Document:

Description of Nonemployee Director Compensation Policy

 Exhibit 10.6 
  
 Description of Nonemployee Director Compensation Policy 
  
 The following describes the Company’s Compensation Policy for Nonemployee Directors (the
“Policy”). 
  
 Pursuant to the Policy, all nonemployee Directors receive
an annual fee of $12,000. In addition, the Chairman of the Company’s Board of Directors (the “Board”) receives an additional annual fee of $13,000, the Chairman of the Audit Committee of the Board receives an additional annual fee of
$5,000, and the Chairmen of the Compensation Committee and the Strategic Planning Committee of the Board each receive an additional annual fee of $4,000. Annual fees are payable quarterly in advance. 
  
 In addition, each nonemployee Director receives a $1,000 fee for each Board meeting attended,
and each member of a Board Committee receives an additional $1,000 fee for each Committee meeting attended. A payment will be made only for a meeting where minutes of that meeting are prepared. Nonemployee Directors also receive reimbursement for
their reasonable out-of-pocket costs of attending Board and Committee meetings. 
  
 Nonemployee Directors receive an initial grant of 40,000 stock options upon joining the Board (the “Initial Grant”). An additional grant of 40,000 stock options is also made to any nonemployee Director who becomes Chairman of the
Board (the “Chairman Grant”). Each nonemployee Director receives an annual grant of 20,000 stock options (the “Annual Grant”) on the annual option grant date for officers and employees of the Company, except for the Chairman of
the Board, who receives an annual grant of 30,000 stock options. 
  
 The options
granted to nonemployee Directors are nonqualified stock options, and have an exercise price equal to the mean between the high and low sales prices of the Company’s Common Stock as quoted on The Nasdaq Stock Market on the grant date. Each
Initial Grant and Chairman Grant generally vests on a monthly basis over the 24 months immediately following the grant date, and each Annual Grant generally vests on a monthly basis over the 12 months immediately following the grant date. All
vesting of the options will cease 90 days after the nonemployee Director ceases to serve on the Board. Options become exercisable in full immediately upon the occurrence of a change in control of the Company. A change in control of the Company would
occur on the happening of such events as the beneficial ownership by a person or group of 30 percent or more of the outstanding Common Stock of the Company, certain changes in Board membership affecting a majority of positions, certain mergers or
consolidations, a sale or other transfer of all or substantially all the Company’s assets, or approval by the stockholders of a plan of liquidation or dissolution of the Company, as well as any change in control required to be reported by the
proxy disclosure rules of the Securities and Exchange Commission. Payment of the exercise price may be made in cash or by delivery of previously acquired shares of Common Stock having a fair market value equal to the aggregate exercise price.Description of 2004 Self-Funding Annual Incentive Plan

 Exhibit 10.11 
  
 Description of OraSure Technologies, Inc. 
 2004 Self-Funding Annual Incentive Plan 
  
 On January 13, 2004, the Compensation Committee of the Company’s Board of Directors (the “Board”) adopted the 2004 Self-Funding Annual Incentive Plan (the “Bonus Plan”). The purpose of the Bonus Plan is to reward
outstanding individual performance by management with cash bonuses. All employees, except for sales employees (who are covered by a separate commission plan) at the level of director and above, will be eligible to participate in the Bonus Plan.

  
 Pursuant to the Bonus Plan, cash bonuses may be paid out of a cash bonus pool
to be funded based on the Company’s achievement of certain financial objectives regarding revenues, net income, cash flow from operations and gross margin for 2004. If the Company achieves 100% of these financial targets, the bonus pool would
be funded in the amount of $900,000. 
  
 Payments from the bonus pool will depend
on an employee’s achievement of individual performance objectives. Bonus payments will be based on the target payouts set forth below, which are expressed as a percentage of base salary. No individual participating in the Bonus Plan can receive
a bonus greater than 150% of his or her target amount, and the aggregate of all bonuses cannot exceed the funded amount of the bonus pool. 
  

				
	 Title

	  	Target
Payouts

	 
	 Chief Executive Officer
	  	50	%
	 Executive Vice President
	  	40	%
	 Senior Vice President
	  	30	%
	 Vice President
	  	20	%
	 Director
	  	10	%

  
 Performance criteria for individual
employees will be derived from the Company’s 2004 corporate objectives concerning financial performance, strategic planning, research and development, business development, regulatory affairs and quality control, manufacturing, engineering,
information systems, sales and marketing, human resources, investor relations matters and/or such other objectives chosen by the Compensation Committee in its sole discretion. Awards are expected to reflect a weighted average measurement of an
employee’s achievement of his or her individual performance objectives. 
  
 Employees must be employed by the Company as of December 31, 2004 and at the time of the bonus award in order to participate in the Bonus Plan, and awards will be adjusted on a pro rata basis to the extent any employee is employed for only
a portion of the year 2004. The Chief Executive Officer will recommend individual awards for all participating employees (except for the Chief Executive Officer) for approval by the Compensation Committee based on an assessment of each
individual’s performance against his or her applicable performance objectives. The Compensation Committee may approve or disapprove any recommended bonus award in whole or in part in its sole discretion. The Compensation Committee shall
recommend for Board approval any bonus award for the Chief Executive Officer based on an assessment of his performance against his individual performance objectives. The Board may approve or disapprove any recommended bonus award for the Chief
Executive Officer in whole or in part in its sole discretion. 
  
 The Compensation
Committee and the Board shall have the right in their sole discretion to reject any or all of the recommended bonus awards, even if the bonus pool has been funded and any and all applicable performance criteria have been satisfied, based on the
business conditions of the Company at or immediately after the end of 2004.Description of Management Stock Option Award Guidelines

 Exhibit 10.12 
  
 Description of OraSure Technologies, Inc. 
 Management Stock Option Award Guidelines 
  
 On February 4, 2003, the Company’s Board of Directors adopted Stock Option Award Guidelines for the Company’s management (the “Option Guidelines”). The purpose of the Option Guidelines is to establish a framework for
granting stock options in order to reward outstanding performance by the Company’s management team. Employees covered by the Option Guidelines are at the director level and above, and include all Company officers. 
  
 Awards under the Option Guidelines in any fiscal year will depend on an employee’s
achievement of individual performance objectives. Each employee’s individual performance will be evaluated against his or her performance to determine if that individual meets expectations, exceeds expectations or has performed in an
outstanding manner. Set forth below are annual award targets assuming that the participating employees are evaluated as having met expectations for the fiscal year in question: 
  

			
	 Title

	  	Award Target
(No. of Shares)

	 Chief Executive Officer
	  	150,000
	 Executive Vice President
	  	60,000
	 Senior Vice President
	  	40,000
	 Vice President
	  	25,000
	 Director
	  	Up to 7,500

  
 If an employee’s performance is
evaluated to exceed expectations or to be outstanding, the amount of that employee’s award could be up to 150% of the applicable annual target set forth above. If an employee’s performance is evaluated to be below expectations, his or her
award could be 50-75% of the applicable target set forth above. Any employee whose performance is evaluated to be unsatisfactory would receive no stock option award. 
  
 Performance criteria for individual employees will be derived from the Company’s corporate objectives for the applicable fiscal year,
concerning financial performance, strategic planning, research and development, business development, regulatory affairs and quality control, manufacturing, engineering, information systems, sales and marketing, human resources, investor relations
matters and/or such other objectives chosen by the Board or the Compensation Committee of the Board in their sole discretion. Awards are expected to reflect a weighted average measurement of an employee’s achievement of his or her individual
performance objectives. 
  
 Employees must be employed by the Company at the end
of the fiscal year in question and at the time of grant in order to receive a stock option award, and awards will be adjusted on a pro rata basis to the extent any employee is employed for only a portion of a year. The Chief Executive Officer will
recommend individual awards for all covered employees (other than the Chief Executive Officer) to the Compensation Committee based on an assessment of each individual’s performance against his or her applicable performance objectives. The
Compensation Committee may approve or disapprove any recommended option award in whole or in part in its sole discretion. The Compensation Committee will evaluate the performance of the Chief Executive Officer and determine an appropriate option
award in accordance with the Option Guidelines and such evaluation. 
  
 The
Compensation Committee shall have the right in its sole discretion to reject any or all of the recommended bonus awards, even if any and all applicable performance criteria have been satisfied, based on the business conditions of the Company at or
immediately after the end of the fiscal year in question.

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