of a resolution duly adopted by the affirmative  vote of
not less than a majority of the entire  membership  of the board of directors of
the Company  finding  that, in the good faith opinion of the board of directors,
the Company has cause for the  termination  of the employment of Employee as set
forth in any of clauses (i) through (iv) above and  specifying  the  particulars
thereof in reasonable  detail.  The findings of the board of directors shall not
be binding on the  arbitrators  or other finders of fact in connection  with any
litigation or dispute arising out of this Agreement.

               6.4  TERMINATION BY THE COMPANY  WITHOUT  CAUSE.  The Company may
terminate  Employee's  employment under this Agreement  without cause by written
notice to  Employee.  Employee may (but shall not be required to) elect to treat
any of the following events as a termination  without cause,  provided  Employee
acts within 60 days of the event:

                    6.4.1    A material  breach of this Agreement by the Company
and a failure by the  Company to cure the breach  within 30 days after  Employee
has given written notice of the breach to the board of directors.

                    6.4.2    A reduction in  Employee's  salary below the amount
stated in Section 3.1 (except as part of and in proportion to a reduction in all
executive  officers'  salaries) or a change in Employee's title or a substantial
diminution in Employee's duties below those stated in this Agreement.

                    6.4.3    A "Change of Control" of the Company.  For purposes
of this  Agreement,  a "Change of  Control"  shall mean a change of control of a
nature  that  would be  required  to be  reported  in  response  to Item 6(e) of
Schedule 14A of Regulation  14A as in effect on the date hereof  pursuant to the
Securities Exchange Act of 1934 (the "Exchange Act");

                                      -3-


provided that, without  limitation,  such a change of control shall be deemed to
have occurred at such time as (i) any  Acquiring  Person  hereafter  becomes the
"beneficial  owner" (as defined in Rule 13d-3 under the Exchange Act),  directly
or  indirectly,  of 30 percent or more of the  combined  voting  power of Voting
Securities;   (ii)  during  any  period  of  12  consecutive   calendar  months,
individuals  who at the  beginning  of  such  period  constitute  the  board  of
directors cease for any reason to constitute at least a majority  thereof unless
the election, or the nomination for election,  by the Company's  shareholders of
each new director was approved by a vote of at least a majority of the directors
then still in office who were  directors at the  beginning of the period;  (iii)
there shall be  consummated  (a) any  consolidation  or merger of the Company in
which the Company is not the continuing or surviving  corporation or pursuant to
which Voting  Securities  would be  converted  into cash,  securities,  or other
property,  other  than a merger of the  Company  in which the  holders of Voting
Securities  immediately  prior to the merger have the same, or substantially the
same,  proportionate  ownership  of common  stock of the  surviving  corporation
immediately  after  the  merger,  or (b) any  sale,  lease,  exchange,  or other
transfer (in one  transaction  or a series of related  transactions)  of all, or
substantially  all,  of the  assets  of the  Company;  or (iv)  approval  by the
shareholders  of the  Company of any plan or  proposal  for the  liquidation  or
dissolution of the Company.  For purposes of this Agreement,  "Acquiring Person"
means any person or related  persons which  constitute a "group" for purposes of
Section  13(d) and Rule 13d-5 under the  Exchange  Act, as such Section and Rule
are in effect as of the date of this Agreement; provided, however, that the term
Acquiring Person shall not include:  (i) the Company or any of its subsidiaries;
(ii) any employee benefit plan of the Company or any of its subsidiaries;  (iii)
any entity  holding  voting  capital stock of the Company for or pursuant to the
terms of any such  employee  benefit  plan;  or (iv) any person or group  solely
because such person or group has voting  power with respect to capital  stock of
the Company  arising  from a revocable  proxy or consent  given in response to a
public proxy or consent  solicitation  made  pursuant to the  Exchange  Act. For
purposes of this Agreement,  "Voting  Securities" means the Company's issued and
outstanding  securities ordinarily having the right to vote at elections for the
Company's board of directors.

               6.5 COMPENSATION UPON TERMINATION.

                    6.5.1    TERMINATION UNDER SECTIONS 6.1, 6.2, OR 6.3. In the
event of a termination of Employee's employment under Sections 6.1, 6.2, or 6.3,
Employee's  regular  compensation  pursuant to Section 3.1 shall be prorated and
payable until the date of termination  and Employee shall be paid any bonus that
has been approved but not yet paid.

                    6.5.2    TERMINATION  UNDER  SECTION  6.4. In the event of a
termination of Employee's employment by the Company without cause as provided in
Section 6.4,  Employee shall continue to be paid the salary  provided in Section
3.1 for the greater of (a) 12 months,  (b) the remaining term of this Agreement,
or (c) 24 months if Employee elects to treat an event described in Section 6.4.3
as a termination  without cause,  from the date of notice of such termination of
employment  or the date of such  event,  in the manner and at the times at which
regular  compensation  was paid to  Employee  during the term of his  employment
under this Agreement, except that if Employee elects to treat an event described
in Sections 6.4.1,  6.4.2, or 6.4.3 as a termination without cause but continues
to work for the Company or any of its  subsidiaries,  then any amounts  Employee
receives as  compensation  following  the event  shall be  credited  against the
amounts payable to Employee under this section. In no other respect


                                      -4-


shall the amount of any payment  provided  for in this section be reduced by any
compensation or benefits earned by employee as a result of employment  after his
termination.  As a condition  to receipt of the  compensation  described  in the
first sentence of this Section 6.5.2,  Employee shall sign and deliver a release
agreement,  in form and  substance  satisfactory  to the Company  and  Employee,
releasing all claims related to Employee's employment.  The Company's obligation
to pay the amounts  stated in this section shall  terminate if Employee fails to
comply with the Business Protection  Agreement within the applicable time period
stated in the first sentence of this section.

          7.  REMEDIES.  The  respective  rights and duties of the  Company  and
Employee  under this  Agreement  are in addition  to, and not in lieu of,  those
rights and duties afforded to and imposed upon them by law or at equity.

          8.  SEVERABILITY  OF PROVISIONS.  The provisions of this Agreement are
severable,  and if any  provision  hereof is held invalid or  unenforceable,  it
shall  be  enforced  to  the  maximum  extent  permissible,  and  the  remaining
provisions of the Agreement shall continue in full force and effect.

          9.  NONWAIVER.  Failure  by  either  party  at  any  time  to  require
performance of any provision of this Agreement  shall not limit the right of the
party failing to require  performance to enforce the provision.  No provision of
this  Agreement may be waived by either party except by a writing signed by that
party.  A  waiver  of any  breach  of a  provision  of this  Agreement  shall be
construed  narrowly  and shall  not be  deemed to be a waiver of any  succeeding
breach of that  provision or a waiver of that  provision  itself or of any other
provision.

          10. ARBITRATION.

               10.1  CLAIMS  COVERED. All claims  or  controversies,  except for
those  excluded  by  Section  10.2  ("claims"),  whether or not  arising  out of
Employee's  employment (or its  termination),  that the Company may have against
the  Employee  or that  Employee  may have  against  the  Company or against its
officers,  directors,  employees  or  agents,  in  their  capacity  as  such  or
otherwise,  shall be resolved as provided in this Section 10. Claims  covered by
this  Section 10  include,  but are not  limited  to,  claims for wages or other
compensation  due;  claims for breach of any  contract or  covenant  (express or
implied); tort claims; claims for discrimination (including, but not limited to,
race, sex, sexual orientation,  religion,  national origin, age, marital status,
or disability); claims for benefits (except where an employee benefit or pension
plan  specifies  that its claims  procedure  shall  culminate in an  arbitration
procedure  different  from this one),  and claims for  violation of any federal,
state, or other governmental law, statute,  regulation, or ordinance,  except as
provided in Section 10.2.

               10.2  NON-COVERED  CLAIMS.  Claims  arising  out of the  Business
Protection  Agreement and workers'  compensation  or  unemployment  compensation
benefits are not covered by this Section 10.  Non-covered claims include but are
not limited to claims by the  Company  for  injunctive  and/or  other  equitable
relief for unfair competition and/or the use and/or  unauthorized  disclosure of
trade secrets or confidential information,  as to which Employee understands and
agrees  that the Company  may seek and obtain  relief from a court of  competent
jurisdiction.

                                      -5-


               10.3  REQUIRED  NOTICE OF ALL CLAIMS AND STATUTE OF  LIMITATIONS.
Company and Employee agree that the aggrieved  party must give written notice of
any claim to the other  party  within one year of the date the  aggrieved  party
first has  knowledge of the event giving rise to the claim;  otherwise the claim
shall be void and deemed  waived even if there is a federal or state  statute of
limitations  which  would have given more time to pursue the claim.  The written
notice shall  identify  and  describe the nature of all claims  asserted and the
facts upon which such claims are based.

               10.4 ARBITRATION  PROCEDURES.  Any arbitration shall be conducted
in accordance with the then-current Model Employment  Arbitration  Procedures of
the American  Arbitration  Association  ("AAA"),  modified to substitute for AAA
actions, the United States Arbitration and Mediation Service ("USA&MS"),  before
an arbitrator who is licensed to practice law in the state of Pennsylvania  (the
"Arbitrator").   The  arbitration   shall  take  place  in  or  near  Bethlehem,
Pennsylvania.

                    10.4.1   SELECTION OF ARBITRATOR. The USA&MS shall give each
party a list of 11 arbitrators drawn from its panel of labor-management  dispute
arbitrators.  Each party may strike all names on the list it deems unacceptable.
If only one common name  remains on the lists of all  parties,  that  individual
shall be designated as the  Arbitrator.  If more than one common name remains on
the lists of all parties,  the parties shall strike names alternately until only
one remains.  The party who did not initiate the claim shall strike first. If no
common name  remains on the lists of all parties,  the USA&MS  shall  furnish an
additional list or lists until an Arbitrator is selected.

                    10.4.2   APPLICABLE  LAW.  The  Arbitrator  shall  apply the
substantive  law (and the law of  remedies,  if  applicable)  specified  in this
Agreement or federal law, or both, as applicable to the claim(s)  asserted.  The
Arbitrator,  and not any federal,  state,  or local court or agency,  shall have
exclusive  authority  to resolve  any dispute  relating  to the  interpretation,
applicability,  enforceability or formation of this Agreement, including but not
limited to any claim that all or any part of this Agreement is void or voidable.
The arbitration shall be final and binding upon the parties,  except as provided
in this Agreement.

                    10.4.3   AUTHORITY.  The Arbitrator shall have  jurisdiction
to hear and rule on pre-hearing  disputes and is authorized to hold  pre-hearing
conferences by telephone or in person as the  Arbitrator  deems  necessary.  The
Arbitrator  shall have the  authority to entertain a motion to dismiss  and/or a
motion for summary judgment by any party and shall apply the standards governing
such motions under the Federal Rules of Civil  Procedure.  The Arbitrator  shall
render  an  award  and  opinion  in  the  form   typically   rendered  in  labor
arbitrations.

                    10.4.4   REPRESENTATION.  Any party may be represented by an
attorney or other representative selected by the party.

                    10.4.5   DISCOVERY.  Each party shall have the right to take
the deposition of one  individual  and any expert witness  designated by another
party.  Each party also shall have the right to make requests for  production of
documents to any party.  The subpoena right  specified below shall be applicable
to discovery  pursuant to this paragraph.  Additional  discovery may be had only
where the Arbitrator selected pursuant to this Agreement so orders,

                                      -6-


upon a showing of substantial need. At least 30 days before the arbitration, the
parties must exchange lists of witnesses,  including any experts,  and copies of
all exhibits  intended to be used at the arbitration.  Each party shall have the
right to subpoena witnesses and documents for the arbitration.

                    10.4.6   REPORTER. Either party, at its expense, may arrange
for and pay the cost of a court  reporter  to provide a  stenographic  record of
proceedings.

                    10.4.7   POST-HEARING BRIEFS.  Either party, upon request at
the close of hearing,  shall be given leave to file a  post-hearing  brief.  The
time for filing such a brief shall be set by the Arbitrator.

               10.5  ENFORCEMENT.  Either party may bring an action in any court
of competent  jurisdiction  to compel  arbitration  under this  Agreement and to
enforce an arbitration  award.  Except as otherwise  provided in this Agreement,
both the Company and Employee agree that neither shall initiate or prosecute any
lawsuit  (other  than for a  non-covered  claim) in any way related to any claim
covered by this Agreement.  A party opposing  enforcement of an award may not do
so in an enforcement  proceeding,  but must bring a separate action in any court
of competent  jurisdiction to set aside the award,  where the standard of review
will be the same as that applied by an appellate court reviewing a decision of a
trial court sitting without a jury.

               10.6  ARBITRATION  FEES AND COSTS.  Company  and  Employee  shall
equally  share the fees and costs of the  Arbitrator.  Each party  will  deposit
funds or post other appropriate  security for its share of the Arbitrator's fee,
in an amount and manner  determined by the Arbitrator,  10 days before the first
day of hearing.  Each party shall pay for its own costs and attorneys'  fees, if
any, provided that the Arbitrator, in its sole discretion,  may award reasonable
fees to the prevailing party in a proceeding.

          11.  GENERAL TERMS AND  CONDITIONS.  This  Agreement  constitutes  the
entire  understanding  of the parties  relating to the employment of Employee by
the  Company,  and  supersedes  and  replaces  all written  and oral  agreements
heretofore made or existing by and between the parties  relating  thereto.  This
Agreement  shall be  construed  in  accordance  with  the  laws of the  state of
Pennsylvania,  without  regard to any contrary  conflicts of laws rules thereof.
This  Agreement  shall inure to the benefit of any  successors or assigns of the
Company.  All  captions  used  herein are  intended  solely for  convenience  of
reference  and shall in no way limit any of the  provisions  of this  Agreement.
Employee  acknowledges that he signed this Agreement upon his initial employment
with the Company.

            The parties have executed this  Employment  Agreement as of the date
stated above.


                                          ORASURE TECHNOLOGIES, INC.


/s/ William M. Hinchey                    By:  /s/ Robert D. Thompson
- ------------------------------------           ------------------------------
William M. Hinchey
                                          Title:  Chief Executive Officer
                                                  ---------------------------

                                      -7-



                        EXHIBIT A TO EMPLOYMENT AGREEMENT

          SPECIFIC DUTIES OF EMPLOYEE AS VICE PRESIDENT OF MARKETING


          Employee as the Vice  President of  Marketing of the Company  shall be
responsible for ----------------------------------------------------------------
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------.


                                      -8-